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HomeMy WebLinkAboutHooper Bay Two-tower Wind Energy System App Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 1 of 16 9/2/2008 Application Forms and Instructions The following forms and instructions are provided for preparing your application for a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA) and the forms are available online at http://www.akenergyauthority.org/RE_Fund.html The following application forms are required to be submitted for a grant recommendation: Grant Application Form GrantApp.doc Application form in MS Word that includes an outline of information required to submit a complete application. Applicants should use the form to assure all information is provided and attach additional information as required. Application Cost Worksheet Costworksheet.doc Summary of Cost information that should be addressed by applicants in preparing their application. Grant Budget Form GrantBudget.xls A detailed grant budget that includes a breakdown of costs by task and a summary of funds available and requested to complete the work for which funds are being requested. Grant Budget Form Instructions GrantBudgetInstr.pdf Instructions for completing the above grant budget form. • If you are applying for grants for more than one project, provide separate application forms for each project. • Multiple phases for the same project may be submitted as one application. • If you are applying for grant funding for more than one phase of a project, provide a plan and grant budget for completion of each phase. • If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. • If you have additional information or reports you would like the Authority to consider in reviewing your application, either provide an electronic version of the document with your submission or reference a web link where it can be downloaded or reviewed. REMINDER: • Alaska Energy Authority is subject to the Public Records Act, AS 40.25 and materials submitted to the Authority may be subject to disclosure requirements under the act if no statutory exemptions apply. • All applications received will be posted on the Authority web site after final recommendations are made to the legislature. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 2 of 16 9/3/2008 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) City of Hooper Bay Type of Entity: City Government Mailing Address PO Box 29, Hooper Bay, AK 99604 Physical Address Hooper Bay, AK Telephone 907-758-4310 Fax 907-758-4761 Email cityhpb@yahoo.com 1.1 APPLICANT POINT OF CONTACT Name Joseph Bell Title Mayor Mailing Address PO Box 29, Hooper Bay, AK 99604 Telephone 907-758-4310 Fax 907-758-4761 Email cityhpb@yahoo.com 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer, or X A local government, or A governmental entity (which includes tribal councils and housing authorities); Yes 1.2.2. Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate Yes or No in the box ) Yes 1.2.3. As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. Yes 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 3 of 16 9/3/2008 SECTION 2 – PROJECT SUMMARY The City of Hooper Bay is seeking funds for final design and construction of a two-tower wind energy system to power the boiler in its Water Treatment Plant (WTP). Currently the WTP uses fuel oil to heat the well water to a temperature at which it can be treated and made ready for consumption. Rising fuel costs are threatening the City’s ability to provide affordable, clean water to residents. When all Hooper Bay residences are connected to the City’s water and sewer system, providing clean water will require 17,000 gallons of fuel to bring the well water to treatable temperatures. AEA estimates that, in the coming years, an additional 35,000 to 40,000 gallons of fuel will be required to heat the treated water for use in city residences and in the washeteria facilities. With a yearly fuel consumption of 60,000 gallons, at a cost of $4.68 per gallon (AVEC pricing for 2008) annual fuel costs at the WTP are expected to reach $279,000. The City’s WTP business plan predicts revenue from an $85 per household tariff for water service. Incomes are variable in the community, and even if all residences were able to pay for their service, the revenue would still fail to cover energy costs at the WTP. AVEC began documenting the wind resource in Hooper Bay in 1999 in preparation for building wind towers at the community power plant. Three years’ wind data for Hooper Bay showed it to be a productive, “Class 5” resource. A Class 5 wind resource is defined by a wind power density, measured at 10 meters height, of between 250 and 300 Watts per square meter; the highest rating, Class 7, has winds of 400 Watts per square meter, or greater. The American Wind Energy Association reports that sites rating Class 4 or higher are preferred for large scale wind plants. AVEC is currently installing three wind towers at its Hooper Bay electrical power facility, and is expecting the offset fuel consumption by approximately 52,000 gallons a year. AVEC’s 1999-2002 Hooper Bay data were used by the analysts at Distributed Energy, a Vermont-based wind energy company with experience in rural Alaska, to determine the potential heat energy production for a two tower facility at the Hooper Bay WTP. Two Northern 100B 100 kW wind turbines would produce approximately 539,000 kilowatt hours of electricity. At that level of production, with electricity being used entirely at the WTP, fuel displacement would be 15,995 gallons currently used to generate heat, a 26% reduction in the facility’s total consumption. At a fuel rate of $4.68/gallon, wind would save the City of Hooper Bay approximately $74,668 yearly, savings enough to bring WTP operations back into a sustainable range without additional burdens to consumers. The project cost is estimated to be $2,220,141. Operation and maintenance of the two- turbine heat generation system is an estimated $12,000 per year. Simple payout (using first year savings throughout the life of the project) would occur after 37 years. Adjusting cost- savings for inflation puts payback within reach between 15 and 18 years. Northern/Distributed Energy is the manufacturer of the Northwind 100B wind turbines, the new model planned for the Hooper Bay WTP. The earlier model, the Northwind 100, have been successfully turning and generating electricity in Tooksook Bay and Kasigluk for two years. These projects, managed by AVEC, have saved each community over one hundred thousand dollars to date in offset fuel costs. STG Inc. is the firm that installed wind towers and turbines in Selawik, Nunapichuk, and Tooksook Bay, and they will be doing installation at the Hooper Bay WTP. Other project partners that worked on AVEC-led teams will include HDL (environmental and FAA permitting) and BBVF (structural design of tower foundations). Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 4 of 16 9/3/2008 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. Hooper Bay is proposing a project for the Final Design, Permitting, and Construction 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 project involves the installation of two wind turbines near the water treatment plant (WTP) in Hooper Bay, Alaska (see attached Project Area Maps, and Figure 1 for WTP Site Map). The two Northwind 100B 100kW wind turbines will provide a dedicated energy source for the WTP’s water heating system, providing approximately 539,000 kWh per year dedicated to an electric boiler inside the WTP. Wind-powered energy will offset the use of 15,995 gallons of fuel currently used in the three fuel oil-burning boilers. Northern will provide the wind towers and turbine technology, and STG will perform the installation of the towers and turbines. HDL will provide the geotechnical survey expertise and conduct environmental permitting. BBFM will do the structural design of the tower foundations. CE2 Engineers, the firm that designed and built the WTP, will supervise the engineering and wiring of the new boiler system. Hooper Bay 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 budget for design, permitting, and construction will be $2,220,141. The City of Hooper Bay is requesting AEA funds to cover the entire budget. The project cost summary is attached. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 5 of 16 9/3/2008 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. Using wind energy to power the electric boilers in the Water Treatment Plant will save the City of Hooper Bay up to $74,668 in fuel expenses per year. The City’s business plan for running the WTP did not foresee the dramatic increases in fuel costs of recent years. The per- household tariff of $85 per month (as laid out in the business plan) would have to increase by approximately 200-300% to counter the rising costs of heating the community’s water supply. Public health and safety are at issue as well, since the cold well water must be heated before being treated and made safe for consumption. Wind energy will relieve much of the strain of high fuel prices and balance the City’s water system budget without having to raise the tariffs on its residents. 2.5 PROJECT COST AND BENEFIT SUMARY Include a summary of your project’s total costs and benefits below. $2,220,141 2.5.1 Total Project Cost (Including estimates through construction.) $2,220,141 2.5.2 Grant Funds Requested in this application. $0 2.5.3 Other Funds to be provided (Project match) $2,220,141 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $74,668 (first year) 2.5.5 Estimated Benefit (Savings) $ NA 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 6 of 16 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. CE2 Engineers will be the Project Manager. CE2 will oversee the civil engineering duties associated with designing and building the gravel foundations, and will design the boiler’ electrical system in the WTP. CE2 will perform all the grant administration and project accounting duties, will oversee the subcontractors’ work on procurement, shipping, installation, and commissioning. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 7 of 16 9/3/2008 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.) HOOPER BAY WIND GENERATION PROJECT SCHEDULE Activity / Task Date Grant Award Announcement 12/15/08 Authorization to Proceed 1/05/09 Order Wind Turbines & Towers 1/15/08 Complete Geotechnical Investigation 4/30/09 Complete Civil Work Design (roads, pads, foundations) 4/30/09 Complete Environmental Review and Permitting 4/30/09 Complete Electrical System Design, Structural Design 5/30/09 Turbines Ready to Ship 6/01/09 Turbines on Site 7/13/09 Complete Turbine Erection & Electrical Works 9/30/09 Complete Turbine Commissioning 12/18/09 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. Milestones Date Order Towers and Turbines January Geotechnical Survey; Environmental Permitting; Design of Roads, Pads, and Foundations February - April Design Power and Communication Lines; Design Structural Foundations May Construction of Roads, Pads and Foundations June - July Electrical Engineering of Overheads; Engineering of WTP Modifications; Boiler Installation July - September Towers and Turbines. Installation of Transmission Lines August - October Commissioning and Training November - December Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 8 of 16 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. CE2 Engineers will oversee the project (see other duties in 3.1). Northern is the manufacturer and distributor of the Northwind 100, the wind power technology that is currently working successfully in over five communities in western Alaska. Developed in conjunction with NASA, NREL, and NSF specifically for remote use in extreme environments, the Northwind 100 embodies the most recent design practices in the industry. STG is the Alaska-based installer of many of those wind power facilities. Other sub-contractors and their d will include HDL (geotechnical survey, environmental permitting) a BBFM (structural design of tower foundation). Company profiles and key personnel resumes are attached. uties nd Picture Extracted from STG Renewable Energy Systems Photo Gallery: http://stginc.cc/photogallery/energy/index.html Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 9 of 16 9/3/2008 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. CE2 Engineers will use its online project management system to organize all progress, schedules, milestones, budgets, and progress reporting activities. All cooperating parties will access the management system to update their own tasks and view the work of other partners. All documentation on the feasibility study will be made available to the Authority. Below is a screen shot of the online system developed and used by Chignik Bay Tribal Council for their Force Account Management Plan. Different levels of access can be assigned, allowing designated individuals to enter the system and make changes to ensure an up-to-date Plan is always available to viewers. 3.6 Project Risk Discuss potential problems and how you would address them. In general, logistics, construction activities and weather all contain significant risks. Advance planning and allowing time for contingencies is crucial to success in such environments and has been built into the project schedule. By completing civil works during the spring of 2009, and planning the purchase of the turbines/towers for delivery onsite by July 2009, adequate time has been allocated to address any design, permitting, or supply issues. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 10 of 16 9/3/2008 STG, Inc. routinely coordinates purchases Builder’s Risk insurance to mitigate its clients’ exposure to these risks. Procuring external firms, such as STG, Inc., BBFM, Inc., and Hattenburg Dilley & Linnell LLC (HDL), that have a demonstrated history of success with projects similar this one and in similar circumstances further reduces much of the risk. 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. Wind Energy studies conducted for AVEC between 1999 and 2002 indicate Hooper Bay is a “Class 5” wind resource. The average monthly wind speed measured at Hooper Bay was 15 mph; the lowest measured average monthly wind speed was 12.6 mph in June, and the highest was 19.5 mph in February. A Class 5 wind resource is defined by a wind power density, measured at 10 meters height, of between 250 and 300 Watts per square meter; the highest rating, Class 7, has winds of 400 Watts per square meter, or greater. The American Wind Energy Association reports that sites rating Class 4 or higher are preferred for large scale wind plants. Using the 1999-2002 wind data, Distributed Energies estimates that two Northwind 100Bs would produce 657,289 (gross) kWh per year. Production analysis of similar windmill and turbine technologies run by AVEC in Western Alaska yielded an average efficiency of 82%, so the estimated net production for Hooper Bay would be Net 538,977 kWh per year. There are two other options for using renewable energy to heat water at the WTP. The AVEC power plant in Hooper Bay is another source of untapped energy, in the forms of both waste heat and excess electricity, that could be used to incur even greater fuel savings at the WTP. A waste-heat-recovery system is currently in design phase and is expected to offset another 14,000 gallons of fuel oil per year at the WTP. AVEC’s Hooper Bay wind turbines, once they are brought on-line, will experience periods where electricity production will exceed demand; excess energy could be directed into a “dump load” system and made available to the electric boiler in the WTP, with savings equivalent to offsetting 614 gallons per year. These options are expected to create more savings at the WTP, and would not take away from the efficiencies derived from the dedicated wind energy system. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 11 of 16 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. The City of Hooper Bay maintains the WTP and Satellite facility. Three oil-fired boilers provide hot water for in-facility pre-treatment and community distribution. Each of the three boilers has the capacity of 2132M BTU/Hr (21.5 gal/Hr). 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. Three diesel boilers are currently installed in the WTP but are not yet operating at full capacity. When they are, they will use approximately 60,000 gallons of fuel per year to heat water. At that rate of consumption, the system will produce approximately 6 billion BTUs NET annually to heat water for treatment and for distribution to homes, the school, the teacher housing,as well as in the washeteria area of the Satellite Facility. Bringing two Northwind 100Bs on-line as a dedicated energy source at the WTP will displace approximately 15,995 gallons of heating fuel gal per year, about 27% of the fuel used for heat in the WTP. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The City of Hooper Bay owns and operates the WTP. Each residence when hooked-up to the city water system pays a monthly tariff of $85. With an estimated 250 residences, the revenues for water (once residences are connected) are expected to be approximately $21,250. The City also charges the school for its water, which generates approximately $67,300 in revenue. 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 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 12 of 16 9/3/2008 Renewable Energy Technology: The project will use Northwind 100B towers and 100 kW turbines, the latest version of the same technology used by AVEC in its several wind power projects in western Alaska. Using detailed wind data (collected over three years by AVEC) the net productivity of two Northwind 100B systems is estimated to be 538,977 kWh per year. Optimum installed capacity: Using data collected in 2002 by AVEC in Hooper Bay, Distributed Energy calculated the output of two Northwind 100B wind towers and turbines. Gross output is 657,289 kWh per year. Anticipated capacity: Northern/Distributed Energy worked with AVEC in analyzing the productivity at each of its Northwind 100 sites in Alaska and arrived at a productivity rate of 82% (mostly the result of unexpected shutdowns or periods of inactivity). Therefore, the expected amount of available electric energy produced by two Northwind 100Bs at the WTP is 539,000 kWh per year. Annual Generation: 539,000 kWh per year. Kilowatt hour production will vary from month-to-month, but no annual variation is expected. Barriers: Periods of low wind may affect productivity at the wind turbines. Integration Concept: The new boiler will run directly off wind-generated electricity, making enough energy to heat about 25% of the water needed for the WTP and the Satellite Facility. The WTP’s three fuel oil- burning boilers will operate at diminished levels, covering the energy needs not met by the wind turbines. The electric boiler will convert the 539,000 kWh of wind-generated electricity into BTUs at 93% efficiency (539,000 (.93)=501,270 kWh=1.71 Billion BTUs). Delivery methods: Overhead electrical transmission lines will delivery 539,000 kWh directly to the WTP and the boiler. 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 City of Hooper Bay owns the land directly adjacent to the WTP access road (see “Area Use Map: Hooper Bay” in attached project site maps attachment.) 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 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 13 of 16 9/3/2008 The permitting process will involve completion of a State of Alaska Coastal Project Questionnaire and possibly, depending on the need for road construction, a US Army Corps of Engineers permit. 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 AVEC and its partner, HDL, participated in the environmental permitting process for its three Northwind 100 facilities installed in 2007 at the Hooper Bay power plant. Permitting for the WTP wind project should follow the same pattern as the earlier AVEC exercise. The WTP wind project should not trigger extensive review on the following issues: habitat, wetlands, archaeological resources, land development constraints, telecommunications, or aesthetic/visual impacts. AVEC and HDL have worked with USFWS Endangered Species Office on construction and design measures to protect spectacled eiders that pass through Hooper Bay. Permitting for the WTP wind project is not expected to vary from the AVEC exercise. Federal Aviation Administration (FAA) concerns were also addressed by AVEC and HDL. Placement of towers and transmission lines will conform to the standards set out during the AVEC exercise. 4.4 Proposed New System Costs (Total Estimated Costs and proposed Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicants Records or Analysis, Industry Standards, Consultant or Manufacturer’s estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following: • Total anticipated project cost, and cost for this phase • Requested grant funding • Applicant matching funds – loans, capital contributions, in-kind • Identification of other funding sources • Projected capital cost of proposed renewable energy system • Projected development cost of proposed renewable energy system Total anticipated project cost is $2,220,141. The City of Hooper Bay respectfully asks for funding to cover this project in its entirety. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 14 of 16 9/3/2008 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 Yearly Operation and Maintenance of the new wind generation facilities at the WTP will cost approximately $12,000. This would be covered by the offset fuel cost savings and the revenues from residential water and sewer service tariffs. 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following: • Identification of potential power buyer(s)/customer(s) • Potential power purchase/sales price - at a minimum indicate a price range • Proposed rate of return from grant-funded project The energy produced at the WTP by the wind turbines will not be sold. The City will charge a per-household monthly tariff of $85, with an estimated monthly revenue of $21,250 to offset O&M costs for the WTP. 4.4.4 Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Complete cost worksheet for the Hooper Bay WTP wind power project is attached. 4.4.5 Business Plan Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum proposed business structure(s) and concepts that may be considered. The project will incorporate wind-generated electricity into the fuel oil-water heating system currently operating at the WTP. The WTP’s business plan includes a tariff schedule for residences and other facilities using city water and sewer, generating revenues sufficient to sustain operations at the WTP. 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project development work. Two Northern 100B wind turbines will generate enough power to offset the use of 15,995 gallons of fuel used to heat water at the WTP. That amount, 27% of the total, will result in a $74,668 yearly cost-savings to the City of Hooper Bay and the WTP operation. The WTP, once the community is fully connected to water and sewer service over the next few years, will consume approximately 60,000 gal/year, an estimate calculated by several players at CE2 Engineers, AEA, DEC, and the City of Hooper Bay. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 15 of 16 9/3/2008 The power generation capabilities of the Northwind 100B wind tower and turbine are now well- documented by the project and facilities managers at AVEC, who along with the communities they serve, are currently reaping the benefits of that technology. The distributor of the product, Northern, provided the kWh productivity estimates using the HOMER computer model. Facility managers at AVEC reviewed these estimates, made comment, and helped create the net efficiency factors used in this proposal. For the economic analysis, the engineers at CE2 Engineers created an algorithmic spreadsheet that accounts for yearly offset fuel costs, the effect of annual fuel cost increases, as well as inflation’s effect on O&M costs. Two spreadsheets are attached (“Hooper Bay WTP” Worksheets), both which assume a 5% inflation rate: one calculates realized cost savings using an 8% fuel increase rate, and the other uses a 12% fuel increase rate. Using these models, the cost of the project is recouped after some period between 15 and 18 years. This proposal, to install and connect the Northwind 100bs, will complete the project. However, the work already done by AEA and AVEC to design the waste heat recovery system will be necessary for maximizing the renewable energy integration into the WTP. 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 Two wind towers and turbines installed at the WTP will displace $15,995 gallons of fuel (at a conservative estimate), a cost savings of approximately $74,668 per year. The cost savings of this project would bring the city’s water treatment program back into the range of financial stability and sustainability, allowing the City to provide its residents with affordable, clean, warm water. Non-economic benefits of this project include: securing the operations of the City’s water treatment program; providing additional job security to the two Northern-certified wind tower and turbine maintenance technicians; reduction in the amount of fuel barged to the community; 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 expected cost of the feasibility study is $2,220,141. The City of Hooper Bay respectfully asks AEA to fund the entire project. The Grant Budget Form is attached.