Loading...
HomeMy WebLinkAboutAnchorage Regional Landfill Gas-to-Energy App Anchorage Regional Landfill Landfill Gas-to-Energy Project Prepared by Municipality of Anchorage Solid Waste Services Prepared for Alaska Energy Authority Renewable Energy Fund RFA AEA-09-004 October 8, 2008 INDEX Grant Application Attachment A Project Manager Resume Attachment B Cost Worksheet Attachment C Grant Budget Form Attachment D Governing Body Resolution Attachment E Project Schedule Attachment F Anchorage Regional Landfill Landfill Gas Generation Model Predictions Attachment G Anchorage Regional Landfill Landfill Gas Recovery Feasibility Study Attachment H Preliminary Construction Cost Estimate Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 2 of 14 9/3/2008 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Municipality of Anchorage, Solid Waste Services Department Type of Entity: Local Government Mailing Address P.O. Box 196650, Anchorage, AK 99519 Physical Address 1111 E. 56th Avenue, Anchorage, AK 99518 Telephone 907-343-6262 Fax 907-561-1357 Email 1.1 APPLICANT POINT OF CONTACT Name Mark G. Madden, P.E. Title Director Mailing Address P.O. Box 196650, Anchorage, AK 99519 Telephone 907-343-6279 Fax 907-561-1357 Email maddenmg@muni.org 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer, or X A local government, or A governmental entity (which includes tribal councils and housing authorities); Yes or No See Attachment “D” 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 or No 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 or No 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 3 of 14 9/3/2008 SECTION 2 – PROJECT SUMMARY Provide a brief 1-2 page overview of your project. 2.1 PROJECT TYPE Describe the type of project you are proposing, (Reconnaissance; Resource Assessment/ Feasibility Analysis/Conceptual Design; Final Design and Permitting; and/or Construction) as well as the kind of renewable energy you intend to use. Refer to Section 1.5 of RFA. Phase III - Final Design and Permitting, and Phase IV - Construction, Commissioning, Operation and Reporting 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 Municipality of Anchorage (MOA) Solid Waste Services Department (SWS) intends to develop an electric power generating plant to be located at the Anchorage Regional Landfill (ARL). The plant will use landfill gas (LFG), a byproduct of anaerobic waste decomposition, as its primary fuel. Electricity generated by the project will be sold and delivered to the Matanuska Electric Association (MEA) distribution system to provide power to Eagle River and Southcentral Alaska. SWS will negotiate a power sales agreement with the end power user, likely MEA, and select of a development partner to design, build and operate the plant. 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 preliminary estimated project cost for design and construction is $7,400,000. SWS is requesting $3,700,000 in grant funding from the Renewable Energy Fund, 50% of the project cost. Remaining funds will be provided by SWS by a combination of cash, loans, sale of Clean Renewable Energy Bonds and/or equity investment from a development partner. 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 project will initially generate between 3 megawatts (MW) and 4 MW of power from landfill gas, a waste byproduct. The plant size may ultimately double in capacity as the landfill matures. The LFG will replace proportional quantities of fossil fuels (natural gas) for power production in the region. LFG is considered a significant greenhouse gas and would otherwise be flared providing no other benefit to the community. 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.) $ 7,400,000 2.5.2 Grant Funds Requested in this application. $ 3,700,000 2.5.3 Other Funds to be provided (Project match) $ 3,700,000 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $ 7,400,000 2.5.5 Estimated Benefit (Savings) $ 1,400,000 / yr 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.) $ Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 4 of 14 9/3/2008 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. Mark G. Madden, P.E. will manage this grant program. Mr. Madden is currently the Director of the Solid Waste Services Department and has over 25 years of engineering experience including management of grant-funded design and construction projects. Mr. Madden’s resume is attached as Attachment A. Mr. Madden will utilize Departmental engineering staff and contract support to oversee development of this 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.) A Gantt presentation of key project tasks and milestones in attached as Attachment E. Key milestones include: ¾ Award of AEDA Grant – 12/19/08 ¾ Award Design / Build contract - 1/1/09 ¾ Sign power sales agreement – 2/15/09 ¾ Complete preliminary design – 3/15/09 ¾ Submit Air Permit applications – 3/28/09 (6-8 months) ¾ Submit building permit application – 4/1/09 (4-6 weeks) ¾ Obtain building permit – 5/15/09 ¾ Order building components – 5/15/09 (6-8 weeks) ¾ Begin site grading / utility prep work – 5/15/09 ¾ Structural fabrication complete– 8/1/09 ¾ Obtain Air Permits 11/1/09 ¾ Building construction complete - 2/15/10 ¾ Facility startup and commissioning 3/31/10 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. ¾ Obtain Air Permits 11/1/09 – A Title I permit must be obtained before installation or startup of emissions-producing equipment. Typically this permit review requires 4 to 6 months to process, but may be longer due to high workload at the permitting agency. Application by March 31, 2009 is needed to meet this deadline. The size of the proposed facility and its proximity to the existing permitted flare installation may expedite the permitting process. ¾ Building construction complete 2/15/10 – a pre-engineered steel shell is anticipated to house the generating equipment. All earthwork, grading and foundations can be constructed while the building is being fabricated and shipped to site. It is estimated that erection of this structure will require approximately 2 months. Consequently, building permit review must be completed by mid-May 2009 to meet this deadline. Electrical and mechanical systems must be installed after the building shell is completed. ¾ Facility startup and commissioning completed by 3/31/10 – in addition to the prior key milestones, the generator sets must be procured and delivered by January 15, 2001. Delivery times vary by manufacturer, but current lead time for this equipment is 6 to 8 months. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 5 of 14 9/3/2008 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. MOA intends to enter into a relationship with a project development partner for execution of the project. Currently, it is planned that the partner will enter into a design-build-operate contract with a life of not less than 10 years. Solicitation and procurement for this partnership will take place prior to the end of 2008. MOA has conducted preliminary discussions with MEA for a long-term power sales agreement. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. The project will be overseen by SWS engineering staff that will provide the AEA with monthly status and financial report as required by the grant agreement. SWS will meet with key design / construction staff on a weekly basis to ensure progress and schedules are being met, and key issues which could impede progress of the project are being addressed. SWS and its development partner will meet with AEA staff to present project progress at key milestones such as completion of design, substantial completion of construction and facility startup. AEA staff is welcome and encouraged to visit the project site during construction and operation, and participate periodically in project staff progress meetings. 3.6 Project Risk Discuss potential problems and how you would address them. Key project risks include permitting delays, procurement delays, and power sales contracts. While any of these risks may delay startup of the project, none are considered fatal flaws to project development. The key permit delay would be associated with the Title I Construction Permit (Air Quality). SWS has maintained an excellent working relationship with ADEC Air Quality staff throughout permitting and operation of the existing gas collection system. The permit application must be submitted in March 2009 to ensure that there is adequate time to process this permit application. The key procurement issue will be acquisition of generator equipment. Typical lead time for these units is 6 to 8 months. Equipment will be ordered as early as practical to ensure adequate lead time on these items. The MOA believes that a power sales agreement can be negotiated with MEA that is mutually beneficial to both parties. If agreement cannot be reached with MEA, the MOA has alternative buyers for the produced energy. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 6 of 14 9/2/2008 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 proposed power plant will use landfill gas (LFG) from the Anchorage Regional Landfill (ARL), a byproduct of anaerobic waste decomposition, as its primary fuel. LFG is typically composed of 50% methane by volume and has an equivalent energy content of 500 BTU per cubic foot. ARL is expected to continue accepting waste through 2043. The facility has a design capacity of approximately 19 million tons of municipal solid waste, with 7 million tons currently in place. Solid waste industry rule- of-thumb is that each ton of waste can potentially produce between 3,900 and 6,600 cubic feet of gas, at a generation rate of between 200 cfm and 700 cfm per million tons in place. SWS currently operates a LFG collection system at ARL to meet the active gas emissions control requirements under the New Source Performance Standards promulgated as part of the Clean Air Act. The ARL system currently produces approximately 1,100 standard cubic feet of LFG per minute (scfm), which is currently flared. SWS has conducted modeling by two separate contractors using modeling methods developed by the USEPA Landfill Methane Outreach Program. The modeling has indicated that the LFG generation rates will be equal to or greater than current production for at least 60 years, with the potential to double the output from the station for approximately 20 years midway through the life of the project. The output from the initial model over the life of the landfill is included as Attachment F. This study was revisited by SCS Energy and is discussed in Attachment G. The current gas flow rate will support an installed generating capacity of between 3 and 4 MW, depending on the generator selection. Engineering and economic evaluations for this project assumed a rated capacity of 3.2 MW for the plant. LFG provides a steady, reliable fuel resource which will be available for an extended period. This gas must be destroyed to meet gas emissions standards defined by the ARL Title V Air Quality Operating Permit. Currently it is flared which provides no return of energy or other value to the local residents. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 7 of 14 9/3/2008 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. Energy supply in Southcentral Alaska is provided by several main producers and distributors including Anchorage Municipal Light & Power (ML&P), Chugach Electric Association (CEA), Matanuska Electric Association (MEA) and Homer Electric Association (HEA) which generate power from a combination of large scale natural gas turbines, diesel engines and hydroelectric power. Power systems are interconnected to allow movement of power throughout the region. The proposed project will supplement this power supply but will not replace any single component. 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. Current energy production in Southcentral Alaska is fueled primarily by natural gas with hydroelectric and diesel generation also present. This project will offset some fuel usage at existing plants, however the plant will meet only a small percentage of the overall power consumption in the region. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The population of Southcentral Alaska is approximately 350,000 people and related commercial interests. For the past decade, the Mat-Su Valley and Eagle River / Chugiak have been the fastest growing areas in the region. MEA provides electric power to most customers in these areas. Currently, MEA has an exclusive power purchase agreement with CEA, which will expire in 2014. MEA is currently exploring options to replace power purchased from CEA when the contract expires, including alternative energy sources such as landfill gas. In the short term, bringing a power plant on line at our location on the grid will help stabilize line voltages in the Eagle River area. Development of this plant will increase generation capacity in Southcentral Alaska by 3 MW which allow minor reduction in power production and consumption of associated natural gas at other plants in the system. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 8 of 14 9/3/2008 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 System Design Provide the following information for the proposed renewable energy system: • A description of renewable energy technology specific to project location • Optimum installed capacity • Anticipated capacity factor • Anticipated annual generation • Anticipated barriers • Basic integration concept • Delivery methods The proposed electrical generating plant will use landfill gas supplied from the LFG collection system. A tap will be required in the exhaust line from the existing blower station to divert gas to the power plant. Minimal gas processing may be required, primarily moisture removal and compression to required inlet pressure for the generating equipment. The power plant will use generator sets driven by internal combustion engines specifically modified to operate on medium BTU fuel such as landfill gas. Conceptual engineering and economic analyses assumed to generator sets with rated capacity of 1.6 MW, each. The plant is anticipated to operate a relatively constant output of approximately 3,008 kW with an availability of approximately 8,146 hours per year (93%). For preliminary engineering analysis, Caterpillar G3520CPGL generators sets were assumed. Preliminary engineering design indicates that at initial design production, power can be routed back to MEA’s Briggs Substation through existing distribution lines to the landfill site. While switch gear will be required, development of off-site transmission lines will not be needed initially. Included in the project are site development and building costs to house generating equipment. A pre- engineered metal building is anticipated for this structure. LFG production is expected to increase to support additional generating equipment within 8 years of project startup. This structure will be designed to accommodate additional generating equipment anticipated for this expansion. 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 project will be constructed within the boundaries of the Anchorage Regional Landfill on land owned by the Municipality. No land issues are anticipated. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 9 of 14 9/3/2008 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 Air Quality Title I Construction Permit (typically requires 6 to 8 months to develop and process. Permit application will be submitted upon completion of initial engineering when all data will be available for application completion. No significant barriers are anticipated.) Air Quality Title V Operating Permit (will be a modification of existing permit for gas collection system blower / flare station. Will require approximately 2 months for permit modification and can be conducted concurrent with Title I application. No significant barriers are anticipated) Municipal Building Permit (requires 4 to 6 weeks for review and processing of comments. Permit application will be submitted upon completion of engineering design and will include structure, mechanical, electrical, fire safety, land use, and zoning. No significant barriers are anticipated.) 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 The project will be constructed within the boundaries of the Anchorage Regional Landfill on land owned by the Municipality. An environmental impact assessment was completed in 1986 for development of the landfill. No issues with threatened or endangered species, habitat, wetlands, or archeological or historical significance were identified. The landfill is a developed industrial site, visually screened, with no adjacent development. The land is currently zoned for industrial use and will require no zoning modifications. No adverse environmental impacts or other barriers to development are anticipated. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 10 of 14 9/3/2008 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 The current preliminary engineering cost estimate for this project is $7,400,000 for completion of design and construction of the facility. These costs can be divided as $440,000 for completion of Phase III Design and Permitting and $6,960,000 for Phase IV Construction and Commissioning. A detailed breakdown of costs by major task / component is presented on Attachment H. SWS is requesting grants to fund 50 % of the project or $3,700,000. Remaining funding would come from Departmental funds, sale of Clean Renewable Energy Bonds, loans from the Municipal cash fund, other loans to be identified or equity investment from a development partner. SWS has been approved to sell up to $2,950,000 in Clean Renewable Energy Bonds by the Internal Revenue Service. 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 Operation and maintenance of the generating plant is anticipated to be $686,000 annually, based on operating costs experienced at LFG-to–energy plants of similar size and design. O&M costs would be funded from revenues generated by power sales. No grant funding is requested for these expenses. 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 There are two potential purchasers of electricity from the project: the Matanuska Electric Association (MEA) and the U.S. Army through Anchorage Municipal Light & Power (ML&P). SWS has initiated preliminary discussions with MEA regarding the terms of a potential power sales agreement. MEA has indicated that through 2014 when their contractual agreements with CEA end, the utility would purchase our power for a rate not higher than the avoided cost rate set forth in CEA’s tariff sheet 97 for non-firm power; currently $0.05834/kwh. A power sales agreement with MEA will require approval from Chugach Electric Association (CEA), however precedence for such sales have been set within the past year. Power purchase rates must be renegotiated with MEA in 2014 but are anticipated to be at least equal to the CEA non-firm avoided power cost. Sale of power to the U.S. Army through ML&P would require negotiation of a special power purchase rate that would be substantially higher than current ML&P avoided power costs. The agreement would require the Army to take all power generated by the project at this higher rate. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 11 of 14 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. A completed Cost Worksheet is attached as Attachment B. Costs presented are based on project development experience by our consultant SCS Energy, who has participated in design and construction of over 100 existing or proposed LFG-to-Energy projects. Data for analysis of current energy usage, fuel consumption and energy offset calculations was derived from Regulatory Commission of Alaska filings and data provided MEA. 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. SWS will be responsible for project management as well as gas production and environmental management of the landfill side of the project. The development partner will be responsible for power generation and environmental compliance in the power plant. Since the overall system (gas collection and power production) will become part of the air quality compliance system, gas consumption and compliance monitoring must be closely coordinated. Details related to gas delivery, power production quantities, production incentives, and distribution of revenues will be negotiated within the contract agreement with the development partner. This agreement will likely be based on a monthly rate for O&M plus production incentives. The power production system has the potential to grow to approximately double the proposed initial capacity as more methane is produced from the addition of refuse in the future. A portion of revenues generated from power sales will be used to maintain and expand the LFG collection system to ensure adequate gas supply for power production. 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project development work. With the LFG project, the revenues would be from the sale of electricity. The economic analysis below varied both power sales prices and the availability of capital grants for the project. Three power sales prices were analyzed: $0.05843 per kilowatt hour, $0.065 per kilowatt hour, $0.07 per kilowatt hour, with the base case of $0.05843 per kilowatt hour as the avoided cost price established by the Regulatory Commission of Alaska. In addition, two capital funding scenarios analyzed funding with and without grant monies. The analysis below summarizes the price per kilowatt hour and the effect of 50% grant funding: Table 1. 15 - Year Financial Analysis Summary without Grant Funding1 Simple Power Sales Gross IRR Payback Rate Revenue Net Revenue Debt Service3 NPV4 (%) (years) $0.05843/kWh $23,050,000 $10,290,000 $12,970,000 -$1,410,000 4.6 >8 $0.065/kWh $25,640,000 $12,880,000 $12,970,000 $43,906 8.1 >8 $0.070/kWh $27,610,000 $14,850,000 $12,970,000 $1,150,000 10.5 7.28 Table 2. 15 - Year Financial Analysis Summary with 50% GrantFunding1 Simple Power Sales Gross IRR Payback Rate Revenue Net Revenue Debt Service3 NPV4 (%) (years) $0.05843/kWh $23,050,000 $10,290,000 $6,480,000 $2,290,000 17.5 5.05 $0.065/kWh $25,640,000 $12,880,000 $6,480,000 $3,740.000 22.8 4.12 $0.070/kWh $27,610,000 $14,850,000 $6,480,000 $4,850,000 26.6 3.61 Notes: 1. Values rounded to nearest $10,000. 2. Assumes 3% escalation per year. 3. Assumes 8% interest and 15-year loan period. 4. Uses an 8% discount rate Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 12 of 14 9/3/2008 The analysis demonstrates that without grant funding the project does not become economically feasible unless a purchase price of approximately $0.070/kWh can be negotiated. Without grant funding, the project should not be undertaken if the power purchase prices I limited to the current avoided cost rate of $0.05843 / kWh. With fifty percent grant funding for capital costs, the resulting lower debt service would make the project economically feasible at the current avoided cost price ($0.05843 per kWh) currently available in Southcentral Alaska. With a net present value of $2,290,000, the LFG project would be a profitable project for the MOA to undertake at this time. Please see Attachment G for the full analysis and assumptions. This analysis assumes an annual power cost escalation of 1% per year. CEA contracts for natural gas purchases are anticipated to be renegotiated in 2010, likely to high rates. The resultant increase in generating costs due to these prices will result in higher revenues for the project if the power sales price escalates in relation to this increase. The end of the power purchase agreement between CEA and MEA in 2014 may affect project economics. For this analysis, it was assumed that the power purchase price received by the project would continue at the CEA non-uniform avoided power rate. LFG generation is anticipated to be continuously increasing throughout the life of the project as more waste is placed in the landfill and the waste decomposition rate matures. The preliminary design includes development of adequate infrastructure at the plant facility to support four generating units. Barring excessive inflation, the incremental cost to add additional generating capacity in the future should further enhance the economics of this project. In the conceptual design, waste heat recovery was not considered but represents an additional energy supply from the project. Currently, the administrative and support buildings are the only potential users of this resource in close proximity to the generating plant. The use of waste heat to offset energy consumption in on- site buildings would result in lower operating costs for the landfill, however unless other beneficial uses of this heat can be identified, the payback period for this investment may not justify the added expense. Evaluation of waste heat usage from the facility will be analyzed during the final design phase. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 13 of 14 9/3/2008 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 Generation of electricity using LFG will offset approximately 270,000 MCF of natural gas annually which would otherwise be used in regional power generation, based on average fuel consumption. Power sales will generate over $1.4 million in annual gross revenue based on current avoided power costs for non-uniform sources. Because the facility will be Municipally-owned, there are few, if any, tax credits or other tax incentives available for this project. The project is eligible to sell Denali Green Tags through the Bonneville Power Administration green tag program or similar energy credits. The value of these tags cannot be determined at this time. 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 estimated project cost based on preliminary design assumptions is $7,400,000. The Municipality is requesting $3,700,000 in grant funds and will provide matching funds of $3,700,000 for this project. Matching funds are expected to be drawn from SWS cash reserves, the Municipal cash pool, commercial borrowing and/or equity investment from our development partner. Prior to preparation of this grant application, the Municipality has invested $72,250 for LFG production modeling and financial analyses as part of Phase I and Phase II of the project. Additionally, the Municipality constructed the LFG collection system in the landfill for a cost of $5,270,000. These costs are considered sunk costs for the purpose of this project. The Municipality will also be providing approximately 1.8 acres of land for the plant site. The value of this land is not included in the project cost estimate. A grant Budget Work Form is included as Attachment C to this application. The form presents costs in terms of Phase III Design and Permitting and Phase IV Construction costs. Phase IV costs are further broken down by major construction or procurement tasks. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 14 of 14 9/3/2008 SECTION 7 – ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Resumes of Applicant’s Project Manager, key staff, partners, consultants, and suppliers per application form Section 3.1 and 3.4 B. Cost Worksheet per application form Section 4.4.4 C. Grant Budget Form per application form Section 6. D. An electronic version of the entire application per RFA Section 1.6 E. Governing Body Resolution per RFA Section 1.4 Enclose a copy of the resolution or other formal action taken by the applicant’s governing body or management that: - authorizes this application for project funding at the match amounts indicated in the application - authorizes the individual named as point of contact to represent the applicant for purposes of this application - states the applicant is in compliance with all federal state, and local, laws including existing credit and federal tax obligations. F. CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations. Print Name Mark G. Madden, P.E. Signature Title Director, Solid Waste Services Department, Municipality of Anchorage Date October 8, 2008 Attachment A Project Manager Resume Attachment B Cost Worksheet Renewable Energy Fund RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 1 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. 8,146 hours per year 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 Railbelt1 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 (if system is part of the Railbelt grid, leave this section blank) 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) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] Diesel [gal] Landfill Gas 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] 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. Renewable Energy Fund RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 2 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 3.2 MW b) Annual renewable electricity generation i. Diesel [gal or MMBtu] ii. Electricity [kWh] 24,505,574 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 $7,400,000 b) Development cost Included in above c) Annual O&M cost of new system $686,000 d) Annual fuel cost $0 5. Project Benefits a) Amount of fuel displaced for i. Electricity 267,846 Mcf of Natural Gas per year – 4,017,689 Mcf Natural Gas over 15 years. ii. Heat iii. Transportation b) Price of displaced fuel At an avoided cost of $0.05843/kWh for the Chugach Electric Association this equates to $1,431,861 in 2010. Assuming an annual 1% escalation in the avoided cost, this would equate $23,050,000 in 2010 dollars over a 15-year project period. c) Other economic benefits New job creation, potential reduction in solid waste fees for citizens. d) Amount of Alaska public benefits 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 $0.05843/kWh with a 1% annual escalation. 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio For a 15-year project period with an initial capital investment of $7,400,000 and a power sales rate of $0.05843 in 2010 with an annual 1% rate escalation the project would have an NPV of -$1,410,000 without any grant funding. With grant funding of 50% of the initial capital (i.e., $3,700,000) the NPV is $2,290,000 for the 15-year project period. Payback For a 15-year project period with an initial capital investment of $7,400,000 and a power sales rate of $0.05843 in 2010 with an annual 1% rate escalation the simple payback period is greater than 8 years without any grant funding. With grant funding of 50% of the initial capital (i.e., $3,700,000) the simple payback period is 5.05 years. Attachment C Grant Budget Form Alaska Energy Authority ‐ Renewable Energy FundAnchorage Regional Landfill Landfill Gas‐to‐Energy ProjectBUDGET INFORMATIONBUDGET SUMMARY:Milestone or Task Federal Funds State FundsLocal Match Funds (Cash)Local Match Funds (In‐Kind)Other FundsTOTALS1 Design and Permitting $0.00 $220,000.00 $220,000.00 $0.00 $0.00 $440,000.002 Site work / Bldg construction $0.00 $595,125.00 $595,125.00 $0.00 $0.00 $1,190,250.003 Major Equipment Procurement $0.00 $1,811,250.00 $1,811,250.00 $0.00 $0.00 $3,622,500.004 Electrical / Mechanical Systems $0.00 $1,071,225.00 $1,071,225.00 $0.00 $0.00 $2,142,450.005$0.006$0.00Milestone # or Task #BUDGET CATAGORIES:123456TOTALSDirect Labor and Benefits $10,000.00 $12,000.00 $3,000.00 $12,000.00 $37,000.00Travel, Meals, or Per Diem $0.00 $0.00 $0.00 $0.00 $0.00Equipment $0.00 $0.00 $285,000.00 $400,000.00 $685,000.00Supplies $0.00 $350,000.00 $0.00 $350,000.00Contractual Services $400,000.00 $125,000.00 $55,000.00 $60,450.00 $640,450.00Construction Services $0.00 $701,250.00 $12,000.00 $1,635,000.00 $2,348,250.00Other Direct Costs $30,000.00$2,000.00$7,000.00$35,000.00$74,000.00TOTAL DIRECT CHARGES $440,000.00 $1,190,250.00 $362,000.00 $2,142,450.00 $0.00 $0.00RFA AEA09-004 Budget Form Attachment D Governing Body Resolution (Resolution to be heard at the Anchorage Municipal Assembly Meeting, October 14, 2008. Approved resolution to be submitted following Assembly action) Submitted by: Chair of the Assembly at the Request of the Mayor Prepared by: Dept. of Solid Waste Services For reading: October 14, 2008 ANCHORAGE, ALASKA AR No. 2008-_____ A RESOLUTION OF THE ANCHORAGE MUNICIPAL ASSEMBLY AUTHORIZING 1 THE SOLID WASTE SERVICES DEPARTMENT TO APPLY FOR A MATCH 2 GRANT FROM ALASKA ENERGY AUTHORITY TO FUND DESIGN & 3 CONSTRUCTION OF A LANDFILL GAS–TO-ENERGY PLANT AT THE 4 ANCHORAGE REGIONAL LANDFILL. 5 6 WHEREAS, the Solid Waste Services Department operates the Anchorage Regional Landfill, 7 producing quantities methane-rich landfill gas as a by-product of waste decomposition. The 8 landfill gas represents a significant energy resource to the Municipality as a renewable energy 9 source; and 10 11 WHEREAS, during the 2008 legislative session, the Alaska State Legislature established a 12 renewable energy grant program, administered through the Alaska Energy Authority, to 13 provide funding for development of renewable energy projects including power generation 14 from landfill gas; and 15 16 WHEREAS, the Solid Waste Services Department intends to apply for $3,700,000 in grant 17 monies as matching funding to design and construct a power generating plant with a current 18 estimated engineering cost of $7,400,000; now, therefore, 19 20 THE ANCHORAGE ASSEMBLY RESOLVES: 21 22 Section 1. Solid Waste Services is authorized to apply for a project funding of $3,700,000, 23 as match funding for the design and construction of a power generating plant with an 24 estimated engineering cost of $7,400,000. 25 26 Section 2. The Director of Solid Waste Services is authorized to be the named point-of 27 contact for the grant application and is authorized to represent the Municipality for purposes 28 of this application. 29 30 Section 3. The Municipality of Anchorage is in compliance with all federal, state local 31 laws related to existing credit and federal tax obligations. 32 33 Section 4. This resolution shall be effective immediately upon passage and approval by 34 the Assembly. 35 36 PASSED AND APPROVED by the Anchorage Assembly this _______ day of 37 _______________, 2008. 38 __________________________ 39 Chair of the Assembly 40 ATTEST: 41 __________________________________ 42 Municipal Clerk 43 Attachment E Project Schedule IDTask NameDuration12Partner Solicitation5 wks3Power Sales Agreement3 mons4AEA Grant Award0 days5Partner Award0 days6Preliminary Design50 days?7Final Design30 days8Title I / Title II Permitting8 mons9Building Permits8 wks10Engine Procurement8 mons11Steel Fabrication12 wks12Site Work6 wks13Steel Erection14 wks14Mechanical/ Electrical10 wks15Startup4 wks16Completion0 days12/151/53/5OctNovDecJanFebMarAprMayJunJulAugSepOctNovDecJanFebMarAprQtr 4, 2008Qtr 1, 2009Qtr 2, 2009Qtr 3, 2009Qtr 4, 2009Qtr 1, 2010Qtr 2, TaskSplitProgressMilestoneSummaryProject SummaryExternal TasksExternal MilestoneDeadlinePage 1Anchorage Regional LandfillLandfill Gas-to-Energy Attachment F Anchorage Regional Landfill Landfill Gas Generation Model Predictions (USEPA Landfill Methane Outreach Program Model from “Landfill Gas Utoilization Economic Evaluation for Anchorage Regional Landfill” Prepared by Shaw / EMCON Inc., Expected LFG GenerationAnchorage Regional Landfill05001,0001,5002,0002,5003,00019871991199519992003200720112015201920232027203120352039204320472051205520592063206720712075207920832087209120952099Upper limit of LFG Generation RateLower limit of LFG Generation RateAverage LFG Generation Rate2007 ~ 1,100 cfm/ 33 MBtu/hr2017 ~ 1,500 cfm/ 45 MBtu/hr2045 ~ 2,200 cfm/ 66 MBtu/hrEstimated Landfill Life Attachment G Landfill Gas Recovery Feasibility Study Anchorage Regional Landfill By SCS Energy October 6, 2008 3900 Kilroy Airport Way 562 426-9544 Suite 100 FAX 562 988-3183 Long Beach, CA 90806-6816 www.scs-energy.com Offices Nationwide File No. 06208012.00 October 6, 2008 Mr. Mark G. Madden Director Municipality of Anchorage Solid Waste Services maddenmg@muni.org sent via email Subject: Draft Report - Landfill Gas Recovery Feasibility Study Anchorage Regional Landfill Anchorage, Alaska Dear Mr. Madden: It is our understanding that the Municipality of Anchorage, Alaska (MOA) is interested in developing a landfill gas-to-energy (LFGE) project at the Anchorage Regional Landfill in Anchorage Alaska (Site). The MOA is planning to submit a Grant Application to the Alaska Energy Authority (AEA) for funding of the project under the Alaska Renewable Energy Fund. SCS Energy (SCS) is pleased to present to the MOA this report on the feasibility of developing a landfill gas-to-energy (LFGE) project at the Site. The intent of this study is not only to assess the project’s feasibility, but also to provide the MOA with information necessary to complete the Grant Application package. The feasibility study provides an estimate of project revenues and capital and operations and maintenance (O&M) costs, as well as the cost of producing power from the project for a 15-year period beginning January 1, 2010 and ending December 31, 2024. The cost and revenue estimates are of a conceptual level of detail and are intended only to provide guidance on whether or not to pursue further evaluation of the project. They are not to be used as firm budget numbers for development of the project. SCOPE OF SERVICES For this project the MOA engaged SCS to develop a preliminary landfill gas (LFG) recovery model for the Site and prepare this Preliminary Site Assessment Report that provides: • An estimate of the quantity of recoverable LFG from the Site on an annual basis for the next 20 years (2009-2028). Mr. Mark G. Madden October 6, 2008 Page 2 • Based on the LFG recovery estimate, a recommended electric power generation capacity and configuration of the power plant (i.e., number and capacity of engine- generator sets). • A preliminary estimate of the capital and annual O&M budgets for the recommended power generation facility. • An estimate of the spatial requirements for the recommended power generation facility. • Provide an estimated levelized power production cost for a 15-year project period. • Develop a preliminary project pro forma financial statement that shows all expected power produced and revenues and costs on an annual basis, as well as predicts the project’s Internal Rate of Return (IRR), annual cash-flow, and simple pay-back for a 15-year project period. • A preliminary schedule for development of the project. BACKGROUND INFORMATION The Anchorage Regional Landfill is located at the intersection of the Glenn Highway and Hiland road, near the community of Eagle River, Alaska. Currently 162 acres of the Site are permitted to receive waste. The total site capacity is 19,000,000 tons of waste. To date about 7,000,000 tons of waste has been disposed in the Site. The Site began accepting waste in 1987, and is expected to close around 2043. The Site has an existing LFG collection system. Based on a review of recent Site LFG monitoring data, the existing system currently is collecting approximately 1,050 cubic feet per minute (cfm) of LFG at an average methane concentration of 55 percent. STUDY RESULTS Landfill Gas Recovery Estimates To estimate the potential LFG recovery rate for the Landfill, SCS utilized its in-house model that employs a first-order decay equation identical to the algorithm in the United States Environmental Protection Agency’s (USEPA) landfill gas emissions model (LandGEM). Both models are described in detail below. LFG gas is generated by the anaerobic decomposition of solid waste within a landfill. It is typically composed of between 40 to 60 percent methane, with the remainder consisting primarily of carbon dioxide. The rate at which LFG is generated is largely a function of the type of waste buried and the moisture content and age of the waste. It is widely accepted throughout Mr. Mark G. Madden October 6, 2008 Page 3 the industry that the LFG generation rate generally can be described by a first-order decay equation. USEPA Model The USEPA model requires that the Site’s waste disposal history (or, at a minimum, the amount of waste in place and opening date) be known. The model employs a first-order exponential decay function, which assumes that LFG generation is at its peak following a time lag representing the period prior to methane generation. The USEPA model assumes a one-year time lag between placement of waste and LFG generation. After one year, the model assumes that LFG generation decreases exponentially as the organic fraction of waste is consumed. The model equation is used to estimate LFG generation for a given year from all waste disposed up through that year. Multi-year projections are developed by varying the projection year and re- applying the equations. The year of maximum LFG generation normally occurs in the closure year or the year following closure (depending on the final year’s disposal rate). SCS Model SCS has developed a first-order decay model for estimating the LFG recovery potential of landfills (the SCS Model). The model essentially is a modified version of the USEPA’s LandGEM. For our model, SCS developed parametric values based on actual LFG collection/recovery data from over 150 sites across the U.S. When calibrating the model, SCS identified trends in the LFG collection data that were used to develop the model. Specifically, it was apparent that different values for the ultimate methane recovery potential [Lo] and the decay rate constant [k] were appropriate depending upon the amount of precipitation a landfill receives. The SCS Model also uses an alternate approach to conventional LFG modeling, which is to estimate recovery directly. This approach requires an evaluation or estimate of the current and future coverage of the LFG collection system, generally defined as that fraction of the landfill under active collection. Many factors can affect system coverage, including: well spacing and depth, depth of well perforations, presence of a low-permeability cover system, landfill type and depth, condition of LFG collection system, and other design and operational issues. SCS used the model to estimate the projected LFG recovery rates using the following criteria and assumptions: • Refuse Filling History - Historical and future projected waste disposal rates were obtained from the MOA. • Methane Content – SCS estimates future methane content to be 50 percent. • Methane Decay Rate Constant [k] – The decay rate constant is a function of refuse nutrient availability, pH, temperature and, in particular moisture content. As mentioned earlier, SCS also recognized this and, consequently, developed various Mr. Mark G. Madden October 6, 2008 Page 4 levels of “wet” and “dry” site k-values from its database of LFG recovery data. Based on the Site’s average annual precipitation rate, SCS employed a k value of 0.050. • Methane Recovery Potential [Lo] – The methane recovery potential is the total amount of methane that a unit mass of refuse will produce given enough time, and is a function of the organic content of the waste. It is theoretically independent of moisture. However, the site operational data analyzed by SCS suggested the Lo to be suppressed in dry sites as compared to wet sites, indicating that the Lo may be limited below a certain moisture threshold. Therefore, SCS derived various levels of “wet” and “dry” site Lo values from its database of LFG recovery data. Based on the Site’s average annual precipitation rate, SCS employed a Lo value of 2,980 cubic feet per ton. • LFG System Coverage - Varies. The model estimates both the potential “recoverable” LFG from a landfill assuming a 100 percent comprehensive LFG collection system, and the projected rate of LFG recovery based on the estimated LFG system coverage. System coverage is a measure of the fraction of the refuse mass which is under active collection. The LFG system coverage factor is based on engineering judgment, and considers many factors including: whether the landfill is closed or active, the type of well construction and gas system construction, the level of operation that is provided, how quickly damaged pipes and wells (and other equipment, such as blowers, etc.) are going to be repaired, leachate levels in wells, etc. This value falls within the range of 0 percent (for no gas system) to 100 percent (for a comprehensive collection system over a closed landfill with excellent construction and operation). Modifications to the LFG system coverage can be made annually if it is expected that a collection system will be periodically expanded or if other changes to the LFG system or landfill are anticipated (e.g., landfill closure or partial capping, increasing flows due to the presence of additional fill material). Active landfills generally tend to have lower system coverage than closed landfills due to the interferences caused by active filling operations. SCS estimates the existing collection system coverage to be approximately 60 percent, and that with an expansion of the existing system, could increase to 65 percent in 2009. . Based on the preliminary model run, the Site is projected to produce approximately 1,300 cfm of recoverable LFG by 2010. The amount of recoverable gas should increase steadily throughout the active life of the landfill to a level of approximately 1,760 cfm at the end of the project period in 2024 and approximately 2,100 cfm at closure in 2043. A summary of the projected LFG recovery rates on an annual basis through 2028 is presented in Attachment A. Mr. Mark G. Madden October 6, 2008 Page 5 It is important to note that, in addition to the potential variability in system coverage and the level of O&M, there is inherit uncertainty in the mathematical modeling of LFG itself. Future gas recovery projections are based on the expectation that the gas collection system will be expanded on schedule and will be properly operated and maintained in accordance with industry standards. These LFG recovery projections have been prepared in accordance with the care and skill generally exercised by reputable LFG professionals, under similar circumstances, in this or similar localities. No other warranty, express or implied, is made as to the professional opinions presented herein. Changes in the waste composition and/or disposal rate, as well as in Landfill property use and conditions (for example, variations in rainfall, water levels, landfill operations, final cover systems, or other factors) may affect future gas recovery at the Landfill. SCS does not guarantee the quantity or quality of available LFG. This modeling work has been conducted exclusively for the use of the MOA for this due preliminary evaluation. No other party, known or unknown to SCS is intended as a beneficiary of this report or the information it contains. Third parties use this report at their own risk. SCS assumes no responsibility for the accuracy of information obtained from, or provided by, third- party sources. Energy Recovery Estimate & Project Configuration Based on the LFG recovery rate predicted above the Site could support a power production facility of the capacities shown in Table 1. Based on the above potential power production capacity, SCS recommends an initial 3.2- megawatt (MW) power production facility using two 1.6-MW Caterpillar 3520 Reciprocating Engine Generator Sets (gensets). The facility could be expanded over the 15-year period to a 4.8-MW facility by adding additional 1.6-MW genset as LFG recovery rates from the landfill warrant. The initial facility would be designed to accommodate potential expansion and consist of the following major components: 1. A Fuel Pressurization and Cooling System capable of delivering up to 1,200 scfm of LFG to the power generation facility. 2. Two 1.6-MW Caterpillar 3520 Gensets. 3. Switchgear, switchgear controls, and step-up transformer (Note: Interconnect costs are not included in this estimate). 4. SCADA system that communicates with the individual engine control systems, the switchgear control system, and the PLC on the LFG pressurization and treatment skid, in order to bring all monitoring functions to a single point. Mr. Mark G. Madden October 6, 2008 Page 6 Table 1. Potential Power Production Capacity Year Available Energy (MMBtu/hr) Potential Power Production Capacity (MW)1 2010 40 3.9 2011 41 4.0 2012 42 4.2 2013 43 4.3 2014 45 4.4 2015 46 4.5 2016 47 4.6 2017 48 4.7 2018 49 4.8 2019 50 5.9 2020 50 5.0 2021 51 5.0 2022 52 5.1 2023 53 5.2 2024 53 5.3 Notes: 1. Assumes an engine heat rate of 10,100 Btu/kWh. 5. A building. Important features of this building include: a. An overhead crane in the engine room; b. An extended area in the engine room for spare parts and tools, and to provide bench space for repair work; c. An area in the electrical equipment room which will be configured into a classic control room configuration. The area will be equipped with a large plasma screen, which will not only aid the operations staff, but will also provide a focal point for plant tours; and d. The external walls of the building will employ insulation for sound attenuation. The interior wall between the engine room and the other rooms will be a block wall, filled with vermiculite, and will incorporate large double panel viewing windows. SCS anticipates the expanded facility will require approximately 0.25 acres of land area. Mr. Mark G. Madden October 6, 2008 Page 7 Power Generation Facility Costs The estimated capital cost for the initial 3.2-MW power production facility at the Site is $7,400,000. The estimated annual O&M cost for the power facility is $686,000 starting in 2010. This value should be escalated 3 percent annually to adjust for inflation. Power Production Cost To calculate the total cost of power production; after all costs were included, SCS adjusted the power sales price until the project’s Net Present Value (NPV) over the 15-year project period was essentially $0. Using this methodology we developed a base case scenario (i.e., with no other revenue sources). For this base case scenario the power production cost for the 15-year project period of 2010 through 2024 is $0.06858 per kilowatt hour (kWh) with no escalation and $0.06481/kWh with a 1 percent annual escalation. The pro forma financial statement model inputs for this base case are presented in Table 2. Table 2. Pro forma Inputs for Base Case Scenario Input Value Gross Plant Capacity (kW) 3,200 Net Plant Capacity (kW) 94% of gross) 3,008 Plant Capacity Factor (%) 93 Net Heat Rate (Btu/kWh) (HHV) (100% load) 10,100 Net Heat Rate (Btu/kWh) (HHV) (<100% load) 10,450 Plant Capital Cost ($) 7,400,000 Plant O&M Cost ($/kWh) 0.028 Wellfield & BFS Capital Cost ($) 0 Wellfield & BFS Annual O&M Cost ($) 0 Fuel Cost ($/MMBtu) 0 Escalation Rate on Non-fuel Costs (%) 3 Escalation Rate on Fuel Costs (%) 0 Percent of Capital Financed (%) 100 Interest Rate on Debt (%) 8 Debt Term (yrs) 15 Discount Rate (%) 8 Revenue from Tax Credits ($/kWh) 0 Revenue from REPIs ($/kWh) 0 Revenue from RECs ($/kWh) 0 Revenue from VERs ($/VER) 0 Mr. Mark G. Madden October 6, 2008 Page 8 POTENTIAL REVENUE Electric Power Sales The primary project revenue would be from the sale of power. FINANCIAL ANALYSIS SCS understands that the floor rate offered by the local utility is $0.05843. SCS developed three revenue scenarios assuming power sales rates of $0.05843/kWh, $0.0650/kWh, and $0.0700/kWh. For each power sales rate scenario, the analysis was run both with and without a 50 percent capital grant from the AEA. The pro forma financial statement model inputs for these revenue scenarios are presented in Table 3. Table 3. Pro forma Inputs for Revenue Scenarios Input Value Gross Plant Capacity (kW) 3,200 Net Plant Capacity (kW) 94% of gross) 3,008 Plant Capacity Factor (%) 93 Net Heat Rate (Btu/kWh) (HHV) (100% load) 10,100 Net Heat Rate (Btu/kWh) (HHV) (<100% load) 10,450 Plant Capital Cost ($) 7,400,000 & 3,700,000 Plant O&M Cost ($/kWh) 0.028 Wellfield & BFS Capital Cost ($) 0 Wellfield & BFS Annual O&M Cost ($) 0 Fuel Cost ($/MMBtu) 0 Escalation Rate on Non-fuel Costs (%) 3 Escalation Rate on Fuel Costs (%) 0 Percent of Capital Financed (%) 100 Interest Rate on Debt (%) 8 Debt Term (yrs) 15 Discount Rate (%) 8 Revenue from Tax Credits ($/kWh) 0 Revenue from REPIs ($/kWh) 0 Revenue from RECs ($/kWh) 0 Revenue from VERs (per VER) 0 Power Sales Rate (per kWh) $0.05843, $0.065, & $0.07 Annual Power Sales Rate Escalation (%) 1 Mr. Mark G. Madden October 6, 2008 Page 9 A summary financial analysis showing the project’s NPV, Internal Rate of Return (IRR), and Simple Payback in years is provided in Tables 4 and 5 for the 2009 project investment of: • $7,400,000 for the initial 3.2-MW facility without grant funding. • $3,700,000 for 3.2-MW facility with 50 percent grant funding. Table 4. 15-Year Financial Analysis Summary without Grant Funding1 Power Sales Rate Gross Revenue Net Revenue Debt Service3 NPV4 IRR (%) Simple Payback (years) $0.05843/kWh $23,050,000 $10,290,000 $12,970,000 -$1,410,000 4.6 >8 $0.065/kWh $25,640,000 $12,880,000 $12,970,000 $43,906 8.1 >8 $0.070/kWh $27,610,000 $14,850,000 $12,970,000 $1,150,000 10.5 7.28 Notes: 1. Values rounded to nearest $10,000. 2. Assumes 3% escalation per year. 3. Assumes 8% interest and 15-year loan period. 4. Uses an 8% discount rate. Table 5. 15-Year Financial Analysis Summary with 50% Grant Funding1 Power Sales Rate Gross Revenue Net Revenue Debt Service3 NPV4 IRR (%) Simple Payback (years) $0.05843/kWh $23,050,000 $10,290,000 $6,480,000 $2,290,000 17.5 5.05 $0.065/kWh $25,640,000 $12,880,000 $6,480,000 $3,740.000 22.8 4.12 $0.070/kWh $27,610,000 $14,850,000 $6,480,000 $4,850,000 26.6 3.61 Notes: 1. Values rounded to nearest $10,000. 2. Assumes 3% escalation per year. 3. Assumes 8% interest and 15-year loan period. 4. Uses an 8% discount rate. Pro forma financial statements are presented in Attachment B. Mr. Mark G. Madden October 6, 2008 Page 10 PROJECT SCHEDULE A detailed preliminary project schedule is presented in Attachment C. The schedule assumes the following: 1. October 15, 2008 – The MOA initiates negotiations for a power sales agreement. 2. November 15, 2008 - The MOA issues a RFQ/RFP for a design/build contract. 3. December 19, 2008 - The MOA is awarded a grant from the AEA. 4. January 1, 2009 – The MOA selects a design/build contractor and issues a Notice-to- Proceed. 5. January 15, 2009 – The MOA executes a power sales agreement with an end-user. Based on these assumptions, the project could be complete by February 24, 2010. CLOSING SCS appreciates the opportunity to be of service to the MOA on this project and we look forward to assisting you in its successful implementation. Should you have any questions or comments, please do not hesitate to contact me. Sincerely, Steven M. Hamilton, R.E.P. Vice President SCS ENERGY Attachment A Projected Landfill Gas Recovery Rates LFG Disposal Refuse LFG Recovery System LFG Recovery fromRate In-PlacePotentialCoverageExisting and Planned SystemYear (tons/yr) (tons) (scfm) (mmcf/day) (mmBtu/yr) (%) (scfm) (mmcf/day) (mmBtu/yr)Tonnes CH4 (CO2e/yr)2007 289,100 5,015,412 1,797 2.59 477,978 60% 1,078 1.55 286,787 120,7932008 292,319 5,307,731 1,870 2.69 497,380 60% 1,122 1.62 298,428 125,6962009 295,272 5,603,003 1,941 2.80 516,311 65% 1,262 1.82 335,602 141,3532010 298,196 5,901,199 2,011 2.90 534,755 65% 1,307 1.88 347,591 146,4032011 298,196 6,199,394 2,078 2.99 552,732 65% 1,351 1.95 359,276 151,3252012 298,196 6,497,590 2,143 3.09 569,832 65% 1,393 2.01 370,391 156,0062013 298,196 6,795,785 2,204 3.17 586,097 65% 1,432 2.06 380,963 160,4592014 298,196 7,093,981 2,262 3.26 601,570 65% 1,470 2.12 391,020 164,6952015 298,196 7,392,176 2,317 3.34 616,288 65% 1,506 2.17 400,587 168,7252016 298,196 7,690,372 2,370 3.41 630,288 65% 1,540 2.22 409,687 172,5582017 298,196 7,988,567 2,420 3.48 643,605 65% 1,573 2.27 418,343 176,2032018 298,196 8,286,763 2,468 3.55 656,273 65% 1,604 2.31 426,577 179,6722019 298,196 8,584,958 2,513 3.62 668,323 65% 1,633 2.35 434,410 182,9712020 298,196 8,883,154 2,556 3.68 679,785 65% 1,661 2.39 441,860 186,1092021 298,196 9,181,349 2,597 3.74 690,689 65% 1,688 2.43 448,948 189,0942022 298,196 9,479,545 2,636 3.80 701,060 65% 1,713 2.47 455,689 191,9332023 298,196 9,777,740 2,673 3.85 710,926 65% 1,738 2.50 462,102 194,6342024 298,196 10,075,936 2,708 3.90 720,310 65% 1,760 2.54 468,202 197,2042025 298,196 10,374,131 2,742 3.95 729,237 65% 1,782 2.57 474,004 199,6472026 298,196 10,672,327 2,774 3.99 737,729 65% 1,803 2.60 479,524 201,9722027 298,196 10,970,522 2,804 4.04 745,806 65% 1,823 2.62 484,774 204,1842028 298,196 11,268,718 2,833 4.08 753,490 65% 1,842 2.65 489,768 206,287Methane Content of LFG Adjusted to: 50%Selected Decay Rate Constant (k): 0.050Selected Ultimate Methane Recovery Rate (Lo): 2,980 cu ft/tonATTACHMENT A - LFG RECOVERY PROJECTIONSANCHORAGE REGIONAL LANDFILL - ANCHORAGE, AK Attachment B Pro forma Financial Statements ATTACHMENT B-1 - $0.05843/kWh (No Grant)3.2- MW PROJECTANCHORAGE REGIONAL LANDFILLIRR VIEW2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024POWER PURCHASE RATE - FIXED ($/kWh) 0.05843$ 0.05901$ 0.05960$ 0.06020$ 0.06080$ 0.06141$ 0.06202$ 0.06264$ 0.06327$ 0.06390$ 0.06454$ 0.06519$ 0.06584$ 0.06650$ 0.06716$ POWER PURCHASE RATE - VARIABLE ($/kWh) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ TOTAL POWER PURCHASE RATE ($/kWh) 0.05843$ 0.05901$ 0.05960$ 0.06020$ 0.06080$ 0.06141$ 0.06202$ 0.06264$ 0.06327$ 0.06390$ 0.06454$ 0.06519$ 0.06584$ 0.06650$ 0.06716$ POWER SALES (kWh/yr) 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574POWER REVENUE 1,431,861$ 1,446,179$ 1,460,641$ 1,475,248$ 1,490,000$ 1,504,900$ 1,519,949$ 1,535,148$ 1,550,500$ 1,566,005$ 1,581,665$ 1,597,482$ 1,613,456$ 1,629,591$ 1,645,887$ SECTION 45 TAX CREDIT ($/kWh) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ RENEWABLE ENERGY INCENTIVE ($/kWh) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ RENEWABLE ENERGY CREDIT ($/kWh) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ VERIFIED EMISSION REDUCTION ($/CO2eq) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------GRAND TOTAL REVENUE 1,431,861$ 1,446,179$ 1,460,641$ 1,475,248$ 1,490,000$ 1,504,900$ 1,519,949$ 1,535,148$ 1,550,500$ 1,566,005$ 1,581,665$ 1,597,482$ 1,613,456$ 1,629,591$ 1,645,887$ PLANT LFG CONSUMED (scfm) 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 LFG RATE ($/MMBtu) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ANNUAL LFG COST -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ANNUAL O&M CONTRACT 686,156$ 706,741$ 727,943$ 749,781$ 772,275$ 795,443$ 819,306$ 843,885$ 869,202$ 895,278$ 922,136$ 949,800$ 978,295$ 1,007,643$ 1,037,873$ OTHER COSTS -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------TOTAL ANNUAL OPERATING COST 686,156$ 706,741$ 727,943$ 749,781$ 772,275$ 795,443$ 819,306$ 843,885$ 869,202$ 895,278$ 922,136$ 949,800$ 978,295$ 1,007,643$ 1,037,873$ NET ANNUAL REVENUE 745,705$ 739,439$ 732,698$ 725,466$ 717,725$ 709,457$ 700,643$ 691,263$ 681,298$ 670,727$ 659,529$ 647,681$ 635,162$ 621,948$ 608,014$ GROSS PLANT CAPACITY (kW) 3,200 POWER PURCHASE RATE - FIXED ($/kWh) 0.05843$ NET PLANT CAPACITY (kW) (94% of gross) 3,008 POWER PRICE ESCALATION 1%PLANT CAPACITY FACTOR 93% POWER PURCHASE RATE - VARIABLE ($/kWh) -$ ANNUAL POWER SALES (kWh/yr) 24,505,574 ANNUAL CHANGE IN VARIABLE RATE 1%SECTION 45 TAX CREDIT -$ RENEWABLE ENERGY INCENTIVE -$ NET HEAT RATE (Btu/kWh)(HHV)(100% load) 10,100 RENEWABLE ENERGY CREDIT -$ VERIFIED EMISSION REDUCTION -$ FUEL CONSUMPTION (MMBtu/hr) 32.32 FUEL CONSUMPTION (scfm at 50% CH4) 1,065 BASE YEAR O&M CONTRACT RATE 0.0280$ BASE YEAR O&M CONTRACT 686,156$ PLANT CAPITAL COST (2008) 7,400,000$ WELLFIELD CAPITAL COST (2008) -$ BASE YEAR OTHER COSTS (WELLFIELD O&M) -$ GRANT -$ TOTAL CAPITAL COST 7,400,000$ NON-FUEL COST ESCALATION 3%CASH INVESTMENT -$ FUEL PURCHASE RATE -$ TOTAL DEBT 7,400,000$ FUEL ESCALATION RATE 3%SIMPLE PAYBACK(yrs) OVER 8NPV (1,414,342)$ INTERNAL RATE OF RETURN 4.6%DISCOUNT RATE 8% ATTACHMENT B-2 - $0.05843/kWh (50% Grant)3.2- MW PROJECTANCHORAGE REGIONAL LANDFILLIRR VIEW2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024POWER PURCHASE RATE - FIXED ($/kWh) 0.05843$ 0.05901$ 0.05960$ 0.06020$ 0.06080$ 0.06141$ 0.06202$ 0.06264$ 0.06327$ 0.06390$ 0.06454$ 0.06519$ 0.06584$ 0.06650$ 0.06716$ POWER PURCHASE RATE - VARIABLE ($/kWh) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ TOTAL POWER PURCHASE RATE ($/kWh) 0.05843$ 0.05901$ 0.05960$ 0.06020$ 0.06080$ 0.06141$ 0.06202$ 0.06264$ 0.06327$ 0.06390$ 0.06454$ 0.06519$ 0.06584$ 0.06650$ 0.06716$ POWER SALES (kWh/yr) 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574POWER REVENUE 1,431,861$ 1,446,179$ 1,460,641$ 1,475,248$ 1,490,000$ 1,504,900$ 1,519,949$ 1,535,148$ 1,550,500$ 1,566,005$ 1,581,665$ 1,597,482$ 1,613,456$ 1,629,591$ 1,645,887$ SECTION 45 TAX CREDIT ($/kWh) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ RENEWABLE ENERGY INCENTIVE ($/kWh) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ RENEWABLE ENERGY CREDIT ($/kWh) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ VERIFIED EMISSION REDUCTION ($/CO2eq) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------GRAND TOTAL REVENUE 1,431,861$ 1,446,179$ 1,460,641$ 1,475,248$ 1,490,000$ 1,504,900$ 1,519,949$ 1,535,148$ 1,550,500$ 1,566,005$ 1,581,665$ 1,597,482$ 1,613,456$ 1,629,591$ 1,645,887$ PLANT LFG CONSUMED (scfm) 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 LFG RATE ($/MMBtu) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ANNUAL LFG COST -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ANNUAL O&M CONTRACT 686,156$ 706,741$ 727,943$ 749,781$ 772,275$ 795,443$ 819,306$ 843,885$ 869,202$ 895,278$ 922,136$ 949,800$ 978,295$ 1,007,643$ 1,037,873$ OTHER COSTS -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------TOTAL ANNUAL OPERATING COST 686,156$ 706,741$ 727,943$ 749,781$ 772,275$ 795,443$ 819,306$ 843,885$ 869,202$ 895,278$ 922,136$ 949,800$ 978,295$ 1,007,643$ 1,037,873$ NET ANNUAL REVENUE 745,705$ 739,439$ 732,698$ 725,466$ 717,725$ 709,457$ 700,643$ 691,263$ 681,298$ 670,727$ 659,529$ 647,681$ 635,162$ 621,948$ 608,014$ GROSS PLANT CAPACITY (kW) 3,200 POWER PURCHASE RATE - FIXED ($/kWh) 0.05843$ NET PLANT CAPACITY (kW) (94% of gross) 3,008 POWER PRICE ESCALATION 1%PLANT CAPACITY FACTOR 93% POWER PURCHASE RATE - VARIABLE ($/kWh) -$ ANNUAL POWER SALES (kWh/yr) 24,505,574 ANNUAL CHANGE IN VARIABLE RATE 1%SECTION 45 TAX CREDIT -$ RENEWABLE ENERGY INCENTIVE -$ NET HEAT RATE (Btu/kWh)(HHV)(100% load) 10,100 RENEWABLE ENERGY CREDIT -$ VERIFIED EMISSION REDUCTION -$ FUEL CONSUMPTION (MMBtu/hr) 32.32 FUEL CONSUMPTION (scfm at 50% CH4) 1,065 BASE YEAR O&M CONTRACT RATE 0.0280$ BASE YEAR O&M CONTRACT 686,156$ PLANT CAPITAL COST (2008) 7,400,000$ WELLFIELD CAPITAL COST (2008) -$ BASE YEAR OTHER COSTS (WELLFIELD O&M) -$ GRANT (3,700,000)$ TOTAL CAPITAL COST 3,700,000$ NON-FUEL COST ESCALATION 3%CASH INVESTMENT -$ FUEL PURCHASE RATE -$ TOTAL DEBT 3,700,000$ FUEL ESCALATION RATE 3%SIMPLE PAYBACK(yrs) 5.05NPV 2,285,658$ INTERNAL RATE OF RETURN 17.5%DISCOUNT RATE 8% ATTACHMENT B-3 - $0.065/kWh (No Grant)3.2- MW PROJECTANCHORAGE REGIONAL LANDFILLIRR VIEW2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024POWER PURCHASE RATE - FIXED ($/kWh) 0.06500$ 0.06565$ 0.06631$ 0.06697$ 0.06764$ 0.06832$ 0.06900$ 0.06969$ 0.07039$ 0.07109$ 0.07180$ 0.07252$ 0.07324$ 0.07398$ 0.07472$ POWER PURCHASE RATE - VARIABLE ($/kWh) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ TOTAL POWER PURCHASE RATE ($/kWh) 0.06500$ 0.06565$ 0.06631$ 0.06697$ 0.06764$ 0.06832$ 0.06900$ 0.06969$ 0.07039$ 0.07109$ 0.07180$ 0.07252$ 0.07324$ 0.07398$ 0.07472$ POWER SALES (kWh/yr) 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574POWER REVENUE 1,592,862$ 1,608,791$ 1,624,879$ 1,641,128$ 1,657,539$ 1,674,114$ 1,690,855$ 1,707,764$ 1,724,842$ 1,742,090$ 1,759,511$ 1,777,106$ 1,794,877$ 1,812,826$ 1,830,954$ SECTION 45 TAX CREDIT ($/kWh) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ RENEWABLE ENERGY INCENTIVE ($/kWh) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ RENEWABLE ENERGY CREDIT ($/kWh) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ VERIFIED EMISSION REDUCTION ($/CO2eq) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------GRAND TOTAL REVENUE 1,592,862$ 1,608,791$ 1,624,879$ 1,641,128$ 1,657,539$ 1,674,114$ 1,690,855$ 1,707,764$ 1,724,842$ 1,742,090$ 1,759,511$ 1,777,106$ 1,794,877$ 1,812,826$ 1,830,954$ PLANT LFG CONSUMED (scfm) 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 LFG RATE ($/MMBtu) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ANNUAL LFG COST -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ANNUAL O&M CONTRACT 686,156$ 706,741$ 727,943$ 749,781$ 772,275$ 795,443$ 819,306$ 843,885$ 869,202$ 895,278$ 922,136$ 949,800$ 978,295$ 1,007,643$ 1,037,873$ OTHER COSTS -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------TOTAL ANNUAL OPERATING COST 686,156$ 706,741$ 727,943$ 749,781$ 772,275$ 795,443$ 819,306$ 843,885$ 869,202$ 895,278$ 922,136$ 949,800$ 978,295$ 1,007,643$ 1,037,873$ NET ANNUAL REVENUE 906,706$ 902,050$ 896,936$ 891,346$ 885,264$ 878,671$ 871,549$ 863,879$ 855,640$ 846,812$ 837,375$ 827,306$ 816,583$ 805,183$ 793,082$ GROSS PLANT CAPACITY (kW) 3,200 POWER PURCHASE RATE - FIXED ($/kWh) 0.06500$ NET PLANT CAPACITY (kW) (94% of gross) 3,008 POWER PRICE ESCALATION 1%PLANT CAPACITY FACTOR 93% POWER PURCHASE RATE - VARIABLE ($/kWh) -$ ANNUAL POWER SALES (kWh/yr) 24,505,574 ANNUAL CHANGE IN VARIABLE RATE 1%SECTION 45 TAX CREDIT -$ RENEWABLE ENERGY INCENTIVE -$ NET HEAT RATE (Btu/kWh)(HHV)(100% load) 10,100 RENEWABLE ENERGY CREDIT -$ VERIFIED EMISSION REDUCTION -$ FUEL CONSUMPTION (MMBtu/hr) 32.32 FUEL CONSUMPTION (scfm at 50% CH4) 1,065 BASE YEAR O&M CONTRACT RATE 0.0280$ BASE YEAR O&M CONTRACT 686,156$ PLANT CAPITAL COST (2008) 7,400,000$ WELLFIELD CAPITAL COST (2008) -$ BASE YEAR OTHER COSTS (WELLFIELD O&M) -$ GRANT -$ TOTAL CAPITAL COST 7,400,000$ NON-FUEL COST ESCALATION 3%CASH INVESTMENT -$ FUEL PURCHASE RATE -$ TOTAL DEBT 7,400,000$ FUEL ESCALATION RATE 3%SIMPLE PAYBACK(yrs) OVER 8NPV 43,906$ INTERNAL RATE OF RETURN 8.1%DISCOUNT RATE 8% ATTACHMENT B-4 - $0.065/kWh (50% Grant)3.2- MW PROJECTANCHORAGE REGIONAL LANDFILLIRR VIEW2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024POWER PURCHASE RATE - FIXED ($/kWh) 0.06500$ 0.06565$ 0.06631$ 0.06697$ 0.06764$ 0.06832$ 0.06900$ 0.06969$ 0.07039$ 0.07109$ 0.07180$ 0.07252$ 0.07324$ 0.07398$ 0.07472$ POWER PURCHASE RATE - VARIABLE ($/kWh) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ TOTAL POWER PURCHASE RATE ($/kWh) 0.06500$ 0.06565$ 0.06631$ 0.06697$ 0.06764$ 0.06832$ 0.06900$ 0.06969$ 0.07039$ 0.07109$ 0.07180$ 0.07252$ 0.07324$ 0.07398$ 0.07472$ POWER SALES (kWh/yr) 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574POWER REVENUE 1,592,862$ 1,608,791$ 1,624,879$ 1,641,128$ 1,657,539$ 1,674,114$ 1,690,855$ 1,707,764$ 1,724,842$ 1,742,090$ 1,759,511$ 1,777,106$ 1,794,877$ 1,812,826$ 1,830,954$ SECTION 45 TAX CREDIT ($/kWh) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ RENEWABLE ENERGY INCENTIVE ($/kWh) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ RENEWABLE ENERGY CREDIT ($/kWh) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ VERIFIED EMISSION REDUCTION ($/CO2eq) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------GRAND TOTAL REVENUE 1,592,862$ 1,608,791$ 1,624,879$ 1,641,128$ 1,657,539$ 1,674,114$ 1,690,855$ 1,707,764$ 1,724,842$ 1,742,090$ 1,759,511$ 1,777,106$ 1,794,877$ 1,812,826$ 1,830,954$ PLANT LFG CONSUMED (scfm) 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 LFG RATE ($/MMBtu) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ANNUAL LFG COST -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ANNUAL O&M CONTRACT 686,156$ 706,741$ 727,943$ 749,781$ 772,275$ 795,443$ 819,306$ 843,885$ 869,202$ 895,278$ 922,136$ 949,800$ 978,295$ 1,007,643$ 1,037,873$ OTHER COSTS -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------TOTAL ANNUAL OPERATING COST 686,156$ 706,741$ 727,943$ 749,781$ 772,275$ 795,443$ 819,306$ 843,885$ 869,202$ 895,278$ 922,136$ 949,800$ 978,295$ 1,007,643$ 1,037,873$ NET ANNUAL REVENUE 906,706$ 902,050$ 896,936$ 891,346$ 885,264$ 878,671$ 871,549$ 863,879$ 855,640$ 846,812$ 837,375$ 827,306$ 816,583$ 805,183$ 793,082$ GROSS PLANT CAPACITY (kW) 3,200 POWER PURCHASE RATE - FIXED ($/kWh) 0.06500$ NET PLANT CAPACITY (kW) (94% of gross) 3,008 POWER PRICE ESCALATION 1%PLANT CAPACITY FACTOR 93% POWER PURCHASE RATE - VARIABLE ($/kWh) -$ ANNUAL POWER SALES (kWh/yr) 24,505,574 ANNUAL CHANGE IN VARIABLE RATE 1%SECTION 45 TAX CREDIT -$ RENEWABLE ENERGY INCENTIVE -$ NET HEAT RATE (Btu/kWh)(HHV)(100% load) 10,100 RENEWABLE ENERGY CREDIT -$ VERIFIED EMISSION REDUCTION -$ FUEL CONSUMPTION (MMBtu/hr) 32.32 FUEL CONSUMPTION (scfm at 50% CH4) 1,065 BASE YEAR O&M CONTRACT RATE 0.0280$ BASE YEAR O&M CONTRACT 686,156$ PLANT CAPITAL COST (2008) 7,400,000$ WELLFIELD CAPITAL COST (2008) -$ BASE YEAR OTHER COSTS (WELLFIELD O&M) -$ GRANT (3,700,000)$ TOTAL CAPITAL COST 3,700,000$ NON-FUEL COST ESCALATION 3%CASH INVESTMENT -$ FUEL PURCHASE RATE -$ TOTAL DEBT 3,700,000$ FUEL ESCALATION RATE 3%SIMPLE PAYBACK(yrs) 4.12NPV 3,743,906$ INTERNAL RATE OF RETURN 22.8%DISCOUNT RATE 8% ATTACHMENT B-5 - $0.070/kWh (No Grant)3.2- MW PROJECTANCHORAGE REGIONAL LANDFILLIRR VIEW2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024POWER PURCHASE RATE - FIXED ($/kWh) 0.07000$ 0.07070$ 0.07141$ 0.07212$ 0.07284$ 0.07357$ 0.07431$ 0.07505$ 0.07580$ 0.07656$ 0.07732$ 0.07810$ 0.07888$ 0.07967$ 0.08046$ POWER PURCHASE RATE - VARIABLE ($/kWh) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ TOTAL POWER PURCHASE RATE ($/kWh) 0.07000$ 0.07070$ 0.07141$ 0.07212$ 0.07284$ 0.07357$ 0.07431$ 0.07505$ 0.07580$ 0.07656$ 0.07732$ 0.07810$ 0.07888$ 0.07967$ 0.08046$ POWER SALES (kWh/yr) 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574POWER REVENUE 1,715,390$ 1,732,544$ 1,749,870$ 1,767,368$ 1,785,042$ 1,802,892$ 1,820,921$ 1,839,130$ 1,857,522$ 1,876,097$ 1,894,858$ 1,913,807$ 1,932,945$ 1,952,274$ 1,971,797$ SECTION 45 TAX CREDIT ($/kWh) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ RENEWABLE ENERGY INCENTIVE ($/kWh) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ RENEWABLE ENERGY CREDIT ($/kWh) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ VERIFIED EMISSION REDUCTION ($/CO2eq) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------GRAND TOTAL REVENUE 1,715,390$ 1,732,544$ 1,749,870$ 1,767,368$ 1,785,042$ 1,802,892$ 1,820,921$ 1,839,130$ 1,857,522$ 1,876,097$ 1,894,858$ 1,913,807$ 1,932,945$ 1,952,274$ 1,971,797$ PLANT LFG CONSUMED (scfm) 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 LFG RATE ($/MMBtu) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ANNUAL LFG COST -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ANNUAL O&M CONTRACT 686,156$ 706,741$ 727,943$ 749,781$ 772,275$ 795,443$ 819,306$ 843,885$ 869,202$ 895,278$ 922,136$ 949,800$ 978,295$ 1,007,643$ 1,037,873$ OTHER COSTS -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------TOTAL ANNUAL OPERATING COST 686,156$ 706,741$ 727,943$ 749,781$ 772,275$ 795,443$ 819,306$ 843,885$ 869,202$ 895,278$ 922,136$ 949,800$ 978,295$ 1,007,643$ 1,037,873$ NET ANNUAL REVENUE 1,029,234$ 1,025,803$ 1,021,927$ 1,017,587$ 1,012,767$ 1,007,449$ 1,001,615$ 995,245$ 988,320$ 980,819$ 972,722$ 964,006$ 954,650$ 944,631$ 933,924$ GROSS PLANT CAPACITY (kW) 3,200 POWER PURCHASE RATE - FIXED ($/kWh) 0.07000$ NET PLANT CAPACITY (kW) (94% of gross) 3,008 POWER PRICE ESCALATION 1%PLANT CAPACITY FACTOR 93% POWER PURCHASE RATE - VARIABLE ($/kWh) -$ ANNUAL POWER SALES (kWh/yr) 24,505,574 ANNUAL CHANGE IN VARIABLE RATE 1%SECTION 45 TAX CREDIT -$ RENEWABLE ENERGY INCENTIVE -$ NET HEAT RATE (Btu/kWh)(HHV)(100% load) 10,100 RENEWABLE ENERGY CREDIT -$ VERIFIED EMISSION REDUCTION -$ FUEL CONSUMPTION (MMBtu/hr) 32.32 FUEL CONSUMPTION (scfm at 50% CH4) 1,065 BASE YEAR O&M CONTRACT RATE 0.0280$ BASE YEAR O&M CONTRACT 686,156$ PLANT CAPITAL COST (2008) 7,400,000$ WELLFIELD CAPITAL COST (2008) -$ BASE YEAR OTHER COSTS (WELLFIELD O&M) -$ GRANT -$ TOTAL CAPITAL COST 7,400,000$ NON-FUEL COST ESCALATION 3%CASH INVESTMENT -$ FUEL PURCHASE RATE -$ TOTAL DEBT 7,400,000$ FUEL ESCALATION RATE 3%SIMPLE PAYBACK(yrs) 7.28NPV 1,153,683$ INTERNAL RATE OF RETURN 10.5%DISCOUNT RATE 8% ATTACHMENT B-6 - $0.070/kWh (50% Grant)3.2- MW PROJECTANCHORAGE REGIONAL LANDFILLIRR VIEW2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024POWER PURCHASE RATE - FIXED ($/kWh) 0.07000$ 0.07070$ 0.07141$ 0.07212$ 0.07284$ 0.07357$ 0.07431$ 0.07505$ 0.07580$ 0.07656$ 0.07732$ 0.07810$ 0.07888$ 0.07967$ 0.08046$ POWER PURCHASE RATE - VARIABLE ($/kWh) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ TOTAL POWER PURCHASE RATE ($/kWh) 0.07000$ 0.07070$ 0.07141$ 0.07212$ 0.07284$ 0.07357$ 0.07431$ 0.07505$ 0.07580$ 0.07656$ 0.07732$ 0.07810$ 0.07888$ 0.07967$ 0.08046$ POWER SALES (kWh/yr) 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574 24,505,574POWER REVENUE 1,715,390$ 1,732,544$ 1,749,870$ 1,767,368$ 1,785,042$ 1,802,892$ 1,820,921$ 1,839,130$ 1,857,522$ 1,876,097$ 1,894,858$ 1,913,807$ 1,932,945$ 1,952,274$ 1,971,797$ SECTION 45 TAX CREDIT ($/kWh) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ RENEWABLE ENERGY INCENTIVE ($/kWh) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ RENEWABLE ENERGY CREDIT ($/kWh) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ VERIFIED EMISSION REDUCTION ($/CO2eq) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------GRAND TOTAL REVENUE 1,715,390$ 1,732,544$ 1,749,870$ 1,767,368$ 1,785,042$ 1,802,892$ 1,820,921$ 1,839,130$ 1,857,522$ 1,876,097$ 1,894,858$ 1,913,807$ 1,932,945$ 1,952,274$ 1,971,797$ PLANT LFG CONSUMED (scfm) 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 1,065 LFG RATE ($/MMBtu) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ANNUAL LFG COST -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ANNUAL O&M CONTRACT 686,156$ 706,741$ 727,943$ 749,781$ 772,275$ 795,443$ 819,306$ 843,885$ 869,202$ 895,278$ 922,136$ 949,800$ 978,295$ 1,007,643$ 1,037,873$ OTHER COSTS -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------TOTAL ANNUAL OPERATING COST 686,156$ 706,741$ 727,943$ 749,781$ 772,275$ 795,443$ 819,306$ 843,885$ 869,202$ 895,278$ 922,136$ 949,800$ 978,295$ 1,007,643$ 1,037,873$ NET ANNUAL REVENUE 1,029,234$ 1,025,803$ 1,021,927$ 1,017,587$ 1,012,767$ 1,007,449$ 1,001,615$ 995,245$ 988,320$ 980,819$ 972,722$ 964,006$ 954,650$ 944,631$ 933,924$ GROSS PLANT CAPACITY (kW) 3,200 POWER PURCHASE RATE - FIXED ($/kWh) 0.07000$ NET PLANT CAPACITY (kW) (94% of gross) 3,008 POWER PRICE ESCALATION 1%PLANT CAPACITY FACTOR 93% POWER PURCHASE RATE - VARIABLE ($/kWh) -$ ANNUAL POWER SALES (kWh/yr) 24,505,574 ANNUAL CHANGE IN VARIABLE RATE 1%SECTION 45 TAX CREDIT -$ RENEWABLE ENERGY INCENTIVE -$ NET HEAT RATE (Btu/kWh)(HHV)(100% load) 10,100 RENEWABLE ENERGY CREDIT -$ VERIFIED EMISSION REDUCTION -$ FUEL CONSUMPTION (MMBtu/hr) 32.32 FUEL CONSUMPTION (scfm at 50% CH4) 1,065 BASE YEAR O&M CONTRACT RATE 0.0280$ BASE YEAR O&M CONTRACT 686,156$ PLANT CAPITAL COST (2008) 7,400,000$ WELLFIELD CAPITAL COST (2008) -$ BASE YEAR OTHER COSTS (WELLFIELD O&M) -$ GRANT (3,700,000)$ TOTAL CAPITAL COST 3,700,000$ NON-FUEL COST ESCALATION 3%CASH INVESTMENT -$ FUEL PURCHASE RATE -$ TOTAL DEBT 3,700,000$ FUEL ESCALATION RATE 3%SIMPLE PAYBACK(yrs) 3.61NPV 4,853,683$ INTERNAL RATE OF RETURN 26.6%DISCOUNT RATE 8% Attachment C Preliminary Project Schedule IDTask NameDurationStartFinish1Anchorage Regional LF - LFGTE Project - Design/BUILD299 daysFri 1/2/09Wed 2/24/102Execute turnkey contracts1 dayFri 1/2/09Fri 1/2/093Prepare air permit documentation40 daysMon 1/5/09Fri 2/27/094Obtain air permits132 daysMon 3/2/09Tue 9/1/095Prepare interconnection application30 daysMon 1/5/09Fri 2/13/096Obtain interconnection approval60 daysMon 2/16/09Fri 5/8/097Construct interconnection100 daysMon 5/11/09Fri 9/25/098Preliminary Facility Engineering60 daysMon 1/5/09Fri 3/27/099Civil Engineering8 wksMon 1/5/09Fri 2/27/0910Electrical Engineering8 wksMon 1/5/09Fri 2/27/0911Mechanical Engineering8 wksMon 1/5/09Fri 2/27/0912Controls Engineering8 wksMon 1/5/09Fri 2/27/0913Preliminary Design Review4 wksMon 3/2/09Fri 3/27/0914Detailed Facility Engineering50 daysMon 3/30/09Fri 6/5/0915Civil Engineering10 wksMon 3/30/09Fri 6/5/0916Electrical Engineering10 wksMon 3/30/09Fri 6/5/0917Mechanical Engineering10 wksMon 3/30/09Fri 6/5/0918Controls Engineering10 wksMon 3/30/09Fri 6/5/0919Building Permit31 daysMon 6/8/09Mon 7/20/0920Submit to building department1 dayMon 6/8/09Mon 6/8/0921Obtain permit6 wksTue 6/9/09Mon 7/20/0922Equipment Procurement/Fabrication140 daysMon 1/5/09Fri 7/17/0923Engines6 monsMon 1/5/09Fri 6/19/0924Switchgear6 monsMon 1/5/09Fri 6/19/0925LFG skid14 wksMon 1/5/09Fri 4/10/0926High voltage transformer28 wksMon 1/5/09Fri 7/17/0927Low voltage transformer20 wksMon 1/5/09Fri 5/22/0928Equipment Delivery75 daysMon 4/13/09Fri 7/24/0929Engines5 daysMon 6/22/09Fri 6/26/0930Switchgear5 daysMon 6/22/09Fri 6/26/0931LFG skid5 daysMon 4/13/09Fri 4/17/0932High voltage transformer5 daysMon 7/20/09Fri 7/24/0933Low voltage transformer5 daysMon 5/25/09Fri 5/29/0934Construction56 daysWed 9/2/09Wed 11/18/0935Civil/Site work9 daysWed 9/2/09Mon 9/14/0936Mobilize to site5 daysWed 9/2/09Tue 9/8/0937Erosion & sediment control2 daysWed 9/9/09Thu 9/10/0938Site surveying3 daysWed 9/2/09Fri 9/4/0939Clear & Grub1 dayMon 9/7/09Mon 9/7/0940Site grading5 daysTue 9/8/09Mon 9/14/0941Excavation Activities11 daysTue 9/15/09Tue 9/29/0942Install ground grid10 daysTue 9/15/09Mon 9/28/0943Trench for below grade utilities (gas, elect, septic, water)1 dayTue 9/15/09Tue 9/15/0944Below grade mechanical piping1 dayWed 9/16/09Wed 9/16/0945Below grade electrical conduit10 daysWed 9/16/09Tue 9/29/0946Concrete Work & Site Work6 daysWed 9/30/09Wed 10/7/0947Concrete forms4 daysWed 9/30/09Mon 10/5/0948First pour1 dayWed 9/30/09Wed 9/30/0949Strip forms & concrete cure5 daysThu 10/1/09Wed 10/7/0950Equipment Installation/Piping25 daysThu 10/8/09Wed 11/11/0951Set LFG skid2 daysThu 10/8/09Fri 10/9/0952Set engine package2 daysThu 10/8/09Fri 10/9/0953Set engine cooler2 daysThu 10/8/09Fri 10/9/0954Set paralleling switchgear2 daysThu 10/8/09Fri 10/9/0955Set transformers2 daysThu 10/8/09Fri 10/9/0956Piping---other22 daysMon 10/12/09Tue 11/10/0957Piping engines23 daysMon 10/12/09Wed 11/11/0958Piping engine coolers23 daysMon 10/12/09Wed 11/11/0959Electrical site work56 daysWed 9/2/09Wed 11/18/0960Electrical connections Gen15 daysMon 10/12/09Fri 10/30/0961Electrical connections to transformers15 daysMon 10/12/09Fri 10/30/0962Electrical connections engine cooler10 daysMon 10/12/09Fri 10/23/0963Electrical connections LFG skid10 daysMon 10/12/09Fri 10/23/0964Lighting20 daysWed 9/2/09Tue 9/29/0965Grounding5 daysThu 11/12/09Wed 11/18/0966Misc. facility electrical30 daysWed 9/2/09Tue 10/13/0967Start up and Commissioning48 daysMon 11/2/09Wed 1/6/1068Electrical Testing8 wksMon 11/2/09Fri 12/25/0969LFG skid1 wkMon 12/28/09Fri 1/1/1070Run engines3 daysMon 1/4/10Wed 1/6/1071Online with Grid0 daysWed 1/6/10Wed 1/6/1072Site restoration5 daysThu 1/7/10Wed 1/13/1073Completion of misc. activities6 wksThu 1/14/10Wed 2/24/1074Performance tests5 daysThu 2/11/10Wed 2/17/1075Project Complete0 daysWed 2/24/10Wed 2/24/101/21/21/52/273/29/11/52/132/165/85/119/251/52/271/52/271/52/271/52/273/23/273/306/53/306/53/306/53/306/56/86/86/97/201/56/191/56/191/54/101/57/171/55/226/226/266/226/264/134/177/207/245/255/299/29/89/99/109/29/49/79/79/89/149/159/289/159/159/169/169/169/299/3010/59/309/3010/110/710/810/910/810/910/810/910/810/910/810/910/1211/1010/1211/1110/1211/1110/1210/3010/1210/3010/1210/2310/1210/239/29/2911/1211/189/210/1311/212/2512/281/11/41/61/61/71/131/142/242/112/172/24Dec 14,Dec 21,Dec 28,Jan 4, 'Jan 11,Jan 18,Jan 25,Feb 1, 'Feb 8, 'Feb 15,Feb 22,Mar 1, 'Mar 8, 'Mar 15,Mar 22,Mar 29,Apr 5, 'Apr 12, Apr 19, Apr 26, May 3, 'May 10,May 17,May 24,May 31,Jun 7, 'Jun 14, Jun 21,Jun 28,Jul 5, '0Jul 12, 'Jul 19, 'Jul 26, 'Aug 2, 'Aug 9, 'Aug 16,Aug 23,Aug 30,Sep 6, 'Sep 13,Sep 20,Sep 27,Oct 4, 'Oct 11, Oct 18, Oct 25, Nov 1, 'Nov 8, 'Nov 15,Nov 22,Nov 29,Dec 6, 'Dec 13,Dec 20,Dec 27,Jan 3, 'Jan 10,Jan 17, Jan 24,Jan 31,Feb 7, 'Feb 14,Feb 21,Feb 28,TaskProgressMilestoneSummaryRolled Up TaskRolled Up MilestoneRolled Up ProgressSplitExternal TasksProject SummaryGroup By SummaryDeadlineDesign-Build ScheduleMunicipality of Anchorage, AlaskaAnchorage Regional LandfillAnchorage, AlaskaPage 1Print Date: Mon 10/6/08File Name: Anchorage Regional LF - D Attachment H Preliminary Construction Cost Estimate ANCHORAGE REGIONAL LANDFILL 3.2-MW LFGTE FACILITY CONSTRUCTION COST ESTIMATE 10/7/2008 TWO DESCRIPTION CAT 3520s ----------------------------------------------------------------------------------- MAJOR EQUIPMENT 3,000,000$ CONTINGENCY (5%) 150,000$ SUBTOTAL 3,150,000$ CIVIL INSTALLATION WORK 900,000$ CONTINGENCY (15%) 135,000$ SUBTOTAL 1,035,000$ MECHANICAL INSTALLATION WORK 700,000$ CONTINGENCY (15%) 105,000$ SUBTOTAL 805,000$ ELECTRICAL INSTALLATION WORK 920,000$ CONTINGENCY (15%) 138,000$ SUBTOTAL 1,058,000$ CONTRACTOR OVERHEAD AND PROFIT (15%)907,200$ TECHNICAL SERVICES Preliminary Design and Air Permit Application 30,000$ Civil and Mechanical Detailed Design 180,000$ Electrical Design and Interconnect 90,000$ Construction Management 95,000$ Construction Permit Fees 30,000$ Air Emission Source Testing 15,000$ SUBTOTAL 440,000$ TOTAL COST 7,395,200$