HomeMy WebLinkAboutWrangell Alaska British Columbia Intertie App
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 1 of 13 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
AEA 09-004 Grant Application Page 2 of 13 9/3/2008
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
City and Borough of Wrangell
Type of Entity:
Local Municipal Government
Mailing Address
City and Borough of Wrangell
P.O. Box 531
Wrangell, Alaska 99929
Physical Address
City and Borough of Wrangell
205 Brueger Street
Wrangell, Alaska 99929
Telephone
(907) 874‐2381
Fax
(907) 874‐8952
Email
cmgwrg@aptalaska.net
1.1 APPLICANT POINT OF CONTACT
Name
Steve Henson
Title
Electrical Superintendent
Mailing Address
Wrangell Municipal Light & Power
P.O. Box 531
Wrangell, Alaska 99929
Telephone
(907) 874‐3602
Fax
(907) 874‐3614
Email
linedept@gci.net
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
An electric utility holding a certificate of public convenience and necessity under AS 42.05,
or
An independent power producer, or
X 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. (Attachment A)
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.
Permitting and engineering for the Alaska to British Columbia (AK‐BC) Intertie project. The renewable
energy used will be connecting to the existing hydroelectric power infrastructure.
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 AK‐BC Intertie would provide a further opportunity to secure the energy future for Southeast
Alaska. The AK‐BC Intertie is a 26.5 mile transmission line from the existing Tyee Lake Project to the AK‐
BC border. A feasibility study was conducted by Hatch Energy in 2005. This phase of the project would
continue the project from the feasibility stage into the permitting engineering phase. The purpose of
this project is to export surplus power for sale in British Columbia/Pacific Northwest which would
encourage development of new projects and provide additional reliability benefits. The ability to export
power would encourage early development of new hydro generation, as well as provide revenue from
exports, which will help ensure future maintenance of the current overall status of a clean hydro‐
powered region, offer operating flexibility for the southeast Alaska power system, and provide future
benefits to the region under the proposed marketing oversight proposal. Power sales agreement for
power generated projects encouraged by the AK‐BC Intertie could be structured to return payment to
the state. Power sales agreements could be structured to include a call‐back provision when load in
southeast Alaska grows and power is needed to serve the native load. The proposed AK‐BC Intertie
would extend from Tyee Lake along the Bradfield river to the AK‐BC border and along the Craig River to
a proposed substation at Forrest Kerr in British Columbia.
The export of energy through the AK‐BC Intertie will enable the completion of interties throughout
Southeast Alaska including completion of the Swan‐Tyee connection. Energy export could lead to the
development of a number of hydro‐electric projects in many locations in Southeast Alaska meeting
domestic power needs and providing a surplus for export. The goal is to provide the energy needed for
economic development in Southeast Alaska resulting in jobs for Alaskans and providing reliable, less
costly alternatives to diesel generated energy for Alaskan communities.
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 feasibility study conducted in 2005 estimates the cost of the permitting and engineering to be
$5,033,414.
There have been two feasibility studies performed, one by Hatch Energy in 2005 and one by D. Hittle
and Associates in 2006.
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Grant Application
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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 benefits of this project include the following:
• Provide a further opportunity to secure the energy future for Southeast Alaska.
• Improved continuity of service to customers due to redistribution of power flows following a
contingency or during a planned maintenance outage.
• Improved frequency stability as a result of the increased inertia of the combined power system.
• Improved voltage stability as a result of higher short circuit capability.
• Trade opportunities.
• The regulatory process to approve the proposed AK‐BC Intertie segment within southeast Alaska is
well defined and no fatal flaws were identified.
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.)
$5,033,414
2.5.2 Grant Funds Requested in this application. $4,433,414
2.5.3 Other Funds to be provided (Project match)
* Additionally, the City is already substantially subsidizing energy
cost to the consumer but the exact amount is not quantifiable in
dollars.
$600,000
2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $5,033,414
2.5.5 Estimated Benefit (Savings) $-0-
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.)
$-0-
(Unable to estimate)
By being able to sell excess energy produced by the hydroelectric infrastructure in Southeast Alaska to
British Columbia and/or the Pacific Northwest, the residents of Southeast Alaska will have their energy
costs subsidized by the profits from this sale of energy.
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.
Upon receiving funding for this project, the City will initially issue a request for proposal (RFP) for project
management services, permitting and engineering design.
Renewable Energy Fund
Grant Application
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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 proposed schedule for this phase of the project is as follows:
Description Schedule
Phase I – Permitting 7/1/2009 – 7/1/2010
Phase 2 – Engineering Design 7/1/2009 – 12/31/2010
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them.
Key project milestones for this project include the following:
Date Project Milestone
2009 3rd Quarter Issue Request for Proposal for project management, permitting and engineering
design.
2009 4th Quarter Select consultant for project management, permitting and engineering design.
2009 4th Quarter Begin permitting and engineering process.
2010 4th Quarter Permitting and final design completed.
The project will start on approximately July 1, 2009 and the permitting and engineering phase will be
completed by December 31, 2010.
3.4 Project Resources
Describe the personnel, contractors, equipment, and services you will use to accomplish the
project. Include any partnerships or commitments with other entities you have or anticipate will
be needed to complete your project. Describe any existing contracts and the selection process
you may use for major equipment purchases or contracts. Include brief resumes and references
for known, key personnel, contractors, and suppliers as an attachment to your application.
City and Borough of Wrangell charter dictates that all projects must go through a formal request for
proposal or bid process for award. For this project, we anticipate issuing an RFP for project
management, permitting and engineering design.
The anticipated consultant to perform this project is unknown at this time.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
Throughout the life of the project, the Project Manager will provide written monthly updates to AEA
which will include at a minimum:
- Expenditures to date;
- Percent complete; and
- Narrative on progress including any schedule changes.
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Grant Application
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In addition to the monthly progress reports, communication on project status will also be provided
verbally with the AEA Project/Program Manager on an informal basis through emails and phone
conversations.
3.6 Project Risk
Discuss potential problems and how you would address them.
The largest risk anticipated for this project is the risk that the British Columbian government does not
build their portion of the transmission line.
The standard project risk of the possibility of cost overruns is mitigated on this project by providing a
30% contingency cost in our projected project cost. Cost overruns will also be mitigated by effectively
managing the project.
Other risks include physical risk of land or snow slides destroying the line once constructed.
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.
The amount of energy resource that is available is potentially 100MW of excess energy that could be
developed for export.
Since this is a transmission line, this is not an energy source.
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.
There are only two high voltage transmission lines in Southeast Alaska. One high voltage transmission
line (115 kV) connects the output of the Swan Lake hydroelectric plant to the Ketchikan load center at
the Bailey Substation. The other high voltage transmission line is used to supply the communities of
Wrangell and Petersburg with electricity generated at the Tyee Lake Hydroelectric plant. This line is
presently operated at 69 kV. However, the transmission line was designed and built with a capability of
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 7 of 13 9/3/2008
operating at 138 kV. The Tyee Hydroelectric facility was put into operation in 1984. Tyee produces 20
MW of electricity and is highly efficient. This project will tie into the Tyee Transmission system.
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.
The Tyee Hydroelectric facility is underutilized at this time and this project would have the impact of
being able to utilize and sell the excess energy. The impact on the existing infrastructure would be an
improvement by fully utilizing the system.
The total hydro capability in southeast Alaska amounts to 70.7 MW with 39.7 MW in the Swan Region,
24.5 MW in the Tyee Region and 6.5 MW in the Prince of Wales Region.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
The total hydro capability in southeast Alaska amounts to 70.7 MW with 39.7 MW in the Swan Region,
24.5 MW in the Tyee Region and 6.5 MW in the Prince of Wales Region.
The impact to energy customers could be the possibility of reduced energy costs created by selling excess
hydroelectric generated power to the province of British Columbia and/or customers in the Pacific
Northwest.
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
The renewable technology which will be used for this project is hydroelectric power.
The optimum installed capacity is 100 MW.
The main barrier to this project is the BC government constructing a new 287 kV transmission segment
that will extend the existing BCTC transmission system north from Skeena to a proposed substation at
Bob Quinn, the proposed Northwest Transmission Line (NTL). This is a 30‐mile segment in BC from the
border to Forrest Kerr.
The integration of this transmission line would be with the existing Tyee transmission system and the
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Grant Application
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proposed new BC Northwest Transmission Line.
The delivery method for the hydroelectric power is through the new transmission line which this project
will design and permit.
4.3.2 Land Ownership
Identify potential land ownership issues, including whether site owners have agreed to the
project or how you intend to approach land ownership and access issues.
The AK‐BC Intertie would be constructed on lands within the Tongass National Forest managed by the US
Forest Service (USFS) thereby requiring federal approval to site, construct, and operate the proposed
facilities.
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
The following is a list of permits which will be required for this project:
• National Environmental Policy Act (NEPA) Environmental Assessment (EA)/Environmental Impact
Statement (EIS)
• Presidential Permit from the US Department of Energy (USDOE)
• Export Authorization for USDOE
• National Energy Board Permit from the Canadian National Energy Board
• Special Use Authorization from the US Forest Service (USFS)
• Annual Charge to Occupy US Lands from USFS
• Clean Water Act (CWA) Section 404 Permit – Dredge and fill nationwide permit from the Corps of
Engineers (COE)
• CWA NPDES Permit – COE/Environmental Protection Agency (EPA)
• CWA Section 401 Certificate of Reasonable Assurance to Comply with State Water Quality Standards
from Alaska Department of Environmental Conservation (ADEC)
• Coastal Zone Management Act (CZMA)/Alaska Coastal Management Plan (ACMP) – Coastal Project
Questionnaire and Certification Statement from the Office of Project Management and Permitting in
the Alaska Department of Natural Resources (ADNR)
• Endangered Species Act (ESA) Biological Assessment from the Fish and Wildlife Service and/or
National Marine Fisheries Service
• Historic Properties Management Plan from USFS and State Historical Preservation Office (SHPO)
• State permits to construct in and/or cross streams from Alaska Department of Fish and Game (ADFG)
• Fish and Wildlife Protection Plans for Fish and Wildlife Service (FWS) and/or National Marine
Fisheries Service (NMFS) or Alaska Department of Fish and Game (ADFG) and/or ADNR
The anticipated permitting timeline is 18 to 24 months after receiving funding for this stage of the
project.
4.3.4 Environmental
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Grant Application
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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
The project will need to comply with the National Environmental Policy Act (NEPA) process. The NEPA
process is used to identify and assess the environmental effects associated with a proposed project;
identify reasonable alternative to proposed actions; and develop practical means to avoid or minimize
any possible adverse effects of their actions upon the quality of the human environment. The NEPA
process will evaluate the effect the project will have on threatened or endangered species, habitat
issues, wetlands and other protected areas, and archaeological and historical resources.
Since the project is on USFS land, the only land development constraint is the USFS authorizing the use of
the land for this project.
There is no telecommunication interference from the development of this project.
There are no aviation considerations.
There are no visual or aesthetics impacts due to the remote location of the proposed intertie
transmission line.
There are no other known potential barriers to the project at this time.
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
Total Anticipated Project Cost: The total anticipated cost of the permitting and engineering is
$5,033,044.
Requested Grant Funding: The total requested grant funding is $4,433,414.
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Grant Application
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Matching Funds: The City of Wrangell has matching funds of $600,000 which were excess funds from
the feasibility stage of this project.
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
Operations and maintenance costs for the Tyee to BC Border is anticipated to be $360,000 (2006 dollars)
annually.
Operations and maintenance is not part of this phase of the project so no grant funding is requested.
4.4.3 Power Purchase/Sale
The power purchase/sale information should include the following:
• Identification of potential power buyer(s)/customer(s)
• Potential power purchase/sales price - at a minimum indicate a price range
• Proposed rate of return from grant-funded project
The potential power buyer(s)/customer(s) include residents/governments of the province of British
Columbia and the Pacific Northwest.
In the AK‐BC Intertie Feasibility Study, studies were performed to determine the sensitivity of the
generation sequences for the export cases to variations of export price, capital cost of plants for export
and numbers of years for capital cost repayment. The results indicate that for a 20 years capital
repayment period and an export price of 60 $/MW, increases in capital cost of the plants built for export
would result in negative benefits. However, for export prices of 70 and 80 $/MWh the benefits of export
would remain positive for the range of capital cost increases examined.
4.4.4 Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
The cost worksheet is provided as Attachment B.
4.4.5 Business Plan
Discuss your plan for operating the completed project so that it will be sustainable. Include at a
minimum proposed business structure(s) and concepts that may be considered.
The 2007 AK‐BC Intertie Feasibility Study proposes a three‐part business structure to manage a future
interconnected transmission system within Southeast Alaska and expand to the export market where
further clarification regarding the interests of British Columbia to interconnect and determination of
feasibility regarding cost of power for new generation are confirmed. The following is an overview of the
three proposed business structures from the AK‐BC Intertie Feasibility Study:
• Transmission Cooperative (TC) – The TC would own and operate the proposed AK‐BC Intertie. This
system is similar to the organizational structure adopted by the Kwaan Electric Transmission Intertie
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Cooperative which was formed by Alaska Electric Light & Power (AEL&P) and the Inside Passage
Cooperative, Inc. (IPEC).
• Unified System Operator (USO) – The USO business structure would enable the creation of an
umbrella organization comprised of electric utilities and producers, and by coordinating resources of
participating utilities, and be in a position to undertake the financial obligation of constructing new
and upgrading existing facilities. This is an important consideration as the state‐funded transmission
elements that provide a “kick‐start” to the concept of an interconnected Southeast Alaska with the
provision for export via the proposed AK‐BC Intertie. A USO would accommodate future ownership
of the AK‐BC Intertie by a TC and include segments currently owned by other members. For
example, the lines owned and operated by the Four Dam Pool Power Agency (FDPPA) and other
transmission segment owners in an overall system operate without requiring divesture by the
current owners.
• Power Marketing Oversight Unit – This structure would provide power marketing oversight to assist
the private sector with making 50‐year plus life projects financially viable in the first 15‐20 years
when debt payments are heavy and manage sales of Alaskan‐generated power for export to markets
outside the state.
4.4.6 Analysis and Recommendations
Provide information about the economic analysis and the proposed project. Discuss your
recommendation for additional project development work.
Power demands in British Columbia and the Pacific Northwest are expected to grow substantially over
the next 10 – 20 years and electricity policy changes related to reduction of greenhouse gas emissions
(GHG) represent export opportunity for competitively priced power from Southeast Alaska projects. The
economics of exports of power are directly impacted by the capital costs of the projects supplying the
power, the export price, the period of capital repayment, capital cost increases in the projects supplying
the power and the discount rate.
Export of energy from 2015 onwards to British Columbia and/or the Pacific Northwest from this project
appears to be economic at a discount rate of 6%. Higher discount rates generate overall negative
benefits.
Southeast Alaska hydro projects need to meet current delivered market price of approximately
$70/MWh. Assuming power delivery costs of $10/MWh, generating costs would need to not exceed the
$60/MWh range.
If generating costs exceed $60/MWh, competitiveness depends on GHG restrictions increasing future
British Columbia/Pacific Northwest market prices.
State involvement in a power marketing oversight role as presented in the AK‐BC Intertie Feasibility
Study would enhance the potential that new projects could produce power for 50 years substantially
increasing marketability.
The additional project development work for this project will include construction and commissioning
phases.
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.
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Grant Application
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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
Benefits of the AK‐BC Intertie include the following:
• The AK‐BC Intertie would provide a further opportunity to secure the energy future for Southeast
Alaska.
• Based upon the AK‐BC Intertie Feasibility Study, the technical feasibility and market potential of the
proposed future hydro facilities and related transmission features look promising.
• The regulatory process to approve the proposed AK‐BC Intertie segment within Southeast Alaska is
well defined and no fatal flaws were identified.
• Reduction of current levels of GHG from diesel generation.
• More conversions from oil to electric heat and resulting economic and GHG reduction benefits.
• Gains in energy through coordinated operation of hydro plants.
• Assistance during maintenance outages.
• Multiplier effects of increased economic development and increased disposable income resulting
from lower energy prices for Alaskans.
SECTION 6 – GRANT BUDGET
Tell us how much your total project costs. Include any investments to date and funding sources,
how much is requested in grant funds, and additional investments you will make as an
applicant.
Include an estimate of budget costs by tasks using the form - GrantBudget.xls
The total cost of this phase of the project is $5,033,414. The City is requested $4,433,414 in grant
funding.
Additional investments the City will make as an applicant is $600,000.
The Grant Budget Form is located in Attachment C.
SECTION 7 – ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
I Renewable Energy Fund 'JALASKA
; ENERGY AUTHORITY Grant 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 certifi~s 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 Bob Prunella (Je-f~+ JCL~~Sc-f\)
Signature C ) JC)1 ...A
7" 7/0....... "~
Title Manager, City and Borough of Wrangell (4C-T,,Jf,.. C I T'f MA-A)J4-c;..E.AQ..)
Date l\Jovember 7,2008
AEA 09-004 Grant Application Page 13 of 13 9/3/2008
Attachment A -Endorsement from Citv and Borough of Wrangell Assembly Meeting
October 28, 2008
Alaska Energy Authority
AEA-09-004-Renewable Energy Grant Application
813 West Northern Lights Boulevard
Anchorage, Alaska 99503
Subject: Governing Body Resolution for Alaska Energy Authorit Grant Application
The City and Borough of Wrangell (City) Assembly authorizes this application for project
funding. The following is the excerpt from the 9/23/08 Borough Assembly Regular Meeting
which authorizes this grant application:
13e Discussion and Possible Action regarding AK-BC Intcrtie
Moved by Christian, seconded by Edgley, that we submit a grant application to Alaska Energy
Authority for $4,433,414 dollars to pursue the permitting engineering for the AK-BC Intertie.
Motion approved unanimoosly by polled vote.
The City authorizes Steve Henson as the point of contact to represent the applicant for the
purposes of this application.
The City is in compliance with all federal, state, and local laws including existing credit and
federal tax obligations.
Sincerely,
CITY AND BOROUGH OF WRANGELL
11 ~l.p
-~/~/ /~.-rt--nU£.
ob Prunella
City and Borough Manager
Renewable Energy Fund
Attachment B - 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. 100% (Hydropower)
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
2. Existing Energy Generation
a) Basic configuration (if system is part of the railbelt grid, leave this section blank)
i. Number of generators/boilers/other
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
i. Annual O&M cost for labor
ii. Annual O&M cost for non-labor
c) Annual electricity production and fuel usage (fill in as applicable)
i. Electricity [kWh]
ii. Fuel usage (if system is part of the Railbelt grid, leave this section blank
Diesel [gal]
Other
iii. Peak Load
iv. Average Load
v. Minimum Load
vi. Efficiency
vii. Future trends
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu]
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
RFA AEA 09-004 Application Cost Worksheet Page 1
Renewable Energy Fund
RFA AEA 09-004 Application Cost Worksheet Page 2
3. Proposed System Design
a) Installed capacity 100 MW Transmission Line
b) Annual renewable electricity generation
i. Diesel [gal or MMBtu]
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
4. Project Cost
a) Total capital cost of new system 28,000,000.00
b) Development cost 5,033,414.00
c) Annual O&M cost of new system 360,000.00
d) Annual fuel cost
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity
ii. Heat
iii. Transportation
b) Price of displaced fuel
c) Other economic benefits Sale of excess hydro power
d) Amount of Alaska public benefits
6. Power Purchase/Sales Price
a) Price for power purchase/sale $.068 purchase $.07 sale
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio
Payback
Attachment CAlaska Energy Authority ‐ Renewable Energy FundRFA AEA09‐004 Budget FormRFA AEA09‐004 Budget FormBUDGET INFORMATIONBUDGET SUMMARY:Milestone or TaskFederal Funds State FundsLocal FundsMatch (Cash)LocFunal Match ds (In‐Kind)Other FundsTOTALS1 Utilities Study$0.002 Conceptual Design$0.003 Grant Administration$80,000.00$80,000.004 Construction Management$0.005 Engineering Design & Project Mgmt.$4,433,414.00 $600,000.00$5,033,414.006 Materials and Construction $0.00Milestone # or Task #BUDGET CATAGORIES:123456TOTALSDirect Labor and Benefits$80,000.00Travel, Meals, or Per Diem$0.00Equipment$0.00Supplies$0.00Contractual Services $5,033,414.00$5,033,414.00Construction Services $0.00Other Direct Costs$0.00TOTAL DIRECT CHARGES$0.00$0.00$80,000.00$0.00$5,033,414.00$0.00