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AEA Board Meeting March 17 2010 BM Minutes
ALASKA ENERGY AUTHORITY March 17,2010 Board Meeting MINUTES pes Wx As"AIDEN,SENSIS Alaska Industrial Development and Export Authority AGENDA Alaska Energy Authority Board Meeting Wednesday,March 17,2010immediatelyfollowingtheAIDEABoard Meeting Anchorage,Alaska 1.CALL TO ORDER 2.BOARD OF DIRECTORS ROLL CALL 3.AGENDA APPROVAL 4.ROLL CALL:STAFF,PUBLIC 5.PUBLIC COMMENTS 6.PRIOR MINUTES -February 17,2010 7.OLD BUSINESS A.Regional Integrated Resource Plan (RIRP)Final Report 8.NEW BUSINESS 9.DIRECTOR COMMENTS A.Director's Status Report e AEA Program Fact Sheets e AEA Project Fact Sheets e Alaska Renewable Energy Fund Status Report Jan 25,2010 e Renewable Energy Fund Round 1 Projects LB&A Report Feb 25,2010 B.Wednesday,May 26,2010 10.BOARD COMMENTS 11.ADJOURNMENT 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 e www.akenergyauthority.org /=ALASKA:qa)ENERGY AUTHORITYaxeKAAlaskaIndustrialDevelopmentandExportAuthority Alaska Energy Authority BOARD MEETING MINUTES March 17,2010 Anchorage,Alaska 1.CALL TO ORDER Vice Chairman John Winther called the meeting of the Alaska Energy Authority to order on March 17,2010 at 11:40 p.m. 2.ROLL CALL:BOARD A quorum was established. Members participating:Vice-Chair John Winther (Public Member);Mike Felix (Public Member); Emil Notti (Commissioner,Department of Commerce,Community &Economic Development); and Jerry Burnett (Deputy Commissioner,Designee for Department of Revenue). Member participating via phone:Commissioner Leo von Scheben (Department of Transportation &Public Facilities). 3.AGENDA APPROVAL The agenda was approved with an additional item added by Commissioner von Scheben,which was discussion of the Petersburg-Kake power line and road status. 4.ROLL CALL:STAFF,PUBLIC Staff present in Anchorage:Steve Haagenson (AEA Executive Director);James Hemsath (Deputy Director-Development);Valorie Walker (Deputy Director-Finance);Mike Catsi (Business Development Manager);Karsten Rodvik (Project Manager-External Affairs);Bruce Chertkow (Loan Officer);Mark Davis (Economic Development Officer);Shauna Howell (Administrative Assistant);and May Clark (Administrative Assistant). Others present in Anchorage:Brian Bjorkquist (Department of Law);Anne Southam,ERM;and Steve Klein (First Infrastructure). 5.PUBLIC COMMENTS There were no public comments. 6.PRIOR MINUTES The minutes of February 17,2010 were approved as presented. 813 West Northern Lights Boulevard *Anchorage,Alaska 99503-2495 www.aidea.org *907/771-3000 ®FAX 907/771-3044 ®Toll Free (Alaska Only)888/300-8534 *www.akenergyauthority.org AEA Board Meeting March 17,2010 Meeting Minutes Page 2 7.OLD BUSINESS 7A.Regional Integrated Resource Plan (RIRP)Final Report The Regional!Integrated Resource Plan Final Report was presented to the board for approval. MOTION:Deputy Commissioner Burnett moved to accept the RIRP Final Report. Seconded by Mr.Felix.A roll call vote was taken and the motion passed unanimously. 8.NEW BUSINESS Commissioner von Scheben requested a meeting with staff to discuss the Kake-Petersburg road and power line project that has a cost estimate of $38 million.Items to be discussed include routing of the power line versus the road,road quality construction,and routing with respect to Kupreanof Island. 9.DIRECTOR COMMENTS 9A.Director's Status Report of AEA Programs and Projects Several weeks ago staff gave a status report to the Legislative Budget &Audit Committee.on the Renewable Energy Fund Round |.We may have only $26 million of the $126 million on the street and next year only $21 million.We are ramping up now to get all of the projects completed.We will have $80 million in projects completed within the next two years and save several million gallons of fuel within the next several years and we will reap all the benefits for the amount of dollars spent.Round Ill projects were broken out into $25 million projects,with an additional $25 million requested.The governor's budget included $25 million.There were no questions from the board regarding all Renewable Energy Fund rounds. The dropped generator at Tuntutuliak was shown in a picture emailed from Precision Power. The engine fel!out of the side of a building.It is not an AEA project,but was directly funded to AVCP. In the Legislature,two Omnibus bills,SB 220 and HB 305,are of interest to us.They involve reorganization of the board,energy efficiency,building efficiency,and policy and planning.The GRETC bill should move by end of day.The operating budget was approved and they will move on the capital budget today.Both Sara Fisher-Goad and James Strandberg are currently in Juneau testifying. Mr.Haagenson was asked his opinion about the separating the two boards. Mr.Haagenson said,"I'll give you my opinion on AIDEA.It seems interesting that they want to move it into Revenue because the mission of AIDEA has been working on for months is economic development,in Commerce.AIDEA is much more than a banker.Since we share boards neither one will affect the other, there's another bill in there where they want to separate boards and reconstitute boards and are we on the same mission.AIDEA makes money and AEA spends money,this board is very good at balancing those two things and we have a AEA Board Meeting March 17,2010 Meeting Minutes Page 3 good partnership,we share employees.If you were going to separate us and say you wanted to move us apart,it will increase costs.Right now we're getting the best synergy between the two organizations.If you're going to reorganize,you need to reorganize for a reason,and I'm not sure what that reason is.” The idea to split the boards arose originally in the House Omnibus Energy bill.They want to create a Department of Energy. We are also working on,in coordination with AEA,is the purchase and sale of the PPF portfolio. One hearing was held and it was received favorably. The Regional Integrated Resource Plan Final Report will be posted on AEA's website on March 18,2010. 9B.Next meeting Wednesday,May 26,2010. 10.BOARD COMMENTS There were no board comments. 11.ADJOURNMENT There being no further business of the board,the meeting was adjourned at 12:05 p.m. SteVe Haagenson,Executive Director/Secretary Alaska Energy Authority AIDEA and AEA Board Meeting March 17,2010 Page 1 of 1 Home Go Back Edit :::Public NoticesOnlinePublicNoticeAIDEAandAEABoardMeetingMarchStateofAlaska17,2010 Submitted by:smsiverson/08 Date Submitted:03/10/2010 12:42 PM Date Modified: Ak Admin Journal:[not printed] Attachments:No files attached AIDEA and AEA Board Meeting March 17,2010 Category:Agency Meetings Department:Commerce Community &Economic Development Publish Date:03/10/2010 Location:Anchorage Archive Date:03/19/2010 Coastal District:N/A Body of Notice: Please note that the Board of Directors of the Alaska Industrial Development and Export Authority (AIDEA)and the Alaska Energy Authority (AEA)will hold a board meeting beginning at 10:30 a.m.on Wednesday,March 17, 2010.The Board will convene as AIDEA and continue in session until recess or adjournment.Immediately upon recess or adjournment the Board will convene as AEA and continue in session until recess or adjournment. An agenda for the meeting is available by visiting our website at www.aidea.org and www.akenergyauthority.org This meeting will be conducted by electronic media pursuant to AS 44.88.050(a)and AS 44.62.310 at the following location: Alaska Industrial Development and Export Authority Boardroom 813 West Northern Lights Boulevard Anchorage,Alaska The public is invited to attend.The State of Alaska (AIDEA and AEA)complies with Title II of the Americans with Disabilities Act of 1990.Persons requiring special modifications to participate should contact (907)771-3009 to make arrangements. Revision History: 03/10/2010 12:42:39 PM by smsiverson/0é/State/Alaska/US $$WebClient [Submitter][Anon] Home Page Notices by:Department|Category |Publish Date http://notes4.state.ak.us/pn/pubnotic.nsf/pn/0/5b5a3e4ff3555 191892576e200774306?0pen...3/10/2010 Alaska Energy Authority BOARD MEETING MINUTES February 17,2010 Anchorage,Alaska 1.CALL TO ORDER Chairman Patrick Galvin called the meeting of the Alaska Energy Authority to order on February17,2010 at 1:20 p.m. 2.ROLL CALL:BOARD A quorum was established. Members present:Emil Notti_(Commissioner Department of Commerce,Community & AGENDA APPROVAL sal i (Projecty Drector Finance}afar)0im Strandberg (Project Manager):Shauna _Howell(Administrative Assistant),and Sherrie Siverson (Administrative Assistant).Others present in Anchorage:'Bian Bjorkquist and Mike Nave (Department of Law);KevinHarper(Black &Veatch).: Participating via teleconferé e:Duff Mitchell,Cascade Creek (Self). Joined the meeting in progress:Bryan Carey (AEA Project Manager);Peter Crimp (AEA Project Manager);and Doug Ott (AEA Project Manager). AEA Board Meeting February 17,2010 Meeting Minutes Page 2 5.PUBLIC COMMENTS Mr.Duff Mitchell spoke on jobs waiting in Southeast Alaska for renewable energy.Two studies have been done:1)by the National Hydropower Association (job study)and 2)by the BC Independent Power Producers (economic impact study).To emphasize the job component,for every 1 megawatt of renewable energy we produce,we create one full-time job.Both studies mention how you also create construction jobs and that number bounces 4+jobs per every megawatt of hydropower.Some of the other renewable energies actually create more.Consider to develop and support renewable energy.There is a lot of private industry money that coulddeveloptheseresourcesthatwouldnotonlyprovidejobs,but 'would also provide a flooding oflowcost,competitive hydropower for our region that could.'someday be moved to the Northernpartofourstate.Need to look at what we can do to improve our economy and our standard oflivingasthatrelatestojobs.|ask you to consider this.factor iIn1 your decision analysis as youmoveforwardwiththeenergyplansforourstate...©eee 6.PRIOR MINUTES The minutes of December 9,2009 were approved as presented. 7.OLD BUSINESS There was no old business. 8.NEW BUSINESS the next meeting.ita,9.DIRECTOR commeNTs |hh:aieTada9A._'Director's Status Report of AEA Programs and ProjectseAlaskaEnergyPlan:"finalizing the narrative and formatting the document;completed database output for 228 communities throughout Alaska;continue to meeting with peopleacrossAlaskatokeepthemengaged;working with the Governor's office for the timing of the rollout. e Renewable Energy Fund Grant Recommendation Program,Round III:On November 10, 2009,AEA received 124 applications for Round Ill requesting over $224 million.The applications were ranked and submitted to the Legislature on January 29,2010. AE.A Board Meeting February 17,2010 Meeting Minutes Page 3 Project Ranking:Green -top ranked $25 M Re 1. 2. 3.on9B. 10. There being no further,busin Prior to the original recommendation submittal,AEA sent letters to the 27 applicants not recommended for funding.In addition to the notification,these letters described the procedure to appeal this determination.AEA received and responded to four appeal requests.During reconsideration,Mr.Haagenson reviewed the comments and reason for denial as lack of an integrated resource plan.Even though this is a good planning approach, it is outside the evaluation criteria set out in the regulations.Following reconsideration,he directed AEA staff to complete the ranking process for the Whitman Lake project. Yellow -second ranked $25 M Brown -third ranked,remaining $15.8 M: sults of the reconsideration reviews are:iWhitmanLakeHydroelectricProject#425 for.$2,000,000 ranked in the Yellow.Metlakatla-Ketchikan Intertie Project #449 for $2,000,000 ranked iinthe Brown.Takatz Lake Hydroelectric Feasibility Project #405 for an additional $440,614 ranked inYellow.Ba abe 're ahs : The new Yellow ranked projects|moved the following projects to Brown:Hope Regional Hydroelectric:Study:Project #473:));:Cultivating Rural Alaska for Biomass Energy Project.#428WoodChipBoilerHeatingSystem:Project,#400 'ipTransmissionLinetoRenewableResourcesProject#491 moved from Yellow to Brown.MSB Solar and Wind Potential{rotect #451 oved from,Brown to Yellow.'We will be reporting the status ofRenewable Energy Projects to LB&A next week.Next meeting Wednes."tage a BE"BOARD COMMENTS ADJOURNMENTne ss of the board,the meeting was adjourned at 2:46 p.m. Steve Haagenson,Executive Director/Secretary Alaska Energy Authority "<yIDEX (=ALSSTAlaskatndustrialDevelopmentWrAlaExportAuthority Revised March 10,2010 Alaska Energy Authority Program Fact Sheet:Alternative Energy and Energy Efficiency Programs Current Status: RE Fund:AEA has entered into grant agreements with 85 of 107 Round |and II grantees.The Legislature funded $125 million for these Round |and II projects.On February 17,2010,AEA submitted Round Ill recommendations to the Legislature for up to 90 projects totaling $65.8 M. Energy Efficiency:AEA will release the Alaska Small Cities EE and Conservation Block Grant solicitation this week.It will provide $3.2 M in ARRA funds for EE upgrades and activities. Overview: Alaska Energy Authority's (AEA's)Alternative Energy and Energy Efficiency (AEEE)program currently manages and funds projects and initiatives totaling $157 million in state and federal funding.Activity substantially increased after AEA launched the Renewable Energy Fund.An AEEE update is available on AEA's website at www.akenergyauthority.org Program Descriptions: 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 eight separate program areas: Alaska Energy Inventory (cooperative project of AEA and Alaska DNR)is compiling renewable and fossil resource data,energy supply and usage,and other information useful for energy planning and development. Biomass Energy Program develops projects using wood,sawmill residue and municipal wastes for energy;tests air emissions and performance of fish oi!and diesel blends as fuel;assesses the viability of recovering fish oil from fish processing wastes. Diesel Generation Efficiency Program provides assistance in developing projects that use high efficiencygeneratorsandrecover"waste heat”from diesel generators. End Use Efficiency (Conservation)Program has completed 60%of a project upgrading lighting and heating efficiency in over 150 schools and other facilities in 50 villages;is conducting energy audits; working with Alaska Housing Finance Corporation to develop statewide efficiency policy recommendations and demonstrate impact of aggressive,village-wide measures in Nightmute. 813 West Northern Lights Boulevard *Anchorage,Alaska 99503-2495 www.aidea.org ¢907/269-3000 *FAX 907/269-3044 *Toll Free (Alaska Only)888/300-8534 #wwav.akenergyauthority.org AEA Program Fact Sheet Alternative Energy and Energy Efficiency Programs Page 2 Geothermal Program supports projects such as the Chena Hot Springs power plant;organizes workshops and training sessions,coordinates state assistance in developing other potential projects such as Mt.Spurr on the Railbelt and Makushin in Unalaska. Hydroelectric Program provides technical assistance through staff and contractors for hydro feasibility assessment;manages public funding for project construction. Ocean and River Energy Program evaluates technology and feasibility of converting wave motion,tidal and river flow into power in partnership with Alaska 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;assists with 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 more recently from the Denali Commission and the EPA. Under the Renewable Energy Fund,AEA is providing $125 million in grants for 107 Round |and II projects.AEA evaluated 123 applications submitted for Round Itl of the Renewable Energy Fund and recommended funding for up to 90 projects totaling $65.8 million. In June 2008,AEA and the Denali Commission offered $7.5 million in grants for 37 projects.The Energy Cost Reduction RFP,an earlier program,has 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 on the AEA website. ALASKA ,ENERGY AUTHORITYax¢Alaska Industrial Development and Export Authority Revised March 5,2010 Alaska Energy Authority Program Fact Sheet:Bulk Fuel Program Current Status: In 2009,AEA completed bulk fuel upgrades in Levelock,Point Baker and Napakiak.A pipeline project was also completed in Newtok.Currently,two projects are under construction and nine are in design. 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 program criteria.Upgrading bulk fuel facilities reduces the cost of energy by reducing or eliminating fuel loss from leaks and spills.In addition,by providing enough capacity for current and planned needs,communities may purchase fuel in larger quantities at a lower cost per gallon. Alaska's 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.Some of these facilities are at the end of their design life and do not comply with state and federal codes and regulations.Some have tanks,pipes and other equipment that leak fuel.Regulatory agencies may prohibit fuel deliveries to these facilities.Communities often do not have funds for replacing these storage facilities. Since 2000,the Denali Commission has provided funding to replace community bulk fuel facilities.Due diligence is carried out to ensure that project participants meet Denali Commission and AEA sustainability standards.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,and estimated operation and maintenance costs.The plan also includes the establishment of a repair and replacement fund so that when equipment fails,the community will have the resources and savings to repair or replace it. Program Progress: The bulk fuel program receives most of its funding through the Denali Commission.Funding increased substantially in 2000 when the Denali Commission started to fund bulk fuel projects.A total of 21 tank farm projects were completed prior to 2000.As of December 2009,an additional 68 communities have been completed for a total of 89.Approximately 29 communities have not received upgrades. Depending on funding,three to six communities are receiving upgrades per year. 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 PS ALASKAAlaskaindustrialDevelopmentandExportAuthority Revised March 9,2010 Alaska Energy Authority Program Fact Sheet:Emergency Response Program Current Status: AEA assisted several communities in 2009.Major responses include: e Stevens Village during Spring break-up ¢ Kipnuk's unexpected major equipment failures e Kobuk to Shungnak tieline e =Chefornak distribution To date in 2010,no major emergency response situations have occurred, Program Description: The Emergency Response program provides on-call,as-needed emergency action response to mitigate extended power outages and electrical hazards that present imminent 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. AEA is currently in discussions with the Department of Homeland Security regarding storage of some of their emergency response generators intended for Alaska. 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 |[=ALASKASXAlaskaIndustrialDevelopmentFeAleExportAuthority Revised March 3,2010 Alaska Energy Authority Program Fact Sheet:Loan Programs Current Status: Power Project Fund (PPF) Number of loans:45 Outstanding portfolio balance:$25,899,786 Committed &un-disbursed funds:S 6,075,949 Uncommitted funds:S 5,415,654 As of February 28,2010,there were no loans past due 90 days or more. 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 commitment. Current Status: Bulk Fuel Revolving Loan Fund (BFRLF) Number of loans:41 Outstanding portfolio balance:§3,918,898 Committed &un-disbursed funds:S$722,089 Uncommitted funds:S 10,795,763 As of February 28,2010,there were no loans past due 90 days or more. 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.The Alaska State Legislature appropriated an additional $5.5 million to this revolving loan fund in August 2008. 813 West Northern Lights Boulevard *Anchorage,Alaska 99503-2495 www.aidea.org ¢907/269-3000 *FAX 907/269-3044 ©Toll Free (Alaska Only)888/300-8534 *www.akenergyauthority.org «=>ALASKA qa)ENERGY AUTHORITYa8:f Kk WY Alaska Industrial DevelopmentandExportAuthority Revised March 10,2010 Alaska Energy Authority Program Fact Sheet:Power Cost Equalization Program Current Status: Effective October 1,2008,the power cost for which PCE is paid (the "ceiling”)was raised from $.525 to $1.00.For FY 2010,the base rate was raised from $0.1283 to $0.1412.As of March 10,2010,the estimated program cost for FY 2010is $36 million. 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 813 West Northern Lights Boulevard *Anchorage,Alaska 99503-2495 www.aidea.org *907/269-3000 *FAX 907/269-3044 ®Toll Free 'Alaska Only)888/300-8534 *www.akenergyauthority.org AEA Program Fact Sheet Power Cost Equalization Program Page 2 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.The total invested assets of the Fund on January 31,2010 were $322.8 million. [=ALASKAGiz>ENERGY AUTHORITYaxenieAlaskaIndustrialDevelopmentandExportAuthority Revised March 9,2010 Alaska Energy Authority Program Fact Sheet:Rural Power Systems Upgrade Program Current Status: Forty-four communities have benefited from powerhouse and distribution upgrades between calendar years 2000 through 2009.Eleven additional communities are currently undergoing construction upgrades or are scheduled in 2010.Nine additional communities are in conceptual design or final design stage.Akiachak,Chitina and Kwethluk are the latest projects to be substantially complete. Program Description: The Rural Power System Upgrade (RPSU)program concentrates on powerhouse and electrical distribution upgrades.Typical projects 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 renewable energy and interoperability is high priority. Program examples include:State ofAlaskaCommunities . % e Rebuilding or replacement of old,hazardous,worn out, inefficient and non-code compliant diesel generator and distribution systems; e Inclusion,integration and collaboration with heat recovery systems and viable renewable energy projects; e 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 are identified through a variety of ways,including technical assistance,advancement by the local community or direction from the Legislature.The Denali Commission provides the majority of funds.Other sources include Community Development Block Grant (CDBG),Indian Community Development Block Grant (ICDBG)and Rural Utility Service (RUS). 813 West Northern Lights Boulevard *Anchorage,Alaska 99503-2495 www.aidea.org *907/269-3000 *FAX 907/269-3044 ©Toll Free (Alaska Only)888/300-8534 «www.akenergyauthority.org AEA Program Fact Sheet Rural Power System Upgrade Page 2 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 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. Annual Fuel Savings from New Powerhouses 900,000 800,000 z :we ie te With Additional Upgrades,.:'exeWithout Additional Upgrades 700,000 600,000 500,000 400,000 300,000 "pa é .ee iat200,000 -i 4 AAg'ie 100,000 i te ;#::a j By *hy¥IDEX ALASKA Gx)ENERGY AUTHORITYSYAlaskaindustrialDevelopmentWrAlsExportAuthority Revised March 10,2010 Alaska Energy Authority Program Fact Sheet:Renewable Energy Fund Current Status: AEA received 123 Round Ill applications requesting more than $224 million.After evaluation and ranking by AEA staff,AEA on February 17,2010 submitted to the Legislature its recommendations for funding up to 90 Round Ill projects totaling $65.8 million.On February 25,2010,AEA provided the Legislative Budget &Audit Committee an update on Round |grant awards.AEA has issued 63 grants for Round |projects.Grants for 22 projects funded in Round II are now in place. Overview: The Alaska State Legislature created the Renewable Energy Fund (REF)in 2008,with the intent to appropriate $50 million annually for five years.This legislation placed Alaska at or near the forefront of the 50 states in funding for renewable energy.The Legislature authorized Alaska Energy Authority (AEA)to manage the REF project application process,project evaluations,recommendations, completion of grant agreements and disbursement of funds to grantees. Program Progress: To jumpstart the program,the Legislature appropriated $100 million in 2008.During the 2009 session, the Legislature appropriated $25 million.In the fall of 2008,AEA solicited applications for Round |and Round II grants.The response was significant.AEA received more than 230 applications requesting more than $760 million.AEA conducted rigorous evaluations of all applications. Renewable Energy Fund projects around the state: e Falls Creek Hydroelectric,Gustavus.800 kW project expected to displace 117,000 gallons fuel per year, ¢Pillar Mountain Wind,Kodiak.4.5 MW project expected to displace 1,203,000 gallons fuel peryear. e Juneau Airport Ground Source Heat Pump.Estimated to displace 29,500 gallons fuel per year. e Unalakleet Wind.600 kW project estimated to displace 90,000 gallons fuel per year. e North Pole Heat Recovery.Expected to displace 99,000 gallons fuel per year. e Tok School Wood-Fired Boiler.Projected to displace 50,400 gallons fuel per year. 813 West Northern Lights Boulevard*Anchorage,Alaska 99503-2495wwwaidea.org *907/269-3000 *FAX 907/269-3044*Toll Free (Alaska Only)888/300-8534 ©www.akenergyauthority.org *<yIDEN TE Ars' Alaska Industrial DevelopmentandExportAuthority Revised March 9,2010 Alaska Energy Authority Program Fact Sheet:Technical Assistance Program Current Status: To date in this fiscal year,the Technical Assistance Program has helped 14 communities:Arctic Village, Akiak,Chalkyitsik,Chefornak,Chignik Bay,Chignik Lake,Chignik Lagoon,Chitina,Fort Yukon, Kwigillingok,Koyukok,Manoktak,Stevens Village and Takotna. Program Description: The purpose of the Technical Assistance Program is to help eligible utilities 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.The program provides training, consultation,on-site assistance with maintenance and minor repairs,and other related technical assistance. The ability a community has and the methods it uses to maintain and operate its powerhouse have a significant impact on efficiency.Keeping diesel generation systems operational and maintained has a direct influence on the energy produced for each gallon of diesel fuel consumed.Operator training, spare parts availability,automatic system monitoring,data trending and data analysis along with prompt maintenance and repair are key factors in keeping reliability,efficiency and performance high. The Technical Assistance Program is administered by the Alaska Energy Authority (AEA)and is available to all eligible electric utilities.Participating electric utilities receive support services from AEA. e AEA makes visits to eligible electric utilities based on need over the course of the year to provide training and recommendations concerning operations and routine maintenance activities.There is no charge to the utility for these services. e The Technical Assistance Program does not provide funding for major repairs or reconstruction of electrical systems. ©The participating utility's power plant operator and/or utility staff must be available for training and consultation during the time of the Technical Assistance Program visit.Power plant operators will be required to maintain written performance logs in between visits. e Services under the Technical Assistance 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. 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 fea"fy Alaska Industrial DevelopmentWeAlExportAuthority Revised March 9,2010 Alaska Energy Authority Program Fact Sheet: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.For FY 2010,the Denali Training Fund provided $261,000 for the following:three Bulk Fuel Operator classes;two Power Plant Operator classes;one Advanced Power Plant Operator class;ten Bulk Fuel itinerant site visits. Completed to date:two Bulk Fuel Operator classes;one Power Plant Operator class;one AdvancedPowerPlantOperatorclass. 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: Bulk Fuel Operator Training Itinerant Bulk Fuel Operator Training Power Plant Operator Training Advanced Power Plant Operator Training 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 12AlaskaIndustrialDevelopmentandExportAuthority Reviewed February 25,2010 Project Fact Sheet:BRADLEY LAKE HYDROELECTRIC PROJECT CURRENT STATUS:The lake level is above normal for this time of year.The utilities having been running generators less hard this year to save more water for the winter.Project has been operating well through the fall. PROJECT COST:$328 million (original cost plus major capital improvements through June 30,2009). 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. PARTICIPANTS: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 developmentin 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.In 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 2008,Bradley produced 287,000 MWh of power at a cost of approximately $.054 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 e 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 ""*y IDEN /EAASKAbadAlaskaIndustrialDevelopmentandExportAuthority Reviewed March 2010 Project Fact Sheet:LARSEN BAY HYDROELECTRIC PROJECT CURRENT STATUS:Upgrades to the Larsen Bay Hydro Facility are in progress utilizing a Construction Management Contractor and AEA Rural Utility Workers.Project substantial completion is tentatively scheduled for June 30, 2010.Once the project is substantially complete,the community and AEA will execute a Facility ConveyanceAgreementtocompletetheturnoveragreementtothecommunity.The city utility supplies a portion of the cannery's energy needs to increase utility revenues and enable repayment of bond funds.The utility has agreed to allow the use PCE payments to aid in repayment of their PPF loan. PROJECT COST:$320,000 from CDBG grant DESCRIPTION:The Larsen Bay hydro facility has experienced numerous significant operating issues over the last several years which have resulted in delaying the ownership transfer from AEA to the community.The most significant issue is the reliability of the existing hydro switchgear and controls.. Scheduled improvements include: e Replacement of the existing unreliable hydro switchgear and controls with new modern switchgear that includes data acquisition and remote monitoring capabilities.This task is still in progress with the new switch gear now in basic operation. e Repair ice damage to the water intake structure.This task was substantially completed in January2009., e®Supply a portion of the cannery domestic load to facilitate increased use of hydro power without negatively impacting the power to the community and increase revenue to the city.This task was substantially completed spring of 2007. e Execute Facility Conveyance Agreement.Agreement drafted by attorney and sent to community for review and comment. PURPOSE:The project intent is to increase the reliability and use of the hydro electric system in order to facilitate the turnover of ownership of the system to the City of 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:Once operating reliably and efficiently,the hydro will displace the majority of the city's diesel fuel used for electrical generation.The utility can now provide a portion of the cannery's energy needs resulting in increased revenue to the utility.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 hydro facility over to the City after the improvements have been completed and the facility has proven its reliability.- 813 West Northern Lights Boulevard e Anchorage,Alaska 99503-2495 www.aidea.org @ 907/771-3000 e FAX 907/771-3044 e Toll Free (Alaska Only)888/300-8534 #www.akenergyauthority.org Larsen Bay Hydroelectric Project Page 2 of 2 Project Fact Sheet 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 which provides a safe 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 or make bond payments 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. N B®.ALASKA sag ENERGY AUTHORITY++k Alaska Industrial DevelopmentandExportAuthority Alaska Renewable Energy Fund Status Report January 26,2010 This report describes the current status of the Alaska Renewable Energy Fund (RE Fund)Grant Recommendation program and how the Alaska Energy Authority (AEA)is addressing a number of issues that have arisen during its implementation. Funding and Grant Progress AEA has issued two Requests for Applications (RFAs);one for both Rounds |and Il in 2008 and one RFA in 2009 for Round lil.Over the three rounds AEA has reviewed 353 applications requesting $970.9 million.The $125 million that has been appropriated is toward development of projects that total $1,202 million.Current grant activity is shown on Table 1. Table 1.RE Fund grant activity as of January 19,2010, Round 1 Round 2 Round 3 Total Applications received 112 118 123 353 Amount requested $453.8 million $293.4 million $223.7 million 5970.9 million Amount appropriated $100 million $25 million TBD $125 million + Projects funded 73°30 TBD 103 + Grants in place 59 16 0 75 Expended $18,930,506 so so $18,930,506 Grants cancelled 23 0 0 2 Available for reallocation $563,379"°$386,986"$0 $950,365 Over the last 11 months significant progress has been made in getting the grants in place for projects selected for funding.Twenty-seven projects still require grant agreements.AEA is awaiting information from applicants of 12 projects regarding updated budgets,timelines,or source of remaining financing. *$25 million In Governor's request. *In addition,eleven projects from the Alternative Energy Solicitation (an earlier Request for Applications issued by the authority)were either partially or fully funded with funds from the original $100 Million appropriation. *One other applicant has unofficially indicated they may not want to complete the grant project. *As directed by LB&A,AEA is proposing reallocation to #1 Takatz Lk.hydro feasibility. *Net amount available after grant amount adjusted. 813 West Northern Lights Boulevard «Anchorage,Alaska 99503-2495 www.aidea.org ¢907/771-3000 «FAX 907/771-3044 e Toll Free (Alaska Only)888/300-8534 e www.akenergyauthority.org No significant issues remain for the balance of funded projects,and AEA staff is working to complete grants for them. How AEA is Addressing RE Fund Issues AEA,with input from the Renewable Energy Fund Advisory Committee (REFAC),has made an effort to systematically identify and address issues associated with recommending,funding,and providing oversight to projects that represent a wide range of energy resources,conversion technologies,grantee capabilities,development phases,and grantee business structures.The following discusses a number of key issues and how AEA is approaching them. Regulations AEA has adopted regulations for the RE Fund (3 AAC 107.600 -.695)that address topics including the public purpose of the grants awarded,eligibility,public notice,disclosure and confidentiality,feasibility and public benefit review of grant applications,requests for reconsideration,ranking of applications, grant agreements,grant close-out procedures,operation and maintenance reporting,dispute resolution,and definitions. -Requests for Applications In order to address lessons learned in Rounds |and ll AEA made significant changes to the Round II!RFA including tightened definitions,sample milestones to assist applicants in preparing their applications, maximum grant amounts,requirements for benefits to flow to the public appropriately in energy sale contracts,and clarifications in the application forms. Evaluation Guide AEA revised the Round I-ll evaluation guidelines to further define and standardize proposal review criteria.For RE Fund Round Ill AEA increased the weighting of economic feasibility (benefit /cost ratio) and project readiness scores for statewide ranking.As required by statute and regulation,cost of energy remains the most heavily weighted scoring criterion., Grant Documents AEA develops grant documents for each individual project based on the template that was included in the RFA package.Grant documents are tailored to the specifics of each project,including whether it is for construction or an earlier development phase;the expected useful life of the project;whether the grantee is an independent power producer (IPP);whether the project is receiving federal funding; whether the project is being managed by the grantee or AEA;and the type of contributions (in-kind or cash)by the grantee.Based on the original proposal AEA grant and technical staff develop scopes of work and project schedules with the grantees that are included in the grant. AEA modified the Round III RFA to make it easier to incorporate material in the grant application into the final grant.Applicants were required to provide project scopes of work and proposed milestones in Renewable Energy Fund Status Report Page 2 of 7 January 26,2010 a standard format that will streamline the development of the grant agreement.Other changes to the RFA included the following: e Anew definition of independent power producer ; ©To be eligible applicants must commit to own and operate their projects for the economic life of the project. e Limits on the type of biofuels project that will be funded e Improved application forms e Sample milestones in the budget form and project schedule Economic Viability For Round 3,AEA contracted with six private firms®to analyze the economics of the proposed projects. The analyses were coordinated and reviewed by economists at the UAA Institute of Social and Economic Research (ISER).In order to standardize results ISER provided the firms templates for analysis,as well as fuel price projections and other standard assumptions established by ISER and AEA.Economists prepared spreadsheets and brief write-ups for the 88 projects they analyzed.Economists did not analyze the economics of the remaining 35 applications because ISER determined there was insufficient information provided in the application. Based on benefit/cost ratios (B/Cs)that the economists estimated,AEA staff assigned each project a numerical score of 0-10 (see evaluation guidelines for details).Where there was insufficient information presented in the application to assess economics,the B/C field was left blank and a score ofO was assigned.The B/C score was incorporated into the final ranking in two ways: 1.It accounted for 25%of the technical and economic review (stage 2)score,which in turn accounted for 20%of the statewide ranking (stage 3)score. 2.lt accounted for 71.43%of the stage 3 Economic and Other Alaska Benefit score,which in turn accounted for 16%of the statewide ranking score.Therefore the B/C score accounted for (25%x 20%}+(71.43%x 15%)=15.7%of the total statewide 'ranking score-a substantial increase from the 9%that B/C accounted for in Rounds |and Il. Predictably,higher B/C ratios are associated with higher statewide rank.The AEA B/Cs of the top- ranked half of the Round Ill proposals averaged 2.27,while those of the bottom half averaged 0.95. Public Benefit from Projects Developed by IPPs Providing grants to private companies raises the issue of ensuring appropriate public benefit while providing opportunities for the companies to make a fair profit.RE Fund grants "buy down” development costs of projects that are generally economically feasible with a grant.Lower capital costs decrease the costs of producing energy further by reducing debt repayment and interest costs.To maximize public benefit,the grant benefits should flow to the ratepayers. *information Insights Inc,Northern Economic Research Associates,Northern Economics,Financial Engineering Co, Steve Pratt,Southeast Strategies Renewable Energy Fund Status Report Page 3 of 7 January 26,2010 In order to address this issue,AEA has required in grant documents that an IPP establish a cost-based rate acceptable to AEA that covers reasonable costs of operations and maintenance,depreciation,debt recovery and service,and a reasonable rate of return on actual monetary investment made by the owner,with recovery of state grant funds specifically excluded.AEA has contracted with private rate specialists to be available to make recommendations to IPPs,purchasing utilities,the Regulatory Commission of Alaska,and AEA regarding cost-based rates. Impacts of Funding Caps and Partial Funding In RE Fund Rounds {and Hl,maximum funding amounts of $4 million and $2-million were established in high and low energy cost communities respectively in order to achieve a wider geographic distribution of projects as required by statute.Although the funding caps did enhance geographic spreading,they also resulted in delaying construction of a numberof projects.Table 3 summarizes current status of the projects subject to Round |and Il funding caps. Of the 15 projects that were capped in Rounds|and II *®Three have been completed using other funds and/or through reducing the size of the project. e Seven have RE Fund grants in place and are under way with preconstruction activities.Of these, four projects are requesting Round Ill funding for completion,recommended by AEA.The remaining three are being completed with other financing or reduced scope e Five do not yet have grant agreements in place.However AEA is working with applicants to resolve short-funding through scope reduction and supplemental financing.AEA anticipates completing grant agreements with the five applicants over the next month.Three of the five projects are requesting Round Ill funding for completion,recommended by AEA. In order to give notice to applicants of the funding caps,funding limitations were included in the Round II!RFA.This has led applicants to identify other sources of financing to complete projects in the application thus reducing the need to rework project scopes of work expected to be funded in Round Ill. Geographic Distribution In 2008 AEA established 11 energy planning regions that,except for the Railbelt,generally follow ANCSA region boundaries.As described in more detail in the evaluation guidelines,AEA staff has consulted with the REFAC in each round to adjust the stage 3 statewide rankings to address geographic distribution requirements.In order to assess geographic distribution,AEA has prepared regional summaries that compare the Round III and cumulative (Rounds |,il,and Ill)recommendations to potential funding allocations by regional cost of power,population,and an even split.Please refer to the Legislative recommendation package. Funding for Feasibility Study vs Final Design and Construction RE Fund allocations in Rounds I-lll are generally consistent with the recommendations by the REFAC that final design and construction should account for at least 80%of the funding while reconnaissance and feasibility assessment should account for 20%(Table 2). Renewable Energy Fund Status Report Page 4 of 7 January 26,2010 Table 2,RE Fund appropriation totals by project development phase. Round |Reconnaissance and ;Final Design and Total Feasibility Construction 00;10$x 1000 %total|$x1000|%total ox |9,398”9%|90,602].91%]100,000 ul 5,333 21%|19,666 79%|25,000 Total 14,731 12%|110,268 88%|125,000 Final design and construction makes up 69%of the total $61.4 million in Round lll recommendations while reconnaissance and feasibility assessment account for 31%.$9.2 million (approximately half)of the recommended reconnaissance and feasibility funding is for geothermal exploration. AEA has noted improved quality of Round Ill proposals that have completed earlier phases of work.We believe it is important for the RE Fund to continue to support relatively inexpensive preconstruction activities to yield better construction proposals in the future. Payments to Grantees Grantees and others have expressed concerns about the amount of time it has taken for AEA to establish grant awards,AEA requirements for financial documentation and achievement of milestones before reimbursement,and other issues.Such concerns are often quite understandable,especially when project developers are facing purchasing long lead time items in order to meet short construction seasons. With the purposes of serving the public interest and ensuring successful projects,AEA tailors the payment schedule in grant agreements to meet the needs of the individua!grantees.For some grants, funds are released as milestones established in the grant agreement are met (e.g.permitting completed,equipment ordered,or project start-up).For other grants,funds are disbursed as reimbursements of costs incurred by the grantee consistent with the established budget.For all grantees,AEA offers the opportunity to have a portion of the grant funds advanced to them.The grantee must submit adequate justification to receive the advance and then report on the expenditure of the advance before additional funding is released to the grantee.It is possible for a grantee to obtain another advance after documenting the expenditure of a previous advance. ”Geothermal exploration at Akutan comprises $2.595 million of this figure.. Renewable Energy Fund Status Report Page 5 of 7 January 26,2010 Public Input In February 2010 AEA plans to solicit comments on how the RE Fund recommendation and grant management process can be improved.Comments will be posted on the RE Fund webpage and discussed further at the Rural Energy Conference in Fairbanks (April 27-29). Methods for RE Fund project recommendations and management are described in statute,regulations, requests for application,the RE Fund project evaluation guide,and the individual grant documents that are developed for each project awarded funding.The documents,prepared in consultation with the REFAC,are included in the recommendation package that AEA is providing to the Legislature and posted on the RE Fund webpage www.aidea.org/AEA/RE Fund-tll.htm!. Conclusion AEA welcomes questions and input from the Legislature regarding the methods and outcomes of the Renewable Energy Fund Grant Recommendation Program.AEA staff will be available to make a presentation to the Legislative Budget and Audit Committee regarding program and project status on February 25.2010. Renewable Energy Fund Status Report Page 6 of 7 January 26,2010 Table 3.status of Round |and 1!RE Fund Projects that were capped at maximum iunding amounts. Project Cost RE Fund RE Fund per Grant Grant ID |Grantee Project Application Request Amount Shortfall Status Underway.AEA recommends additional $563,379 in ..Takatz Lake Hydro ::.1 |City &Borough of Sitka Feasibilit 2,000,000 |2,000,000 514,684 |1,485,316 |Round 1 reallocation.Requesting Round Ill fundingY(recommended). 9 Wenge of Electric Boiler Conversions |3,260,000 |3,260,000 |2,000,000 |1,260,000 |Underway,final design/construction. Cordova Electric Underway,revised $17 M project cost.Possible 21 :Humpback Creek Hydro 11,600,000 |5,500,000 |4,000,000 ;1,500,000 |USDOE funding.Requesting Round I!fundingCooperative(recommended) Unalakleet Valley Unalakleet Wind Farm .50 Electric Coop Construction 8,996,832 8,774,080 |4,000,000 |4,774,080 |Substantially completed 52 Nome Joint Utility Newton Peak Wind Farm 15,534,309 |13,951,326 |4,000,000 |9,951,326 Grant not in place,AEA working with NJUS toSystemConstructionredefinescope 68 Municipality of Anchorage Landfill Gas to 7,400,000 |3,700,000 |2,000,000 |1,700,000 Grant agreement in 1/2010 for likely 2011_|Anchorage Electric construction.Underway,feasibility/final design. ;Grant notin place.Requesting additional Round II!85 |Kotzebue Electric Assn.Kotzebue Wind Farm 12,075,535 |4,000,000 |8,075,535 |funds to supplement Round |and federal fundingExpansion14,807,535 (recommended) g7_|Fishhook Renewable Fishhook Hydro 4,555,922 |2,142,961 |2,000,000 142,961 |Underway,final designEnergy,LLC Construction 102 |2K Environmental Delta Junction Wind Farm |9 363.886 |6,269,750 |2,000,000 |4,269,750 |Substantially completedPower,LLC Construction 103 |Kodiak Electric Assn.Pillar Mountain Wind Farm 23,319,539 9,650,000 |4,000,000 5,650,000 |Completed Underway,final design.Requesting Round fil 104 |Haida Power,Inc Reynolds Creek Hydro 17,145,000 |10,500,000 |2,000,000 |8,500,000 |funding (recommended).Seeking remaining financing from Power Project Loan Fund. 109 |GVEA Eva Creek Wind Farm 93,341,555 |79,340,322 |2,000,000 |77,340,322 repress.in place but feasibility/concept design in ;;Tdesien phase.,iw Delta/Greely School Delta School Wood Chip 2,868,000 |2,868,000 |2,000,000 868,000 Underway in final design phase.Requesting RoundDistrictHeatingSystem(tl funds (recommended) 222 |Kenai Winds,LLC Kenai Wind project at 21,000,000 |5,850,000 |2,000,000 |3,850,000 Underway.Requesting additional Round fll funds forNikiskiexpansion(recommended) ;Ki , 302 |AVEC Emmonak/Alakanuk Wind |10,733,179 |9,670,361 |8,000,000 |1,670,361 |S"@ht NOt In place,AEA working with AVEC toredefinescope Renewable Energy Fund Status Report Page 7 of7 January 26,2010 Renewable Energy Fund Round 1 projects Alaska Energy Authority LB&A Report 2/25/2010 LB&A Grant Report Table of Contents ti Alaska Energy Authority Renewable Energy Fund Round 1 projects LB&A Report February 25,2010 Table of Contents IMtFOCUCTION ......cssesceeteecenscecseeceteeseseseseeceesessersnesessneseeasusaeersuecensnacssageessaeeenenscensesesnass Project Development and Grant Progress .........ccessesscosceecseecerseesssacsesseesseeesetseeesees Grants PLOBLESS ss essseersrerssensnsssessienesssssegsnes seveacneeeecessssaaeeerseasensaseaseseesersesseeersaneneess PrOgress ON PrOjects .......sssccssesescssseseseesvesssssvensrssesssrsesesseceevsnensesesesesarecesesnestesssesses COSt SAVINGS oo...sscccessessnsecesssccoosseteesessenenesssnseseeseseeesessussedobecesseaeeescessseessensnaneeessanens Appendix:Renewable Energy Fund Round 1,Project Status........ciccscsecsesesssseseeee Alaska Power &Telephone CO ....cceccsssssssnsccnscesesersessesssevenscsnestuesessseasesasssaacessescneveneees North Prince of Wales Island Intertie Project ..........c:cccssscssrsesssescerecsessescectenessneseses Alaska Environmental POW?.sesssssssssssessesssssssssssvessessessessscssssavssssseesesssssessenessecnesnsceres Delta Area Wind Turbines-Construction .....cc.cscccssesssessssssrcessesseesssnesssesseeesneeseesees Alaska Gateway SChOol District..c.sssssssssssessssesssesvessessesseesscssesssssssscssessvssessuesessssasensesees Tok Wood Heating CONSTUCTION....srererseeen sosecssecessseesseeessseseesseesenseronsusossanesesncerenees Alaska Green Energy,LLC .i..ccssccssscsscsssesescceesscsseessssonacssscsrscsuevsessensceaaecanscessensnesnereneass California Creek Hydroelectric Feasibility 0.0.0...ccsccossssoesssessssecscrssccsseencorssesteeos Alaska Village Electric COOP ....cescsssensessnscescesnsesasessecessseceseasesaseeensescnssscenaateseanessnesene Ambler Solar PV ConStruction.......ssssssssseessscscssssscsoseseserscenescssneassecesereeespenseeeees Alaska Village Electric COOp ....:ccessesccssssscscescnsnseevooonscsssonasessacenessossssetessnseseseesnseesenes Cosmos Hills Hydroelectric Feasibility Study ..........cccscssscssescserteesarssesceneeses veneees Alaska Village Electric COO ....cccssssccsssssscecessssssecsesenecsonsanecssuasecestoseutecesenasacessenseseennee LB&A Grant Report Table of Contents iil ere eSO Pere ceer reer rererrerrerny ooo oeesoccoagacooacencsccosoonreN Deven eeccrertoseeeeeeerseeaesessc” PocP cee eS ere Rete tte rere rer erers Sree roveeueserenenceenrsnensestne Mekoryuk Wind Farm Construction.......scssccsecorscssscsereessstseasssessesssssensesesseseseceresonseeeseeaesenssasensesenssensens 13 Alaska Village Electric COOp sisscssssessesssccsscescssscsesceeseeessaeeeseeesseeecessnseceendscsdsesaecsensodseedenenssaesunsuneesssessesenseses 14 Old Harbor Hydroelectric Final Design...ccscssssecssessssseecsseesssserssasseeesssesesseeessneaasessoesensssopsuevenssssass 14 Alaska Village Electric Coop seccsssssunansenssesse seeeeeooeeeeeensesesessesenssceesersesnseecesoussesueaueaecsescevacsseesseneavsavsassnvesees 15 Quinhagak Wind Farm ConstructiOn...c.ccsssssssessssesessseseessesssessesecseessscscsseesseesevecscssevavscnssssecsssssvsvsneseaeseea 15 Alaska Village Electric COOP .....:ssssssscscsssssesceesnceessceesseecssascnssssenssesensasseessaeessaaaessoncscsscusessesscesssesvessesesaesoneaens 16 Toksook Wind Farm COnstruction........ccssecccssessscesecsesssssessssssesssesssnesesseeessneeesssepesesesauecssessussscapseesenense 16 AlasK WIN EN@rQy ciccsssscssrccvesercossnccescsessseesonsecesecessaeeseeeeenesseesoeensaaseensssaecssaessenaeersusseeesensatessasersneesansecuesas 17 Nikolaevsk Wind Farm Final DeSign ..........:scesessssesesesesssssssecsosssncsssavetacssaneessasesssssescepsssensesssensenesanesvepeers 17 Alaska Wind POWEY,LLC.......ccccccccssssssssssvsavsorsnrenerccensacenserarensssssssssnnseueeuseseseseaseceneaaneateuvasaaceecaasccnsesssesaaseneeen 18 Coal Mine Road Wind Farm Final Design ............cscccsssesssssscessseersneesseesssssennevssanesssssesenscssaeegessesnuensonssensers 18 Aleutians East BOLOUQN ....sccccccscessscsccsessscecessancessescesesuacecesusensssteesssesseneeesassecesesssecesasesensenceuesvaseutssenesesessasense 19 Aleutians East Borough Feasibility StUCY scsecssesssessscsssessansesssanseassersnteeccesssssteessersenestsenee sesceaeveeuaes 19 Anchorage,Municipality Of ...ccsccccsscccssscsssnscvsscssacvsnscssnsceennssseusssesscsaaenaassseeueesasseusausssesusnscecsueesssessnsesrenaunas 20 Anchorage Landfill Gas Electricity COMStrUctiOn.........scccsssscssserssscescscssssesssecsrsesssseueseecssseessesessasevsnesesnts 20° AUK,City Of.cscccccsenscnseesnessecceescnncensnssssseneesaeecesseesaaeeeeseaeeeeeeesneseaeerecaseaessaeeescotasanssenenscenaecanesasnueesaesensenes 21 Chuniisax Creek Hydroelectric COMStruction ......sssssssssesessesecssssnsssstessnerssecesessessssenseecsessenenessesentessseasees 21 Bethel,City Of cssssccsessssssscssssccessscceessssscnsscessaesssnessescsecsonssssesustseausecsssensesanassessasaaaseosgseseusuaenecenesensesasesseeeasenses 22 Bethel Wind Power Project Times FOUr.......cssccssssessccsssrsesssrsrcesscsnsseesesssccsnsecessesssnenensersussrontegnaasenseesees 22 Burro Creek Holdings,LLC .....cccsssscssnccsescesestsseseesesccceseeeosesssssessossnsonseseseeesonsesengesseesenausressaneconsneeesaneosaeeeeeeecens 23 Burro Creek Hydro Feasibility Studly ..........ccesssersesercessnessssscononsscnsesseasensescsensenenecssaaeasousneeessnneseesseesensets 23 Cheesh'na Tribal COUNCIcssssssssssssssssssssssesusnseusosesansssstenesasninesiasseenssie sesaveasscesseseaseveaseaveaveseneanseneass 24 Chistochina Central Wood Heating COmStr ue seseceecsseceseesseesessssssscsecentoeseneceeraaaeesessseeestensneecnnessenes 24 CHENG POWEL,LLC...ssccesscccccssecsessenssnneoneeeseeessssanacesessesnaeeaeesevseessesuaaeesensatanecsseeusnssnaaeaeesessegessepsessannaeessaanoaees 25 Biomass-fired Organic Rankine Cycle SySterm uu...ceesscsssseccsssssensseeserscensceescsscesessenseesenceseeseasonosseseneneess 25 LB&A Grant Report Table of Contents iv Chignik Lagoon Power Utility ...ccccccsccssscsessceetneeeeseeeeseseseeseneeseeeseeendaseesaseaedesepeeaeeeonaesseecnsasedeesdeenuaasatenseoe 26 Chignik Lagoon Hydroelectric Final DeSIgn ..........cccessccssscessecessescsesessoneeecnedcseeeecssersersesseeeseaeasesnecesaneesees 26 Chignik,City Of .c..ccccoscssscsssestssssescecocereensseassesseassseesseuseeaseeesseesonoeeneseeasseneeeesoeasnseeseaseneessenaeernenseeoreebnersassoees 27 Indian Creek Hydro Feasibility Study ..........csessccsecessssessssecesssoeessceracssesesssasssessssseeseveessessesestesasesoneesesaees 27 Chilkoot Indian ASSOCIATION v.seccssescsesssssssssecssesvesseeseecesnsecessnecsacesssaasesssnessacescesssesssesaeecessnanesssasoeenesscunoesnaese 28 Haines Central Wood Heating COnstruction ..........ceessssssssseccesereesssessnseasaesesressaasesecoeaeessesssananeesseseessnaaees 28 Copper River SCHOO!DIStriCt ......ccccesesssessnessscesescsensecssescnsaseosssessescnsanersesesesseecnereeeusevecesesaeeaesgaeseaesensaeesnes 29 Kenny Lake Wood Boiler ASSOSSIIEMME cssscscccesesssescevesssnsssccusesnsncesoresecennsnesee Sbceeesseeeeeaseaeeeeesseteeensnseneeresses 29 Copper Valley Electric ASSOCIOVION ..iccuscsssscscesssnsccessssecessnseeessecesscesesseeeeesesuanesseceessreeenensanagecesesenesecessoesoesses 30 Allison Lake Hydro Feasibility Study ..........cesessseccessesssseesesseesesececcssenveseavserersueeaseeceensecosenesteeevensesonens 4430 Cordova Electric COOPCrative .....csscssssesesssssecnsccsceccsseccsenssesneeesisacesseseensceessanesseasonsscesseessescesnecerseaversnsseeesesee 31 Cordova Heat Recovery CONStrUCtION.......cccseccsccvsssseessssesssesssnsesenssecssesereeseessssesesnenenseeseenesaspeeneeesnesateene 31 Cordova Electric Cooperative Se eneeeeeeessseaannaaaeeeeeeeusesauanaeeesesensbessaauaneeeceeeeceneausasescesensnaeunaaseesseeenesseanaenaeeessepens 32 Humpback Creek Hydroelectric COnstruction..........sccscscecessssessesseeseesenseeesesesseesnssteeegeaseeesseaseseseeseseaseeeers 32 Delta/Greely SCHOOL DIStriCt .....essescssssesncenscseseesnessneseeseateconseonessddeneneonsecsesendseaeeeneseeeeesersnessssessdserassndreaaes 33 Delta Junction WOOd Chip Heating .........ccesscsssscsssecessseeesseesesceeseseeesesserssseceseeseseesneaneeeneeesseasesseeessgsesateess 33 Fishhook Renewable Energy,LLC ....cscesssvesssevsssseesssnssesesssceccssseeeeeesssencensseesessesesepeseseesasesesescsnsenecsrsnentasseees 34 Fishhook Hydroelectric CONStructiOn.......cscssesceseseseesreessesstscesasensesceneceeesasssesuecnensscseeecetesnnseneaseinee-34 Golden Valley Electric ASSOCIQtION ......ssscccccsescenccessrsssesseessanecssnecsusresesteuesenesstesconsssesseneecuseueeessneeseseaeesneerenee 35 Eva Creek Wind Farm Feasibility...csc eessscsssccssesesssceesrecocrsreserresesssneessasessesvsesorsaausscossessescsuseenscuseeanece 35 Golden Valley Electric ASSOCIQtION 0...scseccsessssesssesssessscsscessessscrsssonensessucsersacessesussessotesensnnsssescsseessscsonrecesnasens 36 McKinley Village Solar Thermal Comstruction.........ccceccscssssessessecetscsecseccesesscusssscsseesaeeserectersessnesssseseneres 36 Golden Valley Electric ASSOC....sssscscssersecenssnssessenseeesssesvensessessnesnsessessseessucseensessecsussessenseneaneesaeseseestssaeeneentenas 37 North Pole Heat Recovery COnstructiOn........cccsssccrcssssececsssseeesecsssseeeessesensessssessseeneeeassevsnsnocsessensessersoes 37 Gulkanna Village COUNCIL ..cccsccsssssecevssensssevssesecseeseessecssessensseessusussecsesonsssausuecsesnseesrasiessesecaseaansseusseasseseeaneess 38 LB&A Grant Report Table of Contents v Gulkana Central Wood Heating COnstruction..........sccsscsssscerssercessecevsssessnsesssecssssececeenesseneecessuveneneeencons 38 Gustavus Electric COMPANY vr.secssseersersseesescsssssssesssssensenensessneueeessnssesesasnesseseseesanesesesecnecuscnesqssesenagnesensenesgons 39 Falls Creek Hydroelectric CONStrUctiOn........sssscscssssssssssssessessscscesnecssssscsssesnsescsssnsessssesesssnssesensssnsscennss 39 Gwitchyaa Zhee Utility COMPANY .sccscsecssescccnccssncscscsnsconssssceenecsevaceoesnsseenesoesenseveusenssssaseessessesesanessessenseneesees 40 Fort Yukon Central Wood Heating DeSign .0.........ccessssccssssscsscetserscssscsssesnscssscssseeseoussssesetenstensecsescnesnsars 40 Hida POWER,INC...cccesscccescccesscnsesscecessreussuscensesonensasnsseesceeeesoseasenenseeusssssasseseeseusesenoesensecessersesecssesusesesacasnescoues 41 Reynolds Creek Hydroelectric COmStrUction ..scsssessssessesssssssssssscssssessseessvessiesssessvssssesasssvessesessessavesnvecaseess 41 Haines BOrOUQH scssssssssssssceesnsesseesssssssseceseen Ssaeeeveseceeesneescnssensesescseseesnarsseeseseeseecesedesesecuapansussessenstesss sessseneeess 42 Haines Central Wood Heating Feasibility Study ..........csssssssesscsssecssesorsecessscerecessseuseconeesesssescsevestecesens 42 Homer Electric ASSOCIQtION....essssssessccntaessccesscsscensecsseeseecsceesussssensdesescessceessegensesseusaeunsssussutuseesvensssseseasnaaecass 43 Falls Creek Low-Impact Hydro Assess PreCOmst ....sceccsssssserssecsscsevsvscsssevssnessssetseszrssesaeeeeessseaseessoesetees 43 Homer Electric ASSOCIQtION .sessssssesesscnsnessssesncessecssecnsecssessasensassnssasssesseenscesesasenscessessnsecesstesesesenessesersessnssess 44 Crescent Lk/Crk Low-Impact Hydro Assess Pre-Construction........cccssccssssescessessscccessscsescsssnestarsnsseesenees 44 Homer Electric ASSOCIORION...cccccscssecsesscssessseseessacsccereeseasesensseseeseesseseeseesssesressecessessnecenseesensesesesnassenecssesateets 45 Grant Lk/Crk Low-Impact Hydro Assess Pre-Const .......sccsscsssscsssessssecceesescesssseeeseseessnssssesessescuseseeesnateeases 45 Homer Electric ASSOCIOtION ..esesssssseseessvssessessessesssssseesessvessssvcssnsessncansvesecsuesveaesseeeeueeeseeeceevsesecnseasenseseceeseeseess 46 Ptarmigan Lk/Crk Low-Impact Hydro Assess Pre-COnst.......ccsscsssssssssscsssssserssseesssssecenecereesnesssssnseeestsnases 46 Hooper Bay,City Of ...ccceccsssscesscsssssessnsesecsessecsssssesessesoecsessessestcersseseseensessseeeseesssssessossesessnavsnesueanessssneeesenseas 47 Hooper Bay Wind Farm Feasibility....cssscsssssesssstersssccoscssnscssssesserssssansesscseesenssseeseneessaussnsagensseuesenesseesees 47 Independence POWEF,LLC va..scescsssssssvsesnnccesserssscssnsessssensesssssssnscssssscseessesseeesonaseaconsenseaneseceseueraseesenaseasasanaaeed 48 Fourth ofJuly Creek Hydroelectric RECONNAISSANCE .......se esscccesenscsssessseascessessscnsecsescnssessseseeeesuccnserenees 48 Interior Regional HOUSING AUtHOTIY ....ccsscssessvevacseensecnseceuncessecessecuesessacensnsassstsssascneaguesaeusessneessnessnsgesusnseesnes 49 Galena Wood Heating Construction ........cscccssessecscssessssecsssssvenccssecsecesencensesseuscessessssusecossaecseneeeseusenagesnags 49 JUNEAU,City &BOFOUGH Of..cssccesscccessssccnsesensecsvsncseaneesanssnsnsesenscesecssuseeessasesauesensevensessarsceesesssceueevensassraseuanes 50 Juneau Ground Source Heat PUMP CONSE?.......ssssssscsersssscctsccssneesesvsnssseesseceseeseesetscesuscenesessenseersescasenees 50 LB&A Grant Report Table of Contents vi Juneau,City ANd BOLOUGH Of ...scccsscseecsesesssscessnesecsoesnesseevsnseeessenesssssesensesessesseaeessdeeesoseesseecaseseeseassestanteeventers 51 Juneau Airport Ground Source Heat Pump SensSeneeeraaeeOeeSODEDDDEEDDOELALGGSOCILOSODDDELACEEESESBEOGeaueeEAGAEDEEGHESAEOEEEOSEES 51 Kenai WINS,LLC .cccsescssessvcescseessvecccosssccoocovsencnsessoccensaceeevessnsooosccssceescoceovpessoosanccssteessonctsenssasseccvsorovescoazeuaraces 52 Nikiski Wind Farm Construction ........cccccssocessccsoccsesevcccevsssesovsasesssseoossssccnsesevsaesesssecenausssnsconseeseegsascesesess 52 Ketchikan Public Utilities ....c.ccescesosseceeeesneceseeeccesceesssessseescevenesedevensondsesdsvensessuesaesessesesesnasssneuseenevseseserscns 53 Whitman Lake Hydro Final Design .........sssesssssessescesessenssssensssesessesassnessenseseenessscenssecsuecasensssesadseesaarsesons 53 Kodiak Electric ASSOCIOCION.cc csccssescessstsssennsesseecsnaeeseensneecsaesecsaneveneasseseeeessaessaaeepaueesesdesesagecenausesssaessaeesssars 54 Pillar Mountain Wind Project -COnStructiOn........cescssssccscessrseeccessnsesesssesseesssaasssseseceseseaeeseresstennesesees 54 Kotzebue Electric ASSOCIORION...ccccccscssscssesensveestensestenenececeseeeeecssaesseecesueeseaceaesenesenesraeerasenensnnessnsesensessensesesnes 55 Kotzebue Wind Farm Expansion Construction ...........csssccccsssssesescsssssscevsesasecesecerssssgscassnsacesersesenasecestnees 55 Kwan Electric TraMSrmission .sessssssssssessssessessessssvessesssesscssssessvcasssvesessessussessecavovacsvesvecsesnsacsussesaussesavaneancaveaees 56 Kake-Petersburg Intertie Final DeSign ............csssscssesssesesssensneeseneceesenserssesssosessnseesesenacssonenepesaasseueaneess 56 KWIG POWEF COMPANY uiccscsscscerersccesencnenseeeensensneseeeenseseaeeeesseeesenseneaeaeeeeeeeeaneneessusenvedeeesseespeupendeeespessasessesenss 57 Kwigillingok High Penetration Wind-Diesel Smart Grid ..........cccescssessscessseecsrssencseverssraasesesasesssasessanesese 57 Lake and Peninsula BOrough...cccsssercseesreesesessssnsasescsereuscueesscnesseesscersssesterssarsnesssesoesresesssessseaseseasenseass 58 Chignik Lake Area Wind-Hydro Final DeSign...........ssscscsssessceccessecessensesssesessseecnsessasscesesseesessaesssseasesseanens 58 Lake aNd Peninsula BOLOUGH.....ccsscssessssenersscsesscsesesecesenneeeessdenepeeeeenaaeseeeneneeeeseseedeeseeeeseceseoussuadeeserenseseserenanes 59 Lake Pen Borough Wind Feasibility Study...cs ccscseccsscscssorenessseesereecsssesecserenssavosesanssensaecensuseersateeseners 59 Lake and Peninsula BOroUgh ...ccssccscccsssvrsescessseesseessasnsacseneesessereneaaeesaeeessaaeessueeesseseesesesecasesenscecessneessnsesennas 60 Lake Peninsula Borough Wood Heating Final Design .............:csesssccesssorsnseesseeseorosesseoccosesceseneeeseneesenenss 60 McGrath Light &Power COMPANY c.scsscccscccsesencevsscsesseesesessssssesssssseeesernescoeseesseueerscussesesssecssaaesnsssenacobentoeseas 61 McGrath Central Wood Heating Proj Dev PH IIl..........c:sssccesssssesecssrnscscsssssssecesseesersrstessecscrereressersasevseee 61 McGrath Light &POWer COMPANY ......cssssccccesessscessoesesssesevssnscevecessnaeessesenaeesesssanscnsnasesssesonaaeaossesaeeeseuessceeeess 62 McGrath Heat Recovery COmstruction .....scccccccsssscssessscsssssneceaseeeeseesssssssnseneeesesseseansaensecaseeeeepesensaaeaaaeaas 62 Metlakatla Indian COMMUNTIY ve .escesssssscseceesscecessneessnseseosnsaeevesnennesceceasaeeeenseneaesssanacsessaeeeeesenanaeensecgneestenbed 63 LB&A Grant Report Table of Contents vii Metlakatla-Ketchikan Intertie Design and Permmittin .......ccscssssrsscsssssrcessescoesesorsrsersersnsssssesseensseesvsesess 63 Native Village Of EYCK v...scssssssccesesvssscssecsesssssssstenscersccnaessscessessenessecsaseesesecscensesenesesesstensceveeconscansvaguseevatsseees 64 Cordova Wood Processing Plant-Purchase and SCtup..........ccsssscssccssrssessessssesseesssensuesssescsesssasesesassess 64 NUKOISKT IRA COUNCIL ...ccsecescsseeneseeseescessevscessssvacessasssassacseanecsansssuesoussssnseseasssteneseessssensseoevansesssssuavnevenssenanenas 65 Nikolski Wind Integration COMStPUCTION..cssscssesssssssssesssesssssessssssvesssecssecsnsesLenecessssesceesaeeceessassvsneasesenaessenee 65 Nome Joint Utility SYStOMS cecssssssssceseseeenee senecnseseanencesecensussnseansvenesonesessesensseneaseseeeesseecesesousassenecsnaeensesenasesea 66 Nome Banner Peak Wind Farm Transmission COnStructi........ccsccscscccsssssecsscssevsscsssscssvsssesssssessnnvsacsesens 66 NOME,City Of.eccccccccsccsescessesssscesenseeessccessnecsseeseraseeasessnesesseessssssesnessaaeseesssasessusseageussaseseueusacazsuacesseoneseenssnssss 67 Nome/Newton Peak Wind Farm Construction ......ssccscssecssescesescssscsssssssssssesessteresasecssseasessessscssessessavens 67 Northwest Arctic BOPOUGH......sscsssccsssssssssnsscsevsessnesseesscesseeesenssssesssessessesuessssssesssesenssnesseeeasenssusssoseasenseesvess 68 Buckland,Deering,Noorvik Wind Farm Construction sa sevcseessaeusecsenneeees saeaeceeeseeseneueceuacsecuaesscesensseaessessvees 68 Northwest Inupiat Housing Authority ........sescccsssssssssssoscssnssssssscsssnsonscsssescsssessecsnseensseceseessecesutssseserserssenesses 69 Kobuk River Valley Woody Biomass Feasibility...ssccssscssssccsscsssssesssesseesssesseeesrsnessssssssseeseessetoens 69 Nushagak Electric and Telephone COOperative......ssccsccsscccssssserssecccrsersesessasenssesesssaneusevscesssaacessenseevsneeessranes 7 0 Lake Elva Hydropower Feasibility,Permitting &Final DeSign ..........c:ccsssscsssssssesssestnessseccesscsesrsessarsensenes 70 Petersburg,City Of...ccccsscccsncessesssccsscsssessecssccssussnssssessssssessusausssessessssssevasessensusedssesesescesseesessesarevesseressevessess 71 Ruth Lake Hydro RECONNAISSANCE ......ccssssccsesnsccsesescessensescussenseecssnevessssascsessonaoesesesaesoetenseesneesesseasesseaeerssea 71 Puvurnaq Power COMPANY vessesssssssessssssssssssssssvessesecesen hseevceseseecuevecesseevesseessaaseusaeeeneeseseeeepecevevessessesenenes sever 72 Kongiganak High Penetration Wind-Diesel Smart Grid sesntansetantiasnetsnesntseastsusnseseesasesinassciasesuasense 72 Sitka,City ONA BOLOUGH Of.....sssssscceesessccnssenseenecesnceseesscesnesscensneccasenssecessssessssoesseeessssenesseeceseneceuesnesuseceesenesees 73 Takatz Lake Hydroelectric Feasibility ........:sssscscsssssessssssscseccssscssseessesssssesesesssecceseesenssadsacensesassesenseass 73 South FOrk Hy,LLC v....sscscsccssseesseesscssessnsssccesnecsessnesersssusessscucssseasssescsessaesnenseessscuenseenansenseontensessnecassenesaeess 74 South Fork Hydroelectric COMSEFUCtION...sssessssesesssessssscssssssssssssesssuvccsssccessescessecessecessecsuesnivesssscssuseessenvenss 74 St.GEOrge,City Of cccccecssccssscssccsnssessscscsnscssecssvessssesesesssenssssssnsssnsssssessasssaeceensesensensecousessnesensessvecseceanesnses 75 St.George Wind Farm Construction ........cssscscsssssssscssscssssessssssesssssssvscesssssssaesessossssenanecsranensssssersesscsasseans 75 LB&A Grant Report _Table of Contents vii TDX POWEL,HIG.cccecsesssssesessessnecnsesessssnnesseneneeseeeseesssaennonseeeesesepeneAeeeeeeeeeeeseesesnaneeesseerseabssoasseusseeaneesetessenesseas 76 Manley Hot Springs Geothermal Plant .........sccsscecccsseesssssescsnessesseeesssasseeeseesssesestsehaeeusnesvansssessseesenaessanss 76 Unalakleet Valley Electric COOPCrAtiVE ....scussesesssssesssssssessscrsversocootsnssaaasesersoasorssaeestseceaescessescsueesevensuesesosovoe 77 Unalakleet Wind Farm Construction.........cccssssssscssssssesssevensevsssesssanesenseeseasesasessnsesseusseseseatavsesessonnnsseesa 77 University of Alaska-ANChOrage .o.sssssssssssesesensesesessnensneescesscssssesesensassasasseuseaesesesesssasees seve ssssssssssaseaeesasagensasers 78 Statewide Hydrokinetic Feasibility Studly..........c:csssessscscssecssscessseccssescesesesssceseaescenscessssnsasecsssensuteceseeess 78 University Of AlGSKG-FOIPDONKS ....ccsscsscsssssensssssesscesessessesscesssessscecenscassnssesuesseeaaseasaessesstecscuneuearsesesseseuesussetsos 79 Nenana Hydrokinetic CONMSEFUCTION....csscssecscsssssssccsssssvescecsssssseceecsssvsecssstsessessesssssseetsesssecsensasseesessssseesesess 79 Whittier,City Of ..ccsccccsssesssesssscseecssscesssssescnscsonsancesnscerssesenstenseseeseaseoesaesesseessontssnresesnasesscescessureccesevecsusesuaeens 80 Whittier Creek Hydroelectric Reconnaissance sesevesvesscssccnecsvsevesucsussvcesesscsseusessssaescesevavsusssearenseascansavenens 80 Wrangell,City ard BOrough Of .......ssccssessessoseenscssensesessacsseeeesnsevecsecnanecesesssessnesssesessssepsnsenseseesusnseseesseessaress 81 Wrangell Hydro Based Electric Boilers COMStrUCTION ...........cccescssecesssecessessetsaecsueceeseceeecessesessaseseseasvonsvesea 81 VAKUtAt POWET .eccccssesessccsrssssenscssessevesarsesesestesssenssenssesesssecdseeeseessaeessesssneesseessessassssensesesscsserscsssensssasecstesgnees 82 Yakutat Biomass Feasibility........ssssescscsessessssssrcsenssesesesessecssseseessecesesssessnegessseseaceeseseesssssetassssesssenseesesens 82 YUKON River Inter-Tribal ....c.sssecscsssssnssssesssscesscesecsssesnseseessesesssssssesosesossessasesensnsnssassssseeessesssesessessesestessseenees 83 Ruby HyCrokinetic......scscccsscscserssesstessessnerstcesscestsseceseseessnessnessnsesssesseeessesesseaeessessneeseusensessnessusecseseaeease 83 KeNGL HYCO,LLC vc cecccsessscssecessenesevsnsecesseesossesensneenseecesaeesnessseeeseseeeseeeeesesenensseenenerssaasenaeeecouseseanesnesaneanesss 84 Grant Lake/Falls Creek ........sssssessssscesssscsscesessssceseesscsesenseesensesesaeeconsesecesseevaeesenssessseseseseusosresecsusevsureseveness 84 Cross Reference Table by REBION ssesssssnseesee Leneanceseeneaeeceaneeeseeeeeeseeneeseesevsuscevnedsescessdesuednaeeesensnansenteesaaeeass 85 LB&A Grant Report Table of Contents ix Introduction Project Development and Grant Progress Grants Progress To date AEA has issued grants for 60 Round 1 projects.Grants have not been issued for 13 projects. Applicants have decided not to proceed on two projects:Nikolaevsk Wind Farm final design and Galena Wood Heating construction.AEA is reallocating funds for these projects to the Takatz Lake Hydro feasibility project as directed by the Legislative Budget and Audit Committee. Maximum funding amounts of $4 million and $2 million were established in high and low energy cost communities respectively in order to achieve a wider geographic distribution of projects.Although the funding caps did enhance geographic spreading,they also resulted in delaying construction of five projects totaling $15.7 million.They are as follows: 1.Kotzebue Electric Association Wind Farm Expansion ($4 million).KEA and AEA staff are working to modify scope of work to address the decreased available funding.KEA has submitted an application in Round 3 that is recommended for funding. 2.Nome Joint Utilities Newton Peak Wind Farm Construction ($4 million}.NJUS and AEA staff working to modify the scope to address the decreased funding and the need to integrate the new Banner Ridge wind farm. 3.Haida Corporation and Alaska Power and Telephone Reynolds Creek Hydroelectric Construction ($2 million).Haida Corp and AP&T are requesting a Round 3 grant and financing from the Power Project Loan Fund for the balance of the project. 4.Delta Greely Schoo!District Wood Chip Boiler Heating System ($2 million).Delta Greeley SD has 'requested funding from Round 3 for the balance of funding for the project.A grant is in place for Round 1 funds. 5.Nushagak Cooperative's Lake Elva Hydroelectric ($4,006,500)also has construction funds but insufficient financing.A grant is in place,with $300,000 available for preconstruction activities with the remainder reserved for construction.In Round 3 AEA has recommended reallocation of $700,000 of these funds for preconstruction activities for Grant Lake Hydro,a related project. Page |1 Progress on Projects This section provides a summary of the progress of the projects. Figure 1 summarizes expected progress on completing Round 1 projects broken down by the of project development phase (Reconnaissance/Feasibility,Final Design/Permitting,and Construction.By the end of calendar year 2010,AEA expects that 46 projects will be completed.Most of the remaining projects are expected to be completed by the end of calendar year 2011. Figure 2 provides a cumulative projected drawdown of grant funds by quarter to the end of calendar year 2013.By the end of 2010 AEA anticipates disbursing approximately $50 million to grantees for Round 1 projects.AEA anticipates disbursing approximately $73 million by the end of 2011.81%or the total disbursements will be for construction projects. Fig.1.RE Fund Round 1 Scheduled Project Completion80 70 Cumulative#ProjectsCompletedpb2009 2010 2011 2012 2015 Calendar Year @ Reconn/Feas w Final Design m@ Construction Page [2 Fig.2.RE Fund Round 1 Estimated Grant Drawdown (Cumulative) ww Reconn/FeasSMillion #3 Final Design @ Construction Cost Savings Cost savings can only be assessed after projects are in operation and have enough performance data to provide a realistic picture of fuel savings and operation and maintenance costs.Fuel price will also have a very great impact on savings. Currently two Round 1 projects have been completed and in operation long enough to assess savings. AEA provided the following information on cost savings for Kodiak Electric's Pillar Mountain wind project and Gustavus Electric Company's Fall Creek Hydro Project in September 25,2009.No new factors have arisen that change the observed savings. 1.Pillar Mountain Wind Farm.KEA estimates savings of 5.8 cents pe'kWh of power generated by wind,assuming the current displaced fuel price of $2.10 per gallon.They estimate savings of 12.7 cents per kWh of power generated by wind if the fuel price rises to $3.00 per gallon.The estimated annual wind production is 12.2 million kWh,giving a community savings of approximately $708,000 per year at $2.10 per gallon fuel and $1,549,000 per year at $3.00 per gallon fuel.Savings are translated to a lower cost of power adjustment (fuel adjustment)on the consumers'bills. 2.Falls Creek Hydroelectric.GEC estimates savings of 29.3 cents per kWh of hydropower assuming a displaced fuel price of $3.00 per gallon.The hydro plant is expected to generate almost all of the community's electric energy.Given sales of 1,572,316 kWh in fy08,this translates to total savings of over $460,000 per year (before PCE).Savings will increase as fuel costs increase. Page [3 In the meantime,the best data available for assessing savings of other Round 1 projects is based on material submitted by applicants and evaluated by AEA,UAA Institute of Social and Economic Research, and private economists during proposal review.Figure 3 provides an estimate of cumulative yearly diesel and natural gas fuel savings over the next several years.The analysis assumes that savings will accrue during the year following completion of construction.Units are given in million Btu or diesel gallon equivalent for simplicity. By the end of 2010 fuel savings are expected to be approximately one million gallon equivalent per year. By the end of 2011 savings are anticipated to be 2.5 million gallons per year,By the end of 2012 savings are estimated at 5.8 million gallons per year.Actual savings to the consumer will be assessed through collection of detailed data through a monitoring program. Fig.3.RE Fund Round 1 Estimated Cumulative Annual Fuel Savings 4»7,000,000 900,000 o L 80"5 6,000,000 800,000 ne2700,000 =5,000,000 >Ww 600,000 -o @ 4,000,000 500,000 & v Fe Q 3,000,000 400,000 4 -ca300,000 (OoS2,000,000 = -200,000 a.1,000,000 100,000 ci). re 2010 2011 2012 2013 Year Page |4 Appendix:Renewable Energy Fund Round 1,Project Status Page [6 Alaska Power &Telephone Co North Prince of Wales Island Intertie Project PBO 318;Grant No:2195360;Project No:409018 RE Fund Grant:$3,752,181 Project Type:TRANSMISSION Match:-Applicant Type:Utility Other Funding Sources:2,402,838 Region:SOUTHEAST Total Project Cost:$6,155,019 RE FUND EXPENDED $824,626 As of 2/15/2010 Project Description:. AP&T will construct a line extension to the communities of Coffman Cove and Naukati Bay,placing these communities on the Prince of Wales Island (POW)electric grid which is supplied with hydroelectric power from two projects.The total line is to be 48 miles (Coffman Cove =37 miles;Naukati Bay =11 miles)of overhead 3-phase 34.5 kV line.Milestones consist of 1)Reconnaissance,2)Feasibility and Conceptual Design,3)Final Design and Permitting,and 4)Construction.The project is also being funded by the Denali Commission under the Energy Cost Reduction Program. Project Status: AP&T has completed reconnaissance,feasibility,and design.AP&T has received power poles, distributed them along the first 15.9 miles of the line,and begun installation. The project will be delayed 3 months due to unexpected permitting delays from USFS.AP&T is in discussion with the State Historic Preservation Office on whether an archaeological survey is necessary for this project. The project will be delayed 3 months due to unexpected permitting delays from USFS.AP&T is in discussion with the State Historic Preservation Office on whether an archaeological survey is necessary for this project.Permits are required for state Department of Transportation land.These permits have been filed and posted.In this phase permits will be acquired,acquiring legal access to lands,and final design for the construction phase including a final survey of the route.Project completion is anticipated in 2012. Page |7 Alaska Environmental Power Delta Area Wind Turbines-Construction PBO 328;Grant No:2195370;Project No:410027 RE Fund Grant:$2,000,000 Project Type:WIND Match:801,500 Applicant Type:IPP Other Funding Sources:Region:RAILBELT Total Project Cost:$2,801,500 RE FUND EXPENDED $2,000,000 As of 2/15/2010 Project Description: This project consists of construction of IMW of wind power capacity near Delta Junction. Project Status: The wind project is nearly complete;both the 100kW and 900kW turbines have been erected.The 100kW turbine is producing power and the 900kW turbine has been commissioned but still needs to be interconnected to the Golden valley Electric Association grid.Alaska Environmental Power will sell the energy to GVEA at a cost-based rate.This rate is currently being determined with the assistance of an independent consultant hired by AEA.The project should be fully operational by spring of this year. Page |8 Alaska Gateway School District Tok Wood Heating Construction PBO 377;Grant No:2195417;Project No:402038 RE Fund Grant:$3,245,349 Project Type:BIOMASS Match:15,000:Applicant Type:Government Other Funding Sources:Region:YUKON- KOYUKUK/UPPER TANANA Total Project Cost:$3,260,349 RE FUND EXPENDED $394,387 As of 2/15/2010 Project Description: This project will provide the final design and construction of biomass boilers to heat the approximately 75,000 sq.ft.school with wood chips.The project will consist of a separate building to contain the wood chip boiler and the wood chip storage/delivery system.The wood chip boiler will be connected to the schools primary oil fired boilers that will be kept on stand-by at all times. Project Status: The project is 100%designed and is currently out to bid for construction.It is scheduled to be completed late fall of 2010.| Page [9 Alaska Green Energy,LLC . California Creek Hydroelectric Feasibility PBO 381;Grant No:2195422;Project No:407052 RE Fund Grant:$47,625 Project Type:HYDRO Match:4,825 Applicant Type:IPP Other Funding Sources:Region:RAILBELT Total Project Cost:$52,450 RE FUND EXPENDED $0 As of 2/15/2010 Project Description: These grant funds will be used to prepare a preliminary feasibility study of a micro-hydro system on California Creek in the Girdwood Valley.The following tasks will be accomplished:(1)surveying and mapping,(2)hydrology,hydraulics and geotechnical investigations,(3)electro-mechanical conceptual design,(4)preliminary environmental review,and (5)final report. Project Status: Grant activities are planned to begin in January and be completed in September 2010. Page [10 Alaska Village Electric Coop Ambler Solar PV Construction PBO00371;Grant No:2195412;Project No:411002 RE Fund Grant:$550,000.Project Type:SOLAR Match:55,000 Applicant Type:Utility Other Funding Sources:Region:NW ARCTIC Total Project Cost:$605,000 RE FUND EXPENDED $0 'As of 2/15/2010 Project Description: The project consists of the design and construction of a 15 kW photovoltaic array to be connected to the community powerhouse.The scope includes site visits to the villages of Ambler,Shungnak and Noatak to collect solar data and site specific foundation conditions.Preliminary designs will be evaluated and final system design,equipment specifications and construction estimates will be developed.Equipment will be procured and construction on one of the sites will lead to integration of the solar array into the community power system. Project Status: Currently the grant document remains in draft.AVEC held meetings and site visits in the communities to refine the locations proposed,Based on these meetings and a preliminary on-site engineering report, AVEC is proposing to modify the size and location of the proposed project based on security and shading concerns of the original locations.AVEC will submit the scope to AEA for finalization with a goal of construction in summer 2010.The anticipated project completion date is September 2010. Page [11 Alaska Village Electric Coop Cosmos Hills Hydroelectric Feasibility Study PBO00372;Grant No:2195413;Project No:407040 RE Fund Grant:$1,025,000 Project Type:HYDRO Match:50,625 Applicant Type:Utility Other Funding Sources:Region:NW ARCTIC Total Project Cost:$1,075,625 RE FUND EXPENDED so As of 2/15/2010 Project Description: This purpose of this preconstruction grant is to prepare a feasibility study of the potential hydro resources to serve the villages of Ambler,Kiana,Kobuk and Shungnak.In order to obtain the most efficient use of these grant funds,hydro sites will only be considered which are appropriately sized to meet village needs and lie within a 10 mile radius of the village to be served.The first step will be to review prior studies,update cost estimates and re-run the economic analyses to arrive at a short list of economic sites.The goal of this study will be to arrive at no more than a single site for each of the four villages for further study.The findings will be documented in an interim report to AEA which details the analyses and provides recommendations for further study.Community outreach to villages will follow, and then proceeding into feasibility-level engineering activities.Environmental field studies and permitting will be accomplished.Stream gauging,surveying and mapping,engineering and conceptual design will be conducted.The final deliverable will be a feasibility final report which captures all data collected,studies performed,and conclusions reached. Project Status: AVEC is planning for 2010 field work and collecting previous studies at this time.Interim report is anticipated in late spring 2010.Final permitting and draft concept design report is scheduled to be completed by November 2011. Page [12 Alaska Village Electric Coop Mekoryuk Wind Farm Construction PBOO00344;Grant No:2195384;Project No:410038 RE Fund Grant:$3,155,765 Project Type:WIND Match:875,641 Applicant Type:Utility Other Funding Sources:Region:LOWER YUKON/KUSKOKWIM Total Project Cost:$4,031,406 RE FUND EXPENDED $1,541,689 As of 2/15/2010 Project Description: This project is the construction of a 200kW wind project that serves AVEC's Mekoryuk power system. Project Status: The two turbines were both erected in September of 2009.In January 2010 the turbine erection contractor installed 12 thermo-siphons to stabilize the foundation.The outstanding action items for the wind turbine foundation are the installation of the thermister-strings and vibration sensors;both sensors wil!be tied in to the remote display system. The integration design has been finalized.Work to fabricate the control module is scheduled to begin this month.The Control module is tentatively scheduled to be transported to Mekoryuk in July 2010 and the turbines will be operational as soon as the module is installed soon after arrival. -Page |13 Alaska Village Electric Coop Old Harbor Hydroelectric Final Design PBOQ00390;Grant No:2195431;Project No:407039 RE Fund Grant:$225,000 Project Type:HYDRO Match:25,000 Applicant Type:Utility Other Funding Sources:Region:KODIAK Total Project Cost:$250,000 RE FUND EXPENDED $0 As of 2/15/2010 Project Description: This grant provides funding to complete the FERC licensing of this 300 kW run-of-river hydroelectric plant for the village of Old Harbor.Located on the East Fork of Mountain Creek this plant would displace most of the diesel power generation for this Kodiak Island based village.The grant will take the project through the following tasks:(1)initial site visit,(2)feasibility report,(3)Preliminary Application Document,(4)scoping meeting and site visits,(5)study plan preparation,(6)2010 summer field work, (7)draft and final FERC license and other agency permits. Project Status: The project is on schedule,having completed a study plan meeting with FERC and other agency staff in late January 2010.Comments are being collected now on the draft study plan for field studies to be completed in summer 2010 which will be subject to final approval by FERC.Estimated FERC license issuance and grant completion is proposed for February 2012. Page [14 Alaska Village Electric Coop Quinhagak Wind Farm Construction PBO00342;Grant No:2195383;Project No:410037 RE Fund Grant:$3,882,243 Project Type:WIND Match:956,360 Applicant Type:Utility Other Funding Sources:.Region:LOWER YUKON/KUSKOKWIM Total Project Cost:$4,838,603 RE FUND EXPENDED $850,500 As of 2/15/2010 Project Description: This project is the construction of a 300 kW wind power project that serves AVEC's Quinhagak power system. Project Status: The civil road and pad work was 85%completed in August 2009;the last 15%will be finish grade and gravel top after the crane has completed its work.The thermo-piles and thermo-siphons were installed in mid October.All three wind turbines have been erected;two of which are complete with rotor and blades.The third unit is scheduled to be completed with rotor and blades by mid February.The integration design has been finalized and materials have been ordered.The control module is tentatively scheduled to be transported to Quinhagak in May of 2010.The turbines should be operational in the summer of 2010 after installation of control equipment. Page {15 Alaska Village Electric Coop Toksook Wind Farm Construction PBO00343;Grant No:2195385;Project No:410039 RE Fund Grant: Match: Other Funding Sources: Total Project Cost: RE FUND EXPENDED $1,037,750: 215,306 $1,253,056 $271,823 Project Type:WIND Applicant Type:Utility Region:LOWER YUKON/KUSKOKWIM As of 2/15/2010 Project Description: This project is a 1OOkW expansion of an existing 300kW wind farm that serves AVEC's Toksook Bay power system. Project Status: All necessary permitting has been completed.A pad for the wind turbine foundation is in place and the turbine,rotors and tower have been delivered to the village.The tower base is currently in fabrication and will be delivered in June of 2010.The turbine will be erected and commissioned in the summer of 2010. Page [16 Alaska Wind Energy Nikolaevsk Wind Farm Final Design PBO0038S;Grant No:2195426;Project No:410043 RE Fund Grant:$180,600 Project Type:WIND Match:Applicant Type:IPP Other Funding Sources:'Region:RAILBELT Total Project Cost:sO RE FUND EXPENDED 50 As of 2/15/2010 Project Description: The project consists of final design and permitting of a 6 MW wind farm near Nikolaevsk. Project Status: Alaska Wind Energy has decided not to proceed with the project.Project is being closed out. Page |17 Alaska Wind Power,LLC Coal Mine Road Wind Farm Final Design PBO00395;Grant No:2195465;Project No:410045 RE Fund Grant:$105,000 Project Type:WIND Match:26,250 Applicant Type:IPP Other Funding Sources:Region:RAILBELT Total Project Cost:$131,250 RE FUND EXPENDED so As of 2/15/2010 Project Description: This pre-construction wind project consists of wind resource assessment,permitting and design for a potential wind farm in the Delta area.Funding from the Renewable Energy Fund is being combined with other grant funding and managed as one grant. Project Status: The grant agreement is in final review and is expected to be finalized by March.Progress has been slow in finalizing the grant due to the need for resolving potentially overlapping scopes of work funded by the RE Fund versus other AEA funds.Despite not having a grant in place,the grantee has been moving forward with wind resource assessment,avian studies,a preliminary layout,and an integration study. The project is scheduled for completion in spring of 2011. Page [18 Aleutians East Borough Aleutians East Borough Feasibility Study PBO00367;Grant No:2195408;Project No:407051 RE Fund Grant:$25,000 Project Type:OTHER Match:15,000 Applicant Type:Government Other Funding Sources:Region:ALEUTIANS Total Project Cost:$40,000 RE FUND EXPENDED $o As of 2/15/2010 Project Description: The funding is to conduct a reconnaissance report assessing possible renewable energy resources - wind,hydro,current,tidal,and waste heat recovery -for the small isolated communities of Cold Bay, False Pass,and Nelson Lagoon.The report will summarize the assessment and findings.The project will be administered and managed by the AEB and will be conducted by a consultant chosen by the AEB. Project scope includes compiling existing renewable energy resource studies,assessing existing energy loads and fuel usage,identifying renewable energy system costs and savings,assessing needed permits and land,and preparing an economic analysis of options in each community. Project Status: Aleutians East Borough has hired a contractor and submitted a first draft report in December 2009.The Borough expected to complete final site visits by February 2010.The project is scheduled for completion by June 2010. Page |19 Anchorage,Municipality of Anchorage Landfill Gas Electricity Construction PBOO0389;Grant No:2195430;Project No:402032 RE Fund Grant:$2,000,000 Project Type:BIOFUEL Match:3,700,000 Applicant Type:Government Other Funding Sources:Region:RAILBELT Total Project Cost:$5,700,000 : RE FUND EXPENDED $0 As of 2/15/2010 Project Description: The Municipality of Anchorage has proposed the design and installation of.a 3-4 MW power plant utilizing landfill gas,a by-product of anaerobic waste decomposition.The Municipality requested Round 1 funding of $3.7 million but funding was capped at $2 million. Project Status: Although the Municipality's application proposed to use "landfill gas-to-power”technology,Anchorage Assembly requested that other technology options be considered.Responding tothis concern,_ Anchorage Solid Waste Services Department is releasing an RFP in February 2010 to assess competitive proposals for utilizing the gas,currently being flared.Now that the Municipality's plans are clearer,AEA is working with the Solid Waste Services to finalize the grant agreement.if the Municipality chooses a project consistent with the original proposal AEA will make funds available for design and construction. The Municipality anticipates a design contract by June 2010.Construction is planned for the summer of 2011 with system start-up by September 2011. Page |20 Atka,City of Chuntisax Creek Hydroelectric Construction PBOO00335;Grant No:2195376;Project No:407033 RE Fund Grant:$996,000 Project Type:HYDRO Match:1,344,000 Applicant Type:Utility Other Funding Sources:574,891 Region:ALEUTIANS Total Project Cost:$2,914,891 RE FUND EXPENDED 50 As of 2/15/2010 Project Description: This construction grant is to complete the final design,permitting and construction of an approximately 45%complete hydroelectric project on Chuniisax Creek.City of Atka has secured another grant from Economic Development Administration (EDA)for this project.It will perform the work using force account construction managed through a construction management (CM)firm and a professional engineer,which are under contract.The remaining elements to be constructed include:dam with intake,penstock,transmission line from existing hydro powerhouse to City,new controls and interface between hydro and diesel powerhouses and final commissioning. Project Status: EDA funding required that the original wooden dam design be changed to concrete construction.The final dam design has been reviewed by the State Dam Safety Officer.Further design modifications are underway and will be completed in 1*quarter 2010.Pending EDA approval,construction is anticipated to begin with materials orders in 1*quarter 2010,with project completion estimated by end of 2010. Page [21 Bethel,City of Bethel Wind Power Project Times Four PBO00391;Grant No:2195432;Project No:410034 RE Fund Grant:$2,598,320 Project Type:WIND Match:599,666 Applicant Type:Government Other Funding Sources:.Region:LOWER YUKON/KUSKOKWIM Total Project Cost:53,197,986 RE FUND EXPENDED so As of 2/15/2010 Project Description: The project consists of the design,purchase and installation of four 100 kW wind turbines for integration with the Bethel Utilities Corporation (BUC)power distribution system.The scope includes final design, equipment procurement,installation of the wind towers and turbines and installation of control equipment for connection to the power grid. Project Status: The grant has not been executed as the grantee has not submitted required documentation from the various stakeholders in the community that will be involved in the project.The grant agreement has been slow to develop for two main reasons.First,the City has not yet obtained an interconnection agreement from BUC.The City has separate grant funding to complete the interconnection agreement. Second,AEA is requiring a cost-based power sales rate,which is not consistent with the City's proposed business model that assumed the City would sell power to BUC at avoided cost.Given the cost-based rate requirement,the City is considering other ways to structure the project.AEA anticipates project completion in 2011. ) Page |22 Burro Creek Holdings,LLC' Burro Creek Hydro Feasibility Study PBO00357;Grant No:2195400;Project No:407048 RE Fund Grant:$48,000 Project Type:HYDRO Match:12,000 Applicant Type:IPP Other Funding Sources:Region:SOUTHEAST Total Project Cost:560,000 RE FUND EXPENDED so As of 2/15/2010 Project Description: This grant provides for a reconnaissance level study of the hydropower potential of Burro Creek,a creek located south of Skagway on the west side of Lynn Canal.Grant tasks include:(1)survey of potential site,(2)installation of stream gauge and collection of flow data,(3)engineering analysis and interim report,(4)economic and market analysis of development options,and (5)final report. Project Status: The grant award is awaiting signature by grantee.The final report is expected in October 2011. Page [23 Cheesh''na Tribal Council Chistochina Central Wood Heating Constr PBO00340;Grant No:2195380;Project No:402028 RE Fund Grant:$500,000 Project Type:BIOMASS Match:12,000 Applicant Type:Government Other Funding Sources:Region:COPPER RIVER/CHUGACH Total Project Cost:$512,000 RE FUND EXPENDED 50 As of 2/15/2010 Project Description: Cheesh'na Tribal Council will complete the final design and construction of biomass boilers to heat a small scale district heat loop for a community hall,new clinic,2 office buildings,new washeteria,and library.The project will consist of a new 24'x32'building to contain the pellet furnaces.Insulated underground heat lines will connect the furnace building to the several buildings that will be heated. Project Status: Project is currently under design and construction is anticipated by fall 2010. Page |24 Chena Power,LLC Biomass-fired Organic Rankine Cycle System PBO00316;Grant No:2195358;Project No:402025 RE Fund Grant:$2,000,000 Project Type:BIOFUEL Match:2,612,900 Applicant Type:Utility Other Funding Sources:Region:RAILBELT Total Project Cost:$4,612,900 RE FUND EXPENDED $600,000 As of 2/15/2010 Project Description: This project consists of the design and construction of a 400 kW (net)power system that is fueled by Fairbanks North Star Borough waste paper.The system includes two 250 kW UTC Pure Cycle ORC units; a biomass boiler;fuel processing,storage and handling equipment;cooling pond;controls and grid tie- in. Project Status: Chena Power has made initial payments and been reimbursed by AEA for a Wellons fluid bed boiler and the UTC turbine-generators.Chena is also requesting initial payment on an SS!paper shredder.AEA will require completion of design and a business plan before reimbursing final payments on the equipment.Chena has taken partial delivery of the shredder and UTC equipment,and has renovated a three-bay metal building that will serve as the power house.Currently a consultant hired by AEAis . assisting Chena with developing a cost-based power sales agreement with Golden Valley Electric Association.Chena Power is scheduled to complete installation and commission the project in the third quarter of 2010. Page [25 Chignik Lagoon Power Utility Chignik Lagoon Hydroelectric Final Design PBO00345;Grant No:2195389;Project No:407036 RE Fund Grant:$150,000 Project Type:HYDRO Match:Applicant Type:Utility Other Funding Sources:Region:BRISTOL Total Project Cost:§150,000 RE FUND EXPENDED $0 As of 2/15/2010 Project Description: This pre-construction grant is to provide for developmental activities up through final design for this 190 kW hydro project on Packers Creek.Specific grant tasks include permitting,stream gauge,site survey and final design. Project Status: The utility has retained an engineering firm to complete the grant tasks.Design work and permits under this grant are anticipated to become available for review by summer 2010. Page |26 Chignik,City of Indian Creek Hydro Feasibility Study PBO00346;Grant No:2195388;Project No:407034 RE Fund Grant:$207,500 Project Type:HYDRO Match:Applicant Type:Government Other Funding Sources:;Region:BRISTOL Tota!Project Cost:$207,500 RE FUND EXPENDED $0 As of 2/15/2010 Project Description: This project assesses the feasibility of expanding the existing 40 kW hydro plant currently licensed and owned by Trident Seafoods to a City-owned hydro plant of 200kW capacity.Tasks to be completed include:(1)establish MOU with Trident over future rights to an expanded hydro plant,(2)establish MOU with US Fish and Wildlife Service and Alaska Dept.of Fish and Game over ways project impacts can be mitigated,(3)fieldwork consisting of topographic surveys and hydrology data collection,and (4) conceptual design report with cost estimate. Project Status: The city has hired a construction management firm to manage the grant.The firm has retained an engineer to perform the grant tasks. The planned completion date of Tasks 1-4 was estimated to be May 2010,however the progress has been slower than anticipated due to prior consultant time commitments.It is now anticipated the earliest completion of Task 4 will be in 2011. Page |27 Chilkoot Indian Association Haines Central Wood Heating Construction PBO00333;Grant No:2195373;Project No:402034 RE Fund Grant:$288,222.Project Type:BIOMASS Match:28,467 Applicant Type:Government Other Funding Sources:Region:SOUTHEAST Total Project Cost:$316,689 RE FUND EXPENDED $5,677 As of 2/15/2010 Project Description: This project will purchase and install cordwood-fired boilers to provide heat to a four-plex housing facility that is currently under construction. Project Status: Permitting to proceed with the construction has been received,and the final design is in progress.The project team is evaluating the location for the boiler building to minimize construction costs, Construction is anticipated to be complete by September 2010. ,Page |28 Copper River School District Kenny Lake Wood Boiler Assessment PB000259;Grant No:2195302;Project No:402019 RE Fund Grant:$120,000 Project Type:BIOMASS Match:10,000 Applicant Type:Government Other Funding Sources:Region:COPPER RIVER/CHUGACH Total Project Cost:$170,000 RE FUND EXPENDED $0 As of 2/15/2010 Project Description: This project will provide the final design and construction for a biomass boiler to heat the K-12 School. The project will consist of a separate small wood furnace building with pellet storage and will tie into the existing oil fired heating boilers that will be kept on stand-by at all times. Project Status: This project is currently under planning and design,with the design anticipated being complete by the end of June,and construction to follow once funding has been secured.CRSD has applied for construction funding under Round 3 of the REF Grants process. ) Page |29 Copper Valley Electric Association Allison Lake Hydro Feasibility Study PBO00350;Grant No:2195390;Project No:407038 RE Fund Grant:$2,288,000 Project Type:HYDRO Match:572,000 Applicant Type:Utility Other Funding Sources:Region:COPPER RIVER/CHUGACH Total Project Cost:$2,860,000 RE FUND EXPENDED $342,637 As of 2/15/2010 Project Description: The 4 MW Allison Lake Hydroelectric Project would supplement power to the CVEA system,whose primary source is the 12 MW Solomon Lake Hydro electric project.The funding provided under this grant is in addition to a FY 2009 Legislative grant.Tasks to be completed with these grants include:(1) study plan preparation,(2)conduct environmental field studies for 2009 and 2010 seasons,(2)prepare draft application for FERC license,(3)complete feasibility study,(4)submit license application to FERC and (5)supporting engineering activities.© Project Status: The 2009 field studies have been completed.Evaluation of the second season study plan is underway at this time,as well as preparation of the feasibility report.The report is due in April 2010 where CVEA Board of Directors will review and either recommend a go or no-go decision on further fund commitments to the project.Project schedule indicates license application to FERC anticipated for submission in December 2010 with consultation over the following year to respond to FERC and agency- related related questions and concerns. , Page |30 Cordova Electric Cooperative Cordova Heat Recovery Construction PBOO0365;Grant No:2195407;Project No:403028 RE Fund Grant:$1,780,000 Match:3,480,000 Other Funding Sources: Total Project Cost:_$5,260,000 RE FUND EXPENDED $0 Project Type:HEAT RECOVERY Applicant Type:Utility Region:COPPER RIVER/CHUGACH As of 2/15/2010 Project Description: This project will purchase and install a 250 kW Organic Rankine Cycle (ORC)heat recovery unit to capture water jacket heat on a new high-efficiency,low emissions diesel generator,increasing the 'electricity production by 4-6%. Project Status: The installation of the diesel generator is substantially complete with the exception of communication wiring.For the Organic Rankine Cycle system,the conceptual design and necessary permits are complete.An RFP is being developed for the ORC for circulation in 1*quarter 2010.Installation is scheduled for September/October 2010. Page [31 Cordova Electric Cooperative Humpback Creek Hydroelectric Construction PBO00347;Grant No:2195386;Project No:407037 RE Fund Grant:$4,000,000 Project Type:HYDRO Match:430,238 Applicant Type:Utility Other Funding Sources:2,970,000 Region:COPPER :RIVER/CHUGACH Tota!Project Cost:$7,400,238 RE FUND EXPENDED $1,054,305 As of 2/15/2010 Project Description: This construction grant provides for improvements to the existing 1.25 MW run-of-river Humpback Creek Hydroelectric project.The project rebuilds the intake structure which was damaged during a flood in 2006,adds road access to the project site and improves the SCADA communications and controls to more effectively utilize the hydropower potential of the creek.FEMA has also provided some funding. Project Status: Road construction began in fall 2008 and was completed in February 2009,Bids for the tunnel,and intake/diversion and conveyance structures were opened in July,2009 and came in higher than anticipated.The contract was awarded by the utility in September 2009 and the contractor mobilized in October.Tunnel boring and concrete lining and excavation of the left and right abutments for the new intake structure are underway at this time.The tunnel work is ahead of schedule.Critical path item is delivery of the steel penstock and intake structure accessories.February activities include finish hard rock excavation for diversion and intake structure.Overall project target completion date is late fall 2010. Page |32 Delta/Greely School District Delta Junction Wood Chip Heating PBOQ00331;Grant No:2195395;Project No:402033 RE Fund Grant:$2,000,000 Project Type:.BIOMASS Match::Applicant Type:Government Other Funding Sources:Region:RAILBELT Total Project Cost:$2,000,000 RE FUND EXPENDED $0 As of 2/15/2010 Project Description: This project will provide the final design and construction for biomass boilers to heat the Delta School with wood chips. Project Status: The project is currently under design with an anticipated conceptual/preliminary design completed 1* quarter of 2010.The original budget submitted for REF Round 1 funding was about $2.9 million. However,since Delta is connected to the Railbelt grid the project was capped at $2 million.The recently-hired design consultant revisited the budget to see if the project could be designed and built for $2 million,but it was determined that the original budget amount is needed.DGSD has applied for the budget shortfall in Round 3.If successful the project will move forward quickly to design in 2010, with construction beginning in 2010 and being completed in 2011. Page [33 Fishhook Renewable Energy,LLC Fishhook Hydroelectric Construction PBO00394;Grant No:2195435;Project No:407020 RE Fund Grant:$2,000,000 Project Type:HYDRO Match:2,412,961 Applicant Type:IPP Other Funding Sources:Region:RAILBELT Total Project Cost:$4,412,961 ' RE FUND EXPENDED so As of 2/15/2010 Project Description: This grant would partially fund the construction of a 2 MW run-of-river hydroelectric project located on Fishhook Creek in the vicinity of Hatcher Pass.This grant was selected for funding based upon a schedule of completion of milestones to be accomplished by spring 2009 under a separate pre- construction grant.Pre-construction milestones include:(1)completion of all construction permits,(2) provide fina!design documents,(3)enter into a power sales agreement with the local utility,4)obtain a Certificate of Public Need and Conveyance from the RCA,and 5)resolution of remaining technical issues. Project Status: The grantee has been delayed in accomplishing pre-construction milestones.Project financing for the remaining approximately $1.8M under the Power Project Loan Fund has not been approved by AEA pending slow progress on the pre-construction grant and response to AEA questions raised by AEA regarding the project.AEA project concerns include:1)uncertainty in hydrological data,2) demonstration of owner equity in project,and 3)third party verification of project construction costs. Page |34 Golden Valley Electric Association Eva Creek Wind Farm Feasibility PBOQ00384;Grant No:2195425;Project No:410044 RE Fund Grant:$2,000,000 Project Type:WIND Match:300,000 Applicant Type:Utility Other Funding Sources:Region:RAILBELT Total Project Cost:$2,300,000 RE FUND EXPENDED $0 As of 2/15/2010 Project Description: Golden Valley Electric Association originally proposed feasibility,design,and construction of a 24 MW wind farm in the Healy area and requested $79 million in grant funding.AEA recommended $2.53 million for feasibility assessment,but the project was capped at $2 million. Project Status: AEA and GVEA are in the process of finalizing the grant scope of work and expect to complete the grant agreement shortly.GVEA has continued to move forward collecting additional wind and geotechnical data in the area for more than a year.The data are needed for specific turbine siting.Detailed final design plans are being developed to address site access and equipment/material staging.Varied land ownership at the site also requires extensive permitting.Feasibility and permitting activity are scheduled to be complete by December 2010. Page |35 Golden Valley Electric Association McKinley Village Solar Thermal Construction PBO00354;Grant No:2195394;Project No:411003 RE Fund Grant:$190,000 Project Type:SOLAR Match:3,600 Applicant Type:Utility Other Funding Sources:Region:RAILBELT Total Project Cost:$193,600 RE FUND EXPENDED $190,000 As of 2/15/2010 Project Description: This project consists of design and construction of a solar water heating system (SWHS)including a ground mounted solar collector array with of 36 40-sf collectors,a small building housing a 3,000 gallon hot water storage tank and heat exchange equipment,and 1,530 feet of a buried district heating pipe loop that provides 18 buildings dispersed over about 4 acres with domestic hot water.The project also includes conservation measures and training to minimize hot water usage. Project Status: The array was operational in July 2009 and construction was completed in August 2009.Final invoices and reports have been submitted and project is ready for administrative close-out.Project savings numbers will be assessed over the next operating season May -September 2010. Page |36 Golden Valley Electric Assoc North Pole Heat Recovery Construction PBOO00351;Grant No:2195391;Project No:403029 RE Fund Grant:$840,000 Project Type:HEAT RECOVERY Match:210,000 Applicant Type:Utility Other Funding Sources:Region:RAILBELT Total Project Cost:$1,050,000 RE FUND EXPENDED $734,254 As of 2/15/2010 Project Description: The project consists of installing a waste heat recovery system from the GVEA North Pole powerhouse to several utility buildings.Fifteen glycol unit heaters will supply the heating load currently provided by electric unit heaters.The scope includes procurement of materials and the installation of a glycol heating distribution system,heating equipment and controls. Project Status: Currently the majority of the piping and unit heaters are installed and in operation.Variable speed pump controls have been ordered and will be integrated into the heating controls when they arrive.The grant was executed in August 2009.The anticipated project completion date is November 2010. Page [37 Gulkana Village Council Gulkana Central Wood Heating Construction P8000341;Grant No:2195381;Project No:402030 RE Fund Grant:$500,000 Project Type:BIOMASS Match:Applicant Type:Government Other Funding Sources:Region:COPPER RIVER/CHUGACH Total Project Cost:$500,000 RE FUND EXPENDED $270,776 As of 2/15/2010 Project Description: The project consists of final design and construction of biomass boilers to heat a small-scale district heat loop for a community hall,clinic,two office buildings,and four duplexes.The project includes a new 24'x32'building to contain the pellet and cord wood furnaces.The heat lines will also tie into the community water loop distribution system to add heat to help deter freeze-ups in the winter. Project Status: This project is currently under construction with start-up scheduled during the and quarter of 2010.The wood furnaces are on site and the interior mechanical and electrical work is set to begin in February. The underground heat lines to the various buildings were installed late last fall. Page |38 Gustavus Electric Company Falls Creek Hydroelectric Construction PBOO0349;Grant No:2195387;Project No:407045 RE Fund Grant:$750,000 Project Type:HYDRO Match:Applicant Type:Utility Other Funding Sources:Region:SOUTHEAST Total Project Cost:$750,000 ; RE FUND EXPENDED $750,000 As of 2/15/2010 Project Description: The grant provided funding to assist in the final stages of construction of the Falls Creek 800 kW run-of- river hydroelectric facility. Project Status: The project began reliable operation in late July 2009.The hydro has been able to displace practically all of the diesel generation that now serves as a silent but available backup source for the Gustavus Electric Service Area.The grant is complete Page |39 Gwitchyaa Zhee Utility Company Fort Yukon Central Wood Heating Design PBO00363;Grant No:2195405;Project No:402040 RE Fund Grant:$210,000 Project Type:BIOFUEL Match:140,656 Applicant Type:Utility Other Funding Sources: ,Region:YUKON- KOYUKUK/UPPER TANANA Total Project Cost:$350,656 RE FUND EXPENDED so As of 2/15/2010 Project Description: The project consists of the design of a central wood heating system using locally available biomass.The scope includes a conceptual design of the heating system,and integration plan with the electric utility heat recovery system and the community wood harvest plan. Project Status: The design will proceed to the pre-construction 95%engineered drawing stage,submission of necessary 'MOU's for wood supplies and heat sales agreements,right of way and permitting documents, environmental analysis and an operational business plan.G-Z contractors will prepare a construction budget and proposed construction schedule.Currently a 35%Design Report has been received and site control and permitting issues are being investigated.The grant was executed in August 2009.The anticipated project completion date is September 30,2010. Page |40 Haida Power,Inc. Reynolds Creek Hydroelectric Construction PBO00399;Grant No:2195440;Project No:407032 RE Fund Grant:$2,000,000 Project Type:HYDRO Match:6,645,000 Applicant Type:Utility Other Funding Sources:Region:SOUTHEAST Total Project Cost:$8,645,000 RE FUND EXPENDED $0 As of 2/15/2010 Project Description: This construction grant is to fund the initial phase of construction of a 5 MW hydroelectric project on Mellen Lake /Reynolds Creek to provide power to the existing intertied grid on southern Prince of Wales Island in southeast Alaska.Other RE Fund grants have been made on behalf of this project including a $100,000 preconstruction grant to Haida Corporation.A Round 3 RE Fund application for $2M has been submitted by Alaska Power Company for a transmission line to connect Reynolds Creek to the grid.A S9M Power project loan fund request has also been received by Haida Energy,Inc.to fund the balance of the construction costs for this project.The Southeast Conference has also received a $2M legislative grant for project construction. Project Status: Because of the large number of grantees and loan applicants involved with this project,AEA has requested a Joint Venture (or Master Agreement}be completed amongst all participants to define respective roles and responsibilities for this project,as well as the arrangements for construction and operation and ownership of the project.This will guide the issuance of grants and loan to clarify the respective roles and provide for coordination in their administration.AEA has also requested it be provided a scope and budget,timeline and milestones for each of the grants and loan of record.AEA has requested demonstration of site control,a construction cost estimate,a funding plan for the project and demonstration of land rights to build and operate the intertie which would connect Reynolds Creek to the existing Prince of Wales grid., Page [41 Haines Borough Haines Central Wood Heating Feasibility Study PBO00332;Grant No:2195372;Project No:402036 RE Fund Grant:$120,500 Project Type:BIOMASS Match:20,000 Applicant Type:Government Other Funding Sources:Region:SOUTHEAST Tota!Project Cost:$140,500 RE FUND EXPENDED so As of 2/15/2010 Project Description: The project consists of a study for using local wood biomass for supplying boilers in a central district heating system for several existing public buildings.The scope includes a Site Reconnaissance Report, Feasibility Report,and a Conceptual Design for providing heat for the Haines K-12 School,Voc-Ed Building,Municipal Administration Building,and the Public Library. Project Status: Currently a draft wood resource report has been received and the draft conceptual design report is being prepared.The grant was executed in May 2009.The anticipated project completion date is July 2010. Page |42 Homer Electric Association Falls Creek Low-Impact Hydro Assess PreConstr PBO00287;Grant No:2195331;Project No:407024 RE Fund Grant:$50,000 Project Type:HYDRO Match:25,000 Applicant Type:Utility Other Funding Sources:Region:RAILBELT Total Project Cost:5125,000 RE FUND EXPENDED $50,000 As of 2/15/2010 Project Description: This pre-construction grant has provided funding to assess the feasibility of constructing a 5 MW run-of- the-river hydroelectric plant on Falls Creek.Tasks included in this scope of work included:(1)an initial site assessment,(2)a conceptual design,(3)'a study plan,and (4)a reconnaissance report which described the findings. Project Status: The Grantee is pursuing further project development under a new scheme in a Round 2 RE grant.The report was issued on April 2,2009.This grant is complete. Page |43 Homer Electric Association Crescent Lk/Crk Low-Impact Hydro Assess Pre-Construction PBO00290;Grant No:2195334;Project No:407023 RE Fund Grant:$50,000 Project Type:HYDRO Match:20,000 Applicant Type:Utility Other Funding Sources:Region:RAILBELT Total Project Cost:§100,000 RE FUND EXPENDED $23,273 As of 2/15/2010 Project Description: This pre-construction grant has provided funding to assess the feasibility of constructing either a 2.3 or 5.8 MW run-of-the-river hydroelectric plant on Crescent Lake /Creek.Tasks included in this scope of work included:(1)an initial site assessment,(2)a conceptual design,(3)a study plan,and (4)a reconnaissance report which described the findings. Project Status: The report was issued on April 2,2009.The Grantee has abandoned further interest in project development due to high cost of project and energy production.Some grant funds remain unexpended and available for re-programming.This grant is complete. Page [44 Homer Electric Association Grant Lk/Crk Low-Impact Hydro Assess Pre-Const PBO00289;Grant No:2195333;Project No:407025 RE Fund Grant:$50,000 Project Type:HYDRO Match:25,000 Applicant Type:Utility Other Funding Sources:Region:RAILBELT Total Project Cost:$125,000 ° RE FUND EXPENDED $50,000 As of 2/15/2010 Project Description: This pre-construction grant has provided funding to assess the feasibility of constructing a 5 MW run-of- the-river hydroelectric plant on Grant Lake /Creek.Tasks included in this scope of work included:(1)an initial site assessment,(2)a conceptual design,(3)a study plan,and (4)a reconnaissance report which described the findings. Project Status: The report was issued on April 2,2009.The Grantee is pursuing further project development under a new scheme in a Round 2 RE grant.This grant is complete. Page [45 Homer Electric Association Ptarmigan Lk/Crk Low-Impact Hydro Assess Pre-Const PBO00291;Grant No:2195335;Project No:407026 RE Fund Grant:$50,000 Project Type:HYDRO Match:25,000 Applicant Type:Utility Other Funding Sources:Region:RAILBELT Total Project Cost:$125,000 RE FUND EXPENDED $4,684 As of 2/15/2010 Project Description: This pre-construction grant has provided funding to assess the feasibility of constructing a 3 MW run-of- the-river hydroelectric plant on Ptarmigan Lake /Creek.Tasks included in this scope of work included: (1)an initial site assessment,(2)a conceptual design,(3)a study plan,and (4)a reconnaissance report which described the findings. Project Status: The report was issued on April 2,2009.The Grantee has abandoned further interest in project development due to high cost of project and energy production...Some grant funds remain unexpended and available for re-programming.This grant is complete. Page |46 Hooper Bay,City of Hooper Bay Wind Farm Feasibility PBOO0398;Grant No:2195439;Project No:410040 RE Fund Grant:$80,000 Project Type:WIND Match:.Applicant Type:Government Other Funding Sources:Region:LOWER YUKON/KUSKOKWIM Total Project Cost:$80,000 RE FUND EXPENDED So As of 2/15/2010 Project Description: The project consists of a feasibility study for the installation of two wind turbines near the water treatment plant to supply a portion of the facility electrical load.The scope includes a site specific wind resource analysis,feasibility study and conceptual design for integration of the wind system into the water plant facility. , Project Status: Currently the feasibility study is underway.The grant was executed in December 2009.The anticipated project completion date is April 2010. Page |47 Independence Power,LLC | Fourth ofJuly Creek Hydroelectric Reconnaissance PBO00379;Grant No:2195420;Project No:407044 RE Fund Grant:$20,000 Project Type:HYDRO Match:20,000 Applicant Type:IPP Other Funding Sources:Region:RAILBELT Total Project Cost:$40,000 RE FUND EXPENDED $0 As of 2/15/2010 Project Description: This grant is for reconnaissance level assessment of a hydro resource located on Fourth ofJuly Creek. This creek is located east of Seward,Alaska near the Lemon Creek Penitentiary.The work scope includes a hydrology study,stakeholder meeting and permitting analysis.All findings are to be documented in a Reconnaissance Study and Initial Feasibility Assessment. Project Status: AEA received the Final Report in November 2009 and is reviewing it.The report predicts the hydro nameplate capacity of the site is 5.4 MW and recommends advancement of the project into the feasibility stage. Page |48 Interior Regional Housing Authority Galena Wood Heating Construction PBOO0402;Grant No:2195443;Project No:402037 RE Fund Grant:$382,779 Project Type:BIOMASS Match:382,779 Applicant Type:Government Other Funding Sources:Region:YUKON- KOYUKUK/UPPER TANANA Total Project Cost:$765,558. RE FUND EXPENDED $o As of 2/15/2010 Project Description: This project consisted of design and construction of a wood-fired system to heat the assisted living center in Galena. Project Status: IRHA has decided not to proceed with the project,and project funding is being reallocated. Page [49 Juneau,City &Borough of Juneau Ground Source Heat Pump Constr PBO00352;Grant No:2195393;Project No:406009 RE Fund Grant:$1,450,000 Project Type:GEOTHERM Match:500,000 Applicant Type:Government Other Funding Sources:Region:SOUTHEAST Total Project Cost:$1,950,000 RE FUND EXPENDED $139,911 As of 2/15/2010 Project Description: The City and Borough ofJuneau is designing and constructing a hybrid ground source heat pump (GSHP) to serve 81%of the new Aquatic Center's heating needs. Project Status: During the summer of 2009 a well field consisting of 164 350-foot wells was completed.The piping was installed in the boreholes and most of the backfill was put in place,but was not finished prior to the onset of winter.The remaining backfill will be finished in late spring,and the heat pumps will be installed after the mechanical room is ready.As the Aquatic Center is still under construction,the GSHP will not be fully functional until late 2010.Project completion is scheduled for winter 2010. Page |50 Juneau,City and Borough of Juneau Airport Ground Source Heat Pump PBO00317;Grant No:2195359;Project No:406008 RE Fund Grant:$513,000 Project Type:GEOTHERM Match:513,000 Applicant Type:Government Other Funding Sources:Region:SOUTHEAST Total Project Cost:$1,026,000: RE FUND EXPENDED $513,000 As of 2/15/2010 Project Description: The Juneau Airport Ground Source Heat Pump (GSHP)project consists of the construction of the geothermal loop field in conjunction with the overall airport renovation project. Project Status: The field consists of 108 360-foot deep borings that were drilled in a little more than one month's time. The borings were run with piping to carry the heat transfer fluid and connected with horizontal piping to manifolds.With the completion of the borings and connections,the airport will continue the project by connecting the field to the heat pumps in the airport buildings with non-RE Fund dollars.As the airport is still undergoing renovations,the GSHP will not be functioning until the airport's mechanical work and building envelope are completed.Project completion is scheduled for Summer 2010. Page [51 Kenai Winds,LLC Nikiski Wind Farm Construction PBO00392;Grant No:2195433;Project No:410046 RE Fund Grant: Match: Other Funding Sources: Tota!Project Cost: RE FUND EXPENDED $80,000 18,920,000 $21,000,000 $0 Project Type:WIND Applicant Type:IPP Region:RAILBELT As of 2/15/2010 Project Description: This project consists of final design and construction project of a 9 MW wind farm at a refinery in Nikiski. Project Status: Kenai Winds is currently applying for permits and developing a final design.Construction is scheduled for summer/fall 2010.Kenai Winds has submitted Round 3 grant application to expand the capacity to a total of 16 MW.Current focus is on completing the 95-percent design for AEA review and working with AEA's rate consultant to establish a cost-based rate.Grantee is hand delivering the signed grant agreement on Feb.23. Page [52 Ketchikan Public Utilities Whitman Lake Hydro Final Design PBOOO400;Grant No:2195441;Project No:407046 RE Fund Grant:$1,300,000.Project Type:HYDRO Match:320,000 Applicant Type:Utility Other Funding Sources:Region:SOUTHEAST Total Project Cost:$1,620,000 RE FUND EXPENDED 50 As of 2/15/2010 Project Description: This pre-construction grant is to prepare final design documents for the Whitman Lake Hydroelectric Project.The project was issued a license to construct by FERC on March 17,2009.The intent of this grant is to fund all remaining activities needed to be accomplished up to but not including construction bidding for this project.These steps include preparation of final design drawings and specifications, review and approval of same by FERC and preparation of final construction cost estimate and project construction schedule. Project Status: The utility's consultant is working through these milestones at present and is on schedule to complete all tasks by April 2011. Page [53 Kodiak Electric Association. Pillar Mountain Wind Project -Construction PBO00329;Grant No:2195371;Project No:410025 RE Fund Grant:54,000,000 Project Type:WIND Match:1,000,000 Applicant Type:Utility Other Funding Sources:Region:KODIAK Total Project Cost:$5,000,000 RE FUND EXPENDED $4,000,000 As of 2/15/2010 Project Description: This project consists of the installation and interconnection of three GE 1.5MW wind turbines on Pillar Mountain near the City of Kodiak. Project Status: The project is complete and the turbines have been operational since July 3,2009.The turbines have been operating very well and have had an excellent 95%availability since commissioning.According to Kodiak Electric Association the turbines have produced nearly 7.8 million kWhs of electricity and saved nearly 550,000 gallons of diesel fuel. Page |S4 Kotzebue Electric Association Kotzebue Wind Farm Expansion Construction PBOQ00386;Grant No:2195427;Project No:410041 RE Fund Grant:$4,000,000 Match:427,495 Other Funding Sources: Total Project Cost:$4,427,495 RE FUND EXPENDED $0 Project Type: Applicant Type: Region: As of 2/15/2010 WIND Utility NW ARCTIC Project Description: Kotzebue Electric originally proposed expanding its wind farm by 3.25 MW with $12.1 million in RE Fund grant funds but was capped at $4 million.KEA has proposed a revised scope and requested an additional $4,000,000 under Round 3.The revised project will consist of two new 900kW EWT900 wind turbines and a SOOkW/3.7MWh Zinc Bromide Flow Battery. Project Status: AEA and the Kotzebue Electric Association are currently developing the milestones and budget for the revised project scope and expect to finalize the grant agreement in the next month.KEA has been moving the project forward with geotechnical investigations and foundation design using their own funding.The project is pursuing an aggressive schedule with a target completion date,pending additional funding,of December 2010. Page [55 kwaan Electric Transmission Kake-Petersburg Intertie Final Design PBO00374;Grant No:2195414;Project No:409019 RE Fund Grant:$2,990,000 Project Type:TRANSMISSION Match:2,500,000 Applicant Type:Utility Other Funding Sources:Region:SOUTHEAST Total Project Cost:$5,490,000 RE FUND EXPENDED so As of 2/15/2010 Project Description: The grant funds will be used towards environmental assessments and final design for the Kake - Petersburg Hydroelectric Transmission Intertie.The applicant,along with the Alaska Department of Transportation (ADOT),proposes to build a road and 69-kV transmission line to connect the community of Kake with Petersburg.The road/intertie will allow the delivery of surplus hydropower available from the Tyee project to Kake and eliminate its total reliance upon diesel generation.The principal tasks involved in this project include:(1)preliminary feasibility report,(2)route selection,(3)environmental permitting and (4)final design.It is anticipated this scope of work will take approximately three years to complete. Project Status: ADOT has completed the preliminary feasibility report.The northern route has been selected as the preferred option.The large cost of this project is under advisement at this time.Questions remain as to potential funding sources for construction of this capital project and what,if any renewable energy alternatives may be available located closer to Kake.Additionally,discussions are underway among the Southeast Alaska Power Authority and KWETICO as to who will build,own and operate the intertie.As these questions are answered the project will move forward. Page |56 Kwig Power Company Kwigillingok High Penetration Wind-Diesel Smart Grid PBOQO0369;Grant No:2195410;Project No:410036 RE Fund Grant:$1,600,000 Project Type:WIND Match:1,600,000 Applicant Type:Utility Other Funding Sources:Region:LOWER ;.YUKON/KUSKOKWIM Total Project Cost:$3,200,000 RE FUND EXPENDED $o As of 2/15/2010 Project Description: This project consists of the construction of a 450 kW high-penetration wind system in Kongiganak with multiple secondary thermal loads in residences and the school.Project design is similar to systems being installed in Kwigillingok and Tuntutuliak.Half of the funding is being provided by a legislative grant. Project Status: Towers,turbines and foundation materials are staged and ready for construction in spring 2010 once the final design is accepted following review by AEA and NREL.The grant agreement is currently being reviewed internally by AEA. Page |57 Lake and Peninsula Borough Chignik Lake Area Wind-Hydro Final Design PBO00368;Grant No:2195409;Project No:410033 RE Fund Grant:$375,000 Project Type:WIND Match:96,000 Applicant Type:Government Other Funding Sources:;Region:BRISTOL Total Project Cost:$471,000 RE FUND EXPENDED $0 As of 2/15/2010 Project Description: This project is a feasibility study for both hydroelectric and wind energy in the vicinity of Chignik Lake.If the feasibility studies show the potential for projects larger than Chignik Lake can use,the project will be expanded to look at the feasibility of tying Chignik Lake with Chignik and Chignik Lagoon and could be expanded to provide design funding for one of the feasible projects. Project Status: The grantee has hired a consultant,installed meteorological tower and completed a site visit for selecting streams for the hydro assessment.The next steps include collection of resource data, production of energy generation estimates,identification of permitting issues and the development of a conceptual design.The project is scheduled for completion by the end of 2010. Page [58 Lake and Peninsula Borough Lake Pen Borough Wind Feasibility Study PBOQ00337;Grant No:2195374;Project No:410032 RE Fund Grant:$184,000 -Project Type:-WIND Match:40,000 Applicant Type:Government Other Funding Sources:Region:BRISTOL Total Project Cost:$224,000 RE FUND EXPENDED $0 As of 2/15/2010 Project Description: This project is regional wind resource assessment and feasibility project for 6 different utilities in the Lake and Peninsula Borough.The purpose of this grant is to determine which of the communities are best suited for a wind project and then complete Engineering,Procure,and Construct (EPC)bid documents for these communities. Project Status: The project is in the early stages and the Borough has just closed their RFP to select a contractor.The contractor's first activities will entail compiling existing data and determining where further data collection is needed.This project is scheduled for completion in December 2010. Page |59 Lake and Peninsula Borough Lake Peninsula Borough Wood Heating Final Design PBO00364;Grant No:2195406;Project No:402026 RE Fund Grant:$77,000 Project Type:BIOMASS Match:18,000 Applicant Type:Government Other Funding Sources:Region:BRISTOL Total Project Cost:$95,000 RE FUND EXPENDED $0 As of 2/15/2010 Project Description: The project consists of final design and permitting to install high efficiency low emissions wood boilers in five communities in the Land and Peninsula Borough to provide heat to the local schools and adjacent teacher housing.The communities to be considered are Pedro Bay,Newhalen/Iliamna,Nondalton, Kokhanok,and Port Alsworth.The scope includes a energy plan screening for the Borough,assessments of high efficiency wood boilers,an estimate of wood operations and maintenance costs,a full Reconnaissance Study and Preliminary Design,Site Control,Permitting and Right of Way assessment. The final report will include a 95%Design Report Operational Business Plan,and an estimated construction budget and construction schedule. Project Status Currently the wood resource evaluation is underway.The grant was executed in July 2009.The anticipated project completion date is December 2010. Page |60 McGrath Light &Power Company McGrath Central Wood Heating Proj Dev Ph III PBO00361;Grant No:2195403;Project No:402039 RE Fund Grant:$322,000 ;Project Type:BIOMASS Match:183,000 Applicant Type:Utility Other Funding Sources:Region:YUKON- KOYUKUK/UPPER TANANA Total Project Cost:$505,000 RE FUND EXPENDED $0 As of 2/15/2010 Project Description: The project consists of the final design and permitting of a district heating system utilizing local woody biomass to heat several public facilities including offices and school buildings in the City of McGrath. The scope includes submission of a 65%Design Report and a System Integration Plan with the McGrath Electric Utility Heat Recovery Construction Project (Round 1 Application #61).The final product includes the 95%Design Drawings,Site Control Documentation,Environmental Analysis Report,Operational Business Plan,and an estimated Construction Budget and Schedule. Project Status: Currently work is underway on the conceptual design of the heating system and integration plan with the proposed new diesel powerhouse in Ft.Yukon.The grant was executed in July 2009.The anticipated project completion date is May 2010. Page |61 McGrath Light &Power Company McGrath Heat Recovery Construction PBO00375,;Grant No:2195416;Project No:403030 RE Fund Grant:$712,415 Project Type:HEAT RECOVERY Match:241,810 Applicant Type:Utility Other Funding Sources:Region:YUKON- KOYUKUK/UPPER TANANA Total Project Cost:$954,225 RE FUND EXPENDED $283,491 As of 2/15/2010 Project Description: The McGrath Heat Recovery Project includes final design,permitting,and construction of power plant efficiency improvements and a recovered heat system.Power plant improvements include fuel efficiency upgrades,high efficiency fan and pump motors,and installation of marine jacketed exhaust manifolds for increased heat recovery capture.The recovered heat system will provide available recovered heat from the McGrath Light and Power (ML&P)power plant to four adjacent commercial buildings,and the Iditarod Area School District (IASD)school complex.The project is designed for future expansion to the new McGrath Clinic,as well as integration with the future McGrath Central Wood Heating biomass project. Project Status: NEPA project level environmental permitting is complete.Installation of arctic piping to commercial and IASD end-user facilities is complete.Power plant heat recovery room upgrades are 80%complete. Installation of heat recovery equipment at end-user facilities is 55%complete.Power plant efficiency improvements are 5%complete Page [62 Metlakatla Indian Community Metlakatla-Ketchikan Intertie Design and Permittin PBOO0388;Grant No:2195429;Project No:409020 RE Fund Grant:$820,000 Project Type:TRANSMISSION Match:160,833 Applicant Type:Government Other Funding Sources:Region:SOUTHEAST Total Project Cost:5980,833 RE FUND EXPENDED $o As of 2/15/2010 Project Description: This grant is to provide for the permitting and final design of a transmission line that would interconnect the community power systems of Metlakatla to Ketchikan (and the associated Wrangell-Petersburg grid).The proposed transmission line would follow the new road on Annette Island north to Walden Point,and then require a submarine cable to connect to the Ketchikan Public Utility system.In addition, grant funds will also be used to complete design upgrades to the various control systems of the MIC electric system,including the governor and SCADA systems.Three tasks have been identified for this grant including:(1)preliminary field design and right-of-way identification and (2)field staking and final design and (3)construction drawings,staking sheets and bid documents. Project Status: MIC has hired a consultant to perform all grant related tasks.The tasks are underway at this time and are expected to be completed by Spring 2010.No problems have been reported with the progress of this grant. Page |63 Native Village of Eyak Cordova Wood Processing Plant-Purchase and setup PBO00358;Grant No:2195399;Project No:402027 RE Fund Grant:$147,720 Project Type:BIOMASS Match:Applicant Type:Government Other Funding Sources:Region:COPPER ,RIVER/CHUGACH Total Project Cost:$147,720 RE FUND EXPENDED $142,630 As of 2/15/2010 Project Description: This project consists of the purchase and use of mobile firewood processor that will enable logs in Cordova to be used for local space heating. Project Status: The Native Village of Eyak has purchased and transported the fuelwood processing plant and transported it to Cordova,The equipment (a mobile Cord King Compact Model!69 with splitter and 60”saw blade on wheels)arrived in Cordova in January 2010.Currently the Village is setting up the unit for initial training at a smaller log deck in Cordova.With recent heavy snow fall,the equipment was not able to reach a larger log deck that will be eventually used.Once some of the snow melts,and the road is plowed,then access to this site will allow the equipment to begin its work. Page |64 Nikolski IRA Council Nikolski Wind Integration Construction PBO00334;Grant No:2195375;Project No:410028 RE Fund Grant:$409,430 Project Type:WIND Match:41,500.Applicant Type:Government Other Funding Sources:Region:ALEUTIANS Total Project Cost:$450,930 RE FUND EXPENDED $o As of 2/15/2010 Project Description: This project will integrate an existing Vestas V15 65 kW wind turbine with an existing diesel powerhouse.The integration consists of the installation of remote electrical boilers to utilize excess wind energy for heating and adding to the existing switchgear.TDX Power has already installed the thermal boilers in the school and local lodge. Project Status: The grant agreement has been prepared and is with the grantee for signature.Once the grant is signed AEA will review the design and then the grantee will order the necessary equipment to complete the job.Construction is scheduled for completion summer of 2010. Page |65 Nome Joint Utility Systems Nome Banner Peak Wind Farm Transmission Constructi PBO00403;Grant No:2195444;Project No:409017 RE Fund Grant:$801,000 Project Type:TRANSMISSION Match:89,000 Applicant Type:Utility Other Funding Sources:Region:BERING Total Project Cost:$890,000 RE FUND EXPENDED $0 As of 2/15/2010 Project Description: This is a grant to construct a two-mile intertie connecting a 1.17-megawatt wind farm constructed by Banner Wind LLC with the Nome Joint Utility Systems electrical grid. Project Status: Construction has completed and the wind farm is producing power for the utility.NJUS will request reimbursement for the full grant amount in March.: Page |66 Nome,City of Nome/Newton Peak Wind Farm Construction PBO00397;Grant No:2195438;Project No:410030 RE Fund Grant:54,000,000 Project Type:WIND Match:400,000 Applicant Type:Utility Other Funding Sources:Region:BERING Total Project Cost:$4,400,000 RE FUND EXPENDED so As of 2/15/2010 Project Description: NJUS originally requested $13.95 million from Round 1 for feasibility,design and construction of a3 MW wind farm as a $13.5 million but project funding was capped at $4 million. Project Status: AEA and NJUS are working to revise the project scope,budget and milestones and expect to finalize the grant within a month.Due to the change in scope,AEA will require feasibility analysis prior to proceeding to final design or construction funding. Page |67 Northwest Arctic Borough Buckland,Deering,Noorvik Wind Farm Construction PBO00336;Grant No:2195377;Project No:410042 RE Fund Grant:$10,758,928 Project Type:WIND Match:162,500 Applicant Type:Government Other Funding Sources:Region:NW ARCTIC Total Project Cost:$10,921,428 RE FUND EXPENDED $o As of 2/15/2010 Project Description: This project consists of feasibility through construction of wind energy projects in three separate communities (Buckland,Deering,and Noorvik)in the Northwest Arctic Borough. Project Status: The grant agreement has been difficult to put together due to the complexity of awarding funds to the Borough for potential construction projects in three separate communities with three separate utilities. Memoranda of agreement between the three utilities and the borough have been drawn up and signed. The grant agreement has completed AEA review and is with the Grantee for signature.Wind resource assessment is ongoing in all three communities.The next step is to complete feasibility studies based on the updated wind resource data.The results of these studies will determine which communities proceed to the permitting and final design stage.Project(s)are scheduledfor commissioning in late 2011.. Page |68 Northwest Inupiat Housing Authority Kobuk River Valley Woody Biomass Feasibility PBOO0330;Grant No:2195397;Project No:402031 RE Fund Grant:$249,500 Project Type:BIOMASS Match:248,980 Applicant Type:Government Other Funding Sources:Region:NW ARCTIC Total Project Cost:$498,480 RE FUND EXPENDED $o As of 2/15/2010 Project Description: The project consists of a feasibility study to determine the sustainable level of biomass harvest in the Upper Kobuk River Valley near the villages of Ambler,Shungnak,and Kobuk. Project Status: The scope includes a woody biomass resource assessment,harvest system alternatives,wood yard conceptual design,feasibility of boiler types,preliminary business models and the production of a 35% Conceptua!Design Report with a final Environment Analysis,estimated construction budget and schedule.Currently a reconnaissance of the wood resources is underway.The grant was executed in September 2009.The anticipated project completion date is December 2011. Page |69 Nushagak Electric and Telephone Cooperative Lake Elva Hydropower Feasibility,Permitting &Final Design PBO00378;Grant No:2195419;Project No:407035 RE Fund Grant:$4,006,500 Project Type:HYDRO Match:Applicant Type:Utility Other Funding Sources:Region:BRISTOL Total Project Cost:$4,006,500. RE FUND EXPENDED $108,095 As of 2/15/2010 Project Description: This grant evaluates the 1.5 MW Lake Elva Hydropower project as a potential source of power for this Dillingham-based utility.Located 36 miles northwest of Dillingham within the boundaries of the Wood- Tikchik State Park,Lake Elva is a high mountain natural lake.Site access is either by snow machine in the winter or by helicopter in the summer.The grant is divided into three phases.Phase 1 allows fora feasibility study of the Lake Elva hydro and for stream gauging.Phase 2 will provide third party (AEA) funding for preparation of a regional integrated resource plan to review all available regional energy sources.Phase 3 would include permitting and final design subject to successful completion of Phases 1 and 2,Assuming work began on that phase in 2011,completion is projected to be in 2015. Project Status: Phase 1 feasibility study has been completed.Some minor work has been accomplished for Phase 2, but further detailed study and additional funding are required before this task is considered complete. It is anticipated this work will occur this summer with completion at the end of December 2010. Page |70 Petersburg,City of Ruth Lake Hydro Reconnaissance PBO00373;Grant No:2195415;Project No:407047 -RE Fund Grant:$160,000 Project Type:HYDRO Match:44,556 Applicant Type:Utility Other Funding Sources:Region:SOUTHEAST Total Project Cost:$202,528 RE FUND EXPENDED $157,972 As of 2/15/2010 Project Description: This grant provided funds to pre-feasibility reconnaissance of the Ruth Lake hydro site and assisted with the City's filing of the Preliminary Permit application to FERC.The site is a high mountain lake located in Thomas Bay which could have a 20 MW nameplate capacity.The City filed the Preliminary Permit application with FERC on February 3,2009.In the fall of 2009,FERC ruled (by drawing)that of the three competing municipal preference applications received for Ruth Lake,the City of Angoon was selected as the recipient of the Preliminary Permit for Ruth Lake.This permit is good for 3 years from date of issuance.Consequently,any further work on development of this site by the City of Petersburg has been deferred pending future appeals or expiration of the Preliminary Permit. Project Status: The grant scope of work has been completed and the grant is closed. Page |71 Puvurnag Power Company Kongiganak High Penetration Wind-Diesel Smart Grid PBO00370;Grant No:2195411;Project No:410035 RE Fund Grant:$1,700,000 Project Type:WIND Match:1,192,850 Applicant Type:Utility Other Funding Sources:Region:LOWER YUKON/KUSKOKWIM Total Project Cost:$2,892,850 RE FUND EXPENDED so As of 2/15/2010 Project Description: This project consists of the construction of a 450 kW high-penetration wind system in Kwigillingok with multiple secondary thermal loads in residences and the school.Project design is similar to a system being installed in Kongiganak.Half of the funding is being provided by a legislative grant. Project Status: Towers and turbines are erected and ready for wiring,new controllers,and connection to the grid. Turbines are expected to be generating power for the grid in late spring or early summer 2010.The project management team is completing the final,integrated design for review by AEA and NREL. Page |72 Sitka,City and Borough of Takatz Lake Hydroelectric Feasibility PBO00376;Grant No:2195418;Project No:407049 RE Fund Grant:$514,684 Project Type:HYDRO Match:Applicant Type:Government Other Funding Sources:Region:SOUTHEAST Total Project Cost:$514,684 RE FUND EXPENDED $60,422 As of 2/15/2010 Project Description: The project assesses feasibility of connecting Sitka to a potential 25 MW hydroelectric power plant on Takatz Lake,a high mountain lake located on the Chatham side of Baranof Island.The three main goals of this grant are resource assessment,conceptual design and a feasibility study.Sitka obtained the FERC-issued Preliminary Permit for Takatz Lake in September 2008 and has received FERC approval to allow the Alternative Licensing Process to be used for Takatz Lake.Though approved for $2 million in grant funding in Round 1,Sitka received approximately $515,000 because it was at the bottom of the ranked grant funding list.Because of the limited funding,the project scope has been reduced to match the funds available. Project Status: Sitka is in the process of selecting a consultant to provide for grant funded engineering services.Sitka has installed a stream gauge and will be conducting environmental and geotechnical investigations and obtaining aerial photography for the site and proposed transmission line route in 2010.The final feasibility report will be produced in 2011 which will document the proposed conceptual design,cost estimates and engineering and environmental issues associated with the project.The report will recommend whether or not to pursue FERC licensing. Page |73 South Fork Hydro,LLC South Fork Hydroelectric Construction PBO00393;Grant No:2195434;Project No:407041 RE Fund Grant:$1,000,000 Project Type:HYDRO Match:2,087,000 Applicant Type:!PP Other Funding Sources:Region:RAILBELT Total Project Cost:53,087,000 RE FUND EXPENDED SO As of 2/15/2010 Project Description: This grant provides funds for the construction of a 1.2 MW run-of-river hydroelectric project located on the South Fork of Eagle River.South Fork Hydro LLC proposes to construct an intake structure, penstock,powerhouse and generation equipment,tailrace,transmission line and access road for this project. Project Status: Currently,a utility rate specialist is working with South Fork Hydro LLC to calculate a cost-based power -sales rate from the project.The LLC will then need to enter into a Power Purchase Agreement with the local utility and obtain a Certificate of Public Convenience and Necessity from the Regulatory Commission of Alaska.After completing final design documents and obtaining all necessary permits,the project will proceed into construction.Commissioning,final inspection,and punchlist completion will follow.South Fork Hydro estimates the project construction will be completed within 13 months after start of actual work on the project. Page |74 St.George,City of St.George Wind Farm Construction PBODO355;Grant No:2195398;Project No:410029 RE Fund Grant: Match: Other Funding Sources: Total Project Cost: RE FUND EXPENDED $1,500,000 Project Type:WIND 500,000 Applicant Type:Government 1,000,000 Region:ALEUTIANS $3,000,000 $0 As of 2/15/2010 Project Description: The proposed project is a high penetration wind-diesel project that will be owned by the City of St. George.The project will consist of a 225 kW wind turbine and thermal dump loads. Project Status: AEA is waiting for the city to demonstrate that they have all necessary matching funds before the grant is put in place.The city currently has a loan application into AEA's Power Project Loan Fund for $500,000 match.However AEA awaits City responses to AEA information requests before additional evaluation of the loan application.The City has been making some progress without grant funding in place.The City has completed initial geotechnical assessments and all permits and land lease agreements.Assuming the City secures match funding,the project will likely be completed in the 2011 construction season. Page |75 TDX Power,Inc. Manley Hot Springs Geothermal Plant PBOO0380;Grant No:2195421;Project No:406006 RE Fund Grant:$215,000 Project Type:GEOTHERM Match:705,000 Applicant Type:Utility Other Funding Sources:.Region:YUKON- KOYUKUK/UPPER TANANA Total Project Cost:$1,645,000 RE FUND EXPENDED So As of 2/15/2010 Project Description: Resource assessment,feasibility,and design and construction Project Status: With the goal of installing a pre-packaged 200 kW geothermal-powered generator,TDX completed the resource assessment phase of the project in the summer of 2009.The assessment included acquiring aeromagnetic data and performing a RaMPS (Resistivity Monopole Profiling and Sounding)survey.The data from these two surveys were compiled in a report,released in January 2010,that pinpointed two potential drill sites.By April,based on the results of survey,estimated drilling costs,and available funding TDX will determined the scope and schedule of the drilling program.Drilling may take place in the summer of 2010..Currently,the construction of the geothermal power plant is planned for 2011, but is dependent on the drilling plan.The project is scheduled for completion in winter 2011. Page [76 Unalakleet Valley Electric Cooperative Unalakleet Wind Farm Construction PBOOO359;Grant No:2195401;Project No:410031 RE Fund Grant:$4,000,000 Project Type:WIND Match:164,340 Applicant Type:Utility Other Funding Sources:1,350,000 Region:BERING Total Project Cost:$4,164,340 RE FUND EXPENDED $3,788,533 As of 2/15/2010 Project Description: This project consists of the construction of 600 kW of wind generating capacity to serve the Unalakleet Valley Electric Coop system.Originally UVEC proposed a 1.2 MW system costing $9 million,but Round 1 capped project funding at $4 million.UVEC has proceeded with the smaller project with over $1 million in additional funding from Norton Sound Economic Development Council and Unalakleet Native Corporation. Project Status: The turbines were erected,commissioned,and operating by fall of 2009.The turbines currently need to be operated manually since they have not yet been fully integrated into the power system with a dump load boiler and automated controls.These final aspects of the project will be completed as AEA and UVEC finish rebuilding the diesel powerhouse during the 2010 construction season through an associated Rural Power System Upgrade project.The project is expected to be fully operational by the end of 2010. Page |77 UniversityofAlaska-Anchorage Statewide Hydrokinetic Feasibility Study PBO00401;Grant No:2195442;Project No:407054 RE Fund Grant:$565,439 Project Type:OCEAN/RV Match:Applicant Type:Government Other Funding Sources:Region:STATEWIDE Total Project Cost:$565,439 RE FUND EXPENDED $171,119 As of 2/15/2010 Project Description: This project is a resource assessment of hydrokinetic energy potential near 17+communities in rural Alaska. Project Status: UAA School of Engineering collected resource data in the field during summer 2009.Five communities were surveyed on the Kuskokwim and twelve on the Yukon River.During the fall and winter,the data has been analyzed to determine the velocity and volumetric flow at different water levels throughout the year,so that yearlong models of potential power production can be made for each of the communities.The communities to be assessed during the 2010 field season are in the process of being chosen in conjunction with input from AEA,but will likely include a wider geographic distribution than the 2009 field season.The project is scheduled for completion in spring 2011. Page |78 University of Alaska-Fairbanks Nenana Hydrokinetic Construction PBO00396;Grant No:2195437;Project No:407053 RE Fund Grant: Match: Other Funding Sources: Total Project Cost: RE FUND EXPENDED $450,000 Project Type:OCEAN/RV :Applicant Type:Government Region:RAILBELT $450,000 $163,380 As of 2/15/2010 Project Description: in a two-phase project,the University of Alaska Fairbanks'Alaska Center for Energy and Power (ACEP) are researching the installation of hydrokinetic turbines in Alaska's rivers. Project Status: Staged on the Tanana River at Nenana,ACEP,working with partners and subcontractors,has accomplished the first field season of resource assessment including:bathymetry,river current and discharge,sediment transport,and side-scan sonar,During the late fall and winter,ACEP and Ocean Renewable Power Co.(the holder of the FERC preliminary permit at the location)are studying the ice and debris conditions.Due to regulatory and engineering hurdles,construction and installation of an ORPC turbine will likely take place in 2011,instead of May 2009 as originally planned.The project is scheduled for completion winter 2011 Page |79 Whittier,City of Whittier Creek Hydroelectric Reconnaissance PBOO0353;Grant No:2195396;Project No:407043 RE Fund Grant: Match: Other Funding Sources: Total Project Cost: RE FUND EXPENDED $85,000 15,000 $200,000 $0 Project Type:HYDRO Applicant Type:Government Region:RAILBELT As of 2/15/2010 Project Description: This grant provides for a reconnaissance level study of the hydropower potential of Whittier Creek . Grant tasks include;(1)an interim Report,(2)two years of stream gauging and hydrology analysis of Whittier Creek,and(3)a preliminary design concept and analysis.The complete analysis and all field data will be documented in a reconnaissance report which will be completed by May 2012.The U.S. Army Corps of Engineers is matching the state grant funds and city funds with federal funds and will also be managing the grant activities for the City of Whittier.The stream gauging installation and data collection will be conducted by the USGS. Project Status: The grant award has been delayed due to the Whittier City Manager position becoming vacant in the fall of 2009,but is anticipated to be awarded later this month. Page |80 Wrangell,City and Borough of Wrangell Hydro Based Electric Boilers Construction PBO00382;Grant No:2195423;Project No:407055 RE Fund Grant:$2,000,000 Project Type:OTHER Match:82,000 Applicant Type:Government Other Funding Sources:Region:SOUTHEAST Total Project Cost:$2,082,000 RE FUND EXPENDED $127,983 As of 2/15/2010 Project Description: The project consists of the design,permitting,and construction of the conversion from diesel-fired boilers to electric unit heaters,thereby utilizing excess hydro capacity.The scope includes final design construction documents,procurement of the heating and control equipment,and the mechanical and electrical installation of the system. Project Status: Currently installation of the electric unit heaters and electric supply and control equipment is underway with several heaters in operation.The grant was executed in August 2009.The anticipated project completion date is August 2010. Page |81 Yakutat Power Yakutat Biomass Feasibility PBO00383;Grant No:2195424;Project No:402035 RE Fund Grant:$249,600 Project Type:BIOMASS Match:17,652 Applicant Type:Utility Other Funding Sources:Region:SOUTHEAST Total Project Cost:$267,252: RE FUND EXPENDED $8,431 As of 2/15/2010 Project Description: The project consists of an investigation of the local woody biomass resource,permitting issues and a conceptual design of a biomass to electricity system.The electricity produced would be integrated into the existing powerhouse to displace a portion of the diesel generator production.The scope includes a local biomass resource evaluation and a conceptual design and integration plan with the existing diesel powerhouse. Project Status: Currently a brief feasibility study of the technology is under AEA review and prospective engineering firms are being evaluated.The grant was executed in August 2009.The anticipated project completion date is September 2010. Page |82 Yukon River Inter-Tribal Ruby Hydrokinetic PBOO0360;Grant No:2195402;Project No:407050 RE Fund Grant:$446,950 Project Type:OCEAN/RV Match:15,000 Applicant Type:IPP Other Funding Sources:,Region:YUKON- KOYUKUK/UPPER TANANA Total Project Cost:$461,950 RE FUND EXPENDED $87,422 As of 2/15/2010 Project Description: This project will expand the demonstration of a hydrokinetic energy conversion device near Ruby on the Yukon River from 5 kW to 25 kW of installed capacity. Project Status: The Yukon River Intertribal Watershed Council (YRITWC)continued work on the 5-kW Encurrent turbine pilot project in the summer of 2009.Functional testing and electricity production was cut short last summer as abrasion of the transmission cable wore through the protective sheath and cut-off power from the turbine.After analyzing the results and revising the construction plans this winter,YRITWC plans on deploying the 25-kW Encurrent turbine next summer.Permanent permitting remains an on- going effort,Completion is scheduled for June 2011. Page |83 Kenai Hydro,LLC Grant Lake/Falls Creek PBO00387;Grant No:2195428;Project No:407042 RE Fund Grant:$816,000 Project Type:HYDRO Match:204,000 Applicant Type:IPP Other Funding Sources:Region:RAILBELT Total Project Cost:$1,020,000 RE FUND EXPENDED $0 As of 2/15/2010 Project Description: This pre-construction grant provides funding to develop field data and studies for support of a FERC license for new 4.5 MW hydro scheme which draws water from Grant Lake and Falls Creek.Significant milestone activities conducted in 2009 include:(1)environmental field studies,(2)engineering support for FERC submissions of the Notice of Intent and the Pre-Application Document,(3)outreach meetings for general public and agency personnel,and (4)preliminary engineering for support of FERC project licensing. Project Status: Tasks 1-4 have been under way since May 2009 and are anticipated to continue in 2010.The project's LLC membership has recently changed with the announcement of the withdrawal by Kenai Winds,LLC a J.V.between CIR!and EnXco.Homer Electric continues to pursue the project as the sole remaining LLC member. Page [84 Cross Reference Table by Region Page #ID Project Name Applicant Aleutians 21 58 Chuniisax Creek Hydroelectric Construction City of Atka 65 89 Nikolski Wind Integration Construction Umnak Power/Nikolski IRA Council 75 90 St.George Wind Farm Construction Ut St.George -St.George Municipal Electric 19 11 Aleutians East Borough Renewable Energy Reconnaissance Aleutians East Borough Bering Straits 67 52 Nome/Newton Peak Wind Farm Construction Maes)Nome d/b/a Nome Joint Utility System 77 50 Unalakleet Wind Farm Construction Unalakleet Valley Electric Cooperative,Inc.(UVEC) 66 47 Nome Banner Peak Wind Farm Transmission Construction City of Nome d/b/a Nome Joint Utilities System Bristof Bay 59 64 Lake Pen Borough Wind Feasibility Study Lake and Peninsula Borough 58 62 Chignik Lake Area Wind-Hydro Final Design Lake and Peninsula Borough 60 63 Lake Pen Borough Wood Heating Fina!Design Lake and Peninsula Borough 27 40 Indian Creek Hydro Feasibility Study City Of Chignik 70 6 Lake Elva Hydropower Construction Nushagak Electric &Telephone Cooperative,Inc 26 14 Chignik Lagoon Hydroelectric Final Design Chignik Lagoon Power Utility (CLPU) Copper River/Chugach 32 21 Humpback Creek Hydroelectric Construction Cordova Electric Cooperative 31 22 Cordova Heat Recovery Construction Cordova Electric Cooperative 64 26 Cordova Wood Processing Plant Construction Native Village of Eyak 30 27 Allison Lake Hydro Feasibility Study Copper Valley Electric Association,Inc (CVEA) 24 15 Chistochina Central Wood Heating Construction Cheesh'na Tribal Council 29 46 Kenny Lake Wood Heating Construction Copper River School District 38 2 Gulkana Central Wood Heating Construction Gulkana Village Council Kodiak 54 103 Pillar Mountain Wind Farm Construction Kodiak Electric Associaiton,Inc. 14 73 Old Harbor Hydroelectric Final Design Alaska Village Electric Cooperative Lower Yukon/Kuskokwim 22 122 Bethel Wind Power Project Times 4 City of Bethel 72 110 Kongiganak Wind Farm Construction Puvurnaq Power Company 57 107 Kwigillingok Wind Farm Construction Puvurnaq Power Company 15 70 Quinhagak Wind Farm Construction Alaska Village Electric Cooperative Page [85 Page #ID Project Name Applicant 13 72 Mekoryuk Wind Farm Construction Alaska Village Electric Cooperative 16 71 Toksook Bay Wind Farm Expansion Construction Alaska Village Electric Cooperative 47 35 °|Hooper Bay Wind Farm Construction City of Hooper Bay Northwest Arctic 69 59 Kobuk River Valley Woody Biomass Feasibility Study Northwest Inupiat Housing Authority 11 75 Ambler Solar PV Construction Alaska Village Electric Cooperative 55 85 Kotzebue Wind Farm Expansion Construction Kotzebue Electric Association 68 56 Buckland/Deering/Noorvik Wind Farm Construction Northwest Arctic Borough 12 74 Upper Kobuk Region Hydroelectric Feasibility Alaska Village Electric Cooperative Railbelt 20 68 Anchorage Landfill Gas Electricity Construction bet of Anchorage,Solid Waste Services 74 57 South Fork Hydroelectric Construction South Fork Hydro,LLC ....Alaska Wind Energy,LLC,d/b/a Wind Energy1794NikolaevskWindFarmFinalDesignAlaska(WEA) 35 109 Eva Creek Wind Farm Construction Golden Valley Electric Association 25 53 North Pole Biomass Electricity/Heat Construction Chena Power Utility,LLC 34 87 Fishhook Hydroelectric Construction Fishhook Renewable Energy,LLC $2 34 Grant Lake/Falls Creek Hydro Feasibility Study Kenai Hydro,LLC 37 105 North Pole Heat Recovery Construction Golden Valley Electric Association 18 66 Coal Mine Road Wind Farm Final Design Alaska Wind Power,LLC 8 102 Delta Junction Wind Farm Construction Alaska Environmental Power LLC $2 98 Nikiski Wind Farm Construction Kenai Winds,LLC 10 78 Girdwood Gas CHP/Hydro/Wind Solar Construction Alaska Green Energy,LLC 80 48 Whittier Creek Hydroelectric Reconnaissance City of Whittier 48 86 Fourth of July Creek Hydroelectric Reconnaissance Independence Power,LLC 79 97 Nenana Hydrokinetic Construction University of Alaska Fairbanks,Office of Sponsored Programs 33 112 Delta Junction Wood Chip Heating Feasibility Study Delta/Greely School District 36 108 McKinley Village Solar Thermal Construction Golden Valley Electric Association 84 -Kenai Hydro Recon Assessment Homer Electric Association Southeast 7 23 Coffman Cove-Naukati Intertie Construction Alaska Power &Telephone Company : en :Kwaan Electric Transmission Intertie Cooperative,S6 29 Kake-Petersburg Intertie Final Design Inc (KWETICO) 39 10 Falls Creek Hydroelectric Construction Gustavus Electric Company Page |86 Page #ID Project Name Applicant 41 104 Reynolds Creek Hydroelectric Construction Haida Power,Inc. 50 444 Juneau Ground Source Heat Pump Construction (Aquatic City &Borough of JuneauCenter) 53 37 Whitman Lake Hydro Construction Ketchikan Public Utilities-Electic Division 28 33 ae cttousine Project)System Construction (Low Chitkoot Indian Association 82 60 Yakutat Biomass Gasification Construction Yakutat Power rfl 38 Ruth Lake Hydro Reconnaissance tee Petersburg d/b/a Petersburg Municipal & 23 42 Burro Creek Hydro Feasibility Study Burro Creek Holdings,LLC 63 20 Metlakatla-Ketchikan Intertie Construction Metlakatla Indian Community 42 a sade Wood Heating Feasibility Study (Community Haines Borough 81 9 Wrangell Hydro Based Electric Boilers Construction City and Borough of Wrangell 73 1 Takatz Lake Hydroelectric Feasibility City &Borough of Sitka $1 o Juneau Ground Source Heat Pump Construction (Airport)City &Borough of Juneau Yukon-Koyukuk/ Upper Tanana 62 61 McGrath Heat Recovery Construction McGrath Light &Power,Co. 49 54 Galena Wood Heating Construction Interior Regional Housing Authority (tRHA) 33 84 Ruby Hydrokinetic Construction Yukon River Inter-Tribal Watershed Council 9 49 Tok Wood Heating Construction Alaska Gateway School District 61 30 McGrath Central Wood Heating Construction McGrath Power and Light 40 31 Fort Yukon Central Wood Heating Construction Gwitchyaa Zhee Utility Company 6 no Manley Hot Springs Geothermal Construction TDX Power Statewide 78 88 Statewide Hydrokinetic Feasibility Study mroas Ravens,Ph.D.and Myree McDonald, Page |87