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HomeMy WebLinkAboutAEA Grant Narrative Southwest Alaska Regional Geothermal Energy Project Alaska 10 Naknek Naknek Electric Association, Inc Page 1 of 12 Southwest Alaska Regional Geothermal Energy Project Phase III Confirmation Well, Feasibility, Final Design and Permitting Renewable Energy Grant Fund Request for Grant Application (RFA) AEA-09-004 Alaska Energy Authority October 2008 Business and Technical Point of Contact: Donna Vukich, General Manager Organization Name Naknek Electric Association, Inc Non-Profit Cooperative 501 (c) (12) Rural Electric Generation/Distribution Street Address PO Box 118 City/State/Zip Naknek, Alaska 99633 E-mail Address dvukich@nea.coop Phone 907 246 4261 Facsimile 907 246 6242 Cooperative Agreement and Grants Renewable Energy Grant Fund $ 5,000,000 Proposed Cost Share $ 5,020,000 Total Project Value $ 10,020,000 Objectives of Phase III Confirmation and Final Design and Permitting  Leverage $3,000,000 in Congressionally Directed Energy Efficiency and Renewable Energy Project appropriations through the Department of Energy (DOE) and $2,020,000 in local contributions for a 50% match for a $10,200,000 Renewable Energy Grant Fund investment in Phase III: Confirmation Well, Feasibility, Final Design and Permitting to secure:  Cost-share well design and well construction for resource confirmation, final feasibility and design of commercially productive geothermal energy resource capacity for utility grade electric generation and district heating applications including drilling management, scientific research data collection, reporting and modeling, and planning and maintenance for long-term productivity,  Collaboration and cost-share opportunities with local, state, federal and the private sector to demonstrate advanced technologies including multilateral drilling, well casing and cementing, and data collection methods implementing diagnostics while drilling (DWD),  Deployment of low-cost drilling technologies for exploration, verification and quantification of geothermal resources and reservoir maintenance for enhanced productivity, and the transfer of those technologies and techniques to other potential geothermal sites in Western Alaska. Southwest Alaska Regional Geothermal Energy Project Alaska 10 Naknek Naknek Electric Association, Inc Page 2 of 12 Regional Geothermal Distribution Network Southwest Alaska Regional Geothermal Energy Project Alaska 10 Naknek Naknek Electric Association, Inc Page 3 of 12 SOUTHWEST ALASKA REGIONAL GEOTHERMAL ENERGY PROJECT Project Summary Naknek Electric Association, Inc. (NEA) is exploring geothermal power production to supply long-term affordable and environmentally benign geothermal energy capacity to meet regional electrical generation and district heating requirements of residents improving rural sustainability, employment, tourism and natural and strategic resource development. The cooperative faces an urgent need to identify sound alternatives to diesel generation due to the increasing and unpredictable costs of fossil fuels. These costs threaten the economic health and sustainability of the Bristol Bay and Lake Regions of Southwest Alaska. In NEA’s service area alone the diesel fuel surcharge reflected in electric rates charged to consumers from 2006-2007 increased by about 68% or more than $73.00 per month for a typical residential customer. So far in 2008 utility fuel costs have surpassed 2007 records by 60% and indicate a severe cost increase to consumers. Even more telling is the fact that over a four-year period fuel prices to the cooperative increased 275%. Developing geothermal resources for electric generation will stabilize and lower electric rates throughout the region where approximately 6,500 people live in 25+ isolated rural communities. Bristol Bay is considered the “Sockeye Salmon Capital of the World” and home of the historically significant Bristol Bay seafood industry. This resource is worth millions annually, it is sustainable, managed for optimal returns and provides a resource base for an industry geared for a 4-6 week window of base production with very little value added activities achieved locally. A majority of the resource is primarily processed in the region and shipped bulk (1,000 lb totes) frozen for secondary processing, packaging, shipping and cold storage elsewhere. Since the area has a natural economic base, lowering the cost of electricity will significantly improve the seafood industry’s willingness to invest in processing infrastructure that will bolster local economies. Several large seafood processors have indicated that with electric energy cost reductions their Bristol Bay processing operations could include shoulder seasons on both sides of the peak, increased secondary processing and cold storage. Recreational, sports fishing, tourism and oil, gas and mineral resource extraction industries are similarly poised for major development with the availability of affordable energy. NEA’s interest in utility grade geothermal electrical energy generation took root over a decade ago when the cooperative began researching local geothermal energy potential and found that considerable research and data collection conducted within Katmai National Park and Preserve warranting further investigation. The park boundary lies just a few miles from NEA’s distribution infrastructure. During preliminary discussions with federal officials, it appeared that gaining access to a geothermal resource through park and refuge lands would be excessively expensive and time consuming. While focusing on improved diesel generation efficiency and efforts to stabilize electric rates NEA continued to watch for geothermal development opportunities. Current drilling technology supports feasible development of geothermal resources at depths greater than 10,000 feet. Drilling deep to harness hot resources close to but outside park boundaries and in close proximity to existing transportation and electric distribution infrastructure is possible. NEA is currently assessing local geothermal resources, commercialized geothermal power technologies and options for a transmission system that will extend the benefit of geothermal resource development regionally. NEA has completed research, review and assessment of thermal imagery map overlays, oil well exploration and drilling log data, regional faults and fractures data. Soil samples were collected and chemical analysis identified minerals commonly found in the presence of geothermal resources. NEA contracted for preliminary geological evaluation, a shallow temperature survey and a 3D seismic survey. Final siting, design and permitting a deep drill to verify the resource are the next steps in the project’s timeline. Alaska has immense undeveloped natural resources and supports a secure business environment favoring resource development. The state’s role in fostering geothermal resource development and its potential leverage and authority are concepts central to discussions of Southwest Alaska Regional Geothermal Energy Project support and investment. Alaska has the opportunity to partner with major oil companies operating in the state, not only for oil and gas development as evidenced recently with the advancement, at both state and federal levels, of Governor Palin’s plan to deliver natural gas to market in Canada and the lower 48 authorized by the Alaska Gasline Inducement Act (AGIA) 2007, but also by leveraging state owned oil, gas and mineral resources in exchange for cooperative Southwest Alaska Regional Geothermal Energy Project Alaska 10 Naknek Naknek Electric Association, Inc Page 4 of 12 agreements supporting renewable energy development and technology transfer. Crudely put “loopholes for boreholes” or in-kind incentives could provide the impetus for developing alternatives to fossil fuels. Oil industry majors doing business in Alaska have the best minds, technology and equipment to access deep resources. Investment and cooperative agreements are sought between the State of Alaska, the United States Department of Energy, the oil industry and NEA”s Southwest Alaska Regional Geothermal Energy Project for geothermal development strategies that apply, test and demonstrate technologies aimed at lowering the cost of geothermal energy production in remote regions. Southwest Alaska is poised for renewable and sustainable resource development in the seafood industry and major development in oil, gas and strategic mineral extraction industries. This project has the potential to meet its objectives and reduce risks with cost-share, planning and technical support from AEA. Project Type NEA’s Southwest Alaska Regional Geothermal Energy Project - Phase III: Confirmation Well, Feasibility, Final Design and Permitting presents an opportunity to establish cooperative agreements with regional, state, federal and the energy industry to develop a “hidden” geothermal reservoir with capacity to meet the today’s regional energy requirements and with ongoing planning and development long-term energy demand. Project Description Southwest Alaska is poised geographically and geologically for major economic productivity. The delivery of affordable energy allows the transformation of strategic natural resources into globally viable market commodities providing benefit to the region, the state and the nation. NEA’s project will demonstrate base load utility grade geothermal technologies and serve as a bellwether for cost-effective renewable energy development. The project has the potential to broaden the knowledge base necessary for expanding geothermal utilization for electric and heating energy requirements in rural, remote, off-the-grid regions endowed with natural resources that require energy intense value-added manufacturing to bring them to market. Phase III is high risk and if successful will render high returns. Cooperating with AEA will maximize the project’s success rate and provide a model for solving energy needs in rural settings with geothermal potential. Project development requires consideration of a number of factors involved in geothermal electric generation that have not been tested in the operating area of the utility, nor in the state of Alaska. While geothermal energy resource alternatives have been successfully deployed in other locations with similar resource capacity, there are permitting, facility location and construction issues unique to the region. As with any resource exploration there are a number of issues, some of which are unknown even in terms of the amount of time and effort required by program participants to reach problem resolution as the project is developed. Nevertheless, the success of geothermal electric power production in places such as California, Nevada and Iceland and the limited number of alternatives available in the region provide a firm foundation and justifiable basis for NEA’s project development. NEA has obtained information from site visits to Iceland, Nevada and California, and from public and private sources regarding geothermal sites near and around Bristol Bay. The viability of geothermal power production elsewhere and the identification of known thermal activity in the region support exploratory drilling, additional fact-finding and feasibility analysis. In accordance, NEA has taken steps to establish the underlying information and support for geothermal resource verification and quantification including:  Assembled data on the ground source geothermal potential identified by geological surveys in the Katmai region by the University of Alaska  Assessed mapping and multispectral imaging conducted by NEA and the State of Alaska in the near region defining anomalous areas  Contracted with cartographers and geologists for analysis and description of resource area boundaries and relationships among current land uses  Arranged local survey assistance in defining and designating access corridors  Explored characteristics of neighboring communities for applications of geothermal energy and geothermal system expansion opportunities Southwest Alaska Regional Geothermal Energy Project Alaska 10 Naknek Naknek Electric Association, Inc Page 5 of 12  Defined the economic feasibility, development potential and growth opportunities associated with reduced energy costs and expanded energy options  Drilled 3 shallow test wells along defined anomalies to collect data and establish bedrock  Utilized University of Alaska Fairbanks geology graduate student to conduct a literature review and recommendation, geochemistry survey, fault structures study and preliminary geothermal resource assessment  Contracted with HDL to conduct shallow temperature survey in anomalous locations  Contracted with HDL for initial geology and determination of geothermal potential  Contracted with CGGVeritas for 3D seismic study at two anomalous locations  Lobbied local, state and federal agencies for project and policy support Naknek Electric Association, Inc. has been investigating alternative energy sources but recognized diesel generation as the most cost effective form of firm electric power production. That scenario has changed and for some villages, unable to pay fuel expenses to run electric generators, schools and community infrastructure, sustainability and cultural continuity issues are real. Alaska’s rural citizens contribute larger portions of their discretionary incomes to pay for energy costs than their urban counterparts and are more conservative in their use. Per capita energy consumption in rural communities is dramatically less than the average per capita consumption in non-rural areas Out-migration is a major concern and a “eat or heat” sentiment is forcing rural populations off the land and into larger rural hubs and urban living situations where subsistence and cultural norms are not reinforced and consequently adding pressure to urban and suburban communities that cannot handle the dramatic population increases. The situation is critical, a region and a culture are at risk. This situation is paralleled by unprecedented oil and gas lease sales in Bristol Bay and strategic mining developments throughout the region that have huge energy requirements. How and for whom energy capacity and renewable resources are exploited are questions that must be addressed. The Department of the Interior is(DOI) working through United State Geological Survey (USGS) and DGGS (AK) and the U.S Forestry Service to expand geothermal leasing. NEA’s project is a perfect demonstration of resource potential in Southwest Alaska and will prove the feasibility of meeting the energy needs in regional communities, and the seafood and resource extraction industries. With an interconnecting transmission infrastructure the development and distribution of electricity from a renewable resource will provide power for targeted mineral, oil and gas development and support services in area poised for major resource development. The Risks and Benefits of Geothermal Energy Resource Development Exploring for any natural resource entails risk. A $10,000,000 investment in the exploration phase of a successful project to develop geothermal energy in a region sitting on billions of dollars worth of natural resources will mean:  Cost reductions for electric and home heating energy to the end user  Increasing capacity without environmental liability  Reducing carbon dioxide, nitrous oxide and sulfur emissions  Reducing dependency on fossil fuel and subjection to oil market volatility  Increasing stability in the cost of power  Increasing employment, economic diversity and growth  Increasing regional value-added manufacturing of renewable and finite resources  Increasing fish taxation for local governments and the state  Increasing quality of fish with affordable icing and freezing  Increasing the ex-vessel price to fishermen  Producing hydrogen for fuel diversification by efficient use of the geothermal resource The Southwest Alaska Regional Geothermal Energy Project will provide local economic opportunities in an area with a high unemployment rate, approximately 16%. The Bristol Bay Regional Geothermal Energy Project will create approximately 100 temporary jobs during construction and up to 30 full-time permanent positions requiring skilled workers to operate and maintain the system. The region offers several University of Alaska Campus’ and a state of the art distance learning facility at the Southwest Alaska Vocation and Education Center (SAVEC) in Dillingham accommodating alternative energy and resource development training courses. Southwest Alaska Regional Geothermal Energy Project Alaska 10 Naknek Naknek Electric Association, Inc Page 6 of 12 While NEA’s interest in the project focuses on production of electricity, identification of a geothermal resource could bring many other benefits, including hydrogen production, hot water heating to nearby communities, and the development of spas, greenhouse projects, and other renewable resource developments and related businesses. An initial assessment of the value (benefit) and potential applicability of a geothermal resource for the NEA system will be developed by use of borrowed power plant data with a more thorough evaluation using formal design data and construction cost estimates. Data from other facilities includes capital costs per kW, operating expenses (adjusted for national and regional differences), extraction and lease costs for steam or brine and estimated transmission costs of either brine or electricity. Sources of comparative plant data include Icelandic facility capital costs (adjusted for local conditions), installation costs of the California Geysers plants, and estimated capital costs developed by Unalaska for the Makushin project. Operating costs will vary with size, and will be determined both with and without joint uses. Heat distribution systems, steam production systems and associated equipment will generally be provided by others, included in the total costs of the project and allocated between uses. A preliminary assumption must be made as to additional uses of heat from a geothermal project in the NEA service area supporting a brine transmission facility that would offset capital and operating costs. In the absence of brine delivery to Naknek, the costs of a remote generation facility and electrical transmission line would be estimated and compared with power generation with traditional fuel sources. Heat and/or steam generation for use by the seafood industry during high summertime production and load periods or other potential uses, including selective area heating, may help to offset initial capital costs and support a larger facility with concomitant economies of scale. Following comparative studies from borrowed plant data a more definitive analysis will be developed from plant engineering and cost estimates specific to the Bristol Bay location. The regional capability expectations will be developed more fully upon knowledge of the magnitude of potential geothermal electrical and thermal contributions. The benefits analysis derived from comparison of NEA system revenue requirements under traditional generation sources would be compared with the revenue requirements likely with a geothermal resource contribution and expanded to include other electrical system benefits and thermal gains. A present value difference will provide order of magnitude and boundary conditions for the expectations of system savings. Geothermal Process and Facility Engineering The geothermal plant engineering detail follows geothermal development feasibility. Physical plant design will be based upon test results and anticipated uses within the NEA’s service area. Due diligence will be accomplished through preliminary engineering and cost estimation studies. Preliminary engineering will be based on the relationships of costs of known facilities or more thoroughly planned geothermal developments and the geothermal potential identified by the confirmation drilling program. The studies will provide order of magnitude cost estimates for various components, estimated construction time and energy production estimates including:  Estimated total annual operating costs  Estimated total monthly operating costs  Estimated monthly energy delivery  Estimated monthly peak delivery  Estimated hourly energy delivery profile The costs and operating characteristics derived from preliminary engineering will be compared with resource requirements and present value determinations providing guidance for continued engineering and additional funding requirements. The initial engineering and cost analysis will form the feasibility test of a design-build project. If NEA-sponsored design-build is determined infeasible as a result of preliminary engineering, restrictions on access, system financial considerations or other factors faced by NEA, a process of seeking developer proposals and purchase power arrangements will be developed. The geothermal potential identified within federal or state lands Southwest Alaska Regional Geothermal Energy Project Alaska 10 Naknek Naknek Electric Association, Inc Page 7 of 12 may be leased, publicly available or shared by NEA with a potential developer and subject to any drilling and testing access granted to NEA. If design-build by NEA is determined feasible following preliminary engineering, more detailed engineering will be acquired from a qualified engineering, procurement and construction (EPC) contractor. The contractor will provide design, drawings and detailed specifications suitable for solicitation of construction bids. The detailed work will include:  Generation facility engineering  Transmission line engineering  Substation engineering  Roads, foundation and well site surveys and designs  Geotechnical site work for roads, foundations and well sites  Well system engineering  Water collection and return systems civil engineering  SCADA system engineering  O&M facility engineering  Other engineering The design will include multiple stage development information corresponding to the total geothermal potential and possible facility expansion opportunities, as will be identified in the benefit analysis and NEA resource planning assessments. Action Plan The staff and management of NEA have established the goals of maintaining financial stability and electric reliability. To accomplish those goals, NEA plans for system growth through continual review of generation and distribution capacity and seeks alternative or more efficient energy sources to mitigate the high cost of diesel fired internal combustion generation. To that end NEA has undertaken initial steps toward a geothermal future by collecting field data on identified thermal sources and making reconnaissance visits to currently installed and operating geothermal electric production facilities in Iceland and Northern California. The next steps include more detailed investigation of resource potential and refining the information. NEA seeks funding local, state, federal, industry and other funding agencies to bring the project to completion. An initial funding requirement of $5,000,000 will launch and support the drilling program to verify a geothermal potential. The action plan to proceed upon availability of adequate funding will include: Step 1: Cooperative Agreements with local, state, federal and private agencies. In-kind contributions of equipment, manpower and transportation from regional firms are being investigated to help offset costs. Step 2: Upon completion of the confirmation phase drilling program a final engineering evaluation of economic feasibility will be conducted. Upon resource confirmation and qualification action will proceed to: Step 3: Final feasibility analysis including: detailed plant engineering; site preparation and development; permitting process requirements; and, NEA and final regional benefits assessment. Step 4: Prepare and submit loan application documentation and obtain verification of permitting, l oan acceptance or grant procurement. Step 5: Finalize construction contract upon removal of contingency and proceed to project completion. Southwest Alaska Regional Geothermal Energy Project Alaska 10 Naknek Naknek Electric Association, Inc Page 8 of 12 Bristol Bay Regional Geothermal Energy Project Resource Benefits Preliminary Geothermal Impact Analysis – First Year Full Operation Tom Lovas - Energy Resource Economics Annual Energy MWh Annual Cost NEA Avg. Rate $000 ¢/kWh Naknek Electric Distribution System Load 12 MW Annual Load Factor 20.5 % 21,550 Annual Non-Fuel System Cost of Service 5,993 27.8 Annual Fuel Cost 15 kWh/gal 2.50 $/gal 3,592 16.7 Naknek Average Cost per kWh (net of fuel) 11.1 Geothermal Plant Capacity 25 MW Plant Capacity Factor 85 %/yr 186,150 Geothermal Cost: Nevada Facility 1.5 ¢/kWh Alaska Differential (times 2) 3.0 ¢/kWh 21,550 646 3.0 Naknek Average Cost per kWh (all energy geothermal) 14.1 Potential Wholesale Power Sales Net Available for Wholesale Gross MWh - NEA 164,600 Energy 30 % of avail. 49,380 Margin Requirement (NEA) 10 % 148 0.7 Naknek Average Cost per kWh (after geothermal and wholesale power sales) 13.5 Other Revenues: Offset Fuel Oil Cost 4.00 $/gal* 30.30 $/MMBtu B Btu Heat Load Residential 700 homes Fuel Displaced 100 gal/mo. 110.9 -3,360 Heat Load Commercial 100 buildings Fuel Displaced 5000 gal/mo. 792.0 -6,000 District Heat Loop 15 mi. Capital Cost (inc. conversion) 350 $000/mi. Fixed Cost Recovery, 30 yr., 5%, $000 342 Operating Cost, 1% Capital 52.5 $000/yr. Total Annual Cost 394 Avoided Fuel Cost 902.9 -8,966 Avoided Cost, Equivalent ¢/kWh* -3.4 Naknek Net Average Cost per kWh (after credit for heat sales) 10.1 * 1 kWh = 3413 Btu Southwest Alaska Regional Geothermal Energy Project Alaska 10 Naknek Naknek Electric Association, Inc Page 9 of 12 Project Facility, Management and Team Facility Naknek Electric Association, Inc. is a 501 (C) (12) member owned cooperative electric utility with an elected board of directors. The original plant was first energized December 21, 1960. Naknek Electric Association, Inc. provides management and services to INN Electric Cooperative, Inc. (INN) and through an agreement with the Denali Commission provides oversight services to Manokotak Power Company. Current operations:  10.5 MW generation plant  90 miles of distribution  Service to three communities  District heating to school, clinic, ambulance garage, pool, residences and NEA facility  1,049 meters  Service agreement with two neighboring utilities  Service to large power seafood processors  Service to government consumers, United States Air Force, Federal Aviation Administration, United States Fish & Wildlife Service, Alaska Department of Fish & Game, United States Weather Service, National Park Service, Bristol Bay Borough  Service to Bristol Bay commercial fishing, sport fishing and tourist industry  19,500 MWH sold in 2006 The generation plant facility consists of a steel building containing ten diesel generator sets, control panels and feeder switchgear, situated on 3.66 acres owned by the association. All fuel, battery, cooling, ventilation, recaptured heat systems and all other associated equipment is also housed in the generation building which is adjacent to a recently upgraded substation. The generators are fueled from a 1.5 million gallon capacity, Department of Environmental Conservation (DEC) compliant tank farm located directly behind the generation plant, also situated on NEA property. Project Management THE MISSION: Naknek Electric Association, Inc. is committed to the mission of providing superior electric service, accomplished through the efforts of a highly skilled, motivated and safety conscious workforce with the support services, technologies and facilities to ensure the association’s members enjoy the benefits at the lowest price consistent with sound management. NEA has a competent and dedicated team of professionals capable of administrating and implementing the project’s plan including operation and maintenance upon completion. Among their qualifications is an outstanding safety record. As of August 31, 2007 there has been no lost time in 2,054 days, an exemplary record and confirmed by 10 consecutive years of Safety Achievement Awards from the Alaska Power Association (APA). Recently, management and employees collaborated to become the first small “bush” cooperative in Alaska to earn Rural Electric Safety Accreditation (RECAP) from National Rural Electric Cooperative Association (NRECA). Some of the guidelines establishing accreditation exceed local, state and federal requirements. The cooperative underwent two stringent evaluations based on a three-year review period and successfully demonstrated that its management and employee safety practices provide a safe and healthful work environment. Team efforts were rewarded when they accepted the award at Alaska Power Association’s Annual Meeting in 2006 and received insurance premium discounts resulting in substantial savings for the cooperative. NEA management understands the need for a prosperous economy and to ensure it the cooperative includes enhancing economic development in its strategic goals. Work re-establishing the Bristol Bay Borough Chamber of Commerce and guidance provided to a small fisherman’s cooperative earned NEA the 2005 Silver Switch Award presented by the National Food and Energy Council in recognition of the association’s economic development program. Southwest Alaska Regional Geothermal Energy Project Alaska 10 Naknek Naknek Electric Association, Inc Page 10 of 12 In an effort to offset salaries at NEA and ensure economic and operational success of neighboring utilities, the cooperative provides management and services to INN Electric Cooperative, Inc. and training and oversight services to Manokotak Power Company, the latter through an agreement with the Denali Commission. These activities and relationships are supported by a well trained and experienced board (Certified NRECA Credentialed Cooperative Directors), are deployed by management that is strong on leadership with a long-term vision, and employees dedicated to their work and community. NEA’s financial management is sound as evidenced in its ability to reduce spending and aggressivel y seek additional load, minimizing the economic decline. The cooperative, as a Rural Utilities Service borrower complies with government standard accounting and reporting practices and consistently receives unqualified opinions from auditors. NEA’s recent projects are highlighted below. The cooperative has weathered difficult economic times in the region because of dedicated professionals with decades of experience in electric generation, distribution, district heating, personnel, project management and grant administration. Since 1997 the cooperative has accomplished the following Grants Administered in the Past Ten Years:  Management of $750,000 award from FEMA for ice storm damage  Administered a $500,000 Denali Commission grant for generation upgrade and the purchase of a 3512(b) Caterpillar engine  Administered a $2.6 million Rural Utilities Service High Cost Energy award purchasing and installing two 3512(b) Caterpillar engines, switchgear and a substation upgrade  Administered a $350,000 Denali Commission grant for a 3D seismic study Construction:  Tank farm upgrade to meet DEC leak detection and the installation of a new 500,000 gallon tank  Changed out 4 engines and increased capacity from 7,685 kW to 10,337 kW  Substation capacity increase of 5 MVA  Completed a 2,400 square foot plant and administration office addition  Currently working on the construction of a vehicle maintenance building Recaptured Heat:  Provides 100% of Bristol Bay Borough School District’s needs since the early 1970’s  Provides 100% of Camai Community Health Center and 8 surrounding residences’ heating needs since 1983  Provide 80% of Kvimarvik Swimming Pool since 1999 THE TEAM: NEA Board of Directors David Jedlicka – President Steven Jones - Director Herbert Mitchell – Vice President Nanci Lyon - Director Dale Peters – Secretary/Treasurer Tom Deck - Director Pete Hill – Director Donna Vukich – NEA General Manager 22 years electric utility experience 10 years as General Manager of NEA 5 years a Finance Manager Manages $16,000,000 portfolio Implemented $2.7 million RUS High Energy Cost Grant Engineering interface Southwest Alaska Regional Geothermal Energy Project Alaska 10 Naknek Naknek Electric Association, Inc Page 11 of 12 Managed tank farm and generation upgrade Lead on Regional Geothermal Project Geothermal Energy Course Instructor at University of Alaska Campus in King Salmon, Alaska Darrell Aspelund – NEA Plant Supervisor Over 30 years experience in electric generation Responsible for scheduling, engine overhauls and plant maintenance Engineering interface Lead on tank farm and generation upgrade Received Alaska Power Association’s 2006 Hatcher-Williams-Turkington Employee Service Award Kevin Coissart – NEA Line Supervisor 12 years experience as lineman Lead construction and maintenance of distribution system Transmission construction project experience Experience operations and maintenance supervisor Engineering interface Peggy Saia – NEA Chief Financial Officer/Office Manager Supervises office staff, accounts payable and accounts receivable Government interface on utility issues Performs all government and industry reporting requirements Principle safety and loss control administrator Bill Edwards – NEA Heat Recovery Systems and Contract Liaison 30 years electric generation experience including diesel generation Installation and maintenance of recaptured heat systems Service agreement liaison with INN Electric Cooperative and Manokotak Power Company Power & Control Engineering Robert Dryden, P.E. PO Box 2338 Sitka, AK 99835 907 747 3657 (tel) - rdryden@aol.com Kemppel, Huffman and Ellis, P.C. 255 East Fireweed Lane - Suite 200 Anchorage, AK 99503 907 277 1604 (tel) - 907 2762493 (fax) - rrk@khe.com Coastal Surveyors Ralph Mancuso PO Box 181 Naknek, AK 99633 907 246 4408 (tel) 907 246 4408 (fax) – ralph@coastalsurveyors.com Energy and Resource Economics Tom Lovas 5840 Azalea Drive Anchorage, Alaska, 99516-4362 907 345 5116 (tel) 907 351 7846 (cell) - tlovas@acsalaska.net Southwest Alaska Regional Geothermal Energy Project Alaska 10 Naknek Naknek Electric Association, Inc Page 12 of 12 Egli Air Haul, Inc Sam Egli PO Box 169 King Salmon, Alaska 907 246 3554 907 439 6119 - www.egliair.com Phase I and II Engineering and Exploration Consultants: Hattenberg, Dilley and Linnell, LLC – Engineering Consultants Laurie Dilley 3335 Arctic Blvd - Suite 100 Anchorage, Alaska 99503 907 564 2120 (tel) - 907 564 2122 (fax) - info@hdlalaska.com CGGVeritas – Seismic Joe Pagliero, Project Manager 2450 Cinnabar Loop Anchorage, Alaska 99507 907 276 6037 (tel) - 907 276 6034 (fax) - 907 27 8680 - joe.pagliero@cggveritas.com