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Meeting Summary
City of Unalaska/Major Processors
Radisson Hotel -September 29,1995
On Friday,September 29,representatives from the City of Unalaska and the major fish
processors on the island met at the Radisson Hotel in Seattle,Washington.The meetingstartedat3:00 p.m,and was held for several purposes which included:
1.To determine under what conditions the processors would be willing toparticipateinpowersupplyoptionsavailabletotheCity.
2,To determine whether or not the processors would be willing to contributefundingfortherequiredstudies,
3.To make available to the processors certain information relating to the City's
PSD permit application,
Attending the meeting were the following people:
City of Unalaska -David Denig-Chakroff
R,W.Beck -Mike Hubbard
Steigers Corporation -Bill Steigers
UniSeg -Terry Schaff,John Lani
Alyeska Seafoods -Winn Brindle (via phone)
Westward Seafoods -Greg Baker (arrived late)
Stephanie Madsen -Aleutian Seafood Processors Association
After introductions,Mike Hubbard gave a brief summary of the geothermal report
performed in February 1995,Mike explained that three generating options were
investigated in detail:1.)status quo,2.)low-speed diesels,and 3,)the geothermal project.
Other generating options,such as hydro/diesel combinations and others,were not
investigated in sufficient detall to either rule them out or consider them viable alternatives.
Further,the analysis assumed that diesel gencration from existing resources would be
limited,Obtaining PSD permits would invalidate this assumption.
The analysis showed that of the options investigated,the geothermal project and the low-
speed diesel options were fairly close and the least-cost alternative was more sensitive to
fuel prices than load growth,The results are based on the assumption that all self-
generators would participate,and should this not be a valid assumption,the best
alternative to the City may be some other resource,
Dave Denig-Chakroff then gave a status report on the City's PSD permit application.
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Integrated operations were then discussed in 8 general manner.Mike explained that therequiredagreementsarecommonintheutilityindustry,although more so among separate
utilities than among various private companies,One concept briefly explored was that of
the City purchasing all of the installed capacity on the island and being the island's sole
provider of power.This was not rejected out-of-hand by the processors.
The conditions under which the processors would be interested in participating with the
City in power supply were then discussed.Four major points were advanced by the
processors.
1,Ifa particular power supply option required that their diesels remain in place,
they would be willing only to pay around their varlable cost.
2.If the processors'diesels could be shut down (i.¢.,removed and sold or used
in other company operations),they would be willing to pay something greater
than variable cost.
3.Any savings provided by a resource option must be offset in part by the
incremental cost of increased boiler activity due to reduced waste heat.
4,Reliability is of major concern to the processors.
Accordingly,since the present concept for the Makushin geothermal project requires the
processors'diesels to remain in place,power delivered at 10.5 cents/kilowatt-hour
(1992S)plus a mark-up is not of interest to them.
It was decided that the City would continue with its investigations of power supply
options under two separate scenarios:with and without processor participation,The
processors would be kept appraised of the study as it progresses;and should they want
particular options investigated in the future,they would then decide whether or not to
financially participate in the study.
Bill Steigers then discussed the computer modeling being performed for the City's PSD
permit application.He informed the processors that the City now has air quality data thatcouldbeusedinanalternativemodelwhichwouldimprovetheprocessors'PSD status
and would likely eliminate the need for expensive scubber systems,Both DEC and EPA
will accept the alternative modeling.Dave and Bill proposed that the City and processors
cooperate by sharing information,The City is willing to provide the processors with thenewairqualitydatainexchangeforinformationtheprocessorshavethatwouldassisttheCity's PSD efforts,
It was decided that the City would send the processors a letter describing the informationtheyrequiredandaspecificproposaloncostsharingforfurtherenvironmentalstudies.
The meeting broke around 5:00 p.m.
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