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HomeMy WebLinkAbout7 D NomeJointUtilityService Wind Support - 092807 a component unit of P.O. Box 70 • Nome, Alaska 99762 • (907) 443-NJUS • Fax (907) 443-6336 Providing reliable utility services to system rate payers efficiently and economically by prudently operating and maintaining system assets in a fiscally responsible manner September 28, 2007 Jerald Brown Bering Straits PO Box 1008 Nome, AK 99762 Dear Jerald, As you are aware, the Utility Board has long expressed support for and has been investigating alternative energy options that can potentially reduce reliance solely on diesel for power production in Nome. We have been collecting wind data sporadically for several years, and now believe we are close to having a full year of valid data that indicates sufficient wind resource in the Nome area to move toward the goal of adding wind power. The Mayor of Nome requested assistance from the US Department of Energy and the Alaska Energy Authority to study various alternatives that may be available in the area, including wind, coal, geothermal, and natural gas. There are many issues that will need to be considered by the Utility to come to a final decision to proceed with any alternative energy project, including capital and operating costs, and maintenance and system-intertie considerations. The study is nearing completion and we expect it to be released soon so local decision makers can utilize it in the planning process. I applaud the proactive attitude, initiative and support of the local community in also seeking creative solutions to the high energy costs in the community. This is to confirm our conversation and interest in the possibility of having alternate energy available to the Utility to avoid diesel use. While the Utility may pursue the installation of wind generation on its own, we encourage you to pursue your concept of installing a private wind farm that could provide energy to our grid. Existing Utility Tariffs do provide for co-generation, but these provisions have not been utilized in years, and were envisioned on a smaller scale than what you propose. The potential of having 500kw available would not interfere with the Utility’s own conceptual plans. There are numerous system and operational issues that would need to be considered, and a detailed engineering proposal developed, but we look forward to further discussions, and encourage you to pursue any funding opportunities that may be available to make wind power in Nome a reality. Should such a system be available, NJUS would be interested in pursuing a power purchase agreement that would provide a direct energy cost reduction benefit to Nome’s residents. Sincerely, John K. Handeland General Manager/Chief Operating Officer NOME JOINT UTILITY SYSTEM