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HomeMy WebLinkAboutAVTEC AEA Grant App pckg 8.25.11/© ENERGY AUTFtORI A Renewable Energy Fund Grant Application 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 B. 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 application. - 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 including existing credit and federal tax obligations and that they can indeed commit the entity to these obligations. Print Name Frederick-Wj sposito Signature Title rector Date August 25, 2011 AEA12-001 Grant Application Page 14 of i4 711112011 /.GVD)ALASKA Renewable Energy Fund Round 5 ME) ENERGY AUTHMITY 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 GrantApp5.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 5.doc applicants in preparing their application. Grant Budget GrantBudget5. 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 being requested. Grant Budget GrantBudgetln Instructions for completing the above grant budget form. Form Instructions structions5.doc Authorized Authorized Form indicating who is authorized to sign the grant, finance Signers Form signers reports and progress reports and provides grantee information. form5.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. REMINDER: • Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials submitted to the Authority may be subject to disclosure requirements under the act if no statutory exemptions apply. • All applications received will be posted on the Authority web site after final recommendations are made to the legislature. • In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or proprietary company data be kept confidential subject to review and approval by the Authority. If you want information is to be kept confidential the applicant must: o Request the information be kept confidential. o Clearly identify the information that is the trade secret or proprietary in their application. o Receive concurrence from the Authority that the information will be kept confidential. If the Authority determines it is not confidential it will be treated as a public record in accordance with AS 40.25 or returned to the applicant upon request. AEA 12-001 Application Page 1 of 14 7/1/2011 /4ALASKA Renewable Energy Fund Grant Application Round 5 SECTION 1 —APPLICANT INFORMATION Name (Name of utility, 1PP, orgovemment entity submitting proposal) AVTEC-Alaska's Institute of Technology Type of Entity: Government —Alaska Department of Labor and Workforce Development Fiscal Year End: June 30 Tax ID # 92-6001185 Tax Status. For -profit or.X_non-profit (chock one) Mailing Address Physical Address PO Box 889; Seward, AK 99664 809 Second Avenue; Seward, AK 99664 Telephone Fax Email 907 224-3322 907 224-4401 1.1 APPLICANT POINT OF CONTACT 1 GRANTS MANAGER Name Title Amy Haddow Grant Adminlstrator Mailing Address PO Box 889; Seward, AK 99664-0889 Telephone Fax Email (907) 224-6155 (907) 224- 401 akhaddow@gmail.com 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) 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); X 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. AEA12-001 Grant Application Page 2 of 14 7/1112011 IZ ALASKA Renewable Energy Fund EW::)ENERGY AUTHORITY 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) Type in your answer here and follow same format for rest of the application. AVTEC Hydroelectric Training Facility 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. Location -- latitude and longitude or street address or community / communities served: Seward, Alaska 99664 2.3 PROJECT TYPE Put in boxes as appropriate 2.3.1 Renewable Resource Type Wind Biomass or Biofuels X 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. AVTEC will partner with the City of Seward to renovate, refurbish, and upgrade the City's existing Marathon Hydroelectric plant, which is currently unused. The plant will become an educational and training tool that supports AVTEC's Hydro Power Plant Operator training program, sponsored by the Alaska Energy Authority. The intent is to return the plant to productive use and maximize the training benefits it can provide. AEA12-001 Grant Application Page 3 of 14 7/1//2011 I© ALASKA Renewable Energy Fund 40--) ENERGY AUTHORITY Grant Application Round 5 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.) This project will provide hands-on, relevant and appropriate training to support rural communities that AEA supports by training their hydro/diesel power plant operators. AVTEC currently has a number of energy training programs sponsored in partnership with AEA, including Power Plant Operator and Advanced Power Plant Operator training classes for diesel power plants, and Hydro Power Plant Operator for those with diesel/hydro power generation. AVTEC currently uses its own functioning diesel engine power plant and switch gear to provide hands-on training for all of its power plant operator courses, but does not have an operational hydro power plant to support training. Therefore, students and instructors must travel to a community with an appropriate hydro power plant to meet the competencies required in the training curriculum. The existing but defunct Seward hydro plant is available to AVTEC for training, and if renovated it would become a perfect training tool. In addition, the City of Seward has agreed to allow power supplied by the Mt. Marathon Hydro Plant into Seward's electrical utility grid, and to provide monetary compensation for the power produced. 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. Renovating the Marathon Hydro Plant to make it operational for training and power generation has a total project cost of $723,138. AVTEC has already expended $16,588 for the condition assessment performed under contract by HDR Alaska, and AEA will use $67,500 toward design and permitting work between September 2011 and June 2012. AVTEC is requesting $639,050 from the AEA Renewable Energy Fund for the construction phase of the project, which includes $510,000 for the renovation; $51,000 for contingencies; $15,300 for project inspections; and $60,000 in administrative support. AVTEC will fund ongoing maintenance and operation expenses through a Memorandum of Agreement with the City of Seward. 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. $639,050 2.7.2 Other Funds to be provided (Project match) 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $639,050 AEA12-001 Grant Application Page 4 of 14 7/1//2011 ALASKA Renewable Energy Fund Grant Application Round 5 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 $723,138 including estimates through construction) 2.7.5 Estimated Direct Financial Benefit (Savings) $ 10,000 2.7.6 Other Public Benefit (If you can calculate the benefit in $ NIA terms of dollars please provide that number here and explain how you calculated that number in your application (Section 5.) AEA12-001 Grant Application Page 5 of 14 711112011 ALASKA Renewable Energy Fund ,41E_�::)ENERGY AVTHORITY Grant Application Round 5 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. The Alaska Department of Transportation and Public Facilities (DOTPF) will provide project management, procurement, and solicitation of contractors to perform work. They have statutory authority to perform project management for State of Alaska public construction projects. 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.) The design and permitting phase will be conducted through AEA during state fiscal year 2012, so that construction can begin by August 2012 contingent on receipt of grant funds. The renovation will be complete by the end of the grant term on June 30, 2013. 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. The Milestones must also be included on your budget worksheet to demonstrate how you propose to manage the project cash flow. (See Section 2 of the RFA or the Budget Form.) September 2011— May 2012: AEA will work with contractor HDR to complete planning, design, and permitting for the hydro power plant renovation May 2012: Contingent on funding approval, confirm that all design and fcasibility requirements are complete. August — October 2012: Complete bid documents for prospective contractors, and select bid for award by 1 October 2012. October 2012 — April 2013: Construction to renovate hydro power plant, including • excavation/renovation of reservoir spillways, intake valves, and penstock area; • integration into electric grid and system testing • final acceptance, commissioning, and start-up May -June 2013: Complete construction, inspection, testing, and reporting. 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. AEA12-001 Grant Application Page 6 of 14 7/1//2011 /40= ENERGY A[fTi10 A Renewable Energy Fund Grant Application Round 5 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. AVTEC's Grant Administrator will maintain open lines of communication with contractors, the school's Industrial Electricity and Power Plant Operator instructors, and AVTEC's director (Fred Esposito) and deputy director (Dick Harrell). Monthly and/or quarterly reports will include progress narratives, financial information including budget -vs. -actual expenses, and photographs that document stages of project completion (when available). 3.6 Project Risk Discuss potential problems and how you would address them. Since this project involves renovation of an existing hydro plant that will be used for training purposes, risks that might jeopardize the project are negligible. The greatest risk might be minor project delays due to procurement of required equipment to complete renovations. AEA12-001 Grant Application Page 7 of 14 7/11/2011 ALASKA Renewable Energy Fund I© ENERGY AUTHORITY Grant Application Round 5 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 extentlamount 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. Log sheets found in the powerhouse indicate that the maximum power output of the plant is 160 kw. Conservative estimates put energy produced from this plant at a minimum of 100 kw for 20-30 years. 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 Marathon hydroelectric project is located in Seward, Alaska. The project was constructed in the early 1980's as a combined water supply and hydroelectric project. The project consists of a small spring -fed diversion, approximately 3,500 ft. of 12"-14" steel penstock, and a small powerhouse housing one single jet pelton turbine, driving a 250 kw induction generator via a speed increasing gear. The project was designed by Ott Water Engineers to operate at 8.5 cfs under 440 ft net head. The powerhouse also contains pumping equipment to pump water from the tailrace into the City's water supply system. The project operated until sometime in the 1990's when an electrical problem caused the plant to shut down. At the time of the equipment failure, the project was no longer part of the water supply system and revenues were not sufficient to justify repairs. The project has remained off- line since then. 4.2.2 Existing Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the project may have on existing energy infrastructure and resources. Currently, the City of Seward purchases power from Chugach Electric. The City is finalizing a process to allow power supplied by the hydro plant into the utility grid, and to provide monetary value for the power produced. AEA12-001 Grant Application Page 8 of 14 711112011 /� ALASKAENERGY TM Renewable Energy Fund Grant Application Round 5 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The City of Seward currently provides electrical power to the residents of Seward and the surrounding communities. A renewable energy source like the Marathon Hydro facility will be a welcome addition to the local utility grid, and its use as a training facility for Alaskans from other communities is equally important. 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 Please refer to the Marathon Hydro plant Condition Assessment, attached. 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 land and existing power plant are owned by the City of Seward. The City supports AVTEC's use of those assets for the project, and is currently developing a Memorandum of Agreement authorizing AVEC to maintain, operate, and utilize the hydro plant for 50 years. 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 DOTPF will handle permitting requirements, which will be minimal since this is a renovation of an existing facility. AEA12-001 Grant Application Page 9 of 14 7/1//2011 hALASKA Renewable Energy Fund ENERGY AUTHORITY Grant Application Round 5 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 None of the issues and potential barriers listed above apply to this project, because it involves an established facility that will be renovated to make it operational and to provide a valuable training tool. 4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) The level of cast 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 The total anticipated project cost is $723,138, with costs for the construction phase of $639,050. $16,588 of the total has already been funded by the State of Alaska and expended for a condition assessment of the hydro plant (report attached), and another $67,500 will cover expenses for AEA to employ a contractor for the design and permitting phase. AVTEC is requesting $639,050 to complete renovations and repairs, and is committed to maintaining and operating the hydro facility by budgeting funds annually to accomplish that. 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. AEA12-001 Grant Application Page 10 of 14 7/1112011 /awE7:)) ALASKA Renewable Energy Fund 90= ENERGY AMORMY Grant Application Round 5 (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. Under a Memorandum of agreement with the City of Seward, AVTEC will maintain and operate the Marathon Hydro facility as a training facility that can also produce energy. The costs will be covered in AVTEC's operating budget. 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following: • Identification of potential power buyers)/customer(s) • Potential power purchase/sales price - at a minimum indicate a price range • Proposed rate of return from rant -funded project The potential power buyer/customer will be the City of Seward electric utility, with a purchase price of approximately $0.60 per kwh. 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. The costs reflected on the worksheet are derived from the condition assessment report (attached) and projected administrative expenses. 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 The Marathon hydro plant will primarily be used as a training facility for the AVTEC Hydro Plant Operator training program. This training program has been developed in partnership with AEA and at their request. Prior to AVTEC's development of the program, AEA had to send operators to training outside Alaska at great expense —at least $5,000 per person in travel and tuition for approximately 10 participants per year. The training Outside also focused on large hydro plants, making it less relevant and beneficial for Alaskans who operate small or medium plants. More effective hands-on training will reduce down time and increase the life span and efficiency of hydro plants across the state. This plant will serve Alaska utilities for many years by helping train the personnel required for successful and efficient operation of hydro plants across the state, reducing down time and increasing the life span of plant investments. AEA12-001 Grant Application Page 11 of 14 7/11/2011 hALASKA Renewable Energy Fund ENERGY XrTHORITY Grant Application Round 5 SECTION 6— SUSTAINABILITY Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum: • Proposed business structure(s) and concepts that may be considered. • How you propose to finance the maintenance and operations for the life of the project • Identification of operational issues that could arise. • A description of operational costs including on -going support for any back-up or existing systems that may be require to continue operation • Commitment to reporting the savings and benefits AVTEC staff will maintain and operate the renovated Marathon hydro plant. The operational costs will be covered as part of the Hydro Plant Operator training program. AVTEC's administration is committed to staff training, adequate funding for continual and sustainable operation, and reporting savings and benefits. 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. AVTEC has developed a Hydro Power Plant Operator training program in partnership with the Alaska Energy Authority to provide training to communities sponsored by AEA. The Marathon hydro plant in Seward has been used to support the training in a limited way, but due to its poor condition and outdated equipment, the plant does not meet the standards for training. AVTEC contracted with HDR Alaska, Inc. to perform a condition assessment of Marathon Hydro, and the final report was completed on July 30, 2010. The assessment identifies all of the major components that must be replaced to bring the plant back on line, along with cost estimates for construction. Given this advanced engineering review and the planned completion of the design and permitting by AEA, AVTEC anticipates the ability to move forward with work on the project as soon as notice of an award is received. No other grants or renovation projects are in progress related to this hydro plant or project. 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. Included below is a letter from the City Manager of Seward, Phillip Oates, to AVTEC Director Fred Esposito, confirming the City of Seward's support for (and planned use of) the renovated hydra facility for training by AVTEC and power generation. AEA12-001 Grant Application Page 12 of 14 711112011 /4011F))ENERGY ALASKA Renewable Energy Fund Grant Application Round 5 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 — GranfBudget&doc Provide a narrative summary regarding funding sources and your financial commitment to the project. To date, AVTEC has expended $16,588 in State funds for the condition assessment of the hydro facility in Seward. AEA will expend an additional $67,500 over the next year for project design and permitting. AVTEC is requesting $639,050 to complete the renovations and repairs, and is committed to maintaining and operating the hydro facility with funds budgeted annually to accomplish this. AEA12-001 Grant Application Page 13 of 14 7/1//2011 IS ALASKA Renewable Energy Fund Round 5 �ENERGYAUTHORiTY 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. 1. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. Approximately 100 —190 kw 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 generatorslboilerslother ii. Rated capacity of generatorslboilerslother iii. Generatorlboilerslother type iv. Age of generators/boilers/other v. Efficiency of generatorslboilerslother b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor li. 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] ii. Fuel usage Diesel [gal] Other iii. Peak Load iv. Average Load v. Minimum Load 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] A. 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. RFA AE412-001 Application Cost Works heet Page 1 7-1-11 /601EED) ALASKA Renewable Energy Fund Round 5 401--)ENERGYAUTHORITY project Cost/Benefit Worksheet 3. Proposed System Design Capacity and Fuel Usage (include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity Hydro 100-160 kw (Wind, Hydro, Biomass, other) [kW or MMBtulhr] b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 876,000--1,401,600 kwh ii. Heat [MMBtu] NIA c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] NIA ii. Coal [tons or MMBtu] NIA iii. Wood [cords, green tons, dry tons] NIA iv. Other NIA a) Total capital cost of new system $639,050 b) Development cost c) Annual O&M cost of new system $ 5,000 d) Annual fuel cost NIA 5. Project Benefits a) Amount of fuel displaced for i. Electricity 3.322.259 Mcf Natural Gas ii. Heat iii. Transportation NIA b) Current price of displaced fuel c) Other economic benefits d) Alaska public benefits 6. Power Purchase/Sales Price $0.60 per kwh Customized training in Alaska for hydro facility operators a) Price for power purchase/sale Approximately $0.601kwh 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio $60,000 saved in Natural Gas expenses Payback (years) 12 years RFA AEA12-001 Application Cost Worksheet Page 2 7-1-11 "D Q Q A Q O O 3 Q1 N 3- C (D N N C COD CD Q. CD Q. CD v a: CD 0 N 3- (D a O 1 (D 0 0 x CD 0 O 3 3 a1 n (D .-A a0 0) N CL o a 00 0 N N - c v' m CL 2' fD o n y . . . . 3• O� ��—, g°to yo 2 n Oo �, Q, ? -u cr rro fA L a' CD o• o o rn 0 aCD (A C/i f� O : I (Jr, Q. N n - = � 7 � 7 C' N oz Cl CO �' oC 8� �';� Z (D ? 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Marathon Hydro facility support Mr. Esposito, • Main Office (907) 224-4050 • Police (907) 224-3338 • Harbor (907) 224-3138 • Fire (907) 224-3445 • City Clark (907) 224-4046 • Community Development (907) 224.4049 Utilities (907) 224-4050 • Fax (907) 224-4038 Thank you for your letter dated July 22, 2010 requesting City of Seward support of the Alaska Vocational Technical Center (AVTEC) Mt. Marathon Hydro Facility project. The proposed project using the City's Marathon Hydroelectric equipment is consistent with our municipal public policies of a facility producing in excess of twenty-five kilowatts and the City's support for AVTEC's expansion of their training programs in Seward. The Administration continues to develop and refine a Memorandum of Agreement to allow AVTEC to utilize the equipment, and we will recommend Council's support of the agreement. The City applauds AVTEC's mission as the largest and oldest technical training institute and your efforts to train a diverse and effective workforce that supports the economic growth and stability of our state. Currently, a process is being developed to both allow power supplied by AVTEC's Hydro Project into the Seward Electrical Utility Grid and to also provide monetary value for the produced power. While the details are still being finalized, we are certain that prior to the completion of your project, this mechanism will be available. The City of Seward supports AVTEC's operation as a first class hydroelectric training facility. If you have questions, or require further information, please do not hesitate to contact me at your convenience. Sincerely, Alates, BA City Manager City of Seward Grant Documents Authorized Signers Please clearly print or type all sections of this form. Community/Grantee Name: AVTEC-Alaska's Institute of Technology Regular Election is held: NIA Date: 8/25/2011 Authorized Grant Signer(s): Printed Name Title Term,Signature Fred Esposito Director NIA I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term SJ ature Fred Esposito Director NIA Grantee Contact Information: Mailing Address: PO Box 889; Seward, AK 99664 Phone Number: 907 224-6150 Fax Number: (907) 224-4401 E-mail Address: fred.esposito@alaska.gov Fiscal Year End: June 30 Entity Type (For -profit or non-profit status): Non-profit Federal Tax ID #: 92-6001185 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. XMKA Anchorage, AK 99503 ENERGY AUTHORITY Attn: Butch White, Grants Administrator G:\AE4 Renewable Energy - Hydro12o11-FY13 Grant Application Package\AVTEC_Authorized5igners5.doc Sepbemiber 14, 2010 To Whom It May Concern: AVTEC is committed to providing the match resources for the Marathon Hydro Refurbishing project in the amounts indicated in the application. As the Director of the Institute, I have full authority to commit the o rganiration to the obligations under the grant. Fred Esposito, AV IEC Director will be the point of contact for the pmrposes of this grant. AVTEC is compliant with all laws and obligations. Sincerely, i?red Esposito Director AVTF,C-Alaslm'a Institute of Technology • PO BOX 889 • 809 2nd Avenue • Seward, Alaska 99664-0889 Admissions Office (907) 224-3322 • 1-800-478-5389 a FAX (907) 224 44 0 • wwwaMec.edu AVTEC does not discriminate due to race, color, national origin, age, sex, political affiliation, religiaus beliefs, or disability. AVTEC is a division of the Alaska Department of Labor and Workforce Development Marathon Hydroelectric Plant Condition Assessment Seward, Alaska Prepared for: Alaska Energy Authority Alaska Vocational Technical Education Center Prepared by: �a HDR Alaska, Inc. 2525 C Street, Suite 305 Anchorage, Alaska 99503 July 30, 2010 Marathon Hydroelectric Plant Condition Assessment Contents 1 Background............................................................................................................................1 2 Existing Project Works......................................................................................................... 1 2.1 Intake................................................................................................................................ 1 2.2 Penstock........................................................................................................................... 1 2.3 Shut-off Valve.................................................................................................................. 2 2.4 Turbine............................................................................................................................. 2 2.5 Speed Increasing Gearbox................................................................................................ 3 2.6 Generator..........................................................................................................................4 2.7 Controls............................................................................................................................ 4 2.8 Transformer......................................................................................................................6 3 Conclusions............................................................................................................................ 6 4 Refurbishment Plan............................................................................................................... 7 4.1 Optional Upgrades............................................................................................................ 8 5 Cost Estimate......................................................................................................................... 9 Appendix A: Site Visit Report................................................................................................... 10 Alaska Energy Authority i July 30, 2010 Marathon Hydroelectric Plant Condition Assessment 1 Background The Marathon hydroelectric project is located in Seward, Alaska. The project was constructed in the early 1980's as a combined water supply and hydroelectric project. The project consists of a small spring -fed diversion, approximately 3,500 ft of 12"-14"steel penstock, and a small powerhouse housing one single jet pelton turbine, driving a 250 kW induction generator via a speed increasing gear. The project was designed by Ott Water Engineers to operate at 8.5 cfs under 440 ft net head, The powerhouse also contains pumping equipment to pump water from the tailrace into the City's water supply system. The project operated until sometime in the 1990's when an electrical problem caused the project to shut down. At the time of the equipment failure, the project was no longer part of the water supply system and revenues where not sufficient to justify repairs. The project has remained off- line since then. AVTEC has approached the City of Seward about using the project as a training facility for utility operators. HDR Alaska was contracted by the Alaska Energy Authority to assess the project and determine the feasibility of using the project as a training facility. As part of this work, HDR engineers visited the site May 11-12, 2010 and inspected the project and interviewed personnel familiar with the project. This report provides a condition assessment of the facilities as they are now and provides recommendations and needed repairs to make the project operational again. A site visit report is attached as Appendix A. 2 Existing Project Works The project consists of the following major components. A general description of each follows. 2.1. Intake The intake was not accessible at the time of the site visit, but the construction drawings were reviewed. The intake includes a small dam, intake screens, and a level sensor that is wired to the power plant. The condition of the signal wiring and the float operated sensor were not assessed but it is assumed they are no longer operational. AVTEC personnel report that the intake appears to be in relatively good condition and does not have sediment accumulation but does have accumulated leaves. 2.2 Penstock The penstock was not accessible at the time of the site visit but it is assumed to be operating condition. There have been no reported leaks or other problems with the penstock by those familiar with the project. Since the project has been shut down a small amount of water has been allowed to flow through the penstock to protect it from freezing. Alaska Energy Authority I July 30, 2010 Marathon Hydroelectric Plant Condition Assessment 2.3 Shut-off Valve The penstock terminates with a gate valve equipped with a Limitorque electric operator. The valve is currently partially open and according to AVTEC personnel is not operable. A pressure gauge mounted upstream of the shutoff valve is scaled 0 — 300 PSI. The gauge reading changes as the isolating valve is closed or opened indicating that the piezometer tap for the gauge is likely fouled. Figure 1. Turbine Shutoff Valve with Electric Operator 2.4 Turbine The turbine is a single jet impulse turbine of the Pelton design. The turbine does not have any nameplate or manufacturer's information on the case but, based on the speed increasing gear name plate, it appears to be designed to Operate at approximately 730 rpm. The turbine is equipped with an electrically operated spear, with provision for manual operation by hand wheel. The electric operator was designed to be controlled automatically to regulate the intake pool elevation. At the time of the site visit, the operator had been removed from the spear mechanism. Its condition is unknown. It was noted that there is a small seeping leak in the weld that mounts the spear shaft packing box and guide bearing to the inlet case. This may indicate significant corrosion of that weld has occurred. Alaska Energy Authority 2 July 30, 2010 Marathon Hydroelectric Plant Condition Assessment Figure 2. Turbine, Speed Increaser and Generator The turbine has a deflector designed to prevent flow from hitting the runner during a shut -down sequence. The deflector is not designed to be partially operated. The deflector is weight operated and released by actuation of an electric solenoid. Resetting of the deflector requires hoisting of the weight using the overhead crane. The deflector was cycled several times and appears to be in working order. The turbine runner is mounted on a shaft with anti -friction bearings on each side of the turbine housing. At the time of the site visit the tailrace chamber was full of water and therefore the runner could not be inspected. 2.5 Speed Increasing Gearbox The turbine is coupled to the low speed shaft of a speed increasing gearbox. The speed increaser is rated 720 rpm/1750 rpm. The gearbox is equipped with grease lubricated antifriction bearings on both shafts and with a motor pump for forced oil lubrication for the gears. The oil circulating system includes a water/oil heat exchanger which uses cooling water from the penstock. Alaska Energy Authority 3 July 30, 2010 Marathon Hydroelectric Plant Condition Assessment Figure 3. Speed Increaser with Cooling and Forced Oil Lubrication system 2.6 Generator Power is produced from an induction generator. The generator was manufactured by Reliance Kato Engineering and is rated 250 kW, 1773 rpm, 480 volts, 3 phase 60 Hz and includes internal thermal protection. The generator bearings are grease lubricated antifriction bearings. 2.7 Controls The turbine -generator controls are packaged in the top half of a single cabinet. The bottom half of the cabinet contains an electrically operated power switch, current transformers, and a power resistor bank. Alaska Energy Authority 4 July 30, 2010 Marathon Hydroelectric Plant Condition Assessment Figure 4. Control and Switching Electrical Panel The controls consist of conventional control switches, indicating lights, meters and protective relays mounted on the door, and a Texas Instruments programmable controller and a few control relays mounted in the interior back panel. The control panel encountered some amount of component failure which has apparently never been resolved and the panel assembly has been partly disassembled. The relay components have not been properly closed with the covers. Alaska Energy Authority 5 July 30, 2010 Marathon Hydroelectric Plant Condition Assessment Figure 5. Generator Main Switch inside Control Panel A main power disconnect for the generator power is mounted on the back wall of the building. A separate feeder disconnect provides service for the station power and lighting was energized at the time of the site visit. 2.8 Transformer The original design drawings for the project identified one pad mounted 300 kVA transformer to be located adjacent to the powerhouse. Currently there are two pad mounted enclosures located outside of the powerhouse. One of these is a transformer labeled at 75 kVA. The other pad mounted enclosure sits adjacent to this transformer and is not labeled and is presumably the 300 kVA main power transformer. 3 Conclusions The mechanical equipment appears in generally good condition for having sat unused for such an extended period of time. The deflector, turbine, speed increasing gear box and generator all rotate freely. However, the mechanical equipment should be disassembled and inspected before any attempts are made to operate the project. Alaska Energy Authority 6 July 30, 2010 Marathon Hydroelectric Plant Condition Assessment It is possible that the existing control panel could be refurbished to operate the plant but the relay components are obsolete and would not be useful as part of a training program. The lack of documentation of the control equipment would add significantly to the cost of refurbishment. As such, it would probably be best to replace the entire control panel with a modern unit. The shut off valve is reportedly stuck in a partially opened position. An inoperable shut off valve poses a potential safety hazard and should be remedied. Repair of the valve will require draining of the penstock. At that time, the pressure gauge tap could also be repaired and weld repairs could be made to the turbine nozzle assembly. The transmission system is not documented and it is apparent that changes have been made to the original design. As -built drawings should be created for the existing system and copies should be located in the powerhouse as well as in the City's offices. 4 Refurbishment Plan The following plan is developed for the purpose of returning the plant to productive use and maximizing the training benefits that it can provide. It is anticipated that the following work would be done under a single contract however routine maintenance and cleaning could be done by volunteer or force account labor. Intake: Clean the accumulated debris, inspect and repair as necessary the intake screens, level sensor and other components. Test the communication wiring to the plant. If the wiring has failed, consider alternative means of signaling the water level to the powerhouse, such as solar powered radio. Temporarily divert the water from the penstock at the intake and inspect visually the condition of the penstock, if practical. It was reported by City personnel that there is little debris at the intake. 2. Penstock: Visually inspect exposed portions of the penstock for corrosion. Perform limited ultrasonic inspection to assess whether there has been significant interior corrosion. 3. Turbine shutoff valve: While the water is diverted at the intake, disassemble the gate valve and operator, inspect and repair as necessary. Ream the piezometer tap and reinstall the gauge. Add a pressure transducer at the gauge piping. This may require removing the valve from the pipe. 4. Turbine case: Inspect all welds on the pressure piping for defects and corrosion, and repair as indicated to meet applicable ASME Boiler and Pressure Vessel Code, Section VIll. 5. Turbine components: Disassemble the turbine spear and operator, needle and deflector, and inspect all bushings, journals, seals and operating mechanisms, repair as needed, and reassemble. Inspect the turbine runner in place for erosion and cracking. Disassemble and inspect the turbine shaft bearings, regrease and reinstall. Inspect the interior of the turbine housing for erosion and corrosion. Disassemble the turbine -speed increaser coupling, inspect and replace worn flex components if out of tolerance. Check alignment of gear and turbine shaft, adjust as necessary. Reassemble the turbine housing. Test the operation of the deflector trip solenoid mechanism. Alaska Energy Authority 7 July 30, 2010 Marathon Hydroelectric Plant Condition Assessment 6. Turbine control components: Reinstall the electric operator for the spear and ensure proper working order. 7. Speed increasing gear: Inspect the gear housing, bearings lubrication and cooling water circuit components. Inspect the water piping and heat exchanger for corrosion and dirt accumulation. Replace the lubricating oil. Circulate oil and verify correct oil flow to all spray nozzles. 8. Generator: Inspect and megger test windings, test surge suppressors, cable connections. Clean air intakes as accessible and inspect to determine if more thorough cleaning is necessary. Check coupling components and alignment of generator to high speed gear pinion shaft. 9. Control Cabinet and Switchgear: Remove the existing panel and ; replace with one built in accordance with recent new construction J + Y specifications and representative of other new hydro facilities. 0lb 10. Powerhouse: Clean and remove unnecessary equipment and debris. Paint piping and areas showing corrosion/degradation. Dismantle and -I remove un-used water supply pumps, piping and associated equipment. 11. Tailrace: Drill drain hole in vault directly below runner to allow Figure 6. Example vault to drain automatically when unit is shut down. control cabinet 4.1 Optional Upgrades The following upgrades would make the project more modern and a better training platform for operators. 1. Replace electric operator for the spear with hydraulic cylinder and add a hydraulic cylinder for operating the deflector closing weight. Provide a small hydraulic power unit (HPU) to power both cylinders. Add limit switches and position transmitters for both the needle and the deflector, and control valves for the HPU to enable closed circuit modulation of the positions of both in response to governor and level control governors. That system would be more typical of the control systems for existing and new hydro turbines. Figure 7. Example 2. Replace the existing induction generator with a synchronous type hydraulic power unit generator equipped with the current standard excitation and voltage regulating equipment. Again, this would be more typical of existing and new hydro facilities. 3. Add extra controls in the control cabinet to allow for alternative types of turbine control such as the existing electrical spear control, and alternative hydraulic control components and for synchronizing control and voltage regulation for a synchronous generator. 4. Establish a direct communication link with AVTEC's simulation center in Seward and modify the switchgear to allow the two systems to interface. 5. Add a resistive load bank at the hydro facilities to allow for hydro training when not connected to the grid. Alaska Energy Authority 8 July 30, 2010 Marathon Hydroelectric Plant Condition Assessment 5 Cost Estimate The estimated cost for completing the refurbishment plan described above is $250,000. The estimated additional cost for providing the optional upgrades described above is $260,000. Of this, the synchronous generator and voltage control would be approximately $125,000 of the optional items, and the hydraulic, communications and electrical controls $135,000. The cost estimates include labor, materials, engineering support, contractor mobilization and profit, and contingency. There are potential risks that could make the refurbishing of the plant significantly more costly that are not included in the above estimates. These include: 1. Penstock: There is a possibility that significant corrosion has occurred to either the inside or outside surface of the pipe. A need to replace any significant portion of the penstock would be relatively costly. 2. Erosion: The geotechnical conditions around the powerhouse site are unknown. There doesn't appear to have been any damage to the riprap that protects the powerhouse site, but the river clearly meanders. A change in the river thalweg may necessitate additional armoring of the upstream bank to protect the powerhouse and downstream diversion to the tunnel. 3. Power Line to the City: It was reported but not verified that some of the pull boxes for the power cable to the City have been covered up by colluvial deposits from the hillside. A failure of one of the 12 kV underground conductors would require more than the normal activity to replace the cables, including locating and excavating the connection vaults. 4. Shutoff Valve: The condition of the shutoff valve is unclear, and its repair might include removal from the penstock and complete disassembly, increasing the estimate of refurbishment costs by $2500. Alaska Energy Authority 9 duly 30, 2010 Marathon Hydroelectric Plant Condition Assessment Appendix A: Site Visit Report Alaska Energy Authority July 30, 2010 Marathon Hydroelectric Project, Seward, Alaska Trip Report: May 11-12, 2010 Paul Berkshire, P.E. and Bill Holveck, P.E. from HDR traveled to Seward on May 11, 2010. We met with W. C. Casey, Seward Public Works Director around 1 PM. Mr. Casey provided access to the City of Seward's (COS) Marathon Hydroelectric Project and a brief project history. He was working for Seward Public Works at the time the plant was built, and operated it for several years. Sometime in the 1990's there was a failure of some of the electrical components in the control panel. At the time, the discharge from the plant was no longer being used to supply city water, and the value of the output of the plant was not sufficient to contract for repairs. Therefore, the plant was not repaired. The plant has stood idle since then, with only a minimal flow through the pipeline to prevent freezing. Recently they have been using the plant for storage, but they were in the process of relocating the stored items. According to Mr. Casey, the intake flow from the spring has been augmented by directing surface snowmelt to it, but there apparently is no record of the hydrology. Incomplete log sheets found in the powerhouse indicated that the maximum power output of the plant was approximately 160 kW. After Mr. Casey returned to the COS offices, we made a more detailed inspection of the facilities. No O&M manuals were found at the plant. Later W.C. Casey indicated that there may be other plant records and documentation archived at the City, but no one seems sure where to find them. Jeff Estes, COS, confirmed that there had been previously a couple of large file boxes of documents for the hydro plant. AVTEC may also have some of the files. Specific findings are presented in a separate report. Snow conditions and avalanche concerns prevented an inspection of the intake and exposed pipeline. Around 4 PM in the afternoon we met with Allan Fetters and Bob Havemeister from the Alaska Energy Authority at AVTEC's generation facilities on the outside of town. There they showed us the control systems that AEA was installing at various facilities around the state. It was discussed that the ideal situation would be to have any new control systems at the Marathon hydro facilities mimic what is being installed elsewhere to provide a better training atmosphere. We then visited the Marathon Hydroelectric site with them. At the site we jointly discussed the condition of the facilities. It was noted that the mechanical systems seemed to be in general good working order and the turbine appeared to be operational. However, we all concluded that a complete inspection and tear down was warranted. We left the site around 6:30 PM. On Wednesday morning we attended a meeting with representatives of the City of Seward and AVTEC to discuss the condition of the plant and the possibilities for use as an educational facility. In attendance were: Christy Terry, COS, Community Development Director Fred Esposito, AVTEC, Managing Director Kent Berklund, AVTEC, Applied Technologies Department Head W.C. Casey, COS, Public Works Director Marathon Hydroelectric Project Trip Report, May 11-12 2010 Jeff Estes, COS, Electric Operations Manager John Fouts, COS, Utility Manager Several others were also in the room but did not actively participate in the meeting. Prior to the meeting, there had obviously been some discussions between the COS and AVTEC about transferring the Marathon project from the COS over to AVTEC. At the meeting the COS expressed concerns about leasing the facility because it is not on platted land. AVTEC explained their concern that they won't be able to justify a grant for refurbishing the plant without a multi- year commitment by the COS to ensure access to the plant. Paul Berkshire suggested that a simpler solution would be for the COS to contract with AVTEC to operate and maintain the plant. There are precedents for such O&M contracts between cities and third parties. There was considerable discussion of the benefits of the training, and the opportunities and difficulties of raising money for the necessary work. In general, there appears to be pretty good agreement that a win -win solution can be arranged. At the meeting, Kent Berklund said that AVTEC had been up to the powerhouse on several occasions with students and they had taken off the bearing covers to look at the bearings. He also said that they had done some work on the guard valve but thought they might have broke something associated with the operator or that the valve was already broken and they stopped working on it. After the meeting we made a brief visit to the site and then began our return to Anchorage around noon. AI