HomeMy WebLinkAboutPhotovoltaic Array Shungnak AK App4831;EagleStreet':. Anchorage, Alaska 99503-7497 Phone.(907) 5611818:.• In State (800) 478-1818i :, Fax (9.07) 56123$$
GRANT APPLICATION V-
RESUMES N
COST WORKSHEET m
GRANT BUDGET FORM It
DELEGATION OF
Ln
AUTHORITY
SUPPLEMENTAL
MATERIALS
TAB
GRANT APPLICATION
ALASKA Renewable Energy Fund
ENERGY AUTHORITY Grant Application
Name (Name of utility, 1PP, or govemment entity submitting proposal)
Alaska Village Electric Coo
Type of Entity:
utlllt
Mailing Address Mailing Address
4831 Eagle Street, Anchorage, AK 99503 4831 Eagle Street, Anchorage, AK 99503
Telephone Telephone Telephone
907-565-5358 907-565-5358 907-565-5358
1.1 APPLICANT POINT OF CONTACT
Name Name
Brent Petrie Brent Petrie
Mailing Address
4831 Eagle Street, Anchorage, AK 99503
Alaska Village Electric Cooperative I Alaska Village Electric Cooperative Alaska Village Electric Cooperative (AVEC)
0
Yes
or
No
Yes
or
No
Yes
or
No
AEA 09-004 Grant Application Page 1 of 9 9/2/2008
ALAH SKA
Renewable Energy Fund
Grant Application
This project is for the design, permitting and construction of a solar energy system.
Shungnak is a village that can benefit from solar energy. It is proposed that a grid tied,
batteryless 50.4 kW photovoltaic system be installed on property adjacent to the AVEC power
plant and tank farm. It consists of 225ea 224-watt solar panels on an adjustable 6300 ft2 rack
that is supported on a Triodetic Multipoint foundation. Multiple 7000 watt inverters provide 277
VAC power.
The estimated cost through construction is $605,000.
Based on the current cost of power in Shungnak at $.461/kWh, and an average annual
production of solar energy of 47231 kWh, the first years value of avoided fuel cost would be
$21,773. Assuming an 8% increase in the cost of diesel fuel over the next30 years, the net
present value savings would be $1,075,656 .
In addition to the direct fuel reduction are the benefits of:
- reduced long-term dependence on outside sources of energy;
- reduced exposure to fuel price volatility;
- reduced air pollution resulting from reducing fossil fuel combustion;
- reduced possibility of spills from fuel transport & storage; and
- reduced overall carbon footprint and its contribution to climate change.
$605, 000
$550,000
$55,000
$ $1,075,656 over
30 yrs.
AEA 09-004 Grant Application Page 2 of 9
9/3/2008
ALASKA Renewable Energy Fund
/ ENERGY AUTHORITY Grant Application
Alaska Village Electric Cooperative's (AVEC) project management approach to this project, and
to its overall energy upgrade program, is to utilize a team approach consisting of AVEC staff,
external consultants and construction management contractors.
AVEC provides a project team from its operating staff. The President and CEO acts as Program
Executive and maintains ultimate authority programmatically and financially. The manager of the
community development group acts as program manager. The group provides internal focus
and coordination of special projects including project development, planning, construction
coordination, and reporting. Resources include a project coordinator, contracts clerk,
accountant, engineer, and community liaison. The vice president and manager of AVEC's
engineering group provide technical input on generation and distribution issues to the team.
Additionally, the engineering group provides specifications, design and drawings for AVEC
construction of diesel power plants and distribution systems. The manager of operation and
construction provides construction management and commissioning input on behalf of new
construction performed by AVEC staff. The manager of administrative services provides support
in accounting, payables, financial reporting, and capitalization of assets in accordance with RUS
guidelines.
To support the AVEC team, design consultants and construction managers (CM) are selected.
Both disciplines are derived from a resource bank of professional firms with applicable histories
of performance in rural Alaska. The construction manager works concurrently with the design
consultant through design development to provide constructability insight and value engineering
to maximize the overall effectiveness of the final construction documents.
Concurrent with design development, material and equipment procurement packages are
formulated by the CM in collaboration with AVEC's purchasing manager. Each package is
competitively procured or issued from cooperative materials. Purchase orders are formulated
with delivery dates consistent with dates required for barge or air transport consolidation.
Multiple materials and/or equipment are detailed for consolidated shipments to rural staging
points, where secondary transport to the village destination is provided. The CM tracks the
shipments and provides handling services to and around the destination project sites.
The CM is responsible for the construction activities for all project components of the facility
upgrade. Local labor forces are utilized to the maximum extent possible to construct the
projects. Local job training is provided as a concurrent operation under the management and
direction of the CM. All construction costs, direct and indirect are reimbursed on a cost only
reimbursement to the CM or paid directly by AVEC.
For the facilities applied for in this application, AVEC is responsible for managing the
commissioning process in content with the CM, designers and vendors. That entails testing and
training of operational personnel, as well as providing for all contract closeout documents.
J AVEC's concern and objective is to have a managed project delivery approach from inception
through operation.
AEA 09-004 Grant Application Page 3 of 9 9/3/2008
ALASKA Renewable Energy Fund
/ ENERGY AUTHORITY Grant Application
Assuming this grant application is successful and funding is available in January 2009, the
design, procurement, transportation and field installation can be completed in June 2009. Tie in
to the grid and commissioning of the system is anticipated to be complete by August 2009.
• Select PV array shape, orientation, support and protection requirements.
• Design the photovoltaic system in consideration of the selected site and the solar
resource that is available
• Procure PV equipment and control systems to provide the system as designed.
• Transport the equipment and supplies to the village.
• Erect the Triodetic foundation, install PV array and install inverters.
• Intertie PV system to the power plant
• Commission system
AVEC will ultimately be responsible for successful completion of the project, using companies
and personnel that have successfully installed similar systems in the recent past. Electrical
system engineering will be subcontracted, using current internal procurement practices and
selection of engineering service providers from prequalified organizations. Equipment will be
purchased through competitive solicitations from reputable suppliers. Installation will likely be
executed on a force account basis using a construction manager yet to be named from the
ranks of AVEC and/or the professional construction management firms that under contract to
AVEC.
The installation of solar electric and Triodetic foundation systems are simple as they require little
if any site preparation and skill levels that are available in the village given appropriate
supervision.
AVEC is a well established electric utility that owns power plants and distribution systems in 53
western Alaska villages. It has established management systems for monitoring all of the village
systems in terms of operations, maintenance, renovations and new construction. The utility is
also accustomed to reporting to fund grant agencies such as the Denali Commission, RUS and
the Alaska Energy Authority. This project will of course be monitored and the status will be
reported to the AEA in a manner that meets the requirements and desires of the Authority.
AEA 09-004 Grant Application Page 4 of 9 9/3/2008
ALASKA Renewable Energy Fund
/ ENERGY AUTHORITY Grant Application
Dzsouss ote tra rob�ems a tl Itow ou would addressa'th xra... °' .. `
In general, logistics, construction activities and weather all contain significant risks. AVEC
routinely purchases Builder's Risk insurance to mitigate its exposure to these risks.
Logistics is a routine issue in rural Alaska. AVEC and it's construction management staff have
extensive experience with the logistical conditions found in this Alaskan village. Advance
planning and allowing time for contingencies is crucial to success in such environments.
Construction can be challenging in rural Alaska. AVEC routinely conducts construction
operations in villages much like this one.
Weather is another challenge when working in rural Alaska. AVEC has worked in this area for
years. As with logistics, allowing time for contingencies is important.
Solar energy is available in Shungnak in sufficient quantity to be economically feasible. The
amount of energy is limited only by the number of solar panels that can be installed given
sufficient investment capital and available un-shaded land.
Other alternatives have been considered for Shungnak. The location does not have adequate
wind to be a candidate for wind power. It does appear to be a candidate for hydro -power in the
near future. Funds for studying the latter alternative are being sought under a separate AEA
renewable energy grant application.
A 851-kW diesel power plant is the present producer of 277/480 VAC electric power. The plant
has 202 (new 1991), 335 (1984) and 314 (1998) kW generators. According to AVEC's end -of -
year 2007 generation statistics, the peak demand recorded to date at the Ambler AVEC power
plant is 336 kW, with an overall average plant load in 2007 of 170 kW.
AEA 09-004 Grant Application Page 5 of 9 9/3/2008
/dw:) ALASKA
ENERGY AUTHORITY
Renewable Energy Fund
Grant Application
The community of Ambler uses diesel and heating oil as the primary energy resources. They
also use wood heat to a limited degree. Annual diesel fuel consumption for power generation for
FY2007 [PCE report] was 105,793 gallons.
Annual electricity consumption for FY2007 [PCE report] was 1 „492,632 kWh
• The 50,400 watt system would be comprised of a single array consisting of a total of 225
solar modules. The arrays would be mounted on a 6,300 ft2 Triodetic® Multipoint®
foundation, a system specifically designed for northern climates and sites that are
unsuitable for standard footings and foundations.
• The optimum installed capacity will be 50.4 kW.
• The capacity factor is 0.1070
• The annual power production is estimated to be 47,231 kWh.
• We don't anticipate any barriers to this project.
• The power generated from the solar electric system will feed into AVEC's existing power
plant.
I: _ �� �l a ownersh�pd�k.i[sysues, �nclu[dmg ,w et-,` _ � e shave agreed to they
The planned location for the solar array is on a Municipal Reserve between the AVEC power
plant and the river. The lease of this land is under discussion with the IRA Village Council, but
has not been form finalized.
AEA 09-004 Grant Application Page 6 of 9 9/3/2008
ORITY
ALASHKA
Renewable Energy Fund
Grant Application
We do not anticipate any requirements for permits for this project. The installation will be within
adjacent to AVEC's power plant and tank farm. The nature of a PV system supported on
Triodetic foundations is a very low impact addition. There is no excavation or disturbance of the
ground surface involved.
We do anticipate any environmental or land issues on this project as the installation requires no
excavation and leaves the ground vegetation undisturbed.
• The total anticipated cost for this project is $605,000.
• The requested grant funding is $55,000
• Matching funds will be $55,000
• There are no other funding sources.
• The projected capital cost is $605,000.
• There are no development costs.
AEA 09-004 Grant Application Page 7 of 9
9/3/2008
/Z� ALAS
ENERGY AUTHORITY
Renewable Energy Fund
Grant Application
No grant funding is requested for O&M.
Not applicable
The cost worksheet is attached
The project will be incorporated into AVEC's power plant operation. Local plant operators provide
daily servicing of the plants. AVEC technicians provide periodic preventative or corrective
maintenance and are supported by AVEC headquarters staff, purchasing and warehousing.
A feasibility study by Remote Power is attached and includes an economic analysis. We have no
plans for project development work as this is a mature commercial technology.
• We expect this PV installation to displace 100,410 gallons of fuel over a 30 year life. This
equates to $1,359,707 in present value savings and $757,707 in net present value.
AEA 09-004 Grant Application Page 8 of 9 9/3/2008
ORITY
ALASHKA
Renewable Energy Fund
Grant Application
Non -economic benefits to Alaskans include: In addition to the direct fuel reduction are the
benefits of:
• reduced air pollution resulting from reducing fossil fuel combustion;
• reduced possibility of spills from fuel transport & storage; and
• reduced overall carbon footprint and its contribution to climate change.
The grant budget is attached.
AEA 09-004 Grant Application Page 9 of 9 9/3/2008
ORITY
ALASHKA
Renewable Energy Fund
Grant Application
A. Resumes of Applicant's Project Manager, key staff, partners, consultants, and
suppliers per application form Section 3.1 and 3.4
B. Cost Worksheet per application form Section 4.4.4
C. Grant Budget Form per application form Section 6.
D. An electronic version of the entire application per RFA Section 1.6
E. Governing Body Resolution per RFA Section 1.4
Enclose a copy of the resolution or other formal action taken by the applicant's
governing body or management that:
- authorizes this application for project funding at the match amounts indicated in
the application
- authorizes the individual named as point of contact to represent the applicant for
purposes of this application
- states the applicant is in compliance with all federal state, and local, laws
including existing credit and federal tax obligations.
F. CERTIFICATION
The undersigned 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.
sPrt ame
n �p kovj
Eh
�� Signafu�
V�
k`fle
e (tee V" r ,YD
v"
AEA 09-004 Grant Application Page 28 of 28 10/8/2008
TAB 2
RESUMES
;
TAB 3
COST WORKSHEET
/=0 ALASHKAGEED Y AUTRenewable Energy Fund
Application Cost Worksheet
Please note that some fields might not be applicable for all technologies or all project
phases. Level of information detail varies according to phase requirements.
1. Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
47,231 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.
RFA AEA 09-004 Application Cost Worksheet revised 9126108
Page 1
ALASKA ENERGYAUTHORITY Renewable Energy Fund
RFA AEA 09-004 Application Cost Worksheet revised 9126108 Page 2
/B`:)�ALASKA
ENERGY AUTHORITY
Renewable Energy Fund
6. Power Purchase/Sales Price
7. Project Analysis
1.247
27.8 yrs simple; 16 yrs LCCA
RFA AEA 09-004 Application Cost Worksheet revised 9126108 Page 3
TAB 4
GRANT BUDGET FORM
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 a
0 0 Ln Ln Ln Ln o
Ln 0 P- o �6 Lri Lr
Ln ' d' N (.0 r i tn. O
V)- ch V). tn• tn. LD
Q ih .44
F
O
F-
c
LL
v
t
O
O
Li
s
Y
U
4-
ULA
C
N
�
C
vi
w
{p
�
V
J
�
L1
m
O
O
O
O
O
O
�
O
O
O
O
O
O
O
O
O
O
O
O
u
0
0
0
0
Ln
0
41
Ln
O
N
Lr
a -I
U
to
-tt
t�
try
to
i
t
�
U
C
J
LL
Q
O
O
O
O
O
O
O
O
O
O
O
O
On
L
O
O
O
O
O
O
cu
C
O
O
O
(=
O
O
w
C
O
O
Ln
Ln
Ln
Ln
c6
O
Ln
O
N
in
r-I
tn
Y
N
Z
L.L.
V •
)t/)-
�
V)-
-Ln
-(n
Q
O
41
a
N
O
'^
LL
z
F
LL
W
�p
0
�
m
LL
N
a-+
O
4-
a ,
C
C
}
Q
C2 E
C
4- LJ
41
cr
�
Ln
a
E
�
ci
N
F
O
�
-C
M O
1
a
°'
+
O
O
> .0
a
V,
Ln
Z
C
CL
4J'
(�
w
O
'n
tip
O
U
0
O
+°
Z
C7
N
o��
aU E
4-U
Ln
m
r-i
N
cn
Ln �.o
O O O O O O O o
O O O O O O O o
O O O O O O O C
O O O tn- O i/} th O
0 O O
O
O
C71 rl O
Ln
Lr
Ln N �l Cf
N
r-4
O
gm
Q
t!F
In
O
F
o 0
0
0 0
0
O o
0
O O
O
O 0
a
cq
�
V
v
Ln O O
O O
0 0
0 0
O Ln
Lr r+
� th
�
o
0
0
0
00
o0'
00
N
OLn
co
t�
F
O
m
O
c
o
O
O
O
O
4
Ln
N
Ln
LLn
tNn-
V)
N
O
O
O
O
O
O
O
O
lzt
LLn
d
IA-
th
O
0
0
O
O
LO
tn•
O
O
O
O
Ln
N
tn•
0
O
0
O
O
Lri
Ln
i!}
0
0
0
0
Ln
LU
tsi
Co o > S
L L
N
Q O N Ln O F
N O ++ W
+- ma
Q O f6 O
cm a, a_'
m G U N 4- V L 0
O U > .0_O Q " � J
4 v Q
� O C2 c c F
m 0 ►L Lu Ln U U 0
TAB 5
DELEGATION OF AUTHORITY
ALASKA VILLAGE ELECTRIC COOPERATIVE, INC.
ti
1 Delegations of Authority from the Board of Directors to the President & CEO
I. OBJECTIVE
To define the delegations of authority and responsibilities from the
Board of Directors to the President and Chief Executive Officer to
enable him/her to adequately direct the operations of Alaska Village
Electric Cooperative, Inc. and to report to the Board on the results
achieved.
II. POLICY
A. Planning
1. Policies
To formulate, with the staff as appropriate, the policies of
Alaska Village Electric Cooperative .to be recommended by the
President and Chief Executive'Officer to the Board of Directors
for their consideration. Such policies shall be reviewed by
the President and Chief Executive Officer at least once a year
and a recommendation made to the Board on any revisions
required.
2. To develop, with the staff, the viewpoints, objectives and
�y goals of Alaska Village Electric Cooperative and to review
periodically these objectives and goals, as well as the results
achieved, with the Board.
3. Long and Short -Range Plans
To conduct studies with the staff and outside consultants, if
necessary, and recommend to the Board short and long-range
plans, including plans in such areas as system studies,
engineering° work plans, power requirements and load forecasts,
financial forecasts, energy management, member and public
relations, construction, facilities, etc., and to report to the
Board on results compared to such plans.
4. Membership Meetings
To develop, with the staff, plans for annual and other meetings
of Alaska Village Electric Cooperative, and to make appropriate
recommendations to the Board.
5. Work Plans and Budgets
To formulate, with ,the staff, annual work plans and budgets for
Alaska Village Electric Cooperative and recommend them to the
Board for their consideration,and to provide detailed quarterly
reports on revenue, expenses and other results compared to such
plans.
2001.1
AVEC - RUS Grant Application Applicant Eligibility
Delegations of Authority from Board to President & CEO
i
6. Legislation
To analyze and determine, with the Board and with the staff and
in coordination with organizations such as Alaska Rural
Electric Cooperative Association (ARECA) and the National Rural
Electric Cooperative Association (NRECA), state and federal
legislative and regulatory matters to be proposed, supported or
opposed consistent with Cooperative goals and philosophy.
B. Oraanization
1, organization Structure
a. To periodically review activities of Alaska Village
Electric Cooperative and to determine with the staff as
appropriate, the organization structure best suited to
carry out "the overall objectives of Alaska -Village
Electric Cooperative within the limitations of the
budget.
b. To determine, with the appropriate staff members, the
need for additional positions, the transfer,
reassignment, or elimination of present positions, and to
effect such changes, provided they are within the
limitations of the personnel costs of the. approved
budget.
2. Selection of .Personnel
a, To develop or approve standards and qualifications for
use in recruitment, transfer, and promotion of personnel.
Such standards and qualifications should meet all federal
and state legal requirements.
b. To select, appoint, transfer, promote, demote, discipline
and terminate personnel-.
3. Training
a, To ensure that the staff members are trained in
accordance with the qualifications and requirements of,
their positions.
b. To initiate and promote, through appropriate staff,
training programs for all personnel within the
limitations of the approved. budget, including sending
personnel to training programs outside the organization.
4. Performance Appraisals
a, To appraise, at least annually, the performance of
immediate staff members and to counsel with them and
assist them to develop and improve.
2001. 2
AVEC - RUS Grant Application
Applicant Eligibility
Delegations of Authority from Board to President & CEO
b. To ensure that a performance appraisal program is
established and ,carried out for all personnel and that
adjustments for those outside the bargaining unit are
,.� based on merit.
5. Position Descriptions
To ensure that written position descriptions and job
specifications are prepared and reviewed as necessary for all
personnel.
6. Fringe Benefits
To administer or approve activities and actions with respect to
annual leave, Holidays, and other fringe benefit programs for
the personnel within established policies and within the -
limitations of the budget. A report shall be presented
annually to the Board or committee of the Board describing -the
various benefits and employee and employer contribution, if
any, and what percent fringes are of payroll. ,
7. Consultants
a. To recommend to the Board the employment of general
counsel and independent auditors., and contracts and
agreements for, their services with the committee making
an appropriate recommendation to the Board.
4 ,
b. To select and appoint other outside specialized
consultants, and to negotiate contracts or agreements for
services of such specialized consultants, within the
limitations of the work plan and budget, and to advise
the Board of actions taken.
c. To report to the Board periodically on services provided
and the fees received by principal consultants.
8. Wage and Salary Administration
a. To develop wage and salary policy and present it to the
Board for approval.
b. To determine all salaries, except the President and Chief
Executive Officer's, within the Boardapproved wage and
salary policy and within the limitations of the budget.
'A report is to be provided to the Board annually on the
administration of the wage and salary policy.
9. Labor Relations
a. To negotiate, with or without consulting assistance,
labor contracts and make appropriate recommendations to
the Board.
2001.3
AVEC - RUS Grant Application Applicant Eligibility
Delegations of Authority from Board to President & CEO
i
b. To administer the approved labor contract and see that
the appropriate supervisors understand the provisions of
the contract and its administration.
C. Operations
1. Overall Administration
a. To direct the day-to-day operations and activities of
Alaska Village Electric Cooperative. except as specified
otherwise by the By -Laws or the. Board; to delegate
authority to immediate staff; to authorize further
delegation of authority to any level of management with
full recognition that the President and Chief Executive
Officer cannot be relieved of overall responsibility or
accountability.
b. To manage operations of Alaska Village Electric
Cooperative in accordance with the policies of the Board
and in accordance with policies and procedures of RUS and
other lending institutions; as well as applicable
federal, state, and local laws.
C. To designate an appropriate person to serve as Acting
President and Chief Executive Officer in an extended
absence of the President and Chief Executive Officer. In
case the President and Chief Executive Officer becomes
incapacitated, the Assistant President and Chief
Executive Officer shall serve temporarily as Acting
President and Chief Executive Officer until the Board of
Directors takes appropriate action, at a meeting to be
convened as soon as possible.
d. To ensure that staff advice and assistance is provided to
the Board .and its committees, and to participate in the
deliberation of these committees as requested or
required.
e. To accept invitations to, participate in or designate
other staff members to participate in national, regional,
state, and local meetings which further the best
interests of Alaska Village Electric Cooperative, within
the limitations of Board policy and the approved budget.
Participation by the President and Chief Executive
Officer in such activities which require considerable
time over a sustained period requires the approval of the
Board. . The President and. Chief Executive Officer's
serving on the board of other organizations shall be
reported to the Board.
f. To serve as the authorized spokesperson for •Alaska
Village Electric Cooperative on matters and to keep the
Board up-to-date and well informed on such matters.
2001.4
AVEC - RUS Grant Application
Applicant Eligibility
Delegations of Authority from Board to President & CEO
g. The President and Chief Executive Officer shall take all
necessary steps in the event that the Cooperative is
served with legal process to protect all interests of the
r.
Cooperative with respect to such litigation and such
matters shall be brought to the attention of the Board at
the next scheduled meeting.
2. Membership Services
To direct membership services in such areas as, but not
necessarily confined to, public and member relations, load
management, energy conservation, communications., and research
as authorized by the Board.
3. Legislation
a. To develop and carry out, in coordination with
organizations such as ARECA and NRECA, and within
expressed Board philosophy, a legislative program
furthering Alaska Village Electric Cooperative's
objectives and policies. Such a program will include,
but not be limited to, research, preparation, and
presentation of testimony before appropriate committees,
consultation with members of Congress, the State
Legislature, and state and federal administrative and
regulatory agencies.
�'"'• b. To participate with allied groups to obtain their
increased understanding and support of Alaska Village
Electric Cooperative's legislative and regulator
objectives and programs. z,
4. Financial
a. To make expenditures in accordance with the approved
budget, including ap
proval of non -budget items up to
$100,000 or all non -budgeted items which, in his
judgement are vital to effect unanticipated emergency
maintenance or repairs.. Non -budgeted items exceeding
$100,000 which are not items vital to effect
unanticipated emergency maintenance or repairs, must be
presented to the Board -for approval.
b. To invest or reinvest funds, cash investments when due,
and cash government bonds, when and if necessary to
protect Alaska Village Electric Cooperative's cash
position and to carry out an effective cash management
program. Investments will generally be made in CFC
securities, in federal government insured or guaranteed
securities or in other securities approved by the lending
agencies.
C. To authorize and approve the travel expenses of personnel
except the President and Chief Executive Officer's on
2001.5
AVEC - RUS Grant Application Applicant Eligibility
Delegations of Authority from Board to President & CEO
company business within the limitations of the budget and
within established policy. Such expenses shall be
,l supported by itemized expense accounts with receipts ,
attached, as appropriate. Expenses of the President the t
Chief Executive Officer will be reviewed by
Secretary/Treasurer.
d, To approve account systems, procedures, statistics, and
types of reports necessary for sound financial management
and to meet the requirements of lending and regulatory
agencies and for necessary control information required
by the Board.
e. To purchase or lease all equipment, vehicles, hardware,
furniture, materials, and supplies within the. guidelines
of the budget. All purchases shall comply with RUS
policies or procedures.
f. To negotiate contracts for construction in accordance
with RUS procedures. The contracts will be awarded in.
accordance with RUS procedures so construction completed
can be reimbursed from loan funds without delay.
g. To execute and deliver purchase orders or contracts for
projects previously approved by the Board.
h. To approve and sign changes under contracts previously
approved by the Board and RUS if under $50,000. Those
changes in, excess of $50,000 are to be reported to the t
Board at the next Board meeting and all changes are to be
approved by RUS if appropriate.
i. To authorize individual memberships in civic clubs and
organizations in which he/she thinks .of him/herself or,
staff members would be beneficial and to authorize
payment' of dues by Alaska Village Electric Cooperative
within the limitations of the budget. Professional
registration fees will only be paid for registration in
the State of Alaska, if such registration is desirable or
required.
j. To execute and delivery on behalf of Alaska Village
Electric Cooperative agreements essential to the
management of the Cooperative, such as affidavits,
agreements, and leases to implement Board actions.
k. To negotiate franchises and execute all petitions and
documents in relation thereto; to acquire by purchase or
lease all easements and power plant sites and execute,
deliver and accept all documents relating thereto; to
exect:s•: deliver all environmental studies and
reports;' o'make apglica. ion for all permits relating to
the operations of Alaska Village Electric .Cooperative's
design, route, and determine the site for all facilities.
2001.6
AVEC - RUS Grant Application Applicant Eligibility
Delegations of Authority from Board to President & CEO
1. To perform all acts necessary or incidental to the management
of the operations of Alaska Village Electric Cooperative,
' unless such acts are specifically reserved to the Board
pursuant to law, and Articles of Incorporation, the By -Laws, or
policies.
J
5. Controls
a. Operations
To submit periodic and special reports to the Board on
conformity of operations with approved policies and
programs; to recommend any revisions requiring Board
approval and to direct any remedial action required.
b. Finances
To submit periodic and special financial reports to the
Board to keep them informed of Alaska Village Electric
Cooperative's financial position and conformance to
financial plans and forecasts, and to see that all
persons having access to cash or responsible for
purchasing of materials are properly bonded in accordance
with all requirements of the lending agencies.
C. Budgets
To report quarterly to the Board on revenues and
expenditures compared to budget. To recommend any
revisions required, and to- direct any necessary remedial
action.
d. Annual Financial Audit
To participate with the Board in the review, with the
auditor present,. of the annual financial audit and
management letter and to_ direct any remedial action
required and to ensure that the management letter, along
with the Audit Report, --is sent to each Board member prior
to the meeting at which they are to be discussed.
e. Materials Management
i. To determine the amount of and establish proper
control of all physical inventories to minimize
investment in inventories needed to meetoperating
and construction needs.
2. To ensure that a system is established to
accurately account for all materials used.
f. Member Complaints
To submit periodically to the Board an analysis of member
AVEC - RUS Grant Application
2001.7
Applicant Eligibility
Delegations of Authority from Board to President & CEO
complaints and to take any corrective action required or
to recommend appropriate revisions in Board policy.
g, Reliability of Service
To submit annually to the Board a report on service
reliability and any remedial action taken-
h. By -Laws
To report to the Board on annual review with the General
Counsel of the By -Laws and to recommend any revisions
required.
i. Availability of Power Supply
To report periodically to the Board on load growth
compared to the power requirements studies and to
recommend plans to meet anticipated growth to ensure an
adequate and reliable supply for the members' at the
lowest possible cost consistent with sound business and
management practices.
j . Rates
To continually study power and other costs compared to
projections and to recommend to the Board, as far in
advance as possible, any changes in retail electric rates
necessary to maintain financial strength and stability
and to meet all requirements of lending and regulatory
agencies.
k, Construction
To review construction. practices with appropriate staff
to make sure projects are being constructed -in accordance
with RUS policies and procedures so that reimbursement
for completed construction can be obtained promptly.
1. Internal Auditing
To independently assess the adequacy, effectiveness and
efficiency of the system of control within the
organization and the quality of ongoing operations
against policies and procedures established by management
and/or the Board, and rules of RUS and other lending
institutions; as well as applicable federal, state and
local laws.
N, RESPONSIBILITY
A. The President and Chief Executive Officer shall report to the
Board periodically on how these delegations are being carried
2001.8
AVEC —RUS Grant Appl
ication Applicant Eligibility
Delegations of Authority from Board to President & CEO
out. Chairman of the Board shall be kept appraised of all major
issues on a regular basis between all Board Meetings. The
^ President and Chief Executive Officer may make further
delegations to his staff as required.
B. The Board is responsible for approving any changes in the
delegations to the President and Chief Executive Officer.
C. The Chairman shall be responsible for seeing that the
performance of the President and Chief Executive Officer is
appraised prior to his/her anniversary date each year by the
Executive Committee of the Board and that a report is made at a
subsequent meeting to the full Board, on the results of such
appraisal, and that the results of such appraisal are discussed
with the President and Chief Executive Officer.
Date Adopted: 3-23-92 Resolution # 92-18
Date Revise 5-05-00 Resolution # 00-37
v,444---
ATTEST: 67. YV
AlYa Walker, Secretary
2001. 9
AVEC — RUS Grant Application Applicant Eligibility
RESOLUTION 00-37
Delegations of Authority from the Board of Directors
To the President & CEO .
WHEREAS, the policy for delegation of authority from the Board of Directors to the General Manager has
been reviewed; and
WHEREAS, the title of General Manager has been changed to President & CEO and this change has been
made in the policy noted above.
NOW, THEREFORE, BE IT RESOLVED thatthe attached updated policy for delegation of authority from
the Board of Directors to the President & CEO is approved.
Certification
1, Julia A. Walker, Secretary, do hereby certify that the above is a true and correct excerpt from the minutes
of the meeting of the Board of Directors of the Alaska Village Electric Cooperative, Inc., 4831 Eagle Street,
Anchorage, Alaska 99503, on the 5th day of May 2000, at which meeting a quorum was present.
(,,�'iGE ELECTq;�..
•'�,,
C�
.�� ; GO P C�T� O
SEAL `
- a
AVEC — RUS Grant Application
ulia Walker, Secretary
las a Village Electric Cooperative, Inc.
2001.10
Applicant Eligibility
TAB 6
SUPPLEMENTAL MATERIALS
• SHUN13NAK SOLAR FEASIBILITY STUDY
Remote Power Inc.
981 Gold Mine Trail
Fairbanks, AK 99712
Solar Energy Feasibility
Study
For the Alaska Village Electric Cooperative (A VEC),
Shungnak, AK
Report Date: 06 October 2008
Prepared by Bruno C. Grunau, P.E
Revision B
Solar Energy Feasibility Study
For the Alaska Village Electric Cooperative (A VEC),
Shungnak, AK
Introduction:
Alaska Village Electric Cooperative (AVEC), has requested a Solar Energy Feasibility Study
for their facility located in the village of Shungnak, AK. The following report summarizes
the solar energy system estimated cost, anticipated annual solar power produced,
anticipated month -by -month power produced, simple payback calculations, and a Life Cycle
Cost Analysis (LCCA) for a solar energy system. This study is intended to evaluate the
cost-effectiveness of such a system in the intended location.
References:
1. "PVWATTS v. 2: A Performance Calculator for Grid -Connected PV Systems,"
retrieved 03 October 2008, from the National Renewable Energy Laboratory.
Web Source: htto://rredc.nrel.gov/solar/codes algs/PVWATTS/version2/
2. Department of Energy publication DOE/EIA-0384(2007),"Annual Energy Review
2007" published June 2008
Web Source: http://www.eia.doe.ciov/overview hd.html
3. Department of Energy publication NISTIR 85-3273-23, '"Energy Price Indices and
Discount Factors for Life -Cycle Cost Analysis — April 2008", Rev. 5/08
Web Source: http://wwwl.eere.eneray.aov/femp/pdfs/"ashb08.pdf
Site Survey:
A site survey was conducted to determine the locations on the site property best suited for
solar photovoltaic (PV) arrays. The site survey, typically performed on -site, was conducted
by aid of photos and physical descriptions of each site from AVEC personnel. Optimal PV
array locations maximize the available solar energy and minimize solar obstructions to
reduce shading on the PV arrays. Solar insolation data was estimated for the site per
reference (1). This software incorporates 30-year historical weather data from the
National Renewable Energy Laboratory (NREL) for specific locations in North America as
well as NREL's Internet Map Server (IMS) at http://www.nrel.,ov/gis and estimates the
amount of solar radiation received for a given site and the amount of energy produced for
a given system.
Data from the reports generated by reference (1) was used as a basis for estimating the
month -by -month solar power generated and the cost analyses described below.
Facility Overview:
The AVEC Shungnak facility produces diesel -generated power at the current cost of
$0.4610/kWh. Not only are increasing fuel costs a primary concern, but also is the
increasing cost of transporting the fuel to remote villages such as Shungnak. The use of a
photovoltaic system is being considered to supplement power generated by AVEC in an
effort to reduce the overall cost of energy production.
1
Description of Solar Energy System:
The proposed PV system is a grid -tied, batteryless 50.4 kW system. In an effort to shut
down the diesel generators on a regular basis, battery storage may be considered and
integrated into the system at a future date. A solar energy system preliminary design has
been created based on the recommendations of Remote Power, Inc. and described as
follows:
The 50,400 watt system would be comprised of multiple arrays consisting of a total of 225
solar modules. The arrays would be mounted on a 6,300 ft2 Triodetic0 Multipoint0
foundation, a system specifically designed for northern climates and sites that are
unsuitable for standard footings and foundations. Note: The actual area of the foundation
is dependent upon the final site selection.
The arrays would be manually adjusted twice a year to maximize solar radiation
availability. The arrays would be tilted to approximately 52 degrees from horizontal from
April through September to maximize the solar radiation from the high summer sun path.
The array would be adjusted to 90 degrees from horizontal from October through March to
minimize snow accumulation and to maximize solar radiation from the low winter sun path.
The adjustable array utilizes eight 7,000 watt inverters to provide 277 VAC power. The
array would be located on the property northeast of the AVEC power plant and fuel storage
facility (tank farm). Refer to Figure 1 for the proposed array location.
The system components would include:
a) (Qty 225) 224-watt panels on adjustable racking mounted directly to a Triodetic0
MultipointO ground foundation system with PV combiner boxes, DC disconnects,
and fuses/circuit breakers;
b) wiring and necessary conduit from the arrays to the facility where the electrical
interconnection is located (refer to Figure 1); Note: Cost of wiring and conduit will
vary greatly, depending upon final proximity of the array to the facility where the
interconnection is located.
c) one AC circuit breaker enclosure, one DC circuit breaker enclosure, several AC and
DC circuit breakers and disconnects, eight 7,000 watt grid -tied inverters, and
standard electrical system conduit components (elbows, junction boxes, etc) in the
mechanical room.
The estimated installed cost for this system is $605,000, based on $12.0/W.
2
v
0
y m > j vLLO v ++
L O
O -0 m '' m T'
Q O cE m> O v Co N
fi
i O " E O
v a M > = N m
O O >
'-n U O Qv
Onf, vvamam+,
r-1 L Q} CL OJ 'L
o>�41mL
m w 4+ m u0- w v v
o a v� o v >
V a �O my
i
v � 0- -H " :EN v to O fu
L= O E >� -0i v
di U m v O>
cn
= Q ++
t o E mtn a cvi
w j _
v) ] i o cQ a)m
o m N >> O i
= to v __L o
O O QL v to
C i
O = L >
E N N O O O a)0
m E
L
> v
00
N Oly O c
= m o c 0
L Vqj cp 7 v O M v t O
rnO�i a30+Ia+�4,
cu Lq E >, O 6
+v_+C 43 v O" E},
to O� 'O R v v y m
-p C1 O v 5 (m L C-
Mv o o Em L aa) o,0
o h C w Q m m U
io N mm E ° f° N
LU V j L L L m= L
l m> 0, � N v
E m v �v w >.
c�—
E o H o c 0 mCU
v L 41
-tZL v m (U
>• v H O= O v= Q
w
O
-0-0 V Cl. OL O
Ln N O 0i0 a�
CL i 'C tQ Q. v N i v 0)
O m O,Y > 0
L (Uy :�+ ate..+ > 'O Q- CD
L
a)y Q a) E- U >u m d O
a✓ V v cn m E oqj
m fl
>.�E�tnO
v t Qi v4) O m
Vi c N
O m ,C C 0 -0 E }a
o �,n� m v > m " =o
O 0 0 �` O iv, v ,'' N O p
— 3 t V v 3 E,�
pf
v Q+ O i 0 0� 7 L
E m— 0 v L
m 0-4— QC3 t t cn m= -0 O
O O v l O M O= aJ
to E L r: m a✓ L m U L ava
to a r �: -O U cv C v w R
a_ m to O v -0-6 o v 3
G -0 V In ((Q� � of 41 o U
VLW '= L 't-- T A ,q- m
L v O L m
r- En to 4-- > E fa fu
m� E O v �_a 0 co L u (u
v U z C L O E m
v in C v = i� v
0
z
� a
.fl �
y O
En C
X v
� O t
m
2 � L
vo v �u
20 Q to
O O
3
m O
v O o
~ O 3
z O
U, O_-=
oa��
o _^ U M
E m -0
C o
O O CD CO
O N N M
L
L
m
E c m
v 0
c v > n
0) (D m
v CL v
7 v
O —
LLO >
(V a+
o 41 c 0
c
U) o
L v
O m to O
wcm0-
tn0U^
avi 'Ln
L o O c
O) CL O O
00 3: N
CDX
� w L
p¢mE
C v 0
O Q y v
O 0)O
v = 3 v
0
-00=�
as dO
0 l
fu
'n t v
E i =
�E A
v m i
t,mMm
C
+'+ 00 O
m
v is y
O
Q\ Q
i o �
0 X X
m
cu
a v U.)
Ln 0
� E
V-
Projected Energy Cost Savings:
The current power generation cost for the AVEC Shungnak facility is $0.4610/kWh
and is anticipated to increase annually a minimum rate of 80/a.
Reference (2) was used as a basis for an estimation of the anticipated annual
energy rate. Since rural Alaskan villages are dependent upon diesel -powered
generators, the prices of electricity in these villages are largely dependent upon
fuel prices. Table 5.22 of this document lists the refiner sales prices (excluding
taxes) for selected petroleum products from 1991 through 2007. Due to the
extremely cold temperatures in these villages, the use of Arctic #1 diesel fuel
and/or kerosene -type jet fuel is required for use in the generators. The nominal
prices for jet fuel excerpted from this table are summarized in Table 2 below. (The
historical prices of Arctic #1 diesel fuel are not available in reference (2), therefore
only the prices of jet fuel are listed.)
The nominal price is the price paid for a product or service at the time of the
transaction. Nominal prices are those that have not been adjusted to remove the
effect of changes in the purchasing power of the dollar; they reflect buying power
in the year in which the transaction occurred.
Nominal Price per Gallon, Excluding
Year
Taxes
1991
$0.65
1992
$0.61
1993
$0.58
1994
$0.53
1995
$0.54
1996
$0.65
1997
$0.61
1998
$0.45
1999
$0.54
2000
$0.90
2001
$0.78
2002
$0.72
2003
$0.87
2004
$1.21
2005
$1.74
2006
$2.00
2007
$2.17
Table 2. National Average of Refiner Sales Price for Kerosene -Type Jet Fuel (1991-2007)
Figure 2 plots the national average of refiner sales price for kerosene -type jet fuel
from 1991 through 2007. A trendline was created to describe the rate of the
overall annual energy cost increase for the given time period. From this trendline,
however, a national annual price increase of approximately 8% is evident from
1991 until 2007. Since AVEC's energy costs are currently dependent upon these
fuel prices, an annual energy cost increase of 8% was used for this cost analysis.
Table 3 provides the projected energy costs (fuel -adjusted energy rate) based on
the 8% annual energy rate increase.
National Average Sellers Sales Prices for Jet Fuel
(Nominal Price per Gallon, excluding taxes)
$2.50
$2.00
y = 9E-69e _o7s3x
y^� $1.50
v
d
v
a $1.00
$0.50
$0.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Year
Figure 2. National Average of All Sellers Sales Price for No. 2 Diesel Fuel (1994-2007)
with Trendline
Tahla s. Tahi3lated Proiected Enerav Cost Savings (8% annual rate increase)
Avoided
Avoided
Year
Cost
Year
Cost
$/kWh
$(kWh
Year 1
2008
$0.46
Year 16
2023
$1.46
Year 2
2009
$0.50
Year 17
2024
$1.58
Year 3
2010
$0.54
Year 18
2025
$1.71
Year 4
2011
$0.58
Year 19
2026
$1.84
Year 5
2012
$0.63
Year 20
2027
$1.99
Year 6
2013
$0.68
Year 21
2028
$2.15
Year 7
2014
$0.73
Year 22
2029
$2-32
Year 8
2015
$0.79
Year 23
2030
$2.51
Year 9
2016
$0.85
Year 24
2031
$2.71
Year 10
2017
$0.92
Year 25
2032
$2.92
Year 11
2018
$1.00
Year 26
2033
$3.16
Year 12
2019
$1.07
Year 27
2034
$3.41
Year 13
2020
$1.16
Year 28
2035
$3.68
Year 14
2021
$1.25
Year 29
2036
$3.98
Year 15
2022
$1.35
1 Year 30
2037
$4.30
6
W
CL
�-C3a
tz ,U
m +�
oP v¢�
0
OAR m
CL
q)Q
CL +� G r_
c6 O _>
CrI
O � - 44
cn +-0+
Q in Q) �- `II O
o •o
C ty uh 16 Cz Q
M p fu O E
O Q3 O
O U qz
+1
O N 13 tv
p y i
O
m E O
E O (Ut3
C N j
ai Up tn m
O
0 4- � U .�
N v O O
OO N O o I?
N � � -.��•,
V 1 INN CL
U '� .� C Q
� U
N
c6 O R y
Cam)
y q O
L m�
+R+
5 T L L Q
O- X
O Q
R q) O °
..O O
R (o 0) O U t3
5-0;'wU a)
M CL
f6
Q3
Q
C �1
[Q O
Mn
R
� 'O 0
U W YL Q y
N a) i
R
4Z
Ln u)
O VC1 0 Ch
m v O 7 CL
'tn �
H
C N 4
C C C U
C O�
4� O.Ca
O o 01
y\tea
� cn
6 � a N-0
fl- O
m
'n
�U
N� U
v (UR N
m G
O ?? C O
U N U h �.
M C
O
`�
E O_
0)Q
L O t
o'n
J q)'(Z'
�� c
C o
w a� n,� � U
N
V
R3
4-
E �+
rn�
C�
N�
��.�
cz .v 3� N O
C U
Q Q o
U
'�
OF?
f-
y y Q) Q 0 .H
OU
.Qy Q)
i0
'..� > y w
CD C N R
O N O p �
O< N O
., O
Q- j, 4O o
1 O_
QI O +y
O) 01 zz
N��
O O
O" i CM g v
) y +.� Ql
y O v
C Q) tp
y O w > O ++
Ora
h +.i � I-
Q
C C V EL
Q
i- t O O
a O .0 Q)
"I \ .� N
U a) t n. i
O° Q} O C
L�
j
C
-o
C�� tp
QO Ul C y
a 63
cUi) Ql
t! CD O
Q)
Oy�+�. y
W C�
Q
� a=ia�i
��. O % Q1 ��,
p O O
a+ O cn 0
�� U O
=\
q)
M, O O
Cy06 �I-M,
cm) a
1
G i m
0 0
3 d M Lq -t to
a fir¢ Q
rvm
v �
G n
y� O
03
f1 . ; Z h
�M����
Z c�3 T
N
G
d)E O � M ce) LO O
>.� r +� -,t r N fn
dtu
O r CU
R
Y U) N ctf
U R Q N CIS
N
JR R z (o (D O
Q a. T T --
ai
h E
Q�
Q. R 0 >, >, T
E T •i a0 co 00
iT)(' IL NNN Y
M M M O
3 ;
G 0 o
Q fT T T
V) >
N N N 0
H}�iEF} U
CIS
cn
= m MV-p U
sv C) I-
G M N CU
d (R .1 OT 0 N
a>N NCO mM a
H3 613. Z5
c
O
G -D
O == o °U)
R Cl as
U) tC rs
5
tf} Y co
co
G Y O R N U
4 IL N
V C
So r+ p G
l4 O cis
N
0 o H
rq IL co
LU (.a T
Y to cn
i w N
w QCIS ca
R p. OOO p
IL T N M Z
C
N
c
(D
c
O
N
CD
_ O
N U)
c3 �
++ a)
Q 4
co
O,
47 N
> >
C C
rc-+ -0
C: O
O Rf
U
7 y
N 70
c a)
Zo m
N UO
4)
-0 O-
O
co
cd 0 �
0 � a)U E
cd cL 0
C C �
Q O O
.I. U U z
y U -0 Q
O N - (D .
U o 0-0-
0
U 0
0 N a) Q N
O
E o v
N H N > C
ou�w2.i
'i' <n cn
CD 0)
w 9 > -0 a)
11 > N O
-0 cca
N cr
c
C
Y R 7 N U
U �
N a) .� 0
0 0
d �
QaII cr
—
E I r n
CD CA Z I— Q
n
Appendix A
Simple Payback and Life Cycle Cost
Analysis Worksheets
LIFE CYCLE COST ANALYSIS
Solar Energy System Evaluation for the AVEC Shungnak, AK Facility
ENERGY CONSERVATION PROJECT
Caton:
nergy Conservation
Measures
):
I
ECM Cost:
$605,0oo
Annual cost savings:
$21,773
AVEC Facility, Shungnak, AK
50,400 Watt System, consisting
of an adjustable
225-panel army mounted on aTriodefic
(atecincity) in O.S. Ddiars
foundation on the
properly adjacent to the AVEC
northeast property line. The array ufilizeseight
Based on cost factor of
$0.4611KHW.
EGM Life:
1 yearsSavedas:
Armory ysis.
aving5 to nvestmenl atio,
PV savin s1PV Investment
u.43
Annual KWH Savm s: 4 , 31 H
KWH Rate:
(Initial Rate)
Yr 1 $ Sv s:
D.46 !K
$21,773
H
nergy sea a rain a e: T. year
rap a ay a
605000
21773
er.
=
27.79 Years
Recurrin Maint. Cost: $400 first ear
iscoun a e: 3 u
ain , ca a,on a e: � % year
.Year.
Year
Year
Year
Year
Year
Year
ear-
ear
ear
Year
4
5
6
- 7
8
9
10
ECM rosej4i5u%uuUJl
Projected KWH Rate:
$0.46
$0.50
$0.54
$0.58
$0.63
$0.68
$0.73
$0.79
$0.85
$0.92
%sce :ab en titled "P rolecfcd AK Payments')
Energy Coal Savings:
$21.773
$23,515
$25.397
$27.428
$29.623
$31,992
$34,552
$37.316
$40,301
$43,525
Le. 5�s O 8 M Costs:
($400)
($408)
($416)
($424)
($432)
($441)
($450)
($459)
($468)
($477)
Misc. Benefits/Costs:
casn rtom,: ($6D5,00u)
40,373
$23,107
$24.981
$27,004
$29,191
$31.551
$34,102
$36,857
$39,833
$43,048
Cum -Cash Flow: ($60W)DO)
($583,627)
($560,520)
($535,539)
($508,535)
($479,344)
($447,793)
($413,691)
($376,834)
($337,001)
($293,953)
Year
Year
Year
.ear
Year
can
Year
Year
ear. �
ear
11
12
13
14
15'
16
Y7
18
19
20
Projected KWH Rate:
$1.00
$1.07
$1.16
$1.25
$1.35
$1.46
$1.58
$1.71
$1.84
$1.99
'see lab entitled "Projected Al: Payments")
Energy Cost Savings:
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Less O a M Costs:
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Misc_ Benefits/Costs:
Nat:;3sn riow:
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Cum.Cash Flow:
($293,953)
($293,953)
($293,953)
($293,953)
($293,953)
($293,953)
($293,953)
($293,953)
($293,953)
($293,953)
Year
Year
Year
Year
Year
Year
Year
Year
Year
Year
21
22
23
24
25
26
27
28
29
30
Projected KWH Rate:
$2.15
$2.32
$2.51
$2.71
$2.92
$3.16
$3.41
$3.68
$3.98
$4.30
sse tab enIlllad "P ected AK Pey:nenls")
Energy Cost Savings:
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Less O & M Costs:
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Misc. Benefits/Costs:
:'let nasal r1mv:
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Cum.0 ash Flow:
($293,953)
($293,953)
($293,953)
($293,953)
($293,953)
($293,953)
($293,953)
($293,953)
($293,953)
($293,953)
DiscountRate:
' %
Present Value Savings:
$260,373
Net Present value (NPV :
($344,627
intern area etum }:-nu.uu%
IRR assumeterims inroceeds can be invested at the IRR rate.
uste ntema ate or Refurn fAilimr. -b.uu-;
where AIRR = ff l.Discount Rale]*[(S(R}^(1/U(e)
])- 1
AIRR assumes interim proceeds can be invested at the dsmunt rate.
A-1
LIFE CYCLE COST ANALYSIS
Solar Energ S taro Evaluation for the AVEC Shungnak, AK FacilityENERGY
CONSERVATION PROJECT
Location:
Energy Conservation Measures (ECM):
I ECM Cost:
$BDSA00
Annual cost savings:
$21,773
AVEC Facility, Shurlgnak, AK
50,400 Watt System, consisting
of an adjustable 225 -panel array
mounted on aTriodefic
(electricity) in US. Dalam
foundation on the property adjacent to the AVEC northeast property line. The array utilizes eight
Based on cost factor of50.451/KHW.
__%W-ry`X-n@ysis.XLs
Lila:
20 years
saved as:
savings to investment Ratio. -
PVSavin s/PVlnveslment
1.13
Annual KWH Savin s: 47.231 KWH
KWH Rate:
(Initial Rate)
Yr 1 $ Sv s:
$D.46 /KWH
$21,773
nergy sc a on Kate: a year
tmp e y a
605000
I21773
erto
=
27.79 Years
ecurnn Maint. Cost: 1400 nrityear
iscou n a e: 17.
.an . ca a ion year
Year
Year Year
Year
Year
Year
Year
Year
Year
Year
Year
0-.:
- 1 2
- 3
4
5
6
7
3
9 1
10
EGM ccst $605,000
Projected KWH Rate:
$0.46 $0.50
$0.54
$0.58
$0.63
$0.68
$0.73
$0.79
$0.85
$0.92
`see tab ent.i'ed "Projected AK Payments")
Energy Cost Savings:
$21,773 $23.515
$25,397
$27,428
$29.623
$31,992
$34.552
$37,316
$40.301
$43,525
Less O L M Costs:
($400) ($408)
($416)
($424)
($432)
($441)
($450)
($459)
($468)
($477)
Misc. Benefits/Casts:
fide; Gash Flow: ($605,000)
$21,373 $23,107
$24,981
$27.004
$29,191
$31,551
$34,102
$36,857
$39,833
$43,048
Cum.Cash Flow: ($605,000)
($583,627) ($560,520)
($535,539)
($508,535)
($479,344)
($447,793)
($413,691)
($376,834)
($337,001)
($293,953)
Yea'Year
11 12
Year
13
-- Year
14
ear
15
Year
16
ear
17
ear
18
ear -
19
ear
20
Projected KWH Rate:
$1.00 $1.07
$1.16
$1.25
$1.35
$1.46
$1.58
$1.71
$1A4
$1.99
isee tab enU:ed 7m ec:ed AIC Payments")
Energy Cost Savings:
$47,007 $50,768
$54,829
$59.216
$63,953
$69,069
$74,595
$80,562
$87,007
$93.968
Less O a tot Costs:
($487) ($497)
($507)
($517)
($527)
($538)
($549)
($560)
($571)
($582)
Misc. Benefits/Costs:
Net Cash rlow:
$46,520 $50,271
$54,322
$58.699
$63,426
$68.531
$74,046
$60,002
$66,436
$93,386
Cum.Cash Flow:
($247,433) ($197,162)
($142,840)
($84,141)
($20,715)
$47,816
$121.862
$201.864
$288,300
$381,686
Vear Year
Year
Year
Year
Year
Year
Year
Year
Year
27 22
23
24
25
.26
27
28
29
30
Projected KWH Rate:
$2.15 $2.32
$2.51
$271
$2.92
$3.16
$3.41
$3-68
$3.98
$4.30
:sea tab en lted "Projected AY. Payments")
Energy Cost Savings:
$D $D
$0
$0
$0
$0
$0
$D
$D
$0
Lee O 8 M Costs:
$0 $0
$0
$0
$0
$0
$0
$0
$0
$0
Misc. Renefits/Cmts:
:lei Lasn Now:
$0 $0
$0
$0
$0
$0
$0
$D
$0
$0
Cum.Cash Flow:
$381,686 $381,686
$381,686
$381,686
$381,686
$381,686
$381,686
$381,686
$381,686
$381,686
Discount ate:
' i
Present Value Savings:
$681,244
Net Present Value (NPV):
$76,244
Internal ate ot Return ): 4.uu
IRR assimes interim roceeds can be invested at the IRR rate-
1us e n emit e w Return 4.uu;;
where AIRR = Q1+Discount Rater((SIR)^(1/Life)
]I- 1
AIRR asmi eshterim proceeds canbeinvestedat the dsmuntrate.
LIFE CYCLE COST ANALYSIS
Solar Enter S tem Evaluation for the AVEC Shun- nak, AK Facility
ENERGY CONSERVATION PROJECT
Location:
Energy Conservation Measures (ECM):
ECM Cost
Sfia5A00
Annual cost savings:
$21.773
AVEC Facility, Shungnak, AK
50,400 Watt System, consisting of an adjustable 225
-panel array mounted on aTriodefic
(electricity) in U.S. Ddlars
foundation on the property adjacent to the AVEC northeast property line. The arrayugizes eight
6asedon costractorof$0.461/KHW.
ECM Us:
3u years
ave as.,
Aimory ysis.
awrgs to Invesiment atlo,
PV Savin s/PV investment
Annual KWH Savin s: 47,231 KWH
KWH Rate:
(initial Rate)
Yr 1 $ Sv s:
$0.46 /KWH
$21.773
nergy sea a on ate: a year
1SImple, Pay Back
605000
21773
Period
27.79 Years
Recurring Maint. Cost, '400 firstyear
iscoun e:
ain . ca a ion a e: l 7 year
Yeas
Year Year
Year
Year.
Year
Year
- Year-
Year
Year
Year
0-
1 2
.3
4
5
6
7
8
9
1 I
Projected KWH Rate:
$0.46 $0-50
$0.54
$0.58
$0.63
$0.68
$0.73
$0.79
$0.85
$0.92
(see lab enSL'ed "Pm:ected At: Payments")
Energy Cost Savings:
$21.773 $23,515
$25.397
$27.428
$29,623
$31.992
$34.552
$37,316
$40,301
$43,525
_ess O - 1.1 Costs:
($400) ($408)
($416)
($424)
($432)
($441)
($450)
($459)
($468)
($477)
Misc. Benefits/Costs:
Net Cash Fiovj: ($605,000)
4121,373 $23,107
$24.981
$27.004
$29,191
$31,551
$34,102
$36,857
$39,833
$43,048
Cum.Cash Flow: ($605,000)
($583,627) ($560,520)
($535,539)
($508,535)
($479,344)
($447,793)
($413,691)
($376,834)
($337,001)
($293,953)
yea, yea,
11e.a,
ear
14
Yea,
15
Yea,
16
ear
iear
ear
2
Projected KWH Rate:
$1.00 $1.07
$1.16
$1.25
$1.35
$1.46
$1.58
$1.71
$1.84
$1.99
.. tab eniil'eu "P recied AK Payments")
Energy Cost Savings:
$47.007 $50,768
$54,829
$59,216
$63,953
$69,069
$74.595
$80,562
$87,007
$93,968
ess O S f:i Costs:
($487) ($497)
($507)
($517)
($527)
($538)
($549)
($560)
($571)
($582)
Misc. Benefits/Costs:
Net Cash Now:
$46,620 $50,271
$54,322
$58,699
$63,426
$68.531
$74,046
$80,002
$86,436
$93,386
Cum.Cash Flow:
($247,433) ($197,162)
($142,840)
($84,141)
($20,715)
$47,816
$121,662
$201,864
$288,300
$381,886
Year Year
Year
Year
Year
Year
Year
Year
Year
Year
21 22
23
24
25
26
27
28
29 --
30
Projected KWH Rate:
$2.15 $2.32
$2.51
$2.71
$2.92
$3.16
$3.41
$3.68
$3.98
$4.30
:see tab "Pm:ecled AK Payments')
Energy Cost Savings:
$101,485 $109,604
$118,372
$127,842
$138,070
$142,115
$161,044
$173,928
$187,842
$202,870
Less O 8 M Costs:
($594) ($606)
($618)
($630)
($643)
($656)
($669)
($682)
($696)
($710)
'sc. Benefits/Costs:
rtet Casn Nov:
$100,891 $108,998
$117,754
$127,212
$137,427
$148,459
$160,375
$173.246
$187,146
$202.160
Cum.Cash Flow:
$482,577 $591,575
$709,329
$836,541
$973,968
$1,122,427
$1,282,802
$1,456,048
$1,643,194
$1,845,354
iscoun ate:
- "/<
Present Value Savings:
$1,359,707
Net Present Value (NPV):
$754,707
Internal ate OT KolUM )-. u.uuq
IRR assumes interim roceeds canbe invested at the IRR rate -
us e n ema e e rn t.uu i
where AIRR = ff l+Discount Rate]q(SIR)^(tAife) ])- 1
AIRR asarmes interim proceeds can be invested at the dswunt rage.