The URL can be used to link to this page

Home My WebLink About081110 AWP AEA Delta Grant Cover Letter Alaska Wind Power LLC 10600 Prospect Drive Anchorage, Alaska USA 99507-6494 Telephone: 1 (907) 346-2745 e-mail: lapres@gci.net Cell: 1 (907) 248-7188 First Wind Alaska Page 1 of 3 Mr. Steve Haagenson November 10, 2008 Executive Director, Alaska Energy Authority 813 West Northern Lights Boulevard Anchorage, Alaska 99503 Dear Mr. Haagenson, Alaska Wind Power, LLC is partnering with First Wind Alaska Holdings LLC, to complete the final design, permitting, and construction of a 50 MW wind power project near Delta Junction (Delta Wind Project). This renewable energy generation project is located on State property 25 miles south of Delta Junction and three miles east of the Delta River. Alaska Wind Power was formed to develop the Delta Wind Project, and is now pleased to welcome First Wind Holdings LLC (parent to First Wind Alaska Holdings LLC) as a major business partner. First Wind is a successful North American wind energy developer that constructed and now owns and operates utility-scale wind energy facilities in Hawaii, Maine, and New York. First Wind is also actively developing projects in Canada, California, New Mexico, Oregon, Utah, Vermont, Washington, and Wyoming to provide sustainable renewable wind energy and job opportunities for local residents, while protecting the environment for future generations. Over the last two years Alaska Wind Power has measured and verified an attractive wind energy resource on State property within the Delta River valley. Building on the initial reconnaissance and resource assessment completed to date, Alaska Wind Power and its new partner First Wind are committing proven expertise and resources to construct and operate the 50 MW Delta Wind renewable energy project as an independent power producer on the railbelt electric grid. We are currently actively engaged Page 2 of 3 with wind turbine manufactures to identify the most appropriate turbine technology suitable to operate in the meteorological conditions found at the Delta site while maximizing the recovery of available wind energy. The Delta Wind Project is estimated to cost $135 million and will take a minimum of one year to construct after approval of a power sales agreement. The project will provide a number of benefits to the State of Alaska including expanding the electric generation capacity in the Interior, diversification of generation technologies and fuel sources, locational diversification of generation and associated increased grid reliability, and added long-term power cost stability. The development of this significant renewable energy resource will result in reduced emissions of greenhouse gas and other air pollutants from current and future fossil fueled electric generation, improved access to State land, new local job opportunities, and additional State revenue from lease payments, wind royalties, and corporate taxes. To help finance the final construction and operation of the Delta Wind Project we intend to apply for an Alaska Power Project Loan upon completion of our preferred turbine suitability analysis and approval of a power sales agreement by the Regulatory Commission of Alaska. At this time, however, we have completed a Renewable Energy Fund grant application (enclosure 1) to move forward on the following two tasks that would produce tangible public benefits: 1. $3.0 million for the final environmental and design studies, land lease and ROW acquisition, legal reviews, and power purchase agreement completion, and if this task is successfully completed, 2. $10 million for the construction of the proposed wind farm transmission line and access. We believe this proposal provides an appropriate balance between the State’s interest to invest appropriated grant funds in sustainable renewable energy projects with measurable public benefits and our interest to build, own, and operate a successful project financed largely without scarce grant funds that may be more appropriate to use for hard-to-finance renewable energy projects in rural Alaska. We look forward to working with you and the Alaska Energy Authority to make the Delta Wind Project a success. Page 3 of 3 Sincerely, David Lappi – Member Alaska Wind Power LLC cc: Butch White, AEA Grant Manager