HomeMy WebLinkAboutNorth Prince of Whales Island (POW) Intertie Project App
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 1 of 18 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.
AEA Renewable Energy Fund
NORTH POW INTERTIE PROJECT Grant Application
AEA 09-004 Grant Application Page 2 of 18 10/7/2008
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Alaska Power & Telephone Company
Type of Entity:
Utility
Mailing Address
P.O. Box 3222, Port Townsend, WA 98368
Physical Address
193 Otto Street, Port Townsend, WA 98368
Telephone
360-385-1733
Fax
360-385-7538
Email
glen.m@aptalaska.com
1.1 APPLICANT POINT OF CONTACT
Name
Glen Martin
Title
Project Manager
Mailing Address
P.O. Box 3222, Port Townsend, WA 98368
Telephone
360-385-1733
x122
Fax
360-385-7538
Email
glen.m@aptalaska.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)
X An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
An independent power producer, or
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.)
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SECTION 2 – PROJECT SUMMARY
Provide a brief 1-2 page overview of your project.
2.1 PROJECT TYPE
Describe the type of project you are proposing, (Reconnaissance; Resource Assessment/
Feasibility Analysis/Conceptual Design; Final Design and Permitting; and/or Construction) as
well as the kind of renewable energy you intend to use. Refer to Section 1.5 of RFA.
AP&T proposes to install infrastructure (transmission line) to get existing hydroelectric power
to two communities presently on isolate diesel generation. AP&T has completed Phase I –
Reconnaissance level analysis of the project. AP&T has received funding they will use as
matching funds to complete Phase II - Resource Assessment/Feasibility Analysis/Conceptual
Design and Phase III – Final Design and Permitting. With this application, AP&T is requesting
funding for Phase IV – 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.
This project is called the North Prince of Wales Island Intertie Project (Project). AP&T
proposes to construct a line extension to the communities of Coffman Cove and Naukati Bay,
placing these communities on the Prince of Wales Island (POW) electric grid which is supplied
with renewable energy from two hydroelectric projects. Both of these communities currently rely
on 100% diesel generation for electricity. The total line is to be 48 miles (Coffman Cove = 37
miles; Naukati Bay = 11 miles) of overhead 4/0 ACSR three-phase 34.5 kV line with a 1/0 ACSR
neutral conductor on single pole wood structures. This line extension will come off the existing
34.5 kV line from between Klawock and Thorne Bay, near Control Lake. The route is shown on
enclosed diagrams in Section 7 – Appendices. Naukati Bay is 11 miles off the main road to
Coffman Cove.
Phase I: Reconnaissance
This phase is already completed with previous reconnaissance along the highway to determine
how many poles, etc. will be needed to complete project.
Phase II: Resource Assessment/Feasibility Analysis/Conceptual Design
A feasibility assessment based on the condition of the new highway and right-of-way (ROW) to
access the proposed pole locations, including anchoring and corner structure and transformers,
to develop the conceptual design of project components will need to occur. AP&T is presently in
discussion with SHPO as to whether an archaeological survey is necessary for this project. No
other environmental surveys are anticipated due to the project being in or adjacent to the
highway ROW which passes through some clear-cut's as well.
Phase III: Final Design & Permitting
In this phase permits will be acquired, acquiring legal access to lands, and final design for the
construction phase including a final survey of the route. Permits needed: COE permit, Forest
Service Special-Use Permit, Alaska Dept. of Transportation easement, and SHPO review.
Phase IV: Construction
Construction phase would include mobilization (acquiring materials, i.e. wood poles, conductor,
cross-arms, transformers, etc., contracting with local companies to provide materials and
equipment, and preparing ROW, i.e. brushing, etc. and installing the transmission line;
and interconnecting with AP&T's existing infrastructure in both Coffman Cove and Naukati Bay.
A monthly report can be made during construction to AEA of progress and expenditures (or
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quarterly on expenditures to reduce paperwork).
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 total estimated cost of the North Prince of Wales Intertie is $6,155,019. Of that amount,
AP&T has already expended $13M in developing the infrastructure on POW to distribute
renewable energy to many once isolated communities. Coffman Cove and Naukati Bay are
among the few remaining communities that remain isolated from renewable energy. The Project
will stop the use of diesel generation at both communities except as needed for backup and
maintenance. AP&T requests $3,752,181 to complete the project as follows:
• Phase II: Funding needed – $55,000 (archaeological survey; COE permit; USFS Special
Use Permit; DOT ROW permit)
• Phase III: Funding needed – $30,000 (completion of final design and consultation with
DOT for approval of design)
• Phase IV: Funding needed – $6,070,019
AP&T was promised by the Denali Commission/AEA =$2,402,838 under the Energy Cost
Reduction Program in June 2008. Additional funding needed to complete the project is
$3,752,181. AP&T has put into POW’s infrastructure from their own financing approximately
$13,000,000, well above 20% matching funds. AP&T last used $1,000,000 of their own funds to
complete the South Fork Hydroelectric Project in 2006, one of the hydro plants providing power
to the POW grid. AP&T requests that the AEA take this into consideration and allow this to be
their matching funds. Please see in Section 7 – Appendices “POW Electric System” for a more
complete discussion of the system and funding by AP&T to complete this system. Please see the
Grant Budget form in Section 7 – Appendices for a cost breakdown for each phase of
development. Please also consider the Denali Commission/AEA funds as matching.
Proposed Project Budget (in 2007 dollars)
Budget Amounts:
Archaeological Survey/Permitting/Final Design 85,000.00
Materials (include freight) $2,376,783.00
Exempt Materials (materials x 20%) 475,357.00
Labor 1,671,580.00
Fringe Benefits (Labor x 50%) 475,285.00
Vehicle Expense Heavy
(46.3%) 440,114.00
Vehicle Expense light (26.5%) 0.00
Contract/Other 630,900.00
Subtotal $ 6,155,019.00
City Sales Tax 5% $ -
Total $ 6,155,019.00
Total Grant Received from Denali Com.: - $2,402,838.00
Total Amount Requested for AEA Grant: $3,752,181.00
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.
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The Project will reduce the cost of electricity to the residents of Coffman Cove and Naukati Bay
who presently pay $0.6288 and $0.6717 per kWh,1 respectively. Once intertied with the POW grid,
the cost per kWh will go to $0.2599, significantly reduced rates by approximately 59% and 61%
respectively. This would cut monthly residential bills by more than half. The environmental
impacts, i.e. air pollution, noise pollution, spills, etc., of any self-generation will be significantly
reduced by this intertie, as well as from generation at AP&T’s diesel powerplants in both
communities.
The intertie will reduce fossil fuel consumption by approximately 71,082 gallons per year in
Coffman Cove, and at an average fuel cost of $3.21 per gallon, a savings of approximately
$228,173 annually.2 Fuel consumption for Naukati Bay was 41,192 gallons from Sept. 2007 –
August 2008, with an average price of $3.24 per gallon for a savings of approximately $133,462
annually.3 The existing diesel plants, in both communities, would be placed on standby status,
reducing labor and maintenance costs considerably. Savings on O&M are expected to be about
$67,500 annually. Lower energy costs would help stimulate development, both commercial and
residential. Both communities have specific opportunities for small businesses, but the energy prices
are too much of an obstacle, especially for a start-up endeavor. Both communities have been hit
hard by the economic downturn in Southeast Alaska. There is a good work force available here,
and many of these workers are busy now working on the road projects that are underway on POW.
It is imperative that these communities have the best opportunity for their economic development
efforts to succeed so that the work force will have jobs to turn to when the roads are completed in
2008. Reasonably priced energy will be essential to those efforts. This project will complete
AP&T’s POW grid and shut down all of the diesel plants on the system.
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.)
$6,155,019.00
2.5.2 Grant Funds Requested in this application. $3,752,181.00
2.5.3 Other Funds to be provided (Project match) $2,402,838.00
2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $6,155,019.00
2.5.5 Estimated Benefit (Savings) $
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.)
$ present estimation of a 59%
and 61% reduction in electric
rates will provide a significant
public benefit to residents of
these communities. Other
benefits such as the reduced
potential for pollution from
air emissions or spills from
transporting and combusting
diesel fuel are immeasurable.
1 Before the PCE credit is applied, but showing the full cost to provide power.
2 Based on September 2007 – August 2008 use.
3 It should be noted that current prices are higher.
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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.
Greg Mickelson, AP&T’s V.P. of Power Operations will be the Project Manager for all phases of
work. Mr. Mickelson is located in Klawock on POW, and is an engineer with extensive experience
in project management and electrical generation, transmission and distribution. Mr. Mickelson has
been a part of AP&T’s team for over 30 years and has been an essential part of their success. He
has overseen numerous projects on POW, having been there since 1983, that have also had grant
funding and is familiar with procedures put in place for their use. Please see Mr. Mickelson’s
resume in Section 7 – Appendices.
AP&T’s personnel will build this intertie using their own equipment. A contractor may be used to
brush the route, or AP&T may do this work.
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.)
Phase II: Resource Assessment/Feasibility Analysis/Conceptual Design: Fall-Winter 2008
During this phase consultation will take place with SHPO and permitting with the COE and
USFS will take place.
Phase III: Permitting and Final Design: Fall 2008 – January 2009
During this phase the permits will be acquired and a final design including a survey will be
submitted to DOT for approval.
Phase IV: Construction: April 2009 – November 2011
During this phase mobilization, brushing, staking, and installation of project infrastructure,
testing the system, and placing the existing diesel plants in standby mode will take place.
Fall 2008 Permitting
January - March 2009 Order Materials
March - April 2009 Mark and Clear Right-of-Way
March - April 2009 Start Clearing of Right-of-way, where needed
April - May 2009 Begin Construction
March - April 2010 Mark and Clear Right-of-Way
March - April 2010 Begin Construction
March - April 2011 Mark and Clear Right-of-Way
March - April 2011 Begin Construction
September - October 2011 Complete Construction
October - November 2011 Test System & Start Operations
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3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them.
Milestones are as indicated in the schedule above. The most significant are completion of
permitting by March 2009 and the completion of construction October 2011.
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.
Key AP&T personnel involved in the project and their roles will be:
• Greg Mickelson, Project Manager & Construction Superintendent
• Bob Berreth, Electrical Design
• Larry Coupe, Civil Design
• Glen Martin, Resource Assessment and Permits
Resume’s can be found in Section 7 – Appendices
Phase II: Resource Assessment/Feasibility Analysis/Conceptual Design
AP&T personnel will accomplish all tasks. During this phase the route for pole placement will
be surveyed to determine the exact location of each and be flagged. The final conceptual design
will come from the preliminary flagging of the transmission line route. Goals in this phase:
• DOT will review the design before it is finalized in Phase III.
• SHPO will review the project design to determine if the project has the potential to
impact cultural or historical artifacts.
• ADF&G will also review project design to determine if fish streams would be impacted.
• USFS will be consulted for special use permit.
AP&T permitting specialists will compile the environmental information into resource
assessment documents as required by the various permitting agencies. AP&T engineers will
conduct the engineering/conceptual design studies in-house.
Phase III: Final Design & Permitting
In this phase permits will be acquired from:
• COE (NW Permit);
• USFS (Special-Use Permit);
• DOT (review of design drawings showing pole location along road ROW);
• SHPO (will review whether project will potentially impact cultural resources and make
recommendation about whether an archaeological survey is necessary);
• ADF&G (only if they think fish will potentially be impacted, but this should not be an
issue as streams or rivers are easily crossed without impacting their banks or the
riparian corridor;
• Final survey, staking and flagging;
• Materials will be ordered.
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Phase IV: Construction
AP&T’s personnel will do all the work as they have done for almost all the infrastructure on the
island.
• Brushing and final flagging, if still necessary;
• Derrick truck will boring holes for pole placement;
• Backhoe will place wood poles in holes approximately 300 feet apart and backfilling with
excavated material;
• Then the conductor will be strung from the poles;
• AP&T will test intertie with the POW grid;
• Diesel power plants in Coffman Cove and Naukati Bay will be placed on standby;
• Construction of this 48 mile transmission line will take three years.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
Because AP&T will be funding Phases II and III, through grant funding from Denali
Commission, AP&T proposes to provide quarterly progress reports to keep AEA up to date on
progress of preliminary work before the start of construction. When Phase IV is ready to begin,
AP&T would provide quarterly reports to the AEA on construction (or more frequently if desired
[monthly?]). AP&T has provided similar reports to AEA and other grant funding agencies in the
past several years on other projects, and has established the necessary procedures for producing
the report expeditiously.
During Phase IV, communications within the team will consist of:
• Bi-weekly conference calls among the Project Manager, Design Engineers and
Permitting specialist.
• Project Manager will visit the project multiple times throughout the week.
These internal discussions will form the basis of quarterly reports to AEA. The reports will show
in a clear and concise manner the progress made on the various tasks/milestones, the work to be
accomplished in the ensuing quarter, and potential problems and corrective actions to be
considered or implemented. Cost data will be provided on a quarterly basis, being incorporated
into the report on project activity. Microsoft Project or similar software will be used to develop
and maintain schedule and budget information; updating of the management files will be on a
monthly basis.
3.6 Project Risk
Discuss potential problems and how you would address them.
This project is a straight forward low voltage (34.5 kV) transmission line on 45-foot-tall (after
placement) wood poles without cross arms. No potential problems have been identified.
Site Control – AP&T does not expect a problem acquiring authorization from the USFS or DOT
to construct this line within their management areas (preliminary discussions have already
occurred).
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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.
Proposed Energy Resource: For this project, AP&T will install a 34.5 kV three-phase
transmission line to get existing hydro power to two isolated communities that rely 100% on
diesel generation. There are two existing hydroelectric projects on POW and potentially one
more at the south end of the island. AP&T’s two projects are: Black Bear Lake Hydro, which
produces 25,000,000 kWh of energy annually; South Fork Hydro, which produces 7,000,000 kWh
annually. This combined total of 32,000,000 kWh annually is more than adequate to provide
electricity to all of the POW communities served by AP&T. The total consumption of the entire
island is about 27,048,682 kWh annually. This intertie will get both communities off of diesel
generation. AP&T’s diesel plants at both communities would be placed in standby mode.
Pros: Compared to the current diesel generation, the Project will have the following advantages:
• excess hydro capacity currently exists with AP&T’s two projects;
• to construct hydro closer to these two communities would cost more than this intertie;
• if hydro were developed near these communities they would likely need transmission
infrastructure to get the electricity to market, where none currently exists;
• less expensive to operate hydro than diesel (lower O&M);
• no need to purchase fuel;
• fewer hazardous substances;
• no particulate matter emissions;
• can come on-line after a power outage almost immediately, but diesel can’t;
• lower and more stable electric rates for customers.
Cons: There are currently no other solutions for these communities; to remain on diesel means:
• higher electric rates, potential for spills, etc.
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.
Both communities have their own isolated diesel power plants owned and operated by AP&T.
Coffman Cove has the following diesel generators and a plant average efficiency of 13.0875
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gal/kWh:
CAT 3406B, 175 kW;
CAT 3412, 330 kW;
CAT 3412, 380 kW.
Naukati Bay has the following diesel generators and a plant average efficiency of 12.49 gal/kWh:
John Deer 6076AF001, 138 kW;
John Deer 6076AF001, 165 kW;
John Deer 6081AF-001, 180 kW.
The existing renewable energy system AP&T wants to connect to these two communities via this
48-mile transmission line are the two hydroelectric projects Black Bear Lake Hydro (4.5 MW)
(storage) and South Fork Hydro (2.0 MW)(run-of-river). These projects were completed in 1995
and 2006 respectively. Black Bear Lake Hydro (P-10440) was licensed through the Federal
Energy Regulatory Commission (FERC); South Fork Hydro did not have to go through the FERC
licensing process. Black Bear Lake Hydro can produce 25,000,000 kWh of energy annually;
South Fork Hydro can produce 7,000,000 kWh annually. This combined total of 32,000,000 kWh
annually is more than adequate to provide electricity to all of the POW communities served by
AP&T. The total consumption of the entire island is about 27,048,682 kWh annually. This
intertie will get both communities off of diesel generation. AP&T’s diesel plants at both
communities would be placed in standby mode.
4.2.2 Existing Energy Resources Used
Briefly discuss your understanding of the existing energy resources. Include a brief discussion of
any impact the project may have on existing energy infrastructure and resources.
The existing energy resources on POW consist of both diesel generation plants and two
hydroelectric projects, Black Bear Lake Hydro and South Fork Hydro. All existing distribution,
transmission, and generation infrastructure on POW is owned and operated by AP&T. The two
communities this project (transmission line) would serve are presently isolated from renewable
energy and currently rely on diesel generation having diesel generation plants in each
community. Coffman Cove’s generation in the last three years has been 2006 = 902 MWH, 2007
= 944 MWH, 2008 (Jan-Aug.) = 677 MWH. Naukati Bay generation in the last three years has
been 2006 = 502 MWH, 2007 = 528 MWH, 2008 (Jan-Aug.) = 376 MWH. This project would
significantly reduce AP&T’s purchases of diesel fuel used to provide electricity to these
communities. This project will not impact the existing infrastructure other than to reduce O&M
expenses and wear-and-tear on the diesel generators because both diesel generation plants would
be placed on standby for future hydro maintenance or the rare power outage in order to get
power back to the customers as quickly as possible. Having redundant standby diesel generators
scattered around the island helps eliminate long outages if an area becomes isolated from the
rest of the grid. Because the island is isolated from outside grids that may have many power
sources, having numerous back up diesel generation plants has benefited the residents by
allowing AP&T to get electricity back on line quickly until the problem can be repaired.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
The existing energy market for the Project are Coffman Cove and Naukati Bay. Both communities
have an isolated electric power and distribution system owned and operated by AP&T. Average
electric bill for Coffman Cove customers from September 2007 through August 2008 was $90.87 per
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month. Average electric bill for Naukati Bay customers in this same period was $130 per month.
This project would reduce monthly bills to approximately $54 and $79 respectively. This would
provide an average monthly savings per household of approximately $37 and $51 respectively, or an
annual savings of approximately $444 and $612 respectively. The intertie will reduce fossil fuel
consumption by the diesel power plant by approximately 71,082 gallons per year in Coffman Cove,
and at an average fuel cost of $3.21 per gallon, a savings of approximately $228,173 annually.4
Fuel consumption for Naukati Bay was 41,192 gallons with an average price of $3.24 per gallon for
a savings of approximately $133,462 annually. With this intertie, AP&T will be able to reduce both
communities electric rates to the current POW hydro grid price of $0.2599 per kWh, providing a
significant savings. The existing diesel plants, in both communities, would be placed on standby
status, reducing labor and maintenance costs considerably. Savings on O&M are expected to be
about $67,500 annually.
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
This Project is to connect two existing hydropower generation plants with a total capacity of 6.5
MW and an annual maximum generation potential of 32,000,000 kWh, to two communities that
are 100% reliant upon diesel generation with a 48-mile-long, 34.5 kV transmission line.
AP&T proposes to construct a line extension to the communities of Coffman Cove and Naukati
Bay, placing these communities on the POW renewable energy/power grid. This project is called
the North Prince of Wales Island Intertie Project. The total line is to be 48 miles (Coffman Cove
= 37 miles; Naukati Bay = 11 miles) of overhead 4/0 ACSR three-phase 34.5 kV line with a 1/0
ACSR neutral conductor on single pole wood structures. This line extension will come off the
existing 34.5 kV line from between Klawock and Thorne Bay, near Control Lake. The route is
shown on Figure 2 in Section 7 – Appendices. Naukati Bay is 11 miles off the main road to
Coffman Cove. AP&T is the certified utility for Prince of Wales Island and this project is within
the boundaries of AP&T’s certificate from the Regulatory Commission of Alaska.
Anticipated capacity factor – N/A; project is a transmission line to get renewable energy to two
communities.
Anticipated annual generation – N/A; existing renewable projects will provide up to 32 GWH at
full capacity to meet the load on the island.
Anticipated barriers – no barriers are expected.
Basic integration concept – Integration is not difficult for hydropower; AP&T already operates
two independent integrated hydro-diesel systems (of which POW is one). Project would involve
4 Based on fuel use from September 2007 through August 2008.
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transformers along the transmission line route and a transformer at each community to step down
the voltage to match the local distribution grid.
Delivery methods – a 48-mile, 34.5 kV overhead transmission line along an existing road
corridor to AP&T’s existing distribution grids in both communities.
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 primarily within the DOT corridor along the highway. However, here or
there may require anchoring into or placing poles on USFS lands. AP&T will get permits from
both. DOT will review final design for pole, anchor, and transformer locations.
4.3.3 Permits
Provide the following information is 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
Applicable Permits:
• COE Nation-Wide 12 Permit
• USFS Special-Use Permit
• SHPO Review
• ADF&G Review
Permitting Timeline: Permitting will start during Fall 2008 and may take up to 6 months.
Permitting Barriers: If SHPO makes a determination that an archaeological survey is needed it
may slow permitting up. No 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
T&E Species: No impacts are anticipated to T&E species due to the project passing through
clear-cuts, its location within the island, and being within the highway corridor.
Habitat Issues: This project will be within the highway corridor in area cleared for the highway
ROW and some clear-cuts. Habitat that once may have existed would already be degraded. This
project will not impact habitat, either wildlife or fish.
Wetlands: There is potential for a small amount of wetlands, i.e. muskeg, to be impacted either by
the placement of some poles or their anchors. Less than a half an acre of wetlands will be
impacted in this utility corridor and is expected to be covered under a COE NWP 12 permit.
AEA Renewable Energy Fund
NORTH POW INTERTIE PROJECT Grant Application
AEA 09-004 Grant Application Page 13 of 18 10/7/2008
Archaeological & Historical Resources: Communications with SHPO indicated they would like
us to have an archaeologist survey the Naukati Bay end and Coffman Cove ends of the
transmission line route. Further information on how far the project is actually going into both
communities may resolve this in favor of no survey because the existing infrastructure in both
communities will be used rather than adding new infrastructure and it is at both communities that
SHPO has a concern, not in between.
Land Development Constraints: None
Telecommunications Interference: The 34.5 kV transmission line does not create interference
with telecommunications. This size of conductor is frequently found on the same pole with
telephone lines, as they also co-exist on AP&T poles. Higher voltages can cause interference
however.
Aviation Considerations: The project does not pass by an airport and the wood poles will only be
about 45 feet in height, well below any flight pattern. Trees in the area are generally as tall as
the poles or taller so that flying would be problematic regardless of transmission line.
Visual, Aesthetic Impacts: Wood poles will be placed approximately 300 feet apart. Much of the
route has been clear-cut, impacting visual quality. The transmission line will be within the
highway ROW, an area already cleared. This project will not be in a visually or aesthetically
special view shed that needs protection.
Potential Barriers: N/A
Project Description: The width of the right-of-way will be 30 feet by 48 miles long. Minimal
clearing will occur because the transmission line will follow the highway and utilize the existing
clearing as much as possible. However, some brushing and clearing of the highway right-of-way
(ROW) will be required. For clearing the ROW, the route would be chain-sawed, slash-busted,
and/or backhoed, as needed. To place each pole, a backhoe, digger derrick truck, and three men
would be used. The digger derrick truck would dig the hole and the digger derrick truck would
hold the pole plumb in the hole while the backhoe refilled the hole and compacted the soil at the
same time. Every pole on this route would be installed using this method. Anchors would also be
installed using the digger derrick truck. These anchors may sometimes have to be reinstalled
because of the muskeg, wet conditions, and rocky soils.
Using regular line-stringing guidelines, ropes would be pulled from a trailer through stringing
blocks at each pole that would be placed at the same elevation as the final placement of the
conductor. These ropes would be pulled to a wire reel trailer and connected with the conductor.
The ropes would then be pulled back through the stringing blocks to the rope trailer, one at a
time. The wire reel trailer would keep tension on the conductor while it is pulled so that the
conductor does not sag.
Hazardous trees may be cleared along the route, but very little brushing should be necessary.
Impacts to vegetation will be avoided by being on DOT ROW that has already been impacted by
road construction and maintenance. The highway shoulder will allow easy access for equipment
necessary to drill and backfill excavation at each pole.
Because the transmission line will be within the highway right-of-way, wetlands are not expected
to be significantly impacted. However, the area is known for muskeg, so there is potential for
some excavation and fill to occur at some locations. Minimal impacts should occur to wetlands
due to only boring holes in the earth to place wood pole structures and should be covered under
NWP 12. We have included a NEPA review document in Section 7 – Appendices used by the
Alaska Industrial Development and Export Authority (AIDEA) to provide an environmental
AEA Renewable Energy Fund
NORTH POW INTERTIE PROJECT Grant Application
AEA 09-004 Grant Application Page 14 of 18 10/7/2008
analysis.
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
AnticipatedTotal Project Costs: $6,155,019
Anticipated cost for Phase II: $55,000
Anticipated cost for Phase III: $30,000
Anticipated cost for Phase IV: $6,070,019
Requested Grant Funding: $3,752,181 (funding for Phase IV only)
Applicant Matching Funds: AP&T has contributed approximately $13,000,000 to the island
infrastructure of their own funds. In 2006, AP&T contributed approximately $1,000,000 to the
South Fork Hydro Project. AP&T has been a steady developer of the renewable infrastructure
that presently exists on POW. AP&T also proposes that the Denali/AEA potential grant below be
considered matching as well.
Other Funding Sources: $2,402,838 (Denali/AEA Cost Reduction Potential Grant)
Projected Capital Cost of Renewable Energy System: AP&T is the power provider and owner of
all infrastructure on POW. Construction cost is $6,070,019.
Projected Development Cost of Proposed Renewable Energy System: Total for development,
prior to construction is $85,000.
These costs, in all phases listed below, reflect the applicants knowledge and experience at building
transmission lines.
Phase I: Reconnaissance
This phase has been completed by an AP&T engineering visually examining the transmission line
route to identify the amount of brushing/clearing required, amount of materials needed, and the
best route along the highway.
Phase II: Project Costs for Resource Assessment/Feasibility Analysis/Conceptual Design
Conceptual Design – $5,000
Archaeological Survey – $30,000
Total For Phase II: $35,000
Phase III: Project Costs for Final Design & Permitting
Permit Applications and Processing – $5,000
Final Design Engineering – $25,000
AEA Renewable Energy Fund
NORTH POW INTERTIE PROJECT Grant Application
AEA 09-004 Grant Application Page 15 of 18 10/7/2008
Final Design Surveys – $20,000
Total For Phase III: $50,000
Total for Phase II & III: $85,000
Phase IV: Project Costs for Construction
Proposed Project Budget (in 2007 dollars)
Budget Amounts:
Materials (include freight) $2,376,783.00
Exempt Materials (materials x 20%) 475,357.00
Labor 1,671,580.00
Fringe Benefits (Labor x 50%) 475,285.00
Vehicle Expense Heavy
(46.3%) 440,114.00
Vehicle Expense light (26.5%) 0.00
Contract/Other 630,900.00
Subtotal $ 6,070,019.00
City Sales Tax 5% $ -
Total $ 6,070,019.00
Total For Phase IV: $6,070,019
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
AP&T will operate and maintain the Project with proceeds from sale of power to its customers.
No grant funding is requested for operation and maintenance.
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
Price for power purchase will be reduced from the price of diesel to the price of hydro
$0.0658/kWh. AP&T, is the renewable power generator on POW and the power provider in both
communities, so no power purchase agreement is necessary. This transmission line will be used
to get Coffman Cove and Naukati Bay off of diesel generation.
4.4.4 Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
See the attached cost worksheet in Section 7 – Appendices.
4.4.5 Business Plan
AEA Renewable Energy Fund
NORTH POW INTERTIE PROJECT Grant Application
AEA 09-004 Grant Application Page 16 of 18 10/7/2008
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.
AP&T is developing this project for the POW grid of which AP&T is the sole owner of the
infrastructure, both distribution and transmission lines as well as all generation facilities (both
hydro and diesel). This project will be integrated into AP&T’s system. O&M will be the
responsibility of AP&T with periodic visual surveys of infrastructure conditions that will also be
incorporated into maintaining the standby diesel plants.
4.4.6 Analysis and Recommendations
Provide information about the economic analysis and the proposed project. Discuss your
recommendation for additional project development work.
There are currently no other economical solutions that could be implemented instead of this intertie.
To develop a hydropower project near either community would cost more than this intertie and still
require infrastructure to get the power to market.
This project, while having to complete permitting and final design, is straight forward and
completely within AP&T’s ability to complete and should have no barriers for going through the
construction phase as well. This is after all just a straight forward transmission line
interconnection that AP&T has been performing on POW for many, many years. This is one of
two integrated hydro-diesel systems that AP&T operates.
AEA Renewable Energy Fund
NORTH POW INTERTIE PROJECT Grant Application
AEA 09-004 Grant Application Page 17 of 18 10/7/2008
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
This Project will have the following advantages:
• Average electric bill for Coffman Cove customers from September 2007 through August
2008 was $90.87 per month. Average electric bill for Naukati Bay customers in this same
period was $130 per month. This project would reduce monthly bills to approximately $54
and $79 respectively and save $37 and $51 per household respectively, or an annual savings
of approximately $444 and $612 respectively.
• A total annual fuel savings of 112,274 gallons would result from this intertie at current
usage, resulting in a cost savings of $361,635. Over 50 years this would be equivalent to
5,613,700 gallons of diesel fuel at present use rates and a savings of approximately
$18,081,750.
• With this intertie, AP&T will be able to reduce both communities electric rates to the current
POW hydro grid price of $0.2599 per kWh, providing a significant savings.
• Approximate savings for O&M would be $67,500 annually.
The anticipated annual revenue: AP&T is the public utility
Potential additional annual incentives: Unknown at this time.
Potential additional annual revenue streams: Unknown at this time.
Project benefit/cost ratio = Customer: 2.01/3.65 @ 12% discount; PCE Savings: 1.13
Payback: Customer 11.13 yrs; State: 16.69 yrs
This project would place the existing diesel plants in both communities on standby status, which will
stop air emissions – both CO2 and particulate matter, stop noise pollution, reduce the chance for
spills due to the refueling truck driving the roads less frequently as well as mishaps during fueling at
both diesel plant storage tanks. Reduced private use of fossil fuels or wood will also benefit the
environment.
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
Total project costs = $6,155,019.
BLANK PAGE
APPENDICES
TABLE OF CONTENTS
1. Certificate of Public Convenience & Necessity
2. Corporate Resolution
3. POW Electric System
4. Project Maps
5. POW One-Line Diagrams
6. Project Drawings
7. Resume’s
8. Letters of Support
9. NEPA Checklist
10. Cost Worksheet
11. Grant Budget Form
CERTIFICATE OF PUBLIC
CONVENIENCE & NECESSITY
CORPORATE RESOLUTION
POW ELECTRIC SYSTEM
Prince of Wales Island Electrical System
September 2008
The City of Coffman Cove, the community of Naukati and Alaska Power & Telephone Company
(AP&T) jointly request $6 million to construct an additional 48 miles of the Prince of Wales
Island Intertie to connect Coffman Cove and Naukati to the existing transmission system at
Control Lake. The map above depicts the existing Intertie and the proposed Intertie extension.
This project will reduce the cost of electricity to the residents of Coffman Cove and Naukati Bay
who presently pay $0.6288 and $0.6717 per kWh,1 respectively. Once intertied with the POW grid,
the cost per kWh will go to $0.2599, significantly reduced rates by approximately 59% and 61%
respectively. Such a rate reduction is possible because the Intertie extension will enable Coffman
Cove and Naukati to access power from the Black Bear Lake and South Fork hydroelectric
projects on Prince of Wales. Diesel generators now supplying energy to Coffman Cove and
Naukati will be shut down and placed into standby, improving air quality and saving 109,000
gallons of diesel annually. Further the consolidation of electrical load on the island will allow
construction to commence on the fully licensed and ready to build 5 MW Reynolds Creek
Hydropower Project. The Reynolds Creek Project will be developed by a joint venture of Haida
Corporation and AP&T
To date, $22.5 million has been invested through a private/public partnership to develop the
Prince of Wales Power Supply System: $13 million in private funds, $5.8 million in federal
funds and $3.7 million in state funds. Following is how the power supply system has developed:
1988 -- The State of Alaska builds a $660,000 transmission line between Klawock and Craig.
1995 -- AP&T funds and builds the $12-million, 4.5-megawatt Black Bear Lake hydropower
project and the associated transmission line to connect the project to Klawock.
1996 -- AP&T is awarded a $300,000 state grant and a $1.2 million state loan to extend the
Intertie system eastward to the City of Thorne Bay.
1996 -- The U.S. Department of Energy provides a $947,000 grant to extend the Intertie
beyond Thorne Bay to connect the Village of Kasaan.
2001 -- Thorne Bay and Kasaan are fully connected to the rest of the Intertie system.
2002 -- AP&T is awarded a $2.9 million federal grant to extend the Intertie system from
Klawock southward to Hollis and Hydaburg.
2005 -- Hollis is connected to the Intertie system.
2006 -- Hydaburg is connected to the Intertie system.
2006 -- AP&T completes the $4.5 million, 2-megawatt South Fork Hydroelectric Project near
the Black Bear hydro project, using $1 million of its own funds, a $1.6 million state loan and a
$1.9 million Denali Commission grant.
2007 -- Coffman Cove, Naukati and AP&T jointly request $6 million to extend the Intertie
system northward to Coffman Cove and Naukati and reduce their power rates by half.
1 Before the PCE credit is applied, but showing the full cost to provide power in 2008.
2008 – In June the project was awarded a grant from the AEA for $2,402,838 which leaves a
funding gap of only about $3.6 million.
PROJECT MAPS
POW ONE-LINE DIAGRAMS
PROJECT DRAWINGS
RESUME’S
LETTERS OF SUPPORT
SOUTHEAST CONFERENCE
P.O. Box 21989, Juneau, AK 99802-1989 ---- Phone (907) 523-2310 FAX 463-5670 ---- www.seconference.org
October 2, 2008
Mr. Bob Grimm
Alaska Power & Telephone Company
P.O. Box 3222
193 Otto Street
Port Townsend, WA 98368
RE: North Prince of Wales Intertie Project
Dear Mr. Grimm,
Southeast Conference is the regional development organization (ARDOR) for Southeast
Alaska, and has been designated as an Economic Development District by the U.S,
Economic Development Administration. We are a membership organization and our
membership includes local governments, visitor’s bureaus and chambers of commerce as
well as businesses, agencies and individuals interested in the economic well being of the
region. Our mission is to undertake and support activities that promote strong
economies, healthy communities, and a quality environment in Southeast Alaska.
I am writing to you on behalf of Southeast Conference to express our support for the
extension of the Prince of Wales Island Intertie to the communities of Coffman Cove and
Naukati. This intertie extension is listed in our Comprehensive Economic Development
Strategy (CEDS). The project will greatly improve the power distribution network for
Prince of Wales Island. It will reduce the cost of power for residents and businesses by
replacing high diesel costs with low renewable hydro generated power.
Each southeast community strives to improve the quality of life for their residents and
this project is very important to that goal. Alaska Power and Telephone and ratepayers
have demonstrated a commitment to providing low-cost renewable energy on Prince of
Whales Island. Southeast Conference fully supports this project and AP&T’s pursuit of
grant funding that will allow for additional rate reduction for these communities.
Sincerely,
Shelly Wright
Executive Director
NEPA CHECKLIST
COST WORKSHEET
Renewable 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.
Annual average resource availability. Year round. Interconnection of hydropower to
these communities.
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
2. Existing Energy Generation
a) Basic configuration (if system is part of the railbelt grid, leave this section blank)
i. Number of generators/boilers/other Coffman Cove: 3 generators; Naukati Bay: 3 generators
ii. Rated capacity of generators/boilers/other Coffman Cove has the following diesel
generators: CAT 3406B, 175 kW; CAT 3412,
330 kW; CAT 3412, 380 kW.
Naukati Bay has the following diesel
generators: John Deer 6076AF001, 138 kW;
John Deer 6076AF001, 175 kW; John Deer
6081AF-001, 175 kW.
iii. Generator/boilers/other type
iv. Age of generators/boilers/other
v. Efficiency of generators/boilers/other Coffman Coves plant efficiency is 13.0875 gal/kWh
Naukati Bays plant efficiency is 12.49 gal/kWh
b) Annual O&M cost
i. Annual O&M cost for labor $67,500 (expected savings)
ii. Annual O&M cost for non-labor
c) Annual electricity production and fuel usage (fill in as applicable)
i. Electricity [kWh] Coffman Cove: 927,365 kWh per year (Sept. 2007-August 2008)
Naukati Bay: 509,259 kWh per year (Sept. 2007-August 2008)
ii. Fuel usage (if system is part of the Railbelt grid, leave this section blank
Diesel [gal] Coffman Cove: 71,082 gal.; Naukati Bay: 41,192 gal.
Other
iii. Peak Load Coffman Cove: 238 kWh Naukati Bay: 69 kWh
iv. Average Load Coffman Cove: 100 kWh Naukati Bay: 58 kWh
v. Minimum Load Coffman Cove: Naukati Bay:
vi. Efficiency Coffman Cove: 13.0875 gal/kWh Naukati Bay: 12.49 gal/kWh
RFA AEA 09-004 Application Cost Worksheet Page 1
Renewable Energy Fund
vii. Future trends
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu]
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
3. Proposed System Design
a) Installed capacity 48 miles of 34.5 kV transmission line to get hydropower to
two communities completely reliant upon diesel generation
b) Annual renewable electricity generation
i. Diesel [gal or MMBtu]
ii. Electricity [kWh] 32 MWH (two existing hydro projects will supply
their extra electricity)
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 $6,070,019 (cost for construction)
b) Development cost $85,000 (pre-construction costs)
c) Annual O&M cost of new system $75,000
d) Annual fuel cost N/A
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity Both communities combined = 112,274 gallons (based on Sept. 07-Aug. 08)
ii. Heat
iii. Transportation
b) Price of displaced fuel Coffman Cove: $3.21 per gal1 x 71,082 gal = $228,173.22
Naukati Bay: $3.24 per gal2 x 41,192 gal = $133,462.08
1 Average price between Sept. 07 – Aug. 08.
RFA AEA 09-004 Application Cost Worksheet Page 2
Renewable Energy Fund
c) Other economic benefits Customers rates will be reduced by about 60%;
Customers will save $48M over 40 yrs
d) Amount of Alaska public benefits The PCE program will save $18M over 40 yrs
6. Power Purchase/Sales Price
a) Price for power purchase/sale Price for power purchase will be reduced from the
price of diesel to the price of hydro $0.0658/kWh.
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio Customer 2.01/3.65 @12% discount rate; PCE Savings: 1.13
Payback Customer 11.13 yrs; State: 16.69 yrs
2 Average price between Sept. 07 – Aug. 08.
RFA AEA 09-004 Application Cost Worksheet Page 3
Alaska Power & Telephone CompanyCost Benefit Analysis - N. POW Line ExtensionOctober 7, 2008Ratepayer BenefitsState Benefits0.0%12.0%0.0%12.0%Net Present Value of Displaced CostsPCE - Group 3Diesel Fuel64,141,095$ 6,311,774$ Diesel Fuel ($.4243/kWh)20,682,999$ 3,323,256$ Variable O&M33,264,615 3,746,824 Total97,405,711$ 10,058,598$ Total20,682,999$ 3,323,256$ Net Present Value of Costs to Ratepayer: with Line ExtensionPCE - Group 2Cost of Power21,413,960$ 3,145,001$ Cost of Power ($0.0488/kWh)2,376,469$ 381,989$ O&M27,641,118 4,156,105 Total49,055,079$ 7,301,106$ 2,376,469$ 381,989$ Net Benefits48,350,632$ 2,757,492$ Net Benefits18,306,530$ 2,941,267$ B/C2.013.65B/C1.131.13Payback Period (in years)11.13Payback Period16.69
GRANT BUDGET FORM
Alaska Energy Authority ‐ Renewable Energy Fund
BUDGET SUMMARY:
Milestone or Task Federal Funds State Funds
AP&T's Match
Funds (Cash)
Local Match
Funds (In‐Kind)Other Funds TOTALS
Phase 1 ‐ Reconnaissance
$0
$0
Phase 2 ‐ Feasibility
Conceptual design $5,000 $5,000
Archaeological survey $30,000 $30,000
Phase 3 ‐ Design and Permitting
Permit applications and processing $5,000 $5,000
Survey $20,000 $20,000
Final design/Staking $25,000 $25,000
Phase 4 ‐ Construction
Control Lake to Coffman Junction ‐ Construct 17 miles of 34.5 kV transmission line (Year 1)$0
Materials $839,514 $839,514
Exempt Materials (matr. X 20%) $167,903 $167,903
Labor $616,100 $616,100
Fringe Benefits (labor x 50%) $162,215 $162,215
Vehicle Expense Heavy (46.3%) $150,211 $150,211
Contract/Other $134,605 $381,895 $516,500
$0 $0 $0
Coffman Junction to Coffman Cove ‐ Construct 20 miles of 34.5 kV transmission line (Year 2) $0
Materials $1,059,296 $1,059,296
Exempt Materials (matr. X 20%) $211,859 $211,859
Labor $652,600 $652,600
Fringe Benefits (labor x 50%) $187,230 $187,230
Vehicle Expense Heavy (46.3%) $173,375 $173,375
Contract/Other $60,900 $60,900
$0 $0
Coffman Junction to Coffman Cove ‐ Construct 20 miles of 34.5 kV transmission line (Year 3)
Materials $477,973 $477,973
Exempt Materials (matr. X 20%) $95,595 $95,595
Labor $402,880 $402,880
Fringe Benefits (labor x 50%) $125,840 $125,840
Vehicle Expense Heavy (46.3%) $116,528 $116,528
Contract/Other $53,500 $53,500
$0 $0
Total $0 $3,752,181 $0 $0 $2,402,838 $6,155,019
*NOTE: This color denotes matching fund expenses.
Matching funds at 20% = $1,231,225
*NOTE: Construction costs
BUDGET INFORMATION
RFA AEA09-004 Budget Form
Detail
NORTH POW INTERTIE - FIRST YEAR CONSTRUCTION
Labor Requirements
Position Reg Hours Ot Hours Rate Reg amt. OT amt. Total amt.
CO Technician 28 0.00 0.00 0.00
Engineer 80 50 4000.00 0.00 4000.00
Foreman 2900 600 39 113100.00 35100.00 148200.00
Installer 300 0 33 9900.00 0.00 9900.00
Journeyman 3800 1000 33 125400.00 49500.00 174900.00
Trainee/Wade 3200 600 20 64000.00 18000.00 82000.00
Manager 600 50 30000.00 0.00 30000.00
Operator/Mechanic 1200 300 30 36000.00 13500.00 49500.00
Trainee, Lineman/Jake 2500 600 24 60000.00 21600.00 81600.00
Flaggers 1400 400 18 25200.00 10800.00 36000.00
Laborer 20 0.00 0.00 0.00
TOTAL 15980 3500 467600.00 148500.00 616100.00
Material Requirements
Order Date: Ship Date:
(Cost Data by Purchasing)
Description Qty. Price Amt.
55' Class 3 poles 238 782.00 186116.00
60' Class 3 poles 57 830.00 47310.00
65' Class 2 poles 34 1202.00 40868.00
40' Class 5 OH Guy Poles 34 250.00 8500.00
70' Class 2 poles 0 890.00 0.00
1/0 ACSR 94248 0.33 31101.84
4/0 ACSR 282744 0.65 183783.60
Side Bracket Insulators 867 105.00 91035.00
Suspension insulators 400 35.00 14000.00
Alum Angle Clamp (AAC-104-90-N) 4/0 600 26.00 15600.00
69kv Post Insulators 24 100.00 2400.00
transmission anchors 200 70.00 14000.00
Anchor extensions (3.5 ft) 600 45.00 27000.00
Insulated Guylinks (96 inch) 200 38.00 7600.00
Insulated Guylinks (36 inch) 200 26.00 5200.00
Fiber and associated materials 20 8000.00 160000.00
Two OH Air-Break Switches 2 2500.00 5000.00
Total 839514.44
Contract Labor or Training Requirements:
Subcontractor Description Amount
ROW Cutting $75/hr x 80 hrs 6000
Travel crew 3 rt 1500 ea = 4500 4500
Brent Cole hauling poles $150/hr x 40 hrs 6000
Purchase 60' double bucket truck (used) instead of renting $2 250,000 250000
Purchase used 200 trackhoe w/slashbuster $250,000 250000
Total 516500.00
Page 1
Detail
WORKORDER DETAIL WORKSHEET W/O #
NORTH POW INTERTIE - SECOND YEAR CONSTRUCTION
Labor Requirements
Position Reg Hours Ot Hours Rate Reg amt. OT amt. Total amt.
CO Technician 28 0.00 0.00 0.00
Engineer 150 50 7500.00 0.00 7500.00
Foreman 3000 600 39 117000.00 35100.00 152100.00
Installer 300 0 33 9900.00 0.00 9900.00
Journeyman 4500 1000 33 148500.00 49500.00 198000.00
Trainee/Wade 3500 600 20 70000.00 18000.00 88000.00
Manager 600 50 30000.00 0.00 30000.00
Operator/Mechanic 1200 300 30 36000.00 13500.00 49500.00
Trainee, Lineman/Jake 2500 600 24 60000.00 21600.00 81600.00
Flaggers 1400 400 18 25200.00 10800.00 36000.00
Laborer 20 0.00 0.00 0.00
TOTAL 17150 3500 504100.00 148500.00 652600.00
Material Requirements
Order Date: Ship Date:
(Cost Data by Purchasing)
Description Qty. Price Amt.
55' Class 3 poles 280 782.00 218960.00
60' Class 3 poles 60 830.00 49800.00
65' Class 2 poles 40 1202.00 48080.00
40' Class 5 OH Guy Poles 40 250.00 10000.00
70' Class 2 poles 0 890.00 0.00
1/0 ACSR 110880 0.33 36590.40
4/0 ACSR 332640 0.65 216216.00
Side Bracket Insulators 1020 105.00 107100.00
Suspension insulators 500 35.00 17500.00
Alum Angle Clamp (AAC-104-90-N) 4/0 600 26.00 15600.00
69kv Post Insulators 72 100.00 7200.00
transmission anchors 250 70.00 17500.00
Anchor extensions (3.5 ft) 750 45.00 33750.00
Insulated Guylinks (96 inch) 250 38.00 9500.00
Insulated Guylinks (36 inch) 250 26.00 6500.00
Fiber and associated materials 30 8000.00 240000.00
Step Down Bank and OH switches 1 25000.00 25000.00
Total 1059296.40
Contract Labor or Training Requirements:
Subcontractor Description Amount
ROW Cutting $75/hr x 120 hrs 9000
Travel crew 3 rt 1500 ea = 4500 4500
Brent Cole hauling poles $150/hr x 60 hrs 9000
Per Diem and room 384 man days x 100/day 38400
Total 60900.00
Page 1
Detail
WORKORDER DETAIL WORKSHEET W/O #
NORTH POW INTERITE - THIRD YEAR CONSTRUCTION
Labor Requirements
Position Reg Hours Ot Hours Rate Reg amt. OT amt. Total amt.
CO Technician 28 0.00 0.00 0.00
Engineer 100 50 5000.00 0.00 5000.00
Foreman 1700 240 39 66300.00 14040.00 80340.00
Installer 200 0 33 6600.00 0.00 6600.00
Journeyman 3000 480 33 99000.00 23760.00 122760.00
Trainee/Wade 2600 240 20 52000.00 7200.00 59200.00
Manager 500 50 25000.00 0.00 25000.00
Operator/Mechanic 700 60 30 21000.00 2700.00 23700.00
Trainee, Lineman/Jake 2100 240 24 50400.00 8640.00 59040.00
Flaggers 1000 120 18 18000.00 3240.00 21240.00
Laborer 20 0.00 0.00 0.00
TOTAL 11900 1380 343300.00 59580.00 402880.00
Material Requirements
Order Date: Ship Date:
(Cost Data by Purchasing)
Description Qty. Price Amt.
50 Class 3 poles 209 754.00 157586.00
60' Class 3 poles 0 830.00 0.00
65' Class 2 poles 0 1202.00 0.00
40' Class 5 OH Guy Poles 22 250.00 5500.00
45' Class 4 poles 15 325.00 4875.00
1/0 ACSR 243936 0.33 80498.88
4/0 ACSR 0 0.65 0.00
Crossarms 10' 385 70.00 26950.00
Suspension insulators 500 35.00 17500.00
Alum Angle Clamp (AAC-104-90-N) 4/0 0 26.00 0.00
15kv post insulators 1000 10.00 10000.00
transmission anchors 132 70.00 9240.00
Anchor extensions (3.5 ft) 275 45.00 12375.00
Insulated Guylinks (96 inch) 132 38.00 5016.00
Insulated Guylinks (36 inch) 132 26.00 3432.00
Fiber and associated materials 15 8000.00 120000.00
Step Down Bank and OH switches 1 25000.00 25000.00
Total 477972.88
Contract Labor or Training Requirements:
Subcontractor Description Amount
ROW Cutting $75/hr x 200 hrs 15000
Travel crew 3 rt 1500 ea = 4500 4500
Brent Cole hauling poles $150/hr x 40 hrs 6000
Per Diem and room 280 man days x 100/day 28000
Total 53500.00
Page 1
Renewable Energy Fund
RFA AEA09-004 Grant Budget Instructions Page 1 of 4
Grant Budget Instructions
Information concerning the proposed budget needs to be provided on the attached form.
The Budget Summary (upper portion of the form) is to provide information on the funding for the
entire project by tasks. The applicant is to provide amounts and identify the source of all funds
that will be used to complete this project. The tasks should represent major units of work that
will need to be completed on the project. At a minimum they should represent the phases
discussed in the application (Reconnaissance, Feasibility, Design and Permitting, or
Construction). Tasks may also represent subtasks under a specific phase. For example, under
Conceptual Design phase, a separate permitting task could be noted.
The Budget Categories (lower portion of the form) is to provide specific budget information for
the grant funds being applied for. Budget information for the other funds to be used to complete
the project need only be provided if that additional information is currently available.
Allowable costs for a grant include all reasonable and ordinary costs for direct labor and
benefits, travel, equipment, supplies, contractual services, construction services, and other
direct costs identified that are necessary for and incurred as a direct result of the project.
A cost is reasonable and ordinary if, in its nature or amount, it does not exceed that which would
be incurred by a prudent person under the circumstances prevailing at the time the decision was
made to incur the costs.
1. Allowable Cost
Allowable costs are only those costs that are directly related to those activities necessary for the
completion of the proposed project. The categories of costs and additional limits or restrictions
are listed below:
a. Direct Labor and Benefits
Include salaries, wages, and employee benefits of the Applicant’s employees for that portion
of those costs that will be attributable to the time actually devoted by each employee to, and
necessary for the project. Direct labor costs do not include bonuses, stock options, other
payments above base compensation and employee benefits, severance payments or other
termination allowances paid to the Applicant’s employees.
b. Travel, Meals, or Per Diem
Include reasonable travel expenses necessary for the Project. These include necessary
transportation and meal expenses or per diem of Applicant employees for which expenses
the employees are reimbursed under the Applicant’s standard written operating practice for
travel and per diem; or, the current State of Alaska Administrative Manual for employee
travel.
c. Equipment
Include costs of acquiring, transporting, leasing, installing, operating, and maintaining
equipment necessary for the Project, including sales and use taxes.
Subject to prior approval of the Authority’s Project Manager, costs or expenses necessary to
repair or replace equipment damage or losses incurred in performance of work under a
grant may be allowed. However, damage or losses that result from the Applicant’s
Renewable Energy Fund
RFA AEA09-004 Grant Budget Instructions Page 2 of 4
employees, officer’s, or contractor’s gross negligence, willful misconduct, or criminal conduct
will not be allowed.
d. Supplies
Include costs of material, office expenses, communications, computers, and supplies
purchased or leased by the Applicant necessary for the project.
e. Contractual Services
Include the Applicant’s cost of contract services necessary for the Project. Services may
include costs of contract feasibility studies, project management services, engineering and
design, environmental studies, field studies, and surveys for the project as well as costs
incurred to comply with ecological, environmental, and health and safety laws.
f. Construction Services
For construction projects this includes the Applicant’s cost for construction contracts, labor,
equipment, materials, insurance, bonding, and transportation necessary for the project.
Work performed by the Applicant’s employees during construction may be budgeted under
direct labor and benefits, project management or engineering. Major equipment purchases
made by the Applicant may be budgeted under equipment.
g. Other Direct Costs
In addition to the above the following expenses necessary for the project may be allowed.
Net insurance premiums paid for insurance required for the grant project;
Costs of permits and licenses for the grant project;
Non-litigation legal costs for the project directly relating to the activities (in this
paragraph, “non-litigation legal costs” includes expenses for the Applicant’s legal staff
and outside legal counsel performing non-litigation legal services);
Office lease/rental payments;
Other direct costs for the project directly relating to the activities and identified in the
grant documents; and/or
Land or other real property or reasonable and ordinary costs related to interests in land
including easements, right-of-ways, or other defined interests.
The Applicant is reminded to include sufficient funds for the management of the project, as the
Authority may terminate the grant or assume the project management responsibilities if it is
determined by the Authority that the Applicant is not providing adequate project management on
its own.
2. Specific Expenditures Not Allowed
Ineligible expenditures include costs for overhead, lobbying, entertainment, alcohol, litigation,
payments for civil or criminal restitution, judgments, interest on judgments, penalties, fines,
costs not necessary for and directly related to the grant project, or any costs incurred before the
beginning date of the grant. This is not intended to be a complete list of all ineligible
expenditures.
Overhead costs described in this section include:
salaries, wages, applicable employee benefits, and business-related expenses of the
Applicant’s employees performing functions not directly related to the grant project;
Renewable Energy Fund
RFA AEA09-004 Grant Budget Instructions Page 3 of 4
office and other expenses not directly related to the grant project; and
costs and expenses of administration, accounting, human resources, training, property
and income taxes, entertainment, self-insurance, and warehousing.
3. Match and Cost Sharing
If the Applicant is providing a match, it is should be detailed either as a specific dollar amount or
as a percentage of the total project budget. The type and amount of matching contributions
should be discussed in the application under section two.
Cost sharing or matching is that portion of the Project costs not borne by the Authority. The
Authority will accept all contributions, including cash and in-kind, as part of the Applicants’ cost
sharing or matching when such contributions meet the following criteria:
Are provided for in the Project budget;
Are verifiable from the Applicant’s records;
Third party costing sharing contributions are verifiable (with a letter of intent or similar
document);
Are not included as contributions for another state or federally assisted project or
program (i.e., the same funds cannot be counted as match for more than one program);
Are necessary and reasonable for proper and efficient accomplishment of the Project or
program objectives;
Are allowable costs;
Are not paid by the State or federal government under another award, except for
authorized by the State or federal statute to be used for cost sharing or matching;
Must be incurred within the grant eligible time period.
Any match proposed with the application will be required in the Grant award and the Grantee
will be required to document the use of the proposed matching funds or in-kind contributions
with their request for reimbursement.
4. Valuing In-Kind Support as Match
If the Applicant chooses to use in-kind support as some; or, its entire match, the values of those
contributions will be reviewed by the Authority at the time the budget is approved. The values
will be determined as follows:
The value of real property will be the current fair market value as determined by an
independent third party or a valuation that is mutually agreed to by the Authority and
the Applicant and approved in the grant budget.
The value assessed to Applicant equipment or supplies will not exceed the fair
market value of the equipment or supplies at the time the grant is approved or
amended.
Equipment usage will be valued based on approved usage rates that are determined
in accordance with the usual accounting policies of the recipient or the rates for
equipment that would be charged if procured through a competitive process. Rates
paid will not exceed the fair market value of the equipment if purchased.
Renewable Energy Fund
RFA AEA09-004 Grant Budget Instructions Page 4 of 4
Rates for donated personal services will be based on rates paid for similar work and
skill level in the recipient’s organization. If the required skills are not found in the
recipient organization, rates will be based on rates paid for similar work in the labor
market. Fringe benefits that are reasonable, allowable, and allocable may be
included in the valuation.
Transportation and lodging provided by the Applicant for non-local labor will not
exceed the commercial rates that may be available within the community or region.
5. Grant Disbursements
Applicants are reminded that they must request disbursement of grant funds in the form and
format required by the Authority with appropriate back-up documentation and certifications.
This format will be provided by the Authority.
The back-up documentation must demonstrate the total costs incurred are allowable, and reflect
the amount being billed. Documentation must include:
A summary of direct labor costs
Travel and per diem reimbursement documentation
Contractor or vendor pay requests
Invoices
Timesheets or check copies to document proof of payment must be available for audit purposes
at the Applicants place of business.
Payment of grant funds will be subject to the Applicant complying with its matching contribution
requirements of the proposed grant.