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HomeMy WebLinkAboutSEAPA Phase I Wind Site Reconnaissance Study Grant Application - Round V Renewable Energy FundGRANT APPLICATION SEAPA PHASE I WIND SITE RECONNAISSANCE STUDY (SEAPA CORRIDOR) SEAPA Southeast Alaska Power Agency 1900 1st Avenue, Suite 318 Ketchikan, Alaska 99901 Ph: (907) 228-2281 • Fax: (907) 225-2287 www.seapahvdro.org August 23, 2011 Delivery Via Express Mail Butch White Grant Manager Alaska Energy Authority 813 West Northern Lights Boulevard Anchorage, Alaska 99503 Re: Submittal of Application: Round V/Renewable Energy Fund Grant Program SEAPA Phase I Wind Site Reconnaissance Study Dear Mr. White: The Southeast Alaska Power Agency ("SEAPA") is pleased to submit the enclosed application for Renewable Energy Grant funding. The proposed use of grant funds is to conduct a Phase I wind site reconnaissance study along transmission line paths owned by SEAPA, which extend from Ketchikan to Petersburg. The study is proposed to determine if it is feasible to use wind power to supplement the energy needs and conserve water used for hydropower for the communities it serves, which include Ketchikan, Petersburg, and Wrangell, with the long-term objective and goal of serving the power needs of additional communities, including Kake. SEAPA is requesting $72,630 in Renewable Energy Grant funds, which SEAPA will match with a $8,070 contribution. The hard -dollar match is in addition to SEAPA staff, which will contribute an estimated 100 hours to manage this wind study effort. SEAPA acknowledges and agrees that this project and its results are for the benefit of the communities of Ketchikan, Wrangell, and Petersburg, with the long-term objective and goal of serving the power needs of additional communities, including Kake. SEAPA will not deny any person use or benefit of the project or project results due to race, religion, color, national origin, age, physical handicap, sex, marital status, changes in marital status, pregnancy, or parenthood. Eric Wolfe will serve as the Grantee Project Manager, and I will have overall authority for the project. If you have any questions regarding this submittal, please do not hesitate to call me at 907/228-2281. Thank you for your consideration of this grant application. Mr. Butch White August 23, 2011 Page Two Sincerely, Dave Carlson, CEO The Southeast Alaska Power Agency Enclosure: Two (2) Hard Copies of SEAPA Phase I Wind Site Reconnaissance Study Grant Application with Attachments and one (1) Flash Drive with Grant Application and Attachments in pdf format cc: File (w/copy of attachments) Y:2011 CORRESPONDENCE12011 0823 Letter to Butch White re Wind App for SEAPA Corddor.dou j�-ALASKA Renewable Energy Fund Round 5 ENERGY AUTHORITY 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.akenergVauthoritV.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 16 7/1/2011 /46W`F.1 ALASKA ENERGY AUTHORITY Renewable Energy Fund Grant Application Round 5 SECTION 1 - APPLICANT INFORMATION Name (Name of utility, IPP, or govemment entity submitting proposal) The Southeast Alaska Power Agency ("SEAPA") Type of Entity: Joint Action Agency Fiscal Year End: June 30 Tax ID # 92-0174669 Tax Status: For -profit or _X—non-profit ( check one) Mailing Address Physical Address 1900 First Avenue, Suite 318 1900 First Avenue, Suite 318 Ketchikan, Alaska 99901 Ketchikan, Alaska 99901 Telephone Fax Email (907)228-2281 (907)225-2287 sthompson@seapahydro.org 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Title Dave Carlson Chief Executive Officer Mailing Address 1900 First Avenue, Suite 318, Ketchikan, Alaska 99901 Telephone Fax Email (907)228-2281 (907)225-2287 dcarlson@seapahydro.org 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) 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); 1.2.2. Attached to this application is formal approval and endorsement for its project by Yes 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 ) 1.2.3. As an 'applicant, we have administrative and financial management systems and Yes follow procurement standards that comply with the standards set forth in the grant agreement. 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached Yes 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 16 7/11/2011 Z' "ALASKA Renewable Energy Fund OW-:) ENERGY AUTHORITY Grant Application Round 5 Type in your answer here and fallow same format for rest of 'the application. Location — latitude and longitude or street address or community / communities served: The proposed Project will take place along transmission line paths owned Southeast Alaska Power Agency, which extend from the City of Ketchikan, Alas located on the western coast of Revillagigedo Island, near the southernmo k boundary of Alaska, to the City of Petersburg, located on the north end of Mit Island in Southeast Alaska. 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type X Wind Biomass or Biofuels Hydro, including run of river Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas Heat Recovery from existing sources Hydrokinetic Solar Storage of Renewable Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check an that apply) X Reconnaissance Design and Permitting Feasibility Construction and Commissioning Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. The Southeast Alaska Power Agency ("SEAPA") requests funding of $72,630 from Roun, V of the Renewable Energy Fund, with a matching contribution from SEAPA of $8,070 fo a total cost of $80,700, for a Phase I (reconnaissance) wind site assessment alon transmission line paths owned by Southeast Alaska Power Agency, which extend fro the City of Ketchikan, Alaska, located on the western coast of Revillagigedo Island, nea the southernmost boundary of Alaska, to the City of Petersburg, located on the north en of Mitkof Island in Southeast Alaska. AEA1 2-001 Grant Application Page 3 of 16 7/1/12011 DORI Renewable Energy Fund O�~IALASKA EwERG,AUTHORITY Grant Application Round 5 The project seeks funding for analyzing the raw wind data and preparing a wind assessment report. Based on the wind assessment results/report, a subsequenl proposal may be submitted for a Phase 11 feasibility analysis and conceptual design. The study will also analyze the potential impacts to existing and migrating avian species. The study is proposed to determine if it is feasible to use wind power to supplement the energy needs and conserve water used for hydropower for the communities serviced by SEAPA, which include Ketchikan, Petersburg, and Wrangell, with the long-term objective and goal of serving the power needs of additional communities, including Kake. 2.5 PROJECT BENEFIT Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel costs, lower energy costs, etc.) The proposed project will provide the information required to carry out the next steps of a wind turbine project to determine whether the wind resources are suited for integration into SEAPA's existing transmission system to provide supplemental power and conserve water used for hydropower generation for the communities of Ketchikan, Petersburg, and Wrangell. SEAPA recognizes that additional interties may be built to serve communities, including Kake and Metlakatla, and additional generation resources will be required to serve those loads. This is a feasibility study to determine if viable wind resources are present along the existing SEAPA transmission corridor. If wind resources are determined by the study to be adequate and at locations where the construction and maintenance of wind turbines are feasible. Wind generation will complement existing hydro and offset diesel generation. A key benefit of this project is increasing awareness for residents of the communities currently being served, and future communities that may be served, with a greater understanding of whether wind generation can play a role in providing renewable energy within the SEAPA region and to what extent this role could be. The project will support vital community resources by lowering the consumption ot diesel when existing hydropower cannot meet demand, while increasing energy efficiency, and building local capacity by informing residents on renewable energy practices. The overriding goal is to minimize the use of diesel generation to the maximum extent possible. The project may also provide the State of Alaska with cumulative beneficial impacts through the economic effects of the study and the wind resource information obtained from it for the Southeast Alaska area. 2.6 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the project. The total cost of this wind site assessment is projected to be $80,700, of which $72,630 is requested in grant funds from the AEA, with the remaining $8,070 (10%) matched by a contribution from SEAPA. 2.7 COST AND BENEFIT SUMARY Include a summary of grant request and your project's total costs and benefits below. Grant Costs AEA12-001Grant Application Page 4of10 711//2011 / "ALASKA �4NL-) ENERGY AUTHORITY Renewable Energy Fund Grant Application Round 5 (Summary of funds requested) 2.7.1 Grant Funds Requested in this application. $72,630 2.7.2 Other Funds to be provided (Project match) $ 8,070 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $80,700 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 $80,700* including estimates through construction) 2.7.5 Estimated Direct Financial Benefit (Savings) $ (to be determined) 2.7.6 Other Public Benefit (If you can calculate the benefit in terms of $ (to be determined) dollars please provide that number here and explain how you calculated that number in your application (Section 5.) *Note: This grant application is for a reconnaissance study and therefore estimations of any future wind generation is inappropriate. Type in your answer here and follow same format for rest of the application. SEAPA would provide overall project management and oversight. To further support the SEAPA team in project delivery, wind resource, engineering, and environmental consultants would be selected. The bulk of the analysis effort and some of the project management at the task level will be provided by contractors. Eric Wolfe, a SEAPA employee and current Director of Special Projects, will be the Project Manager. Mr. Wolfe has 20+ years of utility engineering and management experience. Mr. Wolfe has advised utilities on: hydro turbine and hydroelectric plant sizing, lost revenue effects resulting from relicensing mgation, forward production and cost estimates, and system operations. Mr. Wolfe's resume is included with this application as Attachment A hereto. Once the grant has been awarded, it is anticipated that the project will take six (6) months to complete. SEAPA will issue an RFP for the contractor. We expect to issue the RFP as soon as possible following the award of the grant and select an appropriate contractor according to our procurement policies. The wind feasibility analysis will AEA1 2-001 Grant Application Page 5 of 16 7/1//2011 ALASM ENERGY AUTHORITY Renewable Energy Fund Grant Application Round 5 begin soon thereafter. A detailed schedule for the proposed work, based on finalization of award documents on or about August 1, 2012, is as more particularly described in the Project Milestones in Section 3.3 below, and is summarized as follows: Authorization to Proceed August 2012 Select Consultant/Contractors August 2012 Land use, permitting and environmental analysis 09101/12 to 11/30/12 Preliminary design analysis and cost 11/01/12 to 12/31112 Cost of energy and market analysis 11/01/12 to 12131/12 Simple economic analysis 11/01/12 to 12/31/12 Final report and recommendations 12/01112 to 01131113 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.) Reimbursable tasks include establishment of avian monitoring needs for the area as suggested by the U.S. Fish and Wildlife Service. Reimbursable tasks include preliminary site visit(s), contract for wind data analysis, FAA approval of met tower on selected sites and begin avian species 4. Preliminary Design Analysis and Cost (11101/12— 12/31/12) Reimbursable tasks include utilization of the wind resource report to identi optimal wind turbines and configuration. I 5. Cost of Energy and Market Analysis (11/01112-12/31/12) Reimbursable tasks include the assessment of cost of energy for current and predicted usage. 6. Simple Economic Analysis (11101112-12/31/12) Reimbursable tasks include the comparison of current vs. the predicted price 7. Final Report and Recommendation (12/01/12-01131113) Reimbursable tasks include the preparation of wind resource report, ani presentation to the communities with options for development and solicitation input from communities. 3.5 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 contractors and the selection AEA12-001Grant Application Page 8of18 7U//2011 Renovvob|eEnergy Fund °��' EwERG,AUTHORITY Grant Application Round 5 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 The primary personnel of this project will be consultants with previous wind power experience, who have successfully designed and constructed wind turbines throughout rural Alaska. SEAPA staff will team up with these cons u Ita nts/contractors to see the project through to completion. Whenever selecting consulting services, contractors, and equipment vendors, SEAPA will emphasize the use of local contractors whenever P�- Dave Carlson, Chief Executive Officer, would act as Project Executive and wPJ maintain ultimate authority programmatically and financially. Eric Wolfe, Director of Special Projects, would lead the project management team consisting of SEAPA staff and consultants/contractors. Together with his team, Mr. Wolfe would provide coordination of the installation of the met tower, geotechnical work, conceptual design, and permitting. The group's resources include a project coordinator, contracts clerk, controller, and engineer. Mr. Wolfe would be responsible for reporting directly to AEA on the status of the project. Don Phillips, Operations Manager, would provide technical assistance and information on the existing power system and possible issues and project study Kay Key, Controller, would provide support in accounting, payables, financial reporting, and capitalization of assets in accordance with AEA guidelines. Sharon Thompson, Executive Assistant, would communicate with consultants/contractors and operate as the contracts clerk. Eric Wolfe would lead development of the Existing and Future Energy Costs and Markets Memorandum and the Conceptual Business and Operating Plan. Dave Carlson and Eric Wolfe would also communicate directly with Ketchikan, Wrangell, and Petersburg residents to ensure that the communities are informed. The Resumes of Dave Carlson and Don Phillips are included with this application as Attachment A hereto. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. SEAPA would require that monthly written progress reports be provided with each invoice submitted from consultants/contractors. The progress reports would include a summary of tasks completed, issues or problems experienced, upcoming tasks, and the cons u ltant's/contractor's needs from SEAPA. Project progress reports would be collected and forwarded as one package to the AEA project manager each month. It is anticipated that quarterly face-to-face meetings would occur between SEAPA and the AEA to discuss the status of all wind projects funded through the AEA Renewable Energy Grants Program. Individual project meetings would be held, as required or requested by the AEA. 3.6 Project Risk Discuss potential problems and how you would address them. AEA12'OO1Grant Application Page 7of18 7/1 H2011 Renewable Energy Fund ��—~='EwERG,AUTHORITY Grant Application Round 5 Remote areas in Southeast Alaska may present problems in project logistics and construction. Adverse weather could also cause project delays; however, an experienced contractor, familiar with Alaskan weather conditions, would be selected. Good team planning and reliance on local knowledge about conditions along SEAPA's transmission line would help to mitigate any risks. Any environmental permitting issues would be mitigated by hiring an environmental consultant familiar with permitting wind projects in Alaska. Early consulting with agencies would occur in order to flesh out location, natural, and social environment, avian concerns including specific species, and mitigation issues. The contractor would work openly with the agencies and conduct studies as appropriate. An avian study would be conducted to determine if there are any endangered species in areas to be considered. The U.S. Fish and Wildlife Service would be consulted about any avian and environmental concerns. For a wind project to be successful there is a clear need to ensure that an adequate wind resource is available. Indicators of success include the use of reliable turbines, a high wind class, and favorable environmental conditions. It is critical to have a full and detailed wind site assessment to determine whether a strong wind resource is available to produce a high capacity factor to meet expectations. The windy, rainy climate of Southeast Alaska is strongly influenced by the Pacific Ocean and coastal mountains. It is prudent to conduct a wind assessment in the proposed areas to flesh out untapped wind resources that have not been previously studied. The quality of the wind resource will be analyzed to ensure that it is compatible with wind generation While wind resources in Southeast Alaska that are conducive to generation may or may not be present, the synergistic relationship of wind generation with existing hydro is enticing. Hydro can pick up the load when wind falters and the wind energy contributes by allowing the hydro plants to conserve water by not operating when wind energy is available. Kodiak Electric Association has recently installed wind turbines to supplement their existing hydro from Terror Lake and this project has been remarkably successful. While development of wind and hydro are ongoing, another plausible source of energy /MwV�" ALASKA ME-,-D ENERGY AUTHORITY Renewable Energy Fund As discussed in the AEA's Renewable Energy Atlas of Alaska, significant utility -scale solar generation is unlikely in Alaska due to high capital costs and low annual solar power output. While biomass used for heating is an exciting and welcomed technology in the SEAPA region, the production of power from biomass is questionable due to a myriad of issues including environmental and supply-side concerns. A careful look at the biomass energy pros and cons reveals that it is far from the perfect energy source, but is still very promising as a replacement for the fossil fuels currently in use for heating. 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. JZ 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. Existing energy resources include the Swan Lake and Tyee Lake Hydroelectric Projects, both of which are owned by SEAPA. With the completion of the Swan-Tyee Intertie, Ketchikan, Wrangell, and Petersburg are all interconnected with a SEAPA-owned transmission system. Swan Lake and Tyee Lake are both 20 MW projects and power from those projects is delivered to the three cities pursuant to a Long -Term Power Sales KPU owns and operates Ketchikan Lakes Hydro Project, and Beaver Falls piydro Project (which includes Silvis Lakes). Ketchikan's total hydro capacity is approximately 12 megawatts (MW). KPU maintains four peaking/standby diesel generators at Bailey ALASKA Renewable Energy Fund ENERGY AUTHORITY Grant Application Round 5 Powerhouse totaling 24 MW, and two other diesel generators at the North Point Aiggins Substation totaling 3.2 MW. The diesel generators provide power to the community in times of low reservoir levels, hydro maintenance periods, and for emergency use during outages. In addon, Petersburg owns the Blind Slough hydro project, which is a 1.8 MW facility. Wrangell and Petersburg also have back-up diesel generation plants. The anticipated effect of wind power would be less usage of diesel fuel for electrical power generation during energy and capacity • 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Rates and Agreements: As stated above, SEAPA owns the Tyee and Swan Lake Hydroelectric Projects, as well as transmission lines • the cities of Petersburg, Wrangell, and Ketchikan. Energy is sold to the communities pursuant to a power sales agreement. Total energy capacity • hydro resources within the region is very close to being fully subscribed and Ketchikan has had to use diesel generation to supplement existing hydro, availability. The cost of wind generation is unknown at this point and will be determined in this study. While SEAPA • its member utilities are currently exploring the development of new hydro resources, wind may provide an additional renewable resource at a price competitive with new hydro. 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 Renewable Energy Technology: Wind because of its synergistic value with hydro, is a viable option for the SEAPA region which needs to be fully explored. Once it is determined if there are sites at which wind power can be economically developed, additional studies will be undertaken to determine the type of turbines to be installed. •1.161MVIFTO MIN sire The purpose of soliciting grant funds is to gather background information and feasibility to plan a future alternative energy facility. Anticipated capacity and generation would be examined for a number of turbine types to determine the best option for the communities • • SEAPA. AEA1 2-001 Grant Application Page 10 of 16 7/1//2011 Renewable Energy Fund ALASKA fENERGY AUTHORITY Grant Application Round 5 Anticipated Barriers: The potential barriers to success of this project include weather, permitting, access, and new transmission infrastructure. Weather is a minor barrier and does not pose a threat to completion of this project. Permitting, based on an initial investigation, does not appear to be a significant hurdle to completing this project, although the Roadless Rule on USFS lands could be an obstacle. Site control should not be difficult to obtain with support of the Cities of Ketchikan, Wrangell, and Petersburg. Basic Integration Concept/Delivery Methods. The wind turbines would need to interconnect with the existing power grid. Ideally, potential wind sites need to be located as close as possible to existing transmission infrastructure. If it is determined that wind energy can be developed, SEAPA will proceed with a proposal for a Phase 11 feasibility analysis and conceptual design. 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 project team, or a retained consultant, will obtain authorizations from all applicable agencies for any use of land or resources for wind site assessment activities. In addition, a permitting plan will be addressed as a result of the study. SEAPA will follow thZ analysis as it progresses so that any permitting issues can be pursued in a timely manner, and in order not to delay further progress on the project. AEA12{01 Grant Application Pago11 of10 7U6/2011 /&�ALASKA Gft._� ENERGY AUTHORITY Renewable Energy Fund be developed to utilize wind energy. irhis Phase I reconnaissance is projected to be $80,700. The source of the cost data is applicant's records and analysis. O&M costs will be developed during follow-up feasibility studies if it is determined from the wind site assessment that there are areas that can be developed to utilize wind energy. SEAPA will pay for these costs, which will be included in the blended Wholesale Power Rate. ALASKA 4111 ENERGY AUTHORITY Renewable Energy Fund Grant Application Round 5 SEAPA sets a Wholesale Power Rate (WPR) each year, which is the rate its member utilities pay for SEAPA-delivered energy. Any wind energy developed would be blended into the overall SEAPA resource generation portfolio. Download the form, complete it, and submit it as an attachment. Document any conditions or sources your numbers are based on here. • Annual Fuel Displacement: This is • a feasibility study to •- if adequate wind resources are present within the SEAPA region. Detailed analysis of fossil fuel • diesel generation displacement will •- determined if this initial study produces positive results. The primary goal of SEAPA and the region is to use renewable resources, including hydro and wind, to the maximum extent possible and reduce diesel generation to the lowest extent possible. Anticipated Annual Revenue: Because this project is in the wind site assessment stage, revenue and incentives are • Non -economic Public Benefits: The anticipated benefits of installing wind turbines would be providing a renewable energy alternative, decreased pollution from fossil fuel use, pilot project for other communities in the Southeast Alaska area, and understanding of the wind resource in Southeast Alaska. Data acquired from this study could assist other Southeast Alaska communities understand their potential resource. AEA1 2-001 Grant Application Page 13 of 16 7/1//2011 Renewable Energy Fund l^w=' ENERGY AUTHORITY Grant Application Round SEAPA through its retained consultants, has the capacity to operate a potential wirC* turbine project, and is completely able to finance, operate, and maintain it for the desill Proposed Business Plan Structures and Concepts: The wind turbines would be incorporated into SEAPA's power plant operations. Local plant operators provide daily servicing. SEAPA retains contractors or consultants as needed to provide periodic preventative or corrective maintenance and are supported by SEAPA staff. Operational Issues Which Could Arise: Operations could be impacted by weather or local wildlife. Any obstacles would be resolved through all available resources. Operating Costs: Operating costs would be determined once the turbine best suited for this project is identified. Commitment to Reporting Savings and Benefits: SEAPA is fully committed to sharing thz savings and benefits accrued from this project information with its Board of Directors, member communities, and the AEA. SEAPA would seek cons u Itants/contractors to perform the reconnaissance before winter. Work will include analysis of the current cost of energy and future market and economic and financial analysis. Based on the wind assessment results/report, a subsequent proposal may be submitted for a Phase 11 feasibility analysis and conceptual design. AEA12'UO1Grant Application Page 14of1O 7/1//2011 ALASKA Wr&r--) ENERGY AUTHORITY Renewable Energy Fund Grant Application Round 5 SEAPA held a meeting with its board of directors on August 18, 2011. The board of directors signed a Resolution authorizing this grant request. The Resolution and Minutes of the meeting are included in the attachments to this application. The communities of Ketchikan, Wrangell, and Petersburg, and the Ketchikan Gateway Borough are very committed to moving this project forward with their full support. Letters of support for this project are included with this application as Attachment D Provide a narrative summary regarding funding sources and your financial commitment to SEAPA plans to conduct a Phase I reconnaissance to assess the possibility of utilizing wind power along SEAPA's transmission line, which extends from the City of Ketchikan, Alaska located on the western coast of Revillagigedo Island, near the southernmost Southeast Alaska. The Phase I reconnaissance is estimated to cost $80,700 of which $72,630 is requested from AEA with a 10% match of an $8,070 contribution from SEAPA. A detail of the grant budget is as follows: Milestone or Task Grant Funds SEAPA Match TOTALS solicitation analysis environmental analysis and cost 5. Cost of energy and market $2,600 $2,600 analysis Recommendations AEA12-001Grant Application Page 15of1S 7/1/12011 1401U�2:D ; ALASKA 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 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 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 Dave Carlson Signature k-1---1 Title Chief Executive Officer Date August -13 , 2011 AEA12-001 Grant Application Page 16 of 16 7/1//2011 S E A PA Southeast Alaska Power Agency RENEWABLE ENERGY FUND GRANT - ROUND V LIST OF ATTACHMENTS A. RESUMES B. GRANT BUDGET FORM AND SCHEDULE C. COST WORKSHEET D. LETTERS DEMONSTRATING LOCAL SUPPORT E. ELECTRONIC VERSION OF ENTIRE APPLICATION F. GOVERNING BODY RESOLUTION NO. 2011-39 AND MINUTES G. GRANT DOCUMENTS AUTHORIZED SIGNERS FORM m 16' J 0 0 0 o O o 0 O O O O O O O r t0 Lrj IQ CO dt CO N 0) LO M N r C4 64 64 69 64 69 64 64 V) w C C N O O C6 m m U U U 0 0 0 0 O O & O LQ 64 64 09 .............. ! 64 64 64 64 O O N 10 QO O O 00 O O O e cc O O O 64 Ef} 64 4f} f!3 la � '. ta � 64 ffl b4 ffl H) � O O O O O O O O Cl) L CO O C9 N N CO CO N 64 ��N� � 64 � co � 61) O O r r M_ co co co coM M O r r i N O U (n U N � C O O Q Q O _ N (� to v Ntn O O to a U > o o c o a c Q O to Q � vOi - tn A _ U y a) E Q C m � O N N O N ,0 O fo N OQ U o � c Q rr 0) cz N U 4_ •� i (B U "O O 41 0? O o O� 00 O m y U O W WCL to N Q N _ y� O y N N N p flS C cn n -j U to I ii cn N CO 06 o N 0 a Cd O IL c Eco a) O W co � °u Ln T coO 5 CD N U � � U U N U co C O U C O � H Q� U C to N O co C C O U N N to Q U O O Q. U (o N i O �r Cam' Q 0 70 -0 C O U m C Cn a) 0) O Q. Cn Co �O O O +� CO -0 M Q _0 M /669V ALASKA Renewable Energy Fund Round 5 GO--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. Unknown — reconnaissance study. 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/boilers/other 7 hydro; 6 diesel KPU ii. Rated capacity of generators/boilers/other 1 hydro; 3 diesel Petersburg iii. Generator/boilers/other type 4 hydro; 0 diesel SEAPA iv. Age of generators/boilers/other 0 hydro; 4 diesel Wrangell v. Efficiency of generators/boilers/other 41 MW; 43 MW TOTAL b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor .02 ($/kWh) ii. Annual O&M cost for non -labor .035 ($/kWh) 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] 250,606,000 kWh ii. Fuel usage Diesel [gal] 2,666,000 based on average hydro inflows and 2014 loads Other iii. Peak Load 30.3 MW iv. Average Load v. Minimum Load vi. Efficiency .86 water — wire hydro 15 kWh/gal. diesel vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] N/A ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. RFA AEA12-001 Application Cost Worksheet Page 1 7-1-11 &EDALASKA AUTHORITY ProjectCost/Benefit Worksheel 3. Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) N/A— Reconnaissance Study N/A — Reconnaissance Study N/A — Reconnaissance Study N/A — Reconnaissance Study RFA AEA12-001 Application Cost Worksheet Page 2 7-1-11 Mr. Butch White Grants Administrator Alaska Energy Authority Anchorage, Alaska 99503 In light of the many benefits that could be realized if it is determined that wind -nergy is feasible for these areas, the City of Ketchikan strongly supports SEAPA's efforts to conduct wind studies and also supports the engineering efforts necessary to ensure that the future intertie to Kake neither compromises nor degrades SEAPA's current delivery of power to Ketchikan and other SEAPA communities. 98=1 M Lew Williams, Mayor August 22, 2011 Mr. Butch White Grants Administrator Alaska Energy Authority 813 West Northern Lights Boulevard Anchorage, Alaska 99503 OFFICE OF THE BOROUGH MANAGER Letter of Support for Renewable Energy Fund Grant (Round V) SEAPA Wind Resource Assessment and Economic Feasibility Studies and Kake-Petersburg Intertie Engineering Study Dear Butch: I am writing to you on behalf of the Ketchikan Gateway Borough. It is my understanding that the Southeast Alaska Power Agency ("SEAPA") is preparing grant applications to study the feasibility of wind power in the Ketchikan/Gravina Island area, study wind feasibility along the entire SEAPA transmission corridor, and conduct an engineering study concerning the planned Kake intertie. The latter is intended to identify required equipment or devices that will be necessary on the existing SEAPA transmission path to ensure that the delivery of power to Ketchikan and other SEAPA communities is neither compromised nor degraded with the planned intertie to Kake. In light of the many benefits that could be realized if it is determined that wind energy is feasible for these areas, the Ketchikan Gateway Borough strongly supports SEAPA's efforts to conduct wind studies and also supports the engineering efforts necessary to ensure that the future intertie to Kake neither compromises nor degrades SEAPA's current delivery of power to Ketchikan and other SEAPA communities. Sincerely, Dan Bockhorst, Borough Manager Ketchikan Gateway Borough 7-0 nV& _­MDAUCVU tF7Z August 19, 2_01 I Mr. Butch White Grants Administrator Alaska Energy Authority 813 West Northern Lights Boulevard Anchorage, Alaska 99503 CITY AND BOROUGH OF WRANGELL INCORPORA TED MAY 30,2008 P.O. BOX 531. (907)-874-2381 Wrangell, AK99929 FAX(907)-874-39z')2 R'r'-_-. Letter of Support for Renewable Energy Fund Grant (Round V) SEAPA Wind Resource Assessment and Economic Feasibility Studies and Kake-Petersbura Intertie Engineering Study Dear Mr. White: I am writing to you on behalf of the City and Borough of Wrangell. It is my understanding that The Southeast Alaska Power Agency ("SEAPA") is preparing grant applications to study the feasibility of wind power in the Ketchikan/Gravina Island area, study wind feasibility along the entire SEAPA transmission corridor, and also conduct an engineering study to identify required equipment or devices that will be necessary on the existing SEAPA transmission path to ensure that the delivery of power to Wrangell and other SEAPA communities is neither compromised nor degraded with the planned intertie to Kake. In light of the many benefits that could be realized if it is determined that wind energy is feasible for these areas, the City and Borough of Wrangell strongly supports SEAPA's efforts to conduct wind studies and also supports the engineering efforts necessary to ensure that the future intertie to Kake neither compromises nor degrades SEAPA's current delivery of power to Wrangell and other SEAPA communities. If you have any questions, please do not hesitate to contact me at (907) 874-2381. f Sincerely, Qi"5,13,ofough of Wrangell '•; • i �'' � '• r RESOLUTION1' 1 WHEREAS, Southeast Alaska Power Agency is a Joint Action Agency organized pursuant to State Statute; and, WHEREAS, Southeast Alaska Power Agency owns the Tyee Lake and Swan Lake Hydroelectric Projects in Southeast Alaska, which provides renewable hydroelectric power to Ketchikan, Wrangell, and Petersburg; and, WHEREAS, Southeast Alaska Power Agency recognizes that additional renewable resources will be needed in the future to meet loads in Petersburg, Wrangell, and Ketchikan; and, WHEREAS, Southeast Alaska Power Agency recognizes that wind power is a renewable resource and desires to determine the feasibility of utilizing wind turbines to supplement existing hydro resources that provide power and energy to the communities of Ketchikan, Petersburg, and Wrangell, and, WHEREAS, Southeast Alaska Power Agency also recognizes that additional interties may be built to serve communities, including Kake and Metlakatla, and additional generation resources may also be required to serve those loads, and WHEREAS, Southeast Alaska Power Agency recognizes that the proposed inter- connection to Kake will require an electrical engineering inter -connection study that recommends steps to be taken to ensure the delivery of power to existing customers is not degraded nor compromised; and WHEREAS, Southeast Alaska Power Agency is in compliance with all federal, state, and local laws including credit and federal tax obligations; # IRMMM#� RESOLVED, that the Southeast Alaska Power Agency Board of Directo approves the application for project funding from Round V of the Alaska Ener il Authority Renewable Energy Grant Program in the amount of J§Q,700 of which the Southeast Alaska Power Agency will provide a 10% match offor Phase I (Reconnaissance) of a Wind Study, for all areas from the Bailey Power Plant to Petersburg; and, RESOLVED, that the Southeast Alaska Power Agency Board of Directors approves the application for project funding from Round V of the Alaska Energy Authority Renewable Energy Grant Program in the amount of $70,000 of which the Southeast Alaska Power Agency will provide a 15% match of $11,700 for an electrical engineering inter -connection study for the proposed inter -connection to Kake; and, RESOLVED, that the Southeast Alaska Power Agency Board of Directors authorizes Dave Carlson, its Chief Executive Officer, to sign the three grant applications deocribed h4rein, and to commit SEAPA to the obligations under the arants, and further -A R auMorUze-S I ave Uan-Son as Me F111-If oF contaut to i3prestil it 3.-K-*r^ You MPUSIFU U-0— grants. PASSED AND APPROVED by a duly constituted quorum of the Southeast Alaska Power Agency this I el�L' day of August, 2011. �-14IM-1WIA:M ff-IAM If.1111 r!"nEME1=-T- Southeast Alaska Power Agency SOUTHEAST ALASKA POWER AGENCY BOARD MEETING MINUTES (AUGUST 18,2011) 900 'IT 51 Avenu-e, S;.iite 3 -1, 8 Y,etcilkan, Alassica 99f90-1 P�r (9OTj 2281 * Fax: (!911171) 2225�242�57 www�sepapahvdfc.Oig' Approval of Resolution to submit three (3) AEA Renewabqe Grant Appheations for Wind Studies and ERectrical-Engineering Inter -Connection Study for Proposed Inter -Connection to Kake; authorization for CEO to sign grant applications, commit to obligations, and establishing point of contact. 7 A Al "04 MOVED ,SECOND (ANAL VOTE: AYES: MAYS: Richard Coose Amy tx-wfa.-n�� Mike Kline Charles Freeman L__ Jeremy Maxand Joe Nelson Grant Documents Authorized Signers Please clearly print or type all sections of this form. Community/Grantee Name: Southeast Alaska Power Agency ("SEAPA") Regular Election is held: See attached paragraph 1.2 of SEAPA's Bylaws. Date: Annually each February Authorized Grant Siqner(s): Printed Name Title Term Signature Dave Carlson Chief Executive Officer unlimited I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term SignatAe Charles Freeman Chairman of the Board 1 year Grantee Contact Information: Mailing Address: 1900 First Avenue, Suite 318 Ketchikan, Alaska 99901 Phone Number: 907/228-2281 Fax Number: 907/225-2287 E-mail Address: dcarlson@seapahydro.org Fiscal Year End: June 30 Entity Type (For -profit or non-profit status): Joint Action Agency (non-profit) Federal Tax ID #: 92-0174669 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 Y:\GRANT APPLICATIONS - ROUND V\Authorized Signers Form.docx /IIIIIIIIIIIED ENERGY AUTHORITY BYLAWS OF THE SOUTHEAST ALASKA POWER AGENCY ARTICLE 1 Gify.vt0v 1.1 Duties and Voting Requirements. All powers of the Southeast Alaska Power Agency (the "Agency) shall be exercised by or under the authority of the Board of Directors and the business and affairs of the Agency, including all matters related to the Long Term Power Sales Agreement between the Agency and the Member Utilities, as defined therein, shall be managed by or under the direction of the Board of Directors. Except as otherwise provided, the Board shall make decisions by majority vote of all of its Directors. 1.2 Appointment and Term of Office. The Agency shall have a total of five Directors. Each Project shall be represented by two Directors. The Tyee Lake Project shall be represented by one Director, and one alternate from Petersburg and one Director, and one alternate from Wrangell. The Swan Lake Project shall be represented by two Directors and two alternates from Ketchikan. Each Member Utility shall notify all other Member Utilities in writing of its designated Director and alternate to the Board. Directors and alternates shall serve for a one-year term commencing on January 1 and ending on December 31 of each calendar year, provided that a Director or an alternate to the Board shall continue to serve until his or her successor is appointed. The fifth Director and one alternate shall be selected and approved, on an alternating annual basis, between the two Projects. When the Swan Lake Project is to select the fifth Director, the Member Utility from Ketchikan shall make the selection. In the year that the Tyee Lake Project is to select the fifth Director, the selection shall alternate between the Member Utilities of Petersburg and Wrangell.' The selection of the initial fifth Director shall be determined randomly in a manner unanimously agreed upon by the Member Utilities. In the event the Member Utility from Ketchikan, on behalf of the Swan Lake Project, is randomly determined to select the initial fifth Director, there shall be a second random selection between Wrangell and Petersburg to determine which Member Utility will select the initial fifth Director to represent the Tyee Lake Project. The fifth Director may serve one or more additional terms, with the consent of all Directors from each Project. Such a selection shall not alter the alternation of the selection of the fifth Director. I Byway of example only, if Ketchikan selected the fifth Director in Year I (representing Swan Lake Project), in Year 2 Petersburg would select the fifth Director (representing the Tyee Lake Project). In Year 3 Ketchikan would select the fifth Director (representing Swan Lake). In Year 4 Wrangell would select the fifth Director (representing the Tyee Lake Project). Page 1 — BYLAWS OF SOUTHEAST ALASKA POWER AGENCY