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AEA Board Meeting Oct 15 2003
Alaska Industrial Development and Export Authority Alaska Energy Authority 10. AGENDA ALASKA ENERGY AUTHORITY Board of Directors October 15,2003 Anchorage,Alaska CALL TO ORDER BOARD OF DIRECTORS ROLL CALL PUBLIC ROLL CALL PUBLIC COMMENTS PRIOR MINUTES -August 8,2003 OLD BUSINESS NEW BUSINESS DIRECTOR COMMENTS A.Director's Status Report of AEA Programs and Projects e Rural Power Systems Upgrade Program e Alternative Energy and Energy Efficiency Program B.Next Meeting Date -Follows AIDEA Board meeting Dates BOARD COMMENTS ADJOURNMENT H:\ALL\bfuglestadc\BOARD\Agenda AEA.doc 813 West Northern Lights Boulevard *Anchorage,Alaska 99503 907 /269-3000 «FAX 907 /269-3044 ¢Toll Free (ALASKA ONLY)888 /300-8534 *www.aidea.org Alaska Industrial Development and Export Authority ty ALASKA ENERGY AUTHORITY BOARD OF DIRECTORS October 15,2003 -10:47 a.m. Anchorage and Juneau,Alaska Teleconference 1.CALL TO ORDER Chairman Barry called the meeting of the Alaska Energy Authority to order on October 15,2003,at 10:47 a.m.A quorum was established. 2.BOARD OF DIRECTORS ROLL CALL Directors present in Anchorage:Mr.Mike Barry (Chairman/Public Member),Commissioner Mike Barton (Department of Transportation and Public Facilities),Mr.John Winther (Public Member), and Deputy Commissioner Bill Noll (Designee for Department of Community and Economic Development). Directors present in Juneau:Deputy Commissioner Tom Boutin (Designee for Department of Revenue). 3.PUBLIC ROLL CALL Staff present in Anchorage:Ronald W.Miller (Executive Director),James A.McMillan (Deputy Director-Credit),Valorie Walker (Deputy Director-Finance),Mike Harper (Deputy Director-Rural Energy),Brenda J.Fuglestad (Administrative Manager),Sara Fisher-Goad (Financial Analyst), Lynn Kenney (Development Specialist),Chris Mello (Program Manager),Peter Crimp (Development Specialist),and Kris Noonan (Program Manager). Others attending in Anchorage:Brian Bjorkquist (Department of Law),Jim Walker (Matanuska Electric Association),and Becky Gay (Alaska Energy Task Force). 4.PUBLIC COMMENTS There were no public comments. 5.PRIOR MINUTES -August 8,2003 The August 8,2003 minutes were approved as presented. 6.OLD BUSINESS There was no old business. 813 West Northern Lights Boulevard *Anchorage,Alaska 99503 ANT FALFON VANN ATAY NAT IATA INADA 2 TOI FA ACISA ENR ONO FINN OF DA onanmrewiadann Ae AEA Board Meeting October 15,2003 Meeting Minutes Page 2 7.NEW BUSINESS There was no new business. 8A.__Director's Status Report of AEA Programs and Projects e Rural Power Systems Upgrade Program Mr.Harper said that the Rural Energy Group has approximately $92 million in funds from the Denali Commission for various projects.The state's main goal is to move toward efficiency and reliability of power generation in the rural areas of Alaska.Project funding for 2003 has been received and approximately 70%of the funding for 2004 projects has been received from the Denali Commission. In response to Board questions,Mr.Noonan stated that the powerplant in the community of Buckland was designed approximately 10-15 years ago.Since that time,the community has grown beyond the capabilities of the powerplant.There are three generators that are currently running and in the winter two run in parallel to keep up with the power demand and their powerhouse will not house larger equipment.The load increases,which have overburdened the existing plant,have been due in part to the construction of a new school and multiple housing units, and the installation of lighting on the airport runway.Before the design of the new powerhouse, staff will look at the overall growth of the community and tie it to a projection of where they may be 10 years from now. A more recent technology that is being used at the powerhouses is automated switchgear.This switchgear allows the communities to monitor the powerhouse 24 hours a day without an operator being present.The plant is designed with 2-3 different sized generators in the powerhouse that are efficient in the operating range that they run.The switchgear automatically starts and stops units as it monitors the demands of the community. In response to Board questions,Mr.Noonan said the projects are selected through the use of a database.This database gives a ranking of the conditions of the powerhouses,equipment,etc.in communities throughout the state.The powerplants are designed around a 10 year life cycle but the switchgear will be designed for larger facilities,therefore the building will be able to handle larger equipment. Mr.Noonan said Buckland's load demand is around 400kw.Staff will be looking at between 400- 500kw projections for the future.That community will have approximately four generators.Staff will install load monitoring equipment in the community and will monitor the site one year prior to construction so there will be sufficient load data from the community to tell where the dips are and how long they stay down in those areas in order to size the generator equipment to fit the need. Ms.Fisher-Goad stated that there has not been any state general funds appropriated to the RPSU program since 1998. e Alternative Energy and Energy Efficiency Program Mr.Harper briefed the board as to the Wind program.He said there are approximately 10 wind turbines in Kotzebue and last year they generated about 8%of the load,which produces approximately 1.2kw of power.There is also a wind project in Wales,Alaska that is producing 30% of the load. AEA Board Meeting October 15,2003 Meeting Minutes Page 3 Mr.Crimp briefed the Board stating that meteorological towers need to be in place for approximately one year before enough wind data is received to predict the feasibility of any project. AEEE recently purchased 20 meteorological towers and are beginning a loan program to lend them out to rural communities.Based on the data received,staff would do a concept design and feasibility of wind turbines.The criteria will be a least cost. Chairman Barry said the Energy Task Force will get to wind probably after the railbelt portion is done.But,we will get into the economics of it so you will need to have as much data as you can get,that is real data.That is a big question.People are looking at this electricity generation and some people are not counting the capital investment because it is grant money so they think it doesn't count.We don't have an unlimited source of grant money;we have to start counting it.Mr. Barry asked,"On your basis so far,how does the all end cost of the wind compare to the diesel in Kotzebue?” Mr.Crimp said that was an anomaly in that government money funded the first wind farm in Alaska,but based on the rural energy plan analysis somewhere in the 20 cents per kilowatt hour was bar cost of that power,so it compares favorably with diesel.There appeared to be around 30 communities where the life cycle cost of wind would potentially compare favorably. Chairman Barry said that you are in the low 20 cents and that is amortizing the capital costs? Mr.Crimp said yes over 15 years.There is a lot of assumptions you would need to make for the operation and maintenance costs. In response to board questions,Mr.Crimp said that for short term load fluctuations they have NiCad battery system in Wales,where it is a high penetration system where they are trying to displace a large portion of the diesel.In Kotzebue,where it is a low penetration system it is not enough of a factor to affect the system.You are looking at 10 percent or less of the overall energy is coming from wind in Kotzebue. Chairman Barry said one of the things the Energy Task Force will be looking at will be the cost of distributing electricity in the rural areas.If the coal does get developed,you can look at a much lower cost of generation,but then what is the distribution cost going to be as those villages are not close together. Mr.Crimp said that Alternative Energy program is a catchall for all of the non-diesel projects or efficiency projects. Chairman Barry said that there is an increased awareness of and affection for geothermal as an alternative source. Discussions ensued as to geothermal use in rural Alaska. 8B.NEXT MEETING DATE The board will be polled as to the next meeting date. 9.BOARD COMMENTS There were no Board member comments. 10.ADJOURNMENT AEA Board Meeting October 15,2003 Meeting Minutes Page 4 There being no objection and no further business of the Board,the meeting was adjourned at 11:17 a.m. Ror Miller,Secretary State of Alaska Public Notice Page 1 of 1 Home Go Back Online Public Notice AIDEA and AEA Board of DiroctoreStateofAlaskaOnlineMeeting Submitted by:Brenda Fuglestad/IDEA/DCED Date Submitted:10/07/2003 10:06 AM Date Modified: Ak Admin Journal:[not printed] Attachments:No files attached AIDEA and AEA Board of Directors Meeting Category:Agency Meetings Department:Community &Economic Development Publish Date:10/07/2003 Location:Anchorage Coastal District:N/A Body of Notice: Please note that the Board of Directors of the Alaska Industrial Development and Export Authority and the Alaska Energy Authority will hold a board meeting beginning at 10:00 a.m.on Wednesday,October 15,2003.The board will convene as the Alaska Industrial Development and Export Authority (AIDEA) and continue in session until recess or adjournment.Immediately upon adjournment or recess the board will convene as the Alaska Energy Authority and continue in session until recess or adjournment.An agenda for the meeting is available by contacting the Alaska Industrial Development and Export Authority at (907)269-3008 or by visiting our website at www.aidea.org. This meeting will be conducted by electronic media pursuant to AS 44.88.050(a)and AS 44.62.310 at the following locations: Alaska Industrial Development and Export Authority Boardroom 813 W.Northern Lights Blvd., Anchorage,Alaska. The public is invited to attend.The State of Alaska (AIDEA/AEA)complies with Title II of the Americans with Disabilities Act of 1990.Disabled persons requiring special modifications to participate should contact (907)269-3008 to make arrangements. Revision History: 10/07/2003 10:06:38 AM by Brenda Fuglestad/IDEA/DCED/State/Alaska/US $$WebClient [Anon] Home Page Notices by:Department|Category|Publish Date http://notes3.state.ak.us/pn/pubnotic.nsf/cc52605f7c156e7a8925672a0060a91 b/ffea8c23bf....10/9/2003 Alaska Industrial Development and Export Authority AID a £Rs :ch BP Bek &: Alaska Energy Authority ALASKA ENERGY AUTHORITY BOARD OF DIRECTORS August 8,2003 -11:00 a.m. Anchorage and Juneau,Alaska Teleconference 1.CALL TO ORDER Chairman Barry called the meeting of the Alaska Energy Authority to order on August 8,2003,at 11:00 a.m.A quorum was established. 2.BOARD OF DIRECTORS ROLL CALL Directors present in Anchorage:Mr.Mike Barry (Chairman/Public Member),Commissioner Mike Barton (Department of Transportation and Public Facilities),Mr.John Winther (Public Member), and Commissioner Edgar Blatchford (Department of Community and Economic Development). Directors present in Juneau:Deputy Commissioner Tom Boutin (Designee for Department of Revenue). 3.PUBLIC ROLL CALL Staff present in Anchorage:Ronald W.Miller (Executive Director),James A.McMillan (Deputy Director-Credit),Valorie Walker (Deputy Director-Finance),Brenda J.Fuglestad (Administrative Manager),Sara Fisher-Goad (Financial Analyst),Lynn Kenney (Development Specialist),Mike Harper (Deputy Director-Energy),Chris Mello (Program Manager),and Reuben Loewen (Project Manager). Others attending in Anchorage:Brian Bjorkquist and Mike Mitchell (Department of Law),Mark Foster (Consultant). A.PUBLIC COMMENTS There were no public comments. 5.PRIOR MINUTES -June 30,2003 The June 30,2003 minutes were approved as presented. 6.OLD BUSINESS There was no old business. 813 West Northern Lights Boulevard *Anchorage,Alaska 99503AneINPRBAARNaaeeoDKRRRAPAARAON AEA Board Meeting August 8,2003 Meeting Minutes Page 2 7.NEW BUSINESS Mr.Miller said he emailed the Board members a copy of a Memorandum of Agreement between the Denali Commission,the Alaska Energy Authority and the Regulatory Commission of Alaska regarding Sustainability of Rural Power Systems. Chairman Barry said a meeting took place with the Denali Commission and the purpose of the memorandum is to set in place a process for dealing with the utilities that are failing to meet their obligations under the program.Chairman Barry recommended that the Board support this agreement. MOTION:Commissioner Barton moved to authorize the execution of the Memorandum of Agreement regarding Sustainability of Rural Power Systems between the Alaska Energy Authority,the Denali Commission,and the Regulatory Commission of Alaska. Mr.Winther seconded the motion.There being no discussion,the question was called.A roll call vote was taken and the motion passed with Messrs.Blatchford,Boutin,Barry, Winther,and Barton voting yea. 8A._Director's Status Report of AEA Programs and Projects Mr.Harper briefed the Board as to the draft energy plan that is being circulated to communities around the state for comment. In response to Board questions,Mr.Harper said there is consideration for fuel cells in the rural areas of Alaska;however it is not something that has progressed significantly.He said that staff is waiting to see the results of Chugach Electric's fuel cell project before going forward. Chairman Barry commented that the Federal Administration is facing a national energy policy on fuel cells.He said that it would seem that in a rural area a fuel cell would make more sense than in an urban area where there is lesser costs. e Bulk Fuel Program Mr.Mello gave the Board a brief history of the Bulk Fuel Upgrade Program.He said the program evolved through the oil pollution act of 1990 after which compliance standards were issued.The United States Coast Guard and the Environmental Protection Agency agreed to a moratorium on the enforcement of the compliance standards,as many of the tank farms throughout rural Alaska were out of compliance and the villages lacked the funding to address the problems.During this moratorium,a program was developed to assist rural Alaska in bringing their tank farms into compliance.From this program the Bulk Fuel Upgrade Program came into existence,which provides the financial support needed to construct consolidated,code compliant bulk fuel tank farms. The primary source of funding for the program comes from Denali Commission grants.As such, AEA works in partnership with the Denali Commission to complete the construction of bulk fuel tank farms. Mr.Mello said that staff is currently managing 49 bulk fuel upgrade projects.He directed the Board to their packets for detailed information on the total cost of the completed and scheduled bulk fuel projects. AEA Board Meeting August 8,2003 Meeting Minutes Page 3 in response to Board questions,Mr.Mello said the Buckland project started before business plans were required and has incurred cost overruns. He said there is no minimum size required for a project as long as the community is capable of passing a resolution that is viable.Discussions ensued as to the various sizes of the projects and the Denali Commission's investment criteria. Mr.Harper said that staff is exploring the use of remote monitoring for the tank farms. Discussions ensued with respect to reducing duplication of infrastructure when communities are close in proximity.Mr.Harper said the subject was broached in the community of Manakotak whereby they would be added to the Dillingham grid,but the community of Manakotak vetoed that idea.He said staff would continue to look for ways to consolidate either by road or by grid. Mr.Miller informed the Board that staff is still waiting for the final formation of the Energy Policy Task Force. He said that staff would begin discussions with Mananuska Electric Association (MEA)regarding extension of the transmission services agreement for use of the Tealand-Douglas transmission line until the parallel line is complete.In conjunction,staff will also begin discussions with the other railbelt utilities regarding the Alaska Intertie and problems that have been identified in the existing agreements. Chairman Barry said to advise the utilities that if we do not see progress we will have no choice but to cancel the Intertie Agreement. 8B.NEXT MEETING DATE The board would be polled as to the next board meeting date. 9.BOARD COMMENTS There were no Board member comments. 10.ADJOURNMENT There being no objection and no further business of the Board,the meeting was adjourned atDredun Row Miller,Secretary al dpa"tp se ie pe preceens -|ADDESIAEA_eee |=Ateeka Energy Authority 'PCE Program Alaska EnergyAuthorityRuralEnergyGroup4:Bulk Fuel Upgrade (BFU)Program-Upgrading Bulk Fuel Facilities throughout RRural Alaska:Rural Power System:Upgrade (RPSU)Program: --Upgrading Rural Power Systems throughout FRural Alaska :-Emergency Services"::: 3 -Circuit Rider”ae S :Alternative Energy &Eneray Efficiency (AE&EE)-Cost Reduction/Hydro/Interties/Wind/Biomass 2-Renewable Energy/Heat.Recovery,Projects,-Remote Monitoring and Control..& |Training-AEA Training Program Done ede)'-Workforce Training -; |,AIDEATAEA |Alaska Energy AuthorityRuralEnergyGroup Rural Energy Plan Initiatives aimedat improving Rural Energy Efficiency - and Reliability |AIDEAIAE A:"Rural Energy Group *Rural Power System Upgrade (RPSU)ProgramOctober2003: Pre-2002 2002 -2003 2004 Post 2004 :BhojecttCompleted | a proidetdScheduled 12 '10 SEB) "Balance i Total | Value $5.5 $15.1 $17.2 Rural|Energy Group _Rural PowerSystem Upgrade(RPSU)Program«Project Costss bysVear.2002 Projects |az 5 Project Totalee!Deering $1,120,023 -[Kotlik |Nome > a7 Tuniutuliak See es $5,465,561 $795,000'SL486,305 oe /AIDEAIAEA _Rie"Rural Energy GroupAlnekaEnecgyAuthority oe eee Rural Power System Upgrade (RPSU)Program_ProjectCosts by Year.eeSoDohenyEngdae2003 Projeects.Project Total |Allakaket |$550,000 _|Atmautluak -_$1,802,019 |Golovin (2)RPSU +Distribution $1,678,026+$253,892 __|Kokhanok : $1,285,240 py Kongiganak $2,072,796 Kotlik Waste Heat $123,190 |Koyukuk Distribution -$500,000 | |Kwigillingok $2,359,274 ;|Nunam Iqua $7,559 |Stevens Village $2,179,305 |Tuluksak . $2,050,391 |White Mountain eee Ss $278,000 , ,Total |$15,139,692 Aeatonity Pe e i Se ';' a a aul Se ihn is Mk GEOR Raa aaa Alsska Cnecgy Acthonty ac-RuralEnergy GroupRuralPowerSystemUpgrade(RPSU)Program ::Prolene Costs by.Year | 2004 Projects |a Arctic Village Aes Project Total |Atka Buckland $1,905,532 | ee |Chefornak $1,995,000]- |Chitina -$2,195,000] .:Hughes $1,270,000, Koyukuk Powerhouse $1,495,000] Manokotak |$1,809,346, |Newtok $1,495,246 |.be Nikolski $1,795,000] ee er ee ee $1,540,450 |: $1,695,000} $17,195,574, igi peony Memeo ae ea Tuluksak Rural Power System Upgrade Project_Before and After Pictures: Alaska Wehuerial Development and Export Authority ural Energy Group Rural Power System Upgrade (RPSU)Program ¢Emergency Services -Emergency Restoration Services -FY03 Total Appropriation:$378,337 -18 villages received services ¢Circuit Rider -Small-scale repairs,equipment maintenance tasks and on- site technical assistance -FY03 Total Appropriation:$100,700 :-45 villages received services ' -y OF "RuralaI EnergyGroupAlternativeEnergy&Energy Efficiency (AEEE)Program:»October 2003 | 'The primaryobjeectiveof thediesel efficiency andsalternativeenergyprogram.isto lower the cost of_power and heat to communities while maintaining_Sysiep safety and reliability.Proj ectsseektoincreaseefficiencyofexistingdieselpowerproduction.and end useaswelltodevelop_alternatives.to diesel-'based energy technology.| 4 Alaska Induarial Development and Expari Authority eonencscanneypeADEAAIAEA -Alaska tnemgy Authority LaRural|Energy Group >, | :Alternative Energy &Energy Efficiency(AEEE)Program :ee _October 2003 : Program Category oma No.of Projectstds (©Project Totals. .Biomass ee r _7 .pee powers $470,933 . End Use Efficiency C :3 (30+sites involved).$1,101,200}| .Geothermal a 'Q ol ".'ie 7 ,$75,000 :: |Distribution4Transmission&=Le ee 7 a 2 ae :$16,250,516 | |Wind ||2 (2tsitesinvolved)|=--$520,000] Total]=i (ststi'i'S «dL 867,515,831]- "Rural Energy Group?"Alternative Energy &Energy Efficiency (AEEE)ProgramRenewableEnergy/Heat Recovery Project Examples Fuel -Project Details ee Before After |%Saved y |oe ee (Gal/Yr)|(Gal/Yr)|(Gal/Yr)|Saved » KOTLIK Diesel a (Gal/Yr) _Engine Efficiency _High efficiency generator engines |155,000 |124,000.20%|31,000. Heat Recovery Heat exchangers -'None NA NA”25,000 - ATKA Diesel/Hydro a oe eee |2 i - Powerhouse Replaced with standby module.-_--|.38,5000 |3,000 92%35,000 - School.Excess hydroelectric for heating ©25,000 |10,000 60%|15,000 ; _Fish Processor Excess hydroelectric for processing 8,000 500 92%7,500 oo -plant.at NIKOLSKI Wind/Diesel --ope Powerhouse |High eff.Gen.Engines &Wind |25,000 16,500 34%8.500 - :ES energy maximization controls ©.a a "School Excess wind energy forheating |12,000 |9,000 25%|3,000 - -Comm/Combined Use _|Excess wind energy for heating Z 14,000 10,500 25%,3,500 - :aaPopepFTITREeenapammeneaten:aogoiene es Hentiinreretttes -eo eRE ION Alaska Industrial Development and thovey/AIDEAJAEA = 'Alaska tnecgy Authorty Alternative Energy &Energy Efficiency ProjectsKotlikDieselPowerhouseBeforePicturesofGenerators ee Alternative Energy&Energy Efficiency ProjectsKotlikDieselPowerhouseAfterPictureofGenerators pi ERLE ANS Oa Alternative Energy &Energy Efficiency Projects Kotlik Diesel Powerhouse Before and After Pictures :"Rural+1 Energy Group:Village Energy Systems ,Remote Monitoring and Control : Goal:monitor snd'maximizee the energy©»gefficency of powerhouses &major energy users _Main objectives forcomprehensive powerhouse 4controlsystem:-Monitor fuel efficiency Foicigenerator-Integrate ;a widevariety of energy sources-Integrate monitoring and control of themain energy |users.--Gather,store and provide convenient,web based,user-'iriendly access.to data x RPSU Program Program Status Report The RPSU division of REG is currently managing 28 rural energy system upgrade projects in various stages of design and construction (see attached spreadsheet of village projects)and also provides technical and material assistance to small electric utilities throughout the state by way of emergency power restoration in coordination with the State Division of Emergency Services and through the RPSU Circuit Rider Program. 2003 Projects RPSU is currently managing 13 fully funded construction projects scheduled for completion in 2003.The total cost of these projects is $15,139,692.($13,988,701.Denali Commission, $1,000,000.ICDBG,and $150,991.State of Alaska) 2004/05 Projects RPSU is currently managing 15 power upgrade projects scheduled for completion in 2004 and 2005.The total amount funded at this time for these projects is $10,018,350. ($9,668,350.Denali Commission,and $350,000.ICDBG).RPSU expects to request the balance of funding for these projects from the Denali Commission in 2004.The additional funding required to complete these projects is projected to be $17,000,000. Emergency Services Over the last year,in coordination with the State Division of Emergency Services,RPSU has provided emergency power restoration services in 18 villages.The FY03 State appropriation for electrical emergencies was $378,337. Circuit Rider RPSU also manages the Circuit Rider Program that provides small-scale repairs and equipment maintenance tasks in addition to on-site technical assistance to village utility staff in order to prolong the life of existing equipment,reduce the frequency of emergency power outages,and increase the safety of operations of these small systems.The FY03 State appropriation for the Circuit Rider Program was $100,700. Lenny Landis Oct.'03 RPSU Program Current Project Update -October 2003 Tuluksak -New Powerhouse and Distribution System Upgrade Installation of the generators and start-up testing of the powerhouse has been completed.Operator training and familiarization is in progress.Powerhouse is online and providing power to the community as of August 30,2003 and will be closely monitored for the first two weeks of operation. Stevens Village -New Powerhouse and Distribution System Upgrade The powerhouse foundation and building are complete.Installation of the generators and start-up testing of the powerhouse is projected for this December.Distribution system upgrades have been completed. Koyukuk -Distribution System Upgrade Installation has commenced and is projected to be complete this October. Atmautluak -Distribution System Upgrade The distribution system equipment has been shipped to the village.Installation will commence as soon as the earth freezes allowing heavy equipment to operate on the ground.Installation is projected to be complete March 2004. Golovin -New Powerhouse The powerhouse building and foundation are complete.Procurement for the generations and switchgear are underway.Powerhouse start-up is projected for March 2004. Kongiganak -New Powerhouse and Distribution System Upgrade The powerhouse building and foundation are complete.Procurement for the generations and switchgear are underway.Powerhouse start-up is projected for December 2003. Kwigillingok -New Powerhouse The powerhouse building and foundation are complete.Procurement for the generations and switchgear are underway.Powerhouse start-up is projected for January 2004. Hughes -New Powerhouse The powerhouse building and foundation are complete.Procurement for the generations and switchgear will begin in September.Powerhouse start up is projected for March 2004. Arctic Village-New Powerhouse The powerhouse building and foundation are complete.Procurement for the generations and switchgear will begin in October.Powerhouse start up is projected for April 2004. 1 of2 Kokhanok -New Powerhouse Procurement for the building,generators,and switchgear are underway.Powerhouse start up is projected for December 2003. White Mountain -Distribution System Upgrade Construction is underway.Installation is projected to be complete this December. Conceptual Design Reports CDRs are in the process of being prepared (including site control and geotechnical investigations)for the following villages:Atka,Buckland,Chefornak,Chitina,Crooked Creek,Karluk,Koyukuk,Newtok,Nikolski,Port Heiden,Sleetmute,and Stony River. These reports are scheduled to be completed by this November.The following powerhouses are projected to begin construction in 2004:Atka,Buckland,Chefornak, Chitina (Tie-Line),Koyukuk,Manokotak,Newtok,Nikolski,and Port Heiden. Exceptions: Buckland and Manokotak Powerhouses Construction of these projects has been delayed.They are currently on hold pending review and a decision on a designated Secondary or Primary Operator. L.Landis October 2003 2 of2 RPSU Program Current Budget as|Expended as of Needed toBudgetStatusReportof10/1/03 6/30/03 Complete |Project Total Status PM AE CM 2002 KN AEA AEA Deering RPSU $1,120,023 $1,120,023 $0 $1,120,023 Complete 'KN LCMF STG/AEA Kotlik RPSU $2,064,233 $2,062,782 $0 $2,064,233 Complete KN Nome Nome Nome RPSU $795,000 $795,000 $0 $795,000 Complete KN LCMF STG/AEA Tuntutuliak RPSU $1,486,305 $1,482,728 $0 $1,486,305 Complete Subtotal 2002:$5,465,561 $5,460,533 $0 $5,465,561 (Actual) 2003 KN AE&E CE2 Allakaket RPSU $550,000 $71 $0 $550,000 Construction KN LCMF STG/AEA Atmautluak RPSU $1,802,019 $401,203 $0 $1,802,019 Construction LL LCMF HDL/AEA Golovin (2)RPSU $1,678,026 $429,605 $0 $1,678,026 Construction KN AEA AEA Golovin RPSU,Distribution $253,892 $253,892 $0 $253,892 Complete KN AE&E CE2 Kokhanok RPSU $1,285,240 $221,870 $0 $1,285,240 Construction KN LCMF STG/AEA Kongiganak RPSU $2,072,796 $1,208,155 $0 $2,072,796 Construction KN AE&E AEA Kotlik Waste Heat -$123,190 $122,924 $0 $123,190 Complete KN AEA AEA Koyukuk RPSU-Distribution $500,000 $172,026 $0 $500,000 Construction LL LCMF STG/AEA Kwigillingok RPSU $2,359,274 $1,668,511 $0 $2,359,274 Construction KN AE&E Prec.Pwr.-|Nunam Iqua RPSU $7,559 $7,559 $0 $7,559 Complete KN LCMF STG/AEA Stevens Village RPSU $2,179,305 $1,380,572 $0 $2,179,305 Construction KN LCMF CE2/AEA Tuluksak RPSU $2,050,391 $1,864,394 $0 $2,050,391 Complete KN HDL AEA White Mountain RPSU $278,000 $27,168 $0 $278,000 Construction Subtotal 2003:$15,139,692 $7,757,949 $0 $15,139,692)(Actual) 2004 KN LCMF URS/AEA _{Arctic Village RPSU $1,540,450 $546,169 $0 $1,540,450 Construction LL CRW CE2/AEA Atka RPSU $195,000 $16,778 $1,500,000 $1,695,000 Design LL LCMF STG/AEA Buckland RPSU $1,905,532 $28,144 $0 $1,905,532 Design LL LCMF Cherfornak RPSU $195,000 $35,581 $1,800,000 $1,995,000 Design LL LCMF Chitina RPSU $195,000 $22,381 $2,000,000 $2,195,000 Design KN LCMF CE2/AEA Hughes RPSU $1,270,000 $633,561 $0 $1,270,000 Construction KN HDL URS/AEA Koyukuk RPSU -Powerhouse $1,495,000 $13,186 $0 $1,495,000 Design LL LCMF CCI/AEA Manokotak RPSU $1,809,346 $208,253 $0 $1,809,346 Design LL LCMF STG/AEA Newtok RPSU $745,246 $163,641 $750,000 $1,495,246 Design LL CRW Nikolski RPSU $195,000 $13,735 $1,600,000 $1,795,000 Design Subtotal 2004:$9,545,574 $1,681,428 $7,650,000 $17,195,574)(Projected) 2005 LL HDL Crooked Creek RPSU $70,000 $26,057 $1,600,000 $1,670,000 Design KN CRW Karluk RPSU $70,000 $735 $1,600,000 $1,670,000 Design LL CRW Port Heiden RPSU $195,000 $8,495 $1,600,000 $1,795,000 Design LL HDL Stony River RPSU $63,675 $55,436 $1,800,000 $1,863,675 Design KN HDL Sleetmute RPSU $74,101 $61,479 $3,000,000 $3,074,101 Design Subtotal 2005:$472,776 $152,201 $9,600,000 $10,072,776!(Projected) | L.Landis Sept.03 AEEE Program Program Project Name {Current Budget]Start |Stop {Project Description and Status PM Biomass Biomass $211,877 2001 2004)Funding for various Biomass projects and program support PC Test of performance and air emissions from various blends of fish oil and diesel in a 2.2 mW Fairbanks Morse diesel generator at Unisea Inc.in Biomass Unalaska Fish Oil $259,056 2000 2003)Unalaska.PC Subtotal:$470,933 Akiachak Native Community Pre-Pay Install a pre-paid metering system in the community of Akiachak and replace Diesel Meters and old/burned out transformers located through out the village.Project is on Efficiency Transformers $31,000 2003 2004 schedule PC Prepare feasibility model for existing power transmission on Prince of Wales Island.Project remains on hold.The 5 kV switchgear and automatic control Diesel APC Automated switchboard remain in Seattle.A Bill of Materials for completion of the Efficiency Controls $500,000 2002 2004|switchgear has been developed and awaits release from purchasing.RG A 2.9 mile extension of underground and above ground electrical distribution from the existing Skagway system to serve about 20 new residential customers in the Dyea Valley.Project remains on hoid.Receipt of electrical Diesel APC Skagway Line transformer as per engineering specifications.Year-end project accounting Efficiency Extension $444,540 2002;2004 has been completed along with minor engineering.RG Develop 35%design and engineering;develop a materials list and logistics; obtain necessary permits:and,construct a hydroelectric project near Atka. Diesel Atka Hydroelectric The 271 kilowatt facility would be located on Chuniisax Creek at an elevation Efficiency Design $700,000}2001 2003 of about 175 feet.This project has been turned over to RPSU.PC Installation of efficient diesel generators in the communities of Emmonak, Hooper Bay,Mountain Village,Togiak and Nunapitchuk.Generator sets Diesel AVEC Diesel received and tested.Vendor needs to complete some modifications to Efficiency Efficiency $600,003 2002 2004 respond to load changes.RG Installation of automated controls and switchgear in Selawik and Saint Mary's. Diesel Switchgear is installed in Selawik.Awaiting final commissioning.St Mary's Efficiency AVEC Switchgear $900,000 2002 2004 will be shipped from Anchorage,shortly.RG Purchase and installation of fully automated switchgear and consolidation of school district and village power generation facilities to create one facility with Diesel Chignik Lake Diesel greater efficiency and production capacity.Switchgear has been ordered and Efficiency Efficiency $201,910 2003 2004/will arrive in October.RG Diesel [Efficiency Cost Reduction RFP |$177,854 2003 2004 Funds for the bi-annual Cost Reduction Solicitation.Next solicitation fall 2003 j|PC Prepared by Rebecca Garrett 10/8/2003 Page 1 Project Description and StatusProgramProjectName|Current Budget}Start |Stop PM Diesel {Data Collection and installation of meters in various communities to determine load and other Efficiency Monitoring $520,000 2003 2005)factors.PC Purchase and installation of an efficient diesel generation system with Diesel False Pass Diesel automated switch gear and a heat recovery system.New generator to be Efficiency |Efficiency $346,900 2003 2004|shipped in October.PC Diesel Fuel Cell Efficiency ||Demonstration $25,000 2003 2005 Install a fuel cell at Exit Glacier in Seward.DL Diesel Galena Diesel Purchase and installation of an efficient diesel generation system with Efficiency Efficiency $350,000 2003 2004/automated switch gear and a heat recovery system.RG Nome Diesel Diesel Efficiency Construct a new powerhouse outside of the flood plain and install new Efficiency Enhancement $6,251,000 2001 2004|generation.Project is moving forward,more funding is being sought.RG Install a 4mW diesel powerplant and interconnect to grantee's existing system. Project includes,enclosure,remote cooling,SCADA system, Diesel controller/governor,and new switchgear.Project is complete pending receipt Efficiency Sitka Diesel $5,992,500 1999 2004 of final report.RG Purchase and installation of a heat recovery system to service community Diesel White Mountain Heat buildings in close proximity.Community is working on hiring a project Efficiency Recovery $101,369 2003 2004/manager RG Subtotal:$17,142,076 This program supports the Alaska Energy Authority's statewide energy Diesel/End efficiency and conservation efforts,including the Statewide Energy Program Use State Energy (SEP)and Rebuild America Program.Projects are on hold. Efficiency Program $229,200 2003 2004 RG Energy system audits in 15 PCE communities.Auditors look at generation efficiency opportunities as well as large buildings in the community and report on low cost/no cost ways to save energy.While in the community,auditors End Use Rebuild America provide training for maintenance people and community education seminars. Efficiency Program $150,000 2003 2005;AEA will receive funding 10/03.RG Evaluate and install end use efficiency measures in community buildings. Residential upgrades will be offered pending a cost match by homeowner. End Use Village End Use Phase |is almost complete,Phase I!(implementation)will begin in about 6EfficiencyEfficiencyMeasures$722,000 2003 2004|weeks.RG Subtotal:$1,101,200 Evaluation and project development.Identification of potential geothermal Geothermal |Geothermal $75,000 2002 2004'projects around the state.A site in Akutan may develop into a project.BS Subtotal:$75,000 Prepared by Rebecca Garrett 10/8/2003 Program Project Name |Current Budget]Start |Stop |Project Description and Status PM Design and construction of a 2 mW run-of-river hydroelectric project and construction of a power house near the mouth of South Fork Creek.Project APC Southfork remains on hold.Minor engineering work was performed and permitting Hydro Hydroelectric Project |$3,582,800 2002 2003)teleconference was held.PC Design and construct a hydroelectric generating facility for Cordova Electric Cooperative located on Power Creek approximately 6 miles northeast of Cordova Power Creek Cordova.The facility will consist of:1.a diversion dam and intake structure;2. Hydro Hydroelectric Project |$22,108,000 1997 2003;tunnel and pipeline power.Project is in its commissioning phase.PC Falls Creek Design and licensing study of a 800 kW run-of-river hydro in Falls Creek by Hydro Hydroelectric Project |$4,000,000 2003 2005|Gustavus.Project has not been awarded yet.PC Unalaska Pyramid Creek Hydroelectric Initiate permitting and engineering activities for the proposed Pyramid Creek Hydro Project $2,227,000 Hydroelectric Project near Unalaska;authorize construction of the project.PC Subtotal:$31,917,800 Lime Village Upgrade of photovoltaic/battery/diesel hybrid system.Design,installation and Solar Electrification $38,306 2001 2005)performance evaluation of primary hybrid power system.PC Subtotal:$38,306 Trans &Preliminary engineering and permitting for intertie from Bethel to Crooked Distribution [Donlin Creek $1,500,000 2003 2005/Creek.RFP may be released in early 2004 for engineering.KR Construct 14.5 miles of single phase distribution line along the Parks Highway Electrical Distribution to serve residents and business in the area of Ester to Mile 320.The Trans &Line Extension distribution lines shall parallel the road system with deviations or taps to serve Distribution {Project (GVEA)$872,000 2002 2006,consumers off of the road system RG Trans &Electrical Prepare feasibility model for existing power transmission on Prince of Wales Distribution {Transmission Plan $10,000 2003 2005|Island.PC Trans &Parks Highway LE 27 miles of single phase distribution from Mercer's Corner to Rex Bridge,and Distribution |Rex Bridge $2,103,851 2003 2005)8 miles of single phase distribution taps.RG Trans &Parks Highway Line Extend 14.4 kV single phase line from Parks Highway to Deshka Landing, Distribution |Extension (MEA)$451,665 2003 2005/Vera Lake,and Talkeetna River Subdivision.Project is on going.RG Trans &Port Mackinzie Gas Feasibility study for a gas line to the port.Grant is passed through to Mat-Su Distribution {Line $250,000 2003 2005)Borough and will release a RFP shortly.KR Design and construct a 34.5 kV transmission line connecting the communities Prince of Wales of Thorne Bay and Kasaan to Alaska Power and Telephone's (AP&T)existing Trans &Island Electrical grid that includes Craig,Klawock,and the Black Bear Lake hydroelectric Distribution |Intertie $11,063,000;1997 2004|project.Project is on schedule.RG Subtotal:$16,250,516, Prepared by Rebecca Garrett 10/8/2003 Program Project Name |Current Budget}Start |Stop {Project Description and Status PM Wind AEDTL Wind Tower $80,000 2002 2013,Funding is from AEDTL.PC Wind resource assessment activities are on-going.A wind project development agreement has been made with the city of Nome to monitor three Statewide Wind sites and determine the feasibility of incorporating wind into a proposed new Wind Energy Projects $440,000 2001 2004 powerplant.Wind testing sites are being installed in Bristol Bay region 10/03.|PC Subtotal:$520,000 TOTAL $67,515,831.00 Prepared by Rebecca Garrett 10/8/2003 Page 4 RPSU Draft Diesel Fuel Displacement --Renewable Energy/Heat Recovery Projects (Projected) Project Details Before After %Saved Fuel Saved (Gal/Yr)(Gal/Yr)(Gal/Yr)(Gal/Yr) Kotlik Diesel Powerhouse Engine Efficiency |New powerhouse with high efficiency generator 155,000 124,000 20%31,000 engines Heat Recovery |Heat exchangers in power plant,water plant,None NA NA 25,000 washeteria,community hall,and utility shop Total:56,000 Atka Diesel/Hydro Project Powerhouse |Replaced with standby module 38,500 3,000 92%35,000 School |Surplus hydroelectric for heating 25,000 10,000 60%15,000 Fish Processor |Surplus hydroelectric for processing plant 8,000 500 92%7,500 Total:57,500 Nikolski Wind/Diesel Project Powerhouse |New powerhouse with high efficiency engines and 25000 16,500 34%8,500 controls to maximize wind energy utilization School |Surplus wind energy for heating 12,000 9,000 25%3,000 Community/Combined Use |Surplus wind energy for heating 14000 10,500 25%3,500 Facility Total:16,000 L.Landis Oct.'03 RPSU Program Village Energy Systems --Remote Monitoring and Control The RPSU program has been investigating various remote monitoring,data acquisition and control equipment for use in our powerhouse switchgear for over a year now.We have identified one system that incorporates a comprehensive package of monitoring, remote control,multiple energy source/energy user integration and data logging with a user-friendly web based interface.We approached the Denali Commission to fund the additional cost for this equipment in several new powerhouses currently under construction.The Commission suggested that we identify at least three different manufacturers and implement demonstration projects in three powerhouse projects for comparison before we standardize with a sole-source equipment vendor. To that end,we have received proposals from two vendors and are seeking a proposal from a third.At present,we have identified the Tuluksak and Golovin powerhouse projects as suitable for this kind of demonstration.We are in the process of soliciting proposals and identifying a third powerhouse demonstration project. We intend to implement the remote monitoring system in Tuluksak before the end of this year.The Golovin project should be on line by early spring,as will the third,as of yet, unidentified village. In this regard,the goal of the RPSU program is to be able to monitor and maximize the energy efficiency of the powerhouses and major energy users in the village. The main objectives for a comprehensive powerhouse control system are as follows: e Monitor fuel efficiency of each generator in order to select the most efficient combination of generators and assure the equipment is being maintained in peak operating condition. e Integrate a wide variety of energy sources (Diesel,Wind,Hydro,Stored Energy, etc.)with the village power system in order to maximize utilization of the lowest-costenergymixavailableatanytime. e Integrate monitoring and control of the main energy users in the village in order to maximize the use of low cost and renewable energy sources (waste heat recovery, excess wind or hydro capacity). e Gather,store,and provide convenient,web based,user-friendly access to data in order to allow comprehensive energy trending and flexible report generation for multiple-agency use. L.Landis October 2003