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HomeMy WebLinkAboutPelican Hydro REF Grant Application4 Renewable Energy Fund Round IV Grant Application AEA 11-005 Application Page 1 of 19 7/21/2010 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/RE_Fund-IV.html Grant Application Form GrantApp4.doc Application form in MS Word that includes an outline of 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 Worksheet Costworksheet4.doc Summary of Cost information that should be addressed by applicants in preparing their application. Grant Budget Form GrantBudget4.doc A detailed grant budget that includes a breakdown of costs by milestone and a summary of funds available and requested to complete the work for which funds are being requested. Grant Budget Form Instructions GrantBudgetInstructions4.pdf Instructions for completing the above grant budget form. • 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. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 2 of 19 7/21/2010 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) City of Pelican Type of Entity: Local Government Mailing Address P.O. Box 737, Pelican, AK 99832 Physical Address Pelican, Alaska Telephone (907) 735-2202 Fax (907) 735-2258 Email mayor@pelicancity.net 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Patricia Phillips Title Mayor of Pelican Mailing Address P.O. Box 737, Pelican, AK 99832 Telephone (907) 735-2202 Fax (907) 735-2258 Email mayor@pelicancity.net 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 X A local government, or -- A governmental entity (which includes tribal councils and housing authorities); Yes 1.2.2. Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate Yes or No in the box ) Yes 1.2.3. As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. Yes 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) Yes 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 3 of 19 7/21/2010 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) Pelican Hydroelectric Upgrade Project 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. The target area for this project is Pelican, Alaska 99832, a small remote coastal fishing community located on Northwest Chichagof Island, on the eastern shore of Lisianski Inlet, near Cross Sound, in northern Southeast Alaska. Pelican is approximately 100 miles west of Juneau, Alaska. The population of Pelican was reported to be 163 in the 2000 U.S. census. 2.3 PROJECT TYPE Put X 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. The City of Pelican proposes to complete the renovation and upgrade of the existing community hydroelectric project to replace the current failing, obsolete, inefficient and unsafe facility, and to expand the use of underutilized available hydroelectric power to meet unserved electric needs in the community. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 4 of 19 7/21/2010 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 completed project will fully implement a six-year energy infrastructure upgrade project within the community of Pelican. The project will renovate the hydroelectric facility to like-new condition and is designed to complement and integrate with our new state-of-the-art diesel electric power plant. The project will fully refurbish existing hydro turbine and generation equipment, replace the dilapidated and failed wooden flume and penstock, provide monitoring and control for improved efficiency and reliability, and provide surplus hydroelectric power for heating local school facilities. The renovated facility will reduce operating and maintenance costs and meet the long-term electric power needs of Pelican. Reliable hydropower will also support the use of smaller, more efficient diesel generators to augment the hydroelectric capacity, which will provide improved fuel efficiencies over operating a larger diesel genset. The high cost of energy in rural Alaska is among the most significant obstacles to community sustainability. Providing reliable, lower cost and efficient hydro energy will benefit residential and commercial customers of Hoonah. Benefits to Alaskan public Additional benefits include the development of an emission-less renewable energy resource and a reduction in carbon footprint, as well as local economic development during the construction phase of the project. 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 City of Pelican requests $1,896,836 in REF funding. The total estimated cost of design, permitting, construction, development and testing is $5,520,836. The City of Pelican commits to this project Match of $3,624,000 from Denali Commission federal funding (refer to Section 3.3 and Appendix C). This Renewable Energy Fund grant will fund completion of Phase IV Construction. 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. $1,896,836 2.7.2 Other Funds to be provided (Project match) $3,624,000 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $5,520,836 Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 5 of 19 7/21/2010 Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.4 Total Project Cost (Summary from Cost Worksheet including estimates through construction) $5,520,836 2.7.5 Estimated Direct Financial Benefit (Savings) $225,000 / year (fuel svgs) 2.7.6 Other Public Benefit (If you can calculate the benefit in terms of dollars please provide that number here and explain how you calculated that number in your application (Section 5.) $ For estimated project costs and benefits refer to Appendix F – Technical Data): 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. AEA has provided management assistance for the recently completed City of Pelican BFU and RPSU projects, and the first phase of the hydroelectric upgrade project. The City of Pelican requests AEA continue to provide management assistance through completion of Phase IV Construction. The City of Pelican will be the single point of contact and will execute all grant documents with AEA. AE&E has provided design and permitting services, and will continue to provide system integration and construction support. CE2 Engineers has managed construction of the prior BFU and RPSU projects, and has been selected by AEA to serve as the Construction Manager for the completion of Phase IV - Construction. Patricia Phillips, Mayor of Pelican, is the Grant Manager. She is the single point of contact with AEA and will execute all grant and administrative responsibilities. Ms. Phillips has 18 years of experience as a school board and council member. She is skilled in grant and project administration, budgeting, community involvement and interaction with various civic and community organizations. Steven J. Stassel, P.E., AE&E president, will serve as the Project Manager. He will work with the Grant Manager to commit essential engineering disciplines to ensure a successful project. He will establish specific man hour and reimbursable budgets, and schedule the necessary technical staff. He will track specific contractual deliverables against the schedule to ensure adequate resources are available to meet critical milestones. He will analyze all relevant issues such as available shipping options, permitting and site control issues, and procurement requirements. Drawing on the expertise of our team, he will assign specific project tasks to responsible team members. Mr. Stassel will oversee all technical work and coordinate the efforts of our team to ensure the efficient and cost effective production of project designs. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 6 of 19 7/21/2010 Brian Aklin, CE2 Engineers President, will serve as the project Construction Manager. He has managed force account construction for tens of millions of dollars of power generation, sanitation, bulk fuel, and road improvement projects throughout Alaska. Brian’s depth of construction management experience gives him a keen understanding of the unique challenges of construction in remote rural Alaska communities, a major factor in performing accurate constructability reviews. Mike West, CE2 Engineers, will serve as the Project Superintendent. He has managed the force account construction of the hydroelectric project in Pelican for the Alaska Energy Authority (AEA) 2009. Mike is responsible for field management, preparing and submitting daily reports, leading safety meetings, and tracking equipment usage, and assisting the City in hiring personnel and personnel training. He assists with procurement and logistics for the project, and will serve as the on-site quality control manager, to ensure work meets specifications. Mike provides regular progress updates to off-site project manager Brian Aklin. 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.) Refer to project schedule in Appendix F – Technical Data 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.) Final project design documents were issued August 2009. AEA selected CE2 Engineers to provide construction management of the project to provide seamless integration of the prior completed energy projects. Construction will continue to use a combination of force account and contracted services under the supervision of CE2’s on site superintendent. The blasting and civil work associated with this final phase of the project will be performed by a licensed and bonded blasting contractor under contract to CE2. The installation of the penstock, and remaining civil works will be performed by local labor under direction of CE2. AE&E will take a lead role in supporting the powerhouse and controls upgrades, including integration and testing of the completed system. Decommissioning of the existing systems will take place as they are replaced with new systems. Final acceptance, commissioning and startup is anticipated to occur approximately 6-months after blasting of the penstock bench begins. Pelican will provide ongoing monitoring and reporting of the project status in accordance with REF requirements. 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. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 7 of 19 7/21/2010 This project is the culmination of a six-year energy infrastructure upgrade project managed by the Alaska Energy Authority on behalf of the City of Pelican. Alaska Energy and Engineering, Inc. has provided design and permitting services under its term contract with AEA. CE2 Engineers has provided construction management services for all phases of work, and has been selected by AEA under its term contract to provide CM services on this final phase of the project. All work will be in accordance with AEA policy and procedures for all materials purchase, and labor and contractual services. Refer to organization chart, below, and see resumes included in Appendix A Project Organization Chart 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. AEA is currently managing grant funds for this project under the direction of the AEA Project Manager. CE2 and AE&E communicate with the AEA Project Manager on a near daily basis. The Authority Project Manager is provided daily construction progress reports, in addition to regular updates on project status and budget. The AEA Project Manager will continue to provide progress reports on project status vs. schedule; project labor reports – including hours, rates and costs; and current project expenditures relative to budgeted project costs. AE&E and CE2 have successfully provided design and construction management services on AEA managed projects throughout Alaska over the past 15-years. Our team provides seamless channels of communication. 3.6 Project Risk Discuss potential problems and how you would address them. Risk of increased project cost – There is a risk of increased construction costs. This risk will be mitigated by carefully monitoring the progress of construction, ensuring that cost effective measures are implemented to hold costs down, and by having a detailed and thorough design that accurately reflects the scope of work. Grant Manager Patricia Phillips Mayor of Pelican Construction Manager Brian Aklin CE2 AEA Project Manager David Lockard Site Superintendent Mike West CE2 Project Manager Steve Stassel AE&E Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 8 of 19 7/21/2010 Risk of measurable environmental affects – A NEPA Project Level Environmental Review has been completed and a Finding of No Significant Impact determined. Measures are in place to mitigate no harm to the human environment. There are many elements of risk that arise in any rural Alaska construction project. Our highly competent team of professionals has the skills and motivation necessary to see this project through to successful completion. The City of Pelican seeks to realize the benefit of reduced diesel fuel consumption by utilizing a readily available renewable resource. SECTION 4 – PROJECT DESCRIPTION AND TASKS • Tell us what the project is and how you will meet the requirements outlined in Section 2 of the RFA. • The level of information will vary according to phase(s) of the project you propose to undertake with grant funds. • If you are applying for grant funding for more than one phase of a project provide a plan and grant budget form for completion of each phase. • If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. 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. The existing hydroelectric facility design capacity is 650 kW using a 550 kW Barber Francis turbine and a 100 kW Cornell pump. However, due to operational issues, the existing plant output has been limited to less than 600 kW. As part of this upgrade project, historical water flow values were evaluated for a comparable drainage in the vicinity of Pelican. The power capacity of these flows was then evaluated for the existing water conveyance system. It was determined that increasing the penstock size one pipe diameter will support increased flows with no appreciable change to the original design head loss. The result is that the upgraded hydro water conveyance system will provide sufficient flow for the hydro plant output to increase by about 15% (100 kW +/-). The hydroelectric system can provide 100% of Pelican’s present electric needs during periods of nominal water levels. Our new diesel power plant is designed to provide efficient generation backup when the hydro system is down for maintenance or during times of low water levels. Efficient utilization of our available hydroelectric resource is the most effective energy source available to the community of Pelican. 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 Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 9 of 19 7/21/2010 the number, size, age, efficiency, and type of generation. The existing hydroelectric project works was constructed starting in 1938 and commissioned in 1941. Upgrades and Renovations over the past 70-years have extended the useful life of the project, but significant components of the project are near or past their useful life and in dire need of replacement. Some portions of the system are still original construction while others have been replaced. The facility has a minimal storage dam and operates essentially as a run of the river system. The hydroelectric project consists of the following components: • Low height rock-filled timber crib dam that was rebuilt between 1996 and 2002 and is in good condition. • Concrete intake structure that is in marginal condition. • Timber construction open flume 727’ in length that is in poor condition. The flume is installed on timber trestles. The trestles are in poor condition. • Timber surge tank with screens in marginal condition. • Wood stave penstock 330’ in length that is in poor condition. • Powerhouse building that was rebuilt in 1982 and is in good condition. • A pair of turbine generators: 550kW Francis Turbine and 100kW Cornell pump. The water conveyance portion of the project (flume and penstock) is dilapidated and has failed. The existing wood-stave penstock is past its useful service life and is literally bandaged together with blue plastic tarps and plastic bags. 70-years of continual erosion of the interior of the wood staves has caused the interior lining of the penstock to fail and send chunks of penstock into the hydro turbine. During a major flood event in August 2009, sections of the existing trestle- supported flume failed and collapsed, putting the hydroelectric system out of service. Other major project components, including the turbine generator governor and controls are in need of replacement. The existing equipment is old and obsolete, and spare parts are unavailable and difficult to obtain, making maintenance and repairs difficult and expensive. 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. The two sources of energy used in Pelican are diesel fuel and hydropower. Diesel fuel is used for space heating and diesel power generation. Hydropower has historically provided the majority of the commercial and residential electric power needs in Pelican for 70-years. However, ever since the flume failed in August 2009, the hydroproject has been offline and all community power has been provided by diesel generation. The proposed project will reduce the cost of electricity in Pelican in many ways. First, replacement of the failed flume and penstock, in conjunction with other system upgrades, will put the hydro project back online and in service. The cost of electricity in Pelican has almost tripled since the hydroelectric project went down and we have had to rely 100% on diesel power. The Cost of Power Adjustment (COPA) for diesel generated electricity is $.248401/kWh. Once the hydro is back in operation, we will no longer incur the COPA charges, except during times of low water conditions. Even during low water conditions, our diesel consumption will be minimal due to improved controls and interface between our hydro plant and state of the art diesel power plant. Secondly, significant essential energy infrastructure improvements will be acquired without incurring substantial debt that would otherwise need to be recovered through our electric rate. Thirdly, using surplus electric hydropower for electric heat at the Pelican school will provide Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 10 of 19 7/21/2010 additional revenue to Pelican Utility District (PUD), helping to reduce our per kWh cost of electricity, and reducing the quantity of diesel heating fuel burned in our community. This project will solve current life, health, safety issues associated with the failed flume and failing penstock. Additional cost savings will also be realized by reducing downtime and costs incurred to maintain the existing antiquated hydro project system and equipment. Due to our remote location, without road access, the cost of flying a mechanic into Pelican from Juneau is a significant cost not encountered by utilities located on the road system. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Historically, the primary electric power source for Pelican has been hydroelectric generation. Over the past 12-months since the hydro project has been offline, the electric utility has used over 74,000-gallons of diesel fuel at a cost of nearly one-quarter of a million dollars. This additional cost of power has been passed on to the utility customers in the form of a Cost of Power Adjustment, which has increased the cost of power by almost $.25/kWh. This project will effectively eliminate the COPA charge and reduce the cost of power significantly. 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 Project Design The Pelican Hydroelectric Upgrade Project consists of: 1) installation of a new dam wing wall and intake structure; 2) replacement of the existing failed wooden flume and penstock with a new HDPE penstock; 3) renovation and rebuild of 2 turbines and generators --the Barber hydro turbine and a Cornell pump; 4) turbine governor replacement and installation of new instrumentation and controls in the existing hydro powerhouse; 5) installation of hydro powerhouse space heat and electric boiler(s) at the school to utilize excess hydroelectric power to displace diesel heating fuel use; and 6) communications upgrade for remote monitoring and control of the hydroelectric generators. The project will provide reliable and code compliant power generation that will benefit the entire community. Subject to availability of funds, construction is scheduled to be completed in 2011. The following project description provides a summary of the overall project. Refer to Appendix F for a detailed project scope, schedule and design drawings. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 11 of 19 7/21/2010 Dam Wing Wall and Intake Structure Construction of the intake structure and wing wall was completed during spring of 2010. This work replaced the original 1930’s intake structure and was implemented to facilitate interconnection to the new HDPE penstock and alleviate vortex issues at the intake. Vortexing at the dam impoundment has caused surface debris to be drawn into the water conveyance system, which adversely affects the hydro turbine operations and increases maintenance requirements. A trash rack with automatic traveling rake is included to further prevent surface debris from entering the new penstock. A low-level outlet (bypass) pipe is included for future reservoir maintenance and to comply with FERC licensing requirements for a fish water bypass. Wood Flume and Penstock Replacement The existing wooden trestle supported flume and woodstave penstock will be replaced with a new HDPE penstock. Use of a penstock in place of an open flume will increase the available head to the turbine, which will increase the power output capability of the existing turbine. Additionally, a fully closed water conveyance system will improve turbine reliability and operations, and decrease maintenance, by preventing leaves and sticks from entering the system. The new penstock will be installed mostly at grade on a bench created along the existing flume alignment, which improves constructability and long-term maintenance access, compared to the trestle-supported flume. Replacement of the failing lower woodstave penstock will remedy ongoing turbine maintenance issues caused by pieces of the failing penstock entering the turbine. Turbine and Generator Upgrade The renovation / rebuild portion of the turbine and generator upgrade has been completed. After the flume failed last fall, the turbine and generator were removed and shipped out for inspection and refurbishment. The turbine and generator are back onsite within the community and will be reinstalled under the next phase of this project. Turbine Governor Replacement and Controls Upgrade The existing governor is antiquated and inadequate to support integration with the new diesel power plant. Replacement parts for the existing governor are difficult to locate and expensive to replace. The existing governor will be replaced with a new electronic governor for improved operations and reliability. This will allow the new diesel generators and the newly refurbished hydro generator to be used in a more efficient manner to maximize the benefit from available hydro resources without jeopardizing the electrical power supply. Diesel electric generation will be required when water levels are low and to meet peak demands during periods of reduced hydro output. The net result will be improved power generation efficiency and a reduction in diesel consumption. The existing switchgear will be upgraded to support the new electronic turbine governor control and to monitor and control other plant functions including: reservoir level sensor; remote control of dam site video cameras, lights and trash rack; both hydroelectric generator breaker positions; the turbine main bearing lubrication and water cooling systems; remote electric boiler dispatch; and other required inputs. New transducers, sensors, limit switches; remote monitoring and protective devices will interface with the upgraded control system. These will include: 1) Rservoir (dam) level transducers; remote controlled cameras and area lights; and water temperature sensors; 2) Intake valve position and penstock pressure sensors; 3) Turbine bearing temperature sensors and oil bath level sensor; 4) Turbine bearing cooling water flow sensor, generator stator & bearing temperature sensors, and hydraulic pump system level and pressure sensors; and 5) Hydro power house remote cameras and lights Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 12 of 19 7/21/2010 Powerhouse and School Space Heat During refurbishment of the turbine generator and controls, significant deterioration was observed and attributed to excessive moisture in the powerhouse accumulated when the hydro system was shut down. This will be remedied by installation of an oil-fired space heater at the powerhouse to provide heat when hydroelectric power generation is off line. To improve utilization of wasted energy when water levels exceed community power demand, a dispatchable electric boiler will be installed at the Pelican School complex. This will facilitate use of excess hydroelectric power to displace diesel fuel used for space heating. On an annual basis there is more than three times as much energy available from this hydro resource as is currently required by the community. Some of this energy can be used for electric heating purposes to reduce the community’s reliance on stove oil. Diesel / Hydro Communications Upgrade Communication between the new diesel plant and the hydro plant will be provided via a new fiber optic communication link. A Figure 8, 6-pair fiber optic cable will be installed on existing overhead distribution system poles between the diesel power plant and the hydroelectric powerhouse. 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 Pelican Utility District has Land Use Permit #ADL 101771 from the State of Alaska which authorizes use of the land for hydroelectric purposes. 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 The hydroelectric upgrade project is subject to Regulations of both State and Federal agencies including the Alaska Coastal Management Program, the Division of Fire Prevention, and the U.S. Environmental Protection Agency, U.S. Fish and Wildlife Service, the U.S. Army Corps of Engineers, the State Historic Preservation Office, other divisions within the Alaska Department of Natural Resources, and EPA SWPPP discharge planning requirements. The hydroelectric facility operates under a license from the Federal Energy Regulatory Commission (FERC). All project related permitting, construction and environmental, is complete – refer to below section. 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 Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 13 of 19 7/21/2010 • Archaeological and historical resources • Land development constraints • Telecommunications interference • Aviation considerations • Visual, aesthetics impacts • Identify and discuss other potential barriers All NEPA and construction related project permitting is complete! The Pelican Hydroelectric Facility Upgrade Project will be built in conformance with all current codes and regulations. The project is subject to the regulations of the Alaska Department of Natural Resources, Alaska Coastal Management Program, and the Coastal Zone Management Project Questionnaire. Additional permitting agencies include the U.S. Fish and Wildlife Service, the U.S. Army Corps of Engineers, the State Historic Preservation Office, the Division of Fire Prevention, and the U.S. Environmental Protection Agency. An Environmental Assessment (EA) following NEPA guidelines has been prepared in accordance with FERC and Denali Commission requirements. The Federal Energy Regulatory Commission approved the hydro upgrades and amended project license. Pelican Hydroelectric Project Permits (in place) • Land Use Permit #ADL 101771: The Pelican Utility District and the State of Alaska have a 6.0612 private non-exclusive easement for the hydroelectric facility (dam, flume, tunnel, generators, powerhouse, transmission line and transformer) • 07-23-2008 State of Alaska Final Consistency Determination – Concurrence Pelican Creek (City of Pelican Water System Improvements) State I.D. No. AK 0805-05J: Project is consistent with the ACMP • Land Use Permit # ADL 107506: Effective beginning 7-28-2008 and ending on July 27, 2013. For Pelican Access Road to the water source reservoir; the road is approximately 1,225 ft. long and 14 ft. wide. • Material Sale Contract: ADL #107867 expires 8-05-2011 • Storm Water Pollution Prevention Plan, Pelican Hydroelectric Project: Notice of Intent filed May 2009; permit is in force until a Notice of Termination is filed at the end of the project. • Alaska Coastal Management Plan: 7-15-2009 No Additional ACMP Review Required, Pelican Creek (Pelican Hydro Renovation MOD2), State I.D. No. 2009-0612J • Federal Energy Regulatory Commission: Project Number 10198, Amended License • Alaska Public Utilities Commission: Certificate of Public Convenience and Necessity #24 issued to Kake Tribal Corporation for Electric Service. • State Historic Preservations: Memorandum of Agreement among the Federal Energy Regulatory Commission and the Alaska State Historic Preservation Officer regarding renovations to the Hydroelectric System in Pelican, Alaska. Signed by FERC, Alaska State Historic Preservation Officer, and Pelican Utility District: July 2009. A HAER Level II Historical Report has been completed for the project and is on file with the State of Alaska SHPO, City of Pelican, and the National Archives and Records Administration, Alaska Region. • Corps of Engineers Permit: POA#2008-487 – authorized by Nation Wide Permit #17 Hydropower, issued 7-16-2009, expires 4-23-2013. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 14 of 19 7/21/2010 4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicants Records or Analysis, Industry Standards, Consultant or Manufacturer’s estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following: • Total anticipated project cost, and cost for this phase • Requested grant funding • Applicant matching funds – loans, capital contributions, in-kind • Identification of other funding sources • Projected capital cost of proposed renewable energy system • Projected development cost of proposed renewable energy system Detailed estimated project costs for the civil and powerhouse upgrades prepared by CE2 Engineer and AE&E are included in the Appendix F. Total Project Cost: $5,520,836 Requested Grant Funding: $1,896.836 This funding will complete Phase IV - Construction. Applicant Matching Funds: $3,624,000 Matching funds provided from the Denali Commission for design, permitting and construction Project Capital Costs: $5,520,836 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant. (Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting requirements for the purpose of reporting impacts of projects on the communities they serve.) A Business Operating Plan was prepared dated February 15, 2008 to accurately quantify operating and maintenance, and renewal and replacement costs for the hydroelectric facility. The Business Plan will be updated to reflect recent design changes to accommodate increased construction costs. The electric utility is economically regulated by the RCA and is currently in the process of revising its rate structure to reflect the additional high costs of operating on 100% diesel generated electricity. Pelican Utility has demonstrated its sustainability over nearly 70-years of operations. It is essential for the sustainability of the utility and community as a whole that the hydroelectric upgrade project be completed expeditiously so that the community may return to efficient and cheap hydroelectric energy. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 15 of 19 7/21/2010 Facility operational costs will not be funded by grant funds. 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following: • Identification of potential power buyer(s)/customer(s) • Potential power purchase/sales price - at a minimum indicate a price range • Proposed rate of return from grant-funded project The City of Pelican will own the granted assets, and the Pelican Utility District (the certificated electric utility) will operate the assets under a Management Agreement and the Denali Commission requirements as outlined in the Business Operating Plan. Upon completion and startup of the project, the electric utility will submit a revised rate case to the Regulatory Commission for Alaska to reflect the decrease in the cost of power due to diesel fuel consumption. This will effectively lower the electric rate in Pelican by $.25/kWh. The RCA does not allow a rate or return on grant funded assets. 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Refer to Appendix B for the Cost Worksheet. SECTION 5– PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following: • Potential annual fuel displacement (gal and $) over the lifetime of the evaluated renewable energy project • Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate) • Potential additional annual incentives (i.e. tax credits) • Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) • Discuss the non-economic public benefits to Alaskans over the lifetime of the project Potential Fuel Displacement The avoided fuel displacement over a 30 year period is estimated at 2.25-million gallons and $7.5-million dollars. Anticipated Annual revenue The Pelican Utility District is economically regulated by the Regulatory Commission of Alaska. As such, electric rates and revenue charges are subject to the RCA review and approval. Potential additional annual incentives and revenue streams: Surplus spilled water will be utilized for electric space heat at the local Pelican school. It is certain that there is available surplus spilled energy, but until the powerhouse controls and Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 16 of 19 7/21/2010 monitoring systems have been completed, it is not realistic to place a number on estimated heating fuel savings. Non-economic Public Benefits to Alaskans ƒ Develop a viable and renewable means to produce energy locally ƒ Demonstrate State and community commitment to renewable energy resources ƒ Reduced dependence on diesel fuel and potential for fuel spills ƒ Reduced noise when operating 100% on hydroelectric power ƒ Reduced emissions and air pollution The Pelican Hydroelectric Facility Upgrades Project will supply the community of Pelican with safe, reliable, and cost-efficient electricity from a pair of newly refurbished hydroelectric turbine generators of 550kW and 100kW, with a combined capacity of 650kW. The upgrades enable the Pelican Hydroelectric Facility to provide long-term reliable service and improve overall efficiencies and output. Hydroelectricity will be immediately available upon demand, 24 hours a day. With grant funds awarded, the community can be back on hydropower by 2011. Hydroelectric generation will displace the “Cost of Power Adjustment” (COPA) associated with high-cost diesel powered electricity. The current residential rate for diesel-powered electricity is: $0.1679/kWh plus COPA of $0.248401/kWh for a total rate of $0.416301 By eliminating the COPA, the residential rate will revert to $0.1679/kWh and reduce the cost of electricity by 60%. Final implementation of this project will facilitate the long-term reduced cost of electricity for Pelican. The amount of fuel consumption used to generate diesel-powered electricity will be measured and monitored. This will be compared with previous years use to substantiate the cost benefits to the community. With a reduction of diesel fuel consumption, residents benefit by spending less of their annual income on electricity. The utility has requested a rate increase from the Regulatory Commission of Alaska. If approved, the base rate will increase. Additionally, the proposed COPA will also be higher than the current one, which means that the hydro project benefit to community ratepayers will actually increase. The hydroelectric turbines are newly refurbished. The project is ready for installation of the new HDPE pipe for the water conveyance system from the reservoir to the hydropower plant. An added benefit of the Pelican Hydroelectric Facility Upgrades Project is that the number of needed repairs will diminish significantly. This will reduce the overall costs of operations and maintenance (O&M) and renewal and repairs (R&R). Repairs to the new system will be monitored and when compared to previous years, if the number of repairs is reduced, then the community will benefit from reduced costs for O&M and R&R. The Pelican Hydroelectric Plant was originally constructed between 1938 and 1941. The facility has continuously produced hydroelectricity since that time. The seventy years of service provide by the facility demonstrates the proven long-term viability and benefits of this project. 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. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 17 of 19 7/21/2010 • 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 The City of Pelican will own the granted assets and the Pelican Utility District will operate and maintain the hydroelectric facility. The Pelican Utility District has operated and maintained the electric generation facilities in Pelican for 70-years. As discussed in Section 4.4.2, a Business Operating Plan has been prepared for the project that identifies long term operations and maintenance, as well as renewable and replacement items and costs for the project. The City and PUD have entered into a separate agreement and business plan for the diesel generation power plant. The diesel generation plan will be maintained and operated in accordance with utility practices and Denali Commission requirements. The City of Pelican and the Utility commit to monitoring and reporting the Project savings and benefits as required by the REF grant funding, and to demonstrate the viability of this renewable project. SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS Discuss what you have done to prepare for this award and how quickly you intend to proceed with work once your grant is approved. Tell us what you may have already accomplished on the project to date and identify other grants that may have been previously awarded for this project and the degree you have been able to meet the requirements of previous grants. Since 2004, the City of Pelican has worked with the Alaska Energy Authority, Alaska Village Safe Water, and Denali Commission to renovate and replace critical aging community infrastructure. A Bulk Fuel Upgrade project, which replaced antiquated and code-deficient community fuel storage and handling, and a Rural Power System Upgrade project, which constructed a desperately needed state of the art diesel generation power plant, was completed in 2008. A new Water Treatment Plant project has been recently completed and provides the community of Pelican with clean potable (drinking) water. This project will complete the implementation of the energy infrastructure upgrades, under development the past six-years, by providing necessary funds to complete the renovation and upgrade of the existing Pelican Hydroelectric project. This project will renovate the existing Pelican Hydroelectric project to improve safety, reliability and operating efficiency, and comply with current codes and regulations. Additionally, surplus available hydroelectric power will be used to heat our local school, which will more efficiently utilize available hydroelectric power and provide an unserved electric need of our community. This project meets the objectives of improving reliability and safety, while reducing the cost of energy service. All project permitting, licenses, site control, and project design has been completed. Please refer to Appendix F – Technical Data for a description of work completed to date. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 18 of 19 7/21/2010 SECTION 8– LOCAL SUPORT Discuss what local support or possible opposition there may be regarding your project. Include letters of support from the community that would benefit from this project. The community of Pelican, Pelican School, and Pelican Utility District support the completion of the hydroelectric upgrade project. The City of Pelican has worked cooperatively with PUD to implement this project. The community of Pelican is eager to return to the hydroelectric power that will reduce dependency on diesel fuel, and help reduce and stabilize long-term electric rates. Refer to letters of support from the City of Pelican and Pelican Utility District included in Appendix E. 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 – GrantBudget3.doc Total estimated project cost for the hydroelectric upgrade project is $5,520,836. The grant request for Phase IV Construction is $1,896,836 The City of Pelican has secured grant funding through the Denali Commission and will provide match in the amount of $3,624,000 for design, permitting and construction of the hydroelectric project. Refer to Grant Budget worksheet in Appendix C APPENDIX A PROJECT RESUMES Patricia Phillips, City of Pelican Steven J. Stassel, AE&E John T. Dickerson, AE&E Brian Aklin, CE2 Mike West, CE2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       APPENDIX B COST WORKSHEET   Renewable Energy Fund Round 4 Project Cost/Benefit Worksheet   RFA AEA11-005 Application Cost Worksheet Page 1 7-21-10 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. 75,000-gallons/year +/- Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) 2. Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank) i. Number of generators/boilers/other 3 diesel gensets & 2 hydro generators ii. Rated capacity of generators/boilers/other 920 kW diesel & 650 kW hydro iii. Generator/boilers/other type 3 John Deere gensets, 1 Barber Turbine, 1 Cornell iv. Age of generators/boilers/other Gensets 2007, hydro Circa 1994 / rebuilt 2009 v. Efficiency of generators/boilers/other N/A b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $196,262 ii. Annual O&M cost for non-labor $289,428 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] 1,044,592 ii. Fuel usage Diesel [gal] 75,000 gallons Other iii. Peak Load 312 Kw iv. Average Load 130 Kw v. Minimum Load 85+/- Kw vi. Efficiency 14.0 kwh per gallon of diesel consumed vii. Future trends Displace 90% - 100% diesel with hydro power d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] n/a ii. Electricity [kWh] n/a iii. Propane [gal or MMBtu] n/a iv. Coal [tons or MMBtu] n/a v. Wood [cords, green tons, dry tons] n/a vi. Other n/a                                                              1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric  Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power.      Renewable Energy Fund Round 4 Project Cost/Benefit Worksheet   RFA AEA11-005 Application Cost Worksheet Page 2 7-21-10 3. Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] 650 kW b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 1,000,000 ii. Heat [MMBtu] 5,000-gallon – Available Recovered Heat c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] ii. Coal [tons or MMBtu] iii. Wood [cords, green tons, dry tons] iv. Other 4. Project Cost a) Total capital cost of new system $5,520,836 b) Development cost N/A c) Annual O&M cost of new system Refer to Business Plan d) Annual fuel cost N/A 5. Project Benefits a) Amount of fuel displaced for i. Electricity 75,000 gallons ii. Heat 5,000gallons – Heat Recovery (estimate) iii. Transportation b) Current price of displaced fuel $3.00/gallon (average) c) Other economic benefits rate stabilization, reduce CO2 emissions, reduced chance of fuel spills, lower operating (heating) costs d) Alaska public benefits 6. Power Purchase/Sales Price a) Price for power purchase/sale Regulated Electric Utility 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Not calculated Payback (years) 8.4 years for REF Funds APPENDIX C GRANT BUDGET Renewable Energy Fund Grant Round IV Grant Budget Form 7-21-10 Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS (List milestones based on phase and type of project. See Attached Milestone list. ) $ $ $ $ $ $ All Phases $1,896,836 $3,624,000 DC Funds $5,520,836 $ $ $ Encumbered to Date $------ $3,124,000 $3,124,000 $ $ $ Available Balance $1,896,836 $500,000 $2,396,836 $ $ $ $ $ $ $ $ TOTALS $ Budget Categories: Phase IV Construction Only Direct Labor & Benefits $468,700 $------ $468,700 Travel & Per Diem $----- $------ $------ Equipment $154,300 $------ $154,300 Materials & Supplies $485,010 $------ $485,010 Contractual Services $108,000 $500,000 $608,000 Construction Services $165,000 $------ $165,000 Other $515,826 $------ $515,826 TOTALS $1,896,836 $500,000 $2,396,836 Applications should include a separate worksheet for each project phase (Reconnaissance, Feasibility, Design and Permitting, and Construction)- Add additional pages as needed ALASKA ENERGY ANDENGINEERING, INCPELICAN HYDROELECTRIC UPGRADE PROJECTCOST ESTIMATE SUMMARYSEPTEMBER 5, 2010RUS HECG APPLICATIONCONSTRUCTION COST ESTIMATE ($ 2010)CIVIL (WATER CONVEYANCE) RENOVATION - COMPLETED 9/1/10$3,124,000POWERHOUSE AND CONTROLS UPGRADE - PHASE II$731,250CIVIL (WATER CONVEYANCE) RENOVATION - PHASE II$1,551,451CONSTRUCTION SUB-TOTAL ($ 2010) $5,406,701PHASE II ESCALATION ($ 2010 TO $ 2011 @ 5% PER YEAR)$114,135CONSTRUCTION TOTAL ($ 2011) $5,520,836PROJECT CONTRIBUTIONS ($2010)DENALI COMMISSION FUNDING $3,624,000TOTAL LOCAL CONTRIBUTIONS ($ 2010) $3,624,000FEDERAL FUNDS REQUESTED ($ 2011) $1,896,836PERCENT OF LOCAL CONTRIBUTION TO TOTAL PROJECT COST 65.6%Our hydroelectric project is the final phase of a six-year major infrastructure improvement project for Pelican, including a new diesel power plant, water plant, and fuel storage and handling facilities. This summary includes only costs associated with the hydroelectric upgrade project, and reflects completed work through August 2010 and estimated costs to complete Phase II of the Project. Inflation from 2010 to 2011 for only the Phase II portion of the project is included to reflect escalating costs. B-1 ALASKA ENERGY ENGINEERINGPELICAN HYDROELECTRIC UPGRADE PROJECT PHASE 2 - POWERHOUSE & CONTROLSCOST ESTIMATE SUMMARY 9/6/20101. HYDRO POWERHOUSE SWITCHGEAR REPLACEMENT & CONTROLS UPGRADES $149,8002. TURBINE GOVERNOR REPLACEMENT$68,4003. TURBINE, GENERATOR & POWERHOUSE EQUIPMENT SERVICE & UPGRADES $121,8004. TRANSDUCERS, SENSORS, REMOTE MONITORING & PROTECTIVE DEVICES $30,2005. INTAKE AREA ELECTRICAL SERVICE AND EQUIPMENT $30,8006. FIBER OPTIC DATA COMMUNICATION CABLE$15,6007. ELECTRIC BOILERS $31,400OVERHEAD$50,355FREIGHT$37,515CONSTRUCTION SUB-TOTAL $535,870DESIGN AND CONSTRUCTION ADMIN. $50,000CONSTRUCTION MANAGEMENT $50,000PROJECT SUB-TOTAL $635,870CONTINGENCY $95,380 15 %TOTAL PROJECT COST $731,250B-1 ALASKA ENERGY ENGINEERINGPELICAN HYDROELECTRIC UPGRADE PROJECTPHASE 2 - POWERHOUSE & CONTROLSCONSTRUCTION COST ESTIMATE9/6/2010ITEM QUAN UNIT UNIT MATL UNIT LAB LAB LABORCONTR FREIGHT TOTAL UNIT TOTAL COST COST HRS HRS RATE COST COST COST COST WT WT(#)1. HYDRO POWERHOUSE SWITCHGEAR & CONTROLS UPGRADES0Switchgear Upgrade1 lump $100,000 $100,000 200 200 $120 $24,000 $124,000 1,500 1,500Station Service Replacement1 lump $7,500 $7,500 60 60 $95 $5,700 $13,200 500 500Automation of Existing Equipment & Systems1 lump $5,000 $5,000 80 80 $95 $7,600 $12,600 500 5002. TURBINE GOVERNOR DIGITAL CONVERSION0Electronic Turbine Governor1 lump $0 $0 100 100 $95 $9,500 $9,500 500 500Electronic Distributing Valve w/ Servo Amp 1 lump $10,000 $10,000 20 20 $95 $1,900 $11,900 500 500Hydraulic Actuator w/ Shut-down Logic 1 lump $5,000 $5,000 100 100 $95 $9,500 $14,500 500 500Actuator Servo Position Indicator 1 lump $2,000 $2,000 20 20 $95 $1,900 $3,900 500 500New Hydraulic Power Pack1 lump $20,000 $20,000 40 40 $95 $3,800 $23,800 5,000 5,000Replace Wicket Gate Assembly Linkages1 lump $1,000 $1,000 40 40 $95 $3,800 $4,800 150 1503. TURBINE, GENERATOR & POWERHOUSE EQUIPMENT SERVICE & UPGRADES 0Major Rebuild of 550kW Francis Turbine1 lump $50,000 $50,000 0 0 $95 $0 $50,000 2,000 2,000550kW Generator Rewind & RTD Installation1 lump $10,000 $10,000 40 40 $95 $3,800 $13,800 6,000 6,000100kW Generator Rewind 1 lump $2,500 $2,500 20 20 $95 $1,900 $4,400 1,500 1,500Draft Tube Replacement0 lump $15,000 $0 200 0 $95 $0 $0 5,000 030" Turbine Isolation Valve with Gravity Emergency Shut Down1 lump $14,000 $14,000 60 60 $95 $5,700 $19,700 300 30030" Pipe Modifications1 lump $3,000 $3,000 40 40 $95 $3,800 $6,800 300 300New Turbine Bearing Oil Cooling System & Duplex Water Filter 1 lump $14,000 $14,000 40 40 $95 $3,800 $17,800 500 500500 Gal Day Tank1 lump $2,500 $2,500 20 20 $95 $1,900 $4,400 500 500Space Heater1 lump $3,000 $3,000 20 20 $95 $1,900 $4,900 100 1004. TRANSDUCERS, SENSORS, REMOTE MONITORING & PROTECTIVE DEVICES 0Level Transducers1 lump $3,000 $3,000 40 40 $95 $3,800 $6,800 200 200Remote Cameras & Controls (Powerhouse & Intake Area)1 lump $4,000 $4,000 20 20 $95 $1,900 $5,900 100 100B-2 ALASKA ENERGY ENGINEERINGPELICAN HYDROELECTRIC UPGRADE PROJECTPHASE 2 - POWERHOUSE & CONTROLSCONSTRUCTION COST ESTIMATE9/6/2010ITEM QUAN UNIT UNIT MATL UNIT LAB LAB LABORCONTR FREIGHT TOTAL UNIT TOTAL COST COST HRS HRS RATE COST COST COST COST WT WT(#)RTD's, Sensors & Limit Switches1 lump $6,000 $6,000 80 80 $95 $7,600 $13,600 100 100Data/Com Cabling from Powerhouse to Intake Area1 lump $2,000 $2,000 20 20 $95 $1,900 $3,900 500 5005. INTAKE AREA ELECTRICAL SERVICE AND EQUIPMENT 03-Phase Service Conductors from Powerhouse to Intake Area1 lump $1,500 $1,500 20 20 $95 $1,900 $3,400 1,000 1,000Dry Pack Transformer for Intake Area Station Service1 lump $1,500 $1,500 10 10 $95 $950 $2,450 500 500Control Panel w/ Load Center1 lump $4,000 $4,000 10 10 $95 $950 $4,950 250 250Trash Rack Control Panel1 lump $7,500 $7,500 80 80 $95 $7,600 $15,100 200 200Lighting, Receptacles & Devices1 lump $3,000 $3,000 20 20 $95 $1,900 $4,900 500 5006. FIBER OPTIC DATA COMMUNICATION CABLEOverhead Fiber Optic Cable 3,000 feet $1.00 $3,000 0.04 105 $120 $12,600 $15,600 0.25 7507. ELECTRIC BOILERSElectric Boiler at School 1 lump $20,000 $20,000 120 120 $95 $11,400 $31,400 200 200OVERHEADAudit Grants 1 lump $6,000 $6,000Rent Heavy Equip. 1 lump $20,000 $20,000Commission/Train Operators 1 lump 80 80 $80 $6,400 $6,400Superintendent Overhd Off-Site 40 hr 1 40 $80 $3,200 $3,200Superintendent Overhd On-Site 40 hr 1 40 $80 $3,200 $3,200Crew Travel Time 60 hr 1 60 $80 $4,800 $4,800Crew Airfares 6 trips $1,800 $1,800Crew Per Diem 82 mn.dy$3,455 $3,455Housing Rent3 mo.$1,500$1,500FREIGHT25,150Barge Freight Seattle-Juneau 25,150 lb. $0.10 $2,515Marine Freight Juneau-Pelican 2 trips $10,000 $20,000Project De-Mob 1 trip $10,000 $10,000Misc Small Freight & Gold Streaks1 lump $5,000 $5,000CONSTRUCTION SUB-TOTAL $305,000 1,645 $160,600 $32,755 $37,515 $535,870Engineering (Design & CCA) 1 lump $50,000Construction Management 1 lump $50,000PROJECT SUB-TOTAL $305,000 $160,600 $132,755 $37,515 $635,870Contingency15 %$95,380TOTAL PROJECT COST $731,250B-3 CE2 Engineers, Inc. 35% COST TO COMPLETE ESTIMATE FOR PELICAN HYDROELECTRIC PROJECTBudget Item Description Quantity Unit Unit Cost BudgetSubtotal Cost toDate Cost toComplete Cost atCompletion BudgetVariance 1 Construction Management Contract 1 LS 65,000$ 65,000$ -$ -$ -$ -$ 2 Supplied Labor 1 LS 162,000$ 162,000$ -$ -$ -$ -$ 3 Force Account Labor 1 LS 146,100$ 146,100$ -$ -$ -$ -$ 4 Small Procurement ($5,000 and less) 1 LS 40,500$ 40,500$ -$ -$ -$ -$ 5 Material over $5,000 1 LS 139,510$ 139,510$ -$ -$ -$ -$ 6 Freight 1 LS 95,000$ 95,000$ -$ -$ -$ -$ 7 Equipment 1 LS 154,300$ 154,300$ -$ -$ -$ -$ 8 Subcontractors 1 LS 608,000$ 608,000$ Sub Total1,410,410$ -$ -$ -$ -$ Project Estimate1,410,410$ 10 AEA Fixed Costs-$ 10% Contingency141,041$ 1,551,451$ Assumptions: Total Cost to Complete 1) Local Force Account Labor will be available2) Local Equipment will be available3) Powerhouse and controls Upgrades are not part of this cost estimate9/03/10Project Total CE2 Engineers, Inc. 35% COST TO COMPLETE ESTIMATE FOR PELICAN HYDROELECTRIC PROJECTBudget Item Description Quantity Unit Unit CostBudgetSubtotalCost toDateCost toCompleteCost atCompletionBudgetVariance1 Construction Manager 1 LS 45,000$ 45,000$ Admin 1 LS 7,500$ 7,500$ Procurement 1 LS 7,500$ 7,500$ Expediting 1 LS 5,000$ 5,000$ Subtotal 65,000$ -$ -$ -$ -$ 09/03/10Construction Managment CE2 Engineers, Inc. 35% COST TO COMPLETE ESTIMATE FOR PELICAN HYDROELECTRIC PROJECTBudget Item Description Quantity Unit Unit CostBudgetSubtotalCost toDateCost toCompleteCost atCompletionBudgetVariance2 Superintendent 1,620 Hrs 100$ 162,000$ Subtotal 162,000$ -$ -$ -$ -$ 09/03/10Supplied Labor CE2 Engineers, Inc. 35% COST TO COMPLETE ESTIMATE FOR PELICAN HYDROELECTRIC PROJECTBudget Item Description Quantity Unit Unit CostBudgetSubtotalCost toDateCost toCompleteCost atCompletionBudgetVariance3Excavator Operator 480 Hrs 45$ 21,600$ Dozer Operator 300 Hrs 45$ 13,500$ Truck Driver 300 Hrs 45$ 13,500$ Pipe Layer 500 Hrs 30$ 15,000$ Pipe Layer 500 Hrs 30$ 15,000$ Laborer 750 Hrs 30$ 22,500$ Laborer 750 Hrs 30$ 22,500$ Laborer 750 Hrs 30$ 22,500$ Subtotal 146,100$ -$ -$ -$ -$ 09/03/10Force Account Labor CE2 Engineers, Inc. 35% COST TO COMPLETE ESTIMATE FOR PELICAN HYDROELECTRIC PROJECTBudget Item Description Quantity Unit Unit CostBudgetSubtotalCost toDateCost toCompleteCost atCompletionBudgetVariance4 Misc Hardware 1 LS 2,500$ 2,500$ Lube Oil 1 LS 500$ 500$ Misc fasteners 1 LS 1,500$ 1,500$ Misc (tools) 1 LS 2,500$ 2,500$ Misc Travel Costs 1 LS 5,000$ 5,000$ Misc. Lumber 1 Lot 2,500$ 2,500$ Slings and Cable 1 LS 4,500$ 4,500$ Temporary Water Line Fittings 1 LS 1,000$ 1,000$ Phone/Fax 7 Month 500$ 3,500$ Room and Board 7 Month 1,000$ 7,000$ Construction Fuel 1 Lot 10,000$ 10,000$ Subtotal 40,500$ -$ -$ -$ -$ 09/03/10Small Procurement CE2 Engineers, Inc. 35% COST TO COMPLETE ESTIMATE FOR PELICAN HYDROELECTRIC PROJECTBudget Item Description Quantity Unit Unit CostBudgetSubtotalCost toDateCost toCompleteCost atCompletionBudgetVariance5Dam Wing Wall and SpillwayPre-Mix Concrete 1 Lot 8,300.00$ 8,300$ Misc Lumber and fasteners 1 Lot 2,500.00$ 2,500$ Upper PenstockFill cover over pipeline 700 CY 35.00$ 24,500$ Electrical Conduit 600 LF 3.00$ 1,800$ TrestleSteel "I" Beems 1 Lot 50,000.00$ 50,000$ Treated 4x12x8' 150 EA 51.00$ 7,650$ Hand rail System 1 Lot 5,000.00$ 5,000$ Misc Fasteners 1 Lot 2,500.00$ 2,500$ Rock Bolt System 1 Lot 5,000.00$ 5,000$ Fabricated Pipe Supports 1 Lot 13,000.00$ 13,000$ Surge Tank-$ Pre-Mix Concrete 2 CY 225.00$ 450$ Form Lumber 1 Lot 100.00$ 100$ Rebar 1 Lot 90.00$ 90$ 1-3/8"x8' Rock anchor Bolt 8 EA 90.00$ 720$ 12" Flanged gate Valve 1 EA 840.00$ 840$ 12" Flange Gasket 1 EA 12.00$ 12$ 12" Flange Bolt Kit - Std Flg to Std Flg 1 EA 48.00$ 48$ Lower PenstockElectrical Conduit 300 LF 3.00$ 900$ Erosion Control Materials 1 Lot 2,500.00$ 2,500$ 18" Duplex Strainiers 2 EA 6,800.00$ 13,600.00$ Subtotal 139,510$ 09/03/10 Page 6 of 9 Materials CE2 Engineers, Inc. 35% COST TO COMPLETE ESTIMATE FOR PELICAN HYDROELECTRIC PROJECTBudget Item Description Quantity Unit Unit CostBudgetSubtotalCost toDateCost toCompleteCost atCompletionBudgetVariance6 Barge Freight 1 LS 75,000$ 75,000$ Air Freight 1 Lot $20,000 $20,000Subtotal 95,000$ -$ -$ -$ -$ 09/03/10Freight CE2 Engineers, Inc. 35% COST TO COMPLETE ESTIMATE FOR PELICAN HYDROELECTRIC PROJECTBudget Item Description Quantity Unit Unit Cost BudgetSubtotal Cost toDate Cost toComplete Cost atCompletion BudgetVariance 7 EX300 Excavator w/Thumb 4 Month 9,500$ 38,000$ Morooka Dump Truck 4 Month 3,200$ 12,800$ 550 Dozer 4 Month 5,000$ 20,000$ 42/48" Pipe Fusion Machine 3 Month 22,000$ 66,000$ By-pas pump and generator 7 Month 2,500$ 17,500$ -$ -$ Subtotal 154,300$ -$ -$ -$ -$ 09/03/10Equipment CE2 Engineers, Inc. 35% COST TO COMPLETE ESTIMATE FOR PELICAN HYDROELECTRIC PROJECTBudget Item Description Quantity Unit Unit Cost BudgetSubtotal Cost toDate Cost toComplete Cost atCompletion BudgetVariance 8 Blasting/construct trestle 1 Lot 550,000$ 550,000$ Survey Staking 1 Lot 15,000$ 15,000$ Move Power Pole 1 Lot 30,000$ 30,000$ Hydro Technician 1 Lot $13,000 $13,000Subtotal 608,000.00$ -$ -$ -$ -$ 09/03/10Subcontractors APPENDIX D ELECTRONIC COPY OF APPLICATION (REFER TO ENCLOSED DISC) APPENDIX E RESOLUTION & SUPPORTING LETTERS Grant Documents Authorized Signers City of Pelican Resolution Pelican Utility District (PUD) letter of support APPENDIX F TECHNICAL DATA polarconsult alaska, inc. 1503 West 33rd Avenue, Suite 310 Anchorage, Alaska 99503-3638 Phone: (907) 258-2420 FAX: (907) 258-2419 M EMORANDUM POWERINCREASEMEMO.DOC DATE: 10/24/07 TO: Steve Stassel FROM: Michael Dahl RE: Pelican Hydroplant Per our discussion of yesterday, there are a couple of options for obtaining increased power output from the hydroelectric plant. Increased flow through the penstock will increase head losses through the system. The existing design is for 42" diameter HDPE on the upper penstock and 36" diameter steel on the lower penstock and the dam spillway raised 3 feet. To obtain additional power an increase in flow or head is required. To obtain increased flow and keep total dynamic head constant, an increase in pipe diameter is required. Follows is a table showing the existing design, the existing design with increased flow, and an alternate to change the upper penstock to 48" diameter. Percent Flow Increase 25%25% Flow (cfs) 75.24 90.43 90.43 Penstock Losses Intake + Transition 1.35 1.60 1.46 42" Upper Penstock 2.47 3.52 48" Upper Penstock Alternate 1.79 36" Lower Penstock 2.52 3.59 3.59 Total Head Loss 6.34 8.71 6.83 Spillway Elevation 146.3 146.3 146.3 Tailrace Elevation 22 22 22 System Head at Full Flow 117.96 115.59 117.47 Changing the upper penstock to 48" diameter allows the system flow to be increased by about 25% while retaining the existing design total dynamic head. The mean flow rate for the drainage is higher than the existing design flow of 75 cfs. The amount of additional f low ava ilab le during the summ er is not ava ilable from exist ing inform ation but can be estim ated conservative ly at over 50% of the t im e as shown on the percent accidence chart. The summer low flow is 74 cfs with a 2-year recurrence, 48 cfs at a 5-year recurrence, and 3 cfs at a 10-year recurrence. The flows will limit the existing plant output and any % Flow Excedance 0 100 200 300 400 500 600 5%15%50%85%95% P OLARCONSULT M EMORANDUM Page 2 of 2 additional planned output. The cost of increasing the penstock diameter to 48" can be estimated as the ratio of the squares of the pipe diam eters, or 30%. The 65% estimate for the upper penstock was $117,513 for materials and $89,523 for shipping. The increased cost to change to 48" pipe would be around $62,000. This would allow for an additional f low of 15 c fs to the plant. The ex isting pum p can be changed out for a 200 kW pum p, or an additional 100 kW pum p installed. Th is m ay require the extension of the existing building but m ay be advantageous as this would be prim ar ily a sum m er operational m achine only. Changing out the existing pum p would require ret rofit of the exist ing 36" p ipe inside the plant to install a lar ger d iam eter pipe to the pum p, new motor control va lve , w iring and possibly switchgear . If a 3rd pump is added to the plant, the bifurcation could be installed in the new 36" lower penstock outside the plant. A new slab could be poured on the uphill side of the existing plant and wiring run into the existing plant. If the additional plant upgrades are estimated at $100k the total cost for the addition power should be less than $160,000. The power from this additional unit could be an additional 120 kW for a total of 720 kW during the summer when flow was available. If it is assumed that the additional flow is available 50 % of the time then for the 4-month summer high use period and additional 175,200 kWh could be utilized. At an estimated 13 kWh per gallon, this would be equal to about 13,500 gallons of fuel displaced . At $3 per gallon the additional power would displace about $40,400 per year. At the $160,000 installation cost a payback of at most 4 years would be anticipated. I believe this is a conservative analysis as more power should be available on the average and installation costs conservative. Additional information will also be required to see if additional load is warranted during a longer period and if the additional water flow is available. Pelican Hydroelectric Project Scope Civil Work Completed Cofferdam: The temporary cofferdam consists of an earthen structure with a continuous reinforced impervious vinyl liner membrane. The cofferdam measures approximately 70 feet in width and 12 feet in height and is installed approximately 20 feet upstream of the existing dam. The area between the coffer dam and the existing dam was pumped down to facilitate construction of the new wing wall, intake, and dam bypass. Upon completion of the penstock, the cofferdam will be removed. New Wing Wall: The existing dam right abutment was removed and a new 57 foot long wing wall installed to a 153.8 foot elevation, note that that 100 year flood elevation is 153.3 feet. The wing wall is constructed of timber with a concrete toe. New Intake: A 6 feet 8 inch wide by 4 feet tall rectangle, transitioning to 48 inch round intake pipe was installed in the new wing wall to allow for water release into the upper penstock piping. A trash rack with 1 inch screens is installed on the upstream side of the dam face at the entrance to the intake pipe. Dam Bypass: A dam bypass valve and 42 inch piping was installed in the new wing wall to allow for water release into Pelican Creek to comply with FERC fish water bypass requirements and for maintenance of the reservoif. Civil Work to be Completed Log Boom: A log boom consisting of six each 16 inch diameter by 10 feet long Tuffboom© waterway barrier sections connected with factory standard heavy connectors will be anchored from shore to shore. The log boom will prevent surface debris accumulation problems with the bypass and intake piping that will be installed in the new wing wall. Upper Penstock: An estimated 5,000 cubic yards of fill will be excavated from the upper alignment and used to constuct the lower penstock fill. A 140 foot section of 8 foot wide steel trestle will be constructed at the mid point of the access road around a vertical cliff. The new 48 inch HDPE upper penstock piping will be bedded on d-1 gravel and buried within the road bed, and installed on top of the trestle, from the dam to the surge tank. The existing penstock tunnel will be dynamited to daylight. The existing flume and trestles will be removed. The d-1 gravel will be imported from a permitted source in Juneau. . New Surge Tank: Install 12 foot diameter, 26.5 foot tall, ¼ inch steel surge tank between the upper 48” penstock piping and the lower 42” penstock piping. The tank will be installed on a 13 foot diameter concrete foundation and includes eight 1 3/8 inch foundation rock anchors set at a minimum of 6 feet depth. D-1 gravel imported from a permitted source in Juneau will be used under the concrete foundation. Lower Penstock: Construct an approximately 300 foot long by 12 foot wide gravel support and maintenance access for new 42 inch diameter HDPE penstock piping from surge tank to existing turbine building. An estimated 2,580 cubic yards of fill will be excavated from the alignment and re-filled for the pipe route fill. The existing penstock and trestles will be removed. Power House and Controls Upgrades Work Completed 600kW, 900RPM Kato Generator Refurbishment: Uncouple, disconnect and remove generator end from powerhouse. Package and ship out for refurbishment. ADD SOME NARATIVE ABOUT TESTING, HOTDIPPING, - WAS IT REWOUND?? Reinstall upon return of unit. 550kW Barber Turbine Refurbishment: Perform complete unit tear down and rebuild. Remove wicket gate assembly, dress or replace gates as required, replace stem bushing o-rings, seal plate seals, seal plate o-rings, and seal plate bolts. Adjust or replace all BLOC clutch assemblies as required. Clean and re-bush wicket gate fixed levers. Clean and re-bush transfer levers. Install new linkage pins. Refurbish or replace regulating ring. Clean regulating ring holders, inspect bearing surfaces and install new bolts. Replace the link shaft between the regulating ring and the intermediate shaft, including new rod end bearings. Clean servomotor link and replace bronze bushing. Remove runner from shaft, dress surfaces as required. Inspect shaft bearing surfaces and machine as required. Install new mechanical shaft seal and sleeve. Replace main bearings and seals. Install new oil cooling system on main radial-thrust bearing, including pump/reservoir, tubing and fan unit. 100kW Cornell Induction Pump Refurbishment: Replace mechanical shaft seal and sleeve. Replace main bearings and seals. Remove impeller, dress or replace as required Power House and Controls Upgrades Work to be Completed Hydro Powerhouse Switchgear and Controls Upgrades: Upgrade existing switchgear with new PLC with turbine governor control algorithm and additional control algorithms to monitor and control other plant functions including: reservoir level sensor; remote control of dam site video cameras, lights and trash rack; both hydroelectric generator breaker positions; the turbine main bearing lubrication and water cooling systems; remote electric boiler dispatch; and other inputs that may be required. Turbine Governor Replacement: Replace existing mechanical/hydraulic Woodward UGHT turbine governor with an electro-hydraulic control interface. Install new electronic distributing valve with servo amp for digital governor interface. Install new hydraulic actuator with shut- down logic and flow control. Replace existing mechanical restoring device with electronic servomotor position indication. Install new hydraulic system including servomotor, hydraulic pressure system, pumps, accumulator and dual hydraulic oil filtration system. Replace all mechanical linkages between governor actuator and wicket gate. Turbine Isolation Valve Replacement: Replace 30" electrically actuated knife gate turbine isolation valve with new 30” butterfly valve with gravity operated automatic shut-off actuator. Transducers, Sensors, Remote Monitoring and Protective Devices: New transducers, sensors, limit switches, remote monitoring and protective devices will interface with the automated control system. These will include: 1) Reservoir level transducer at intake; remote controlled cameras and area lights at intake and spillway; water temperature RTD and/or ice sensor at trash rack; 2) Water level transducer downstream of trash rack; 3) Intake valve fully open & fully closed limit switches; 4) Penstock pressure sensor; 5) Wicket gate position; 6) Induction generator isolation valve fully open & fully closed limit switches; 7) Induction generator speed switch; 8) Turbine vibration sensor; generator vibration sensor; 9) Shaft speed switch; 10) Turbine bearing temperature RTD's; 11) Turbine bearing oil bath level sensor; 12) Turbine bearing cooling water flow sensor; 13) Generator stator & bearing RTD's; 14) Hydraulic pump system level and pressure sensors; 15) Remote controlled camera and lights in hydro power house; and 16) Instrumentation leads from power house to intake area as required. Hydro Powerhouse space heat: An oil-fired space heater and 500 gallon diesel fuel day tank will be installed at the powerhouse to provide heat when hydroelectric power generation is off line. Intake Area Electrical Service and Equipment: The following electrical service, devices and equipment will be installed at the intake area: 1) 480V three-phase feeder conductors from power house to intake area (1,200 feet approximate distance, 2” conduit installed as part of Phase 1 work; 2) 480V to 208/120V NEMA 4 dry pack transformer at intake area; 3) Weather-tight control panel with load center, lighting contactors, camera relays and other controls as required, system to allow for an air compressor for future Obermeyer air bladder gate; 4) Area lights & conductors to trash rack and spillway areas; 5) 208V three-phase trash rack VFD panel & conductors; and 6) 120/240V single-phase and 208V three-phase power receptacles. Fiber Optic Data Communication Cable: Communication between the diesel plant PLC and the hydro plant PLC will be provided by a new single-mode fiber optic link. Install Figure 8 6- pair fiber optic cable on existing overhead distribution system poles between the diesel power plant and the hydroelectric powerhouse (approximately 3,000 feet total length). Electric Boilers: A dispatchable electric boiler will be installed at the Pelican School complex to allow excess hydroelectric power generation (above community demand) to displace diesel fuel use for space and domestic water heating. DAM SPILLWAY ELEVATION 143.3 FEET 22.0 FEETTAILRACE ELEVATION 124.3 FEETTOTAL PLANT GROSS HEAD 76.7 CFSDESIGN FLOW: (TURBINE 60.7, PUMP 12.5, DOMESTIC WTR 3.5) 117.6 FEETFULL FLOW DYNAMIC HEAD UPPER 48" Ø PENSTOCK 704 FEET PROJECT LOCATION MAP AND SHEET INDEX FULL FLOW HEAD LOSS 3.7 FEET 316 FEETLOWER 42" Ø PENSTOCK