HomeMy WebLinkAboutWalker Lake IPEC REF-V Grant Application-complete 8-24-11I PEe
INSIDE PASSAGE ELECTRIC COOPE:RATIVE:
P.o. Box 2 10 14 9
Auke Bay, AK 99821
(907)789-3196 790-8517 FAX 800-478-3198
August 24, 2011
Renewable Energy Grant Fund
Alaska Energy Authorit y
813 West Northem Lights Blvd.
A nchorage, AK 99503
Re: TPEC -Renewable Energy Fund Grant Application -Letter of Commitment
Application Review Committee:
The In side Passage Electri c Cooperative ([PEC) is pleased to submit the attached applicati on for
a Renewable Energy Fund Grant for the Walker Lake Hydroelectric Feasibility Study . T he
results of the feasibi lit y study will help detennine if Walker Lake is a viable renewable energy
source for the Upper Lynn Canal electric grid.
The attached Application documents and describes the proposed grant fund request. The total
estimated cost of feasi bil ity study is $170,000 . IPEC commits to a project Match of $1 0,000 in
direct labor costs.
[PE e's recogni zes there are h ydro el echic resources being considered for the U pper Lyn n Canal
electric grid . The intent of the Feasibility Study is to obtain good energy and power production
numbers to help make the best future hydro project decision.
IPEC stdves to keep electJic cost s as low as possible by incorporating efficient operations and
planning for the future. The results of th e feasibility stud y wi ll help [PE C and the sUl Tounding
area move in that direction.
We welcome your review and evalu ation and look fo rward to work in g with you on this project.
Peter Bibb,
[PE C's Operati o n s Manager
Renewable Energy Fund Round 5
Grant Application
Application Forms and Instructions
The following forms and instructions are provided to assist you in preparing your application for
a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA)
and the forms are available online at: http ://www.akenergyauthority.org
Grant Application GrantAppS .doc Application form in MS Word that includes an outline of
Form information required to submit a complete application.
Applicants should use the form to assure all information is
provided and attach additional information as required.
Application Cost Costworksheet Summary of Cost information that should be addressed by
Worksheet S.doc applicants in preparing their ajJQiication.
Grant Budget GrantBudgetS . A detailed grant budget that includes a breakdown of costs by
Form doc milestone and a summary of funds available and requested to
complete the work for which funds are beinq requested .
Grant Budget GrantBudgetln Instructions for completing the above grant budget form.
Form Instructions structionsS .doc
Authorized Authorized Form indicating who is authorized to sign the grant. finance
Signers Form signers reports and progress reports and provides grantee information.
formS.doc
• If you are applying for grants for more than one project , provide separate application
forms for each project.
• Multiple phases for the same project may be submitted as one application.
• If you are applying for grant funding for more than one phase of a project, provide
milestones and grant budget for 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.
• If you have additional information or reports you would like the Authority to consider in
reviewing your application , either provide an electronic version of the document with
your submission or reference a web link where it can be downloaded or reviewed .
REMINDE R:
• Alaska Energy Authority is subject to the Public Records Act AS 40 .2S, and materials
submitted to the Authority may be subject to disclosure requirements under the act if no
statutory exemptions app ly.
• All applications received will be posted on the Authority web site after final
recommendations are made to the legis lature.
• In accordance with 3 MC 107.630 (b) Applicants may request trade sec rets or
proprietary company data be kept confidential subject to review and approval by the
Authority. If you want information is to be kept confidential the applicant must:
o Request the information be kept confidential.
o Clearly identify the information that is the trade secret or proprietary in their
application.
o Receive concurrence from the Authority that the information will be kept
confidential. If the Authority determines it is not confidential it will be treated as a
public record in accordance with AS 40 .2S or returned to the applicant upon
request.
AEA 12-001 Application Page 1 of 14 7/1 /2011
Rene wa ble Ener gy Fu nd
Gra nt Applica t ion Roun d 5
SECTION 1-APPLICANT INFORMATION
Name (Name of utility, IPP, or govemme nl entity subm ilting proposal)
Inside Passage Electri c Cooperative , Inc .
Type of Entity: Fiscal Year End
Non-profit electric cooperative
Tax 10 # 43-196-4262 Tax Status : For-profit or ~non·profit ( check one)
Mailing Addres s Physical Address
P.O. Box 210149 Juneau , AK 99821 12480 Me ndenhall Loop Roa d
Tel ephone Fax Email
907-789·3196 907 -790-8517 pbibb@ak .net
1.1 APPLICANT POINT OF CONTACT I GRANTS MANAGER
Name Title
Peter Bibb Operation s Manager
Mailing Address
PO Bo x 210149 Juneau , AK 99621
Auke Bay, AK 99827
Telephone Fa x Email
907 -789-3196 907-790-8517 pbibb@ak .net
Ext. 30
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 bo x)
x An ele c tr ic utility holding a cert ifi cate of public con venien ce and necessity under AS
42.05, or
.. An independent power producer in accordance with 3 Me 107 .695 (a) (1 ), or
.-A local go v ernment, 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
go verning authority is necessary . (Indicate Yes or No in the bo x)
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 constru cted with grant
funds for the benefit of the general public .
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Renewable Energ y Fund
Grant Application Round 5
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)
Walker Lake Feasibility Study
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.
Leave the Haines Highway at 25 mile, cross tbe Klebini River Bridge, and drive along the
Chilkat Lake Road approximately 4-miles. Directly West of Klukwan.
2.3 PROJECT TYPE
Put X in boxe s as appropriate
2.3.1 Renewable Resource Type
Wind Biomass or Biofue ls
x Hydro, including run of river Transm ission of Rene wab le Energ y
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
x Feasibility Construction and Commissioning
Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
lPEC propo ses to use Renewable Energy grant funds to perfonn a feasibility study of a small
hydroelectric project at Walker Lake. Walker Lake is located clo se to existing distribution
facilities for the Chilkat Valley, Klukwan Vill age, and the 10 Mile Haines Highway inter-
connection point with AP&T's Haines/Skagway communities.
The fea sibility study will include an alternati ve ana l ysis and selection of a prefelTed alternati ve.
A stream gage will be installed to measure flow. A reconnaissance level geotechnical
investigation will also be made. The re s ults of these ta sks will be presented in a report which will
include a written project de scription, energy generation estimate, cost estimate, cost of energy
calculation , a de scription oflicensing and permitting is s ue s and conceptual design drawings.
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2 .5 PROJECT BENEFIT
Renewable Energy Fund
Grant App li cation Round 5
Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel
costs, lower energy cos ts, etc.)
IPEC's Energy Plan 2009 identifies three major initiatives to p roviding l ong term lower co st
rel ia ble power. Chief among them is "Independence from Diesel Generation". This initiative
will benefit all communities IPEC serves, including Klukwan and the Chilkat Va ll ey, by
reducing the amount of diesel generated electricity purchas ed !i'OIn the interconnected Haines
Al aska Power and Telephone company or IPEC's 26 Mile Haines Hwy. diesel plant.
IPEC recognizes there are other hydroelectric resources being considered for the Upper Lynn
Canal electric grid. The res ult s of the proposed fea s ibi lit y study for Walker Lake wi ll provide
good energy and power production numbers to help make the best choice for the next hydro
electric project in that ar ea.
A small hydroelectric project at Walker Lake has the potential to develop approx imately 2,800
MWh of renewable energy. Thi s energy would displace diesel generation and provide a stable
cost of generation .
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 estimated co s t of this study is $170,000. The source offunds will be $10,000 !i'om IPEC
and the remainder from grant funds.
2.7 COST AND BENEFIT SUMARY
Include a summary of grant request and your project's total costs and benefits below.
G ra n t Costs
(Summary offunds requested)
2 .7 .1 G r ant Funds Requested i n this application . $160,000
2 .7 .2 Other Funds to be provided (Proj ect m atch) $10 ,000
2 .7 .3 Tot al G r ant Costs (sum of 2 .7.1 and 2.7.2) $170 ,000
Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get to a fully
operational project)
2.7 .4 Total Proj ect Cost (Summary from Cost Worksheet $
including estimates through constructi on)
2 .7 .5 Es t imated Direct Fin ancial Benefit (S av i ngs) $
2 .7 .6 Other Publ ic Benefit (I f you can calcu late the benefit in $
terms o f dollars please p r ovide t h at number he r e and
explain how you calculated that number i n yo u r applicati on
(Section 5.)
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SECTION 3 -PROJECT MANAGEMENT PLAN
Renewable Ener gy Fund
Grant Application Round 5
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 suppo rt . If the applicant expects project
management assistance from AEA or another government entity , state that in this section.
IPEC is the single point of contact and will execute all grant, contractual and adminis trative
responsibilities. HDR will provide all feas ibility studies and alternative analysis.
Peter Bibb , IPEC Operation s Manager, is the Grant Manager. He is the single point of contact
with AEA and will execute all !,Trant contractual and administrative responsibilities. Mr. Bibb
has 20 years of experience in the electric utility field. He is skilled in tracking grants,
communications , and in his ability to deal smoothly and professionall y with executive officers,
upper management , emplo yees, vendors, and customers in a day-to-day and occasionally adverse
si tuation.
Paul Berkshire, P.E., HDR 's project lead and engineer will serve as the Project Manager. He
will work with the Grant Manager to commit essential engineering disciplines to ensure a
success ful project. He will analyze all relevant issues pertaining to the feasibility of Walker
Lake providing lower cost, reliable, and renewable hydro electric energy for !PEe's service
territory and be yo nd. Mr. Berkshire will oversee all technical work and coordinate the effort s of
hi s team to en s ure the efficient and cost effective results of needed requ ired feasibility
considerations.
Mr. Berkshire is responsible for the quality of all work produced by hi s team. He will oversee
and review all critical tasks and provide input and support on all significant fea sibi lity and design
i ss ue s. He will ensure that design review comments from the Authorit y and IPEC are adequately
addressed and incorporated into the fea s ibility study. Hi s working relationship with A uth ority
staff and [PEC is good and reliable. Mr. Berkshire ha s the authority to assign the technical
personnel and resources necessary to successfully complete the proposed study.
3.2 Project Schedule
Include a schedule for the proposed wo rk that will be funded by this grant. (You may include a
chart or table attachment with a summary of dates below.)
Stalt of work
Site Visit
Analysis
Draft Report
Final Report
I 3.3 Project Milestones
AEA12-001 Grant Application
May, 2012
June, 20 12
June-Aug, 2012
Sept. 1,2012
Sept. 15,2012
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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 Bud>]et Form .)
Ke y task s will include a sit e visit to assess site condition s, install ation of a stream gage,
deri va tion of a lo ng -tenn sy nthetic flow record, conceptu al proj ect definition , e nergy gen erati o n
estimates, co nstru ct ion cos t estim ates and a utili zation stud y .
3.4 Project Resources
Describe the personnel , contractors , equipment , and services you will use to accomplish the
project. Include any partnership s 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 ma y use for major equ ipment purchases or contracts. Include brief resumes and references
for known , key personnel , contractors , and suppliers as an attachment to your application .
IPE C has se lected HDR A la ska , In c. to perfonn thi s wo rk. HDR prov id es unm atched in-depth
exp erti se and real-world ex perien ce in th e full r a ng e of hydrop ower-rel at ed di sc iplines .
• H ydro logic and bas in mo delin g e xpe rt s fo r th e de ve lopment o f strea m flow model s,
energy gen er ati on projection s, and b as in oper ation /un it di sp atc h model s .
• Desi gn engin eers and s peci ali s ts w ith proven track r eco rd s in proj ect de si g n,
co nstru ction mana ge m ent , and proj ect s tartup .
• C urre nt ex pertise in th e licen si ng, r eli censin g, and r eg ulator y processe s of the FER C
and othe r age nc ies.
• C urrent ex perti se in NEP A env ironm ental assess m ent s, rep o rt s, an d impa cts
statem e nt s, includin g Applicant-Prepared E n vironm ental A ss ess me nt s.
• Effec ti ve and co operati ve wo rking re la ti o nship s w i th fed era l , s tat e and local
agenci es, tri bes, and native corporati o ns nati onwide.
• Pro ven perfo rm a nce lead in g li ce ns in g an d desig n tea ms on m ajo r new h ydroele ctri c
proj ects and pl ant up g rade s.
• Compl ete in-h o use civ il , structural , m echani cal , and electric al design enginee rs ;
alon g with environm ental , li cens ing , regulat or y, and p ermitting spec iali s ts.
HDR 's proj e ct experienc e li st include s hundred s of operational fa cilitie s in the h ydro e lec tric ,
power , and energy ar ena .
HDR 's w o rk w ill be led by Paul Berk shire, P.E. P aul's res ume ' is includ ed as a n attachment to
thi s application .
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
T he Auth o rity Proj ect Manager will be k ept up to date o n the project stat us b y p eriodi c email
and /or verb al statu s report s, in addition to written quarterly rep ort s snbmitted b y the IP E C Grant
Man ager. Pe riodi c r eports will pro vide gen eral infonnati o n re garding project s tatu s and an y
unfore se en c ircum s tances th at n ee d to be r es ol ved. The quarterl y Grant Manager rep0l1 s will
include sp ec ific informati on on th e stud y compl eti o n status.
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Renewable Energy Fund
Grant Application Round 5
3.6 Project Risk
Discuss potential problems and how you wou ld add ress them.
The primary risk for this study effort wou ld be increases in project study costs. IPEC intends to
mitigate this risk by contracting for the work on time and material s basis with a not to exceed
amount equa l to availabl e project fund s.
SECTION 4 -PROJECT DESCRIPTION AND TASKS
• Tell us what the project is and how you will meet the requirements outlined in Section 2 of
the RFA.
• The level of information will vary according to phase(s) of the project you propose to
undertake with grant funds.
• If you are applying for grant funding for more than one phase of a project provide a
plan and grant budget form for completion of each phase.
• If some work has already been completed on your project and you are requesting funding for
an advanced phase, submit information sufficient to demonstrate that the preceding phases
are satisfied and funding for an advanced phase is warranted.
4.1 Proposed Energy Resource
Describe the potential extenUamount of the energy resource that is avai lable.
Discuss the pros and cons of your proposed energy resource vs. othe r alternatives that may be
avai labl e for the market to be served by your project.
A 1988 reconnaissance study of Walker Lake indicated that potentiall y 2,800 MWh of renewable
energy annually could be produced from a small hydroelecttic project. This energy could offset
diesel generation that is currently being used to meet the electrical load. Walker Lake is close t o
a n existing inter-connected electric distribution system that supplies energy/power to seve ral
Upper Lynn Canal communities.
Furthennore, two other h ydro projects clo se to the grid have received feasibilit y study funding
a lready. The inclus ion of a third physica lly integrated project would increase the possi bility of
a dding needed hydro resources at the least co st.
Pros of Feasibility Study
• Help fulfill IPEC's long-term renewable energy initiatives.
• Provide a "third" h ydro project option for the inter-connected region.
• Introduce a v iable and intelligent mean s to produce energy/power locally.
• Prove a so urce of reliable, efficient, and Safe electric energy/power that would foster local
economic growth .
• Demonstrate to the State of Alaska, IP EC's commitment to renewable energy resource
development.
• Demonstrate a means to reduce dependence on diesel generated energy/power.
Cons of Feasibility Study
• Currently, Klukwan and th e Chilkat Valley are s upplied by existing 11m-of-liver and
minimal storage hydro electric reso urces that occasionall y require supp lemental diesel
generation to meet both energy and power requirements.
• Hydro development costs are expensive.
• Project development and management requires substantial time and effOIi fi'om many
organizations and IPEC staff.
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Renewable Energy Fund
Grant Application Round 5
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 .
Existing Energy/Power System Configuration
IPEC currently supplies electric power to Klukwan and the Chilkat Valley. Most of the
generation is from hydro , which is purchased from an independent supplier on a seasonal basis
and from Alaska Power and Telephone Company (AP&T. During periods of low water or pe ak
loads when existing hydro electric resources are unable to meet energy and demand, standby
diesel generation is operated by either by IPEC or AP&T.
Chilkat Valley
In the 1990 's, IP EC built a powerhouse and di stribution system originating li'om 26 Mile Haine s
Highway and e xtending South to an intertie point at I O-Mile Haines Highway and N0I1h to the
U.S.A .lCanada border stations. Prior to this period, residents and businesses depended on
individual generators for electricity. In 2000, a private company, Southern Energy Inc.(SEI),
developed and constJucted a small run-of-river h ydro electJ'ic project. In 2007 , IPEC
interconnected with them .
Klukwan
Klukwan is located on th e north bank of the Chilkat River, about 22 miles north of Haines ,
Alaska. In 2005 its distJibution system was upgraded fi'om 2,400 volts to 7,200 volts. This
community has no backup generation of any kind and relie s solely on electricity supplied by
IPEC and AP&T. Prior to the 1990's distribution sys tem construction, Klukwan operated their
own die sel generation and 2,400 volt disttibution sys tem.
Energy System Generation Equipment
There are three generation locations that can supply energy/power to the KlukwaniChilkat Valley:
I. IP ECs 26 Mile Haine s Highway Powerplant
At this location a si ngle 1976 vintage Catipillar D398 rated at 600 K wand switchgear.
2 . SEI I O-Mile Diesel /Hydro Powerplant
This powerplant consists of two buildings housing three generating units
• 600 Kw rated hydro generator (550 Kw rated turbine) located in the hydro
building.
• Two, expired diesel generating units rated at 122 kw and 298 Kw located in the
diesel building.
3. AP&T I O-Mile interconnection point
This is a metering and synchronizing point with AP&T's Haines and Skagway
hydro /diesel generation system.
ElectJicity is distributed throughout the KlukwaniChilkat Valley via 7.2112.47 kv underground
three-phase distribution system. Die se l powerplants produce 12-14 Kwh per gallon of diesel.
The average weighted cost of diesel fuel for August 201 I was $4.04 per gallon.
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4.2.2 Existing Energy Resources Used
Renewable Energy Fund
Grant Application Round 5
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.
Diesel
I . 26 Mile powerplants fuel is delivered by fuel truck fi-om Haines and stored in a 3,000
gallon above ground storage tank located outside the powerplant.
2. I O-Mile Diesel powerplant s fuel is delivered by fuel truck from Haines and is stored in
two-250 gallon above ground storage tank located inside the powerplant.
3. AP&T's powerplant s fue l is s tored in bulk fue l tanks within their generation yard.
Hvdro-Electric
The I O-Mile Hydro is a run-of-river design that seasonall y provides IPEC renewable energy.
Interconnected AP&T operates several h ydro-electric project s that meet energy requirements but
not l oad requirements for the Skagway, Haines, Klukwan, and Chi lkat VaHey:
• Goat Lake Hydro, Skagway has some water storage
• Dewey Lake Hydro , Skagway is a run-of-river operation
• Lutak Hydro , Haines is a run-of-river operation
• Ka s iyda ya, Skagway is a run-of-river operation
4.2.3 Existing Energy Market
Di scuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
The existing energy market consists of Skagway, Haines , Klukwan and the immediate
surrounding areas of the Chilkat Valley. This market is being served by a combination of
hydroelectric and diesel generating resources. The cost of diesel generation is variab le and has
increased along with the price of fuel. A new hydroelectric project wou ld provide energy at a
fixed rate over a long period of time.
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
The Walker Lake project wou ld be a sma ll hydroelectric facility having an installed capacity of
approximately I MW. Earlier studies ha ve indicated the project could produce approx im ately
2 ,8 00 MWh of energy annually cOITesponding to a plant factor of 32%. The project would
intercollnect to the existing electJi cal system via a 6-8 mile long transmission line. The optimal
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project configurati o n would be a product of this feasibility study.
Renewable Energy Fu nd
Grant Application Round 5
Anticipated batTier s to project development would include adverse geotechnical conditions and
significant fisheries issues.
4.3.2 Land Ownership
Identify potential land ownership issues, including whether site owners have agreed to the
project or how you intend to approach land ownership and access issues.
Land ownership iss ues have not yet been identified. Early investigations indicate that project
lands are under state or municipal ownership .
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 ti meline
• Identify and discussion of potential ba rriers
Pennittmg and FERC licen sing requirements will be identified in the feasibility study.
4.3.4 Environmental
Address whether the following environmental and land use iss ues apply, and if so how they will
be addressed:
• Threatened or Endangered species
• Habitat issues
• Wetlands and other protected areas
• Archaeological and historical resources
• Land development constraints
• Telecommunications interference
• Aviation considerations
• Visual, aesthetics impacts
• Identify and discuss other potential barriers
The feasibility study will identify potential environmental issues and mitigation measures.
4.4 Proposed New System Costs and Projected Revenues
(Total Estimated Costs and Projected Revenues)
The le ve l 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
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• Requested grant funding
• Applicant matching funds -loans, capital contributions , in-kind
• Identification of other funding sources
• Projected capital cost of proposed renewable energy system
Renewable Energy Fund
Grant Application Round 5
• Projected development cost of proposed renewable energy system
Project development costs are unknown at this time but are assumed to be in the order of$7-8M.
The co st for the fea si bility study is estimated at $140,000.
4.4.2 Project Operating and Maintenance Costs
Include anticipated O&M costs for new facilities constructed and how these wou ld be funded by
the applicant.
(Note: Operational costs are not eligible for grant funds however grantees are required to meet
ongoing reporting requirements for the purpose of reporting impacts of projects on the
communities they serve.)
Project operating and maintenance cost s are unknown at this time but are not considered to be
significant.
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 qrant-funded proiect
Power produced by the project would be used by [PEe to meets its ' customer 's need s. The pric e
of power will largel y be a function of the final financing structure .
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
[See Appendix B]
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Rene wable Energy Fund
Granl Application Round 5
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 re venue (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 m ig ht be available)
• Di scuss the non-economic public benefits to Alaskans over the lifetime of the project
The project would h av e the following benefits :
Potential Fuel Di splacement
Assuming $4.00 gal for diesel and 13.5 kWh /gal , the project could displace die s el con s umptio n
by $830 ,000 annu all y.
Anticipated Annual revenue
IPEC is eco nomicall y regul ated b y the Regul ato ry Commi ss ion of Alaska. As s uch , electric rate s
and re ven ue changes are subject to the RCA review and approval.
Potenti a l additional annual incentives and re venue stream s :
Unkn own a t thi s time
No n-econ om ic Publi c Benefits to Alas kan s
• Help fulfill IPECs long-ternl renewable energy initiatives .
• Develop a vi ab le and renewabl e means to produce energy loca lly
• Demonstrate State and IPEC commitment to ren ewable en ergy reso ur ce development
• R educed dependence on diesel fuel and potential for fuel s pill s
• R ed uced noise when operating 100% on hydroelectric pow er
• Reduced emissions and air pollution
SECTION 6-SUSTAINABILITY
Discuss your plan for operating the completed project so that it will be sustainable .
Include at a minimum:
• Proposed business structure(s) and concepts that may be considered.
• How you propose to finance the maintenance and operations for the life of the project
• Identification of operational issues that could arise .
• A description of operational costs including on-going support for any back-up or existing
systems that may be requ ire to continue operation
• Commitment to reporting the savings and benefits
AEA12-001 Grant Application Page 12 of 15 7/1 112 011
Renewable Energy Fund
Grant Application Round 5
IPEC will own and operate th e hydroelectric facility. [PEC owns, operat es, and maintains electri c
utilities in five small rural communities and provides reliable co st effective electric power year-
round. As a member owned cooperative, IPEC is a non-profit entity focused on deli vering
reliable, low co st electric energy .
The Project will o perate at the same l evel of detail and consistency as all IPEC power plant
operations. A Bu s iness Operating Plan will be prepared for the project that identifies long tenn
operations and maintenance , as well as renewable and replacement costs for the useful life of the
project.
IPEC has a proven record of operating and maintaining so und power plant operations and electric
distribution systems.
IPEC will commit to monitoring and reporting the Project savings and benefits as required b y the
REF grant funding, and to demonstrate the viability of this renew able project.
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.
Previous work on the project includes a reconn aissa nce stud y of the project in 1988 by the Alaska
Power Authority.
No previous grant monies have been received to study the project. Once RE grant fund s are
received, IPEC will retain HDR to perfonn the work. Work will begin as soon as practical.
SECTION 8-LOCAL SUPORT
Discuss what local support or possible opposition there may be regarding your project. Include
letters of support from the community that would benefit from this project.
[See Appendix D : 1
AEA12-001 Grant Application Pag e130f15 7/1112011
SECTION 9 -GRANT BUDGET
Renewable Energy Fund
Grant Application Round 5
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 Appendix C]
AEA 12-001 Grant Appli cation P a ge 14 of 15 7/1112011
Re new abl e Energy Fund
Gran l A pplication Round 5
SECTION 10 -ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
A. Contact information, resumes of Applicant's Project Manager, key staff, partners,
consultants , and suppliers per application form Section 3.1 and 3.4 . Applicants
are asked to separate resumes submitted with applications, if the individuals do
not want their resumes posted.
B. Cost Worksheet per application form Section 4.4.4.
C . Grant Budget Form per application form Section 9 .
D. Letters demonstrating local support per application form Section 8.
E. An electronic version of the entire application on CD per RFA Section 1.7.
F. Authorized Signers Form.
G. Governing Body Resolution or other formal action taken by the applicant's
governing body or management per RFA Section 1.4 that:
Commits the organization to provide the matching resources for project at the
match amounts indicated in the application .
Authorizes the individual who signs the application has the authority to
commit the organization to the obligations under the grant.
Provides as point of contact to represent the applicant for purposes of this
appl ication.
Certifies the applicant is in compliance with applicable federal , state, and local,
laws including existing credit and federal tax obligations.
H. CERTIFICATION
The undersigned certifies that this application for a renewable energy grant is truthful
and correct, and that the applicant is in compliance with, and will continue to comply
with, all federal and state laws includ i ng existing credit and federal tax obligations and
that they can indeed commit the entity to these obligations.
Print Name Peter A. Bibb
Signature -;;z:/~/J ----
Title Operations Manager
Date 8-24-1 1
AEA 12-001 Gran t Applica tion Page150f15 7111120 11
Renewable Energy Fund
Grant Application Round 5
APPENDIX "A"
PROJECT RESUMES
Renewable Energy Fund
Grant Application Round 5
APPENDIX liB"
COST WORKSHEET
Renewable Energy Fund Round 5
Project Cost/Benefit Worksheet
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.
11. Renewable Energy Source
The Applicant should demonstrate that the renewable energy re source is available on a
sus tainable basis.
Annual average resource availability . 2 ,800 Mwh
~~------~~----~~-------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 Railbelt' grid, leave this section blank)
i. Number of generators /bailers /other _2 _________________ _
ii. Rated capacity of generators /bailers /other 600 Kw (diesel); 550 Kw (hydro)
iii. Generator /boilers /other type
iv . Age of generators /boi lers/other 35 yrs ; 11 yrs
v. Efficiency of generators /bailers /other 13 kwh per gallon ;
b) Annual O&M cost (if system is part of the Railbe lt grid, leave this section blank)
i. Annual O&M cost for labor $93 ,825 ~~-----------------------------ii . Annual O&M cost for non·labor $185,000 ~~~---------------------------
c) Annual electricity production and fuel usage (fill in as applicable) (i f system is part of the
Railbelt grid , leave this section blank)
i. Electricity [kWh] 1,950,000 (2010)
-----~--~-------------------------------------ii. Fuel usage
Diese l [gal]
Other Purchased
ii i. Pe ak Load 300 Kw
iv . Average Load 250 Kw
v. Minimum Load 175 Kw
vi . Effic iency
vii. Future trends
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] n/a -------------------------------------ii . Electricity [kWh] n/a -------------------------------------iii. Propane [gal or MMBtu] n/a -------------------------------------iv . Coal [tons or MMBtu] _n_/_a __________________ _
v. Wood [cords , green tons , dry tons] _n_/_a __________________ _
vi. Other n/a ~~---------------------------
1 The Rallbelt gr id connects all custo m ers of Chugach Ele ctric Assoc iatio n, Homer Elec tric Asso ciation, Go lden Va l ley Electr ic
Assoc iat ion, the City of Seward El ectric Department, Matanuska Electric As sociation and Ancho rage Munic i pa l l ight and Power.
RFA AEA 12·001 Application Cost Worksheet Page 1 7·1·11
Renewable Energy Fund Round 5
Project Cost/Benefit Worksheet
3. Proposed System Design Capacity and Fuel Usage
(Include any projections for con tinued use of non-renewable fuels)
a) Proposed renewable capacity
(Wind, Hydro , Biomas s, other)
[kW or MMBtu/hr]
1.000 Kw
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] --=:2,:::.8.:.00~M:::.w:::.h _______________ _
ii. Heat [MMBtu]
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu]
14 .
a)
b)
c)
d)
15.
a)
b)
c)
d)
1 6 .
a)
1 7 .
a)
ii . Coal [tons or MMBtu]
iii. Wood [cords , green ton s, dry tons]
iv . Other
Project Cost
Total capital cost of new sys tem
Development cost
Annual O&M cost of new system
Annual fuel cost
Project Benefits
Amount of fuel displaced for
i. El ectricity
ii . Heat
To Be Determ ined
iii. Transportation
Current price of displaced fuel
Other economic benefits
Alaska public benefits
Power Purchase/Sales Price
Price for power purchaselsale
Project Analysis
Basic Economic Analysis
Project benefiUcost ratio
Payback (years)
RFA AEA12-001 Application Cost Worksheet
Feasib ility Study Only
Potentially less costly area hydroelectric project
Increase renewable hydro resources for SE Alaska
Page 2 7-1-1 1
Renewable Energy Fund
Grant Application Round 5
APPENDIX "("
GRANT BUDGET FORM
Renewable Energy Fund Grant Round V G ran t Budget Form 7-1 -11
Source of Matching
Anticipated RE-Fund Grantee rMatchlng Funds :
Milestone or Task Cash/ln-kind/Federal TOTALS Completion Date Grant Funds Funds GrantslOther State
GrantslOther
Project Scoping and contract or solicitation 5 /15/2012 $3,000 $1 ,000 In-kind $4,000
Site V isit, geotechnical fi eld reco nn aissanc e , install 6/30/2012 $40,000 $ $40,000
s tream gage
SludyWork
To in dude: Id entification of la nd and regulatory issues ;
PeOTlitting and env ironmental anal ysis; Detailed analysis of 9 /1 /2012 $90,000 $9,000 In-kind $99,000 existing and future energy co sts and markets : Assessment
of allernatives; Conceptual design analysis and cost
eslim ate; Detailed economic and financial analysis ;
Conceptual business and operations plans .
Draft report and recommendations 9 /1 /2012 $20 ,000 $ $20,000
Final report and recommendati ons 9 /15/2012 $7,000 $7,000
$
TOTALS $170,000
Budget Categories:
Di rect Labor & Benefits $ $10,000 $10 ,000
Travel & Per Diem $ $ $
Equipment $ $ $
Materia ls & Supplies $ $ $
Con lractual Services $ $160,000 $160,000
Co nstru ction Services $ $ $
Other $ $ $
TOTALS $ $170,000 $170,000
Applications s hould include a separate wo rksheet for each project pha se (Reconnaissance, Feasibility, De sig n and Permittin g, and Construction)-
Add additional pages as needed
Renewable Energy Fund Grant Round V Grant Budget Form 7 -1 -11
Project Milestones that should be addressed in Budget Proposal
Reconnaissance Feasibility Design and Permitting Construction
1. Project scoping and 1. Project scoping and co ntractor 1. Project scoping and contractor 1. Confirmati on that all design
contractor solicitation. solicitation . solicitation for p lanning and and feasibility requirements
2 . Resource identification and 2. Detailed energy resource
design are complete.
analysis analysis 2. Permit applications (as 2. Completion of bid documents
3. Land use , permitting, and 3. Identification of land and
needed)
3. Contractor/vendor selection
environmental analysis regulatory issues , 3. Final environmental and award
ass essment and mitigation
4. Construction Pha ses -4. Preliminary design analysis 4 . Permitting and environmental plan s (as needed)
and cost analysis
4. Resolution of land use , right of Ea c h project will have unique
5. Cost of energy and market 5. Detailed analysis of exi sting way issues co nstruction phases, limitatio ns,
analysis and future energy costs and and schedule constraints which
markets 5 . Permit approvals should be identified by the
6 . Simple economic analysis grantee
6. Assessment of alternatives 6. Final system design Integration and testing 7. Final report and 5.
recommendations 7. Conceptual design analysis 7 . Engineers cost estimate
6. Decommi ssion ing old and cost es timate
8. Updated economic and systems
8 . De ta iled economic and financial analysis 7. Final Acceptance, financial analysis
9 . Negotiated power sales Commissioning and Start-up
9, Conceptual business and agreements with approved
8. Operations Reporting operations plans rates
10. Final report and 10. Final business and operational
re com mendations plan
----
Renewable Energy Fund
Grant Application Round 5
APPENDIX "0"
lETIER(S) OF LOCAL SUPPORT
August 24, 2011
Renewable Energy Grant Fund
Alaska Energy Authority
813 West Northern Lights Blvd
Anchorage, AK 99503
Subject: WaU{er Lake Hydro Project Feasibility Study -Renewable Energy Fund Grant
Application -Letter of Support
Application Review Conunittee:
This letter is provided in support of the Inside Passage Electric Cooperative (IPEC) Walker Lake
Hydro Electric Feasibility Study Renewable Energy Fuud grant application.
IPEC's intentiou is to displace diesel generation currently operating on the electric grid that
serves Klukwan and Chilkat Valley. As you are aware, the high cost of diesel fuel creates varying
costs to the members being served . The cost of energy for the all of the customers of IPEC
is a significant recurring monthly cost, which affects the community in all aspects of
day-to-day living.
The people of Klukwan and the Haines Borough require the benefits of stable and lower cost
energy sources to maintain a good standard of living and receive economic benefits. It is
important for the cooperative members of Klukwan and the Haines Borough to know that the
electric utility is willing to control their costs wherever practical. The Chikoot Indian Associ ation
welcomes and fully supports this opportwUty to implement this beneficial project, and requests
the Review Committee carefully consider the merits of this application.
If you have any questions please call me at (907) 766-2323 , or fax your comments to (907) 766-2365 .
Sincerely, r1_ _ -
-'-11 ~ \(;ill vv..lf2v-~
o bavid F. Berry Ir
Presdient
Chilkoot Indian Assocaition
CIlILKAT L,DlAI', VILLAGE
"Yee gu .aa yn l'wan ."
August 24, 20 II
Renewable Energy Grant Fund
Alaska Energy Authority
813 West NOllhern Lights Blvd
Anchorage , AK 99503
Chilkat Indian Village
32 Chilkat Avenue, Klukwan , AK
P.O. Box 210, Haines, Ak 99827
Phone: (907) 767-5505
FAX: (907) 76755 18
www.chilkati ndi an village.org
Subject : Walker Lake Hydro Project Feasibility Stud y -Renewable Energy Fund
Grant Application -Letter of Support
Applicati on Review Committee:
Thi s letter is provided in support of the Inside Pas sage El ectric Cooperative (lPE C)
Walker Lake Hydro Electric Fe as ibilit y Stud y Renewab le Energy Fund grant application.
IP E C s intention is to di splace diesel generation currently operating on the electric grid
that serves Klukwan and Chilkat Valley. A s you are aware, the high cost of diesel fuel
creates varying costs to the members being served. The cost of energy for the village of
Klukwan and its people is a significant recurring monthly co st, which affects the
community in all aspects of day-to-day operations .
The people of Klukwan require the benefits of stab le and lower co s t energy sources to
maintain a good standard of living and receive the economic benefits . It is important for
the cooperative members of Klukwan to know th at the electric utility is willing to control
their costs wherever practical. The Ch ilk at Indian Village welcomes and fully supports
this opportunity to impl ement this beneficial project, and requ ests the Review Committee
carefull y consider the merit s of this application.
If you have any question s plea se call me at (907) 767-5505 , or fax your comments to
(907) 767-55 18.
Sincerely,
Renewable Energy Fund
Grant Application Round 5
APPENDIX liE"
ELECTRONIC COPY OF APPLICATION
Renewable Energy Fund
Grant Application Round 5
APPENDIX "F"
AUTHORIZED SIGNERS FORM
Grant Documents Authorized Signers
Please clearly print or type all sections of this form.
Community/Grantee Nam e : Inside Passage Electri c Cooperative, Incorporated
Regular Election is held : Annually Date : August 24 , 2011
Authorized Grant Signer(s):
Printed Name Title Term Signature
Peter A. Bibb Operations Manager ~/1
I authori z e the abo ve person(s) to sign Grant Documents :
(Highest ranking organization /community/municipal official)
Printed Name Title Term Signature
Jodi Mitchell CEO/GM
Grantee Contact Information'
Mailing Addres s: PO Box 210149 , Auke Bay, AK 99827
Phone Number: 907 789-3196 ext 30
Fax Number: 907 790 -8517
E-mail Address: pbibb@ak.net
Fiscal Year End: December 31 , each year
Entity Type (For-profit or non-profit status): Non-profit
Federal Ta x ID #: 43-196-4262
Please submit an updated form whenever there is a change to the above information .
Please return the original completed form to:
Alaska Energy Authority
813 W . Northern Lights Blvd .
Anchorage , AK 99503
Attn: Butch White , Grants Administrator
AlASKA
ENERGY AUTHORITY
H:\petes docs\Hydro Development\W alk er Lak e 2011 \REF Round V\GrantDocumentsAuthorizedSigner sS.d oc
Renewable Energy Fund
Grant Application Round 5
APPENDIX "Gil
GOVERNING BODY AUTHORIZATION
I PEe
INSIDE PASSAGE E:LECTRIC COOPERATIVE:
P.o. Boi ifol4if
Auke Bay, AK 99821
(907)789-3196 790-8517 FAX 800-478-3198
August 24 , 2011
Renewable Energy Grant Fund
Alaska Energy Authority
813 West Northern Lights Blvd .
Anchorage, AK 99503
Re: IPEC -Approval of Project (Walker Lake Hydro Feasibility Study) by Board Chairman
Application Review Committee:
As Chainnan of the Board of Commissioners ofInside Passage Electric
Cooperative, Incorporated, I hereby authorize this application for project feasibility
funding at the match amounts as indicated in the application ; and authorize Jodi
Mitchell, the CEO/General Manager along with Peter Bibb, the Operations
Manager to serve as the point(s) of contact to represent the applicant for purposes
of the grant application; and state that Inside Passage Electric Cooperative is
compliant with all federal, state, and local laws including existing credit and
federal tax obligations.
~i':L\b ~hard rge, 6------