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HomeMy WebLinkAboutTDX Adak Generating Diesel Hybrid AppRenewable Energy Fund Grant Application November 10, 2008 TDX Adak Generating,LLC 4300 B Street, Suite 301 Anchorage, AK 99503 Phone: 907-762-8450 Contact: Nick Goodman /ORITY � AENELASHKA Renewable Energy Fund Grant Application SECTION 1 —APPLICANT INFORMATION Name (Name of utility, IPP, orgovemment entity submitting proposal) TDX Adak Generating, LLC Type of Entity: Electric Utility Mailing Address Physical Address 4300 B Street, Suite 300, Anchorage, AK 99503 Adak, Alaska Telephone Fax Email 907-752-0500 907-279- ngoodman@tdxpower.com Point of Contact Name Title Nicholas Goodman CEO, TDX Power Mailing Address 4300 B Street, Suite 300, Anchorage, AK 99503 Telephone Fax Email 907-752-9500 907-279- ngoodman@tdxpower.com 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) x An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer, or A local government, or A governmental entity (which includes tribal councils and housing authorities); Y 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 a collaborative grouping, a formal approval from each participant's governing authority is necessary. (Indicate Yes or No in the box ) Y 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. Y 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.) AEA 09-004 Grant Application Page 2 of 12 9/3/2008 ALASKA Renewable Energy Fund /® ENERGY AUTHORITY Grant Application SECTION 2 — PROJECT SUMMARY Provide a brief 1-2 page overview of your project. 2.1 PROJECT TYPE Describe the type of project you are proposing, (Reconnaissance; Resource Assessment/ Feasibility Analysis/Conceptual Design; Final Design and Permitting; and/or Construction) as well as the kind of renewable energy you intend to use. Refer to Section 1.5 of RFA. We propose to accomplish the first three phases of a project to integrate one or more renewable energy resources with a properly sized efficient diesel plant. During Phase I Reconnaissance and Phase II Resource Assessment/Feasibility Analysis/Conceptual Design we will evaluate the geothermal, hydro, and wind resources of Adak Island. Phase III, Final Design and Permitting, will reflect the winning resource(s) from Phase ll. We also request funds for a Phase IV Construction project. The power plant in Adak was designed and constructed in 1964 for a 6000 person military base. The diesel plant is grossly oversized for the current population of 150 - 200, in sorry shape, and is extremely inefficient. It is an environmental disaster with both asbestos and PCB contamination. In preparation for the integration of renewable power, we request funding to procure a new diesel engine with the proper controls. Adak is in dire need of this new and properly sized power plant, and the engine selected will integrate well with either a wind, geothermal or small hydro follow on project. 2.2 PROJECT DESCRIPTION Provide a one paragraph description of your project. At a minimum include the project location, communities to be served, and who will be involved in the grant project. Adak is a former military base now owned by the Aleut Corporation (TAC). It is located on Adak Island near the end of Alaska's Aleutian Island Chain. Presently there are approximately 75 residents at a base where a population of 6,000 military personnel and their families were once housed. The site was turned over to TAC by the US Navy in 1999. TAC aspires to re -populate the island with shareholders and employees of the fishing industry. The location is in good fishing grounds and has an established processing plant. The US Navy houses and Missile Defense Agency house an enormous radar facility in the harbor there for part of the year. This expensive piece of equipment requires reliable shore -based power. The RCA recently ruled that the City of Adak was not capable of managing nor operating the utility electric utility. TDX Power agreed to take over the utility while the people of Adak were under emergency conditions. TDX Adak Generating, LLC will complete the project using personnel from its parent company, TDX Power. 2.3 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. Include a project cost summary that includes an estimated total cost through construction. The estimated total cost for this project is $ 900,00.00 2.4PROJECT BENEFIT Briefly discuss the financial benefits that will result from this project, including an estimate of economic AEA 09-004 Grant Application Page 3 of 12 9/3/2008 �® ALASHKA Renewable Energy Fund Grant Application benefits (such as reduced fuel costs) and a description of other benefits to the Alaskan public. Currently the community of Adak is totally reliant on diesel fuel for electricity and for heat. The recent high cost of diesel has convinced TDX Power and the community that developing a renewable energy resource is their best bet for the future. Displacing diesel makes economic sense for the community and for the Alaskan public. Subsidizing the high price of diesel powered heat and power for remote locations when there are ample local renewable resources available is not in the best interest of the local population or the Alaskan public. 2.5 PROJECT COST AND BENEFIT SUMARY Include a summary of your project's total costs and benefits below. 2.5.1 Total Project Cost $ 900,000 (including estimates through construction. 2.5.2 Grant Funds Requested in this application. $ 800,000 2.5.3 Other Funds to be provided (Project match) $ 100,000 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $ 900,000 2.5.5 Estimated Benefit (Savings) $ 6kwhlgallon improvement in heat rate 2.5.6 Public Benefit (If you can calculate the benefit in terms of $ NIA given that kwh dollars please provide that number here and explain how sales are unavailable you calculated that number in your application.) 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 John Lyons, Operations Manager for TDX Power, will be the Project Manager. John's Resume is attached to this application. 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.) TASKS PHASE 1 2009-2010 1. Reconnaissance of Potential Sites a. Evaluate resource availabilitv b. Contact USFWS, FAA, SHPO, DOD re: x potential site approval issues c. Determine site ownership issues, if any x TASKS PHASE II 2. Monitor Selected Wind Site AEA 09-004 Grant Application Page 4 of 12 9/3/2008 /40c) ALASKA Renewable Energy Fund � ENERGY AUTHORITY Grant Application a. Data collection x x x x x x x x x x b. Avian monitoring x x x x x x x x x x c. Document community sentiment on sound/site issues x 3. Wind Resource Report x 4. Feasibility Study Geothermal x x x Hydro x x x Wind x 5. Conceptual Design x TASKS PHASE III 6. Final Design x x 7. Permitting x x TASKS PHASE IV 8. Design of Diesel Plant x x 9. Construction of Diesel Plant x x x x x x x x x We will start this project immediately upon the receipt of funds. A met tower from the AEA was erected in Adak in 2006 by the City of Adak. However, the data logger was never installed — so no data was collected. TDX Power, dba TDX Adak Generating, LLC, will install a data logger during the month of December 2008 and start the process of data collection immediately. TDX will also commence assessment of the hydro and geothermal resources during this period. 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. Feasibility studies for all three renewable resources should be complete by February 2010. At that time we will determine which resource is most economically advantageous to develop. The Conceptual design and Final design will soon follow that decision, and we expect to complete the Final Design and Permitting by April of 2010. 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 TDX Power will primarily use internal personnel to manage and carry out the proposed 3 phase project scope. For the hydro resource Montgomery, Watson, and Harza will be hired. For the geothermal resource , TDx will supplement existing engineering and project development personel with Roger Bowers, a geologist specializing in the development of geothermal resources for power generation. Resumes of key personnel and brief descriptions of subcontractors are attached to this application. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. TDX Power will maintain close contact with TDX Adak Generating employees on the island and provide on -site management assistance as needed. TDX Power will provide regular detailed reports to the AEA on the progress of this project in quarterly reports as AEA 09-004 Grant Application Page 5 of 12 9/3/2008 /®ALASKA Renewable Energy Fund Grant Application required. 3.6 Project Risk Discuss potential problems and how you would address them. The number one problem this project will face is maritime weather and its remote location. TDX Power's roots in the Aleutian Islands prepare them well for dealing with both these issues. Unlike most Aleutian communities Adak has jet service, which helps somewhat with getting a crew and supplies to the island. 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 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 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. Being an island, Adak has potential for wave or tidal power. But this technology is not yet commercially available. There is a hydro resource near the community which holds great promise. Hydro is a very good possibility for this community as a year round economical energy resource. There are known hot springs on Adak Island, but at this point the only obvious geothermal anomalies are in the remote areas of the island farthest from the community. More detailed exploration is required to determine if there are developable resources closer to the community. A seismic study is being planned for Unalaska Island this summer that may also include Akutan. Equipment from Colorado is being brought in from Colorado. TDX hopes to include Adak as well, reducing the Mob/Demob costs for all involved. An abundance of reliable anecdotal information declares a more than adequate wind resource in the area. The sign above the airport door proclaims Adak "The Birthplace of the Wind". The Wind Resource Map of Alaska identifies Adak as a Class 7 resource. Wind -diesel hybrid power is mature technology that is growing rapidly in rural Alaska. But in the case of wind, it is possible to have too much of a good thing. Only site specific monitoring will determine the value of wind to Adak. 4.2 Existing Energy System AEA 09-004 Grant Application Page 6 of 12 9/3/2008 /ORITY � ALAUTAUTRGYHKA Renewable Energy Fund Grant Application 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. ace. efficiencv. and tvoe of aeneration. The existing Adak generating plant is an old Combined heat and Power Plant designed for the navy in the early 1940's. As referenced above in this application, Power plant 3, as it is affectionately known, is far too large (80,000 square feet) and improperly configured to meet the requirements of the new community population of 150+ residents. The existing configuration includes six old Cooper Bessemer units, rated at 2+MW each, and three smaller Caterpillar 3516's, installed 15 years ago to provide black start capability to the larger cooper based plant. Two of the three caterpillar units are well beyond their useful life, currently inoperable, and not good candidates for further investment. The 3rd Caterpillar until is in need of an overhaul, and if it were not the only working unit on the island, would also not be a good candidate for further investment. TDX Proposes to temporarily replace one of the three 3516 units with a new Caterppillar 3512 with the intent that it will handle a growing, total community load comfortably without wind, hydro or geothermal integration, and once a new renewable plant is developed, can be moved in to the new plant and expected to work with good low load efficiency. 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 Adak uses diesel fuel to generate electricity and heat homes. As mentioned earlier, the diesel plant on island is very old and grossly oversized for the current community. A new efficient diesel engine will significantly reduce the amount of diesel currently required to keep the lights on in Adak. A new diesel plant with a generator capable of carrying the entire community load while also being able to run efficiently at low load once the hydro or wind resource comes on line. There are significant liquid fuel storage facilities on Adak Island, to say the least. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. According to the former utility, the community was not on PCE, didn't bill customers regularly, and records of fuel use compared to kWh sold are scarce to nonexistent. We can safely assume that this project will have a positive effect on customers who are used to brownouts, blackouts, and going so far as to donate 5 gallon cans of diesel to keep the generators running. The people of Adak are looking forward to reliable power and a utility with the vision to integrate a renewable resource and reduce diesel consumption. Stabilizing and/or lowering the cost of electrifying and heating the community will have a positive effect on Adak. Residents deserve and sustainable economic development requires reliable reasonable and stable energy prices. AEA 09-004 Grant Application Page 7 of 12 9/3/2008 ,®ALASKA Renewable Energy Fund ® ENERGY AUTHORITY Grant Application 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 Our first priority is to install a Caterpillar 1300 kW 1200 rpm 3512C — a generator with a 60% load variation with excellent fuel economy. 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 majority of land in Adak is owned by The Aleut Corporation, and the rest is owned by the City of Adak. Both entities have agreed to make land available for whatever resource will be developed. 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 agencies will be contacted for preliminary approval prior to final site selection and met tower installation. Permits will be requested as appropriate upon completion of the conceptual design. FAA Coastal Zone Management SHPO Department of Defense USFWS When contacted about the anemometer installation, USFWS endangered species biologist Ellen Lance said there was no need for concern on Adak. The military has installed far more hazards for birds on Adak Island than any single tower could ever create. 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 AEA 09-004 Grant Application Page 8 of 12 9/3/2008 /® ALASHKA Renewable Energy Fund Grant Application • 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 Adak is a former military installation. All environmental considerations have been violated many times since WWII. A new diesel plant and renewable energy resource development will improve environmental conditions on Adak. Any project we develop will avoid creating telecommunications interference. The FAA has already approved the current met tower site. 4.4 Proposed New System Costs (Total Estimated Costs and proposed 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 At this time we can only project for this phase, $ 900,000 and provide the estimated capital cost for a follow on wind project of $1,400,000 in the Draft AEA Regional Wind Study. 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. Total anticipated project cost for this phase Requested grant funding Applicant will fund O&M for new facilities with operating revenue. No funds are requested at this time. 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 N/A. TDX Adak generating, LLC is a certificated utility fully regulated by the RCA. 4.4.4 Cost Worksheet AEA 09-004 Grant Application Page 9 of 12 9/3/2008 /4@MEV_-D) ALASKA Renewable Energy Fund ® ENERGY AUTHORITY Grant Application Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Cost Worksheet is attached 4.4.5 Business Plan 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. TDX Power recently purchased the electric utility on Adak. The current power plant operator will remain in her position, but will have supervision and O&M assistance — a new development that she welcomes. She is interested in training for new skills and will be an asset to the utility under TDX ownership and operations. TDX will manage this utility in the same manner as Sand Point with regular visits from John Lyons for O&M oversight to supplement well -trained local operators. 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project development work. Once a thorough analysis of three renewable resources is complete, a thorough economic analysis including market forecasts, project models and end user rates will be developed as part of the conceptual design. 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 avoided cost of ownership) • 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 According to the best information we have at this time (AEA Draft Regional Wind Study), a wind - diesel project in Adak's Class 7 Resource could displace 1,044,820 gallons of diesel over a 20 year lifespan. The sale of green tags at today's value of $4.50/MW could bring in $3055.50 annually. It appears that 547 tons of CO2 could be avoided with the addition of wind energy in Adak. In and of itself that is not much, but add 10 or so projects like this — which Alaska surely will in the near future — and the number becomes significant. Adak is surrounded by a productive fishing ground. Preserving and nurturing this community and the fishing industry it can support benefits all Alaskans. AEA 09-004 Grant Application Page 10 of 12 9/3/2008 ALASKA Renewable Energy Fund / NED ENERGY AUTHORITY Grant Application SECTION 6 — GRANT BUDGET Tell us how much your total project costs. Include any investments to date and funding sources, how much is requested in grant funds, and additional investments you will make as an applicant. the form - As a wholly owned subsidiary of TDX Power, TDX Adak Generating will be financially supported in both operations and project development. To date, TDX Adak generating has invested over $200,000 in acquisition activities including several engineering studies to address the power plant and distribution system. TDX Adak Generating, LLC will contribute an additional $100,000 to this project. At the same time, TDX Adak generating has budgeted an additional $250,000 budget for initial investment in taking over utility operations. This budget will be used to establish a proper administrative side to the utility, as well as much needed O&M and parts purchasing to the plant which has experienced unprecedented levels of deferred maintenance. A budget for the costs is included on the Grant Budget form. SECTION 7 — 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 6. D. An electronic version of the entire application per RFA Section 1.6 E. Governing Body Resolution per RFA Section 1.4 Enclose a copy of the resolution or other formal action taken by the applicant's governing body or management that: - authorizes this application for project funding at the match amounts indicated in the application authorizes the individual named as point of contact to represent the applicant for purposes of this application states the applicant is in compliance with all federal state, and local, laws including existing credit and federal tax obligations. 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. AEA 09-004 Grant Application Page 11 of 12 9/3/2008 �® ALASHKORITY A Renewable Energy Fund Grant Application states the applicant is in compliance with all 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 Signature Title Date ' U� dr--' C)z AEA 09-004 Grant Application Page 12 of 12 9/3/2008 • . /® ALASKA Renewable Energy Fund ® ENERGY AUTHORITY Application Cost Worksheet Please note that some fields might not be applicable for all technologies or all project phases. 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. Class 7 Wind Resource, KGRA, Known Hydro Resource Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) 2. Existing Energy Generation a) Basic configuration (if system is part of the Railbelt' grid, leave this section blank) i. Number of generators/boilers/other 6 Cooper Bessemer x3MW, 3 Cat 3516 x 900kw ii. Rated capacity of generators/boilers/other CB=3MW each, Cat 3516's = 900kw each iii. Generator/boilers/other type N/A iv. Age of generators/boilers/other CB = 50+ years, Cat = 15+ years v. Efficiency of generators/boilers/other unknown b) Annual C&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor Unknown ii. Annual O&M cost for non -labor unknown 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] 989,880 (forecasted number) ii. Fuel usage Diesel [gal] 96,145 gallons Other iii. Peak Load N/A iv. Average Load N/A v. Minimum Load N/A vi. Efficiency N/A vii. Future trends Load is growing to respond to military requirements d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] N/A 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 AEA 09-004 Application Cost Worksheet revised 9126108 Page 1 /� ALASKA Renewable Energy Fund ® ENERGYAUTHORITY ii. Electricity [kWh] N/A iii. Propane [gal or MMBtu] N/A iv. Coal [tons or MMBtu] N/A v. Wood [cords, green tons, dry tons] N/A vi. Other N/A a) Installed capacity Initial 1300KVV unit proposed, balance of plant TBD b) Annual renewable electricity generation i. Diesel [gal or MMBtu] N/A ii. Electricity [kWh] NIA iii. Propane [gal or MMBtu] N/A iv. Coal [tons or MMBtu] NIA v. Wood [cords, green tons, dry tons] N/A vi. Other N/A a) Total capital cost of new system $900,000.00 initial budget b) Development cost 0 c) Annual O&M cost of new system N/A d) Annual fuel cost N/A 5. Project Benefits a) Amount of fuel displaced for i. Electricity Current heat rate = 8kwh/gallon. Proposed heat rate with new 3512 = 14 ii. Heat N/A iii. Transportation N/A b) Price of displaced fuel c) Other economic benefits d) Amount of Alaska public benefits 6. Power Purchase/Sales Price Current fuel price $5.15/gallon N/A Hard to quantify RFA AEA 09-004 Application Cost Worksheet revised 9126108 - Page 2 /® ALASKA Renewable Energy Fund 611110 ENERGY AUTHORITY a) Price for power purchase/sale NIA 7. 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V} V) V} to \ t J \ J ti L N D U H o m N f0 d 0) 0J t 0 O 00 � y b0 V} ~ W m L V} \~ le Y a 9 C U i C Yul C U O C y L U a 0) W O O m V} p a O to V a +0+ u C C Y C O C N 6>O - m -0 0) EOl V E O U T C O UOCUU 7y wm(U O U J c°EJ ° m a m y 00 C m u > a m 7 C C t0 O C 01 L F C 01 i 0 y I— Ol a 7 O" v) 0 +' O O W V) 00 (AU V= 0 E TDX Adak Generating, LLC Adak Anchorage, AK Saint Paul, AK Philadelphia, PA 10 November 2008 The Alaska Energy Authority RE: Renewable Energy Fund To whom it may concern: As manager of TDX Adak Generating, LLC, 1 authorize this application for project funding and the match amounts indicated in the application; and I will serve as the authorized individual named as point of contact to represent the applicant for purposes of this application; and TDX Adak generating, LLC is in compliance with all federal state, and local, laws including existing credit and federal tax obligations. Sincerely, 0�� Nicholas Goodman TDX ADAK GENERATING LLC N C POWER SYSTEMS CO. 1110712008 GRH1291-01 TDX Power, Inc 4300 B Street ANCHORAGE, AK 99503 Adak Generation Caterpillar Model 3516C Packaged Diesel Electric Set rated 1300 kW Prime Power @ 0.8 PF, 1200 rpm, connected for 2771480 volts, 3-phase, 60 Hz, including the following basic equipment: F11:AIki111=1WY6'I11:1iv, Aftercooler core, corrosion resistant Air cleaner, regular duty, with soot filter Service indicators CONTROL SYSTEM Caterpillar ADEM A3 ECM, LH Requires 24V DC 10 Amp continuous, 20 AMP intermittent, clean electrical power. COOLING SYSTEM In order to ensure compliance in use, optional or customer supplied radiators must be capable of rejecting enough heat to allow proper operation at worst case site conditions and also must supply 118 deg F (48 deg C) SCAC cooling water to the aftercooler inlet, with a SCAC flow rate of at least 100 GPM (379 1/m) with an ambient temperature of 86 deg F (30 deg C) and at site conditions (including altitude considerations). Maximum allowable SCAC flow rate is 115 GPM (435 1/m). RADIATOR COOLED LAND BASED: Outlet controlled thermostat and housing Jacket water pump gear driven Dual outlet Aftercooler fresh water cooling pump (SCAC), gear driven centrifugal SCAC pump circuit contains a thermostat to keep the aftercooler coolant from falling below 30 deg C (85 F). EXHAUST SYSTEM Exhaust manifolds, dry. Dual turbochargers with w/c bearings. FLYWHEELS & FLYWHEEL HOUSINGS Flywheel, SAE No. 00 Flywheel housing, SAE No. 00 SAE standard rotation FUEL SYSTEM Fuel filter Fuel transfer pump Fuel return line, hard, with flexible connection Fuel priming pump, LH Electronically controlled unit injectors INSTRUMENTATION Electronic Instrument Panel, LH Analog gauges with digital display data for: Engine oil pressure gauge Engine water temperature gauge Fuel pressure gauge System DC voltage gauge Air inlet restriction gauge Exhaust temperature (prior to turbochargers) gauge Fuel filter differential pressure gauge Oil filter differential pressure gauge Service meter (digital display only) Tachometer (digital display only) Instantaneous fuel consumption (digital display only) Total fuel consumed (digital display only) Engine start -stop (off, auto start, manual start, cooldown timer) LUBE SYSTEM Crankcase breather Oil cooler Oil filter Shallow oil pan Oil drain extension, 2' NPT female connection. MOUNTING SYSTEM Engine and Generator mounting groups Viscous damper drive line coupling. POWER TAKE -OFFS Accessory drive Lower LH front (available for PTO usage) Front housing, two-sided Viscous dampened driveline couplings PROTECTION SYSTEM ADEM A3 ECM monitoring system provides engine de -ration or shutdown strategies to protect against adverse operating conditions. Selected parameters are customer programmable. Status available on engine mounted instrument panel and can be broadcast through the optional customer communications module or programmable relay control modules(s). Initially set as follows: Safety shutoff protection, electrical: Oil pressure, Water temperature, Overspeed, Crankcase pressure, Aftercooler temperature. Includes air inlet shutoff, activated on overspeed or emergency stop. Alarms, electrical: ECM voltage, oil pressure, water temperature (low and high), overspeed, crankcase pressure, aftercooler temperature, low water level (sensor is optional attachment), air inlet restriction, exhaust stack temperature, filter differential pressure (oil and fuel). Derate, electrical: High water temperature, Crankcase pressure, Aftercooler temperature, Air inlet restriction, Altitude, Exhaust temperature. Emergency stop push button, located on instrument panel. Alarm switches (oil pressure and water temperature), for connection to customer supplied alarm panel. Unwired. GENERAL Paint, Caterpillar Yellow Vibration damper and guard Lifting eyes Lift and cable tow provisions With the Following Attachments: EPA TIER 2 CERTIED PACKAGE SINGLE WATER OUTLET CONNECTION GOVERNOR LOAD SHARE MODULE, SHIPPED LOOSE, FOR INSTALLATION INTO EXISTING SWITCHEAR ENGINE MOUNT PREMIUM PANEL LH ENGINE CRANKCASE EXPLOSION RELIEF VALVE ENGINE MANUAL BARRING GROUP LUBRICATING OIL, 500 HR PAN CATERPILLAR SR4B 2-BEARING, CLOSE COUPLED GENERATOR RATED 1300 kW PRIME WITH PMG, FORM WOUND CONSTRUCTION, .667 PITCH RATIO TO MATCH EXISTING GENERATORS FOR PARALLELING. INCLUDES BEARING AND STATOR TEMPERATURE DETECTORS, AND A SINGLE-PHASE SPACE HEATER. RAIL GROUP-ENGINE/GENERATOR LENGTH DUAL 24 VOLT ELECTRIC STARTER MOTORS Local Dealer Equipment: 20 AMP BATTERY CHARGER WITH 4 FAULT INDICATIONS 16" RESIDENTIAL EXHAUST SILENCER WITH DUAL INLETS, SINGLE OUTLET FLEX EXHAUST FITTINGS, TWO 8" EXHAUST FLANGE GASKETS, TWO FABRICATE PREMIUM INSTRUMENT STAND TO PROVIDE REMOTE MOUNTING OF PANEL OFF -ENGINE LOW LUBE OIL LEVEL SHUTDOWN Local Dealer Labor: TARP GENERATOR FOR SHIPMENT INST LOW OIL LEVEL ALARM Budgetary One Unit FOB Dockside Seattle, WA $515,000 OPTIONS: 1. Estimate for two remote radiators for jacketwater and separate circuit aftercooling Add $35,00-$40,000 2. Estimate for 4160 volt vs 480 volt generator Add $35,000 TERMS AND CONDITIONS: 1. The above quoted prices are subject to change without notice; price quoted is valid for 30 days. 2. The above quoted prices do not include state and local taxes, if applicable. 3. All orders to purchase or lease based on this quotation shall be subject to acceptance by N C Power Systems Co. All transactions shall be made on, and subject to N C Power Systems Co.'s standard terms, conditions and warranties, or modified documents reflecting mutually - agreeable terms. 4. Provides Caterpillar Warranty for parts and labor for one year on Caterpillar products. All other manufacturer's warranties apply per their respective warranty statements. 5. N C Power Systems Co. will not be responsible for, or subject to, penalties attributed to force majeure. 6. This proposal represents N C Power Systems Co.'s best interpretation of the project requirements, which may vary from other's interpretation. If equipment or services are not described, they cannot be construed to be included in this scope of supply.