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HomeMy WebLinkAbout2011 AVEC R5 App; Mt Village Wind Energy Construction __________________________________________________________________________________________ 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: Mountain Village 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 to serve the community of Mountain Village. The completed project will provide benefits to the community through the stabilized energy costs; the projected savings would be $231,000 during the first year of operations, with increased savings each following year. The project requires $4,217,306 to complete as proposed. AVEC is requesting $3,795,575 to complete the proposed project. AVEC will provide $421,731 in cash as a project match. Sincerely, Meera Kohler President and CEO cc: Brent Petrie, AVEC enclosures Alaska Village Electric Cooperative, Inc. Mountain Village Wind Energy Construction 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 16 8/26/2011 Mountain Village Wind- Construction and Commissioning 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. Mountain Village Wind Construction Project Renewable Energy Fund Grant Application Round 5 AEA 12-001 Grant Application Page 2 of 16 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) Mountain Village Wind- Construction and Commissioning 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. Mountain Village (pop. 813) is on the north bank of the Yukon River, approximately 20 miles west of St. Mary's and 470 miles northwest of Anchorage. It is at the foot of the 500 feet high Azachorok Mountain, the first mountain encountered by those traveling up the Yukon. It lies at approximately 62.09 North Latitude and 163.73 West Longitude. (Sec. 14, T023N, R079W, Seward Meridian.) 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 Design and Permitting Feasibility X Construction and Commissioning Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. AVEC proposes to complete erection, startup, and commissioning of two NW 100 wind turbines to supplement the existing power generation system for Mountain Village. AVEC would also upgrade the switch gear and add remote control to the system. Alaska Village Electric Cooperative, Inc. Mountain Village Wind Construction Project Renewable Energy Fund Grant Application Round 5 AEA 12-001 Grant Application Page 3 of 16 8/26/2011 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 primary financial benefit from this project would to offset fuel costs for power generation in Mountain Village. The projected displacement of diesel fuel used for village power generation is approximately 47,600 gal/yr (assuming 80% turbine availability). This project could save approximately $231,000 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 the project is $4,217,306 of which $3,795,575 is requested in grant funds from AEA. The remaining $421,731 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.$3,795,575 2.7.2 Other Funds to be provided (Project match)$421,731 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2)$4,217,306 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)$3,795,575 2.7.5 Estimated Direct Financial Benefit (Savings)$231,000 (year 1) $4,924,000 (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.) $to be determined Alaska Village Electric Cooperative, Inc. Mountain Village Wind Construction Project Renewable Energy Fund Grant Application Round 5 AEA 12-001 Grant Application Page 4 of 16 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 Mountain Village. 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 1, 2012 Order Wind Turbines and Towers:January 2013 Hire Installation Contractor:May 1, 2013 Turbines Ready to Ship:May 1, 2013 Turbines On Site:Summer 2013 Complete Civil Works: January 2014 Complete Turbine Erection and Electrical Works:February 2014 Complete Turbine Commissioning:April 2014 Complete Secondary Load Controller Commissioning:April 2014 Alaska Village Electric Cooperative, Inc. Mountain Village Wind Construction Project Renewable Energy Fund Grant Application Round 5 AEA 12-001 Grant Application Page 5 of 16 8/26/2011 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. 1. Confirmation that all Design and Feasibility Requirements are Complete (September 1, 2012) AVEC would work with the engineering contractor to confirm that all the design needs are in place prior to moving forward with selection of the construction contractor. 2. Completion of Bid Documents (October 2012) Bid documents would be completed by the engineers. 3. Contractor/Vendor Selection and Award (May 2013) The construction contractor would be selected, and a construction task order would be prepared. 4. Construction Phases (January 31-February 28, 2014) Major Procurement (Turbine, Integration, Foundation Materials) About six months is required before the turbines and towers are ready to ship. The turbines and towers would be ordered and arrive in Mountain Village by summer 2013. Foundation materials would be purchased and be on site ready to use for construction by December 2013. Logistics Equipment would be mobilized to the site by before the river freezes in the beginning of September 2013 and would be moved from the site by after break up in June 2014. Other logistics, such as setting up the construction camp would occur in December 2013-January 2014. Turbine Installation The turbines would be installed after the groundwork is completed in February 2014. Intertie and Distribution AVEC would intertie the wind turbines to the existing power system in the community. This work could occur before the turbines are installed in the summer 2013. System Integration Component Installation The new wind system’s integration components would be installed in February 2014. 5. Integration and Testing (February 28, 2014) Once the turbines are installed, integration and testing of the system would occur. Alaska Village Electric Cooperative, Inc. Mountain Village Wind Construction Project Renewable Energy Fund Grant Application Round 5 AEA 12-001 Grant Application Page 6 of 16 8/26/2011 6. Decommissioning Old Systems (Not Applicable) 7. Final Acceptance, Commissioning and Start-up (April 1, 2014) Commissioning would be done immediately following installation of the turbines. 8. Operations Reporting (April 1, 2014) Turbine operations would begin and required reporting would occur following start up for 4 months. 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 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. 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 communicate directly with Mountain Village residents to ensure that the community is informed of construction activities. Resumes for AVEC staff are included in Tab A. For project delivery, an amalgamated team approach would be utilized. To support the AVEC team, design consultants and construction managers (CM) would be selected. Both disciplines are derived from a resource bank of professional firms with applicable histories of performance in rural Alaska. The construction manager would work concurrently with the design consultant through design development to provide constructability insight and value engineering to maximize the overall effectiveness of the final construction documents. Concurrent with design development, material and equipment procurement packages would be formulated by the CM in collaboration with AVEC’s purchasing manager. Each package would be competitively procured or issued from cooperative materials. Purchase orders would be formulated with delivery dates consistent with dates required for barge or air transport consolidation. Multiple materials and/or equipment would be detailed for consolidated Alaska Village Electric Cooperative, Inc. Mountain Village Wind Construction Project Renewable Energy Fund Grant Application Round 5 AEA 12-001 Grant Application Page 7 of 16 8/26/2011 shipments to rural staging points, where secondary transport to the village destination is provided. The CM would track the shipments and provides handling services to and around the destination project sites. The CM would be responsible for the construction activities for all project components of the facility upgrade. Local labor forces would be utilized to the maximum extent possible to construct the projects. Local job training would be provided as a concurrent operation under the management and direction of the CM. All construction costs, direct and indirect would be reimbursed on a cost only reimbursement to the CM or paid directly by AVEC. For the facilities applied for in this application, AVEC is responsible for managing the commissioning process in content with the CM, designers and vendors. That entails testing and training of operational personnel, as well as providing for all contract closeout documents. Selection Process for Contractors:The 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 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. In general, logistics, construction activities, and weather all contain significant risks. Weather could delay shipping materials into the community and construction work; however, an experienced contractor, familiar with Alaskan weather conditions, would be selected. It is possible that turbines will need to be erected during winter months, and there are risks with winter work; however, AVEC will select a contractor familiar with winter construction of wind farms in Alaska. In addition, AVEC routinely purchases Builder’s Risk insurance to mitigate its exposure to these risks. Advance planning and allowing time for contingencies is crucial to success in such environments. SECTION 4 – PROJECT DESCRIPTION AND TASKS Tell us what the project is and how you will meet the requirements outlined in Section 2 of Alaska Village Electric Cooperative, Inc. Mountain Village Wind Construction Project Renewable Energy Fund Grant Application Round 5 AEA 12-001 Grant Application Page 8 of 16 8/26/2011 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. 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 report completed by V3 Energy, the wind resource measured at the Mountain Village 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 low extreme wind speed probability. (See Tab G for entire wind resource report.) 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. The existing diesel power plant in Mountain Village consists of four generators: a Caterpillar 3412 1200 (350 kW), a Caterpillar 3456 (505 kW), a Caterpillar 3412 1800 (601 kW), and a MTU 12V200 (710 kW). These generators were installed in 1984, 2005, 1982, and 2003 respectively. Aggregate generator efficiency in Mountain Village in 2010 was 14.87 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. Mountain Village uses diesel fuel for electrical power generation, heating oil for boiler (thermal) and home heating, and diesel and gasoline fuel for transportation needs. The proposed project would add two Northwind 100 wind turbines to the electrical power system. The anticipated effects are less usage of diesel fuel for electrical power generation. Between January and December 2010, 191,483 gallons of diesel fuel was consumed to generate 2,847,359 kWh. Installation of wind turbines in the communities would decrease the amount of diesel fuel used for power generation. Diesel generator use would be curtailed thereby decreasing generator operations and maintenance costs and enabling generators to last longer and need fewer overhauls. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Alaska Village Electric Cooperative, Inc. Mountain Village Wind Construction Project Renewable Energy Fund Grant Application Round 5 AEA 12-001 Grant Application Page 9 of 16 8/26/2011 Mountain Village encompasses 4.3 sq. miles of land. The climate is continental with maritime influences. Temperatures range from -44 to 80 °F. Annual precipitation averages 16 inches, with snowfall of 44 inches. In Mountain Village, 26.4 percent of the population is below the poverty line. The median household income is $49,167 in Mountain Village, which is 25% lower than the State’s median household income of $$66,712. The load of is highest during the winter months with the bulk of electricity consumed by residences and the school. The addition of wind turbines to the electric generation system would reduce the amount of diesel fuel used for power generation and energy costs would be stabilized in Mountain Village. Emergency medical service in Mountain Village is provided by a health aide. Therefore, medical problems and emergencies must be relayed by telephone or by some other communication means for outside assistance. Operation of the telephone system requires electricity. Reliable telephone service requires reliable electric service. Mountain Village has piped water and sewer systems. Reliable electric service is required for the continuous operation of the water and wastewater systems and to prevent freezing of the systems, which will cause extensive damage and interruptions in service. Like all of Alaska, Mountain Village is subject to long periods of darkness. Reliable electric service is essential for the operation of home lighting, streetlights, and security lighting. Residents rely on subsistence resources including salmon, moose, and waterfowl. Subsistence food is gathered and harvested and stored in refrigerators and freezers. Refrigeration is essential for the extended storage of perishable foodstuffs, and reliable electric service is essential for proper freeze storage of food. The construction of the proposed project would augment and improve the existing power generation system by incorporating a locally available renewable resource. The addition of two wind turbines to the electric generation system would reduce the amount of diesel fuel used for power generation and stabilize energy costs 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: 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 Alaska Village Electric Cooperative, Inc. Mountain Village Wind Construction Project Renewable Energy Fund Grant Application Round 5 AEA 12-001 Grant Application Page 10 of 16 8/26/2011 Description of renewable energy technology.Wind power is the renewable energy option of choice for Mountain Village. Of the wind turbine options available on the market, the “village” scale turbine size is considered most appropriate for the load profile of the community. 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 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 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 two Northwind 100 wind turbines to produce approximately 22% of the electricity consumed in the villages today. The wind turbines should supply over 612,500 kWh of electrical energy annually. Optimum installed capacity.Two Northwind 100 turbines are proposed to operate as a wind- diesel hybrid power system that would supply wind generated electricity to Mountain Village. The installed capacity would be 200 kW. Anticipated capacity factor.HOMER software was used to estimate capacity factor and system penetration (or renewable fraction) of two NW100 turbines in the power system in Mountain Village. Using Mountain Village wind data as discussed in section 4.1, at 80% availability the turbine capacity factor is predicted to be 22%. Anticipated annual generation.HOMER software estimates wind production with two NW 100 turbines of 612,500 kWh annually (80% turbine availability). Anticipated barriers.No barriers to successful installation and integration of a wind turbine in Mountain Village are expected. Basic integration concept.The integration design concept is comprised of two 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. Delivery Method.Power generated by the wind turbines would be distributed via the existing Alaska Village Electric Cooperative, Inc. Mountain Village Wind Construction Project Renewable Energy Fund Grant Application Round 5 AEA 12-001 Grant Application Page 11 of 16 8/26/2011 electrical distribution system. 4.3.2 Land Ownership Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend to approach land ownership and access issues. The proposed turbine sites Mountain Village is shown in preliminary design drawings included in Tab G. On August 16, 2011, AVEC obtained the verbal commitment of the Azachorok Incorporated in support of this location for a wind farm. AVEC sent the Corporation the lease agreement on August 23, 2011 and expects to have a signed lease agreement by the end of August 2011 (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 is currently seeking a no-hazard determination from the Federal Aviation Administration. Applications have been submitted for three turbines and determinations are expected by October 2011. 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 has been initiated for the installation of three turbines. It is expected that AVEC would receive concurrence from the Service by October 2011. Clean Water Act (Section 401) Permit:AVEC has initiated the obtaining a wetlands permit from the U.S. Army Corps of Engineers. It is expected that this permit will be issued by December 2011. 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 is currently being 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 compliance with the Migratory Bird Treaty Act. Mitigation, including annual bird Alaska Village Electric Cooperative, Inc. Mountain Village Wind Construction Project Renewable Energy Fund Grant Application Round 5 AEA 12-001 Grant Application Page 12 of 16 8/26/2011 monitoring activities around the wind turbines, is expected. Wetlands and other protected areas.AVEC is currently applying for a Wetlands permit for the placement of the access road and pads for the turbines. The project will avoid wetlands as feasible; however, complete avoidance of wetlands is not possible. It is expected that mitigation measures for impacts to the wetlands in the project area will include using Best Management Practices during construction. Archaeological and historical resources.AVEC has initiated consultation with the State Historic Preservation Office. A no effect finding is expected by October 2011. Aviation considerations.AVEC is currently seeking a no-hazard determination from the Federal Aviation Administration. Visual, aesthetics impacts.The turbines would be placed near the community of Mountain Village. 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 the project and visual impacts. 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 installation of two NW 100 turbines in Mountain Village that would serve the community via the existing electrical intertie. The project would cost $4,217,306 to complete. $3,795,575 is requested from AEA through the REF grant program, and AVEC would provide $421,731 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 ongoing reporting requirements for the purpose of reporting impacts of projects on the Alaska Village Electric Cooperative, Inc. Mountain Village Wind Construction Project Renewable Energy Fund Grant Application Round 5 AEA 12-001 Grant Application Page 13 of 16 8/26/2011 communities they serve.) AVEC estimates the cost of O&M around $3,500 annually. AEA estimates O&M would cost $0.005/kWh or approximately $3,062 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 wind/intertie project would be sold to AVEC’s existing customer base in the community of Mountain Village. The sales price for the wind generated electricity would be determined by the Regulatory Commission of Alaska as is done in all AVEC villages. The delivered cost of energy would be reduced as much as possible for customers within these communities under current regulations, but that price is expected. The project has an expected payback of 20 years. 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 Mountain Village could be about 47,600 gal/yr and 952,000 gallons over the project’s 20 year lifetime (assuming 80% turbine availability). This project could save $231,000 during its first full year of operation (expected to be 2014), with savings increasing each year, based on rising fuel costs. 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, AVEC could sell green tags from the project. Alaska Village Electric Cooperative, Inc. Mountain Village Wind Construction Project Renewable Energy Fund Grant Application Round 5 AEA 12-001 Grant Application Page 14 of 16 8/26/2011 Non-economic public benefits.The anticipated benefits of installation of the wind turbines would be reducing 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. Once the wind project is constructed, heat recovery systems could be put in place, and 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. This project would help with the understanding of the wind resource in western Alaska. Data acquired from this study assist nearby Yukon-Kuskokwim Delta communities to understand their wind resource. Data collected from this project could also be used to improve the accuracy of the State High Resolution Wind Map. Stabilized energy costs would allow community entities, including the City and Tribe to plan and budget for important economic, land use, recreation and community service, and environmental goals listed in the Mountain Village Comprehensive Community Economic Development Plan (City of Mountain Village, 2002), including elder housing and a cultural center; a youth and day care center; a lodge and visitors center; dock and industrial site; and a government and business complex. Area 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 turbines would provide a visual landmark for river, air, and overland travelers, which would help navigation in the area. Wind turbine orientation and rotor speed would provide visual wind information to residents. Running distribution lines out to the wind turbine site would open up additional land for future electrification. 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 Alaska Village Electric Cooperative, Inc. Mountain Village Wind Construction Project Renewable Energy Fund Grant Application Round 5 AEA 12-001 Grant Application Page 15 of 16 8/26/2011 systems that may be require to continue operation Commitment to reporting the savings and benefits 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 that AVEC serves. Operational issues which could arise:Integration of the SLCs for thermal dump and frequency controls would need to be addressed. 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 this project is occurring now. AVEC has completed preliminary design (see Tab G) and is actively working to obtain permits for the project. It is expected that 65% design will be completed by October 2011, and most permits will be in hand by October 2011. With previous Denali Commission funding, AVEC installed met towers and completed a wind study. AVEC used their own funding to examine possible intertie routes to St. Mary’s/Pitka’s Point. AVEC is currently using their own funds for design and permitting of this important project Construction of this project is the next logical step to help stabilize energy costs in Mountain Village. Alaska Village Electric Cooperative, Inc. Mountain Village Wind Construction Project Renewable Energy Fund Grant Application Round 5 AEA 12-001 Grant Application Page 16 of 16 8/26/2011 SECTION 8– LOCAL SUPPORT 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. Letters of support for the project have been received from the City of Mountain Village, the Asa'Carsarmiut Tribe, and Azachorok Incorporated (Tab G). 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 See the detailed budget under Tab C of this application. The total cost of construction and commissioning of two turbines in Mountain Village is $4,217,306. AVEC is requesting $3,795,575 in grant funds and would provide a cash match of $421,731 (10%) for the project. A detail of the grant budget is below. Milestone or Task Grant Funds AVEC Cash Match TOTALS 1. Confirmation that all Design and Feasibility Requirements are Complete $0 $0 $0 2. Completion of Bid Documents $4,500 $500 $5,000 3. Contractor/Vendor Selection and Award $0 $0 $0 4. Construction Phase $ 3,656,075 $406,231 $4,062,306 5. Integration and Testing (Including As-Built) $76,500 $8,500 $85,000 6. Decommissioning Old Systems $0 $0 $0 7. Final Acceptance, Commissioning and Start-up $49,500 $5,500 $55,000 8. Operations Reporting $9,000 $1,000 $10,000 TOTALS $3,795,575 $421,731 $4,217,306 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. Mountain Village Wind- Construction and Commissioning 1. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability.7.25 m/s (Wind Resource Report dtd 8/12/11) 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 4 ii. Rated capacity of generators/boilers/other 350 kW / 505 kW / 601 kW / 710 kW iii. Generator/boilers/other type diesel engine generators iv. Age of generators/boilers/other 27 yr / 6 yr / 29 yr / 8 yr v. Efficiency of generators/boilers/other 14.11 kWh/gallon (2010 actual) 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) 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]2,847,359 kWh (2010 actual) ii. Fuel usage Diesel [gal]191,498 gallon (2010 actual) Other iii. Peak Load 549 kW (2010 actual) iv. Average Load 374 kW (2010 actual) v. Minimum Load 127 kW (estimated) 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] 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 8-26-11 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] 200 kW wind b) Proposed annual electricity or heat production (fill in as applicable) i.Electricity [kWh]612,500 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 $4,200,000 b) Development cost c) Annual O&M cost of new system $3,062 d) Annual fuel cost 5. Project Benefits a) Amount of fuel displaced for i. Electricity 47,600 gallon (HOMER simulation) ii. Heat 500 gallon (HOMER simulation) iii. Transportation b) Current price of displaced fuel $4.40 (2011-ISER Spreadsheet) c) Other economic benefits d) Alaska public benefits 6. Power Purchase/Sales Price a) Price for power purchase/sale N/A 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio 0.86 Payback (years)20 years Tab C Budget Form Renewable Energy Fund Grant, Round V Grant Application Budget Form, Page 2 of 2 Mountain Village Construction 8/20/2011 1. Confirmation that all Design and Feasibility Requirements are Complete January 1, 2013 -$-$cash -$ 2. Completion of Bid Documents January 15, 2013 4,500$500$cash 5,000$ 3. Contractor/Vendor Selection and Award March 1, 2013 -$-$cash -$ 4. Construction Phase September 1, 2013 cash 4.1 Obtain Surety Bonds cash 4.1 Major Procurements (Turbine, Intertie, Integration, Foundation Mtls.)1,165,500$129,500$cash 1,295,000$ 4.2 Logistics 499,500$55,500$cash 555,000$ 4.3 Turbine Installation (Foundation, Errection, Installation)1,023,665$113,741$cash 1,137,406$ 4.4 Intertie and Distribution 629,910$69,990$cash 699,900$ 4.5 System Integration Component Installation 337,500$37,500$cash 375,000$ cash 5. Integration and Testing (Including As-Built)October 15, 2013 76,500$8,500$cash 85,000$ 6. Decommissioning Old Systems Not Applicable -$-$cash -$ 7. Final Acceptance, Commissioning and Start-up November 15, 2013 49,500$5,500$cash 55,000$ 8. Operations Reporting December 1, 2013 9,000$1,000$cash 10,000$ TOTALS 3,795,575$421,731$4,217,306$ Budget Categories: Direct Labor & Benefits 427,500$47,500$cash 475,000$ Travel & Per Diem 18,000$2,000$cash 20,000$ Equipment 994,500$110,500$cash 1,105,000$ Materials & Supplies -$-$cash Contractual Services -$-$cash Construction Services 2,355,575$261,731$cash 2,617,306$ Other -$-$cash TOTALS 3,795,575$421,731$4,217,306$ 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 5%#.'241,'%6#4'#/#2 )4#2*+% MT. VILLAGE, ALASKA 35% DESIGN SUBMITTAL SHEET INDEX WIND TURBINE PROJECT AUGUST 2011 Anchorage, Alaska 995034831 Eagle Street MOUNTAIN VILLAGE RUSSIA ANCHORAGE NOME KOTZEBUE BARROW JUNEAU FAIRBANKS CANADA KODIAK BETHEL UNALASKA Anchorage, Alaska 995034831 Eagle Street Anchorage, Alaska 995034831 Eagle Street Anchorage, Alaska 995034831 Eagle Street5%#.'8+%+0+6;/#2 )4#2*+% Anchorage, Alaska 995034831 Eagle Street5%#.'5+6'2.#0 )4#2*+% Anchorage, Alaska 995034831 Eagle Street5%#.'#%%'5541#&5'%6+10 )4#2*+% 5%#.'674$+0'2#&5'%6+10 )4#2*+% Anchorage, Alaska 995034831 Eagle Street5%#.''.'%64+%#.4'('4'0%'2.#0)4#2*+% Anchorage, Alaska 995034831 Eagle Street5%#.'2#46+#.'.'%64+%#.&+564+$76+102.#0)4#2*+% Anchorage, Alaska 995034831 Eagle Street5%#.'2#46+#.'.'%64+%#.&+564+$76+102.#0)4#2*+% Anchorage, Alaska 995034831 Eagle Street5%#.'2#46+#.'.'%64+%#.&+564+$76+102.#0)4#2*+% Anchorage, Alaska 995034831 Eagle Street5%#.'2#46+#.'.'%64+%#.&+564+$76+102.#0)4#2*+% Anchorage, Alaska 995034831 Eagle Street5%#.'2#46+#.'.'%64+%#.&+564+$76+102.#0)4#2*+% Anchorage, Alaska 995034831 Eagle Street5%#.''Ä0655%#.'(Ä20655%#.'%#0655%#.'/Ä0655%#.'/#4-'4$#..065 Anchorage, Alaska 995034831 Eagle Street5%#.'674$+0'/#56Ä5+&'8+'90655%#.'674$+0'/#56Ä(41068+'9065 Anchorage, Alaska 995034831 Eagle Street5%#.')#0)12'4#6'&59+6%*065 Jeff Stanley 8/24/2011 CRW Engineering Group 2 Project No. 113-95706 St. Marys & Mt Village Wind Turbines were provided on the plan sheets developed by CRW for Saint Marys dated 08/17/11 and by GPS coordinates of the met tower site in Mountain Village by AVEC. 3.1 Saint Marys – Wind Turbine Site Three wind turbines are planned for Saint Marys. The proposed site is south and west of the Pitkas Point Native Corporation borrow site. The borrow site is located along the road about midway between the Saint Marys village and airport. The site is located on Pitkas Point Native Corporation land and is the same location as the previous meteorological tower. The site has generally flat terrain on a gradual, north-facing slope. Probe refusal was typically met between 1 to 2 feet bgs, inferred to be on bedrock . Light tundra vegetation covers the site, with some taller brush along drainage areas (north end of site). There was no visible surface water at the site. An aerial view and typical ground conditions ar e shown in the attached photos 1 and 2, along with a view of the nearby borrow site in photo 3. The slope face appears to be well drained, and the ground surface was found to be generally free of water during the reconnaissance. Regular mounds in a straight alignment were noted in aerial photography, as well as on the ground. The mounds are aligned along a drainage path that runs southwest. Probe refusal was observed to be at 2 feet from the top of the mounds. It was noted that a n easement for a buried line is present in the area. 3.2 Mountain Village – Wind Turbine Site Two wind turbines are planned for Mountain Village. The preferred site is located along the south side of the road to Saint Marys about 3 miles east of the Mountain Village airport and 5 miles east of the village. The site currently has a meteorological tower in place, and is located on a level plateau overlooking the Yukon River. Typical vegetation includes small tundra grasses, and no tall shrubs were found on site. Probe refusal was met between 1 to 2 feet bgs on frozen organic soil (peat). A shallow test pit was advanced near the roadway. The hand probe met refusal at 2.1 feet bgs where the test pit was dug. The pit revealed frozen peat to the refusal depth. Several areas around the met tower setup were showing evidence of melting permafrost, which is likely a result of ground disturbance. The ponded water from degrading permafrost did not appear to be well drained due to the flat terrain and shallow permafrost. A view of typical ground conditions and ponded water at the met tower anchors are shown in the attached photos 4 and 5. Access to the site is achieved via the road to Saint Marys. 4.0 EXISTING LOCAL MATERIAL SOURCES Three material sources were briefly visited during the reconnaissance. Each of these sites is mining sedimentary rock of the Nulato Hills formation. The quality of this material needs to be evaluated further if it being considered for concrete aggregate. Jeff Stanley 8/24/2011 CRW Engineering Group 3 Project No. 113-95706 St. Marys & Mt Village Wind Turbines 4.1 Saint Marys Borrow Pit The Saint Marys borrow site is located immediately outside of the community of Saint Marys, on the north side of the road about 2/3rds of a mile from the village. Sedimentary b edrock is currently mined by means of ripping and excavation, and is crushed for use. Equipment is on-site to facilitate the crushing and screening of material. No visible bedrock slopes were observed at the time of the site visit. A bulk sample was collected from a large stockpile of material that appeared to be crushed and sorted. 4.2 Pitkas Point Borrow Pit Pitkas Point borrow pit is located approximately 2 miles outside of the community of Saint Marys and is adjacent to the north of the proposed wind turbine sites. Sedimentary bedrock is currently mined by means of ripping and excavation, and no blasting has been reported . No screening or crushing equipment was currently on site. The resource is a highly jointed and bedded, moderately weak sedimentary rock that is relatively steeply dipping. Overburden appears to be very thin around the perimeter of the borrow site; commonly ranging from approximately 5 to 10 feet thick, but at some locations, as thin as 2 feet. Bedrock is overlain by sandy silt to silty sand and organ ic material, with shrubs above. Bulk samples were collected from a relatively well sorted stockpile with 1 inch material and from an unsorted stockpile of crushed material. 4.3 Mountain Village Borrow Pit The Mountain Village borrow pit that is adjacent to the airstrip has been mined for use as gravel pads, roads, and runways. Based on discussions with the City of Mountain Village, gravel for concrete construction has been imported several times in recent years, and the local material has not been utilized for concrete aggregate. 5.0 CONCEPTUAL TOWER FOUNDATIONS Based on this preliminary information, shallow bedrock is expected at each of the proposed sites. The depth to bedrock is likely to be within a few feet below the ground surface in Saint Marys and within 5 to 15 ft in Mountain Village. We understand Northwind 100 turbines are planned, and we have assumed that loading, tower type, and foundation configuration and dimensioning will be in line with similar past AVEC projects. Based on the expected conditions, the foundation options most appropriate for these sites are as follows:  Shallow Concrete Mat Gravity Foundation  Shallow Concrete Foundation with Rock Anchors An evaluation should be made whether cast-in-place or pre-cast concrete is best suited for this site. Although these are the preferred foundations, other options may be viable, and a more detailed assessment can be made following a subsurface investigation. Jeff Stanley 8/24/2011 CRW Engineering Group 4 Project No. 113-95706 St. Marys & Mt Village Wind Turbines 6.0 CLOSING If you have any questions, please do not hesitate to contact us at (907) 344-6001. Attachments: Site Photographs 1 through 5 MD/TER/mlp August 2011 1 113-95706 Field Photos AVEC WIND TURBINE SITE RECONNAISSANCE - SAINT MARYS & MOUNTAIN VILLAGE PHOTO 1 Oblique aerial view of the proposed wind turbine site in Saint Marys. PHOTO 2 Typical ground conditions at Saint Marys site. August 2011 2 113-95706 Field Photos AVEC WIND TURBINE SITE RECONNAISSANCE - SAINT MARYS & MOUNTAIN VILLAGE PHOTO 3 View of Pitkas Point Native Corporation borrow site. PHOTO 4 View of typical ground conditions and Met Tower at Mountain Village preferred site. August 2011 3 113-95706 Field Photos AVEC WIND TURBINE SITE RECONNAISSANCE - SAINT MARYS & MOUNTAIN VILLAGE PHOTO 5 Meteorological tower at Mountain Village preferred site. Ponded water around anchors and pads indicate poor drainage and thawing of ice-rich permafrost. Mountain Village, Alaska Wind Resource Report Mountain Village met tower site, view upriver (southeast), D. Vaught photo August 12, 2011 Douglas Vaught, P.E. V3 Energy, LLC Eagle River, Alaska Mountain Village, Alaska Wind Resource Report Page | 2 Summary The wind resource measured at the Mountain Village met tower site 0068 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 low extreme wind speed probability. Met tower data synopsis Data dates November 5, 2009 to August 9, 2011 (21 months), status: operational Wind power class Low Class 5 (excellent) Power density mean, 50 m 523 W/m2 Wind speed mean, 50 m 7.62 m/s Max. 10-min wind speed average 26.5 m/s Maximum 2-sec. wind gust 31.8 m/s (Feb. 2011) Weibull distribution parameters k = 2.12, c = 8.65 m/s Wind shear power law exponent 0.180 (moderate) Roughness class 2.28 (few trees) IEC 61400-1, 3rd ed. classification Class III-c Turbulence intensity, mean 0.072 (at 15 m/s) Calm wind frequency (at 46 m) 16% (< 4 m/s) Community Description Mountain Village has a population of 813 people (2010 census) and is located on north bank of the Yukon River, approximately 20 miles west of St. Mary's and 470 miles northwest of Anchorage. It is at the foot of the 500 ft elevation Azachorok Mountain, the first mountain encountered by those traveling up the Yukon. The climate is continental with maritime influences. Temperatures range from -44 to 80 °F. Annual precipitation averages 16 inches, with snowfall of 44 inches. High winds and low visibility are common during winter. The Lower Yukon is ice-free from mid-June to October. Mountain Village was a summer fish camp until the opening of a general store in 1908. This prompted residents of Liberty Landing and Johnny's Place to immigrate. A Covenant Church missionary school was also built in that same year. A post office was established in 1923, followed by a salmon saltery in 1956 and a cannery in 1964. The city government was incorporated in 1967. Mountain Village became a regional education center in 1976 when it was selected as headquarters for the Lower Yukon School District. A federally-recognized tribe is located in the community -- the Asa'carsarmiut Tribal Council. Mountain Village is a Yup'ik Eskimo community with traditional subsistence practices. Commercial fishing and fish processing provide income. The sale and importation of alcohol is banned in the village. According to Census 2010, there were 211 housing units in the community and 184 were occupied. The Mountain Village population is 91.9 percent American Indian or Alaska Native, 4.2 percent white, 0.7 percent Asian, and 3.2 percent of the residents have multi-racial backgrounds. Additionally, 0.4 percent of the population is of Hispanic descent. Mountain Village, Alaska Wind Resource Report Page | 3 Water is derived from a well and is treated. Mountain Village operates a piped water and sewer system that serves 200 households and facilities. A landfill is available. Electricity is provided by AVEC. There is one school in the community, attended by 242 students. Local hospitals or health clinics include George Waskey Memorial Clinic in Mountain Village. Emergency service is provided by a health aide. A summer road links Mountain Village to Pitka's Point, Andreafsky, and St. Mary's. Mountain Village is accessible by riverboat or barge. A state-owned 3,500' long by 75' wide gravel airstrip is available, and floatplanes land on the Yukon River. In the winter passengers, cargo, and mail are flown in by plane. Snowmachines and skiffs are used for local transportation. Test Site Location The met tower is installed on an a broad, flat ridge on Mountain Village Native Corporation land east of the Mountain Village Airport and near the road that connects Mountain Village to the villages of Saint Mary’s and Pitka’s Point to the east. The site is large enough to accommodate several or more large turbines. 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 Mountain Village and Saint Mary’s, which would make wind development on the site more advantageous. Site information Site number 0068 Latitude/longitude N 62° 05’ 37.66” W 163° 35’ 24.68”, WGS 84 Site elevation 44 meters (144 ft) Datalogger type NRG Symphonie, 10 minute time step Tower type NRG 50-meter XHD tall tower, 254 mm diameter Anchor type Plate and /or duckbill Topographic maps Mountain Village, Alaska Wind Resource Report Page | 4 Google Earth image Tower sensor information Channel Sensor type Height Multiplier Offset Orientation 1 NRG #40 anemometer 50.3 m (50 m A) 0.760 0.36 000° T 2 NRG #40 anemometer 50.5 m (50 m B) 0.757 0.41 135° T 3 NRG #40 anemometer 40.8 m (40 m) 0.761 0.33 000° T 13 NRG #40 anemometer 41.1 m (41 m) 0.758 0.33 135° T Mountain Village, Alaska Wind Resource Report Page | 5 14 NRG #40 anemometer 31.8 m (31 m) 0.758 0.34 000° T 15 NRG #40 anemometer 32.0 m (32 m) 0.761 0.33 135° T 7 NRG #200P wind vane 46.1 m 0.351 270 090° T 8 NRG #200P wind vane 40.0 m 0.351 270 090° T 9 NRG #110S Temp C 3 m 0.138 -86.3 N 10 RH-5 relative humidity 2 m 0.098 0 N 12 iPack batter voltmeter n/a 0.021 0 n/a Data Quality Control Data quality is generally good with data recovery of all six anemometers greater than 90 percent and data recovery of the two wind vanes less but also greater than 90 percent. Data loss is limited to winter months only and is attributable to icing events, which are characterized by non-variant output of the anemometer at the minimum offset value (essentially zero) and by non-variant output of the direction vane at the last operable direction. Rime icing conditions have been observed at the nearby Saint Mary’s and Pitka’s Point met towers, but it is not known if icing conditions observed in the data are due to rime ice or freezing rain. Given the site elevation and known rime icing experience in Saint Mary’s, caution would err toward the former. Data recovery summary table Possible Valid Recovery Label Units Height Records Records Rate (%) Speed 50 m A m/s 50.3 m 92,472 85,955 93.0 Speed 50 m B m/s 50.5 m 92,472 86,241 93.3 Speed 40 m m/s 40.8 m 92,472 87,252 94.4 Speed 41 m m/s 41.1 m 92,472 87,349 94.5 Speed 31 m m/s 31.8 m 92,472 87,168 94.3 Speed 32 m m/s 32 m 92,472 86,449 93.5 Direction 46 m ° 46 m 92,472 83,646 90.5 Direction 40 m ° 40 m 92,472 85,157 92.1 Temperature °C 92,472 92,376 99.9 RH-5 Humidity %RH %RH 92,472 87,632 94.8 Voltmeter volts 92,472 92,382 99.9 Anemometer data recovery 50 m A anem. 50 m B 40 m 41 m 31 m 32 m Possible Valid Recovery Recovery Recovery Recovery Recovery Recovery Year Month Records Records Rate (%) Rate (%) Rate (%) Rate (%) Rate (%) Rate (%) 2009 Nov 3,744 3,660 97.8 97.8 97.8 97.8 97.8 94.3 2009 Dec 4,464 4,113 92.1 92.1 92.1 92.1 92.1 92.1 2010 Jan 4,464 4,038 90.5 90.2 98.5 91.9 95.1 93.3 2010 Feb 4,032 3,111 77.2 75.7 77.2 77.2 77.2 77.2 2010 Mar 4,464 3,516 78.8 78.5 87.9 92.5 86.3 85.3 2010 Apr 4,320 4,320 100.0 100.0 100.0 100.0 100.0 100.0 Mountain Village, Alaska Wind Resource Report Page | 6 2010 May 4,464 4,464 100.0 99.8 99.2 99.2 100.0 99.5 2010 Jun 4,320 4,320 100.0 100.0 100.0 100.0 100.0 100.0 2010 Jul 4,464 4,464 100.0 100.0 100.0 100.0 100.0 100.0 2010 Aug 4,464 4,464 100.0 100.0 100.0 100.0 100.0 100.0 2010 Sep 4,320 4,320 100.0 100.0 100.0 100.0 100.0 100.0 2010 Oct 4,464 3,829 85.8 83.5 91.9 91.9 91.9 86.0 2010 Nov 4,320 4,037 93.5 92.3 89.1 91.8 88.3 90.2 2010 Dec 4,464 4,132 92.6 91.8 94.9 96.0 96.5 90.9 2011 Jan 4,464 3,791 84.9 92.4 92.6 91.2 92.5 92.1 2011 Feb 4,032 2,211 54.8 60.5 55.6 57.8 57.4 57.7 2011 Mar 4,464 4,464 100.0 100.0 100.0 100.0 100.0 100.0 2011 Apr 4,320 4,320 100.0 100.0 100.0 100.0 100.0 100.0 2011 May 4,464 4,421 99.0 99.0 99.0 99.0 99.0 99.0 2011 Jun 4,320 4,320 100.0 100.0 100.0 100.0 100.0 100.0 2011 Jul 4,464 4,464 100.0 100.0 100.0 100.0 100.0 100.0 2011 Aug 1,176 1,176 100.0 100.0 100.0 100.0 100.0 100.0 92,472 85,955 93.0 93.3 94.4 94.5 94.3 93.5 Icing Event Data indicating an apparent icing event in February 2011 is shown below. In the days preceding the event, characterized by loss of anemometer function, the temperature had been -15° C, warming to 0° C. Relatively humidity had been moderate but increased to 100 percent coinciding with the temperature warm-up to the freezing point. At this time, on February 7, all six anemometers ceased functioning. The moderate temperature and high humidity conditions continued for two days which were followed by a rapid decrease of temperature to -32° C on February 11. Anemometers remained inoperative and presumably encased in ice until February 16 and 17 when the temperature again warmed to 0° C and humidity rose to 100 percent, indicating another precipitation event. High winds and warming temperatures were sufficient to break loose the anemometers and they resumed normal function. Apparent icing event, Feb. 2011, temp. and RH Mountain Village, Alaska Wind Resource Report Page | 7 Apparent icing event, Feb. 2011, anemometers Data Gap-fill Although the overall loss of anemometer data due to icing was less than 90 percent, this includes the summer months which of course do not experience icing conditions. Wintertime icing loss was much higher, with data recovery of the anemometers as low as the 50 percent range in February 2011. Ice event data is removed from the file to avoid biasing the mean wind speed low (zero wind speed when the wind is likely blowing), but that can create the opposite situation, where the data set bias is high (no recorded wind speed during the ice periods, leaving just higher wind speeds in the data set). To overcome these errors, a data gap-fill algorithm contained in Windographer software was employed to synthesize missing data and create a statistically truer representation of the Mountain Village wind resource than the file without data gap-fill. Note: dotted lines below are synthesized data. Gap-fill of Feb. 2011 icing event Mountain Village, Alaska Wind Resource Report Page | 8 Wind Speed Anemometer data obtained from the met tower, from the perspectives of both mean wind speed and mean wind power density, indicate an excellent wind resource. Mean wind speeds are greater at higher elevations on the met tower, as one would expect. Note that cold temperatures contributed to a higher wind power density than otherwise might have been expected for the mean wind speeds. Also note, as discussed in the previous section, that anemometer summary information is the table below is post gap- fill. None gap-filled mean wind speeds and power densities are slightly higher than below. Anemometer data summary Variable Speed 50 m A Speed 50 m B Speed 41 m Speed 40 m Speed 32 m Speed 31 m Measurement height (m) 50.3 50.5 41.1 40.8 32.0 31.8 Mean wind speed (m/s) 7.57 7.67 7.32 7.31 7.06 7.02 MMM wind speed (m/s) 7.52 7.63 7.28 7.26 7.02 6.97 Max 10-min wind speed (m/s) 26.6 26.5 26.0 26.0 25.4 25.2 Max gust wind speed (m/s) 31.5 31.8 31.8 32.7 31.5 31.4 Weibull k 2.13 2.12 2.09 2.12 2.10 2.12 Weibull c (m/s) 8.54 8.65 8.25 8.24 7.96 7.91 Mean power density (W/m²) 510 534 472 462 421 409 MMM power density (W/m²) 500 523 463 452 413 401 Mean energy content (kWh/m²/yr) 4,469 4,674 4,133 4,047 3,686 3,585 MMM energy content (kWh/m²/yr) 4,379 4,580 4,054 3,958 3,615 3,513 Energy pattern factor 1.79 1.80 1.84 1.81 1.83 1.81 Frequency of calms (< 4 m/s) 17.3 16.8 18.9 18.5 19.8 20.2 1-hr autocorrelation coefficient 0.926 0.929 0.926 0.924 0.922 0.921 Diurnal pattern strength 0.020 0.020 0.022 0.020 0.025 0.021 Hour of peak wind speed 22 22 21 21 19 20 Time Series Time series calculations indicate high mean wind speeds during the winter months with more moderate mean wind speeds during summer months. This correlates well with the village load profile where winter months have a high electric and heat demand and summer months a lesser demand. 50 m B anemometer data summary Mean Max Gust Std. Dev. Weibull k Weibull c Year Month (m/s) (m/s) (m/s) (m/s) (-) (m/s) 2009 Nov 7.67 24.8 31.1 3.71 2.16 8.66 2009 Dec 9.40 25.1 28.4 4.50 2.18 10.59 2010 Jan 8.91 19.7 23.5 3.49 2.76 9.97 2010 Feb 8.92 20.6 23.1 3.84 2.49 10.05 2010 Mar 8.02 16.2 19.0 3.06 2.83 8.95 2010 Apr 7.34 22.2 27.3 3.91 1.94 8.26 2010 May 6.05 15.6 17.8 2.87 2.22 6.83 2010 Jun 7.40 20.0 26.5 3.26 2.41 8.34 2010 Jul 5.48 13.9 17.4 2.36 2.47 6.16 Mountain Village, Alaska Wind Resource Report Page | 9 2010 Aug 6.16 19.9 25.0 3.37 1.91 6.94 2010 Sep 8.13 19.6 23.1 3.63 2.39 9.16 2010 Oct 6.91 19.7 25.0 3.57 2.03 7.80 2010 Nov 7.08 17.5 20.5 2.69 2.82 7.93 2010 Dec 7.15 17.0 20.8 3.01 2.52 8.01 2011 Jan 10.70 21.9 25.8 4.19 2.74 11.96 2011 Feb 9.51 26.2 31.8 4.86 2.04 10.72 2011 Mar 7.99 23.6 27.3 3.78 2.15 8.96 2011 Apr 8.28 26.5 30.7 4.06 2.11 9.33 2011 May 7.14 16.9 19.7 2.94 2.62 8.03 2011 Jun 5.91 18.2 21.6 2.97 2.08 6.67 2011 Jul 6.97 19.1 25.0 3.53 2.08 7.88 2011 Aug 8.59 18.4 22.4 3.28 2.81 9.64 All data 7.67 26.5 31.8 3.77 2.12 8.65 Annualized time series graph Annual daily wind profile Mountain Village, Alaska Wind Resource Report Page | 10 Monthly daily wind profile Probability Distribution Function The probability distribution function (PDF), 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. As one can see in the PDF, the most frequently occurring wind speeds are between 5 and 8 m/s with very few wind events exceeding 25 m/s, the cutout speed of most wind turbines. PDF of 50 m B anemometer Mountain Village, Alaska Wind Resource Report Page | 11 Wind Shear and Roughness A wind shear power law exponent (α) of 0.180 indicates moderate wind shear at the site. Related to wind shear, a calculated surface roughness of 0.114 meters (indicating the height above ground level where wind velocity would be zero) indicates moderately uneven terrain (roughness description: few trees) surrounding the met tower. This indicates that it would be beneficial to construct turbines at higher hub heights in order to maximum power production. Vertical wind shear profile Comparative wind shear profiles Mountain Village, Alaska Wind Resource Report Page | 12 Wind shear by direction sector, wind speed > 4 m/s Mean Wind Speed Direction Sector Time Steps Wind Sector (%) Speed 50 m A (m/s) Speed 40 m (m/s) Speed 31 m (m/s) Power Law Exp (α) Surface Roughness (m) 345° - 15° 8,938 13.0% 7.91 7.64 7.37 0.148 0.0465 15° - 45° 10,312 15.0% 8.66 8.22 7.81 0.215 0.3811 45° - 75° 7,928 11.6% 8.68 8.18 7.83 0.214 0.3741 75° - 105° 8,142 11.9% 9.98 9.63 9.28 0.153 0.0578 105° - 135° 5,781 8.4% 9.47 9.18 8.75 0.167 0.0970 135° - 165° 5,163 7.5% 9.21 8.98 8.48 0.172 0.1137 165° - 195° 6,024 8.8% 9.55 9.20 8.73 0.189 0.1950 195° - 225° 3,088 4.5% 7.53 7.37 7.08 0.130 0.0179 225° - 255° 2,924 4.3% 7.13 7.16 6.96 0.052 0.0000 255° - 285° 1,946 2.8% 7.45 7.46 7.19 0.076 0.0001 285° - 315° 2,927 4.3% 7.09 6.86 6.61 0.146 0.0407 315° - 345° 5,425 7.9% 7.49 7.25 7.00 0.143 0.0352 Extreme Winds A modified Gumbel distribution analysis, based on monthly maximum winds vice annual maximum winds, was used to predict extreme winds at the Mountain Village met tower site. Extreme wind analysis indicates a highly desirable situation in Mountain Village: relatively high mean wind speeds combined with low extreme wind speed probabilities. Industry standard reference of extreme wind is the 50 year 10-minute average probable wind speed, referred to as Vref. For Mountain Village, this calculates to 31.5 m/s (at 50 meters), below the threshold of International Electrotechnical Commission (IEC) 61400-1, 3rd edition criteria for a Class III site. Note that Class III extreme wind classification is the lowest defined. All wind turbines are designed for a Class III wind regime. Extreme wind probability table, 50 m B data Vref Gust IEC 61400-1, 3rd ed. Period (years) (m/s) (m/s) Class Vref, m/s 2 24.7 29.8 I 50.0 10 28.1 33.8 II 42.5 15 28.9 34.9 III 37.5 30 30.4 36.6 S designer- specified 50 31.5 37.9 100 32.9 39.6 average gust factor: 1.20 Mountain Village, Alaska Wind Resource Report Page | 13 Extreme wind graph Temperature, Density, and Relative Humidity Mountain Village experiences cool summers and cold winters with resulting higher than standard air density. Calculated air density during the met tower test period exceeds the 1.220 kg/m3 standard air density for a 44 meter elevation by 6.3 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. Temperature and density table Temperature Air Density RH Month Mean Min Max Mean Min Max Mean (°C) (°C) (°C) (kg/m³) (kg/m³) (kg/m³) (%) Jan -13.3 -29.5 2.5 1.352 1.274 1.441 65.5 Feb -12.3 -33.3 2.6 1.348 1.273 1.464 73.1 Mar -13.0 -30.6 2.6 1.350 1.273 1.447 59.0 Apr -6.2 -21.1 13.2 1.316 1.226 1.393 71.0 May 5.0 -6.9 23.7 1.263 1.183 1.319 62.9 Jun 9.2 -3.9 24.3 1.244 1.180 1.304 68.2 Jul 10.6 1.2 24.0 1.237 1.181 1.280 78.9 Aug 10.2 3.2 18.3 1.239 1.205 1.270 85.4 Sep 7.7 -5.2 19.2 1.250 1.201 1.310 74.2 Oct -1.1 -10.1 7.8 1.290 1.250 1.335 83.5 Nov -9.3 -23.8 3.2 1.330 1.220 1.408 85.9 Dec -12.5 -29.4 4.0 1.348 1.220 1.440 80.3 MMM -2.0 -33.3 24.3 1.297 1.180 1.464 73.9 20.0 25.0 30.0 35.0 40.0 45.0 0 10 20 30 40 50 60 70 80 90 100Wind Speed, m/s Period, years 10-min max gust Mountain Village, Alaska Wind Resource Report Page | 14 Temperature boxplot Relative humidity boxplot Mountain Village, Alaska Wind Resource Report Page | 15 Air density DMap Wind Speed Scatterplot The wind speed versus temperature scatterplot below indicates that a substantial percentage of wind at the Mountain Village 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, which is the minimum operating temperature for arctic-capable wind turbines, and 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. Hence, restrictions of wind turbine operations due to extreme cold should not be expected. Wind speed/temperature Mountain Village, Alaska Wind Resource Report Page | 16 Wind Direction Wind frequency rose data indicates that winds at the Mountain Village met tower site are not especially directional, although northerly and easterly winds predominate overall. The mean value rose indicates that easterly and southerly winds, when they do occur, are of high energy and hence likely storm winds. The wind energy rose indicates that for wind turbine operations the majority of power-producing winds are from the north-northeast, east, southeast and south. Calm frequency (percent of time that winds at the 50 meter level are less than 4 m/s) was 17 percent during the met tower test period. Wind frequency rose, 46 m Mean value rose, 46 m Wind energy rose, 46 m Scatterplot rose of 50 m A WPD, 46 m vane Mountain Village, Alaska Wind Resource Report Page | 17 Wind density roses by month Turbulence Turbulence intensity at the Mountain Village 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, 50 m B, all direction sectors Mountain Village, Alaska Wind Resource Report Page | 18 Turbulence table, 50 m B 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 1,574 0.407 0.168 0.622 1.538 2 1.5 2.5 2,857 0.206 0.114 0.352 1.500 3 2.5 3.5 5,181 0.136 0.069 0.224 1.030 4 3.5 4.5 7,323 0.102 0.046 0.161 0.564 5 4.5 5.5 8,530 0.090 0.041 0.142 0.440 6 5.5 6.5 9,431 0.082 0.037 0.129 0.452 7 6.5 7.5 9,298 0.078 0.035 0.122 0.439 8 7.5 8.5 9,095 0.074 0.033 0.116 0.346 9 8.5 9.5 7,675 0.071 0.030 0.109 0.447 10 9.5 10.5 6,270 0.071 0.028 0.106 0.242 11 10.5 11.5 5,236 0.069 0.028 0.105 0.245 12 11.5 12.5 4,026 0.069 0.026 0.103 0.203 13 12.5 13.5 2,761 0.070 0.025 0.102 0.167 14 13.5 14.5 2,001 0.070 0.024 0.100 0.163 15 14.5 15.5 1,490 0.072 0.024 0.102 0.171 16 15.5 16.5 979 0.074 0.020 0.100 0.150 17 16.5 17.5 646 0.073 0.019 0.098 0.149 18 17.5 18.5 416 0.071 0.019 0.095 0.125 19 18.5 19.5 251 0.073 0.019 0.097 0.145 20 19.5 20.5 168 0.076 0.017 0.098 0.138 21 20.5 21.5 192 0.081 0.020 0.106 0.189 22 21.5 22.5 137 0.082 0.018 0.106 0.145 23 22.5 23.5 71 0.080 0.020 0.106 0.150 24 23.5 24.5 34 0.074 0.013 0.091 0.113 25 24.5 25.5 20 0.072 0.010 0.084 0.097 26 25.5 26.5 20 0.067 0.009 0.079 0.086 27 26.5 27.5 1 0.064 0 0.064 0.064 System Report - MtnVillage.hmr System architecture Cost summary Net Present Costs Annualized Costs Wind turbine2 Northwind100/21RevB Generator 1 350 kW Generator 3 505 kW Generator 4 601 kW Generator 5 710 kW Total net present cost $ 7,759,034 Levelized cost of energy $ 0.213/kWh Operating cost $ 606,964/yr Component Capital Replacement O&M Fuel Salvage Total ($)($)($)($)($)($) Northwind100/21RevB 0 0 0 0 0 0 Generator 1 0 0 0 3,886,572 0 3,886,572 Generator 3 0 0 0 3,625,239 0 3,625,239 Generator 4 0 0 0 247,226 0 247,226 Generator 5 0 0 0 0 0 0 System 0 0 0 7,759,037 0 7,759,037 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 0 304,034 0 304,034 Generator 3 0 0 0 283,591 0 283,591 Generator 4 0 0 0 19,340 0 19,340 Generator 5 0 0 0 0 0 0 System 0 0 0 606,964 0 606,964 Page 1 of 5System Report -MtnVillage.hmr 8/15/2011file:///C:/Users/AAxworthy/Desktop/AEA_Round5_WIP/MtnVillage/HOMER_Reports/2... Electrical AC Wind Turbine: Northwind100/21RevB Component Production Fraction (kWh/yr) Wind turbines 631,002 22% Generator 1 1,036,895 36% Generator 3 1,117,134 39% Generator 4 79,855 3% Generator 5 0 0% Total 2,864,886 100% Load Consumption Fraction (kWh/yr) AC primary load 2,847,269 100% Total 2,847,269 100% Quantity Value Units Excess electricity 17,530 kWh/yr Unmet load 0.00648 kWh/yr Capacity shortage 0.00 kWh/yr Renewable fraction 0.220 Variable Value Units Total rated capacity 206 kW Mean output 72.0 kW Page 2 of 5System Report -MtnVillage.hmr 8/15/2011file:///C:/Users/AAxworthy/Desktop/AEA_Round5_WIP/MtnVillage/HOMER_Reports/2... Generator 1 Generator 3 Capacity factor 35.0 % Total production 631,002 kWh/yr Variable Value Units Minimum output 0.00 kW Maximum output 202 kW Wind penetration 22.2 % Hours of operation 7,712 hr/yr Levelized cost 0.00 $/kWh Quantity Value Units Hours of operation 5,638 hr/yr Number of starts 648 starts/yr Operational life 2.66 yr Capacity factor 33.8 % Fixed generation cost 24.5 $/hr Marginal generation cost 0.160 $/kWhyr Quantity Value Units Electrical production 1,036,895 kWh/yr Mean electrical output 184 kW Min. electrical output 35.0 kW Max. electrical output 344 kW Quantity Value Units Fuel consumption 304,034 L/yr Specific fuel consumption 0.293 L/kWh Fuel energy input 2,991,691 kWh/yr Mean electrical efficiency 34.7 % Page 3 of 5System Report -MtnVillage.hmr 8/15/2011file:///C:/Users/AAxworthy/Desktop/AEA_Round5_WIP/MtnVillage/HOMER_Reports/2... Generator 4 Quantity Value Units Hours of operation 2,966 hr/yr Number of starts 748 starts/yr Operational life 5.06 yr Capacity factor 25.3 % Fixed generation cost 35.3 $/hr Marginal generation cost 0.160 $/kWhyr Quantity Value Units Electrical production 1,117,134 kWh/yr Mean electrical output 377 kW Min. electrical output 252 kW Max. electrical output 497 kW Quantity Value Units Fuel consumption 283,590 L/yr Specific fuel consumption 0.254 L/kWh Fuel energy input 2,790,530 kWh/yr Mean electrical efficiency 40.0 % Quantity Value Units Hours of operation 156 hr/yr Number of starts 101 starts/yr Operational life 96.2 yr Capacity factor 1.52 % Fixed generation cost 42.1 $/hr Marginal generation cost 0.160 $/kWhyr Quantity Value Units Electrical production 79,855 kWh/yr Mean electrical output 512 kW Min. electrical output 461 kW Max. electrical output 549 kW Quantity Value Units Fuel consumption 19,340 L/yr Specific fuel consumption 0.242 L/kWh Fuel energy input 190,302 kWh/yr Mean electrical efficiency 42.0 % Page 4 of 5System Report -MtnVillage.hmr 8/15/2011file:///C:/Users/AAxworthy/Desktop/AEA_Round5_WIP/MtnVillage/HOMER_Reports/2... Generator 5 Emissions Quantity Value Units Hours of operation 0 hr/yr Number of starts 0 starts/yr Operational life 1,000 yr Capacity factor 0.00 % Fixed generation cost 49.7 $/hr Marginal generation cost 0.160 $/kWhyr Quantity Value Units Electrical production 0.00 kWh/yr Mean electrical output 0.00 kW Min. electrical output 0.00 kW Max. electrical output 0.00 kW Quantity Value Units Fuel consumption 0 L/yr Specific fuel consumption 0.000 L/kWh Fuel energy input 0 kWh/yr Mean electrical efficiency 0.0 % Pollutant Emissions (kg/yr) Carbon dioxide 1,598,335 Carbon monoxide 3,945 Unburned hydocarbons 437 Particulate matter 297 Sulfur dioxide 3,210 Nitrogen oxides 35,204 Page 5 of 5System Report -MtnVillage.hmr 8/15/2011file:///C:/Users/AAxworthy/Desktop/AEA_Round5_WIP/MtnVillage/HOMER_Reports/2... System Report - MtnVillage.hmr System architecture Cost summary Net Present Costs Annualized Costs Generator 1350 kW Generator 3505 kW Generator 4601 kW Generator 5710 kW Total net present cost $ 9,215,975 Levelized cost of energy $ 0.253/kWh Operating cost $ 720,935/yr Component Capital Replacement O&M Fuel Salvage Total ($)($)($)($)($)($) Generator 1 0 0 0 3,391,496 0 3,391,496 Generator 3 0 0 0 5,043,293 0 5,043,293 Generator 4 0 0 0 781,191 0 781,191 Generator 5 0 0 0 0 0 0 System 0 0 0 9,215,980 0 9,215,980 Component Capital Replacement O&M Fuel Salvage Total ($/yr)($/yr)($/yr)($/yr)($/yr)($/yr) Generator 1 0 0 0 265,306 0 265,306 Generator 3 0 0 0 394,520 0 394,520 Generator 4 0 0 0 61,110 0 61,110 Generator 5 0 0 0 0 0 0 System 0 0 0 720,936 0 720,936 Page 1 of 5System Report -MtnVillage.hmr 8/15/2011file:///C:/Users/AAxworthy/Desktop/AEA_Round5_WIP/MtnVillage/HOMER_Reports/B... Electrical Generator 1 Component Production Fraction (kWh/yr) Generator 1 986,835 35% Generator 3 1,605,782 56% Generator 4 254,673 9% Generator 5 0 0% Total 2,847,291 100% Load Consumption Fraction (kWh/yr) AC primary load 2,847,269 100% Total 2,847,269 100% Quantity Value Units Excess electricity 0.00 kWh/yr Unmet load 0.00 kWh/yr Capacity shortage 0.00 kWh/yr Renewable fraction 0.000 Quantity Value Units Hours of operation 4,384 hr/yr Number of starts 488 starts/yr Operational life 3.42 yr Page 2 of 5System Report -MtnVillage.hmr 8/15/2011file:///C:/Users/AAxworthy/Desktop/AEA_Round5_WIP/MtnVillage/HOMER_Reports/B... Generator 3 Capacity factor 32.2 % Fixed generation cost 24.5 $/hr Marginal generation cost 0.160 $/kWhyr Quantity Value Units Electrical production 986,835 kWh/yr Mean electrical output 225 kW Min. electrical output 127 kW Max. electrical output 340 kW Quantity Value Units Fuel consumption 265,305 L/yr Specific fuel consumption 0.269 L/kWh Fuel energy input 2,610,606 kWh/yr Mean electrical efficiency 37.8 % Quantity Value Units Hours of operation 3,892 hr/yr Number of starts 729 starts/yr Operational life 3.85 yr Capacity factor 36.3 % Fixed generation cost 35.3 $/hr Marginal generation cost 0.160 $/kWhyr Quantity Value Units Electrical production 1,605,782 kWh/yr Mean electrical output 413 kW Min. electrical output 356 kW Max. electrical output 496 kW Quantity Value Units Fuel consumption 394,520 L/yr Specific fuel consumption 0.246 L/kWh Fuel energy input 3,882,077 kWh/yr Mean electrical efficiency 41.4 % Page 3 of 5System Report -MtnVillage.hmr 8/15/2011file:///C:/Users/AAxworthy/Desktop/AEA_Round5_WIP/MtnVillage/HOMER_Reports/B... Generator 4 Generator 5 Quantity Value Units Hours of operation 484 hr/yr Number of starts 242 starts/yr Operational life 31.0 yr Capacity factor 4.84 % Fixed generation cost 42.1 $/hr Marginal generation cost 0.160 $/kWhyr Quantity Value Units Electrical production 254,673 kWh/yr Mean electrical output 526 kW Min. electrical output 509 kW Max. electrical output 549 kW Quantity Value Units Fuel consumption 61,110 L/yr Specific fuel consumption 0.240 L/kWh Fuel energy input 601,322 kWh/yr Mean electrical efficiency 42.4 % Quantity Value Units Hours of operation 0 hr/yr Number of starts 0 starts/yr Operational life 1,000 yr Capacity factor 0.00 % Fixed generation cost 49.7 $/hr Marginal generation cost 0.160 $/kWhyr Quantity Value Units Page 4 of 5System Report -MtnVillage.hmr 8/15/2011file:///C:/Users/AAxworthy/Desktop/AEA_Round5_WIP/MtnVillage/HOMER_Reports/B... Emissions Electrical production 0.00 kWh/yr Mean electrical output 0.00 kW Min. electrical output 0.00 kW Max. electrical output 0.00 kW Quantity Value Units Fuel consumption 0 L/yr Specific fuel consumption 0.000 L/kWh Fuel energy input 0 kWh/yr Mean electrical efficiency 0.0 % Pollutant Emissions (kg/yr) Carbon dioxide 1,898,460 Carbon monoxide 4,686 Unburned hydocarbons 519 Particulate matter 353 Sulfur dioxide 3,812 Nitrogen oxides 41,814 Page 5 of 5System Report -MtnVillage.hmr 8/15/2011file:///C:/Users/AAxworthy/Desktop/AEA_Round5_WIP/MtnVillage/HOMER_Reports/B... 1 Robin From:Matt Metcalf [mmetcalf@avec.org] Sent:Tuesday, August 23, 2011 12:19 PM To:azcorp@starband.net Cc:Kelly Laabs; Robin; Anna Sattler Subject:Azachorok Inc (Mt Village) NC Lease Agreement and Map Attachments:2011 Azachorok Inc (Mt Village NC); Wind Site Ground Lease & Agreement.pdf; 2011 Mt Village Wind Site Map.jpg; Mountain Village Site 0068 Wind Resource Report.pdf Paul, Per our coordination meeting last week (Tuesday – 8/16/2011), with members from the City of Mt. Village, the Tribal Council, and the Azachorok Corporation; please find the revised land lease agreement for the proposed Mt. Village Wind Turbine Project. The revised agreement appropriately identifies the location that the MET Tower is currently erected and that AVEC was able to conduct a wind analysis data report from. In addition, I have attached the wind resource report that was conducted by V3 Consulting… AVEC subcontractor. Have a great day… hope that everyone catches a lot of fish and harvest a bunch of berries! Quyana caknek, Matt Metcalf AVEC - Project Manager (907) 561-7927 (Direct) (907) 561-1818 (Office) (907)561-2388 (Fax) This e-mail message has been scanned for Viruses and Content and cleared by MailMarshal 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 Azachorok Incorporated This Lease is being made between Alaska Village Electric Cooperative, Inc. (hereinafter “AVEC”), whose address is 4831 Eagle Street, Anchorage, AK 99503 and Azachorok Incorporated (hereinafter “Land Owner”) whose address is P.O. Box 32213, Mt. Village, AK 99632. 1. Description of Location. Land Owner leases to AVEC that certain property described as the North ½ of Section 9, Township 23 North, Range 78 West, Seward Meridian, Bethel Recording District, Fourth 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 tax es 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 t o 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 propert y. 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. Both parties hereby agree that they will sign any additional documents and perform any other acts that may be required to permit AVEC to fulfill the intent of the agreement. The parties agree that they will act in good faith, and use their best efforts to comply with this Agreement as rapidly as possible. 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: Azachorok Incorporated P.O. Box 32213 Mt. Village, AK 99632 Facsimile No. (907) 591-2127 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: AZACHOROK INCORPORATED By:_______________________________ Title:_____________________________ STATE OF ALASKA ) ) ss. Fourth 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 Azachorok Incorporated, 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: