HomeMy WebLinkAboutAlaska British Columbia Intertie Project App
Renewable Energy Fund Round 3
Grant Application
AEA 10-015 Application Page 1 of 16 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 16 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
PO 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
PO 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
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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)
Alaska to British Columbia (AK‐BC) Intertie 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.
The transmission line would extend from the Tyee Lake Hydro facility to the British Columbia
border via the north fork of the Bradfield River. Initially Wrangell, Petersburg and Ketchikan
communities will benefit from this project. As the Southeast Intertie develops, more
communities would benefit from the export or import of renewable energy
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)
Reconnaissance X Design and Permitting
Feasibility Construction and Commissioning
Conceptual Design
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Grant Application Round 3
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2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
The AK‐BC Intertie would provide a further opportunity to secure the energy future for Southeast
Alaska. The AK‐BC Intertie is a 26.5 mile transmission line from the existing Tyee Lake Project to the
AK‐BC border.
A feasibility study was conducted by Hatch Energy in 2005. This phase of the project would continue
the project from the feasibility stage into the permitting engineering phase. The purpose of this
project is to export surplus power for sale in British Columbia/Pacific Northwest which would
encourage development of new projects and provide additional reliability benefits. The ability to
export power would encourage early development of new hydro generation, as well as provide
revenue from exports, which will help ensure future maintenance of the current overall status of a
clean hydro‐powered region, offer operating flexibility for the southeast Alaska power system, and
provide future benefits to the region under the proposed marketing oversight proposal. Power sales
agreement for power generated projects encouraged by the AK‐BC Intertie could be structured to
return payment to the state.
Power sales agreements could be structured to include a call‐back provision when load in southeast
Alaska grows and power is needed to serve the native load. The proposed AK‐BC Intertie would
extend from Tyee Lake along the Bradfield river to the AK‐BC border and along the Craig River to a
proposed substation at Forrest Kerr in British Columbia.
The export of energy through the AK‐BC Intertie will enable the completion of interties throughout
Southeast Alaska. Energy export could lead to the development of a number of hydro‐electric projects
in many locations in Southeast Alaska meeting domestic power needs and providing a surplus for
export. The goal is to provide the energy needed for economic development in Southeast Alaska
resulting in jobs for Alaskans and providing reliable, less costly alternatives to diesel generated energy
for Alaskan communities.
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.)
The benefits of this project include the following:
• Provide a further opportunity to secure the energy future for Southeast Alaska.
• Improved continuity of service to customers due to redistribution of power flows following a
contingency or during a planned maintenance outage.
• Improved frequency stability as a result of the increased inertia of the combined power
system.
• Improved voltage stability as a result of higher short circuit capability.
• Trade opportunities.
• The regulatory process to approve the proposed AK‐BC Intertie segment within southeast
Alaska is well defined and no fatal flaws were identified.
Renewable Energy Fund
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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 feasibility study conducted in 2005 estimates the cost of the permitting and engineering to be
$5,033,414.
There have been two feasibility studies performed, one by Hatch Energy in 2005 and one by D. Hittle
and Associates in 2006.
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. $5,033,414
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) $5,033,414
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)
$31,000,000
2.7.5 Estimated Direct Financial Benefit (Savings) $-0-
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-
(Unable to estimate)
By being able to sell excess energy produced by the hydroelectric infrastructure in Southeast Alaska to
British Columbia and/or the Pacific Northwest, the residents of Southeast Alaska will have their energy
costs subsidized by the profits from this sale of energy.
Renewable Energy Fund
Grant Application Round 3
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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.
Upon receiving funding for this project, the City will initially issue a request for proposal (RFP) for
project management services, permitting and engineering design.
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 of the project is as follows:
Description Schedule
Phase 1 ‐ Permitting 7/1/2010 ‐ 7/1/2011
Phase 2 – Engineering Design 7/1/2010 ‐ 7/1/2011
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:
Date
Project
Date Project Milestone
2010 3rd Quarter Issue Request for Proposal for project management, permitting and
engineering design.
2010 Select consultant for project management, permitting and
engineering design.
2010 4th Quarter
Begin permitting and engineering process.
2011 4th Quarter
Permitting and final design completed.
Milestone
The project will start on approximately July 1, 2010 and the permitting and engineering phase will be
completed by December 31, 2011.
Renewable Energy Fund
Grant Application Round 3
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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 or bid process for award. For this project, we anticipate issuing an RFP for project
management, permitting and engineering design.
The anticipated consultant to perform this project is unknown at this time.
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 monthly updates to AEA
which will include at a minimum:
• Expenditures to date;
• Percent complete; and
• Narrative on progress including any schedule changes.
In addition to the monthly progress reports, communication on project status will also be provided
verbally with the AEA Project/Program Manager on an informal basis through emails and phone
conversations.
3.6 Project Risk
Discuss potential problems and how you would address them.
The largest risk anticipated for this project is the risk that the British Columbian government does not
build their portion of the transmission line.
The standard project risk of the possibility of cost overruns is mitigated on this project by providing a
30% contingency cost in our projected project cost. Cost overruns will also be mitigated by effectively
managing the project.
Other risks include physical risk of land or snow slides destroying the line once constructed.
Renewable Energy Fund
Grant Application Round 3
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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 amount of energy resource that is available is potentially 100MW of excess energy that could be
developed for export.
Since this is a transmission line, this is not an energy source.
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.
There are three high voltage transmission lines in the project area. One high voltage transmission line
(115 kV) connects the output of the Swan Lake hydroelectric plant to the Ketchikan load center at the
Bailey Substation. The second is a 115 kV transmission line connecting the Swan Lake and Tyee Lake
Hydro Projects. The third high voltage transmission line is used to supply the communities of Wrangell
and Petersburg with electricity generated at the Tyee Lake Hydroelectric plant. This line is presently
operated at 69 kV. However, the transmission line was designed and built with a capability of operating
at 138 kV. 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.
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.
The Tyee Hydroelectric facility is underutilized at this time and this project would have the impact of
being able to utilize and sell the excess energy. The impact on the existing infrastructure would be an
improvement by fully utilizing the system.
The total hydro capability in southeast Alaska amounts to 70.7 MW with 39.7 MW in the Swan Region,
24.5 MW in the Tyee Region and 6.5 MW in the Prince of Wales Region.
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4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
The total hydro capability in southeast Alaska amounts to 70.7 MW with 39.7 MW in the Swan Region,
24.5 MW in the Tyee Region and 6.5 MW in the Prince of Wales Region.
The impact to energy customers could be the possibility of reduced energy costs created by selling
excess hydroelectric generated power to the province of British Columbia and/or customers in the Pacific
Northwest.
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 technology which will be used for this project is hydroelectric power.
The optimum installed capacity is 100 MW.
The main barrier to this project is the BC government constructing a new 287 kV transmission segment
that will extend the existing BCTC transmission system north from Skeena to a proposed substation at
Bob Quinn, the proposed Northwest Transmission Line (NTL). This is a 30‐mile segment in BC from the
border to Forrest Kerr.
The integration of this transmission line would be with the existing Tyee transmission system and the
delivery method for the hydroelectric power is through the new transmission line which this project
will design and permit.
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 AK‐BC Intertie would be constructed on lands within the Tongass National Forest managed by the
US Forest Service (USFS) thereby requiring federal approval to site, construct, and operate the
proposed facilities.
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Grant Application Round 3
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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
The following is a list of permits which will be required for this project:
• National Environmental Policy Act (NEPA) Environmental Assessment (EA)/Environmental Impact
Statement (EIS)
• Presidential Permit from the US Department of Energy (USDOE)
• Export Authorization for USDOE
• National Energy Board Permit from the Canadian National Energy Board
• Special Use Authorization from the US Forest Service (USFS)
• Annual Charge to Occupy US Lands from USFS
• Clean Water Act (CWA) Section 404 Permit – Dredge and fill nationwide permit from the Corps of
Engineers (COE)
• CWA NPDES Permit – COE/Environmental Protection Agency (EPA)
• CWA Section 401 Certificate of Reasonable Assurance to Comply with State Water Quality
Standards from Alaska Department of Environmental Conservation (ADEC)
• Coastal Zone Management Act (CZMA)/Alaska Coastal Management Plan (ACMP) – Coastal
Project Questionnaire and Certification Statement from the Office of Project Management and
Permitting in the Alaska Department of Natural Resources (ADNR)
• Endangered Species Act (ESA) Biological Assessment from the Fish and Wildlife Service and/or
National Marine Fisheries Service
• Historic Properties Management Plan from USFS and State Historical Preservation Office (SHPO)
• State permits to construct in and/or cross streams from Alaska Department of Fish and Game
(ADFG)
• Fish and Wildlife Protection Plans for Fish and Wildlife Service (FWS) and/or National Marine
Fisheries Service (NMFS) or Alaska Department of Fish And Game (ADF&G) and/or ADNR
The anticipated permitting timeline is 18 to 24 months after receiving funding for this stage of the
project.
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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 project will need to comply with the National Environmental Policy Act (NEPA) process. The NEPA
process is used to identify and assess the environmental effects associated with a proposed project;
identify reasonable alternative to proposed actions; and develop practical means to avoid or minimize any
possible adverse effects of their actions upon the quality of the human environment. The NEPA process
will evaluate the effect the project will have on threatened or endangered species, habitat issues, wetlands
and other protected areas, and archaeological and historical resources.
Since the project is on USFS land, the only land development constraint is the USFS authorizing the use of
the land for this project.
There is no telecommunication interference from the development of this project.
There are no aviation considerations.
There are no visual or aesthetics impacts due to the remote location of the proposed intertie transmission
line.
There are no other known potential barriers to the project at this time.
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 12 of 16 10/7/2009
Total Anticipated Project Cost: The total anticipated cost of the permitting and engineering is $5,033,044.
Requested Grant Funding: The total requested grant funding is $5,033,044.
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.)
Operations and maintenance costs for the Tyee to BC Border is anticipated to be $360,000 (2006 dollars)
annually.
Operations and maintenance is not part of this phase of the project so no grant funding is requested.
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)/customer(s) include residents/governments of the province of British
Columbia and the Pacific Northwest.
In the AK‐BC Intertie Feasibility Study, studies were performed to determine the sensitivity of the
generation sequences for the export cases to variations of export price, capital cost of plants for export and
numbers of years for capital cost repayment. The results indicate that for a 20 years capital repayment
period and an export price of 60 $/MW, increases in capital cost of the plants built for export would result
in negative benefits. However, for export prices of 70 and 80 $/MWh the benefits of export would remain
positive for the range of capital cost increases examined.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered in
evaluating the project.
The cost worksheet is provided as Attachment B.
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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
Benefits of the AK‐BC Intertie include the following:
• The AK‐BC Intertie would provide a further opportunity to secure the energy future for Southeast
Alaska.
• Based upon the AK‐BC Intertie Feasibility Study, the technical feasibility and market potential of the
proposed future hydro facilities and related transmission features look promising.
• The regulatory process to approve the proposed AK‐BC Intertie segment within Southeast Alaska is
well defined and no fatal flaws were identified.
• Reduction of current levels of GHG from diesel generation.
• More conversions from oil to electric heat and resulting economic and GHG reduction benefits.
• Gains in energy through coordinated operation of hydro plants.
• Assistance during maintenance outages.
• Multiplier effects of increased economic development and increased disposable income resulting
from lower energy prices for Alaskans.
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
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The 2007 AK‐BC Intertie Feasibility Study proposes a three‐part business structure to manage a future
interconnected transmission system within Southeast Alaska and expand to the export market where
further clarification regarding the interests of British Columbia to interconnect and determination of
feasibility regarding cost of power for new generation are confirmed. The following is an overview of the
three proposed business structures from the AK‐BC Intertie Feasibility Study:
• Transmission Cooperative (TC) – The TC would own and operate the proposed AK‐BC Intertie. This
system is similar to the organizational structure adopted by the Kwaan Electric Transmission
Intertie Cooperative which was formed by Alaska Electric Light & Power (AEL&P) and the Inside
Passage Cooperative, Inc. (IPEC)
• Unified System Operator (USO) – The USO business structure would enable the creation of an
umbrella organization comprised of electric utilities and producers, and by coordinating resources
of participating utilities, and be in a position to undertake the financial obligation of constructing
new and upgrading existing facilities. This is an important consideration as the state‐funded
transmission elements that provide a “kick‐start” to the concept of an interconnected Southeast
Alaska with the provision for export via the proposed AK‐BC Intertie. A USO would accommodate
future ownership of the AK‐BC Intertie by a TC and include segments currently owned by other
members. For example, the lines owned and operated by the Four Dam Pool Power Agency
(FDPPA) and other transmission segment owners in an overall system operate without requiring
divesture by the current owners.
• Power Marketing Oversight Unit – This structure would provide power marketing oversight to
assist the private sector with making 50‐year plus life projects financially viable in the first 15‐20
years when debt payments are heavy and manage sales of Alaskan‐generated power for export to
markets outside the state.
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 AK‐BC Intertie has been and will continue to be a priority for the City and Borough of Wrangell.
Community Officials and City/Borough Employees have worked for many years with the Alaska Energy
Authority developing this project. No other grants have been awarded to Wrangell for this project.
If this grant is approved the City and Borough of Wrangell will immediately release an RFP for
Management. Permitting and Engineering Design for this project.
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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.
This project has been discussed at great length by the City and Borough Assembly on numerous occasions
over the past 10 years.
To date there is no known opposition to the project other than the timing aspect with reference to British
Columbia’s completion of the NTL.
Additionally there is support from Grand Camp Alaska Native Brotherhood to complete this project.
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
See Attachment C – Grant Budget worksheet
Total Anticipated Project Cost: The total anticipated cost of the permitting and engineering is
$5,033,044.
Requested Grant Funding: The total requested grant funding is $5,033,044. This amount is from the
Hatch Acres Study of 2005.
I Renewable Energy Fund
I 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. r
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 Jeff Jabusch
Signatur\
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Title
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Acting Borough Manager
Date 1/-0--0;
AEA 10-015 Grant Application Page16of16 10/7/2009
qrandCamp
Jl{ask,st Native Brotherhood.
RESOLUTION #33-09
Title:Support for Native participation in building,constructing and
management of Energy Infrastructure in Southeast Alaska.
WHEREAS,Grand Camp has supported many energy projects in the past and
continues to do so;and
WHEREAS,the cost of energy and the cost of fuels has continued to increase and
Continues to be a burden our communities and membership and their businesses;
and
WHEREAS,despite these millions of dollars of public investments,many of our
Southeast Alaskan Native communities remain isolated when alternatives such as
line extensions can connect these communities to existing low cost utilities;
WHEREAS,protectionist practices including maintaining unfair status quo by the
Regulatory Commission of Alaska with respect to generating and transmitting
utility districts disproportionately impacts predominately Alaska Native
communities;
WHEREAS,to bring meaningful change to our region we need a systemic fix
through a Regional Transmission Organization (RTO),and that development of a
community-run R TO will facilitate an electrical intertie between our communities
and their energy sources and very possibly the North American power grid;and
WHEREAS,the Federal and State government have subsidized and awarded
hundreds of millions of dollars to urban and predominately non-Native
communities to develop hydropower and transmission lines here in Southeast
Alaska;and
WHEREAS,despite these millions of dollars of public investments,many of our
Southeast Alaskan Native communities are on diesel generation and high
administrative and overhead costs associated with diesel generation;and
WHEREAS,we have Native village corporations and Native communities such as
Haida Corporation,Kake Tribal Corporation,Kootznoowoo Incorporated and the
City of Angoon filing federal permits,and making investments and partnerships in
renewable energy development and operations;and
WHEREAS,Native entities should own and control Southeast Alaska renewable
energy resources where possible and support the needed public investments in
transmission line extensions to connect our communities;and
WHEREAS,as a result of this situation many of these entrepreneurial Native
village corporations and in some cases desperate communities deserve full political
and financial support and encouragement from all tribal entities,ANCSA
corporations and Native non-profit agencies for their leadership and investments to
help themselves to lead and assist our communities toward renewable energy
development and alternative fuels in order to lower energy costs for our people,to
help end outmigration from their communities,to create renewable energy jobs and
to preserve the economic livelihood that is impacting our diesel disadvantaged
communities;and
NOW THEREFORE BE IT RESOLVED,that the Grand Camp supports,the
AK-BC energy transmission line near Wrangell;Reynolds Creek project for Haida
Corporation and Hydaburg,Kootznoowoo Incorporated's Thayer Creek which will
generate power for the City of Angoon;The City of Angoon's preliminary permits
and license applications for Scenery Lake and Ruth Lake for the benefit of all
communities which are and will be grid connected to the Swann Tyee grid;
Cascade Creek project for Kake Tribal Corporation;because,all of these projects
will help reduce the cost of power to our rural Native communities;and
BE IT FURTHER RESOLVED,that the federal and state government should
immediately complete the authorized Southeast Intertie using less costly routes
which have been described by the Central Council in their February 2009 Strategic
Energy Plan in a format that allows for open and fair access to publicly financed
and constructed transmission lines;and
BE IT FURTHER RESOLVED,that Grand Camp of Alaska Native Brotherhood
and Sisterhood requests that the federal and state government support all Native
owned,controlled and those that have Native participation in renewable energy
and alternative fuels projects that will provide much needed low cost renewable
energy resources for our people to end outmigration,increase our economic
development,increase our job base and to better our current and future generations
struggling to raise families in ou~traditional rural and urban communities that are
currently dies /isa antag.~J,t!I .,~~..~Ck\~~VV\(J.[AJ ~
ANS Gran President
ATTEST:I certify that this resolution was adopted by the ANB Grand Camp
Executive Committee on October 15,2009
ANB Gran Secretary
Attachment B
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)
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
ii. Rated capacity of generators/boilers/other
iii. Generator/boilers/other type
iv. Age of generators/boilers/other
v. Efficiency of generators/boilers/other
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]
ii. Fuel usage
Diesel [gal]
Other
iii. Peak Load
iv. Average Load
v. Minimum Load
vi. Efficiency
vii. Future trends
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.
Attachment B
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]
100 MW Hydro Transmission Line
b) Proposed Annual electricity or heat production (fill in as applicable)
i. Electricity [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 31,000,000.00
b) Development cost 5,033,414.00
c) Annual O&M cost of new system 360,000.00
d) Annual fuel cost
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity
ii. Heat
iii. Transportation
b) Price of displaced fuel
c) Other economic benefits Sale of excess hydro power
d) Amount of Alaska public benefits
6. Power Purchase/Sales Price
a) Price for power purchase/sale $0.068 purchase $0.07 sale
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio
Payback
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 1. Project scoping and contractor solicitation for planning and design 3rd Quarter 2010 $ $ $ 2. Permit applications (as needed) 4th Quarter 2010 $ $ $ 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 $5,033,414.00 $ $ 8. Updated economic and financial analysis $ $ $ 9. Negotiated power sales agreements with approved rate $ $ $ 10. Final business and operational plan 4th Quarter 2011 $ $ TOTALS 5,033,414.00 $5,033,414.00 Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $ $ $ Construction Services $5,033,414.00 $ $5,033,414.00 Other $ $ $ TOTALS $5,033,414.00 $ $5,033,414.00 Applications should include a separate worksheet for each project phase (Reconnaissance, Feasibility, Design and Permitting, and Construction)- Add additional pages as needed