HomeMy WebLinkAbout2011 AVEC R5 App; St Michael, Stebbins Wind, Intertie Design
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4831 EAGLE STREET * ANCHORAGE, ALASKA * PHONE (907) 561 -1818 * FAX (907) 562-4086
August 26, 2011
Alaska Energy Authority
813 West Northern Lights Boulevard
Anchorage, Alaska 99503-2495
Attn: Renewable Energy Fund Grant Program Round 5: St. Michael/Stebbins Wind Final Design,
Permitting, and Construction
Dear Review Panel:
Alaska Village Electric Cooperative, Inc. (AVEC) respectfully submits the enclosed application for grant
funds available through the Renewable Energy Fund Grant Program.
AVEC is seeking funding for the installation of wind turbines in St. Michael to serve the communities of
St. Michael and Stebbins. The completed project will provide benefits to the communities through the
stabilized energy costs; the projected savings would be $455,000 during the first year of operations,
with increased savings each following year.
The project requires $235,000 to complete as proposed. AVEC is requesting $223,250 to complete the
proposed project. AVEC will provide $11,750 in cash as a project match.
Sincerely,
Meera Kohler
President and CEO
cc: Brent Petrie, AVEC
enclosures
Alaska Village Electric Cooperative, Inc.
St. Michael/Stebbins
Wind Energy Design
Renewable Energy Fund-Round V
Grant Application
Submitted by:
Alaska Village Electric Cooperative, Inc
4831 Eagle Street
Anchorage, Alaska 99503
Submitted to:
Alaska Energy Authority
813 West Northern Lights Blvd.
Anchorage, AK 99503
August 26, 2011
Renewable Energy Fund Round 5
Grant Application
AEA 12-001 Grant Application Page 1 of 17 8/26/2011
Saint Michael/Stebbins Wind - Final Design and Permitting
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Alaska Village Electric Cooperative, Inc.
Type of Entity: Not-for-profit corporation Fiscal Year End: December 31
Tax ID # 92-0035763 Tax Status:For-profit or X non-profit ( check one)
Mailing Address
4831 Eagle Street
Anchorage, AK 99503
Physical Address
Telephone
800.478.1818
Fax
800.478.4086
Email
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Brent Petrie
Title
Manager, Community Development and Key
Accounts
Mailing Address
4831 Eagle Street
Anchorage, AK 99503
Telephone
907.565.5358
Fax
907.561.2388
Email
BPetrie@avec.org
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.
Alaska Village Electric Cooperative, Inc.
Saint Michael/Stebbins Wind Design and Permitting
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 2 of 17 8/26/2011
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)
Saint Michael/Stebbins Wind - Final Design and Permitting
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.
St. Michael (pop. 434) is located on the east coast of St. Michael Island in Norton Sound. It lies
125 miles southeast of Nome and 48 miles southwest of Unalakleet.
Stebbins (pop. 577) is located on the northwest coast of St. Michael Island, on Norton Sound. It
lies 8 miles north of St. Michael.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
X Wind Biomass or Biofuels
Hydro, including run of river Transmission of Renewable Energy
Geothermal, including Heat Pumps Small Natural Gas
Heat Recovery from existing sources Hydrokinetic
Solar Storage of Renewable
Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Reconnaissance X Design and Permitting
Feasibility Construction and Commissioning
Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
AVEC is proposing to complete final design and permitting for four wind turbines to supplement
the existing power generation systems in St. Michael and Stebbins. Work under this grant will
also be used to design controls for the power generation system at a power plant in Stebbins.
AVEC has completed the design and obtained permits for the intertie between St. Michael and
Stebbins. Once work done under this grant is completed, AVEC will seek funding to construct
turbines and an intertie to serve both communities.
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.)
Alaska Village Electric Cooperative, Inc.
Saint Michael/Stebbins Wind Design and Permitting
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 3 of 17 8/26/2011
The primary financial benefit from this project would be to offset fuel costs for power
generation in St. Michael and Stebbins. The projected displacement of diesel fuel used for
village power generation in the communities is 93,500 gallons/yr (assuming 80% turbine
availability). This project could save $455,000 during its first full year of operation (expected to
be 2014).
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.
The total project cost for final design and permitting of four turbines in St. Michael is $235,000,
of which $223,250 is requested in grant funds from AEA. The remaining $11,750 (5%) would be
matched in cash by AVEC.
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.$223,250
2.7.2 Other Funds to be provided (Project match)$11,750
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2)$235,000
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)
$8,000,000
(includes 4 turbines,
controls, and intertie)
2.7.5 Estimated Direct Financial Benefit (Savings)$455,000 (year 1)
$9,690,000 (20 year life)
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.)
$
Alaska Village Electric Cooperative, Inc.
Saint Michael/Stebbins Wind Design and Permitting
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 4 of 17 8/26/2011
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.
AVEC would provide overall project management and oversight. AVEC is the electric utility
serving St. Michael and Stebbins. To further support the AVEC team in project delivery, wind
resource, engineering, and environmental consultants would be selected.
Brent Petrie, Manager, Community Development and Key Accounts, would lead the project
management team consisting of AVEC staff, consultants, and contractors. He has worked for
Alaska Village Electric Cooperative since 1998, where he manages the development of
alternatives to diesel generation for AVEC such as using wind, hydropower, and heat recovery.
He also manages relationships with AVEC’s largest customers and is the project manager for
AVEC’s many construction projects as an energy partner of the federally funded Denali
Commission.
Mr. Petrie has in the energy and resource field for more than thirty years, having worked for
the federal and state governments as consultant, planner, and project manager. He has been a
utility manager or management consultant since 1993. As General Manager of Iliamna-
Newhalen-Nondalton Electric Cooperative from 1994 to 1998, he reported to a seven-member,
elected board of directors, and served as project manager on its hydroelectric project
development. He is an elected member of the Board of Directors of the Utility Wind Interest
Group representing rural electric cooperatives and serves on the Power Supply Task force of
the National Rural Electric Cooperative Association. Mr. Petrie has a Master’s Degree in Water
Resource Management and a Bachelor’s degree in Geography. His resume is attached.
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.)
Grant Award Announcement:July 2012
Authorization to Proceed:August 2012
Complete Permitting:February 2013
Complete ROW Acquisition:February 2013
Complete Final Design:June 2013
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.)
All project milestones are identified in the budget worksheet under Tab C.
Alaska Village Electric Cooperative, Inc.
Saint Michael/Stebbins Wind Design and Permitting
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 5 of 17 8/26/2011
1. Project Scoping and Contractor Award for Planning and Design (August 1, 2012)
The engineering contractor would be selected and a task order would be prepared for work
planned for this phase.
2. Permit Applications (as needed) (October 31, 2012)
Permit applications, likely FAA, wetlands, and migratory birds/endangered species
consultations, would be prepared and submitted.
3. Final Environmental Assessment and Mitigation Plans (as needed) (February 1, 2013)
Working with regulatory agencies, environmental documents would be prepared as needed.
4. Resolution of Land Use, ROW Issues (February 1, 2013)
Working with the communities and corporations, AVEC would secure site control for the wind
turbines and intertie.
5. Permit Approvals (February 1, 2013)
Permits would be issued from Federal Aviation Administration, the U.S. Army Corps of
Engineers, and the U.S. Fish and Wildlife Service.
6. Final System Design (May 1, 2013)
The engineering contractor would complete final design of the wind system and intertie. The
design would be reviewed by AVEC personnel prior to final approval.
7. Engineers Cost Estimate (June 1, 2013)
Using the final design, the engineers would prepare the cost estimate for the project.
8. Updated Economic Estimate and Financial Analysis (July 1, 2013)
Using the number developed in the cost estimate, an updated economic assessment and
financial analysis would be prepared.
9. Negotiated Power Sales Agreements w/Approved Rates (Not Applicable)
10. Final Business and Operational Plan (July 1, 2013)
AVEC would work with the all the communities to finalize a Business and Operational Plan. The
existing Business Plans would be combined and would be reworked to include the wind system
and connecting the communities.
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.
AVEC would use a project management approach that has been used to successfully design and
Alaska Village Electric Cooperative, Inc.
Saint Michael/Stebbins Wind Design and Permitting
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 6 of 17 8/26/2011
construct wind turbines throughout rural Alaska: a team of AVEC staff and external consultants.
AVEC staff and their role on this project includes:
Meera Kohler, President and Chief Executive Office, would act as Project Executive and
would maintain ultimate authority programmatically and financially.
Brent Petrie, Manager, Community Development and Key Accounts, would lead the
project management team consisting of AVEC staff, consultants, and contractors.
Together with his group, Brent would provide coordination of the installation of the met
tower, geotechnical work, and conceptual design. The group’s resources include a
project coordinator, contracts clerk, accountant, engineer, and a community liaison.
Debbie Bullock, manager of administrative services, would provide support in
accounting, payables, financial reporting, and capitalization of assets in accordance with
AEA guidelines.
Anna Sattler, community liaison would also communicate directly with St. Michael and
Stebbins residents to ensure that the communities are involved and informed.
An AVEC project manager would lead this project. It is likely that one of AVEC’s in-house
contractors would lead the work. The project manager would be responsible for:
Selecting, coordinating, and managing the geotechnical, engineering, and permitting
consultants and ensuring that their deliverables are on time and within
budget
Working with AVEC’s Community Liaison to involve the community in the project and
gain site control
Contractors for this project would include:
Geotechnical consultant.AVEC would select and employ an experienced geotechnical
consultant who would:
Conduct a detailed geotechnical and natural hazards field study and report of the
project area
Engineering consultant.AVEC would select and employ an engineering consultant who
would:
Provide final design, engineering specifications, and a cost estimate for the wind
turbines
Environmental Consultant.AVEC currently has an on-call contract with Solstice Alaska
Consulting, Inc. for environmental permitting. It is likely that Solstice would work on this
project. Robin Reich’s (Solstice’s president) resume is attached. Solstice would:
Consult with agencies
Develop and submit permit applications for the wind farm
Resumes are included under Tab A.
Selection Process for Contractors:The geotechnical and engineering consultant selection
would be based upon technical competencies, past performance, written proposal quality, cost,
and general consensus from the technical steering committee. The selection of the consultant
Alaska Village Electric Cooperative, Inc.
Saint Michael/Stebbins Wind Design and Permitting
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 7 of 17 8/26/2011
would occur in strict conformity with corporate procurement policies, conformance with OMB
circulars, and DCAA principles.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
AVEC would require that monthly written progress reports be provided with each invoice
submitted from contractors. The progress reports would include a summary of tasks completed,
issues or problems experienced, upcoming tasks, and contractor’s needs from AVEC. Project
progress reports would be collected and forwarded as one package to the AEA project manager
each quarter.
Semi-annual face-to-face meetings would occur between AVEC and AEA to discuss the status of
all wind projects funded through the AEA Renewable Energy Grants program. Individual project
meetings would be held, as required or requested by AEA.
3.6 Project Risk
Discuss potential problems and how you would address them.
Site Control/Access and Environmental Permitting.Sometimes site control for the placement
of turbines is difficult; however, because the community supports the project (letters of
support have been received from the city, tribe, and corporation in both communities -Tab D) it
is not expected that gaining site control would be difficult. AVEC has been working with St.
Michael Native Corporation on securing the land since the met tower was placed nearby.
Environmental Permitting.AVEC has hired Solstice Alaska Consulting, Inc., an environmental
consultant familiar with permitting wind projects in Alaska. Solstice will begin consultation with
agencies in order to flesh out location, natural and social environment, specific species, and
mitigation issues. The consultant would work openly with the agencies and conduct studies as
appropriate.
Weather.Weather could delay getting consultants from getting into the community to conduct
site visits and/or the geotechnical survey however, an experienced consultant, familiar with
Alaskan weather conditions, would be selected.
SECTION 4 – PROJECT DESCRIPTION AND TASKS
Tell us what the project is and how you will meet the requirements outlined in Section 2 of
the RFA.
The level of information will vary according to phase(s) of the project you propose to
undertake with grant funds.
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.
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.
Alaska Village Electric Cooperative, Inc.
Saint Michael/Stebbins Wind Design and Permitting
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 8 of 17 8/26/2011
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.
Based on a wind resource report completed by V3 Energy (Tab G), the wind resource measured
at the Saint Michael is very good with measured wind power class 5 (excellent). In addition to
high average wind speeds and high wind power density, the site where wind data was collected
experiences very low turbulence and initial calculations (based on relatively limited data to date)
indicate low extreme wind speed probability.
Other energy resources are not feasible for the following reasons:
Photovoltaic solar arrays do not provide much energy during the villages’ peak electrical
demand season (winter), and the installed cost would be on the order of ten times that
of wind.
Generating power from ocean tidal motion is not yet an established technology for arctic
applications.
Hydropower requires hillier topography than is found in the Stebbins-St. Michael area,
and a year-round source of flowing water.
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.
AVEC currently provides power to the communities of Stebbins and St. Michael with separate
diesel generators. Once the communities are connected by a planned intertie, the St. Michael
plant would be closed, and a backup generator would be installed. Currently, AVEC is seeking
funding for the construction of a new power plant in Stebbins.
The existing diesel power plant in Saint Michael consists of three generators: a 499 kW
Cummins,a 363 kW Detroit Diesel, and a 229 kW Detroit Diesel. These generators were
installed in 2005, 2010, and 1995 respectively. Generator efficiency in St. Michael in 2010 was
14.26 kWh/gal.
The existing diesel power plant in Stebbins consists of three generators: a 499 kW Cummins, a
350 kW Cummins, and a 250 kW Cummins. These generators were installed in 2007, 1992, and
1995 respectively. Aggregate generator efficiency in Saint Mary’s in 2010 was 13.57 kWh/gal.
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.
St. Michael and Stebbins use diesel fuel for electrical power generation, heating oil for boiler
(thermal) and home heating, and diesel and gasoline fuel for transportation needs. Diesel fuel
consumption for power generation in Stebbins in 2012 was 103,000 gallons; in St. Michael diesel
fuel consumption was 124,000 gallons.
Installation of four Northwind 100 turbines and an intertie would decrease the amount of diesel
fuel used for power generation. Diesel generator use would be curtailed, thereby decreasing
Alaska Village Electric Cooperative, Inc.
Saint Michael/Stebbins Wind Design and Permitting
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 9 of 17 8/26/2011
generator operations and maintenance costs and enabling generators to last longer and require
fewer overhauls.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
St. Michael encompasses 21.8 sq. miles of land and 6.3 sq. miles of water. It has a subarctic
climate with maritime influences during the summer. Summer temperatures average 40 to 60
°F; winters average -4 to 16 °F. Extremes from -55 to 70 °F have been recorded. Annual
precipitation averages 12 inches, with 38 inches of snow. Summers are rainy, and fog is
common.
Stebbins encompasses 35.2 sq. miles of land and 1.7 sq. miles of water. It has a subarctic
climate with a maritime influence during the summer. Norton Sound is ice-free from June to
November, but clouds and fog are common. Average summer temperatures are 40 to 60 °F;
winter temperatures range from -4 to 16 °F. Extremes have been measured from -55 to 77 °F.
In St. Michael, 39.6 percent of the population is below the poverty line and 41.2 percent of the
population is below the poverty line in Stebbins. The median household income is $33,750 in St.
Michael and $28,333 in Stebbins, both of which are significantly lower than the State’s median
household income of $66,712.
4.3 Proposed System
Include information necessary to describe the system you are intending to develop and address
potential system design, land ownership, permits, and environmental issues.
4.3.1 System Design
Provide the following information for the proposed renewable energy system:
A description of renewable energy technology specific to project location
Optimum installed capacity
Anticipated capacity factor
Anticipated annual generation
Anticipated barriers
Basic integration concept
Delivery methods
Description of renewable energy technology.Wind power is the renewable energy option of
choice for St. Michael and Stebbins. Of the wind turbine options available on the market, the
“village” scale turbine size is considered most appropriate for the combined load profile of St.
Michael and Stebbins.
According to its manufacturer, Northern Power of Barre, Vermont, the Northwind 100
represents a new generation of wind turbines. Its permanent-magnet, direct-drive architecture
is the current state of the art design for advanced wind turbine design. That architecture
overcomes many of the challenges of connecting old-style induction generators to electrical
distribution grids. The permanent-magnet generator is connected to a full power converter that
Alaska Village Electric Cooperative, Inc.
Saint Michael/Stebbins Wind Design and Permitting
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 10 of 17 8/26/2011
converts its variable, low-frequency, alternating-current output to direct current, then back to
tightly regulated alternating current for output to the grid. The permanent-magnet generator
requires no reactive power to energize its magnetic field, removing that influence from the grid.
The power converter allows a broad degree of control over the form and quality of the power
output to the grid. The capacitance and active controls in the power converter allow reactive
power to either be consumed or produced by the Northwind 100 regardless of its real power
output, even in the complete absence of wind. The turbine controls allow power output to be
controlled by dynamic grid conditions, including automatic output reduction or complete
shutdown, regardless of wind conditions. The combination of advanced controls and integrated
disk braking allows gradual ramping of turbine output up or down, minimizing flicker and
maximizing usable power.
AVEC expects four Northwind 100 wind turbines to produce approximately 36% of the electricity
consumed in the villages today. The wind turbines should supply about 1,180,000 kWh of
electrical energy annually.
Optimum installed capacity.AVEC proposes to install four Northwind 100 turbines to operate
as a wind-diesel hybrid power system that would supply wind generated electricity to St.
Michael and Stebbins via the new future electrical intertie. The installed wind capacity would be
400 kW.
Anticipated capacity factor.HOMER software was used to estimate capacity factor and system
penetration (or renewable fraction) of four NW 100 turbines in a power system that combines
St. Michael and Stebbins. Using St. Michael wind data as discussed in section 4.1, at 80%
availability the turbine capacity factor is predicted to be 32.7%.
Anticipated annual generation.HOMER software estimates wind production with four NW 100
turbines of 1,180,000 kWh annually (80% turbine availability).
Anticipated barriers.No barriers to successful installation and integration of a wind turbine in
St. Michael are expected. The project will be designed modeled on recent successful projects of
similar design, e.g., Emmonak, Mekoryuk, Toksook Bay, and Chevak.
Basic integration concept.The integration design concept is comprised of four NW 100 turbines,
a SCADA system to manage the combined operation of the diesel generators and wind turbines,
and remote viewing and system access capability to enable remote monitoring and control of
the wind-diesel hybrid power plant in Stebbins.
Delivery Method.Power generated by the wind turbines would be distributed via the existing
electrical distribution system in St. Michael and Stebbins and a new intertie between the
communities.
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.
Alaska Village Electric Cooperative, Inc.
Saint Michael/Stebbins Wind Design and Permitting
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 11 of 17 8/26/2011
The proposed turbine site in St. Michael is shown in preliminary design drawings included in Tab
G. The site was selected because it has a very good wind resource and because of its proximity
to the existing road between the two communities and ease of access. Additionally, the site is
favorable to the communities and the landowner, St. Michael Native Corporation.
AVEC has discussed the site for the placement of wind turbines with the St. Michael Corporation
and has drafted a wind site ground lease and agreement (Tab G).
4.3.3 Permits
Provide the following information as it may relate to permitting and how you intend to address
outstanding permit issues.
List of applicable permits
Anticipated permitting timeline
Identify and discussion of potential barriers
FAA Air Navigation Hazard Permitting.AVEC will begin seeking a no-hazard determination from
FAA once the layout of the turbines has been determined (35% design). AVEC would do this
early in the process to ensure that adequate time and resources are allocated to this effort. It is
expected to take about 3 months to obtain the determination for the turbines.
Endangered Species Act/Migratory Bird Treaty Act Consultation:Consultation with the U.S.
Fish and Wildlife Service (USFWS) in compliance with the Endangered Species Act and Migratory
Bird Treaty Act will be needed to install the turbines. After the layout of the turbines has been
determined (35% design), AVEC will prepare a letter to the USFWS stating that the project would
not be expected to impact birds under their jurisdiction. It is expected that the USFWS would
concur with AVEC’s finding within one month of receiving the letter.
Clean Water Act (Section 401) Permit:If the wind turbines or their access are constructed
within wetlands, an individual wetland permit would be sought from the Corps. The application
would be submitted the turbine layout has been completed (35% design). It is expected that the
permit would be issued within 3 months.
4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will
be addressed:
Threatened or Endangered species
Habitat issues
Wetlands and other protected areas
Archaeological and historical resources
Land development constraints
Telecommunications interference
Aviation considerations
Visual, aesthetics impacts
Identify and discuss other potential barriers
Threatened or Endangered species.The U.S. Fish and Wildlife Service would be consulted to
ensure that the construction of the wind turbines would have no effect on threatened or
endangered species. Construction would be timed to avoid impacts to migratory birds in
Alaska Village Electric Cooperative, Inc.
Saint Michael/Stebbins Wind Design and Permitting
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 12 of 17 8/26/2011
compliance with the Migratory Bird Treaty Act.
Wetlands and other protected areas.It is likely that the wind turbines could be placed in
wetland locations. A U.S. Army Corps of Engineers’ wetlands permit would be needed.
Archaeological and historical resources.Compliance with the National Historic Preservation Act
with the State Historic Preservation Officer would be conducted during this phase.
Land development constraints.AVEC will secure a land lease from the St. Michael Native
Corporation during this phase.
Aviation considerations.A FAA Determination of No Hazard to Air Traffic would be sought for
the installation of the wind turbines.
Visual, aesthetics impacts.The turbines would be placed between St. Michael and Stebbins.
Because it is likely that the turbines would be constructed between the communities, it is likely
that there would be little concern for visual or aesthetic impacts. AVEC would conduct
community meetings to discuss visual impacts and how they could be minimized, in the unlikely
event that visual issues arise.
4.4 Proposed New System Costs and Projected Revenues
(Total Estimated Costs and Projected Revenues)
The level of cost information provided will vary according to the phase of funding requested and
any previous work the applicant may have done on the project. Applicants must reference the
source of their cost data. For example: Applicants Records or Analysis, Industry Standards,
Consultant or Manufacturer’s estimates.
4.4.1 Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of
the project. Cost information should include the following:
Total anticipated project cost, and cost for this phase
Requested grant funding
Applicant matching funds – loans, capital contributions, in-kind
Identification of other funding sources
Projected capital cost of proposed renewable energy system
Projected development cost of proposed renewable energy system
This application is for the final design and permitting of four NW 100 turbines in St. Michael
(design of an intertie between the two communities has been completed).
The project would cost $235,000 to complete. AVEC is requesting $223,250 from AEA through
the REF grant program, and AVEC would provide $11,750 (5%) as a cash contribution towards
the proposed project.
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
Alaska Village Electric Cooperative, Inc.
Saint Michael/Stebbins Wind Design and Permitting
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 13 of 17 8/26/2011
ongoing reporting requirements for the purpose of reporting impacts of projects on the
communities they serve.)
Once the turbines are installed, AVEC estimates the cost of O&M to be around $5,250 annually.
AEA estimates O&M would cost $0.005/kWh, or approximately $ 5,900 annually.
4.4.3 Power Purchase/Sale
The power purchase/sale information should include the following:
Identification of potential power buyer(s)/customer(s)
Potential power purchase/sales price - at a minimum indicate a price range
Proposed rate of return from grant-funded project
Energy produced from the completed wind/intertie project would be sold to AVEC’s existing
customer base in the communities of St. Michael and Stebbins. The sale price for the wind
generated electricity would be determined by the Regulatory Commission of Alaska as is done in
all AVEC villages. Currently, AVEC villages with wind power systems experience the lowest
electricity cost within the utility’s 54 villages. Similar energy cost reductions are expected with
the completed project proposed in this application.
The project has an expected payback of 14 years. (See Tab B.)
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
Please see cost/benefit sheet under Tab C.
SECTION 5– PROJECT BENEFIT
Explain the economic and public benefits of your project. Include direct cost savings,
and how the people of Alaska will benefit from the project.
The benefits information should include the following:
Potential annual fuel displacement (gal and $) over the lifetime of the evaluated
renewable energy project
Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price,
RCA tariff, or cost based rate)
Potential additional annual incentives (i.e. tax credits)
Potential additional annual revenue streams (i.e. green tag sales or other renewable
energy subsidies or programs that might be available)
Discuss the non-economic public benefits to Alaskans over the lifetime of the project
Potential annual fuel displacement:The possible displacement of diesel fuel used for village
power generation in St. Michael and Stebbins could be about 93,500 gal/yr and 1,870,000
gallons over the project’s 20 year lifetime (assuming 80% turbine availability). This project could
save $455,000 during its first full year of operation (expected to be 2014), with savings
increasing each year.
Anticipated annual revenue/Potential additional annual incentives/Potential additional
annual revenue streams.Tax credits are not expected to be beneficial to the project due to
AVEC’s status as a non-profit entity. Nonetheless, in addition to saving the direct cost of fuel,
Alaska Village Electric Cooperative, Inc.
Saint Michael/Stebbins Wind Design and Permitting
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 14 of 17 8/26/2011
AVEC could sell green tags from the project.
Non-economic public benefits.The anticipated benefits of installation of the wind turbines
would include the reduction of the negative impact of the cost of energy by providing a
renewable energy alternative. This project could help stabilize energy costs and provide long-
term socio-economic benefits to village households. Locally-produced, affordable energy would
empower community residents and could help avert rural to urban migration.
This project would help AVEC to determine potential locations to be served by recovered heat.
If determined feasible, the terms of recovered heat agreements would be negotiated with
entities to be served. Once the wind project is constructed and heat recovery systems are in
place, costs to operate important community facilities (e.g. water treatment plants, schools,
washeterias, etc.) would be decreased, enabling managing entities (city governments, tribes,
school districts) to operate more economically.
Stabilized energy costs would allow community entities, including the Cities and Tribes to plan and
budget for important community infrastructure listed in the St. Michael Local Economic
Development Plan (Kawerak, April 2004) including more housing, roads, and apublic safety
building (community priorities #1, 2, and 3). Other priority infrastructure could beconstructed in
Stebbins including water and sewer improvements, freightcommunity housing, and dumpsite
improvements (community priorities 1, 2, and 3 in the Stebbins Local Economic Development Plan
[Kawerak, April 2004]). In addition, wind power generation is a goal of both communities’
economic plans, and installation of a wind project would help the communities realize an
important goal.
Stebbins and St. Michael residents’ health and safety would benefit from the environmental
benefits resulting from a reduction of hydrocarbon use, including:
Reduced potential for fuel spills or contamination during transport, storage, or use (thus
protecting vital water and subsistence food sources)
Improved air quality
Decreased contribution to global climate change from fossil fuel use
The wind turbine would provide a visual landmark for sea, air, and overland travelers, which
would help navigation in the area. Wind turbine orientation and rotor speed would provide
visual wind information to residents.
SECTION 6– SUSTAINABILITY
Discuss your plan for operating the completed project so that it will be sustainable.
Include at a minimum:
Proposed business structure(s) and concepts that may be considered.
How you propose to finance the maintenance and operations for the life of the project
Identification of operational issues that could arise.
A description of operational costs including on-going support for any back-up or existing
systems that may be require to continue operation
Commitment to reporting the savings and benefits
Alaska Village Electric Cooperative, Inc.
Saint Michael/Stebbins Wind Design and Permitting
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 15 of 17 8/26/2011
As a local utility that has been in operation since 1968, AVEC is completely able to finance,
operate, and maintain this project for the design life. AVEC has capacity and experience to
operate this project. AVEC has operating wind projects throughout the state-familiar with
planning, constructing, operating, and maintaining wind systems.
Business Plan Structures and Concepts which may be considered:The wind turbines would be
incorporated into AVEC’s power plant operation. Local plant operators provide daily servicing.
AVEC technicians provide periodic preventative or corrective maintenance and are supported by
AVEC headquarters staff, purchasing, and warehousing.
How O&M would be financed for the life of the project:The costs of operations and
maintenance would be funded through ongoing energy sales to the villages.
Operational issues which could arise:Integration of the SLCs for thermal dump would be
addressed during this design phase. It is likely that the controls would be placed at the Stebbins
power plant. AVEC would use the knowledge gained through the operations of other village
wind-diesel systems to address these issues.
Operating costs:The costs of operations and maintenance would be funded through ongoing
energy sales to the villages that AVEC serves.
Commitment to reporting the savings and benefits:AVEC is fully committed to sharing the
savings and benefits accrued from this project information with their shareholders and sharing
information regarding savings and benefits with AEA.
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.
Work on related to this project has already occurred. With Denali Commission funding, AVEC:
Installed the met tower and completed a wind study near the site proposed for the wind
turbines.
Completed final design and permitting for an intertie between St. Michael and Stebbins.
Completed final design of a new fuel storage facility in Stebbins, which would support
power generation in both communities
Prepared a Conceptual Design Addendum in June 2007 which examined the potential for
heat recovery to serve the school, the City’s water treatment plant and / or the
Corporation’s office and store.
AVEC is currently using Denali Commission funding to complete design and permitting of a new
Alaska Village Electric Cooperative, Inc.
Saint Michael/Stebbins Wind Design and Permitting
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 16 of 17 8/26/2011
power plant in Stebbins. This work should be completed by 2012. AVEC has applied for power
plant construction funding and expects to be awarded and construct the project between 2013
and 2015.
AVEC is carefully planning energy infrastructure upgrades in St. Michael and Stebbins. Final
design and permitting of a wind farm to serve both communities is the next logical step in this
plan. If funding for the wind farm design is awarded in 2012, work could be completed in
conjunction with design and permitting of the Stebbins power plant. AVEC would seek funding
and to construct the wind farm when the power plant is constructed; thereby decreasing
construction costs of both projects.
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 St. Michael Local Economic Development Plan (Kawerak, April 2004) shows support for this
project. Development Goal 3 list protecting environmental conditions for a healthier
community. One of the objectives under this goal (B) is to keep the environment clean and use
less energy to preserve our natural resources by developing wind power and solar power to
power community storage freezers.
The Stebbins Local Economic Development Plan (Kawerak, April 2004) shows support for this
project. Development Goal 2 lists obtaining more buildings and services for the community for
economic growth. One of the objectives (D) under this goal is to develop alternative and
cheaper forms of energy to improve the cost of living by developing wind generator, solar or
thermal energies as an alternative energy source.
Letters of have been received from the City of St. Michael, the Native Village of St. Michael, the
St. Michael Native Corporation, the City of Stebbins, the Stebbins Community Association, and
the Stebbins Native Corporation in support of this project (See Tab D.)
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
AVEC plans to complete final design and permitting of a wind farm in St. Michael. This work
would cost $235,000. AVEC requests $223,250 from AEA. AVEC will provide $11,750 as cash
contribution.
Alaska Village Electric Cooperative, Inc.
Saint Michael/Stebbins Wind Design and Permitting
Renewable Energy Fund
Grant Application Round 5
AEA 12-001 Grant Application Page 17 of 17 8/26/2011
A detail of the grant budget is below. Also see Tab C.
Milestone or Task Grant Funds AVEC Cash
Match TOTALS
1. Project Scoping and Contractor Solicitation for
Planning and Design $ 4,750 $ 250 $ 5,000
2. Permit Applications (as needed) $ 52,250 $ 2,750 $ 55,000
3. Final Environmental Assessment and Mitigation
Plans (as needed)$ 23,750 $ 1,250 $ 25,000
4. Resolution of Land Use, ROW Issues $42,750 $2,250 $45,000
5. Permit Approvals (as needed)$0 $0 $0
6. Final System Design $ 95,000 $ 5,000 $ 100,000
7. Engineers Cost Estimate $ 0 $0 $0
8. Updated Economic and Financial Analysis $4,750 $250 $5,000
9. Negotiated power sales agreements with
approved rates $ 0 $ 0 $ 0
10. Final Business and Operational Plan $0 $0 $0
TOTALS $223,250 $11,750 $235,000
Once the final design and permitting is completed, AVEC would seek funding to construct
turbines and an intertie to serve the communities of St. Michael and Stebbins. AVEC would
provide a 10% cash match to construction funding.
Tab A
Resumes
Tab B
Cost Worksheet
Renewable Energy Fund Round 5
Project Cost/Benefit Worksheet
RFA AEA12-001 Application Cost Worksheet Page 1 8-26-11
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.
St. Michael Wind Final Design and Permitting
1. Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability.6.85 m/s @ 30m (Wind Report dtd 8/8/11)
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 6
ii. Rated capacity of generators/boilers/other 499 kW /363 kW /229 kW (St. Michael)
499 kW/ 314 kW/ 207 kW (Stebbins)
iii. Generator/boilers/other type diesel engine generators
iv. Age of generators/boilers/other St. Michael: 499 kW (5 years),314 kW (10 years -
OH in 2006) and 207 kW (15 years -OH in 2006)
Stebbins: 499 kW (3 years), 305 kW (4 years), and
250 kW (17 years-OH in 2000);
v. Efficiency of generators/boilers/other 14.26 kWh/gallon (2010 actual St. Michael)
13.57 kWh/gallon (2010 actual Stebbins)
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $140,000 (labor and nonlabor combined)
ii. Annual O&M cost for non-labor
c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the
Railbelt grid, leave this section blank)
i. Electricity [kWh]3,178,075 kWh (2010 actual, combined with Stebbins)
ii. Fuel usage
Diesel [gal]227,252 gallon (2010 actual, combined with Stebbins)
Other
iii. Peak Load 660 kW (2010 actual combined with Stebbins)
iv. Average Load 403 kW (2010 actual combined with Stebbins)
v. Minimum Load 133 kW (estimated combined with Stebbins)
vi. Efficiency
vii. Future trends
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu]
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
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 8-26-11
v. Wood [cords, green tons, dry tons]
vi. Other
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]
400 kW wind
b) Proposed annual electricity or heat production (fill in as applicable)
i.Electricity [kWh]1,180,000 kWh
ii.Heat [MMBtu]
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood [cords, green tons, dry tons]
iv. Other
4. Project Cost
a) Total capital cost of new system $8,000,000
b) Development cost
c) Annual O&M cost of new system $5,900
d) Annual fuel cost
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity 93,500 gallon (HOMER simulation)
ii. Heat 2,800 gallon (HOMER simulation)
iii. Transportation
b) Current price of displaced fuel $4.43 (St. Michael 2011 ISER spreadsheet)
$4.44 (Stebbins 2011 ISER spreadsheet)
c) Other economic benefits
d) Alaska public benefits
6. Power Purchase/Sales Price
a) Price for power purchase/sale N/A
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 0.90
Payback (years)14
Tab C
Budget Form
Renewable Energy Fund Grant, Round V
Grant Application Budget Form
St. Michael Wind Final Design and Permitting 8/25/2011
1. Project Scoping and Contractor Solicitation for Planning and Design August 1, 2012 4,750$ 250$cash 5,000$
2. Permit Applications (as needed) October 31, 2012 52,250$ 2,750$cash 55,000$
3. Final Environmental Assessment and Mitigation Plans (as needed) February 1, 2013 23,750$ 1,250$cash 25,000$
4. Resolution of Land Use, ROW Issues February 1, 2013 42,750$ 2,250$cash 45,000$
5. Permit Approvals (as needed) February 1, 2013 -$ -$cash
6. Final System Design May 1, 2013 95,000$ 5,000$cash 100,000$
7. Engineers Cost Estimate June 1, 2013 -$ -$cash
8. Updated Economic and Financial Analysis July 1, 2013 4,750$ 250$cash 5,000$
9. Negotiated power sales agreements with approved rates Not Applicable -$ -$
10. Final Business and Operational Plan July 1, 2013 -$ -$cash
TOTALS 223,250$ 11,750$ 235,000$
Budget Categories:
Direct Labor & Benefits 47,500$ 2,500$cash 50,000$
Travel & Per Diem 14,250$ 750$cash 15,000$
Equipment -$ -$cash
Materials & Supplies -$ -$cash
Contractual Services 161,500$ 8,500$cash 170,000$
Construction Services -$ -$cash
Other -$ -$cash
-$ -$
TOTALS 223,250$ 11,750$ 235,000$
Applications should include a separate worksheet for each project phase (Reconnaissance, Feasibility, Design and Permitting, and Construction)-
Add additional pages as needed
TOTALSMilestone or Task
Anticipated
Completion Date
RE- Fund
Grant Funds
Grantee Matching
Funds
Source of Matching Funds:
Cash/In-kind/Federal
Grants/Other State
Grants/Other
1
Tab D
Letters of Support
Tab E
Authorized Signers Form
Tab F
Authority
Tab G
Additional Materials
Saint Michael, Alaska Wind Resource Report
Saint Michael met tower site on extinct cinder cone in upper center, D. Vaught photo
August 8, 2011
Douglas Vaught, P.E.
V3 Energy, LLC
Eagle River, Alaska
Saint Michael, Alaska Wind Resource Report | 2 Page
Summary
The wind resource measured at the Saint Michael met tower site 0021 is very good with measured wind
power class 5 (excellent). In addition to high average wind speeds and high wind power density, the site
experiences very low turbulence and initial calculations (based on relatively limited data to date)
indicate low extreme wind speed probability.
Met tower data synopsis
Data dates July 21, 2010 to July 9, 2011 (12 months), status:
operational
Wind power class 5 (excellent)
Power density mean, 30 m 434 W/m2
Wind speed mean, 30 m 6.85 m/s
Max. 10-min wind speed average 24.7 m/s
Maximum 2-sec. wind gust 29.8 m/s (Feb. 2011)
Weibull distribution parameters k = 1.85, c = 7.71 m/s
Wind shear power law exponent 0.150 (low)
Roughness class 0.90 (fallow field)
IEC 61400-1, 3rd ed. classification Undetermined at present
Turbulence intensity, mean 0.077 (at 15 m/s)
Calm wind frequency 25% (<4 m/s)
Community Description
St. Michael has a population of 401 people (2010 census) and is located on the east coast of St. Michael
Island in Norton Sound. It lies 125 miles southeast of Nome and 48 miles southwest of Unalakleet. St.
Michael has a subarctic climate with maritime influences during the summer. Summer temperatures
average 40 to 60 °F; winters average -4 to 16 °F. Extremes from -55 to 70 °F have been recorded. Annual
precipitation averages 12 inches, with 38 inches of snow. Summers are rainy, and fog is common.
Norton Sound is ice free from early June to mid-November.
A fortified trading post called "Redoubt St. Michael" was built by the Russian-American Company at this
location in 1833; it was the northernmost Russian settlement in Alaska. The Native village of "Tachik"
stood to the northeast. When the Russians left Alaska in 1867, several of the post's traders remained.
"Fort St. Michael," a U.S. military post, was established in 1897. During the gold rush of 1897, it was a
major gateway to the interior via the Yukon River. As many as 10,000 persons were said to live in St.
Michael during the gold rush. St. Michael was also a popular trading post for Eskimos to trade their
goods for Western supplies. Centralization of many Yup'iks from the surrounding villages intensified
after the measles epidemic of 1900 and the influenza epidemic of 1918. The village remained an
important trans-shipment point until the Alaska Railroad was built. The city government was
incorporated in 1969.
A federally-recognized tribe is located in the community -- the Native Village of Saint Michael. St.
Michael's population is largely Yup'ik Eskimo today, and many residents are descendants of Russian
Saint Michael, Alaska Wind Resource Report | 3 Page
traders. Seal, beluga whale, moose, caribou, fish, and berries are important staples. The sale and
importation of alcohol is banned in the village.
According to Census 2010, there were 117 housing units in the community and 96 were occupied. Its
population was 92 percent American Indian or Alaska Native; 5.5 percent white; 2.5 percent of the local
residents had multi-racial backgrounds. Additionally, 0.8 percent of the population was of Hispanic
descent.
Water is derived from Clear Lake and is treated and stored in a 1.2 million-gallon tank. The system
includes water delivery/holding tanks for homes, a piped gravity and vacuum sewer system with septic
treatment, and household plumbing. Electricity is provided by AVEC. There is one school located in the
community, attended by 172 students. Local hospitals or health clinics include Katherine Kobuk
Memorial Clinic (St. Michael). Emergency Services have coastal air and floatplane access. Emergency
service is provided by a health aide.
The St. Michael economy is based on subsistence food harvests supplemented by part-time wage
earning. Most jobs are held in city government, the IRA council, the village corporation, schools, and
local stores. In 2010, 14 residents held commercial fishing permits. The Stebbins/St. Michael Reindeer
Corral Project was completed in 1993 for a herd on Stuart Island. The reindeer are essentially
unmanaged.
Saint Michael is accessible by air and sea only. The state owns a 4,001' long by 75' wide gravel airstrip,
and a seaplane base is available. Regular and charter flights are available from Nome and Unalakleet. It
is near the Yukon River Delta and has a good natural harbor but no dock. Lighterage service is provided
on a frequent basis from Nome. Saint Michael receives at least one annual shipment of bulk cargo. A
10.5-mile road exists to Stebbins.
Test Site Location
The met tower is installed on an extinct cinder cone, located on Saint Michael Native Corporation land
near the road that connects Saint Michael to the village of Stebbins to the west. The site is large enough
to accommodate two to three wind turbines, but current land use planning by the corporation reserves
the site area (the cinder cone) for mining of lava basalt for construction activities. Although the site is
not at present near electrical distribution lines, near-term plans call for construction of an intertie
adjacent to the road between Saint Michael and Stebbins, which would make wind development on the
site more advantageous.
Site information
Site number 0021
Latitude/longitude N 63° 30’ 44.4”’ W 162° 11’ 39.7”, WGS 84
Site elevation 80 meters (260 ft)
Datalogger type NRG Symphonie, 10 minute time step
Tower type NRG 30-meter tall tower, 152 mm diameter
Anchor type DB88 duckbill
Saint Michael, Alaska Wind Resource Report | 4 Page
Topographic maps
Saint Michael, Alaska Wind Resource Report | 5 Page
Google Earth images
Saint Michael, Alaska Wind Resource Report | 6 Page
Tower sensor information
Channel Sensor type Height Multiplier Offset Orientation
1 NRG #40 anemometer 30 m (A) 0.765 0.35 090° T
2 NRG #40 anemometer 30 m (B) 0.765 0.35 270° T
3 NRG #40 anemometer 21 m 0.765 0.35 090° T
7 NRG #200P wind vane 28 m 0.351 000 000° T
9 NRG #110S Temp C 3 m 0.138 -86.3 N
Data Quality Control
Data quality is generally very good with nearly 96 percent data recovery of the primary 30 meter A
anemometer. Data recovery of the 30 m B anemometer though is less and data recover y of the 21 m
anemometer significantly less. For the 30 m A anemometer and the wind direction vane, missing data is
entirely attributable to winter-season icing events, which are characterized by non-variant output of the
anemometer at minimum offset and by non-variant output of the direction vane at the last operable
direction. It does appear though that for unknown reasons both the 30 m B and the 21 m anemometers
failed on June 28. Additionally, also for unknown reasons, the 21 m anemometer was inoperative for
two months from late August to late October 2010.
Data recovery summary table
Possible Valid Recovery
Label Units Records Records Rate (%)
Speed 30 m A m/s 50,886 48,720 95.7
Speed 30 m B m/s 50,886 46,285 91.0
Speed 21 m m/s 50,886 38,933 76.5
Direction 28 m ° 50,886 47,199 92.8
Temperature °C 50,886 50,886 100.0
Anemometer data recovery
30 m A anem. 30 m B anem. 21 m anem.
Possible Valid Recovery Possible Valid Recovery Possible Valid Recovery
Month Records Records Rate (%) Records Records Rate (%) Records Records Rate (%)
Jul 1,584 1,584 100.0 1,584 1,584 100.0 1,584 1,584 100.0
Aug 4,464 4,464 100.0 4,464 3,782 84.7 4,464 3,600 80.7
Sep 4,320 4,320 100.0 4,320 4,102 95.0 4,320 0 0.0
Oct 4,464 4,464 100.0 4,464 4,464 100.0 4,464 775 17.4
Nov 4,320 3,631 84.1 4,320 3,544 82.0 4,320 3,585 83.0
Dec 4,464 3,907 87.5 4,464 3,894 87.2 4,464 4,382 98.2
Jan 4,464 4,464 100.0 4,464 4,464 100.0 4,464 4,464 100.0
Feb 4,032 3,645 90.4 4,032 3,645 90.4 4,032 3,645 90.4
Mar 4,464 4,464 100.0 4,464 4,464 100.0 4,464 4,464 100.0
Apr 4,320 3,787 87.7 4,320 3,949 91.4 4,320 4,041 93.5
May 4,464 4,464 100.0 4,464 4,464 100.0 4,464 4,464 100.0
Jun 4,320 4,320 100.0 4,320 3,929 91.0 4,320 3,929 91.0
Saint Michael, Alaska Wind Resource Report | 7 Page
Jul 1,206 1,206 100.0 1,206 0 0.0 1,206 0 0.0
50,886 48,720 95.7 50,886 46,285 91.0 50,886 38,933 76.5
Wind Speed
Anemometer data collected from the met tower, from the perspectives of mean wind speed and mean
wind power density, indicate an excellent wind resource. The slightly lower wind speed measured by
the 30 m B anemometer compared to the 30 m A anemometer can be attributed by anemometer
placement to 270° True. With occasional easterly winds, the 30 m B anemometer would experience
some shadowing effects. Additionally, data recovery for the 30 m B anemometer is less, with apparent
sensor failure on June 28, 2011. Curiously, the 21 meter anemometer also failed at the same time,
although the 30 m A anemometer continues to operate normally. Cause of failure is unknown at
present. Note though that cold temperatures contributed to a higher wind power density than
otherwise might have been expected for the mean wind speeds.
Anemometer data summary
Variable
Speed 30 m
A
Speed 30 m
B
Speed 21
m
Measurement height (m) 30 30 21
Mean wind speed (m/s) 6.85 6.81 6.50
MMM wind speed (m/s) 6.83 6.69 6.35
Max 10-min wind speed (m/s) 24.6 24.7 22.7
Max gust wind speed (m/s) 29.8 29.8 29.1
Weibull k 1.85 1.82 1.80
Weibull c (m/s) 7.71 7.67 7.32
Mean power density (W/m²) 436 437 389
MMM power density (W/m²) 431 418 362
Mean energy content (kWh/m²/yr) 3,818 3,827 3,404
MMM energy content (kWh/m²/yr) 3,777 3,661 3,174
Energy pattern factor 2.11 2.15 2.18
Frequency of calms (%) 25.1 25.4 28.3
1-hr autocorrelation coefficient 0.932 0.928 0.932
Diurnal pattern strength 0.026 0.028 0.025
Hour of peak wind speed 20 20 17
Time Series
Time series calculations indicate high mean wind speeds during winter with more moderate mean wind
speeds during the summer months. This matches the village load profile where winter months have a
high electric and heat demand and summer months a lighter demand.
Saint Michael, Alaska Wind Resource Report | 8 Page
30 m A anemometer data summary
Mean Max Gust
Std.
Dev.
Weibull
k
Weibull
c
Year Month (m/s) (m/s) (m/s) (m/s)
2010 Jul 5.01 12.7 15.6 2.28 2.29 5.64
2010 Aug 5.22 17.9 22.6 3.02 1.82 5.89
2010 Sep 7.24 19.3 22.9 3.86 1.98 8.19
2010 Oct 6.49 18.2 22.9 3.51 1.94 7.32
2010 Nov 6.93 16.2 18.7 3.37 2.15 7.81
2010 Dec 6.91 20.5 25.2 3.88 1.82
2011 Jan 9.95 22.7 26.3 4.37 2.41 11.17
2011 Feb 8.40 24.6 29.8 5.63 1.48 9.27
2011 Mar 7.67 21.4 23.7 3.67 2.14 8.61
2011 Apr 6.38 23.1 28.7 3.45 1.95 7.21
2011 May 5.55 15.1 19.5 2.42 2.44 6.25
2011 Jun 5.44 14.5 17.6 2.50 2.30 6.13
2011 Jul 6.85 16.6 20.2 2.57 2.81 7.69
All data 6.85 24.6 29.8 3.86 1.85 7.71
Time series graph
Saint Michael, Alaska Wind Resource Report | 9 Page
Annual daily wind profile
Monthly daily wind profile
Probability Distribution Function
The probability distribution function (or histogram) of wind speed indicates a near-normal shape curve,
defined as the Raleigh distribution (k=2.0), defined as standard for wind power sites.
Saint Michael, Alaska Wind Resource Report | 10 Page
Wind Shear and Roughness
A wind shear power law exponent (α) of 0.158 indicates moderate wind shear at the site. Related to
wind shear, a calculated surface roughness of 0.0183 meters (indicating the height above ground level
where wind velocity would be zero) indicates relatively even terrain (roughness description: fallow field)
surrounding the met tower, especially in the direction of the prevailing north-northwest wind.
Vertical wind shear profile
Saint Michael, Alaska Wind Resource Report | 11 Page
Comparative wind shear profiles
Wind shear by direction sector, wind speed > 4 m/s
Mean Wind Speed
Direction Sector
Time
Steps
Wind
Sector
(%)
Speed 30
m A (m/s)
Speed 21
m (m/s)
Power Law
Exp (α)
Surface
Roughness
(m)
348.75° - 11.25° 2,499 9.0% 7.91 7.55 0.132 0.013
11.25° - 33.75° 5,338 19.1% 8.54 8.34 0.067 0.000
33.75° - 56.25° 3,703 13.3% 8.63 8.41 0.070 0.000
56.25° - 78.75° 2,392 8.6% 7.94 7.39 0.202 0.178
78.75° - 101.25° 2,021 7.2% 8.70 8.08 0.208 0.206
101.25° - 123.75° 1,464 5.2% 8.56 7.95 0.208 0.205
123.75° - 146.25° 1,697 6.1% 9.38 8.73 0.200 0.169
146.25° - 168.75° 1,635 5.9% 10.39 9.32 0.305 0.947
168.75° - 191.25° 1,682 6.0% 7.83 6.95 0.333 1.238
191.25° - 213.75° 1,399 5.0% 8.04 7.31 0.264 0.571
213.75° - 236.25° 1,105 4.0% 7.47 7.54 -0.025
236.25° - 258.75° 737 2.6% 6.47 7.55 -0.432
258.75° - 281.25° 590 2.1% 7.00 6.85 0.060 0.000
281.25° - 303.75° 277 1.0% 6.44 5.87 0.261 0.546
303.75° - 326.25° 575 2.1% 5.76 4.84 0.490 3.241
326.25° - 348.75° 790 2.8% 6.20 4.92 0.649 5.342
Extreme Winds
Extreme wind probability estimates will be included in the final wind resource report of this site, after
receipt of all data at the conclusion of the met tower study.
Temperature and Density
Saint Michael experiences cool summers and cold winters with resulting higher than standard air
density. Calculated air density during the met tower test period exceeds standard air density for a sea
level elevation (1.216 Kg/m3) by five percent. This is advantageous in wind power operations as wind
turbines produce more power at low temperatures (high air density) than at standard temperature and
density.
Saint Michael, Alaska Wind Resource Report | 12 Page
Temperature and density table
Temperature Air Density
Month Mean Min Max Mean Min Max
(°C) (°C) (°C) (kg/m³) (kg/m³) (kg/m³)
Jan -8.0 -27.3 4.8 1.320 1.258 1.422
Feb -10.6 -30.2 2.9 1.333 1.266 1.439
Mar -7.2 -18.6 5.3 1.315 1.255 1.373
Apr -4.4 -21.0 10.0 1.302 1.235 1.386
May 6.1 -4.9 21.4 1.252 1.187 1.303
Jun 12.7 5.8 22.1 1.223 1.184 1.253
Jul 13.1 6.2 22.9 1.221 1.181 1.251
Aug 13.8 7.6 24.6 1.218 1.174 1.245
Sep 10.7 1.4 20.1 1.232 1.192 1.273
Oct 2.4 -4.8 9.3 1.269 1.238 1.303
Nov -3.2 -14.3 7.1 1.295 1.247 1.351
Dec -13.4 -25.0 0.5 1.346 1.278 1.409
Annual 1.1 -30.2 24.6 1.277 1.174 1.439
Temperature boxplot
Saint Michael, Alaska Wind Resource Report | 13 Page
Air density DMap
Wind Speed Scatterplot
The wind speed versus temperature scatterplot below indicates that a substantial percentage of wind at
the Saint Michael met tower site coincides with cold temperatures, as one would expect. However,
during the met tower test periods, temperatures did not fall below -40°C, minimum operating
temperature for arctic-capable wind turbines, and barely fell below -30°C on just a few occasions.
Colder temperatures may occur during particular severe winters, but it is likely that temperatures colder
than -40°C are extremely rare at the site.
Wind speed/temperature
Saint Michael, Alaska Wind Resource Report | 14 Page
Wind Direction
Wind frequency rose data indicates highly directional winds principally from the north-northeast with
easterly and southeasterly winds to a lesser extent. The mean value rose indicates that southeasterly
winds, when they do occur, are of high energy and hence are storm winds. The wind energy rose
indicates that for wind turbine operations the majority of power-producing winds will be north-
northeast to northeast. Calm frequency (percent of time that winds at the 30 meter level are less than 4
m/s) was 25 percent during the met tower test period.
Wind frequency rose Mean value rose
Wind energy rose Scatterplot rose
Saint Michael, Alaska Wind Resource Report | 15 Page
Wind density roses by month
Turbulence
Turbulence intensity at the Saint Michael met tower test site is well within acceptable standards with an
IEC 61400-1, 3rd edition (2005) classification of turbulence category C, which is the lowest defined.
Turbulence intensity, 30 m, all direction sectors
Saint Michael, Alaska Wind Resource Report | 16 Page
Turbulence table, 30 m A data
Bin Bin Endpoints
Records
in Bin
Standard
Representative
TI
Midpoint Lower Upper Mean Deviation Peak
(m/s) (m/s) (m/s) TI of TI TI
1 0.5 1.5 1,434 0.396 0.157 0.596 0.909
2 1.5 2.5 2,807 0.201 0.099 0.328 1.000
3 2.5 3.5 4,268 0.138 0.066 0.223 0.655
4 3.5 4.5 5,562 0.111 0.055 0.182 0.553
5 4.5 5.5 6,069 0.096 0.047 0.157 0.511
6 5.5 6.5 5,685 0.089 0.042 0.143 0.413
7 6.5 7.5 4,571 0.086 0.038 0.135 0.408
8 7.5 8.5 3,635 0.086 0.035 0.131 0.303
9 8.5 9.5 3,280 0.085 0.033 0.127 0.275
10 9.5 10.5 2,507 0.082 0.029 0.120 0.235
11 10.5 11.5 2,190 0.077 0.026 0.110 0.223
12 11.5 12.5 1,662 0.075 0.024 0.106 0.342
13 12.5 13.5 1,437 0.077 0.021 0.104 0.194
14 13.5 14.5 1,007 0.077 0.019 0.101 0.196
15 14.5 15.5 643 0.077 0.018 0.100 0.160
16 15.5 16.5 475 0.078 0.017 0.100 0.136
17 16.5 17.5 412 0.076 0.017 0.097 0.149
18 17.5 18.5 261 0.075 0.018 0.098 0.125
19 18.5 19.5 145 0.079 0.015 0.099 0.118
20 19.5 20.5 114 0.081 0.018 0.104 0.124
21 20.5 21.5 63 0.084 0.016 0.105 0.131
22 21.5 22.5 41 0.086 0.015 0.105 0.113
23 22.5 23.5 23 0.086 0.011 0.099 0.111
24 23.5 24.5 10 0.084 0.007 0.094 0.097
25 24.5 25.5 1 0.077 0.000 0.077 0.077
System Report - StMikeStebbins.hmr
System architecture
Cost summary
Net Present Costs
Annualized Costs
Wind turbine4 Northwind100/21RevB
Generator 1 499 kW
Generator 2 363 kW
Generator 3 229 kW
Total net present cost $ 7,983,868
Levelized cost of energy $ 0.196/kWh
Operating cost $ 624,552/yr
Component Capital Replacement O&M Fuel Salvage Total
($)($)($)($)($)($)
Northwind100/21RevB 0 0 0 0 0 0
Generator 1 0 0 0 3,364,084 0 3,364,084
Generator 2 0 0 0 3,080,695 0 3,080,695
Generator 3 0 0 0 1,539,093 0 1,539,093
System 0 0 0 7,983,872 0 7,983,872
Component Capital Replacement O&M Fuel Salvage Total
($/yr)($/yr)($/yr)($/yr)($/yr)($/yr)
Northwind100/21RevB 0 0 0 0 0 0
Generator 1 0 0 0 263,161 0 263,161
Generator 2 0 0 0 240,993 0 240,993
Generator 3 0 0 0 120,398 0 120,398
System 0 0 0 624,552 0 624,552
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Electrical
AC Wind Turbine: Northwind100/21RevB
Component Production Fraction
(kWh/yr)
Wind turbines 1,178,653 36%
Generator 1 946,456 29%
Generator 2 831,254 25%
Generator 3 326,809 10%
Total 3,283,172 100%
Load Consumption Fraction
(kWh/yr)
AC primary load 3,178,881 100%
Total 3,178,881 100%
Quantity Value Units
Excess electricity 104,378 kWh/yr
Unmet load 0.0139 kWh/yr
Capacity shortage 0.00 kWh/yr
Renewable fraction 0.359
Variable Value Units
Total rated capacity 412 kW
Mean output 135 kW
Capacity factor 32.7 %
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Generator 1
Generator 2
Total production 1,178,653 kWh/yr
Variable Value Units
Minimum output 0.00 kW
Maximum output 400 kW
Wind penetration 37.1 %
Hours of operation 7,571 hr/yr
Levelized cost 0.00 $/kWh
Quantity Value Units
Hours of operation 2,440 hr/yr
Number of starts 843 starts/yr
Operational life 6.15 yr
Capacity factor 21.7 %
Fixed generation cost 34.9 $/hr
Marginal generation cost 0.188 $/kWhyr
Quantity Value Units
Electrical production 946,456 kWh/yr
Mean electrical output 388 kW
Min. electrical output 180 kW
Max. electrical output 499 kW
Quantity Value Units
Fuel consumption 263,161 L/yr
Specific fuel consumption 0.278 L/kWh
Fuel energy input 2,589,506 kWh/yr
Mean electrical efficiency 36.5 %
Quantity Value Units
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Generator 3
Hours of operation 3,334 hr/yr
Number of starts 1,103 starts/yr
Operational life 4.50 yr
Capacity factor 26.1 %
Fixed generation cost 25.4 $/hr
Marginal generation cost 0.188 $/kWhyr
Quantity Value Units
Electrical production 831,254 kWh/yr
Mean electrical output 249 kW
Min. electrical output 49.5 kW
Max. electrical output 363 kW
Quantity Value Units
Fuel consumption 240,993 L/yr
Specific fuel consumption 0.290 L/kWh
Fuel energy input 2,371,367 kWh/yr
Mean electrical efficiency 35.1 %
Quantity Value Units
Hours of operation 3,678 hr/yr
Number of starts 946 starts/yr
Operational life 4.08 yr
Capacity factor 16.3 %
Fixed generation cost 16.0 $/hr
Marginal generation cost 0.188 $/kWhyr
Quantity Value Units
Electrical production 326,809 kWh/yr
Mean electrical output 88.9 kW
Min. electrical output 22.9 kW
Max. electrical output 224 kW
Quantity Value Units
Fuel consumption 120,398 L/yr
Specific fuel consumption 0.368 L/kWh
Fuel energy input 1,184,718 kWh/yr
Mean electrical efficiency 27.6 %
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Emissions
Pollutant Emissions (kg/yr)
Carbon dioxide 1,644,650
Carbon monoxide 4,060
Unburned hydocarbons 450
Particulate matter 306
Sulfur dioxide 3,303
Nitrogen oxides 36,224
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System Report - StMikeStebbins.hmr
System architecture
Cost summary
Net Present Costs
Annualized Costs
Generator 1499 kW
Generator 2363 kW
Generator 3229 kW
Total net present cost $ 11,005,524
Levelized cost of energy $ 0.271/kWh
Operating cost $ 860,926/yr
Component Capital Replacement O&M Fuel Salvage Total
($)($)($)($)($)($)
Generator 1 0 0 0 5,982,412 0 5,982,412
Generator 2 0 0 0 2,792,230 0 2,792,230
Generator 3 0 0 0 2,230,889 0 2,230,889
System 0 0 0 11,005,530 0 11,005,530
Component Capital Replacement O&M Fuel Salvage Total
($/yr)($/yr)($/yr)($/yr)($/yr)($/yr)
Generator 1 0 0 0 467,984 0 467,984
Generator 2 0 0 0 218,427 0 218,427
Generator 3 0 0 0 174,515 0 174,515
System 0 0 0 860,926 0 860,926
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Electrical
Generator 1
Component Production Fraction
(kWh/yr)
Generator 1 1,746,867 55%
Generator 2 817,473 26%
Generator 3 614,504 19%
Total 3,178,844 100%
Load Consumption Fraction
(kWh/yr)
AC primary load 3,178,881 100%
Total 3,178,881 100%
Quantity Value Units
Excess electricity 0.00 kWh/yr
Unmet load 0.0225 kWh/yr
Capacity shortage 0.00 kWh/yr
Renewable fraction 0.000
Quantity Value Units
Hours of operation 3,996 hr/yr
Number of starts 672 starts/yr
Operational life 3.75 yr
Capacity factor 40.0 %
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Generator 2
Fixed generation cost 34.9 $/hr
Marginal generation cost 0.188 $/kWhyr
Quantity Value Units
Electrical production 1,746,867 kWh/yr
Mean electrical output 437 kW
Min. electrical output 368 kW
Max. electrical output 499 kW
Quantity Value Units
Fuel consumption 467,984 L/yr
Specific fuel consumption 0.268 L/kWh
Fuel energy input 4,604,965 kWh/yr
Mean electrical efficiency 37.9 %
Quantity Value Units
Hours of operation 2,548 hr/yr
Number of starts 644 starts/yr
Operational life 5.89 yr
Capacity factor 25.7 %
Fixed generation cost 25.4 $/hr
Marginal generation cost 0.188 $/kWhyr
Quantity Value Units
Electrical production 817,473 kWh/yr
Mean electrical output 321 kW
Min. electrical output 270 kW
Max. electrical output 363 kW
Quantity Value Units
Fuel consumption 218,427 L/yr
Specific fuel consumption 0.267 L/kWh
Fuel energy input 2,149,321 kWh/yr
Mean electrical efficiency 38.0 %
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Generator 3
Emissions
Quantity Value Units
Hours of operation 3,680 hr/yr
Number of starts 734 starts/yr
Operational life 4.08 yr
Capacity factor 30.6 %
Fixed generation cost 16.0 $/hr
Marginal generation cost 0.188 $/kWhyr
Quantity Value Units
Electrical production 614,504 kWh/yr
Mean electrical output 167 kW
Min. electrical output 106 kW
Max. electrical output 224 kW
Quantity Value Units
Fuel consumption 174,515 L/yr
Specific fuel consumption 0.284 L/kWh
Fuel energy input 1,717,228 kWh/yr
Mean electrical efficiency 35.8 %
Pollutant Emissions (kg/yr)
Carbon dioxide 2,267,102
Carbon monoxide 5,596
Unburned hydocarbons 620
Particulate matter 422
Sulfur dioxide 4,553
Nitrogen oxides 49,934
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Notes: Wind speed and direction prediction map from AWS Truewind model. Met tower site Class 3 predicted; high Class 4/low Class 5 actual. Proposed
Stebbins turbine site has same predicted wind class as met tower site. Proposed St. Michael turbine site predicted one wind class less than met tower site.
Proposed St Michael turbine site Met Tower, Site 0021
Proposed Stebbins turbine site
After recording, return to:
Alaska Village Electric Cooperative
4831 Eagle Street
Anchorage, AK 99503
Ground Lease and Agreement
between
Alaska Village Electric Cooperative, Inc.,
and
St. Michael Native Corporation
This Lease is being made between Alaska Village Electric Cooperative, Inc.
(hereinafter “AVEC”), whose address is 4831 Eagle Street, Anchorage, AK 99503 and
St. Michael Native Corporation (hereinafter “Land Owner”) whose address is P.O. Box
59049, St. Michael, Alaska 99659.
1.Description of Location. Land Owner leases to AVEC that certain
property described as the South ½ of the Southwest ¼ of Section 8, and
the North ½ of the Northwest ¼ of Section 17, Township 23 South, Range
18 West, Kateel River Meridian, Cape Nome Recording District, Second
Judicial District. The proposed location is shown on the attached Exhibit
A. This description allows the project to be sited relative to community,
geotechnical, and community resources. Upon completion of the project,
the actual boundaries of the project shall be surveyed to define the
smallest practical parcel allowing for required setbacks, access and
clearances. The description is approximate and is subject to amendments
to the description necessary to reflect as built alignments of
improvements. The Lease includes all rights-of-way, licenses, or
easements now or in the future relating to Land Owner’s title in the
property and any improvements on the property. The Lease includes all
rights-of-way, licenses, or easements now or in the future relating to Land
Owner’s title in the property and any improvements on the property.
2.Length of Lease. The Lease will last for fifty (50) years, beginning on
___________________, and will terminate on ____________________or
upon conveyance of the property pursuant to paragraph no. 3.
3.Survey and Conveyance. The parties agree that after the project is
constructed, AVEC will survey the appropriate parcel that is actually
needed for the AVEC facility as outlined in paragraph no. 1 above. After
the survey is recorded, the Landowner will convey fee title of the surveyed
parcel to AVEC. AVEC will then relinquish the subject lease.
4.Rent. Rent for this Lease will be in the total amount of One Dollar and
No/100 ($1). As additional consideration for this Lease, AVEC promises
to use the property for power generation or transmission purposes during
the term of the Lease.
5.Access to the Parcel. The Land Owner guarantees legal access to the
parcel and will grant an access easement to the parcel as needed after
construction.
6.Improvements.
(a) AVEC will have the unconditional right to build and develop wind
power generation, transmission, control, and distribution facilities
on the property. Such facilities include, but are not limited to:
(i)Wind turbine power generation;
(ii)Above or underground transmission and distribution lines
for power or heat;
(iii) Equipment associated with the control of the process of
wind generation, transmission or distribution;
(iv) Other equipment or structures for the generation of wind
power; and
(v)Any associated facilities that further the purposes of the
Lease, including infrastructure improvements such as water
lines, sewer lines, fences, etc.
(b) AVEC will be responsible for obtaining permits and governmental
approvals for construction of the facilities mentioned in Paragraph
6(a).
7.Maintenance and Construction Obligations.
(a) Maintenance. AVEC will, at its expense, keep any improvements,
including any water, sewer, waste water drain lines, fences,
vehicle/pedestrian access ways, trench drains and utilities, on the
property in good repair and maintenance, and in a safe, sanitary,
orderly, and sightly condition. The improvements will be
maintained in compliance with applicable federal, state, and local
regulations.
(b) Construction. AVEC may remove all or portions of any existing
improvements on the property in its sole discretion.
8.Division. AVEC may divide the property into two (2) or more parcels for
purposes of development, assignment, or mortgage. In conjunction with
such a division, and upon written request of AVEC, AVEC and Land
Owner shall execute new leases identical in terms to this Lease for each
new parcel.
9.No Right of Entry. Land Owner will not have the right to enter the
property during the term of the Lease without AVEC’s permission.
AVEC will grant permission to enter the premises if entry is necessary for
Land Owner to perform its obligations under this Lease, or to comply with
a federal, state, or local law, regulation, or directive.
10.Payment of Taxes and Other Charges. Land Owner shall be responsible
for the payment of all real property taxes on the property during the term
of the Lease. AVEC shall be responsible for payment of any sales tax,
excise tax, gross receipts tax, or other business tax associated with its use
of the property. The parties will make all payments of taxes directly to the
charging governmental entity prior to delinquency, and before any fine,
interest, or penalty shall become due or be imposed by operation of law
for their nonpayment.
11.Indemnification.
(a) Land Owner shall indemnify, save, and hold AVEC harmless, and
defend AVEC at Land Owner’s sole cost and expense against any
claim or liability for any injury to any person or persons or damage
to any property or any other liability arising or relating to any act,
omission, neglect or misconduct of Land Owner, its officers,
agents, subcontractors, servants, or employees relating to AVEC’s
Lease of the property from Land Owner or Land Owner’s
obligations under this Lease.
(b) AVEC shall indemnify, save, and hold Land Owner harmless, and
defend Land Owner at AVEC’s sole cost and expense against any
claim or liability for any injury to any person or persons or damage
to any property or any other liability arising or relating to any act,
omission, neglect or misconduct of AVEC, its officers, agents,
subcontractors, servants, or employees relating to AVEC’s Lease
of the property from Land Owner or AVEC’s obligations under
this Lease.
(c) The parties expressly waive any right to common law
indemnification.
12.Insurance. AVEC may maintain insurance relating to the property.
13.Hazardous Materials & Environmental Compliance.
(a) As detailed in Paragraph 6, AVEC may use the property for wind
generation facilities. Such use may require Hazardous Materials to
be brought onto, used, and stored on the property. AVEC will
indemnity, save, and hold Land Owner harmless, and defend Land
Owner at AVEC’s sole cost and expense against any claim or
liability for any injury to any person or persons or damage to any
property or any other liability arising or resulting from any
negligent act, omission, or intentional misconduct of AVEC, its
officers, agents, subcontractors, servants, or employees relating to
AVEC’s use, transportation, or storage of Hazardous Materials on
the property.
(b) The presence or use of Hazardous Materials on the property, or
violations of federal, state, or local environmental laws,
regulations, or directives by AVEC, shall not constitute a breach of
this Lease agreement.
(c) As used herein the term “Hazardous Material” means any
hazardous or toxic substance, material, or waste which is or
becomes regulated by any local government authority, the State of
Alaska, the United States Government, or any other governmental
entity. The term “Hazardous Material” includes, without
limitation, any material or substance that is (i) defined as a
“hazardous substance” under appropriate state law provisions (ii)
petroleum; (iii) asbestos; (iv) designated as a “hazardous
substance” pursuant to Section 311 of the Federal Water Pollution
Control Act (33 U.S.C. 1321); (v) designed as a “hazardous waste”
pursuant to Section 1004 of the Federal Resource Conservation
and Recovery Act (42 U.S.C. 6903); (vi) defined as a “hazardous
substance” pursuant to Section 101 of the Comprehensive
Environmental Response, Compensation and Liability Act (42
U.S.C. 9601); or (vii) defined as a “regulated substance” pursuant
to Subchapter IX Solid Waste Disposal Act (Regulation of
Underground Storage Tanks) (42 U.S.C. 6991).
14.Lease Termination. In the event of Lease termination or expiration,
AVEC may, at its sole discretion, choose to:
(a) leave the property with improvements and equipment in place;
(b) remove or destroy any improvements or equipment on the
property; or
(c) remove or destroy some improvements and equipment while
leaving other equipment or improvements in place.
15.Modification. This Lease may not be amended or modified except in
writing signed by both parties and any mortgagee of any portion of the
leasehold estate.
16.Subletting, Assignment, Mortgage, and Security Interests.
(a) Sublet. AVEC may sublet portions of the property during the term
of this Lease to persons who will occupy a portion of the property
for the conduct of business consistent with the uses permitted
herein. Each sublease will be in writing and will provide that the
sublease is subject to this Lease and to any extension,
modifications or amendments of this Lease.
(b) Assignment. AVEC may assign this Lease in whole or in part. If
AVEC assigns the Lease, it will be relieved of all of its obligations
under this Lease as long as the person taking the assignment
assumes AVEC’s obligations under this Lease.
(c) Mortgages and Security Interests. AVEC may mortgage the
property as long as it gives written notice to Land Owner within
thirty (30) days after recording of any mortgage(s). AVEC may
also grant security interests in the property as necessary to secure
financing from the federal government or financial institutions.
Land Owner agrees to reasonably cooperate with AVEC in the
preparation of submission of any documents necessary for AVEC
to secure financing from Rural Utilities Service.
17.Land Owner’s Remedies and Breach.
(a) In the event that AVEC defaults on its obligations under this
Lease, Land Owner may terminate the Lease if:
(i) Land Owner has given written notice of the default to
AVEC; and
(ii) AVEC has not cured the default within sixty (60) days, or
in the case of a default which cannot reasonably be cured
within sixty (60) days, has not made reasonable efforts to
complete a cure of the default.
(b) In the event that Land Owner defaults upon any of its obligations
under this Lease, AVEC may terminate the Lease if:
(i) AVEC has given written notice of the default to Land
Owner; and
(ii) Land Owner has not cured the default within sixty (60)
days, or in the case of a default which cannot reasonably be
cured within sixty (60) days, has not made reasonable
efforts to complete a cure of the default.
(c) In the event of a termination under subparagraph (b), if AVEC
elects to leave any improvements or equipment in place, it shall be
entitled to recover from Land Owner the greater of the fair market
value of the equipment and improvements or the outstanding
balance on any loans used to purchase and install said
improvements or equipment.
18.Notices. Any notice required or desired to be given pursuant to this Lease
shall be in writing. Notices may be faxed or mailed and are effective on
the date they are received. Notices shall be given to:
Alaska Village Electric Cooperative, Inc.
4831 Eagle Street
Anchorage, Alaska 99503
Facsimile No. (907) 562-4086
with copy to:
Kemppel, Huffman and Ellis, P.C.
255 E. Fireweed Lane, Suite 200
Anchorage, Alaska 99503
Facsimile No. (907) 276-2493
and if addressed to Land Owner, the address of Land Owner is:
St. Michael Native Corporation
P.O. Box 59049
St. Michael, AK 99659
Facsimile No. (907) 923-3142
Upon written notice, the parties may change the address for notice
required under this Lease.
19.Warranty of Title. Land Owner agrees that it has the right and authority to
lease the property and that AVEC by paying rent and performing all
promises on AVEC’s part, will be able to use the property without
interruption or interference.
20.Condemnation.
(a) Termination. If, during the term of this Lease, title to the whole or
substantially all of the property is taken as the result of the exercise
of the power of eminent domain, this Lease shall, at the election of
AVEC terminate as of the date of vesting of title pursuant to such
proceeding. For the purposes of this Section 18, “substantially all
of the leased premises” shall be deemed to have been taken if a
taking under any such proceeding shall involve such an area,
whether the area be improved with a building(s) or be utilized for a
parking area or otherwise (including a deprivation of access to all
streets and highways abutting the leased premises), that AVEC
cannot reasonably operate in the remainder of the leased premises
the business being conducted on the leased premises at the time of
such taking.
(b) Award. The award made in any proceeding shall be divided
between Land Owner and AVEC as follows: The amount of any
such award attributable to the improvements or equipment AVEC
has provided shall belong to AVEC, and the remainder of the such
award shall belong to Land Owner; provided, however, in the
event title to the whole or substantially all of the property is taken,
or any mortgagee of the property so requires, AVEC shall be
obligated to use so much or all of its award as shall be necessary to
pay off any permanent mortgage of AVEC.
21.Easements. AVEC’s interest is subject to any easements of record as of
the date of this Lease.
22.Arbitration. AVEC and Land Owner agree that if any dispute arises
between them relating to this Lease, the dispute will be submitted for
arbitration. The determination of the arbitrator will be binding on the
parties. In the event the parties are unable to agree to an arbitrator or
method of selecting an arbitrator, the arbitrator shall be appointed by the
presiding judge of the Alaska judicial district in which the property is
located.
23.Attorney’s Fees. The prevailing party in any action or arbitration relating
to this Lease agreement is entitled to reasonable attorneys’ fees and costs
as may be fixed by the court or arbitrator.
24.Impossibility. If the obligations and duties of AVEC or Land Owner
cannot be performed by either of them because of an unforeseeable act
beyond their control, then for such time period as the rights and
obligations are incapable of being performed this Lease shall be suspended
and the time of such suspension shall not be counted against AVEC,
anything in this Lease to the contrary notwithstanding.
25.Recording. This Lease may be recorded at AVEC’s option. In the event
the Lease terminates, Land Owner shall have the right to record an
affidavit so stating.
IN WITNESS WHEREOF, the parties hereto have caused this Lease to be
executed:
FOR: ST. MICHAEL NATIVE CORPORATION
By:_______________________________
Title:_____________________________
STATE OF ALASKA )
) ss.
Second Judicial District )
THIS IS TO CERTIFY that before me, the undersigned, a Notary Public
in and for the State of Alaska, duly sworn and commissioned as such, personally
appeared , the of St. Michael
Native Corporation, whose name is subscribed to the foregoing instrument, and he/she
acknowledged to me that he/she is authorized to and did execute the same freely and
voluntarily for the uses and purposes contained therein.
IN WITNESS WHEREOF, I have hereunto set my hand and notarial seal
this day of , 2011.
Notary Public in and for Alaska
My Commission expires:
FOR ALASKA VILLAGE ELECTRIC COOPERATIVE, INC.
By:
Meera Kohler, President & CEO
STATE OF ALASKA )
) ss.
Third Judicial District )
THIS IS TO CERTIFY that before me, the undersigned, a Notary Public
in and for the State of Alaska, duly sworn and commissioned as such, personally
appeared MEERA KOHLER, the PRESIDENT & CEO of ALASKA VILLAGE
ELECTRIC COOPERATIVE, INC., whose name is subscribed to the foregoing
instrument, and she acknowledged to me that she is authorized to and did execute the
same freely and voluntarily for the uses and purposes contained therein.
IN WITNESS WHEREOF, I have hereunto set my hand and notary seal this
day of , 2011.
Notary Public in and for Alaska
My Commission expires: