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HomeMy WebLinkAboutTatitlek IRA Council Wind AppRenewable Energy Fund Grant Application November 10, 2008 Tatitlek IRA Council PO Box 171 Tatitlek, AK 99677 Phone: 907-325-2311 Contact: Sue Johnson ®ENERGYALAORITY SHKA Renewable Energy Fund Grant Application SECTION 1 — APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Tatitlek IRA Council/Tatitlek Electric Utility Type of Entity: Tribally Owned Electric Utility Mailing Address Physical Address PO Box 171, Tatitlek, AK 99677 Tatitlek, Alaska Telephone Fax Email 907-325-2311 907-325-2298 sue'ohnson1 starband.net Point of Contact Name Title Lori (Sue) Johnson President, Tatitlek IRA Council Mailing Address PO Box 171, Tatitlek, AK 99677 Telephone Fax Email 907-325-2371 907-325.2298 suejohnsonl@starband.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, or A local. government, Or - '. X 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 13 9/3/2008 /ALASKA Renewable Energy Fund ® ENERGY AUTHORITY Grant Application RY Provide l0a brief1-2 ve view 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. . The Tatitlek IRA Council requests funding for the first three phases of what we anticipate, after the final analysis, will be a high penetration wind -diesel project. A Reconnaissance Study, Resource Assessment, and Feasibility Analysis will examine both the wind and hydro resources available to Tatitlek. In the Conceptual Design/Final Design/ and Permitting Phase we will focus on the resource, or combination of resources, which makes the most economic sense for us to develop. 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. Tatitlek, located in northeastern Prince William Sound, is about 30 miles south of Valdez on the eastern side of the Tatitlek Narrows. The community of Tatitlek will be served by this project. With the "upwardly mobile' price of diesel these days, we can afford to leave no stone unturned in our quest to exploit an alternative energy resource. We are aware that a good hydro resource exists nearby. But, is too far from our community to be economically developed? Local anecdotal information, the Renewable Energy Atlas of Alaska, and AEA's Draft Regional Wind Study suspect that Tatitlek has an excellent wind resource. But we also have a mountain directly behind the village. Will the winds be too turbulent? Site specific monitoring and feasibility studies ran answer these questions and nrrvide direction for further design, permitting, and construction. TDX Power has a Teaming Agreement with Tatitlek Corporation and the Tatitlek Village IRA Council to manage this project with active participation from the IRA Council, Corporation, and Tatitlek School. 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 resource study and development planning project is $172,388. The community of Tatitlek, through both the Tatitlek Corporation and Tatitlek IRA Council, offer in -kind contributions valued at $8,030. We request $164,358 from the Renewable Energy Fund. If, as we anticipate, a high penetration wind -diesel plant proves to be the best option for our community, according to the AEA Draft study $600,000 in capital costs can be expected. With all other costs included, we estimate a cost of $1.5 million for the Phase IV Final Design/Construction of a high penetration wind -diesel project. Without further study, we cannot estimate the cost of a hydro construction project. A breakout of the cost is provided below: AEA 09-004 Grant Application Page 3 of 13 9/3/2008 /® ALASKA Renewable Energy Fund ® ENERGY AUTHORITY Grant Application 2.4 PROJECT BENEFIT Briefly discuss the financial benefits that will result from this project, including an estimate of economic benefits (such as reduced fuel costs) and a description of other benefits to the Alaskan public. Currently the community of Tatitlek is totally reliant on diesel fuel for electricity and nearly 100% for heat. Although the price of diesel has recently gone down, it is likely only a matter of time before the price goes back up. The recent high cost of $5.1252/gallon to the utility has convinced the Village IRA Council, the Village Corporation, and the community that developing a renewable energy resource is their best bet for a future. If the wind resource proves out, according to the draft AEA Regional Wind Study a wind project in Tatitlek could produce as much as 438,000 kW annually, reducing the need for 33,692 gallons of diesel. That is a savings of $96,360 at 2007 prices. This same benefit calculated at the recent high price of $5.13/gal. comes to $172,678. If the hydro resource proves to be a better choice, we do not have numbers yet to answer this question. We expect the cost to develop hydro will be higher because of the location. A road would have to be built. But the savings will also be higher. The hydro resource would potentially be available 24/7 year round, the O&M for hydro would probably be less than that for a wind project, and most importantly, a hydro project could last for 100 years. As part of the feasibility study an economic model comparing installed capital costs with project savings will be created. According to the AEA Draft Study, a wind project in Tatitlek could prevent 353 tons of CO2 from entering the atmosphere and we suspect a hydro plant could displace even more. This benefits Alaska and the planet as a whole. Subsidizing the high price of diesel powered heat and power for remote locations will continue to be a sensitive subject with urban Alaska. We applaud the State of Alaska's decision to fund solutions to this problem. 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 (including.estimates through construction. $ 1,672,388 2.5.2 Grant Funds Requested in this application. $ 164,358 2.5.3 Other Funds to be provided (Project match) $ 8,030 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $ 172,388 2.6.6 Estimated Benefit (Savings) $ 172,678 2.5.6 Public Benefit (If you can calculate the benefit in terms of dollars please provide that number here and explain how you calculated that number in your application. $ 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 AEA 09-004 Grant Application Page 4 of 13 9/3/2008 ALASHKA Renewable Energy Fund Grant Application 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.) The project will begin immediately upon receipt of the funding. The feasibility study for hydro will be completed shortly after the reconnaissance phase, but the wind resource feasibility study will require a years worth of wind data collection and an analysis of that data before it can be completed. Which resource makes it to the conceptual design and final design phase will be dependent upon the results of the resource feasibility studies. The table below illustrates our proposed schedule — which assumes a start date of July 2009. TASKS PHASE 1 2009-2010 J A S 01 N I D J F M A M J J A S 101 N 1. Reconnaissance of Potential Sites a. Evaluate resource availability x b. Contact USFWS, FAA, SHPO, DOD re: potential site approval issues x c. Determine site ownership issues, if any x TASKS PHASE 11 2. Monitor Selected Wind Site a. Install anemometer x b. Data collection x x x x x x x x x x x x x c. Avian monitoring x x x x x x x x x x x x x x x x d. Document community sentiment on sound/site issues x x x 3. Wind Resource Report x 4. Feasibility Study Wind x Hydro x x 5. Conceptual Design (hydro then wind) x x TASKS PHASE III 6. Final Design x x 7. Permitting x x 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. We will complete the feasibility study for the hydro resource in September of 2009 and a conceptual design for hydro in October of 2009. We will complete the feasibility study and conceptual design for the wind resource after collecting one year's worth of data and completing the wind resource report. We anticipate that will be September of 2010. At that point we will determine if the Final Design, which we plan to complete in November of 2010, will be for a high penetration wind -diesel plant or a hydropower plant. AEA 09-004 Grant Application Page 5 of 13 9/3/2008 /© ALASKA Renewable Energy Fund dMID ENERGY AUTHORITY Grant Application As outlined in a Teaming Agreement TDX Power, in concert with the Tatitlek Village IRA Council and Tatitlek Corporation, will use internal personnel to manage and carry out the majority of the proposed 3 phase project. Montgomery, Watson, and Harza will be hired by TDX Power to do the hydro assessment. Information on MWH can be found on their website www.mwhglobal.com. Resumes of key personnel are attached to this application. The Alaska Energy Authority has an anemometer loan program, but equipment is in short supply. To expedite this project, an anemometer and tower will be purchased from NRG and shipped to the site. We chose NRG because that is the brand that the AEA purchased for the met tower loan program, so we assume it is a good one for Alaska. And NRG said they will provide free shipping to our location. That is a big bonus. Heavy equipment and an operator will be made available as needed by the Tatitlek IRA Council to erect the anemometer tower. Local personnel will be responsible for monitoring the met tower, data collection, and fulfilling environmental assessment activities with supervision from TDX Power. 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 the partners in Tatitlek and proposes to provide on -site management assistance as needed. TDX Power will provide the regular detailed reports to the AEA on the progress of this three phase project as required by the grant. 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. Shipments of materials will be sent well in advance of the work crew. On island personnel will inventory and report when all materials have arrived. Then, and only then, will the crew mobilize for travel to the site. We have included a contingency fund in our budget to cover travel delays. Local equipment failure is always a problem in remote isolated locations. This project has a minimal, but possibly critical, need for heavy equipment. Prior to mobilizing the crew to do the met tower installation for Phase II we will let TDX know what, if any, spare parts might be best to have in hand upon arrival. 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 AEA 09-004 Grant Application Page 6 of 13 9/3/2008 /® ALASKA Renewable Energy Fund ® ENERGY AUTHORITY Grant Application 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 on the coast, Tatitlek has potential for wave or tidal power. But this technology is in the early stages of development and not yet proven. We need energy cost relief now. We know there is a good hydro resource in the area, but we suspect it is too far from the community to be economical. A road will have to be built to the site. We know this can add significant costs. But until we actually cost these things out in a feasibility study, all we have to go on are gut feelings. The fact that a hydropower plant can last up to 100 years makes this resource well worth our consideration. Local sentiment predicts wind will be the most economical to develop. From anecdotal information there is a considerable wind resource in the area. From the Wind Resource Map of Alaska it appears to have the potential of a Class 4 to Class 7 resource. AEA's Draft Regional Wind Study uses a Class 7 resource in its calculations for Tatitlek. Wind -diesel hybrid power is a mature technology and is growing rapidly in rural Alaska. While we propose to do early Reconnaissance on hydro and wind — it is the wind resource we anticipate as most likely to further develop. 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 diesel power plant has 3 generators: #1 John Deere 115 kW with 53990 hrs #2 John Deere 150 kW newly rebuilt — not yet online #3 John Deere 150 kW with 19,697 hrs !0.28kWh/gal. sold per PCE Report 10-08 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 Tatitlek uses diesel fuel to generate electricity. Over 95% of the homes use only diesel for heat. At most, 5% of the homes use a wood stove to supplement diesel heat. The Tatitlek IRA Council is interested in a high penetration hybrid wind -diesel power plant that can use excess electricity to offset diesel used for heat in several large community facilities. The AEA 09-004 Grant Application Page 7 of 13 9/3/2008 /® ALASKA Renewable Energy Fund 4NED ENERGY AUTHORITY Grant Application goal is to displace as much diesel as possible. If the hydro resource proves to be more economical than the wind resource, a road will be required from the community to the site. Significant modifications to the existing diesel plant will be required to integrate either a wind or a hydro resource. The utility currently has one fuel tank with the capacity to hold 10,000 gallons of fuel. This has always been a problem because there is no way to take advantage of buying fuel in bulk. Displacing diesel will mean fewer fuel orders. This will reduce not only costs, but opportunities for spills. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The population of Tatitlek is 117. The 37 residential customers have been on pre -pay electric meters for about 10 years. As a result, residential customers are relatively conservative in their usage with very few surpassing the 500 kW subsidized by PCE. There are 24 businesses and community facilities. The current electric rate is $.76/kWh pre-PCE. No one can predict what the price of diesel will be over the next 20 years. We recently saw oil at nearly $150/barrel. Now it is down to $70/barrel. How long will this lull in the energy crisis last? That is frightening in itself — not knowing which end of the price spectrum you'll face from month to month, year to year. Residents desire, and sustainable economic developments require, reasonable and stable energy prices. We believe integrating a renewable energy resource with modern efficient diesel technology will stabilize, if not significantly decrease, the cost of power in Tatitlek for all ratepayers. 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 If the wind resource in Tatitlek lives up to its expectations, the Tatitlek Electric Utility envisions 500kW of installed wind capacity. AEA 09-004 Grant Application Page 8 of 13 9/3/2008 /® ALASKA Renewable Energy Fund ® ENERGY AUTHORITY Grant Application Without actual wind data the anticipated capacity factor is an unknown, but according to the Regional Wind Study in progress by the AEA it is possible for a wind project to generate 438,000 kWh from wind annually in Tatitlek. In 2007 the diesel plant generated 477,978 kWh. Under this theoretical scenario wind could produce nearly all the electrical needs of the community. At this early stage of the game the only barriers we can foresee is that the wind resource may not be available at the most convenient location or that turbulence issues may complicate development of the resource. USFWS has been contacted and verified that there are no threatened or endangered eiders for concern, but there are eagles in the area. The community partners do not feel the eagle population frequents the areas being considered for development, but careful site selection and subsequent monitoring will be required. The basic integration concept at this time is to develop a high penetration wind -diesel system that will use thermal nodes installed in community facilities as dump loads for excess electricity. These thermal nodes will heat water to supplement hot water from a diesel fired boiler system. The power will be delivered via the existing distribution lines in Tatitlek 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 prospective resource development sites are owned by either the Village IRA Council or the Village Corporation and no land ownership issues are anticipated. Both entities look forward to making land available for the project, including access routes. 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 potentialbarriers 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 We do not foresee any potential barriers with permitting. 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 AEA 09-004 Grant Application Page 9 of 13 9/3/2008 /ALASKA Renewable Energy Fund GEND ENERGY AUTHORITY Grant Application • Archaeological and historical resources • Land development constraints • Telecommunications interference • Aviation considerations • Visual, aesthetics impacts We understand the sensitive nature of wind technology with regard to avian interaction in coastal communities. We have already spoken with Ellen Lance at USFWS and will make sure our initial site selection meets USFWS approval. The community partners will contribute monitoring and provide written observations for a planned study under the direct supervision of a qualified biologist. We are aware of all the other potential environmental issues and will consider them in site selection to preclude there being any problems obtaining approvals from the appropriate agencies for actual construction. At this time, we foresee no issues that will preclude developing any of the resources proposed. 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 If monitoring proves the wind resource favorable for development - and the economics of wind are more cost effective than the hydro resource - we are probably looking at a cost of $1.5 for design, permitting, and construction — at today's prices. That is in addition to the cost of $172,388 for the cost of these initial phases. We request $164,358 from the Renewable Energy Fund with this application The Tatitlek IRA Council and Tatitlek Village Corporation are prepared to offer $8,030 worth of labor and equipment use as an in -kind donation. According to the AEA Draft Regional Wind Study the capital cost for a wind project in Tatitlek would be $600,000. We project an additional $900,000 to develop the high penetration wind diesel system and thermal dump loads. 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by AEA 09-004 Grant Application Page 10 of 13 9/3/2008 /® ALASKA Renewable Energy Fund ® ENERGY AUTHORITY Grant Application the applicant. • Total anticipated project cost for this phase • Requested grant funding IMM 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 current electric rate in Tatitlek is $.76/kWh. We anticipate the rate to stabilize and then decrease following the integration of either wind or hydropower. 4.4.4 Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. The Cost Worksheet is attached. All numbers for this project are from TDX Power. Estimates for evaluating the benefit of integrating wind are taken from the Draft AEA Regional Wind Study. 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. The Tatitlek IRA Council is the owner of Tatitlek Electric Company. The IRA will maintain the anemometer tower during the year of data collection. If the resource report is favorable for developing a wind -diesel plant, the IRA will own, operate, and maintain the wind turbines. A maintenance agreement between the IRA and TDX Power is likely, at least during the first year(s) of operation. 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project development work. We are in the beginning stages of assessing the renewable energy resources available to us. It is difficult to predict the economics at this stage and we look to the draft study by the AEA on our potential wind resource development. We are anxious to complete these resource assessments and feasibility studies so we can move forward to a construction project. If the draft wind study prepared by AEA is correct, the cost for this preliminary work will be more than recovered in the first year of operations. Tatitlek will continue to evaluate homes and businesses and identify additional creative energy efficiency solutions such as in -floor heating systems, and hot water heating system via the wind turbine. Furthermore, like many communities, Tatitlek will continue to employ weatherization and conservation techniques in order to reduce energy usage for residential and non-residential consumers. AEA 09-004 Grant Application Page 11 of 13 9/3/2008 4mip/40DALASKA Renewable Energy Fund 0110 ENERGY AUTHORITY Grant Application SECTION 6- 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 preliminary findings produced by the AEA Tatitlek could displace 33,692 gallons of diesel. At 2006 prices that is an annual savings of $96,360. The recent high of $5.13/gallon paid for diesel in June 2008 jumps that to a $172,840 per year savings. No one can predict the price of diesel over the next 20 years, which is considered the lifetime of a wind -diesel project. We consider it safe, however, to predict that the current prices are as good as it is going to get for diesel. So we feel confident in saying that $3,456,800 worth of fuel could be saved over the lifetime of the project. There are no tax credits available to the Tatitlek IRA Council for this project, but we can sell green tags to Denali Green Tags. At the current rate of $4.50/MW a Tatitlek Electric wind project could bring in just over $1,971 annually — at today's prices. The value of carbon offsets could go much higher in the near future. 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. Include an estimate of budget costs by tasks using the form- GrantBudget.xls The Tatitlek IRA Council and the Tatitlek Village Corporation are contributing in -kind donations valued at $8,030. We are requesting another $164,358 from the Renewable Energy Fund. tt 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 AEA 09-004 Grant Application Page 12 of 13 9/3/2008 Nov 10 2008 3:58PM NOV/10/2008/MON 06:541P9 /� ALAS anm Enclose a co y governing bad or • authorl or, the mop icat TATITLEK IRA COUNCIL 907 325-2298 II the - aut"OrK ee a e n purposi s of this - states he ipill Including am Isir F. CIRTIF I CAI ION PAX No, F. 002 Renewable Energy Fund Grant Application olutlon or other formal action taken by the applicant's rnt that: anon for project funding at the match amounts indicated in ,ral named as point of contact to represent the applicant for :atlon Is In compliance with all federal state, and local, laws III and federal tax obligations. The undersign d I ortifies hat this application for a renewable energy grant is truthful and correct, a d tl let'the pplleant Is In compliance with, and will continue to comply with, all fedora anc state I we Including exlating credit and federal tax obligations. `..P.'tjnp.Maoia 1 -`sao��st•: heir; Mov f R'tA of AEA 09-004 Grant I Page 13 of 13 WV2008 P.2 . . /� 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. Possible Class 7 Wind and 1MW hydropower resources 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 3 Diesel Generators ii. Rated capacity of generators/boilers/other iii. Generator/boilers/other type iv. Age of generators/boilers/other #1 John Deere 115 kW #2 John Deere 150 kW #3 John Deere 150 kW None #1 53990 hrs. #2 newly rebuilt — not yet online #3 19,697 hrs. v. Efficiency of generators/boilers/other 10.28kWh/gal. sold per PCE Report 10-08 b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $18,238 (2007) ii. Annual O&M cost for non -labor $ 8,305 (2007) c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) L Electricity [kWh] 477,978 kWh ii. Fuel usage Diesel [gal] 38,011 gallons Other iii. Peak Load 74 in October 2008 iv. Average Load 54 kW v. Minimum Load 24 kW vi. Efficiency 11.89 kWh/galgenerated in October 2008 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. RFA AEA 09-004 Application Cost Worksheet revised 9126108 Page 1 /� ALASM Renewable Energy Fund ® ENERGY AUTHORITY vii. Future trends Potential increase in electric load to produce heat w/renewable resource d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] Approximately 20,000 gallons ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] < 5 cords of wood vi. Other a) Installed capacity N/A Resource Assessment/Feasibility/Conceptual Design Project b) Annual renewable electricity generation 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 4. Project Cost a) Total capital cost of new system N/A Resource Assessment/Feasibility/Conceptual Design Project b) Development cost c) Annual O&M cost of new system d) Annual fuel cost 5. Project Benefits a) Amount of fuel displaced for Numbers based on AEA Draft Regional Wind Study i. Electricity Potential for 33,692 gallons if feasibility study supports wind development ii. Heat iii. Transportation b) Price of displaced fuel $172,678 at 2008 high purchase price c) Other economic benefits $ 1,971 from sale of Green Tags RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 2 /4'MC)ALASKA Renewable Energy Fund 411111111�) ENERGY AUTHORITY d) Amount of Alaska public benefits $172,678 in reduced fuel cost helps the community 353 tons of CO2 reduction helps all of Alaska 6. Power Purchase/Sales Price a) Price for power purchase/sale Current rate is $.76/kWh for all rate classes 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Payback 172,678 / 1,672,388 = .104--�7 Based on developing wind resource 1,672,3881172.678 = 9.7 years RFA AEA 09-004 Application Cost Worksheet revised 9126108 Page 3 m O O O O O O 0 Q O O O O O O o O 00 0 0 0 0 0 C' et O m m n 0 V} t/} N N V? 14 r V} 0 0O 00 M N n V v> 0 Z Y Z 00 0 0 0 O O O O O O O O O O O O O 0 0� t�O to n 0 7 l7 t0 ei V) O O 00 Z OJ 14 d F v} an an ti h V} C W d 0 0 0 0 0 0 0 0 0 0 o ui o 0 o ui V} V4 V m 0 V) Vt m mi ri ti t/) � v� J a Z LL O 0 0 0 0 0 010.0 l0 0 0 0 0 0 0 0 0 O O O O 0 o O o O O O 0 O O O O N ui u) u1 ui ui ui 06 O O 0 u) O O O .O lO M m m m M 00 VF V} V} m 0 V) V) m H M ci d' u) C M m M VT m M d mi 00 00 u) cr m) rr N m) lM U Q n M VT V V a -I .ti 1� ci ci OV! VF to VT V? V} Z O F0 u o Ln o 0 0 0 O 0 O 0 0 0 0 0 0 O 0 0 C 0 � M J ti VT V7. VT M t0/? t a Y O u 0 o O o O � 0 0 0 0 0 0 0 0 -0 0 0 0 OI O 0 0 0 0 0 0 o O O 0 0 0 0 O O O Ln 0 0 0 u) Y Y. 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VT V? i O 00 O 0 0 m m Ln M M c-I u 0 M V) V V? V l Vn O O O O 0) Ol Ln M O 0 O 01 ' Ln 7 m c LM in yr Vt O O 0 0 ti rj .n .n yr V)- .n 00 O � 00 V N Ln P. in Vn V} V} V* O O O O 0 0 n O M' N I� to V? V} VT V} O O O C:)O m n O to Lo N N N 01 Lo Ln N m V ei VT V) V} VF in 0 0 n n 0 c-I c-1 L M V V b 00 Yk c O � � J c c E m c m m o W W W J 0 00 00 0 0 0 0 0 0 0 00 O m m O N 0 0 O Ln O 00 0 0 m o 0 0 n o M N' ry Lr r- O Lri LA N N N N Ln I, n ri in V} Vn O 00 00 Ln O O O M ON � N ^ ' O O O 0000 Ly 7 r-I' C1 L-1 14 V? V! VT V? V} i/? VF Vt V? V? Ln 0 0 Ln C o m a a M LEI VI VT V! u O 0 N M O M C O O ' M a-1 Ln O O Ln M O O M O 0 C of of v} 4^ .n v> in rn V> V* in V� Ln o o Ln M O O M O O In V of V>• V>• V) .n V)- VL• O Ln m m O M a -I Op V? Vn 4^ VT V) V! O O O O Ln O O Ln O to to 0 m Ln O Lo Lo M O ti r N 07 N m VT V) V) VT V) V} V} V? V? V} VT O O O Ln O O O Ln O c ei M O O 0 O Ol I, O ' ' O O ' O rn Lf Lr ti cy n Ln n V? V? V} {n VT 4A V} V? VF V} V} J N CL Y U a 3 N C w a u °C° O f •O1 V} Y i u Q 0) C Y w 0) M E U O W H C7 tA \ C Q H C z ^ m u O E cu Y> C U a E CD U 7 W 0 a o 0 c a L > > d J a L0 Lm 7 O. C m O C L H L H a O 0 +� N o +' o h 5 Ll W M U n U= O L Tc`�tlt�ek All Ahvikit Nitlive Villiir,P Corpiwatio n 1 C.� 361 East 30th Avenue. • Anchorage, Alaska 90s03 hr1 CORPORATION PhOne: (907) 278-4000 • Fax: (9071 278-4050 A IRADI,ION OILXCELLENCE WVaW.tatltlekxonl TATTLEK CONTRACTORS INC • TATITLEK MANAGEMENT INC • TATMLEK RESPONSE SERVICES INC • TATITLEK SUPPORT SERVICES INC TATITLEK TECHNOLOGIES INC • SUPER SIGNS LTD • TATITLEK TRAINING SERVICES INC November 5, 2008 To whom it may concern, The Tatitlek Corporation and subsidiaries fully endorses and supports the wind generator and the 2008 AEA grant. Sincerely, Lloyd Allen Chairman of the Board >ell� 'I atitCe( TiCCage IRA Counc 'C "GoXs Country, USA" _Y r— Resolution 08-14 A Resolution authorizing the formation of a consortium with The Tatitlek Corporation and TDX to assist in the planning and development of a renewable energy project in the Native Village of Tatitlek. WHEREAS, The Native Village of Tatitlek is a federally recognized tribe; and WHEREAS, the Tatitlek IRA Council is the tribal government of the Native Village of Tatitlek; and WHEREAS, the Tatitlek IRA Council has identified a need for a wind powered project for alternate energy; and WHEREAS, building a wind powered project for alternate energy is a means to address the rising cost of energy; and WHEREAS, the Tatitlek IRA Council commits to the responsibility for the operation and maintenance of this project, NOW, THEREFORE BE IT RESOLVED THAT The Tatitlek IRA Council authorizes application to the named consortium for assistance in the renewable energy project in the Native Village of Tatitlek CERTIFICATION This resolution was duly adopted by the Tatitlek IRA Council on A_'- 1200-ir Signed''- f Lon Johnson, President Attest: " Norman Vlasoff, Council Member Date: Date: //— 2? O. Bo.x 171 • Tatitlek ACasko 99677 • (907) 325-2311 • SAX (907) 325-2298 TUX Anchorage, AK Saint Paul, AK Philadelphia, PA 10 November 2008 The Alaska Energy Authority RE: Renewable Energy Fund To Whom it May Concern: As CEO of TDX Power, Inc., I authorize our companies involvement in this application for project funding and the match amounts indicated in the application; and will serve as the authorized individual named as point of contact to represent the applicant for purposes of this application; and TDX Power, Inc. is in compliance with all federal state, and local, laws including existing credit and federal tax obligations. Sincerely, TDX POWER, INCORPORATED