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HomeMy WebLinkAboutThe Four Dam Pool Power Agency Integrated Resource Plan App Physical: 1301 Huffman Rd. Suite 201 ● Anchorage, AK 99515 Mailing: PO Box 110987 ● Anchorage, AK 99511-0987 Ph: 907.258.2281 ● Fax: 907.258.2287 ● www.fdppa.org November 10, 2008 Butch White Grant Manager Alaska Energy Authority 813 West Northern Lights Blvd Anchorage, AK 99503 Subject: Submittal of Application - Renewable Energy Fund Grant Program Dear Mr. White: The Four Dam Pool Power Agency (FDPPA) is pleased to submit the enclosed application for Renewable Energy Grant funding. The proposed use of grant funds is to conduct an Integrated Resource Plan for a soon-to-be interconnected region of Southeast Alaska. The Swan-Tyee Intertie is under construction and completion is scheduled by the end of 2009. With the completion of this Intertie, the communities of Ketchikan, Wrangell and Petersburg will all be interconnected for the first time. In addition, an Intertie connecting the City of Kake to the FDPPA system is in the planning process as well as a potential short interconnection to Metlakatla. The FDPPA is also undergoing a restructuring whereby two of the Agency’s four projects are being transferred or sold back to the member utilities. The FDPPA is a Joint Action Agency organized under State Statute and will remain the same although the name will be changed to the Southeast Alaska Power Agency (SEAPA). This planned restructuring is scheduled to close in January, 2009. SEAPA will remain the owner of the Swan Lake and Tyee Lake hydroelectric facilities as well as associated transmission lines providing Agency power to Ketchikan, Wrangell and Petersburg including the Swan-Tyee Intertie. The FDPPA is currently developing an Operating Plan for the interconnected Tyee Lake and Swan Lake projects. The purpose of this plan is to maximize the use of existing hydroelectric power from these projects through efficient operation and water management. The goal is to eliminate or reduce diesel generation in the interconnected communities to the maximum extent possible. With loads increasing in the communities due to ‘fuel switching’ and other normal growth, more hydroelectric power will have to be developed in the future along with a combination of increased efficiencies and demand side management. This next step, fully described in the grant application, is Integrated Resource Planning. Butch White Grant Manager Alaska Energy Authority Subject: Submittal of Application - Renewable Energy Fund Grant Program Page 2 The FDPPA is requesting $252,000 in Renewable Energy Grant funds, which the FDPPA will match with a $60,000 contribution. The hard-dollar match is in addition to FDPPA staff which will contribute an estimated 500 hours to manage this IRP effort. The FDPPA acknowledges and agrees that this Integrated Resource Planning project and project results are for the benefit of the general public and the FDPPA will not deny any person use or benefit of the project or project results due to race, religion, color, national origin, age, physical handicap, sex, marital status, changes in marital status, pregnancy or parenthood. I serve as the Grantee Project Manager. If you have any questions regarding this submittal, please do not hesitate to call me at (907) 258-2281. Thank you for your consideration of this grant application. Sincerely, Eric Wolfe, PE Director of Special Projects Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 1 of 17 9/2/2008 http://akenergyauthority.org/RE_Fund.htmlApplication Forms and Instructions The following forms and instructions are provided for 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.html The following application forms are required to be submitted for a grant recommendation: Grant Application Form GrantApp.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 Costworksheet.doc Summary of Cost information that should be addressed by applicants in preparing their application. Grant Budget Form GrantBudget.xls A detailed grant budget that includes a breakdown of costs by task and a summary of funds available and requested to complete the work for which funds are being requested. Grant Budget Form Instructions GrantBudgetInstr.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 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. • 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. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 2 of 17 9/3/2008 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) The Four Dam Pool Power Agency Type of Entity: Joint Action Agency Mailing Address P.O. Box 110987 Physical Address 1301 Huffman Rd, Ste 201 Telephone (907) 258-2481 Fax (907) 258-2287 Email www.fdpa.org 1.1 APPLICANT POINT OF CONTACT Name Dave Carlson Title Chief Executive Officer Mailing Address P.O. Box 110987 Anchorage, AK 99511-0987 Telephone (907) 258-2281 Fax (907) 258-2287 Email dcarlson@fdppa.org 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); 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 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.) Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 3 of 17 9/3/2008 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. This project is a combination of reconnaissance, resource assessment, and feasibility analysis. The deliverable resulting from the expenditure of grant and matching funds is the first Integrated Resource Plan (IRP) for the future interconnected cities of Ketchikan, Wrangell, and Petersburg (the cities). These cities will be connected via the Swan-Tyee Intertie transmission line which is currently under construction and scheduled for completion by the end of 2009. The IRP will also include the nearby communities of Kake and Metlakatla as transmission links to these communities are currently in the planning process. 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. An integrated resource plan (IRP) identifies the future resource portfolio that achieves a set of objectives that have been established by stakeholders of the IRP process. The resource portfolio is a set of supply-side and/or demand-side improvements that eliminate any identified energy or capacity deficits. Supply side improvements would be new generation construction, or modifications to existing generation assets such that energy production or available capacity is increased. Demand side improvements are system efficiency improvements or peak load modification measures. Stakeholders include concerned citizen groups, commercial and industrial customers, utility or city government officials, and representatives of state agencies. The stakeholders and the IRP issuing body (The Four Dam Pool Power Agency, FDPPA) establish the objectives that govern how the resource portfolio is established. Most IRP objectives are governed by the 3 major categories of cost, risk, and environmental impact. The IRP process includes stakeholder input with final content decisions made by the issuing body (FDPPA). A note on restructuring: The FDPPA is also undergoing a restructuring whereby two of the Agency’s four projects are being transferred or sold back to the member utilities. The FDPPA is a Joint Action Agency organized under State Statute and will remain the same although the name will be changed to the Southeast Alaska Power Agency (SEAPA). This planned restructuring is scheduled to close in January, 2009. SEAPA will remain the owner of the Swan Lake and Tyee Lake hydroelectric facilities as well as associated transmission lines providing Agency power to Ketchikan, Wrangell and Petersburg including the Swan- Tyee Intertie. Developing an IRP requires an analysis of the regions generation and transmission system, and an estimation of the regions load growth. Generation and load forecasts are modeled to determine when and to what extent future energy and/or capacity deficits occur. Energy and capacity deficits are resolved by a combination of constructing new generation facilities, and through load growth rate or peak hour value reduction via demand side management. The IRP then documents a short term and long term plan to address the energy and capacity deficits. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 4 of 17 9/3/2008 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 total budget for the IRP project is $312,000 with $60,000 contributed by the FDPPA, and an assumed AEA grant amount of $252,000. FDPPA’s contribution is entirely direct funds with no in- kind funds proposed. Of the total, $40,000 is for load research equipment and inflow metering, $268,000 for contractual services (consultants), and the remaining $4000 budgeted for managerial travel expenses associated with project management services. IRP Budget ($1000's) FDPPA FDPPA FDPPA AEA Total Task dir. exp Contractor Total Grant Creation of Advisory Panel 0 Creation of Plan Criteria 0 Creation of Resource Portfolio Objectives 0 Analysis of Existing System 2 18 20 2 22 Analysis of future systems 3 8 11 23 34 Forecast Load Growth 0 8 8 48 56 Forecast Inflow Levels 0 8 8 42 50 Determine Reserve Criteria 0 1 1 0 1 Determine Energy and Capacity deficits 2 2 10 12 Conduct Resource Portfolio Feasibility Studies 3 3 80 83 Perform Economic Analysis 1 1 2 32 34 Summarize Findings, write Report 5 5 15 20 Totals 6 54 60 252 312 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 5 of 17 9/3/2008 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. The primary benefit of an Integrated Resource Plan (IRP) is involvement of the public stakeholders in the vitally important electrical system planning process. Integration is done on two planes: 1. Integrating public policy with utility technical expertise 2. Integrating generation, transmission, and distribution planning This integration ensures the regional system is planned to meet stakeholder objectives. Using a regional IRP process prevents expensive, stranded asset formation and ensures the opportunity for continued growth for all communities in the region. Planning is performed on two levels, a short term (next 5 years) plan, and a long term plan that identifies longer lead time issues such as new hydro asset construction. Additionally, if a system wide efficiency gain of just .5% is achieved; diesel fuel consumption will be reduced by 75,000 gallons (based on generation of 225,000 MWh annually and a heat rate of 15 gal/kWh). The other over-riding goal is to reduce regional diesel generation to a reserve role, and move all primary generation to renewable resources. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 6 of 17 9/3/2008 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.) $ 312,000 2.5.2 Grant Funds Requested in this application. $ 252,000 2.5.3 Other Funds to be provided (Project match) $ 60,000 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $ 312,000 2.5.5 Estimated Benefit (Savings) $ 150,000 annually 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.) $ the IRP will identify public benefit 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. Over-all IRP project management and coordination of IRP tasks will be supplied by the FDPPA. The bulk of the analysis effort and some of the IRP project management, at the task level, will be provided by contractors (consultants). Eric Wolfe, a FDPPA employee and current Director of Special Projects, will be the IRP Project Manager. Mr. Wolfe has 20 years of utility engineering and management experience. Mr. Wolfe has advised utilities on; hydro turbine and hydroelectric plant sizing, lost revenue effects resulting from relicensing mitigation, forward production and cost estimates, and system operations. As part of Idaho Power Company’s Planning Group, Mr. Wolfe contributed to the IRP effort, managed the implementation of decision support software, and supplied the Planning Group’s marketing arm with term and day-ahead buy/sell volumes. Mr. Kevin Cooney of Summit Blue Consulting will manage portions of the project concerning load forecasting, demand side management, and portions of the portfolio feasibility studies. Mr. Cooney has 20 years of experience in the electric utility sector, primarily as a consultant. His areas of expertise include but are not limited to renewable energy evaluation, energy efficiency program evaluation, and IRP process management. Economic analysis tasks and economic analysis sub-tasks will be managed by Mr. John Heberling of D. Hittle Associates. Mr. Heberling has over 25 years of experience consulting to electric utilities in the fields of electric utility finance, rate structure, and cost evaluation. References for the project management team can be obtained by review of the enclosed resumes of Attachment A. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 7 of 17 9/3/2008 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 initial phase planning tasks, such as the formation of the advisory panels, creation of the plan criteria, and the creation of the resource portfolio objectives will not require AEA funds, thus these tasks can start before FY 2010. The bulk of the project takes place during the 3rd and 4th quarter of 2009. The target date for issue of the draft IRP is June 2010. A Microsoft Project schedule with task ID, durations, predecessor criteria, and end dates is enclosed in the Attachments. 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. The key tasks for the IRP process are listed below and a Gantt chart of the project is listed in the Attachments. 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. The primary personnel of this project will be consultants with previous IRP experience. Within task levels engineering consultants will be utilized. Potential engineering consultants will be evaluated on the basis of their previous knowledge and work history regarding the task at hand. Any consultants with both the appropriate experience and previous work history in Southeast Alaska hydropower will be given preference. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 8 of 17 9/3/2008 Equipment, Load Forecast: The on-going exchange from oil fired boilers to electric element water heating will cause both a step change in the load curve as well as a shape change. The step portion occurs during the first couple of years during the exchanges. The shape change means more electrical demand for the same weather condition will occur in the future even though the number of households or businesses could have remained constant. Small inexpensive digital devices mounted on electric meters can quantify the difference between similar households with and without oil fired boilers use. At this time we do not know the appropriate number of devices, or if devices are absolutely necessary, but the budgetary provision for physical measurement should be made. Equipment, Inflow Forecast: It is quite possible streamflow measurement or weather stations may have to be added at strategic locations in the region. Additionally, existing sites may need communication or upgrade improvements. Other Resources: Numerous feasibility studies for individual projects have been previously completed and submitted to the Alaska Energy Authority. These studies will be carefully reviewed to eliminate any duplication of efforts. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Advisory Council meetings will be web based to keep travel time and travel costs to a minimum. The project manager(s) will submit quarterly progress reports to AEA, and to the advisory council, and the general public will have access to documentation either from an established ftp site or from a new web page. The AEA should have representation on the Advisory Council and casual periodic communication between AEA and the FDPPA is expected. 3.6 Project Risk Discuss potential problems and how you would address them. There is very limited to no physical or financial risk with producing an IRP. 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. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 9 of 17 9/3/2008 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 IRP at this time is thought to have the following main tasks: • Creation of Advisory Council • Creation of Planning Criteria Planning criteria examples include; what percentile inflow and what percentile load forecast should be used for energy and capacity analysis, what planning horizon should be used such as 10 or 20 years, and how often the IRP should be updated such as every 2 years or sometimes up to 5 years. • Creation of resource portfolio objectives Resource portfolio objectives are typically a combination of reliability, cost, risk, and environmental constraints. Cost concerns are expressed or measured through wholesale tariff or consumer rate increase limits, risk is expressed ultimately by rate or bond costs, or through stand-by or second tier generation costs, and environmental concerns are expressed by state or federal pollution limits, the desire for green tag income, or through a community willingness to implement a more environmentally oriented energy policy. Resource objective implementation examples: - the stipulation that new resources must be renewable or a stated percentage renewable - the inclusion of demand side management - the inclusion of transmission upgrade/efficiency improvements - resource portfolio over-all cost expressed in consumer rate increase • Forecast load growth • Forecast inflow levels and durations Generation systems comprised predominantly of hydroelectric assets require inflow forecasts to predict future generation capability. • Determine future reserve criteria • Analysis of existing system Compile historic generation records, reliability estimates, and infrastructure reports previously documented such that future generation estimates can be made. Build a generation and transmission model such that existing and proposed facilities can be analyzed. • Determine energy and capacity deficits • Conduct resource portfolio feasibility studies • Analysis of Future System • Perform economic analyses This analysis condenses the portfolio options into a single cost criteria such as $/kWh or in terms of general rates. The single cost value is then incorporated into an over-all cost benefit analysis that includes reliability of service, environmental benefit, and community enhancement • Summarize findings into short term and long term plans, compile and distribute IRP Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 10 of 17 9/3/2008 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 existing energy system. Source: AK-BC Intertie Feasibility Study Hatch Acres, 2007 Existing Generation Diesel Hydro Average Hydro capacity Capacity Energy Site MW MW MWh Metlakatla 3.3 4.9 16,100 Ketchikan 15 12.3 69,600 Swan Lake - 22.5 78,275 Tyee Lake - 22.5 116,800 Wrangell 8.1 - - Petersburg 10.1 2.0 10,400 Kake - - - 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. During the winter of 2007 and 2008 Ketchikan Public Utilities (KPU) generated significant energy using diesel engines to meet demand. Low inflows into their hydro projects and into FDPPA’s Swan Lake reduced hydro output thus forcing a long period of diesel generation. In the next few years this condition will be avoided as additional hydro generation, not previously available, will be available to KPU from Tyee over the newly completed Intertie. As Wrangell and Petersburg loads grow, less and less Tyee generation will be available to KPU (explained in Section 4.2.3). Future load - generation balance levels are difficult to estimate as load growth is uncertain and thorough hydrologic records are not available. This leads into the purpose of an IRP. The fundamental purpose of the IRP is to project future energy and capacity shortfalls, and after identifying the shortfalls suggest the most cost effective alternatives that also meet the criteria established by the Advisory Council. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 11 of 17 9/3/2008 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Rates and Agreements The Four Dam Pool Power Agency (FDPPA) is undergoing restructuring as a result of the sales of Terror Lake and Solomon Gulch hydroelectric projects. The restructured agency, The Southeast Alaska Power Authority (SEAPA) will own Tyee and Swan Lake generation projects, as well as transmission lines connecting the cities of Petersburg, Wrangell, and Ketchikan. Energy sales from SEAPA to Southeast municipalities will be in accordance with a new Power Sales Agreement (PSA) which at this time is under negotiation. Terms of this agreement identify generation from Tyee Lake (Tyee) and Swan Lake (Swan) as dedicated, additional dedicated, and excess or surplus. Tyee dedicated generation means the output is first dedicated to the cities of Petersburg and Wrangell, the next portion of energy available, additional dedicated, can be imported by Ketchikan via the new Swan-Tyee Intertie. Any available energy in excess of the dedicated and additional dedicated amounts can be sold as non-firm excess at an interruptible rate. Output from Swan has the same classifications except the dedicated portion is held by Ketchikan, and additional dedicated amounts are held by Petersburg and Wrangell. The dedicated and additional dedicated rate is $69/MWh. Non-firm sales rates are negotiable. There is no charge for voltage support or capacity under the existing PSA. Municipal Loads Load Peak MWh MW Ketchikan 152,160 28.9 Petersburg 38,949 8.81 Wrangell 20,571 - Kake 2,974 - Metlakatla 14,500 - 2006 Municipal Loads Source: AK-BC Intertie Feasibility Study Hatch-Acres Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 12 of 17 9/3/2008 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 Future systems will continue to be a mix of Hydroelectric (primary) and diesel electric (reserves) generation facilities. The potential for new transmission lines to capture new resources as well as connect stranded communities exists. Renewable sources such as wind and tidal generation will be evaluated, and demand side measures that help reduce peak hour load or reduce consumption will be evaluated. The term demand side measure may be new for some readers so a partial list of demand side measures is shown below. • Remote control feeder operation for interruptible loads • Retail and Commercial Housing improvements such as insulation credits, building code modifications, CFD lighting benefit, and automated heating controls for peak hour demand reduction. • Transmission line or distribution efficiency improvements 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. No land ownership issues with this project. 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 No permits with this project. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 13 of 17 9/3/2008 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 No environmental issues with this project. 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 All estimated costs for preparing and issuing the IRP were listed in Section 2.3 Project Budget Overview. 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 All estimated costs for preparing and issuing the IRP were listed in Section 2.3 Project Budget Overview. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 14 of 17 9/3/2008 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 Not applicable to the IRP project. 4.4.4 Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Download the form, complete it, and submit it as an attachment. Document any conditions or sources your numbers are based on here. A cost worksheet form has been completed to the extent applicable for a grant to issue an IRP. Many of the items in the form, regional generation, load, sales, and the appropriate development of renewable generation will be addressed by the IRP, and cannot be stated at this time. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 15 of 17 9/3/2008 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. Not Applicable to IRP process. 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project development work. During the IRP process, economic analyses by utilities in the region will be reviewed. These reviews are intended to make the economic evaluation within the IRP consistent with previous works. If no consistency can be achieved, the reasons for the inconsistencies will be documented. 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 An integrated resource plan (IRP) identifies the future resource portfolio that achieves a set of objectives that have been established by stakeholders of the IRP process. The resource portfolio is a set of supply-side and/or demand-side improvements that have been approved by the public and thus a general understanding of loads, resources, and the resulting rates is gained. Stakeholders include concerned citizen groups, commercial and industrial customers, utility or city government officials, and representatives of state agencies. Including non-economic measures such as environmental concerns and social benefit assures the general public will benefit though a well researched and documented process. The IRP reduces the chance of stranded asset construction and provides the list of alternatives based on cost, risk, and environmental impact. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 16 of 17 9/3/2008 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 Provide a narrative summary regarding funding sources and your financial commitment to the project. Estimated consultant fees were based on a rough estimate for project scope. The IRP effort was estimated to be significantly less than the effort expended by Northwest Utilities. The assumption of reduced effort was based on the reduced complexity of load and generation resources, the lack of a connected market or markets, and the lack of complex transmission evaluations. Planning managers at Avista, Idaho Power, and Seattle City Light were consulted for broad scope discussions and feedback concerning the IRP effort. Examples of these Northwest Utility IRP reports are stored on the FDPPA’s ftp site and can also be downloaded from the utility web sites. The Four Dam Pool Power Agency will commit $60,000 to the IRP effort. The project total cost is estimated at $312,000. In addition to the cash commitment, FDPPA is volunteering staff time to over-see and manage this project. Renewable Energy Fund ALASKA ENERGY AUTliORITY Grant Application 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. 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 DAu~P -e.. .C-.A ~ LS.~~ Signature ~j ­ Title C)\=~~c...~G~\&i= ~~~ Date \\ ~\~ I~'S AEA 09-004 Grant Application Page 16 of 16 9/3/2008