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HomeMy WebLinkAboutCity of Bethel Pt. 3Maps L V %.r CL {.y W dam' 1.. City of Bethel Commitment Introduced by: Dan Leinberger, Council Member Date: September 23, 2008 - - Action: Passed Vote: 6-0 _. _._. A RESOLUTION SUPPORTING THE PREPARATION AND SUBMISSION OF A GRANT APPLICATION TO THE ALASKA ENERGY AUTHORITY FOR THE PURCHASE AND INSTALLATION OF ONE OR MORE COMMERCIAL WIND TURBINES WHEREAS, the Wind Resource Assessment for Bethel, Alaska report completed in February 2006, indicates that Bethel has "good" wind energy development potential (Wind Power Class 4) and has yet to be developed; WHEREAS, the Alaska Energy Authority (AEA) expressed interest in having Bethel serve as a - wind energy hub that could help share its wind energy project experience, host training sessions, deliver technical expertise, and distribute parts and supplies to villages in the Kuskokwim River area actively engaged in wind power development; WHEREAS, the Bethel City Council passed Resolution #05-31 on August 9, 2005 supporting wind power development in Bethel as a way to reduce/eliminate the cost of electricity to the City, other profit- and not -for -profit entities, and/or the community as a whole; WHEREAS, the tariff under which the Bethel Utilities Corporation operates, allows prospective independent power producers, like the City of Bethel, to connect alternative energy - - generators to its utility grid and sell power to the utility at the avoided fuel cost rate, WHEREAS, the Alternative Energy Committee, a volunteer administrative committee for the City of Bethel, is pursuing its short-term goal of installing and operating a small commercial wind turbine as a demonstration project and its long-term goal of owning and operating a commercial wind farm that would have the potential to lower the cost of electricity for Bethel residents; WHEREAS, the Alaska Energy Authority is soliciting competitive applications from qualified applicants for the purpose of recommending grants for renewable energy projects to be funded by the Alaska State Legislature; WHEREAS, the Alaska Energy Authority issued a Request for Proposals on September 4, 2008 with a deadline of October 8, 2008 for projects that will be ready and able to proceed quickly once funded; City of Bethel, Alaska Resolution 7#08-23 1 of 3 Introduced by: Dan Leinberger, Council Member Date: September 23, 2008 Action: Passed Vote: 6-0 WHEREAS, the City of Bethel, as a local government entity, is eligible to apply for grant funds through the RFP issued by the Alaska Energy Authority; WHEREAS, the City intends to include as part of its grant request, at least $200,000 to complete the project funding requirement for the 100 kW wind turbine that was partially funded during the AEA spring 2008 grant cycle; WHEREAS, the City intends to include as part of its grant request, the purchase, transportation, and installation of one ore more commercial wind turbines; WHEREAS, the City's Finance Department will create an energy enterprise fund, in which all grant funds, revenues, and expenses associated with this and other wind energy projects will be accounted for and properly tracked; WHEREAS, the City intends to provide a direct public benefit by allocating a portion of the revenues over expenses achieved each year from the Energy Enterprise Fund to the City's Water and Sewer Enterprise Fund as a way to subsidize the City's cost to deliver water and sewer benefits; WHEREAS, the City promises to administer the grant properly, including the purchase, installation, operation, and maintenance of each and every wind turbine purchased with some or all of these grant funds; WHEREAS, the City authorizes the Grant Development Manger to be the point of contact and represent the City for the purposes of this application; WHEREAS, the City of Bethel is in compliance with all local, state, and federal laws, including existing credit and federal tax obligations; WHEREAS, while no cash match is required for this grant request, the City intends to provide in - kind resources for the success of the project, including land, administrative capacity, in -town transportation of equipment, use of heavy equipment, personnel, and sand; WHEREAS, the purchase and installation of one or more commercial wind turbines like the one proposed herein offers the following major benefits to the City, community, and other entities considering similar projects: (1) actual cost figures from the purchase, installation, operation, and maintenance of the turbines, (2) results on wind characteristics (intensity, duration, frequency, direction) for a location in city limits, (3) City and Alternative Energy Committee experience in the preparation and submission of wind energy grants; (4) jobs for residents to transport, install, operate, and maintain the wind turbine(s); (5) increased potential for Bethel to serve as a wind energy hub community, supplying parts, labor, and training to surrounding villages; and (6) a true test in western Alaska of a municipality working with a private utility so the municipality could own and operate wind turbines connected to the utility grid; City of Bethel, Alaska Resolution #08-23 2 of 3 Introduced by: Dan Leinberger, Council Member Date: September 23, 2008 Action: Passed Vote: 6-0 NOW, THEREFORE, BE IT RESOLVED that the Bethel City Council supports the preparation and submission of a grant application to the Alaska Energy Authority to fund the purchase and installation of one or more commercial wind turbines; BE IT FURTHER RESOLVED that the City authorizes this application for project funding with the project match identified herein; ENACTED THIS 23`d DAY OF SEPTEMBER 2008 BY A VOTE OF 6 IN FAVOR AN OPPOSED. - r Eric Middlebrook., Ma ATTEST: 21 Lori Strickler, pity Cler City of Bethel, Alaska Resolution #08-23 3 of 3 N CITY OF BETHEL *44-41 P.O.Box 1388 Bethel, Alaska 995 59 Al; 907-543-2047 FAX A 543-38117 Memorandum To: John. Sargent, Grant Development Manager from: Laurie Walters, Finance Director Sub ect: Energy:Enterprise Fund and Water & Sewer Utility Enterprise Fund Date: October 3. 2008 As we discussed, it will be easy for me to set up an energy enterprise fund to keep track of all of the revenues and expenses related to the renewable energy projects you are proposing- assurning approval by the City Council.. An enterprise fund is intended. to function like a. business atid be profitable at year-end. The wind energy feasibility study that you showed me has a -favorable profit potential using conservative estimates, making an enterprise fund all the more appropriate. Council Member Dan Leinberoer's idea to transfer a portion. of the revenue generated each year 7i from your wind energy generation, project to the City's Water & Sewer Uhility Enterprise Fund is easy to do from an accounting standpoint. Once the City Council decides on a set amount or set percentage of revenue to be allocated to the Water & Sem.,cr Utility .l."'Interprise fund and how offers, I xvill. be able to insure that accurate and timely fund transf'ers are made. I think it's a [air assumption that nearly everyone in the community of'Bethel who pays for electricity, also pays for water and sewer services., especially since the use ofhoneybuck.ets have been outlawed. "therefore, trwi&rerrin,) a portion ol"wind energy project revenue to the Water & z:1 Sewer L'Itility Enterprise fund is a great way to "give" proceeds from the pi-Qject, to the people who live and work in our corer unity. These contributions will help the City subsidize -the fund, minimize the need for another rate increase, and help control the cost of living in Bethel. J'he City's Water & Sewer Utility Enterprise fund is in desperate need of supplemental cash infusions. The Fund is rurining at , a yearly deficit of $500,000 to $700,000., in addition to depreciation for vehicles and infrastructure. The three water and sewer rate increases that City Council approved over the last fifteen years have not been sufficient to cover the hit), i costs of' J operating our hauled and piped water delivery system and our hauled and piped sewer evacuation systen'l. "Deep Sea and D-ansportation Center of'the Kiiskokivim " Jr- ANN P.O. Box 1388 - Bethel, Alaska 99559-1388 907-543-2047 Fax # 543-4171 Website: www.dityofbethei.org October 3, 2008 Butch White, Grants Administrator Alaska Energy Authority. 813 West Northern Lights Blvd. Anchorage, Alaska. 99503-2495 C� Dear Mr. Iffhite: Please accept this letter as verification that the City of Bethel's Property Maintenance Division intends to honor the City Council's commitment to operate and maintain the wind turbines proposed to be purchased and installed with grant funds. As Property Maintenance Forenlan, I have the responsibility to manage our budget, assign tasks to my two maintenance workers, arrart-e training make long-term plans. Each I _, for my crew, make purchases for our division, and n of these, responsibilities will be undertaken to support the City's wind energy generation project. f have come to appreciate the site location for the wind turbines —directly across from the City Shop where my office is located, on the open tundra. Needless to say, the wind turbines will be convenient: to access for routine maintenance activities and monitoring. The computerized reinote monitoring display can be stationed in my office. The Property Maintenance Divisionhas vehicles, tools, personnel, and a parts budget to apply In. our windmill operation and maintenance effort. I look forward to playing a role in the success of this project. Sincerely! h Paul Wold Property Maintenance Foreman "Deep Sea aria Transportation Center of the Kuskokwbti BLIC Avoided Fuel Cost Rate and BUC Tariff Information APUC No. 43 69`b Revised Suet No. 30.3 Canceling. 68"' Revised ,Sleet No. 30.3 BETHEL UTILITIVS CORPORATION RATE FOR PURCHASE OF NON -FIRM POWER FROM QUALIFYING FACfL1TCES With variable operating and maintenance expenses set to ,zero, the rate at which non -firm power will be purchased from qualifying facilities will include only the avoided fuel cost of power which is calculated on Sheet No. 30.5 (D) (5). Avoided fuel cost of power $ 0.1570JKWH R This filing pursuant to order No. 5 of Docket U-81-35. t'ariffAdvice No. 163-43 Effective: 08/01/03 Issued by: Bethel. Utiliti oration By: _�_.__r_ "Title: Controller Thomas S. Sterrett, Jr. AFUC No 4 70" Revised Canceling 69'h Revised Sheet No. 30.3 Sheet No. 30.3 BETHEL UTILITIES CORPORATION RATE FOR PURCHASE OF NON -FIRM POWER FROM QUALIFYING FACILITIES With variable operating and maintenance expenses set to zero, the rate at which non -firm power will be purchased from qualifying facilities will include only the avoided fuel cost of power which is calculated on Sheet No. 30.5 (D) (5). Avoided fuel cost of power S 0.1725/KWH I This filing pursuant to order No. 5 of Docket U-81-35. Tariff Advice No. 156-43 Effective: I2/01 /03 Issued ley: Be oration By: Title: Controller Thomas S. Sterrett, Jr. APUC No. 43 71" Revised Sheet No. 30.3 Canceling . 70`h Revised Sheet No_ I_Q 3 BETIrZEL UTILITIES CORPORATION RATE FOR PURCHASE OF NON -FIRM POWER FROM QUALIFYING FACILITIES With variable operating and maintenance expenses set to zero, the rate at which non -firm power will be purchased from qualifying facilities will include only the avoided fuel cost of power which is calculated on Sheet No. 30.5 (D) (5). Avoided fuel cost of power $ 0.1573/KWH R This filing pursuant to order No. 5 of Docket U-81-35. Tariff Advice No. 167-43 Effective 03/0t/04 Issued by: _Bethel Utili `cs o oration By: t Title: Controller Thomas S. Sterrett, Jr. APUC No. 43 72'd Revised Sheet No, 30.3 Canceling 7 1 ' _Revised Sheet No. 30.3 BETHEL UTILITIES CORPORATION RATE FOR PLIRCHASE OF NON -FIRM POWER FROM QUALIFYING FACILITIES With variable operating and maintenance expenses set to zero, the rate at which non -firm power will be purchased from qualifying facilities will include only the avoided fuel cost of power which is calculated on Sheet No. 30.5 (D) (5). Avoided fuel cost of power 0.1627/KWH I This filing pursuant to order No. 5 of Docket U-81-35. [Tariff Advice No, 169:43 Effective: 05/0 1/04 ls'tu By: Title: Controlle Thomas S. Sterrett, Jr, APUC No. 43 73`4 Revised Sheet No. 30.3 Canccling 72'd Revised Sheet No. 30.3 BETHEL UTILITIES CORPORATION RATE FOR PURCHASE OF NON -FIRM POWER FROM QUALIFYING FACILITIES With variable operating and maintenance expenses set to zero, the rate at which non -firth power will be purchased from qualifying facilities will include only the avoided fuel cost of power which is calculated on Sheet No. 30.5 (D) (5). Avoided fuel cost of power - $ 0.2346IKWI I I This filing pursuant to order No. 5 of Docket U-81-35. Tariff Advice No. 171-43 Effective: 08LO 1/04 Issued by: Bethel Util ie r,oration Bv: /—Z—t Z Title: Controller Thomas S. Sterrett, Jr. �_� AP11C: No. 43 74n° Revised Canceling 73`d Revised Sheet N9. 30.3 Sheet No. 30.3 BET11EL UT'I.LITIES CORPORATION RATE FOR PURCHASE OF NON -FIRM POWER FROM QUALIFYING FACILITIES With variable operating and maintenance expenses set to zero, the rate at which non -.firm power will be purchased from qualifying facilities will include only the avoided fuel cost of power which is calculated on Sheet No. 30.5 (D) (5). Avoided fuel cost of power $ 0?069/KWH R This Filing pursuant to order No. 5 of Docket U-81-35. Tariff Advice No. 174-43 Effective: 10/01 /04 issued by: Bethel UtilidwvZomoration B Title: Controller Thomas aSterrett,'1r. / APUC No. 43 750 Revised Canceling 74'h Revised Sheet No. 30.3 Sheet No. 303 BETHEL UTILITIES CORPORATION I RATF, FOR PURCHASE OF NON -FIRM POWER FROM QUALIFYING FACILITIES I With variable operating and maintenance expenses set to zero, the rate at which non -firm power will be purchased from qualifying facilities will include only the avoided fuel cost of power which is calculated on Sheet No. 30.5 (D) (5). 1 I Avoided fuel cost of power $ 0.2020/KWH This filing pursuant to order No. 5 of Docket U-81-3 5. Tariff' Advice No. .17-54 Effectiv6: 03/01/05 Issued by: _Beftj_Q,C Ut ilities oration By: _.- - /_ - -.1=- Title: Controller Thomas S. Sterrett, Jr. R J APUC No. 43- 76" Revised Sheet No. 30.3 CaiiceU(y 75"Revised Sheet No. 30.3 BF,TKEE RATE FOR PURCHASE OF NON -FIRM POWER FROM QUALIFYING FACILITIES With variable operating and maintenance expenses set to zero, the rate at which non -firm power will be purchased from qualifying facilities will include only the avoided fuel cost of power which is calculated on Sheet No. 30,5 (D) (5). Avoided fuel cost of rower $ 0,2067/KWH I This filing pursuant tc order No. 5 of Docket U-81-3 5. ITariffAdviceNo. 177,43 Effective.: 05101/05 Issued by: Bettie] �s R'o-moration /7 `~~ frry.-� ( BY: Title: Controller Thomas S. Sterrett, Jr. /I E C E I V E D A P v Sheet No. 303 JUL 8 2005 ]��pL 4 -3 27 Rg State f4f Ajaska Canceling Ropwory Commission of Aja�*g j6!It Ysled Sheet No. 30.3 RATE FOR PURCHASE OF NON -FIRM POWER FROM QUALIFYING FACILITIES With variable operating and maintenance expenses set to zero, the rate at which non -firm power will be purchased from qualifying facilities will include only the avoided fuel cost of power which is calculated on Sheet No. 30.5 (D) (5), Avoided fuel cost of power $ 0.2302/KWH I This filing pursuant to order No. 5 of Docket U-81-35. Issued by: _Bet Mies raratian By Title: Controller r &E—Lic No. -41 78d' Revised Sheet No. 30.3 Canceling 77'� Revised Sheet No. 30.3 BETHEL UTILITIES CORPORATION I RATE FOR PURCHASE OF NON -FIRM POWER FROM QUALIFYING FACILITIES I IWith variable operating and maintenance expenses set to zero, the rate at which non -firm power will be purchased from qualifying facilities will include only the avoided fuel cost of power which is calculated on Sheet No. 30.5 (D) (5), 1 I Avoided fuel cost of power $ 0.2799/KWH This filing " pursuant to order No. 5 of Docket U-81-35. 11-ariff Advice No. 1.81-43 Effective: 111011,05 Isstied by: Bethel Utillitiaseorporation 'OF By: Title: Controller Thomas S. Sterrett, Jr. AITC No. 43 79'h Revised Sheet No, 30-3 Canceling 78'h Revised Sheet No. 30. BETHF,L UTILITIES CORPORATION I RATE FOR PURCHASE OF NON -FIRM POWER FROM QUALIFYING FACILITIES I With variable operating and maintenance expenses set to zero, the rate at which non -firm power will be purchased from qualifying facilities will include only the avoided fuel cost of power which is calculated on Sheet No. 30.5 (D) (5). I Avoided fuel cost of power I This filing pursuant to order No. 5 of Docket U-81-35. $ 0.2 3 1 S/K WH R 1'Tariff Advice No, 183-43 Effective: 02/01/06 Issued by: Bethel Utifitle.-_CoKoration BY: Title: ContrQllcr Thomas -S.. terrett. Jr. APUC: No. 43 $0`h Revised Sheet No.. 30.3 Canceling 79`h Revised Shea No. 30.3 BETHEL UTILITIES CORPORATION RATE FOR PURCHASE OF NON -FIRM POWER FROM QUALIFYING FACILITIES With variable operating and maintenance expenses set to zero, the rate at which non -firm power will be purchased from qualifying facilities will include only the avoided fuel cost of power which is calculated on Sheet No. 30.5 (D) (5). Avoided fuel cost of power S 0.2678,'KWH I This filing pursuant to order No. 5 of Docket U-81-35. Tariff Advice No. 185-43 Effective. ' 05/01 /06 ksucd by: Bcthel Utilities COID20tion By: _ Title: Controller Thomas S. Sterrett, Jr. APUC No. 43 81" Revised Sheet No. 30.3 Canceling 80ie Revised Sheet No. 30.3 BETHEL UTILITIES CORPORATION RATE FOR PURCHASE: OF NON -FIRM PONVER FROM QUALIFYING FACILITIES With variable operating and maintenance expenses set to zero, the rate at which non -firm power will be purchased from qualifying facilities will include only the avoided fuel cost of power which is calculated on Sheet No. 30.5 (D) (5). Avoided fuel cost of power S 0.3014/KWH 1 This filing pursuant to order No. 5 of Docket U-81-35. Tariff Advice No. 189-43 Effective: 08/01/06 Issued by: Bethe t o oration BY: - Title: Controller Thomas S. Sterrett, Jr. // Al!I,IC.N 4.3 _ 2R ndRavised ShcetNo. 301 Canceling 81"Revised Sheet No, 303 T3la'Tf1H;L I7TZLI-TIES CORP{)I2ATTON RATE FOR PURCHASE OF NON -FIRM POWER FROM QUALIFYING FACILITIES With variable operating and maintenance expenses set to zero, the rate at which non -firm power will be purchased from qualifying facilities will include only the avoided fuel cost of power which is calculated on Sheet No. 30.5 (D) (5). Avoided fuel cost of power $ 0.29711KWI-I R This filing pursuant to order No. 5 of Docket U-81-35. (Tariff; dv�c Iio..19143_—,- Effectlye Il/0U06 Issued By: _ I _ __' — � �� _ - Title: Controller Thomas S. Sterrett, Jr. Thomas S. Sterrett, Jr. APLIC No. 43 83"' Revised Sheet o. �3O Canceling atX--YLS-Z4 Sheet No. 303 BETIA, L UTILITIFS CORPORATION RATE FOR IIURCHASE OF NON -FIRM POWER FROM QUALIFYING FACILITIES With variable operating and maintenance expenses set to zero, the rate at which non-fir-ni power will be purchased from qualifying facilities will include only the avoided fuel cost of power which is calculated on Sheet No. 30.5 (D) (5). Avoided fuel cost of power $ 0.31891KWH I This filing pursuant to order No. 5 of Docket U-81-35. Tariff Advice No. 19243 Effective: 0_2/01/07 Issued by: Bethel Utfllie-S Corporatuor By: Titte: Qojitrollc Thomas S. Sterrett, jr. . ...... ..... ...... APUC No 43 84"' Revised Sheet No. 303 Canceling 83 d Revised SheeLXg. _103 BETIJ" TION WL CORPORA.. RATE FOR PURCHASE OF NON -FIRM POWER FROM QUALIFYING FACILITIES With variable operating and maintenance expenses set to zero, the rate at which non -fine power will be purchased from qualifying facilities will include only the avoided fuel cost of power which is calculated on Sheet No. 30.5 (D) (5). Avoided Riel cost of power $ 0.2749/KWH R This filing pursuant to order No. 5 of Docket U-8 1-35. 0c 'e:'1'651'0"1/V Issued by: Bethel Utilities By: Thomas S. Sterrett, Title: _Controller ' APUC No. 43 850' Revised Sheet No. 30.3 Canceling 84'h Revised Sheet No. 30.3 13ETHEL UTILITIES CORPORATION RATE FOR PURCHASE OF NON -FIRM POWER FROM QUALIFYING FACILITIES With variable operating and maintenance expenses set to zero, the rate at which non -firm power will be purchased from qualifying facilities will include only the avoided fuel cost of power which is calculated on Sheet No. 30.5 (D) (5). Avoided fuel cost of power $ 0.3098/KWH I 'Phis filing pursuant to order No. 5 of Docket U-81-35. Tariff Advice No. 198-43 Effective: 08/01/07 Issued by: Bethel Utilities CoKoration Title: Contrro _ler Thomas S. Sterrett, Jr. APUC No. 43 87"' Revised Sheet No. 30.3 Canceling 86tit Revised Sheet No. 30.3 $ETHEL UTILITIES CORPORATION RATE FOR PURCHASE OF NON -FIRM POWER .FROM QUALIFYING FACII.,ITIES With variable operating and maintenance expenses set to zero, the rate at which .non-lxrm power will be purchased from qualifying facilities will include only the avoided fires cost of power which is calculated on Sheet No. 30.5 (D) (5). Avoided fuel cost of power $ 0.2836/KWH R This filing pursuant to order No. 5 of Docket U-81-35. Tariffs dviceNo.203'-43':' .. Effective: 2/01/08. Issued. by: 'Bethel Utilities Q( oration By' Title: Controller Thomas S. Sterrett, Jr. APUC No, 43 88'" Revised Sheet No. 30.3 Canceling 87`4 Revised Sheet No. 30_3 BETREL'UTILITIES CORPORATION RATE; FOR PURCHASE OFNON-FIRM POWER FROM QUALIFYING FACILITIES With variable operating and maintenance expenses set to zero, the rate at which non -firm power will be purchased from qualifying facilities will include only the avoided fuel cost of power which is calculated on Sheet No. 30.5 (D) (5). Avoided fuel cost of power 0.3356IKWH I This filing pursuant to order No. 5 of Docket U-81-35. Tariff Advice No. 205-43 Effective: 5101108 issued by: _Be on By: Title: Controller Thomas S. Sterrett, Jr. Of A PUC No. 4' 80"' Revised Sheet No. 30.3 . . ........... Canceling 881). Revised Sheet No. 303 RECEIVED JUL 0 8 2008 STATE OF ALAS" ov Ar*SKA BET11EL UTILl'I'M S CORPOIZA'rION RATE FOR. PURCHASE. OFINTON-FIRM POWER FROM QUALIFYING FACIL]"I'lFS With variable operating and maintenance expenses set to zero, the rate tit which non -firm power will be purchased from qualifying facilities will include only the avoided fuet cost of power which is calculated on Sheet No. 30.5 (D) (5). Avoided fuel cost of power 0.5122/KWH This filing pursuant to order No. 5 of Docket U-8 1-35. Pursuant to: U-07-112(8) Effective 8/01109: I Iss-1—`or. oration ued by� BethelTitle: Controller By: Thomas S. Sterrett, Jr. July 8, 2008 TARIFF ADVICE LETTER NO. 208-43 ]Zcgulatory Commission of Alaska 701 West Eighth Avenue, Suite 300 BETHEL UTILITIES CORPORATION 3380 C Street, Suite 210 Anchorage, Alaska 99503 Phone: (907) 562-2500 Fax: (907) 562-2502 OD Anchorage, Alaska 77501 Gentlemen: The tariff filing described below is hereby submitted to you for filing in compliance with the Alaska Public Utilities Act and Sections 3 AAC 48.200 through 3 AAC 50.820 of the Alaska Administrative Code. TARIFF SHEET NUMBER Original Revised 1401h 30.2 89t" 30.3 ) 68"' 30.5 CANCEL SHEET NUMBER Ori&final Revised 139" 30.2 8 8"' 30.3 67"' 30.5 This tariff revision is being submitted to adjust our cost of power adjustment (CODA). The computed rate of $,3661/.KW[l will apply to electric consumption during the month of July, 2008 and will appear on customer statements beginning in A-igust. 2008. This tariff revision is also being submitted to adjust our Power Cost Equalization per KWH under AS 44,83.162, due to the aforementioned COPA chaDge. The computed equalization credit of $0.3765/KWH for single phase customers and $0.3765/KWI-I.f6r three phase customers will apply to electric consumption during the month of July, 2008 and will appear on customer statements beginning in August, 2008. In addition, this tariff revision is being submitted to adjust our rate for purchase of non -firm power from qualifying facilities as required by 3 AAC 50.790(e), The computed rate of $0.5122WYN'.11 will apply to electric consumption during the month of July, 2008 and will appear on customer statements beginning in August, 2008. The percent change in the average cost of power was approximately 54% due to increased fuel costs. _7V j. I-TI C-) TARIFF ADVICE LETTER NO, 208-43 July 8, 2008 Page Two For your convenience, we have included all tariff sheets affected by these changes, a schedule of the number of gallons and the amount spent for fuel and the number of kilowatt hours generated and sold for the past twelve months. Worksheets used to compute the revised PCE rate ' s and document the balancing account used in calculating the COPA rate are included as well. If you have any questions, please feel free to call me. Thank you. Sincerely, Bethel Utilities Corporation Thomas S. Sterrett, Jr. Controller .H.MS/hms Enclosures A P U C ho. 43 140'h Revised Sheet No. 30.2 Canceling 139'h Revised Sheet No. 3U BETHEL UTILITIES CORPORATION POWER COST EQUALIZATION The following conditions apply to Power Cost Equalization (PCE) eligibility. 1. Residential customers are eligible for PCE for actual consumption of not more than 500 kilowatt-hours per month. 2. Customers that are classified as local community facilities are eligible for PCE, calculated in the aggregate for each community served by Bethel Utilities Corporation for actual consumption of not more than 70 kilowatt-hours per month for each resident of the community. The number of community residents shall be determined under AS 29.60.020. 3. Customers not listed above are not eligible for PCE. If appropriations are sufficient for payment in full, the arnount of Power Cost Equalization to be credited to the bills of all eligible customers rendered on or after the effective date set forth below, is as follows: Single Phase Three Phase * $0.3765/KWH $0.3765/KWH The Equalization will be discussed separately on each custotner billing with the following notice: ALASKA POWER COST EQUALIZATTION CREDIT X.XX * Subject to the conditions noted above Tariff Advice No. 208-43 Effective; 8/01/08 Issued by: Bethel Utilities oration BY: Title: Controller Thomas S. Sterrett, Jr. Changes in Rates for Purchase of Non -firm Power From Qualifying Facilities Utility: Bethel Utilities Corporation Potential Independent Power Producer: City of Bethel Source: APUC No. 43, Sheet No. 30.3 issued by Bethel Utilities Corporation. Revision Effective Number Date $ per KWH 69 8/1/2003 $0.1570 70 12/1/2003 $0.1725 71 3/1/2004 $0.1573 72 5/1 /2004 $0.1627 73 8/1 /2004 $0.2346 74 10/1 /2004 $0.2069 75 3/1 /2005 $0.2020 76 5/1 /2005 $0.2067 77 8/1/2005 $0.2302 78 11 /1 /2005 $0.2799 79 2/1/2006 $0.2318 80 5/1/2006 $0.2678 81 8/1 /2006 $0.3014 82 11 /1 /2006 $0.2971 83 2/1 /2007 $0.3189 84 5/1/2007 $0.2749 85 8/1/2007 $0.3098 missing data pt. (average of 85 and 87 used) --> $0.2967 87 2/1/2008 $0.2836 88 5/1 /2008 $0.3356 89 8/1 /2008 $0.5122 Average % change Quarterly Calendar Year % Change % Change 9.87% -8.81 % 3.43% 44.19% -11.81 % 27.01 % -2.37% 2.33% 11.37% 21.59% 32.92% -17.18% 15.53% 12.55% -1.43% 9.47% 7.34% -13.80% 12.70% -4.23% 2.01 % -4.42% 18.34% 52.62% 7.39% 17.85% Note: Revision Number 86 data point is missing. A search of Regulatory Commission of Alaska website on October 3, 2008 did not yield the "rate of purchase of non -firm power from qualifying facilities" information sheet. Bethel Utilities Corporation — Tariff No. 1 Bethel Utilities Corporation operates under Tariff No. 1, on file with the Regulatory Commission of Alaska. Sections of the tariff relevant to a wind energy development project is copied word for word below. sheet 99 4. Technical Provisions 4.2 Protective Equipment It is the consumer's responsibility to provide suitable protective equipment for the devices in his own premises. If three phase equipment is used, it is the consumer's responsibility to protect such equipment against single phase operation and over -and -under voltage conditions. Sheet #11 4.5 Undesirable Load Characteristics The Company may refuse its service to, or remove its service from, any installation which in the judgment of the Company will injuriously affect the operation of the Company system or its service to other customers. Sheet #16.02 and 16.03 5.15 INTERCONNECTION OF CONSUMER OWNED ALTERNATE TECHNOLOGY AND FOSSIL FUEL STANDBY GENERATION EQUIPMENT ALTERNATE TECHNOLOGY GENERATION 1. The Company will permit the interconnection and operation of alternate technology generation facilities such as wind energy conversion systems or small scale hydroelectric facilities with its integrated distribution system upon compliance by the customer with the following provisions: a) A customer who owns any alternate technology generation shall request approval from the Company to interconnect with its system at least forty-five days prior to the date on which the customer would intend to make any connection in any way to electric circuitry common to the Company's integrated distribution system. b) The customer shall submit to the Company along with its request for interconnection complete documentation of the alternate technology generation equipment including, but not limited to: schematics, wiring diagrams, performance specifications, descriptions of energy storage devices, circuit protection equipment, regulation equipment, automatic disconnect equipment and any other proprietary device provided by the equipment manufacturers. c) Upon approval of the interconnection by the Company the customer shall agree under special contract with the Company to pay the cost of any special metering equipment or circuit modifications determined by the Company as necessary to accomplish the interconnection, to pay the costs incurred by the Company to make such interconnection, to install power factor corrective equipment to maintain a power factor of not less than 0.9, to operate the generation equipment in strict compliance with safety procedures established by the Company, and to accept the terms of purchase of energy as set forth in the contract or the Rate for Purchase of Non -Firm Power from Qualifying Facilities as provided in this tariff. Sheet 16.03 2. The Company reserves the right to refuse interconnection with alternate technology generation facilities or limit the number of interconnections with alternate technology generation facilities on any circuit if it is determined by the Company that any such interconnection would be harmful or hazardous to its system, employees or customers. If a proposed interconnection is refused by the Company, the Company will provide the customer, within thirty days of the initial request, written notice of refusal, including a written notice of the reason(s) for the refusal. Customers may appeal this refusal to the Alaska Public Utilities Commission, 420 L Street, Suite 100, Anchorage, AK 99501. Phone number: (907) 276-6222. OTHER CONSIDERATIONS BUCI is obligated to connect with cogeneration facilities that meet the safety and reliability standards established by the Federal Energy Regulatory Commission. The customer shall be solely responsible for all accidents and injuries to persons or property caused by the operation of the customer's equipment, or by any failure of the customer to maintain his equipment in a satisfactory and/or safe operating condition, and shall indemnify, defend, and save harmless the Company from any and all claims, suits, losses or damages for injuries to persons or property, of whatsoever kind or nature arising directly or indirectly out of the operation of such equipment or by the failure of the customer to maintain its equipment in a satisfactory and/or safe operating condition. Sheet 22.01 7.7 INDIVIDUAL ELECTRIC METERS Individual meters are not required: (c) where alternative energy resources are used in connection with central heating, ventilating, and air conditioning systems; Sheet 28 10.2 For Customer's Equipment Neither by inspection or non -rejection, nor in any other way, does the company give any warranty expressed or implied, as to the adequacy, safety, or other characteristics of any structures, equipment, wires conduit, appliances, or devices owned, installed, or maintained by the customer, or leased by the customer from third parties. Project Cost Information NorthWind@ 100 Wind Turbine Proposal For The City of Bethel Prepared for; John Sargent Grant Development Manager City of Bethel, AK Submitted by: STG, Inc. 11820 S Gambell Streeet Anchorage, AK 99515 David E. Myers 907-522-9018 prv,--L;Ida"a 114.1 ou, q"t ;)e 1Lloi.tj o,i1�16,. lroqJ t.;! no I (y 4 S sf3d Sad, L awardeci to lh,� ftw t . msun of � or. W=W on .11h - I" of :hj- dotF- TQ, h-* tba �jqm to 4J;xfiaole, upo, of di'�br. 1h. 1.1� -,. th,, pmvliod �,, 1P.v —1.d Tt. INZ�,� m*;V,-mv d— 4.! Irmit tht tVol.rw'. 1. u- =,01—.0 i" thin 0.1� 0 'd "A., blag.,d !"m now� aRl-.td rest, ition, 'h. Lt. to N� r-lmlk:n m, i,� pnqrt, I ai ME CORE ra,� 9,grgg i 11-5-21 ProPosal To [CornpanYl NW 100 Mind Turbines Pricing and Payment Terms Northa,rn Posner The installed costs to- this prnieet are in line Milt the costs incurred Nvith the t-wo previous installations Joksook and. Kci,6gluk), which we performed in remote Alaska. As wi lr KKasigluk. the foundations require piles that are augured in like, screws. Concrete also needs to be used to stiffen the base. Thermolsyphrms are used to keep the permafrost from melting in the surnmc^r. Barging in the crane. the concrete equipment, the drill and the 'aggregate and concre=e adds si-mificant costs to this single u-trbine protject. In Conclusion. we will continue to -work at finding cost savings with the other proleeL,; that we Nvill be conducting in Chevak, Hooper Bay; Savoonga, and M koryuk in the summer of 2008. To help illustrate the sigh costs of construction projects in remote Alaska, especially- for dit'ficult sites, the. product (,turbine, controls, and inicgration) is 51 % of the total, vatile the construct and install piece (inclu.ding geotech surveys and foundation design) are 49% of the total. A. line item breakd(rvrn of these costs call be provided if requested. Table S. Construct and Install Wind Turbine ---- Line Item (,roll labor, services, materials and work relative to and Line item Cost incidental to the items listed) 1. Construction of civil drawings, pile testing and structural foundation design, and Electrical Design $59,500 2. Construction and installation of the wind turbine. All transportation of equipment, foundation materials, disposal, and clean up of the project. includes all as-builts and warrantees. $389,454 3. I1vd100 turbine and tower with necessary controls to connect with the grid. $304,450 4. Installation and commissioning support, remote monitoring soft:=pare, project management and training for site personnel. $47,150 Total for Turnkey Project $799 554 Use or disclosure of dais carrtc+Szzetl oil tFcis slrect is suhjeet to therestrictionon the title p,.l e orthe propossrt pane 13 of SO Table 5. Construct and Install 3 Wind Turbines Line Item (All labor, services, materials and work relative to and Line Item Cost incidental to the items listed) 1. Construction of civil drawings, pile testing and structural foundation design $68,700 2. Construction and installation of 3 NW100 wind turbines. All transportation of equipment, disposal, and clean up of the project. Includes all as-builts and warrantees. $1,288,082 3. 3 each NW100 turbines and towers with necessary controls to connect with the grid. $988,500 4. Installation and commissioning support, remote monitoring software, project management and training for site personnel. $47,150 Total for Turnkey Project $2,392,432 Additional Terms: • The above pricing is for budgetary purposes only and is subject to change based on fluctuating material and transportation costs. Email from Brett Pingree, Wind Business Manager With Distributed Energy Systems, Manufacturer of the NW 100 Hi John, I just wanted to let you know that things were progressing well with your proposal. One change I wanted to tell you about is that STG, Inc will submit the turnkey proposal to you and we will subcontract to them. We decided this was a much better approach for you and for us. STG has an office, vehicles and staff in Bethel and in addition to being an Alaskan based construction company they are much better positioned to be your lead on this project. We have submitted our proposal to STG and we are going over the final details tomorrow. It is for one turbine, installed. STG will delivery the complete and final proposal to you on Monday. Dave Myers is the STG lead on this project. We did not touch the grant proposal as it is my understanding that you already submitted this and received the award. I will note, to the project and the City of Bethel's benefit, that with this proposal we are now using a 21 m rotor and a 37 m tower. That will improve the energy production of one NorthWind100 turbine from 220,000 kWhours to 260,000 kWhours per year! You will want to update your financial analysis to reflect that. Call me anytime throughout this process. Brett Pingree Wind Business Manager Distributed Energy Systems 29 Pitman Road Barre, VT 05641 Direct: +01.802.461.2942 Main: +01.802.461.2955 Fax: +01.802.461.2998 IMPORTANT: The information contained in this communication is confidential and/or proprietary business or technical data. It is intended for receipt only by the individual or entity to which it is addressed. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, copying or distribution of this communication is strictly prohibited. If you have received this communication in error, please immediately notify us by telephone 203-678-2000 or electronically by return message, and delete or destroy all copies of this communication. ® 110 S. Willow, #106 (907) 283-7834 Kenai, AK 99611 1-800-478-7834 FAX (907) 283-6179 October 3, 2008 John Sargent City of Bethel P.O. Box 1388 Bethel, AK 99559 RE: City of Bethel insurance for wind turbines Dear Mr. Sargent: The City of Bethel has sufficient liability insurance coverage in its existing insurance policy to cover the City's purchase, installation, operation, and maintenance of one or more commercial wind turbines. For purposes of the City's insurance policy, each installed wind turbine will be considered equivalent to a City building and thus have a $25,000 deductible associated with it. At an installed price of $800,000, the deductible amount represents only 3.12% of the cost to completely replace it. The City's increased insurance cost per year to cover the loss or damage of the property (wind turbine, tower, foundation, and electrical equipment necessary for connection, protection, and operation of the turbine) is expected to be 4% of the value (cost to purchase, install, commission). You can use this figure in your economic feasibility calculations. Please advise me if you have any questions. Sincerely, Doug Brown Insurance Broker Email from Dave Myers, Project Manager, STG, Inc. Warranty on NorthWind 100 Wind Turbines Subject: RE: Bethel Wind To: "'John Sargent"' <jsargent@cityofbethel.net> From: "Dave Myers" <dave.stginc@gci.net> Date: 10/06/2008 08:52 AM Good morning — The turbines come with a standard 2 year warranty and a limited extended warranty is available for an additional 3 years for $3000.00 per year per turbine. I could work up something for after that, but it would be for general maintenance only. David E. Myers Project Manager, STG Inc. Ph: (907) 522-9018 Fax: (907) 522-9003 Please vist our website at: www.stginc.cc Email from AVEC's Brent Petrie Verifying Low Maintenance Cost of NW 100 John: Here is a statement: "AVEC operates three turbines each at Toksook Bay and Kasigluk for a total of six. All of these turbines have been under warranty from commissioning in July 2006 until July of this year (2008). We have been using Northern Power on a T&M basis to conduct a spring and fall maintenance trip each year which is averaging $20,000 per year for the six turbines." John -After subtracting station use, the six turbines delivered 974,363 kWh to the local grids in 2007. $20,000 divided by 974,363 kWh gives an O&M cost of $0.0206 per kWh or rounded up to 2.1 cents per kWh. Brent From: John Sargent [mailto:jsargent@cityofbethel.net] Sent: Thursday, October 02, 2008 10:18 PM To: Brent Petrie Subject: Wind Energy Email Brent, would you please send me an email in reply to this message that states that your cost to operate six NorthWind 100 wind turbines in western Alaska was $20,000. Was that with a contract? Did you use your own people? Did you pay as you needed to have the maintenance service provided? I have another meeting at 11 am tomorrow. Will you please give our subcommittee report. Thank you. John Sargent Grant Development Manager City of Bethel P.O. Box 1388 Bethel, AK 99559 907-543-1386 907-543-1388 fax Isar entncityofbethel.net Confidentiality notice: This e-mail message, including any attachments, may contain legally privileged and/or confidential information. If you are not the intended recipient(s), or the employee or agent responsible for delivery of this message to the intended recipient(s), you are hereby notified that any dissemination, distribution, or copying of this e-mail message is strictly prohibited. If you have received this message in error, please immediately notify the sender and delete this e-mail message from your computer. This e-mail message has been scanned for Viruses and Content and cleared by MailMarshal Email from David Myers, Project Manager with STG, Inc. Verifying $95,000 benefit if his company installs all four NorthWind 100 at once vs. installing one and then three From: "Dave Myers" <dave.stginc@gci.net> To: "'John Sargent"' <j sargent@cityofbethel. net> Date: 10/04/2008 11:21 AM Subject: RE: Bethel Wind John, the attached pricing should be valid through December of this year. NPS is expecting the turbine price to go up after the New Year, but I don't yet have a feel for how much. Because of this, you really should consider purchasing a turbine for you partially funded project from the previous grant award. Also, I would say the savings of around $95,000 would be realized by combining this project with that from you previous award. You would save in the areas of mobilization, commissioning, survey, permitting, etc... David E. Myers Project Manager, STG Inc. Ph: (907) 522-9018 Fax: (907) 522-9003 Please vist our website at: www.stginc.cc