HomeMy WebLinkAboutSEAPA Integrated Resource Planning Project AppSEAPA
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1301 Huffman Road, Suite 201 • Anchorage, Alaska 99515
PO Box 110987 • Anchorage, Alaska 99511-0987
Ph: (907) 258-2281 • Fax: (907) 258-2287
Southeast Alaska Power Agency www.seapahydroorg
November 10, 2009
Butch White
Grant Manager
Alaska Energy Authority
813 West Northern Lights Blvd
Anchorage, AK 99503
Subject: Submittal of Application -Renewable Energy Grant Program -Round III
Dear Mr. White:
The Southeast Alaska Power Agency (SEAPA) is pleased to submit the enclosed application for
Round III of the Renewable Energy Grant program. This application is very similar to the one
submitted for Round II and the proposed use of the funds is to conduct an Integrated Resource
Plan for the present and planned interconnected region in southern Southeast Alaska.
The Swan-Tyee Intertie is now complete. As a result, Ketchikan is now connected by primary
transmission line to Wrangell and Petersburg. Plans are underway and some funding has
already been received for an intertie to Kake, which would tie into the present SEAPA
interconnected system. In addition, Metlakata has some surplus hydroelectric power which
could be added to the existing generation mix in this interconnected region. In order to serve
Kake and displace their diesel generation with hydroelectric power, appropriate and proper
planning must take place. This is the purpose of this application.
Loads are increasing in the region. The combined existing hydroelectric generation in the
region will be exhausted in the not-too-distant future and the intertie to Kake will add load to the
system. With the Swan-Tyee Intertie complete, hydro resources can be, and should be, shared
throughout the region. It is important that additional hydro generation (or other renewable form)
is added to the system in a cost-effective and orderly manner that benefits all the ratepayers in
the region.
SEAPA is requesting $252,000 in Renewable Energy Grant funds, which SEAPA will match with
a $60,000 cash contribution. SEAPA will also include its staff time and project management
services at no cost. We recognize the need for this planning process and we trust that the State
of Alaska and the Alaska Energy Authority also recognizes and will support this effort.
Sincerely,
£--->
Dave Carlson
CEO
Renewable Energy Fund Round 3) ALASKA
, ENERGY AUTHORITY Grant Application
Application Forms and Instructions
The following forms and instructions are provided to assist you in preparing your application for
a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA)
and the forms are available online at: http://www.akenergyauthority.org/REFund-lll.html
I Grant Application
Form
I
GrantApp3.doc Application form in MS Word that includes an outline of
information required to submit a complete application.
Applicants should use the form to assure all information is
provided and attach additional information as required.
Application Cost
Worksheet
Costworksheet3
.doc
Summary of Cost information that should be addressed by
applicants in preparing their application .
Grant Budget
Form
GrantBudget3.d
oc
A detailed grant budget that includes a breakdown of costs by
milestone and a summary of funds available and requested to
complete the work for which funds are being requested.
Grant Budget
Form Instructions
GrantBudgetinst
ructions3. pdf
Instructions for completing the above grant budget form.
• If you are applying for grants for more than one project, provide separate application
forms for each project.
• Multiple phases for the same project may be submitted as one application.
• If you are applying for grant funding for more than one phase of a project, provide
milestones and grant budget for completion of each phase.
• If some work has already been completed on your project and you are requesting
funding for an advanced phase, submit information sufficient to demonstrate that the
preceding phases are satisfied and funding for an advanced phase is warranted.
• If you have additional information or reports you would like the Authority to consider in
reviewing your application, either provide an electronic version of the document with
your submission or reference a web link where it can be downloaded or reviewed.
REMINDER:
• Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials
submitted to the Authority may be subject to disclosure requirements under the act if no
statutory exemptions apply.
• All applications received will be posted on the Authority web site after final
recommendations are made to the legislature.
• In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or
proprietary company data be kept confidential subject to review and approval by the
Authority. If you want information is to be kept confidential the applicant must:
o Request the information be kept confidential.
o Clearly identify the information that is the trade secret or proprietary in their
application.
o Receive concurrence from the Authority that the information will be kept
confidential. If the Authority determines it is not confidential it will be treated as a
public record in accordance with AS 40.25 or returned to the applicant upon
request.
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SECTION 1 -APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
The Southeast Alaska Power Agency I
Type of Entity:
Joint Action Agency
Physical Address Mailing Address
PO Box 110987, Anchorage, Alaska 99511 1301 Huffman Road, Suite 201, Anchorage, Alaska 99515
Telephone Fax Email
907-258-2281 907-258-2287 dcarlson@seaoahvdro.ora
1.1 APPLICANT POINT OF CONTACT
Name Title
Dave Carlson Chief Executive Officer
Mailing Address
PO Box 110987
Anchorage, Alaska 99511
Telephone Fax Email
907-258-2281 dcarlson@seapahydro.org907-258-2287
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
A local government, or
A governmental entity (which includes tribal councils and housing authorities); X
1.2.2. Attached to this application is formal approval and endorsement for its project by
YES 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)
1.2.3. As an applicant, we have administrative and financial management systems and
YES follow procurement standards that comply with the standards set forth in the grant
agreement.
1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached
YES grant form. (Any exceptions should be clearly noted' and submitted with the
application.)
1.2.5 We intend to own and operate any project that may be constructed with grant
YES funds for the benefit of the general public.
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SECTION 2 -PROJECT SUMMARY
This is intended to be no more than a 1-2 page overview of your project.
2.1 Project Title -(Provide a 4 to 5 word title for your project)
SEAP A Integrated Resource Planning Project (IRP)
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.
SEAPA (formerly called The Four Dam Pool Power Agency) has completed the Swan-Tyee
Intertie. Ketchikan is now interconnected with Wrangell and Petersburg. Interties are being
planned from this system to Metlakatla and to Kake. This will generally be the area that will be
evaluated with this IRP. Potential hydro generation sites that are reasonably accessible will be
included. The region scope may be expanded based upon stakeholder input which is a critical
component of this IRP process. (See attached map)
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
x Wind Biomass or Biofuels
X Hydro, including run of river X Transmission of Renewable Energy
X Geothermal, including Heat Pumps Small Natural Gas
Heat Recovery from existing sources x Hydrokinetic
Solar Storage of Renewable
Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Reconnaissance Design and Permitting
X
X
Feasibility Construction and Commissioning
Conceptual Design
2.4 PROJECT DESCRIPTIO
Provide a brief one paragraph description of your proposed project.
This project is a combination of reconnaissance, resource assessment and feasibility analysis.
The deliverable resulting from the expenditure of grant and matching funds is the first Integrated
Resource Plan (IRP) for the interconnected cities of Ketchikan, Wrangell and Petersburg as well
as the cities of Kake and Metlakatla. Interties to Kake from Petersburg and to Metlakatla from
Ketchikan are presently in the planning phase. Some funding is already in place for both of these
interconnections. Ketchikan, Wrangell and Petersburg currently benefit from existing SEAPA
and local utility-owned hydro which has provided for very stable power rates. The City of Kake,
served by IPEC, is a 100% diesel-dependent community with rates that are 5 or 6 times higher.
Providing renewable power to Kake with hydroelectric generation or other alternatives is a
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critical part of this IRP. Building a transmission line to Kake would not be prudent if adequate
renewable generation resources have not been identified to meet their existing and future loads.
In general, an IRP identifies the future resource portfolio that achieves a set of objectives that
have been established by stakeholders of the IRP process. The stakeholders will include the
local utilities, communities, commercial and industrial customers, Federal and State agencies and
the general public. The resource portfolio is a set of supply-side and/or demand-side
improvements that eliminate any identified energy or capacity deficits. Supply-side
improvements would be new generation construction, or modifications to existing generation
assets, such that energy production or available capacity is increased. This would include the
addition of existing generation through an interconnection to Metlakatla. Demand-side
improvements are system efficiency improvements or peak load modification measures. The
stakeholders and the IRP issuing body (SEAPA) establish the objectives that govern how the
resource portfolio is established, Most IRP objectives are governed by the 3 major categories of
cost, risk and environmental impact. The IRP process includes stakeholder input with final
content decisions made by the issuing body (SEAPA).
Developing an IRP requires an analysis of the regions generation and transmission system, and
an estimation of the regions load growth. Generation and load forecasts are modeled to
determine when and to what extent future energy and/or capacity deficits occur. Energy and
capacity deficits are resolved by a combination of constructing new generation facilities and
through load growth rate or peak hour value reduction via demand side management. The IRP
then documents a short term and long term plan to address the energy and capacity deficits.
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.)
For the first time, there is an interconnected system serving Ketchikan, Wrangell and Petersburg.
Existing hydroelectric resources owned by SEAPA and the local utilities generate most of the power
required to meet loads in those communities. Additional interties are planned to Kake and
Metlakatla. Metlakatla has some existing hydro surplus which could be added to the region's
resource balance. Kake is totally diesel-dependent to meet their loads. The oveniding public benefit
with this IRP is to plan for the cost-effective and the orderly development of additional hydroelectric
or other renewable generation sources to meet the loads in all the existing and planned interconnected
utilities and communities. The goal is to reduce diesel generation to the maximum extent possible.
A critical benefit of an Integrated Resource Plan (IRP) is the involvement of the public stakeholders
in the vitally important electrical system planning process. Integration is done on two planes:
1. Integrating public policy with utility technical expertise
2. Integrating generation, transmission, and distribution planning
This integration ensures the regional system is planned to meet stakeholder objectives, Using a
regional IRP process prevents expensive, stranded asset formation and ensures the opportunity for
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continued growth for all communities in the region. Planning is performed on two levels, a short
term (next 5 years) plan, and a long term plan that identifies longer lead time issues such as new
hydro asset construction. There is intrinsic public benefit in having the 'region' plan together to meet
the objectives and goals through an Integrated Resource Planning process.
2.6 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of
other contributions to the project.
The total budget for the IRP project is $312,000, with $60,000 contributed by SEAPA and an
assumed grant amount of $252,000. FDPPA's contribution is entirely direct funds with no in-kind
funds proposed. Of the total, $40,000 is for load research equipment and inflow metering, $268,000
for contractual services (consultants), with the remaining $4,000 budgeted for travel expenses
associated with project management services.
IRP Budget ($1000'5)
Task
SEAPA
dir. exp
SEAPA
Contractor
SEAPA
Total
AEA
Grant
Total
Creation of Advisory Panel 2 2 2
Creation of Plan Criteria 2 2 2
Creation of Resource Portfolio Objectives 2 2 2
Analysis of Existing System 1 19 20 2 22
Analysis of future systems 1 4 5 23 28
Forecast Load Growth 0 8 8 48 56
Forecast Inflow Levels 0 8 8 42 50
Determine Reserve Criteria 0 1 1 0 1
Determine Energy and Capacity deficits 2 2 10 12
Conduct Resource Portfolio Feasibility Studies 3 3 80 83
Perform Economic Analysis 1 1 2 32 34
Summarize Findings, write Report 5 5 15 20
Totals 3 57 60 252 312
2.7 PROJECT COST AND BENEFIT SUMMARY
Include a summary of your project's total costs and benefits below.
2.7.1 Total Project Cost
(Including estimates through construction.)
$ 312,000
2.7.2 Grant Funds Requested in this application. $ 252,000
$ 60,000
$ 312,000
$ 150,000 annually
2.7.3 Other Funds to be provided (Project match)
2.7.4 Total Grant Costs (sum of 2.5.2 and 2.5.3)
2.7.5 Estimated Benefit (Savings)
2.7.6 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.)
$ the IRP will identify
public benefit
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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.
Over-all, the IRP project management and coordination of IRP tasks will be provided by
SEAPA. The bulk of the analysis effort and some of the IRP project management, at the task
level, will be provided by contractors (consultants).
Eric Wolfe, SEAPA's Director of Special Projects, will be the IRP Project Manager. Mr. Wolfe
has 20 years of hydroelectric and electric utility engineering and management experience. Mr.
Wolfe has advised utilities on hydro turbine and hydroelectric plant sizing, determined lost
revenue effects resulting from relicensing mitigation, and supplied merchant plant investors with
forward production and cost estimates necessary for plant purchase bid evaluation. As part of
Idaho Power Company's Planning Group, Mr. Wolfe contributed to the IRP effort, managed the
implementation of decision support software, and supplied the planning group marketing arm
with term and day ahead buy/sell volume and price limits.
Kevin Cooney of Summit Blue Consulting, or someone with similar expertise, will manage
portions of the project concerning load forecasting, demand side management, and portfolio
feasibility studies. Mr. Cooney has 20 years of experience in the electric utility sector, primarily
as a consultant. His areas of expertise include but are not limited to renewable energy
evaluation, energy efficiency program evaluation, and IRP process management.
Economic analysis tasks and economic analysis sub-tasks will be managed by John Heberling of
D. Hittle Associates. Mr. Heberling has over 25 years of experience consulting to electric
utilities in the fields of electric utility finance, rate structure, and cost evaluation.
References for the project management team can be obtained by review of the enclosed resumes
of Attachment A.
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.)
The initial phase planning tasks such as the formation of the advisory panels, creation of the plan
criteria, and the creation of the resource portfolio objectives will not require AEA funds, thus
these tasks can start before FY 2011. The bulk of the project takes place during the 3rd and 4th
quarter 01'2010. The target date for issue of the draft IRP is June 2011. A project schedule with
task ID, durations, predecessor criteria, and end dates is enclosed in the Attachments.
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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.)
The key tasks for the JRP process are listed below.
Task Name Duration Start Finish
Creation of Advisory Panel 71 days 4/6/10 7/13/1 0
Creation of Plan Criteria 60 days 7/14/10 10/5/1 0
Creation of Resource Portfolio Objectives 60 days 7/14/10 10/5/1 0
Forecast Load Growth 160 days 6/10/10 1/19/11
Forecast Inflow 100 days 5/4/10 9/18/10
Determine Reserve Criteria 5 days 8/10/10 8/14/10
Analysis of Existing System 12 days 1/20/11 2/4/11
Determine Energy and Capacity Deficits 7 days 2/5/11 2/15/11
Conduct Resource Portfolio Feasibility Studies 180 days 7/20/10 3/26/11
Analysis of Future System 4 days 3/29/11 4/1/11
Conduct Economic Analysis 30 days 4/2/11 5/13/11
Summarize Findings, Write Report 30 days 5/14/11 6/24/11
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 primary personnel of this project will be consultants with previous IRP experience. Within
task levels, engineering consultants will be utilized. Potential engineering consultants will be
evaluated on the basis of their previous knowledge and work history regarding the task at hand.
Any consultants with both the appropriate experience and previous work history in Southeast
Alaska hydropower will be given preference.
Equipment Load Forecast:
The ongoing exchange from oil fired boilers to electric element water heating will cause both a
step change in the load curve as well as a shape change. The step portion occurs during the first
couple of years during the exchanges. The shape change means more electrical demand for the
same weather condition will occur in the future even though the number of households or
businesses could have remained constant. Small, inexpensive digital devices mounted on electric
meters can quantify the difference between similar households with and without oil fired boiler
use. At this time we do not know the appropriate number of devices, or if the devices are
absolutely necessary, but the budgetary provision for physical measurement should be made.
Equipment Inflow Forecast:
It is quite possible streamflow measurement or weather stations may have to be added at
strategic locations in the region. Additionally, existing sites may need communication or
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upgrade improvements.
Other Resources:
Numerous feasibility studies for individual projects have been previously completed and
submitted to the Alaska Energy Authority. These studies will be carefully reviewed to eliminate
any duplication of efforts.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
Advisory Council meetings will be web based to keep travel time and travel costs to a minimum.
The project manager(s) will submit quarterly progress reports to AEA and to the advisory
council, and the general public will have access to documentation either from an established fip
site or from a new web page. The AEA should have representation on the Advisory Council and
casual periodic communication between AEA and SEAPA is expected.
3.6 Project Risk
Discuss potential problems and how you would address them.
There is very limited to no physical or financial risk with producing an IRP.
SECTION 4 -PROJECT DESCRIPTION AND TASKS
• Tell us what the project is and how you will meet the requirements outlined in Section 2 of
the RFA.
• The level of information will vary according to phase(s) of the project you propose to
undertake with grant funds.
• If you are applying for grant funding for more than one phase of a project provide a
plan and grant budget form for completion of each phase.
• If some work has already been completed on your project and you are requesting funding for
an advanced phase, submit information sufficient to demonstrate that the preceding phases
are satisfied and funding for an advanced phase is warranted.
4.1 Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available.
Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be
available for the market to be served by your project.
The IRP will include the following main tasks:
• Creation of Advisory Council
• Creation of Planning Criteria
Planning criteria examples include; what percentile inflow and what percentile load
forecast should be used for energy and capacity analysis, what planning horizon should be
used such as 10 or 20 years, and how often the IRP should be updated such as every 2
years or sometimes up to 5 years.
• Creation of resource portfolio objectives
Resource portfolio objectives are typically a combination of reliability, cost, risk, and
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environmental constraints. Cost concerns are expressed or measured through wholesale
tariff or consumer rate increase limits, risk is expressed ultimately by rate or bond costs,
or through stand-by or second tier generation costs, and environmental concerns are
expressed by state or federal pollution limits, the desire for green tag income, or through a
community willingness to implement a more environmentally oriented energy policy.
Resource objective implementation examples:
the stipulation that new resources must be renewable or a stated percentage
renewable
the inclusion of demand side management
the inclusion of transmission upgrade/efficiency improvements
resource portfolio over-all cost expressed in consumer rate increase
• Forecast load growth
• Forecast inflow levels and durations
Generation systems comprised predominantly of hydroelectric assets require inflow
forecasts to predict future generation capability.
• Determine future reserve criteria
• Analysis of existing system
Compile historic generation records, reliability estimates, and infrastructure reports
previously documented such that future generation estimates can be made. Build a
generation and transmission model such that existing and proposed facilities can be
analyzed.
• Determine energy and capacity deficits
• Conduct resource portfolio feasibility studies
• Analysis of Future System
• Perform economic analyses
This analysis condenses the portfolio options into a single cost criteria such as $/kWh or
in terms of general rates. The single cost value is then incorporated into an over-all cost
benefit analysis that includes reliability of service, environmental benefit, and community
enhancement
• Summarize findings into short term and long term plans, compile and distribute IRP
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 existing energy system:
Existin2 Generation Diesel Capacity Hydro Capacity Avera2e Hydro Generation
Site MW MW MWh
Metlakatla 3.3 4.9 16,100
Ketchikan 15 12.3 69,600
Swan Lake -22.5 78,275
Tyee Lake -22.5 116,800
Wrangell 8.1 --
Petersburg 10.1 2.0 10,400
Kake 2.85 --
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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.
During the winter of 2007 and 2008 Ketchikan Public Utilities (KPU) generated significant
energy using diesel engines to meet demand. Low inflows into their hydro projects and into
SEAP A's Swan Lake reduced hydro output, thus forcing a long period of diesel generation. In
the next few years this condition will be avoided as additional hydro generation, not previously
available, will be available to KPU from Tyee over the newly completed Intertie. As Wrangell
and Petersburg loads grow, less and less Tyee generation will be available to KPU (explained in
Section 4.2.3). Future load-generation balance levels are difficult to estimate as load growth is
uncertain and thorough hydrologic records are not available. This leads into the purpose of an
IRP. The fundamental purpose of the IRP is to project future energy and capacity shortfalls and,
after identifying the shortfall, suggest the most cost effective alternatives that also meet the
criteria established by the Advisory Council.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Rates and Agreements
The Southeast Alaska Power Agency (SEAPA) owns the Tyee Lake and Swan Lake generation
projects, as well as the transmission lines connecting the cities of Petersburg, Wrangell and
Ketchikan. Energy sales from SEAP A to Southeast municipalities are in accordance with a
Power Sales Agreement (PSA). Terms of this agreement identify generation from Tyee Lake
(Tyee) and Swan Lake (Swan) as dedicated, additional dedicated and excess or surplus. Tyee
dedicated generation means the output is first dedicated to the cities of Petersburg and Wrangell,
the next portion of energy available, additional dedicated, can be imported by Ketchikan via the
new Swan-Tyee Intertie. Any available energy in excess of the dedicated and additional
dedicated amounts can be sold as non-firm excess at an interruptible rate. Output from Swan has
the same classifications except the dedicated portion is held by Ketchikan, and additional
dedicated amounts are held by Petersburg and Wrangell. The dedicated and additional dedicated
rate is $68/MWh. Non-firm sales rates are negotiable. There is no charge for voltage support or
capacity under the existing PSA.
lL d2006MUnIClpa oa s
CommunitylUtility Load (MWh) Peak(MW)
Ketchikan 152,260 28.9
Petersburg 38,949 8.81
Wrangell 20,571
Kake 2,974
Metlakatla 14,500 ..2006 MUniCipal Loads
Source: AK-BC Intertie Feasibility Study
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Hatch Acres
4.3 Proposed System
Include information necessary to describe the system you are intending to develop and address
potential system design, land ownership, permits, and environmental issues.
4.3.1 System Design
Provide the following information for the proposed renewable energy system:
• A description of renewable energy technology specific to project location
• Optimum installed capacity
• Anticipated capacity factor
• Anticipated annual generation
• Anticipated barriers
• Basic integration concept
• Delivery methods
Future systems will continue to be a mix of Hydroelectric (primary) and diesel electric (reserves)
generation facilities. The potential for new transmission lines to capture new resources as well as
connect stranded communities exists. This is particularly true for the Kake-Petersburg and
Metlakatla -Ketchikan Interconnections. Both of these projects are well into their planning
stages and they have received initial funding. Renewable sources such as wind and tidal
generation will be evaluated, and demand side measures that help reduce peak hour load or
reduce consumption will be evaluated. The term demand side measure may be new for some
readers so a partial list of demand side measures is shown below.
• Remote control feeder operation for interruptible loads
• Retail and Commercial Housing improvements such as insulation credits, building code
modifications, CFD lighting benefit and automated heating controls for peak hour demand
reduction
• Transmission line or distribution efficiency improvements
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.
No land ownership issues with this project.
4.3.3 Permits
Provide the following information as it may relate to permitting and how you intend to address
outstanding permit issues.
• List of applicable permits
• Anticipated permitting timeline
• Identify and discussion of potential barriers
No permits with this project. Permitting issues will be identified as part of the IRP process.
4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will
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be addressed:
• Threatened or Endangered species
• Habitat issues
• Wetlands and other protected areas
• Archaeological and historical resources
• Land development constraints
• Telecommunications interference
• Aviation considerations
• Visual, aesthetics impacts
• Identify and discuss other potential barriers
No environmental issues with this project. However, environment issues will be identified
throughout the IRP process.
4.4 Proposed New System Costs and Projected Revenues
(Total Estimated Costs and Projected Revenues)
The level of cost information provided will vary according to the phase of funding requested and
any previous work the applicant may have done on the project. Applicants must reference the
source of their cost data. For example: Applicants Records or Analysis, Industry Standards,
Consultant or Manufacturer's estimates.
4.4.1 Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of
the project. Cost information should include the following:
• Total anticipated project cost, and cost for this phase
• Requested grant funding
• Applicant matching funds -loans, capital contributions, in-kind
• Identification of other funding sources
• Projected capital cost of proposed renewable energy system
• Projected development cost of proposed renewable energy system
This application is for an Integrated Resource Plan. The total grant amount requested is $252,000
with a SEAPA match, in cash, of $60,000. SEAPA will also assign staff as Project Manager.
These costs are not included and are provided as 'in kind' services.
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.)
Not Applicable
4.4.3 Power Purchase/Sale
The power purchase/sale information should include the following:
• Identification of potential power buyer(s)/customer(s)
• Potential power purchase/sales price -at a minimum indicate a price range
• Proposed rate of return from grant-funded project
AEA 10-015 Grant Application Page 12 of 16 10/7/2009
I Renewable Energy FundALASKA
ENERGY AUTHORITY Grant Application Round 3
Not applicable to the IRP project.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
Download the form, complete it, and submit it as an attachment. Document any conditions or
sources your numbers are based on here.
A cost worksheet form has been completed to the extent applicable for a grant to issue an IRP.
Many of the items in the form, regional generation, load, sales and the appropriate development
of renewable generation will be addressed by the IRP, and cannot be stated at this time.
SECTION 5-PROJECT BENEFIT
Explain the economic and public benefits of your project. Include direct cost savings,
and how the people of Alaska will benefit from the project.
The benefits information should include the following:
• Potential annual fuel displacement (gal and $) over the lifetime of the evaluated
renewable energy project
• Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price,
RCA tariff, or cost based rate)
• Potential additional annual incentives (i.e. tax credits)
• Potential additional annual revenue streams (i.e. green tag sales or other renewable
energy subsidies or programs that might be available)
• Discuss the non-economic public benefits to Alaskans over the lifetime of the project
The existing and dominate alternative/backup generation resource in the region is diesel
generation. If hydroelectric generation is not available, all the utilities in the region generate with
diesel. This resource is costly and has obvious environmental consequences. The planned
intertie to Kake will displace their existing diesel generation with existing hydro generation.
While SEAPA believes there is surplus generation currently available at most times to meet that
load, this surplus will be exhausted in the not-too-distant future. Identifying new hydroelectric
resources (or other alternative sources) is critical if the region is to meet existing and future loads
with renewable sources of energy. The diesel fuel cost in Kake to serve their load is
approximately $650,000 annually (based on $3.50/gal). The overriding goal of the IRP is to
ensure hydro or other renewable sources of generation are identified and scheduled so that diesel
generation can be reduced to the maximum extent possible.
The resource portfolio is a set of supply-side and/or demand-side improvements that have been
approved by the public and thus a general understanding of loads, resources, and the resulting
rates is gained. Stakeholders include concerned citizen groups, commercial and industrial
customers, utility or city government officials, and representatives of state agencies. Including
non-economic measures such as environmental concerns and social benefit assures the general
public will benefit through a well-researched and documented process. The IRP reduces the
chance of stranded asset construction and provides the list of alternatives based on cost, risk, and
environmental impact.
I SECTION 6--SUSTAINABILITY
AEA 10-015 Grant Application Page 13 of 16 10/7/2009
I Renewable Energy Fund ALASKA
ENERGY AUTliORITY Grant Application Round 3
Discuss your plan for operating the completed project so that it will be sustainable.
Include at a minimum:
• Proposed business structure(s) and concepts that may be considered.
• How you propose to finance the maintenance and operations for the life of the project
• Identification of operational issues that could arise.
• A description of operational costs including on-going support for any back-up or existing
systems that may be require to continue operation
• Commitment to reporting the savings and benefits
The IRP is a process that identifies the next best renewable resource stack for the present and
planned interconnected region. SEAPA currently operates and maintains two hydroelectric plants
and over 150 miles of transmission line. SEAPA presently forward-funds its renewal &
replacement program. Additional generation resources and/or transmission lines identified as the
next best options for this region would most likely be operated and maintained in the same
manner.
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.
SEAPA has included funds for its portion of the IRP in the current fiscal year budget. We will be
ready to proceed as soon as the grant has been awarded.
No other grants have been awarded for this project. SEAPA was the recipient of a grant for the
completion of the Swan-Tyee Intertie project. The Swan-Tyee Intertie was completed ahead of
schedule and on budget.
SECTION 8-LOCAL SUPPORT
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.
No known opposition.
SECTION 9 -GRANT BUDGET
Tell us how much you want in grant funds Include any investments to date and funding sources,
how much is being requested in grant funds, and additional investments you will make as an
applicant.
Include an estimate of budget costs by milestones using the form -GrantBudget3.doc
Provide a narrative summary regarding funding sources and your financial commitment to the
project.
AEA 10-015 Grant Application Page 14 of 16 10/7/2009
I Renewable Energy Fund ALASKA
, ENERGY AUTHORITY Grant Application Round 3
Estimated consultant fees were based on a rough estimate for project scope. The IRP effort was
estimated to be significantly less than the effort expended by Northwest Utilities. The
assumption of reduced effort was based on the reduced complexity of load and generation
resources, the lack of a connected market or markets, and the lack of complex transmission
evaluations. Planning managers at Avista, Idaho Power and Seattle City Light were consulted
for broad scope discussions and feedback concerning the IRP effort. Examples of these
Northwest Utility IRP reports are stored on the SEAPA ftp site and can also be downloaded from
the utility websites.
Southeast Alaska Power Agency will commit $60,000 to the IRP effort. The project total cost is
estimated at $312,000. In addition to the cash commitment, SEAPA is volunteering staff time to
oversee and manage this project.
AEA10-015 Grant Application Page 15 of 16 10/7/2009
I , ALASKA Renewable Energy Fund
, ENERGY AlfTHORITY Grant Application Round 3
SECTION 9 -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
The undersigned certifies that this application for a renewable energy grant is truthful
and correct, and that the applicant is in compliance with, and will continue to comply
with, all federal and state laws including existing credit and federal tax obligations.
Print Name Dave Carlson
Signature It/
Title Chief Executive Officer
Date November 10, 2009
AEA10-015 Grant Application Page 16 of 16 10/7/2009
Renewable Energy Fund Round 3 " ALASKA
, ENERGY AUTHORITY I Project Cost/Benefit Worksheet
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.
11. Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability. This will be identified by the IRP process.
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
2. Existing Energy Generation and Usage
a) Basic configuration (if system is part of the Railbelt 1 grid, leave this section blank)
i. Number of generators/boilers/other 13 Hydro +/-and 20 diesel +/
ii. Rated capacity of generators/boilers/other 28.5 Diesel; 64.2 Hydro-------"--------------
iii. Generator/boilers/other type
iv. Age of generators/boilers/other Mixed. Hydro 1920's to 1980's vintage
v. Efficiency of generators/boilers/other .35% diesel, .86% hydro, fuel to wire including
transformer
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor Unknown, but in excess of $4 M (regional)
ii. Annual O&M cost for non-labor Unknown, but in excess of $10 M (regional)
c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the
Railbelt grid, leave this section blank)
i. Electricity [kWh] 229,154 MWh ---------------------------
ii. Fuel usage
Diesel [gal] Unknown at this time -will be identified by IRP
Other Unknown at this time -will be identified by IRP
iii. Peak Load Unknown but in excess of 50 MW for region
iv. Average Load Total 2006 consumption for Region -229,154 MWh
v. Minimum Load Unknown at this time -will be identified by IRP
vi. Efficiency Unknown at this time -will be identified by IRP
vii. Future trends Loads increasing due to heating oil displacement by consumers
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] Unknown at this time -will be identified by IRP
ii. Electricity [kWh] Unknown at this time -will be identified by IRP
iii. Propane [gal or MMBtu] Unknown at this time -will be identified by IRP
iv. Coal [tons or MMBtu] Unknown at this time -will be identified by IRP
v. Wood [cords, green tons, dry tons] Unknown at this time -will be identified by IRP
vi. Other Unknown at this time -will be identified by IRP
1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric
Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power.
RFA AEA10-015 Application Cost Worksheet Page 1 10-7-09
--------------------
Renewable Energy Fund Round 3 , ALASKA
ENERGY AUTHORITY I Project Cost/Benefit Worksheet
3. Proposed System Design Capacity and Fuel Usage
(Include any projections for continued use of non-renewable fuels)
a) Proposed renewable capacity Unknown at this time -will be identified by IRP
(Wind, Hydro, Biomass, other)
[kWh or MMBtu/hr]
b) Proposed Annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] Unknown at this time -will be identified by IRP
ii. Heat [MMBtu] Unknown at this time -will be identified by IRP
c) Proposed Annual fuel Usage (fill in as applicable)
i. Propane [gal or MMBtu] Unknown at this time -will be identified by IRP
ii. Coal [tons or MMBtu] N/A
iii. Wood [cords, green tons, dry tons] Unknown at this time -will be identified by IRP
iv. Other Unknown at this time -will be identified by IRP
14. Project Cost
a) Total capital cost of new system Unknown at this time -will be identified by IRP
b) Development cost Unknown at this time -will be identified by IRP
c) Annual O&M cost of new system Unknown at this time -will be identified by IRP
d) Annual fuel cost Unknown at this time -will be identified by IRP
15. Project Benefits
a) Amount of fuel displaced for
i. Electricity Unknown at this time -will be identified by IRP
ii. Heat Unknown at this time -will be identified by IRP
iii. Transportation Unknown at this time -will be identified by IRP
b) Price of displaced fuel Unknown at this time -will be identified by IRP
c) Other economic benefits
d) Amount of Alaska public benefits
16. Power Purchase/Sales Price
a) Price for power purchase/sale SEAPA's Wholesale rate to utilities is $O.068/kWh
17. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio Unknown at this time -will be identified by IRP
Payback Unknown at this time -will be identified by IRP
RFA AEA 10-015 Application Cost Worksheet Page 2 10-7-09
10-7-09 Renewable Energy Fund Grant Round III Grant Budget Form
Source of Matching
Milestone or Task Anticipated
Completion Date
RE-Fund
Grant Funds
Grantee Matching
Funds
Funds:
Cashlln-kind/Federal
Grants/Other State
TOTALS
Grants/Other
Creation of Advisory Panel 7/13/10 $ $ SEAPA Staff/PM $ 0.00
Creation of Plan Criteria 10/5/10 $ $ SEAPA Staff/PM $ 0.00
Creation of Resource Portfolio Objectives 10/5/10 $ $ SEAPA Staff/PM $ 0.00
Analysis of Existing Systems 2/4/11 $ 2,000.00 $ 20,000.00 Cash $ 22,000.00
Analysis of Future Systems 4/1/11 $ 23,000.00 $ 11,000.00 Cash $ 34,000.00
Forecast Load Growth 1/19/11 $ 48,000.00 $ 8,000.00 Cash $ 56,000.00
Forecast Inflows 9/18/10 $ 42,000.00 $ 8,000.00 Cash $ 50,000.00
Determine Reserve Criteria 8/14/10 $ $ 1,000.00 Cash $ 1,000.00
Determine Energy and Capacity Deficits 2/15/11 $ 10,000.00 $ 2,000.00 Cash $ 12,000.00
Conduct Resource Portfolio Feasibility Studies 3/26/11 $ 80,000.00 $ 3,000.00 Cash $ 83,000.00
Perform Economic Analysis 5/13/11 $ 32,000.00 $ 2,000.00 Cash $ 34,000.00
Summarize Findings, Prepare Report 6/24/11 $ 15,000.00 $ 5,000.00 Cash $ 20,000.00
TOTALS $ 252,000.00 $ 60,000.00 $ 312,000.00
Budget Categories:
Direct Labor & Benefits $ $ $ .00
Travel & Per Diem $ $ 4,000.00 $ 4,000.00
Equipment $ $ 40,000.00 $ 40,000.00
Materials & Supplies $ $ $ .00
Contractual Services $ $ 268,000.00 $ 268,000.00
Construction Services $ $ $ .00
Other $ $ $ .00
TOTALS $ $ $ 312,000.00
Applications should include a separate worksheet for each project phase (Reconnaissance, Feasibility, Design and Permitting, and Construction)
Add additional pages as needed
Renewable Energy Fund Grant Round III Grant Budget Form 10-7-09
Project Milestones that should be addressed in Budget Proposal
Reconnaissance Feasibility Design and Permitting Construction
I
1. Project scoping and ~. Project scoping and contractor 1. Project scoping and contractor 1. Confirmation that all design
contractor solicitation. solicitation. solicitation for planning and and feasibility requirements
2. Resource identification and 2. Detailed energy resource
design are complete.
analysis analysis 2. Permit applications (as 2. Completion of bid documents
3. Land use, permitting, and 3. Identification of land and
needed)
3. Contractor/vendor selection
environmental analysis regulatory issues, 3. Final environmental and award
5.
4.
5.
Preliminary design analysis
and cost
Cost of energy and market
analysis
Simple economic analysis
4. Permitting and environmental
analysis
5. Detailed analysis of existing
and future energy costs and
markets
assessment and mitigation
plans (as needed)
4. Resolution of land use, right of
way issues
5. Permit approvals
4. Construction Phases
Each project will have unique
construction phases, limitations,
and schedule constraints which
should be identified by the
grantee
6. Final report and
6. Assessment of alternatives 6. Final system design 5. Integration and testing
recommendations 7. Conceptual design analysis
and cost estimate
7. Engineers cost estimate 6. Decommissioning old
8. Updated economic and systems
8. Detailed economic and
financial analysis
financial analysis
9. Negotiated power sales
7. Final Acceptance,
Commissioning and Start-up
9, Conceptual business and
operations plans
agreements with approved
rates 8. Operations Reporting
10. Final report and 10. Final business and operational
recommendations plan
-----------
RESOLUTION NO 2008-021
OF THE FOUR DAM POOL POWER AGENCY
RESOLUTION APPROVING THE RENEWABLE ENERGY GRANT APPLICATION
FOR AN INTEGRATED RESOURCE PLAN
WHEREAS, The Four Dam Pool Power Agency is a Joint Action Agency organized
pursuant to State Statute; and
WHEREAS, The Four Dam Pool Power Agency is undergoing Restructuring whereby
the Terror Lake and Solomon Gulch hydroelectric projects will be sold or transferred to
Kodiak Electric Association and Copper Valley Electric Association, respectively; and
WHEREAS, the restructured Joint Action Agency will continue to own the Tyee Lake and
Swan Lake projects in Southeast Alaska which provides renewable hydroelectric power
to Ketchikan, Wrangell and Petersburg; and
WHEREAS, the name of the Agency will be changed to the Southeast Alaska Power
Agency at closing which is expected to take place in January, 2009; and
WHEREAS, the Swan-Tyee Intertie is under construction with an expected completion
date of December, 2009; and
WHEREAS, in anticipation of the completion of the Swan-Tyee Intertie, the Four Dam
Pool Power Agency has been developing an operating plan for the interconnected Swan
Lake and Tyee Lake projects; and
WHEREAS, the Four Dam Pool Power Agency recognizes that additional hydroelectric
resources will be needed in the future to meet loads in Petersburg, Wrangell and
Ketchikan as well as other loads served over planned transmission lines inclUding the
Kake-Petersburg Intertie project; and
WHEREAS, the Four Dam Pool Power Agency recognizes the need for Integrated
Resource Planning; and
WHEREAS, the Four Dam Pool Power Agency is in compliance with all federal, state,
and local laws including credit and federal tax obligations; now therefore,
BE IT RESOLVED, the Four Dam Pool Power Agency Board of Directors approves the
application for project funding in the amount of $300,000 of which the Four Dam Pool will
provide a 20% match ($60,000); and
BE IT RESOLVED, the Four Dam Pool Power Agency Board of Directors authorizes
Dave Carlson, Chief Executive Officer, as the point of contact to represent the applicant
for purposes of this application.
Approved and signed this day of November, 2008.
BY: Attest:~~
Bob Weinstein, Chairman Robert Wilkinson, SecretarylTreasurer
~.!J V- 0 -:-20 a8 04: 19 PM err Y. HAL L 907 225 5075 P,Ol/01
RESOLUTION NO 2008-021
OF THE FOUR DAM POOL POWER AGENCY
RESOLUTION APPROVING THE RENEWABLE ENERGY GRANT APPLICATION
FOR AN INTEGRATED RESOURCE PLAN
WHEREAS, rhe Four Dam Pool Power Agency Is a Joint Action Agency organized
pursuant to State Statute: and
WHEREAS, rhe Four Dam Pool Power Agency is undergoing Restructuring Whereby
the Terror Lake and Solomon Gulch hydroelectric projects will be sold or transferred to
Kodiak Electric Association and Copper Valley Electric Association, respectively; and
WHEREAS, the restructured Joint Action Agency will continue to own the Tyee Lake and
Swan Lake projects in Southeast Alaska which provides renewable hydroelectric power
to Ketchikan, Wrangell and Petersburg; and
WHEREAS, the name of the Agency will be changed to the Southeast Alaska Power
Agency at closing which is expected to take place in January, 2009: and
WHEREAS, the Swan-Tyee Intertle Is under construction with an expected completion
date of December, 2009; and
WHEREAS, in anticipation of the completion of the Swan-Tyee tntertie, the Four Dam
Pool Power Agency has been developing an operating plan for the interconnected Swan
Lake and Tyee Lako projects; and
WHEREAS, the Four Dam Pool Power Agency recognizes that additional hydroelectric
resources will be needed In the future to meet loads in Petersburg, Wrangell and
Ketchikan as well <'IS other loads served over planned transmission lines including the
Kake-Petersburg Intertie project; and
WHEREAS, the Four Dam Pool Power Agency recognizes the need for Integrated
Resource Planning; and
WHEREAS, the four Dam Pool Power Agency 15 in compliance with all federal, state,
and local laws inclucilng credit and federal tax obligations; now therefore,
BE IT RESOLVEU, the Four Dam Pool Power Agency Board 01 Directors approves the
application for project funding In the amount of $300.000 of which the Four Dam Pool will
provide a 20% match ($60,000); and
BE IT RESOLVE D, the Four Dam Pool Power Agency Board of Directors authorizes
Dave Carlson, Chief Executive Officer, as the point of contact to represent the applicant
for purposes of this application.
Approved and signod this 7~+4_day of November, 2008.
IA 11-tf;1Mj}A.V~.rBY: Attest:B~in, Chairman Robert Wilkinson, SecretaryfTreasurer
R?r.~ii!Ft : i(~