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HomeMy WebLinkAboutSnettisham Transmission Line Application RoundIV_2010 Renewable Energy Fund Round IV Grant Application AEA 11-005 Application Page 1 of 14 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 14 7/21/2010 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Alaska Electric Light & Power Company Type of Entity: Investor Owned Utility Mailing Address: 5601 Tonsgard Court, Juneau, AK 99801 Physical Address same Telephone 907-463-6317 Fax 907-463-4833 Email Tim.McLeod@aelp.com ; General Manager 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Eric Eriksen, P.E. Title V.P. - Transmission & Distribution Mailing Address 5601 Tonsgard Court, Juneau, AK 99801 Telephone 907-463-6336 Fax 907-463-4833 Email Eric.eriksen@aelp.com 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) X An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer in accordance with 3 AAC 107.695 (a) (1), or A local government, or A governmental entity (which includes tribal councils and housing authorities); 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 14 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) Type in your answer here and follow same format for rest of the application. Snettisham Transmission Line Avalanche Mitigation 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. Answer here. The Snettisham Transmission Line extends 43.5 miles to the southeast of Juneau, Alaska, and provides the only power connection to this community’s primary hydroelectric resource. There are multiple areas of avalanche concern along this line; however the highest categorized priority is a section from 3 to 5 miles from the Snettisham plant. It is this highest priority section for which we are requesting grant fund assistance. 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind Biomass or Biofuels Hydro, including run of river X 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 X Design and Permitting Feasibility X Construction and Commissioning Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. A conceptual design report has been completed for the six towers of highest avalanche risk (LaRue, 2010). The report was based on experience and engineering resources gained during the 2008 and 2009 avalanche repairs. The recommended mitigation construction cannot be completed in one year; hence the requested funds would be used over a 2011-2012 period. In 2011, we propose to construct the replacement of tower 3/4 and structural modifications to existing towers 4/1, and 4/2 for an estimated $1,562,000. In 2012, we propose to construct a large steel diversion structure above tower 4/5 similar to one constructed in 2009 above tower 4/6. We also would construct a smaller diversion structure above tower 4/4 for an additional combined cost of $2,457,600. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 4 of 14 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 Snettisham Hydroelectric Power Plant is a State owned project administered by the Alaska Industrial Development and Export Authority (AIDEA) and operated by Alaska Electric Light & Power Company (AELP). This is a 78 MW power plant serving the primary electrical needs for Juneau (pop. 30,988). It is connected through a single 43.5 mile 138 KV transmission line in very rugged coastal mountain terrain. In 2008 and again in 2009, this line was hit by massive avalanches that accounted for 66 total days of hydroelectric interruption. The community of Juneau was placed in economic shock when electric service rates rose nearly five hundred percent in 2008 to $0.52/kwh in 2008 and $0.24/kwh in 2009, due to the cost associated with using 3,800,000 gallons of diesel fuel. The total fuel, repair, and mitigation efforts have exceeded $17.4M since 2008, in addition to $400K in annual forecasting and control work. If funds were appropriated to implement the proposed engineering changes, they would greatly improve reliable delivery of a hydroelectric resource and lessen the financial impacts of diesel fuel. 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. Alaska Electric Light & Power has invested approximately $2,000,000 for engineering studies and construction in 2009. The construction included a large diversion structure above tower 4/6 and a conductor bypass for tower 3/5. The conceptual design report outlines an additional $4,019,600 of construction costs needed to complete the remaining improvements. In addition to the $2 million already spent, Alaska Electric Light & Power can provide a twenty percent match to aid in completing these improvements for Juneau. 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. $3,215,680 2.7.2 Other Funds to be provided (Project match) $803,920 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $4,019,600 Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 5 of 14 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) $4,019,600 2.7.5 Estimated Direct Financial Benefit (Savings) $17,400,000 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.) $ Priceless The people of Alaska’s capital city, Juneau, depend on sustained delivery of renewable energy. These people or businesses will be more willing to invest in the future of Juneau, Alaska’s Capital, if there is less uncertainty to the future cost and availability of electric power. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 6 of 14 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. Alaska Electric Light & Power would be responsible for project management. The Company would assign the role of Project Manager to Eric Eriksen. He is a licensed professional engineer in the State of Alaska, and was acting Project Manager for the completed improvements. Mr. Eriksen has over eleven years of construction related experience at Alaska Electric Light & Power. 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.) Final Engineering Phase I 12/31/10 Material Delivery Phase I 5/31/11 Award Construction Contract & Mobilization Phase I 6/30/11 50% Completion (foundations) Phase I 8/01/11 100% Completion & Demobilization Phase I 9/01/11 Final Engineering Phase II 12/31/11 Material Delivery Phase II 5/31/12 Award Construction Contract & Mobilization Phase II 6/30/12 50% Completion (foundations) Phase II 8/01/12 100% Project Completion 9/01/12 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 Engineering Phase I 12/31/10 Material Delivery Phase I 5/31/11 Award Construction Contract & Mobilization Phase I 6/30/11 50% Completion (foundations) Phase I 8/01/11 100% Completion & Demobilization Phase I 9/01/11 Final Engineering Phase II 12/31/11 Material Delivery Phase II 5/31/12 Award Construction Contract & Mobilization Phase II 6/30/12 50% Completion (foundations) Phase II 8/01/12 100% Project Completion 9/01/12 Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 7 of 14 7/21/2010 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. Project Manager: Eric Eriksen of Alaska Electric Light & Power Company Engineering Services: Dryden LaRue Inc., Anchorage Geotechnical: Golder & Associates, Anchorage Survey: Dowl HKM, Juneau Construction Contracts: TBD - The 2009 work was completed by North Pacific Erectors of Juneau, and any electric work will be competitive bid to qualified Alaska electrical contractors. The technical aspects of the project have been continuation of existing contracts from the 2009 studies and construction. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. All contracts are task orientated deliverables. During construction weekly records of daily activities are submitted for approval. Alaska Electric Light & Power has administration policies in place to control accounting, procurement, and physical witness oversight. Each milestone submission will consist of a project manager update report and select construction photos. 3.6 Project Risk Discuss potential problems and how you would address them. Safety: Safety is always a risk on projects like this and held to a high standard along with appropriate insurance. Weekly construction team safety meetings are required. Environmental: There will be potential of small fuel spills from running small engine type equipment. This is commonly addressed with spill response kits and fuel storage containment. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 8 of 14 7/21/2010 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. This project is improving the sustained delivery of existing Snettisham 78 MW hydroelectricity across an avalanche-prone transmission line. From past experience, we expect to avoid as-much as six weeks of undeliverable hydropower. 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. The Snettisham Hydroelectric Power Plant is a State owned project administered by the Alaska Industrial Development and Export Authority (AIDEA) and operated by Alaska Electric Light & Power Company (AELP). This is a 78 MW power plant serving the primary electrical needs for Juneau (pop. 30,988). It is connected through a single 43.5 mile 138 KV transmission line in very rugged coastal mountain terrain. 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. Past outages related to avalanches have demonstrated up to six weeks of interrupted power delivery from Snettisham in any given year. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 9 of 14 7/21/2010 Repeated emergency rate increases covering the burden of diesel fuel will financially impact the economy of Juneau and not promote sustainability. This project will minimize this potential impact. 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 This is an existing transmission system with a 78 MW capacity. 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 transmission line is permitted within U.S. Forest Service property and owned by the State of Alaska agency, AIDEA. 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 A U.S. Forest Service amended permit was obtained covering the scope of this construction, which included biological studies. It is not anticipated that additional permitting would be necessary other than agency scoping/advisory meetings. 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 Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 10 of 14 7/21/2010  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 Environmental considerations were part of the 2009 studies. Due to re-occurring avalanche activities, there are few environmental barriers. An aviation flight plan was submitted to U.S. Forest Service to maintain a one mile separation from known eagle nests. 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 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.) N/A 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 Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 11 of 14 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. 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 Completion of this project will potentially offset as-much as 3,800,000 gallons of diesel fuel and $17,400,000 in costs, which was realized 2008-2009. SECTION 6– SUSTAINABILITY Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum:  Proposed business structure(s) and concepts that may be considered.  How you propose to finance the maintenance and operations for the life of the project  Identification of operational issues that could arise.  A description of operational costs including on-going support for any back-up or existing systems that may be require to continue operation  Commitment to reporting the savings and benefits Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 12 of 14 7/21/2010 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. To date we have conducted studies including: LIDAR survey, Avalanche potential force models, biological assessments, geotechnical considerations, and conceptual design. The construction of a large diversion structure for tower 4/6 has been completed. We can proceed immediately upon award to final design, and then the associated construction over two seasons would follow. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 13 of 14 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. This project has community wide support gathered through letters from Juneau’s Mayor, local businessmen, and local Juneau legislative delegation. 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. Alaska Electric Light & Power has currently invested about $2,000,000. The grant request is for an additional $3,215,680 and the company will commit additional matching funds up to $803,920 for completion of the project. Renewable Energy Fund Grant Application Round IV AEA11-005 Grant Application Page 14 of 14 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 Eric Eriksen Signature Title V.P. – Transmission & Distribution Date 9-15-2010