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HomeMy WebLinkAboutRE Revised Funding Request AEA 5-19-10 1 Chugach Electric Association, Inc. Anchorage, Alaska May 19, 2010 To: Butch White – Grant Administrator, AEA From: Ron Vecera – Director of Project Development & Point of Contact for Chugach’s Renewable Energy Fund Grant Application Subject: RE Fund, Round 3, Grant Application No. 491 Chugach is requesting that the $600,000 funding recommendation for its grant application be reduced. At $600,000, Chugach will not receive a grant because the total of all grants, with Chugach’s at the margin, will exceed the $50.25 million funding limit. Chugach requests a grant in the amount of $500,000. This amount does not cause the overall funding constraint to be exceeded and allows Chugach to proceed with its feasibility assessment of a transmission line for renewable energy projects on the west side of Cook Inlet. This lower level of funding, however, will result in a more limited scope of work, as follows: Project Description & Tasks The AEA recommended funding of $600,000, which was the amount requested for the feasibility phase of the project, would have been used to determine the route, prepare a route selection report, reach agreement on the route with participants and assess permit and right of way requirements. With funding of $500,000, the scope of work will be reduced. It will still include route selection, preliminary design and feasibility, and determination of right of way and permit requirements. However, the amount of field work that will be performed to confirm routes will be limited, if necessary, to stay within the reduced budget. Project Budget Overview The revised budget for a reduced Phase 1 project would consist of: - Route selection, preliminary design and feasibility, and determination of ROW and permit requirements, estimated to cost $500,000. Field work will be limited to remain within this budget. 2 - Chugach will provide project supervision and other labor with an estimated cost of $20,000 to manage these tasks. If needed to complete Phase 1, Chugach will solicit additional funding in a future grant application.