HomeMy WebLinkAboutElfin Cove Utility Commission Electric Utility Upgrade Project July 15, 2006 DraftBusiness Operating Plan of the
Elfin Cove Utility Commission
Electric Utility Upgrade Project
JULY 15,2006
DRAFT
|Elfin Cove Utility Commission
P.O.Box 2
Elfin Cove,AK 99825
Phone:(907)239-2226
Fax:(907)239-2226
TABLE OF CONTENTS
I.EXECUTIVE SUMMARY .....cccccccccssssccccecssssssssssssssnessnussusnsvsssssccnssccccsccccsscsssscssccccsssscssccccesssssssseseasacensene 2
Il.BACKGROUND ccsccsccsscscccccscccccccccccccccccssssseesssscceesssssesssessccseseessesensnecsecccccecenccccnsccccssccscessesssesceccssseseeses 3
Selected Statistics -Elfin Cove ..c.sccsssssssssssssssssssssccceessscsesssssessessesesesscssscsessesssnssssssssssssseeveussusssssasssssesesssavesensessensos 3
TIL.FACILITY UPGRADE .........cssssscccesssenccnssscesssssaccecsseeecesssccecesnseteesenceeceescccesessnecessacecsnssecesseauaeassscaesanee 4
Electric Utility Upgrade Description .....ssssessseessesssesssessesssesssessnssssesssssnsssscsssessusssnessssssecsorsssressessesssissnsacaensecneesess 4
Project Exclusions ......ccccssssssssssesessssssessesssessessnssusssesssssaesssssusssessessssssessessucssecaneeneenssasesusessessecuecusensesseeaeequssueavenseeseesess 4
Electric Power Generation Facility Capactty...csccsessssssseceessssssssssesssessessnessssnsssssssssssessssssnsssessnasussscsaversesseceaeenes 4
Site Plan and Project Layout.....ssscssssssesseesseessessssesseessessnsessesseessessseessessssesseenseessecssstsseessessesssssrsseeanensacssssessscssesenessnes 4
TV.PRIMARY OPERATOR ....sccccccccssssssssssesseetecceccccccssccssscecccccccccccessecesssecccecesecessssseseesccccecenensssssssccceseseancas 7
Contact Information ....cccscccssssesssssssscsessscssesssssessssssssssuscsesasscassessessassessessssesssaesessessasseseassssssueseseseaesceaeasasstsaqeaeacseaseeee 7
Turnover and Assumption of Responsibilities /Sustainability......ce cscessesseesssesseessssssenseecsessneesneecueecneenneesneees 7
Staffing and Training.....sescsssesesesssssessseeesessesssnssissssssssssssscessesssnssnsississssssssssssssseessuscusceseesssssssssanssesaneassassseaseds 7
Financial Responsibilities ......csccssssssssesssssessessnesssessssssssesseceseeseesessncanecseessseseesscsseesessesssssseeanesnesseessessesseseneeseessssessssenss 8
Operations and Maintenance Guidelines......scscsessesssesssssesreessesssssssssessesssesesssssasssesssssessnsesssssessssssssnsenessssseseassenss 9
Renewal and Replacement Guidelines ......sessssesssesseereesseeneessessssssssssaneeseesessscssssesssecsseqnecscssessseessesnseneenecsseeseensensees 9
V.REGULATORY REQUIREMENTS visscccssssssssscsssssscsssssssssssscsscssscssccsssesacsusescssccsscssnsassacsnsesssccsssesanssseeoses 10
VI.FINANCIAL INFORMATION ......cccccssssssccccsssecceensnsceccnsnscecccenscccnssssnsesesensstensanssssecasenseccesanssessossnenesesaaes 11
Key Financial Assumptions .....sccessssssssssssssssssssesseeneessssssserssssssssassassareneenessssnssnessensesvessenesnecnessessseneeneaneassseseensenessees 11
Key Operating Assumptions .....ssecsssssesssesssssssesneesssessssssesssessssssseasscssesssesasecenscasecssccasessuessucessessccssessesssesssecesesaneessess 11
Explanation of Financial Terms ......cssssssssesssecsseeseecssesssessecssscsnesssessscsssscssessscssscssscesscessensseanecsssesasenacssnecasseeseensensaees 11
Subsequent Operating Year Revisions .....sssscsssssssecssesseesserssesssesassssseessesssssssssssesssecsseesseassessessseceseessussseessecessseaesnsees 12
TABLES
Table A:40 Year Estimated Utility Net Income and Cash flow.....csccsssesseeeessssssssesesneenserseensessesseenmesnesneensens 13
Table B:Power Generation and Consumption Summary ...esesssscseesseressssseeeessersensennenesseeneeneeaseneeaeeneenees 14
Table C:Annual O&M Schedule ......ccsccsessssssssssssssescssessssscsesssecscssseaesesceseessnsesseseceacacseesesesssesesceascedcaanesssseeseeseatees 15
Table D:40 Year O&M Schedule.....cccccccsceccssssssssssessessssescsscscsscsssssseesssessssesscssssssessesescessscesesevseserasaeeassseesessenensenss 16
Table E:Annual Fuel Costs ..cccccccccssssssssssssesssecssssssnsessececcessssssceesseacasaeceenessesensoesceasasasseseasaasassesoseasseseseenessesenseess 17
Table F:Annual G&A and Depreciation Expenses .....c.scsscssecssssssesnessessneesnecsnecsneeseenssenmesneeaeerarenneeeneecanersseey 18
Table G:40 Year R&R Schedule ......cccsssesesssssssscscsesssescsesesesssesesesesssecesesesessesesseceesesseesesesesesssessaeacaeaeeeecensereeeeeesesens 19
Table H:40 Year Renewal and Replacement Cash flow.......ccsessessssssesesssessneesneeseesnerneennverneceneeeaneensenarecnrennseey 20
APPENDIX A:PRIMARY OPERATOR STATEMENT OF QUALIFICATION ......cccscssssssocsnsnsncccccnccceressrsesensnseess 21
APPENDIX B:O&M AND R&R COsT ESTIMATE
ADDITIONAL RELATED AND ATTACHED DOCUMENTS
1.SITE CONTROL DOCUMENTS
2.GRANT AGREEMENT
SEE BACK
COVER FOR
CD VERSION
OF THIS
PLAN.
Elfin Cove Utility Commission
Electric Utility Upgrade Business Operating Plan
Page 1 of 21
I.EXECUTIVE SUMMARY
This Business Operating Plan (the "Plan”)provides a guideline for the Elfin Cove Utility
Commission (the "Utility”)maintenance,operation and sustainability of Elfin Cove Utility
Commission's Utility Upgrade (the "Facility”).
The Utlity will be responsible to operate and sustain the newly installed Facility and associated
electric power generation equipment.This Plan has been developed to assist the Elfin Cove Utility
Commission with that effort and estimates the minimum resources required to sustain the Facility;
however,this Plan does not include discretionary expenses that may be incurred by the Primary
Operator,which are not required for the primary function of electric power generation and
distribution.For the new Facility,the Plan includes minimum estimates of operation and
maintenance needs and costs,renewal and replacement needs and costs,a per kilowatt hour (kWh)
surcharge for residential and commercial users,and total electrical costs.For the utility,Table A:40
Year Estimated Utility Net Income and Cashflow includes projections of utility revenues and expenses
with resulting annual net income and cashflow as well as the estimated retail price per kilowatt hour.
The Rural Power System Upgrade Program will construct a new Electric Power Generation Facility
in Elfin Cove.The Elfin Cove Facility will consist of three diesel engine generators,automated
switchgear,fuel handling,and a step-up transformer bank.
The Facility will be turned over to the Primary Operator after the satisfactory completion,as
determined by AEA or its representative,of a 14-day test period.After this test period,AEA will
provide written notice (Certificate of Substantial Completion)stating that the Facility is ready for
Beneficial Occupancy.Upon receipt of this Certificate,the Elfin Cove Unlity Commission will
become the Primary Operator and will assume responsibility for the use,day-to-day operations,and
long-term maintenance of all Facility components,except those noted elsewhere in the Plan.When
the project has been completed (the Facility is complete,ctews have demobilized,invoices have
been paid and there are no outstanding issues),the AEA will issue,through its Grants Manager,a
Notice of Project Completion.
Document Interrelationships
Attached to this Plan are:
@ Site Control Documents
e Grant Agreement
Elfin Cove Utility Commission
Electric Utility Upgrade Business Operating Plan
Page 2 of 21
II.BACKGROUND
The Alaska Energy Authority is a state-owned corporation that assists in the development of safe,
reliable,and environmentally sound energy systems for Alaska's communities.AEA will coordinate
the planning,construction and funding of the Elfin Cove Utility Project.
Elfin Cove lies on the northern shore of Chichagof Island,70 miles west of Juneau and 33 miles
west of Hoonah.Elfin Cove is a protected,flask-shaped harbor,which provides safe anchorage and
proximity to the Fairweather fishing grounds.The harbor is a natural spot for fish buyers and
supplies.Ernie Swanson built a store,restaurant and dock here in the 1920s.His wife,Ruth,
applied for a post office in 1935,and gave it the new name of Elfin Cove.John Lowell,another fish
buyer,arrived in the 1940s and built a second dock,a warehouse,store and restaurant.Today,Elfin
Cove is a fishing community.
More than half of the homes are fully plumbed,using individual surface water collection systems,
and septic tanks with leach fields or beach outfall.A water and sewer feasibility study has been
conducted.Funds are needed to replace septic tanks with a community sewage collection system.
No landfill 1s available;the community currently uses an unregulated refuse burn area on tidelands.
A State-owned seaplane base is available.Moorage for 25 marine vessels is available.Skiffs are the
primary means of local transportation.Freight arrives by float plane or boat.Elfin Cove is a fish-
buying and supply center for fishermen.Most residents participate in commercial fishing,sport
fishing and charter services,so the economy is highly seasonal.26 residents hold commercial fishing
permits.Summer lodges and local retail businesses also provide seasonal employment.
Selected demographic and historical data for the community is provided below:
Selected Statistics -Elfin Cove
Population
2005 29
2000 32
1990 57
1980 28
1970 49
Housing (2000 Data)
Occupied Housing 15
Vacant Housing Due to Seasonal Use 10
Other Vacant Housing 10
Economic Data (2000 Data)
Unemployment Rate 23.1%
Median Household Income $33,750
Elfin Cove Utility Commission
Electric Utility Upgrade Business Operating Plan
Page 3 of 21
III.FACILITY UPGRADE
The Rural Power System Upgrade Program will construct a new Electric Power Generation Facility
in Elfin Cove that will consist of three diesel engine generators,automated switchgear,fuel handling,
and a step-up transformer bank.
Electric Uulity Upgrade Description
The AEA contracted with Alaska Energy &Engineering,Inc.to develop a CDR for the Electric
Power Upgrade Project,which was submitted to AEA on February 16,2006.The purpose of the
CDR is to provide a concept design and construction cost estimate for upgrades to the electrical
generation system for the community of Elfin Cove.This Plan is based upon the information
contained in the CDR.
The new Elfin Cove Electric Power Generation Facility will be located on Community of Elfin
Cove property in the heart of the community,co-located on a parcel with the community building.
The power plant upgrade will include three new generators,programmable automatic paralleling
switchgear,remote radiators with variable speed control,a fire suppression system,critical grade
exhaust silencers,and automatic fill day tank,a heat exchanger for generation heat recovery,and all
required engine coolant piping and ventilation equipment.
Project Exclusions
AEA will not take responsibility for the following,which are not a part of this project:
e Off-site fuel storage
@ Abandonment or decommissioning of existing facilities
e Environmental cleanup
The AEA will not provide any guarantees,warrantees or ongoing support,other than that which is
defined in the Plan.However,manufacturer warranties will be transferred at the time of project
turnover (defined in Section IV.Primary Operator).
Electric Power Generation Facility Capacity
The proposed capacity of the Elfin Cove Facility will be 364 kW,using three generators,taking into
account the 2%annual growth in consumption over the next ten years.The initial annual estimated
kW generation is 347,500;growing to 376,000 kWh by year five and 415,000 kWh by year ten.
The generators are proposed at 190 kW,110 kW,and 64 kW.The proposed 64kW genset will be
the prime genset for approximately eight months out of the year.This unit will be powered by a
marine jacketed engine to provide for additional generation heat recovery.The Facility's power
generation capacity is in excess of its present usage.
Site Plan and Project Layout
The following diagrams detail the site plan and project layout:
Elfin Cove Utility Commission
Electric Utility Upgrade Business Operating Plan
Page 4 of 21
Site Plan
2”DISPENSING
PIPELINES
EXISTING TANK
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EX:STING 3”
BARGE FILL AND
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DISTRIBUTION
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Elfin Cove Utility Commission
Electric Utility Upgrade Business Operating Plan
Page 5 of 21
Project Layout
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AUTOMATIC FILL 1C0/GALLON DAY TANK
:CENJ3,64kW :FIRE SUPPRESSION H g
CONTROL PANEL &f {==>
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HCSPITAL GRADE Hr
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AUTOMATIC wa A \PARALLELING RADIATOR VFO INSTALL SHED ROOF
SW:TCHGEAR PANELS OVER RAD:ATCRS
PROUEET:ELFIN COVE own em:ITD/CLZ|scar 3/16°=1°Stoty of
ENERGY INFRASTRUCTURE PROJECTS nem BG |owe 4/10/06 Ma."Poe ot Comin ott Vetnomic Onmcorent
THE:ALE NAME 'SHEET OF *an ore a foie TBALASKAPOWERPLANTRENOVATIONPLANELFIN-PP=PLANS HH D 2 tare "anencraqa,noe $3009 °
Elfin Cove Utility Commission
Electric Utility Upgrade Business Operating Plan
Page 6 of 21
IV.PRIMARY OPERATOR
The Primary Operator for the Elfin Cove Facility will be the Elfin Cove Utility Commission,which
is owned and operated by the Community of Elfin Cove Nonprofit Corporation.A detailed
statement of qualification for the Primary Operator is included as Appendix A:Primary Operator
Statement ofQualification.
Contact Information
Primary Operator:Elfin Cove Utility Commission
Primary Contact Name:Jane Button and Hap Leon,Project Managers
Phone:(907)239-2226 Fax:(907)239-2226
Address:P.O.Box 2,Elfin Cove,AK 99825
Usage:The Corporation will own the Facility and operate it through its subsidiary,Elfin
Cove Utility Commission.
Turnover and Assumption of Responsibilities /Sustainability
The Facility will be turned over to the Primary Operator after the satisfactory completion,as
determined by AEA or its representative,of a 14-day test period.After this test period,AEA will
provide written notice (Certificate of Substantial Completion)stating that the Facility is ready for
Beneficial Occupancy.Upon receipt of this Certificate,the Elfin Cove Utility Commission will
become the Primary Operator and will assume responsibility for the use,day-to-day operations,and
long-term maintenance of all generation facility components.
When the project has been completed (the Facility is complete,crews have demobilized,invoices
have been paid and there are no outstanding issues),the AEA will issue,through its Grants
Manager,a Notice of Project Completion.This Notice is included in the Grant Agreement;see
Additional Related and Attached Documents.
The Primary Operator is responsible for the long-term sustainability of the Facility for the benefit of
the local community.The complete Facility will be maintained according to guidelines outlined in
this plan,all manufacturers'recommendations for maintenance,and all state and federal laws,codes
and regulations governing operation.The Primary Operator is responsible to establish and manage
accounts for the O&M and R&R to ensure that sufficient resources exist to sustain the Facility as
specified in the Plan.
Staffing and Training
The Primary Operator will designate an Operations and Maintenance Manager (the "Manager”)for
the Facility.The Manager will be the point of contact for communications between the Primary
Operator and all other interested parties.The Primary Operator will name the Manager prior to the
start of operation.The Manager will manage the Primary Operator's enterprises and will be given
complete responsibility for operating the Facility in compliance with this Plan.
Elfin Cove Utility Commission
Electric Utility Upgrade Business Operating Plan
Page 7 of 21
It is recognized that there will be,from time to time,turnover in various operational,maintenance
and administrative positions.Because all functions are essential to the successful operation of the
Facility,replacements will be recruited and trained as necessary.The Manager will be responsible
for maintaining adequate staffing and training at all times,and when the Primary Operator lacks
trained operators and administrative staff,training will be obtained to ensure sustained Facility
operation.
The Primary Operator's manager and bookkeeper may,as needed,participate in business plan
training conducted by the Alaska Energy Authority.Additionally,as applicable,the Primary
Operator will utilize the AEA Circuit-Rider Training Program for on-site,hands-on training,as well
as other training programs offered by AEA,the Alaska Vocational Technical Center (AVTEC)in
Seward and others.
Financial Responsibilities
There are two cost categories that will be incurred in the ongoing operation and upkeep of the
Electric Utility equipment -O&M and R&R.
The Primary Operator will incur a number of expenses relating to the O&M of the equipment.
O&M items are defined as expenses that are incurred on a regular basis (administration,audits,etc)
and maintenance expenses that are incurred on an annual basis.O&M expenses are detailed in Tab
C:Annual OM Schedule and a narrative detail is provided in Section VIL.Financial Information to
address estimates and assumptions.
R&R costs are those expenses defined as items costing greater than $5,000 and/or that are not
replaced on an annual basis.Table G:40 Year R¢*R Schedule details the anticipated items,the
frequency of their replacement and their present day value.
The Primary Operator will maintain separate O&M and R&R accounts and will maintain a sufficient
account balance to meet the O&M and R&R financial goals in this Plan.The Manager will be
authorized to draw against the O&M funds for routine expenses of the Facility;however,individual
expenditures in excess of $5,000 will require authorization of the Primary Operator's management
ot governing body.See Appendix A:Statement ofQualification for an overview of the Primary
Operator's fiscal controls and accounting procedures.
At least once a year,no later than May 31",the Primary Operator will develop a budget for theupcomingfiscalyear,July 1*through June 30",for both O&M and R&R.This will include an
update of actual expenses and projections and assumptions used in this Plan,as described in Section
VIII.Financial Information,Subsequent Operating Year Revisions.Additionally,Tables A-H should be
updated.
Elfin Cove Utility Commission
Electric Utility Upgrade Business Operating Plan
Page 8 of 21
Operations and Maintenance Guidelines
The Primary Operator will establish an account to fund the Facility O&M so that the O&M
schedule can be completed and the Facility operations can be sustained into the future (this is
anticipated to be an active non interest-bearing account).Section VILL.Financial Information provides
Table C:Annual OC7M Schedule and Tabk D:40 Year O@7M Schedule as a guide to plan for annual
maintenance activities.
Renewal and Replacement Guidelines
The Primary Operator will establish a renewal and replacement account,which will ensure
capitalization of an amount sufficient to maintain the R&R Schedule (see R¢*R Fund Account-
Sample Documents for "How to Establish a RC*R Account').Section VIL.Financial Information provides
Table G:40 Year RC*R Schedule as a guide to plan for annual R&R activities and Tab H:40 Year
Re>R Cashflow as a guide to estimate annual R&R required contributions.These costs are based on
the R&R cost estimate provided by Alaska Energy &Engineering,Inc.See Appendix B:O&M and
Re¢>R Cost Estimate.
The Primary Operator will use the estimates in this Plan for year one contributions,and in
subsequent years will recalculate contributions based upon actual costs.
Elfin Cove Utility Commission
Electric Utility Upgrade Business Operating Plan
Page 9 of 21
V.REGULATORY REQUIREMENTS
The Primary Operator is responsible for ensuring adherence to all applicable state and federal
regulations.The Facility will be provided with,and will have on-site,if applicable,any of following
spill response and related regulatory plans that need to be implemented:
e Environmental Protection Agency (EPA)Spill Prevention Control and Countermeasures
(SPCC)Plan (40 CFR Part 112)-This plan confirms compliance of the Facility with the
spill prevention and operating requirements of 40 CFR Part 112.A Registered
Professional Engineer must certify the plan.
This plan will also include operator guidelines for spill training,drills,prevention and response and
other related environmental information to ensure the environmental integrity of the Utility and the
community.
This plan includes commitments and guidelines for spill prevention,response,and other related
environmental information to ensure the environmental integrity of the Facility and the community.
The plan will be developed near the end of Facility construction.The Primary Operator will
participate in development and review of the plan as requested.
The Primary Operator must be certificated by the Regulatory Commission of Alaska.
The Primary Operator will apply to the State of Alaska,Department of Environment Conservation
for a Construction Permit prior to facility construction and for a Diesel-Electric Generator Facility
General Operating Permit.
Elfin Cove Utility Commission
Electric Utility Upgrade Business Operating Plan
Page 10 of 21
VI.FINANCIAL INFORMATION
All estimates and assumptions contained in this Plan are preliminary and are anticipated to change as
the project progresses.Actual expenses may vary throughout the life of the Facility and,therefore,
should not be considered as final estimates.
Key Financial Assumptions
e Annual inflation rate of 1.5%.
e Annual investment rate of 3%.
e Itis assumed that R&R funds will be deposited into an interest-bearing bank account.
Fees are assumed to be 1%,beginning when the account balance is estimated to be
$100,000.
e Annual collections rate of 100%.
e Detailed assumptions regarding labor rates,required labor hours,and other operating
costs are provided in the tables that follow.
e Fuel costs for the first year are estimated to be $3.80 per gallon.
e Annual kWh usage for Elfin Cove is estimated to grow at 2%annually.
Key Operating Assumptions
Line loss and unbilled production are assumed to be 12%per year.
Initial first year power generation is estimated to be 347,500 kWh for Elfin Cove.
Initial annual billed kWh is estimated to be 305,800 kWh for Elfin Cove.
Energy is produced at 14 kWh/gallon on average.
Explanation of Financial Terms
e Total Annual Billed kWh -The annual estimated kWh of demand from all users groups
(residential,community,commercial,etc)that is billed for payment.
e Assumed Annual Collectable kWh -The annual estimated kWh that is deemed to be
collectable upon billing for payment.
Elfin Cove Utility Commission
Electric Utility Upgrade Business Operating Plan
Page 11 of 21
Subsequent Operating Year Revisions
Starting with the second year,as operating experience specific to this Facility is obtained,the
projections and assumptions upon which the Plan is based will be reviewed and modified.The
following guidelines are for use in subsequent operating years in updating and modifying Plan
projections and assumptions:
Step 1:Review previous years'O&M and R&R costs and compare to current projections
Step 2:Adjust O&M and R&R projections and assumptions based upon actual experience
Step 3:Recalculate per kWh O&M surcharge based upon updated demand estimates
Step 4:Recalculate per kWh R&R surcharge based upon updated demand estimates
Step 5:Update Table A:40 Year Estimated Utility Net Income and Cashflow
Step 6:Establish updated retail rate per kilowatt hour
Elfin Cove Utility Commission
Electric Utility Upgrade Business Operating Plan
Page 12 of 21
Inflation Rate :
TABLEA
40 YEAR ESTIMATED UTILITY NET INCOME AND CASHFLOW
Annual Profit Margin:
Annual Revenue Annual Expenses Net Annual Cashflow Before Taxes
s ae General&Year Estimated en Estimated O&M Fuel Costs |Administrative |Depreciation Total Income Net Income Plus:less:R&R AnnualRetailPriceKwll/Year Anaual Expenses (Table F)Expenses (Fable )Expenses Before Year|Before Taxes Depreciation Cash Deposit Cashflow$/KwH (Table B)Revenue (Tables C&D)(Table F)Taxes (Table F)|(fables G&H)
i|ts 0462]]305,800|[$141,393]{$40,001|$90,598[$_1,500[$1,200]$_133,389|[$8003][1 [S$8003]][$ 1,200/$6,110|]$3,087"2 |/s 0466]|311,916)[$145,403][$40,092]$93,790]$1,523 $1,218]$137,229]|$8,234)|2/19 8234)18 1,218]8 6,238]]$3,2133}[$so470f |318,154]|$149,063]1§41,303]$97,107($1,545]$1,236]$141,192]]/$8471]|3 |S 8471]|$ 1,23618 6,363]1 $3,3454[fs 0475]|324517]|$153,998]|}§41,922]$100,535/$1,509]$1,255]$145,281]|$8717]|4s 3,717]|$-1,255])8 6490]1 $3,481"5 |1$0497]|]331,008]|$164,527}|$42,551|$104,084/$1,592]$6,987]$155,214;|S 9,313]f 5 |S 9,313]]$698718 6620}]$9,680"6 |{$s 0501]]-337,028]|$169,144]|$43,189]$107,758]$1,616]$7,006]$159570}|$9,574]|6 [S$9,574]]$7,006]$10,129;|$6,451"T |{S$0.505 344,380 |1$173,009]]$ 43,837|$111,562/$ 1,040/$7,025|$164,065]]$9,844)|718 9844]}8 702518 10331;1$65388|{S$_0.506 351,268 s_177,766||$_44,495/$115,500]$_1,665|$6,044]$167,703]|$10002]|8 {$s 10,002]{s 6044|$10538]}$5,508"9 ||$oso]|358,293}|$182,843]|$ 45,162|$119,577]$1,690]$6,064]$_172,493||$10350]|9 |$10350]|$6004]$10,749]|§_5,604ao}]s 0532]|305,459]|§194,486]]$ 45,840/$123,799]$-1,715|$12,124]$183,477]|$11,009]J 10]$11,009]|$12,124]$10,964]|$-12,169'i1{]$0536]|372,768]|$199,896||$46,527|$128169]$1,741]$12,145]$198,581]|S 11,315]|11]$11,315]|$12,145]$14,911]|$8,549'12/[$s 0540]]380,224]|$205,482]|$47,225]$132,693]--1,767[$12,166 |$193,851]|$11,631]|12]$11,031]|$12,166]$15,209]|$8,588|1i3{|S 0538]|387,828]|$208820]|$47,933]$137,377|$1,793}$9,896)$197,000]|$11,820]|13]$11,820]|$9,890]$15,513]|$6,203|w4}$-05437]395,585]|$214,774]|$8 48,6521 §142,226]1,820]$9,917]$__202,617||$12,157]|14]$8 12,157]|$9,917 |$15,823 $6251154}]$0545]|403,497 |$219,710]|$49,382]$147,247]$1,848|$8,796 |$207,273]|$12.436]|15|$12436);|$ 8,796/$16,140]|$5,09316||$0.549 411,567 $226,058}|$ 50,123|§152,445/$-:1,875]$8,819 |$213,262]]$12,796]|16|$12,796)]$8819/$20,578]|$1,036171|$0.554)|419,798]|$232,612]]$50,875|$§157,826[$ 1,903]$ 8841]$219,440]]$13,167]J 17 [$8 13,107]|$8,841]$20,990]|$1,018|18[]$0.555]|428,194]|$237,784]|$51,638]$163,397/$1,932]$_7,357|$_2243241 |$13,459]|18 |$13,459]|$ 7,357/$21,410]|$(593)
1914s 0560]]436,758 |$244,774]|$8 52,413|$1691058 -1,961]$7,380]$_230,919)|$13,855]|19]$13855]]1§7380/8 21,8381 ]$G03)
20}]}$0580]|445,493]|$258,499]|$53,199]$175.1378 1,990]$13,541 |$243,867)]$14,632]|20/8 14632]]$13,541]$22,275]|$5,89821{[s 0585]|454,403/|$265,955]|$53,997]$181,319 |$2,020[$-13,565|$250,901]]$15,054]J 21]$15,054]|$13,505]$27,204]|$1,35522|/$0590}|463,491]|$273,656]|$54,807]$187,720|$2,051]$13,589 $258,166]|$15,490}|22|$15,4901 18 13,589]$27,8091 |$1,270234]$0590]|472,761]|$_278,968]|$55,629|$§194,346)$2,081]$11,121]$263,178 ||$15,791]|23 |$15,791]|$11,121]$28,366]|$(1,454)'m1 {S$0596)|482,216]|§287,185]|$56,403|$201,207/$2113 |$11,146]$270,929]|$16,256}|24]16,256)|8 11,146]$28,933]|$(1,531)
25 ||$0.618 491,860 ||$303,828]|$57,310|$208,309|$2,144]$18,867]$286,630]|$17,198]|25|$17,198]|$ 18,867|$29,512]|$6,553-26||s 0623]|-501,097]|$312,595]]$58,170]$215,603]$2,176 |$18,892}$_294,901||$17,094]|20]$17,6094]|$18,802]$35,119]|$1,46827{|s 0629}|511,731 ||$321,652]|$59,042]$223,276[$2,209]$18,918]$303,445]|]$18,207]|27]$18,207]]$18918]$35,821||$1,30428|{$s 0.631]|521,966]|$329,579]]}$59,928]$231,157]$-2,242|$17,590]$310,924]|$18,655]|28]$18655]]$17,596]$36,538]$(286)
2911$0.637]{532,405]|$339,245 1$ 60,827|$239,317]$2,276 |$17,623]$320,043||$19,203]|29]$19,203]|$17,023 |$37,268]|$(443)301]$0650]|543,053]|$353,025 1$61,739 |$247,765|$2,310]$21,228]$333,042]|$19,983]|30]$19,9831 |$21,228]38,014/]$3,1973111s0656]]553,914]|]$363,343 |$62,605]$256,511]$2,345]$21,256]$342,777||$20,567]|31]$20,5671 1 $21,256]$44,313 ||$(2,491)32[|$0.662}}564,993}|$374,005]]$63,605]$265,566|$2,380|$-21,284/$352,835]|$21,170]|32]$21,170]|$21,2848 45,1991 |$-(2,745)|33 1$0.664]|576,293]|$382,519||$64,559|$274940|/$2,415 |$18,952 $300,867]|$21,652]|33 |$21,652]]$18952]$46,103]|$(5,500)
34]|$0670]|-587,818]|$393,902]|$65,528 |$284640[$---2,452/$18,981]$371,006]|$22,296]|34|$22,296]|$18,981]$47,025]|$(5,748)3541s 0604]|599,575]|§398027]|$66,511]$294094|$2,488]$11,804 $375,497]|$22,530]|35]$s22,530]|$11,8041$47,966]|$(13,632)
36 [|$oo71]|611,506]|$410,183]|$67,508]$305,096 $2,526]$11,834]$386,965]|$23,218]|36]$8 23,218]|$11,8341 55,041]|$(19,989)37 [$s 0678}|623,798 ||$422,744]|$68,521]§315,866 |$2,564|$11,864|$398,816]|$23,9291 |37|$23,929]]$11,864]$56,142]|$(20,348)38]]$0.682 636,274 ||$433,768]]$69,549 $327,016|$2,602]§__-10,047|$409,215]|$24,553]|38]$24,5531]$§10,047|$57,205]|$(22,664)
39)1$0689]|648,999]|$447,184]|$70,592]$338,560|$2,641/$-10,079|$421,872]|$25,312]|39]$25,312]1$10,079[§58,410]|$(23,019)40 |{8 0.751 661,979 ||S 497,410]|$8 71,651]$350,511 |$2681]$44,411]$8 469,254||$28,155]|40]$28155118 4441115 59,578||$12,989
Elfin Cove Utility Commission
Electric Utility Upgrade Business Operating Plan
Page 13 of 21
TABLE B
Power Generation and Consumption Summary
Total Generated Annual Line Total Billed Assumed
Year KwH/Year Loss and KwH/Year Collectable
Unbilled KwH/Year
1 347,500 41,700 305,800 305,800
2 354,450 42,534 311,916 311,916 Assumed Collection Rate
3 361,539 43,385 318,154 318,154 2
4 368,770 44,252 324,517 324,517
5 376,145 45,137 331,008 331,008
6 383,668 46,040 337,628 337,628
7 391,341 46,961 344,380 344,380
8 399,168 47,900 351,268 351,268 Annual Line Loss/Unbilled
9 407,152 48,858 358,293 |358,293 be 12.00%:=|
10 415,295 49,835 365,459 365,459
11 423,601 50,832 372,768 372,768
12 432,073 51,849 380,224 380,224
13 440,714 52,886 387,828 387,828
14 449,528 53,943 395,585 395,585
15 458,519 55,022 403,497 403,497
16 467,689 56,123 |411,567 411,567
17 477,043 57,245 419,798 419,798
18 486,584 58,390 428,194 428,194
19 496,316 59,558 436,758 436,758
20 506,242 60,749 445,493 445,493
21 516,367 61,964 454,403 454,403
22 526,694 63,203 463,491 463,491
23 537,228 64,467 472,761 472,761
24 547,972 65,757 482,216 482,216
25 558,932 67,072 491,860 491,860
26 570,111 68,413 501,697 501,697
27 581,513 69,782 511,731 511,731
28 593,143 71,177 521,966 521,966
29 605,006 72,601 |532,405 532,405
30 617,106 |74,053 543,053 543,053
31 629,448 75,534 553,914 553,914
32 642,037 77,044 564,993 564,993
33 654,878 78,585 576,293 576,293
34 667,975 80,157|587,818 587,818
35 681,335 81,760 599,575 599,575
36 694,962 83,395 611,566 611,566
37 708,861 |85,063 623,798 623,798
38 723,038 |86,765 636,274 636,274
39 737,499 88,500 648,999 648,999
40 752,249 |90,270 |661,979 |661,979
Elfin Cove Utility Commission
Electric Utility Upgrade Business Operating Plan
Page 14 of 21
TABLE C
ANNUAL "0 and M"SCHEDULE
Rate Per Fringe Total Hourly
Position Hour Rate Cost Duties
Operator 1 -Primary «|&20.00 11.0%||$22.20 Maintenance&PrimaryOperations _
Bookkeeper 8 15.00]11.0%||S 16.65]|Payroll,Accounts Payable -Backup Operator $15.00 11.0%$16.65 Backup Primary Operator
Annual O&M Costs:
Labor Costs
Hours/Hourly Monthly
Labor Month Cost Cost Annual Costs
BookkeeperBookkeeper --(asé'isé's SCsSYSCSC(80,00 $16.65]|1$333.00
Subtotal AdministrativeLabor |20.00 ||$333001 |$|3,996
Operators a __:-
Primary 600 |[$622.20]|$133200]|7
Backup |40 [I$1665]]$666.00 a a a
Subtotal Operator Labor 100 []|st $199800)|$23,976
Materials:Z a BOMaterials&Equipment _7 7 -a ---7 S$8,669
"FireSystemInspection Outside Contractor)= ti(iti'"'i;:'*dT 1,250
Other Costs:
_---7
Training (Lump Sum)$1,000
Insurance Oe 7 7 1,200
Total Annual O&M Costs _OO oo $40,091
Elfin Cove Utility Commission
Electric Utility Upgrade Business Operating Plan
Page 15 of 21
TABLE D
40 YEAR "0 and M"SCHEDULE
Annual O&M Total Billed Assumed O&M Surcharge'Year Expenses KwH/Year Collectable $/KwHKwH/Year
1 $40,091 305,800 305,800 ||$
2 $40,692 311,916 311,916 ||$
3 $41,303 318,154 318,154 ||$
4 $41,922 324,517 324.517 ||$
5 $42,551 331,008 331,008 ||$
6 $43,189 337,628 337,628 ||$
7 $43,837 344,380 344,380 ||$
8 $44.495 351,268 351,268 ||$
9 $45,162 358,293 358,293 ||$
10 $45,840 365,459 365,459 |1$
11 $46,527 372,768 372,768 |1 $
12 $47,225 380,224 380,224 ||$
13 $47,933 387,828 387,828 ||$
14 $48,652 395,585 395,585 ||$
15 $49,382|403,497 403,497 ||$,
16 $50,123 411,567 411,567 ||$0.122
17 $50,875 419,798 419,798 |1$0.121
18 $51,638 428,194 428,194 ||$0.121
19 $52,413 436,758 436,758 ||$0.120
20 $53,199 445,493 445,493 1 1$0.119
21 $53,997 454,403 454,403 ||$0.119
22 $54,807 463,491 463,491 ||$0.118
23 $55,629 472,761 472,761 ||$0.118
24 $56,463 482,216 482,216 ||$0.117
25 $57,310 491,860 491,860 ||$0.117
26 $58,170 501,697 501,697 ||$0.116
27 $59,042 511,731 511,731 ||$0.115
28 $59,928 521,966 521,966 ||$0.115
29 $60,827 532,405 532,405 ||$0.114
30 $61,739 543,053 543,053 ||$0.114
31 $62,665 553,914 553,914 ||$0.113
32 $63,605 564,993 564,993 ||$0.113
33 $64,559 576,293 576,293 ||$0.112
34 $65,528 587,818 587,818 ||$0.111
35 $66,511 599,575 599,575 ||$0.111
36 $67,508 611,566 611,566 ||$0.110
37 $68,521 623,798 623,798 ||$0.110
38 $69,549 636,274 636,274 ||$0.109
39 $70,592 648,999 648,999 ||$0.109
40 $71,651 661,979 661,979 ||$0.108
Elfin Cove Utility Commission
Electric Utility Upgrade Business Operating Plan
Page 16 of 37
TABLE E
ANNUAL FUEL COSTS
i
Estimated Total Total Fuel Assumed
Year Fuel Cost per Generated Usage @ von annual Collectable vk otGallonKwH/Year ||14 KwH/Gallon KwH/Year w
1 $3.65 347,500 24,821]|$90,598 305,800 |1$0.296
2 |$3.70 354,450 25,318 ||$93,796 311,916]|$0.301
3 $3.76 361,539 25,8241 }$97,107 318,154]]$0.305
4 $3.82 368,770 26,341 ||$100,535 32451711$0.310
5 $3.87 376,145 26,868 ||$104,084 331,008 |1$0.314
6 $3.93 383,668 27,405 ||$107,758 337,628 |1$0.319
7 $3.99 391,341 27,953 ||$111,562 344,380]1$0.324
8 $4.05 399,168 28,5121 |$115,500 351,268 |1$0.329
9 $4.11 407,152 29.082 ||$119,577 358,293 |]$0.334
10 $4.17 415,295 29,664 ||$123,799 365,459 1$0.339
11 $4.24 423.6011]30,257 ||$128,169 372,768 1|$0.344
12 $4.30 432,073 30,862 ||$132,693 380,224|1$0.349
13 $4.36 440,714 31,480 ||$137,377 387,828 |1$0.354
14 $4.43 449,528 32,109]|$142,226 395,585 |]$0.360
15 $4.50 458,519 32,751 ||$147,247 403,497|]$0.365
16 $4.56 467,689 33.406 ||$152,445 411,567|]$0.370
17 $4.63 477,043 34,075 ||$157,826 419,7981|1$0.376
18 $4.70 486,584 34,756 ||$163,397 428,194]1$0.382
19 $4.77 496,316 35,451 ||$169,165 436,758|]$0.387
20 $4.84 506,242 36,160 ||$175,137 445,493]1$0.393
21 $4.92 516,367 36,883 ||$181,319 454,403 |]$0.399
22 $4.99 526,694 37,621 ||$187,720 463,491 |1$0.405
23 $5.06 537,228 38,373 ||$194,346 472,7611|$0.411
24 $5.14 547,972 39,141 ||$201,207 482,216|]$0.417
25 $5.22 558,932 39,9241 1$208,309 491,860|}$0.424
26 $5.30 570,111 40,722 ||$215,663 501,697}|$0.430
27 $5.38 581,513 41,537 ||$223,276 511,731 |1$0.436
28 $5.46 593,143 42,367 ||$231,157 521,966|1$0.443
29 $5.54]|605,006 43,215 ||$239,317 532,405|1$0.450
30 $5.62 617,106 44,079 ||$247,765 543,053 |1$0.456
31 $5.71 629,448 44.9611 |$256,511 553,914|1$0.463
32 $5.79 642,037 45,860 ||$265,566 564,993 |1$0.470
33 $5.88 654,878 46,777 ||$274,940 576,2931|$0.477
34 $5.97 667,975 47,713 ||$284,646 587,818 |1$0.484
35 $6.06 681,335 48,667 ||$294,694 599,575|1$0.492
36 $6.15 694,962 49,640 ||$305,096 611,56611$0.499
37 $6.24 708,861 50,633 ||$315,866 623,798}1$0.506
38 $6.33 723,038 51,646 ||$327,016 636,274|1$0.514
39 $6.43 737,499 52,678 ||$338,560 648,999 |1$0.522
40 |$6.52 752,249,53,732 ||$350,511 661,979 ||$0.529
Elfin Cove Utility Commission
Electric Utility Upgrade Business Operating Plan
Page 17 of 21
TABLE F
ANNUAL "G and A"AND DEPRECIATION EXPENSES
Annual General &Administrative Costs:
$
Office Expenses $1,500
Other -Interest Expense $-
Total Annual O&M Costs '$1,500
Annual R&R Depreciation Expense:
Depreciation-Other
Year Depreciation R&R Assets Total Annual Depreciation
1 [$-|$1,200 $1,200
2 $-$1,218 $1,218
3 $-$1,236 $1,236
4 $-$1,255 $1,255
5 $5,713 |$1,274 $6,987
6 |$5,713 |$1,293 $7,006
7 $5,713 |$1,312 $7,025
8 $4,712 |$1,332 $6,044
9 |$4,712 |$1,352||$6,064
10 =|$10,752 |$1,372 $12,124
11 $10,752 |$1,393 $12,145
12 |$10,752 |$1,414 $12,166
13 «|$8,461 |$1,435 $9,896
14 |$8,461 |$1,456 $9,917
15 |$7,318 |$1,478 $8,796
16 |$7,318 |$1,500 $8,819
17 +4 7,318 |$1,523 $8,841
18 1$5,811 |$1,546 $7,357
19 |$5,811 |$1,569 $7,380
20 $11,949 |$1,592 $13,541
21 |§$11,949 |$1,616 $13,565
22 1$11,949 |$1,640 $13,589
23 $9,456 |$1,665 $11,121
24 ($9,456 |$1,690 $11,146
25 |$17,151 |$1,715 $18,867
26 |$17,151 |$1,741 $18,892
27 |$17,151 |$1,767||$18,918
23 |$15,802 |$1,794 $17,596
29 $15,802 |$1,821 $17,623
30 |$19,380 |$1,848 $21,228
31 |$19,380 |$1,876 $21,256
32 1$19,380 |$1,904 $21,284
33 «|$17,019 |$1,932 $18,952
34 1$17,019 |$1,961 $18,981
35 |$9,813 |$1,991 $11,804
36 |$9,813 |$2,021 $11,834
37 1$9,813 |$2,051 $11,864
38 $7,966 |$2,082 $10,047
39 |$7,966 |$2113]|$10,079
40 |$42,267 |$2,145 $44,411
Elfin Cove Utility Commission
Electric Utility Upgrade Business Operating Plan
Page 18 of 21
TABLE G
40 YEAR "R and R"SCHEDULE
Elfin Cove Utility Commission
Electric Utility Upgrade Business Operating Plan
Page 19 of31
Year of Present Day ||Annual Inflated DepreciationActivityR&R Activity Value Total Value R&R Activities:Cost Activity Year Term
5 Replace Values/Gauges $437
Upgrade Floors/Walls/Ceilings 1,973 B2|Refurbish Electric Systems $686 10/20/30/40 3
Top End Overhaul/Battery/Alternator 22,197 C1{Replace Ramps $s :40 20
|Repair Ballasts/Lenses 420 []$25,028 [|$26,563 B2}Pump Replacement $404 10/20/30/40 :3
10 Refurbish Electric Systems $686 C2]|ReplaceDayTank &Electrical System $43,950 40 |»|
Pump Replacement 404 B2]Replace Values/Gauges $437}4}5/15/25/35 3
Floor/Roof Repair 533 B3|Floor/Roof Repair $533|10/20/30/40 3
Repair Roof 511 C3|UpgradeFloor/Roofs $7,729 20/40 10
Change Door Hardware 584 B3|Repair Siding/Overhead Door $-_||_5/10/15/25/30/35 3
Upgrade Floors/Walls/Ceilings 1,973 C3{ReplaceWalls/Window Units/Specialities $6,957 0 |2|
Repair Ducts/Grilles 901 B3E Repair Roof $SIL 10/20/35 3
Repair Fire Suppression System 3,000 B3|Change Door Hardware $584 10/30 3
Repair Ballasts/Lenses 420 B3|ReplaceWindow Sealsand Glazing $:20 3
Overhaul Genset/Controls 35,500 |]$44,511 |]$50,893 |B3|Upgrade Floors/Walls/Ceilings $1,973 5/10/15/25/30/35 3
15 Replace Values/Gauges $437 C3|Replace Doors &PaintTrim $1,762 20/40 3
Upgrade Floors/Walls/Ceilings 1,973 C4[Replacement MechanicalSy $48,200 |40 20
Top End Overhaul/Battery/Alternator 22,197 B4|Repair Ducts/Grilles $901 10/:30 3
Repair Ballasts/Lenses 420 4 $25,028 |]$30,828 C4{Refurbish Ducts/Grilles $3,180 20/40 10
20 Pump Replacement $404 Bal Repair Fire SuppressionSystem $3,000 10/30 10
Refurbish Electric Systems 686 C4[ReplaceFire Suppression System $34,500|40 20
Refurbish Switchgear/Controls 13,500 B5|Replace Breakers/Fuses $1,740,20 3
Floor/Roof Repair 533 B5|Repair Ballasts/Lenses $420||5/10/15/25/30/35_3
Repait Roof 511 C5][Replace Fixtures/Devices/Alarms $5,521 20/40 10
Upgrade Floor/Roofs 7,729 Bo|Overhaul Genset/Conwols $35,500 10/30 5
Replace Doors &Paint Tam 1,762 B5|Replace Panels /Switches/Motors/Controls 1 $8,500.40 a.
Replace Breakers/Fuses 1,740 C6|ReplaceGenerators/Feeders &Conductors $62,000 20/40 15
Refurbish Ducts/Grilles 3,180 C5|ReplaceConductors/Transformers/Panels |$22,600 |40 a.
Replace Fixtures/Devices/Alarms 5,521 B6|Refurbish Switchgear /Controls $13,500 20 10
Replace Generators/Feeders &Conductors 62,000 }]$97,565 ||$129,464 C6]Replace Switchgear/Controls $170,200.40 20
25 Replace Values/Gauges $437 Bo|Top End Overhaul/Battery/Alternator $22,197 5/15/25/35 s
Upgrade Floors/W'alls/Ceilings 1,973
Top End Overhaul/Battery/Alternator 22,197
Repair Ballasts/Lenses 420 $25,028 [1 $35,777
30 Refurbish Electric Systems $686
Pump Replacement 404
Floor/Roof Repair 533
Change Door Hardware 584
Upgrade Floors/W'alls/Ceilings 1,973
Repair Ducts/Gnilles 901
Repair Fire Suppression System 3,000
Repair Ballasts/Lenses 420
Overhaul Genset/Controls 35,500 ||$44,000|$67,759
35 Replace Values/Gauges $437
Repair Roof 511
Upgrade Floors/Walls/Ceilings 1,973
Top End Overhaul/Battery/Alternator 22,197
Repair Ballasts/Lenses 420 |]$25,538 |]§42,368
40 Pump Replacement $404
Refurbish Electric Systems 686
Replace Panels/Switches/Motors/Controls 8,500
Floor/Roof Repair 533
Replace Day Tank &Electrical System 43,950
Upgrade Floor/Roofs 7,729
Replace Walls/Window Units /Specialities 6,957
Replace Doors &Paint Tam 1,762
Replacement Mechanical Systems 48,200
Refurbish Ducts/Grilles 3,180
Replace Fire Suppression System 34,500
Replace Fixtures/Devices/Alarms 5,521
Replace Conductors/Transformers/Panels 22,600
Replace Generators/Feeders &Conductors 62,000
Replace Switchgear/Controls 170,200 ||$416,720 |{§744,767
TABLE H
40 YEAR RENEWAL AND REPLACEMENT CASHFLOW
R &R Fund Balance
A dssume R&R
Year Beg.of Annual Renewals/Interest End of Collectable SurchargeYearDepositsReplacementsEarnings(Net Year KwlI/Year $/KwllBalanceofFees)Balance
1 §-|$_6,116 $ ___-1$6,116}|305,800}|$0.020
2 |]s6116/8 6238)|$183/$12,538]|311,916}|$0.0203$ 12,538/$6,363 $376|$19,277]|_-318,154]|$0.0204[4s 19,277]8 6,490 §578|$26,346]|324,517]|$0.0205|I$26346/$6,620]$26,5631 $--|s -6403]|331,008]|$0.020
6 $6403/$10129, |$ 128]/$16659]|337,628]|$0.030
7 |{$ 16659]$10,331]S383]$27,324]|344,380]|S 0.030_8 {|{8 27,324]8 10538]-|$ 546/$38409]|351,208]|$0.0309$38,409]$10,749 $768}$49,926 358,293}|$0.030
10||S49,926]$10,964]$50,8931$(I$9,977}|365,459]|$0.030i|{s 997718 14,911 {Ss 2001 $25,087}|_372,768]|$0.040-12 $25,087]$15,209 $502}$40,798]|380,224]|$0.040
13°118 40,798/$15513[Ss B1G J $ -57,127|| -387,8281 |$0.04014|[$57,127]$15,823 _[81143]74,093]|_395,585]|§0.04015||$74,093]$16140/$ 30,828/$865|$60,270]|403,497]1$0.040_16||S 60,270)$_20578)$1,205}$82,054]|411,567]|S 0.05017||$____82,054]$20,990 $1641]$104,685]|419,798)|$0.05018|[$104,685]$21,410 18 2,094]$128,188]|428,194]|$0.05019|]$128188]$21838;=|S 2,564/$152590]|436,758,|$0.05020.|18 152,5901$22,275]$129,4641$463 |$45,863]|445,493}|$0.05021-4 $s 45,803/$27,264]=TI 74,045 454,403]|$0.060
22,|1$74,045)27,809;«|$s -1,481 |]$103,335 463,491}|§0.06023||$1033351§283606] |$ 2067|$133,768]|472,761]|$-_-0.06024||$133,768]$28,933 ||_|$2,675 |$165,376]|482,216)|$0.0602511$165,376]$29,512]$35,777]$2,592 |$161,703 491,860]|$0.060_26||S 161,703|$35119]TS 3,234)$200,055]|501,697]|$0.07027||$ 200,055/$35821;- |$ 4,001]$239,878]|511,731]|$0.07028«||$239,878]$36,538]$4,798]$281,213]|521,966]|}$0.07029$281,213]$37,268] -|[$5,624]$324105]|532,405]|$_0.07030||s_324105]$3a014|$67,759]$5,127]$299,487]|543,053]|§_0.07031|[$299,487]$44313]tS 5,990 $349,790]|553,914]|$0.08032$349,790]$45,199 $6,996]$401,985]|__564,993]|$___0.08033.|{$401,985]§$46,103 $8,040]$456,128 576,293]|$0.080
34.«||$456,128]$47,025 {$9,123}§512,276]|587,818]|§0.08035||$__512,276/$47,966]§42,368 §9,398 |$527,272 599,575]{$0.08036d[S$527,2721$55,041 -|$ 10,545]$592,859]|611,566]|$0.09037$592.859 $56142]- |[$ 11,857]$660,858]|_-623,798||$-_-0.09038$660,858/$57,265,|$13,217]$731,339]|--636,274||$0.09039«||S 731,339]$58,410 $14,627 |$804,376 648,999 ||$0.090"ao ||8804376 [8 50.578 |8 _744,767|5 -|s 119.187 ||661.979 ||$0.090
Elfin Cove Utility Commission
Electric Utility Upgrade Business Operating Plan
Page 20 of 21
Inflation Rate :f.-:-:
Reinvestment Rate :
Invested Escrow Fees:
Initial KwHI Collectable :
Initial Cost per KwII:
5 year step cost increase :
APPENDIX A:PRIMARY OPERATOR STATEMENT OF QUALIFICATION
The Primary Operator Statement of Qualification includes:
1.A description of the Primary Operator,its personnel and experience,and its
responsibilities and functions.This discussion includes a description of the ability and
history of the Primary Operator to operate an electric power generation facility and utility
as a business and/or its history of operating other business enterprises,as well as a
description of the Primary Operator's fiscal controls and accounting procedures.This
discussion details organization history,management and structure;identification of key
personnel,their experience and responsibilities;and,proposed organization of the electric
utility management and operations,including an organizational chart.
2.A description of the Primary Operator's,if any,staffing or training needs.
3.A description of the training plan proposed by the Primary Operator to address current
and future needs.
Elfin Cove Utility Commission
Electric Utility Upgrade Business Operating Plan
Page 21 of 21
ELFIN COVE UTILITY COMMISSION/
COMMUNITY OF ELFIN COVE NON-PROFIT CORPORATION
Community History
Elfin Cove lies on the northern shore of Chichagof Island,70 miles west of Juneau and 33 miles
west of Hoonah.The area encompasses 10.7 sq.miles of land and 0.1 sq.miles of water.The area's
maritime climate is characterized by cool summers and mild winters.Summer temperatures range
from 52 to 63,while winter temperatures range from 26 to 39.
This protected,flask-shaped harbor was originally called "Gunkhole"by fishermen anchoring here.
Its safe anchorage and proximity to the Fairweather fishing grounds made this a natural spot for fish
buyers and supplies.In the 1920's,Ernie Swanson built a store,restaurant and dock and his wife,
Ruth,applied for a post office in 1935,and gave it the new name of Elfin Cove.John Lowell,
another fish buyer,arrived in the 1940s and built a second dock,a warehouse,store and restaurant.
Today,Elfin Cove is a fishing community.
More than half of the homes are fully plumbed,using individual surface water collection systems,
and septic tanks with leach fields or beach outfall.A water and sewer feasibility study has been
conducted and funds are needed to replace septic tanks with a community sewage collection system.
Residents currently use an unregulated refuse burn area on tidelands.A hydroelectric project has
been engineered and is under consideration for the future.
Transportation infrastruction in Elfin Cover includes a State-owned seaplane base and moorage for
25 marine vessels.Skiffs are the primary means of local transportation.Freight arrives by float
plane or boat.
Description of Business History
Elfin Cove is a fish-buying and supply center for fishermen.Most residents participate in
commetcial fishing,sport fishing and charter services,so the economy is highly seasonal.Twenty-
six residents hold commercial fishing permits.Summer lodges and local retail businesses also
provide seasonal employment.
Community of Elfin Cove Non-Profit Corporation
The Community of Elfin Cove Non-Profit Corporation (CECNPC)successfully provides several
setvices to the community of Elfin Cove.
COMMUNITY OF ELFIN COVE NON-PROFIT CORPORATION
Current Departments Description
Elfin Cove Utility Commission Electric Utility
Elfin Cove Fuel Retail fuel sales,fuel dock
Building Operations Committee |Community building management
Water Board Oversees water issues
Emergency Medical Services Provides emergency medical care
Elfin Cove Utility Commission/Community of Elfin Cove Non-Profit Corporation
Electric Utility Business Operating Plan
Appendix A-1
The Elfin Cove Utility Commission has been providing electric power to Elfin Cove residents since
1982.It services 36 residential accounts,30 commercial accounts,six community accounts and one
Federal/State account.Customers are billed monthly for electric services and pay with cash,money
order or check.The rate per kilowatt is currently 42 cents plus a fuel surcharge of 21.2%.For
residential customers,PCE contributes 22.53 cents per kWh for the first 500 kWh.After 500 kWh,
the charge is 42 cents per kWh plus the surcharge.Commercial,and the Federal/State,accounts pay
42 cents per kWh plus the 21.2 %surcharge.About 347,540 kWh were generated in FY 2005 (uly
04 -June '05)and 297,167 were sold.Total revenue of $130,737 was generated.
The Elfin Cove Utility Commission purchases the electric power plant's fuel from Elfin Cove Fuel
in Elfin Cove.The ECUC last paid $3.26 for #2 diesel to run the electric utility.
Description of Fiscal Controls and Accounting Procedures
The Community of Elfin Cove Non-Profit Corporation operates on a July through June fiscal year.
Debbie Hemenway is the treasurer of the board and oversees expenditures overall.At the most
recent meeting of CECNPC,it was agreed to have two signers on checks and in addition to the
treasurer,those with check signing authority are the secretary,chair and vice-chair.Altman,Rogers
&Co.of Juneau investigated the tax status of CECNPC and found that as a government entity,
CECNPC is not required to file tax returns.
Management and Structure
The Community of Elfin Cove Non-Profit Corporation is governed by a seven-member board.
Gordy Wrobel is the chair of the board and is the main contact for the CECNPC.There are no
employees of the CECNPC itself;however,the Elfin Cove Utility Commission,Elfin Cove Fuel and
the Building Operations Committee have hired positions.The organizational chart below shows the
various components of the CECNPC's overall structure.
Elfin Cove Utility Commission/Community of Elfin Cove Non-Profit Corporation
Electric Utility Business Operating Plan
Appendix A-2
Community of Elfin Cove Non-Profit Corporation
Organizational Chart
CECNPC
Board of Directors
ECUC Elfin Cove Fuel Elfin Cove Water Building Operations Comittee
(advisory Board of Directors)(advisory Board of Directors}
||
MaryJo Lord Jim Lord MaryJo LordJimLewisJaneButtonBookkeeperFuelDockManagerManagerOperatorBookkeeper/Billing Clerk
Scott Raymer
Back-up Operator
The CECNPC board consists of seven members including the Chair.Board members and specific
positions are listed below.
COMMUNITY OF ELFIN COVE NON-PROFIT CORPORATION
FY2006 BOARD MEMBERS
Gordy Wrobel,Chair
Patti Lewis,Vice-Chair
Jane Button,Secretary
Joe Kulavik,Member
Debbie Hemenway,Treasurer
Therese Harvey,Member
Zane Gibbons,Member
Elfin Cove Utility Commission/Community of Elfin Cove Non-Profit Corporation
Electric Utility Business Operating Plan
Appendix A-3