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HomeMy WebLinkAboutAEA Board Meeting April 10 2008Ww xr ra"IDEN /[EALASKA Alaska Industrial Development and Expert Authority AGENDA Alaska Energy Authority Board of Directors Thursday,April 10,2008 10:30am Anchorage,Alaska 1.CALL TO ORDER 2.BOARD OF DIRECTORS ROLL CALL 3.PUBLIC ROLL CALL 4.PUBLIC COMMENTS 5.PRIOR MINUTES e AEA Board Meeting,February 14,2008 e Joint AIDEA and AEA Continuation of February 14,2008 Board Meeting,February 18,2008 6.OLD BUSINESS 7.NEW BUSINESS A.AEA Resolution No.2008-03,Appointment of AEA Executive Director 8.DIRECTOR COMMENTS A.Director's Status Report e AEA Programs Update e AEA Projects Update B.Next meeting date 9.BOARD COMMENTS 10.ADJOURNMENT 813 West Northern Lights Boulevard e Anchorage,Alaska 99503-2495 www.aidea.org e 907/771-3000 «FAX 907/771-3044 e Toll Free (Alaska Only)888/300-8534 e www.akenergyauthority.org wtWt"aD IEN /=ALASKA ; qa)ENERGY AUTHORITYFEACtndportasthortyPe MINUTES ALASKA ENERGY AUTHORITY Board of Directors Thursday,April 10,2008 10:30am Anchorage,Alaska 1.CALL TO ORDER Chairman John Kelsey called the meeting of the Alaska Industrial Development and Authority to order on April 10,2008 at 10:30am.A quorum was established. 2.BOARD OF DIRECTORS ROLL CALL Members present in Anchorage:Chairman John Kelsey (Public Member);Deputy Commissioner Brian Andrews (Designee for Department of Revenue);Emil Notti (Department of Commerce,Community and Economic Development). Vice Chair John Winther (Public Member)joined the meeting at 10:47am. Participating by Teleconference:Commissioner Leo von Scheben (Department of Transportation and Public Facilities);and Commissioner Patrick Galvin (Department of Revenue). 3.PUBLIC ROLL CALL Staff Present in Anchorage:Sara Fisher-Goad (Acting Executive Director);Chris Anderson (Deputy Director-Credit);Mike Harper (Deputy Director-Rural Energy);James Hemsath (Deputy Director-Development);Valorie Walker (Deputy Director-Finance);Chris Mello (Program Manager);Karsten Rodvik (Program Manager-External Affairs);Chris Rutz (Procurement Manager);Mark Schimscheimer (Project Manager);Jim Strandberg (Project Manager);Brenda Fuglestad (Administrative Manager);and Sherrie M.Siverson (Administrative Assistant). Others Present:Brian Bjorkquist and Mike Mitchell (Department of Law);Eric Lidji (Petroleum News);Steve Pratt (Contractor,APA &ANGDA Consultant);Greta Goto (Co-Man Services);Paul D.Kendall (Public);Christine Vecchio (MEA Ratepayers Alliance). Participating by Teleconference:Steve Haagenson (AEA Executive Director);Herb Hoyt (Public). 4.PUBLIC COMMENTS Verbatim Christine Vecchio:|am with the MEA Ratepayers Alliance in the Matanuska-Susitna Borough. Our organization would like to say that we are very pleased with the direction we see the Alaska Energy Authority going in the sense that it has become,|would say for want of better words,an agency unto itself.That may not be the case,|don't know the details,but |think having an 813 West Northern Lights Boulevard *Anchorage,Alaska 99503-2495www.aidea.org *907/771-3000 *FAX 907/771-3044 ®Toll Free (Alaska Only)888/300-8534 ©www.akenergyauthority.org AEA Board Meeting April 10,2008 Meeting Minutes Page 2 Executive Director apart from AIDEA says something about the importance of the issues that we are facing today in Alaska,especially with energy and climate change. Our organization would like to offer our appreciation for the work being done (1)with the REGA Study and (2)for having an Executive Director,such as Mr.Haagenson.Mr.Haagenson has worked with the Interior Issues Council and he knows what it's like to work with divergent opinions and come to some comprehensive vision and implementation of needs of a community.The energy issue facing Alaska now is very critical and a lot of people |know are very concerned,but we also see it as an opportunity to bring in all the different parts of Alaska together.|think that's what it's going to take to come up with an energy policy which |know AEA will be working on that's going to address not only our present energy needs,but from my background it will take care and address the needs of at least seven generations into the future. We would like to offer ourselves,as members of the community,anything we can do to contribute to the process to come up with a comprehensive energy policy.We continue to participate in the REGA Study which |think has set,for us,a precedent of what it is to have public input,ongoing educating as many parts of the community as possible and come up with something that is viable and will be implemented.We thank you for the work that is being done. We offer ourselves,for however we can,for the work ahead.Thank you. Mr.Kendall:Well,gosh you took me by surprise.|usually like to wait and see what unfolds and look at the larger picture before |comment.But |will seize the opportunity,assuming it is alimitedone.Which seems to be what our society represents today,that we have a lot of wonderful people who truly exude a degree of confidence and capability and public trust,but they seem to be holding meetings of which seem to be an inside loop and just as this meeting here is today,|can feel the competence and the capabilities,but what |really miss and |do feel as those 600,000 plus other Alaskans out there,somehow we have to begin to open up the communications.|think it is the greatest wealth that we have is the multitudes that are out there and that you people have been chosen to represent the tipping point of the future.!think that you're missing that and you missed it because,not because you are bad or ill-willed,but simply because nobody's really unfolded you to realize that along with the new age of energy is a new age of communications.We need an Alaska channel to be able to film this and put it on video and send it out to other people as just an instantaneous moment.Here are some emails that |have presented to your distinguished Executive Director Mr.Haagenson and Mr.Harper. My name is Paul D.Kendall.|ama citizen here.My family goes back to Fairbanks in the early 60's |believe it is.Since |was a child |used to hear about Alaska.When|first came up to Fairbanks my family lived in University West.My children went to Woodview Elementary and you know there's an old saying that once Alaska gets in your heart you never forget her.So I've come and gone,but while |was outside |was a bit of an energy activist and a political activist. My family had 14 corporations and |am an entrepreneur.In the meantime,the exposed energy and the volatility and the emotionalism and all those things that are involved in it and some very very tough battles |have now,|bring to the table conclusions,and |think there is something very very very special here in Alaska.|think that you folks are on some type of a cusp,a junction,an intersection,that portends of the next great society and what |mean by that is,let me,it's so hard because energy is such a large subject |just get overwhelmed with wanting to talk about it all,but |realize you are not here to listen to me you are here to conduct business and |assure you |respect that. AEA Board Meeting April 10,2008 Meeting Minutes Page 3 |happen to think that the next great society is not going to come from a Messiah or from some intervention from outside or some cataclysmic event.|think the next societies will be energy- based societies.Those societies that understand who owns the energy,who generates it,how you distribute it and transmit it and the priorities of where that goes.Those societies will be the ones who will simply rock,they will rule,they will have their own territories,they will be all unto themselves.The generations who follow after them will be the ones who will benefit in multitudes.The reason |bring this up is that when |look at Alaska,everybody is looking at the gas pipeline.Now |grant you,|understand that the importance of billions of dollars of recurring revenue and the offshoots of that and the dollar circulation.Take me not to be too big of a fool, okay?|understand the importance of that.|think our Governor is shackled by the ankles to that pipeline.But what |see is something much bigger and |not only see a gasline by Conoco Phillips,|see an Alaska pipeline,|see a China pipeline.That China connection is just huge,if you begin to weigh the potentials of trillions of dollars and the offshoots of that project.|also see a rail line,a water line,a hydrogen line,gosh |see an intertie grid connection line,and |see multiple energy projects.There is a future to hold in Alaska that goes equally in comparison to that gas pipeline.If you turn internally and look at your hydroelectric and your wave and your tidal and your current,your geothermal,your coal water,and |brought you a whole bunch of pictures of some of that stuff that |hope you find interesting.If you turn to that,as well as hydrogen,you will find,ladies and gentlemen,if you anchor the energy to your people and your society,you will be much much more than just those pipelines coming down out of there.So the scale and the scope of this are just enormous,just enormous.And whenever I|say an energy,a society of energy,I'm talking about having a little old guy walk in the door and he goes well,you ask him what he does and he says well,|been holding these three generators and they ain't come on for ten years.Now that's magnificent because that society tomorrow will have a multitude of energy.You'll be able to switch on a switch.I want to see ten times whatever the energy need is that you need and the reason is this.When you begin to look at energy's implications to the stability of a society,to the revenue generation and to the new future,it is just incredible.If you put in a generation plant tomorrow and that,and you could actually debt service that thing out,you could simply pay it off quite frankly,the only charge would be your maintenance,distribution and replacement down the road.But if you put a house on electricity,that home will not only stabilize,you could do it for zero,for zero,because the displacement of the natural gas to go into the market to generate new revenue will generate you hoards of revenue.And that energy application goes on to multiply itself.It's just unbelievable in the sectors that it begins to unfold. So,for you people who are located in Alaska in an isolated terrain,a challenging terrain,whose mothers and fathers and relatives came here in a sense of freedom and sacrifice and believe me they did from the time |was a child out here.My uncle was talking about the sacrifices up here and all those challenges.It seems to me that your time has come.The fruition is just abundance after abundance and on my first day my first concern was that |just didn't see the leadership.I'm still concerned about some of the leadership,not that they're evil and ill-willed but they just seem to be lacking in being able to be unfolded.Your Juneau connection ladies and gentlemen |have concluded is the most deleterious of all of these things that would hold you back.The implications of a detached government that is absentee from its people are just huge.[run into that.I've been trying to sample the participation and it's a very subtle thing,but |think the people of Juneau are willing to let go and uncaptivate (sic)our leaders and let us get on with a bright future and having said that let me wrap up here. AEA Board Meeting April 10,2008 Meeting Minutes Page 4 You are being too kind to me and |sense that.What you'll notice in here is a whole series of things |hope will invoke thought and demand thought and |stand upon my words and my positions and I'm not afraid to hold myself accountable as either a fool or a folly or unknowing, whatever.But you'll notice in here some things that concern me,like funding for Linea,PCE, and weatherization.Those are the most foolish things |have seen capital expenditures on since |was a young man.When you look at those expenditures they bring you very very little,if anything.You need to recapture those,capitalize those,activate your people and go out and initiate some energy projects and bring these people all up.But in addition to that,you'll see things that are very interesting..British Petroleum has an agreement in here with GE to manufacture,to produce up to 15 hydrogen power plants,500 megawatt power plants,over the next decade.They are bringing online Carson,California to tie into waste water,which is fascinating,one in Australia and supposed to have one under way in Iceland.But it goes on. They have fueling,hydrogen fueling restations (sic)in Beijing,some other places,Michigan, Florida,Illinois,California.They're also now moving in heavily to the wind.And this is just one oil company.And another thing that |see is they're moving into universities.This is now,there are some things that are afoot in the land and the reason that |bring these up to you is this. And |see young ladies,conclusion here,wanting me to wind down here,and |would love an audience sometime to be just disassembled to be briefed,not that |am the same caliber of these folks,but I've been out in the fields fighting battles and may bring some various perspectives too. What |would suggest to you is this;you need to put somebody in charge of communications. Your future holds something very magnificent,just huge.But as it unfolds in some cascading manner,some expotential (sic)manner,the key to it is going to be able to communicate.You cannot teach people by having to repeat something over and over again;it just spends your energy.The other thing,so communication is very important.The other thing is you need tohaveanenergysummitrightnow,before June the 3%.You need to flush out everybody out there,all sectors and see who's playing,who's not,who's using how much and you need to get a sense of the scope and the scale of exactly what Alaska's needs are.Do not let that gas pipeline lead you off focus,which is your people and the stability of your economy and its bright future.|thank you again for the longevity and the ongoing hyperbole here and all that stuff.I'll leave this with you and hope you'll find it interesting. Mr.Herb Hoyt:Good morning.!wanted to speak with you very briefly about the proposed Point Baker bulk fuel upgrade.|would like to give you a real brief thumbnail sketch of where we are and what we do.The Point Baker Trading Post is the occupant/operant for the bulk fuel upgrade and we are located at the Northwest tip of Prince of Wales Island.This business was established in 1936 and has continually operated as a remote service center for work and pleasure boaters of southern Southeast.It is located somewhat centrally between Juneau, Sitka,Craig,Klawock,Ketchikan,Wrangell and Petersburg.There is lots of salmon here.I've seen as many as 240 gillnetters working Sumner Strait east and 209 trollers to the west,a lot ofboats.Judy and |are now in our 22™year of operating the trading post and in addition to the vessel fleets,we provide essentials to Point Baker and to Port Protection residents and visitors. We provide fuel to the community building and the floating post office,the only floating US Post Office in the system.We generate electric power 24/7 serving all of the above,as well as AT&T long distance and ACS local telephone utilities.The reason for the request for a bulk fuel upgrade is that our existing fuel tanks are 40-60 years old.They are all single walled,connected by threaded steel piping and they are founded on creosote timber cribbing with no provision for AEA Board Meeting April 10,2008 Meeting Minutes Page 5 containment in the event of a failure.If a spill of any notable volume occurred,the waters at Point Baker,Port Protection,and both arms of Sumner Strait would be affected. In 1998,a team from AEA conducted on-site evaluations and concluded that this facility must be upgraded.They rated it near the top in terms of damage potential in the state.Over time,the appropriate engineering evaluations,economic studies,regulatory reviews,permitting and construction plans and specifications were completed and the plans were released for construction in December 2005.Unfortunately,there were some unanswered concerns about the role the Point Baker community council would fill and what,if any,its liability might be. These concerns have now been resolved. The Council is acutely aware that our area economy,given the demise of the timber industry,is totally dependent on commercial and pleasure boaters and recreational tourism.Scores of boats work this area and with the spiraling cost of fuel,they no longer want to run into the towns between openings.They prefer to spend a little more per gallon here for fuel than to burn upseveralhundreddollarsworthrunningbackandforth.Over the past decade,the appearance of modest to mid-size pleasure vessels has trended noticeably upward and we find that they also don't want to run from their planned courses for fuel.In just the past five years,seven new lodging facilities have come on-line here.With a total capacity near a hundred souls,the need for fuel at Point Baker continues to grow and its availability depends on the bulk fuel upgrade. The expanded capacity of the upgrade will further enhance growth potential of our community and will likely provide some economy of scale and fuel costs.The plans are complete and in hand.On the ground we have pioneered access from the beach head to the tank farm location and we have removed the overburden from the site.It's ready for drilling and blasting,site grading and erection of the tanks,piping and controls.We ask for your assistance in bringing this project to fruition.Thank you for the opportunity to provide input and I'll do my best to field any questions you may have. End Verbatim Commissioner von Scheben asked about the project cost.Mr.Hoyt replied that the estimate was approximately $860,000 dollars including the design engineering and the construction. Ms.Fisher-Goad stated that Mike Harper (Deputy Director-Rural Energy)and Chris Mello (Program Manager)were present to answer questions with respect to the Point Baker project. Mr.Harper thanked the Board for the opportunity to discuss Point Baker.AEA has been working with Point Baker,but working with Denali Commission funds AEA has to abide by their rules and regulations.AEA had questions and concerns,and it has taken some time to resolve those.In the past six months,AEA feels more comfortable and has sufficient information to move forward with the project. Mr.Winther stated that he visits Point Baker several times each summer and has seen it grow in the past 15 years.He queried Mr.Harper and Mr.Mello about other funding sources available, and what kind of time schedule they were looking at. Mr.Harper stated that AEA uses Denali Commission funding of $10-20 million dollars for the bulk fuel project every year.This is trending down and AEA may be short funds in the future. AEA Board Meeting April 10,2008 Meeting Minutes Page 6 Throughout the years other funding possibilities have been looked at including federal funds. AEA has utilized a Department of Housing and Urban Development program,which is currently funding a $3 million dollar project in the Naknek-Bethel area.Mr.Mello is working with TAPL funds and AEA has been developing a new funding scheme that might be the source of project funds for this program. Mr.Mello added that construction may begin in the summer of 2009 pending resolution of other issues.The Denali Commission has a private enterprise policy and can't put people into business or take other people out of business who can compete.There is some competition between Port Protection and Point Baker,but that is expected to be resolved.AEA is in the design phase in Point Baker and questions about the relationship of a private entity and the public still needs to be sorted out.In response to Mr.Winther,Mr.Mello stated that a cost of $860,000 is low and is now estimated to be $1.5 million. Construction costs have been going up about 1%a month.There are also other challenges to be addressed.Fuel delivery companies are not inclined to lighter into those communities as easily as in the past.This needs to be addressed to see what potential is there.There are other communities in the area that are not getting fuel delivered because it is no longer cost effective for the suppliers and this needs to be taken into consideration.This region needs a reliable code-compliant fuel supply and Point Baker looks like the most logical place to put ina facility. Deputy Commissioner Andrews asked if there was a possibility of doing a bridge-loan while waiting for Denali Commission funding. Mr.Mello stated that finding matching funds or local investments in a project is always an encouraging factor.Local investment is always a positive factor and helps move a project forward.He stated that this isn't a difficult project.It's a very small facility that is Coast Guard code compliant. Commissioner von Scheben asked if money is an issue,can there be some kind of 50/50 split. Are there other ways of creative financing so Point Baker can move forward and come up with some of their own money?Mr.Mello stated he will confer with Deputy Commissioner Andrews and call Mr.Hoyt to discuss some of the possibilities. Mr.Steve Pratt,Contractor,APA &ANGDA Consultant.ANGDA will complete the last of the open season educational forum series on April 30".They are ahead of schedule on pipeline work and plan to take the summer off.He recently contracted with the Alaska Power Association to work on interfacing with organizations such as AEA,on the Alaska Energy Plan. Electric utilities in the state are trying to gain an understanding of just what a statewide energy plan is,and what do the utilities want.He will assist them to put it into some kind of framework and is really excited to see the AEA Executive Director take on the task of working towards a statewide energy plan.It's something that other folks have mentioned and is a critical need, especially in rural communities.He said he is here to learn,listen,and is anxious to do whatever he can to interface with Mr.Haagenson and provide support and help to make this work.Mr.Haagenson has an aggressive schedule to accomplish something by the end of year. AEA Board Meeting .April 10,2008 Meeting Minutes Page 7 Mr.Kendall asked to comment on the agenda.A lot of these meetings that we have now,once you conclude the public testimony,there really is no participation and rather than raise a hand or distract like that,|just wanted to make sure,because if there is,|happen to think that at the end of these meetings you should perhaps,adjourn,but then in some informal sense,make yourself available to the public for the interaction.What |was looking for was if there was an opportunity that |would hold my questions properly until that time,but if there is not,|don't want to be raising my hand or looking eager to ask a question.Mr.Kendall said he understood that they were here to conduct business,but because you meet so seldom,there's no means of dissemination and leaves him without a chance to participate before adjournment. Mr.Kelsey stated that the Board members were available and would be glad to talk to him and added that AIDEA and AEA have a capable staff. 5.MINUTES -February 14,2008;and Joint AIDEA and AEA Continuation of February 14, 2008 Board Meeting,February 18,2008 The minutes were approved as presented. 6.OLD BUSINESS There was no old business. 7.NEW BUSINESS 7A.AEA Resolution No.2008-03,Appointment of AEA Executive Director Mr.Bjorkquist provided an overview of AEA Resolution No.2008-03 for the appointment of Steve Haagenson as the AEA Executive Director.The process of appointing and hiring Steve Haagenson as AEA Executive Director is a two-step process because the Alaska Energy Authority does not hire its own employees.AIDEA has employees who serve the needs and functions of the Alaska Energy Authority.Under the bylaws of AIDEA,there is a two-step process for the hiring of the AEA Executive Director.One provision of the bylaw is not included in this appointment and that is that the bylaw also provides that the AEA Board and AIDEA Board can jointly designate certain employees who would fall under the supervision of the AEA Executive Director.After the AIDEA Board appoints an Executive Director,the two Executive Directors will get together and deal with designating certain employees to be supervised by the AEA Executive Director versus the AIDEA Executive Director.This is one component that will be dealt with in the future.This Resolution fulfills all of the Alaska Energy Authority Board requirements for the appointment.This Board designates who is going to be appointed Executive Director.This Board makes a determination that the appointment of an Executive Director is necessary for performing Alaska Energy Authority functions.This Board determines compensation.There is also a need for a contract between AEA and AIDEA to deal with cost reimbursement for everything under the contract.The Board has already done many of the things identified here:it has selected an Executive Director,determined compensation,and determined that the appointment is necessary to perform AEA functions.This Resolution ratifies what has been done in the past with respect to that.It authorizes the Executive Director of AEA to meet with the Executive Director of AIDEA and work out that contract relationship. AEA Board Meeting April 10,2008 Meeting Minutes Page 8 Under Section 4,Sara Fisher-Goad,who has been the Acting Executive Director for the Alaska Energy Authority,will return to her role as a Deputy Director and Assistant Secretary of Alaska Energy Authority.Sections 5 and 6 delegate to the Executive Director signing authority over contracts and also allow the Executive Director to further designate other employees to sign contracts under Section 5.Under Section 6,it authorizes the AEA Executive Director to designate other officers of AEA to act in his place if he is absent.The appointment of Steve Haagenson as Executive Director was effective March 10,2008.Section 7 ratifies all the actions that have been taken both by Steve and Sara,over the last month.They have been working cooperatively together over the past month with one performing certain functions as opposed to the other.So that there won't be a gap in authority or questions of authority,Section 7 is intended to ratify everything that both of them have done over the past month. MOTION:Commissioner Galvin moved to approve Resolution No.2008-03.Seconded byCommissionerNotti.There being no discussion,the question was called.A roll call vote was taken and the motion passed unanimously. 8.DIRECTOR'S COMMENTS Mr.Haagenson reviewed the energy plan presentation stating AEA's goal and mission is to reduce the cost of energy in Alaska and we need to do it rapidly.Project results,even though it sounds simple,is actually quite a mouthful and we will try to make that happen as soon as we can.The guiding principles speak for themselves.One buzzword in there is "infrastructure.” The first one actually replacing like diesel fuel,something that is equivalent to diesel fuel;you can use it in your existing infrastructure.The Global Exergy of the world chart shows all the energy in the world.It is a chart that shows where each type of energy comes in:solar, gravitational,wind,and nuclear power.It is a palette that you can pick all of the energy in the world from and as you look in a community,you can go out there and pick the pieces that youmayhaveavailable.The graph shows a long list of communities we plan to visit.Mr.Harper has been working with his team and has reduced the number from 31 to 25.The process of current fuel usage is coming together really well.There are some estimates and PCE data used for estimating that number.Mr.Haagenson said he was at a convention in Reno and bumped into a woman he knows who operates TOTE.He asked her about fuel deliveries to rural Alaska and she said they are a parent company to Delta Yukon and Crowley.She and Steve plan to have a meeting next week to discuss quantities of fuel to be delivered where it is needed.It is estimated that 39-54M gallons of fuel a year is needed for western Alaska alone. Selawik Energy Flow Model information was extracted from the Nana and Regional Plan and said they should get a gold star because they did a great job on it.It is a template to show how we can present the energy use and the costs by sector to figure out energy needs and costs. Technology evaluation basically goes through high level costing,so you understand what the delivery power would cost.Potential technology and fuels is where we get into hydroelectric such as Susitna,Chakachamna,kinetic,hydro.We'll look at wind,both small,large and also maybe a very large turbine.Biomass would include willows,large trees and also creation of power by biomass.The Nome Study is looking at Pilgrim Hot Springs under geothermal which is interesting and could help them a lot.We are looking at bullet lines on natural gas.One option is to put a bullet line out to Donlin Mine in the YK Delta,possibly all the way out to Bethel. This will be evaluated as well as L&G Trucking,gas-to-liquids from natural gas;the ANGDA proposal,a pilot program for propane in the Tanana region;and biogenic gas from peat in the AEA Board Meeting April 10,2008 Meeting Minutes Page 9 Hooper Bay area.We plan to visit the regions and ask them what they know about the region and what resources are available locally.The financial model is a mix of the perfect energy plan and we are using the template to show how to select the least cost options and what they would cost on a fair comparison basis.The option selection is matching the appropriate type of technology to the least cost option.This shouldn't take very long once the template is done.In rapid deployment,we will define new and existing local companies that can provide services. Congress just approved a tax credit extension until the end of 2009 of 1.6 cents per kilowatt hour and also established $1.2B dollars of renewable energy bonds,called credits.The official title is clean renewable energy bonds.We need to see if those are going to be available at low cost and can have access to part.The media can have access to part so we'll see if we can use that as part of our deployment and financing institutions part.Just published on the AEA website is a new email address and a letter:"Important Information from the new Executive Director.”We were asked to make that available quickly so the Governor could link it to her April newsletter.Thank you to Karsten and Terence for their assistance.In the letter is a contact point so you can send an email.We will use this email address to collect comments and ideas.We will use the contact information in order to send advance notice of visits to regional areas.AEA staff have volunteered to work on the team and he expects to be joined by a few AIDEA staff as well.A work group structure using a linear responsibility chart will lead formation of a scope,schedule,and budget.Steve said he was impressed with the AEA staff and feels there is lot of in-house expertise and talent.The schedule is pretty aggressive,but doable. We are currently modeling the public meetings after the AGIA process.The final community selection is underway of which 25 communities we are going to visit.We will break up into 3-4 teams to complete that effort so everybody doesn't go to every meeting.Letters were sent to the utilities in each area to gather information about electric use and date for revenue and cost flow.Letters are being drafted to agencies,identified participants,and communities asking for their input and participation in meetings.Lots of contacts have been made and Bethel has already been visited.Meetings are ongoing and regions which already had a plan have come to Anchorage to meet with the team.The Energy Plan will be posted on the AEA website soon so everyone has a chance to provide input to the project.Steve is also working on developing a technology matrix. Commissioner von Scheben stated that DOT would like to be included in this process as energy is often tied to road development.Mr.Haagenson stated that transportation is one of the critical components to help solve energy issues and thanked the Commissioner for volunteering DOT's assistance. Chairman Kelsey asked if Class A community corporations were required to bury tanks,or put them above ground,especially those near the waterfront. Mr.Mello stated that AEA has built tank farms in 50 communities and have not come across any underground tanks.The AEA program only deals with above ground storage tanks. Commissioner Galvin acknowledged the progress Steve Haagenson has made.He stated that it is gratifying for the board having hired him and identified him as the person who could move this project ahead and commended his actions and encouraged him to keep going. AEA Board Meeting April 10,2008 Meeting Minutes Page 10 Ms.Fisher-Goad added that in the board packets are AEA programs and projects updates for AEA.She added that it has been an experience and a pleasure working as the AEA Acting Executive Director.She complimented the board with respect to the person they chose as the new Executive Director.She stated that he came in with a lot of energy,no pun intended,with a statewide plan in mind and she looks forward to continuing to work with him to fulfill the planning goal. Ms.Fisher Goad stated the board will be polled for the next AEA Board meeting date. There is an AIDEA Board Meeting scheduled for 1:00pm on Wed.April 23,2008.Ms.Valorie Walker stated that this meeting is to consider refunding of the existing 2007 refunded bonds to remove AMBAC as the insurer.This is due to rates that have gone up as a result of market turmoil relating to the insurers,and to put a different financing in place.Board members were sent a memo laying out the rationale for the refunding.AIDEA plans to have a direct-pay letter- of-credit with State Street Bank versus the existing AMBAC insurance with a standby letter-of- credit with State Street Bank.She and Brian Bjorkquist have been working on a team to negotiate that contract.Deputy Commissioner Andrews added that this is a problem going on with fixed income markets throughout the entire United States and is not a unique problem.It is important to take a look at refinancing the bonds so that AIDEA can enjoy cheaper costs associated with them. 9.BOARD COMMENTS There were no further comments from the board. 10.ADJOURNMENT There being no objection and no further business of the Board,the meeting was adjourned at 11:35am. Vdd A A eweSaraFisherGoad,Acting Executive Director/Secretary Alaska Energy Authority MINUTES Alaska Energy Authority Board of Directors Thursday,February 14,2008 Anchorage,Alaska 1.CALL TO ORDER Chairman Kelsey called the meeting of the Alaska Energy Authority to order on February 14,2008 at 3:05 p.m.A quorum was established. 2.BOARD OF DIRECTORS ROLL CALL Directors present in Anchorage:Chair John Kelsey (Public Member);Deputy Commissioner Brian Andrews (Designee for Department of Revenue);and Commissioner Emil Notti (Department of Commerce,Community &Economic Development). Directors joined meeting in progress by teleconference:Mr.John Winther (Vice Chair,Public Member)and Commissioner Leo von Scheben (Department of Transportation &Public Facilities). 3.PUBLIC ROLL CALL Staff Present in Anchorage:Sara Fisher-Goad (Acting Executive Director);Chris Anderson (Deputy Director-Credit);James Hemsath (Deputy Director-Development);Valorie Walker (Deputy Director-Finance);Mark Schimscheimer (Project Manager);Jim Strandberg (Project Manager);Brenda Fuglestad (Administrative Manager);and Sherrie M.Siverson (Administrative Assistant). Others Present:Brian Bjorkquist (Department of Law);and Christine Vecchio (MEA Ratepayers Alliance). 4.PUBLIC COMMENTS VERBATIM Christine Vecchio,MEA Ratepayers Alliance:My name is Christine Vecchio.|am with the MEA Ratepayers Alliance.|wanted to make some comments on a couple of things.|was at the meetingonthe25"of January and |am sorry |walked in late to the AIDEA portion but this has to do with the selection of your Executive Director for AEA and once again,|think you know that |am a big proponent of public input and public process to this particular authority.First of all,|did a lot of thinking about the situation that you are facing.Which is the possibility of looking at AIDEA and AEA and looking at AEA as possible Energy Authority for the State of Alaska and what that all entails.| don't know where you are in that process,but as a public,|would say consumer,interested citizen, since |have been getting myself more informed about the energy situation here in Alaska,|started out trying to find information on a variety of issues about energy in Alaska and |could not find,when |started out,one particular centralized place for information.As |am learning more about the Alaska Energy Authority and in particular,through the REGA Study,if as a citizen,|know that |can call up,say AEA,and say |need this particular information on what kind of projects are being done along the railbelt that address renewable energy,or geothermal energy,or coal plants,or what is the status now of energy being generated along the railbelt,what about distribution transmission,and know that |can get that information from an authority such as AEA. AEA Board Meeting February 14,2008 Meeting Minutes Page 2 That,|think,provides invaluable public service because |am finding out that the days of thinking that experts only,utility people,or only state agency people get to make decisions about where Alaska is going to get its energy,how its going to be distributed to the state are over. Today,what is really necessary is to get the informed pubic involved because we have a lot of people out there who sometimes know more about energy in this particular case and some of the issues that we get concerned about living our daily lives than say people who might be in decision- making positions.|am very hopeful that the agency will,the authority will take a look and use as a model your REGA study because what that study has done from day one has provided a structure for the public to input as far as what they call stakeholders.Secondly,|can go to the AEA website, pull out any information |need as far as what proceedings happened here at your AEA Board meeting,what's going on with projects going on around the state from the Alaska Energy Authority and get information that can help me become an informed citizen to make decisions regarding,inthisparticularcase,energy.SHUR Also,|would like to commend the staff because |can call in and ask a question and if they don't have an answer they will refer me to someone who does,or shoot me to a document,or say this,or | will get something right away and |can share this then with people in my community who areconcernedaboutenergybutwhomaynothavethegoodfortunethat|have that |can adjust myworkinghoursandcometothesemeetingsandgiveyoumyinput.|take it as a responsibility that |can go back,share what information |have,and perhaps have.no call directly or I can say this iswhatweareconcernedabout.fy Any'For me,|don't know where you are in the'selection process for your Executive Director,but for meyourExecutiveDirectorwillsetacertaintonefortheAuthorityandifheorshecanbeapersonthatisknowledgeable,that does have experience and most of all,will keep the Authority working in anopen,transparent process where public can share their concerns,can give their opinions and you asdecision-makers are doing things openly,|think we have something.'We'll have something goingwherewecancomeupwithintelligentdecisions.because today |know there are so many differingopinionsaboutsourcesoffuel,how do we distribute,do we keep all these separate utilities going ornot,you know,and |have my own opinions.For me whatis most importantis |know that there is aplacethat|can come to,that other people can come to,that we know that decision making will bemadetaking|into account a variety,of different views.Also for me,what is most important is to,|would say,focus on quality of lifeissues.Because it is 'easy to go ahead and generate electricity,orgetourenergyascheaplybottomlineindollarsandcentsaswecan,but |think whatis facing ustoday,not just here in Alaska,butin the world,is what are we using our energy for?Whatis it thatourlifeis'about or lives are about that gets reflected in how we produce,generate and get ourenergytoliveourlivesandwhatkindofqualityoflifedowelive?Ht,u1amhopingthatin'"your search for an Executive Director that you will very strongly considersomeonewhowillemphasizeopenness,transparency and keep with the public input and I'll even gosofarastosayasyoumightevenconsiderontheAEABoard,or part of the AEA structure,acontinuousinputfromperhapsanadvisoryboard,getting input from different aspects of the community and having that advisory board be part of the decision-making process and making recommendations to it.So thank you very much.|know the decisions you have to make and essentially how you are going to structure AEA and AIDEA is something you have,that will have,| think,important and meaningful consequences.But |would like to stress somewhere where the focus can be on intelligent,on finding intelligent energy solutions for the State of Alaska.Thank you very much. END VERBATIM AEA Board Meeting February 14,2008 Meeting Minutes Page 3 Ms.Fisher-Goad noted for the record that Commissioner von Scheben and Mr.Winther have joined the meeting. 5.PRIOR MINUTES The January 25,2008 minutes were approved as presented. 6.OLD BUSINESS There was no old business. 7.NEW BUSINESS TA.Executive Director Search Brian Bjorkquist suggested that at the end of this session,the Board should entertain a motiontorecessandreconveneMonday,February 18 2008,at 10:15am to pursue the ExecutiveDirectorSearchandconductinterviews. 8.DIRECTOR COMMENTS Ms.Fisher-Goad stated that current information:on.AEA-owned projects,studies,and ruralenergyprojectswasemailedtoBoardMembersandinthefutureitwillbeincludedinthepackets.FY07 Power Cost Equalization'(PCE)Statistical Reports were distributed today.AEAreceivesnumerousrequestsfromLegislatorswithrespecttothecostofpowerinthesmallrural 9. naChairmanKelseyand'|Buty Commissioner Andrews confirmed that the Governor and herAdministrationisaintothis,Board to comeUP.with an Energy Planin the near future. Ms.Fisher-Goad stated that she would email board members information from the ProcurementManageronpotentialvendorswhocouldperformtheemployeesurvey. MOTION:Commissioner Notti moved to go into Executive Session to discuss Alaska Intertie Negotiations.Seconded by Deputy Commission Brian Andrews.There being nodiscussion,the question was called.A roll call vote was taken and the motion passedunanimously.a ayeEXECUTIVESESSION:3:21pm The AEA Board reconvened its regular meeting at 3:52 p.m. A quorum was established.Chairman Kelsey advised that the Board had not taken any formal action on the matters discussed. AEA Board Meeting February 14,2008 Meeting Minutes Page 4 10.ADJOURNMENT MOTION:Commissioner von Scheben moved to recess the AEA Board Meeting at 4:59 p.m.on Thursday,February 14,2008 and reconvene on at 10:15 a.m.on Monday, February 18,2008.Seconded by Commissioner Notti.There being no discussion,the question was called.A roll call vote was taken and the motion passed unanimously. Sara Fisher Goad,Acting Executive Director/Secretary Alaska Energy Authority MINUTES Alaska Industrial Development and Export Authority and Alaska Energy Authority Continuation of February 14,2008 Board Meeting Monday,February 18,2008 10:15am Joint Board Meeting Anchorage,Alaska 1.CALL TO ORDER Chairman Kelsey called the meeting to order at 10:30 a.m.A quorum was established. 2.BOARD OF DIRECTORS ROLL CALL Members present in Anchorage:John Kelsey (Chair -Public Member);Commissioner Patrick Galvin (Department of Revenue);Commissioner Emil Notti (Department of Commerce,Community &Economic Development);and Commissioner Leo von Scheben (Department of Transportation & Public Facilities). Member participating via teleconference:John Winther (Vice-Chair,Public Member). 3.PUBLIC ROLL CALL Staff Present in Anchorage:Sara Fisher-Goad (Acting Executive Director);Sherrie Siverson (Administrative Assistant);joined meeting after Executive Session:Christopher Rutz (Procurement Manager). Public Present:Deputy Commissioner Brian Andrews (Department of Revenue)and Brian Bjorkquist (Department of Law). 4,PUBLIC COMMENTS No public comments were heard. 5.PRIOR MINUTES No prior minutes were reviewed. 6.OLD BUSINESS There was no old business. 7.NEW BUSINESS TA.Executive Director Search MOTION:Commissioner Galvin moved to go into Executive Session to discuss the strategy for negotiations with perspective applicants,interviews with candidates for the AEA Executive Director,and compensation for the Acting Executive Director.Seconded by Commissioner Notti.There being no discussion,the question was called.A roll call vote was taken and the motion passed unanimously. EXECUTIVE SESSION:10:31 a.m. AIDEA and AEA Joint Board Meeting February 18,2008 Meeting Minutes Page 2 The joint meeting of the AIDEA and AEA Board of Directors reconvened at 4:32 p.m. A quorum was established.Chairman Kelsey advised that the Board had not taken any formal action on the matters discussed. 9.BOARD COMMENTS Commissioner von Scheben on behalf of the Board thanked Sara for serving as Acting Executive Director and also commended her on a job well done.He also reiterated his desire to pursue an employee survey. Ms.Fisher-Goad informed the Board that there were several issues,including at least one loan,which may require board action before the April meeting.Commissioner von Scheben asked if a proposal thatly,the scope and budget for anemployeesurveycouldbereadyfortheAprilmeeting.Ms.Fisher-Goad replied that staff has aroughscopeofworkandestimatesabudget©of $15-25K.Ny, and/or management.|i 'maiiy,HE |akMs.Fisher-Goad asked if this can be.taken as 'the Board's direction for staff to move forwardandpursueavendor,including signing,a contract,This course of action was confirmed by theChairmanandCommissionervonScheben.!Nip4in,i(flrae agaM Wl HillyyyMr.Rutz''said that one of the congultants he 'spoke with suggested group or departmentalinterviewsin'addition to individual interviews.Ha wy aisCommissionervonSchebenconfirmedhewas open to the consultants'suggestions and wantstheExecutiveDirectorstohavedocumentedfeedbackfromstaffassoonastheybegintheirnewpositions.Hy Commissioner von Scheben reiterated that the Chairman should receive the feedback anddecidehowtodisseminatetheconfidentialinformation.Mr.Bjorkquist did not see any legal issues with this plan. Deputy Commissioner Andrews asked if a board meeting could be convened on short notice if the Governor's office takes action on their letter of recommendation for an AEA Executive Director.Mr.Bjorkquist replied that a board meeting can be scheduled with a three-day notice for an emergency meeting and a five-business-day notice for a regular meeting. AIDEA and AEA Joint Board Meeting February 18,2008 Meeting Minutes Page 3 Mr.Rutz provided an overview of the process the Growth Company will follow in their search for an AIDEA Executive Director.AIDEA will publish the job description.If the Growth Company has any questions,we will consult with Deputy Commissioner Andrews.The Growth Company will then do three levels of interviews:1)create a list of interview questions;2)conduct phoneinterviews;and 3)provide the Board with a list of all applicants and their suggested short list of candidates for interviews with the Board.The Board will then have the opportunity to respond and schedule interviews for the last week of March. 10.ADJOURNMENT There being no objection and no further business of the Board,the meeting was adjourned at 4:41 p.m.a ALASKA ENERGY AUTHORITY RESOLUTION NO.2008-03 RESOLUTION OF THE ALASKA ENERGY AUTHORITY RELATING TO THE APPOINTMENT BY THE AUTHORITY OF AN EXECUTIVE DIRECTOR WHEREAS,the By-Laws of the Alaska Energy Authority (the "Authority”)allow the Board of Directors of the Authority to appoint an Executive Director of the Authority; WHEREAS,the By-Laws of the Authority further provide that the Executive Director of the Authority is the Secretary-Treasurer of the Authority; WHEREAS,it is in the public interest and in the best interests of the Authority that Steven H.Haagenson be appointed Executive Director of the Authority; WHEREAS,it is in the best interest of the Authority that Sara Fisher-Goad be re- appointed to continue her duties as Deputy Director-Operations and Assistant Secretary of the Authority; WHEREAS,the By-Laws of the Alaska Industrial Development and Export Authority Authority ("AIDEA”)provide for the hiring of the Executive Director of the Authority,as follows: The members of [AIDEA]may from time to time,employ an Executive Director for the Alaska Energy Authority,as the Board of Directors of the Alaska Energy Authority deems necessary to exercise their powers,duties and functions prescribed by AS 42.45,AS 44.83,and all other applicable laws of the State of Alaska.[AIDEA]and the Alaska Energy Authority shall enter into a contract providing for reimbursement of costs associated with employment of the Executive Director.The selection and compensation of the Executive Director of the Alaska Energy Authority shall be determined by the Board of Directors of the Alaska Energy Authority. WHEREAS,the Board of Directors of the Authority has selected Steven H.Haagenson to be Executive Director of the Authority,and has determined that the employment of Steven H. Haagenson as Executive Director of the Authority is necessary to exercise the Authority's powers,duties and functions prescribed by AS 42.45,AS 44.83,and all other applicable laws of the State of Alaska;and WHEREAS,the Board of Directors of the Authority has negotiated and determined the compensation of Steven H.Haagenson as Executive Director of the Authority. NOW,THEREFORE,BE IT RESOLVED BY THE ALASKA ENERGY AUTHORITY AS FOLLOWS: Section 1.Effective March 10,2008,Steven H.Haagenson is appointed Executive Director and Secretary-Treasurer of the Authority. Section 2.The Board of Directors of the Authority ratifies its selection of Steven H. Haagenson to be Executive Director of the Authority,and further ratifies its determination that the employment of Steven H.Haagenson as Executive Director of the Authority is necessary to exercise the Authority's powers,duties and functions prescribed by AS 42.45,AS 44.83,and all other applicable laws of the State of Alaska. Section 3.The Executive Director of the Authority is authorized and instructed to enter into a contract with AIDEA providing for reimbursement of costs associated with employment by AIDEA of the Executive Director of the Authority. | Section 4.Sara Fisher-Goad appointment as Acting Executive Director and Secretary-Treasurer of the Authority is terminated,and Sara Fisher-Goad is re-appointed to continue her duties as Deputy Director-Operations and Assistant Secretary of the Authority. Section 5.The Executive Director of the Authority,or any Authority staff member designated by him,is hereby authorized to sign,on behalf of the Authority,all contracts,deeds and other instruments made by the Authority,and related documents. Section 6.From time to time,as may be required on a temporary basis,when the Executive Director is unavailable,the Executive Director may designate any Assistant Secretary of the Authority to act on his behalf.The person so designated shall have all the assigned duties and powers of the Executive Director of the Authority,subject to any limitations imposed by the Executive Director in the designation of authority,during the time period designated by the Executive Director. Section 7.Actions taken by the Executive Director and Secretary-Treasurer of the Authority,the Acting Executive Director and Secretary-Treasurer of the Authority,or any Authority staff member designated by him or her from March 10,2008,to the effective date of this resolution are confirmed and ratified. DATED at Anchorage,Alaska,this 10"day of April,2008. (SEAL)Chair ATTEST Assistant Secretary ALASKA ENERGY AUTHORITY Loan Programs Power Project Fund (PPF) Number of loans:43 Outstanding portfolio balance:$24,434,279 Committed &un-disbursed funds:§1,123,911 Uncommitted funds:$12,312,924 As of 2/29/08,there was 1 loan past due 90 days or more in the amount of $215,000,which was .88%of the outstanding portfolio balance. Program Background:The PPF program provides loans to local utilities,local governments or independent power producers for the development or upgrade of electric power facilities, including conservation,bulk fuel storage,and waste energy conservation.The loan term is related to the productive life of the project,but cannot exceed 50 years.Interest rates vary between tax-exempt rates at the high end and zero on the low end.This rate is equal to the percentage that is the average weekly yield of municipal bonds for the 12 months preceding the date of the loan. Bulk Fuel Revolving Loan Fund (BFRLF) Number of loans:47 Outstanding portfolio balance:$3,647,112 Committed &un-disbursed funds:S 406,011 Uncommitted funds:$5,378,912 As of 2/29/08 there were 4 loans that were past due 90 days or more,totaling $292,852 or 8.03%of the total portfolio balance. Program Background:The purpose of the BFRLF program is to assist communities,utilities or fuel retailers in small rural communities in purchasing emergency,semi-annual or annual bulk fuel supplies.Loans are for the purchase of new fuel.Loans are not provided for fuel already purchased,in the process of being used or already consumed. Information:In FY 07 there were 9 applications from entities that had never previously applied to this program before.In FY 08 there have been 2 applications from new entities.The average loan commitment has doubled since 1993.The high cost of fuel seems to be increasing demand for this loan program.In the 2006 season,two BFRLF applicants had to wait for approximately two weeks for a loan commitment,as the program was fully committed at that time.Future demand and need was questioned,which led to the drafting of House Bill No.338. Revised 4-02-08 ALASKA ENERGY AUTHORITY Alternative Energy and Energy Efficiency Program Overview Alaska Energy Authority's (AEA)Alternative Energy and Energy Efficiency (AEEE)program manages and funds 27 projects and initiatives totaling $32.9 million in state and federal funding.An AEEE update is available on AEA's website at www.akenergyauthority.org Program Description The AEEE program promotes the use of renewable resources as alternatives to fossil fuel-based power and heat,and measures to improve energy production and end use efficiency.In rural areas the program may support developing local sources of coal and natural gas as diesel alternatives.The AEEE program is divided into seven separate program areas: Biomass Energy Program develops projects using wood,sawmill residue,and municipal wastes for energy; tests air emissions and performance of fish oil and diesel blends as fuel;and assesses the viability of recovering fish oil from fish processing wastes. Diesel Generation Efficiency Program provides assistance in developing projects that use high efficiency generators and recover "waste heat”from diesel generators. End Use Efficiency (Conservation)Program has completed 40%of a project upgrading lighting and heating efficiency in over 150 schools and other facilities in 50 villages,is conducting energy audits,and working with Alaska Housing Finance Corporation to develop statewide efficiency policy recommendations and demonstrate impact of aggressive,village-wide measures in Nightmute. Geothermal Program supports projects such as the Chena Hot Springs power plant,organizes workshops and training sessions,and coordinates state assistance in developing other potential projects such as Mt. Spurr on the Railbelt and Makushin in Unalaska via a statewide development plan. Hydroelectric Program provides technical assistance through staff and contractors for hydro feasibility assessment and manages public funding for project construction. Ocean and River Energy Program evaluates technology and feasibility of converting wave motion and tidal and river flow into power in partnership with Alaskan utilities and Electric Power Research Institute. Wind Program assists utilities and communities in resource evaluation,training,environmental assessment,regional development,conceptual design and economic feasibility of rural wind-diesel systems,and Railbelt wind integration studies. Funding AEA's alternative energy program has received funding since the early 1980s from the US Department of Energy (USDOE)and has recently expanded with funding from the Denali Commission and the EPA. Recently,AEA and the Denali Commission released two RFPs offering $9.4 million in alternative energy and efficiency funding.Earlier Energy Cost Reduction RFPs have provided $8.4 million in grant funds to match $12.4 million in local funds for projects that are displacing or will displace 1.4 million gallons per year of diesel and equivalent natural gas.For more detail,see the AEA's Biennial AEEE Assistance Plan at www.akenergyauthority.org Reviewed 4-08 ALASKA ENERGY AUTHORITY Bulk Fuel Program Current Status In 2007,bulk fuel upgrades were completed in the communities of Unalakleet,Seldovia,King Cove,and Pelican.Twelve communities are in the design process. Program Description The goal of Alaska Energy Authority's (AEA)Bulk Fuel program is to upgrade non-compliant bulk fuel facilities in communities that meet criteria.Upgrading bulk fuel facilities reduces the cost of energy by eliminating fuel loss from leaking tanks,spills,and fires.In addition,by providing enough capacity for current and foreseeable future the communities may purchase fuel in larger quantities at a lower cost per gallon. Alaskan remote communities rely on diesel fuel storage for heating and power generation.Many of the bulk fuel storage facilities were constructed in the 1970's or earlier.These facilities are at the end of their design life and do not meet fire code and may leak.Regulatory agencies may prohibit fuel deliveries these facilities.Communities did not have funds for replacing the storage facilities. Since 2000,the Denali Commission has been providing funding to replace community bulk fuel facilities. Due diligence is performed on possible participants to ensure that if they are in debt that they are paying on their loans.Participants sign a Business Operating Plan.The Business Operating Plan lays out the existing fuel facility organizational!structure,the qualifications of responsible people,AEA required training,estimated operation and maintenance costs,and the establishment of a repair and replacement fund,so that when equipment fails,the community will have the knowledge and savings to repair or replace it. Program Progress The bulk fuel program receives most of its funding through the Denali Commission.A total of 21 communities were completed in years previous to 2000.In 2000,funding increased substantially when the Denali Commission started to fund bulk fuel projects.As of December 2007,an additional 62 communities have been completed for a total of 83.Approximately 35 communities have not received upgrades.Depending on funding,five to ten communities are receiving upgrades per year. Reviewed 4-08 ALASKA ENERGY AUTHORITY Circuit Rider Program Current Status The Circuit Rider Program provides technical assistance to help rural utilities with the operation and maintenance of their electrical generation and distribution system.In 2007,31 utilities participated. Program Description The Circuit Rider Program is administered by the Alaska Energy Authority (AEA)and is available to all eligible electric utilities.Electric utilities participating in this program will receive support services available from AEA. The purpose of the circuit rider maintenance program under 3 AAC 108.200 -3 AAC 108.220 is to assist eligible utilities to improve the efficiency,safety,and reliability of power systems and reduce the risk and severity of emergency conditions or emergency disruptions in the operation of community power systems,by providing training,consultation,on-site assistance with maintenance and minor repairs,and other related technical assistance. e The CRM program runs ona fiscal year from July 1 to June 30. e All applications will be evaluated and placed on priority list. e AEA will make one or more visits to eligible electric utilities over the course of the fiscal year to provide training and provide recommendations concerning operations and routine maintenance activities.There will be no charge to the utility for these services. e Participating utilities are responsible for the purchase of all supplies,parts and equipment used for routine maintenance and minor repairs that are made during Circuit Rider visits.These items must be available at the utility's workplace prior to the arrival of AEA staff. e The Circuit Rider program does not provide funding for major repairs or reconstruction of electrical systems. e The participating utility's power plant operator and/or other utility staff must be available for training and consultation during the time of the Circuit Rider staff visit.Power plant operators will be required to maintain written performance logs in between Circuit Rider visits. e Utilities participating in the Circuit Rider program will be required to sign a letter acknowledging their understanding of the terms and conditions of the services provided by the program,prior to the first visit. Program Progress Services under the Circuit Rider program are limited to village electric utilities with a demonstrated need for assistance with preventative operations and maintenance activities,utility training and emergency prevention.The program is not intended to serve electric utilities that have sufficient financial and technical resources to perform routine operations and maintenance activities. Reviewed 4-08 ALASKA ENERGY AUTHORITY Emergency Response Program Current Status In 2007,23 communities where assisted.Major responses included Beaver when their powerhouse burned to the ground and Diomede with unexpected major equipment failures. Program Description The Emergency Response program provides on-call,as-needed emergency action response to mitigate extended power outages and electrical hazards that present eminent threat to life or property. This program is designed to respond to an emergency or potential emergency situation before disaster or major loss occurs.It provides funding for continuance of government activities.It allows for procurement of manpower,materials and equipment for emergency response to electrical generation and distribution system emergencies and disasters in Alaska. Program Progress Emergency response is provided on an as-needed basis only.Well-managed utilities with adequate technical and financial resources are not candidates for these services.Besides helping rural communities,AEA works with State and Federal agencies on an as-needed case by case basis to resolve electrical generation and distribution system emergencies throughout Alaska. Reviewed 4-08 ALASKA ENERGY AUTHORITY Power Cost Equalization Program Current Status : The original FYO8 PCE appropriation was $26,760,000.00 which was further capitalized by a $1.2 million dollar supplemental appropriation,increasing the total funding to $27,960,000.00.Current FYO8 budget projections indicate that funding levels should remain at the 100%level for the rest of the fiscal year. During FYO7,87 utilities serving 183 communities participated in the PCE program.The FYO7 PCE appropriation was $25,619,000.00,of which $25,436,750.95 has been disbursed to date.The FYO7 PCE funding levels were 100%for the first six months,and 89%for the second six months.This resulted in an annualized average funding level of 94.5%. Program Description The goal of Alaska Energy Authority's (AEA)Power Cost Equalization program is to provide economic assistance to customers in rural areas of Alaska where the kilowatt-hour charge for electricity can be three to five times higher than the charge in more urban areas of the state.PCE only pays a portion of approximately 30%of all kWh's sold by the participating utilities. PCE fundamentally improves Alaska's standard of living by helping small rural areas maintain the availability of communications and the operation of basic infrastructure and systems,including water and sewer,incinerators,heat and light.PCE is a core element underlying the financial viability of centralized power generation in rural communities. The Legislature established different functions for AEA and the Regulatory Commission of Alaska (RCA) under Alaska Statutes 42.45.100-170,which govern PCE program responsibilities. AEA determines eligibility of community facilities and residential customers and authorizes payment to the electric utility.Commercial customers are not eligible to receive PCE credit.Participating utilities are required to reduce each eligible customer's bill by the amount that the State pays for PCE. RCA determines if a utility is eligible to participate in the program and calculates the amount of PCE per kWh payable to the utility.More information about the RCA may be found at www.state.ak.us/rca PCE Endowment Fund The PCE Endowment Fund was created and capitalized in FY 2001 with Funds from the Constitutional Budget Reserve and the Four Dam Pool Project sale proceeds.The PCE Endowment Fund is an Alaska Energy Authority Fund managed by the Department of Revenue;it is invested to earn at least 7%over time.$182.7 million was appropriated to the fund in FY 2007.The deposit occurred in October 2006. AS 42.45.085 provides that 7%of the PCE Endowment Fund's 3-year monthly average market value may be appropriated to the PCE Rural Electric Capitalization Fund for annual PCE program costs.After the FY 2007 capitalization,7%of the market value equals the estimated full funding amount for the program. Revised 3/27/08 ALASKA ENERGY AUTHORITY Rural Power Systems Upgrade Program Current Status Between the calendar years 2000 through 2007,32 communities have benefited from powerhouse and distribution upgrades.15 additional communities are currently undergoing or are scheduled for construction upgrades in 2008.13 more communities are in conceptual design or final design stage. Program Description The Rural Power System Upgrade (RPSU)program concentrates on powerhouse and electrical distribution upgrades.Typical project include powerhouse upgrades or replacements,distribution line assessments and upgrades,line extensions to new customers,demand-side improvements and repairs to generation and distribution systems.Energy efficiency,reliability,safety and sustainability are primary drivers during the conceptual design,final design and construction process.Identification of available alternative energy and interoperability with any existing alternative energy sources is high priority with the rising cost of fuel and carbon emissions concerns. Examples of programmatic efforts include: °Rebuilding or replacement of worn-out,inefficient diesel generator units. °Rebuilding or replacement of old,hazardous and non-code compliant distribution systems. e Construction of new power generation systems that meet State and Federal codes. Inclusion of waste heat recovery systems in new powerhouses. °Force account labor and technical assistance to rural communities through AEA personnel and/or contractors with experience in rural construction. System upgrades to be funded may be identified through a variety of ways,including via technical assistance,advanced by the local community or directed by the Legislature.The Majority of funds are via the Denali Commission.Other sources include Community Development Block Grant (CDBG),Indian Community Development Block Grant (ICDBG)and Rural Utility Service (RUS). Program Progress Electricity provides for lighting,communications,heat and power necessary to operate infrastructure that supports all other elements needed in any community to permit safe and healthy living conditions. In rural communities throughout Alaska,electricity is generated by a small local "system”(generation and distribution)using diesel fuel at a cost that is three to five times higher than that in urban parts of the state.Of the 200 rural communities,approximately half are served by cooperatives or another form of utility that performs under a well-established organization.Others are served by very small entities, many which experience technical and administrative problems due to lack of economies of scale and/or lack of specialized skills in the community. Reviewed 4-08 ALASKA ENERGY AUTHORITY Training Program Current Status The Alaska Energy Authority (AEA),along with the Denali Commission Training Fund,provides training opportunities to local residents for their energy projects and infrastructure.In FYO7,the AEA Training Program provided training to 131 rural Alaskans.For FYO8,the program was funded at $416,435 and at least 118 rural Alaskans are expected to be trained. Program Description The intent of this training is to ensure that community personnel have the best skills with which to sustain their energy infrastructure in a business-like manner.With proper training,utilities can keep their facilities code-compliant and sustainable. The training program currently offers the following courses: e Bulk Fuel Operator Training e =Itinerant Bulk Fuel Operator Training e Bulk Fuel Business Training e Power Plant Operator Training e Advanced Power Plant Operator Training e Electric Utility Business Training e PCE Utility Clerk Training In the past,Hydro Power Plant Training was offered.It was decided that it is sufficient to conduct this training every two years.Therefore,funding for Hydro Power Plant Training will be requested in FYO9. Reviewed 3//27/08 "<yIDEN {=A Alaska Industrial Development and Export Authority Revised April 3,2008 Project Fact Sheet:ALASKA-BC INTERTIE STUDY CURRENT STATUS:The re-appropriation of funds to allow for construction of the Petersburg to Kake intertie is presently included in the Governor's budget bill,and is being considered by the Legislature.Not further actions are taking place on this project pending action on this re-appropriation.The British Columbia government is reviewing the potential construction of a backbone intertie to near the Alaska-BC border.This project depends in part on the evaluation by private mining companies of the economics of major mines near the Alaska BC border.AEA continues to monitor the situation,since construction of this Canadian intertie is key to Alaska's ability to export power from the Thomas Bay projects.The final feasibility report has been published.It is available online at: http://www.akenergyauthority.orq/AKBCProjectPage.html PROJECT COST:$3.2 million. DESCRIPTION:To analyze and confirm the feasibility of a transmission line that would connect two parts of the Four Dam Pool service area and the two major Southeast hydroelectric power plants in the Ketchikan-Wrangell-Petersburg region through construction of a 67-mile electrical transmission intertie; and connect the Four Dam Pool transmission system into the Canadian grid,and thus gain access to power markets either in Canada or US Pacific Northwest.As a part of the study,examine the construction of a transmission backbone that that would entice private or local government entities to develop hydro power projects that could produce as much as 100 MW of power for use in southern SE Alaska or be exported. PURPOSE:Provide a transmission system to allow for exportation of power to the British Columbia grid. Additional intertie will allow delivery of excess power for Lake Tyee to Ketchikan. SOURCE OF FUNDS:Legislative appropriation of $3.2 million.Of the $3.2M funding,AEA has expended approximately $511,000 as of September 30,2007. PARTICIPANTS:Hatch Energy (Contractor)and an Advisory Work Group made up of representatives from Southeast Alaska communities including:Auke Bay,Craig,Juneau,Ketchikan,Metlakatla, Petersburg,and Wrangell. BENEFITS:The draft final report supports the Swan-Tyee Intertie and the Kake Petersburg Interties as being economically feasible,and indicates the export intertie link shows economic promise,but cannot be definitively determined at this time. ADDITIONAL BACKGROUND:This study has an advisory committee and steering committee to assist AEA in proper administration of funds.The committees have participated actively in the formulation of the consultant scope of work,selection of the consultant.The feasibility study has been reviewed and approved by the work group. 813 West Northern Lights Boulevard e Anchorage,Alaska 99503-2495 www.aidea.org @ 907/771-3000 e FAX 907/771-3044 @ Toll Free (Alaska Only)888/300-8534 e www.akenergyauthority.org "<YIDEX.[=ALASKATXAlaskaIndustrialDevelopmentWeaisExportAuthority Reviewed April 1,2008 Project Fact Sheet:ALASKA INTERTIE CURRENT STATUS:The Intertie is currently in operation.Several Repair and Renovation projects are before the Intertie Operating Committee and AEA requiring funding.The projects are the STATIC VAR COMPENSATOR replacement project and the TOWER 195 RELOCATION project.An AEA team has met with representatives of the participating utilities to consider negotiating a new agreement for intertie operations,to replace the existing agreement,which will terminate in October 2010. PROJECT COST:Initial capitals costs of $124 million.Warranty and repair and replacement fund is paid into by utilities to cover costs. DESCRIPTION:The Alaska Intertie transmission line is a 170-mile long,345kV transmission line between Willow and Healy that is owned by AEA.It is presently operated at 138 KV. PURPOSE:The purpose of the Alaska Intertie is to interconnect Golden Valley Electric Association,the regulated utility that serves areas north of the Alaska Range with south central Alaska Utilities.The intertie also allows resources north and south of the range to be shared to improve reliability.Notably, the GVEA storage battery,as well as GVEA generation resources,can and have been used to send emergency power southward to minimize catastrophic network wide outages.The operation of this intertie materially improves overall system reliability. SOURCE OF FUNDS:The Intertie was built in the mid-1980s with State of Alaska appropriations totaling $124 million.Currently,there is no debt associated with this asset. PARTICIPANTS:The operation of the Intertie is governed by the Alaska Intertie Agreement entered into in 1985 and amended in 1991.The parties to this agreement are AEA (formerly Alaska Power Authority), Anchorage Municipal Light &Power,Chugach Electric Association Inc.,Alaska Municipal Utilities System, Golden Valley Electric Association,Inc.,and the Alaska Electric Generation and Transmission Cooperative (AEG&T is comprised of Matanuska Electric Association and Homer Electric Association). BENEFITS:In 1981,a study demonstrated a positive feasibility of the line and recommended construction of an intertie to allow exchange of economy energy and the sharing of reserve generation capacity between the Anchorage and Fairbanks load centers.It was estimated that the benefits from the project would be approximately $17 million per year. ADDITIONAL BACKGROUND:Agreements have been developed over a span of 30 years to govern the cooperative management,operation of the connected network at large.AEA has agreements with participating utilities that assure the Alaska Intertie operates with prudent maintenance and operation by utilities.ML&P is the intertie operator,while MEA and GVEA provide maintenance and operations services. AEA serves as financial administrator,providing basic accounting services to establish a cost-based wheeling rate that is trued up each year.AEA collects payments from Intertie users and pays expenses, including reimbursement of costs incurred by the two operators of the line,ML&P and GVEA,and the three maintenance contractors,MEA,CEA,and GVEA. 813 West Northern Lights Boulevard #Anchorage,Alaska 99503-2495 www.aidea.org e 907/771-3000 e FAX 907/771-3044 e Toll Free (Alaska Only)888/300-8534 e www.akenergyauthority.org "YIDEN [=ASI Alaska Industrial Development and Export Authority Reviewed:March 27,2008 Project Fact Sheet:BRADLEY LAKE HYDROELECTRIC PROJECT CURRENT STATUS:Inspections indicate Bradley is in good condition.In 2006,the governor control system was replaced.Bradley's responsiveness to changes in output improved greatly.In 2007,the turbine runners were replaced.No major projects are planned for 2008.Bradley continues to perform well and maintenance activities are proceeding as planned. PROJECT COST:$317 million (original cost plus major capital improvements through June 30,2007) DESCRIPTION:The project has 126 MW of installed capacity hydroelectric project located 27 air miles southeast of Homer on the Kenai Peninsula.The project consists of Bradley Lake,a 125 foot high concrete faced,rock filled dam structure,three diversion structures,a 19,063 ft.long power tunnel and vertical shaft, generating plant,interior substation,20 miles of transmission line,and substation.Due to its remote location, the project has its own airstrip,boat dock,residential quarters,and utility system.The project is normally automatically operated by remote dispatch by Chugach Electric Association from Anchorage. PURPOSE:The Bradley project provides 5-10%of the annual railbelt electric power needs at the lowest generation cost.Bradley is most important to the railbelt electric system during the cold winter months. Demand for both electric power and gas for heat is at its highest.Utilities limited by available gas are able to use Bradley power to meet the high electric demand. SOURCE OF FUNDS:Legislative appropriations and AEA revenue bonds repaid by participating utilities. PARTICPANTS:Under the Power Sales Agreement,100%of the project's capacity has been sold to the power purchasers:Chugach Electric Association,Inc.(30.4%);Municipality of Anchorage (25.9%);Alaska Electric Generation &Transmission Cooperative,Inc.(25.8%);acting on behalf of Homer Electric Association, Inc.(12.0%)and Matanuska Electric Association,Inc.(13.8%);Golden Valley Electric Association,Inc. (16.9%);and City of Seward (1.0%) BENEFITS:Authority ownership now assures the railbelt area of a long-term source of power at a stable cost and promotes economic development in the region. ADDITIONAL BACKGROUND:The power generation potential of Bradley Lake was first studied by the U.S. Corps of Engineers and presented in a report dated March 1955.The project was authorized by Congress in 1962,but,despite its feasibility,federal funds were not available for its construction.The Alaska Energy Authority (then Alaska Power Authority)assumed responsibility for the project in 1982.Preliminary plans and field investigations started in 1982.!n April 1984,the Authority submitted an application for license to the Federal Energy Regulatory Commission (FERC).The license to construct the project was issued on December 31,1985.In December 1987,the Authority and the railbelt utilities entered into a Power Sales Agreement to delineate responsibilities.Project was declared in commercial operation September 1,1991. Bradley has been producing power for 16 years.In 2007,Bradley produced 392,000 MWh of power at a cost of approximately $.039 per kWh. A Bradley Project Management Committee (BPMC)was formed in 1993 with representatives from each of the power purchasers and Alaska Energy Authority.The BPMC is responsible for the management,operation, maintenance,and improvement of the project,subject to the non-delegable duties of the Alaska Energy Authority. 813 West Northern Lights Boulevard «Anchorage,Alaska 99503-2495 www.aidea.org «907/771-3000 e FAX 907/771-3044 @ Toll Free (Alaska Only)888/300-8534 e www.akenergyauthority.org "*Y IDEN f=AASYXAlaskaIndustrialDevelopmentWeAlExportAuthority Revised:April 2,2008 Project Fact Sheet:EKLUTNA TRANSMISSION LINE UPGRADE CURRENT STATUS:Project construction is complete.The line presently awaits connection into the Railbelt network.As the available funds through the AEA grant are nearly exhausted,the Eklutna Operating Committee (ML&P,Chugach and MEA)has elected to complete the project using funds they will secure.The Operating Committee has designated ML&P as the project manager for completing terminations,commissioning and energizing the line.ML&P is securing professional services to accomplish this commissioning process.They will be reporting the proposed schedule to AEA for commissioning in the spring of 2008. PROJECT COST:$19.3 million DESCRIPTION:The project consists of rebuilding the existing 115kV wood-pole electric transmission line from the Eklutna Hydroelectric Plant to the point where the Beluga 230kV electric transmission line intersects the line (near Briggs Tap/Fossil Creek),spanning a distance of 22.5 miles. PURPOSE:To upgrade the existing sing!e circuit line to a double circuit line providing an overall capacity and reliability to the intertie.To improve system reliability and resolve fault issues,the generating utilities approached the legislature for funding to construct a dedicated transmission link between the two generation centers,and to provide a second line to serve the four existing MEA taps.The new transmission line will be constructed and insulated for 230KV,but will initially operated at 138KV. SOURCE OF FUNDS:Grant to the Municipality of Anchorage Municipal Light and Power through the Alaska Energy Authority for an Eklutna project transmission line upgrade.AEA is the grant administrator. PARTICIPANTS:Anchorage Municipal Light and Power,Chugach Electric Association,Inc.,and Matanuska Electric Association. BENEFITS:This intertie project will resolve concerns over the 50-year age of a wood structured primary intertie link between the hydroelectric power plant at Eklutna,and the ML&P plant no.2,which is one of the main generation centers for South Central Alaska.Completion of the intertie will increase operating and dispatch flexibility for South Central Alaska,and increase reliability of power supply. ADDITIONAL BACKGROUND:Concerns for system reliability and safety led South Central Utilities to approach the legislature for a $19.3 Million appropriation to replace a 50-year-old key transmission link between two South Central Generation facilities.The Eklutna hydropower generation facility,recently repowered to produce 40MW of storage hydropower,was connected to the rest of the Railbelt system through the wood structured link. 813 West Northern Lights Boulevard «Anchorage,Alaska 99503-2495 www.aidea.org e 907/771-3000 e FAX 907/771-3044 e Toll Free (Alaska Only)888/300-8534 e www.akenergyauthority.org "YIDEX.feesVXAlaskaindustrialDevelopmentWrAlExportAuthority Revised February 8,2008 Project Fact Sheet:LARSEN BAY HYDROELECTRIC PROJECT CURRENT STATUS:Upgrades to the Larsen Bay Hydro Facility are in progress.Replacement of the switchgear controls and repairs to the intake structure is scheduled for Spring 2008. PROJECT COST:$320,000 DESCRIPTION:The Larsen Bay hydro facility has experienced many operating problems over the last few years.The problems are mainly related to the aging of the control switchgear,much of which was installed twenty years ago.Improvements that will be made to the hydroelectric facilities to improve operational reliability will include the replacement of the hydro switchgear controls with new load- sending,data acquisition and remote monitoring capabilities.Additionally ice flow damage to the water intake structure will be repaired.Operationally a portion of the cannery domestic load will be isolated in order to facilitate increased use of hydro power during the summer without impacting the power to the city. PURPOSE:The project intent is to increase the reliability,power quality and efficiency of the hydro system at Larsen Bay. SOURCE OF FUNDS:In 2004,the City of Larsen Bay applied for and received a CDBG Grant to upgrade the hydro facility.In 2005,AEA negotiated a Grant Agreement with the City of Larsen Bay and CDBG to manage the hydro upgrade project.Subsequently,the project was awarded $320,000 from CDBG. PARTICIPANTS:Alaska Energy Authority and the City of Larsen Bay BENEFITS:When operating efficiently the hydro can displace 90%of the communities diesel fuel used for electrical generation.Sales to the cannery during the summer of 2007 allowed the City of Larsen Bay to pay its loan obligations for FY 2007 and 2008.The intent is to turn the facility over to the City after the improvements have been made and the facility has proven its reliability ADDITIONAL BACKGROUND:This 475-kilowatt project went into commercial operation in mid-1991 with construction costs of approximately $1.6 million.In addition to producing electricity for this isolated Kodiak Island community,the project replaced the City of Larsen Bay's old water supply system and provides a better source of water with reduced maintenance and improved water quality.The original intent of the hydro project was to turn the facility over to the City of Larsen Bay once it had been demonstrated to be operationally viable over a few years.The hydro operated only intermittently and unreliably for many years;therefore the community would not agree to accept the facility until these problems were worked out.In 2004,the City of Larsen Bay agreed to seek CDBG funding to make improvements to the hydro facility. 813 West Northern Lights Boulevard *Anchorage,Alaska 99503-2495www.aidea.org ¢907/269-3000*FAX 907/269-3044 *Toll Free (Alaska Only)888/300-8534 *www.akenergyauthority.org ""*YIDEX =AUSyAlaskaindustrialDevelopmentWAExportAuthority Revised April 3,2008 Project Fact Sheet:RAILBELT ELECTRICAL GRID AUTHORITY STUDY CURRENT STATUS:The Consultant,Black and Veatch (B&V),has conducted stakeholder interviews.The project was delayed for approximately 45 days to allow the Railbelt Utilities time to review and comment on the scope of work for the project.This process has been completed and the project is proceeding with the support of the utilities.All data sets have been received and B&V is meeting with utility technical staff on April 3,2008.AEA had a second Advisory Work Group meeting on March 26,2008.Current project completion is expected to be July 2008. PROJECT COST:$800,000 DESCRIPTION:Black and Veatch (B&V)was hired as consultant to AEA to perform the analysis of the potential of a Railbelt Electrical Grid Authority in increasing cost effectiveness and reliability in the operation of the Railbelt transmission grid.B&V will analyze operation costs,look at current and future generation sources,look at current and future electrical demands and develop a series of future scenarios with recommendations for a grid authority.This work will be done in conjunction with the Railbelt utilities,through extensive interviews with affected stakeholders and subject matter experts and with the guidance and feedback of an advisory work group. PURPOSE:This Railbelt Electrical Grid Authority (REGA)study will identify a range of grid authority business structures to own,operate,control,maintain and operate the future Railbelt Electrical generation and transmission Grid This business structure alternatives could range from a voluntary organization to dispatch power and manage the grid assets,or it could be more encompassing to include responsibility for planning and acquiring new generation and assuming ownership of existing Railbelt assets. SOURCE OF FUNDS:Legislative appropriation. PARTICIPANTS:Black and Veatch;Alaska Energy Authority;Homer Electric Association;Chugach Electric Association;Anchorage Municipal Light and Power;Matanuska Electric Association;Golden Valley Electric Association;and a variety of stakeholders as represented on the advisory group and through interviews. BENEFITS:The project will provide the range of effective business structures that the Railbelt can employ to manage the future generation and transmission assets,with comparative economic assessments,analysis of barriers to implementation,and an implementation plan.This will provide a basis for any decisions relating to the enhancement and growth of Railbelt Electric Infrastructure under a variety of possible future energy supplies. ADDITIONAL BACKGROUND:A recent petition by MEA to the Regulatory Commission of Alaska called for the creation of a regional Generation and Transmission Cooperative as a means to implement a collective process to secure new generation sources for the Railbelt.This matter is currently being considered by the RCA. 813 West Northern Lights Boulevard e Anchorage,Alaska 99503-2495 www.aidea.org ¢907/771-3000 #FAX 907/771-3044 e Toil Free (Alaska Only)888/300-8534 e www.akenergyauthority.org "YIDEN f=AonVXAlaskaindustrialDevelopmentWrAleExportAuthority Revised April 3,2008 Project Fact Sheet:SWAN-TYEE INTERTIE CONSTRUCTION COMPLETION CURRENT STATUS:The Four Dam Pool Power Agency has signed the majority of the construction contracts for line construction,and is procuring owner furnished equipment and materials to the construction effort.Project mobilization is expected ater on this spring. PROJECT COST:$46.2 million DESCRIPTION:This project will complete the construction of the 57-mile Swan-Tyee Intertie between the Swan Lake hydro-electric power plant and the Tyee Lake hydro-electric power plant,and when energized will allow the communities of Petersburg,Wrangell,and Ketchikan to be electrically interconnected.The work will be completed in the 2008 and 2009 construction seasons.The intertie will be owned and operated by The Four Dam Pool Power Agency. PURPOSE:This project will allow power that is produced in the Four Dam Pool transmission network to be scheduled and economically dispatched.Initially,it is expected that excess water energy available at Lake Tyee generation capacity and energy will be used to offset an energy shortage in the Ketchikan area.In a longer range capacity,the intertie can be used to convey power for export through an export intertie that is being considered into British Columbia. SOURCE OF FUNDS:Grant to the Four Dam Pool Power Agency PARTICIPANTS:The Four Dam Pool Power Agency consisting of three purchasing utilities (municipal utilities of the Cities of Ketchikan,Wrangell and Petersburg)and two electric cooperatives (Copper Valley Electric Association and Kodiak Electric Association). BENEFITS:Generation,avoiding a looming shortage in Ketchikan that could have required Ketchikan Public Utilities to operate expensive and polluting diesel generation. ADDITIONAL BACKGROUND:This project was partially funded in 2005.The Four Dam Pool Power Agency cleared the Right-of-Way and purchased and installed tower foundations,construction was stopped when these funds were expended.The region was able to secure an appropriation of $46.2 million for completion of the project. 813 West Northern Lights Boulevard «Anchorage,Alaska 99503-2495 www.aidea.org e 907/771-3000 e FAX 907/771-3044 @ Toll Free (Alaska Only)888/300-8534 e www.akenergyauthority.org Ww ye "AIDEN I=Asn Alaska Industrial Development and Export Authority Revised April 2,2008 Project Fact Sheet:TEELAND DOUGLAS TRANSMISSION LINE PROJECT CURRENT STATUS:Project meetings continue.The ML&P team is now beginning outreach and public information processes that include meetings with local government officials.A schedule and work plan for the public process on the project is nearing completion.Initial meetings with the Matanuska Susitna Borough and the City of Houston have been held. PROJECT COST:$20.3 million DESCRIPTION:Upgrade and extend the line from the Teeland Substation on Knik-Goose Bay Road to the Douglas substation in the Matanuska-Susitna Borough.The project is an integral part of the Alaska Intertie and will replace approximately 25 miles of an existing transmission line operated at 138kV,owned by MEA. PURPOSE:Construction of this bypass line will parallel the existing MEA owned line,and allow the present MEA owned intertie link,20 miles of which is insulated at 115kV and operated at 138kV,to return to MEA control and service.Continued use of this 20-mile portion of the 25-mile MEA asset by certain Railbelt utilities until January 1,2014 has been provided for through an RCA order. SOURCE OF FUNDS:2002 Legislative appropriation to AEA. PARTICIPANTS:AEA is contracting with Municipal Light and Power under a cooperative agreement to accomplish the transmission line project.AEA will own the new line and it will become part of the Alaska Intertie Project. BENEFITS:This new line will be an addition to the existing 170 mile Alaska Intertie.With AEA ownership and access,the existing agreements with MEA for use of MEA transmission lines,which are complex,will no longer be needed.It is expected that intertie operations will be simplified,and MEA will gain the full use of its assets it previously had devoted to intertie operation. ADDITIONAL BACKGROUND:It was determined that the most effective way to construct the line was to have ML&P manage all construction activities.This decision was the result of a collaborative effort between AEA and the Intertie participant utilities.The project has been approved by the Intertie Operating Committee. 813 West Northern Lights Boulevard e Anchorage,Alaska 99503-2495 www.aidea.org @ 907/771-3000 «FAX 907/771-3044 e Toll Free (Alaska Only)888/300-8534 *www.akenergyauthority.org Project Overview Alaska Energy Plan Alaska Energy Authority Project Goals ¢Reduce the cost of energy to Alaska ¢Rapidly identify and deploy solutions ¢Complete analysis by December 2008 Deploy solutions as soon as identified. Project Results ¢Identify and deploy energy sources that are vertically integrated,economic,long-term stable priced,and sustainable. Guiding Principals Provide energy in a form that can be used in existing infrastructure. Evaluate costs on a delivered basis. Use low-profit business structure. Minimize risk of technology failure. Engage Alaskans in the solution. Seek the lowest cost energy to each community. GCEP Global Exergy Flux,Reservoirs,and Destruction 34000 62500 4 Armospheric Reflection Lf 2212 Soar Racion162000Atmospheric4 0.06 wind Energy Ocean Thermal Gradient Solar Absorption tT:6Owaves __0 Wave =0Radiation870windEnergy_K Pesorption 100 OTEC =gence)5000 2 86000 Evaporation 300 Nae!7.2 7 0.36 Surface@SurfaceIncident f 90 5.4 electricity Reflection s Scattering 43000 Fexsurface Heating -Clouds Rivers 5 a 4 3.7 Tides |20 Photosynthesis aioe 2 Traditional Biomass 0.016 Solar Energy33.5 Ocean Tides 30zZ]0.04 9 0.15 Commercial Biofuels£.Carbon BurialoPlants.1000 Zj -srnperae)0.0005 Energy 207)>3.6 Coal Nuciear telCoal+r 0.2 Solid Earth :300 Z].Tides Methane Hydrate 110 2)oW 5.0 oi Thorium 3 390000 2)Geothermal Energy 200 Z)<4 3.2 Ga .Uranium 'f°'J 390.03 50S eee -SS+32 crustal ThermalL_-nergy 1.5€7 Z} Exergy is the useful portion of energy that allows us to do work and perform energy services.We gather exergy from energy carrying substances In the naturalwortdwecallenergyresources.While energy is conserved,the exergetic portion can be destroyed when Kt undergoes 3an energy convertion This diagram Thermal Kinetic WA DO Natural Exergy Destruction a _Exergy Accumulation[23](=1021 3)PEE Radiation Gravitational -)Human Use for Energy Services =Exergy Flux [TW](=1012 w) summarizes the exergy reservoirs and flows in our sphere of their conversions,adestruction.Because the choice of energy resource and the d of have envi g thefull Frange of energytoourg1Gworldandmayassistineffortstodecoupleenergyusefromenvironmentaldamage. Prepared by Wes Hermann and A).Simon Global Climate and Energy Project at Stanford University (http://gcep.stanford.edu)Wer,1.1 ©OCEP 2605,2007 aed:ehSpa SIE ed FFTS,y tbs oi Global Exergy Flux,Reservoirs,and Destruction 34000 62500 Atmospheric Reflection Extra-Solar Radiation 162000 Atmospheric 0.06 wind Energy Ocean Thermal Gradient Solar Absorption -{P 9 9 WaveRadiationEnergy Absorption ----pomeeniapenfes)().36 -5000 i 86000 300 7.2 Hydro-Surface f Surface Incident 90 5.4 electricity Reflection Clouds RiversScattering 1.2 Traditional Biomass 0.15 Commercial Biofuels 3100 Z)3.5 Ocean Tides vida 302)"tum ™=>0.0005 Energy 3.6 Coal 270 2)Coal+0.2 Solid Earth 300 73meMethaneHydrate|4102)o 9-0 ail Thorium "$e0000 2)Geothermal Energy 200 Z)«<->3.2 Gas 1£10 Z)Deuterium Uranium eae=)0.03 50 ZJ GasSROSRSSSSessanansannanan a wtf a saw ew ewan ansonnaacae Pewee +t3.7 Tides +t GS cod]E pongro)= > Cc UW 3 2 Ww iB]= ewe ake P32 Crustal Thermal ance 'Thermal -Kinetic Ww ©)Natural Exergy Destruction <>Exergy Accumulation [Z](=1021 J)Energy 1.5£7 Z)Nuclear Chemical ;Pet]Radiation Gravitational -}Human Use for Energy Services =Exergy Flux [TW](=10!2 w) Exergy is the useful portion of energy that allows us to do work and perform energy services.We gather exergy from energy-carrying substances in the natural world we call energy resources.While energy is conserved,the exergetic portion can be destroyed when it undergoes an energy conversion.This diagram summarizes the exergy reservoirs and flows in our sphere of influence including their interconnections,conversions,and eventual natural or anthropogenic destruction.Because the choice of energy resource and the method of resource utilization have environmental q es,h ing the full range of energy options available to our growing world popuiation and ¥may assist in efforts to decouple energy use from environmental damage. Prepared by Wes Hermann and A.).Simon Global Climate and Energy Project at Stanford University (http://gcep.stanford.edu)1 3.1 @ GCEP 2005,2007 0x70 _Regions-Regional Educational Attendance Areas epg me eMa Miles 140 210 280--- _.. ;f=ALASKAENERGYAUTHORITY™ Regions-Regional Educational Attendance Areas Anchorage Fairbanks Soldotna - Bethel Kotzebue Nome St.Marys «Aniak. -Tooksok Dillingham "Naknek Uliamna S Kodiak.Chignik . Unalaska Hooper Bay.semnsemnaus Holy Cross :aia "A Galena Ft Yukon - ' 5 ---€_,wen Wars,OWM.s tO BG 2 Tok |r GlennallenValdez Cordova Juneau Sitka Petersburg ..Ketchikan Craig) Haines . Hoonahs -..-Barrow FAAS Identify the current fuel usage and costs ¢Initial Usage estimates =Bulk Fuel Loan data =Tank Sizing estimate:1,000 gallons per year per person. =PCE participation "Crowley deliveries ="Enstar ¢Determine the current cost of fuel Selawik-Energy Flow Model FUEL ONLY Residential Base per household 240,831 gallons Petroleum 109,157kWh Wind Electric |$4,541 ]$6,025 327,000 gallons Petroleum Space Heating a wees $10,566 Yearly Total ] 222?Petroleum Transportation Selawik Yearly Energy Total:$2,590,296. Annual Income per Household $27,000. 40%of Household Income for fuel }Community Facilities | J )}Commercial | Selawik-Energy Flow Model FUEL ONLY 240,831 gallons Petroleum 109,157kWh Wind 327,000 gallons Petroleum 2229 Petroleum Selawik Yearly Energy Total:$2,590,296. Residential Base per household Electric |$4,541 |$6,025 ls 2 Space Heating $10,566 Yearly Total Transportation a Annual Income per Household $27,000. 40%of Household Income for fuel |Community Facilities |Commercial FF Technology Evaluation ¢Technology Assessment ¢General Cost Estimates *Capital Costs - ¢Operations and Maintenance Costs Potential Technologies and Fuels Hydroelectric Wind Solar Tidal Wave Biomass Geothermal Municipal Waste Conservation Natural Gas Propane Coal Diesel Coal Bed Methane Nuclear Gasification Fischer-Tropsch 10 Locally Available Fuel Supplies Visits to each sub-region to listen to locals on available energy sources. Size for the local need Determine energy delivery method. Develop energy production costs Develop energy delivery method and costs. 11 Financial Model-Template Fischer-Tropsch ..+>$14.29/mmBTU $1.86/galionFuelSourcesGasification Municipal WasteCoal:-$1.92/mmBTU |” Biomass:$4.17/mmBTU $6.25/mmBTU |!Combustion Gas Turbine |Natural Gas $9.00/mmBTU | Diesel $22.92/mmBTU Tidal |Solar $204.25/mmBTU |Direct Combustion-CHP $18.56/mmBTU |Wind $24.61/mmBTU Geothermal $17.10/mmBTU |Hydroelectric:$16.36/mmBTU |Conservation/efficiency improvements *$(5.93)/mmBTU SerereweeriwerewresiswanesISernJetA Naphtha FT Diesel Electric kwh $0.072/kWh $0.697 1/kWh $0.0633/kWh $0.0840/kWh $0.0584/kWh * $0.0558/kWh * ($0.0203)/kWh * Financial Model-Template Fischer-Tropsch » :.+-1$14.29/mmBTU $1.86/gallonFuelSourcesGasificationMunicipalWaste Coal:ry 8 oui 70 $6.25/mmBTU { |Combustion $4.17/mmBTU Gas Turbine Natural Gas 2 $9.00/mmBTU Diesel :$22.92/mmBTU : Tidal Solar $204.25/mmBTU.| Direct Combustion-CHP oo $18.56/mmBTU X Wind $24.61/mmBTU.- Geothermal .Leo -.$17.10/mmBTU Hydroelectric:ao "$16.36/mmBTU Conservation/efficiency improvements $(5.93)/mmBTU JetA Naphtha FT Diesel Electric kWYT $0.072/kWh $0.6971/kWh $0.0633/kWh $0.0840/kWh $0.0584/kwh $0.0558/kWh ($0.0203)/kWh 12 Rapid Option Selection ¢Determine the technology option which will deliver a usable fuel that meets the local needs at the lowest cost. 13 Rapid Deployment.for Economic Development Identify local companies that can provide deployment or support. Support Power Sales agreements where appropriate Identify and develop financial institution relationships =State =Private ="Public 14 Stakeholders °Local Input ¢Elders ,¢State of Alaska ¢Thought Leaders ¢Governor's office ¢The passionate ¢Legislature ¢Native Entities °AEA ¢News Media *DNR *Utilities *DEC ©APA *DCCED ¢Electric *RCA ¢AHFCeTransportation 15 ¢Engage both public and private sectors in identifying a solution -AEA Team Resources -Travel to each sub-region -Term contractors -Entrepreneurial Business training -Financial Institutions -State of Alaska financial support 16 Schedule:Alaska Energy Plan identify fuel usage fEuel cost by areal Evaluate technology Rapid Selectio }Cap.O&M Costs -Feedback.. aes a=22 gs aaa Jan Feb Mar Apr May Jun July Sep Oct Nov Schedule:Alaska Energy Plan Jan Feb Mar Apr May Jun July Sep Oct Nov 17 Current Status ¢Identifying local fuel needs ¢Evaluating technology | ¢Planning regional trips 18 Questions ??? Contact Information: Alaska Energy Authority 813 W Northern Lights Blvd. Anchorage,Alaska 99503 (907)771-3073 www.akenergyauthority.org 19 CONFIDENTIAL -AIDEA Position Paper On February 1,2008 the Northwest Arctic Borough (Borough)submitted a written proposal to the Alaska Industrial Development and Export Authority (AIDEA or Authority)to purchase the DeLong Mountain Transportation System (DMTS)for $106 million.On February 14,2008 the Borough formally presented the offer to the AIDEA Board ("the Offer'. Summary It is the recommendation of AIDEA staff that this Offer be declined as discussed below.The Staff recommendation is based on both financial andpolicy considerations and the key assumption that any transaction to sell or otherwise transfer ownership of the DMTS away from AIDEA should result in AIDEA's financialposition and credit worthiness being preserved at pre-transaction levels.Below,we summarize the reasons why we believe the Borough's Offer fails to meet this threshold: Financial -the financial analysis reviews the current impact of the DMTS on AIDEA and assesses the impacts of the Offer. o Revenue:As of December 31,2007,the AIDEA-Teck Cominco contract had a present value to AIDEA of $348 million.The Borough's Offer significantly undervalues the contract. o Outstanding Debt:At the time of the Offer,AIDEA had $113 million of outstanding debt related to the DMTS.If AIDEA no longer owns the DMTS this debt must be assumed by the new owners or repaid.The Borough's Offer does not adequately address this issue. ©Book Value:The State of Alaska,through AIDEA,has invested over $265 million of funds in the DMTS,which had a book value of $247 million as of June 30,2007.Accepting the Borough's Offer would result in 2 substantial write-off of the asset. o Credit Strength:AIDEA's ability to carry out its mission is based on its financial and credit strength which directly impact the rates AIDEA sets for its loan programs and the rates it can achieve on AIDEA debt in support of development projects.Accepting the Borough's Offer would weaken AIDEA's credit strength and increase the cost of funds associated with AIDEA's programs. Policy -In our discussion below we raise policy issues that we believe deserve consideration. o State economic development investment:The DMTS represents a significant investment of Statewide resources both in terms of direct equity investment and a large allocation of AIDEA's credit capacity.This has created cash flow which AIDEA has used to support programs Statewide and to support the Dividend program.Importantly,the Borough has also seen substantial regional development and revenue arise as a result of State ownership of this State-funded asset. AIDEA 4-7-08 1 CONFIDENTIAL -AIDEA Position Paper oO Method of sale:Clearly,the DMTS is a valuable State infrastructure asset.If the State determines that from a policy standpoint,it makes sense to consider a disposal of the DMTS,staff believes that a range of sale methods should be reviewed;the goal being to ensure that any transaction reached reflects the market value of the asset while ensuring that State policy objectives associated with such a transaction are met. Financial Analysis Methodology There are a variety of ways to assess the financial impact of the Offer on AIDEA.To do so,the key DMTS financial drivers must be identified and analyzed.These include the cash flows associated with the DMTS contract,the AIDEA debt that funded the project and a look at the overall impacts of these on AIDEA both before and after a hypothetical transaction.In evaluating the Borough's offer,AIDEA completed analysis of the following (some analysis was provided by AIDEA's financial advisor,Western Financial Group): e Compared the Offer to the value of the projected revenue stream from the AIDEA-Teck 'Cominco contract (the Contract). e Examined the Borough's valuation of the Contract and compared it to AIDEA's valuation. e Compared the Offer to the amount of debt outstanding. e Compared the Offer to the book value of the project. In several of these analyses,assumptions were made as discussed below relating to revenue drivers and discount rate used to translate future dollars into 'present value'terms. Value of Contract Tolls paid to AIDEA,usage and maintenance requirements are specified in the 50-year Contract between AIDEA and Teck Cominco.AIDEA retained Western Financial Group (WFG)to compute the present value of these tolls.The Borough retained Northern Economics (NE)for the same purpose.Both entities valued the DMTS at the present value of the cash flow AIDEA receives through the Contract. The revenue streams (tolls)that arise from the Contract include: e the Minimum Annual Assessment and Supplemental Minimum Annual Assessment (including fixed fee and tonnage based components); e¢aContingent Escalator for Zinc Price Increases;and AIDEA 4-7-08 2 CONFIDENTIAL -AIDEA Position Paper a Contingent Tonnage Fee which is generated when concentrate tonnage exceeds the allowable base. Both valuations reached similar conclusions,with a few notable variations in assumptions and methodology.These are described as follows: NE subtracted yearly debt service from the annual revenue stream,thus reducing net revenue and arriving at #ef present value (NPV)not present value (PV).If AIDEA were to sell the DMTS without the buyer assuming the debt,the outstanding debt would need to be paid concurrently with the sale.Since the purchase Offer did not include an assumption of AIDEA's debt,subtracting debt service from the annual revenue stream results in inaccurately representing the present value of the Contract. NE used a higher discount rate than the rate used in the WFG valuation.NE selected a 6.5%discount rate whereas the 4.26%used in the WFG valuation is the five-year average historical rate of AIDEA's investment returns. NE used different throughput and future zinc price assumptions.The NE report did not detail their assumptions,but the use of different assumptions is not unexpected. NE used projected tolls only through 2031.The Supplemental Minimum Annual Assessment runs through the life of the agreement,to 2040.WFG's analysis extends through 2040. The NE report arrived at a net present value of $169 million,however,when debt service related to the outstanding bonds is added back into the calculation,an adjusted valuation of $264 million is derived.As mentioned,WFG computed the present value of the Contract to AIDEA as $348 million.If the WFG valuation is adjusted by using NE's discount rate of 6.5%(instead of WFG's assumed discount rate of 4.26%),WFG's adjusted valuation would be $280 million.The difference between these two adjusted valuations is only $16 million,which most likely arises from different revenue assumptions and the different analytic time horizons.Nonetheless,the two reflect a similar conclusion that the revenue stream from the contract is worth,at a minimum,between $264 and $348 million dollars,while the Borough has offered AIDEA $106 million.It is important to note that none of the above valuations include any future development of additional resources. Offer vs.Outstanding Debt Coverage If ownership of the DMTS is transferred away from AIDEA,the existing bonds will either have to be repaid,or if the new owner is a qualified governmental owner,the existing bonds could be assumed by the new owner.Regardless,the economics must provide for the debt.Either AIDEA must be paid a sales price large enough to both retire its existing DMTS related debt and be left with net sales proceeds large enough to offset the loss of its future Contract revenue,or the Borough AIDEA 4-7-08 CONFIDENTIAL -AIDEA Position Paper must be in a position to provide for repayment of the debt in addition to compensating AIDEA for the loss of its future Contract revenues.The Borough's Offer does neither. Offer vs.AIDEA Book Value AIDEA has invested $265 million in the DMTS:$180 million for the original project and $85 million for the 2000 expansion.The June 30,2007 net book value of the DMTS was $247 million. Accepting a $106 million offer for the DMTS would result in a book loss of $141 million. Credit Worthiness The ability of AIDEA to carry out its mission of economic development and job creation in the State is directly tied to its ability to obtain competitive rates in the credit markets.In determining their assessment of AIDEA's credit strength,the rating agencies look at four main factors,each of which is important to AIDEA's current (A1/A)ratings: 1.The strength and performance of the development project portfolio -Currently,the DMTS remains the sole development project producing a substantial net revenue stream which supports bond repayment.Acceptance of the Offer would effectively remove the development project program from the equation. 2.Overall quality of and diversity within AIDEA's loan programs -The agencies review the strength and diversity of the loan portfolio from a range of perspectives.Higher borrowing rates associated with these programs and a greater concentration of repayment risk associated with the loan programs (i.e.if development projects no longer contribute to the ratings analysis)will increase the agencies risk assessment of the loan portfolio. 3.Size and composition of AIDEA's investment portfolio -AIDEA's investment portfolio provides liquidity and ongoing cash flow to support bond security. 4.Confidence in the management of AIDEA by staff and the State of Alaska.The agencies have a favorable view of how the State and AIDEA manage their credit position and the historically conservative and sound financial decisions that have been made.The State's and AIDEA's strong ratings are reflective of this.One of the biggest credit concerns,over the past years,has been whether the State would let AIDEA continue to operate profitably or whether the State would drain important resources from AIDEA for other purposes.The Dividend Policy was developed to address some of these concerns.A decision to sell a significant portion of AIDEA's assets at below market value,leaving AIDEA worse off financially,would not be a favorable credit development. Accepting the current offer would negatively affect all of the above criteria and could well trigger a downgrade to AIDEA's credit ratings.This would raise borrowing costs for both AIDEA (owned AIDEA 4-7-08 4 CONFIDENTIAL -AIDEA Position Paper projects)and for those borrowers who utilize the AIDEA loan programs and could reduce AIDEA's ability to participate in any future development projects. Policy Issues State Economic Development Investment The State of Alaska has unique challenges in terms of bringing balanced and diverse economic development to a wide range of geographic and economically different regions.As a result,AIDEA was created as a public corporation of the State ofAlaska whose purpose is to promote,develop,and advance the general prosperity and economic welfare of the people of Alaska,to relieve problems of unemployment,and to create additional employment by providing various terms of financing. The DMTS is itself a great example of the ability of the State,investing State equity through AIDEA,to generate economic development throughout the State.AIDEA's ownership of the DMTS was an investment to mitigate risk and promote economic development in an area of the State with historic low employment opportunities.When the Red Dog Mine was originally contemplated,Cominco Alaska,the original mine operator,did not have the financial strength to build all necessary infrastructure to develop the mine and ship the ore.To support and encourage mine creation,the State of Alaska created and capitalized AIDEA's Economic Development Account,among other things.In exchange for assuming this risk and providing capital investment, the State,through AIDEA,receives long-term benefits by job creation in the area and a reasonable rate of return on its investment;additionally a regional tax base was created to benefit the Borough. Support for the Borough It is important to note,that the DMTS and the Red Dog Mine have provided an economic foundation to the Borough.The mine supports jobs and a local government revenue stream that enables residents in the region to become more self-reliant.The Borough has collected $64 million in payments from the mine in lieu of taxes through 2006.The 2007 estimated payment to the Borough was $10.8 million. The State has also supported the Borough's desire for additional funding.In 2003,an amendment to the Contract settled a disagreement with Teck Cominco concerning the timing of sharing of tonnage sensitive distributions.The settlement removed considerable business uncertainty for Teck Cominco and in return,Teck agreed to provide additional funding to the Borough for school construction.This arrangement was agreed to by AIDEA. Method of Sale As a general matter,State policy with respect to disposition of assets has been to conduct an open and competitive process in order to ensure that a market price is obtained and that any State policy conditions or goals with respect to the sale are spelled out clearly in advance.Further,in recent AIDEA 4-7-08 5 CONFIDENTIAL -AIDEA Position Paper years a number of state and local governments have successfully sold or otherwise disposed of cash flow producing infrastructure assets in response to an increased interest in this asset class among a range of investor groups.If the DMTS were to be considered 'for sale,'to ensure that AIDEA achieve maximum value and that the State's strategic objectives drive the process,the concept of sole sourcing and negotiating with a single entity should be examined and a competitive process should be considered. Conclusion Staff recommends that the Borough's Offer be rejected for three principal reasons: 1.The Offer is significantly below the value of the DMTS. 2.The impact this sale could have on AIDEA's ability to fulfill its mission of economic development in the State. 3.The DMTS is a Statewide asset funded with State equity and debt through AIDEA.It has resulted in a balance of economic benefits focused on the Borough's region and the State in general. AIDEA 4-7-08 6 Project Overview Alaska Energy Plan -Alaska Energy Authority Project Goals ¢Reduce the cost of energy to Alaska ¢Rapidly identify and deploy solutions ¢Complete analysis by December 2008 Deploy solutions as soon as identified. Project Results °Identify and deploy energy sources that are vertically integrated,economic,long-term stable priced,and sustainable. Guiding Principals Provide energy in a form that can be used in existing infrastructure. Evaluate costs on a delivered basis. Use low-profit business structure. Minimize risk of technology failure. Engage Alaskans in the solution. Seek the lowest cost energy to each community. GCEP Global Exergy Flux,Reservoirs,and Destruction 34000 Atmospheric Reflection 162000 0.06 wind EnergyAtmospheric.Solar Absorption (T;GOwaves WaveRadiation0Energy 62500 Extra-Solar Radiation Ocean Thermal Gradient Absorption =)0.36 5000f8600041000BSES,EvaporationSurfaceIncident 30 Seatering 43000Prsurtace Heating cious 1.2 Traditional Biomass 0.15 Commercial Biofuels b 3.7 Tides 90 Photosynthesis 3.5 Ocean Tides 30 zo”antswaren)0.0005 Buy L ¢),2 Solid Earth =.;Tides Methane Hydrate 5.0 oi on F S Ssc LTT} 3 p=]gz 2 Geothermal Enero 200 Z3 «3.2 Gas 1£10 2)beuterium 7.2 'Hydro-SurfaceelectricityReflection F Rivers 0.016 Solar Energy 1000 ZI \=3.6 Coal Uranium Nuclear Fuel 300 ya)}360000 2)Thorium .Seawater ¢f,Uranium 'f° Noe Ses eee eeeee eens]Pewee 32 Crustal Thermal=Energy 1.5&7 ZJ Thermal Kinetic iN ©)NaturalExergyDestruction <a Exergy Accurnulation[23](#102!3)Radianon Gravitational "-)Human Use for Energy Services ="=Exergy Flux [TW](=1012 W)- Rxer Sy he the usetul portion Of energy that allows us to do work and perform eneray services.We gather exergy from energy-carrying substances in the naturalenergyworidwecailenergyresources.While energy le conserved,the exergetic portion can be destroyed summarizes the exergy reservoirs and ftows in our sphere of theirinter and the and «destruction.Because the choice of energy9worldp and Prepared by Wes Hermann and A.J.Simon of have may assist in efforts to decouple energy use from environmental damage. Global Climate and Energy Project at Stanford University (http://gcep.stanford.edu} SRL AC STORCADE So mMRTE RITA Pm ts Regions-Regional Educational Attendance Areas 0%70 or :::ree enti poe oven aeta nee ranepape Kunhonnam REAR. SR pctBei oe BE:PE ALASKA: @R_ENERGY AUTHORITY Miles:é 140 210 280 -. Identify the current fuel usage and costs ¢Initial Usage estimates ="Bulk Fuel Loan data =Tank Sizing estimate:1,000 gallons per year per person. ="PCE participation ="Crowley deliveries =Enstar ¢Determine the current cost of fuel St Selawik-Energy Flow Model FUEL ONLY 240,831 gallons Petroleum 109,157kWh =Wind 327,000 gallons Petroleum 229?Petroleum Selawik Yearly Energy Total:$2,590,296. Residential Base per household Electric |$4,541 |$6,025 Space Heating a ee: $10,566 Yearly Total LJ [Community Facilities Transportation || Annual Income per Household $27,000. 40%of Household Income for fuel |]Commercial | 38 Technology Evaluation ¢Technology Assessment ¢General Cost Estimates °Capital Costs °Operations and Maintenance Costs 54 Potential Technologies and Fuels Hydroelectric Wind Solar Tidal Wave - Biomass Geothermal Municipal Waste Conservation Natural Gas Propane Coal Diesel Coal Bed Methane Nuclear Gasification Fischer-Tropsch 7 (0 Locally Available Fuel Supplies Visits to each sub-region to listen to locals on available energy sources. Size for the local need Determine energy delivery method. Develop energy production costs Develop energy delivery method and costs. 3 I! Financial Model-Template Fischer-Tropsch ..+>$14.29/mmBTU $1.86/gallonFuelSourcesGasification Municipal WasteCoal:-$1.92/mmBTU |” Biomass:$4.17/mmBTU $6.25/mmBTU -}Combustion Gas Turbine Natural Gas $9.00/mmBTU | .Diesel $22.92/mmBTU Tidal Solar ”§$204.25/mmBTU Direct Combustion-CHP $18.56/mmBTU Wind $24.61/mmBTU Geothermal $17.10/mmBTU Hydroelectric:$16.36/mmBTU Conservation/efficiency improvements $(5.93)/mmBTU JetA Naphtha FT Diesel Electric kway $0.072/kWh $0.6971/kWh $0.0633/kWh $0.0840/kWh $0.0584/kWh * $0.0558/kWh *($0.0203)/kWh >¢ Avr Rapid Option Selection ¢Determine the technology option which will deliver a usable fuel that meets the local needs at the lowest cost. F [3 Rapid Deployment for Economic Development Identify local companies that can provide deployment or support. Support Power Sales agreements where appropriate Identify and develop financial institution relationships =State ®Private° =Public °Local Input Stakeholders e State of Alaska°Elders *Thought Leaders ° ¢The passionate ° *Native Entities °*News Media °Utilities e APA e Electric e Transportation Governor's office Legislature AEA DNR DEC DCCED RCA AHFC AS *Engage both public and private sectors in identifying a solution -AEA Team Resources -Travel to each sub-region -Term contractors -Entrepreneurial Business training -Financial Institutions -State of Alaska financial support rib Schedule:Alaska Energy Plan [identity fuel usage fFuel cost by areal valuate technology]Rapid Selection iCap.-O&M Costs 'Feedback:| J oe "h 4 **"vs 7 oe ™Ne pee =amsieneanitysBeReCaoyEve2OPaangwoofyt | &.®watts Jan Feb Mar Apr May Jun July Sep Oct SF/t Current Status ¢Identifying local fuel needs ¢Evaluating technology ¢Planning regional trips 13/8 Questions ??? Contact Information: Alaska Energy Authority 813 W Northern Lights Blvd. Anchorage,Alaska 99503 (907)771-3073 www.akenergyauthority.org YZLo)"aie"aeca ENERGY - CONSERVATION TRUE »"Bur sn rhe Page 2 of 19 /Ri edia |}Page 13 of 19 saccharides, and 4 or ely.Sugars J)or ketone n-oxygen tive.Most |ifformto 7”, | .A notable x H OH On 1 uggests,has CSveroses disaccharide of glucose (left)and fructoserideswithright),important molecules in the body. result from by ss of a molecule of water (H,O)per bond.oyoay 5PaDATE:4-10-08 Thursday board meeting To:AIDEA-ADA Board Meeting From:Paul D.Kendall Non Sequenced -Random Outline Points for Discussion or Consideration -- |would like to play some role in Alaska's new energy future-perhaps to track all of the hydrogen players,their progress,projects,products and their inter-connections ... Ah,A New Society,an Energy Based Society of the Future,so much to do and so little time to do it- 5 years ? The next great new societies will not be led by a messiah or alien intervention;Rather, OUR NEW OR NEXT GREAT SOCIETIES WILL BE ENERGY BASED SOCIETIES---they will have defined the next generations and applications of viable energies,who owns those energies,the transmission and distributions of those energies,the PRIORITY of access and obligations;along with the true and actual cost impacts/profits formulas.....pdk Alaska could overnight become a virtual "ATLANTIS RISING of ENERGY”the real new energy frontier of today,tomorrow and for a long time forward....!Pdk "Alaska -The Atlantis of Energy” ELECTRICITY AND HYDROGEN ARE OUR future backbone FUELS ..AND NATURAL GAS WILL HELP TRANSITION OR JUMP START THESE FATHER AND MOTHER ENERGIES !pdk Look up home refueling stations for natural gas and hydrogen gas.(Phill by Fuelmaker-a product.) Hydrogen gas is a full circle (or cycle}fuel;a Genesis fuel;a Female fuel in that it is a birth and life sustaining fuel!Or energies !There is no such thing as Water!This is a term of "distraction of awareness..”,There are only many various hydrogen compounds with various contaminates,particles or associations.....a laymen's terms..pdk ---What's up 2?WATTS,WATER,AND WASTE..!pdk ---CONSERVATION ==YEA WELL,,this is one of those partial truths..and yet one of the greatest lies and distractions of all.....ask me!pdk Those who endeavor in Nuclear and Coal at this time will only make Alaskans'natural energies and Alaska,more valuable,so don't evengo there (unless someone else foots the bill and you control the project and even then its suspect...."The fossil fuels distribution network system,and associates” based economy which is based upon hydrogen is dying-ask me!) %:er/NewcoPage [2 ***NEED A 3 DAYON CAMERA PUBLIC ENERGY SUMMIT,CONFERENCE,INVENTORY,REVIEW, DISCUSSION HELD HERE IN ANCHORAGE......NOW!flush out all sectors BEFORE JUNE !**** Alaska needs a 24 -7 state wide video channel,,With robot camera ability ----very,very important! Really a must have,and now!Future holds an exponential and cascading increase in the need of importance.....pdk COMPREHENSIVE OVERLAY : GOOGLE PARTNERSHIP WITH COMPREHENSIVE ACETATE AND COMPUTER OVERLAY -NOW|!(careful how you do this..Google should bring it (their assets)to the table because of our energy innovative importance in the world and our energy which they may need very soon)..this overlay is very important..|think..a gut feeling.....! (the overlay should contain many overview views..Rivers,Lakes,Streams,Geothermal,Volcano,Wave, Wind,Roads,Mining Sites,Communities,Electrical Lines,Pipelines,Resource Deposit Locations,Water lines,hydroelectric sites potential,existing and underway,railroad,ocean temperature changes, inclines,all major users of energy-all,fault lines,etc.....because were looking for clusters of applications and..) ALL CAPITAL OUTLAYS $$$S$SHOULD GO THROUGH SOME FORM OF PUBLIC REVIEW...there is so much money being wasted..and if we can identify this waste,it usually will also open up another perspective of how we can do business in a better way....WEATHERIZATION PROGRAM,conservation,$500.00 rebate,pce program,lihea,etc.....You have to let go of,keep,and redirect the money for: Lihea,PCE,weatherization,and any other reimbursements for energy aberrations! Very heavy prison penalties for public betrayals....And absolute must for a fast moving economy ..Firing A REALLY GOOD MISSION AND DIRECTIVE STATEMENT OF WHERE YOU ARE GOING AND WHATS UP!And I cant wait to see this mission statement..|will enjoy the read very much! You have to break out several sectors of energy.All things energy,home and public education program are a must,...ACTUALLY you should break out all sectors of Water,Air,Waste,Electrictiy, Natural Gas,Gasoline,Diesel,Hydrogen,Propane,etc...This new society based on energy real,ready to go and reserved "at the flip of a switch”will most likely talk energy in all languages and in all applications,distributions,generations,obligations,transmit ions,etc...they will most likely all interconnect..in relationship to amounts of how,when,where,who,for what,how long,etc... "aun Pag |3 --YOUR PRIORITY SHOULD BE CLEAN WATTS,WATER AND WASTE TO SINGLE FAMILY HOME OWNERSHIP AND RENTALS...THEN ALL ELSE..... -----WE MUST REDESIGN FORMULAS FOR ASSESING DATA....ALL DATA AND FORMULAS MUST BE BASED UPON: AMOUNT #OF SINGLE FAMILY HOMES OWNED #OF RENTAL UNITS WATER USED,ETC.. This needs to be teased out....Because it is a large discussion and may need several inputs..... DUPLICATION OVERLAY DEPARTMENT-due to what appears to be many entities working on overlapping projects there is a stepping on each other to get permits,right of ways,meetings,etc.which some one might want to bring under one roof to minimize efforts... The state might want to establish a section of newspaper on an annual add price cost and use it as a means of notifying others of meetings,broadcasts,and other public notifications because there could be a lot of meetings in many sectors simultaneously;and this way everyone would be on the same page at the same time and know where to look to stay up to date to see broadcasts of meetings and to be held events,etc........ It is my personal feelings that Alaska must establish its independence over local energy development distribution,and marketing control now...Surely you realize what the Henry Hub Pricing, FERC,and some other control bodies real purpose is!!!ALASKA must secure its independence over its energy development now.... COUECCCCCEULCCCCCCCCCCLCCCEEECCLCCECECCCECCCLCCCECECCCECECLECECLECCCE 4 (2to4,or more)Dynamic Simultaneous Evolving Economies (Very difficult place to be) --Fundamental Society Infrastructure Needs -(Alaska and its people society and stability) --Outsider Resource Revenue Developments and Marketing Based Needs --permanent fund or revenue investment and distribution management --As an Energy base society |expect large amounts of R and D and Storage Sector In addition,there may need to be division into RURAL,TRANSITION and URBAN divisions.This is one of the reasons |think we need the Acetate Overlay...ask me -1E.To sell power to mining,natural Opportunities of miniature,small,medium and large scale energy projects... Please note that it is imperative that the citizens own all assets |!Without any equivocation by any entity in partnership with Alaska.There must be a declaration of understanding by all partners on an annual basis of this recognition,understanding,and conveyance......!Never again will we ask a company if they agree if we own the resources..NEVER ! *THE CHINA FACTOR ----REALLY HUGE IF YOU CAN PUT THIS TOGETHER -REALLY HUGE AND HUGE !! CHINA TRILLIONS OF DOLLARS....HTH!!! --CHINA LINE --CHINA STEEL -ALASKA LINE -ELECTRICLE INTERTIE GRID LINE --CONOCO-PHILLIPS LINE -RAILROAD LINE (not major roads?) --china labor (ask me ) -WATER LINE --HYDROGEN LINE --MULTIPLE HYDROELECTRIC PROJECTS INTERCONNECT LINES --HUGE SUSITNA DAM ? --STORAGE FACILITIES, --MCKENSIE POINT BRIDGE --Geothermal Projects --LEGISLATURE IN MAT-SU AREA (this is very,very important because Juneau cannot hold us up on this.This new --MULTIPLE ENERGY PROJECTS You must replace all gasoline,diesel,and natural gas as soon as possible with electricity and hydrogen fuels for financial reasons....Explanation needed... CCCCCCCCCECCCCLLCCCLELITLL Copies --Air cars --BP and GE to build 15 in a decade Hydrogen Power plants agreement ??suspect !Coal and Sequestration -This is significant for several reasons..and this begs questions....Iceland,California,Aust -New Hydrogen Energy Corporation with Rio Tinto --Innovateck ---very interesting ---if it works and we can have |;Then we are off and running into the next society --Chevron connection and only do Partnership projects ?? --Rio Tinto..Hydrogen Energy Corp.. --BP WIND farms under way now..CO,WY.ND.2-TX,CA --BP hydrogen refueling stations-bejing,+illinois,fla,mich,calif,+ --Major Free Market oil companies involvement in many universities and research labs in nearly every country ....WHATS UP WITH THIS ?? --Hydrogen --Ames laboratory electrical generation... Paga [5 --1981 --241 page study "Hydrogen use in Alaska” THE POINT of some of the above examples of one oil company investments is --WHY NOT ALASKA ??2???WHY ARE WE NOT DESERVING OF THESE PROJECTS WHICH EQUAL MANY MEGAWATIS of energy AND TECHNOLOGIES AWARENESS ?? CECUCECUCECCCCCCECCOLECECEECCELCEECCCELEEL Thank you for the opportunity to testify and accepting my written comments.If |had only two choices to make to happen right now,out of all of the above considerations they would be a few quick hydroelectric projects and a (citizens owned)state wide 24/7 video channel with cameras. If Alaska is able to undertake this new moment in history which is here now,the need to communicate across all sectors at all times in all areas will be nearly imperative!it is said that nearly 85%of all learning is done visually... |suggest there are two normal means of learning;one is educational which takes time and if you have to repeat it,lots of time; The other,is from trauma,or cataclysmic/catastrophic event impacts whose outcome is usually fast and unpredictable.....Real time representation,with Clear,simultaneous large public bodies of Communications capabilities are critical to this New Alaska Energy Based Society..... And finally,in closing,|am not sure people realize how powerful an ENERGY BASED SOCIETY WILL BE. The ability of Alaska to reach over and flip a switch to acquire vast amounts of electrical energy which moves at the speed of light to be applied to manufacturing,lighting,living,exploration,etc.,is huge...especially with the fast approaching hydrogen economy and at the same time other vital resources coming under pressure to be relieved or cleaned up.... Alaska's ability to invite,solicit,coax,entertain,choose,or compete for the futures new industries, commerce,citizens,professionals,investment and research capital,will be of historical proportions; And along with an intelligent and far sighted revenue investment strategy coupled with new energies materials and professional capabilities awareness... Well,,,,your children will be in a very special place,which hopefully,will reflect the sacrifices their mothers and fathers made in coming to "Alaska,The Last Frontier'to be a more free people.(and you cannot be free without the "Life Sustaining Energy Needs of Clean Air,Clean Water,and Clean Energy)w Thank You,Again Paul D.Kendall 907-222-7882 msg Date:3-30-08 TO:Anchorage Daily News --letters to the editor alt whyibCotWe7 While thinking about our supposed energy crisis |have concluded that all things of a society come from single family home ownership and rentals.Roads,essential services,amenities,churches,schools,free enterprise,commerce,trade,sports,food production,family,sexual identities,work,sharing,and other values,neighborhoods,community,languages,gender roles,politicians,military,hospitals, governments,etc..All viable societies originate from homeowners and rentals. For us to have a dwelling,(homeownership or rental)we have to have Clean Air,Clean Water and Clean Energy,which are "Life Essential Energy Needs”!We all require these "Life Essential Energy Needs”and without them we die in somewhere around three minutes to five days. Well now,If you take into consideration Around 1980,it was estimated Alaska had 47%of the power 'generating potential of the entire lower 48 states'undeveloped power, --that Alaska supplies vast amounts of energy to mainland USA,Japan and other places, --Alaska has literally,thousands of potential hydroelectric dam sites, --hundreds of trillions of cubic feet of gas deposits, --many geothermal possibilities, --many wind,tidal,wave,river turbine sites, --many ocean,barge,and land based heat exchanger plant sites, --a huge Hydrogen Gas production potential from water,ANWAR and Natural Gas, --vast deposits of mineral resources, --our 40 billion dollars in savings with a projected 5 billion dollar oil windfall income ; And then you think about our --absentee State Capital and Legislature located in Juneau land, --our double dipping and /or part time "citizens'representatives”political system . --With no 24/7 Alaska citizens owned and operated television channel for us to communicate with each other and watch events --our school districts,social services,and campaign process expenditures reflecting symptoms of a failing and flailing status?.2 eo)ee CUNO MO --and no mandatory long term prison time for public officials who betray us by less than honorable conduct --and the lack of "feel the love”openness and understanding from our worlds largest energy providers about their operations and obligations to us Alaskans; ican only conclude that; We in Alaska do not have an Energy Crisis;What we have is a multi-sectored leadership,management, accountability,content and State Vision of our future Crisis! -"FfeetPewahof?AIL AIM CC ve 4'oa onjceyAaoD ¢ This leadership and vision crisis,when viewed in proportion to our large and rich potential,is just HUGE; Especially when you think about all the things we could be....or be doing;Or could become overnight as amore free people,community and a state. Paul D.Kendall or (Will Free asapenname)907-222-7882 Date:4-2-08 To:Anchorage Daily News -letter to the editor From:Paul D.Kendall ENERGY IS THE BUSINESS OF MEN!AND A VERY SERIOUS BUSINESS IT IS; IT IS ENERGY ON WHICH ALL FACETS OF OUR FREEDOMS,OUR LIVES AND COMMERCE DEPEND; MOST IMPORTANTLY OF ALL;ENERGY AFFECTS THE VERY MOMENT TO MOMENT LIVES OF ALL OF OUR MOST CHERISHED AND LOVED ONES;OUR WIVES,OUR CHILDREN,AND OUR HOMES. IT S THE NATURE OF MEN TO MAINTAIN ORDER,TRANQUILLITY,AND OUR FREEDOMS BY HOLDING OTHER MEN ACCOUNTABLE FOR THEIR ACTIONS BY MEANS OF THE MOST SERIOUS OF CONSEQUENCES FOR THOSE MEN WHO BETRAY THE PROTECTION AND WELFARE OF THOSE WHICH WE MEN CHERRISH THE MOST;OUR FREEDOMS AND OUR LOVED ONES.In i es) THERE !S NO GREARTER BETRAYEL,THAN FOR ONE MAN OR GROUP OF MEN TO DENY TO,OR COVET FROM,FOR INDIVIDUAL PROFIT,OUR ENERGY OR POTENTIAL ENERGY NEEDS BY OUR LOVED ONES IN ORDER TO LIVE. THE TIME HAS COME FOR MEN TO RETURN TO BEING MEN;TO SETTLE DOWN OUR SOCIETIES BY RESOLVING AND SETTLING "OUR LIFE ESSENTIAL ENERGY NEEDS”OWNERSHIP AND OBLIGATIONS; PERIOD ! THE LONGER WE MEN,EACH OTHER,US MEN,CONTINUE TO DENY OUR RESPONSIBILITY FOR THIS LONG OVERDUE "LIFE ESSENTIAL ENERGY NEEDS”ACCOUNTABILITY; THE MORE ASSES WE ARE GOING TO HAVE TO KICK;AND,THE BLOODIER IT tS GOING TO GET! (will free) Paul D.Kendall Anchorage,AK 907-222-7882 msg. Now cell 306-3591 Article 8 Natural Resources Article 8,Sections: .Statement of Policy .General Authority .Common Use .Sustained Yield .Facilities and Improvements .State Public Domain .Special Purpose Sites Leases .Sales and Grants 10.Public Notice 11.Mineral Rights 12.Mineral Leases and Permits 13.Water Rights 14.Access to Navigable Waters 15.No Exclusive Right of Fishery 16.Protection of Rights 17.Uniform Application 18.Private Ways of Necessity §$1.Statement of Policy It is the policy of the State to encourage the settlement of its land and_the development of its resources by making them available for maximum use consistent with the public interest. §2.General Authority The leg- islature shall provide for the utilization, development,and conservation of all natural resources belonging to the State, including land and waters,for the maximum benefit of its people. §3.Common Use Wherever occurring in their natural state,fish, wildlife,and waters are reserved to the people for common use. §4.Sustained Yield Fish,forests, wildlife,grasslands,and all other replenishable resources belonging to the State shall be utilized,developed,and maintained on the sustained yield principle,subject to preferences among beneficial uses. §5.Facilities and Improvements The legislature may provide for facilities, improvements,and services to assure greater utilization,|development, reclamation,and settlement of lands,and to assure fuller utilization and development of the fisheries,wildlife,and waters. §6.State Public Domain Lands and interests therein,including submerged and tidal lands,possessed or acquired by the State,and not used or intended exclusively for governmental purposes, constitute the state public domain.The legislature shall provide for the selection of lands granted to the State by the United States,and for the admin- istration of the state public domain. §7.Special Purpose Sites The leg- islature may provide for the acquisition of sites,objects,and areas of natural beauty or of historic,cultural, recreational,or scientific value.It may reserve them from the public domain and provide for their administration and preservation for the use,enjoyment,and welfare of the people. The Alaska Constitt §8.Leases 1 provide for the l issuance of permit: any part of the publ therein,-subject concurrent uses.Lei provide,among 01 payment by the par or injury arising f with terms govern and for forfeiture in of conditions. §9.Sales and Gra provisions of this se may provide for the lands,or interests t. sales procedures.Al contain such reserv: all resources as n Congress or the Stz for access to these re of access shall not the owners'use,pr trespass,or precluc damages. §10.Public Notic leases of state lands. shall be made wi notice and other saf interest as may be p §11.Mineral Rig] appropriation shal establishing a righ' reserved to the Sta date of ratification by the people of AL: location under the Prior discovery,loc prescribed by law,sl right to these mine reliaatti LE NORTHERN FORUM MEMBER REGIONS e <4 Faroe istandsDENMARK ©The Northe 1 Forum 06.20.2006ny Current member region Current member city Pending member region Paul D.Kendall GE Ens: 907-222-7882 NG r£§ -;-.News Relaacs Jf J ©,iy 74 vi ,,fe](yo: ,. .JY Ap Cortteybd khour Coal!pry gy hy.rdle 02 Whorrrtt6ee |gf AS _GE AND BP FORM ALLIANCE TO DEVELOP AND DEPLOY We 9 HYDROGEN POWER TECHNOLOGIES 90 Percent Carbon Capture and Sequestration for Power Plants Using Fossil Fuels UNIVERSAL CITY,CALIF.-May 24,2007-GE and BP have formed a global alliance to jointly develop and deploy technology for at least five power plants that could dramatically reduce emissions of the greenhouse gas carbon dioxide from electricity generation. Jeffrey Immelt,chief executive officer of GE,and Lewis Gillies,chief executive officer designate of BP's new Hydrogen Energy joint venture,announced the alliance agreement today a at GE's ecomagination®"Green is Universal”Media Day,focused on the next generation of ryah gcleantechnologyandinnovativeecomaginationpartnerships.Today's announcement builds from <a140 the preliminary agreement reached by GE and BP in 2006.Sove-_ GE and BP's global alliance will work to facilitate the development,demonstration and full integration of gasification and power generation technology into hydrogen power projects. These projects combine power generation from fossil fuels with carbon capture and storage to deliver commercial-scale power generation with 90 percent of the carbon in the fuel -which otherwise would have been emitted to the atmosphere as carbon dioxide -captured and permanently stored deep underground.In some cases,injection of captured carbon dioxide into oil reservoirs for storage also may result in the production of otherwise unrecoverable oil.For these enhanced oil recovery applications,the carbon dioxide has significant valuc,which helps -more- make carbon capture and storage economically viable.For hydrogen power projects to be able to compete effectively in the electricity market,they would require appropriate policy support and a regulatory environment that recognizes and encourages the low-carbon benefits they can deliver. Initially,the companies expect to work together to apply GE's proprietary gasification and turbine technology to the development of five hydrogen power plants that would use petroleum coke or bituminous coal as feedstock.As a first step,BP and GE would expect the apetroleumcoke-fuelled project being planned at Carson in California,where Edison Mission =,-s!\,ere .7 Energy \s Hydrogen Energy's partner,to use GE technology.In addition,GE Energy Financial Services will have the opportunity to invest equity in projects offered by BP. "This alliance combines the expertise and resources of two industry leaders to ee demonstrate that our companies'leading-edge technologies can produce low-carbon power from 8s fossil fuels for commercial applications in a manner that is efficient,reliable and economical,” % said John Krenicki,chief executive officer of GE Energy."These technologies,combined with policy support from governments,will ensure it happens now,changing the way we envision our global energy future.” "Hydrogen power with full-scale use of carbon capture and storage offers a very real possibility to help meet the world's increasing demand for energy while limiting our impact on the environment,”said Lewis Gillies."To help make these projects a reality,leading companies like BP and GE will have to work together to use the experience of developing real projects to further develop the technology and help drive down its costs.” BP recently announced its intention to form,subject to regulatory approval,Hydrogen Energy,anew company to be jointly-owned with Rio Tinto,to identify,build and operate -more- Nahydrogen power plants with carbon capture and storage.On completion of the company's GE and BP -through Hydrogen Energy -will apply their world-leading technologies, project experience and assets to optimize the integrated design of hydrogen power projects.The collaborative effort will draw upon the companies'technologies and experience in areas such as coal gasification,reforming technology,gas turbines and carbon capture and storage. Each commercial-scale hydrogen power plant is expected to generate about 500 megawatts of electricity -enough to power approximately 325,000 U.S.homes.One of these 500 megawatt power plants,fed by coal with 90 percent carbon capture and geological storage, would be expected to capture around four million tons of carbon dioxide a year --the same amount as would be achieved by removing 615,000 cars from the road in the United States. In addition to the complementary nature ofthe technologies and experience ofthe two companies,the global reach of each of the partners further strengthens the collaboration.GE's operations in Houston and BP's and Hydrogen Energy's operations in London will form the core groups for the hydrogen power technology collaboration.Be Notes to editors: e A hydrogen power project takes a fossil fuel,such as coal or natural gas and converts it into hydrogen and carbon dioxide.The hydrogen-rich gas is used as the fuel gas to generate electric power from turbines in a power plant.The carbon dioxide is captured, transported and stored safely and permanently in deep geological formations such as oil and gas fields.By combining hydrogen power generation with carbon capture and storage in one integrated project,90 percent of the carbon dioxide in the fuel is captured so that it does not enter the atmosphere and a substantial step is made towards tackling the climate change issue. e BP has already announced that it is developing plans for two hydrogen power plants. The first proposed project is a 500-megawatt hydrogen power plant at Carson in southern California.BP,and partner Edison Mission Energy,would take petroleum coke,a refinery by-product and synthetic form of coal,to create hydrogen.The plant would -more- capture and store some four million tons per year of carbon dioxide.The second project for which studies have begun would be a 500-megawatt coal-based project to be built alongside BP's Kwinana refinery in Western Australia.About four million tons a year of carbon dioxide would be captured and stored in an offshore deep geological formation. Final investment decisions on these planned projects have not yet been taken. e GE Energy (www.ge.com/energy)is one of the world's leading suppliers of power generation and energy delivery technologies,with 2006 revenue of $19 billion.Based in Atlanta,Georgia,GE Energy works in all areas of the energy industry including coal,oil, natural gas and nuclear energy;renewable resources such as water,wind,solar and biogas;and other alternative fuels.Numerous GE Energy products are certified under ecomagination,GE's corporate-wide initiative to aggressively bring to market new technologies that will help customers meet pressing environmental challenges. e Hydrogen power fits with the spirit of ecomagination,the GE corporate commitment mn to address challenges such as the need for cleaner,more efficient sources ofenergy.22 Ecomagination technologies already launched by GE in the energy arena include DO products that generate electricity through the use of renewable,biogas or waste gas Rx technologies,high-efficiency and lower-emissions gas turbines and engines and cleaner 33coaltechnology.os e BP (www.bp.com)is one of the world's largest energy companies,with 2005 profits of some $22 billion,a presence in over 100 countries and 97,000 staff worldwide.BP's main businesses are in exploration and production of oil and gas,refining and marketing of oil products and the transportation and marketing of natural gas and power.BP's low- carbon power business,BP Alternative Energy,combines the company's interests in __--->_hydrogen power,photovoltaic power,wind power and natural gas-fired powergeneration.BP also has extensive experience in pipelines and the management of oil and gas in geological formations,power generation,petrochemicals operations and in carbon capture and storage technology. e BP's interests in the existing planned projects and the newly announced Kwinana project are expected to transfer to Hydrogen Energy on completion of its formation, which is subject to regulatory approval. HHH For more information,contact:<3 GE Energy BP press contacts seErikaAndersonDavidNicholas150 GE Energy BP Press Office WA +1 518 385 0933 +44 (0)20 7496 4708 aSerika.anderson@ge.com nicholdh@bp.com Ss. Howard Masto Masto Public Relations +1518 786 6488 howard.masto@ge.com 'Friday,May 18,2007 CGAnchorage Dally News a VENTURE:Compant®initially will look into | hydrogen-fueled power. The Associated Press LONDON --Oil produc- er BP and miner Rio Tinto will be working together to devel-op clean power projects aroundtheworld,the companies said Thursday. "orjoint venture will initially ing,”said BP Chief Executivefocusonhydrogen-fueled pow-Tony Hayward.er generation,using fossil fu-BP said that previously an- els and carbon capture and stor-/nounced hydrogen-fueled pow- age technology to produce new er projects in Peterhead,Scot- large-scale supplies of clean\land,and Carson,Calif,will be- electricity. "Projects such as these have the potential to help deliver the carbon -emission reductions which companies and countries around the world are now seek- |MONEY Rio Jinto uniteto develop clean energy projects ness,will be chief executive of Hydrogen Energy and PeteriformerlyheadofbusinessevaluationforRio Tinto,will become chief finan- come part of Hydrogen Energy.based in Weybridge in southeast Rio Tinto will make a cash pay-England and will initially have amenttoBPofabout$32 million,staff of 75 transferred from the subject to post-completion ad-parent companies. Lewis Gillies,formerly headThenewcompanywillbeofBP's hydrogen power busi- justments. 2/2 7009Hycleogéfuélfowkloc. oT °e foe (Innes rlaREmoreNetar neg2882-2zz-Epuoysoe£06 ay |-)he / (7\ VA 4?geVestasReceives \BP,WPL Orders',eVestas,a Denmark-alone wind turbine manufacturer,has re- ceived an order for 182 units of the V82-1.65 MW wind turbine from Houston-based BP Alternative Energy North America Inc. The turbine order includes the supply and commissioning of the wind turbines,with delivery of the units beginning in the third quarter of 2008,Vestas says. BP Alternative Energy's wind portfolio includes the opportunity to develop almost 100 projects with \e yall (:potential total generating capacityof15,000 MW.According to Vestas, this order will add 300 MW to the company's wind portfolio in the U.S. Vestas adds that Wisconsin Power and Light Co.also has placed an or- der for 41 units of the V82-1.65MW turbine.The turbines are to be in- stalled at the Cedar Ridge Wind Farm in the Townships of Eden and Empire in Fond du Lac County,Wis- consin. Delivery will begin in the first quarter of 2008,and the project is expected to be completed by the end of 2008,Vestas adds.The order in- \ cludes supply and commissioning of the turbines plus a two-year service and maintenance agreement.:¥P beESety.|Kh met bah Co feeteky bet /|_pec h-o7 BP Plans Five "1WindFarms° BP Alternative Energy North America Inc.,a wind project devel- oper under BP PLC,has announced that it expects to begin construction on five wind power projects in the U.S.in 2007. According to BP Alternative En- ergy,the projects are expected to\deliver a combined capacity of ap- proximately 550 MW.Construction is currently underway on the 300 MW Cedar Creek project,a develop- ment venture between BP Alterna- tive Energy and Babcock &Brown, in Weld County,Colo.The 274 tur- bines that the project calls for will be erected on a 32,00U-acre Site.Ac- cording to Governor Bill Ritter,D-Colo.,who supports the wind farm, it will create up to 250 jobs and has the capacity to power 120,000 homes. The remaining projects include a 65 MW wind farm in North Dakota, a 60 MW joint project with Clipper Windpower in central Texas,a 100 MW project in western Texas,and the Yaponcha wind power project in California.The Yaponcha project consists of repowering an existing wind energy facility in San Gorgonio ass -the company expects the facil- ity to have a capacity of 20 MW. "Our 2007 build program sur- pakses our target and does so a year 3 %rg(nusWOEXySewenedsxa0/fCCMfoahead of schedule,”says Robert ) Lukefahr,president of BP Alternative vy Energy."It is a testament to the cal-=iber of people working in our busi-'\ ess and the opportunities in the & U.S.wind sector.”X- BP Alternative Energy adds that >NVSNa$3y2SeSYahYomchSSfose38ALS NO aa a > Y 4 Q -Fan :>Wa,. ""SOQ 472 2p ac t plans to deploy 150 MW of Clip- per Liberty wind turbines in the projects as part of the supply and joint development agreement it en- tered into in 2006 with Clipper Windpower. «Hydrogen Energy -Home -What we do -Abu Dhabi hudrogen energy **°%RSS Sa ae ”Pay Re ware Introduction Hydrogen gas would be used to fuel gas turbines and generate 420MW of low-carbon electricity.This project alone would provide more than 5%of all Abu Dhabi's current power generation capacity at a cost equiv ww2 The CO2 would be transported and injected into a producing oil field and used to replace natural gas that is currently being injected into the oil field to maintain pressure.This natural gas could then be used either domestically or for export.This process could be deployed at scale and release a significant amount of additional natural gas for Abu Dhabi and the United Arab Emirates. The CO2 injected into the oil field could also enable previously unrecoverable oil to be produced.If this technology was widely deployed it could boost Abu Dhabi oil production by some 1-3 billion barrels.As the oil is forced out the CO2 would remain Abu Dhabi Future Energy Project Click here if you'd like to listen to the video in Arabic. California project The largest hydrogen-lired power generation facility of its type in the world. The California project N/ ,foe:/stored securely and permanently beaneath the oil field's rk Cad FY aed e ree(natural impervious seal. rane oe be .rate reafe .Dt Bevenyt 2, we tee OTpoepet >LJbAr fhypytirl (fe C -ae Ese vue XaSencayyh Wratsend pve hve Pe "et nme or)faved:a http://www.hydrogenenergy.com/FullStory.aspx?m=5 1 Frees Boreiaeef EMBL."=pore nt Oe cael "Apiieg Kwinana project The world's first coat industrial-scale p integrated with carbon The Kwinana project Page|of 2 .3 wyNNO28NNS¢&NX ' £8 can3:ansLR i) SSNe , 4 > Y M\3 S 9 aN a SSQ 3/30/2008 a NeeHydrogen Energy -Home )hydrogen energy Clean energy plant for Abu Dhabi 21 January 2008 -Masdar,Abu Dhabi's initiative for renewable and mh RSS = \Carboridioxide {7'Captured and}3*"Stored (tonnes)WeeeadSSEdaleAait"oy.31 March 2008 f 12:29GMT)©.ia 3gi ee he WARReSh Me BK a, alternative energy and clean technology,and Hydrogen Energy,today announced the signing of an agreement to work together on the front- end engineering design of an industrial-scale hydrogen-fired power generation project with CCS. The Abu Dhabi project Media Latest press releases and speeches: Masdar and Hydrogen Energy Plan Clean Energy Plant in Abu Dhabi -Arabic version 21 January 2008 Masdar and Hydrogen Energy Plan Clean Energy Plant in Abu Dhabi 21 January 2008 BP tops list of 100 most accountable 14 November 2007 Rio Tinto Offer for Alcan -additional shares acquired 05 November 2007 EA and BP Collaborate on Low Carbon Power Education 10 October 2007 PaulS072:Zokendall Our projects Hydrogen power is set to become one of the most important sources of clean energy. :California'project a"ed7Thelargestfiydrogen-tred 'power generation facility of its type in the world. http://www.hvdrogenenergy.com/default.aspx?m=2 Page 1 of 2 3/30/2008 er!InnovaTek's 3 proprietary © cross-flow micro-channel reactor THE INNOVAGEN®Fuet PROCESSOR The proprietary technology of the InnovaGen®fuel *Reforms multiple fuel types without cokeprocessorcatalyticallyconvertsfuelstogenerateformationfor0.5-§kW PEM or solid oxidehydrogen.It incorporates our patented sulfur-tolerant catalyst to reform renewable and petroleum- based fuels and then purifies the product using an advanced membrane to produce clean hydrogen. This technology is designed to be used with both solid oxide and PEM fuel cells for portable,auxitiary,¢Micro-technology improves system efficiency fuel cells. ¢Membrane option provides pure H2 output for PEM fuel cell enabling higher power densities and no potential for electrode poisoning. residential and vehicle power.The device may also and reduces size through optimized thermal be used as a stand-alone system for hydrogen management,chemical kinetics,and fluid production from biodiesel,vegetable oil,ethanol,dynamics. gasoline,diesel,natural gas,or propane.*Flexible reforming options include steam reforming,auto thermal reforming,or CPOx es ra beer ¢X-Tek™micro channel reactor &heat exchanger www.tekkie.com/innovagen.htm technology ¢Innovajet™fuel injector/atomizer (patent pending) ¢iTek™sulfur-tolerant steam reforming catalyst (patented) ¢InnovaPure™hydrogen-permeable membrane provides H2 purification for PEM fuel cells InnovaGen®5 Prototype System The fuel flexible InnovaGen prototype is currently available for testing with strategic partners. The InnovaGen is capable of reforming tiquid or gaseous fuels and generating hydrogen- rich reformate for a solid oxide fuel cell,or pure hydrogen for a ' PEM fuel celt.uO a fuicniand 1M LOOKS LO MaKe UYULURTIL ULL Yul LUG1d 101 VULINieiaL Yow wre WU RUBY betta ee wang cnnea2: - cheveee http://www.tekkie.com/news/news_12-21-06.asp Sad A Richland company has partnered with Cheyronta develop technology that may give servicestationstheabilitytocreatehydrogenfrombiodieselandotherliquidfuelsonsite. The privately held company will get $500,000 from Chevron Technology Ventures LLC,a subsidiary of Chevron Corp.,to see if it can come up with a low-cost way to turn fuel into hydrogen using the company's proprietary fuel processing technology for commercial hydrogen production and purification. "We've already proven the feasibility of the process,"said Patricia Irving,InnovaTek founder and chief executive officer."They are funding us to determine if it's commercially viable.” The company's "InnovaGen"micro-channel reactor --a square piece of steel the size of a slice of bread that weighs less than a pound --has amazing powers.It can turn diesel,vegetable oil, glycerol,gasoline,propane and virtually any liquid fuel into hydrogen that can be used to power fuel cells. Although there are only a handful of vehicles on the road right now running on fuel cells,it is an emerging technology with distinct benefits. Fuel cell vehicles powered with pure hydrogen emit no pollution or greenhouse gases --only water and heat.The cars also are more energy efficient than those with traditional internal combustion engines --and they're quieter. Several transit systems in California are using some fuel cell buses,as well as some companies, like DaimlerChrysler,which have demonstration vehicle programs. In addition,Ford,Honda,Hyundai and Toyota have fuel cell prototypes they are testing,and Mercedes-Benz recently rolled out its 2007 F-Cell --a subcompact car that uses fuel cells powered by hydrogen. But the cars aren't without challenges.The buses used in transit programs are on fixed routes and have frequent access to hydrogen.But car designers still are trying to figure out how to store enough hydrogen onboard the vehicle to allow it to travel as far as a conventional car would ona full tank of gas. Case in point --the Mercedes F-Cell:While it gets 57 miles per gallon,it can only hold enough fuel to drive 110 miles per day,which wouldn't get a Tri-City driver to Seattte. And it might be difficult to find a place in Ellensburg where you can fill up with hydrogen. 4/6/2 Biodiesel Magazine Page 3 0, which is something we can also use,we have been focusing on liquid fuels,”Irving says."That includes things like biodiesel,vegetable oil and other renewables.” =4 The fuel processor works by combining two feeds,one of a hydrocarbon and the other of water,in a catalytic reactor."We use microtechnology to scale down the system into something that can be held in your hand,and produce hydrogen that can be fed directly into the fuel cell,”Irving says."Rather than using a huge plant thatOreENGReeeTecaneproduceshydrogenthatiscompressedintocylinders,our device can be integrated directly into the fuel ceil as ,a component of an overall system.”\Using renewable sources of hydrogen makes the technology more environmentally friendly."Depending on ; where the hydrogen gas comes from,over its life cycle the system still may produce pollutant gases,”Irving says."That's where biodiesel comes in.Innovatek's main philosophy is sustainability.We have been in - business for 10 years now and that was our goal from the start.That goal of sustainability requiresrenewables.Our future objective is to see our reformers used with renewable fuels like vegetable oils and 1 biodiesel.” Fuel cells can operate at many different scales,from portable devices to equipment that's large enough to power an industrial facility.Irving says the InnovaGen can provide fuel for just about any size application,but the company is focused on smatiler applications."The focus of our work has been more in the range of 1 kilowatt to about 50 kilowatts,”Irving says."Because of our microchannel technology our competitive advantage is in applications that require small footprints or portability.We can scale up in much the way computers now scale up,by adding to the number of microchips rather than making the unit bigger and bigger.We just add more microchannels to scale up the system.” By using liquid fuels,the fuel processor makes fuel cells practical in places far from the plants that produce commercial compressed hydrogen."Getting hydrogen to the point of use is an issue,”Irving says."Right nowthatisdonebyusingtruckstohaulthecompressedgascylinders.With a liquid fuel like biodiesel,the fuel canbetransportedusingourexistinginfrastructurejustlikegasolineanddieselfuel.”Irving adds that liquid fuelshaveamuchhigherenergydensitythanacompressedgassuchashydrogen,that is,the same volume of biodiesel can generate more electricity than a similar volume of hydrogen.A higher energy density means thatthetransportationcostsforthefueltogenerateagivenamountofelectricityarelower. View Sidebar Articles 1 2 Next Page --> View Entire Article Search This Article http://www.biodieselmagazine.com/article.jsp?article_id=2125 4/6/2008 Jobs een as =ore Sane caneywwmyI22oeae-tittai KendallPayy222-7882 Keegies 99th AOGS Annual -ob.Meeting&Expo - May 18-21,2008 S "I 7Seattle,WA,USA http://Aqqual_Mta.zocs.org Your Global Fats and Oils Connection The downside of fuel cells is that until recently,they were expensive.This limited their use to specialized applications,such as powering space craft including the shuttle and the International Space Station.However, with research and innovative manufacturing techniques the price of fuel cells has fallen to the point where they Irving .ws a are competitive in many applications including replacing <->Previous Image |Next Image -<>batteriesin back-up power systems."Fuel cells are a being used all over right now,”Irving says."They could be used more than they are now if a source of hydrogen could be made more available.They are being used now,but they have many,many,many more potential markets in the future.” Fueling the cells,however,remains problematic.Hydrogen must be stored at high pressure to be economical,andis explosive when released.Most hydrogenis also manufactured from natural gas,meaning thatultimatelyit's not a carbon-neutral fuel. One way to solve the problem of transporting and storing hydrogen is to make it on the spot.The process for making hydrogen is fairly straightforward.A hydrocarbon is heated with steam at high pressure and temperature to form hydrogen and carbon dioxide,a process called steam reforming.Usually this is done in large production plants."What Innovatek has done is scale that plant-that large plant-down to something that is actually portable,”Irving says. Innovatek's device is called the InnovaGen fuel processor.It uses microscopic channels and proprietarycatalyststocontinuouslyproducehydrogenfromavarietyofhydrocarbonsources."Rather than natural gas, http://_..w.biodieselmagazine.com/article.jsp?article id=2125 _ e- Page 2 of 4 4:7,2008 _«diodiesel Magazine Aay, From the March 2008 Issue Paul p.Kengs.907--Power Without the Burn _ Sacdesel is packed with power,Burning it in an engine is just one way Of extracun:$ boasecunnovetek Inc.has come tip with an alternative to Getat biodeschs entry ce.°roves rouldg morc madera abot commedity in tha electricity qeneratisa make by Jerry W.Kram The energy in biodiesel is typically released by combustion,or more simply,by burning it.The combustion of biodiesel runs engines that propel cars and trucks,power industrial equipment or generate electricity.Diesel engines are more efficient than other internal combustion engines,but they still waste a lot of energy as heat and, if not tuned properly,can emit particulates and other pollutants.One alternative for converting biodiesel and other biofuels into useful energy is a technology once almost exclusively associated with the space program,but is rapidly finding more uses in everyday life-the fuel cell. Fuel cells capture electricity from chemical reactions,somewhat like a battery.Unlike a battery,fuel cells run off a fuel-hydrogen-and oxygen from the air,and can produce electricity as long as the hydrogen is flowing.Fuel cells are nearly silent and don't produce any exhaust except water.Fuel cells are also efficient at turning chemical energy into electrical energy,says Patricia Irving,president,chief executive officer and founder of Innovatek Inc."Fuel cells have been receiving a lot of attention because they are more efficient than conventional technology,”Irving says. "Fuel cells operate differently than internal combustion engines and therefore do not have those efficiency losses.” The downside of fuel cells is that until recently,they were expensive.This limited their use to specialized applications,such as powering space craft including the shuttle and the International Space Station.However,withresearchandinnovativemanufacturingtechniquesthepriceoffuelcellshasfallentothepointwheretheyarecompetitiveinmanyapplicationsincludingreplacingbatteriesinback-up power systems."Fuel cells are being used all over right now,”Irving says."They could be used more than they are now if a source of hydrogen could be made more available.They are being used now,but they have many,many,many more potential markets in the future.” Fueling the cells,however,remains problematic.Hydrogen must be stored at high pressure to be economical,and is explosive when released.Most hydrogen is also manufactured from natural gas,meaning that ultimately it's not a carbon-neutral fuel. One way to solve the problem of transporting and storing hydrogen Is to make it on the spot.The process for making hydrogen is fairly straightforward.A hydrocarbon is heated with steam at high pressure and temperature to form hydrogen and carbon dioxide,a process called steam reforming.Usually this is done in large production plants. "What Innovatek has done is scale that plant-that large plant-down to something that is actually portable,”Irving says. Innovatek's device is called the InnovaGen fuel processor.It uses microscopic channels and proprietary catalysts to continuously produce hydrogen from a variety of hydrocarbon sources."Rather than natural gas,which is something we can also use,we have been focusing on liquid fuels,”Irving says."That includes things like biodiesel,vegetable oil and other renewables.” The fuel processor works by combining two feeds,one of a hydrocarbon and the other of water,in a catalytic reactor."We use microtechnology to scale down the system into something that can be held in your hand,and produce hydrogen that can be fed directly into the fuel cell,”Irving says."Rather than using a huge plant that produces hydrogen that is compressed into cylinders,our device can be integrated directly into the fuel cell as a component of an overall system.” Using renewable sources of hydrogen makes the technology more environmentally friendly."Depending on where the hydrogen gas comes from,over Its life cycle the system still may produce pollutant gases,”Irving says."That's where biodiesel comes in.Innovatek's main philosophy is sustainability.We have been in business for 10 years now and that was our goal from the start.That goal of sustainability requires renewables.Our future objective is to see our reformers used with renewable fuels like vegetable oils and biodiesel.” http://www.biodieselmagazine.com/article-print.jsp?article_id=2125 4/6/2008 Scandinavian Hydrogen Highway Partnership sam +me SRE"ar tw :ee RNS nme eASCANDINAVIAN'HYDROGEN HIGHWAY PARTNERSHIP see http://www.scandinavianhydrogen.org/scandinavianhydrogen.html Photo Byginar Kruse,ZERO Start |SHHP |Working Groups |The Stations [- "Making the Scandinavian Region one of the first regions in Europe where hydrogen Is available and used in a network of refuelling stations.” The SHHP constitutes a transnational networking platform that catalyses and coordinates collaboration between three national networking bodies - HyNor (Norway),Hydrogen Link (Denmark)and Hydrogen Sweden (Sweden). Furthermore,the collaboration consists of regional clusters involving major and small industries,research institutions and local/regional authorities. Sponsors g)nordacen A)norden Nordic Energy Research Nordisk fnnovationsCenter Partnership Coordinators HyNor °Myerogen,sweden nire RYOROGEN Link ContactNews|Vehicles =f Everts |Links | Join SHHP Do you want to know more or join the SHHP? Contact the network in your country or the SHHP Secretariat: info{at}vatgas.se Ambition for 2015 A network of Hydrogen stations: «15 stations »30 satellite stations A large fleet of vehicles *100 buses +§00 cars +500 speciality vehicles News Opening of hydrogen refuelling stations in Denmark On the 11th of June 2008 no less than six hydrogen refuelling stations will be opened in western Jyliand.A number of fuel cell vehicles will be taken into operation at the same time.Not all the stations will be open for public use,as some of them will be used for private special vehicles.Read more on Hydrogen Link Denmark www.hydrogeniink.net/hydrogenlink/vestiyliand asp Webdesign:Xtrovert Media NWhizo JJ Jiang AVIS OV TALE (bb z to MWalba 0 Ppl 0 KGL 1 of | [ew /VEEb Lape Wuhy ThEWZ(V OF US ° 3/16/2008 3:45 PM LirrLe CYCLONES END SEVEN-GAME LOSING SKID See SPORTS,C1 TRIBUNEWhe'Mek 00k CBB Liat ow phir ff |VOL 136 -No.302 ][_20s,sony courry,ow «|]'WEDNESDAY,=23,2004 50¢| Cutting-edge eHel Kea cla tlHilKeEvallnergy Proposed wind and hydrogen plant for Ames would be world'sfirst By BETH ANDERSON staff Writer The Ames Laboratory is proposing to build the world's first wind and hydrogen ener- gy plant in Ames under a three-way partnership with the city and lowa State University. Tom Barton,the director of the Ames Lab,went betore the Ames City Council Tuesday to seek support for a project that INSIDE:ANGRY CROWD OF HOMEOWNERS CONFRONTS COUNCIL OVER SIDEWALKS. Page AS could provide inexpensive electricity for the city,be a source of hydrogen for research and place Ames in the international spotlight for renewable energy. "Tt could be a win-win-win deal.”Barton said. The council unanimously approved a motion to move the project forward,directing staff to work with the Ames Lab. The proposed project would erect two wind turbines in west Ames that would pro- vide electricity by converting water to hydrogen. But the Ames plant will go beyond the standard wind tur- bines because of its ability to store energy using under- ground hydrogen fuel cells as "batteries,”Barton said.The hydrogen could then be recon- verted into electricity on demand. With the go-ahead from the city,the plant could be up and tunning within 18 months or less.he said. ENERCY picase see page A8 Energy:Continued from page Al Major funding for the proj- ect would likely come from the U.S.Department of Energy, which is working on a 'White House mandated Hydrogen Fuel Initiative to develop the technology needed to find a practical and inexpensive waytoconvertwaterintohydrogen fuel. Barton gave no cost esti- mate for the proposed Ames project,but said that each ofthethreeenutieswouldplaya part in its creation.ISU will be asked to provide land for the project,possibly 0,keydal Paul D.Kendall907-222-7882 Tune Trigune, Federal funding likely/23/ok Hal kévoe one of the university farm sites north of Lincoln Way on County Line Road. The city would acquire all needed permits and allow con- nection to the intercity power gnd,according to the proposal.Because each wind turbine could produce as much as $100,000 worth of electricity a year.it is conceivable that Ames could someday have the opuon to sel!part of the energy to other municipalities,Barton said. The energy plant would be developed and operated by the Ames Lub,which would use AMES,Lowa the hydrogen produced to con-tinue its research.particularly in a search for a hydrogen hybrid metal.The Ames Lab is a Department of Energy labora- tory operated by ISU on the Ames campus. Its roots go back to the 1940s,when Ames produced more than 2 million pounds of uranium for the Manhattan Project. Staff writer Beth Anderson can be reached at 232-2161,Ext. 353,or at banderson@amestnib.com eee drogen Now!Home Power Articles Page 1 of 1 Nusininronweadve*Moat° Paul D.Kendall907-222-78a 82 Home >What's Available?>Home Power Articles 4 Home a About Us ..-.Water Purification and other electrolysis issues are covered in Home Power # 4 Hydrogen News Solar Hydrogen Production by Electrolysis 3 Hydrogen Facts ...Converting a gas furnace:Home Power #34,Heatin'with HydrogenHowcan}Help? 2 Events Determining how much hydrogen you need:Home Power #32,Hydrogen Ba +What's Available?Hydrogen production system:Home Power #67,Hydrogen Purification +)Hydrogen Links: 9 Us ce |Converting a propane gas stove to run on hydrogen:Home Power #33,Cook: on Hydrogenoa Converting a propane barbecue to run on hydrogen:Home Power #43, Barbecuing with Hydrogen Gas Home Power #59,Hydrogen Storage A Primer on Reversible Fuel Cell/Electrolyzer and a Fun Miniature Electric ¢ Home Power #85,Homebrew Fuel Cell and Hydrogen Electrolyzer Copyright ©2002 Hydrogen Now! Design:David Bartecchi http://www.hydrogennow.org/whats_available/homepower.html 11/6/2007 ng 363 largest US Cities. wi 980s. owih rate 1990s. wth rate 2000-06: ,2007ANCHORAGEDAILYNEWS©www.adn.com/money WEDNESDAY,NOVEMBER 28,20 Renewable (|energy draws ok Googie's eye POWER:Internet company wantstohelpworldmovebeyondcoal. By BRAD STONE The New York TimesEEit///SAN FRANCISCO -Google,the Internetyfewine;;:7,/LV Fy OCS company with a seemingly limitless source of7)c vse revenue,plans to get into the business of find-° po |ing limitless sources of energy./JS NOW Lovk 7Ta (oF The company,based in Mountain View,Ca-lif,announced Tuesday that it intended to de- -2 of a velop and help stimulate the creation of renew-New)ot.OFh#Jou2 Ee!able energy technologies that are cheaper thani-/coal-generated power.OT ¢VHLO Google said it would spend hundreds of mil-"yy 4 lions of dollars,part of that to hire engineers>and energy experts to investigate alternativeaenergieslikesolar,geothermal and wind pow-er.The effort is aimed at reducing Google'sownmountingenergycoststorunitsvastda-ta centers,while also fighting climate changeandhelpingtoreducetheworld's dependence/on fossil fuels. See Page F-6,GOOGLEa);Ve Ipea/fay0.0)NE DLS 0 -_Sino fg Frxvily hone HYDROGEN USE IN ALASKA HEY Project 40902 Final Report SS 24]ery cdroxyTT Christopher F.Blazek Timothy D.Donakowski Martin Novil Edward J.Daniels Prepared by Institute of Gas Technology IIT Center,3424 S.State Street Chicago,Illinois 60616 Date Published -November 1981 ARLIS Prepared for the Adak y POM OUIECES U.S.DEPARTMENT OF ENERGY ao CO AndLibrary*:informuuion Services Anel org,aska STATE OF ALASKA Under Contract No.DE-ACO2-80CS91201 11/81 ;Table ES-1.DEMONSTRATION COMMUNITY COSTS Size or Stage of Project Item Number Cost,*$103 Preliminary In- vestigations None ---- Field Studies None ---- Offsite R&D Appliance Testing 6 month 190 Demonstration Project Phase I Hy Storage 4x 10°SCF 1,600 Fueling Station 1 50 Automobile Conversions 25 50 Three Wheeler Conversions 45 90 Boat Conversions (gasoline)25 50 .Boat Conversions (diesel)15 300 Phase II Alternate Wind Power System ($1100/kW +60 Millse/kW hr)220 kW 240 Electrolyzers (current technology)1600 SCF/hr 100 )Phase III Hz Storage 35 x 106 scr 8,000 - Distribution Systen 400 people 720 Furnace Conversions _100 40 Water Heater Conversions 100 15 Range 100 15 Phase IV Alternative Wind Power System 1900 kW 2,100 Electrolyzers 14,000 SCF/hr 870 Phase V Aiternative Wind Power System 500 kW 550 Electrolyzers 1500 SCF/hr 100 H2 Storage 260,000 SCF 280 Fuel Cell System ($600/kW)150 kW 90 Evaluation None _- Subtotal 14,360 Freight +Contingency (302)4,300 Support Staff _1,030 Total 19,690 *Assumes 1 month etorage. 'nNS TIT UTE OF GAS TECHNOLOGY tat STA MOEA!Sere.Cope:FEIN Fie RA OT Cee OOee,ee ee ree PROCESS TECHNOLOGY ' Paul D.K907-222 Teen /Conocg uses membrane separation to tegover the hydrogen that would _otherwise be lost in hydroprocessing's purge stream K.G.Shaver,Conoco Inc.,Ponca City,Okla., G.L.Poffenbarger,MEDAL,Houston,Texas and D.R.Grotewold,Liquid Air Engineering Corp., Houston,Texas A MEMBRANE:BASED (hydrogen recoverysystem (HRS)"offers a simple,reliable and economical answer to the demandforincreasedhivdrogensuppl.The svs-,tem can deliver a reliable 'supply of 95+%pure Hy from offgas streams "ining from 15%to 80%Hos.The purity level ofamembrane-based hs.o allows maximum versatility in the plant use of recovered H2.Simple,low- cost installation and an advanced,low- .Maintenance design contribute 10 HRS |efficiency and economy. An important application for the .Membrane-based HRS is in connection -with hydroprocessing units.More hydro- gen will be needed when hydroprocessing severity is increased to meet stringent government-mandated product specifica- tions.Traditionally,the hydrogen is sup- plied as a byproduct from_naphtha_catalytic reforming,or as a primary prod- uct from steam reforming of light hydro-carbons.The HRS offers an additional”J supply of hydrogen by recovering the amount lost in the purge stream from ahydroprocessor's hydrogen recycle loop.|A joint venture between Dupont and|members of the Air Liquide Group cre- ated the Medal membrane-based HRS. ! De lenws _ ie ligerd - hia gd Centee Fig.1-View of MEDALmembrane-based hydrogen recovery system. VERE nes recover ->]FI/ hydrogen The process has proven reliable since its startup in December of 1987 at Conoco's Ponca City,Okla.,refinery.The process proved scimarkably cost-efficient:a simple payback was achieved in just 1.7 years. The Conoco experience has demonstrated the profitability of the HRS,which continuously exceeds design specifications for hydrogen recov ery,even with a feed rate variation from 8to20MMscfd.A view of the HRSis shownin Fig.1.Fig. 2 shows the historical feed and hydrogen product stream compositions and Fig.3 shows the historical hydrogen recov- ery rate. ® a Operating benefits.The installation of a membrane-based HRS offers several inherent advantages to hydroprocessing co Lie Taelb Kéadat-- \, From "The Case tor Fuel-Cell-Powered Vehicles" WySOs EE Oia tsWlteeitehamn Fuel-cell-powered golf cart developed at Los Alamos Scientific Laboratory. Air and tanks of hydrogen currently feed the fuel cell,which is enclosed by insulation. The addition of a reformer would permit the use of methanol-water fuel mixture. TECHNOLOGY REVIEW AUGUST 2005 Paul D.Kend907-222 7aan" Image:Microhydro turbine at west java indonesia in 1926.jpg -Wikipedia,the free encycl....Page 1 of2 Image:Microhydro turbine at west java indonesia in 1926.jpg From Wikipedia,the free encyclopedia Paul D Kena , »Image «File history «File links ae nC NAT Rinaiey ohne ers Ts reeSizeofthispreview:800 x 563 pixels Full resolution (987 x 694 pixels,file size:81 KB,MIME type:image/jpeg) Description Microhydro electric power plant at Bandung hingland tea estate have built in 1926. Source self-made Date 1997 Author Sentanu (talk) http://en.wikipedia.org/wiki/Image:Microhydro_turbine_at_west_java_indonesiain1926.jpg 4/6/2008 '}eedSuEnwave -Wikipedia,the free encyclopedia Page |of 2 Enwave From Wikipedia,the free encyclopedia (Redirected from Enwave Energy Corporation) Enwave is a private corporation jointly owned by the City of Toronto and the Ontario Municipal Employees Retirement System and is one of the largest district energy systems in North America. Enwave was formed after the restructuring of the Toronto District Heating Corporation. | ,KendallDeepLakeWaterCoolingSystemP307-222-7882 Enwave's Deep Lake Water Cooling system uses the cold energy from Lake Ontario to cool buildings in downtown Toronto.Some customers include the Toronto-Dominion Centre,Royal Bank Plaza,Metro Toronto Convention Centre and the Air Canada Centre.The system has enough power to air condition 100 office buildings or 32 million square feet (3 million m?)of building space.It is the largest renewable lake source cooling system of its kind in North America. The cooling system is a clean,renewable,and reliable energy source.Compared to traditional air- conditioning,Deep Lake Water Cooling reduces electricity use by 75%,and will climinate 40,000 tonnes of carbon dioxide,the equivalent of taking 8,000 cars off the streets. The lake water serves dual purposes as drinking water for Toronto and as a source of naturally cool energy.Enwave draws water from a permanent,renewable level of icy-cold water (4 °C)83 metres below Lake Ontario.Through a heat transfer process at Toronto's John Street Pumping Station,cold energy from the lake water -but not the actual water itself -is used to air condition major buildings in Toronto's downtown core. This system was officially launched on August 17,2004 at Steam Whistle Brewing,one of Enwave's customers.In support of Deep Lake Water Cooling (DLWC),the launch was attended by actor and renewable energy activist Alec Baldwin,Ontario Minister of Energy Dwight Duncan,Canadian Minister of Human Resources and Skills Development Joe Volpe,and Toronto Deputy Mayor Sandra Bussin, among other business leaders and government officials.The launch was delayed as a publicity stunt by approximately one month to coincide with the anniversary of the 2003 blackout. If Enwave reaches its projected power by 2008 there would be a savings in electricity equal to the usage of 8,000 homes per year. See also »District heating External links »Enwave (http://www.enwave.com/) s City of Toronto:Environmental initiatives -deep lake water cooling (http://www.toronto.ca/environment/initiatives/cooling.htm) Retrieved from "http://en.wikipedia.org/wiki/Enwave" Categories:Power companies of Canada |Cooling technology http://en.wikipedia.org/wiki/Enwave_Energy_Corporation 4/6/2008 -_7a7ue==-a--Gm-=Paul D.Ke:907-229.saga"! MARICULTURE AND OCEAN THERMAL ENERGY CONVERSION STATE-OF-THE-ART ASSESSMENTS A Technical Supplement to OCEAN LEASING FOR HAWAII 70 VAsO?eke f 2YNeM rae)Doaaa 5 }A a " DEPARTMENT OF LAND AND NATURAL RESOURCES STATE OF HAWAII . Paul D.Kk,Sor Bol opga a RS REP (fre how RyEt ne .am yD,we ee pe ASebaFedasrua14Sal2.epee 8 SReR "29FE EVAPORATORtiePieBuiwnteeoewie em |rast:oA Weementye.! +oho eh TURBINE GENERATORS PE a? A pF . ;"i we [eet)ie ate ? :na sem halide TOLER IN 5 Fe FIG.11.ARTIST'S CONCEPTION OF A LOCKHFED OTEC FACILITY -49- VENTILATION DUCTS WARM WATER INLET 4 FORWARD COLO WATER EXHAUSTS D.KendallPagT222-1882 .- -- AMMONIA TANK.woe =) O 2 VENTILATION | '.BOSC CS pucis |ae i]=raheyeaealestosSEPARATORS»|B ;°GENERATO |Pann 6 cwe m oman TURBINE a i H a =eT :e LR =5 am CON evr +°syU|i 1 | -= .PreeIf;Are!¢' ie ,.Uf Ea artcoiw .-*,WATER BALLAST EXHAUSTS TANKS GaTEVALVES 4 WARM WATER EXHAUSTS COLD WATERPLENUMCHAMBER SECOLOWATERPIPE _ oe Paul D.KendOnN7229eae The Kesearch Corporation ; of the|Cn versity ofHawali PROPOSED OTEC FULL SCALE PLANT (AFTER TRW CORP&Ref.20) R.M.TOWILL CORPORATION PLANNERS -ENGINEERS=SURVEYORS -PHOTOGRAMMETRISTS Pau!D.Kendcx"a9 AMMONIA STORAGE TANK iS.SAFETY EQUIPMENT STORAGE DECK /INSTRUMENT HOUSE Nl,HEAT EXCHANGER INSTRUMENTPANEL 'a nae12,COLD WATER INLET a anne, 16 BUOY mh «SUMP 4. 3p:::z$2 BywizyiNiWwSieseo 2?&aBi: >»Feaya@23Beea<oo 2.US,COAST GUARD APPROVE!AND NIGHT LIGHTS D DAYMARKS 1 CONDENSER on IPE LOADMN FIG.12.MINI-OTEC BARGE oNOYrefe ELECTRICITY OUT [| GENERATOR WARM WATER INTAKE Paul D.Kendall907-222-7882 COLD WATER OUTLET €XPANDED VAPOR _TURBINE va EVAPORATOR A Be vsron +) CONDENSER ||Um WARM WATER OUTLET FIG.10.SCHEMATIC OF A CLOSED j/ d J;fo ./[ped ) -45- =) COLD WATEA INTAKE /iD.aada7,fC Gg, CYCLE OTEC SYSTEM oa- ” LLM Ni QE LOSED CYCLE -SCHEMATIC WORKIAG FLUID POWER-- - == -- - - -SS=|OUTPUT GENERATOR 1 EVAPORATORWARM SEAWATER coLoO SEAWATER la CONDENSER FEED PUMP OTHER USES |MIXED DISCHARGE Warm surface seawater is pumped through a heat exchanger (1)where a low-boiling point 'working'fluid such as ammonia is vaporized.The expanding vapor turns a turbine (2)driving an electrical generator (3). Cold deep seawater pumped through a second heat exchanger (4)condenses the vapor back to a fluid which is then returned to the first heat exchanger (1). _OPEN CYCLE -SCHEMATIC - WORKING FLUID WATER VAPOA EVAPORATOR POWER OUTPUT{LLLLLL LLLepMULmaton 2 |GENERATOR CONDENSER SURFACE CONDENSER ae FRESHvACUUMaNWATER ; 7 ouTPuTPUMP=z rit iiil 4 4 DEARATOA "e7OuT COMMENGEA a ;G =4 won a 5 oc .a J &B Y wt a *w#t nA oy 440aoo.aofeCOLDOTHERUSESneragSEAWATER ->werdagMIXED DISCHARGE Open cycle systems use the warm seawater itself as a working fluid.Warm surface water is evaporated under a partial vacuum (1).The low-pressure steam produced turns a turbine (2).driving an electrical generator (3).The steam is condensed,either by direct contact and mixing with the cold seawater (4), or by chilling in a heat exchanger through which the cold seawater is pumped, concensate is FRESH water. In the second case,the 92-0086 | FIGURE 1 Schematic Representation of Deep Oceaa Water Usage in an Integraled system. AIR I CONDITIONING Homes Hotels Busiresses Rese rates-=A ae VATER 14°CSETProPROQUCTION>TE)acricucture |" Potable woter c v OTEC Irrigation ruits4cVegetablesPLANTHuchroons Electricity(Hydrogen)TT Rt - Varn SurFace Fresh oe)-*-2B°C|(Open cycleSeawcter h e4°-28'C P Condensation:ethonol AQUACULTURE A Freon recycling PLANTSCeRecyclingMicroalgaeOLMacroalgaeey6:ANIMALSDG 20'-24°C ->AbaloneSALobsters Oysters Se le ry Shrimpfe(ee fie Ce,6 6 Hirame aie Sea Horses Marine Ornamentals WIE S 'iad PY @ OREPYR2D1FON 13 rer ATR |FRay|b72b-0¥ &LL OF Vertical '*able?vvNinelimilliseadHEnewestideaforharvest- 4 ing the wind is nearly 900 years old.Vertical windmills, like the Wind Tower (left)from Win-/IS daus Turbines of Ontario,can cranknyout50percentmorepowerthan conventional horizontal-mounted designs.Windaus says this is because the blades catch the wind regardless of the direction from which it blows. Although remains of foundations for vertical windmills dating to 1150 have been found in France,it is only with the advent of lightweight com- Posies that the design has becomepractical.|Windaus elieves the inherent-4 iy quiet operation of4 vertical turbines will i{in 12°mph wind.also spur wider inter-Sel est in wind power. eetee a g oe ce Ba, sa, bodytakeRGaXE egaC YIMOdGNIM NVDRIWV HILSON-pling Buuaprsuos stdao esayy "G1Ae urs -aq0} payadxe WOTINAYSUOD YIM 'uononpoid PUIM sexay, 3]qnop IOLLTR OF LONG YFpuads oy syuURM {q'] Jamog esayy 'Auedtuor suayxrtg cAdiaua pum 1oypoosaqoy sur03 $41 pure 'sexay jo ayes ayy40Jpoodaqoy 3u103 S11, 'ssauisng ABIaua PULM ayyUL S}Udt[ [P19A98 sjuasaidar YIyM YayUIg 2 UOSOTEL, WUATJO LAY Seppe uyysis AattoNe Ue EXOT) Aaiy, SABS qesodoid anbsa-suayaigy &st Ajureyta IL, € 2002 ISNONV "sdes ay AUM-JO-WYSt asodind-yenp ®aq pynos Aem-Jo-1Yysi1 WOISsTLUSUeT] JY)YTMES aM, 'Apeaae payoada are S19MO} Sa} aLUOG JOUILUTS ay)jopuaayyAq payayduros aq pynoys a134y) s}y311 pum ayy arinboe 0} suonenoseau sdes JIamsog gsiy8t purm ayy asinbe 0)aq1pynom NIGP sour yanw MOP "$asde YOO'NOT ASO4) UL S}YBII JayeM ay) pauMmo Apeagye ayer Psa 'Aiddns 8ursedino st yymord orayar "sto Soylut OSE INOge sqingns puv sanid Buimois Ajprdes - 4 IY}0} 1a}UM [JasOFSE]LOTsy]"PIR SETTPCT OY)O1 autjadid e pying o) syuem yy 'Auedtuo sua (7 "Adsaua mauut Asuot asouu JO]Bayeut oO) adUrYD Bsaas ABI9Ua PjOUE OUNTIO] & apeul same:NEWANDNOTEWORTHY:: " Nw™ " N& onloeSaee eo © 9 oS 6s CoRR TAwmseemGCDd 2 SG bho a + ES srs 2eiées&-yig Jayjour Aq pauotsiaua urd&UT sJoor SE|OYUM aulOatuOs RYTSf "ayes'svou ay],Ay 3y=wo%s €usgay ' oN. sey qpmsog sdes qrsodoad tuey pubs eu, -somsmau Aputey1a9 st Anpory AAI O00'P &10} Se ' , . y r52a=cosE=5= "= > '[PPMsog ayy wossadsayods samo Psayy urd suayag ysnoy) - aypuryurd ayyutwey oc ; Se] | : ; a , - wo&S28sa4 "a P Q_- skes 'oppurwy jo yraquou saygf Moqe'san Pulm sate] $,Pp1oM aupring Oy STURM a =oa ( . ' , say + ' : 32 sSBS RE?a)g "uno? JapaayM, pue yprydtuayy AeIEy 'SPOqoyp UE SUERUTLO SPXAT. Aarpuaiop ay staid BeBe yess XS '007 ; csp dupiu se3 UVLO "Pp IVYD YNue Os WOUST SMU at eR ew v a) uo sauiqan sv dup se Bur auoog TEae4yyf Bet aenrn tes DS saise 000007 IQ) QOO'T = "SEN times oy S 40-8 au ae > : '47 sasodoidg Sud»)! on on apilegtiss sX2] 104MW 0007 ! A ages ew 3Ban oo Va ; a "yu 223 yPL 'S 44 =Yuaswa]5&=S52Serpe ecors* Bw Nh EE 5 uw%Og2D sess ee eer keSee SeaeBeiscocoagsuegaSau a FSR Ovo Sa . : »any transmission problems,”he says. « Pickens,by who" ” More problematic,says Cox,is the wind turbine shortage plaguing the industry. M the opportunity to sell the wind to Electric Reliability Council Wi Texas could designate the Pan- handle as a Competitive Renewable Energy Zone (CREZ)which would Still,Boswell adds,"I don't think this project necessarily depends on CREZ,but it lends itself to the CREZ In fact,says Cox,transmission shortages -long a serious problem in Texas -may not hamper Mesa Boswell says Mesa Power will look for another company to help pay the $6 billion needed to finance Mi Texas'de-regulated electricity of Texas markets in which rules are Boswell outlined the market con- market,which features some of the ditions that support Pickens'pro- Then the project almost took on a posal,including: life of its own. Once companies see the type of in- vestment he is making,they're going essary transmission development for to be willing to invest in new trans- delivering power from the wind farm to end users in Texas. he is,has enough heft to help solve than in the Southwest Power Pool's provide the funding to support nec- more favorable for recouping costs Panhandle territory,and which translates into better prices highest electric rates in the country for Mesa Wind's product, Power's proposal. process. mission. the farm.He declined to name spe- Yahoo!Mail -pauldkendall@yahoo.com.Page 1 of 3 fA h Mal Tadomais 9 More Make Y!your home page Welcome,pauidkendall Sigr Out Hap WRHC Hi MAIL Search:[Web Search . 1Mail;Addresses Calendar +Notepad MailForMobile -Mail Upgrades -Options Check Mail |Compose ||Search Mail |Search the Web See your credit Previous |Next |Back toMessages score -free Delete |Reply |Forward |Spam |Move... | Folders {Add -Edit];.;This message is not flagged.[Flag Message -Mark as Unread ]Printable View Inbox (314).a ;Subject:RE:Additional Information Draft Date:Mon,20 Aug 2007 07:27:41 -0800Sent Bulk (1292)[empty]From:ee Beau"<Beau.Disbrow@awwu.biz>C3 View Contact Details i}Add Mobile Trash fEmpty]To:"PAUL KENDALL”<pauldkendal!@yahoo.com> My Folders [Hide] Paul,houses Please see the information below.Monthly data will be very time consuming to put housing data together.|hope the information below will suffice.Note:MOA means Municipality of Anchorage. Search Shortcuts Beau My Photos oge | 10 Largest Utility Customer Accounts for 2006MyAttachments(non-MOA) Netflix .. Only $4.99/mo.1.Providence Hospital Find Old Anchorage Hotel II LLC (Hilton Hotel) Friends 2 3.Hickel Investment Co.(Captain Cook Hotel) 4.Seibu Alaska 5.Alaska Regional Hospital 6.Dimond Estates Trailer Park 7 8 9 1 Working?Top schools now online Stephen Mattoon (Woodside Apartments) Steiner Corp (American Linen) .Alaska Native Medical Center 0.MIP Anch Lesse LLC (Sheraton Hotel) 2 Largest Utility Customer Accounts for 2006 (MOA) 1.Solid Waste 892003 (2115 E.15th Ave.) http://us.f535.mail.yahoo.com/ym/ShowLetter?Msgld=7774_15682464_292790_1702_48...8/21/2007 Ne,Yahoo!Mail -pauldkendall@yahoo.com Page 2 of 3 2.Anchorage Jail 2 Largest Utility Customer Accounts for 2006 (State) 1.Ted Stevens Anchorage InternationalAirport2.University of Alaska ,Anchorage 2 Largest Utility Customer Accounts for 2006 (Federal) 1.Elmendorf AFB 2.Fort Richardson From:PAUL KENDALL [mailto:pauldkendall@yahoo.com]} Sent:Friday,August 17,2007 10:25 AM To:Disbrow,Beau Subject:Re:Additional Information Beau,Thank you for the summary of %distributions.. |need to ask you this question or inquiry for the record.Or as an official and formal Inquiry,question or request! Ya ready?Here goes. What are the names and the size of pipe of our cities 3 top water users by: the Month---and how much water used for each and the Year----and how much water is used for each The answer to the above question/s may be used or refered to in public testimony in one way or another! |would hope that if the information is denied by someone for some reason,it will be by a specific order of an individual and referenced by statue or directive. |am trying to find the top and bottom of our usages in our society or community. Thank You, Paul D.Kendall 907-222-7882 ps.Beau,if your are not at the top and responsible for this question,can you please forward this on and let me or show me to whom is the responsible party ?Thanks... Hi Paul, Please see the table below.|have summarized this information from a much larger selection of tables that were not entirely intuitive to follow.|believe this should answer your question as to the percentage of total system water consumed by each customer class. Customer Type MG*%of Total Single-family 3,910.5 47.51% Duplex 412.0 5.01% http://us.f535.mail.yahoo.com/ym/ShowLetter?MsgId=7774_15682464_292790_1702_48...8/21/2007 Yahoo!Mail -pauldkendall@yahoo.com Triplex 91.7.1.11% Multifamily 1,670.9 20.30% TrailerCts 58.9 0.72% Commercial 2,086.8 25.35% Total 8,230.8 100.00% *Millions of gallons Thanks. Beau Page 3 of3 Take the Internet to Go:Yahoo!Go puts the Internet.in your pocket;mail,news,photos & more. Delete |Reply |Forward |Spam |Move... | Previous |Next |Back to Messages Save Message Text |Full Headers Check Mail |Compose ||Search Mail |Search the web | Copyright ©1994-2007 Yahoo!Inc.All rights reserved.Terms of Service -Copyrighv/IP Policy -Guidelines NOTICE:We coilect personal information on this site. To learn more about how we use your information,see our Privacy Policy http://us.f535.mail.yahoo.com/ym/ShowLetter?Msgld=7774_15682464_292790_1702_48...8/21/2007 Sheu, Re in AENS Bord Packak Mike Harper From:PAUL KENDALL [pauldkendall@yahoo.com]Sent:Wednesday,April 09,2008 8:46 PM To:Steve Haagenson Ce:Mike Harper Subject:alaska a new energy based society Attachments:2296 151242-4-9-08 AIDEA meet.doc Gentlemen,please accept and share my written comments for your members at your board meeting. Thank You,Paul D.Kendall Do You Yahoo!? Tired of spam?Yahoo!Mail has the best spam protection around http://mail.yahoo.com Page |1 DATE:4-10-08 Thursday board meeting To:AIDEA ADA Board Meeting From:Paul D.Kendall Non Sequenced -Random Outline Points for Discussion or Consideration -- |would like to play some role in Alaska's new energy future-perhaps to track all of the hydrogen players,their progress,projects,products and their inter-connections ... Ah,A New Society,an Energy Based Society of the Future,so much to do and so little time to do it- 5 years ? The next great new societies will not be led by a messiah or alien intervention;Rather, OUR NEW OR NEXT GREAT SOCIETIES WILL BE ENERGY BASED SOCIETIES---they will have defined the next generations and applications of viable energies,who owns those energies,the transmission and distributions of those energies,the PRIORITY of access and obligations;along with the true and actual cost impacts/profits formulas.....pdk Alaska could overnight become a virtual "ATLANTIS RISING of ENERGY”the real new energy frontier of today,tomorrow and for a long time forward....!Pdk "Alaska -The Atlantis of Energy” ELECTRICITY AND HYDROGEN ARE OUR future backbone FUELS ..AND NATURAL GAS WILL HELP TRANSITION OR JUMP START THESE FATHER AND MOTHER ENERGIES !pdk Look up home refueling stations for natural gas and hydrogen gas.(Phill by Fuelmaker-a product.) Hydrogen gas is a full circle (or cycle)fuel;a Genesis fuel;a Female fuel in that it is a birth and life sustaining fuel!Or energies !There is no such thing as Water!This is a term of "distraction of awareness..”,There are only many various hydrogen compounds with various contaminates,particles or associations.....a laymen's terms..pdk ---What's up2?= WATTS,WATER,AND WASTE..!pdk ---CONSERVATION ==YEA WELL,,this is one of those partial truths..and yet one of the greatest ties and distractions of all.....ask me!pdk Those who endeavor in Nuclear and Coal at this time will only make Alaskans'natural energies and Alaska,more valuable,so don't even go there =(unless someone else foots the bill and you control the project and even then its suspect...."The fossil fuels distribution network system,and associates” based economy which is based upon hydrogen is dying-ask me!) Page |2 ***NEED A 3 DAY ON CAMERA PUBLIC ENERGY SUMMIT,CONFERENCE,INVENTORY,REVIEW, DISCUSSION HELD HERE IN ANCHORAGE......NOW!flush out all sectors BEFORE JUNE |**** Alaska needs a 24 -7 state wide video channel,,With robot camera ability ----very,very important! Really a must have,and now!Future holds an exponential and cascading increase in the need of importance.....pdk COMPREHENSIVE OVERLAY: GOOGLE PARTNERSHIP WITH COMPREHENSIVE ACETATE AND COMPUTER OVERLAY -NOW!(careful how you do this..Google should bring it {their assets)to the table because of our energy innovative importance in the world and our energy which they may need very soon)..this overlay is very important..|think..a gut feeling.....! (the overlay should contain many overview views..Rivers,Lakes,Streams,Geothermal,Volcano,Wave, Wind,Roads,Mining Sites,Communities,Electrical Lines,Pipelines,Resource Deposit Locations,Water lines,hydroelectric sites potential,existing and underway,railroad,ocean temperature changes, Inclines,all major users of energy-all,fault lines,etc.....because were looking for clusters of applications and..) ALL CAPITAL OUTLAYS $$$$SHOULD GO THROUGH SOME FORM OF PUBLIC REVIEW...there is so much money being wasted..and if we can identify this waste,it usually will also open up another perspective of how we can do business in a better way....WEATHERIZATION PROGRAM,conservation,$500.00 rebate,pce program,lihea,etc.....You have to let go of,keep,and redirect the money for: Lihea,PCE,weatherization,and any other reimbursements for energy aberrations! Very heavy prison penalties for.public betrayals....And absolute must for a fast moving economy ..Firing squad.....! A REALLY GOOD MISSION AND DIRECTIVE STATEMENT OF WHERE YOU ARE GOING AND WHATS UP!And |cant wait to see this mission statement..|will enjoy the read very much! You have to break out several sectors of energy.All things energy,home and public education program are a must,...ACTUALLY you should break out all sectors of Water,Air,Waste,Electrictiy, Natural Gas,Gasoline,Diesel,Hydrogen,Propane,etc...This new society based on energy real,ready to go and reserved "at the flip of a switch”will most likely talk energy in all languages and in all applications,distributions,generations,obligations,transmit ions,etc...they will most likely all interconnect..in relationship to amounts of how,when,where,who,for what,how long,etc... Page |3 --YOUR PRIORITY SHOULD BE CLEAN WATTS,WATER AND WASTE TO SINGLE FAMILY HOME OWNERSHIP AND RENTALS...THEN ALL ELSE..... oon--WE MUST REDESIGN FORMULAS FOR ASSESING DATA....ALL DATA AND FORMULAS MUST BE BASED UPON: AMOUNT #OF SINGLE FAMILY HOMES OWNED #OF RENTAL UNITS WATER USED,ETC.. This needs to be teased out....Because it is a large discussion and may need several!inputs..... DUPLICATION OVERLAY DEPARTMENT-due to what appears to be many entities working on overlapping projects there is a stepping on each other to get permits,right of ways,meetings,etc.which some one might want to bring under one roof to minimize efforts... The state might want to establish a section of newspaper on an annual add price cost and use it as a means of notifying others of meetings,broadcasts,and other public notifications because there could be a lot of meetings in many sectors simultaneously;and this way everyone would be on the same page at the same time and know where to look to stay up to date to see broadcasts of meetings and to be held events,etc........ It is my personal feelings that Alaska must establish its independence over local energy development distribution,and marketing control now...Surely you realize what the Henry Hub Pricing, FERC,and some other control bodies real purpose is!!!ALASKA must secure its independence over its energy development now.... CCCCCECCCLCCCCECCLCCCCCCECELCCECCCECECECCCCECCECCCCLCLCLECCCLLCCCCCTL 4 (2to4,ormore)Dynamic Simultaneous Evolving Economies (Very difficult place to be) --Fundamental Society Infrastructure Needs --(Alaska and its people society and stability) --Outsider Resource Revenue Developments and Marketing Based Needs --permanent fund or revenue investment and distribution management --As an Energy base society !expect large amounts of R and D and Storage Sector In addition,there may need to be division into RURAL,TRANSITION and URBAN divisions.This is one of the reasons |think we need the Acetate Overlay...ask me -IE.To sell power to mining,natural opportunities of miniature,small ,medium and large scale energy projects... Please note that it is imperative that the citizens own all assets !Without any equivocation by any entity in partnership with Alaska.There must be a declaration of understanding by all partners on an annual basis of this recognition,understanding,and conveyance......!Never again will we ask a company if they agree if we own the resources..NEVER ! Page |4 *THE CHINA FACTOR ----REALLY HUGE !F YOU CAN PUT THIS TOGETHER -REALLY HUGE AND HUGE !! CHINA TRILLIONS OF DOLLARS....THEN --CHINA LINE --CHINA STEEL -ALASKA LINE -ELECTRICLE INTERTIE GRID LINE --CONOCO-PHILLIPS LINE -RAILROAD LINE (not major roads?) --china labor (ask me ) -WATER LINE --HYDROGEN LINE --MULTIPLE HYDROELECTRIC PROJECTS INTERCONNECT LINES --HUGE SUSITNA DAM ? STORAGE FACILITIES, --MCKENSIE POINT BRIDGE --Geothermal Projects --LEGISLATURE IN MAT-SU AREA (this is very,very important because Juneau cannot hold us up on this.This new --MULTIPLE ENERGY PROJECTS You must replace all gasoline,diesel,and natural gas as soon as possible with electricity and hydrogen fuels for financial reasons....Explanation needed... CCECECCCCOUCCCECCLECCCCCE Copies --Air cars --BP and GE to build 15 in a decade Hydrogen Power plants agreement ??suspect !Coal and Sequestration -This is significant for several reasons..and this begs questions....Iceland,California,Aust -New Hydrogen Energy Corporation with Rio Tinto --Innovateck ---very interesting ---if it works and we can have I;Then we are off and running into the next society --Chevron connection and only do Partnership projects ?? --Rio Tinto..Hydrogen Energy Corp.. --BP WIND farms under way now..CO,WY.ND.2-TX,CA --BP hydrogen refueling stations-bejing,+illinois,fla,mich,calif,+ --Major Free Market oil companies involvement in many universities and research labs in nearly every country ....WHATS UP WITH THIS ?? --Hydrogen --Ames laboratory electrical generation... Page [5 --1981 -241 page study "Hydrogen use in Alaska” THE POINT of some of the above examples of one oil company investments is --WHY NOT ALASKA ?????WHY ARE WE NOT DESERVING OF THESE PROJECTS WHICH EQUAL MANY MEGAWATIS of energy AND TECHNOLOGIES AWARENESS ?? CEUCCLCEECECUCECLECOLECEECCCELECEEOLELECCELEL Thank you for the opportunity to testify and accepting my written comments.If |had only two choices to make to happen right now,out of all of the above considerations they would be a few quick hydroelectric projects and a (citizens owned)state wide 24/7 video channel with cameras. If Alaska is able to undertake this new moment in history which is here now,the need to communicate across all sectors at all times in all areas will be nearly imperative!It is said that nearly 85%of all learning is done visually... !suggest there are two normal means of learning;one is educational which takes time and if you have to repeat it,lots of time; The other,is from trauma,or cataclysmic/catastrophic event impacts whose outcome is usually fast and unpredictable.....Real time representation,with Clear,simultaneous large public bodies of Communications capabilities are critical to this New Alaska Energy Based Society..... And finally,in closing,|am not sure people realize how powerful an ENERGY BASED SOCIETY WILL BE. The ability of Alaska to reach over and flip a switch to acquire vast amounts of electrical energy which moves at the speed of light to be applied to manufacturing,lighting,living,exploration,etc.,is huge...especially with the fast approaching hydrogen economy and at the same time other vital resources coming under pressure to be relieved or cleaned up.... Alaska's ability to invite,solicit,coax,entertain,choose,or compete for the futures new industries, commerce,citizens,professionals,investment and research capital,will be of historical proportions; And along with an intelligent and far sighted revenue investment strategy coupled with new energies materials and professional capabilities awareness... Well,,,,your children will be in a very special place,which hopefully,will reflect the sacrifices their mothers and fathers made in coming to "Alaska,The Last Frontier”to be a more free people.(and you cannot be free without the "Life Sustaining Energy Needs of Clean Air,Clean Water,and Clean Energy)w Thank You,Again Paul D.Kendall 907-222-7882 msg ? ';Nike Harper From:PAUL KENDALL [pauldkendall@yahoo.com]Sent:Wednesday,April 09,2008 8:46 PM To:Steve Haagenson Ce:Mike Harper Subject:alaska a new energy based society Attachments:2296151242-4-9-08 AIDEA meet.doc Gentlemen,please accept and share my written comments for your members at your board meeting. Thank You,Paul D.Kendall Do You Yahoo!? Tired of spam?Yahoo!Mail has the best spam protection around http://mail.yahoo.com Page |1 DATE:4-10-08 Thursday board meeting To:AIDEA-ADA Board Meeting From:Paul D.Kendall Non Sequenced -Random Outline Points for Discussion or Consideration -- |would like to play some role in Alaska's new energy future-perhaps to track all of the hydrogen players,their progress,projects,products and their inter-connections ... Ah,A New Society,an Energy Based Society of the Future,so much to do and so little time to do it- 5 years ? The next great new societies will not be led by a messiah or alien intervention;Rather, OUR NEW OR NEXT GREAT SOCIETIES WILL BE ENERGY BASED SOCIETIES---they will have defined the next generations and applications of viable energies,who owns those energies,the transmission and distributions of those energies,the PRIORITY of access and obligations;along with the true and actual cost impacts/profits formulas.....pdk Alaska could overnight become a virtual "ATLANTIS RISING of ENERGY”the real new energy frontier of today,tomorrow and for a long time forward....!Pdk "Alaska The Atlantis of Energy” ELECTRICITY AND HYDROGEN ARE OUR future backbone FUELS ..AND NATURAL GAS WILL HELP TRANSITION OR JUMP START THESE FATHER AND MOTHER ENERGIES !pdk Look up home refueling stations for natural gas and hydrogen gas.(Phill by Fuelmaker-a product.) Hydrogen gas is a full circle (or cycle)fuel;a Genesis fuel;a Female fuel in that it is a birth and life sustaining fuel!Or energies !There is no such thing as Water!This isa term of "distraction of awareness..”,There are only many various hydrogen compounds with various contaminates,particles or associations.....a laymen's terms..pdk ---What's up?WATTS,WATER,AND WASTE..!pdk ---CONSERVATION ==YEA WELL,,this is one of those partial truths..and yet one of the greatest lies and distractions of all.....ask me!pdk Those who endeavor in Nuclear and Coal at this time will only make Alaskans'natural energies and Alaska,more valuable,so don't evengothere (unless someone else foots the bill and you contro! the project and even then its suspect...."The fossil fuels distribution network system,and associates” based economy which is based upon hydrogen is dying-ask me!) Page |2 ***NEED A 3 DAY ON CAMERA PUBLIC ENERGY SUMMIT,CONFERENCE,INVENTORY,REVIEW, DISCUSSION HELD HERE IN ANCHORAGE......NOW !flush out all sectors BEFORE JUNE |**** Alaska needs a 24 -7 state wide video channel,,With robot camera ability ----very,very important! Really a must have,and now!Future holds an exponential and cascading increase in the need of importance.....pdk COMPREHENSIVE OVERLAY : GOOGLE PARTNERSHIP WITH COMPREHENSIVE ACETATE AND COMPUTER OVERLAY -NOW!(careful how you do this..Google should bring it (their assets)to the table because of our energy innovative importance in the world and our energy which they may need very soon)..this overlay is very important..|think..a gut feeling.....! (the overlay should contain many overview views..Rivers,Lakes,Streams,Geothermal,Volcano,Wave, Wind,Roads,Mining Sites,Communities,Electrical Lines,Pipelines,Resource Deposit Locations,Water lines,hydroelectric sites potential,existing and underway,railroad,ocean temperature changes, Inclines,all major users of energy-all,fault lines,etc.....because were looking for clusters of applications and..) ALL CAPITAL OUTLAYS $$$$SHOULD GO THROUGH SOME FORM OF PUBLIC REVIEW...there is so much money being wasted..and if we can identify this waste,it usually will also open up another perspective of how we can do business in a better way....WEATHERIZATION PROGRAM,conservation,$500.00 rebate,pce program,lihea,etc.....You have to Jet go of,keep,and redirect the money for: Lihea,PCE,weatherization,and any other reimbursements for energy aberrations! Very heavy prison penalties for public betrayals....And absolute must for a fast moving economy ..Firing squad.....! A REALLY GOOD MISSION AND DIRECTIVE STATEMENT OF WHERE YOU ARE GOING AND WHATS UP!And |cant wait to see this mission statement..|will enjoy the read very much! You have to break out several sectors of energy.All things energy,home and public education program are a must,...ACTUALLY you should break out all sectors of Water,Air,Waste,Electrictiy, Natural Gas,Gasoline,Diesel,Hydrogen,Propane,etc...This new society based on energy real,ready to go and reserved "at the flip of a switch”will most likely talk energy in all languages and in all applications,distributions,generations,obligations,transmit ions,etc...they will most likely all interconnect..in relationship to amounts of how,when,where,who,for what,how long,etc... Page |3 --YOUR PRIORITY SHOULD BE CLEAN WATTS,WATER AND WASTE TO SINGLE FAMILY HOME OWNERSHIP AND RENTALS...THEN ALL ELSE..... a----WE MUST REDESIGN FORMULAS FOR ASSESING DATA....ALL DATA AND FORMULAS MUST BE BASED UPON: AMOUNT #OF SINGLE FAMILY HOMES OWNED #OF RENTAL UNITS WATER USED,ETC.. This needs to be teased out....Because it is a large discussion and may need several inputs..... DUPLICATION OVERLAY DEPARTMENT-due to what appears to be many entities working on overlapping projects there is a stepping on each other to get permits,right of ways,meetings,etc.which some one might want to bring under one roof to minimize efforts... The state might want to establish a section of newspaper on an annual add price cost and use it as a means of notifying others of meetings,broadcasts,and other public notifications because there could be a lot of meetings in many sectors simultaneously;and this way everyone would be on the same page at the same time and know where to look to stay up to date to see broadcasts of meetings and to be held events,etc........ It is my personal feelings that Alaska must establish its independence over local energy development distribution,and marketing control now...Surely you realize what the Henry Hub Pricing, FERC,and some other control bodies real purpose is!!!ALASKA must secure its independence over its energy development now.... CELCECEEECECCECECCCCEECEECCECECCCECECCEECCCELCCCCECECCCELCCEECCCCOCCC 4 (2to 4,ormore)Dynamic Simultaneous Evolving Economies (Very difficult place to be) --Fundamental Society Infrastructure Needs -(Alaska and its people society and stability) --Outsider Resource Revenue Developments and Marketing Based Needs --permanent fund or revenue investment and distribution management --As an Energy base society |expect large amounts of R and D and Storage Sector In addition,there may need to be division into RURAL,TRANSITION and URBAN divisions.This is one of the reasons |think we need the Acetate Overlay...ask me -IE.To sell power to mining,natural opportunities of miniature,small,medium and large scale energy projects... Please note that it is imperative that the citizens own all assets |Without any equivocation by any entity in partnership with Alaska.There must be a declaration of understanding by all partners on an annual basis of this recognition,understanding,and conveyance......!Never again will we ask a company if they agree if we own the resources..NEVER ! Page |4 *THE CHINA FACTOR ----REALLY HUGE IF YOU CAN PUT THIS TOGETHER -REALLY HUGE AND HUGE !! CHINA TRILLIONS OF DOLLARS....{HITE --CHINA LINE --CHINA STEEL -ALASKA LINE -ELECTRICLE INTERTIE GRID LINE --CONOCO-PHILLIPS LINE -RAILROAD LINE (not major roads?) --china labor (ask me ) -WATER LINE --HYDROGEN LINE --MULTIPLE HYDROELECTRIC PROJECTS INTERCONNECT LINES --HUGE SUSITNA DAM ? -STORAGE FACILITIES, --MCKENSIE POINT BRIDGE --Geothermal Projects --LEGISLATURE IN MAT-SU AREA (this is very,very important because Juneau cannot hold us up on this.This new --MULTIPLE ENERGY PROJECTS You must replace all gasoline,diesel,and natural gas as soon as possible with electricity and hydrogen fuels for financial reasons....Explanation needed... CECLECECELCCCELECEELECCCE Copies --Air cars --BP and GE to build 15 ina decade Hydrogen Power plants agreement ??suspect!Coal and Sequestration -This is significant for several reasons..and this begs questions....Iceland,California,Aust -New Hydrogen Energy Corporation with Rio Tinto --Innovateck ---very interesting ---if it works and we can have I;Then we are off and running into the next society --Chevron connection and only do Partnership projects ?? --Rio Tinto..Hydrogen Energy Corp.. --BP WIND farms under way now..CO,WY.ND.2-TX,CA --BP hydrogen refueling stations-bejing,+illinois,fla,mich,calif,+ --Major Free Market oil companies involvement in many universities and research labs in nearly every country ....WHATS UP WITH THIS ?? --Hydrogen --Ames laboratory electrical generation... Page [5 --1981 -241 page study "Hydrogen use in Alaska” THE POINT of some of the above examples of one oil company investments is --WHY NOT ALASKA 22???)WHY ARE WE NOT DESERVING OF THESE PROJECTS WHICH EQUAL MANY MEGAWATTS of energy AND TECHNOLOGIES AWARENESS ?? CEECCCECEEECOECLCCCECECECCCECCCEECEEECCEELCEL Thank you for the opportunity to testify and accepting my written comments.If |had only two choices to make to happen right now,out of all of the above considerations they would be a few quick hydroelectric projects and a (citizens owned)state wide 24/7 video channel with cameras. if Alaska is able to undertake this new moment in history which is here now,the need to communicate across all sectors at all times in all areas will be nearly imperative!It is said that nearly 85%of all learning is done visually... |suggest there are two normal means of learning;one is educational which takes time and if you have to repeat it,lots of time; The other,is from trauma,or cataclysmic/catastrophic event impacts whose outcome is usually fast and unpredictable.....Real time representation,with Clear,simultaneous large public bodies of Communications capabilities are critical to this New Alaska Energy Based Society..... And finally,in closing,|am not sure people realize how powerful an ENERGY BASED SOCIETY WILL BE. The ability of Alaska to reach over and flip a switch to acquire vast amounts of electrical energy which moves at the speed of light to be applied to manufacturing,lighting,living,exploration,etc.,is huge...especially with the fast approaching hydrogen economy and at the same time other vital resources coming under pressure to be relieved or cleaned up.... Alaska's ability to invite,solicit,coax,entertain,choose,or compete for the futures new industries, commerce,citizens,professionals,investment and research capital,will be of historical proportions; And along with an intelligent and far sighted revenue investment strategy coupled with new energies materials and professional capabilities awareness... Well,,,,your children will be in a very special place,which hopefully,will reflect the sacrifices their mothers and fathers made in coming to "Alaska,The Last Frontier”to be a more free people.(and you cannot be free without the "Life Sustaining Energy Needs of Clean Air,Clean Water,and Clean Energy)w Thank You,Again Paul D.Kendall 907-222-7882 msg