HomeMy WebLinkAboutCold Bay Wind Wind Renewable Energy GrantApplication.2
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)
G&K Electric Utility
Type of Entity:
Independent Producer
Mailing Address
P.O. Box 117. Cold Bay, AK 99571
Physical Address
1 Airport Way, Cold Bay, AK 99571
Telephone
907-532-2407
Fax
907-532-2513
Email
GFergu9580@aol.com
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Ted Meyer
Title
Community Development Coordinator
Aleutians East Borough
Mailing Address
3380 C Street, Suite 205
Anchorage, AK. 99503
Telephone
907-274-7555
Fax
907-276-7569
Email
tmeyer@aeboro.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
X An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
A local government, or
A governmental entity (which includes tribal councils and housing authorities);
Yes
or
No
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
or
No
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
or
No
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
or No
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)
Cold Bay Wind Energy 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.
Cold Bay is located on the Alaska Peninsula, approximately 634 miles southwest of Anchorage and 180
miles northeast of Unalaska.
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
X 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)
x Reconnaissance Design and Permitting
x Feasibility Construction and Commissioning
Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
Cold Bay requests funding for this wind study as the first step towards supplementing the high cost of
diesel generators currently in use. The wind study and avian study will satisfy Phases I, Reconnaissance
and Phase II, Feasibility, and the study will result in a feasibility report on the technical, economic,
financial and operational viability and guidelines of implementing the next three phases of a wind
energy system. The grant would be managed by the Aleutians East Borough and calls for the
solicitation of a contractor to perform the analysis and a community meeting with the contractor
for presentation, review and discussion of the results.
Participants in the project will include:
1. G&K Electric Utility
2. Aleutians East Borough who will provide overall project management.
3. A contracted firm who will provide civil and electrical system engineering.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 4 of 19 7/21/2010
4. Contractor to perform the avian and environmental studies.
5. A supplier for the met towers.
2.5 PROJECT BENEFIT
Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel
costs, lower energy costs, etc.)
This project will reduce fuel and the overall energy costs to the Cold Bay community.
Other project benefits will include:
Reduced dependence on diesel fuel and the expense involved in its transportation.
Save on current operation and maintenance costs by less time from using diesel
generators
Contribute to the reduction of air pollution and affects on climate change.
2.6 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source
of other contributions to the project.
The estimated Phase I Reconnaissance cost of this project is $104,075, Phase II Feasibility is
$64,550. The project cost total is $168,625. Aleutians East Borough staff time will also be
contributed as in-kind to this project for project administration and management ($10,000). The
total requested is $158,625.
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. $158,625
2.7.2 Other Funds to be provided (Project match) $10,000
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $168,625
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)
$ not available
2.7.5 Estimated Direct Financial Benefit (Savings) $ not available
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.)
$ not available
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 5 of 19 7/21/2010
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.
Type in your answer here and follow same format for rest of the application.
Gary Ferguson, G&K Electrical owner, will provide overall project management and
administration. G&K Electrical will also rely on Aleutians East Borough staff and the City of
Cold Bay for project support. AEB staff maintains routine communications with the City of
Cold Bay on all aspects of community development and is currently assisting G&K Electrical
with this application. This close contact and coordination will continue in the development of the
Cold Bay Electric Grid Connect Wind Project with Electric Thermal Heat Recovery. An contracted
firm will also provide project management assistance upon grant award.
Aleutian East Borough Project Management staff includes:
Sharon Boyette, Administrator
907-274-7555, sboyette@aeboro.org
Ted Meyer, Community Development Coordinator
907-274-7555, tmeyer@aeboro.org
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 6 of 19 7/21/2010
Roxann Newman, Finance Director.
907-497-2588, rnewman@aeboro.org
Attached are their resumes.
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.)
See Project Milestones table below for Project Schedule.
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.)
Project Milestones Reimbursable Tasks Timeline
Phase I.
Reconnaissance
Project Scoping
and
Community
Solicitation
Project Management
Establish avian monitoring needs for area
as suggested by USFWS
MC Team will travel to community for site
assessment and to visit the school to
introduce the project to
Staff/Students/Community and solicit
participation i.e. Introduce Wind for
Schools, provide information about
training opportunities for wind-diesel
system operations, and solicit volunteers
for avian monitoring (this task will be
completed concurrently with the
Preliminary Site Visit funded in the next
milestone – no additional funding added
for this milestone in budget)
8/1/11 to 10/31/11
Resource
Identification
and Analysis
Project Management
Preliminary site visit
FAA Approval for met tower on selected
site(s)
Equipment purchase/shipping/ and
installation
Determine point of contact and train local
agents to change data cards and conduct
avian observations
Gather wind resource data and avian
observations
9/1/11 to 10/31/12
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 7 of 19 7/21/2010
Land use,
permitting, and
environmental
analysis
Project Management
Determine site ownership issues, if any
Contact agencies for preliminary approval:
SHPO, DOD, ACMP
Document, if any, community concerns
with sight and sound at chosen location
9/1/11 to
10/31/11
Preliminary
design analysis
and cost
Project Management
Utilize Wind Resource Report to identify
optimal wind turbines and configuration –
4 types are currently under consideration:
Remanufactured Vestas V-27
North Wind 100
Nordtank 300kW Wind
Micon M530-250W
10/1/12 to
11/30/12
Cost of energy
and market
analysis
Project Management
Assess cost of energy for current and
predicted usage
10/1/12 to
11/30/12
Simple economic
analysis
Project Management
Compare current vs. predicted price of
energy
10/1/12 to
11/30/12
Final report and
recommendation
s
Project Management
Prepare Wind Resource Report and
Present to School /Community along with
options for development. Solicit input
from community and interest in training
for wind-diesel O&M
11/1/12 to
12/31/12
Phase II. Feasibility
Project scoping
and community
solicitation
Project Management
Assess interest for advanced training in
wind-diesel O&M
Provide School information about
vocational training opportunities in wind-
diesel O&M
8/1/11 to 9/30/11
Detailed energy
resource analysis
Project Management
Evaluate existing diesel power plant,
electrical distribution system, and
geotechnical data
Evaluate condition and acceptability of
existing controls and switchgear for
compatibility with a wind system
8/1/12 to
12/31/12
Identification of
land and
regulatory issues
Project Management
Address site ownership and regulatory
issues, if any
9/1/11 to 10/31/11
Permitting and
environmental
analysis
Project Management
Contact USFWS, FAA, DOD, ACMP, and
SHPO for approval of conceptual design
9/1/11 to 12/31/12
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 8 of 19 7/21/2010
Assess and document any issues with
wetlands or telecommunications, including
mitigation efforts planned if necessary
Document community sentiment regarding
visual or sound issues
Detailed analysis
of existing and
future energy
costs and
markets
Project Management
Review historical power plant and electrical
consumption data
Identify building candidates for heat
recovery
Identify planned or proposed future
growth load for community
11/1/12 to
12/31/12
Assessment of
Alternatives
Project Management
Compare productivity of different wind
turbines and configurations for local wind
regime. Consider penetration level
benefits vs complexity.
Compare and contrast complicity of
equipment and wind penetration systems
with capacity and interest of community to
operate and maintain
Provide community with clear picture of
options available to them for wind-diesel
power production – solicit input into
decision
11/1/12 to
12/31/12
Conceptual
design analysis
and cost
estimate
Project Management
Include design of heat recovery system
utilizing engine jacket heat combined with
excess electricity from wind energy in
wind-diesel power plant design
11/1/12 to
12/31/12
Detailed
economic and
financial analysis
Project Management
Calculate rate for electricity that displaces
diesel through the heat recovery system
11/1/12 to
12/31/12
Conceptual
business and
operations plans
Project Management
Business and Operations Plan developed
for wind-diesel power plant w/heat
recovery system with participation from
community. Meet with utility board to
discuss and formalize.
11/1/12 to
12/31/12
Final report and
recommendation
s
Project Management
Community Meeting to Present Plan and
Announce Training Opportunities
Final Grant Report to AEA
11/1/12 to 3/30/13
3.4 Project Resources
Describe the personnel, contractors, equipment, and services you will use to accomplish the
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 9 of 19 7/21/2010
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.
G&K Electrical will be responsible for implementation and successful completion of the project.
G&K will confer routinely with the Aleutians East Borough and the City of Cold Bay while
simultaneously working with qualified consultants, general contractors, and wind turbine
vendors to develop and complete the project.
G&K will follow State policies as far as selecting firms and purchasing equipment, supplies, and
materials. Selection of firms and general contractors will be based on the type and amount of
past wind project experience of the firm as well as individual work experience, experience and
familiarity in the Aleutians East Borough region, and project cost.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
Gary Ferguson of G&K Electrical will coordinate overall project development. The Aleutians
East Borough will assist in this coordination by acting as the project liaison among all parties.
AEB staff will help coordinate all project team communications, meetings, and disseminate
information on a routine basis. The AEB will be responsible for all periodic progress reports to
the AEA.
3.6 Project Risk
Discuss potential problems and how you would address them.
There are potential problems in project logistics and construction in remote areas such as
Aleutians East Borough communities. Adverse weather conditions can also cause project delays.
Aleutians East Borough staff has much experience in setting up and managing community
development projects in AEB communities. Similarly, local labor has much experience, savvy,
and know-how to get the job done in adverse conditions such as poor weather. Good team
planning and reliance on local knowledge about community conditions help reduce the risk in
development projects in remote areas.
The US Fish and Wildlife Service were consulted about avian and environmental concerns.
Endangered waterfowl use the area so avian studies and careful placement of the met tower (and
later the turbines) will be necessary. Transmission lines may pose a threat to birds, and the avian
study will consider that and make recommendations if the cables should be buried or not. But the
transmission lines should be minimal as the proposed turbine site is close to the power plant.
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.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 10 of 19 7/21/2010
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.
Cold Bay may have class 7 wind with multiple sites for available for wind installation.
Accordingly, the wind resource could exceed the community’s electrical energy needs when the
wind is blowing. Several issues to resolve the use of this resource are integration with the existing
grid and addressing the possible affects to waterfowl.
Little biomass is currently available to offset home heating and hydrokinetic and solar energy do
not seem practical in Cold Bay, but the wind resource is good based on surveys of local
community members.
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.
G&K is the electric utility in Cold Bay. It was started by owner Gary Ferguson, who was hired
by the Department of Military Affairs in 1984 to build a power plant to supply emergency power
to the U.S. Air Force Base in Cold Bay. During this process Mr. Ferguson was asked by the State
to rebuild the electric utility for the community of Cold Bay. Over the next three years the electric
utility was completely rebuilt and G&K began operation in 1987. To meet the U.S. Air Force's
power requirements, G&K had to produce guaranteed uninterrupted power by maintaining a
spinning reserve of 100 kW, maintaining voltage within 5% and frequency within 1%, and be
able to start up dead generators to running capacity in five seconds or less. Because of these
requirements, G&K's power utility has never experienced an unexpected power outage. A drop in
power only occurs during scheduled maintenance. G&K continues to supply firm power to the
critical loads of the Air Force's Long Range Radar Site and the FAA's navigational equipment.
G&K operates the Cold Bay generation facility under RCC certificate #88 through the Regulatory
Commission of Alaska (RCA).
G&K provides power to approximately 61 residential, 53 commercial and 1 industrial customer
(FAA) in Cold Bay. Governmental customers are categorized as commercial customers. The
annual community power consumption (4-year Average) is approximately 2,600,000 kWh per
year, which includes only power sold to customers and does not include power that is used to
operate the power plant or power lost in distribution. In the past, when the military had a large
presence at the airport, the power consumption of Cold Bay was much higher than it is today,
with peak loads of 800 kW. In recent years the community power load has decreased because of
decreased military operations and a decrease in population. The four year average peak load is
now 328 kW.
The G&K generation system includes two Caterpillar 3512 diesel engines, 1200 RPM units,
directly coupled to Kato 2400 V , 0.8 PF 3-phase generators rated at 650 kW each; and one
Caterpillar 3512 diesel engine, 1200 RPM directly coupled to a Kato 2400 V, 0.8 PF generator
rated at 850 kW. All generators feed into a Brown Bovari Switch gear rated at 1,200-amps. The
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 11 of 19 7/21/2010
Switch gear is computer controlled and is fully automatic on demand. Typically the utility runs
one generator at a time and cycles through each generator every 720 hours. The average operating
efficiency of the generators over the last 12 months, from Dec 2008 to Nov 2009, is 13.53
kWh/gallon. The utility has reached an efficiency of up to 14 kWh/gallon, at times throughout the
year.
The generators were installed in 1987 and now have between 67,000 and 79,000 hours of
operation on them. The generators are well maintained and each one has been rebuilt at least
twice. G&K expects them to have a usable life of 150,000 hours.
G&K installed a heat recovery system designed to sell waste heat to the community when the
power plant was built in 1987. It consists of a manifold cooling system with a tube and shell heat
exchanger. A small fraction of the waste heat is used to heat all of G&K's buildings; these
buildings have a combined size of approximately 10,000 square feet. Currently, no waste heat is
used by the rest of the community.
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 Cold Bay Power Plant produces electrical energy by burning diesel fuel in engine-driven
generators. This satisfies a community power consumption of approximately 2,600,000 kWh per
year, (a four-year average). This consumption does not include power that is used to operate the
power plant, or power lost in distribution.
By integrating wind power into the existing system, our goal is to generate the same amount of
energy output, using substantially less fuel than is currently being used. Another goal is to use
any excess power produced from wind energy to heat water, which will further reduce the amount
of diesel fuel required.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Cold Bay is an isolated community located on the Alaska Peninsula, approximately 634 miles southwest
of Anchorage and 180 miles northeast of Unalaska. It is accessible only by air, ferry (twice per month in
the summer months), and barge transportation. The community experiences long and cold winter nights.
Severe winter storms are continuous.
Existing power consumption is approximately 2,600,000 kWh per year. Reliable power service
is essential for the Cold Bay Airport (a paved 10,415 foot runway with a 6,235 foot crosswind
runway) and all the supporting government offices/buildings (FAA, NOAA/Weather Service,
U.S. Coast Guard, DOT&PF, and Aleutians East Borough) and commercial enterprises such as
Pen Air, Evergreen Aviation, Frosty Fuels, and Aleutians Services. Other community users
include the U.S. Fish and Wildlife Service, U.S. Air Force facilities, two lodges, three guide
services, a store and bar, health clinic, school, City of Cold Bay buildings and facilities, post
office, and 36 residences. Wind power and the use of waste heat will ultimately lower monthly
electricity costs which keep increasing due to the reliance of fuel for power generation.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 12 of 19 7/21/2010
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
Cold Bay will use the Wind Study to determine the appropriate system and system design.
MarshCreek LLC has extensive experience with system design and has offered four different
turbines systems as a possibility for Cold Bay.
Remanufactured Vestas V-27
NorthWind 100
Nordtank 300kW Wind
Micon M530-250W
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.
There are several potential wind turbine sites in town that are owned by G&K, the City of Cold
Bay, and the Aleutians East Borough. These land owners are all agreeable to a potential wind
turbine project being sited on their land.
A potential out-of-town site is at the old fish hatchery located on Russell Creek. Underground
electrical cables are already in place as G&K provided power to the hatchery when it was in
operation. The King Cove Native Corporation owns the site and is agreeable to a lease by G&K.
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 waste heat portion of this grant is shovel ready except for one Right-of-Way permit. G&K
states this ROW will be easily obtainable. Other potential permits required of the project (for the
wind component) include:
Threatened Species (U.S. Fish & Wildlife)
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 13 of 19 7/21/2010
The USFWS is concerned about bird kills caused by birds flying into wind turbines, towers and
guy wires. They have not adopted a formal position against installing wind turbines. In fact, the
USFWS is in the process of installing vertical axis wind turbines at their complex in Cold Bay.
The USFWS staff in Cold Bay has expressed the position that at potential wind turbine sites the
flight patterns of birds should be assessed before turbine installation so that bird kills can be
minimized.
Aviation Considerations (FAA).
Because of the proximity of the Cold Bay airport to potential wind turbine sites in town, there
will need to be a hazard determination of the turbine site in relation to the runway.
Telecommunication Impacts (National Communications Information Administration and
the National Weather Service)
Wind turbines may interfere with communications signals by generating electromagnetic noise
and/or creating physical obstructions that distort communications signals. The Cold Bay airport
contains many government radar facilities.
4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will
be addressed:
Threatened or Endangered species
Habitat issues
Wetlands and other protected areas
Archaeological and historical resources
Land development constraints
Telecommunications interference
Aviation considerations
Visual, aesthetics impacts
Identify and discuss other potential barriers
Land development constraints
As all identified land owners are agreeable to a potential wind turbine located on their property,
the only potential land development constraints may arise from site location issues with:
Threatened or Endangered species (U.S. Fish & Wildlife)
Telecommunications interference (National Communications Information Administration
and the National Weather Service)
Aviation considerations (FAA)
Potential permit issues with the above will be addressed early in the project development process.
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
The wind study will need to be completed before cost and revenues can be fully developed.
However, the AEA Energy Model Community preliminary study has estimated the Wind Farm
capital costs at Cold Bay to be $1,760,000. We will approach the federal government (DOE) for
funding the next phases of the wind project. Overall annual savings are predicted at $71,723.
This study phase will cost $168,625. Detailed project development costs will be developed by
MarshCreek, LLC as a result of the feasibility study. Cold Bay expects to follow the Alaska
Energy Plans approach to reducing Project Cost Capitol based on the benefit to cost outcome
derived by the energy plan highlighted in yellow.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 15 of 19 7/21/2010
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.)
AEA estimated the O & M costs for a Wind—Diesel system in Cold Bay to be $19,377. Currently
the O & M costs at the diesel plant are not recoverable. The city is unable to charge an energy rate
that will cover the O & M costs because the customers can not afford energy at that cost. A more
accurate estimate of Wind-Diesel O & M costs will be developed by the Wind Study. Combining
wind into the diesel system will allow the Utility to keep energy pricing affordable to residents
without losing money on its O & M costs.
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 Wind Study will identify power/purchase sale information accurately. AEA estimates that
Wind-Diesel cost of energy as potentially $0.72 per kwH.
The AEP has provided the potential cost range of power from a wind-diesel system. The cost of
displaced fuel will be used as a pricing method for Cold Bay.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 16 of 19 7/21/2010
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
Download the form, complete it, and submit it as an attachment. Document any conditions or
sources your numbers are based on here.
MarshCreek LLC provided the costs for the wind study and pricing for wind turbines. Sources
sited for potential wind energy savings and costs came from the AEP document downloaded from
the AEA site.
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
According to the AEP study, Cold Bay has the potential to save $138,477 for heat recovery and
$71,723 for wind or over 40,000 gallons in displaced fuel annually. There have been no Proposed
Power Purchase Agreement price, RCA tariff, or cost based rates for the proposed wind-diesel
system developed at this time.
The people of Cold Bay would like to be less dependent on the variable price of diesel fuel, lessen
the environmental risks of fuel transport and storage hazards by requiring less diesel fuel to power
their community.
SECTION 6– SUSTAINABILITY
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 17 of 19 7/21/2010
Discuss your plan for operating the completed project so that it will be sustainable.
Include at a minimum:
Proposed business structure(s) and concepts that may be considered.
How you propose to finance the maintenance and operations for the life of the project
Identification of operational issues that could arise.
A description of operational costs including on-going support for any back-up or existing
systems that may be require to continue operation
Commitment to reporting the savings and benefits
The G&K Electric Utility currently operates the power plant and electrical distribution system in
Nelson Lagoon. The Utility will incorporate an O & M surcharge into its rate structure to recoup
the costs of operating and maintaining the renewable energy infrastructure. Actual O & M costs
will be determined once specifications are developed for the wind turbines to be installed as a
result of this study.
There will be a learning curve in operating the proposed wind-diesel system. Adequate training
and support will be budgeted during additional phases. Selection of the wind turbine system will
take into account surrounding communities systems already in existence. This will positively
contribute to the wind market penetration to support trained personnel.
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.
The Aleutians East Borough was awarded a $25,000 grant from the Alaska Energy Authority on
July 27, 2009 to perform a renewable energy resource feasibility study for the communities of
Cold Bay, False Pass, and Nelson Lagoon (the AEB contributed $5,000 cash and $10,000 in-kind
to the project). The study project was completed on May 18, 2010 and submitted to the AEA on
June 2, 2010. The study contains an analysis of existing energy power systems, potential
renewable energy resources, and recommendations for renewable energy projects in the three
communities. The study provides the basis for much of the information contained in this grant.
G&K and the Aleutians East Borough are currently receiving assistance from the Aleutian
Pribilof Island Association and Marsh Creek, Inc. to follow-up on the project recommendations
contained in the completed Renewable Energy Feasibility Study. Specifically, we are refining the
type of equipment specified in the plan as well as developing work plans for project
implementation. This work also provides the basis for much of the information in this
application. With this additional work to the feasibility study, G&K will be ready to proceed
immediately.
SECTION 8– LOCAL SUPORT
Discuss what local support or possible opposition there may be regarding your project. Include
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 18 of 19 7/21/2010
letters of support from the community that would benefit from this project.
The Cold Bay City Council and the Aleutians East Borough Assembly both passed resolutions in
public meetings in support of G&K’s Renewable Energy Fund Round IV Grant, entitled, “Cold
Bay Electric Grid Connect Wind Project with Electric Thermal Heat Recovery”. Please see the enclosed
resolutions.
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
Provide a narrative summary regarding funding sources and your financial commitment to the
project.
The expected cost of the feasibility study is $168,625. The Grant Budget Form is attached.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 19 of 19 7/21/2010
SECTION 9 – 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.
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 1.6.
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.
Print Name Gary Ferguson
Signature
Title Owner- G&K Electric
Date