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HomeMy WebLinkAboutSunrise Lake Project Grant Application Renewable Energy Fund Round 3 Grant Application AEA 10-015 Application Page 1 of 13 10/7/2009 Application Forms and Instructions The following forms and instructions are provided to assist you in preparing your application for a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA) and the forms are available online at: http://www.akenergyauthority.org/RE_Fund-III.html Grant Application Form 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. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 2 of 13 10/7/2009 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) City and Borough of Wrangell Type of Entity: Local Municipal Government Mailing Address City & Borough of Wrangell P.O. Box 531 Wrangell, Alaska 99929 Physical Address City and Borough of Wrangell 205 Brueger Street Wrangell, Alaska 99929 Telephone (907) 874-2381 Fax (907) 874-8952 Email tdrooney@wrangell.com 1.1 APPLICANT POINT OF CONTACT Name Steven Henson Title Electrical Superintendent Mailing Address Wrangell Municipal Light & Power P.O. Box 531 Wrangell, Alaska 99929 Telephone (907) 874-3602 Fax (907) 874-3614 Email linedept@gci.net 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer in accordance with 3 AAC 107.695 (a) (1), or X A local government, or A governmental entity (which includes tribal councils and housing authorities); Yes 1.2.2. Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate Yes or No in the box ) Yes 1.2.3. As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. Yes 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) Yes 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 3 of 13 10/7/2009 SECTION 2 – PROJECT SUMMARY This is intended to be no more than a 1-2 page overview of your project. 2.1 Project Title – (Provide a 4 to 5 word title for your project) Sunrise Lake Project 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. Sunrise Lake, a 70 acre 100 foot deep perched lake, on Woronkofski Island, an uninhabited island approximately five miles from the Wrangell community 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind Biomass or Biofuels X Hydro, including run of river X Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas Heat Recovery from existing sources Hydrokinetic Solar Storage of Renewable Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) X Reconnaissance Design and Permitting X Feasibility Construction and Commissioning Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. The City and Borough of Wrangell would like to develop an alternative source for both power and water. Every summer the Tyee Hydroelectric Facility, which supplies power to Wrangell, shuts down for annual maintenance and the City uses diesel generators for power. Additionally the City’s reservoir has periodically run very low, critically endangering Wrangell’s water supply. Sunrise Lake is an economically feasible source to provide both to Wrangell. In 1997, The Bentley Company performed a reconnaissance study to determine the feasibility of developing hydroelectric power at Sunrise Lake. The Sunrise Lake Project can be easily interfaced into the Tyee Transmission Line, thus supply power to the City of Wrangell. This power can be used as a back-up when Tyee shuts down as well as in the event of catastrophic failure, similar to the one experienced in Juneau in the summer of 2008. By utilizing the outflow from the Sunrise Hydroelectric project’s turbines the City would have an additional water source to access when the reservoir drops below critical levels again. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 4 of 13 10/7/2009 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.)  During the annual Tyee Hydroelectric facility shutdown the City produces power using diesel generators with a fuel cost of over $120,000.00 for and eleven day period (based on the 2009 diesel fuel cost of $2.27 per gallon). The fuel cost is pasted to the electric customers via a fuel surcharge. In 2009 the surcharge was an additional $0.042 per kilowatt for customer’s electric usage during the month of June. In 2008 the City paid over $4.20 per gallon for diesel and the surcharge was $0.086 per kilowatt. The Sunrise Lake project would benefit the entire community by eliminating this expense. Sunrise Lake hydroelectricity would provide Wrangell with an alternative to diesel power in the event of sudden unexpected failure in the Tyee transmission line or facility. Additionally Wrangell could utilize the outflow from the project’s turbines as an additional water source to access when the reservoir drops below critical levels. 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. Grant funding requested is $90,000.00 to update the 1997 Bentley Company reconnaissance and feasibility study. 2.7 COST AND BENEFIT SUMARY Include a summary of grant request and your project’s total costs and benefits below. Grant Costs (Summary of funds requested) 2.7.1 Grant Funds Requested in this application. $90,000.00 2.7.2 Other Funds to be provided (Project match) $0 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $90,000.00 Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.4 Total Project Cost (Summary from Cost Worksheet including estimates through construction) $4,637,616.00 2.7.5 Estimated Direct Financial Benefit (Savings) $120,000.00 (annually) 2.7.6 Other Public Benefit (If you can calculate the benefit in terms of dollars please provide that number here and explain how you calculated that number in your application (Section 5.) $ 0 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 5 of 13 10/7/2009 SECTION 3 – PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include a resume and references for the manager(s). If the applicant does not have a project manager indicate how you intend to solicit project management support. If the applicant expects project management assistance from AEA or another government entity, state that in this section. Upon receiving funding for this project, the City will initially issue a request for proposal (RFP) for performing project management services. 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 proposed schedule for this phase is as follows Description Schedule Phase 1-Issue/award RFP 30 days from grant award Phase 2-Reconnicance 2 years from RFP Award* Phase 3-Fesiality 2 years 4 months *Updated water data will need to be collected over a 2 year period 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.) Key project milestones for this project include the following: Time frame Project Milestone 1st quarter 2010 Issue/Award RFP for project study 2010-2011 Resource analysis (stream gauging) Summer 2011 Final report and recommendations The project will start when the grant is awarded and this phase will be completed by the summer of 2011 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 6 of 13 10/7/2009 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. City and Borough of Wrangell charter dictates that all projects must go through a formal request for proposal (RFP) or bid process for award. For this project, we anticipate issuing a RFP for updating the reconnaissance/feasibility/and conceptual design. Until the successful consultant is chosen, the key personnel for this project are unknown 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Throughout the life of the project, the Project Manager will provide written and monthly updates to AEA which will include at a minimum: - Expenditures to date; - Percent complete; and - Narrative on progress including any scheduled changes. In addition to the monthly progress reports, communications on project status will also be provided verbally with the AEA Project Manager on an informal basis through emails and phone conversations. 3.6 Project Risk Discuss potential problems and how you would address them. There is little to no potential risk associated with this project. The standard project risk of the possibility of cost overruns is mitigated on this project by providing a 20% contingency cost in our projected project cost. Cost overruns will also be mitigated by effectively managing the project. 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. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 7 of 13 10/7/2009 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 anticipated total annual production of the Sunrise Lake Hydroelectric facility is estimated to be 11,600,000 KWH. The kW production ranges from 400 kW to 1,800 kW depending upon the time of year and rainfall. There are no other economically feasible alternatives for this project. Sunrise Lake is the most feasible lake for this project due to its location, lack of fish, and flow rate calculations for Sunrise Creek. Additionally, the Sunrise Lake Project can be interfaced easily into the Tyee Transmission Line, thus allowing the potential of supplying power to the City and Borough of Wrangell. This power can be used to offset power from the Tyee Lake Hydroelectric Project and from diesel generators, thus improving the reliability of the power system. Another benefit of this project is the in‐kind benefit of providing water to the Wrangell population. If the hydroelectric project is not performed, the water line project will not be economically feasible and Wrangell is in dire need of additional sources of water. One disadvantage of this project is that it will not produce electricity on a year‐round basis. This is not an issue due to the Sunrise Lake Hydroelectric project being utilized as a backup energy producer to the Tyee Hydroelectric facilities. 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 Tyee Hydroelectric facility was put into operation in 1984. Tyee produces 20 MW of electricity and is highly efficient. This project will tie into the Tyee Transmission system. Wrangell currently has 4 diesel generators that are approximately 40 years old. During the annual maintenance for Tyee, Wrangell uses over 46,000 gallons of diesel. 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. Currently Wrangell uses hydropower supplied from the Tyee Lake Hydroelectric Facility. When Tyee shuts down for annual maintenance Wrangell uses diesel generators for power. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 8 of 13 10/7/2009 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The following is a breakdown of the existing energy market for WMLP: Client 2008 Usage in kwh 2009 Usage in kwh (9 months) Residential 9,632,753 8,094,217 Residential Heat Rate 1,180,819 1,239,389 Small Commercial 5,637,676 4,095,945 Small Commercial Heat Rate 439,420 802,794 Large Commercial 3,128,480 2,552,339 Commercial 8 cent incentive 441,160 480,000 Industrial 52,150 36,690 City Usage 3,281,595 2,444,036 Light Dept. Usage 630,921 525,528 Total 24,424,974 20,270,938 This project will directly impact the citizens of Wrangell by eliminating the fuel surcharge assessed on rate payers during periods of diesel generation during shutdowns and extended outages. 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 The renewable energy technology used for this project is hydroelectric. The optimum installed capacity is a plant peak generation capacity of 1,900 kW and an annual average output of over 1,300 kW with total annual energy of 11,600,000 kwh. This will be produced by the installation of a 2,000 kW turbine, operating at 1,750 feet of gross head and a maximum flow of 15 cfs. The anticipated barriers to this project include the fact that there are times of the year where the lake is frozen and hydroelectric energy cannot be produced. The basic integration concept of this project is to interface into the Tyee Transmission Line and the delivery method of the power will be through the existing infrastructure. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 9 of 13 10/7/2009 4.3.2 Land Ownership Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend to approach land ownership and access issues. The land is owned by the U.S. Forest Service (USFS) and this project will be subject to land use permits issued by the USFS. This project will also necessitate negotiating with the Southeast Alaska Power Agency (SEAPA) for the connection to their transmission line. 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 City and Borough of Wrangell currently has a permit with the U.S. Department of Agriculture for the stream gauging required for this stage of the project. 4.3.4 Environmental Address whether the following environmental and land use issues apply, and if so how they will be addressed: • Threatened or Endangered species • Habitat issues • 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 The only possible environmental issues include the possibility of wetland issues, forest service land development constraints, and telecommunication interference (microwave). 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 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 10 of 13 10/7/2009 Total Anticipated Project Cost: The total anticipated cost of the complete project is $4,637,616. Requested Grant Funding: $90,000.00. 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.) In 1997, the operations and maintenance costs were estimated by The Bentley Company to be approximately $88,000 annually. In 2007 dollars, the operating and maintenance costs are anticipated to be approximately $130,240 annually. The operations and maintenance costs will be funded from the revenues generated by the project. 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 The potential power buyer(s)/customers include members of the City and Borough of Wrangell. The City buys power at $.068 cents and charges $.08 ‐ $.126 cents. The proposed rate of return from this grant‐funded project is 20 years. 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. See Attachment B Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 11 of 13 10/7/2009 SECTION 5– PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following: • 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 non‐economic public benefits to Alaskans because of this project include a decrease in the cost of government for the City. This may make it possible for the City to enhance public facilities and programs that will benefit members of the community. The public benefit would be to eliminate the fuel surcharge that is assessed to Wrangell residents when diesel generated power is used. SECTION 6– SUSTAINABILITY Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum: • Proposed business structure(s) and concepts that may be considered. • How you propose to finance the maintenance and operations for the life of the project • Identification of operational issues that could arise. • A description of operational costs including on-going support for any back-up or existing systems that may be require to continue operation • Commitment to reporting the savings and benefits This grant request is for feasibility and reconnaissance update to assess the viability of the project SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS Discuss what you have done to prepare for this award and how quickly you intend to proceed with work once your grant is approved. Tell us what you may have already accomplished on the project to date and identify other grants that may have been previously awarded for this project and the degree you have been able to meet the requirements of previous grants. The City and Borough of Wrangell originally paid $30,000.00 in 1997 to the Bentley Company for a reconnaissance and feasibility study. Wrangell has since kept the USDS special use permit current for future studies in effort to keep this project active. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 12 of 13 10/7/2009 SECTION 8– LOCAL SUPORT Discuss what local support or possible opposition there may be regarding your project. Include letters of support from the community that would benefit from this project. See Attachment A 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 The total cost of this project is $4,637,616. The City is requesting 90,000.00 for funding an updated reconnaissance and feasibility study. The investment in this project made by the City to date includes a Reconnaissance Level Study which was performed by The Bentley Company at a cost of $30,000. The City paid for this study. The City is committed to this project due to its benefits to the community of Wrangell and the need for the project to commence so the outflow of water from the turbine can be utilized to provide additional water to the City’s reservoirs. Additional investments the City will make as an applicant is $2,500,000 for the water phase of this project. See Attachment C – Grant Budget Worksheet I Renewable Energy Fund ALASKA ENERGY AUTHORITY 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. CERTIFICAT ON 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 Tim Rooney ~v\t"+(~-Y1)-~cxn\..V-VSignature Title Borough Man~er U 11-'1 -c-,DCfDate AEA 10-015 Grant Application Page 11 of 11 10/7/2009   Renewable Energy Fund Round 3 Project Cost/Benefit Worksheet   RFA AEA10-015 Application Cost Worksheet Page 1 10-7-09 Please note that some fields might not be applicable for all technologies or all project phases. The level of information detail varies according to phase requirements. 1. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. 100% Hydropower 11,660 MWH 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 4 ii. Rated capacity of generators/boilers/other 8.5 MW iii. Generator/boilers/other type 1 EMD 20, 3 EMD 16 iv. Age of generators/boilers/other 40-44 years old v. Efficiency of generators/boilers/other .8 Power Factor b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor ii. Annual O&M cost for non-labor 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] 566,980 ii. Fuel usage Diesel [gal] 46,303 Other iii. Peak Load 3.5 MW iv. Average Load 2.2 MW v. Minimum Load vi. Efficiency vii. Future trends 1% to 2% annual load growth d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other                                                              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.      Renewable Energy Fund Round 3 Project Cost/Benefit Worksheet   RFA AEA10-015 Application Cost Worksheet Page 2 10-7-09 3. Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity (Wind, Hydro, Biomass, other) [kWh or MMBtu/hr] 2 MW (Hydro) b) Proposed Annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 11,600,000 kWh ii. Heat [MMBtu] c) Proposed Annual fuel Usage (fill in as applicable) i. Propane [gal or MMBtu] ii. Coal [tons or MMBtu] iii. Wood [cords, green tons, dry tons] iv. Other 4. Project Cost a) Total capital cost of new system $4,637,616.00 b) Development cost c) Annual O&M cost of new system d) Annual fuel cost 5. Project Benefits a) Amount of fuel displaced for i. Electricity 46,303 gallons diesel ii. Heat iii. Transportation b) Price of displaced fuel 2.27 per gallon (2009) c) Other economic benefits d) Amount of Alaska public benefits 6. Power Purchase/Sales Price a) Price for power purchase/sale $.068 purchase 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Payback 20 years Renewable Energy Fund Grant Round III Grant Budget Form 10-7-09 Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In-kind/Federal Grants/Other State Grants/Other TOTALS Project Scoping and Contractor Solicitation 30 days from grant award $ $ $ Resource analysis 1st quarter 2011 $90,000.00 $ $90,000.00 Final Report and recommendations Summer 2011 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $90,000.00 $90,000.00 Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $90,000.00 $ $90,000.00 Construction Services $ $ $ Other $ $ $ TOTALS $90,000.00 $ $90,000.00 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 1. Project scoping and contractor solicitation. 2. Resource identification and analysis 3. Land use, permitting, and environmental analysis 5. Preliminary design analysis and cost 4. Cost of energy and market analysis 5. Simple economic analysis 6. Final report and recommendations 1. Project scoping and contractor solicitation. 2. Detailed energy resource analysis 3. Identification of land and regulatory issues, 4. Permitting and environmental analysis 5. Detailed analysis of existing and future energy costs and markets 6. Assessment of alternatives 7. Conceptual design analysis and cost estimate 8. Detailed economic and financial analysis 9, Conceptual business and operations plans 10. Final report and recommendations 1. Project scoping and contractor solicitation for planning and design 2. Permit applications (as needed) 3. Final environmental assessment and mitigation plans (as needed) 4. Resolution of land use, right of way issues 5. Permit approvals 6. Final system design 7. Engineers cost estimate 8. Updated economic and financial analysis 9. Negotiated power sales agreements with approved rates 10. Final business and operational plan 1. Confirmation that all design and feasibility requirements are complete. 2. Completion of bid documents 3. Contractor/vendor selection and award 4. Construction Phases – Each project will have unique construction phases, limitations, and schedule constraints which should be identified by the grantee 5. Integration and testing 6. Decommissioning old systems 7. Final Acceptance, Commissioning and Start-up 8. Operations Reporting