HomeMy WebLinkAboutBering Straights Energy Inventory 1986BER
006 ENERGY CONSULTANT'S REPORT
TO THE
BERING STRAITS
REGIONAL
STRATEGY
JAI'IES GURKE
JUDY ZII'IICKI
.allCtL
Alaska Power Authority
LIBRARY COpy
, "
" ,
'.
DECEt\BER. 1986
List of Tables and Figures
List of Abbreviations
1 I. SUMMARY OF FINDINGS AND RECOMMENDATIONS
1 A. Methodology
3 B. Summary of Policies and Recommendations
9 II. UTILITY ISSUES
9 A. Utility Management and Operations
19 B. Electrical Distribution Systems
21 C. Waste Heat Recapture
27 III. SPACE HEATING ISSUES
27 A. Residential Housing
30 B. Housing Programs
34 C. Community Facilities/Public Buildings
37 IV. FUEL COSTS
43 V. ALTERNATE ENERGY SOURCES AND TECHNOLOGIES
43 A. Coal
44 B. Conservation
45 C. Fuel Cells
46 D. Geothermal Energy
47 E. Heat Pumps
47 F. Peat
48 G. Small Hydropower Systems
49 H. Solar Energy
50 I. Wind/Diesel Systems
51 J. Wood
52 VI. REFERENCES
53 VII. LITERATURE CITED
c ) ,
II. 1
II. 2
II. 3
II. 4
I I. 5
II. 6
III. 1
III. 2
I II. 3
III. 4
III. 5
IV. 1
IV.2
Figure
I I. 1
Utility Ownership and Management in the Bering
Straits Region
Electrification Grants FY59-FY86
Annual State PCE Payments
AVEC Organizational Structure
Regional Electric Profile
Sample Heat Recovery Rates
Household Fuel Use and Cost
Comparative R Values
Housing Programs
Weatherization Projects
Housing Units Receiving LIHEA 1984-1985
Fuel Use by Volume
Comparative Fuel Costs 1983 vs. 1986
Jacket Water Waste Heat Recovery System
ANICA
APA
APUC
ASH A
AVCP
AVEC
BIA
BSHA
BSNC
BSSD
BTU
DCRA
DHSS
DOT/PF
HUD
ICP
KWH
LIHEA
NESC
o & M
PV
REA
RurALCAP
USN
WTG
LIST OF ABBREVIATIONS
Alaska Native Industries Cooperative Association
Alaska Power Authority
Alaska Public Utilities Commission
Alaska State Housing Authority
Alaska Village Council of Presidents
Alaska Village Electric Cooperative
Bureau of Indian Affairs
Bering Straits Regional Housing Authority
Bering Straits Native Corporation
Bering Straits School District
British Thermal Unit
Alaska Department of Community & Regional Affairs
Alaska Department of Health & Social Services
AK Dept. of Transportation & Public Facilities
US Department of Housing and Urban Development
Institutional Conservation Program
Kilowatt hour
Low Income Housing Energy Assistance
National Electric Safety Code
Operations and Maintenance
Photovoltaic
Rural Electric Administration
Rural Alaska Community Action Program
U.S. Navy
Wind Turbine Generator
I. SUMMARY OF FINDINGS 1& RKCONMENDATIONS
A. MlTHODOLOOY
The attached energy report is drafted as a subsection of a
larger plannin8 document entitled The Bering Straits
Regional Strategy Plan. The report is· presented as a series
of findings and recommendations based upon an extensive
review of technioal literature, interviews with local
individuals having pertinent interests in energy matters,
personnel from relevant agenoies, as well as site visits to
several Bering Straits communities. A very short two month
period was available to the consultants to oompile data and
assemble the report. The principle-reason for meeting this
deadline was to permit adequate time for review and comments
on the nature of the suggestions being made. In the absence
of any substantial input by the members of the Regional
Strategy, the authors revised the September "Draft Report"
to only reflect more current data.
Findings and recommendations are presented in four sections:
1) A utility issues section discusses management, generation
and distribution concerns and waste heat recapture. Through
changes in organizational structure and investment in
training or equipment, substantial energy saving are
conceivable. 2) A spaoe heating seotion addresses the
increased energy efficiency available through current and
appropriate construotion standards. 3) A fuel cost section
deals with fuel supply and delivery. Only a preliminary
analysis of the current system, the section suggests steps
to proceed toward a more competitive environment. 4) An
alternative energy source and technology seotion quickly
reviews ten options in various stages of development. These
options are reviewed according to their relative
appropriateness to the Bering Straits region.
A dominant factor supporting many of the recommendations in
this report is the large regional dependence upon energy
subsidies. Electricity has recently been subsidized by
state Power Cost Equalization at about $2.24 million per
year while home heating costs are subsidized by federal
Energy Assistance at about '588,000 annually. Region-wide
this translates into $1,342 per household of energy costs
not borne by the local residents. ExPectations and
lifestyles are undoubtedly affected by these economic
conditions. The authors purposefully ignored a disoussion
of subsidies beoause the future of each program is too
speculative for useful debate. However, an overall
assumption that drove most of the goal statements presented
herein is that utilities and housing agencies would be wise
to operate as though subsidies did not exist when making
future planning decisions.
1
A downside result of subsidies is the potential for ignoring
effioient use of fuel for heating and eleotrioity. As a
general observation, profound reduotions in heating fuel
are available where superinsulation teohniques are
inoorporated into oonstruotion. The ooncept of'a'homebuilt
to require only a small souroe of spaoe heat is not new to
traditional native oulture. It predates government housing
but has been lost in the struggle to heat existing buildings
whioh fail to satisfy appropriate design standards.
2
Regarding eleotrioal generation, a general tenet held by
most exPerts i. that diesel power plants are the only viable
alternative for perhaps the next decade. While most
oommunities have adequate capacity to meet future short-term
needs, a greater degree of attention to maintenanoe and
operation is warranted. While the state treasury adjusts to
deoreases in oil revenues, oommunities will also be likely
to have more diffioulty in obtaining oapital funds for
equipment. Extending equipment life to meet oommunity needs
will be an inoreasingly important priority that should not
be ignored.
Finally, it is noted that what the Bering Straits region
needs most to resolve many of the issues identified are
people willing to advooate a ohange in polioies. The region
will not benefit from this report or any future
reoonnaissanoe without a oommittment to examine alternatives
in its energy demand and supply. As a example, while this
report speaks strongly in favor of strioter standards in
oonstruotion to reduoe energy oonsumption, the Kawerak
Housing Offioe went on reoord in opposition to proposed
state thermal standards. All ohoioes in energy polioy oome
at an eoonomio oost and decisions ought to be made as to how
these costs will be borne.
UTILITY ISStIS
Use the representati on provi ded
in the AVEC delegate process to
require that city/utility func-
tilllS are .t in a respcmible
IaIIner, i. e., AVEC delegates
shaul d attl!lld the annual A'.{C
conference Mith an official
ci ty agenda ftr local illprove-
III!I1ts.
Require the utility to train
plant ~erattrs in esSBltial
teChanical, electrical and
safety cOlponents of utility
operation.
Operate the utility acctrding
to a clllSi stent poli cy Mi th
... itten obligations and
procedures fer the uti Ii ty,
ci ty and custOler'.
Encourage regional developlll!flt
of certi fied curriculUl ftr
electrical trades.
In saall isolated grids,
consuaers lUst bear a greater
responsibility not to exceed
deeand Ii Ii ts recOlll!l1ded bv
the utility.
Prooosed Capl tal projects lItudl
_IiI Increase electrical loads
shaul d have an energy use ana-
lysis sublitted to the utility
so that planning is adequate to
teet new loads.
Requi re a1ftrcE!ll!!1t of the
National Electric Safety Code
in house ~ring thrt\lgh the use
of certified electricians in
all federally funded ht\Ising.
~y (f ~m§..rIID ~~TI~
~SPCHSI£tE A60CV
!Me DOT lbise Ka_ak~
APA APUC util BSHA BSSD City DORA kPF holds RegStrat
* *
* *
*
* *
* *
* *
*
J
A for3lal request froll St. ~ichael
should be lade to the Alaska
Power Authority to examine the
eccnolics of ~aste heat recovery
assuling increased capacity frol
lnterconnection of ne~ loads.
Use the t~chnica; and financial
expertIse of the Alaska POMer
Authority to advance· the oppor-
tunities tor cogeneration.
Encourage the BSSD to involve
itself in operation and lain-
tenance of existing systems
ana to seek funding options
for other econotically
feaslhle projects.
3PACE HEHrING iSSUES
Forllal adoption of Alaska·s
oroposed therllai standards for
cew construction and enforce-
~ent to lIeet or exceed those
stand arcs throughout the region.
Adyocat~ r~trofit of existing
nousing to suoerlnsulated
;tand;rds, oartlcul;rly HUD
Identify key peoole In (awer;k
~no .ould cOnStltute a study
tea; to exa~ine LIHEA ~anage~ent
options and lake a reco~!endation
to r:aweraL
~olRunicate with the State, its
weatherization contractors and
regional households hefore
~eatherlzatlon projects Occur
to influence decisions about ho~
and what work IS ;ost aooropriate
to local lnterests.
RESPONSIBLE AGENCY
AVEC
APA APUC Ubi BSHA 8SSD Ci tv
*
* * *
*
* *
*
*
DOT HOllS: <:ajjerat;~
DeRA -I ,,~
.. '({"to hoi ,js ~eg;t'at
] I
1
1
I
I
I
I
* I
I
* I
I
*
I
* I
I
I ,
Involve DOT.PF Division of
~lanr,lng and Progra,.ing in
design reyie~ of school
facilities and public buildings
for life cy~le cost analyses.
Requlr~ that architectural
designs for small Dublic
bUildings ~eet or exceed
the standards developed by
DCRA.
The BSSD should ;aintain a
~anage0ent policy of annual
inyolve~~nt in the [nstltu-
tional Cons~r,ation Progral
as often as the proqra! can
0eet Identified needs.
7he esse should pursue
aVailable means to incor-
Dorate cog~neration as
reolacement lor pri.ary
heating clants wnere
economicallY feasible.
CQorj:"at~ coooerative fuel
Durcha~es ~ell in adya~ce of
oree'lno ceaallnes.
As ~uch 35 possible. !ake
our:~ases an a area aid :asn
basis to obtain dls~~unts
and aVOid credit Interest
rates.
[nyolve~ent of tne Bering
Straits cOIQunitles, parti-
cularly Na~e, in organiza-
tional efforts to exolore
alternative tuel dell~ery
proaosals.
RESPONS[BLE AGENCY
AVEC
APA APUC Utll BSHA 83SD
*
*
*
DOT Hous~ ~a~erak&
C; '" ~ I. l DCRA ~PF holds ~eqStra,
*
*
* *
*
* *
•
Exolore the feasibility of
gov=rn~ent-controlled tuel
storage in NOle adlinistered
by the proDosed Port Authority.
ALTERNATE ENERGY SOURCES
AND TECHNOLOGiES
Coal develoolent in north-
~est Alaska has potential as a
primary soace heating fuel and
should be evaluated as lining/
transportation options are
commercially explored.
Participate in available state
and federal housing prograls
to decrease space heating loads
through increased building
therul eHiciency (see
Sect i on I I I ) •
Use state-of-the-art energy
efficient appliances. particu-
larlv refrigerators, freezers
and llghts when replaclng old
!:IOdei s.
Consider ~no~n ther;ai sDring
,lteS as locations for econOllC
~eieloo;ent ~here heat
aoollcatlons are desired.
~eat pu,os are not a currently
recommended energy alternatlle
for the region.
Do not pursue peat de~eiop~ent
as an energy source at thiS tl;e.
No 'urther study of Ilcroh~dro
i; reco.lended at this tile.
Micronvdro develoolent projects
~ay be warranted for independent
po~er needs but ~ould only be
available in sU~ler sonths.
RESPONSIBLE A6ENCY
~lJEC
APA APUC Utll BSHA BSSD City
*
* *
*
b
DOT Hv~.; :'2 .~.~";2"'al.)".
CCRA ~F; !lold; FeqSt r at
*
*
*
*
Incorporate passive solar prin-
ciples into all slting and
deslg~ of buildings.
Until ~T~ technology and
econo~ics ilprive for rural
;arkets! village scale ~indi
diesel systems are not
recc:;;,~e~ded.
S;!aii ;,jTG s for Isolated
indeoendent ho~esteads are
technically feasible and lav
be an option provided suitable
wind speeds exist. Aneloletry
st~dies are reco.lended.
Continue current use of ~ood for
reslde"tial soace heating as
displacement for oil and other
nGn-rene~able energy sources.
Consider .ood inappropriate for
electrical generation in the
region.
AVEC
APA APUC Util
RESPONSiBLE ~6ENCY
BSHA BSSD City
* *
DOT House ~::aweraK~
DCRA ~PF hoies RegStrat
*
*
*
II. UTILITY ISSUES
A. UTILITY MANAGEMENT AND OPERATIONS
GOAL: MANAGE AND OPERATE UTILITIES IN ACCORD WITH INDUSTRY-
WIDE "STANDARD UTILITY PRACTICE".
Background -Utility Management: Utility ownership within
the Bering Straits region is composed of two Rural
Electrification Administration member cooperatives, one
privately owned utility, three city-owned systems and one
municipally controlled utility, (Table 11.1). In addition
to differences in management, other distinguishing features
include the sources of financing for capital project
improvements and equipment replacement, and whether or not
the utility is regulated by the Alaska Public Utilities
Commission (APUC).
Electrical
Cooperatives
AVEC:
Elim
Gambell
Koyuk
Savoonga
Shaktoolik
Shishmaref
Stebbins
St. Michael
Wales
UVEC:
Unalakleet
TABLE II. 1
Utility Ownership & Management
In the Bering Straits Region
Ci ty Owned and
Municipally Operated
Diomede
Golovin
Nome
White Mountain
Other
Brevig Mission -
Ci ty owned dis-
tribution/BSSD
powerplant
Council -
Independent power
by household
Solomon -
Independent power
by household
Teller -
Teller Fower Co.,
Privately owned
Alaska state revenues have risen from $333 million in 1975
to a recent high of $4,100 million in 1982 and $3,314
million in 1985. Local benefits have included electrifica-
tion grants in exoess of $4.2 million (1985 Energy Plan) as
well as $500,000 for a failed wind power study and annual
9
Power Cost Equalization payments of $2.5 million, estimated
from 1985 figures. Table II.2 illustrates how state grant
funds have contributed to the Bering Straits region.
Although AVEC communities have benefited less from state
grants than other villages, as a whole they are in a
stronger position to maintain and improve their utility due
to the pooled resources of the cooperative and an
independent source of financing (Federal Rural
Eleotrifioation Administration) when state oapital projeot
monies are lean.
10
Eleotrifioation projeots in AVEC villages have been largely
finanoed by a oombination of 2 peroent loans from the Rural
Eleotrifioation Administration (REA) and state oontributions
made in the early 1970's. REA loans are used for oapital
improvements; ongoing operations are supported by utility
revenues. AVEC is a regulated oooperative whose tariff
provisions require approval by the APUC.
City-owned utilities have developed almost entirely from
state grants to purohase power plants and distribution
systems. City utilities are exempt from APUC regulation
provided their gross revenues do not exoeed $50,000 annuallY
or if they are units within munioipalities or seoond-olass
oities. Nome, Diomede, Golovin and White Mountain are all
exempt under this provision. Management is generally a city
counoil funotion. Souroes of ongoing revenue are expeoted to
be met through the rate struoture with monies set aside for
operation and equipment replaoement (typioally 8% of
installed oost for annual maintenanoe and 8.7% for
replaoement--3% for 10 years, sinking fund) ..
The Teller Power Company is a privately-owned utility. Its
rates are regulated by the APUC.
Although utility management varies largely due to the above
distinotions. in reality several regional oharaoteristios
affeot the utilities equally:
1. Utility operations are less striot in village utilities
than in urban areas due to the absenoe of city or utility
enforoed oodes or standards. APUC Dooket Number U-84-64
doouments numerous issues arising from the absenoe of
preventive maintenanoe programs. As a general observation.
the absenoe of reoognized prooedures in purohasing,
maintenanoe and safe operation will be a oontinuing souroe
of expense for rural oommunities unless efforts are made to
operate in a more uniform manner.
2. A souroe of looally available talent to manage and
operate the utilities has not developed to keep paoe with
need. Turnover rates for village operators are high (Lyon,
AVEC) and most individuals oome to the job with minimal
training or experienoe. In addition, vooational eduoation
at the publio sohool level is diffioult to provide.
Institutions like Northwest Community College and the
Kotzebue Teohnioal Center do not ourrently provide
TABLE II. 2
ELECTRIFICATION GRANTS FY 59 -FY 86 (Thousands of Dollars)
Bulk
Dollars Fuel Bulk
Pre FY75-Per Waste Storage Fuel
Community Pop. 75 FY79 FY80 FY81 FY82 FY83 FY84 FY85 FY86 Total Capita Heat Grant Loan PCE
Brevig Mission 132 50 60 100 X X
Council
Diomede 121 17.8 106 100 X X
Elim 202 50 50 X X X X
Gambell 426 X X
Golovin 110 225 70 X X
Koyuk 185 X X X
Nome 3590 40 943 X X X
Savoona 472 50 50 X
Shaktoolik 157 0.4 53 X X X X
Shishmaref 436 X X
Solomon X X X
Stebbins 316 X X
St. Michael 312 6.5 X
Teller 207 537 X
Unalakleet 654 1000 200 X X X X
Wales 124 X X X
White Mountain 125 115 170 50 100 X X
Totals 7,569 0.4 24.3 40 265 1697 1747 170 400
Source: House Research Agency Report 85-C
competency based instruction for those people currently
employed by utilities.
3. Because rate payers are subsidized by Power Cost
Equalization, the economic impact of inefficient operation
is largely buffered. Should PCE be substantially reduced,
these factors will play a larger part in actual costs to the
consumer. Table 11.3 illustrates the importance of state
PCE on local economies throughout the region. The effect on
local lifestyles is obvious with the recent introduction of
electrical appliances and water heaters. At 234 kWH per
month per household compared to Anchorage at 683 KWH, total
average KWH demand is still low.
TABLE II. 3
Annual State PCE Payments (Estimate in Thousands)
Diomede $ 43 Nome $ 890 St. Michael $105
Elim 81 Savoonga 158 Unalakleet 183
Gambell 146 Shaktoolik 86 Wales 59
Golovin 52 Shishmaref 118 White Mtn. 43
Koyuk 10 Stebbin 95 Teller 41
Source: Alaska Power Authority
Objeotive II.l: Require AVEC to develop a polioy and
prooedures manual so that operators oan run the utility
according to "standard utility praotioe" aooepted by the
industry.
Purpose: 1) To reduce maintenance and replacement costs.
2) To increase the safety level of local
utilities.
3) To improve the quality of utility service to
consumers.
Rationale: Preventive maintenance practices are commonly
recognized as a first priority in all attempts at
ensuring safe, reliable utility operation. For instance, a
commonly observed problem in many of the villages served by
AVEC is the confusion about responsibilities borne
respectively by the city, its operator and the utility,
AVEC. An example is "live" pedestal-mounted transformers
observed in villages with covers unsecured and damaged.
These conditions pose safety concerns yet in interviews with
plant operators little indication of how the problem should
be resolved was available. Neither were operators
necessarily experienced in high voltage maintenance
procedures.
12
Other observations obtained by interviews included:
1. On the average, the level of prior exPerience and
training for village operators is extremely limited. One
operator reported training of one day by the former
employee. In another case, an operator is about to retire
but no one is being groomed for replacement. AVEC's
membership guidebook implies that O&M personnel will train
operators but little evidence exists that this occurs.
Rapport between these individuals is so poor in several
villages that practically no communication exists.
2. Village level utility boards are assigned technical
duties by AVEC such as monthly inspections of distribution
systems without regard to their lack of expertise. AVEC's
Incentive Policy assigns electrical system repair, including
line splicing, to the operator (page 6, no. 35 and 36). In
neither instance could there be found consistent assurance
that local personnel even know of this responsibility or are
capable of carrying it out.
3. Appliance losses have occurred due to voltage spikes or
drops. Customers generally have no recourse but to accept
the loss.
4. Environmental concerns arise with regard to waste lube
oil. In the absence of consistent policy for disposal,
operators do not know what to do. In one village, waste oil
was being dumped in a pit at the beach. Other sites had an
accumulation of 55 gallon drums filled with the oil.
Common to many of the issues investigated is the confusion
as to who is responsible and how a remedy is to be carried
out. This problem is particularly true to AVEC's operation.
AVEC's member guidebook contains the following
organi2ational chart (Table II.4), demonstrating the
principle of a utility cooperative being controlled by its
membership (the consumer) through elected representation.
The delegates are presumably the most powerful voices within
the organization because they set policy for the general
manager by way of a seven person elected Board.
13
No connection from the Operations and Maintenance block to
the village entity in the organizational chart is a
noticeable feature of AVEC's organization. Similarly, the
absence of a direct link between the village plant operator
and the utility increases the potential for problems in
utility operation. On the village level, operating
agreements exist between the city and AVEC which require the
city to hire a plant operator, select a three person utility
board and oversee the election by co-op members of a
delegate to attend the annual Coop meeting and elect AVEC
directors.
A preventive maintenance plan does not exist as a formal
operating procedure between AVEC and the city operators.
This fact is a concern of the Alaska Public Utilities
•
J
Commission, expressed in Docket U-84-64. The following
quote tacken from the Docket files reaffirms the concern:
"The principle weakness in AVEC's current operation is the
lack of a clear chain of accountability from the village
operator and the village utility board back to AVEC manage-
ment. . .. This important point has been previously brought
out in the management study of AVEC which was performed in
1977 by Arthur Young & Co.: "It is sensible to encourage
maximum employment of persons in the village, but
supervision must be qualified and broadly exPerienced. AVEC
must be responsible for this supervision. If a local person
is good enough to supervise, AVEC should hire him and assume
responsiblity for the work." (December 9, 19S5 letter from
John Farleigh, APUC, to Lloyd Hodson, AVEC).
A caveat to this proposal is the fact that AVEC must meet
its obligations to REA to ensure financial solvency. Under
existing loan agreements, cities are required to employ the
operator themselves to minimize labor costs. An analysis of
potential savings arising from better on-site maintenance
has not occured to weigh the above alternative.
Identifying procedures and respective responsibilities
serves as a vehicle to meeting "Standard Utility Practice".
It also represents a needs assessment by defining responsib-
ilities relative to existing abilities.
14
TABLE 11.4
AVEC ORGANIZATIONAL STRUCTURE
J CITY COUNCIL} I J
PLANT OPERATOR CITY UTILITY BOARD
The plant operator is hired The Utility Board consists of
by the City Council. The 3 members who are appointed by
City has control of loc al the City Council. The Board
utility employees. regulates plant operation and
maintenance and keeps the
Headquarters staff informed.
VILLAGE MEMBERS ELECT
DELEGATE TO ANNUAL MEETING
The village meets in December and selects a
delegate to attend the annual Co-op meeting in
Anchorage in March of each year.
ELECT 7 DIRECTORS (2 OR 3 EVERY YEAR)
THIS BOARD SETS OPERATION POLICIES
HIRES
GENERAL MANAGER
J
I Engineeringl lconstructionj lo per a t ion s ILogistics J
I Member Finance Quality
I Services and Control
Control
POLICY RECOMMENDATIONS:
* Use the representation provided in the AVEC delegate
process to require that city/utility functions are met
in a responsible manner, i.e., AVEC delegates should
attend the annual AVEC conference with an official city
agenda for local improvements.
* Require the utility to train plant operators in essen-
tial mechanical, electrical and safety components of
utility operation.
* Operate the utility according to a consistent policy
with written obligations and procedures for the
utility, city and customer.
* Encourage regional development of certification
curriculum for electrical trades.
BackgrQund -Powerhouse and Generation Condition§: All
eighteen cities in the Bering Straits region are generating
electricity with diesel electric power plants. In the
diesel engine operation, air is compressed in a cylinder to
a high pressure and temperature above the fuel ignition
point. Fuel oil is injected into the compressed air where
it burns, converting thermal energy to mechanical energy by
way of a piston driven shaft. The shaft, in turn, drives
the generator.
16
Diesel-electric generation is one of the more efficient
simple cycle conversions of chemical energy (fuel) into
electricity, but it comes at a price. Operating life
considerations require the burning of only high grade liquid
petroleum. Throughout the region, No. 1 fuel oil is used
exclusively. Its energy content per gallon, measured in
British Thermal Units (BTUs), ranges between 128,000 and
138,000 BTU. The optimum efficiency achieved in this
thermal to mechanical conversion is about 31 percent for the
high rpm (1800 rpm) machines currently in use throughout
Alaska. (Large displacement, 900 rpm machines are reported
to approach 38 percent efficiencies but have not penetrated
Alaska markets. )
A kilowatt hour (kwh) of electricity contains 3414 BTU.
Assuming the fuel used is of the highest grade, at 138,000
BTU/gal., 31 percent operation efficiency produces 42,780
BTU/gal. of energy converted into electricity, or 12.5
kwh/gal. This might represent a near term goal sought by
small power plants like those in the Bering Straits region.
Objeotive 11.2: Establish a load management program within
eaoh oity-owned utility and within the AVEC oooperative.
Purpose: To determine the best use of available equipment
by monitoring and documenting the daily operating
characteristics of the power plant.
Ration~~ Diesel-electric units have variable operating
characteristics, subject to daily and seasonal changes in
the load, which affeot efficiency. Diesel units are
preferably base loaded, operating with a fairly constant
demand to ensure highest fuel use and longer term operation
between overhauls. Table 11.5 lists the installed capacity,
engine configurations, fuel use and average demand for the
majority of the region's communities. The "average demand"
figure is based on annual net generation divided by 8760
hours, or one year. Table 11.5 also lists the heat rates
achieved by each of reporting utilities. These rates are
converted into kwh's per gallon to simplify comparisons.
The importance of the table is twofold: 1) The average
demand for the villages is small relative to equipment
capacities. Provided equipment and methods exist to match
output to load, the potential for an improved operating
match is substantial; and 2) the fuel use achieved by power
plants throughout the region varies by nearly 30 percent.
Fuel oil has traditionally been the single largest expense
in utility operation. The relationship of equipment
operation and maintenance to fuel usage is important as a
basis of a long term strategy to provide least-cost energy.
The low heat rates achieved in communities such as Teller
suggests that 20 percent improvement in fuel use is
possible.
POLICY RECOMMENDATIONS:
* In small isolated grids, consumers must bear a greater
responsibility not to exceed demand limits recommended
by the utility.
* Proposed capital projects whioh will increase electri-
cal loads should have an energy use analysis submitted
to the utility so that planning is adequate to meet new
loads.
--
TABLE II. 5
REGIONAL ELECTRIC
Nameplate Config-Net Gener-
Utility Location Capacity uration ation (mwh)
AVEC Elim 231 436
AVEC Gambell 460 974
AVEC Koyuk 270 430
AVEC St. Michael 340 593
AVEC Savoonga 650 1056
AVEC Shaktoolik 200 1 105 339
2 75
AVEC Shishmaref 600 922
AVEC Stebbins 275 557
AVEC Wales 155 212
NJUB Nome 6968 19870
Teller
Power Co. Teller 445 600(E)
UVEC Unalakleet 1860+30(a) 3211
City Golovin 265 1 135
2 130
City White Mountain N/A
City Brevig Mission 355 2 135
1 85 N/A
(a) cogenerated
(b) at 136,000 BTU/gal.
SOURCES: Alaska Electric Power Statistics, 1984
Alaska Power Administration
Alaska Energy Plan 1985 Regional Data
Summary, Alaska Power Authority
---........ _---"----"
PROFILE
Heat Heat
Average Peak Fuel Use Rate (b) Rate
Demand (kw) MW (1000 Gal) (BTU/KWH) (KWH/Gal)
64 .1 45 14,362 9.5
144 .2 95 13,552 10.0
63 .1 45 14,413 9.4
87 .1 57 13,339 10.2
155 .2 96 12,643 10.8
50 .1 38 15,705 8.7
136 .2 94 14,101 9.6
82 .1 57 14,188 9.6
31 .1 25 16,184 8.4
2930 4.0 1543 10,768 12.6
88 .6 49 11,234 12.1
47 .2 228 9,866 13.8
ll)
B. ELECTRICAL DISTRIBUTION SYSTEMS
GOAL: DISTRIBUTION SYSTEMS AND SERVICE ENTRIES SHOULD BE
BUILT TO ENSURE SAFE, EFFICIENT USE OF ELECTRICAL
ENERGY.
~kground: Three areas of general interest are identified
from review of APUC files, village inspections and
interviews with APA and AVEC personnel:
1. Service entries and house wiring in many homes does not
meet National Electrical Safety Code requirements. These
are not utility responsibilities and in some instances, are
cause for disconnection by the utility to prevent accidents.
Common problems include poor groundings and improper connec-
tions to outside equipment.
2. Ground level utilidors are cause for much concern due
to their vulnerability to abuse from motorized vehicles.
Several villages have recently been converted to overhead
7200 volt primary systems and residents have reported much
better utility service.
3. In several instances, utility interconnection with
other load centers may be a legitimate option to resolve
certain problems caused by the very small loads in isolated
diesel systems.
Objeotive 11.3: Residential servioe entranoes and wiring
should be upgraded to meet NEC and Rural Eleotrifioation
Administration standards.
Purpose: Improved safety.
Rationale: In many previous HUD and BIA construction
projects, certified electricians were not required to
install house wiring. With increased use of electrical
appliances, particularly where water and sewer systems are
installed, the potential for overloaded circuitry and
resultant fires and home damage is increased. These
problems may then be unfairly attributed to the utility. In
the absence of city enforcement of electrical codes, little
more can be expected than to use repair funds to address
obvious problems. Practically speaking, the only effective
enforcement and repair of problems will likely be achieved
through subsequent appropriations to HUD and BIA
construction projects.
POLICY RECOMMENDATION:
* Require enforcement of the National Electrical Safety
Code in wiring or houses through the use of certified
electricians in all federally-funded housing.
Objeotive 11.4: Consolidate loads where eoonomioally feas-
ible to increase effioiency.
Purpose: Improve economies of scale.
Rationale: Two locally proposed projects have been explored
to determine the practicality of load consolidation: 1) the
addition of the U.S. NavY surveillance station in Wales to
the local power grid, and 2) construction of a tie-line
between St. Michael and Stebbins. Both cases require the
interest and consent of AVEC which services all three
villages.
Preliminary consideration of the NavY intertie appears to
hold little promise due to the NavY's need for reliability.
AVEC has shown no interest in pursuing this objective.
The St. Michael-Stebbins tie-line proposal has been dis-
cussed over several years in concert with the desire to have
an interconnecting road. An intertie has also been sugges-
ted to the Alaska Power Authority and was included in
several budget requests for construction. A primitive
ground cable was attempted at one time but had no practical
operating history due to abuse from off-road vehicles.
The primary purpose of interconnection is to increase
efficiency by operating a single. larger power plant with
the second plant in reserve. Preliminary plans center on
St. Michael as the prime power center. The additional load
would greatly enhance the economics of waste heat recovery
for St. Michael.
Waste heat recovery in Stebbins was determined to be uneco-
nomical to develop according to a 1984 APA study. Problems
associated with the proposal include the need to double the
capacity of St. Michael's largest generator. (AVEC would
not agree to run machines in parallel for extended periods
of time due to decreased fuel efficiency, the need for
expensive synchronizing gear, and additional maintenance.
Fuel storage may also be an issue if privately owned tanks
in St. Michael were not available for AVEC's use.
POLICY RECOMMENDATION:
* A formal request from St. Michael should be
made to the Alaska Power Authority to examine the
economics of waste heat recovery assuming increased
capacity from interconnection of new loads.
20
C. HASTE HEAT RECAPTURE
GOAL: INSTALL COGENERATION FACILITIES IN EVERY COMMUNITY
WHERE IT IS ECONOMICALLY FEASIBLE.
Backgrou~: Diesel generator sets operating at near optimum
conditions will typically convert fuel oil energy into
electricity at a level of 30 percent efficiency. The
remaining fuel energy is lost as heat and unspent fuel,
exhibiting an energy profile approximately as follows:
20-3ml&
24-30%
6-7%
6%
Shaft horsepower (electricity)
Jacket cooling water (heat)
Engine radiation (heat)
Unburned fuel
The 24% -30% heat lost to jacket cooling water clearly
demonstrates the reason behind heat capture as a means of
increasing conversion efficiency of fuel oil to useable
power or heat.
Recovery of jacket cooling water heat is the most typical
waste heat application in Alaskan villages due to-its sim-
plicityand reliability (Figure 11.1). Stack exhaust can be
used for heating but requires a higher level of automatic
controls, greater operator skill and frequent cleaning.
Ecomonic feasibility is subject to the size of the power
plant and respective loads, and to the distance between the
plant and the building to be heated. Three hundred feet or
less is an accepted distance in village applications.
21
Table 11.6 indicates the annual recoverable heat at various
diesel unit sizes and generating efficiencies, assuming that
only jacket water heat is recovered. For comparison
purposes, the recently constructed school in Shaktoolik is
known to have a heating load of about 3240 million BTU, per
annual average.
An example of potential benefits is expected at the Nome-
Beltz High School where the Nome Joint Utilities will
operate a satellite 500 kw generator. Jacket and stack
recovery is expected to increase total fuel efficiency to
over 80 percent and provide nearly 100 percent of the
school's heating needs.
Technical data collection to assess preliminary design and
cost considerations is relatively standard and can be
obtained by a qualified engineer in a short time. The
Alaska Power Authority is the most logical source of
information and assistance in carrying out waste heat eval-
uation and design review.
Figure 11-1
JACKET WATER WASTE HEAT RECOVERY SYSTEM
E~It\E
SPACE
.-£AT
HE-HEAT EXCHANGER
FfI-FAN flOTOR
SOlR:E I ACRES N'.ER I CAN. 1 ~
SEaNlARY LOOP ------PR II'IARY LOOP
P -PUftP
TS-THERflOSTATIC SWITCH
V -THERflOSTATIC VALVE
AIR
FLOW
f,-)
h,l
TABLE II. 6
-SAMPLE HEAT RECOVERY RATES
(In 10& Btu/year at 3 Efficiency Rates)
Generator Annual Output (10& Btu) at:
Size (KW) KWH
12 KWH/gal 10 KWH/gal 8 KWH/gal
50 175,200 671. 6 805.9 1,007.4
75 262,800 1,007.4 1,208.9 1,511. 1
100 350,400 1,343.2 1,611.8 2,014.8
200 700,800 2,686.4 3,223.6 4,029.6
Assumes 138,000 Btu/gal fuel, 0.40 load. factor.
SOURCE: Acres American Reconnaissance Study
Generator operating efficiencies also benefit from waste
heat projects due to the reduced station load when cooling
fans and other regulating equipment are removed. Unala-
kleet, for instance, has a combined jacket water/stack
recovery system serving the high school, administration
building and other public buildings. With good operating
practices a fuel use rate of about 14 kWh/gallon as well as
substantial heat savings are achieved.
Objeotive 11.&: Complete a re.ion-wide reoonnaissanoe to
evaluate technioal and institutional oonditions for waste
heat recapture.
Purpose: 1. To provide a clear understanding of the bene-
fits and costs associated with a project.
2. To determine how and who would be responsible
for funding, operations and maintenance.
23
~ionale: Waste heat systems already exist in the region
but have achieved only marginal success. Their operations
have been tarnished by 1) several design flaws including
poor material choices in pipe and solder which caused
leakage of transport fluids, 2) incomplete identification of
maintenance responsiblities by the Alaska Power Authority
(designers), the utility, and the public schools who receive
the heat, and 3) changes in operation and demand after the
system was installed.
Reconnaissance investigations for waste heat recapture have
occurred for a number of Bering Straits villages and are
contained in a report entitled "Rural Energy Construc-tion
Program, 1984-1985". produced for the APA. Reviews of APA
studies and discussion with their Rural Projects staff
permits the following generalizations:
Brevig Mission: The existing BSSD power plant has a heat
recovery system that functions but could be improved. It
is recommended that the school power plant be operated by
the city utility. The city-owned module generator could then
be used by the BSSD as back up.
Diomede: A new power plant with cogeneration is expected in
operation by the end of 1986.
Elim: A waste heat system which carried nearly 100 percent
of the school heat load is currently inoperable due to fluid
leaks. Repairs are under negotiation between AVEC and APA.
Gambell: A re-evaluation of the new power plant location
must occur. If the distance between the powerhouse and
school is not too great, the electrical load in Gambell
makes the project attractive.
Golovin: The APA is currently doing some preliminary design
estimates. Inconclusive data as of yet.
Koyuk: No reconnaissance work on waste heat performed yet.
24
Nome: Federal Department of Energy funds have been obtained
to examine a comprehensive district heating project. A
satellite cogenerating plant at the high school is expected
to be completed in 1986.
Savoonga: Situation similar to Elim. A repair strategy is
being negotiated between AVEC and APA.
Shaktoolik: Waste heat recovery to supply the city water
project is under construction.
Shishmaref: Evaluated by APA and determined to be feasible,
particularly if built with APA design criteria and forced
accounting. Estimated cost $406,000; estimated annual
savings $46,479.
Stebbins: Determined to be infeasible due to low load and
distance between school and powerhouse. It is recommended
that Stebbins and St. Michael resume discussions with AVEC
and the APA to build an intertie.
St. Michael: Evaluated by APA
feasible, particularly if load
distribution line to Stebbins.
intertie) $701,012; estimated
and determined to be
was increased through a
Installation cost (with an
annual savings $58,666.
Teller: Infeasible due to the use of an existing system
supplying private facilities.
Unalakleet: Currently contains a comprehensive system with
some capacity for expansion.
Wales: Evaluated by APA and determined to be feasible for
supplying the washeteria and water system, conditional upon
the extent of local support in construction. Estimated cost
$190,700; estimated annual savings $19,140.
White Mountain: The new location of the power plant
relative to the school improves the potential feasibility.
No reconnaisance work on waste heat performed as yet.
The cost estimates included above assume Davis-Bacon labor
costs. Even assuming a forced accounting method for
installation, capital costs for cogeneration can be
significant. However, design life for the projects is
twenty years, so accrued savings can result in simple
paybacks of seven years in many cases.
The APA has funded most previous construction through
legislative grants. With decreased revenues, alternative
methods are being sought. The most promising is the use of
tax free bonds where either municipal or school facilities
are the cogeneration partners with the utility. Preliminary
discussion with APA personnel indicates that state ownership
and lease management is being considered. Schools or cities
would be responsible for the bond interest payments and
maintenance of the secondary loop in the system. This
appears to be a very practical near-term option. Because
the BSSD is potentially the largest benefactor from
cogeneration, the school board would have to actively
involve itself in support of most new construction.
25
AVEC, being the largest utility in the villages, has the
highest potential for delivery of waste heat while the
schools tend to be the logical recipient. Previous system
installations were somewhat on a demonstration basis, paid
for by the State and then assigned to AVEC. A concern
involving maintenance costs has arisen for AVEC for two
reasons: 1) Political pressures have been exerted upon AVEC
not to sell the heat but to deliver it free to the schools.
This ignores the need for revenue to maintain the system.
2) Even if sales were to occur, AVEC would see little
benefit to its revenue because Power Cost Equalization
payments may then be reduced on a prorated basis.
As a cooperative utility, AVEC has little financial
incentive to own or operate cogeneration facilities. This
can be remedied partially by having school maintenance
personnel attend to the so-called "secondary loop" of a
facility (Figure 11.1). The utility is then only
responsible for the primary loop essential to the cooling of
its power plant. The reduced station load is sufficient to
pay back the primary loop maintenance cost. The school
systems's benefits would be significant in spite of the
•
J
added responsibilities, assuming equipment is in sound
working order upon acceptance.
POLICY RECOMMENDATIONS:
* Use the technical and financial exPertise of the Alaska
Power Authority to advance the opportunities for
cogeneration.
* Encourage the BSSD to involve itself in operation and
maintenance of existing systems and to seek funding
options for other economically feasible projects.
III. SPACE HEATING ISSUES
A. RESIDENTIAL HOUSING
GOAL: CONSTRUCT NEW HOUSING AND RETROFIT EXISTING HOUSING
TO IMPROVE COMFORT AND REDUCE HIGH HEATING COSTS.
Background: Approximately 2000 housing units exist in the
Bering Straits region. Number one fuel oil is the
predominant home heating fuel with about 900,000 gallons per
year consumption. Cut wood is used as an alternate fuel in
White Mountain and Elim. Driftwood is a primary heating
fuel in Shaktoolik and, to a large extent, in Unalakleet.
The average number of heating degree days in the region is
14,600 with wind speeds averaging between 8 and 16 mph.
In 1984, RurALCAP conducted a survey of energy use among
village households, some of which were in the region. Table
111.1 indicates some of the survey results.
Fuel Type
h1 Fuel Oil
Gasoline
Electricity
Propane
Blazo
TABLE III. 1
Household Fuel Use and Cost
Consumption as a Percent
of Total Fuels Used
Cost as a Percent
of Total Fuel Cost
61%
30
5
3
1
45.5%
24.8
19.8
6.9
3.0
In general, the majority of rural energy costs are related
to home heating. This, combined with the subarctic climate
and windy conditions of most coastal villages, is evidence
enough for the need to seek efficiency through well-
insulated, well-constructed homes.
The State of Alaska has been working on the development of
"thermal standards" for new construction which take into
account the regional differences in heating degree days and
fuel costs. Table 111.2 demonstrates the variations, in
general terms, of insulation levels thought to be necessary
in support of the value of energy efficiency.
27
TABLE 111.2
Comparative R Values
HUD 500 Project (late 70's)
HUD 400 Project (early 80's)
DCRA Proposed Min. Standards
Super insulation Design
Ceiling
27
38
38
60
Wall
19
19
30
40
Floor
19
30
43
56
Window
2
2
3
3
28
The variations in fuel demand resulting from these different
design criteria are profound. HUD 500 houses in the Bering
Straits region are reported to have fuel consumption rates
on the order of 1500 gallons per year. HUD 400 houses have
been using fuel at a rate of 800 gallons per year.
Superinsulated homes in Nome are reported to consume about
200 gallons of fuel for houses substantially larger than HUD
dimensions. Current residential design is inadequate for the
colder regions of the state. For example, HUD housing, which
constitutes 436 units, or 36 percent of the village housing,
is characterized by a single thermal standard, despite the
wide differences in climate. Many of the other housing
projects, including those of B1A and the Alaska State
Housing Authority, are requiring excessively high
maintenance as well as energy costs due to inappropriate
design for the region (Bering Straits Housing Authority Site
Reports).
Over the past decade very little emphasis has been given to
home heating costs by the State of Alaska energy programs in
spite of the high percentage of energy dollars directed
toward space heating (House Research Agency Report 83-C),
The fact that the region generates very little new housing
besides that provided by HUD or B1A is, therefore, cause to
examine ways in which these agencies can be influenced to
build to extremely high efficiency levels.
ObJeotive III.1: All new housing in the region should meet
or exoeed the proposed DCRA standards.
Purpose: To reduce life oyole oosts of looal housing.
Rationale: Using the example of the existing 189 HUD 500
housing units, energy savings on the order of 50 percent
could be expected if the proposed state standards were met
(Arctic Energy Systems, energy profiles). Conservatively
stated, this translates into 150,000 gallons per year in
fuel oil to small purchasers or homeowners. Over the past
five years since these homes have been occupied, the total
dollar savings to the looal economy would equal $1.5 million
at a constant fuel oil cost of $1.50 per gallon.
Savings of this magnitude are potentially available under
two equally important scenarios. First, the Bering Straits
Housing Authority and the housing program within Kawerak
Inc. represent direct opportunities to influence HUD and
BrA, respectively. Projections of up to 45 new homes in the
region are being made for the 1987 building season. A clear
message that superinsulated construction be examined by HUD
and BIA is essential as a means of promoting long term self
sufficiency versus dependency on the vagaries of fuel oil
supply and pricing. A fire insurance rebuild of a St.
Michael house has been accomplished using superinsulation
techniques: offset double wall construction for increased
insulation value, an air-vapor barrier to ensure minimal
infiltration rates, an air-to-air heat exchanger to ensure
good ventilation, and new polymer type window casings with
high R-value glass. Anticipated fuel costs are $360
annuallY for a 960 square foot house, assuming $1.50 per
gallon fuel oil cost. This project should be significant to
the region as a demonstration to be used or improved upon.
New housing subsequently planned for the region might then
be required to contain an "energy detail sheet" in the
design specifications for use by the contractor/builder.
Second, these same local agencies can influence home
retrofits when or if funds are available. The most
promising retrofit would occur under terms being negotiated
in the class action lawsuit by HUD 500 occupants against the
federal government (Ungott v. Hodel, D. Alaska Civ. No:N82-
004). The Bering Straits Regional Strategy has begun to
undertake a retrofit design option, with approval from the
Bering Straits Housing Autority. Should a cash or repair
settlement occur, the Housing Authority will be prepared to
offer HUD and home owners blueprints and cost estimates for
a superinsulated retrofit. As is the case for new
construction, a test case to demonstrate the effectiveness
of this strategy is important to widespread acceptance.
Additional sources of funding may be sought through the
Alaska Department of Health and Social Services to finance a
model retrofit.
POLICY RECOMMENDATIONS:
* Formal adoption of Alaska's proposed thermal standards
for new construction and enforcement to meet or exceed
those standards throughout the region.
* Advocate the retrofit of existing housing to super-
insulated standards, particularly HUD 500 units.
29
B. HOUSING PROGRAMS
Backg~Q~nd~ State weatherization and federally funded energy
assistance payments (LIHEA) are provided region-wide. They
address problems created by inadequate housing (too little
insulation) and the high cost of fuel in relatively poor
cash economies. Table 111.3 describes the nature and
funding sources of the programs currently available.
Program Description
Low Income
Weatherization
Low Income
Home Energy
Assistance
Program (LIHEAP)
Federal
Housing
Repair
TABLE III. 3
HOUSING PROGRAMS
Federally funded,
State DCRA Admini-
stered, w/work
performed by
federally
recognized
contractors,
i.e., RuralCAP
Federally funded,
State DHSS Admin-
istered. Local
tribal non-profits
can choose to
administer the
program
Federally funded,
locally administered
by both the Bering
Straits Housing
Authority (HUD $)
or Kawerak, Inc.
(BIA $)
Weatherization
materials & instal-
lation provided
to qualified
households. Con-
tracts are restric-
ted by geographic
criteria with ex-
penditures @ approx
$2000 per house.
Energy assis-
tance monies are
provided to quali-
fied households
through diesel fuel
payments to vendors
Weatherization
funds are also
available
Home repair and
incidental weather-
ization through
annually appro-
priated funds.
Restricted to
housing constructed
under HUD & BIA
Since 1980, approximately 246 homes in the Bering Straits
region have received weatherization assistance from the
State of Alaska valued at approximately $874,379 (Table
111.4). This represents assistance forabout 10 percent of
the households in the region. Except in 1985 when Kawerak,
Inc. was the prime contractor, all other contracts were
performed by firms either from outside the region such as
RurALCAP or by a local entity such as the city government.
Funding for low-income weatherization is currently derived
from federal monies (approx. 90 percent) and state
assistance.
TABLE III. 4
WEATHERIZATION PROJECTS
APPROX.
NUMBER OF DOLLAR
LOCATION YEAR HOMES SERVED AMOUNT
Diomede 1984 34 $155,346
Gambell 1986 55 199,173
Golovin 1985 23 75,542
Nome 1984 31 126,329
(King Island) 1985 18 66,025
Savoonga 1985 15 39,600
1986 24 87,600
Teller 1985 21 69,764
Wales 1983 2~ ~..J!QQ
TOTAL 246 $874,379
SOURCE: AK Department of Community and Regional Affairs
31
The Low Income Home Energy Assistance Program (LIHEAP)
provides federal block grants to the Alaska Department of
Health and Social Services (DHSS) Division of Public
Assistance and to regional tribal non-profit organizations.
The purpose of the program is primarily to subsidize the
cost of home heating for low income Alaskans. Funding in
FY85 was $11.7 million statewide, of which $588,377 was made
in transfer payments to the Bering Straits region (Table
111.5).
TABLE I II. 5
HOUSING UNITS RECEIVING LIHEA 1984-1985
Community
Brevig Mission
Diomede
Elim
Gambell
Golovin
Koyuk
Nome*
St. Michael
Savoonga
Shaktoolik
Shishmaref
Stebbins
Teller
Unalakleet
Wales
White Mtn.
TOTALS
No. 1984
Houses Recipients $
41
33
48
163
37
48
917
73
158
56
94
82
63
200
54
41
2123
32
34
78
31
186
51
77
24
83
65
48
82
25
31
851
22,025
(See Nome)
21,681
59,163
(See Nome)
20,573
104,536
36,100
59,550
15,549
58,253
41,314
34,906
54,943
17,350
19.689
567,994
1985
Recipients
31
36
79
35
159
47
88
20
83
49
39
86
28
33
813
23,401
21, 998
69,798
25,464
101,932
33,826
78,899
12,304
61,588
26,981
29,663
64,000
21,600
16,923
$588,377
* DHSS combined Nome, Diomede, Golovin,
Council & Solomon in data entry.
Source: 1986 Alaska Energy Plan
32
Objeotive 111.2: Assume relional responsibility tor housing
programs to ensure looal oontrol and relevanoe.
Pyrpo~: To produce responsible choices that provide a
necessary service and jobs to local economics
through the exercising of local control.
E~tion~le: LIHEAP provides up to 15 percent of its state
block grant to the Department of Community and Regional
Affairs for statewide weatherization disbursements. The
consequences of this existing funding procedure are twofold:
1) Contracts to perform weatherization are restricted to
federally-acknowledged contractors such as RurALCAP, and 2)
LIHEA weatherization funds are distributed into the state
weatherization program without regard to geographic
apportionment. In other words, there is no guarantee that
the Bering Straits region will receive its geographical
proportionate share of LIHEA weatherization funds.
An alternative to state management is possible, however.
Kawerak, Inc., as a tribal non-profit agency could
administer the program for the Bering Straits region under
direct contract to the federal government. With Kawerak as
administrator, the 15 percent weatherization monies from the
state block grant could then be used locally under very
liberal guidelines. Assuming that grant conditions remain
constant, as much as $92.200 would be available annually to
implement projects in the region. Tanana Chiefs Conference
has installed high efficiency wood stoves. for example.
resulting in 40 percent reductions in wood consumption.
Regional administration may present some obstacles but the
benefits are significant. Duplication of administrative
formats already developed by Tanana Chiefs Conference. the
Association of Village Council Presidents (AVCP) and DHSS
would simplify matters. Overhead is allowable at 10 percent
of the total grant award or about $73,500 based upon current
funding. Outreach and bookkeeping could be handled through
existing social service and accounting offices.
Management could be incorporated into Kawerak's housing
office with assistance from the Bering Straits Housing
Authority in implementing projects. At a time when revenue
sharing has suffered increasing cutbacks, these funds could
prove to be very effective in improving local housing and
Kawerak's scope of services.
POLICY RECOMMENDATIONS:
* Identify key people in Kawerak who would constitute a
study team to examine LIHEA management options and make
a recommendation to Kawerak.
* Communicate with the state. its weatherization
contractors and regional households before
weatherization projects occur to influence decisions
about how and what work is most appropriate to local
interests.
33
C. COMMUNITY FACILITIES/PUBLIC BUILDINGS
GOAL: PROVIDE FACILITIES WHICH MEET LOCAL NEEDS AT THE
LOWEST LIFE CYCLE COST TO THE COMMUNITY.
Background: Heating requirements for non-residential
buildings in the Bering Straits region, exclusive of Nome,
are approximately 740,210 gallons of fuel oil annually.
About 474,410 gallons, or 64 percent, is consumed in school
facilities and 265,800 gallons, or 36 percent, in public
buildings such as city offices, washeterias, clinics, city
garages, multi-purpose buildings and commercial enterprises.
The cost to the region's economy is difficult to ascertain
because fuel prices vary depending upon whether bulk fuel
storage is available to each facility or in a community and
whether wholesale fuel purchases are made. The Bering
Straits School District made fuel purchases in 1986 at $1.05
per gallon while retail costs have been as high as $2.23.
Assuming that many smaller facilities are subject to retail
costs for fuel, remarkable dollar savings can be anticipated
through improved efficiency and conservation techniques.
The energy efficiency of these facilities varies
considerably across the region. Variations result from
insulation levels, quality of construction, type of
mechanical heating and ventilation systems, and building
maintenance. In some of the older Public Health Service
washeterias, only 2x4 wall studs were employed in
construction. This limited insulation levels to R11 in the
wall. Ceiling insulation is often only R19 as is the floor.
More recent facilities tend to have 2x6 wall studs with R19
insulation and R30 in the roof and perhaps in the floor.
Due to the necessity of meeting wind shear stress,
auditoriums of BSSn schools are usually 2x10 stud design
with approximately R27 insulation. Floors and ceilings are
reported to be in the R30 range in newer construction. Wind
action has a significant impact upon infiltration rates, and
the demand placed upon heating systems. However, the use of
exterior 'skins' such as Tyvek have not been incorporated in
recent constuction. Except for the new Wales city
office/clinic/post office which incorporates an R60 geodesi'~
dome design, no other facility in the region approximates
superinsulation or ORCA standards.
Objeotive III.3: All new sohool and oommunity faoility
construction shall meet established standards recommended by
the State of Alaska.
Purpose: 1) To minimize operating expenses and future
dependencies on variable fuel costs through
building designs which incorporate life cycle
cost criteria, and
2) To increase comfort levels through superin-
sulated construction.
Rationale: As early as 1979, the Alaska legislature
recognized the need to establish building standards for new
construction to reduce operating costs in arctic conditions.
Alaska Statute AS 46.11.010 requires that all public
facilities of the state shall comply with standards
developed by DOT/PF. Unfortunately from a conservation
standpoint, this law is not applied to other facilities
funded by the state but granted to local entities such as
cities and schools. The net effect is that many projects
funded through legislative grants, Rural Development
Assistance and Community Block grants have insulation levels
far below those exPected in arctic regions. In many cases
buildings are approximately the design type found in
Seattle.
The design life of most buildings is 30 years and in real
terms much longer. Although oil prices at the well head are
the lowest in over ten years, wholesale fuel prices to the
region are still well over $1.00 per gallon. Assuming
current cost at $1. 25/gallon and the Alaska Power
Authority's fuel cost escalation rate of 3 percent per year
(real), a 3000 square foot community building using 2500
gallons of fuel oil annually will require $90,000 (1986
dollars) for its operating life. Reductions on the order of
50 percent are presently available where appropriate
construction and maintenance standards are in place.
35
Potential savings represent significant cash payments that
are presently circulated only once through local fuel
lighterage. Dollars not spent on an import commodity like
fuel could otherwise be spent and respent locally,
supporting local jobs and creating local multipliers (A.
Lovins, 1985).
POLICY RECOMMENDATIONS:
* Involve DOT/PF Division of Planning and Programming in
design review of school facilities and public buildings
for life cycle cost analyses.
* Require that architectural designs for small public
buildings meet or exceed the thermal standards
developed by DCRA.
•
Objective III.4: Prioritize school facilities acoording to
need and perform detailed energy audits to result in energy
retrofits.
Heating fuel costs for the Bering Straits School District in
1985 were in excess of $570,000. Most of the burden of
carrying these costs has fallen upon the state through an
allocation formula to meet the needs of rural school
districts. As oil revenues fluctuate, the burden of
operating costs will likelY become a local issue. Several
options for reducing operating overhead are available
currently or are near term options.
The Alaska Department of Community and Regional Affairs
Division of Community Development provides 50 percent
matching funds for technical assistance and implementation
of energy conservation measures. The Institutional
Conservation Program (ICP) is federally funded and has been
in existence since 1978. The Bering Straits School District
has not participated in the program and there is a general
misgiving that requirements are excessive. New procedures
have recently been implemented at the state level to
streamline application and delivery, and funds are usually
available to timely applicants. Involvement of the school
board and maintenance staff in developing a program to
implement ICP resources is recommended. A popular method of
implementing conservation at the individual building level
is to allow a percentage of savings to be retained by the
schools.
A second opportunity for reduced school costs is the use of
captured waste heat from local diesel power plants. The
Alaska Power Authority bond counsel has been seeking methods
for providing tax-free bonds for construction of cogene-
rating facilities. An agreement between the APA, the
utility and the BSSD would be required to initiate bond
sales. As it is presently envisioned, schools would receive
the heat at no charge but would be required to maintain the
secondary loop of a waste heat system, that is: that portion
between the generator heat exchanger and the school. In
larger communities such as Gambell and Saint Michael!
Stebbins (assuming an intertie), close to 100 percent of the
school's heat load could be met by waste heat recapture.
POLICY RECOMMENDATIONS:
* The Bering Straits School District should maintain a
management policy of annual involvement in the
Institutional Conservation Program as often as the
program can meet identified needs.
* The BSSD should pursue available means to incorporate
cogeneration as replacement for primary heating plants
where economically feasible.
IV. FUEL COSTS
GOAL: DELIVERY OF THE HIGHEST QUALITY OIL AT THE LOWEST
COMPETITIVE COST.
Background: Among the multitude of energy-related concerns
identified in this report, the issues of delivery and retail
mark-ups in fuel cost are common to almost every western
Alaska community. Taken as a whole, the regional demand for
fuel oil is still relatively small and its limited market
has not influenced competitive opportunities on either the
wholesale or retail levels. Table IV.1 indicates the total
estimated volumes of fuel oil used by the region.
TABLE IV.1
FUEL USE BY VOLUME
Fuel Consumption for
Electrical Cogeneration
1,980,000 gal.
1,7QO,000 gal.
3,680,000 gal.
Villages
Nome
TOTALS
Source: Holden & Associates, 1982
Fuel Consumption
for Heating ____ _
1,550,000 gal.
5,300,000 gal.
6,850,000 gal.
Fuel purchase and storage tends to be handled through
isolated transactions without benefit of cooperative buying.
Local buyers at the community level may include:
-AVEC, with utility tank farms in 9 of 14 cities
-BSSD, with storage in every village,
-City purchases for heating and utility fuel oil,
-Village corporation stores, private enterprises and
individual purchases.
As a consequence, suppliers have delivered fuel oil from a
single barge at a variety of in-the-tank costs. The
variation in school versus city purchase prices are an
example with BSSD paying $1.05 per gallon and the cities
$1.25 per gallon in 1986.
Retail costs in Nome stand at about $1.39 per gallon for
fuel oil bought wholesale at $1.08 per gallon, a 29 percent
markup. 1986 village prices demonstrate yet another range:
Unalakleet wholesale prices were approximately $1.19 per
gallon; retail price was $2.05 for a 72 percent markup.
37
38
Koyuk received fuel at about $1.24 per gallon; retail was
$1.75 for a 41 percent markup. Closer examination of the
changes in wholesale, delivered and retail costs over the
past three years are illustrated below. While wholesale
cost (FOB Seattle) has decreased 55 percent from $.88 to
$.40 per gallon, delivered village costs have decreased only
28 percent and village retail costs have shown only 8%
average reduction (Table IV.2).
TABLE IV.2
COMPARATIVE FUEL COSTS 1983 VS. 1986
1983 1986
$/gal. % markup $/gal. % markup
Refinery .88 .40 *
Dutch Harbor .97 7 .82 105
(wholesale)
Nome 1. 41 33 1. 08 32
(wholesale)
Villages 1. 72 24 1. 24 15
(wholesale)
Retail 2.20 36 2.02 63
Source: House Research Agency
* Estimate. Not verified by vendors
A House Research Agency report entitled Rural Energy: An
Qyeryiew of Programs and Policy makes the point that the
base cost of energy in rural Alaska is only part of the
problem. "The cost of distributing energy and of operating
and maintaining energy supply systems; the costs of
reserving sufficient capital to cover eventual replacement
of production facilities; and administrative costs are every
bi t as important as the cost of producing the energy".
While it is true that certain high fixed costs will always
exist in remote regions of the state, an estimation of
numerous variable costs is warranted. Bulk fuel purchases
and storage have only recently been introduced region-wide
and appear to offer an example of strengthened markets
through cooperation. The relative absence of competition in
fuel delivery has become common knowledge throughout western
coastal Alaska. The current lack of competition would appear
to require even larger regional cooperation to effectively
consolidate a market which would attract competitive
delivery proposals.
Objeotive IV.1: To organise 1987 fuel purchase plans to
ensure cooperative buying.
Purpose: To reduce local cost of fuel.
39
Rationale: Bulk fuel purchasing already occurs among a
limited number of villages through the Alaska Native
Industries Cooperative Association (ANICA). About half of
the region's villages participated in the 1986 cooperative
purchase through their IRA stores, and prices were $1.08 for
landed gasoline ($.17 tax included). Their figures represent
savings of $.16 for oil and $.17 for gasoline over costs
reported by other independent purchasers. ANICA has full
time staff in Seattle to organize, buy and ship fuel. The
ANICA fuel coordinator, Ron Corley, has indicated an
interest in expanding the scope of service to further
improve economies. Coordination with BIA and use of
government-owned barge service has proven effective in the
past, although they also seek competitive bids from Crowley
and Northline Marine. ANICA contends that savings are more
likely in competitive fuel buying than in freight.
Participation in ANICA's bulk fuel program requires a
deposit equivalent to one annual inventory. Purchase terms
vary between cash payment and credit with terms. Insurance
costs for fuel and storage tanks is covered by ANICA for
participants in their program.
A second source of cooperative buying exists through the
Bering Straits School District. Their bulk rate was $1.05
delivered in 1986. Delivery occurs in every village in the
region to serve the schools. Some benefits such as credit
purchases are not available. Prepaid purchases would likely
be required, usually resulting in one to two percent
discounts in price.
POLICY RECOMMENDATIONS:
* Coordinate cooperative fuel purchases well in advance
of ordering deadlines.
* As much as possible, make purchases on a prepaid cash
basis to obtain discounts and avoid credit interest
rates.
Objective IV.2: To report on fuel purchasing and delivery
options to develop sources of competitively priced fuels.
1) To effectively communicate with other western
Alaskan communities dependent on a single fuel
supply option.
2) To present a more attractive market to
potential fuel wholesalers and shippers.
Rationale: The Bering Straits region is not unique in its
dependence on the consortium of Pacific Pioneer and Crowley
Maritime which provides, exclusively, fuel buying and
transport. All western Alaska has been affected by the
absence of com-petition for a number of years. Northwest
Alaska is affected to a larger extent by shipping distance
which accounts for an average price increase of $.24 to $.48
per gallon from Dutch Harbor.
Although the current suppliers do constitute a monopoly, the
State of Alaska Attorney General has discovered no evidence
that it has restricted trade. However, while wholesale
prices for fuel have come down about 50 percent since 1983,
the delivered price of fuel to the region has declined about
23 percent. Profits notwithstanding, marginal rate in-
creases may be due to numerous overhead costs and an element
of risk in marketing. Sales volumes must be accurately
assessed well in advance of actual sales. A certain degree
of speculation is then involved in the number and volume of
barge leases. Sources in the business stress that the match
of sales to volumes delivered is risky and cause of much
uncertainty in calculating profit margins.
Village deliveries are lightered directly from the larger
barges to eliminate intermediary storage costs. Lighterage
costs in Nome will be greatly reduced with the port develop-
ment and the ability to offload fuel by pipeline to local
storage. In Nome, Arctic Lighterage has its own tank farm
and a lease from the Army Corps of Engineers on a second
tank farm. They operate in concert with Pacific Pioneer and
Crowley in wholesale fuel supply.
Future control of fuel storage should be a priority worthy
of examination by the proposed Port Authority. The primary
benefit of city control of storage for utility fuel needs
would be in the opportunity to independently seek supplies
from outside of the current consortium.
Notwithstanding the fuel options that are available to re-
duce marginal delivery costs, rural Alaska will likely con-
tinue to depend upon fuel oil as its primary energy source
for the next decade. High transportation costs may also be
an unavoidable fact. The House Research Agency report
quoted earlier continues to state another facet of that
reality: "The real challenge facing rural Alaskans is not
that of finding cheap energy alternatives, but of finding
opportunities to supplement cash income sufficiently to
maintain accustomed living standards ... (sic)". Although
fuel cost delivery options deserve examination, economic
development must at least keep pace with cost. If not, the
examination of alternatives must then change to meet a more
appropriate definition of the problem; namely, to make
larger strides in conserving fuel and/or increasing
efficiencies in its use.
POLICY RECOMMENDATIONS:
* Involvement of the Bering Straits communities, particu-
larly Nome, in organizational efforts to exPlore
alternative fuel delivery proposals.
* ExPlore the feasibility of government-controlled fuel
storage in Nome administered by the proposed Port
Authority.
41
V, ALTERNATE ENERGY SOURCES AND TECHNOLOGIES
Spurred initially by the 1973 oil embargo, but fueled later
by increased desire to match energy source and technology to
energy demand, interest in alternate energy sources and
technologies has grown in the past decade, It is important
that Alaskans at all levels of the decision-making process
stay aware of the growing diversity of energy options
available to meet site specific conditions in different
regions and communities. Many new technologies are being
developed, perhaps replacing or complementing currently used
fossil fuels.
The State of Alaska has spent many millions of dollars in
past years to inventory and evaluate many of these alternate
energy sources and technologies. In preparing this section
of the report, we reviewed the information presented by the
State and its consultants in order to make recommen-dations
specific to the Bering Straits region. Perhaps the most
important lesson to be learned from this work is that no one
energy source or technology is the one answer to a region's
diverse energy needs. In the following review, each
technology is addressed separately, but it becomes clear and
should not be forgotten that a carefully balanced mix of two
or more of these technologies, (i.e., geothermal with the
organic rankine cycle engine, or wind with diesel, or
conservation and passive solar with diesel heat) may be the
most flexible and least costly alternative in the long
and/or short term for a community or region.
A. COAL
Recent investigation of the potential for coal development
in the northwest arctic region is encouraging. Studies have
con-centrated on the Cape Beaufort area and the Deadfall
Syncline area where a combined total of potential re-
sources is estimated to be 84 million tons, or a 420 year
supply for the region based on mining of 200,000 tons per
year.
Arctic Slope Consulting Engineers (1984) suggest that coal
from these project areas could displace over 50 million
gallons of fuel oil currently used for space heating by the
year 2008. This would result in substantial cost savings to
every community in the region, even if the coal deposits
were not fully developed.
Additional study of the Western Arctic Coal Development
Project is currently being completed. This work should be
reviewed carefully by the region, particularly with respect
to the issues of fuel delivery, fuel storage and replacement
of existing space heating equipment as disussed earlier in
this report.
-
POLICY RECOMMENDATION:
* Coal development in northwest Alaska has potential as a
primary space heating fuel and should be evaluated as
mining/transportation options are commercially
explored.
B. CONSERVATION
In recent years, concerns and recommendations dealing with
increased energy efficiency and reduced energy costs have
addressed the demand side of the issue, that is, if less
energy is needed, then new technologies and installa-tions
may not be necessary, thus saving overall energy costs.
As discussed earlier in this report, there have been and
currently are several programs and mechanisms to effect
energy conservation in space heating to reduce this demand.
The major emphasis of these programs is improved building
techniques and higher insulation levels as a means of reduc-
ing the heat load of a given building. Other measures such
as the use of a fuel oil monitor heater with a high effi-
ciency heat exchanger and a blower motor can increase
burning efficiencies to 85-95 percent compared with the pot
boiler efficiency of 50 percent. With this improved burner,
a house that now uses 20 barrels of oil per winter would
instead burn 14.5 barrels.
44
Less known, but equally appropriate, are recent technical
improvements in lighting and appliances that decrease elec-
trical demand significantly. For example, refrigerators and
freezers are estimated to consume 50 percent of the total
monthly electrical load, or approximately 135 kwh per month
in an average AVEC village. Currently available on the
market is a refrigerator which uses only 10 percent of the
electricity of the leading low-energy use refrigerator.
Replacement of an existing unit with this new energy-
efficient appliance could save 121 kwh or $196 per year at
an assumed $.135/kwh cost of power.
Similarly, fluorescent lighting fixtures which use only a
fraction of the power of standard incandescent bulbs are
commercially available. The original cost of these bulbs is
high ($7-$34) but payback periods of two years could be
realized at rural power rates. Relamping of an entire
village could increase the available capacity of some diesel
systems and avoid expensive replacement to satisfy peak
power requirements.
J
j
t
•
POLICY RECOMMENDATIONS:
* Participate in available state and federal housing
programs to decrease space heating loads through
increased building thermal efficiency (see Section
III).
* Use state-of-the-art energy efficient appliances,
particularly refrigerators, freezers and lights, when
replacing old models.
C. FUEL CELLS
The fuel cell is a continuouslY fueled battery which con-
verts chemical energy directly into direct current (DC) ele-
ctricity through a catalyzed chemical reaction. Energy is
generated continuouslY until the fuel and oxidant supply is
stopped. Unlike thermal combustion processes which are lim-
ited in efficiency by the Carnot cycle, fuel cells have a
high overall electrical system efficiency (40%) which is not
dependent upon load. With use of the waste heat from the
chemical process, efficiencies as high as 80% can be
reached.
Fuel cells can be constructed in almost any size without
significant variation in performance. An additional feature
of fuel cells which would be desireable in rural Alaska is
that the modular nature of the installation allows easy
upgrading of capacity as demand increases.
In April, 1983 the Alaska Department of Transportation and
Public Facilities (DOT/PF) completed an analysis of the
potential for fuel cell power plants in rural Alaska,
concentrating on the state-of-the-art methanol-fueled phos-
phoric acid fuel cell (PAFC). After addressing the safety,
operation, reliability, maintenance and cost aspects of the
PAFC, DOT/PF concluded that the fuel cell industry was not
sufficiently mature to capitalize on the inherent advantages
of the technology over diesel-electric systems for rural
power applications. Primary disadvantages are:
45
1. A logical control system or microprocessor is necessary
to monitor stack temperature, cell inversion on start-up,
and reformer output under varying loads.
2. Highly skilled labor is needed for annual stack
maintenance. Routine maintenance could be accomplished with
low skill labor.
3. The investment cost is slightly more than double that
of an equivalently sized diesel plant.
4. Assuming diesel fuel costs $2. 14/gal and methanol costs
$1.47/gal delivered to a village, the PAFC would produce
electricity 14% more exPensively than diesel at 100%
capacity and 15% cheaper than diesel at 30% capacity.
Fuel cells are a clean, quiet and highly efficient alterna-
tive to diesel power generation with flexibility in design
that would suggest successful application for use in rural
Alaska. With additional development and maturation in the
industry, fuel cells could become a viable source of power
either as a replacement or as a complement to diesel
generation.
POLICY RECOMMENDATION:
* As fuel cell technology becomes commercially available,
its use in rural communities may become prevalent. No
recommendation at this time.
D. GEOTHERMAL ENEBGY
Geothermal heat has been studied for Alaska and the Seward
Peninsula in particular in the past several years. It can
provide thermal or electrical power when adequate
temperatures are available. In order for a geothermal
source to be viable for development, it must provide the
following:
1. A relatively shallow heat source so that drilling and
extraction costs are not excessive.
2. A fluid to act as the heat transfer medium.
3. Reservoir conditions capable of delivering adequate
fluid to the surface.
4. A nearby market for the energy produced so transporta-
tion heat losses are minimized.
Eight thermal springs are known to exist in the Bering
Straits region, with current use primarily bathing and
recreation by local residents and an infrequent tourist.
46
Surface temperatures at these sites are from 17 to 88
degrees Celcius (C) with estimated reservoir temperatures of
63-161 degrees C. At Pilgrim Hot Springs, the most studied
of these identified sites, six wells ranging from 60 to 1000
feet were drilled from 1979 to 1982, penetrating a shallow
reservoir with temperatures ranging from 90-146 degrees C.
In 1982, Economides (1982) suggested that these six wells
could produce over 300 gallons of 90 degree C water per
minute and that the flow could be greatly increased with
pumping.
Technology for electrical production from sites w'ith water
temperatures below 150 degrees Celsius is still in the
developmental stage. Hydrogeothermal energy at these low
temperatures is best used for process heat and space heat
applications. The studies at Pilgrim Springs and elsewhere
in the Seward Peninsula suggest a geological rift system
that bodes well for geothermal development of these lower
temperature resources. Alaska law treats all geothermal
resources below 120 degrees C as water resources, thereby
supporting lo.w and/or fixed fuel costs for the energy.
Development costs tend to be high due to the typical
remoteness and lack of transportation to geothermal sites
and because development time is five or more years.
POLICY RECOMMENDATION:
* Consider known thermal spring sites as locations for
economic development where heat applications are
desired.
E. RiA T PUMPS
47
A heat pump is a device that extracts heat from a relatively
cool area, delivering it to a warm area through a phase
change medium. The efficiency of a heat pump varies signif-
icantly with the outdoor temperature. The heat pump capacity
is usually not adequate to meet the heating demand below a
"balance point" of 25-35 degrees Farenheit. At this point,
auxiliary heat must be supplied also. As a result of this,
heat pumps are often sized with a capacity much larger than
demand. The initial installation cost of a heat pump system
can also be 15-30 percent higher than the installation cost
of a conventional heating system.
POLICY RECOMMENDATION:
* Heat pumps are not a currently recommended energy al-
ternative for the region.
F. PEAT
It has been estimated that there are 27 million acres of
potentially fuel grade peat in Alaska. No detailed
inventory of peat deposit depth or quality has been compiled
for the Bering Straits region. The potential of peat as an
alternative source of energy for space heating and/or
electrical generation in the region is considered to be very
low for several reasons: 1) Raw peat is bulky and heavy,
leading to high transportation costs; 2) The region's high
rainfall and lack of solar energy for drying would require
costly means of mechanical drying before burning; and 3)
Fuel grade peat is an unknown resource due to the lack of
inventory in the region.
POLICY RECOMMENDATION:
* Do not pursue peat development as an energy source at
this time.
G. SMALL HYDROPOWER SYSTEMS
In December, 1979, the U.S. Department of Energy, Alaska
Power Administration, published a report entitled "Small
Hydroelectric Inventory of Villages Served by Alaska Village
Electric Cooperative". Included in the report are discus-
sions of hydroelectric potential for Elim, Wales, Koyuk,
Shaktoolik and Shishmaref. Elim was the only Bering Straits
community offering development possibilities.
In May, 1981, the U.S. Corps of Engineers published a subse-
quent reconnaissance level report that included sites in
Brevig Mission/Teller, Elim, White Mountain, Golovin, Nome
and Wales. All of the sites had benefit to cost ratios
below 1.0; that is, there was no annual net gain to offset
the high capital costs associated with hydroelectric
projects. The primary failings of most of the Bering
Straits sites include:
48
1. A poor match between the potential output of a hydro-
electric facility and the electric demand in the communi-
ties. Due to weather conditions and stream flow, the
highest demand months and periods of highest potential power
are inversely related. Diesel generation would continue to
be necessary in mid-winter months.
2. Potential sites would require expensive tie lines to
carry electrical energy to the communities.
3. Permafrost conditions throughout the region place
extreme design requirements on water impoundment and power
houses, thus increasing cost.
Subsequent, more detailed analysis was performed in Nome and
Elim by the Corps of Engineers and the Alaska Power Autho-
rity. The Nome River, Sulphur Creek and David Creek were
studied individually and in a combined plan. The generation
capacity of the combined sites would be 840 kw; total energy
production would be 3.4 million kWH per year. Available
power would exist for only 6 to 7 months, however. On
September 27, 1984 a Notice of Completion of Negative
Feasibility was filed with a recommendation that no further
study be continued at this time.
The Alaska Power Authority completed its analysis of the
Elim site in the spring of 1986 and recently filed a
findings and recommendation with its Board of Directors.
Hydroelectric development at Elim was determined to be
economically infeasibl and no further study was recommended.
POLICY RECOMMENDATION:
* No further study of microhydro is recommended at this
time. Micro-hydro development projects may be
warranted for independent power needs but would only be
available in summer months.
H. SOLAR ENERGY
Solar energy is used for both electricity production and for
space heating. The direct conversion of solar energy into
electrical energy is by means of a solar. or photovoltaic
(PV) cell. usually arranged in a cluster called a solar
array. The high latitude and frequently cloudy conditions
in the Bering Straits region. in addition to seasonal
periodicity of sunlight, would require a large capacity of
expensive battery storage to back-up the solar array in
order to provide continuous or reliable power. This contri-
butes to a very high capital cost for PV, with a present
solar cell cost of about $10 per watt plus necessary inver-
ters. electrical distribution system. support system and
storage.
A more practical use of solar energy in the Bering Straits
region is for space heating. Passive heating systems
operate without mechanical devices and take advantage of
sun, reflective surfaces and the principle of convection
where less dense warm air tends to rise while more dense,
cooler air moves downward. In contrast, active solar
heating systems need an auxiliary energy source, usually
electrical, to operate pumps and fans to circulate air and
often a separate heat-absorbing fluid.
The high cost of installing and operating an active solar
heating system which could carry the total annual heating
load of a Bering Straits house i~ prohibitive due to the
large energy storage system needed and the specialized
superinsulated construction required. Instead, residents
should concentrate on the benefits of passive solar heating
in all building construction. Building siting. orientation,
shape and relationship to other buildings and natural
features are all cost-free factors involved in successful
utilization of existing. free thermal energy.
Considerations such as the size and orientation of windows
and doors and the layout of interior space to enhance
capture and storage of solar heat can contribute to making
solar energy an important secondary source of thermal heat.
POLICY RECOMMENDATION:
* Incorporate passive solar principles into all siting
and design of buildings.
I. WIND/DIESEL SYSTEMS
Among the alternate energy technologies, wind turbine
generators (WTG's) are probably the most advanced in
commercial development. Theoretically, their introduction
into diesel-based power systems ought to be economically
attractive. However, installations in Alaska, Canada and
other remote arctic sites have neither demonstrated
economic feasibility nor adequately resolved technical
concerns for integration of the two systems to produce
reliable power.
Problems arise from the limitations in maintaining system
frequency. Power fluctuations occur because the output of a
WTG whose capacity typically exceeds 100 kw varies even for
the best available equipment. A paper presented at a 1985
wind/diesel symposium states the problem clearly: "The
integration of wind and diesel units into an economical
resource mix for small isolated power systems is difficult
because the resource with the uncontrolled energy supply
(wind) must be used as much as possible and the resource
with the controlled energy supply (diesel fuel) as little as
possible. Significant economic benefits are unlikely unless
the diesel contribution is eliminated or at least partially
reduced during periods of high winds"(Hinrichsen, 1985).
Standby operation of diesel generators increases fuel
consumption and reduces engine life. Complete shutdown is
impractical because a decrease in wind speeds would lead to
frequency decay and system collapse.
50
Wind power turbines are a success in California because the
power output of the WTG's is only a fraction of the load
handled by a complex electrical grid. In Alaskan villages
almost the opposite situation exists: the capacity of the
best available wind equipment actually exceeds the average
energy demand, thereby threatening the synchronous operation
of the diesel generator.
These problems are recognized as legitimate concerns for a
utility. AVEC tariff provisions specifically limit the size
of a wind turbine generator to 5 percent of the installed
capacity of the largest operating diesel unit. Local
examples of partial success do exist as in Wales, where two
2.5 KW machines are metered in the washeteria, providing 100
percent system load at various times. This comes at a
price, however, as one of the machines suffered a
catastrophic failure when it snapped off the tower due to a
brake failure. Wales' perserverance at maintaining the
equipment, as well as the fact that machinery was donated
and still represents an experiment, is a tribute to their
strong local interest. No economic incentive has been
generated in other communities subject to state-supported
projects including Unalakleet (30 kw installed), Teller (2.5
kw), and Shishmaref (5 kw).'
Very good commercially available WTG's exist for the
isolated homesteads seeking a small power source (less than
10 kw) and battery storage (Marier, 1981). These systems
have been integrated with photovoltaic collectors and other
means to ensure year-round electrical energy.
POLICY RECOMMENDATIONS:
* Until WTG technology and economics improve for rural
markets, village scale wind/diesel systems are not
recommended.
* Small WTG's for isolated, independent homesteads are
technically feasible and may be an option provided
suitable wind speeds exist. Anemometry studies are
recommended.
J. WOOD
Wood is currently gathered and used for residential space
heating in many of the Bering Strait villages. Residents of
White Mountain and Elim are able to cut wood from around
their villages; other vilages, particularly those on
westward-facing exposed shores, are able to collect
driftwood originating in the Yukon River system. A
calculation of the thermal energy provided by this wood
resource has not been made as such a figure would entail a
house by house village inventory of usage. It appears that
the present supply is adequate for current uses, and that
driftwood can appropriately be called a renewable resource
for energy purposes. The burning of this wood, however,
creates greater wear on stoves and stovepipes than usual
because of the higher temperatures achieved and the
corrosive action of salts.
POLICY RECOMMENDATION:
* Continue current use of wood for residential space
heating as displacement for oil and other non-renewable
energy sources. Consider wood inappropriate for
electrical generation in the region.
Paula Anderson
Eugene Asiksik
Norm Bair
Fred. Bradley
Loretta Bullard
Ron Corley
Jim Dore
Peter Hansen
Dan Harrelson
Bob Hix
Susan Holtzen
Don Jackson
Phil Kaluza
Lyle Larson
John Lyons
Sue Miller
Charles Nelson
Steven Olanna
Isaac Oxereok
Eileen Rehwald
Dan Richard
Mike Rohn
Don Smith
Peter Sokolov
Arnold Takak
Doug Walling
Bob Walsh
Jeff Weltzin
Alan Yost
REFERENCES
Alaska Village Electric Cooperative
Mayor, Shaktoolik
DCRA, Anchorage
Elim, Regional Strategy Executive
Committee Member
Kawerak, Inc.
ANICA Fuel Coordinator
Architect
Alaska Power Authority
Bering Straits Housing Authority
Attorney, City of Nome
Attorney, HUD
AVEC delegate, Shaktoolik
Arctic Energy Systems, Nome
City Manager, Nome
Alaska Village Electric Cooperative
Department of Education, Juneau
Kawerak, Inc.
Mayor, Brevig Mission
AVEC operator, Wales
DHSS Energy Assistance Program
City Manager, Wales
Bering Straits School District
DCRA, Nome
Alaska Public Utilities Commission
AVEC operator, Shaktoolik
Pacific Pioneer, Anchorage
DCRA, Nome
Tanana Chiefs Conference
Rural Electrification Administa-
tion, Anchorage
52
LITERATURE CITED
Acres American, 1982, ReQonnaissanQ~§tu~_Qf_En§~g~
Reguirements and A~ernAtive§. Alaska Power Authority.
Alaska Department of Commerce amd Economic Development. 1985
and 1986. Alaska's Ene~Pl~n.
Alaska Department of Community and Regional Affairs, Office
of Energy Programs. 1986. En~~~n§~~~tiQn StAn~~g§
fo~~~-ResideDtial Buildings.
Alaska Department of Transportation and Public Facilities.
1983. Fuel Cel~~§~-Elgnts in Ru~~~l~§kA. AK DOT/PF
Report No. AK-RD-84-02.
Alaska Department of Transportation and Public Facilities.
1983. Thermal Standargs for Small-Rural ScQQols. Report
No. AK-RD-83-04.
Alaska Power Authority. 1985. 61aska_El~Qtric Power
Statistics. Tenth Edition.
Alaska Village Electric Cooperative Inc. 1983. ~Y=La~s.
Arctic Slope Consulting Engineers, 1984. Westeru-ArQti~
CQ~1-Q~elopment Pro~. Alaska Native Foundation.
Bargava, Raj and Associates, 1984. R!,u:al Energy
Construction Progra~~84-8Q. Alaska Power Authority.
Davis, Neil, 1984. EnergY/Al~. University of Alaska
Press.
Economides, M.J., 1982. AD-EYalY~tiQD-Qi-the Drilling_gng
Reservoir Engineerin~§i§_gon~at Pi~m~Q~_§E~ing~~
Alaska_iil~~~~of 1982. Final report submitted to AK
DEPD by University of Alaska.
Glasstone, S., U.S. Department of Energy, June, 1982.
Ene~Desk~QQk. U.S. Department of Commerce National
Technical Information Service.
Hinrichsen, Eric H. June, 1985. System l§su§~i~~m~ll
eQ~~~st~~with ~~~~~~Q~~ce~. Power
Technologies, Inc.
Holden & Associates, 1982. ~ring Strait~Ener~fl~nning,
3 vol. for Bering Straits School District.
House Research Agency, January, 1982. Pot~n~l_!Q~QQ~l
Coal Use in Rural Alaska. House Research Agency Report 81-
2. Alaska State Legislature.
53
House Research Agency, February, 1985. RM~~l~n~~~_an
Qverview o~Program~~gg Policy. House Research Agency
Report 85-C. Alaska State Legislature.
Lovins, Amory, 1985. Negawatts: A Practical Remed~_fo~
Megawatts. Address to National Association of Regulatory
Utility Commissioners.
Marier, Donald, 1981. Wind Power for the Homeowner. Rodale
Press, Emmaus, PA.
Stefano and Associates, Inc. 1984. Euel Q~l1_Asse~§m~n~.
Appendix C-2 Draft Bethel Area Power Plan Feasibility
Assessment. Prepared for Harza Eng. Co. and the Alaska
Power Authority.
U.S. Army Corps of Engineers, 1972. M~thw~st_Ala§kg
EQQ~c and TransPQrtation PrQspects. ISER, University of
Alaska.
U.S. Army Corps of Engineers, Septemeber 22, 1984. No~iQ~
~QQmpletion of Negativ~~§ibility, memorandum.
54
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