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HomeMy WebLinkAboutChefornak Wind Turbine_AEA_Grant_R3 Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA 10-015 Application Page 1 of 42 10/7/2009 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) City of Chefornak Type of Entity: Local Government Mailing Address P.O. Box 29 Chefornak, AK 99561 Physical Address 300 Second Street Chefornak, AK 99561 Telephone (907) 867-8147 Fax (907) 867-8704 Email citychefornak@yahoo.com 1.1 APPLICANT POINT OF CONTACT Name Bernard Mael Title Administrator Mailing Address P.O. Box 29 Chefornak, AK 99516 Telephone (907) 867-8147 Fax (907) 867-8704 Email citychefornak@yahoo.com 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer in accordance with 3 AAC 107.695 (a) (1), or 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. Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 2 of 42 10/7/2009 SECTION 2 – PROJECT SUMMARY This is intended to be no more than a 1-2 page overview of your project. 2.1 Project Title Chefornak Wind Turbine Installation 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 proposed project is to be located on the eastern edge of the City of Chefornak, Alaska. The City of Chefornak and its residents will be the beneficiary of the proposed project. 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 X Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas Heat Recovery from existing sources Hydrokinetic Solar X 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. The Chefornak Wind Turbine Installation involves the installation of three (3) 100 kW wind turbines on the eastern edge of the City of Chefornak. The completed project, with a total size of 300 kW, will be owned by the City of Chefornak and operated by the Naterkaq Light Plant (NLP). The NLP is wholly owned by the City of Chefornak and the electricity produced by the installed turbines will be distributed to the utility without charge. The wind turbines will be connected into NLP’s electrical distribution system through a new three phase distribution line running from the project site to the existing power plant. The project will offer benefits to the community of Chefornak and its electric customers through a system-wide reduction and stabilization of energy prices. The City of Chefornak has assembled a project team headed by STG Incorporated that is prepared to immediately begin work on an accelerated schedule. Among others, the project team includes members from Powercorp Wind Diesel North America, DNV Global Energy Concepts Inc, Erricos Engineering, Alaska Line Builders, Duane Miller Associates, Hattenburg Dilley & Linnell, BBFM Engineers and Aurora Consulting. All aspects Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 3 of 42 10/7/2009 Direct Labor and Benefits $ 15,000 Travel and Per Diem $ - Equipment $ 1,898,475 Materials and Supplies $ 331,128 Contractual Services $ 1,191,294 Construction Services $ 1,083,008 Other Direct Costs (Land) $ 80,000 TOTAL PROJECT COSTS $ 4,598,905 of the Final Design/Permitting and Construction project, detailed in the following pages of this application, can be completed by March 2011 or sooner if grant funds are made available prior to July 1, 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.) Annual energy production estimates for the Chefornak wind project are 935,799 kWh with an estimated diesel fuel displacement of approximately 39,790 gallons per year. Considering Chefornak’s most recent delivery of diesel fuel, priced at $3.19 per gallon, the project is estimated to reduce fuel costs for the utility by $126,930 in the first year of operation if oil prices remain flat. This project has also been designed to incorporate flywheel integration components for more encompassing community wide energy solutions that will further reduce the community’s reliance on fossil fuel based energy supplies in the future. As additional funding and technology becomes available to incorporate a larger conversion to a renewable based energy supply in Chefornak (for electricity, heating, and transportation needs), the community will have the infrastructure in place to capitalize on existing renewable energy supplies without the need for additional infrastructure upgrades. Other benefits of the Chefornak wind project include the reduction of atmospheric pollution, a contribution towards decreased reliance on imported fossil fuels (national security) and the sale of green tags which has been estimated at $5,148 annually. The projected benefit/cost ratio for this project is 1.21, payback is estimated to 23.9 years and the rate of return is estimated to be 1.22%. Details regarding our analysis are located in Section 4.4.3 of this application. 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. Project production and cost estimates, generated from independent analysis and contractor estimates, are summarized below: The Chefornak wind project has advanced through Phases I and II activities and is ready for Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 4 of 42 10/7/2009 Phases III and IV activities. Much of the cost of Phase I and II were borne by third-party researchers, however, project team members have substantial contributions in project conceptual design and initial feasibility studies. The total grant request for the Chefornak wind project is $4,000,000 based upon the following: Total Phase III Costs $2,206,475 Total Phase IV Costs $2,392,430 Total Project Costs $4,598,905 Less: Project Match (City of Chefornak) ($95,000) Less: Additional Non-AEA Funding ($503,905) Total Grant Request $4,000,000 The additional investment of $95,000 (Project Match) is inclusive of $80,000 of land contributed by the City of Chefornak and $15,000 in labor contributed by the City of Chefornak. Additional non-AEA project contributions are currently being sought from various local, state, and federal entities. 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. $4,000,000 2.7.2 Other Funds to be provided (Project match) $95,000 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $4,095,000 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) $4,598,905 2.7.5 Estimated Direct Financial Benefit (Savings) $126,930 Year 0; $5,849,474 Cumulative 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.) $5,148 Annual Green Tag Sales; $128,700 Cumulative Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 5 of 42 10/7/2009 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 a resume and references for the manager(s). If the applicant does not have a project manager indicate how you intend to solicit project management support. If the applicant expects project management assistance from AEA or another government entity, state that in this section. The City of Chefornak will hire James St. George, President of STG Incorporated (STG), as the project manager for the Chefornak wind project. STG is one of Alaska’s premier construction services and management companies and has direct experience completing projects in the community. Dealing mainly in rural Alaska, the company has played a major role in high profile projects such as wind energy installations, communication tower installations, and community bulk fuel and diesel generation upgrades. STG specializes in remote project logistics, pile foundation installations, tower erections and construction management. STG has managed and constructed many of the Alaska Energy Authority’s and the Alaska Village Electric Cooperative’s bulk fuel facility and rural power system upgrade projects. STG’s core competencies include bulk fuel systems, power plant construction, wind farms and pile foundations. Additionally, STG served as United Utilities’ preferred contractor for its “Delta Net Project”, which involved the installation of communication towers and related equipment throughout the Yukon Kuskokwim Delta, including Chefornak. STG has achieved this preferred status by demonstrating competitive rates and the ability to perform in remote locations with extreme logistical challenges. Moreover, STG has been selected as the manager for the Chefornak project due to their success implementing one of the only Renewable Energy Fund projects (Unalakleet Wind) that has been taken from conception to completion to date. As project manager, James St. George will be responsible to the City of Chefornak for project recommendations for approval, direct project oversight in accordance with city policies and procedures on labor and contractor management, equipment procurement and mobilization, review of plans and specifications, on-site inspections, review and approval of work and other project management duties assigned by the city of Chefornak. References for James St. George and STG include: Krag Johnsen, Chief Operating Officer, Denali Commission 510 L Street, Suite 410, Anchorage, AK 99501 Phone (907) 271-1413, Fax (907) 271-1415 kjohnsen@denali.gov Meera Kohler, President/CEO, Alaska Village Electric Cooperative 4831 Eagle Street, Anchorage, AK 99503 Phone (907) 565-5531, Fax (907) 562-4086 mkohler@avec.org Timothy F. Gould, P.E., CH2M Hill 301 West Northern Lights Boulevard, Suite 601 Phone (907) 646-0280, Fax (907) 257-2025 tgould@ch2m.com Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 6 of 42 10/7/2009 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.) Below is a project schedule for the Chefornak wind installation. Note that Phase I and II tasks are anticipated to be completed prior to receipt of grant funding. The grant-funded portion of the project will begin with Phase III and continue through Phase IV. Work will begin with grant funding as soon as it is made available and continue through the erection of wind turbines and system integration activities during the Spring of 2011. Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 7 of 42 10/7/2009 Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 8 of 42 10/7/2009 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.) Below are the key project milestones, by project phase, and anticipated completion date. Phase I and II Tasks (Reconnaissance, Analysis & Desig MONTH 1 MONTH 2 MONTH 3 MONTH 4 MONTH 5 MONTH 6 MONTH 7 MONTH 8 MONTH 9 1. Initial Renewable Resource Review 2. Existing Energy System Analysis 3. Preliminary System Design 4. Proposed System Costs Estimations 5. Proposed System Benefits 6. Energy Market/Sales Analysis 7. Permitting Review 8. Analysis of Environmental Impacts 9. Land Ownership Development 10. Preliminary Analysis and Recommendations Phase III Tasks (Final Design and Permitting)12. Project Management 11. Project Management 12. Finalize Energy Production Analysis 13. Finalize Land Agreements and ROW 14. Perform Geotechnical Analysis 15. Finalize Foundation Designs 16. Finalize System Integration Designs 17. Turbine/Integration Equipment Procurement 18. Apply for/Obtain Permits 19. Finalize Operational Business Plan Phase IV Tasks (Construction, Commissioning, Operation)22. Project Management 20. Project Management 21. Foundation Material Procurement 22. Mobilization and Demobilization Costs 23. Site Access and Foundation Installation 24. Power Storage/Flywheel Foundation Pad 25. Transmission/Distribution Line Installation 26. Tower/Turbine Erection 27. Construction Survey/As-Built Diagrams 28. System Integration 29. System Calibration July August September October November December January February March 2011 CompletedProject Tasks COMPLETED 2006 - 2009 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. The Chefornak Wind Turbine Installation project will be under the overall direction of Bernard Mael, Administrator for the City of Chefornak, while the project manager will be James St. George, President of STG Incorporated. Personnel: City of Chefornak Administrator, Bernard Mael, will have ultimate responsibility over project decisions and will ensure that all grant requirements are fulfilled. Mr. Meal will be assisted by city clerks Charlene Erik and Theresa Jimmy who will oversee grant accounting functions, and, the Naterkaq Light Plant operators Joe Abraham and Andrew Kilanak, who will coordinate new line extensions and wind turbine integration work with the project manager. Contractors: James St. George (STG) will be the project manager of the Chefornak project. STG will manage all project labor, consultants, procurement, construction contractors; review all plans and specifications and all project work; conduct on-site inspections, and perform other Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 9 of 42 10/7/2009 management functions to ensure project objectives are attained. The City of Chefornak and STG have established contractual relationships with Alaska’s most experienced team of wind-diesel professionals to execute this project, including DNV Global Energy Concepts, Erricos Engineering, Powercorp Wind Diesel North America, Duane Miller and Associates, Hattenburg, Dilley & Linnell, BBFM Engineers, Alaska Line Builders, B2 Networks and Aurora Consulting, among others. The organizational chart on the following page shows the key project partners and their roles with the project. Chris Schimschat Clinton White VP, Field Operations Dave Myers Project Manager Brennan Walsh Project Engineer NORTHERN B2 NETWORKS DUANE MILLER BBFM HATTENBURG DILLEY & AURORA GEC POWER SYSTEMS NETWORKS ASSOCIATES, LLC ENGINEERS LINNELL CONSULTING Sales, O/M,Erin McLarnon Gregory Errico, P.E. Charles Baird Tom Bohn Richard Mitchells, P.E. Troy Feller, P.E. Scott Hattenburg, P.E.Ann Campbell Kevin Smith Engineering Support General Manager Principal CEO Principal Project Engineer Principal Principal Principal Director Electrical Integration Power/Communication Communication Geotechnical Structural Project Permitting Project Performance Design Line Construction Design Engineering Engineering Reporting Modeling Suppliers Sub-Contractors Land Owner Project Owner Turbine Supplier ERRICO ELECTRICAL ENGINEERING, LLC Integration Partner: Supply, Engineering, Support Project Manager, General Contractor James St. George, President POWERCORP WIND DIESEL NORTH AMERICA STG INCORPORATED Dir., Business Development ALASKA LINE BUILDERS Chefarnrmute Inc. Robert Panruk, Chairman City of Chefornak Sarah Buckles, Mayor DNV Global Energy Concepts Inc. (Director: Kevin Smith) will provide validation and analysis of wind resources. GEC is a multi-discipline engineering and technology consulting firm providing services to clients involved in the energy industry. Recognized as a leader in the wind energy industry, the firm specializes in the analysis, design, testing and management of wind energy systems and projects. GEC supported the Kotzebue Electric Association with wind resource assessment and power performance testing tasks; is siting met towers at several locations in southeast Alaska, worked with AEA on power performance testing at Toksook Bay, completed all performance and optimization modeling for the Unalakleet wind installation and performed site assessments at U.S. Air Force Long Range Radar Stations along Alaska’s west coast. Duane Miller Associates, LLC (Principal: Duane Miller, P.E.) will provide geotechnical engineering services. DMA engineers are peer reviewed and recognized experts in cold regions geotechnical engineering as well as unfrozen ground geotechnical engineering. DMA geotechnical engineering project experience ranges from small rural projects to large industrial and defense projects. DMA has also provided geotechnical engineering services for wind energy installations across the state of Alaska including projects in Unalakleet, Nome, and Quinahagak, among others. BBFM Engineers (Principal: Troy Fellers, P.E.) will provide structural engineering services. BBFM has provided structural engineering design services to military and civilian clients throughout Alaska. BBFM has particular expertise in rural Alaska; completing more than 80 building and tower projects in western Alaska. Additionally, BBFM has designed tower foundations in 12 different villages in soil conditions ranging from marginal permafrost in deep Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 10 of 42 10/7/2009 silty soils to mountain-top bedrock and wind energy installations across the state of Alaska including projects in Unalakleet, Nome, and Quinahagak, among others. Hattenburg, Dilley & Linnell (Principal: Scott Hattenburg, P.E.) will provide project permitting and environmental services. HDL specializes in civil, geotechnical and transportation engineering as well as providing permitting and environmental services. HDL has extensive experience with rural energy projects and working with rural communities including the recent completion of permitting and environmental review for the Unalakleet, Hooper Bay, and Chevak wind projects, among others. Powercorp Wind Diesel North America (General Manager: Erin McLarnon) will provide integration engineering/support and supply key energy management equipment. Powercorp Wind Diesel North America is a wholly owned subsidiary of Powercorp Pty. Ltd., a company with 20 year history of implementing successful, high penetration wind-diesel systems across the globe. Internationally, Powercorp possesses one of the strongest track records of high performance, high penetration wind-diesel systems having completed projects in Mawson and Ross Island, Antarctica, Flores Island off the coast of Portugal, along with installations across Australia. Powercorp has had a presence in Alaska since 2003. Errico Electrical Engineering, LLC (Principal: Gregory Errico, P.E.) will provide electrical engineering services regarding installed power poles/lines for the project and integration documentation. Errico Engineering and STG have partnered with various power/infrastructure projects across the state, most recently with the completion of Unalakleet’s wind installation made possible through Alaska’s Renewable Energy Fund program. Alaska Line Builders (Principal: Steve Foster) will provide power and communication line installation services. Alaska Line Builders (AKLB) is an outside electrical contractor that covers a wide area of power and telecommunications work. The project manager, STG and Alaska Line Builders have successfully collaborated in the implementation of other renewable energy projects made possible through Alaska’s Renewable Energy Fund including the recently completed wind turbine installation in Unalakleet. B2 Networks (Principal: Tom Bohn) will provide communication engineering services. B2 is leading provider of managed IT projects and consultation services within the state of Alaska. The company has designed and installed communication solutions for wind projects across the state including operational wind farms in Nome and Unalakleet. Aurora Consulting (Principal: Ann Campbell, M.B.A.) will provide project planning and business planning services. Aurora Consulting has over 30 years of experience providing business and management consulting services throughout Alaska to a wide variety of governmental and private entities. Additionally, Aurora Consulting has assisted with the development of business operating plans for over 75 rural utility projects, including water/sewer projects, bulk fuel projects, electric utilities, hydro-electric projects and wind generation projects. Suppliers: The Chefornak wind installation will follow purchasing procedures that meet the standards defined in the sample AEA Grant Agreement for project supplies. Through the conceptual design planning efforts completed during Phase I and II activities, it has been determined that the two most critical equipment suppliers for the Chefornak wind installation will be the entities supplying wind turbines and energy management equipment. Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 11 of 42 10/7/2009 Project members have determined that the Northwind 100 kW wind turbine manufactured by Northern Power would be the most appropriate wind turbine for this project. This determination has been based on Northern Power’s market leading position within the state of Alaska, the company’s past experience leading training seminars for rural Alaskan wind-diesel system operators, short turbine delivery schedule, low cost relative to other utility-scale wind energy systems currently available, and the security of working with a turbine manufacturer that has demonstrated a commitment to the Alaska market. As a result, project members believe that the installation of this particular turbine model is the most attractive choice of those currently available. Members from Naterkaq Light Plant (NLP) will attend wind turbine training from the manufacturer prior to the completion of this project during the summer of 2010. Conceptual planning and design work to date has anticipated use of key energy management equipment manufactured by Powercorp. Nonetheless, and due to both strong demand for this technology in the global marketplace along with our inability to secure a fixed delivery schedule and fixed price of this key equipment without a secured down payment, it is possible that the costs and delivery schedules of these components (both turbines and energy management equipment) may become less attractive by the time grant funds are released. While we believe that we could obtain comparable delivery schedules and costs similar to those quoted to our team at that time, we feel that purchasing decisions should be revisited once awards for this grant are announced. Equipment: All of the major construction equipment required for the Chefornak wind installation will be supplied by STG. STG maintains one of the largest fleets of heavy equipment on Alaska’s west coast and will provide the following to execute the project as proposed: Caterpillar 980G loader, bucket forks Caterpillar 345B excavator Ingersoll -Rand ECM 370 Drill Caterpillar 287 Skidsteer D-19 Pile Hammer Lincoln 400 Portable Welders Fondu Pump and Hoses Jobsite Snowmachines Seld for D-19 Dozer Kabota 6 Wheeler 1 pickup trucks 4x4, crew cabs Resumes and general information for key personnel, contractors and suppliers is included in Section 10: Additional Documentation and Certification. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. As the grantee, Chefornak Administrator Bernard Mael will be the point of contact between the City of Chefornak and the Alaska Energy Authority. As such, Mr. Mael will be responsible for submitting AEA monthly progress and financial reports, unless outside assistance is requested, which will summarize the progress made during the reporting period and identify any difficulties Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 12 of 42 10/7/2009 in completing tasks or meeting goals or deadlines as well as financial reports. The AEA format will be utilized for these reports. In addition, the project manager, STG, will be responsible to monitor the project activities and to coordinate with the City of Chefornak for all reporting activities. STG will coordinate team meetings to outline daily objectives and issues and will communicate with the City of Chefornak’s Administrator to identify any outstanding issues and suggested resolutions on a weekly basis. Additionally, STG will provide the City of Chefornak information for the AEA required monthly and quarterly reporting. STG will focus on variance analysis, comparing actual project results to planned or expected results; a summary of tasks completed during the reporting period; a summary of tasks scheduled for completion in the next reporting period; and, identification of project challenges and problems. STG will provide the information to the City of Chefornak in the approved AEA format for these reports. Change Process: The information contained within the project plan will likely change as the project progresses. While change is both certain and required, it is important to note that any changes to the project plan will impact at least one of three key success factors: available time, available resources or project quality. The decision by which to make modifications to the project plan will be coordinated using the following process: Step 1: As soon as a change that impacts project scope, schedule, staffing or spending is identified, the project manager will document the issue. Step 2: The project manager will review the change and determine the associated impact to the project and will forward the issue, along with a recommendation, to the City of Chefornak and/or AEA for review and decision. Step 3: Upon receipt, the City of Chefornak Administrator, project manager and/or AEA should reach a consensus opinion on whether to approve, reject or modify the project plan based upon the project manager’s recommendation and their own judgment. Step 4: Following an approval or denial, the project manager will modify the project plan and notify all the affected project partners. 3.6 Project Risk Discuss potential problems and how you would address them. If constructed, the Chefornak wind project would become the first true high-penetration wind- diesel system operating in the state of Alaska. As such, the project planning must incorporate an ongoing analysis of potential problems and strategies to address them. Outlined below are the key issues the project is anticipated to encounter: Issue #1: Coordinated integration; matching wind to the community. Strategy to address: The value of a variable wind resource is maximized through the integrated operation of both generation equipment and loads. This is accomplished with automated control systems and ability to rapidly visualize, diagnose and make adjustments. This is enabled by remote monitoring and diagnostics. Data, information and observations obtained from operational monitoring are necessary to ensure on-going performance and reliability. Each major system component will be monitored and its Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 13 of 42 10/7/2009 performance recorded and reported automatically. This information will be readily available locally and through internet based portals. This information will allow the system to be continuously recommissioned, insuring confirmation or proper operation of all controls, communications and system components. Issue #2: Stabilization of the energy system during high-penetration performance. Strategy to address: The completed system will enable the entire community to run “diesels off” and have all electricity needs met by wind generated electricity as conditions allow. This design allows for the greatest fuel savings possible, but also requires sophisticated controls to manage energy flow (both production and demand). The project team will use a flywheel/inverter to dampen energy demands and maintain appropriate frequency and voltage requirements across Chefornak’s distribution system. Issue #3: Powerline access routing and design. Strategy to address: Overhead powerlines will need reliable wind and ice loading states for their design life in order to serve as adequate powerline structures. Permafrost and seasonal frost forces as well as groundwater will impact both the route alignment and powerline performance. If icy soils are encountered along the alignment, thaw strains can be expected. Trench backfill may increase trench drainage with potential piping of fill along the powerline and final routing will take these options into consideration. Issue #4: Constructing a cost-effective tower foundation. Strategy to address: Foundation design will be developed with both the contractor and engineers, working together as a team, to determine appropriate materials and systems for the site. Duane Miller Associates, BBFM Engineers, and STG have successfully collaborated on many other communication tower and wind tower foundation designs in remote Alaskan locations (including with the completed/installed 105’ communication tower located within proximity to wind installation site). Getting contractors input up front at the concept stage of design will allow for an appropriate foundation system to be developed. Final foundation design is also likely to be comparable to the foundation solution implemented at the adjacent UUI communication tower. Through review of this particular foundation (studied, designed and built by the same project team of Duane Miller, BBFM, and STG), the project team believes that the most structurally sound and cost effective foundation solution will be a driven pile/rock anchor combination design. Issue #5: Developing a tower foundation design that can be adapted for unforeseen field and geotechnical conditions. Strategy to address: Design and selection of foundation systems that can be modified in the field will allow us to overcome unforeseen conditions. This also applies to the quantity of foundation materials that will be transported to the site. Soil conditions will be monitored closely throughout the foundation installation period. Issue #6: Cold weather operations/turbine icing. Strategy to address: It is anticipated that the turbines will experience icing conditions which will result in the loss of potential energy production. While these losses have been Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 14 of 42 10/7/2009 included in the production estimates and anticipated in the system design, reducing these losses represents a significant opportunity to improve project economics. Several approaches to increasing production have been proposed and will continue to be considered including special blade coatings, careful selection of materials and the addition of special heaters and sensors inside of turbine blades/nacelles. The turbines selected for this project have the most extensive operating history in Alaska compared to other wind turbines. The turbines are designed for arctic operation and documented performance data from existing Alaska projects has been utilized in performance modeling and development of best practices for arctic wind turbine deployment. Issue #7: Operations and maintenance. Strategy to address: Proper operations and maintenance can only be carried out by qualified and trained personnel who are suitably equipped with tools, spare parts, training and other necessary resources. Because of the volume of Northwind 100 turbines deployed across the Yukon Kuskokwim Delta, a sufficient concentration of technical personnel capable of performing the majority of operations, repair and maintenance activity will be available regionally. Additionally, at least two local technicians from Chefornak will attend wind training at the manufacturer’s facility in Vermont prior to the completion of the project to ensure that local operators will be able to manage the installed system. The proposed design is technically simple and has been proven to work reliably and effectively across the globe. The system can operate without any individual component, the only effect being a lower utilization of the wind system and decreased fuel savings. Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 15 of 42 10/7/2009 SECTION 4 – PROJECT DESCRIPTION AND TASKS š Tell us what the project is and how you will meet the requirements outlined in Section 2 of the RFA. š The level of information will vary according to phase(s) of the project you propose to undertake with grant funds. š 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. š 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 annual average wind speed in Chefornak is estimated to be 7.1 m/s (at a 30 meter height) based on wind studies completed by the Alaska Energy Authority in the nearby communities of Nightmute, Toksook Bay, Bethel, Kongiganak and Mekoryuk. The wind resource in Nightmute, Toksook Bay, Bethel, and Kongiganak were measured through the installation of 30 meter meteorological towers and further correlated against longer term recorded data from the AWOS station located in Mekoryuk. AEA concluded in a March 2006 report indicate that Chefornak possesses an “outstanding” wind resource (wind power class 6) and would be a suitable consideration for wind power development. While our project team supports AEA’s initial analysis, further documentation of the wind resource in Chefornak is being obtained through localized wind/temperature measurement. Wind data will recorded through the installation of a 30 meter meteorological tower at the proposed project site and will be correlated against other existing wind data sets from across the region to further refine production estimates prior to the announcement of grant funding availability. The project team has scheduled the installation of this tower for later this month. In addition to the wind resource, a number of other factors impact the viability of a wind-diesel project, including the cost of diesel fuel displaced, the cost of installing and operating the wind power equipment and the ability to service the wind equipment after installation. Computer modeling (HOMER) was performed to compare the economic and technical potential of different wind power options for Chefornak. A 300 kW capacity, high-penetration wind power project in Chefornak as proposed in this application would displace up to 39,790 gallons of diesel fuel per year (48% of the diesel fuel currently used for electricity generation and 8% of the heating fuel used for space heating in the community). From 2006 to 2009, the price of diesel in Chefornak, like the rest of rural Alaska, has risen dramatically to $5.37/gallon as an average price for fuel delivered to Chefornak last year. This factor has contributed to the City of Chefornak’s interest in creating Alaska’s first community-wide high penetration system to achieve the greatest fuel savings possible. While other potential sources of renewable energy supplies such as river or tidal power are believed to exist, the relative immaturity of these technologies makes them a less attractive solution for reducing energy costs in comparison to wind. Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 16 of 42 10/7/2009 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 Naterkaq Light Plant (NLP) is wholly owned by the City of Chefornak and consists of a pre- engineered metal building supported by a pile foundation. The plant recently underwent a substantial upgrade through the Alaska Energy Authority’s RPSU program. The new power plant has been on-line for just over a one year period and provides electricity for the City of Chefornak (93 unique accounts). Electricity generation at NLP is provided by two 371 kW and one 179 kW John Deere generators. NLP’s power generation system consists of diesel powered generators, as outlined below: Brand Size (kW) Age (Y) Avg. Efficiency (kWh/Gal. Diesel) John Deere (6081AF) 179 kW 1 12 John Deere (6125H) 371 kW 1 13.5 John Deere (6125H) 371 kW 1 13.5 Currently, no heat recovery system or dump load boilers are being utilized at the power house. The average efficiency of the entire plant is estimated to be 12.74 kWh/gal. In addition to the fuel savings that would be realized through the addition of wind generated electricity on the NLP, the project team believes that it will also be able to increase efficiency at the power plant by using an integrated flywheel to stabilize loading on existing generators so that they are loaded at more controlled/consistent and efficient levels. 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. NLP uses diesel fuel to generate electricity for all of its customers in the community. In 2008, NLP consumed 72,774 gallons of diesel for power generation purposes. During this past summer (2009), the City of Chefornak made their annual fuel purchase at a delivered price per gallon of $3.19. As with other rural Alaska communities, the price of diesel fuel is rising exponentially. From 2003 to 2008, the price of diesel fuel delivered to Chefornak increased by more than 250% before retreating to the most recent price. It is anticipated that as the larger world economies begin to recover from recession, 2008 prices will be seen again in the community of Chefornak. According to project planning estimates, the Chefornak wind turbines will generate approximately 936 MWh annually. Based upon existing diesel-generator efficiency of 12.74 kWh/Gal (a number our team believes can also be improved through the implementation of the project proposed in this application) and anticipated energy losses with the installed turbines, the City of Chefornak would realize an annual savings of 39,790 gallons of diesel fuel per year (diesel generation and heating fuel savings combined). At an estimated delivered price of $3.19 per gallon, the city would realize annual savings of $126,930 during the first year of operations if oil prices remain stable. Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 17 of 42 10/7/2009 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The Naterkaq Light Plant (NLP) serves the community of Chefornak and the majority (84%) of NLP customers are residential (single phase) customers, with commercial customers constituting (9.7%) of total electricity customers. Customers – 2008 Residential 84 90.3% Commercial 9 9.7% Total 93 100% Currently, the largest class of kWh consumers of NLP-generated electricity is residential customers (78% of total sales) followed by commercial customers (22% of sales). kWh Sold – 2008 Residential 78% Commercial 22% Total 100% Other than government positions, most employment in Chefornak is seasonal, supplemented by subsistence activities. Thirty-four (34) residents hold commercial fishing permits for herring roe and salmon fisheries. Coastal Villages Seafood, Inc., processes halibut and salmon in Chefornak. Trapping is also a source of income. The project has the potential to provide less expensive energy for all community members, strengthen Chefornak’s economy over the long term (20+ years), and will assist the State of Alaska in reducing the need for Power Cost Equalization (PCE) payments. The limits of the PCE program hinder how much energy a person can receive state assistance with and does not benefit commercial customers. A wind project would benefit all NLP consumers through reduced operating costs and a more stabilized community wide cost of energy. 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: š A description of renewable energy technology specific to project location š Optimum installed capacity š Anticipated capacity factor š Anticipated annual generation š Anticipated barriers š Basic integration concept š Delivery methods Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 18 of 42 10/7/2009 System Overview Wind-diesel power systems are categorized based on their penetration levels and categorized as low penetration, medium penetration, high penetration and high penetration diesel off configurations. As the level of penetration increases, the average proportion of wind generated energy to the total amount of energy supplied to the system, the degree of communication between existing power generation facilities, and the installed wind energy system in general increases in complexity. It has been demonstrated that low penetration systems, ones in which the proportion of wind generated energy to total generated energy rarely does not exceed 30%, require few modifications to the existing diesel systems, but are generally less economical due to limited fuel savings in comparison to total installation costs. This is especially true for systems designed for rural Alaskan communities because of the fixed installation costs - primarily the cost of transporting the heavy construction equipment and foundation materials needed to complete village power systems. These costs are incurred regardless of the total size of the project. In efforts to construct a system that considers the realities of these cost issues, this application documents a high penetration diesel off system design that aims to maximize the absorption of available wind energy while keeping power quality high and reducing diesel generation costs as much as possible for the community of Chefornak. Furthermore, and as a result of the estimated penetration levels of the proposed system, specific equipment and operating changes are proposed to be integrated into Chefornak’s existing infrastructure. The system design proposed in this application is new to the Alaska market, but proven through installations across the globe in some of the most remote locations on the planet. The aim of this proposal is to implement a similar, high-penetration diesel off wind energy system that is based on the following objectives: š Maximize fuel savings through the implementation of a system design that will deliver the highest cost to benefit ratio possible š Maintain high power quality and system stability while providing diesel off capabilities š Utilize standardized, proven and scalable commercial components that will provide opportunities to use additional renewable energy supplies in the future to further reduce community wide energy dependence on fossil fuels (electrical, heating, and transportation) š Implement system components that will be similar in design to others within the region to capitalize on economies of scale and an expanded knowledge base The system architecture proposed in this application consists of four primary elements: š Three (3) 100 kW NorthWind 100 wind turbines š An energy stabilization/storage system consisting of flywheel-inverter components š A distributed integrated control system š A heat recovery boiler to capture any excess wind energy It is believed that the implementation of this proposed wind installation will also provide significant opportunities to further develop Alaska’s knowledge base regarding wind energy systems and capitalize on economies of scale through the use of a one of the most commonly deployed and proven turbines within the Alaska market. System Architecture Wind Turbines During the conceptual design phases of this project, various turbines were evaluated based on a variety of criteria. These considerations included estimated delivered price of all wind turbine Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 19 of 42 10/7/2009 components (generator, blades, tower, controls, etc.), estimated delivery schedule, expected performance, rated output, community load profiles/energy demands, performance statistics of units currently operating in the Alaska market and total estimated savings. Through this analysis, project partners have determined that the Northwind100 turbine manufactured by Northern Power is the most attractive unit currently available to support project objectives and funding limitations. The Northwind turbine’s permanent-magnet, direct drive architecture is well suited for rural Alaska operation. That architecture overcomes many of the challenges of connecting old-style induction generators to electrical distribution grids, provides increased reliability and reduces anticipated operational costs. The permanent-magnet generator is connected to a full power converter that converts its variable, low-frequency, alternating-current output to direct current, then back to tightly regulated alternating current during output. The permanent-magnet generator requires no reactive power to energize its magnetic field, removing that influence. The power converter also provides a broad degree of control over the form and quality of the power output. The active controls in the power converter allow reactive power to either be consumed or produced by the Northwind 100 regardless of its real power output, even in the complete absence of wind. Thus, the turbine controls allow power output to be controlled by dynamic grid conditions, including automatic output reduction or complete shutdown. The combination of advanced controls and integrated disk braking allows gradual ramping of turbine output up or down, reduced flicker and a maximized supply of usable power. This application proposes that three (3) 100 kW Northwind turbines be installed on top of a 37 meter tubular towers on the eastern edge of the City of Chefornak. Through computer (HOMER) and additional financial modeling, project members evaluated the Net Present Costs of various turbines and system configurations. This analysis has indicated that a three turbine installation presents the most attractive balance between estimated fuel savings, total project costs and currently available capital. Should the City of Chefornak be successful in obtaining additional grant funding through other non-AEA sources, it would be both possible under the proposed system design included in this application and advantageous for the community to consider installing additional wind turbines to achieve greater benefits through the utilization wind power. Thus, the proposed project represents the optimum installed capacity under the benefits and constraints that currently exists. The project is anticipated to have a capacity factor of 35.6% and expected to produce 935,799 kWh of wind generated electricity annually. Summary specifications of the Northwind 100 turbine are included on the following page. Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 20 of 42 10/7/2009 Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 21 of 42 10/7/2009 Local utility operators from the City of Chefornak will also attend a wind training program before the completion of the proposed project. As part of STG’s commitment to its clients, the company has organized similar trainings for local operators for all rural wind power installations STG has completed in the past. These trainings have been made available free of charge to rural wind energy system owners through the financial support of Denali Commission training funds. Project partners believe that funds will again be available to support training for Chefornak operators during the summer of 2010. Energy Management System The Naterkaq Light Plant (NLP) diesel generator sets have capacities of 377 kW and 177 kW and the existing plant control system senses the demand at any given point in time while automatically dispatching the most efficient generator set, or combination of sets, to meet the village load at any given time. As a result of the intermittent supplies of energy that will be fed into NLP’s distribution system through the completion of this proposed wind project, some modifications of the existing NLP infrastructure will be necessary. Moreover, and due to the high penetration levels that are expected through the installation of the proposed wind generators, we believe that the installation of a flywheel-inverter at the NLP plant would both add necessary stability to the overall system and provide opportunities to more efficiently balance the intermittent energy supplies delivered from the newly installed turbines. Our proposed system design involves the installation of Powercorp’s PowerStore 500, a flywheel- inverter technology, that is electrically coupled to the existing power system. The main purpose of the PowerStore is to stabilize the power system (frequency and voltage) and the quality of supply, by being able to import or export real and reactive power. Battery storage may be considered during the creation of final integration designs, however, the Powerstore module offers energy storage capabilities itself through its primary role of system stabilization and energy management. Nonetheless, battery storage is not a project requirement with the integration plan proposed in this application. The flywheel and power electronics interface combination, by itself, is capable of basic stabilization of both the voltage and frequency of the power system, without any additional information from external sources. Inherently, flywheels are able to achieve this stabilization through frequency and voltage sensing of the grid along with the stepless absorption and exportation of real power for frequency variation and reactive power for voltage support. The energy stored in the flywheel reduces cyclic loading and smoothes out power fluctuations as the electric load and wind turbine outputs change. This level of stabilization also allows for greater diesel cost savings due to more efficient operating points on the diesel generators, reduced spinning reserve on the flywheel itself, reduced maintenance costs with diesel generator sets, and the ability to run generators at their most efficient power output. The fast acting flywheel energy storage system will also provide system stability on a sub cycle basis. The sub second response of flywheel systems is supplemented by the multi-second response of the diesel generators. This capability reduces the fluctuations of the diesel generators, thus retaining fuel efficiency while riding through fluctuations of the wind. Finally, additional system stabilization is achieved by controlling the pitch and power-set points of wind turbines themselves. Our conceptual planning to date incorporates the utilization of Powercorp’s PowerStore flywheel as an integral component of the team’s integration strategy. Powercorp has successfully deployed this technology in markets across the globe and maintains a sales/service/support office in Alaska. Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 22 of 42 10/7/2009 Distributed Integrated Control Network To maximize the diesel savings generated through the installed wind energy system while maintaining system stability, all components must operate in a coordinated manner across the grid. This will be achieved through the installation of a network of distributed integrated controllers. These controllers, but more specifically the larger network, are designed to interface with existing power station controls. Controllers are typically mounted into existing control cabinets. Each device is driven by advanced software applications that allow each component within the system to recognize and coordinate its activities with the other units supplying or regulating energy flows on the system. The Distributed Integrated Control Network (DICN) also expands the capabilities of the existing plant supervisory control and data acquisitions system (SCADA) through the network of standard, commercially available component controllers, which run sophisticated software to integrate increasing levels of wind energy. In the wind-diesel configuration that has been proposed in this application, the power plant SCADA would trigger the various diesel generators to start and stop; while also issuing power set-points for each component in the power plant. The DICN would incorporate the setting and commands of the SCADA and configure the other components of the system, based on the load and available wind energy. In addition to the installed wind turbines and existing generator sets, a DICN controller would also be embedded in the flywheel module. Thus, the modular distributed control system controller could also be used as a complete, or supplementary, SCADA system, if called for during the development of finalized integration plans. Software will need to be either developed by partners or sourced by suppliers for this level of functionality - functionality designed to issue start, stop, step point commands and drive user interfaces, while providing opportunities for remote diagnosis. These features will be an essential component of the completed project that ultimately will be monitored by NLP operators and electrical integration partners. Other components of the control network include: š Diesel Generator Monitors: Small DIN-rail monitoring modules will be added to the existing generator controllers. These modules communicate information between the generator sets and installed flywheel about the current state of the generator (running, stopped, on-line or off-line) as well as how much power the generator is delivering at any given point in time. š Smartview Wind Turbine Interface: The wind turbines are provided with a customer interface to the wind turbine controller (WTC) and monitoring modules will be added in order to communicate with installed wind turbines. These modules send and receive data, such as the state of the machine (running, stopped, on-line and off-line, power generated, alarms, nacelle position, etc.), current energy production, system performance and system monitoring. Commands can be initiated from the wind turbine controller itself or from a centralized control station and typically include options that will allow system operators to start/stop turbines, control power outputs of the turbines through pitch regulation or power set point control. The WTC would communicate with NLP via fiber optic cable. The smartview interface is included with as part of the turbine purchase for the project. Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 23 of 42 10/7/2009 Heat Recovery System There will be times when the output of the wind farm proposed in this application will exceed the electric requirements of the community. Under these conditions two options are available to maintain system stability: 1. wind turbine output can be curtailed, or 2. loads can be managed to capture, store, or control this excess energy. In efforts to capture all energy supplied from the installed wind turbines, our system design includes the installation of an electric boiler grid interface at the Chefornak High School. While this boiler grid interface would be utilized as the primary system dump load designed to capture excess wind energy, additional dump load boiler systems will be considered as appropriate in other publically owned facilities within the community. The school is currently preparing for a significant upgrade and, while all wind generated electricity will be used primarily to supply electrical demands across the community, any excess energy generated by the project would be fed into these “dump” locations. Through communication with other system components and system wide energy monitoring, the dump load interface can also be used to efficiently manage village power supplies while making maximum use of the wind energy generation. During times of increasing wind power generation, the dump load system funnels excess energy (energy that at any given point in time exceeds current system wide electricity needs) into a thermal heating unit. Thus, excess energy supplies are managed by increasing the total system load. During times of collapsing wind power generation, the dump load interface follows the total system load closely and reacts by decreasing its load. Thus, the dump load interface is able to lower the total power demand on the entire system. The installation of the dump load interface is also expected to improve the grid quality by providing some level of reactive power and voltage level stabilization. The electric heat recovery boiler would be plumbed into the existing heating system located at the high school. Excess wind energy, when available, would be captured in this boiler and the heat used to offset fuel costs of running the high school. The heat recovery load at the high school would also require a separate metering and service panel, including cables and breakers if NLP chooses to sell this energy to the school. The system would be designed to utilize the existing temperature controls and act as demand managed devices controlled through the master control overlay. The method of communication proposed is Ethernet. Major community buildings with large heating requirements, such as the school, city offices Chefornak’s health clinic and the village store have also been considered as potential installation sites for dump load components if deemed necessary or if the proposed wind farm is expanded at a later date. The project could also be expanded upon to incorporate the utilization of electric residential home heating solutions based on smart grid technology should additional funding become available. Energy Delivery and Integration Design Installed wind turbines will be placed approximately 260 feet apart as indicated in the site map in Section 4.3.2 of this application. Conceptual project designs also indicate that approximately 3,500 linear feet of new 3-phase electrical distribution line will be needed to connect the installed turbines to the NLP powerhouse. Power lines connecting the turbines to existing electrical distribution infrastructure will also be above ground lines supported by driven piles. Once Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 24 of 42 10/7/2009 connected to the existing system, energy supplies and system performance will be monitored as indicated earlier in this application. A one-line diagram of the proposed system is included below. Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 25 of 42 10/7/2009 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. Various installation locations for the project were considered based on the review of wind resource data, land availability and existing electrical distribution infrastructure. Project team members have concluded that the most suitable location for the wind farm would be on the lands located on the eastern edge of the community due to the documented wind resource, availability of suitable barge landing sites, and project permitting preparations. Portions of this property are owned by both the City of Chefornak and the Chefarnrmute Native Corporation. The City of Chefornak has started discussions with the Chefarnrmute Native Corporation regarding the lease, sale, or transfer of ownership of a portion of the project site within lands under their control along with an easement for the proposed transmission should grant funds be awarded to implement this proposed wind energy project. Land appraisals have not been performed in the surrounding area of Chefornak in some time and, as a result, the project team has experienced some delay in determining the exact value of the property. Chefarnrmute has verbally committed to making the land available for the project through a negotiated agreement, but a formal resolution has yet to be reached at this time. No problems are anticipated for site control and the community has expressed strong support of the proposed wind project as documented through recent poling of Chefornak residents. The City of Chefornak believes all site access developments will be accomplished within short proximity to any announcement of awarded grant funds to complete this project. For the purpose of this application, the value of the project location has been estimated at $80,000 and has also been allocated as a certified project match. Below is a site diagram of the proposed wind farm: WIND FARM DISTRIBUTION LINE Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 26 of 42 10/7/2009 4.3.3 Permits Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues. š List of applicable permits š Anticipated permitting timeline š Identify and discussion of potential barriers Through consultation with Hattenburg Dilley & Linnell, permitting partner for the Chefornak installation, the following chart has been prepared to indicate applicable Federal and State permitting activities and their relevance to project implantation: Permit/Activity Applicability EPA National Pollutant Discharge Elimination System Applicable National Marine Fisheries Service Endangered Species Act Consultation Applicable F&W Coordination Act Consultation, Marine Mammal Act Applicable U.S. Fish & Wildlife ESA Consultant Applicable F&W Coordination Act Consultation Migratory Bird Protection Act Consultation Applicable Federal Aviation Administration Tower/lighting permit Applicable Alaska Department of Natural Resources Alaska Coastal Management Program (ACMP) Consistency Review Applicable Coastal Plan Questionnaire Applicable Cultural Resource Protection (SHPO) Applicable Alaska Department of Environmental Conservation Section 401 Certification Applicable HDL will lead project permitting efforts and anticipates that the permitting process will be completed within 120 days of the start of the project. This is based upon similar project experience and the following: š A field archaeological survey will not be needed for SHPO concurrence š There is no reason to assume there will be any significant environmental impacts š A Phase I Environmental Site Assessment should not be needed š Field delineation of wetlands will likely have an impact on the project While there is not reason to believe that the project will encounter any insurmountable barriers, there are two potential challenges that could arise: 1. The U.S. Fish & Wildlife Service may express concern regarding transmission lines and their potential impact on migratory birds or eiders, an endangered species found in the area surrounding Chefornak. Strategy to Address: Coordination will begin early in the project. At times mitigation can Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 27 of 42 10/7/2009 involve slight relocations to avoid potential concerns and this will be done early in Phase III and the installation of bird diverters on project power lines will be considered. 2. Coordination with the FAA to determine air hazards will be critical. Strategy to Address: Coordination will begin as soon as the project begins in order to incorporate FAA considerations into final designs. A communication tower (UUI) of identical height to the proposed wind turbines also exists between the project site and the airport (the 105’ communication tower is closer to airport property than the proposed project site). Due to this precedence, project partners do not believe that the ability to obtain FAA non-obstruction documentation will present any major challenges. 4.3.4 Environmental Address whether the following environmental and land use issues apply, and if so how they will be addressed: š Threatened or Endangered species š Habitat issues š Wetlands and other protected areas š Archaeological and historical resources š Land development constraints š Telecommunications interference š Aviation considerations š Visual, aesthetics impacts š Identify and discuss other potential barriers Environmental analyses will be conducted to evaluate the potential effects of the proposed project. This analysis will not involve field work at this level outside of anticipated site visits. Anticipated environmental issues to be addressed include: š Historical and Cultural Impacts. A search of the Alaska Historical Resource Survey will be conducted. After consulting with the native tribes and corporations, we will seek a State Historical Preservation Office (SHPO) concurrence of “No Historic Properties Affected.” š Wetlands. Preliminary review of the U.S. Fish & Wildlife Service’s National Wetlands Inventory has been conducted to identify wetlands have been identified within the project area. Where wetlands are encountered, a delineation report will be submitted to the U.S. Army Corps of Engineers for a jurisdictional determination. Wetlands impacts will be minimized to the greatest extent feasible. š Threatened & Endangered Species. An informal U.S. Fish & Wildlife Service (USF&W) Section 7 Consultation is anticipated due to the concern generated from wind towers and transmission lines with regards to migratory birds. š FAA Determination of No Hazard. HDL will apply for a determination from the FAA that the wind towers will not be a hazard to air traffic in the area due to its proximity to the airport. No zoning codes or requirements exist within the community of Chefornak that could potentially have an impact on the project. Other issues that are not anticipated to be of major concern, but Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 28 of 42 10/7/2009 ones that will be addressed, include land development constraints, telecommunications interference and visual impacts. 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: š Total anticipated project cost, and cost for this phase š Requested grant funding š Applicant matching funds – loans, capital contributions, in-kind š Identification of other funding sources š Projected capital cost of proposed renewable energy system š Projected development cost of proposed renewable energy system The total project costs of the Chefornak wind project are estimated to be $4,598,905, inclusive of Phases I to IV. As discussed previously, this project has advanced through Phases I and II and is ready for Phases III and IV activities. Much of the cost of Phase I and II were borne by third-party researchers, however, project team members have made substantial contributions with project conceptual design and initial feasibility studies. The total grant request for the project is $4,000,000 based upon the following: Total Phase III Costs $2,206,475 Total Phase IV Costs $2,392,430 Total Project Costs $4,598,905 Less: Project Match (City of Chefornak) ($95,000) Less: Additional Non-AEA Funding ($503,905) Total Grant Request $4,000,000 The additional investment of $95,000 (Project Match) is inclusive of $80,000 of land contributed by the City of Chefornak and $15,000 in labor contributed by the City of Chefornak. Additional Non-AEA project contributions are currently being sought from various local, state, and federal entities. Project costs have been developed utilizing contractor/vendor bids, cost quotes, industry reports and our project team’s experience as the most experienced group of Alaskan based wind energy professionals. The professional, contractual and construction cost estimates are expected to remain valid until the end of 2009; however, the turbine cost estimates are only valid for 30 days. This project reality is not anticipated to create insurmountable project delay or overruns. The capital costs for this project are estimated to be $4,290,905 and development costs are estimated to be $308,000. Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 29 of 42 10/7/2009 The City of Chefornak is also engaged in efforts to obtain additional project related funding from various other state and federal programs. If the City is successful in securing additional grant funding, these monies will be utilized to expand the system installed capacity, add additional electricity based community heating solutions, and/or residential scale electric heaters to further reduce energy related costs in the community. The project proposed in this application has been designed with expanded renewable energy generation capacity in mind. 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.) Operation and Maintenance costs for the proposed project are based on the historical costs documented at existing wind installations owned and maintained by Alaska Village Electric Cooperative (AVEC). AVEC currently maintains the largest fleet of installed Northwind 100 turbines in the world. AVEC’s existing Northwind 100 wind turbines at other sites require two maintenance visits a year and have been used as a basis to determine O&M estimates for the installation proposed in this application. Annual O&M visits to existing wind systems in Alaska currently cost AVEC $3,500 per turbine per year. The new Northwind 100 model requires only one maintenance visit each year. To be conservative with our estimate, we have doubled this annual cost in our development of O&M expectations for the three turbines and integration components proposed for Chefornak. This results in an annual expected O&M expense of $21,000. This cost will be funded by ongoing energy sales in the community and the estimated annual income of $5,148 generated through the anticipated sale of Green Tags. 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following: š Identification of potential power buyer(s)/customer(s) š Potential power purchase/sales price - at a minimum indicate a price range š Proposed rate of return from grant-funded project The Naterkaq Light Plant (NLP) generates electricity for sale to the community of Chefornak. Currently, NLP sells electricity for an average price of $.65 per kWh and upon completion of the wind project anticipates an average price of $.4012 per kWh (a 38% reduction in current electricity rates). NLP’s customer base, in terms of number of accounts or electricity consumption, is not expected to be impacted in any way as a result of the implementation of this project. Based upon estimated project cash flows, the estimated rate of return for the project is 1.22%. A list of the assumptions utilized for this analysis is included on the following page. Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 30 of 42 10/7/2009 Chefornak Cash Flow Assumptions Total Grant Request 4,000,000$ Total Non-AEA Funding 503,905$ Total Project Match 95,000$ Include Project Match in Cash Flow Y Include Energy Sales in Cash Flows N Estimated Sale Price of Wind Energy ($/kWh)0.4012$ Estimated Project Life (Years -enter 20 or 25)25 Number of Installed Turbines (#)3 Size of Turbines (KW)100 Fixed Annual Project O/M Costs (Total for Project)21,000$ Estimated Diesel Cost (Year 1 - $/gal)3.19$ Estimated Annual Diesel Cost Inflation (%)4.00% Estimated Value of Green Tag Sales ($/kWh)0.00550$ Annual Gross Energy Generation (Total Project - MWH)936 Wind Project Loss Factor (%)10% Annual Net Generation (Total Project - MWH)842 Annual Fuel Savings (GAL)39,790 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. A completed Cost Worksheet is attached in included in Section 10: Additional Documentation and Certification. Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 31 of 42 10/7/2009 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: š Potential annual fuel displacement (gal and $) over the lifetime of the evaluated renewable energy project š Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate) š Potential additional annual incentives (i.e. tax credits) š Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) š Discuss the non-economic public benefits to Alaskans over the lifetime of the project Based upon estimates presented throughout this application, the total annual displacement of diesel fuel is expected to be 39,970 gallons per year over the lifetime of the project. At an assumed starting fuel price of $3.19 per gallon, the first year dollar savings is estimated to be $126,930 if oil prices remain flat. Based upon the anticipated new cost of energy after the proposed project is implemented of $.4012 per kWh (a 38% reduction from the current electricity rate in Chefornak), it is anticipated that the City of Chefornak (Naterkaq Light Plant owner; NLP) will generate $166,203 from wind generated electricity per year. Green tag sales are also assumed to be project revenue streams. Based upon recent green tag supply contracts executed with Alaska project owners, the project economic analysis assumes an estimate value for green tag sales of $.0055 per kWh produced. Based on production estimates, anticipated green tag revenue is budgeted at $5,148 per year. The utilization of wind power technologies in Chefornak is also expected to provide benefits that are less quantifiable or non-financial in nature. Through the implementation of this project and the resulting volume of displaced fuel, NLP will significantly reduce the amount of greenhouse gasses emitted through the use of diesel electricity generation. While this environmental benefit can be financially quantified through the expected sale of green tags, the project’s complete contribution towards global climate change mitigation efforts is difficult to precisely determine. The completed project is also expected to reduce volatility in electric rates across the community of Chefornak and provide more stabilized prices for those who purchase energy produced by NLP. Additionally, it is also possible that Chefornak could experience an increase in local employment due to a decrease in the amount of funds that previously have been leaving the community to cover rapidly increasing fuel prices expenditures. Finally, as a result of this decrease in fuel purchases, the State of Alaska’s Power Cost Equalization (PCE) program will also be able to free up funds to spend elsewhere in the state due to the reduced need of PCE support in the community. Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 32 of 42 10/7/2009 SECTION 6– SUSTAINABILITY Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum: š Proposed business structure(s) and concepts that may be considered. š How you propose to finance the maintenance and operations for the life of the project š Identification of operational issues that could arise. š A description of operational costs including on-going support for any back-up or existing systems that may be required to continue operation š Commitment to reporting the savings and benefits Energy generated through the completed project will be supplied to existing NLP customers through the distribution and sales networks already established in the community. Currently, the City of Chefornak owns all Naterkaq Light Plant (NLP) assets and is responsible for PCE reporting, billing and payment collection for all NLP services within the community. The City of Chefornak has done well in establishing a relatively high collection rate for NLP services (approximately 94% over the past year) in comparison to other rural Alaska communities. The City also has established accounting and financial management practices in place to effectively maintain the wind energy system proposed in this application. The City of Chefornak intends to operate the system in a sustainable manner over the life of the project and will do so by continuing to make training available to local utility operators and the administrators who will have oversight of project operations and related accounting. Project partners will make system specific training available (wind turbines and energy management equipment) to local operators and the City will continue to provide periodic accounting training available to its employees to ensure that appropriate skill sets are maintained to ensure that accurate records are kept, project reporting is delivered to appropriate agencies as expected, and that adequate cash flows are maintained to support the completed project in a sustainable manner. Based upon the project team’s analysis, the City of Chefornak will realize a net cash benefit (project generated revenues less anticipated O&M and administrative costs) of approximately $130,000 annually. Project equipment is covered under a two year warranty and service contracts will be established with key supplies involved with the installation to ensure that adequate support is available to address operation issues that may developed over the lifetime of the project. These expenses have been factored into the lifetime cost analysis of the project discussed in this application and will be covered comfortably through the sale of wind generated electricity. In addition to the sale of electricity from the project, the City of Chefornak anticipates being able to utilize excess wind generated electrical supplies for space heating purposes. This excess energy supply will be sold for its BTU value to local organizations and/or utilized to offset operational costs at City owned facilities bringing in additional project related revenue. One of the added benefits of the proposed system is that it will also help existing energy generation assets within the community to perform more efficiently. Through the utilization of flywheel components, existing generator sets will be able to be run at their most efficient set-point and total run time on these sets will also be decreased substantially during diesel off operation. Thus, the overall efficacy of existing equipment will be improved and life-spans will be increased due to the decreased run time. This presents an additional positive benefit to the community, further supports the reduction of energy costs in Chefronak, and improves the economics of capital expenditures already invested in the community. Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 33 of 42 10/7/2009 Anticipated operational issues involve wind turbine performance and the ability for team members to successfully implement energy management components. Similar systems have been successfully deployed by Chefornak’s project team across the State of Alaska and the world and are not anticipated to be insurmountable. The City of Chefornak and project team members are committed to the successful implementation of this project. The City of Chefornak is also committed to providing detailed project reporting to support grant requirements and future deployments of similar wind energy systems across the Alaska. The project proposed in this application represents a progressive system design that will provide immediate costs savings in the community and the opportunity to further expand renewable energy utilization with additional wind generation and demand side equipment in the future as additional funding becomes available. This project lays the foundation for Chefornak to become a more sustainable community over the long term through the ability to utilize renewable sources for a large percentage of all energy demands (electricity, heating and transportation) in the future. 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 City of Chefornak and project partners have invested a significant amount of time and financial resources to date to complete initial feasibility analysis and to develop conceptual designs of the system proposed in the application. These efforts have been completed at the expense of the committed project team described in this application and done so due to the value of the benefits that will be generated for the community of Chefornak should the project be implemented. The City of Chefornak has also been diligent in efforts to identify other potential funding sources to support portions of this proposed project and expansions of it. It is the project team’s intention to leverage any investments in this project from the REF grant program to help secure additional capital investments from local and regional stakeholders (Chefarnrmute, Calista, Costal Villages Regional Fund), state agencies (specifically the Department of Commerce and Economic Development), federal agencies (Departments of Energy and Interior), and possible private investment. A commitment from the Alaska Energy Authority would benefit the community in providing not just an opportunity to implement the project proposed in this application, but expand its scope and effectiveness through the deployment of larger wind generators, smart grid technology, electricity based home heating solutions, water treatment technology (desalinization) funded through additional capital investments by non-AEA sources. With base funding in place for this proposed project, it is anticipated that the City of Chefornak will be successful in obtaining additional investments to further distribute project costs, expand benefits, and improve all project related economics for all investors. Based on the funding limitations of this grant program, this application represents the most economic and best long-term energy solution for the community. Should additional capital investment materialize, the economics for all project Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 34 of 42 10/7/2009 investors would improve through the utilization of larger wind generators and expanded (home based) heating solutions within the community. The City of Chefornak is currently engaged in efforts to secure additional funding for this project through a RFA solicitation recently released by Alaska’s Department of Commerce. It is anticipated that some funding will be generated through this source and the additional grant award, if received, will be utilized for the wind project described in this application. A notice of funding availability and grant awards through this program is expected in March 2010. This project does qualify for funding through this specific program. The City of Chefornak has also engaged different local and regional entities in preliminary conversations about their intent to implement the proposed wind energy system. This dialog will continue and additional funding opportunities will continue to be sought as the project team works to implement the installation proposed in this application. 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. In July of 2009, the City of Chefornak completed a poling of local residents regarding their preferences on the types of capital projects and expenditures the city should pursue. Options were presented to community members including: 1. A new grader 2. A bull dozer for the community dump 3. A new multi-purpose building 4. A village scale wind farm Other general solicitations were made to collect all ideas from community members and the preferred options documented in returned surveys considered in the above list was for the community to work towards the implementation of a wind power project. This community wide support is further documented through the specific letters of support from various groups with operations in Chefornak. These letters are included in Section 10 and have been received from: š Chefornak Traditional Council š Chefornak High School š Chefarnrmute Native Corporation All Chefornak residents, organizations and businesses would receive benefits from the completed project through the reduction and stabilization of energy costs across the community. Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 35 of 42 10/7/2009 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 project costs of the Chefornak Wind Turbine Installation are estimated to be $4,598,905, inclusive of Phases I to IV. As discussed previously, this project has advanced through Phases I and II and is ready for Phases III and IV activities. Much of the cost of Phase I and II activities were borne by third-party researchers, however, project team members have contributed approximately $25,000 in direct labor for project conceptual design, initial feasibility studies and cost estimations. The total grant request for the Chefornak Wind Turbine Installation project is $4,000,000 based upon the following: Total Phase III Costs $2,206,475 Total Phase IV Costs $2,392,430 Total Project Costs $4,598,905 Less: Project Match (City of Chefornak) ($95,000) Less: Additional Non-AEA Funding ($503,905) Total Grant Request $4,000,000 The additional investment of $95,000 (Project Match) is inclusive of $80,000 of land contributed by the City of Chefornak and $15,000 in labor contributed by the City of Chefornak. Additional Non-AEA project contributions are currently being sought from various local, state, and federal entities. A completed Grant Budget including line item costs and specific project milestones is included in Section 10: Additional Documentation and Certification. Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application Page 36 of 42 10/7/2009 SECTION 10 – ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. 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. 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. F. CERTIFICATION Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application 10/7/2009 Attachment A: Resumes of Applicant’s Project Manager, key staff, partners, consultants, and suppliers. STATEMENT OF QUALIFICATIONS 11820 South Gambell Street • Anchorage, Alaska 99515 • Phone: (907) 644-4664 • Fax: (907) 644-4666 info@stgincorporated.com • www.stgincorporated.com Over the past fifteen years, STG Incorporated (STG) has grown into one of Alaska’s most experienced construction services and management companies. Dealing mainly in rural areas of state, STG has played a major role in high profile projects such as wind energy installations, communication tower installations, and community bulk fuel and diesel generation upgrades, to name a few. STG specializes in remote project logistics, pile foundation installations, tower erections, and construction management. STG takes pride in its wealth of experience, gained from years of work throughout “bush” Alaska, and through its ability to deal with the diverse and challenging logistics and conditions which it encounters on nearly every project it undertakes in remote locations. Company Overview In 1996, St. George Construction was incorporated as STG Incorporated. Since incorporation, STG has become the preferred construction management company for both the Alaska Energy Authority (AEA) and the Alaska Village Electric Cooperative (AVEC). Many of the projects executed by these two entities are managed and constructed by STG. STG’s core competencies include bulk fuel systems, power plant construction (both modular and steel-framed), wind farms, and pile foundations (driven piles, post tension rock anchors, helical anchor systems, freeze back, and active refrigerated piles). STG is the prevalent pile foundation contractor for Interior and Western Alaska. Additionally, STG has expanded to become United Utilities’ preferred contractor for its “Delta Net Project”, which involves the installation of communication towers and related equipment throughout the Yukon Kuskokwim Delta. STG has achieved this preferred status by demonstrating competitive rates and the ability to perform in remote locations with extreme logistical challenges. Qualifications The STG team has developed and maintained the capacity to manage projects through a set of key deliverables to ensure appropriate management of jobs across the complete project cycle including: Provision of a quality project at a fair and reasonable price Timely delivery within budget Safe and professional performance on all work Positive relationships with clients to ensure that project deliverables are met New modern equipment that results in high productivity State of Alaska Professional Land Surveyor (Reg. 10192) on staff with modern Topcon GPS Control through Detailed Project Planning STG focuses pre-construction efforts on planning and preparation. A project team is identified which includes management, administrative, and field supervision personnel. The team establishes budgets, production targets, a master construction schedule, and detailed work plan for each project. The planning process involves key supervisory personnel as all aspects of the project are analyzed with particular attention to logistics, labor and equipment resource needs, along with specific material requirements. This results in a clear understanding of the goals of the client, the contractual requirements, scope of work, and identification of potential obstacles that may impact the successful completion of the job. The project-planning phase also establishes key systems which help assure quality throughout the project. This begins at the management level with a commitment to providing a quality project to the client and carries through to the administrative level with timely, accurate documentation and reporting, and on to the field level where clear goals of production and quality are reinforced through the superintendent’s and foremen’s daily huddles and schedule reviews. Cost Containment STG maintains budgets for all labor, material, and equipment for each project allowing managers to effectively manage project costs. Expense categories are tracked and updated weekly by the project managers and this information is then communicated to the field supervision level for use in making timely, proactive management decisions. The project manager and field superintendent work together through this reporting system to identify potential problems and direct resources as required to address issues before they impact the work. This proactive approach prevents STG from having to perform “crisis management” while providing clients with on-budget, on-time, turnkey deliveries of completed projects built to engineered specifications. STG maintains a philosophy to deliver the highest level of quality within the industry. STG employees also realize the company’s commitment to its clients along with STG’s civic responsibility to local communities. The work that STG performs is a reflection of this commitment. Construction Management and Project Supervision Experience STG has built a reputation of professionalism and thoroughness by delivering the highest quality products within a set schedule and defined budget. As a result, STG has been awarded and maintains construction services and management contracts with the following clients: Alaska Village Electric Cooperative (AVEC) Alaska Energy Authority (AEA) United Utilities Inc. (Recently acquired by GCI, Inc.) STG has built a wealth of knowledge and experience for planning, execution, and completion of projects across rural Alaska. Over the years, STG has also enjoyed the opportunity to successfully implement a large array of projects specifically for AVEC including bulk fuel upgrades, diesel power, wind generation, and energy distribution systems. STG can also coordinate all project logistics from procurement, to transportation, to the final project demobilization. The company prides itself in its ability to professionally deal with all the different entities that are related to a project. In this regard, STG maintains a close working relationship with AVEC’s engineering representatives, a solid relationship with the AVEC management staff, along with strong connections to various sub-contractors and vendors across the state of Alaska. STG operates a modern fleet of fourteen cranes, state-of-the-art dump trucks, loaders, excavators, pile drivers, and other equipment needed to support full scale rural construction projects. During the construction phase of STG projects, remote field crews are efficiently supported logistically from two STG offices: the company’s headquarters and fabrication shop located in Anchorage, AK and its staging yard located in Bethel, AK. From these locations, company construction crews are fully supported in the field for parts, groceries, and any other needs that may arise during the course of the project. STG Projects Selawik Power Plant, Tank Farm, and Wind Turbine Installation Client: AVEC Year Completed: 2004 The Selawik Bulk Fuel Upgrade Project exemplifies STG’s diverse capabilities. STG was highly involved with the planning and design of the tank farm and power plant. The company executed the pile foundation work, fabricated ten 50,000 gallon storage tanks on-site, erected four 65kW wind turbines, and tied the completed system together with a complex network of pipelines. Nunapitchuk-Kasigluk Bulk Fuel Upgrade, Power Plant, and Wind Turbine Installation Client: AVEC Year Completed: 2006 In Kasigluk, STG once again demonstrated its abilities to execute complex, multi-faceted projects. This project entailed transferring primary power generation from Nunapitchuk to Akula Heights while maintaining power generation to these two villages and also maintaining power to Old Kasigluk. As part of this project, STG constructed a new bulk fuel retail facility for the communities of Akula Heights and Old Kasigluk along with a new bulk fuel storage facility, totaling over 600,000 gallons of storage capacity in all. This project also included the construction of a power distribution system to the three aforementioned villages, the installation of a new diesel generation plant, the erection of three 100 kW wind turbines, the installation of a heat recovery system, upgrades to the school districts bulk fuel facilities, and the installation of a standby generator in Nunapitchuk. Toksook Bay Power Plant, Wind Generation, and Interties Client: AVEC Year Completed: 2008 Toksook Bay, Tununak, and Nightmute are located in Western Alaska on Nelson Island, an ideal location for wind generation. STG helped deliver a wind/diesel integrated power project for these communities. With three Northwind 100kW wind turbines and a new power plant complete with switch gear and heat recovery module in Toksook Bay, power can now be produced from either diesel fuel, or the natural powers of the wind. In order to capture the greatest value for all island residents, an intertie network was established, which connected the three communities through the installation of 23 miles of power lines. STG orchestrated schedules, equipment, materials, field work and logistics to successfully bring this project to completion. Due to the impassible summer tundra conditions, all the intertie work took place in the winter season during sub-zero temperatures. Additional STG Projects STG has completed numerous projects for AVEC throughout the state on many different levels of scope. The company would also like to highlight a few other examples of its diversity in rural construction and management for other clients. STG has managed and constructed over a dozen bulk fuel upgrades for the Alaska Energy Authority across the western half of Alaska. The most notable of these projects was the set-up, installation, and commissioning of eight modular power plants in eight unique communities along the middle Kuskokwim River. The units were built and prepared in STG’s Anchorage yard during the winter months, then delivered and installed on each site during the short summer season. The company has also gained valuable experience dealing with tower erection and foundation design. Under its term contract with UUI, STG has built foundations for, and has erected, over thirty communication towers throughout western Alaska. This project, known as the Delta-Net Project, has linked dozens of communities for tele-medicine and broadband communication. Two of the most notable towers are the 305-foot tower in Eek, and the 60-foot tower on top of Marshall Mountain which also required construction of a five-mile access road from the village of Marshall. STG has grown into one of the most experienced integrators of alternative energy systems within the state of Alaska. In addition to the previously referenced projects, this experience is documented through STG’s work to erect and install two Vestas 225 kW wind turbines for TDX Power on the remote Bering Sea island community of St. Paul. Key STG Personnel STG’s organization consists of approximately 25 full-time employees with many more returning seasonal workers. STG’s staff consists of experienced and professional project managers, a registered land surveyor, a full-time expediting crew, accounting and administrative personnel, welders, carpenters, crane and heavy equipment operators, pipe fitters, plumbers, and electricians. STG personnel have the knowledge and skills necessary to provide construction management services and successfully complete projects anywhere inside of the state of Alaska. James St. George - President Mr. St. George operates and co-owns STG while overseeing the performance of projects throughout the state of Alaska. With over 30 years of varied construction experience, he specializes in rural construction management and his expertise ranges from communication tower construction, to tank farm construction and upgrades as well as renewable energy projects. Mr. St. George’s extensive experience in the field involves all phases of work, including planning, logistics, budgeting, dirt work, mechanical, electrical, piling installation, and tank construction. He has been progressive in introducing new and more efficient means for accomplishing project goals. Mr. St. George’s versatility has proven to be a great asset in the company’s completion of projects across rural Alaska. David E. Myers – Project Manager Mr. Myers has over 15 years of comprehensive experience in construction and environmental remediation. His responsibilities have included project management, quality control, safety, compliance, logistics, cost estimating, fieldwork, reporting and client relations in the areas of rural energy upgrades, civil and vertical construction, hazardous materials, confined space entry, asbestos abatement, demolition, drum removal, mining, contaminated water treatment and soil remediation. Areas of expertise include: remote construction, heavy civil construction, environmental remediation, government contracting. For the last four years Mr. Myers has been responsible for the successful delivery of multiple energy upgrade projects for STG. Gary Matthews – Project Manager Mr. Matthews has over 30 years of construction experience. His experience includes the total coordination of projects starting with bidding/estimating; negotiating; scheduling manpower, equipment and materials in extremely remote locations; communication tower erection; and government contracting. For the last year Mr. Matthews has successfully managed the construction of the UUI Delta-Net tele-medicine and broadband communication towers throughout Western Alaska for STG. For further inquiries, please visit our website at www.stgincorporated.com or contact us at the information below. STG Incorporated • 11820 South Gambell Street • Anchorage, Alaska 99515 • Phone: (907) 644-4664 • Fax: (907) 644-4666 info@stgincorporated.com • www.stgincorporated.com 11820 South Gambell Street • Anchorage, Alaska 99515 • Phone: (907) 644-4664 • Fax: (907) 644-4666 info@stgincorporated.com • www.stgincorporated.com DNV Global Energy Concepts Inc. 1809 7th Avenue, Suite 900 Seattle, Washington 98101 USA Phone: (206) 387-4200 Fax: (206) 387-4201 www.globalenergyconcepts.com www.dnv.com Statement of Qualifications for Wind Energy Consulting Services November 7, 2009 Statement of Qualifications for Wind Energy Consulting Services DNV Global Energy Concepts Inc. i November 2009 Table of Contents COMPANY DESCRIPTION ....................................................................................................... 1 QUALIFICATIONS ..................................................................................................................... 1 FEASIBILITY STUDIES, SITE ASSESSMENTS, AND DEVELOPMENT SUPPORT .................................. 1 WIND RESOURCE ASSESSMENT AND WIND DATA MANAGEMENT ............................................... 2 ENERGY ESTIMATES .................................................................................................................... 2 INDEPENDENT ENGINEERING & DUE DILIGENCE ......................................................................... 2 ENGINEERING, DESIGN, ANALYSIS, & TECHNOLOGY REVIEW SUPPORT ...................................... 3 TESTING & MEASUREMENT SERVICES ......................................................................................... 4 KEY PERSONNEL ...................................................................................................................... 4 REFERENCES .............................................................................................................................. 4 Statement of Qualifications for Wind Energy Consulting Services DNV Global Energy Concepts Inc. 1 November 2009 Company Description Det Norske Veritas (DNV) acquired Global Energy Concepts (GEC) effective June 1, 2008. Prior to the acquisition GEC had been in business since 1994 and its principals had been involved in the wind energy industry for more than 25 years. DNV Global Energy Concepts Inc. (DNV-GEC) is a is a leader in providing technical services to the wind industry and has conducted direct work on wind projects representing more than half of the new installed wind energy capacity in the U.S. Part of DNV’s Cleaner Energy Group, the firm specializes in the wind energy industry, providing analysis, design, testing, and management services to a wide range of clients. DNV-GEC’s experience includes both utility-scale and small-scale applications of wind energy technologies. DNV-GEC combines technical expertise, managerial capabilities and common-sense with financial and business knowledge to provide comprehensive consulting services that help clients meet their objectives. Established in 1864, DNV is a global provider of risk management services, helping customers to safely and responsibly improve their business performance. DNV is an independent foundation with the purpose of safeguarding life, property and the environment. Through its network of 300 offices in 100 countries, the company serves a range of industries, with a special focus on the maritime and energy sectors, combining its technology expertise with its industry knowledge. DNV’s wind center in Denmark has more than 20 years of experience and is the world’s leading provider of offshore wind project certification services. Qualifications DNV-GEC’s project team is interested in and qualified to provide support in all wind power related tasks identified in the RFQ, as well as in any other areas related to wind energy development, implementation, operation, and performance that are identified at a future date. Feasibility Studies, Site Assessments, and Development Support As leaders in wind energy consulting, DNV-GEC understands the project development process and provides technical services from preliminary site assessment to detailed feasibility studies. DNV-GEC maintains a project cost database for both large and small wind projects in North America and has developed in-house pro forma tools for completing economic evaluations. Our primary services include: š Feasibility studies and life-cycle economic analysis š GIS mapping and site screening analysis š Bid evaluation support and bid document preparation š Project design, layouts, and optimization š Visualization, acoustic, shadow, and flicker analysis Statement of Qualifications for Wind Energy Consulting Services DNV Global Energy Concepts Inc. 2 November 2009 š Market assessments š Development of education and outreach materials Our consulting team has worked on wind projects in more than 30 countries, 40 U.S. states, and 8 Canadian Provinces. Government agency clients include the U.S. Department of Energy, National Renewable Energy Laboratory, the World Bank, the U.S. Agency for International Development, Sandia National Laboratories, U.S. Department of Defense, U.S. Department of State, NYSERDA, STG, Inc., and the State of California. For example, in 2007, DNV-GEC developed site evaluation criteria to assist decision-makers in determining which of the U.S. Department of State’s 200+ facilities worldwide have the highest potential for an economically- viable wind power project. The report focused on small wind turbine applications of up to 500 kW in capacity. Wind Resource Assessment and Wind Data Management DNV-GEC offers turnkey, full service wind resource assessment services including met tower siting, equipment specification, procurement, logistics, installation, maintenance, data collection, validation, and reporting. All data services are provided in accordance with international standards and practices and are consistent with the requirements of wind energy developers and the investment community. Over the past 15 years, DNV-GEC has collected data from more than 1200 met towers. DNV-GEC currently monitors hundreds of met towers across North America and beyond. As an example, DNV-GEC managed a four-year wind resource assessment for the State of Nebraska. Work included site selection, sensor installation, and data monitoring of eight locations for consortium of Nebraska utilities, government agencies, and public organizations. DNV-GEC also conducted research on mitigating lightning impacts on sensors and data loggers. Energy Estimates DNV-GEC provides energy estimates throughout the project development cycle; the level of detail and complexity of these assessments is tailored to meet the client’s needs given the development status of the project. We use wind flow modeling based on long-term data sets combined with our professional judgment to generate estimates of gross energy production. Energy losses and net energy are estimated based on project-specific analysis of relevant losses including array, blade soiling and degradation, controls, line, availability, weather, and other potential sources. Net energy production estimates are evaluated at a range of confidence levels using a proprietary stochastic model developed to evaluate the uncertainty in the assumptions, methods, and losses used for the analysis. DNV-GEC has conducted energy estimates for thousands of megawatts of proposed and operating wind power plants for investors and other clients in the United States and abroad. Independent Engineering & Due Diligence DNV-GEC provides independent engineering and due diligence services to project investors and operators to support project financing and analyze project performance. With more than 20 years of providing services for project investors, DNV-GEC has earned a reputation for providing professional, confidential, and unbiased analysis. Our primary service areas include: š Pro forma financial analysis and project documentation š Wind turbine technology assessment Statement of Qualifications for Wind Energy Consulting Services DNV Global Energy Concepts Inc. 3 November 2009 š Project engineering and construction oversight š Transmission design and constraints š Power market pricing One of the many wind project financings on which DNV-GEC has provided Independent Engineering services was the $400 million, 259-MW portfolio of three Invenergy wind energy projects in Montana, Idaho, and Colorado. Services provided by DNV-GEC in 2005 included turbine technology, wind resource and energy estimates, siting evaluation, certain aspects of the technical agreements, the testing program, technical inputs to the pro forma, and site visits. During construction DNV-GEC provided construction monitoring services and is currently providing operations phase monitoring services for the lenders. Engineering, Design, Analysis, & Technology Review Support Throughout the project lifecycle DNV-GEC provides engineering design and analysis support services to investors, owners, operators, and manufacturers. Decades of experience in the design and analysis of wind turbines, coupled with our extensive set of analytical tools and our close collaboration with the international research community provide a unique combination of technical excellence and hands on experience to address technical challenges presented by the wind industry. Our primary service areas include: š Site suitability analysis š Technology and manufacturing due diligence š Root cause failure analysis š End of warranty inspections and reports š Operation and maintenance cost analysis š Condition monitoring support š Controls tuning, programming and troubleshooting š Inspection of manufacturing, installation, and commissioning activities In 2006, DNV-GEC was contracted by the Electric Power Research Institute to develop guidelines for utilities, operators, and owners of wind projects to address performance improvements for wind projects. Subjects included operation and maintenance strategies, staffing levels, and parts inventory; severe weather impacts; use of SCADA systems; performance evaluation and trending analyses; specification and procurement considerations; warranties; and other topics. As an example of turbine inspection services, in 2007, DNV-GEC performed end-of-warranty inspections on 56 wind turbines located near Wasco, Oregon. The focus of the inspection was to identify failures of components not identified by the warranty service provider prior to turn over of maintenance activities. The inspections included detailed borescope inspections of the gearboxes, detailed blade inspections with high-powered spotting scope, complete turbine visual inspections, foundation tilt measurements, SCADA fault analysis, and spare parts usage analysis. As result of experience gained during this and other inspection work, DNV-GEC has been an annual presenter at the American Wind Energy Association Asset Management Workshop. Statement of Qualifications for Wind Energy Consulting Services DNV Global Energy Concepts Inc. 4 November 2009 Testing & Measurement Services DNV-GEC offers comprehensive testing services and unparalleled expertise to the wind energy industry. Our trained and knowledgeable staff works extensively with wind turbine manufacturers to evaluate new turbine models, wind project owners and operators to verify expected performance, and the research community to analyze new procedures and equipment. DNV-GEC achieved accreditation by the American Association of Laboratory Accreditation (A2LA) to ISO 17025 for power performance testing to IEC and MEASNET procedures in June 2007; we are the largest accredited measurement agency currently active in North America. Our services include: š Warranted power curve and warranted annual energy production testing š Measurement of loads, acoustic emissions, power quality š Performance assessments after the project is built and operating š Supply and instrumentation of SCADA and forecasting towers š SODAR measurements Our work experience includes projects located throughout North America and abroad, including such diverse locations as West Texas, the Canadian Maritime Provinces, the Philippines, India, and Alaska. As the Department of Energy’s Turbine Verification Program contractor since 1994, DNV-GEC conducted performance tests on seven turbine models ranging from 50 kW to 1.6 MW. DNV-GEC also completed numerous inspections of the 50 kW wind turbines installed in Kotzebue, Alaska, which included detailed examinations of the blade pitch angles as part of an analysis to understand project performance shortfalls, brake wear, oil condition, O&M records, wiring integrity and overall turbine and interconnect equipment condition. Key Personnel DNV-GEC proposes to manage all work out of the Seattle, Washington, office. Biographies of key personnel are provided in Attachment 1. Scheduling of individual resources will occur at the time tasks are assigned and will depend on existing workload. We have a large staff of experienced engineers and analysts, allowing us the flexibility needed to meet the client’s time requirements. References DNV-GEC provides consulting services to a broad spectrum of clients, including electric utilities, investors, banks, wind turbine owners, insurance companies, equipment manufacturers, developers, law firms, and public institutions both in the United States and abroad. Specific client references include: š Massachusetts Technology Collaborative (MTC) Nils Bolgen, Program Director, Clean Energy ph: 508-870-0312 bolgen@masstech.org Statement of Qualifications for Wind Energy Consulting Services DNV Global Energy Concepts Inc. 5 November 2009 MTC has relied on DNV-GEC to perform a wide range of services. Our work includes site screening and feasibility studies of community-scale wind projects, typically up to 10 MW in size. Evaluations encompass all critical technical, environmental, financial, and community acceptance issues necessary for decision makers and stakeholders to move the project forward. In the execution phase, DNV-GEC has helped design turbine and developer procurement strategies, developed RFP documentation, provided solicitation support and response evaluation, and provided technical assistance in negotiation of turbine purchase agreements. DNV-GEC has been providing support to MTC since 2004. š Puget Sound Energy (PSE) Christine Philipps, Manager, Resource Acquisition ph: 425-462-3653 Christine.philipps@pse.com In 2006, 2007 and 2008, DNV-GEC has provided support to PSE in the evaluation of bids for power purchase agreements and the acquisition of new wind power projects. Tasks include due diligence reviews of energy estimates, uncertainty calculations, energy loss assumptions, pro forma, and turbine siting. Project sizes have ranged from 20 MW to 600 MW. š Pacific Northwest National Laboratory (PNNL) Alice Orrell, Technology Planning & Deployment Group Ph: 509-372-4632 alice.orrell@pnl.gov Since 2008, DNV-GEC has assisted PNNL in completing a comprehensive assessment of the wind energy opportunities at several military installations. This work includes determining the likely wind resources based on available data, conducted scoping and screening visits to bases to survey potential project sites, discussions with base officials to understand site-specific limitations, and estimation of project capacity. DMA Resume Page 1 of 4 Duane Miller Associates LLC (DMA) 5821 Arctic Boulevard, Suite A Anchorage, AK 99518-1654 (907) 644-3200 Duane Miller Associates LLC (DMA) was established as Duane Miller & Associates in 1982 to provide geotechnical engineering and consultation in the problems unique to Alaska. The firm has evolved to a consultancy of engineers and geologists, all of whom have many years of Alaskan experience. The two senior consultants, Principal Engineer Duane Miller, P.E., and Principal Geologist Walt Phillips, C.P.G., each have more than 30 years experience with Alaskan projects. With a total of 17 Alaskan geotechnical engineers, geologists, laboratory technicians and administrative/IT support staff, DMA can address any geotechnical issue throughout Alaska in a timely basis. Professional staff at DMA consists of four Alaska licensed geotechnical engineers and one Alaska licensed geologist. We have five geologists and four EIT-level engineers. We have a full time geotechnical laboratory manager and one lab technician. Administrative and IT personnel support the professional staff. We are located at 5821 Arctic Blvd. in Anchorage, Alaska with our laboratory facilities, including our walk-in testing freezer, in the same building. DMA project experience ranges from small rural projects to large industrial and defense projects. Experience with remote site work has led to the development of specialized exploration and sampling tools for permafrost investigations. Field work is most often preceded by collection of available data from previous projects and examination of existing aerial photographs. DMA maintains an extensive library of past geotechnical reports prepared by us and other geotechnical service providers. These reports include data from most of the communities in the state. Our laboratory is equipped to perform nearly every primary soil test along with secondary strength and consolidation tests for undisturbed or remolded soil. The laboratory has a walk-in freezer for the storage and testing of frozen soils. DMA’s client base primarily includes major oil companies and other consulting engineers. Typical rural projects include improvements to sanitation systems through contracts administered by Village Safe Water (VSW) and ANTHC, hospital projects through the Indian Health Service (IHS), improvements to bulk fuel, wind farm, and diesel power plant facilities through AVEC and ADC&RA Division of Energy, rural housing through regional and local housing authorities, rural airfields and roads through DOT&PF and BIA, and school projects through regional school districts. DMA Resume Page 2 of 4 We pride ourselves on bringing custom geologic and geotechnical engineering solutions to many of Alaska’s most demanding foundation engineering problems, particularly in arctic and subartic conditions, from remote village projects necessary to improve local well-being to major industrial oil and gas projects important to our nation’s energy and security needs. Every geotechnical project undertaken by DMA has a principal or senior staff geotechnical engineer AND geologist assigned to properly scope our customer’s needs and expectations. As an important first step, our senior staff works closely with each customer to properly balance Scope, Schedule, Quality and Cost prior to finalizing a Notice to Proceed for three key reasons. First, this dialog defines our field, laboratory, and engineering objectives for all parties. A clear and concise definition of a project’s objectives is fundamental to our management philosophy. Second, this dialog provides the basis for project management decision making as field findings and project needs evolve. Third, this dialog establishes our role in the project’s scheme in terms of Chain of Command, site safety, and compliance with environmental documentation/requirements. The planning effort does not stop at the completion of the field effort. Upon completion of each field phase, field logs, geotechnical samples, field notes, geotechnical instrumentation data (ground temperatures, CPT data, piezometer, etc), photographs and GPS/GIS data are summarized. Laboratory effort is prioritized and managed through our Laboratory Manager with weekly updates on laboratory status to the Project Team. This permits refinement on laboratory schedules and scheduling engineering team effort to coincide with laboratory effort. Geology and engineering efforts are developed in tandem at the project level. We strongly believe that our success is based on treating geology and engineering as equally important elements of a project deliverable. This is the key reason a senior or principal level geologist and engineer are assigned at the very earliest stages of a project scoping effort. DMA maintains an extensive in-house library of both DMA and third-party geotechnical studies from nearly every area of Alaska. In-house studies are DMA efforts that start with the initial work effort by Duane Miller when he started DMA. This system spans over 1,000 separate reports retrieved by Lat/Long, site, work type, region, permafrost conditions and other search terms. This in-house database permits immediate retrieval of boring log and laboratory data, Alaskan ground temperature data dating back to the late 1970s, and geologic interpretation and engineering recommendations. Our system provides a notification of proprietary data that cannot be used without the customer’s DMA Resume Page 3 of 4 authorization. This database was developed internally and is unique is its ability to capture and retrieve key project information as part of the scope refinement process. In additional to our internal database system, we maintain a hardcopy file of many obscure and hard to locate third-party geotechnical reports. These reports often provide site specific geotechnical and ground temperature data from the late 1960s through today. These data are very useful in establishing a site history as part of a new scoping process. We maintain these hard copy reports by village location or by North Slope oil and gas project area. We also maintain a large collection of US, Canadian, and Russia (Federation and Soviet era) geotechnical research papers, some the founding work efforts in permafrost engineering. While most recent permafrost research efforts are available digitally through the Internet, many of our internal research papers are not commercially digitized and are very valuable in constructing design analysis spreadsheets or understanding the technical basis – and limitations – developed as part of the original research. DMA has seven experienced engineers/geologists able to supervise large, complex geotechnical field investigation projects. Two, Duane Miller and Walt Phillips bring a combined 75+ years of Alaskan experience to schedule, budget and resource assignment to any geotechnical effort regardless of size, locations or logistical complexity. Duane and Walt have successfully conducted concurrent large, complex geotechnical investigations for major oil and gas projects on the North Slope where remote camps, fuel logistics and Rolligon/helicopter support elements were necessary in areas of extreme environmental sensitivity. In additional to Duane and Walt, four senior personnel at DMA: Richard Mitchells, Susan Wilson, Jeremiah Drage, and Daniel Willman bring strong field geotechnical supervision capabilities. All four have experience with helicopter sling drilling operations, coring projects, remote camp and Alaskan ‘Bush’ experience. DMA field geologists/engineers including Nathan Luzney, Jeff Kenzie and Heather Brooks each bring field experience managing day-to-day drilling operations and logistical support for field projects. DMA maintains a complete in-house field sampling program for nearly any geotechnical investigation need. Unique to cold regions field investigations, we have developed a continuous sampling system that eliminates the need for refrigerated coring. Of particular importance for arctic and subarctic geotechnical field efforts is the need to collect reliable ground temperatures. We have adopted digital temperature measurement systems to accurately capture ground temperature data. DMA Resume Page 4 of 4 DMA engineers are peer recognized experts in cold regions geotechnical engineering as well as unfrozen ground geotechnical engineering. We have four geotechnical engineers licensed in Alaska and one Alaska licensed geologist. In unfrozen soil conditions, we adhere to geotechnical engineering designs using NAVFAC DM-7 and USACE EM-1110-1 and EM-1001-2 series design manuals. In addition, we rely on computer aided engineering support for many projects using Apile, Lpile, GRL-WEAP, PYWall, Reame, and a variety of other limit equilibrium slope analysis software tools. Our engineering staff also has expertise in seismic analysis capabilities, augmented with ProShake and Newmark displacement analysis software analysis tools. We are able to conduct liquefaction analysis using methodologies developed by Youd, et. al. as part of the NCEER Workshop Evaluation on Liquefaction. Since virtually no commercial engineering design software has been developed for cold region foundation engineering, DMA has developed and maintains an in-house library for cold regions foundation design, ranging form codified US Air Force/Army TM 5-852-4 (Arctic and Subarctic Design Manual) to salinity based primary and secondary creep in ice poor and ice rich permafrost as developed by Nixon, Sego and Bigger, CRREL, and Sayles. We also use Temp/W for finite element thermal analyses on our cold regions projects. We maintain a comprehensive internal climate database using six key climate centers (Barrow, Bethel, Nome, Kotzebue, Fairbanks and Gulkana) of daily climatic and temperature records from at least 1940 through present. In addition, we maintain a comprehensive temperature database for Prudhoe Bay with daily temperatures from the mid 1960’s. These data are used to forecast warming trends for air temperature and freezing or thawing indices throughout arctic and subarctic Alaska. DMA conducts groundwater analysis as part of our routine geotechnical assessments for foundation design and embankment seepage analysis. We rely on specialized third-party providers for more detailed groundwater analysis, if necessary. BBFM Engineers, Inc. 510 L Street, Ste 200 Anchorage, AK 99501 Phone: 907-274-2236 Fax: 907-274-2520 Company Overview Alaska Business License 218579 MBE status – N/A BBFM Engineers Inc. is an Alaskan company specializing in structural engineering design. The principals of BBFM Engineers are: Dennis L. Berry PE, Forrest T. Braun PE, Troy J. Feller PE and Colin Maynard PE. All four principals were either raised or born in Alaska. The company was established in 1996; however, the principals have been working together for over 18 years (in fact, two have been working together for over 30 years). The ten structural engineers and four drafters make BBFM Engineers one of the larger structural engineering staffs in the state. BBFM Engineers has been fortunate to average over 150 projects per year, on a variety of different project types using several different delivery systems. Over 80% of our work comes from repeat clients. Over the years, BBFM Engineers has received numerous awards for a variety of facilities—for public and private clients. The engineers have worked with all of the various structural materials in designs for structures in over 150 different communities around the state: from Ketchikan to Shemya, from Kodiak to Barrow. BBFM Engineers prides itself on working within the constraints set by nature, and the owner, and finding a solution that is not only structurally sound, but also cost effective and, when exposed, aesthetically pleasing. BBFM Engineers has a proven record of successful work on small, large and medium projects. This experience has been gained over the last 11 years (up to 34 years for the principals) on projects all over Alaska for military and civilian clients. We are aware of the level of production effort and coordination that is necessary for the development of high quality construction documents. In addition, we understand the level of management required to ensure that a quality product is produced. Our firm has a depth and breadth of experience with Alaskan Arctic projects to its credit and we are skilled in providing cost-effective, creative design solutions to meet the needs of our clients. Our engineers are experienced team players who are flexible and responsive to client needs. Project Experience BBFM Engineers has completed more than 80 building and tower projects in the Yukon Kuskokwim Delta and Northwest Alaska. We have experience designing tower foundations in many of the different geotechnical conditions that exist throughout Northwest Alaska. We have designed tower foundations in 12 different villages in soil conditions ranging from marginal permafrost in deep silty soils, to mountain top bedrock. Page 2 of 4 Resources BBFM Engineers has a staff of ten structural engineers (nine licensed), four CAD drafters, an office manager and an administrative assistant. This makes us one of the largest structural engineering staffs in the state of Alaska and, as such, we have the ability to work on projects with aggressive schedules. The engineers work as a team to complete established work schedules and we are able to re-assign staff as needed to meet accelerated schedules. Our staff meets weekly to review the workload and upcoming deadlines. We are capable of adding new design projects soon and having them blend readily into our workload. BBFM Engineers is committed to providing timely services and meeting all project schedules; we know we can bring the Wind Turbine projects to a successful completion. Equipment: BBFM Engineers uses a variety of automated systems to produce quality designs and quality construction documents. For contract documents, the latest version of AutoCAD is used. For specifications, the staff has used a variety of programs including MasterSpec. The office has its own computer network for sharing of databases, communication programs, the Internet, direct modem connections and, of course, complete backup records. In addition, the staff at BBFM Engineers is proficient in the use of computers for structural analysis and design, and uses the following analysis software: • ETABS – Static and Dynamic wind and seismic lateral load analysis software for multi-story buildings • STAAD III – General 3D Finite Element Analysis for both large and small projects including vertical, and wind and seismic lateral loadings. • ENERCALC – Miscellaneous element design for individual beam column wall and footing design in concrete, masonry, steel, and wood and well as general seismic and wind design. • PCAMats – Concrete Mat Analysis Program used for the design of large mat foundations supporting multiple columns. • WoodWorks – A software package for the design of various wood components including plywood sheathed shear walls. • ADAPT – A post-tensioned concrete software package used to assist in the design of post-tensioned concrete slabs. • RAM Structural Systems – A computer program that analyzes and designs concrete and steel buildings, considering dead, live, snow, snow drift, wind, and seismic loads. RAM also converts the output into Autocad drawings, creates a list of all structural steel members in the building, and totals the structural steel weights. • SAFE – This program assists with the design of flat slabs, foundation mats, spread and combined footings based upon the finite element method and also includes 3D modeling. These programs allow us to work very efficiently and coordinate the design with the drafting effort. Page 3 of 4 Troy J. Feller, PE, Vice-President Principal-in-Charge Registrations: Alaska CE 8381 Education: BSCE, University of Alaska, Fairbanks 1987 MSCE, University of Washington 1989 Mr. Feller has worked in structural engineering offices in Anchorage and Seattle. Most of his experience has been in Alaska and he has been a resident of the State for the greater part of his life. He has worked with a variety of materials all over the state and is familiar with the constraints the arctic environment can put on structures and the people who build them. Not only has Mr. Feller designed new facilities and additions to existing facilities, he also has done many seismic analyses and upgrades of existing buildings: from high-rise steel framed office buildings to wood framed warehouses with precast concrete walls. Mr. Feller has been Principal-in-Charge for a variety of projects ranging in construction cost from $10,000 to $80 million. Mr. Feller is a strong team player—flexible and creative—with a methodical approach to project design and the personal determination to bring a project to successful completion. As Principal-in-Charge, Mr. Feller’s relevant project experience includes: Nome Wind Turbines, Nome This project involved designing foundations for 18 three-legged lattice wind turbine towers to be located on a ridge 500 feet above the city of Nome. The towers are 100 feet tall and are designed for high wind and icing conditions. The foundations feature a steel pier anchored into bedrock with grouted rock anchors. Newtok Tower Guyed tower using helical anchors for tower foundation and guy anchors. Nightmute Tower Guyed tower using helical anchors for tower foundation and guy anchors. St. Mary’s Tower 130’ free standing tower with 30” diameter steel pier supports founded in bedrock. Utilized drilled in rock anchors to resist uplift and thermoprobes to maintain frozen soil stability. Scammon Bay Tower 140’ free standing tower on mountain top with severe loading conditions. 36” diameter steel pier supports founded on small concrete pads cast on bedrock. Steel tube cross bracing used to resist large shear forces. Utilized drilled in rock anchors to resist uplift. Marshall Tower (Pilcher Mountain) 60’ free standing tower on mountain top with severe loading conditions. 24” diameter steel pier supports founded on small concrete pads cast on bedrock. Utilized drilled in rock anchors to resist uplift. Hooper Bay Tower and Satellite Dish 50’ free standing tower using driven pipe pile foundation system. Created new foundation for existing satellite dish with driven pipe piles. Russion Mission Tower 50’ freestanding tower using helical anchors for foundations. Page 4 of 4 Pilot Station Tower 50’ freestanding tower using helical anchors for foundations. ChevakTower 80’ freestanding tower using driven steel H pile for foundations. Utilized thermoprobes to maintain frozen soil stability. Nunam Iqua Tower 105’ freestanding tower using driven steel H pile for foundations. Utilized thermoprobes to maintain frozen soil stability. Holy Cross Tower 130’ freestanding tower using helical anchors for foundations. Mr. Fellers References Bob Garlock, Project Manager at Kenai Peninsula Borough, Central Peninsula General Hospital, 907-262-9657 ext. 2034, bgarlock@borough.kenai.ak.us Bill Watterson, Watterson Construction, 907-563-7441 Steve Peterson, Project Manager at National Park Services, 907-644-3475 3333 Arctic Boulevard, Suite 100 Anchorage, Alaska 99503 Phone: (907) 564-2120 Fax: (907) 564-2122 Our Firm. Hattenburg Dilley & Linnell LLC (HDL), is an engineering firm specializing in “client-focused” planning, civil engineering, transportation engineering, project management, earth science, geotechnical services, construction administration, and material testing. Scott Hattenburg and Lorie Dilley started Hattenburg & Dilley in July 2000. Dennis Linnell joined the firm in March of 2002, creating HDL. Our principals are actively involved with projects and are hands-on managers. We have structured our firm to produce a quality-centered, client focused atmosphere to provide you with superior services. Our main office and U.S. Corps of Engineer and AASHTO certified soils laboratory is located in Anchorage and we maintain a branch office in Palmer. HDL maintains a seasoned full-time staff of thirty-six (36), including seven licensed professional engineers, one professional surveyor, two geologists, three construction inspectors, two roadway designers, five engineers-in-training, three civil designers, four engineering technicians, one environmental specialist, and four administrative support personnel. We use state-of-the-art, field-to-finish civil software and computer hardware. Our workstations are equipped with a variety of the latest software including AutoCAD Release 2008, Land Development Desktop and Civil Design Software, Rockware Rockworks and Logger, Microsoft Office, MS Project, Adobe Photoshop and Illustrator, geotechnical software, and Topo Maps 3D. Our computer design personnel are high production graphic oriented technicians experienced with generating presentation graphics, drawings, engineering plans, and 3-dimensional graphic products. COMPANY OVERVIEW 3 ; Site Development ; Water and Sewer System Design ; Community and Regional Planning ; Project Programming ; Airport Planning and Design ; Bulk Fuel, POL and Pipelines ; Geotechnical Engineering ; Geothermal Resources ; Wind Power ; Geochemistry ; Soil, Aggregate, Concrete Testing ; Construction Administration ; Environmental Services and Permitting ; Surveying ; Road and Transportation Engineering CIVIL ENGINEERING HDL provides civil engineering services to a wide variety of clients throughout Alaska. These projects include civil site design, grading plans, and designs for utility improvements. AIRPORT PLANNING, DESIGN HDL offers airport master planning services as well as design of taxiways, runways, access roads, and related facilities. We also have conducted wind studies using our instrumentation expertise. Scott Hattenburg, our principal airport engineer has completed over 35 airport-related projects and has a 16 year working history with the FAA. We specialize in rural and city-owned airports. ƒ City of Wasilla Airport Master Plan ƒ Palmer Southwest Utility Extension to the Matanuska Valley Medical Center ƒ Valley Pathway School Site Design ƒ Alaska Zoo Entrance Site Design ƒ Chugach Alaska Office Building Site Design ƒ City of Palmer Sherrod Building ƒ ACS Parking Lot Design ƒ Palmer Airport Forestry Parking Lot ƒ Southcentral Foundation Primary Care Facility, Iliamna ƒ Wasilla Sewer Master Plan ƒ City of Palmer Headworks Building ƒ Chugach Street Water Replacement ƒ Helen Drive Utility Improvements ƒ South Anchorage Substation ƒ Nome Power Plant ƒ Elmendorf Fuel CEU Maintenance Hangar OUR SERVICES 4 ƒ Red Dog Mine Airport Planning ƒ Kaktovik Airport Master Plan ƒ Seldovia Airport Master Plan ƒ Merrill Field Access Road Reconstruct ƒ City of Palmer Airport Improvements ƒ City of Wasilla Airport Apron Improvements ƒ Nondalton Wind Study ƒ Rural Airport Embankment Evaluation: Chevak, Chefornak, Tuntutuliak & Kipnuk RURAL ENERGY We manage all phases of rural energy projects from the concept phase through final completion of construction. We provide in-house civil, geotechnical, and environmental phase services for these projects. HDL currently has two term agreements for design of rural energy projects: one with Alaska Energy Authority and the other with Alaska Village Electric Cooperative. In addition to the rural energy projects we have two certified tank inspectors on staff and have produced a number of Spill Prevention Control and Countermeasure (SPCC) Plans for the State and private companies throughout Alaska. ƒ Middle Kuskokwim Regional Energy Project (Sleetmute, Stony River, Crooked Creek, Chuathbaluk, Red Devil, Aniak & Takotna) Concept Design, Design, and CA ƒ White Mountain Bulk Fuel CA ƒ Koyukuk Power Plant and Bulk Fuel Facility Design and CA ƒ Chevak Power Plant & Bulk Fuel Facility Concept Design ƒ Noatak Bulk Fuel Concept Design ƒ Hooper Bay Bulk Fuel Concept Design ƒ Mountain Village Bulk Fuel Concept Design ƒ Koyuk Bulk Fuel Facility Concept Design, Design and CA ƒ Nunapitchuk/Kasigluk Amalgamated Energy Concept Design and Design ƒ Golovin Bulk Fuel Facility Construction 5 GEOTECHNICAL ENGINEERING HDL’s geotechnical division provides foundation design recommendations for a wide variety of structures including power plants, transmission lines, bulk fuel facilities, substations, roads, bridges, and buildings. We have developed pile recommendations for warm permafrost, cold permafrost, and organic rich soils. We have specialties in thermal analysis, instrumentation, and geochemical assessments. Given the nature of soils in Alaska we offer creative solutions to the more common foundation problems. ƒ Nome Power Plant Foundation – Dynamic Compaction of Loose Soils ƒ Merrill Field Access Road – Dynamic Compaction of Landfill ƒ Unalaska Power Plant Foundation and Site Selection ƒ Chugach Electric Transmission Line for South Anchorage ƒ Nunapitchuk/Kasigluk Helical Pier Foundation for Wind Towers ƒ Helical Anchor Design for Multiple Subdivisions ƒ Thermal Analysis of Four Rural Airport Embankments ƒ Parks Highway Geotechnical Study MP 72-83 ƒ Foundation Design for F-22 Fuel Maintenance Hangar ƒ Quarry Source Assessment for Village of Elim GEOTHERMAL RESOURCES HDL’s geotechnical group has been actively involved in the development of geothermal resources. We offer a wide range of geological and geochemical services for the exploration and development of geothermal power in Alaska. We are developing a new method, Fluid Inclusion Stratigraphy (FIS), based on measuring the gas concentrations trapped within minerals for evaluating the hydrological regime in geothermal reservoirs. This low cost, rapid, logging method can be used as the well is being drilled to determine if hot reservoir fluids have been encountered and if permeable zones exist in the well. We are also working under a grant from the US Department of Energy on using this technique for determining fracture locations in Enhanced Geothermal Systems. We work closely in collaboration with the Department of Earth Sciences of New Mexico Tech and the Energy and Geoscience Institute at the University of Utah. ƒ Preliminary Feasibility Study – Pilgrim Hot Springs – Alaska Energy Authority ƒ Preliminary Geological Evaluation – Naknek Geothermal Sources ƒ Fluid Inclusion Stratigraphy – New Tool for Geothermal Reservoir Assessment: Coso Geothermal Field, California – California Energy Commission ƒ Identifying Fractures using FIS in Enhanced Geothermal Systems – Department of Energy ƒ 2D and 3D Fluid Model of Coso Geothermal Field, California – US Navy Geothermal Program Office 6 WIND POWER HDL provides civil engineering solutions for the development of wind power in Alaska. We have provided foundation design recommendations, permitting and civil engineering services. AVEC has been instrumental in developing wind power in rural Alaska and the firm has worked closely with AVEC on these technically challenging projects. We have teamed with an Alaskan construction company and a wind turbine manufacturer to create the Alaska Wind Resource Group (AWRG). ƒ Prototype Designs for the AOC Wind Turbine Foundations, Various Villages - AVEC ƒ Nunapitchuck/Kasigluk geotechnical and civil design for Northwood 100 turbines - AVEC ƒ Hooper Bay geotechnical and permitting for three Northwind 100 turbines - AVEC ƒ Chevak geotechnical, permitting and civil design for four Northwind 100 turbines - AVEC ƒ Nome/Bering Straits Native Corp wind turbines permitting for 18 Entegrity 60kW turbines CONSTRUCTION ADMINISTRATION AND MATERIAL TESTING Our construction quality control programs typically include our strong daily presence on the jobsite. Our field technicians maintain contact with project managers and the client representative through daily reports and weekly status reports. We are typically responsible for certifying compliance with shop drawings; measuring quantities of pay items; auditing survey data (line, grade, and quantities); computing quantities; monitoring yields and overseeing field adjustments; performing and managing materials inspection; inspecting workmanship; preparing directives, change orders, and supplemental agreements; preparing periodic/final payment estimates and reports; confirming materials/equipment tests; coordinating off-site inspection services by others; analyzing construction contractor claims if any, and maintaining photo record of construction. Our laboratory technicians provide testing in accordance with ASTM, AASHTO, ATM, and WQTEC testing standards for soil and concrete. Our laboratory is certified by US Army Corps of Engineers, AASHTO, and concrete to conduct a wide variety of soil, concrete, aggregate, and grout testing. We can provide both ACI certified concrete and NRC certified nuclear equipment field technicians. The laboratory maintains nuclear densometers, concrete field sampling equipment and laboratory concrete strength testing equipment. In addition, we maintain triaxial strength testing equipment, permeability testing equipment, and consolidation testing equipment for non-routine soil testing. 7 ƒ Glenn-Bragaw Interchange, DOT, Anchorage ƒ Taxiway Alpha Construction, Palmer ƒ Division of Forestry Fire Retardant Loading Facility, Palmer ƒ Highland Subdivision Road Reconstruction, Palmer ƒ Nome Power Plant Pad Construction, Nome ƒ Fuel Maintenance Hangar and Taxiway, Elmendorf AFB ƒ Eagle-Gulkana Street, Palmer ƒ Wasilla Airport Apron Construction, Wasilla ƒ Nome Power Plant Concrete Testing, Nome ƒ Wasilla Airport Apron Construction, Wasilla ENVIRONMENTAL AND PERMITTING Our environmental and permitting team provides all phases of environmental documents and permitting for a wide range of engineering projects. We are skilled in the NEPA process having completed many Environmental Reviews, Environmental Checklists, and Environmental Assessments. Our services include Phase 1’s; Wetland Delineation; Wetland Functional Assessment; Hydrology Assessments; Section 7 Consultation; and Government to Government Consultation. We have permitted airports, roads, bulk fuel facilities, power plants, water and sewer improvements, site layouts, and wind generators. ƒ Palmer Airport Apron Categorical Exclusion ƒ Barter Island Airport Phase I Environmental Site Assessment ƒ Palmer Airport Phase I Environmental Site Assessment ƒ Nunapitchuk/Kasigluk Amalgamated Energy Improvements ƒ Middle Kuskokwim Regional Energy Project ƒ Chugach Electric South Anchorage Substation Storm Water Pollution Prevention Plan ƒ Hatcher Pass Scenic Outlook Storm Water Pollution Prevention Plan ƒ Seldovia Airport Master Plan Permits ƒ Hooper Bay Wind Turbine Environmental Assessment ƒ Savoonga Wind Turbine FAA Permits ƒ Chevak Energy Upgrades Permitting ƒ Government to Government Consultation with Native Village of Kaktovik ƒ City of Palmer Water and Sewer Extension Permits ƒ Kipnuk New Airport Stream Gauging SURVEYING At HDL we understand that land surveying is often the starting point for the design of a project. As such, we realize how important precise, quality field data can be in starting your project in the right direction. Our field crews and office technicians are equipped with the latest survey equipment and software. We have recently acquired a new conventional and GPS survey equipment system that easily integrates traditional survey techniques with Static and Real-Time Kinematic GPS surveying. This new system utilizes GPS and Russian Glonass Satellites enabling us to gather data in areas previously unsuitable for GPS surveying. As part of this system we have developed an innovative data collection process which uses comprehensive field coding and data reduction software to quickly 8 transfer field data into final processed information ready for design. This new way of thinking towards surveying providing our clients with precise, quality controlled data for even the most aggressive schedules and budgets. Our experienced survey staff has provided survey services across Alaska for a variety of projects and clients. This experience along with HDL’s commitment to a client focused atmosphere provides our clients with the best possible survey and mapping products. ƒ ALTA/ACSM Land Title & Boundary Surveys ƒ Engineering Design Surveys ƒ Right of Way and Boundary Surveys ƒ Platting for Commercial and Residential Subdivisions ƒ Control for Photogrammetric and LIDAR Mapping ƒ Construction Surveying ROAD AND TRANSPORTATION ENGINEERING Our road and highway design team provides planning, preliminary and final engineering, and peer/quality control review for a wide range of road and highway projects. We manage the right-of-way acquisitions, traffic studies, public meetings and all aspects of providing a complete road design package. ƒ Palmer Dogwood Avenue Extension & Signalization ƒ Anchorage 3rd Avenue Rehabilitation ƒ Seldon Road—Matanuska-Susitna Borough ƒ Parks Highway MP 72-83 Rehabilitation ƒ Palmer Evergreen & Gulkana Street ƒ Wasilla Church Road Analysis ƒ Parks Highway MP 44-52.3 Upgrade ƒ Wasilla Crusey Street Improvements ƒ Wasilla Lucas Road Improvements ƒ Palmer Chugach Street ƒ Wasilla Transportation Plan Update Now more than ever your business’ bottom line depends on a healthy network infrastructure. You can depend upon B2 Networks to make sure your network - and your business - are successful. With more than 30 years combined experience at the Principal/Partner level, B2 Networks has the depth of experience and range of skills required to understand your business and its technology infrastructure requirements. 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We respect our clients’ priorities but we also ensure that they undertake the fiscal and technical planning necessary to deal with aging technology installations in the future. This approach helps ensure that our clients adequately plan for capital investment in technology while also considering long term operations and maintenance costs with an eye toward multi-year cycles. visit us online 4 www.B2AK.com IT and Networking Consulting Services 360 West Benson • Anchorage, AK 99503 Phone: (907) 569-2225 • Fax: (907) 569-2220 B2 Links Telecom and Technology to Your Core Business • IP telephony • IP video • Managed WAN • Managed LAN • Managed VPN and security solutions IP Phone Systems You’ve probably heard the term “Unified Communications” (UC) and maybe you’ve wondered what it’s all about. Unified Communications combines voice, video, and data networks to make them more efficient and effective. An IP telephony system is one of the main components of any UC network. B2 can help you migrate from your existing phone system to an IP phone system from the leader in the field. We’ve partnered with Cisco Systems to bring feature-rich IP phone systems to Alaska’s small and medium businesses. Managed WAN Services Wide Area Network IP routing and switching technologies are a B2 mainstay and area of specialized expertise. Managed LAN Services B2 provides flexible and wide-ranging services, from design/ specification and deployment/installation of switched soho, building or campus LANs to host-based systems design and deployment. IP Video Systems B2 is an effective partner for businesses seeking a design, development and deployment partner for multi-vendor H.323 systems. B2 specializes in enterprise LAN/WAN to Internet gateway “border traversal” deployments. Managed VPN & Security Systems B2 has deployed hundreds firewalls and security appliances, provides configuration design and management services for IP security technologies and incorporates enterprise-level best practice in security systems development/deployment. visit us online 4 www.B2AK.com 360 West Benson • Anchorage, AK 99503 Phone: (907) 569-2225 • Fax: (907) 569-2220 Cisco Systems B2 Networks LLC is a Cisco Select Certified technology partner. Cisco Systems designs, manufactures and sells networking, communications equipment and services under the brand names Cisco, Linksys, Webex and IronPort. IPcelerate Delivers More for VoIP IPcelerate was established in 2004 to provide commercial and enterprise customers with enhanced applications and solutions within a VOIP environment. Headquartered in Carrollton, Texas, the company provides clients with highly integrated VOIP solutions that converge with a new or existing telecommunications infrastructure to better utilize investments in resolving business-critical issues. Strategic Technology Partners Find what you’re looking for... with B2 Networks! • Company Profile www.pcorpalaska.com COPYRIGHT CLAIM © 2006 Powercorp Pty Ltd This publication is confidential. It is subject to copyright. It contains intellectual property and references to intellectual property owned whole or in part by Powercorp. No part of this publication may be reproduced by any process, electronic or otherwise, without the specific written permission of Powercorp. Neither may information be stored electronically in any form whatsoever without such permission. This publication must not be disclosed to any person without the prior written consent of Powercorp. This publication, and the intellectual property that it contains or refers to, must not be used for any purpose whatsoever without the prior written consent of Powercorp. The person to whom this publication is addressed or to whom it was initially provided by Powercorp, may use this publication solely for the purpose of assessing Powercorp’s capability to undertake works or provide consultancy services as set out in this publication and for no other purpose. In particular, and without limitation, this publication and the intellectual property that it contains or refers to must not be used in the preparation of calls for the expressions of interest, invitations to tender, specifications, or similar documents without the prior written permission of Powercorp. Inquiries should be address to the Manager Projects, Powercorp, PMB 88, Berrimah, Northern Territory, 0828, Australia Page 3 of 29 CONTENTS PAGE 1. EXECUTIVE SUMMARY .................................................................................................................. 4 1.1 Establishment ............................................................................................................................ 4 1.2 Renewable Energy .................................................................................................................... 4 1.3 Wind Farm Construction ............................................................................................................ 5 1.4 Grid Stabilization Technology (PowerStore) ............................................................................. 5 2. COMPANY INFORMATION ............................................................................................................. 6 2.1 POWERCORP ........................................................................................................................... 6 2.2 Fields of Operation .................................................................................................................... 7 2.3 Corporate Governance .............................................................................................................. 8 3. CORPORATE STRUCTURE .......................................................................................................... 10 3.1 Management ............................................................................................................................ 10 3.2 Key Personnel ......................................................................................................................... 10 3.3 Powercorp Management Structure .......................................................................................... 12 4. TECHNOLOGY EXPERIENCE ...................................................................................................... 13 4.1 Automatic Control .................................................................................................................... 13 4.2 High Speed Generator Technology ......................................................................................... 13 4.3 Wind Turbine Technology ....................................................................................................... 14 5. PROJECTS / REFERENCE LIST ................................................................................................... 15 5.1 Operational Capability – powercorp ........................................................................................ 15 5.2 Summary of Recent Projects & Equipment ............................................................................. 21 5.2.1 Coral Bay Wind Diesel Project, Western Australia .......................................................... 21 5.2.2 Hopetoun Wind Diesel Project, Western Australia .......................................................... 21 5.2.3 Home Island Wind Diesel Project, Cocos (Keeling) Islands ............................................ 22 5.2.4 Rottnest Island Wind Diesel Project, Western Australia ................................................. 22 5.2.5 Mount Millar Wind Farm, South Australia ........................................................................ 23 5.2.6 Bremer Bay Wind Diesel Project, Western Australia ...................................................... 23 5.2.7 Nguiu Power Station, Northern Territory ......................................................................... 24 5.2.8 Mawson Wind Diesel Project, Antarctica ......................................................................... 24 5.2.9 Esperance Wind Diesel Project, Western Australia ........................................................ 24 5.2.10 Denham Wind Diesel Power Station, Western Australia ............................................. 25 5.2.11 Albany Wind Farm, Western Australia ........................................................................ 26 5.2.12 Windy Hill Wind Farm, Queensland ............................................................................ 26 6. PROJECT MANAGEMENT ............................................................................................................ 27 6.1 Occupational Health & Safety ................................................................................................. 28 6.2 OH&S Performance and Breaches ......................................................................................... 28 6.2.1 Safety Performance ......................................................................................................... 28 6.2.2 OH&S Breaches .............................................................................................................. 28 6.3 Prohibited Hazardous Materials .............................................................................................. 28 6.4 Quality Assurance ................................................................................................................... 29 Page 4 of 29 1. EXECUTIVE SUMMARY 1.1 ESTABLISHMENT Formed in Darwin, Australia, in 1988 Powercorp has automated a wide range of diesel generator stations in Northern Australia, completed advanced wind diesel projects around the world and more recently designed and constructed two of the world’s largest high penetration wind diesel systems. Powercorp Alaska LLC located in Anchorage, Alaska was formed in 2003 and our newest Alaskan company, Wind- Diesel North America, LLC was formed in 2009 as our North American counterpart for the manufacturing of core power station stabilization and control products in North America. The Powercorp Group is largely a research engineering Group with strong capability in electrical network stabilization and generation plant control. It stands ready to serve any customer with grid instability problems or those requiring high penetration renewable energy integration. For further information about the Powercorp Group, our history and capabilities please refer to our website www.pcorp.com.au or Powercorp Alaska, www.pcorpalaska.com. 1.2 RENEWABLE ENERGY The chief problem facing wind and/or solar diesel systems, and indeed any renewable energy fuel saving technology when connected to isolated grids, is the instability caused on the grid by power surging. Such surges and frequent loss of generation can be caused by wind gusts and lulls or cloud cover in the case of solar systems. It is not possible for conventional generators to cope with these power instability issues and blackouts usually result if the renewable energy contribution is much above 25% of the load. Even when the wind flow is low the fluctuations in wind speed can cause Page 5 of 29 unacceptable generator response called “hunting” which uses more fuel and can cause engine damage. 1.3 WIND FARM CONSTRUCTION Powercorp has its own Wind Farm Construction Group targeted at small wind farms for wind diesel applications. We have however completed several large wind farm construction projects we have been working on wind farm tendering and implementation of wind power projects since 1996, providing full project management and turnkey installation service, ranging from bid preparation, site evaluation/selection, wind farm design, construction of civil and electrical works and network connection service. Powercorp has constructed large wind farms at Windy Hill QLD ($14.5M), Albany WA ($34M) and Mt Millar SA ($110M) 1.4 GRID STABILIZATION TECHNOLOGY (POWERSTORE) The grid stability issue is seen in many small grids and at the end of long distribution lines. Powercorp developed expertise in inverter technology with specialization in high speed bi-directional control to solve the grid instability problem. With these solutions now a commercial reality, Powercorp stands as the most advanced high penetration renewable energy company in the world. This work is expanding to encompass mine sites and industrial complexes. Powercorp’s PowerStore stabilization technology comprises a flywheel and inverter technology that has been designed to very rapidly absorb and deliver power to dampen all instability and maintain grid specifications to utility standards. As well as real power support the inverters can supply VARs to support voltage. Page 6 of 29 2. COMPANY INFORMATION 2.1 POWERCORP Powercorp was established in 1988 and Powercorp Alaska in 2003 to develop innovative solutions for remote diesel power stations in the North of Australia, northern Europe and North America (Alaska and Canada). In 2009 we opened Wind-Diesel North America, LLC, also in Anchorage, Alaska, to manufacture our products locally and market them to all of North America. Over the years, Powercorp engineers have developed sophisticated management systems for all levels of power station operation and have applications throughout the world. The head office in Darwin includes a substantial workshop, testing and training facilities. Because the software for our products has been developed in-house, we have the ability to customize it to suit the individual needs of the customer. Additionally, we have the expertise and know-how to develop new control modules or features. All of which, when combined with a vision to the future amounts to a highly specialized boutique company which can offer innovative solutions tailored to the individual needs of our customers. In early 2007 Powercorp developed a partnership agreement with EP Global Energy Ltd (EPGE). EPGE is a member of the Paraskevaides Group of companies based in Cyprus with its share holder J&P International Contractors as one of the largest construction companies throughout the world. The objective of the partnership with Powercorp is to develop, build, and operate strategic sustainable power generation sites around the world. This activity is centered on wind farm design and construction. In late 2007 EPGE purchased a 50% stake in Powercorp. Page 7 of 29 2.2 FIELDS OF OPERATION š Control Systems š Projects š Research & Development š Power Electronics š Distributed Generation š Wind/Diesel Power System Technology š Wind Studies-Assessment š Wind Farm Planning-Design š Training Courses š Technical Assistance š Emergency and After Hours Support Page 8 of 29 2.3 CORPORATE GOVERNANCE Company Name: Powercorp Group of Companies Trading As: Powercorp Operations Pty Ltd ACN: 070 662 369 ABN: 45 070 662 369 Powercorp Research & Development Pty Ltd ACN: 099 592 819 ABN: 47 099 592 819 Powercorp Alaska LLC Wind-Diesel North America, LLC Place of Incorporation: Darwin, Northern Territory, Australia Anchorage, Alaska, United States of America Physical Address: Export Drive Darwin Business Park Berrimah, Northern Territory Australia, 0828 251 N. Post Road Anchorage, Alaska 99501 United States of America Postal Address: PMB 88 Berrimah, Northern Territory Australia, 0828 251 N. Post Road Anchorage, Alaska 99501 United States of America Page 9 of 29 Telephone: +61 (0)8 8947 0933 (907) 646-9997 Facsimile: +61 (0)8 8947 0925 (907) 646-9079 Website Address: www.pcorp.com.au www.pcorpalaska.com Email Address: mail@pcorp.com.au erin-pcorp@alaska.com Managing Director: Alan Langworthy BSc (Hons) General Manager: Christopher Langworthy, Powercorp Erin McLarnon, Powercorp Alaska & Wind-Diesel North America Date Established: Powercorp Pty. Ltd. - January 1998 Powercorp Alaska, LLC – September 2003 Wind-Diesel North America, LLC – June 2009 Page 10 of 29 3. CORPORATE STRUCTURE 3.1 MANAGEMENT Powercorp has a flat management structure with a culture of empowering staff with decision-making authority. Department Heads undertake coordination and mentoring role for staff within their Departments. Outside of the formal structure is a project team structure that adapts to the changing requirements of projects or activities. The project teams draw appropriate staff from all Departments as required. The teaming approach is very successful in project management. 3.2 KEY PERSONNEL Role Nominated Personnel Relevant Qualifications Previous Project Experience Managing Director Alan Langworthy Bachelor of Science (Hons) Mt Millar Wind Farm Project, Romania Wind Farm Development, New Business Development General Manager Christopher Langworthy Erin McLarnon Independent business development London / UK Bachelor of Science Golovin Controls, North Slope Borough Wind Study-Assessment Manager, Internal Services Juergen Zimmermann Masters of Engineering (Electrical) Ross Island Wind Energy Project (Antarctica), Leinster PowerStore System, Albany Wind Farm, Esperance Wind/Diesel System Manager, External Services Russell Cahill Associate Diploma Engineering (Electrical) A Grade Electrician Coral Bay Wind / Diesel Project, Hopetoun Wind ./ Diesel Project, Rottnest Island Wind / Diesel Project, Home Island Wind / Diesel Project (Cocos Island) Power Electronics Engineer Dr. Andrew Tuckey PhD Electrical & Electronic Engineering (Power Electronics) Flores PowerStore System, Graciosa PowerStore System, Low Load Diesel Product Page 11 of 29 Role Nominated Personnel Relevant Qualifications Previous Project Experience Senior Software Engineer Phillip Maker Bachelor of Mathematics Bachelor Of Science (Computing Science) Denham Wind/Diesel System Graciosa PowerStore System Flores PowerStore System Project Engineer Gavin Bates Bachelor of Engineering (Electrical) Denham Wind / Diesel System, Leinster PowerStore System, Mawson Wind / Diesel System (Antarctica) Page 12 of 29 3.3 POWERCORP MANAGEMENT STRUCTURE Powercorp AlaskaGeneral Manager Erin McLarnonBoard of Directors Gavin Bates Dale Letourneau Doug Vaught Wind-Diesel NA Board of Directors Page 13 of 29 4. TECHNOLOGY EXPERIENCE 4.1 AUTOMATIC CONTROL Powercorp is a primary provider of automatic control system and remote communication technologies, specifically designed for remote diesel and wind/diesel power supply systems. Powercorp is the designer, constructor and installer of these automatic control and communication systems. Powercorp designed automatic diesel control and communication systems that are currently operating in aboriginal communities in the Northern Territory, and also sites in Western Australia, Queensland, Malaysia and Alaska. 4.2 HIGH SPEED GENERATOR TECHNOLOGY The development and widespread installation of automatic diesel control systems throughout the Northern Territory and other locations has given Powercorp extensive experience in general with respect to remote community’s power generation and high speed diesel generators. Powercorp works closely with original equipment manufacturers representatives such as Detroit, Caterpillar and Cummins to define generator set specifications and control interfaces. Specially configured generators such as the low load diesel installed at Denham Power Station was specified and installed by Powercorp. Page 14 of 29 4.3 WIND TURBINE TECHNOLOGY Powercorp has extensive experience in the design, development and installation of wind/diesel systems and specification, installation and operation of wind turbine generators. Powercorp has designed and installed wind/diesel systems at the following locations: š Bremer Bay, Western Australia š Cocos (Keeling) Island, Indian Ocean š Denham, Western Australia š Esperance, Western Australia š Hopetoun, Western Australia (Stage I and Stage II) š Mawson Base, Antarctica š Rottnest Island, Western Australia š Coral Bay, Western Australia Powercorp has also gained extensive experience in the specification, supply and installation of wind turbine generators after completing several wind farm construction projects. In summary Powercorp has completed the following wind farm construction projects: š Albany Wind Farm, WA, twelve (12) X ENERCON E-66/1.8 MW wind turbine generators š Mt Millar Wind Farm, WA, thirty-five (35) ENERCON E-70/2MW wind turbine generators š Windy Hill, Ravenshoe QLD, twenty (20) X ENERCON E-40/600 kW wind turbine generators š Exmouth, Western Australia, one (1) X Westwind 20kW wind turbine generator š Nine Mile Beach Wind Farm, Esperance WA six (6) x ENERCON E-40/600 kW wind turbine generators Page 15 of 29 5. PROJECTS/ REFERENCE LIST 5.1 OPERATIONAL CAPABILITY – POWERCORP CLIENT PROJECT TECHNICAL DETAILS DATE Verve Energy Kalbarri Wind Farm Project Supply, installation and commissioning of 1 x 1MW PowerStore in static compensation mode 2008 Hopetoun Wind Diesel Project Supply, installation and commissioning of 7 x LLDs, 1 x PowerStore and Powercorp’s Control System. 2007 Coral Bay Wind Diesel Project Supply, installation and commissioning of 7 x LLDs, 1 x PowerStore and Powercorp’s Control System. 2007 Perry Brothers Power Generation Home Valley Power Station Supply and commissioning of Powercorp’s Control System. 2007 Power and Water Corporation Maningrida Supply, installation and commissioning of Powercorp’s Control System. 2007 Great Southern Plantations (Silvertech) Maxwell Creek Power Station Supply and commissioning of Powercorp’s Control System. Turn Key project. 2006 Power and Water Corporation Elcho Island Power Station Supply, installation and commissioning of Powercorp’s Control System. 2006 Epinara Power Station Supply, installation and commissioning of Powercorp’s Control System. 2006 Jilkmingan Power Station Supply, installation and commissioning of Powercorp’s Control System. 2006 BHP Billton Leinster Nickel Operation Supply, installation and commissioning of 1 x 1MW PowerStore in peak lopping mode 2005 Q-Energia Flores, The Azores Installation of 500kW PowerStore in wind diesel system 2005 Page 16 of 29 Q-Energia Graciosa, The Azores Installation of 500kW PowerStore in wind diesel system 2005 Power and Water Corporation Daly River Mission Supply, installation and commissioning of Powercorp’s Control System. 2005 Alaskan Energy Authority Golovin Power Station Supply, installation and commissioning of Powercorp’s Control System. 2004 Department of Transport and Regional Services Home Island, Cocos (Keeling) Islands Wind Diesel Project 4 X 20kW Westwind wind turbine generators, Powercorp Control System, 4 x 320kW Powercorp containerised diesel generators. Turn key project. 2004 Generator Hire Services Morton Island, Tangalooma Power Station Supply and commissioning of Powercorp’s Control System 2004 Power and Water Corporation Alcoota Power Station Supply, installation and commissioning of Powercorp’s Control System. 2004 Amanbigi Power Station Supply, installation and commissioning of Powercorp’s Control System. 2004 Bonya Power Station Supply, installation and commissioning of Powercorp’s Control System 2004 Canteen Creek Power Station Supply, installation and commissioning of Powercorp’s Control System 2004 Eva Valley Power Station Supply, installation and commissioning of Powercorp’s Control System. 2004 Tarong Energy Mt Millar Wind Farm 35 X Enercon E-70/2MW wind turbine generators 2004 Western Power Corporation Bremer Bay Wind Diesel Project 1 X Enercon E-40/600kW wind turbine generator, Powercorp Control System, civil works. Turn key project. 2004 Hopetoun Wind Diesel Project 1 X Enercon E-40/600kW wind turbine generator, Powercorp Control System, civil works. Turnkey 2004 Page 17 of 29 Rottnest Island Wind Diesel Project 1 X Enercon E-40/600kW wind turbine generator, Powercorp Control System, civil works. Turn key project. 2004 Australian Antarctic Division Mawson Wind Diesel Project 3 X Enercon E-40/600kW wind turbines and Powercorp Boiler Grid Interface, Powercorp Control System 2003 Power and Water Corporation Bulla Power Station Supply, installation and commissioning of Powercorp’s Control System. 2003 Nguiu (Bathurst Island) Power Station Supply, installation and commissioning of Powercorp’s Control System. 2003 Tara Power Station Supply, installation and commissioning of Powercorp’s Control System. 2003 Imampa Power Station Supply, installation and commissioning of Powercorp’s Control System. 2003 Western Power Corporation Denham Wind Diesel System & Showcase Projects 3 X Enercon E-30/230kW wind turbine generators. Turn key project. 2003 Esperance Wind Diesel Project 6 X Enercon E-40/600kW wind turbine generators, Powercorp Control System 2003 Power and Water Corporation Harts Range Power Station Supply, installation and commissioning of Powercorp’s Control System. 2002 Ngukurr Power Station Supply, installation and commissioning of Powercorp’s Control System. 2002 Power and Water Corporation Haasts Bluff Power Station Supply, installation and commissioning of Powercorp’s Control System. 2001 Kalkaringi Power Station Supply, installation and commissioning of Powercorp’s Control System. 2001 Western Power Corporation Albany Wind Farm 12 X Enercon E-66/1.8MW wind turbine generators 2001 Page 18 of 29 Power and Water Corporation Yarralin Power Station Supply, installation and commissioning of Powercorp’s Control System. 2005 - Upgraded Powercorp Control System. 2000 & 2005 Stanwell Corporation Windy Hill Wind Farm 20 X Enercon E-40/600kW wind turbine generators 2000 Power and Water Corporation Borroloola Power Station Supply, installation and commissioning of Powercorp’s Control System. 2004 - Upgraded Powercorp Control System. 1999 Minyeeri Power Station 1998 - Supply, installation and commissioning of Powercorp’s Control System. 2004 - Upgraded Powercorp Control System. 1998 & 2004 Papunya Power Station Supply, installation and commissioning of Powercorp’s Control System. 1998 Pirlangimpi (Garden Point) Power Station Supply, installation and commissioning of Powercorp’s Control System. 1997 Hermannsburg Power Station Supply, installation and commissioning of Powercorp’s Control System. 1997 & 2002 Maningrida Power Station 1997 - Supply, installation and commissioning of Powercorp’s Control System. 2002 - Upgraded Powercorp Control System. 1997 & 2002 Ti Tree Power Station 1997 - Supply, installation and commissioning of Powercorp’s Control System. 2004 - Upgraded Powercorp Control System 1997 & 2004 Kimberley Regional Service Provider Yiyilli Power Station Supply, installation and commissioning of Powercorp’s 1996 Page 19 of 29 Power and Water Corporation Lake Nash Power Station Supply, installation and commissioning of Powercorp’s Control System. 1996 Milikapiti (Snake Bay) Power Station Supply, installation and commissioning of Powercorp’s Control System. 1996 Numbulwar Power Station Supply, installation and commissioning of Powercorp’s Control System. 1996 Port Keats Power Station 1996 - Supply, installation and commissioning of Powercorp’s Control System. 2004 - Upgraded Powercorp Control System. 1996 & 2004 Bulman Power Station Supply, installation and commissioning of Powercorp’s Control System. 1995 Palumpa Power Station Supply, installation and commissioning of Powercorp’s Control System. 1995 Ramingining Power Station 1995 - Supply, installation and commissioning of Powercorp’s Control System. 2004 - Upgraded Powercorp Control System. 1995 & 2004 Cape Flattery Mine Cape Flattery Silica Mine Supply, installation and commissioning of Powercorp’s Control System 1994 Power and Water Corporation Yuendumu Power Station 1994 - Supply, installation and commissioning of Powercorp’s Control System. 2004 - Upgraded Powercorp Control System. 1994 & 2002 Areyonga Power Station 1993 - Supply, installation and commissioning of Powercorp’s Control System. 2004 - Upgraded Powercorp Control System. 1993 & 2004 Daly Waters Power Station Supply, installation and commissioning of Powercorp’s Control System. 2002 - Upgraded Powercorp Control System 1993 & 2002 Page 20 of 29 Croker Island Power Station Supply, installation and commissioning of Powercorp’s Control System. 1992 Maryvale Power Station 1992 - Supply, installation and commissioning of Powercorp’s Control System. 2002 - Upgraded Powercorp Control System. 1992 & 2002 Mount Liebig Power Station 1992 - Supply, installation and commissioning of Powercorp’s Control System. 2004 - Upgraded Powercorp Control System 1992 & 2004 Sabah Electricity Board Kundasang Power Supply System Supply, installation and commissioning of Powercorp’s Control System. 1992 Ranau Power Supply System Supply, installation and commissioning of Powercorp’s Control System including a 500kW battery inverter system 1992 Carabau Power Supply System Supply, installation and commissioning of Powercorp’s Control System including adaptation for hydro capabilities. 1992 Power and Water Corporation Willowra Power Station Supply, installation and commissioning of Powercorp’s Control System. 2006 - Upgraded Powercorp Control System. 1992 & 2006 Docker River Power Station Supply, installation and commissioning of Powercorp’s Control System. 1991 Napperby Power Station Supply, installation and commissioning of Powercorp’s Control System. 1990 Nyirripi Power Station Supply, installation and commissioning of Powercorp’s Con. 1990 Page 21 of 29 5.2 SUMMARY OF RECENT PROJECTS & EQUIPMENT 5.2.1 Coral Bay Wind Diesel Project, Western Australia Project Description The design, supply, installation and commissioning of main distribution board, control systems and containerised low load diesel generators. Client Verve Energy (Formerly Western Power Corporation) Contract Award Date March 2006 Project Value $4 Million Date of Practical Completion August 2007 5.2.2 Hopetoun Wind Diesel Project, Western Australia Project Description STAGE 1 The supply, installation and commissioning of one Enercon E40/600kW wind turbine generator. The design, supply, installation and commissioning of a new 1 MW automatic power supply system including two (2) Low Load Diesel generators, all generator and power station automatic control systems, main distribution board, power station buildings, fuel handling and storage equipment and associated infrastructure. STAGE 2 The supply, installation and commissioning of one Enercon E40/600kW wind turbine generator The design, supply, installation and commissioning of a new 1 MW automatic power supply system including seven (7) Low Load Diesel generators, all generator and power station automatic control systems, main distribution board, power station buildings, fuel handling and storage equipment and associated infrastructure Client Western Power Corporation Contract Award Date Stage 1: December 2003 Stage 2: February 2006 Project Value Stage 1: $2.0m Stage 2: $1.6m Date of Practical Completion Stage 1: November 2004 Stage 2: May 2007 Page 22 of 29 5.2.3 Home Island Wind Diesel Project, Cocos (Keeling) Islands Project Description The design, supply, installation and commissioning of a new 1.2 MW automatic power supply system including four(4) X 320kW high speed diesel generators, all generator and power station automatic control systems, main distribution board, power station buildings, fuel handling and storage equipment and associated infrastructure. Also included in this project is the supply and installation of HV reticulation and four (4) X 20 kW wind turbine generators. Partnering relationships D & WS – Provision of consultant and management services Westwind – The supply of the 20 kW wind turbine generators Integrated Network Services – The design and construction of the HV reticulation systems Client Department of Transport and Regional Services Contract Award Date February 2004 Project Value CONFIDENTIAL Date of Practical Completion April 2006 5.2.4 Rottnest Island Wind Diesel Project, Western Australia Project Description The supply, installation and commissioning of one Enercon E40/600kW wind turbine generator. The design, supply, installation and commissioning of a new 1 MW automatic power supply system including three (3) Low Load Diesel generators, all generator and power station automatic control systems, main distribution board, power station buildings, fuel handling and storage equipment and associated infrastructure. Client Verve Energy (Formerly Western Power Corporation) Contract Award Date June 2005 Project Value $1.8m Date of Practical Completion August 2006 Page 23 of 29 5.2.5 Mount Millar Wind Farm, South Australia Project Description Supply, installation and commissioning of thirty-five (35) Enercon E666/1.8MW wind turbine generators. Design, supply, installation and commissioning of MV reticulation and earthing installation. Construction of roads, foundations and power station building. Design and construction of wind farm substation. Supply, installation and commissioning of underground optic fiber communications. Client Tarong Energy Contract Award Date May 2004 Project Value $120m (Powercorp = $15m) Date of Practical Completion April 2005 5.2.6 Bremer Bay Wind Diesel Project, Western Australia Project Description The supply, installation and commissioning of one Enercon E40/600kW wind turbine generator. The design, supply, installation and commissioning of a new 1 MW automatic power supply system including three (3) Low Load Diesel generators, all generator and power station automatic control systems, main distribution board, power station buildings, fuel handling and storage equipment and associated infrastructure. Client Western Power Corporation Contract Award Date August 2004 Project Value $4.0m Date of Practical Completion April 2005 Page 24 of 29 5.2.7 Nguiu Power Station, Northern Territory Project Description The design, supply, installation and commissioning of main distribution board and control system. Client Power and Water Corporation Contract Award Date June 2003 Project Value $200,000 Date of Practical Completion June 2003 5.2.8 Mawson Wind Diesel Project, Antarctica Project Description The design, supply, installation and commissioning of generator and power station control systems, distribution switchboards and dynamic grid interface systems. Client Australian Antarctic Division Contract Award Date August 2001 Project Value $5.1 Million Date of Practical Completion March 2003 5.2.9 Esperance Wind Diesel Project, Western Australia Project Description The supply, installation and commissioning of six(6) ENERCON E40/600 kW wind turbine generators and 46m hub height steel towers including concrete foundations and lightning protection systems. The design, supply, installation and commissioning of a wind diesel control system integrating the existing Ten Mile Lagoon Wind Farm, the new Nine Mile Beach Wind Farm and the existing Esperance Diesel Power Station with provision to integrate the system with the proposed Gas Fired Power Station Client Western Power Corporation Contract Award Date 9th December 2002 Project Value $10.6 Million Date of Practical Completion August 2003 Page 25 of 29 5.2.10 Denham Wind Diesel Power Station, Western Australia Project Description STAGE 1: In June 1998, Powercorp installed an Enercon E30 230kW wind energy converter at Denham. The turbine was integrated into an existing isolated grid consisting of four diesel generators. The control system for the wind/diesel combination was developed in-house by Powercorp, using the company’s proved IPS technology. The implementation of the wind turbine and control system has resulted in diesel fuel savings of 175,000 liters per year and a reduction of 500 tons per annum of greenhouse gases. STAGE 2: In September 1999, Stage II of this leading edge project has taken place with the installation of two further Enercon wind turbines (each 230kW) in conjunction with a complete upgrade of the diesel generator control. By including an energy storage device, designed and supplied by Enercon, with specialized control developed by Powercorp in Darwin, it is expected that 70% of Denham’s power supply will come from wind. STAGE 3: In April 2003 Powercorp was involved in the design, supply and installation of a low load diesel generating system based on a 250kW high speed diesel generator and also the design and supply of a special generator control system and extension to the power station control system. Contract Award Date(s) Stage 1: December 1997 Stage 2: December 1998 Stage 3: December 2002 Duration of Contract Stage 1: 6 months Stage 2: 12 months Stage 3: 4 months Project Value Excess of $5M in total Original Contract Date for Practical Completion Stage 1: June 1998 Stage 2: December 1999 Stage 3: April 2003 Actual Date of Practical Completion Stage 1: June 1998 Stage 2: December 1999 Stage 3: May 2003 Page 26 of 29 5.2.11 Albany Wind Farm, Western Australia Project Description The supply, installation and commissioning of twelve (12) ENERCON E66/1.8MW wind turbine generators. Design, supply, installation and commissioning of MV reticulation and earthing installation. Construction of roads, foundations and power station building. Design and construction of wind farm substation. Supply, installation and commissioning of underground optic fiber communications. Client Western Power Corporation Contract Award Date October 2000 Project Value $43 Million ate of Practical Completion June 2001 5.2.12 Windy Hill Wind Farm, Queensland Project Description Design, supply, installation and commissioning of a 12MW wind farm consisting of twenty (20) Enercon E40/600kW wind turbine generators and an underground 22kV H.V. reticulation system. Powercorp also provided the design, supply, installation and commissioning of a SCADA and communication system, a wind monitoring system, project management, and the construction of access roads. Client Stanwell Corporation Limited Contract Award Date September 1999 Project Value $20 Million Date of Practical Completion October 2000 Page 27 of 29 6. PROJECT MANAGEMENT Over the past 20 years, Powercorp has worked extensively in the area of installation, repair and maintenance of electrical power generation systems within the Northern Territory. In addition to this Powercorp has also managed a significant number of large wind and diesel infrastructure projects including the Denham Wind/Diesel System, Albany Wind Farm, the Windy Hill Wind Farm, Mt Millar Wind Farm, Esperance Wind/Diesel System, Hopetoun Wind/Diesel System, Bremer Bay Wind/Diesel System (under construction), Cocos Keeling Wind/Diesel System and Mawson Wind/Diesel System. In all of these, the projects have come in under budget, a demonstration of Powercorp’s ability to work to strict budget constraints in a project management role. All of the projects performed by the group have been completed within a reasonable time of the formal date of practical completion, and in some cases in the advance of this date. Powercorp has achieved these results through committed and dedicated processes including project tracking, critical path analysis and resource management processes. Powercorp has had experience in developing and implementing the following management plans: Project Management Plans Occupational Health & Safety Plans Quality Assurance Plans Environmental Management Plans Native Vegetation Clearance Plans Industrial Relations Plans Local Industry Participation Plans Page 28 of 29 6.1 OCCUPATIONAL HEALTH & SAFETY Powercorp is committed to adhering to the statutory Occupational Health & Safety (OH&S) requirements as a minimum measure to ensuring a safe workplace. In addition Powercorp conducts Safety Audits and Hazard Analyses of each activity in the works to identify and control project specific hazards in the construction work place. 6.2 OH&S PERFORMANCE AND BREACHES 6.2.1 Safety Performance Powercorp’s safety performance complies with all statutory requirements. Powercorp reports no OH&S incidents during this time. 6.2.2 OH&S Breaches There have been no material breaches of any OH&S regulatory requirement within Australia. 6.3 PROHIBITED HAZARDOUS MATERIALS None of Powercorp’s material contains or is manufactured by processes utilizing the following prohibited materials: š Asbestos. š Ceramic fiber. š Chlorofluorocarbons. š Polychlorobiphenyls (PCB) and their isomers. š Radio-active materials. š Mercury. Page 29 of 29 6.4 QUALITY ASSURANCE Powercorp has a commitment to quality assurance and this has been demonstrated in all of our projects to date. Powercorp has recognized that thorough quality assurance systems results in high availability rates for installed equipment that has a direct effect on the low maintenance requirements and increased annual yield from the plant. An example of Powercorp’s success with implementing an appropriate quality assurance system is Denham Wind/Diesel System, which has recorded an average availability over the last 5 years at 99.8%. Powercorp’s approach to quality assurance is thorough. Powercorp has developed a process of equipment specification detailing its operational parameters such that the end product received by the group is exactly as was intended. This is backed up with detailed research at the front end on equipment that is available and its specifications, and is checked regularly during construction and commissioning to ensure that the sub-contractors meet their stringent quality assurance requirements. In previous projects, where quality assurance has been audited independently, Powercorp has received high recommendation. Powercorp Project List Specific Projects with Relevance to the Arctic Mawson Wind/Diesel (Antarctica) General Site Information Item Parameter Description 1 Location Antarctica, Mawson (Australian Protectorate) 2 Site Conditions Antarctic Continental Low Latitude Coast Minimum Temperature: -37°C (-34.6°F) Maximum Temperature: 6.5°C (43.7°F) 3 Installed Diesel Generation 4x Conventional Diesel generators totaling 500kW 1x Backup Diesel generator totaling 400kW 4 Installed Wind Generation 2x Enercon E-30 WEC (Cold Climate) totaling 600kW 5 Installed Wind/Diesel Control System PSAC – “Power Station Automated Controller” a customized variant on Powercorp’s Controller Range. 6 Wind Turbine Installation Summer 2002/2003 Geographically, Antarctica is the windiest, driest, coldest and highest continent in the world, presenting special and unique challenges for any large-scale technological innovations. Australia's Mawson Station, is situated 5,463km southwest of Hobart on the coast of Antarctica and is now home to the first large scale wind-diesel power station on the continent. On 22 August 2001, POWERCORP signed a Wind Turbine Development agreement with Australian Antarctic Division (AAD), to design Antarctica’s first large-scale wind turbine installation, at Australia's Mawson Station. POWERCORP was responsible for overall Project Management, which also included the installation of our advanced control system technology that enables the use of the wind turbines. The unique control system termed “Intelligent Power System" (or IPS) is advanced automatic wind/diesel power system control software, developed entirely in Darwin, Australia by the company's engineers. The Mawson Wind/Diesel project was commenced in 2001 with the Australian Antarctic Division (an element of CSIRO, the peak Australian science body). The motivations for this project were the high cost of delivering diesel to the site, as well as environmental concerns with the movement and storage of hundreds of thousands of liters of diesel fuel in the Antarctic environment. The project consisted of the installation of two Enercon E-30 low-temperature modified wind turbines, a Powercorp automated power station control system and fast-response electric boilers. A major advantage of wind-diesel technology is the benefit to the local environment, including: š large scale reductions in greenhouse gas emissions and increased emission certificate trading (REC's), via a reduction in diesel fuel consumption; š reduced risk of oil spills and subsequent damage to the environment; š significant reduction in the direct cost of power generation; š reduced maintenance requirements; š fully automatic operation. The power system also supplies excess wind-generation to the heating hot-water loop that circulates around all of the buildings at the station, utilizing the “energy storage” of the heat loop to assist with the stability of the electrical system. Ross Island (Antarctica) Wind/Diesel General Site Information Item Parameter Description 1 Location Antarctica, Southern Ocean 2 Site Conditions Coastal; Arctic Coastal Minimum Temperature: -37°C (-34.6°F) Maximum Temperature: 6.5°C (43.7°F) 3 Installed Diesel Generation Scott Base (NZ): McMurdo Base (US): 4 Installed Wind Generation NIL 5 Installed Wind/Diesel Control System DCS – Distributed Control System 6 Wind Turbine Installation Summer 2009/2010 – 3x Enercon E-33 300kW WEC 2010+ - 14x Enercon E-33 300kW WEC Meridian Energy (NZ), in alliance with Antarctica New Zealand and supported by the United States Antarctic Program are now in the construction phase of an exciting project which will allow important US/NZ Antarctic science activities to proceed with a far smaller carbon footprint. The project is on Ross Island, Antarctica, where Scott Base (NZ) and McMurdo Base (US) are located. Powercorp was asked to help interconnect the two existing diesel stations that currently power the US and NZ bases and to integrate the wind farm by providing the necessary network stabilizing technology. The two power systems operate at different frequencies 50Hz (NZ) and 60Hz (US) and had to be joined with a specially built frequency converter capable of running the entire Scott base from the 60Hz supply and the wind turbines which are to be installed in the summer of 2009/2010. On completion of Phase 1 of the Ross Island system in 2009, the wind farm will provide the Ross Island System with up to 1000kW of clean renewable energy, enough to power all of the Scott Base and contribute to the McMurdo Base daily electrical demand. Powercorp is proud to have been selected by Meridian Energy to be a crucial partner in the delivery of yet another world leading power system in the extreme and pristine environment of the Antarctic.    Erin McLarnon P.O. Box 1143 • Willow, AK 99688 • (907) 495-0671 • erin-pcorp@alaska.com SUMMARY OF QUALIFICATIONS  ¾ Over 15 years of comprehensive and diversified experience. ¾ Able and willing to be self-directed in problem solving and decision-making. ¾ Good interpersonal and cross-communication skills. ¾ Excellent oral and written communication skills. ¾ Experience in coordinating projects, special events, fund raising and training. ¾ Knowledge of personnel management. ¾ Excellent computer skills including, but not limited to Windows based programs.   PROFESSIONAL EXPERIENCE  Powercorp Alaska, LLC, Anchorage, AK September 2003 – Present General Manager promoted from Office Manager/Marketing Director • Manage and oversee all functions of the company. • WindPro Certified • Organize meetings, teleconferences, travel and training. Norman Vaughan Serum Run, Anchorage, AK 2002 – Present Volunteer Musher-Education Coordinator/Board Member • Organizer and fund raiser for the event. • Responsible for development and implementation of educational mission. • Lead education programs in each village across Alaska while on the trail. • Solicit, contact and develop new sponsors and media contacts for the event. Alaska Public Lands Information Center (APLIC), Anchorage, AK 1999 – Present Volunteer Education Special Presenter • Developed 50-minute presentation on dog mushing. • Made presentations to groups of varying age (pre-school to senior citizen) and size (1 to 75+). • Received two outstanding Achievement Awards for the above service work at APLIC Yukon River Drainage Fisheries Association, Anchorage, AK 2002 – 2003 Education and Information Coordinator • Oversaw production of the Association newsletter, Yukon Fisheries News and Membership Program. • Maintain the Association website and membership database. • Responsible for the Alaska/Canada Fisheries Grant management where I designed and coordinated an educational exchange of fishermen and women along the Yukon River in Alaska and Canada. ADDITIONAL EXPERIENCE Operations Manager, Alaska Natural History Association, Anchorage, AK 1999 - 2002 Elderhostel Instructor, Alaska Pacific University / Denali Institute, Anchorage, AK, 1996 – 2004 Interpretative Park Ranger, National Park Service, Sitka, AK, 1995 – 1996 Volunteer Herbarium Coordinator, United States Forest Service, Sitka, AK 1994-1995 Volunteer Coordinator, Alaska Raptor Rehabilitation Center, Sitka, AK 1993-1994    EDUCATION AND TRAINING Sheldon Jackson College, Sitka, AK Bachelor of Science in Aquatic Resources with an emphasis in Marine Biology/Fisheries  Graduated Cum Laude in May 1995 Franklin College, Franklin, IN Course work in Chemistry, Biology and Psychology    Alaska Pacific and Western Governor’s University  Course work toward M.A.T   1997‐1999 & 2003   COMMUNITY SERVICE President/Founder, Willow Dog Mushers Association, Willow, AK, 2005-Present Governor Appointed Board Member, State of Alaska Board of Forestry, Juneau, AK, 2007-Present Chairman’s Special Board Member, Willow Area Community Organization (WACO), Willow, AK, 2006-Present Musher Coordinator/Board Member, Norman Vaughan Serum Run ’25, Eagle River, AK, 2002-Present Special Presenter, Alaska Public Lands Information Center (APLIC), Anchorage, AK, summer’s since 1999 – Present 1 of 2 Export Drive, Darwin Business Park | Berrimah, NT 0828 AUS T 011-618-8947-0933 F 011-618-8947-0925 Gavin Lloyd Bates Project Engineer Education Bachelor of Engineering (Electrical/Electronic) Northern Territory University Experience Manager of Production, POWERCORP Pty Ltd – Berrimah, NT Australia 2003 – Present • Specification and construction of a testing regime to ensure a replicable high quality mass- produced product • Managing a team of highly skilled individuals in a cohesive manner Project Engineer, POWERCORP Pty Ltd – Berrimah, NT Australia 2002 • Development of specifications for the first stage of the DGI • Design and construction of the DGI cabinets, including documentation for installation and commissioning Project Engineer, POWERCORP Pty Ltd – Berrimah, NT Australia 1999 • Development and programming of SCADA systems • Development and programming of interface and control systems for flywheel technology Service Engineer, POWERCORP Pty Ltd – Berrimah, NT Australia 1998 • Travelling to remote communities to investigate customer problems • Maintenance of POWERCORP diesel/battery hybrid stations Project Engineer, POWERCORP Pty Ltd – Berrimah, NT Australia 1997 • Development and programming of SCADA systems 2 of 2 Hardware Engineer, Canon Information Systems Research Australia 1997 • Algorithmic VHDL verification • Logical VHDL verification • Simulation software development and testing • Hardware testing software development • Hardware verification and testing of large graphic integrated circuits. Research IEEE Paper entitled: Novel 2D Median Filter in Field Programmable Gate Array Logic (1997). Thesis entitled: Design and Implementation of a Discrete Cosine Transform in Field Programmable Gate Array Logic (1997). 1 of 3 251 N. Post Road | Anchorage Alaska 99501 T 907-646-9997 F 907-646-9079 Dale Letourneau Senior Project Engineer Education 1994 ETAP Power System Modeling Operational Technology, Inc., Irvine, CA 1990 Arctic Engineering University of Alaska, Anchorage 1985 Power System Grounding Georgia Institute of Technology, Atlanta, GA 1983 Generator Protection Westinghouse Electric Corp., Coral Gables, FL 1983 Power System Stability Power Technologies Incorporated, Schnectady, NY 1981 ME, Electric Power Engineering Rensselaer Polytechnic Institute, Troy, NY 1980 BS, Electric Power Engineering Rensselaer Polytechnic Institute, Troy, NY Certifications and Registrations • Professional Engineer, Alaska, Electrical Engineering, ACE E - 8269 • Professional Engineer, Ohio, Electrical Engineering • Professional Engineer, Vermont, Electrical Engineering Experience Senior Project Engineer, Powercorp Alaska, LLC – Anchorage, Alaska 2003-Present Preparation of complete control, monitoring, and data collection package including sensors, switchgear, and controls for a new diesel power plant in rural Alaska from initial proposal through 2 of 3 testing. Contributed to conceptual studies of diesel automation upgrades of existing plants, integration of wind and hydro resources into existing village power systems, and proposals for addition of SCADA and diesel automation to city power system. Contract Electrical Engineer – Anchorage, Alaska 1996-2003 • Power sourcing study for electrification of oil pipeline pumpstation. Cost of generation and transmission expansion to supply up to 21 MW were estimated along with anticipated operating and maintenance costs. • Created detailed system model of large isolated oilfield electrical system using ETAP system software. Performed motor starting studies under various generation configurations to assist in startup. Performed complete relay coordination study from generation through low voltage distribution. • Lead electrical engineer for preliminary and detail design of offshore oil development and design of truckable modules for a high-speed (7.1 MW, 14000 rpm), motor driven compressor. • Electrical commissioning and startup of isolated oilfield power systems including main and standby generation, large motors, and highline drill rig electrification. • Short circuit study, equipment rating assessment, and complete relay coordination study for a large seafood processing plant using the ETAP software. • Oversight of engineering definition and detailed engineering for a 69 kV tie line between two isolated power systems. • Lead engineer on replacement of ground directional relaying on a 69 kV transmission system from problem definition through commissioning. • Implemented a relay setting database program. Electrical Engineer, Alaska Energy Authority/ASCG, Incorporated – Anchorage, Alaska 1992-1993 Conceptual engineering and cost estimating for rural Alaskan power and coal mine development. Work included researching coal combustion technology advancements, modular construction techniques, and preliminary economic analyses. Contract Electrical Engineer – Burlington, VT and Anchorage, AK 1987-1992 Power system studies of Alaskan oilfield electrical system using WESTCAT and ETAP software. These included a power generation capability assessment and conceptual engineering studies of electrical intertie between two isolated oilfield power systems. Ongoing duties included fault analysis and protection system troubleshooting. Project Engineer, BP Oil Co., Alliance Refinery - Belle Chasse, LA 1985-1987 Managed multidiscipline oil refinery construction and maintenance projects. Projects included a 35 kV distribution system voltage monitoring system, addition of a synchronizing panel for testing of the refinery's emergency generation, and assessment of the protection of an 8000 HP induction motor/generator. Electrical Engineer, The Standard Oil Co. - Cleveland, OH 1981-1985 Performed load flow, short circuit, and stability studies of refinery, chemical plant, and oilfield transmission/distribution systems using Westinghouse WESTCAT mainframe program. Projects included replacement of overdutied circuit breakers at refinery/utility interface and an underfrequency based loadshedding system for an isolated oilfield power system. 3 of 3 Publications "Automatic Generation of Three-Dimensional, Tetrahedral Grids for Finite Element Computation of Electrostatic Fields", T. S. Lauber, M. Bressani, T. B. Lauber, and D. R. Letourneau. Presented at the 4th International Symposium on High Voltage Engineering, Athens, Greece, September, 1983. "The Design, Specification, Purchase, and Installation of SF6 Power Circuit Breakers to Replace Overdutied OCBs", G. Smith, D. R. Letourneau, and R. E. Schrader. Presented at the Petroleum and Chemical Industry Conference, Dallas, TX, September, 1988. "Can Coal Replace Oil in Rural Alaska?", D. R. Letourneau. Presented at the Focus on Alaskan Coal Conference, Anchorage, Alaska, May, 1993. AURORA CONSULTING PAGE 1 1999- 2007 Communities in Blue 1983 – 1999 Black Dots Denali Anchorage Glacier Bay Nikolski Nome Egegik Juneau Dillingham Saxman Chenega Bay Port Graham Nanwalek Bettles Togiak Quinhagak Chignik Kodiak Mat-Su Naknek Fairbanks Cordova Nenana Dutch Harbor/Unalaska Galena Aniak Venetie Arctic Village Eagle Mountain Village Circle St Mary’s Unalakleet IliamnaNewhalen Allakaket Huslia Kaltag Stevens Village Wales Perryville Scammon Bay Ahkiok Chalkyitsik Diomede Igiugig Kokhanok Nikolai Port Heiden Takotna Tuluksak Akutan Atka False Pass Ft Yukon Kalskag Nondalton Solomon Koyukuk Stony River Sleetmute White Mountain AkiachakAtmauthluk Beaver Buckland Chefornak Deering Golovin Kongiganak Kwigillingok Larsen BayManokotak Nelson Lagoon Newtok Hoonah Kenai King Salmon Barrow Pedro Bay 1999-2007 1983-1999 z z z zz z z z z z z z z z z z zz z z z z z zz z z z z zz zzWhittier zz z z z z z z zz zz zzz z z z z z z z z z zz Denali Anchorage Glacier Bay Nikolski Nome Egegik Juneau Dillingham Saxman Chenega Bay Port Graham Nanwalek Bettles Togiak Quinhagak Chignik Kodiak Mat-Su Naknek Fairbanks Cordova Nenana Dutch Harbor/Unalaska Galena Aniak Venetie Arctic Village Eagle Mountain Village Circle St Mary’s Unalakleet IliamnaNewhalen Allakaket Huslia Kaltag Stevens Village Wales Perryville Scammon Bay Ahkiok Chalkyitsik Diomede Igiugig Kokhanok Nikolai Port Heiden Takotna Tuluksak Akutan Atka False Pass Ft Yukon Kalskag Nondalton Solomon Koyukuk Stony River Sleetmute White Mountain AkiachakAtmauthluk Beaver Buckland Chefornak Deering Golovin Kongiganak Kwigillingok Larsen BayManokotak Nelson Lagoon Newtok Hoonah Kenai King Salmon Barrow Pedro Bay 1999-2007 1983-1999 z z z zz z z z z z z z z z z z zz z z z z z zz z z z z zz zzWhittier zz z z z z z z zz zz zzz z z z z z z z z z zz Aurora Consulting 880 H St, Ste 105 Anchorage, Alaska 99501 Phone: (907) 245-9245 Fax: (907) 245-9244 Email: us@auroraconsulting.org A. GENERAL OVERVIEW Aurora Consulting and its business consulting staff have many years of experience in developing economic development projects, preparing business feasibility studies and business plans, submitting funding proposals and implementing economic development projects throughout the state. Although our offices are located in Anchorage, the professional consulting staff of Aurora Consulting has many years of experience in providing business development and management consulting services throughout the state. We have provided both private entrepreneurs and communities throughout the state with feasibility studies, business planning, market research, market strategies, development plans and project implementation assistance essential to successful business growth. B. EXPERIENCE WORKING WITH RURAL ALASKA Aurora Consulting’s staff has over thirty years of experience working with rural Alaska communities and organizations. We have worked with literally hundreds of rural communities, as illustrated by the map below and have traveled frequently to communities in every region of the state. C. SAMPLE CLIENTS AURORA CONSULTING PAGE 2 1. Anchorage Water & Wastewater Utility - Transition & Implementation Planning Aurora Consulting provides business planning and management services to the Anchorage Water and Wastewater Utility (AWWU) in conjuction with its transition from a department of the Municipality of Anchorage to an Authority. Aurora Consulting has assisted with an analysis of MOA provided services; IGC methodologies, historical charges and budgets; preliminary identification of problems areas, potential areas for cost savings and other issues by functional work area. Aurora Consulting assisted the AWWU to develop “Transition Plan” documents and materials, including Phase I and Phase II Transition Plans. The level of assistance provided required excellent communication skills and a broad understanding, interpretation and application of the MOA Charter, Code, Policies and Procedures and MOA/AWWU IGC’s and budgets. Project Schedule: October, 2005 – Current Contact: Mark Premo, General Manager and/or Brett Jokela, Assistant General Manager Anchorage Water & Wastewater Utility 3300 Arctic Blvd Anchorage, AK 99503 (907) 564-2700 2. Alaska Energy Authority (AEA) – Energy Project Business Planning Services Aurora Consulting provides professional consulting services to the Alaska Energy Authority under a Term Services Contract to assist the Alaska Energy Authority with the development of a Denali Commission approved business operating plan template and associated documents for rural energy projects. Aurora Consulting assists the Rural Energy Group with preparing templates for business plans, operation and maintenance schedules, repair and replacement schedules, regulatory agency coordination and other business related tasks for both the Bulk Fuel Upgrade program and the Rural Power System Upgrade program. Additionally, Aurora Consulting provides follow-up monitoring and evaluation of completed rural energy projects, as well as on-going business training and development. Additionally, working with the Alaska Energy Authority’s design/engineering term contractors, Aurora Consulting has provided a variety of business planning services for rural bulk fuel and electric utility operations, including the development of business operating plans for over 60 communities including Akiachak, Akhiok, Akutan, Atka, Buckland, Chalkyitsik, Chefornak, Chenega Bay, Chuathbaluk, Crooked Creek, Deering, Diomede, Egegik, False Pass, Fort Yukon, Golovin, Hoonah, Iguigig, Kokhanok, Kongiganak, Koyukuk, Kwigillingok, Karluk, Larsen Bay, Manokotak, Nanwalek, Nikolai, Nelson Lagoon, Newhalen, Newtok, Nikolski, Pedro Bay, Pilot Point, Port Heiden, Stony River, Sleetmute,Takotna, Tuluksak, Unalakleet, Venetie, White Mountain, Whitestone and many others. Through the process of developing these services to the Alaska Energy Authority, Aurora Consulting has worked closely with the rural communities, the Alaska Energy Authority and its contractors and the Denali Commission; performed a variety of research and analysis tasks; conducted interviews of project participants and engineering firms; and, communicated findings back in well organized and understandable oral, written and electronic formats. The level of assistance provided requires excellent communication skills and a broad understanding, interpretation and application of the local, state and federal utility codes and regulations, operating policies and procedures and application and governance of these at the local level. AURORA CONSULTING PAGE 3 During the eight plus years that Aurora Consulting has worked with the Alaska Energy Authority, we have always completed projects on-budget and on-time and have experience no significant customer complaints. The work that we have done under this contract is relevant in many ways – we have developed business plan outlines and templates, have worked on multiple business plans simultaneously, have worked closely with project engineers on project scope and design/costing and other factors, have worked closely with rural communities and residents in the development of the plans, and, have been asked to provide our assessment of financial viability and other key strategic decisions. Key Individuals: Ann Campbell, Sandy Williams, Carolyn Bettes Project Dates: October 2001 – Present Project Managers: Chris Mello Alaska Energy Authority 813 West Northern Lights Blvd. Anchorage, AK 99503 (907) 771-3000 Additional references include: Steve Stassel, Alaska Energy & Engineering Inc 349-0100 Jeff Stanley, CRW Engineering Group, 562-3252 Wiley Wilheim, LCMF Inc., 273-1851 Project Budget: Over $750,000 3. Organizational Board of Director/Management Planning and Training – 2004 - 2008 Aurora Consulting principal, Ann Campbell, has facilitated numerous community/strategic planning sessions and provided a wide variety of business management and planning trainings and workshops for rural and statewide organizations. Ann Campbell provided over 35 trainings and workshops on “How to Read Financial Statements”, “How to Structure New Investments”, “How to Track Financial Indicators and Business Activities”, “How to Set Product Pricing”, “How to Manage Effectively”, “Marketing Planning”, “How to Plan for CEO Succession”, “Strategic Planning” and other general financial and business topics. Clients have included native village corporations (Becharof Corporation, Chenega Corporation, Kijik Corporation, Toghotthele Corporation), regional non-profits (Kawerak Corporation, SEARHC Foundation), CDQ organizations (Norton Sound Economic Development Corporation, Aleutian Pribilofs Island Community Development Association), and statewide organizations (Sea Otter Sea Lion Commission, AWRTA, University of Alaska, Anchorage). Key Individuals: Ann Campbell Project Dates: 1999-2008 Sample Project Managers: Hazel Nelson, CEO Becharof Corporation 1225 E International Airport Rd, Ste 135 Anchorage, Alaska 99581 (907) 561-4777 Fax: 561-4778 Email: becharof@gci.net AURORA CONSULTING PAGE 4 Sample Consulting Clients Client Project Ahtna Heritage Foundation Feasibility Study Alaska Aggregate Products Business Planning Alaska Energy Authority Community Infrastructure Business Planning Alaska Lodging Management Hotel Business Planning Alaska Native Heritage Center Market Demand/Financial Projections Alaska Native Tourism Council Strategic Marketing Alaska SeaLife Center Business Planning/Market Demand Aleutian Pribilof Islands Community Development Assoc Business Planning/Feasibility Study Anchorage Water & Wastewater Utility Management Planning Becharof Corporation Strategic Planning, Marketing Planning Bering Straits Native Corporation Business Acquisition/Financial Consulting Bermello, Ajamil & Partners (City & Borough of Juneau) Juneau Waterfront Master Planning BP Exploration Marketing Consulting Bradley Reid Communications Tourism Marketing Planning Cape Fox Corporation Tourism Marketing Assistance Central Council Tlingit & Haida Indian Tribes of Alaska Board Training, Project Development Chenega Corporation Feasibility Analysis Chenega Corporation Acquisition Analysis Chenega IRA Council Community Planning – CEDS; Market Feasibility Study Chogguing, Ltd Board Training/Strategic Planning CIRI Market Analysis CIRI Tourism Acquisition Analysis City of Akutan Community Planning City of Aleknagik Feasibility Study Circle Tribal Council Market Demand Analysis/Marketing Planning City of Bettles Destination Marketing Planning, Community Planning City of Shaktoolik Fish Processing Plant Feasibility Study City of Togiak Community Planning – CEDS City of Wrangell Marine Feasibility Study, Business Planning Dillingham Chamber of Commerce Destination Marketing Planning, Eagle Tribal Council Feasibility Analysis Eyak Corporation Strategic Planning Glacier Bay Tours & Cruises Marketing Analysis Goldbelt Business Acquisition, 8(a) Planning Hawaiian Vacations Market Demand Analysis/Strategic Planning Kake Tribal Council Fishing Lodge Business Plan Ketchikan Indian Corporation Marketing & Development The Kijik Corporation Strategic Planning Kodiak Tribal Council Business Planning Kuskokwim Corporation Business Planning/Feasibility Study Mat-Su Convention & Visitors Bureau Visitor Research & Analysis / Economic Impact Analysis McDowell Group Community Planning – Yakatat Naknek Native Village Council Fish Processing Plant Feasibility Study North Pacific Volcano Learning Center Business Plan/Economic Impact Analysis Northern Air Cargo Strategic Planning Norton Sound Economic Development Council Feasibility Analysis/Management Services Quvaq, Inc Management Planning, Business Planning State of Alaska, Village Safe Water Community Infrastructure Business Planning AURORA CONSULTING PAGE 5 ANN CAMPBELL Principal and Business Consultant Education Master of Business Administration, University of Alaska Anchorage, 12/83 Bachelor of Arts, Education, University of Florida, 12/76 Career Summary 9/99 to Present Partner/Business Consultant Aurora Consulting Alaska Village Initiatives/Community Enterprise Development Corporation: 10/91 to 9/99 Vice President of Operations Alaska Village Initiatives 10/87 to 10/91 Special Assistant to President Alaska Village Initiatives 10/93 to 9/99 Executive Director Alaska Native Tourism Council 10/87 to 9/99 President and CEO Alaska Village Tours, Inc. 7/84 to 10/87 Director/Analyst Minority Business Development Center Boards and Commissions Alaska Geographic (Alaska Natural History Association), Board of Directors, 2003 - Present Alaska Challenger Learning Center, Board of Governors, 1998 - 1999 Alaska Rural Development Council, Board Member, 1992 - 1999 Alaska Travel Industry Association, Board Member, 1999-Present/Board Chair, 1999-2001 Marketing Chair, 2007 - Present Hospice of Anchorage, Board Member 2002- 2005 Marketing Alaska’s Cultural Resources, 1997- 1998 The Imaginarium Science Discovery Center, Board Member, 2000 to 2001 White House Conference on Small Business, 1995 Partial Experience: Financial Management and Analysis Project Director, Acquisition Analysis, Southeast Village Corporation Tour Acquisition Project Director, Business Plan for Southcentral Village Corporation Tour Acquisition Project Director, Analysis of Return on Investment, Village Corporation Tour Acquisition Project Director, Valuation Analysis for Regional Corporation Hotel/Tour Acquisition Project Director, Analysis of Return on Investment, Village Corporation Hotel Acquisition Project Director, Financial and Regression Analysis Statewide Grocery Project Director, Financial Cash Flow Modeling, Anchorage-based Russian Goods Importer Project Director, Budgeting and Cash Flow Analysis, Alaska Statewide Native Commission Project Director, Acquisition Feasibility Bulk Fuel Plant, Kachemak Bay Village Corporation Project Consultant, Financial and Cash Flow Analysis, Statewide Native Issues Publication Project Consultant, Expansion/ Capital Opportunity Analysis, Statewide Native Newspaper Project Consultant, Accounting System Design, Anchorage Project Consultant, Finance Expansion of Southwest Village Corporation Office Building Project Consultant, Accounting System Design, Interior Village Corporation Project Consultant, Accounting System Design, Kachemak Bay Village Corporation Business Planning and Feasibility Studies Project Director, Business Plan, Denali Park Hotel Property Project Consultant, Business Plan, Alaska Native Heritage Center Project Consultant, Business Plan, North Pacific Volcano Learning Center Project Director, Business Plan for Northwest Village Corporation Sportsfishing Lodge AURORA CONSULTING PAGE 6 Project Consultant, Business Plan for Lodge, Interior Village Corporation Project Director, Business Plan/Feasibility Study Interior Tour Boat Enterprise Project Director, Business Plan for Southwest Village Corporation Sportsfishing Lodge Project Director, Business Plan for Southeast Village Council Sportsfishing Lodge Project Director, Business Plan for Southcentral Sportsfishing Lodge Project Consultant, Feasibility Study, Southwest Sportsfishing Lodge Project Director, Business Plan for Southcentral Fishing Product, Southcentral Village Corp. Project Consultant, Business Plan for River Safari Product, Southwest Village Corporation Project Consultant, Business Plan for Kisaralik Outdoor Product, Southwest Village Corp. Project Consultant, Business Plan for Southeast Native Organization Expansion Project Director, Feasibility Study for Southwest Village Corporation Retail Store Project Director, Feasibility Study for Anchorage-based Statewide Nonprofit Retail Startup Project Director, Feasibility Study for Southwest Retail Expansion Project Consultant, Feasibility Study Anchorage Native Cultural Center Project Consultant, Business Plan for Kodiak Nonprofit Sea Scallop Mariculture Project Project Consultant, Business Plan for Kachemak Bay Village Corporation Salmon Hatchery Project Director, Business Plan Southcentral Village Corporation Cultural Center Project Consultant, Business Plan for Anchorage Daycare Center Project Consultant, Business Plan for Kodiak Collection Agency Project Consultant, Business Plan for Arctic Village Corporation Resource Enterprise Project Consultant, Business Plan for Anchorage Native Manufacturing and Retail Startup Project Consultant, Business Plan for Anchorage Office Temporary Agency Project Consultant, Business Plan for Interior Highway Retail/Lodging Enterprise Project Consultant, Business Plan for Anchorage Janitorial Service Project Consultant, Business Plan for Southwest Village Corporation Resource Enterprise Project Consultant, Business Plan for Kenai Village Corporation Startup Enterprise Project Director, Business Plan for Northwest Retail Store Project Consultant, Business Plan for Prince William Sound Corporation Resource Enterprise Project Director, Feasibility Study for Southwest Cable Television Startup Project Director, Business Plan for Southwest Mechanical Contractor Project Director, Business Plan for Anchorage Native Arts & Crafts Retailer Project Director, Business Plan for Kodiak Native Arts & Crafts Enterprise Project Director, Business Plan for Anchorage Manufacturer Marketing Strategies and Planning Project Director, Rural Outreach Plan for Multinational Oil Company Project Director, Rural Marketing Strategies, Statewide Telecommunications Company Project Director, Market Planning, Southwest Village Corporation Project Director, Market Projections, Statewide Retail Grocery Chain Project Director, Market Study for Statewide Oil Spill Consulting Firm Project Consultant, Market Study for Anchorage Fitness Retail Store Project Consultant, Market Plan for Kachemak Bay Corporation Real Estate Development Project Consultant, Market Plan for Kachemak Bay Village Corporation Expansion Project Consultant, Market Plan for Kachemak Bay Village Corporation Salmon Hatchery Project Consultant, Market Research Kenai-based Seafood Plant Startup Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application 10/7/2009 Attachment B: Cost Worksheet Renewable Energy Fund Round 3 Project Cost/Benefit Worksheet RFA AEA10-015 Application Cost Worksheet Page 1 10-7-09 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. 7.1 m/s Average Wind Speed at Project Site Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) 2. Existing Energy Generation and Usage a) Basic configuration i. Number of generators/boilers/other 3 ii. Rated capacity of generators/boilers/other 2 rated at 371 kW; 1 rated at 179 kW iii. Generator/boilers/other type Generators iv. Age of generators/boilers/other 1 Year v. Efficiency of generators/boilers/other 12.74 kWh/Gal – Average Efficiency b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $90,730 ii. Annual O&M cost for non-labor $356,842 c) Annual electricity production and fuel usage i. Electricity [kWh] 1,022,845 ii. Fuel usage Diesel [gal] 72,774 Other iii. Peak Load 155 kW iv. Average Load 78 kW v. Minimum Load 40 kW vi. Efficiency 12.74 kWh/Gal vii. Future trends Annual Average Load Growth: 2.05% (2002-2008) d) Annual heating fuel usage i. Diesel [gal or MMBtu] 94,184 ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] 35 cords vi. Other Renewable Energy Fund Round 3 Project Cost/Benefit Worksheet RFA AEA10-015 Application Cost Worksheet Page 2 10-7-09 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) [kWh or MMBtu/hr] 935,799 b) Proposed Annual electricity or heat production i. Electricity [kWh] 414,267 ii. Heat [MMBtu] 1,780 (521,532 kWh) c) Proposed Annual fuel Usage (N/A) 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 $4,290,905 b) Development cost $308,000 c) Annual O&M cost of new system $21,000 d) Annual fuel cost $0 5. Project Benefits a) Amount of fuel displaced for i. Electricity 32,517 Gal ii. Heat 7,273 Gal iii. Transportation b) Price of displaced fuel $3.19 Gal X 39,790 Gal = $126,930 in Year 0 c) Other economic benefits $5,148 Annual Green Tag Sales d) Amount of Alaska public benefits $132,078 Annual; $5,437,469 Cumulative 6. Power Purchase/Sales Price a) Price for power purchase/sale $.4012 / kWh – Estimated new cost of energy for Chefornak 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio 1.21 Payback 23.9 Years Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application 10/7/2009 Attachment C: Grant Budget Form Renewable Energy Fund Grant Round III Grant Budget Form (Phase III Budget) 10-7-09 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 Project Management Month 2 $ 47,750 $ 5,000 In-Kind $ 52,750 Finalize Energy Production Analysis Month 1 $ 9,500 $ 0 $ 9,500 Finalize Land Agreements and ROW Month 1 $ 0 $ 80,000 In-Kind $ 80,000 Perform Geotechnical Analysis Month 2.5 $ 54,275 $ 0 $ 54,275 Finalize Foundation Designs Month 3 $ 39,500 $ 0 $ 39,500 Finalize System Integration Designs Month 3 $ 44,000 $ 0 $ 44,000 Turbine/Integration Equipment Procurement Month 6.5 $ 1,898,475 $ 0 $ 1,898,475 Apply for/Obtain Permits Month 3 $ 19,975 $ 0 $ 19,975 Finalize Operational Business Plan Month 2 $ 8,000 $ 0 $ 8,000 TOTALS $ 2,121,475 $ 85,000 $ 2,206,475 Budget Categories: Direct Labor & Benefits $ 0 $ 5,000 In-Kind $ 5,000 Travel & Per Diem $ 0 $ 0 $ 0 Equipment $ 1,898,475 $ 0 $ 1,898,475 Materials & Supplies $ $ 0 $ 0 Contractual Services $ 223,000 $ 0 $ 223,000 Construction Services $ 0 $ 0 $ 0 Other (Land) $ 0 $ 80,000 In-Kind $ 80,000 TOTALS $ 2,121,475 $ 85,000 $ 2,206,475 *Dates are relative to project start date. Project is prepared to move forward as soon as awards are made available. Renewable Energy Fund Grant Round III Grant Budget Form (Phase IV Budget) 10-7-09 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 Project Management Month 9 $ 127,800 $ 10,000 In-Kind $ 137,800 Foundation Material Procurement Month 4 $ 331,128 $ 0 $ 331,128 Mobilization and Demobilization Costs Month 9 $ 440,019 $ 99,985 Other State Grants $ 540,004 Site Access and Foundation Installation Month 6.5 $ 324,327 $ 0 $ 324,327 Power Storage/Flywheel Foundation Pad Month 6 $ 55,975 $ 0 $ 55,975 Transmission/Distribution Line Installation Month 7 $ 0 $ 403,920 Other State Grants $ 403,920 Tower/Turbine Erection Month 7.5 $ 277,051 $ 0 $ 277,051 Construction Survey/As-Built Diagrams Month 8.5 $ 21,735 $ 0 $ 21,735 System Integration Month 9 $ 255,490 $ 0 $ 255,490 System Calibration Month 9 $ 45,000 $ 0 $ 45,000 TOTALS $ 1,878,525 $ 513,905 $ 2,392,430 Budget Categories: Direct Labor & Benefits $ 0 $ 10,000 $ 10,000 Travel & Per Diem $ 0 $ 0 $ 0 Equipment $ 0 $ 0 $ 0 Materials & Supplies $ 331,128 $ 0 $ 331,128 Contractual Services $ 868,309 $ 99,985 $ 968,294 Construction Services $ 679,088 $ 403,920 $ 1,083,008 Other (Land) $ 0 $ 0 $ 0 TOTALS $ 1,878,525 $ 513,905 $ 2,392,430 *Dates are relative to project start date. Project is prepared to move forward as soon as awards are made available. Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application 10/7/2009 Attachment D: Letters of Local Support Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application 10/7/2009 Attachment E: Electronic Copy of Application (included in binder pocket) Chefornak Wind Turbine Installation: Renewable Energy Fund Round 3 Grant Application AEA10-015 Grant Application 10/7/2009 Attachment F: Governing Body Resolution