HomeMy WebLinkAboutVictor Creek Round 2 AEA Grant Application
6921 Howard Ave, Anchorage, Alaska 99504
Alaska Energy Authority
AEA-09-004-Renewable Energy Grant Application
813 West Northern Lights Boulevard
Anchorage, AK 99503
November 10, 2008
Subject: Round II Grant RFA, Kenai Hydro, LLC
Dear Alaska Energy Authority,
Alaska Wind Energy, LLC, dba Wind Energy Alaska, is a partnership of Cook Inlet
Region Inc and a major renewable energy developer, enXco Development Corp. Wind
Energy Alaska has partnered with Homer Electric to form Kenai Hydro, LLC. Wind
Energy Alaska is the manager of Kenai Hydro under the terms of that entity’s governing
documents, and therefore is submitting this application on its behalf.
Kenai Hydro appreciates the opportunity to present the enclosed AEA-09-004-Renewable
Energy grant application for partial funding for the study of the Victor Creek low impact
hydro electric generation project on the Kenai Peninsula. Hydro project studies require a
rigorous set of studies and grant funds help with the upfront costs associated with this
work. The project represents an important opportunity for the community to reduce
electric costs over the long term while diversifying the energy mix for Alaskans on the
Kenai Peninsula.
Thank you for this opportunity. Please feel free to contact me with questions.
Best Regards
Steve Gilbert
Manager, Alaskan Projects
enXco Development Corp
(907) 333-0810
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 1 of 21 9/2/2008
Application 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
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SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Kenai Hydro, LLC
Type of Entity:
Independent Power Producer
(A joint venture among Homer Electric Association, Inc., enXco, and Cook Inlet Region, Inc.)
Mailing Address
2525 C Street, Suite 500, Anchorage, AK 99503
Physical Address
Same
Telephone
907-333-0810
Fax
None
Email
SteveG@enxco.com
1.1 APPLICANT POINT OF CONTACT
Name
Steve Gilbert
Title
Manager
Mailing Address
6921 Howard Avenue, Anchorage, AK 99504
Telephone
907-333-0810
Fax
None
Email
SteveG@enxco.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)
An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
X An independent power producer, or
A local government, or
A governmental entity (which includes tribal councils and housing authorities);
Yes
1.2.2. Attached to this application is formal approval and endorsement for its project by
its board of directors, executive management, or other governing authority. If 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
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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.
The proposed project is a run-of-river hydroelectric facility that would utilize the water resources
of Victor Creek near Lawing, Alaska just south of Moose Pass, Alaska.
This application seeks funding to assist in “Phase 1” Reconnaissance Studies. If the project
successfully passes the reconnaissance level study and grant funding remains available, the
project would seek future grant funds in support of further phases of project development.
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.
The proposed Victor Creek hydro project could produce up to 5-MW and would be located near
Lawing, Alaska just south of Moose Pass, Alaska (see the map below produced by HDR Alaska,
Inc.). Kenai Hydro seeks to develop the project in compliance with current low impact hydro
guidelines and practices. The scope of this project will look at the Victor Creek project as a
stand-alone hydroelectric facility. Power from the project would be available to customers of
Homer Electric Association and other areas served by the existing Railbelt transmission grid.
Kenai Hydro, LLC (KHL) is a partnership among Homer Electric Association, Inc. (HEA), enXco
and Cook Inlet Region, Inc. (CIRI) that was formed for the purpose of evaluating and developing
low impact hydroelectric facilities.
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Grant Application
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Renewable Energy Fund
Grant Application
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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.
It is estimated that $110,400 in funds are needed to complete a Phase 1 study of the Victor
Creek project. Kenai Hydro anticipates that Alaska Energy Authority (AEA) would provide 80%
of this amount, or $88,320.
Phase 1 funds will initially be drawn from a combination of grant funding as well as internal
financing. Kenai Hydro, LLC is committed to providing the 20% matching funds in cash, as well
as the in-kind match for the cost of management and administrative staffing. The in-kind match
is estimated as 1-each Full Time Equivalent for a 7-month duration or approximately
$106,773.33.
PROJECT COST SUMMARY
The preliminary total cost estimate for the project through construction is $19,860,400. This
estimate includes a $16,250,000 capital cost (based on a 5-MW project at an estimated
$3,250/kW) and an estimated $3,610,400 for development costs.
Description
Preliminary
Cost Estimate
% of Overall
Cost
Phase 1 Reconnaissance 110,400$ 0.6%
Phase 2 Resource Assess/Feasibility Analysis/Concept Design 1,500,000$ 7.6%
Phase 3 Final Design & FERC Licensing 2,000,000$ 10.1%
Phase 4 Construction & Commissioning 16,250,000$
Total Preliminary Cost Estimate 19,860,400$
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 power from the proposed project would reduce consumption of non-renewable carbon-
based energy sources, thereby helping to improve air quality in Kenai Peninsula Borough. The
renewable energy will also serve to incrementally stabilize the long term price of power to
consumers. The project is an important step toward diversifying HEA’s future generation
portfolio.
In 2008 dollars, it is estimated that over $29,000,000 can be saved in avoided fuel cost over a
50-year period. This represents a tremendous value to the rate payers of Alaska and a
generation asset that will continue to produce clean, renewable power for Alaskans over the
next century.
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.)
$19,860,400
2.5.2 Grant Funds Requested in this application. $88,320
2.5.3 Other Funds to be provided (Project match) $22,080
2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $110,400
2.5.5 Estimated Benefit (Savings) $29,000,000
2.5.6 Public Benefit (If you can calculate the benefit in terms of
dollars please provide that number here and explain how
$ TBD
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Grant Application
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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 entity, state that in this section.
Mr. Steve Gilbert (enXco) will oversee the development of this project with the assistance of Mr.
Brad Zubeck (HEA). Their brief professional biographies are attached in Section 7, Attachment
A as requested.
These individuals have the guidance, support and staffing of their parent organizations for
managing this project from its current state through design, construction and operation. Where
needed, Kenai Hydro, LLC will contract with qualified firms and consultants to conduct the
engineering, studies and detailed design associated with the project.
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.)
Please refer to the Gantt chart below showing the proposed schedule for Phase 1 activities. In
general, the project would be initiated in May 2009 with an initial site visit. If the project
continues past the initial milestone, the remaining tasks would be completed over the summer
and early fall 2009, culminating in a final reconnaissance report in November 2009.
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Grant Application
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3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them.
Milestone #1 is proposed after the initial engineering site visit and screening of the project for
any “fatal flaws”. If the project passes the initial engineering review and appears otherwise
viable, the remaining tasks will be undertaken on a task order basis as described herein. The
initial site visit will be accomplished as early as possible in the Spring of 2009.
Milestone #2 is the receipt and review of the final reconnaissance report. A decision about
whether or not to continue to pursue the project will be made in part upon the findings contained
in this report. The reconnaissance report will be expected once Victor Creek has frozen-up and
routine stream gaging data collection is terminated for the season, possibly November 2009.
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.
Mr. Steve Gilbert (enXco) and Mr. Brad Zubeck (HEA) will be responsible for management and
direct oversight of the project development. These individuals have the support and staffing of
their parent organizations for managing this project from its current state through design,
construction and operation.
Kenai Hydro, LLC (KHL) is a partnership among Homer Electric Association (HEA), enXco and
Cook Inlet Region, Inc. (CIRI) that was formed for the purpose of evaluating and developing low
impact hydroelectric facilities. Where needed, Kenai Hydro, LLC will contract with qualified firms
and consultants to conduct the engineering, studies, permitting, process management and
facilitation associated with the project.
Based on their recent FERC relicensing performance with the Cooper Lake hydro facility, Long
View Associates (LVA) may be hired to prepare a FERC preliminary permit application. LVA is
likely to be used again in various capacities on this project, such as permitting or FERC license
application management.
Kenai Hydro interviewed prospective engineering firms and decided upon HDR Alaska, Inc.
(HDR) to provide engineering and consulting services for the reconnaissance phase of this
project. HDR is currently under contract and can provide these services on a Task Order basis.
HDR is a nation-wide engineering firm with a full-service office located in Anchorage, Alaska.
HDR Alaska, Inc. has a long history in this State and offers a full spectrum of engineering,
planning, and environmental services.
An organizational chart is provided below representing the general tasks and planned
assignments.
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Grant Application
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3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
The project manager will issue reports on a mutually agreeable schedule throughout the life of
the grant. These reports can be customized to meet AEA reporting requirements. Our
expectation is that these reports could be kept to a one page summary document on a quarterly
basis. Significant events, such as milestone decisions, will be detailed in the reports, possibly in
the form of attachments. The project would also expect to process requests for reimbursement
on a monthly basis.
3.6 Project Risk
Discuss potential problems and how you would address them.
The following is a list of potential risks and the steps that Kenai Hydro is taking to mitigate them:
1. Victor Creek is a run-of-river facility with no storage capacity. There is a risk that the water
resource is not as reliable as desired. Kenai Hydro will be performing hydrologic studies in
Phase 1 that will prove out preliminary assumptions.
2. Another entity files for a FERC preliminary permit before Kenai Hydro, LLC.
Kenai Hydro, LLC expects to file a preliminary permit application as soon as the initial site
assessment is performed and it is confident that the site warrants further study.
Kenai Hydro, LLC
(HEA, enXco, CIRI)
Steve Gilbert, Manager
Brad Zubeck, Project
Engr
Feasibility Study
HDR
Todd Bethard, Bob Butera,
Paul McClarnon, Mark Dalton
FERC Process
FERC Licensing
Manager
To Be Determined
Stakeholder
Meetings
HDR, LVA,
Subcontractors as
needed
Support Staff
Accounting, Finance,
Technical Resources
from KHL Partners: HEA,
enXco & CIRI
Land Use & Leases
HDR, Subcontractors as
needed
Permitting
HDR, LVA, other
Subcontractors as
needed
Environmental &
Field Studies
HDR, Subcontractors as
needed
Engineering Design
HDR, Subcontractors as
needed
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SECTION 4 – PROJECT DESCRIPTION AND TASKS
• Tell us what the project is and how you will meet the requirements outlined in Section 2 of
the RFA. The level of information will vary according to phase 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.
PROJECT TASKS
TASK 1 - Initial Site Assessment
A field investigation of the site is needed to make an initial engineering determination as
to whether or not the project is viable and to screen the site for any “fatal flaws.” The site
assessment will propose an optimum concept layout and any alternates. A brief literature
review may be conducted as part of this task. Assuming the project passes this initial
hurdle (Milestone #1), it would continue on with subsequent tasks as described below. If
the project is viable and the project proceeds with subsequent Tasks, a FERC
Preliminary Permit will be filed. A consultant may be used to prepare the preliminary
permit application.
TASK 2 - Estimate Power Potential
This task will estimate the gross energy available from Victor Creek for the concept
layouts developed in Task 1. As part of this task, plant characteristics will be developed
along with assumptions about instream flows. The flow assumptions will be verified by
stream gaging proposed in a subsequent task.
TASK 3 – Estimate Project Cost
A reconnaissance level cost estimate for the concept layouts developed in Task 1 will be
prepared.
TASK 4 – Research Land Ownership & Water Rights
Land ownership and water rights will be investigated for the proposed concept layouts.
Other land issues, such as mining claims, will also be investigated. Transmission line
right-of-way acquisition and lease estimates may also be prepared as part of this task.
TASK 5 – Initial Environmental & Regulatory Review
Agencies and Non-Governmental Organizations (NGOs) will be contacted to determine
what concerns or issues might be raised over this project. This interaction will help refine
the project concept and help estimate the cost of any potential mitigation. These contacts
will also help develop field study plans for gathering further information.
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Grant Application
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TASK 6 – Stream Gaging
Appropriate permits will be obtained prior to data collection. Instream flow data will be
collected as needed for Victor Creek. The flow data will continue to be collected and
reported as long as the project remains viable.
TASK 7 – Reconnaissance Report
A summary of all the Phase 1 tasks described above will be prepared in the form of a
reconnaissance report (Milestone #2). This report will make recommendations on further
effort required and propose a schedule for future work and FERC licensing.
PROPOSED ENERGY RESOURCE
Quantifying the energy potential for this site will be the subject of the work funded by this
grant application. At this time, Kenai Hydro speculates that up to 5-MW of power, or as
much as 21.9-GWh annually, might be available from this project.
Pros & Cons
Hydropower is renewable, long-lived, efficient, dispatchable and environmentally
responsible energy that emits no greenhouse gases, wastes or air pollution. It uses
readily available existing technologies, is low maintenance and displaces consumption of
fossil fuels. It provides long-term stability in the price of power to consumers.
Disadvantages of hydropower include high initial cost, relatively long time required to
permit/license, potential impact on habitats and water quality.
By contrast, the most expedient alternative solution to our local energy needs is to
construct natural gas-fired generation. Relative to hydropower, these units are
inexpensive to procure and install, require a much shorter time to permit, and have a
relatively small footprint. On the negative side, gas-fired units emit greenhouse gases,
are not sustainable, are subject to market-driven fuel pricing and availability, are shorter
lived, and cost more to operate and maintain than hydropower units.
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 proposed project is intended to provide one piece of the future energy needs of Homer
Electric Association. HEA currently purchases most of its energy from Chugach Electric
Associate (CEA). This contractual purchase of power will continue until 2014, at which time its
contract with CEA expires and HEA plans to independently provide for its own generation
requirements.
The following is a current list of HEA’s generation assets:
Unit Description Size Date Installed Fuel Type
Nikiski Plant 39.0 MW ~2000 Natural Gas,
Simple Cycle
Bradley Lake* ~11.0 MW ~1992 Hydro
Totals 50.0 MW -- --
* This is HEA’s share of Bradley Lake’s 120 MW capacity.
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HEA’s average load is approximately 60-MW, with its peak load near 85-MW. For HEA to be
independent beyond 2014, it needs to construct enough new generation capacity to provide for
the difference in its current load and that anticipated in years to come, plus spinning reserve. In
short, HEA needs to double its current generation capacity.
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.
As noted in the section above, HEA is challenged with developing new generation assets to
meet the needs of it customers beyond 2014. This requires that HEA nearly double its current
generation capacity.
Approximately eighty percent (80%) of the existing generating capacity relies on natural gas as
the fuel source. HEA seeks to diversify its generation portfolio beyond 2014 and reduce its
reliance on natural gas. Part of this diversification is to develop renewable generation resources
to fulfill future needs. The proposed project represents approximately five percent (5%) of HEA’s
future generation need. It would be a significant step toward both providing for HEA’s future
generation capacity as well as adding renewable energy to its portfolio.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
The primary market for the energy from this project is the customers of HEA. The secondary
market is other Railbelt utilities. A potential market also exists for selling Renewable Energy
Credits to utilities at large looking for means to offset fossil-fuel generation to comply with various
Renewable Energy Standards or Policies.
This project will have the following positive impacts on the existing energy system and its
customers:
1. Provide approximately five percent (5%) of HEA’s immediate generation needs from
clean, renewable hydropower.
2. Incrementally stabilize the long-term price of power.
3. Offset and reduce greenhouse gas emissions.
4. Improve consumer confidence in its utility leadership and management.
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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
Phase 1 will investigate the feasibility of constructing an intake structure to divert water from
Victor Creek to a powerhouse. The proposed run-of-river project would have a gravity feed
intake located approximately 1 - 2 mi upstream of the creek’s confluence with the Kenai Lake.
The Victor Creek watershed is about 12.5 mi2 and has an estimated average annual flow of 70
cubic feet per second (cfs). The project could potentially generate power with up to +/- 1,000-ft of
head and have a gross generation capacity of up to 5.0 MW. However, because of the desire to
capture more of the watershed’s runoff, an intake may be sited at a lower elevation resulting in a
lower potential head differential. The powerhouse tailrace would be designed to carry the project
flow back into Victor Creek or Kenai Lake. The dimensions of the tailrace would be developed
based on terrain and other pertinent information to be obtained during the study phase.
The project would include approximately 0.5 - 1 mile of new overhead transmission line
employing one of two potential transmission options: 1) power generated at the powerhouse at
low voltage would be transmitted to a remote transformer, where it would be converted to 115 kV
and connected to the existing transmission grid or 2) power generated at the project would be
transmitted directly to the grid from a step-up transformer near the powerhouse.
Fish habitat is not expected to be a barrier to development on Victor Creek. The stream is not
identified as anadromous and it does not appear to be hosting any fish species at this time.
Phase 1 funds will facilitate engineering and field studies to further refine design concepts and
alternatives.
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.
Study of the land ownership and other related issues, such as water rights or mining interests,
will be the subject of work funded under this Phase 1 grant application.
The primary land holder in the area is the USDA Forest Service. Several private parcels are
located adjacent to Victor Creek near the mouth at the Seward Highway. However, it is expected
that the powerhouse and other facilities would be located upstream from these private parcels
and the transmission line right-of-way (ROW) shown on the map of the mouth of Victor Creek
below.
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The map above shows the outlet of Victor Creek in to Kenai Lake. The Seward Highway and
existing transmission line ROW is noted for reference. Section lines are also depicted above to
give the reader a sense of scale. State and Federal mineral and water rights claims are also
depicted in the figure above.
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The map below shows privately owned parcels in green. Federal government owned parcels are
shown in yellow.
4.3.3 Permits
Provide the following information is 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
A comprehensive listing of permits will be developed during Phase 1 work as a part of the scope
included in this grant application. Phase 1 efforts may include preliminary applications for
permits. This work will be accomplished during 2009. A preliminary list of permits is provided
below:
• USDA Forest Service, Special Use Application (SUA)
• Transmission Line Right-of-Way, lease or purchase agreements
• ADNR, Water Rights
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4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will
be addressed:
• Threatened or Endangered species
• Habitat issues
• Wetlands and other protected areas
• Archaeological and historical resources
• Land development constraints
• Telecommunications interference
• Aviation considerations
• Visual, aesthetics impacts
• Identify and discuss other potential barriers
Nearly all of the issues listed in 4.3.4 above will be considered and addressed during the Phase
1 studies that would be funded by this grant request. Some of these issues will be reviewed
during the Phase 1 consultations with the stakeholder groups and agencies.
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
Phase 1 Reconnaissance
This grant application is for funds to support Phase 1 reconnaissance level studies and work.
The cost of this phase is fairly well understood and is based on previous cost estimates provided
by consultants for similar small hydro reconnaissance studies. Phase 1 is currently scheduled to
be completed in 2009 and should cost approximately $110,400. Kenai Hydro requests as part of
this application that AEA provide 80% of this amount, or $88,320.
Phase 1 funds will initially be drawn from a combination of grant funding as well as internal
financing. Kenai Hydro, LLC is committed to providing the 20% matching funds in cash, as well
as the in-kind match for the cost of management and administrative staffing. A 1.0 Full Time
Equivalent (FTE) is projected for the management and administration of Phase 1. The estimated
value of the 1.0-FTE is $106,773.33 over a seven (7) month period of the Phase 1 request and
will be an in-kind match by Kenai Hydro, LLC.
Phase 2 Resource Assessment, Feasibility Analysis and Concept Design
The cost of the Phase 2 work can only be roughly estimated at $1,500,000 at this time. This cost
is approximately 7% to 8% of the overall project cost. Phase 2 will not be initiated until the
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project has successfully completed the Phase 1 milestones and further funding has been
secured.
Phase 3 Final Design & FERC Licensing
The extent of costs associated with the final engineering design work and FERC Licensing are
not well known at this time, but are estimated at $2,000,000, or approximately 10% of the overall
project cost. This work would be the actual final engineering effort to prepare plans and
specifications for construction in accordance with any FERC license requirements, as well as
any follow-up studies or continuing data acquisition.
Phase 4 Construction and Commissioning
The cost of construction and commissioning is conservatively estimated at $3,250/kW or
$16,250,000 for a nominal 5.0-MW plant. Recent costs of construction for similarly sized plants
in remote locations in Alaska have come in at approximately $3,000/kW. It is our hope that this
project might ultimately beat the $3,250/kW cost and improve on this preliminary estimate. For
now, this remains our best conservative estimate and target budget. By the end of Phase 2, we
hope to have a final design concept that will refine the projected construction cost.
Other Funding Sources
As other potential sources of funding become available, Kenai Hydro will pursue them as long as
the project continues to pass successive project milestones and economic and environmental
reviews. No specific alternate sources of funding are known at this time.
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
This grant application is for reconnaissance studies only and not for actual construction or
operation of a facility. No O&M funds are requested as part of this application.
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
Power from the project is intended to be sold to Homer Electric Association (HEA) for the use
and benefit of its customers. HEA is a partner in Kenai Hydro, LLC and the power purchase price
will be the subject of future negotiation amongst the vested parties. It is likely that the acceptable
rate-of-return will be kept to single-digit margins.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 17 of 21 9/3/2008
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.
See the attached Cost Worksheet completed for the proposed Falls Creek project.
Renewable Energy Source
Kenai Hydro speculates that Victor Creek will closely resemble, and even exceed, the flow
regime of Falls Creek. Falls Creek has a drainage basin of approximately 10- to 11-square miles,
compared to Victor Creek at approximately 12.5-square miles. Falls Creek’s average annual flow
is estimated as 70-cfs and data is available from USGS stream gage 15250000, Falls Creek
near Lawing, Alaska.
Proposed System Design
It is estimated that Victor Creek could support an installed capacity of 5-MW. This estimate is
based on its similarity to Falls Creek in terms of its design parameters. The annual energy
production is initially estimated at 21.9-GWh based on the 5-MW installed capacity and a plant
capacity factor of 50%.
Project Cost
This information is presented above in Section 2.3 Project Budget Overview and 4.4.1 Project
Development Cost. Please refer to these sections for the supporting information and rationale.
Project Benefit
Please refer to the attached Benefit Cost Analysis and to the column labeled “Annual Avoided
Cost” to find the figures estimated for fuel displacement.
Project Analysis
Please refer to the attached Benefit Cost Analysis for the assumptions and calculation of the
project Benefit Cost Ratio (BCR).
The cost of construction and commissioning is conservatively estimated at $3,250/kW or
$16,250,000 for a nominal 5.0-MW plant. Recent costs of construction for similarly sized plants
in remote locations in Alaska have come in at approximately $3,000/kW. It is our hope that this
project might ultimately beat the $3,250/kW cost and improve on this preliminary estimate. For
now, this remains our best conservative estimate and target budget.
The Operations & Maintenance (O&M) Cost for the facility is estimated at $5.00/MW. It is KHL’s
experience that O&M costs for hydro facilities ranges between $5- $10/MW. Kenai Hydro. LLC
elected to use the lower estimate for this BCR calculation because of its plan to operate this
plant as an unmanned facility, requiring only periodic physical inspection and scheduled
maintenance.
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.
Two of the three business entities that comprise Kenai Hydro, LLC have experience in operation
and maintenance of power generation facilities. Operation of the proposed facility would be a
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 18 of 21 9/3/2008
natural extension of either HEA or enXco’s core business. HEA currently operates and maintains
the 120-MW Bradley Lake hydroelectric plant and enXco is a nation-wide company that founded
its business on the operation and maintenance of wind generating facilities throughout the United
States.
Should a decision be made to apply for a FERC license, a new business model will be created
and adopted through the vehicle of a Project Development Agreement (PDA). The PDA will
include terms for the construction as well as the future operation and maintenance of the facility.
This agreement will include, at least by reference, a Power Sales Agreement (PSA) between the
facility and HEA.
4.4.6 Analysis and Recommendations
Provide information about the economic analysis and the proposed project. Discuss your
recommendation for additional project development work.
The economic analysis will be refined and updated as better cost information is developed during
the course of the Phase 1 studies. Better understanding of the factors influencing avoided cost,
such as future gas pricing and markets, may also be developed during Phase 1.
Project Analysis
Please refer to the attached Benefit Cost Analysis for the assumptions and calculation of the
project Benefit Cost Ratio (BCR).
The attached analysis estimates the BCR at 1.08. This is intended to be a conservative estimate
that KHL hopes will improve over time and further study of the project.
The cost of construction and commissioning is conservatively estimated at $3,250/kW or
$16,250,000 for a nominal 5.0-MW plant. Recent costs of construction for similarly sized plants
in remote locations in Alaska have come in at approximately $3,000/kW. It is our hope that this
project might ultimately beat the $3,250/kW cost and improve on this preliminary estimate. For
now, this remains our best conservative estimate and target budget.
The Operations & Maintenance Cost for the facility is estimated at $5.00/MW. It is KHL’s
experience that O&M costs for hydro facilities ranges between $5- $10/MW. KHL elected to use
the lower estimate for this BCR calculation because of its plan to operate this plant as an
unmanned facility, requiring only periodic physical inspection and scheduled maintenance.
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
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 19 of 21 9/3/2008
Potential Fuel Displacement
In 2008 dollars, it is estimated that over $29,000,000 can be saved in avoided fuel cost over a
50-year period. This represents a tremendous value to the rate payers of Alaska and a
generation asset will continue to produce clean, renewable power for Alaskans over the next
century.
Anticipated Annual Revenue
The annual revenue is unknown at this time and will be the subject of future negotiations outside
the scope of this grant request.
Potential Additional Annual Incentives
The potential tax credits are purely speculative at this time and will be dependent on the form of
the business entity that takes the project into licensing, construction and operation. This has yet
to be determined.
Potential Additional Annual Revenue Streams
It may be possible to sell Renewable Energy Credits, or “green tags”, from the energy produced
by this project. However, it is too early and speculative to estimate what this revenue stream
might be.
The renewable energy will also serve to incrementally stabilize the long term price of power to
consumers and thereby, attract business to the area.
Non-Economic Public Benefit
The power from the proposed project would reduce consumption of non-renewable carbon-
based energy sources, thereby helping to improve air quality in Kenai Peninsula Borough. The
project is also an important step toward diversifying HEA’s future generation portfolio.
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.
Overview
The total cost of Phase 1 including all State and Local Matching Cash and In-Kind funds is
$217,173.33.
Please refer to this application’s Budget Form for the discussion that follows related to the
source of funds.
State Funds
This application requests $110,400 to complete the activities associated with the Phase 1
Reconnaissance Study of the proposed project. This is to cover all costs other than the Direct
Labor and Benefits of Kenai Hydro, LLC management and administrative staff. It is anticipated
that the State would provide 80% of the $110,400 for Phase 1, or approximately $88,320.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 20 of 21 9/3/2008
Local Match Funds (Cash)
Kenai Hydro, LCC plans to honor a 20% match in cash, or $22,080 of the $110,400 estimated
for Phase 1.
Local Match Funds (In-Kind)
Kenai Hydro, LLC intends to bear the cost of the project management and administrative
staffing. The estimated value of the 1.0-FTE is $106,773.33 over a seven (7) month period of
the Phase 1. This is based on an estimated 1.0 Full Time Equivalents (FTE) at an annual
average burdened rate of $183,040/FTE (i.e., $88/hr).
Nature & Source of Funds
Funds will initially be drawn from a combination of future grant funding as well as internal
financing. As long as the project continues to remain economically and environmentally viable,
the companies that constitute Kenai Hydro, LLC are committed to providing the 20% matching
funds, plus the financial commitment of the managing and administrative staffing.
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.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 21 of 21 9/3/2008
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 Steve Gilbert
Signature
Title Manager, Kenai Hydro LLC
Date November 10, 2008
SECTION 7 – ADDITIONAL DOCUMENTATION SUBMITTED WITH THIS APPLICATION:
LIST OF ATTACHMENTS:
A. Resumes of Applicant’s Project Manager, key staff, partners, consultants, and
suppliers per application form Section 3.1 and 3.4
- Kenai Hydro LLC Key Personnel
- HDR Alaska, Inc. Key Personnel
B. Cost Worksheet per application form Section 4.4.4
C. Grant Budget Form per application form Section 6.
D. Governing Body Resolution per RFA Section 1.4
- HEA Certificate of General Manager
- WEA Letter of Support & Authorization
E. Kenai Hydro LLC Benefit-Cost Analysis Spreadsheet
HDR Alaska, Inc.
Key Personnel Résumés
Renewable Energy Fund
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. The Victor Creek watershed is in close proximity to
Falls Creek, with similar terrain, and its tributary
area is slightly larger than Falls Creek, which has
significant data showing it as a reliable 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 1 grid, leave this section blank)
i. Number of generators/boilers/other Left Blank – System is on Railbelt Grid
ii. Rated capacity of generators/boilers/other
iii. Generator/boilers/other type
iv. Age of generators/boilers/other
v. Efficiency of generators/boilers/other
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor Left Blank – System is on Railbelt Grid
ii. Annual O&M cost for non-labor
c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the
Railbelt grid, leave this section blank)
i. Electricity [kWh] Left Blank – System is on Railbelt Grid
ii. Fuel usage
Diesel [gal]
Other
iii. Peak Load
iv. Average Load
v. Minimum Load
vi. Efficiency
vii. Future trends
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 9/26/08 Page 1
Renewable Energy Fund
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] Left Blank – System is on Railbelt Grid
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
3. Proposed System Design
a) Installed capacity Nominally 5.0-MW
b) Annual renewable electricity generation
i. Diesel [gal or MMBtu]
ii. Electricity [kWh] Approximately 21.9-GWh
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 $16,250,000
b) Development cost $3,610,400
c) Annual O&M cost of new system Approximately $110,000 (It will be an unmanned
facility, with only periodic physical inspections)
d) Annual fuel cost $0
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity
ii. Heat
iii. Transportation
b) Price of displaced fuel Approximately $1.34-million/year in 2016 dollars (when
the project would be on-line producing power).
c) Other economic benefits
d) Amount of Alaska public benefits
RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 2
Renewable Energy Fund
RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 3
6. Power Purchase/Sales Price
a) Price for power purchase/sale This will be the subject of future negotiation.
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio > 1.0, The attached Benefit Cost Analysis estimates the BCR to be
approximately 1.08. This is meant to be a conservative estimate,
but will be the subject of further study and refinement as part of
the effort funded by this grant application.
Payback
Alaska Energy Authority ‐ Renewable Energy FundBUDGET INFORMATIONBUDGET SUMMARY: VICTOR CREEK ‐ PHASE 1 RECONNAISSANCE STUDYMilestone or Task Federal Funds State FundsLocal Match Funds (Cash)Local Match Funds (In‐Kind)Other FundsTOTALSPHASE 1 ‐ RECONNAISSANCE STUDYTask 1 ‐ Initial Site Assessment, Preliminary Permits, Concept Layout$19,200.00$4,800.00$24,000.00Milestone # 1: Initial Site Assessment Report based on field visitTask 2 ‐ Estimate Power Potential$8,160.00$2,040.00$10,200.00Task 3 ‐ Estimate Project Costs$8,160.00$2,040.00$10,200.00Develop preliminary cost estimates for the concept layouts produced in Task 1.Task 4 ‐ Research Land Ownership & Water Rights$4,800.00$1,200.00$6,000.00Task 5 ‐ Initial Environmental & Regulatory Review$19,200.00$4,800.00$24,000.00Conduct stakeholder consultations, develop study plans.Task 6 ‐ Stream Gaging$19,200.00$4,800.00$24,000.00Obtain permits and collect stream flow data to quantify the hydro resource.Task 7 ‐ Reconnaissance Report$9,600.00$2,400.00$12,000.00Milestone # 2: Report summarizing findings from all Phase 1 Tasks and making recommendation for further phase studies leading to FERC licensing.Kenai Hydro, LLC In‐Kind Match$106,773.33$106,773.33TOTALS$0.00 $88,320.00$22,080.00$106,773.33$0.00 $217,173.33Milestone # or Task #BUDGET CATAGORIES:Task 1 Task 2 Task 3 Task 4 Task 5 Task 6 Task 7Kenai Hydro LLC In‐Kind MatchDirect Labor and Benefits $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $106,773.33Travel, Meals, or Per DiemEquipmentSuppliesContractual Services $24,000.00$10,200.00$10,200.00$6,000.00$24,000.00$24,000.00$12,000.00Construction ServicesOther Direct CostsTOTAL DIRECT CHARGES$24,000.00$10,200.00$10,200.00$6,000.00$24,000.00$24,000.00$12,000.00$106,773.33RFA AEA09-004 Budget Form
VICTOR CREEK HYDRO BENEFIT-COST ANALYSISASSUMPTIONS5.0 MW, Power Capacity 6% /Year, Discount Rate 9.6Mcf per MWh for LM2500 Gas-fired Plant50% CAPACITY FACTOR 3%/Year, Cost Escalation for O&M & Gas beyond 20 210,240Mcf, Gas Required for Equivalent Hydro Energy2.5 aMW, Net Capacity 5% /Year, Power Price Escalation8760 Hours Per Year 10% /Year, Cost of Capital21,900,000 kWh, Estimated Annual Power Production 5.00$ /MWh, Estimated O&M Cost3,250.00$ /kW Estimated Construction CostDATE YEARDESIGN & PERMITTING COSTCONSTRUCTION COSTPay PeriodCost of Capital (Interest on Loan) O&M COSTPresent Worth (PW) of Design & Permitting CostsPW of Construction CostPW of Cost of CapitalPW of O&M CostPW of All CostsProjected Price of Gas ($/Mcf)Annual Avoided CostPresent Worth of Annual Avoided CostNet Present Worth = PW Avoided Costs - PW All CostsBenefit Cost RatioPRESENT WORTH (2008) TOTALS($2,743,733) ($10,195,451) ($12,432,657) ($1,729,159)($27,101,000) ($29,339,047) ($2,238,047)1.082008 1 $0 $0 $0 $02009 2 $110,400 $0 $0($98,256)2010 3 $750,000 $0 $0($629,714)2011 4 $750,000 $0 $0($594,070)2012 5 $750,000 $0 $0($560,444)2013 6 $750,000 $0 $0($528,720)2014 7 $500,000 $0 $0($332,529)10.55$ 2015 8 $0 $16,250,000 1 $1,625,000 $0($10,195,451) ($1,019,545)10.73$ $2,255,8752016 9 $0 $0 2 $1,615,121 $109,500($955,988) ($64,813)10.74$ $2,257,978($1,336,493)2017 10 $0 $0 3 $1,604,255 $112,785($895,807) ($62,979)10.68$ $2,245,363($1,253,799)2018 11 $0 $0 4 $1,592,301 $116,169($838,804) ($61,196)10.49$ $2,205,418($1,161,786)2019 12 $0 $0 5 $1,579,153 $119,654($784,790) ($59,464)10.33$ $2,171,779($1,079,308)2020 13 $0 $0 6 $1,564,689 $123,243($733,587) ($57,781)10.06$ $2,115,014($991,601)2021 14 $0 $0 7 $1,548,779 $126,941($685,027) ($56,146)10.22$ $2,148,653($950,351)2022 15 $0 $0 8 $1,531,278 $130,749($638,949) ($54,557)10.45$ $2,197,008($916,735)2023 16 $0 $0 9 $1,512,027 $134,671($595,204) ($53,013)10.66$ $2,241,158($882,224)2024 17 $0 $0 10 $1,490,851 $138,711($553,649) ($51,512)10.89$ $2,289,514($850,244)2025 18 $0 $0 11 $1,467,558 $142,873($514,150) ($50,055)11.29$ $2,373,610($831,579)2026 19 $0 $0 12 $1,441,935 $147,159($476,578) ($48,638)11.68$ $2,455,603($811,609)2027 20 $0 $0 13 $1,413,749 $151,574($440,814) ($47,261)12.00$ $2,522,880($786,646)2028 21 $0 $0 14 $1,382,746 $156,121($406,742) ($45,924)12.34$ $2,594,362($763,145)2029 22 $0 $0 15 $1,348,641 $160,804($374,255) ($44,624)12.68$ $2,665,843($739,785)2030 23 $0 $0 16 $1,311,127 $165,629($343,249) ($43,361)13.04$ $2,741,530($717,725)2031 24 $0 $0 17 $1,269,861 $170,597($313,628) ($42,134)13.40$ $2,817,216($695,792)2032 25 $0 $0 18 $1,224,468 $175,715($285,299) ($40,941)13.78$ $2,897,107($675,022)2033 26 $0 $0 19 $1,174,536 $180,987($258,175) ($39,783)14.16$ $2,976,998($654,374)2034 27 $0 $0 20 $1,119,611 $186,416($232,171) ($38,657)14.58$ $3,066,308($635,854)2035 28 $0 $0 21 $1,059,193 $192,009($207,210) ($37,563)15.02$ $3,158,298($617,858)2036 29 $0 $0 22 $992,733 $197,769($183,216) ($36,500)15.47$ $3,253,047($600,372)2037 30 $0 $0 23 $919,628 $203,702($160,117) ($35,467)15.94$ $3,350,638($583,380)2038 31 $0 $0 24 $839,212 $209,813($137,845) ($34,463)16.42$ $3,451,157($566,869)2039 32 $0 $0 25 $750,755 $216,108($116,335) ($33,487)16.91$ $3,554,692($550,826)2040 33 $0 $0 26 $653,451 $222,591($95,526) ($32,540)17.42$ $3,661,333($535,236)2041 34 $0 $0 27 $546,418 $229,269($75,357) ($31,619)17.94$ $3,771,173($520,088)2042 35 $0 $0 28 $428,681 $236,147($55,774) ($30,724)18.48$ $3,884,308($505,369)2043 36 $0 $0 29 $299,170 $243,231($36,720) ($29,854)19.03$ $4,000,837($491,066)2044 37 $0 $0 30 $156,708 $250,528($18,146) ($29,009)19.60$ $4,120,862($477,168)2045 38 $0 $0 31 $258,044($28,188)20.19$ $4,244,488($463,663)2046 39 $0 $0 32 $265,785($27,391)20.79$ $4,371,823($450,540)2047 40 $0 $0 33 $273,759($26,615)21.42$ $4,502,977($437,789)2048 41 $0 $0 34 $281,972($25,862)22.06$ $4,638,067($425,399)2049 42 $0 $0 35 $290,431($25,130)22.72$ $4,777,209($413,359)2050 43 $0 $0 36 $299,144($24,419)23.40$ $4,920,525($401,661)2051 44 $0 $0 37 $308,118($23,728)24.11$ $5,068,140($390,293)2052 45 $0 $0 38 $317,361($23,056)24.83$ $5,220,185($379,247)2053 46 $0 $0 39 $326,882($22,404)25.57$ $5,376,790($368,513)2054 47 $0 $0 40 $336,689($21,770)26.34$ $5,538,094($358,084)2055 48 $0 $0 41 $346,789($21,154)27.13$ $5,704,237($347,949)2056 49 $0 $0 42 $357,193($20,555)27.95$ $5,875,364($338,102)2057 50 $0 $0 43 $367,909($19,973)28.78$ $6,051,625($328,533)2058 51 $0 $0 44 $378,946($19,408)29.65$ $6,233,174($319,235)2059 52 $0 $0 45 $390,315($18,859)30.54$ $6,420,169($310,200)2060 53 $0 $0 46 $402,024($18,325)31.45$ $6,612,774($301,421)2061 54 $0 $0 47 $414,085($17,806)32.40$ $6,811,157($292,890)2062 55 $0 $0 48 $426,507($17,302)33.37$ $7,015,492($284,600)2063 56 $0 $0 49 $439,303($16,813)34.37$ $7,225,956($276,546)2064 57 $0 $0 50 $452,482($16,337)35.40$ $7,442,735($268,719)COSTSPower Production & Construction Financial Avoided CostsSAVINGSAEA Round 2 Grant Application, Victor Creek BCR, November 10, 2008