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Igiugig Power System Upgrade Projects in the Community of Igiugig Feb 12, 2009
CONCEPT DESIGN REPORT AND CONSTRUCTION COST ESTIMATE FOR RURAL POWER SYSTEM UPGRADE PROJECTS IN THE COMMUNITY OF: IGIUGIG PREPARED FOR: STATE OF ALASKA Se ALASKA ENERGY AUTHORITY/, 3 RURAL ENERGY GROUP A PREPARED BY: A Alaska Energy and Engineering,Inc.ie Mailing Address -P.O.Box 111405 ie ,Anchorage,AK 99511-1405 3 (907)349-0100 "d 349-8001 FAX 4 __ i Die Zhi7x94914a)pee WO:ooo y Ke f ot Shae °e CRAY 9oSWeioPREe210oiNGBireSPve\Se000 -_ February 12,20097 Igiugig Rural Power System Upgrade Project February 12,2009 Concept Desiqn Report Alaska Energy and Engineering EXECUTIVE SUMMARY This report has been prepared by Alaska Energy and Engineering,Inc.(AE&E)for the Alaska Energy Authority /Rural Energy Group (AEA/REG).The purposeofthisstudyistoprovideaconceptdesignandconstructioncostestimateforaruralpowersystemupgrade(RPSU)project in the community of Igiugig,including the renovation of the existing Igiugig Electric Company diesel powerplantandminorupgradestothepowerdistributionsystem. Participants in the projects include the Igiugig Village Council (IVC)and theIgiugigElectricCompany(IEC). In addition,an overview,preliminary cost estimate and preliminary siteassessmentforaconceptualriverin-stream energy conversion (RISEC)pilotprojectontheKvichakRiveratIgiugigareincludedinAppendixG. On Monday December 10,2007,Alan Fetters of the Alaska Energy Authority /Rural Energy Group (AEA/REG)and John Dickerson of Alaska Energy andEngineering,Inc.(AE&E)traveled to Igiugig to gather field data and to install apowermonitorinthepowerplantforpreparationofthisConceptualDesignReport(CDR)on potential energy projects in the community. The original overhead community power distribution system was replaced with anewburieddistributionsystemin1998.Existing generators No.1 and No.2 areolderunitsthatarecurrentlyoperationallyundersizedandmostlyunusableduetoimpressedreactivepowerloadsimposedbythenewburiedpowerdistributionsystem.Generator No.3 is a three year old unit that was intentionally oversizedinordertooperatewhileabsorbingthereactivepowerimbalance.The proposedpowerdistributionupgradeworkwillincludenewshuntreactorstoeliminatetheimpressedreactivepowerloadsandallowforefficientsizingofnewgenerators.With these improvements it is estimated that average annual generation fuelefficiencywillimprovefromthecurrent10.6kWH/Gal to an around 11.6 KWH/Gal.This equates to a fuel use reduction of approximately 2,000 gallons per year withfutureannualgenerationof250,000KWH. The IEC power plant was constructed in the early 1980's.The power plant'sinteriorwallsarecoveredwithunpainted,oil-soaked plywood up to a height of 8'with fire-prone vinyl-encased fiberglass batt insulation exposed above theplywoodandacrosstheceiling.The exterior metal siding is in fair to poorcondition.The proposed power plant renovation will include new insulated steelsandwichpanelsonthewallsandroof,three new generators,new automaticparallelingswitchgear,remote radiators with variable speed control,a fireHetection/ouppression system,critical grade exhaust silencers,all requiredenginecoolantandgenerationheatrecoverypipingandnewventilationequipment. The proposed power system upgrade project schedule calls for design andermittingtobecompletedbyNovember2009andforconstructiontooccurbetweenMayandAugust2010,with the new power plant fully functional bySeptember2010. The estimated cost of the RPSU project including all design,supervision,inspection,permitting,and a 15%contingency is: ©$1,095,478 (176kW @ $6,224/kW) The total installed generation capacity of the proposed new diesel power plant is176kW.The unit cost of $6,224/kW for the diesel power plant upgrade is slightlyovertheDenaliCommissionbenchmarkcostrangeof$5,500 to $3,500 perinstalledkWforOkWto200kWcapacitypowerplants. Igiugig Rural Power System Upgrade Project February 12,2009 Concept Design Report Alaska Energy and Engineering INDEX EXxeCUtive SUMIMALY .......ccccccccssecesseeecseeceseesessereeseeesseesecausessenersensceeesaseteneness Page i INGOX eeeeecicceccessccecesesssseenenececescsenseeeeseeseeeeeeeeseeeneceaeeerereeeeneateetensenieneesesseeaeaes Page ii 1.0 INtrOGUCTION 2.0...ccctecceceececeeeeeeeetensteneneaeaeeeuenuaneeneuceseceseeeneneeneasaeaeanees Page 1 1.1 Program OVErVieW........cece cccssesesseceereesseeeeseaeteessaneesersueeesseaess Page1 1.2 Community DeSCrIPtiON 20...eee cece eeeneeeeeeeeeeteeeneereeseneeesenenes Page 2 1.3 Site InVeStigation ...........ceieeeeseeeseneeeeeeereeeressueeeescseuesereeeaeeeesenees Page 3 1.4 Code Analysis &Deficiencies 0.0.0.0...cece cecseeeresseeeeereeneeeneenene Page 3 2.0 Existing Facilities 0.0.0...ceecceeneeeeeeresssseeseeseesssaneneceseseeeeeeersseaneneeess Page 4 2.1 Power Plant ........cccceceeeeeessnenecneneeeeeneneneeeeeeeesessenecesengeasanennenseseenes Page 4 2.2 Power Distribution ...............:::c:csceceeceeeeeeecenenenaneuasseceteeeneesereeereeeeees Page 4 2.3 Heat RECovery SYStOM.....ceeeseeseeerereeeeesesssetenseeuessesseenseaeteenes Page 5 3.0 Community Power Demand .............eeeeeceeeeeseeeteceseeeseseneeenseeeseeanentens Page 5 3.1 Estimated Future Load Growth.........cccccccssessseecescesssseneesessseneness Page 5 3.2 Alternative Energy/Efficiency Improvement .............ccccsceseseeeees Page 6 4.0 Proposed Project DeSCTiptions 2.0.0.0...ee ee ceseeeeseresesneeenteessseeeeeees Page 7 4.1 Diesel Power Plant Renovation ..............cc cccesseseeeeteesereeneeeseeeensaees Page 7 4.1.1 Generator Selection ..........ececeesesseeeeenerereeeeeseesseesessnseeseenenes Page 7 4.1.2 Switchgear &SCADA...eceeeeeeeeeceeseeeetesenesssensesessaeeeeenes Page 8 4.1.3 Power Plant Fuel System .......c.::ccccesscseeeeeeeeseneenereneeseeeeeenene Page 8 4.2 Power Distribution Upgrades ..............:::csesesesereneeseseseeeseeserenereeaenens Page 8 5.0 Site Selection &Control ..........cccccccscccesccceeseeeeseseseeseeeseecnneeeeeseseeeeeseesene Page 9 5.1 Power Plant Site ............cccccceseseseseseeeeeceneeeeeeeseseesenessanenseeeseseneeeas Page 9 5.2 Igiugig Landfill Site...lee cseteerceeccesenesseeterseeeseessseeesensessaees Page 9 5.3 Kvichak River Hydrokinetic Power Pilot Project Site...Page 9 5.4 Site Control oo...ccccscssessssssesssenereeereeeeseeeaeeeeeseesensesseesereeseneeeneess Page 9 6.0 Permitting and Spill RESPONSE 0.0...ce eeeteeeeeseeeeesteeeeesteeeteeteeeeetenenes Page 10 6.1 Environmental ASSESSMENT .......eee eceeecceeeeseneneesenseenenetesenenserees Page 10 6.2 Fire COdC.....cc ccccccccccccceceeeceseeeetereenscnaaeaeanaesseeneneneseeseesssssasaaeeenens Page 10 6.3 Spill RESPONSC..........ce ceeecsesceeeeeesetenecseeesteeessaessseeenseesseeeereneentanes Page 10 7.0 Construction Plan........cccccccccccesssceeeesessenceessesssseeeeseseseseasereesesssanneneeeea Page 11 7.1 Local JOD SKINS ...........cccceccesescceeeeeesesneenessesesseceeesseeseenaeeeesensenseeees Page 12 7.2 Local Equipment...........cc ceccssseseesseesseseneeeseeesnersetteerereneneeteneneees Page 12 7.3 Material SOUPCES............ccccccesseereteeeeneneneeeetensesesssseeesaseseeeneeeeeenenensy Page 12 Igiugig Rural Power System Upgrade Project February 12,2009 Concept Design Report Alaska Energy and Engineering 8.0 RPSU Project SCHEdUIe o.oo.cece ee eteeeeeeree tresses eteseeeneeseeeeteeeeneees Page 13 9.0 RPSU Project Cost Estimate ............eceessseeeeeerereeeeseeseseeeserenensnenenees Page 13 Concept Design DrawingS..........:.cccsccsesesseeeseeteeseesteseessenesensenseeteseeeens Appendix A Construction Cost Estimates ..........cccccccceccececeeetereteseeeeensensusauneneneneceeeeees Appendix B Site Control DOCUMENTS ..........::::ccceesensscceeeeeeceeeeeeeeeeserereeeereetsasauensanaas Appendix C Electrical Data ...........ccccssscccccseesseeceeeresseneeeeeesensnneeeasesssessseeusersessneaeeas Appendix D Community Correspondence ..........ceccessessseceeseesseeessrersseeessseseesesenntess Appendix E Wind Energy Screening REPort.........ccceccccsesssseeeesnereeeesreeeesseeeeseneeeens Appendix F Potential Kvichak River RISEC Project .............:es ececcssssesereseseesereeeeeneas Appendix G iii Igiugig Rural Power System Upgrade Project February 12,2009 Concept Design Report Alaska Energy and Engineering 1.0 INTRODUCTION This report has been prepared by Alaska Energy and Engineering,Inc.(AE&E)for the Alaska Energy Authority/Rural Energy Group (AEA/REG).The purposeofthisstudyistoprovideaconceptdesignandconstructioncostestimateforruralpowersystemupgrade(RPSU)projects for the community of Igiugig,including the renovation of the existing Igiugig Electric Company diesel power plant and minor upgrades to the power distribution system. Participants in the projects include the Igiugig Village Council (IVC)and the Igiugig Electric Company (IEC). In addition,a copy of the Alaska Energy Authority Renewable Energy Fund grant application (without appendices)for a conceptual river in-stream energyconversion(RISEC)pilot project on the Kvichak River at Igiugig is included as Appendix G. 1.1.Program Overview The Alaska Energy Authority (AEA),Rural Energy Group is pursuing grant funds to upgrade rural bulk fuel tank farms and electric power systems.All project components are dependent on available funding.Following is a brief outline of the program: e Most of the funds are federal and provided through the Denali Commission (DC).Other federal funding may be available from HUD (ICDBG)and the Environmental Protection Agency (EPA).Additional funds may be available from the State of Alaska,USDA,and loan financing. e In order to receive grant funds,each community must demonstrate that the proposed facility will be sustainable by accepting a business plan.The business plan shall describe who will own the facility,and how it will be operated,maintained and replaced. e New energy projects are funded,designed,and constructed in three phases: Phase 1,Conceptual Design;Phase 2,Design Completion;and Phase 3, Construction. e During Phase 1,Conceptual Design,staff from AEA will visit a community,discuss the program,and work with residents and the local government to select sites for the new facilities. e At the completion of Phase 1 Conceptual Design,the community will berequestedtoreviewandapprovethelocation,capacity,and basicconfigurationofthefacilitiesaswellasadraftbusinessplan. e During Phase 2,Design Completion,the design for the new energy projectswillbecompleted.An environmental assessment will be prepared and sitecontroldocumented.A business plan will be prepared for signing. e Each community will be requested to provide "in kind”contributions.Typicalcontributionshaveincludedcrewhousing,use of heavy equipment,etc.. e Project may include local hire and construction trade training programs,subject to Denali Commission funding. e If the Denali Commission approves the business plan it will be circulated for signature and construction procurement will start. e Ineligible Projects:Funding is not available through AEA for buildings,propane facilities,fuel tank trucks or trailers,fuel to fill the tank farm,operation &maintenance costs,or residential tank upgrades.Loans for fueltanktrucksandtrailersmaybeavailablethroughUSDA. e Training Available:AEA has several training programs available forcommunities.For more information contact Monica Moore at (907)771-3026 or mmore@aidea.org. 1 Igiugig Rural Power System Upgrade Project February 12,2009 Concept Design Report Alaska Energy and Engineering 1.2 Community Description Igiugig is located on the south shore of the Kvichak River,which flows from lliamna Lake,on the Alaska Peninsula.It is 50 air miles northeast of King Salmon and 48 miles southwest of lliamna.Igiugig is located in the lliamna Recording District.The area encompasses 19.8 sq.miles of land and 1.3 sq.miles of water.Igiugig lies within the transitional climatic zone.Average summer temperatures range from 42 to 62;winter temperatures average 6 to 30.The record high is 91,and the record low is -47.Precipitation averages 26 inches annually,including 64 inches of snow. LOCATION MAP SECTION 08,T10S,R39W LAT:59.33"NORTH SEWARD MERIDIAN LONG:159.89"WEST FAIRBANKS, PROJECT LOCATION GUGG ANCHORAGE ss a *"e af °pwr;-;4ned *a "a"oS aeEPeMPAte Igiugig Rural Power System Upgrade Project February 12,2009 Concept Design Report Alaska Energy and Engineering 1.3.Site Investigation On Monday December 10,2007,Alan Fetters of the Alaska Energy Authority /Rural Energy Group (AEA/REG)and John Dickerson of Alaska Energy andEngineering,Inc.(AE&E)traveled to Igiugig.The purpose of this site visit was togatherfielddataandtoinstallapowermonitorinthepowerplantforpreparationofaConceptualDesignReport(CDR)on potential energy projects in the community. Prior to the field investigation,available information was obtained and analyzed,including aerial photographs,community profile,survey plats,engineeringstudies,Corps of Engineers Wetlands and flood information,and other relevantdata.In addition,available information was obtained and analyzed from the following sources: e lIgiugig Power Cost Equalization (PCE)data,FY2005-2007 e AEA Rural Utility Circuit Rider Field Trip Report e 2003 Bulk Fuel Upgrade Project Record Drawings Community contacts: e Dallia Andrew,President,Igiugig Village Council (907)533-3211 e Bonnie Thurston,Administrator,Igiugig Village Council (907)533-3240 1.4 Code Analysis &Deficiencies The following is a summary of existing power plant code analysis anddeficienciesobservedduringthesiteinvestigations. e High capacitance of buried distribution system combined with lack of shuntreactorsplaceslargereactivepowerloadongenerators. e Existing oversized,inefficient main diesel genset -poor efficiency,expensive to maintain and operate. e Excessive black smoke indicates under-loaded generator. e Manual paralleling switchgear only. e Exposed interior viny!l-encased fiberglass batt insulation absorbs oil vapors,isdifficulttocleanandisapotentialfirehazard. e No operational fire suppression system The concept design has been prepared to meet current code and regulatory requirements,which include: e The 2006 Edition of the International Building Code (IBC). e The 2006 Edition of the International Fire Code (IFC)and currently adopted Alaska State Fire Marshal Fire and Safety Regulations. e The 2005 Edition of the National Electrical Code (NEC). e The 2007 Edition of the National Electrical Safety Code (NESC). e 40 CFR,Part 112.1-12,U.S.Environmental Protection Agency Spill Prevention Requirements Igiugig Rural Power System Upgrade Project February 12,2009 Concept Design Report Alaska Energy and Engineering 2.0 EXISTING FACILITIES The existing power plant and electrical distribution system were visuallyexaminedtodeterminesuitabilityforre-use.The following paragraphssummarizefindingsforthecommunity. 2.1 Power Plant The power plant was constructed in the early 1980's.It is centrally located in the town site near the airport and community buildings.The building is a 20'Wx40'L metal-sided,pre-engineered steel frame structure on a concrete slab that houses three generators and a wood frame parts/work room with mezzanine for light storage.The interior walls are covered with painted plywood up to a height of 8' with vinyl-encased fiberglass batt insulation exposed above and across the ceiling.The exterior metal siding is in fair condition but the exterior surface is faded with black soot stains apparent near exhausts and building penetrations. The interior batt insulation appears dirty and oily in some locations.The concrete foundation and steel structure appear to be in good condition.The double door in the exterior east facing wall is rarely used and allows rain and snow to beblownintothebuildingduetoprevailingeastwindsblowingoffLakelliamna. There are three generators currently installed in the power plant.Unit #1 is a John Deere 4045D with a capacity of 50kW.This unit is not large enough to absorb the distribution system's reactive power and can not be used at this time. Unit #2 is a John Deere 4045T with a prime capacity of 75kW.Unit #2 is rarely used but is able to accommodate the reactive power load under low demand conditions.Unit #3 is a John Deere 6059T with a prime capacity of 110kW.Unit #3 is the main generation unit and has been run approximately 90%of the time for the past 3 years.All of these units are nearing the end of their useful lives and are in need of replacement. Engine cooling is with three remote radial style radiators mounted high on thebuilding's exterior north facing wall.Each generator is on a stand-alone coolingsystemwithasingleradiator.All of this equipment appears to be original and is near the end of its useful life Power generation is at 277/480V three-phase.Individual manual generatorswitchcabinetsaremountedonthesouthwallofthegeneratorroom.The community feeder is through a three-phase meter base with 125A breaker.Astationservicetransformerfeedsameteredsinglephaseloadcenter. 2.2.Power Distribution Community power distribution is through a single 112.5kVA 7200/12.47kV 3-phase step-up transformer located within the fenced area adjacent to the power plant. The step-up transformer was installed new in 1998 as part of a communityelectricdistributionupgradeproject.The purpose of the project was to convertallprimarydistributionthroughoutthecommunityfrom480Voverheadto7.2/12.47kV underground.The standard REA distribution voltage was chosen inordertoensureavailabilityoftransformers.It was noted at the time that shuntreactorswouldlikelyberequiredifthesystemexpandedduetothereactivecapacitanceassociatedwithlongrunsofmediumvoltageundergroundcableinlightlyloadeddistributionsystems.In 2001 a 1.5 mile long road and burieddistributionextensionwascompletedtothenewcommunitylandfillsite.Sincetherewerenosecondaryservicesalongthedistributionextensionthelinewasnotenergizedatthetimeofcompletion.The buried extension was finallyenergizedin2003whenthetelephoneutilitymodulewasmovedtothelandfill 4 ' Igiugig Rural Power System Upgrade Project L.-_February 12,2009 Concept Design Report Alaska Energy and Engineering site.None of the three existing 45-60kW generators could then accommodate the system's increased reactive load so the AEA assisted the community byprovidinga110kWgeneratorforimmediateinstallationinthepowerplant.Theconsequencesofcontinuingtooperateanoversizedgeneratortocompensateforthehighcapacitivereactancecanbeseeninthepooraveragegenerationefficiencyof10.7 kWh/Gal experienced over the past three years.Monthlyefficienciesaslowas9.1 kWh/Gal were experienced when loads were light.In addition,heavy black staining on the exterior power plant walls indicates that the generator has been operating at low efficiency.See monthly generationefficiencygraph,Appendix D,Graph 4.Correcting the reactive load inconjunctionwiththeselectionofproperlysizedgeneratorsshouldincreasegenerationfuelefficiencytoaround11.6 kWh/Gal,an approximate 10% improvement.This equates to a fuel use reduction of around 2,000 gallons per year with future annual generation of 250,000kWH. Except for the previously mentioned items,the community buried distributionsystemisinverygoodconditionandnootherdistributiondeficiencieswere identified. 2.3.Generation Heat Recovery System The clinic,washeteria and community building are currently served by generation heat recovery from the power plant.Power plant equipment consists of individual shell and tube heat exchangers installed in each of the generator's stand-alonecoolantsystems.A pair of 3"steel arctic pipes penetrate the east exterior powerplantwall,drop below ground and run approximately one hundred and fifty feet to the washeteria.Heat recovery equipment located in the washeteria includes the main circulation pump as well as a shell and tube heat exchanger for washeteria hot water production and well water treatment pre-heat.A secondary loop forclinicandcommunitybuildingheatconnectsdownstreamofthewaterplantheat exchanger. The entire heat recovery system,including arctic pipe and equipment,is nearingtheendofitsusefullifeandshouldbereplacedsoon.However,a new relocated clinic and washeteria/water treatment plant are currently in the planning stages and will likely be constructed within the next two to three years.Therefore noworkisplannedfortheheatrecoverysystemoutsideofthenewpowerplantatthistime.See Section 4.1 for planned new generation heat recovery work at the power plant. 3.0 COMMUNITY POWER DEMAND Power production data was obtained from the Power Cost Equalization (PCE)program for fiscal years 2005 through 2007.Graphs are included in Appendix D.During these years the annual load averaged around 25kW and annual fuelconsumptionaveragedaround21,000 gallons.Monthly peak demand in FY2007rangedfromalowof32kWinMaytoahighof52kWinJanuary. 3.1 Estimated Future Load Growth It is important to evaluate the impact of planned infrastructure improvementprojectsonanexistingpowergenerationsystem.New construction and othercommunityimprovementscanadverselyimpacttheadequacyofexisting facilities. Steady growth in Igiugig's summer peak loads and annual generation are likelyovertimeduetoexpectedincreasesintourismaswellasplannednew 5 Igiugig Rural Power System Upgrade Project February 12,2009 Concept Design Report Alaska Energy and Engineering developments including a clinic,water treatment plant and subdivision development. In 1983 IEC successfully supplied power to several lodges near Igiugig after installing a submarine cable across the Kvichak River directly below the powerplant.However the cable was left in over the winter,was taken out by the ice inthespringandwasneverreplaced.These lodges have recently approached IECaboutresumingthisservice.With better boats and equipment available in thecommunitynow,IEC is considering a seasonal service with the submarine cableremovedeachyearpriortofreeze-up.It is projected that this additional seasonal load would cause summer peak and monthly demand to approach the current winter loads. Based on these factors,it is estimated that annual generation requirements will grow to over 250,000kWH and peak demand loads could reach 65kW to 75kW within five years. 3.2 Alternative Energy/Efficiency Improvements Careful sizing and selection of new generators with advanced technology in conjunction with the installation of new fully automatic paralleling switchgear andacontinuousoff-line engine preheat system will likely improve the fuel efficiency of the renovated power plant by 10%over the existing plant. The use of marine jacketed (water cooled exhaust manifold)engines for all three new generators will maximize generation heat recovery potential.The engines proposed for this project are EPA Tier 2 certified units.Current EPA regulationsrequiredieselenginesusedforpowergenerationtobeTier3certified.The AEA, in conjunction with the Alaska Department of Environmental Conservation,has submitted an alternative implementation plan to the EPA that will allow use of Tier 2 Marine engines in rural power generation applications. The Alaska Energy Authority/Alaska Industrial Development and Export Authority published a draft Rural Alaska Energy Plan dated December 31,2002 as afollow-up report to the previously released Screening Report of Alaska RuralEnergyPlandatedApril2001.The Screening Report evaluated a dozenalternativeenergytechnologiesotherthandieselengineheatrecovery.OnlywindenergywasidentifiedasalternativeenergytechnologywarrantingfurtherevaluationinthedraftRuralAlaskaEnergyPlan.According to the Alaska WindResourceMapthecommunityofIgiugigislocatedinaclass1-3 wind regime andisnotaviablecandidateforawindenergyprogramusingcurrentlyavailable technologies.A Wind Energy Screening Report for Igiugig was prepared byAEA/REG Wind Energy Program Manager Martina Dabo and is included in Appendix F. A copy of the Alaska Energy Authority Renewable Energy Fund grant applicationformforapotentialriverin-stream energy conversion (RISEC)project on theKvichakRiveratIgiugigisincludedasAppendixG. There are no other known practical energy sources,such as solid fuel,biomass,or natural gas currently available at Igiugig.It appears that the RISEC project istheonlypotentiallyviablealternativeenergygenerationoption.The RISECsystemwillnotbeabletoprovidecontinuousprimepowersoadieselplantwillstillbetheprimarysourceofelectricalenergy.Improved diesel generationefficiencycombinedwithoptimizedheatrecoveryandadditionalend-useconservationarethemostviablefuel-saving technologies available for Igiugig. Igiugig Rural Power System Upgrade Project February 12,2009 Concept Design Report Alaska Energy and Engineering 4.0 PROPOSED PROJECT DESCRIPTIONS The following proposed project descriptions are separated into two sections: e Section 4.1,"Diesel Power Plant Renovation",describes proposed upgrades to the existing IEC power plant -including generation equipment,switchgear and controls. e Section 4.2,"Power Distribution Upgrades"describes the proposedinstallationofshuntreactorsforburieddistributionpowerquality improvement. 4.1 Diesel Power Plant Renovation Historically,the IEC diese!power plant has been the sole source of powergenerationforIgiugiganditwillcontinuetobetheprimepowersourceevenif other alternative energy projects are developed. The following proposed upgrades are intended to modernize the existing IECpowerplantandtoimprovetheoverallfuelefficiency,reliability,fire prevention/protection and operations at the facility: e Replace all three existing generators utilizing marine jacketed units for maximum generation heat recovery. e Replace existing switchgear and relays with new programmable automatic paralleling switchgear with load sharing capabilities set up for possible integration of alternative energy generation. e Remove existing siding/roofing and interior fiberglass batt insulation.Replace with new insulated sandwich panels on walls and roof. e Replace existing exhaust silencers with new interior mounted critical gradesilencersonallthreegenerators. e Replace existing ventilation equipment with sound-insulated air intake and exhaust fan ducting. e Replace existing radiators with new radiators and variable speed drives. e Replace existing engine coolant manifold and heat recovery system with newsystemincludingthermostaticvalve,brazed plate heat exchanger forimprovedefficiency.Install energy meter for system monitoring. e Install new fire detection and suppression system. e Provide sound insulated control room with unit heater. e Reuse existing fuel supply pipeline,day tank and control panel. See drawings M1 through M4,Appendix A for all power plant work. 4.1.1 Generator Selection Proper sizing and selection of the diesel generators is critical to meet the electricloadswhileminimizingfuelconsumptionandmaximizinggenerationheatrecovery.Based on the projected loads it is proposed to install two identical67kWprimecapacityunitsandone42kWprimecapacityunit. Benefits of these new generators include: e Two identical units each capable of meeting the current peak load.Onesmallercapacityunitcapableofmoreefficientoperationatlowerloadsincludingoperatinginparallelwithpossiblefuturealternativeenergy generation. e Paralleling switchgear would allow any two units to be operated in parallel tomeetanylargefuturepeakload. Igiugig Rural Power System Upgrade Project February 12,2009 Concept Design Report Alaska Energy and Engineering e All engines are marine configuration (water cooled exhaust manifold)to provide additional generation heat recovery and quiet operation. e Commonality of parts between all units. 4.1.2 Switchgear &SCADA The switchgear will be 480-volt metal-clad switchgear with draw-out circuitbreakersconsistingoffiveseparate30”W x 35”D x 90"H sections.There will beonesectionforeachofthethreegeneratingunits.The upper compartment will house the generator controls and relays and the lower compartment will house the circuit breaker and contactor.There will be one separate master section with the main controls and metering.There will be a separate feeder section with variable frequency drives (VFD's)for radiator control in the upper portion,themainfeederbreakerinthelowerportionandablanksectionprovidedinthe mie to accommodate the future installation of alternative energy input andcontrol. The new switchgear will provide automatic paralleling and load control of thethreegeneratingunits.The load control system will monitor the electrical demand on the generators and provide automatic selection of the generating unit or combination of generating units to meet the demand.The switchgear will automatically start the engine,bring it up to speed,automatically synchronize the unit,and close the contactor.When a unit is taken off line,either for maintenance or due to a reduction in electric load,the switchgear will automatically remove the unit from the bus and allow the engine to cool down before shutdown.Generation controls and relaying will provide complete protection and monitoring of each engine and generator. An Operator Interface Unit (OIU)in the master section will give the plant operator access and control of the different systems.The system will also be equipped with a supervisory control and data acquisition (SCADA)system which will allowremoteaccessviatheinternettoenabletechnicianstoassistthelocal powerhouse operators remotely. 4.1.3 Power Plant Fuel System A buried 2”schedule 80 welded steel HDPE coated day tank supply pipeline with cathodic protection as well as a 100 gallon day tank equipped with suction pumpandautomaticcontrolswereinstalledatthepowerplantaspartofthe2003bulk fuel upgrade project.These items will be retained and reused.The day tank willfillautomaticallyasrequiredtomeetpowergenerationdemand.The existingactuatedballvalvelocatedattheconnectiontothetankfarmdiesel fill/withdrawal manifold is interlocked with the day tank control panel to preventaccidentaldischarge.Tank farm manifold valving allows for the selection #2dieseltosupplythepowerplantdaytankundernormalconditionswiththeoptionofswitchingto#1 diesel during extreme cold temperatures.Therefore no heattracingorinsulatingoftheabovegroundportionofthedaytanksupplypipelineis required. 4.2.Power Distribution Upgrades As discussed in section 2.2 of this report,the existing buried distribution systemsuffersfromanexcessofreactivepowerthatmustbeabsorbedbythegenerators.This is currently being addressed by operating with an oversized(110kW)generator.In order to size the new generators to best matchcommunitydemandandtoprovidemaximumgenerationefficiencytheinstallationofnewshuntreactorsmustbeincludedinthisproject.It is estimated 8 Igiugig Rural Power System Upgrade Project February 12,2009 Concept Design Report Alaska Eneray and Engineering that three each 15kVAR shunt reactors will be required.These will be installed at the Igiugig landfill site,located at the far end of the buried distribution system. 5.0 SITE SELECTION &CONTROL Work for this project will be performed in three general areas:(1)The "Power Plant Site”;(2)The "Igiugig Landfill Site";and (3)The "Kvichak River RISEC Pilot Project Area”.There are no known flood hazards at any of these locations. 5.1 Power Plant Site The power plant site is entirely contained within Tract H-2,Igiugig Community Facilities Subdivision,as shown in Appendix A,Sheet M1. 5.2 Igiugig Landfill Site The lIgiugig landfill site is located within Section 18,T010S,RO39W,Seward Meridian,on approximately 10 acres as described on the quitclaim deed filed in the lliamna Recording District,12/19/2001. 5.3 Kvichak River Hydrokinetic Power Pilot Project Area The proposed hydroelectric site is located near the south shore of the Kvichak River in the "cut bank"area directly adjacent to the IEC power plant, approximately 0.2km below the outlet of Lake lliamna.See Appendix A,Sheet M1 and Appendix G. 5.4 Site Control As part of the 2003 Igiugig BFU upgrade project,the power plant site was subdivided and the Igiugig Community Facilities Subdivision plat filed in the lliamna Recording District on December 29,2004.The subdivision created Tract H-2,within which the power plant and tank farm are located. A Site Control Opinion for the power plant area was prepared by Rick Elliott, Land Consultant,dated January 28,2008.A copy of the Site Control Opinion is included in Appendix C.The Opinion indicates that the surface estate of Tract H- 2,power plant site,is owned by the State of Alaska,Department of Community, Commerce and Economic Development,in trust for a future city in Igiugig.The Igiugig Village Council has a long-term lease from the State for the power plant site. The Igiugig Landfill Site surface estate is owned by the Igiugig Village Council, quitclaimed from the Igiugig Village Corporation in partial fulfillment of its ANCSA 14(c)reconveyance requirements,as recorded in the lliamna Recording District on December 19,2001 The Kvichak River is a navigable water and is under the management authorityoftheStateofAlaskaDepartmentofNaturalResources(DNR).Site control fortheKvichakRiverhydrokineticpowerpilotprojectwillrequireaDNRpermitforinitialprototypetesting,and may likely require an Alaska Tideland Survey for long term use. Igiugig Rural Power System Upgrade Project February 12,2009 Concept Design Report Alaska Energy and Engineering 6.0 PERMITTING AND SPILL RESPONSE The proposed projects are subject to regulations of both State and FederalagenciesincludingtheAlaskaCoastalManagementProgram,the AlaskaDepartmentofEnvironmentalConservation(ADEC),the Division of FirePrevention,and the U.S.Environmental Protection Agency.In addition,a Kvichak River RISEC pilot project would be subject to U.S.Army Corps ofEngineers,Alaska Department of Natural Resources (DNR),Alaska DepartmentofFishandGame(ADF&G)and the Federal Energy Regulatory Commission(FERC)regulations as well as tideland survey requirements.FERC has recentlyadoptedtheHydrokineticPilotProjectLicensingProcesstodefineandstreamlinepermittingrequirementsfortheseprojectsaswellastoallowforpowerproductionandsalesduringpilotplantoperation,testing and monitoring. 6.1 Environmental Assessment An Environmental Assessment (EA)will be completed prior to construction of the proposed projects.An EA is required for all projects that are federally funded or require a federal permit (such as a Corps of Engineers Wetlands Permit).The EA determines whether there is a significant impact to the environment caused by the project.As part of the EA,a Coastal Zone Management Project Questionnaire will be completed and submitted to the Alaska Coastal Management Program.The Coastal Zone Management Project Questionnaire helps to identify state or federal permits that may be required. 6.2 Fire Code A Plan Review permit from the State Fire Marshal is required for the proposed diesel and hydrokinetic power plant projects.Final stamped design drawings will be submitted to the Fire Marshal for review prior to construction.Plans will be reviewed for conformance with the International Fire Code and related codes including the International Building Code and the National Electrical Code.The review process can take anywhere between 3 weeks to 6 months. 6.3 Spill Response Because the power plant is co-located with the bulk fuel tank farm which has oilstoragetanksinexcessof1,320 gallons and receives delivery from marinevessel,the site is subject to U.S.Environmental Protection Agency and U.S.Coast Guard regulations.The existing Coast Guard and EPA plans will bereviewedandupdatedaspartofthisprojectifnecessary. 10 Igiugig Rural Power System Upgrade Project February 12,2009 Concept Design Report Alaska Energy and Engineering 7.0 CONSTRUCTION PLAN The AEA/REG has a history of administering similar projects on a "modified"force-account basis.Force-account construction involves the owner or grantee acting as the employer and utilizing primarily local labor.This method tends to achieve a higher percentage of local hire and is strongly supported by manycommunitiesandfundingagencies.The highly technical nature of power generation and distribution projects requires a limited number of workers with specific experience and expertise to be brought in for the project when not available locally.All work must be supervised and managed by a superintendent with extensive experience in the construction of rural power generation and distribution systems.All specialty work,such as pipe welding and electricalinstallationmustbeperformedbyskilledcraftsmenwithappropriatecertifications. An experienced construction manager will be required to recruit the necessary skilled labor,coordinate the construction team,and oversee procurement and project logistics.The design engineer will provide quality control through communication with the construction manager and periodic on-site inspections. The construction plan and schedule must take into account freight delivery schedules and other factors.Line-haul barge deliveries originating in Seattle or Anchorage and delivering to ports in Bristol Bay do not usually make it into Lake lliamna until early August.If water levels in the Kvichak River are low there is a risk that materials delivered via this route would not be deliverable to Igiugig that year. Materials and equipment less than 12'in width can be trucked from Williamsport on Cook Inlet to Pile Bay on Iliamna Lake and then moved to !giugig on the flexi-float barge operated by Illiamna Lake Contractors (ILC).This route would be available as soon as the ice is out on lliamna Lake,usually no later than the second week ofune. The Igiugig airport has a 3,000'long gravel runway.This is adequate for many charter freight aircraft,including the Casa,DC-3,DC-4 and Sky Van.Air freight ismoreexpensivethanbargefreight(between $.60 and $1.00 per pound)but it provides greater scheduling flexibility and the ability to start construction earlier inthespring.By starting earlier in the spring there will be more labor available priortothefishingseasonandalsotheopportunitytotakeadvantageofbetterweather.Depending on the severity of the winter it should be possible to begindemolitionworkinMay.Air delivery of a portable generation module and requiredtoo!spread will allow power plant demolition work to begin prior to break-up.Theportablegenerationmodulewillbeusedtoprovidepowertothecommunityduringdemolitionandrenovationofthepowerplant.This will require a planned community power outage to connect the module to the distribution system. Only the portable generation module and tool mobilization are scheduled to bedeliveredbycharteraircraft.The shunt reactors may also need to be installed atthistimetoensureproperoperationoftheportablegenerator. All other materials and supplies will be delivered by landing craft to WilliamsportacrossCookInletfromHomer,by truck from Williamsport to Pile Bay on LakelliamnaandthentoIgiugigbyflexi-float barge.Both project cost estimates andtheprojectscheduleshavebeendevelopedonthisbasis. 11 Igiugig Rural Power System Upgrade Project February 12,2009 Concept Design Report Alaska Energy and Engineering 7.1 Local Job Skills A request was previously sent to the community for information regarding the availability of specialty skilled labor in Igiugig.The following table summarizes the results: Skilled Trades Number Available Project Superintendent 2 Certified Welder 1 Welder Helper 1 Journeyman Electrician 2 Journeyman Carpenter 1 Heavy Equipment Operator 13 Dump Truck Driver 13 Heavy Equipment Mechanic 2 In addition to the specialty trades listed,there are a number of experienced general laborers. 7.2.Local Equipment An inventory of local heavy equipment is provided in the following table: Unit Model #Owner 20yd Caterpillar Articulating End Dump Truck D300E ILC Numerous 10/12yd end dumps ILC Caterpillar Dozers D7,D6,D4 ILC John Deere Dozers with Backhoes (2 each)450 ILC Caterpillar Loader w/Bucket_&Forks 966C &950G ILC Caterpillar Excavators 330 &220 ILC 1973 Cemco Rock Crusher Turbo 54 ILC Pioneer Rock Screening Plant ILC 1997 Champion 10 Ton Compactor 10T ILC 1997 Mack 8 Yard Cement Truck ILC 1998 Lincoln Ranger 9 Arc Welder ILC 2000 Pow Con Arc Welder ILC 40'Boom Truck ILC 15,000Ib Crane ILC The Equipment is all in good to excellent condition and is adequate for the workinvolvedinthisproject.There should not be a need to mobilize any other heavy equipment. 7.3.Material Sources Pit run gravel is available from a local gravel pit near the Igiugig landfill site.TheBristolBayNativeCorporationownstherightstothegravelandhascharged$3/cubic yard in the past.Crushed and screened grave!as well as concreteaggregateisavailablelocallyfromILC. 12 Igiugig Rural Power System Upgrade Project February 12,2009 Concept Design Report Alaska Energy and Engineering 8.0 RPSU PROJECT SCHEDULE The following schedule has been developed on the basis of performing the majorityoftheworkonthepowerplantrenovationandpowerdistributionupgradeportionsoftheprojectduringSpring/Summer 2010 to take advantage of the best seasonalweatherformostwork.The schedule could be adjusted as required to accommodate funding availability. e Aug-Nov 2009:Design and permitting. e Nov 2009 -Feb 2010:Order generators,switchgear,reactors,etc. e May 2010:Airplane mobilization and building demolition. e June-Aug 2010:Barge delivery and project construction. e Sep 2010:Project completion,power plant commissioning &operator training. e Nov 2010:O&M manuals and project close out. 9.0 RPSU PROJECT COST ESTIMATE This construction cost estimate has been developed based on a "modified"force- account approach utilizing a combination of local labor,certified craftsmen,andspecialtysub-contractors under the direction of an experienced construction manager.Labor rates are based on Title 36 equivalent wages for certified specialty labor and prevailing local force-account wage rates for general labor and equipment operation. A detailed cost estimate is included in Appendix B.The Power Plant Renovation and Power Distribution Upgrade project descriptions have been combined into one RPSU project cost estimate as all work will be performed by the same crewduringthesameconstructionperiod.The estimated total project cost includingdesign,supervision,inspection,permitting and a 15%contingency is: ©$1,095,478 (176kW@$6,224/kW) The total installed generation capacity of the proposed new diesel power plant is176kW.The unit cost of $6,224/kW for the diesel power plant upgrade is slightlyovertheDenaliCommissionbenchmarkcostrangeof$5,500 to $3,500 per installed kW for OkW to 200kW capacity power plants 13 APPENDIX A CONCEPT DESIGN DRAWINGS |WASHETERIA PARCEL 95-19|!os!IGIUGIG VILLAGE COUNCIL x |x=Qo '\= s _-. FS !APPROX.LOCATION OF BURIED =LoT H-1 HEAT RECOVERY PIPELINES LOT HS po. \ yeu V COMMUNITY STEP-UPFILLTRANSFORMER a FACILITY SEE ENLARED AREA PLAN,SHEET M2 FOR ALL WORK THIS AREA . PROPOSED ! KVICHAK RIVERIN-STREAM WAiENERGYVEHICLE WN1CONVERSIONDISPENSING (RISEC)PILOT AREAPROJECTSITE ! ' ' I !EXISTING POWER -LOT H-2 PLANT &TANK FARM IGIUGIG COMMUNITY FACILITIES SUBDIVISION SITE BOUNDARY fe- TRACT G MUNICIPAL LAND TRUST .DRAWN BY:SCNE:1°=50"PANES IGIUGIG POWER SYSTEM UPGRADE = 4,Deportpent of Community ond Esonomic DevelopmentDESIGNEDBY:pare:2/12/09 *,Re AIDEA/AEA SKATME:FILE NAME SHEET OF ED.813 West Northery Lighted fBA\'"A TyAREA/PROPERTY PLAN iciupp-cor IM 1 4 +e hecho,Monks 9503 vee REROUTE EXISTING BELOW GROUND CIC FROM SERVICE -_-----_--_------_-_-_- | METER TO RELOCATED TANK -| FARM CONTROL PANEL a >| -]| pS |\ RELOCATE TANK FARM -CONTROL PANEL,AREA LIGHTS ;/AND RECEPTACLE FROM n<| NORTHEAST CORNER OF we J P-| POWER PLANT TO NEW l LOCATION ADJACENT TO DIK \J)l -- Sw_||ft L +t J |-----| 5 (| |NEW BURIED ||FEEDER TO|EXISTING |EXIST EXIST EXIST j 112.5KVA 38 24,600]|24,600||24,600 COMMUNITY GALLON}|GALLON||GALLON |STEP-uP Pooky|P-|DIESEL||DIESEL||DIESEL |TRANSFORMER l TANK TANK TANK || v8 V7 V6 | EXISTING CONNECTION --11 | TO DIESEL TANK Ra ee |SEE SHEETMANIFOLDWITHlari"|M3 FOR ALLACTUATEDBALLVALVE|DEMOLITIONANDPIPELINEFILTER|AND SHEET |M4 FOR ALL l NEW WORK AT POWER a PLANT ROUTE NEW BURIED -7---+-| CONDUIT TO |[_-=--$_|RELOCATED TANK =X TO ||H FARM CONTROL |PANEL |I p |!raNel;v7 4-- =-6-NS h h ,Pa 7 27|__=420'GEE Wile nee ¥Pane 2 ¥EXISTING 2”POWER PLANT DAY WATANKSUPPLYPIPELINEAND1” CONTROL CONDUIT TO REMAIN REROUTE EXISTING BELOW GROUND CIC - FROM VEHICLE DISPENSER AND TANK FARM TO NEW ABOVE GROUND J-BOX PROJECT:DRAWN BY:JTD SCAE:1"=20'""|GIUGIG POWER SYSTEM UPGRADE = le Department of Community«DESIGNED BY:ore:2/12/09 *,AIDEA/AEA TWLE:FILE NAME SHEET OF py:NG ns wotENLARGEDAREAPLANisiupp-cor IM2 4 oe ic Development SPECIFIC NOTES Li>REMOVE RADIATORS [2>>REMOVE TANK FARM CONTROL PANEL,AREA LIGHTS AND ALARM/STROBE,RELOCATE AS SHOWN ON SHEET M2 [3 >REMOVE ALL INTERIOR HEAT RECOVERYSUPPLYANDRETURNPIPINGANDEXTERIOR ARCTIC PIPE DOWN TO 3°ABOVE GRADE - ALL BURIED ARCTIC PIPE TO REMAIN [4 >REMOVE ENGINE EXHAUST PIPES ANDSILENCERS [5 >REMOVE BUILDING EXTERIOR WALL SIDING,ROOFING,BATT INSULATION,AND INTERIOR PLYWOOD [6_>REMOVE GENERATORS L7>REMOVE ALL SWITCHGEAR,POWER & CONTROL CONDUIT,LIGHTING,CONDUCTORS, CONDUIT AND ELECTRICAL DEVICES [8 ->REMOVE ENGINE COOLANT,HEAT RECOVERY,AND FUEL PIPING [9°>REMOVE DAY TANK WITH CONTROL PANEL AND SAVE FOR REUSE {10°>>REMOVE INTERIOR PARTS ROOM PARTITIONS, DOORS,AND CEILING [11>REMOVE EXTERIOR WINDOWS AND DOORS WITH FRAMING [12>>REMOVE ALL EXTERIOR CONDUIT,LIGHTING AND ELECTRICAL DEVICES [13>>REMOVE EXHAUST FAN [14>>REMOVE EXTERIOR J BOX AND FEEDER CONDUCTOR FROM J-BOX TO STEP-UP TRANSFORMER [T5>REMOVE DAY TANK SUPPLY PIPELINE BACKTOFLANGECONNECTIONATCONVERSIONTO BURIED [16>REMOVE DAY TANK SUPPLY ACTUATOR VALVE CONDUIT BACK TO CONVERSION TO BURIED, COIL CONDUCTOR,PROTECT FROM DAMAGE AND SAVE FOR REUSE [T7>>REMOVE TANK FARM AND DISPENSING PUMP CONTROL CONDUIT FROM BUILDING EXTERIOR AND REROUTE BURIED CIC AS SHOWN ON SHEET M2 jeen TH!\CEN #3 TYP +ea herFeeMGEN#2Rinai - | (/-AL Del GEN #1 en 7TYP(3)an ny IDO | | (>---}>> e 7 :.JD -NOSPRECIGIUGIGPOWERSYSTEMUPGRADE=Se a akeDESIGNEDBY:ove:2/12/09 *yFILENAMESHEETOFA.POWER PLANT DEMOLITION PLAN isiupp-cor [M3 4 ** Comet attty artESnomic DevelopmentAIDEA/AEAscatNoeUpsone.Fe ASS813WestNorthenAnchorage,Alaska 99505 __ff ROUTE NEW INSULATED -,COPPER HEAT Ni)GEN |GEN |GEN |.)|FEEDER||peckRECOVERYSUPPLY |#2 |#1 &VED RETURN TUBING AROUND BUILDING AND CONNECT TO EXISTING riReARCTICPIPE CONTROLSUPPRESSION|"Rooy |FIRE SUPPRESSIONAGENTRACKCONTROLPANEL/ -,|a |5 A ee +\|Cc =a STATION \il ©GEN#1 SERVICEalrae_|67kW PANELBOARD ".|@ |x I][pe EE =----aaaaOGEN#2 =67kw _|GENERATION /a ©ROOM 'y 9 \/x ba EF-2 x _|VENTILATION i --/\AIRPa©)GEN#3 =42kWx6 [fF HEAT RECOVERY he)EQUIPMENT (|/BELOW ee ET-1 \/ FUEL FILTER,x |COMBUSTION METER &PARTS/WORK /\|AR APPUTENANCES ROOM DAY TANK \ ROUTE NEW DAY TANK SUPPLY PIPING AND ACTUATOR VALVE CONTROL CONDUIT [AND CONNECT 0 "=EXISTING BURIED raevane o R=Il o R-2 Oo PROJECT:DRAWN BY:=JTD SCA:17=5°ofIGIUGIGPOWERSYSTEMUPGRADEese&we 2/12/08 -Depa Commun oe kc DevelopmentrirWasetoF|"yi,furl Emad”Some,FR ALASKAPOWERPLANTRENOVATIONPLANIGIUPP-CDR M4 4 **'Anchorage,Aicska 99503 APPENDIX B CONSTRUCTION COST ESTIMATE ALASKA ENERGY AND IGIUGIG POWER SYSTEM UPGRADE FEBRUARY 12,2009 ENGINEERING COST ESTIMATE SUMMARY CONCEPT DESIGN REPORT TEMPORARY POWER $3,600 POWER PLANT BUILDING RENOVATION $105,300 POWER GENERATION DEMOLITION $12,800 POWER GENERATION UPGRADES $545,900 POWER DISTRIBUTION UPGRADES $36,100 MISCELLANEOUS $13,900 OVERHEAD $53,900 FREIGHT $41,090 CONSTRUCTION SUB-TOTAL $812,590 DESIGN AND CONSTRUCTION ADMIN.$70,000 CONSTRUCTION MANAGEMENT $70,000 PROJECT SUB-TOTAL $952,590 CONTINGENCY $142,888 15 % TOTAL PROJECT COST $1,095,478 TOTAL INSTALLED KW CAPACITY 176 kW COST PER KW OF INSTALLED CAPACITY $6,224.31 B-1 ALASKA ENERGY AND IGIUGIG POWER SYSTEM UPGRADE FEBRUARY 12,2009 ENGINEERING COST ESTIMATE CONCEPT DESIGN REPORT ITEM QUAN |UNIT UNIT MATL UNIT}LAB |LAB |LABOR |CONTR |FREIGHT]TOTAL UNIT TOTALCoOsTCOSTHRS|HRS |RATE|COST COST COST COST WT WT(#) TEMPORARY POWER Set Up 100 kW Temp Genset 1}lump $0 $0 40 40|$90 $3,600 $3,600 |4,000 4,000 POWER PLANT BLDG RENOVATION Remove Siding/Ins/Roofing 1|lump $0 $0 100 100}$80 $8,000 $8,000 0 Remove Fans &Ducts 1}lump $0 $0 10 10}$80 $800 $800 0 Demolish Interior Partitions 1}lump $0 $0 20 20}$80]$1,600 $1,600 0 Relocate Tank Farm Panel 1]lump $2,500 $2,500 60 60}$80 $4,800 $7,300 500 500 Siding 1,500]sq.ft.$9 |$13,500 {0.10 150}$80}$12,000 $25,500 5.2 7,800 Roofing 900!sq.ft.$9 $8,100 |0.15 135]$80]$10,800 $18,900 5.2 4,680 Radiator Slab &Shed Roof 1|lump $4,000 $4,000 50 50}$80 $4,000 $8,000 500 500 Control Room &Parts Room 280|sq.ft.$50 |$14,000 |0.50 140|$80]$11,200 $25,200 6.0 1,680 Doors/Windows 1]lump $6,000 $6,000 50 50}$80 $4,000 $10,000 6.0 6 POWER GENERATION DEMOLITION Provide Temp Station Service 1]lump $0 $0 10 10|$80 $800 $800 0 Remove Generators 1|lump $0 $0 40 40}$80 $3,200 $3,200 0 Remove Switchgear &Conduit 1]lump $0 $0 40 40|$80 $3,200 $3,200 0 Remove Exhaust Silencers 1|lump $0 $0 20 20]$80]$1,600 $1,600 0 Remove Coolant/HR/Fuel Pipe 1}lump $0 $0 20 20]$80]$1,600 $1,600 0 Remove Radiators &HX's 1]lump $0 $0 20 20|$80 $1,600 $1,600 0 Remove Lighting 1}Jump $0 $0 10 10}$80 $800 $800 0 POWER GENERATION UPGRADES Genset (JD 4045 Marine)3]ea.$45,000 |$135,000 40 1201 $80 $9,600 $144,600 |2,000 6,000 Switchgear 1}lump {$150,000 |$150,000 60 60}$80 $4,800 $154,800 |2,000 2,000 Gen/Control/Feeder Wiring 1}lump |$16,000 |$16,000 140 140{$80 {$11,200 $27,200 |2,000 2,000 Fire Supression 1]jump |$35,000 |$35,000 80 80}$80 $6,400 $41,400 |1,000 1,000 Ventilation 1}lump |$15,000 |$15,000 80 80]$80 $6,400 $21,400 |1,000 1,000 Radiators 2]ea.$12,000 |$24,000 20 40]$80 $3,200 $27,200 |1,000 2,000 Heat Exch,Pumps,Etc 4}lump |$10,000 {|$10,000 40 40]$80 $3,200 $13,200 100 100 Coolant/Heat Recovery Piping 1}lump|$12,000 |$12,000 200 200|$80]$16,000 $28,000 |1,000 1,000 Exhaust Thimbles,Pipe,Etc 1|lump $3,000 $3,000 60 60}$80 $4,800 $7,800 500 500 Stn Service/Equip/Light/Wiring 1]lump {$15,000 |$15,000 240 240}$80}$19,200 $34,200 |1,000 1,000 Day Tank &Blender 1)lump $8,000 $8,000 80 80!$80 $6,400 $14,400 |1,000 1,000 Fuel &Oil Piping 1{lump $5,000 $5,000 80 80|$80 $6,400 $11,400 500 500 Misc Strut,Hangers,Fasteners 1}lump $4,000 $4,000 60 60}$80 $4,800 $8,800 500 500 Fill Coolant,Fuel,&Lube 1|lump $3,500 $3,500 20 20|$80 $1,600 $5,100 500 500 Load Test 1]|lump $0 $0 80 80]$80 $6,400 $6,400 ALASKA ENERGY AND IGIUGIG POWER SYSTEM UPGRADE FEBRUARY 12,2009 ENGINEERING COST ESTIMATE CONCEPT DESIGN REPORT ITEM QUAN |UNIT UNIT MATL UNIT}LAB |LAB |LABOR |CONTR |FREIGHT}TOTAL UNIT TOTALCOSTCOSTHRS|HRS |RATE|COST COST COST COST WT WT(#) POWER DISTRIBUTION UPGRADES Shunt Reactors 3]ea.$7,500 |$22,500 20 60}$90]$5,400 $27,900 |2,000 6,000 Feeder to Exist Transformers 1|lump $5,000 $5,000 40 40}$80 $3,200 $8,200 500 500 MISCELLANEOUS Signs &Valve Tags 1}lump $2,000 $2,000 30 30{$80 $2,400 $4,400 100 100 Misc Hardware 4|lump $2,000 $2,000 0 0}$80 $0 $2,000 500 500 Misc Tools &Safety Gear 1|lump $5,000 $5,000 0 0}$80 $0 $5,000 500 500 Welding Rod,Gases,Etc.1}lump $2,500 $2,500 0 0}380 $0 $2,500 1000 1000 OVERHEAD Audit Grants 1]lump $6,000 $6,000 Rent Heavy Equip.1]Jump $5,000 $5,000 Test &Commission System 1]lump 60 60}$90]$5,400 $5,400 Train Operators 1}lump 40 40}$90 $3,600 $3,600 Superintendent Overhd Off-Site 1}lump 40 40}$90{$3,600 $3,600 Superintendent Overhd On-Site 1}lump 40 40}$90;$3,600 $3,600 Crew Travel Time 1]lump 80 80}$90 $7,200 $7,200 Crew Airfares 10]trips $6,000 $6,000 Crew Per Diem 150}mn.dy $9,000 $9,000 Housing Rent 4]mo $4,500 $4,500 FREIGHT 46,866 Truck Freight Anch-Homer 46866 Ib.$0.10 $4,687 Load Freight Homer 46866 Ib.$0.05 $2,343 Barge Freight Homer-lgiugig 46866 Ib.$0.30 $14,060 Casa Mob 2]ea.$5,000 $10,000 Project De-Mob 1 |lump $3,000 $3,000 Misc Smail Freight &Gold Strea 1]lump $7,000 $7,000 CONSTRUCTION SUB-TOTAL $522,000 2,685 $218,400 |$30,500 |941,090 $812,590 Engineering (Design &CCA)1 {lump $70,000 Construction Management 1}lump $70,000 PROJECT SUB-TOTAL $522,000 78,400 [$170,500 |41,090 |$052,590|Contingency 15}%{$142,888 JTOTAL PROJECT COST $1,095,478 B-3 APPENDIX C SITE CONTROL DOCUMENTS ) Site Control Opinion Bulk Fuel Storage and Power Generation Project Igiugig,Alaska As requested,|have reviewed the land status for the bulk fuel storage and power generation project in Iguigig,Alaska. Land Status Report Land records were researched at the State Department of Community, Commerce and Economic Development and the State Recording Office.All research was conducted on line. The parcels researched are identified as Tracts H-2 and H-3 of the Igiugig Community Facilities Subdivision recorded in the lliamna Recording District as plat 2004-9 on December 29,2004,and a parcel of land described by metes and bonds description within U.S Survey 7796.A copy of plat 2004-9 and the pertinent portion of U.S.survey 7798 are attached. The State of Alaska,Department of Community,Cornmerce and Economic Development (in trust for a future city in Igiugig)owns the surface estate of the land for the bulk fuel storage and power generation facility.The Municipal Lands Trustee (MLT)Program,which is located in the Division of Business and Community Development,performs the State's municipal land trust function. The parcel now identified as Tract H-3 was leased to the Igiugig Village Council by MLT.This 30 year lease became effective on February 22,2005.The lease was recorded on February 24,2005,in the lliamna Recording District as document 2005-000557-0.This document amended an earlier lease between the parties to adjust the property description and the term of the lease.A copy of the recorded amended lease is attached. The parcel identified as Tract H-2 has also been leased to the Iguigig Village Council by MLT.This 30 year lease also became effective on February 22,2005.The lease was recorded on February 24,2005,in the lliamna Recording District as document 2005-000557-0.A copy of the recorded lease is attached. A small parcel of land to the south of Tract H-3,Plat 2004-9,previously identifiedasParcel93P1,was deeded to the Igiugig Village Council by warranty deeds issued by Elia Wassillie,Martin Wassillie,Wassie Wassillie and Henry Wassillie.These four deeds were recorded in the lliamna Recording District on August 19, 1994,in Book 21,Pages 947-954.Copies of the recorded deeds are attached. Site Control Summary Legal title to Tracts H-2 and H-3,Plat 2004-9 is vested in the State of Alaska, Department of Community,Commerce and Economic Development (in trust for a future city in Igiugig).The MLT Program has leased both parcels to the Igiugig Village Council.The long term leases should be deemed adequate evidence of site control for the project.The Igiugig Village Council owns fee title to the small parcel of land to the south of Tract H-3. Disclaimer This site control opinion does not purport to insure,warrant or certify title.This opinion is not a legal opinion.The research of the lliamna Recording Office records was limited to a review of the computerized files.The opinion is the result of a diligent research effort as described above. Prepared by Rick Elliott Land Consultant for AE&E January 28,2008 APPENDIX D ELECTRICAL DATA Igiugig Monthly KWH Generated 2005 012006 2007 { \WLLL eee es ponccensecussaacesest|Smesbe ses soSsenGSSROSSORE BOSSESSSR TREND RSecaEES ESSE DSSSOSESEReSeaaSEAaaSSSeESE DE: |SSSR ESESTORRGAESRSSERSSESCCOTST ST EGAESSSOSESSSESESTCEDSSRSSRASSeSEESECCCSSEEETET 25,000 20,000 5,000 +- |T2=)2.=)2 15,000 +payesau9g HM Mar Apr May JunFebAugJul Month D-1 2005 2007HittitefFAASCeRTAs ASE SSESSeeTSSDSESEFESRSEESSAsSseeeEDeSeST ;EROUSEEDEGEH SORAAnus eaeSessaseansasenas FUUOUCCEU EGCDODEGR REEEURReEAasauaeHesaa Ter SOR OESRSSCSOESCSSSRORSSEESESSCaSBEOBESN | ssporescaccsoscouasnesieee TO era jeaneupsasecnenst |ism resasnsnenesseccneccucensnsnsassecuessccacsssret pUseurseusecevsanas papeueeeanoasesaaenses TTTITITTI TTT eee TTITTTITI Terre tes. FORAGSESRPRSSSCSASRHASSD SSSSUETESRSTCTOSESDESSRSSEETCSACESEETESSCSSDES ESTERS 'AAOUOOSSAAEARASARERERSDSDEKOSODERERS ASSESSES ESESSeDEETSSSSSTOSTSESESSSDSEESSESEITITTINITITIIiiiiiiiiiiiiiiiiiiiiiiriiiiiiiiiiiiriri iiiiiii rrrrirrir)titi titre ORAMES RESASOCRRSOSASSOSRERDRSSERSSSESSSSOEERSESRSREEEEDESESSCSSRSSERSSSDTESSSSSSSSRSSORDSEEESSSBSREEEE PRU SCARERSRSRSSSROSASADLSTSARSRCCORSSSRSRORSTC SSD DRSSSSCSSSSSSEESSESSSESSTESSSSDSRSSRSSEEPESETeESODS Igiugig Peak kW Load TTITITITTTT TTT ITT errr rr rrr rrr eee pom mneDensusSessscocesecrescesazeaasasnss aacTITTY rere jRAGSSSeSeSeSeeSSSREBSEGs SSSSRRSSDSEEE sEDESSRO PEESecRsasSeSeReSesEEEE SI 60 50 Feb Mar Apr May JunJan Month D-2 Aug Sep Oct Nov DecJul Igiugig Average kW Load 2005 02006 $2007 PEDES CESSCCSE SPSS DESDDERS SECSSSDSROSEST DROSSESECRERS: +SORSCDESTSUETESESESEFOSSOTSSDSCEDSRDEEEECRE TT ---T-T-T-w-r oo | eoccssersvocusscssnenrsasensesososcsusnnnse: [BEDS SSeRSeasesPeecccesDDsecesuseEsessEsausessasacens [ie moscecssceerurescanssscecevsrssrssccccncnssszencacas TITTITITIT IIITWXoerJESUSDCCOS FeCsSeeTeDEEEEESES: PORE RERGOOR EHR RAOSSEERRARSSSROOCESRSSRSSESSSSSOSRERSESSSGEEESSSOSERETTOO 35 333 Ht ESEESESSESSSSESESESESSSCESESSSSSSSSSOSEESSEES: HtWYESMMa"tMttMaMHM@@MMTHH@@#Pepke5':F:@|M( HCuqmMH###ts: mon ee eee ScESSESSSESSSSSESSSOSSSESSSSGESESESESSSRSRSE;GSSSSSSESESSSSESESRasssssacessss0000--000035) eee eeeeee eeeeeneeneescenteesceeceneneascussssscecescossocescscssnsessess SOU RSODOSORARSCeDsSOReR sCeDEEEETecesenscccnenssssensasocenaseannnasaacen| aeeceeace ccccccscsscssccoccessccecccccccosscccccccssccccccorccsssrassadnancessasFREE EEEenseeauaceseaesesesnesrscgrensnanssensnssnaascncanansanasnsassensyepeccereceee: rt eccsceceeSEETErEssny HE: srt Ea T T T foe) N N - - MarFebAugSepOctNovJul Month D-3 Igiugig Generation Efficiency BoaziagnossesescansnanansncnsssnensnonostaccencaansesacneennencacacasacnansnoasscesesaonesHEgncescecenrenscccccccssrecensssocsrerecgees eee aeeeeereereaseeecerie! HittSSETHEESSSEecSetssscesssess! ttt 14.0 12.0 10.0 leS/HM4 6.0 Jun Month D-4 Pea es ee en aaoeoeSe ScSEES ESSERSSeS SS A SS aa APPENDIX E COMMUNITY CORRESPONDENCE Igiugig Village CouncilRESOLUTIONNo._23 --/2. A RESOLUTION OF THE Igiugig Village Council ON BEHALF OF THE RESIDENTS OF Igiugig,Alaska TO SEEK GRANT FUNDS FOR THE DESIGN OF AN UPGRADED, REGULATORY COMPLIANT POWERHOUSE FACILITY. WHEREAS,the Village of Igiugig wishes to:have a new,regulatory powerhouse to support community economic development;have a safe and healthy community in which to reside;and WHEREAS,the Village of Igiugig wishes to:request grant funds from the Denali Commission and other appropriate entities for this new facility;work jointly with other local entities to secure the funding necessary this new facility;and WHEREAS,the Village of Igiugig has received and reviewed a copy of the program description from the Rural Energy Group of the Alaska Industrial Development and Export Authority,and WHEREAS,the Igiugig Village Council has authorized its project manager Bonnie Thurston to be the contact person for the Village of Igiugig for the duration of the project;and WHEREAS,preferred focation for the powerhouse is as follows:The powerhouse will remain at existing location. NOW,THEREFORE,BE IT RESOLVED that by quorum of the Igiugig Village Council of Igiugig, Alaska all are in agreement and support all efforts to secure grant funding to upgrade and bring the local powerhouse facilities into regulatory compliance. BE IT FURTHER RESOLVED,that the Igiugig Village Council President,Dallia Andrew,or their designee,is authorized to execute this agreement for the Village of Igiugig. |,the undersigned,certify that the Igiugig Village Council of the Village of Igiugig is composed of five members,of which three were present.The foregoing resolution was Passed and Approved this 29th day of August,2008. Vote:2 YEAS O wavs |Z-spsent Attested:Ke fa,Bones.Dallia Andrew,president Signed: Igiugig Electric Hydropower Scoping Brief Igiugig Village Council PO Box 4008 Igiugig,AK 99613 (907)533-3211 Fax (907)533-3217 www.igiugig.com igiugig@bristolbay.com Igiugig Electric Hydropower Scoping Brief Location,Population Data and Economic Activity The community of Igiugig is located at 59°19°47”N,155°54'29”W at the mouth of the Kvichak River as it drains out of Lake Iliamna.Igiugig is a small village (population 56)located in southwestern Alaska,on the south bank of the mouth of the Kvichak River and Lake Iliamna.The village is 48 miles southwest of Iliamna,Alaska and 56 miles northeast of King Salmon,Alaska.The Village's population consists mainly of Yupik Eskimos,Aleuts,and Athabascan Indians. Currently Igiugig has 56 year round residents with a summer population of 75 and provides goods and services to six area tourism lodges and their respective clientele and workforce of 90 additional persons per week.Igiugig is a distribution hub for bulk fuel, propane,barging services,a DEC Class III landfill,public water/wastewater distribution system,washeteria,health clinic,and airport expediting covering an area exceeding 25 square miles. Local Infrastructure Igiugig Village Council has an extensive infrastructure (see attached community profile map).The community has a 3300 foot airport runway with AWOS and GPS approach.Barge service via Bristol Bay is available August thru September most years and is barge accessible for Anchorage/Kenai/Homer May thru October via the Pile Bay/Williamsport Road and across Lake Iliamna all years.The IVC owns a 30'x 80' FlexiFloat flat deck barge capable of carrying 225,000 pounds and distributes 90%of non fuel related goods for all the communities and businesses of the Lake Iliamna region. Local residents have multiple 32'x13'aluminum 450HP plus diesel powered fishing boats that pull or push the FlexiFloat when needed.Many power skiffs ranging from 18' to 24'and 80 to 150HP are available as well to assist in any potential installation and/or operational activities as well. IVC is an owner of a tribally owned heavy construction firm,Iliamna Lake Contractors LLC,and has access to a large inventory of heavy equipment that is fully operational,modern and well maintained ...turn key,including: e Cat 330 and 320 excavator e Cat 966 and 950 loaders,buckets and forks e 10 yard cement truck and fill hopper e Cat 163 grader and JD 572 grader e Numerous 10/12 yard end dumps,20 yard Cat D300E articulating dump e Plasma cutter/welders,aluminum,steel,etc. e Cat D7,Cat D6,Cat D4,2 JD 450 dozer/backhoes e 40'Boom Truck,15,000 Ib.crane e Numerous light and heavy power tools,winches,etc. All of the above can operate off of FlexiFloat barge. Electric Power Infrastructure Igiugig Electric Company (IEC)is being design evaluated for a comprehensive Denali Commission Legacy upgrade.This is expected to include new Tier II marine Igiugig Electric Hydropower Scoping Brief 1 gensets and auto synchronized switch gear that interprets loads and integrates proper generator set capacity and operation per load requirement.Design engineers are evaluating alternative energy upgrades into the powerhouse design to ensure cost efficient implementation if successful with a hydro potential project. Currently IEC has three generators ranging from 60 to 100kW that work independently per load need to energize the community's 7200 volt 3-phase distribution system installed in two phases,1998 and 2002. Tract H1 (attached community profile map)contains the community powerhouse/bulk fuel facility and illustrates the optimal location of the powerhouse to the river/hydro source for generation and distribution (all within 200'of the rivers edge). Historical load patterns range from 40kW to 95kW with the coldest months of December, January,and February requiring the greatest peak load demands.These typically spike morning through afternoon when the local K-12 school is in session.Currently load recorders are gathering data for AEA and a copy of as-builts of Igiugig Community's distribution system is on file with AEA. Kvichak River Characterization The Kvichak River bed consists of a fine silt base and overburden with cobbles, rocks and gravel depending on current and location of river width.Directly adjacent to the powerhouse the river expends its greatest velocity and/or gradient as it leaves Lake Iliamna and winds down the "cut-bank”.The river bed here is characterized by rocks approximately 6”-12”in diameter interlaced with stones,sand,and gravel for a protective barrier to the underlying silts.River width at this location is approximately 437 feet.Water clarity is extremely clear during periods of calm wind with visual bottom observation capable at 10 feet or more.Prevailing east winds may increase turbidity with organics and silt but these readily settle out dependent on direction and change of wind speed.The Kvichak River has little to no large debris as sparse vegetation and its close proximity to the outlet doesn't allow these obstructions to accumulate.The west end of Lake Iliamna is virtually large debris free. Ice formation may occur from November through February and is usually periodic as the high current and large volume of moving water typically precludes its retention.Total river freeze over is rare at this location and usually requires a freeze, thaw,wind event to push ice out of the lake and fill the river.Twenty-five years of local experience estimates that this portion of the river is frozen over totally less than two weeks of the year.Some years no ice has formed or discharged down the Kvichak. Spring break up usually occurs March through May with ice passage lasting approximately 2 to 3 weeks.Thickness of passing ice ranges from 3”to 4', River depth rises approximately 4 to 6 feet in depth May through October with temporary wind driven increases of an additional 6”to 2'.Greatest depths occur in late fall (September/October)and lowest depth after ice cover loss on Lake Iliamna in April/May. (source:Local Traditional Elders Knowledge) Please note attachment 2 obtained from ADF&G Smolt Sonar Coordinator Fred West.The higher averages f/sec were obtained at a camp located 3.6km to the outlet of Lake Iliamna.Our site is approximately .2km below the outlet of Lake Iliamna. Igiugig Electric Hydropower Scoping Brief 2 Competing Use of River Space The Kvichak River is a navigable waterway that allows a range of marine traffic from a skiff to a LCM barge that may draw up to 8'.Directly adjacent to the powerhouse,traffic is minimal due to the heavy current and lack of infrastructure requiring access. Environmental Considerations The Kvichak River supports populations of all 5 species of Alaska Salmon as well as an abundant stock of Rainbow Trout,Grayling,Dolly Varden,Whitefish,Pike,Ling Cod,etc.Annual smolt outmigration generally occurs in May/June for approximately 3 weeks with peak passage occurring in the cover of nightfall.Mitigation efforts to deflect fish passage or removal or shutdown of equipment may be required to manage potential conflicts.Technology and depth of equipment and deployment will mitigate these effects on marine life as well. Unique Opportunities and Synergies IEC's sustainable operation for over 25 years will ensure success if considered for a hydroelectric study in new technologies.Management,accounting, and maintenance staff have a combined 65 years experience with this utilities operation and distribution.IEC Manager Dan Salmon has worked 14+summers as an ADF&G fisheries technician during salmon smolt outmigration and adult spawning return on this section of the river and will be directly involved with mitigation efforts and timely deployment of proposed technology.Locally available heavy equipment,suitable barge and numerous boats will provide safe and cost effective deployment and maintenance.The local utilities powerhouse and distribution proximity to the proposed site is optimal and cost efficient for this study to occur.The Kvichak Rivers clarity,debris free,lack of ice coverage and discharge are all characteristics conducive to minimal disturbance and effective operation of proposed technology.Lastly IEC stage of powerhouse upgrade engineering,its recent distribution network of 7200V 3-phase underground upgrade and a guaranteed $50,000.00 cash match from the community will provide a vested interest and guarantee the success of this proposed project. Igiugig Electric Hydropower Scoping Brief 3 Water Velocity Reading at Proposed Site:June 20",2007 Nelocity measuring device:Gurly Meter 22 * .>"US SURVEY |Riba,Now 3877 -get NE 3874 1”:7.42fps 4°:6.39 fps 8':5.47fps eed f a aes S35:Figs 8S.SUR 56 neg]4faendnotepaltiogs*fee 1°:4.78fps 4°:4.81 fps 5°:4.30fps box F Igiugig Electric Hydropower Scoping Brief -PPT 2 1°:6.85fps US SURVEY 1':3.41 fps '<De NA Cerd 4°:6.08fps No.779644:426s Eft?SS ee Ae 8°:5.20fps_ent to US SURVEY Lot 11 6':4.21 fps a Lap Raat OG box E neil us 7796 NA Cert.Grant of Easement to RECREA ;box A .°fy -<< 478 wots __-50-90-0205 Igiugig Village Council ic |¢OPrrrere mf SS eRe bre =0/8/98 50-90-0514 Distances:a(3)S/esvea tt =at bo aS rasthe .is S.om ey,°from shore to readings in boxes a and dTractsG-H,J ->:fa--«i ome ee.is 15° - ' "TR HI Seed G.n> Se ws f me OT 6°:3.71 fps Raa |:bd oe e -from boxes a and d to readings in boxes" oo =LEVFE [4 -boxD Vea OK 7 BAS red b and ¢is 100'ww6a,POS 7 eya ORUTWT sf ThsSig:or:*¢-from boxes b and e to readings in boxes "4|jRovsed ese i oH as No.200 7 Ba [ye cand fis 130 (SIgiugigVillageCouncil|cassteres)=i SS ee eeBk.27,Pgs.341-are ee -Jog Atlan Pe |Groatpf ROW.te,Ncech 0of.oN Nout 6Gaim 0 Se APPENDIX F WIND ENERGY SCREENING REPORT [WIND SCREEING REPORT} Igiugig 59.327780°N -155.894720°W Source:Alaska Division of Community and Regional Affairs. Population 296:53 Load 2007 PCE:43kWa peak/25kWer ave Average Price of Fuelzoog pce:$3.42 /gal Effective Residential Ratezoo¢pce:21.82 cents /kWh Total Fuel Usedy2o0¢pce:20,898 gal/$71,546 Wind Resource Igiugig is located on the south shore of the Kvichak River,which flows from Iliamna Lake,on the Alaska Peninsula.It is 50 air miles northeast of King Salmon and 48 miles southwest of Iliamna. Wind Classzom High Resolution Wind Map:1-3 Average Wind Speed3om high Resolution Wind Map:5.1-6.5 m/s(mph) January 29,2008 |4 ____[WIND SCREEING REPORT] Igiugig |Populationzo06:53 Igiugig is located on the south shore of the Kvichak River,which flows from Iliamna Lake,on the Alaska Peninsula.It is 50 air miles northeast of King Salmon and 48 miles southwest of lliamna. 59.327780°N -155.894720°W Source:Alaska Division of Community and Regional Affairs. Load 007 pce:43 kWei peak/25 kWe ave Average Price of Fuelzoos pce:$3.42 /gal Effective Residential Rate200¢pce:21.82 cents /kWh Total Fuel Usedaoo¢pce:20,898 gal/$71,546 Wind Resource Wind Class3om High Resolution Wind Map-1-3 Average Wind Speed3om High Resolution Wind Map-5.1-6.5 m/s(mph) January 29,2008 |fee] "T=ALASKA@aeENERGYSKA __[WIND SCREEING REPORT] Wind Map a I a,.}A ji L pee =a .\»Wind Speed 30m©2 oY \,Class 4 -Poor (<8.1 avs) \vif \|ae (7)Class 2-Marginal (5.1-5.8ms)|} on oO,\i a [7]Class 3 -Faw (6.8 -6.5 m/s)> ''whey phe 'is [1]Class 4 -Good {6.5 -7.0 me}i. s ih er:aan ial ME Class 5 -Excetlent(7.0-7.4mva)|!VG ofp oe ay EMME Class 6 -Outstanding(7.4-8.2 mis}; =,fo .os be Class 7 -Superb {.8.2 mis): pena bm +|'my -=f=)pen "poof.oo !Ve sd VO ee. Po f iy : "wos i zo:Roe |.i ae 3 y QC ete 4S4©'\As ane .iN \4 aan Ai otsLieneaefeetneaoe ad cee ee ety OE : ©)ahs }sd ad Cy ve [ip poy .og(3 \-co Ye:ay \. ee ba '*-*.". '=e ee eeatge4ii ena :a a)'''ee :via ::iW,. \. ;N\|; .a a .iN a -. "wee i ®-oo Miles:ns '001503 06°08.42 Modeling Results Electricity generated from wind plant: Wind Plant Capacity Factor: Benefit-Cost Ratio: Diesel displaced: Initial Capital Cost: Net Present Value: Simple Payback: Green House Gas Emission Reduction: January 29,2008 |ES ] J =ALASKA poo WIND SCREEING REPORT] Recommendations The modeling results represent a conservative approach of economic evaluation.Different assumptions in regard to diesel price projections,capital cost and O&M cost can present other scenario outcomes. Prepared by: Martina Dabo Wind Program Manager Alaska Energy Authority 813 West Northern Lights Blvd. Anchorage,AK 99503 Ph.:(907)771-3027 Fax:(907)771-3044 E-mail:mdabo@aidea.org January 29,2008 |a _] =)ALASKAE 1°oo @®ENERGY AUTHOR!___[WIND SCREEING REPORT] Modeling Input Data Wind Speed: Height of Measurement: Wind Turbine Model: Wind Turbine Rated Power: Number of Wind Turbines: Wind Plant Rated Capacity: Wind Turbine Cost Installed: Balance of Plant: Operation &Maintenance: Avoided Cost of Energy: Energy Cost Escalation Rate: Inflation: Discount Rate: Project Life: Turbine loss factor: Aerial Map a % ” on =.x [=.aoe .:=ALASKAR fs =WIND SCREEING REPORT]ENERGY AUTHORI hook Methodology General Information For the economic evaluation the project analysis software RetScreen was used.RetScreen compares between a base case scenario and the proposed alternative project.Since the initial cost of the proposed alternative system is typically higher than the base system,the analysis identifies whether or not the balance of cost and savings over the lifetime of the project make for a financially attractive position. For the purpose of this screening report an emphasis on economic feasibility of wind turbine installation,including the estimated cost of balance of plant for the integration equipment,and the resulting diesel displacement was made.No optimization between different wind-diesel system designs was performed.Further studies are necessary to determine a more detailed integration design,use of excess electricity generated from the wind plant,effects on diesel efficiency,load dispatch strategies,and storage options. The integration design has to be discussed with the utility,their approach in regard to load dispatch strategies,low load diesel operation,spinning reserve requirements frequency and stability contro!requirements amongst others have to be identified. A detailed engineering study is necessary to evaluate the feasibility,costs and performance of an integrated wind- diesel system.This is outside the scope of this study. For maximum utilization of investment only the high penetration scenario is presented in this report.This will increase the complexity and integration cost compared to a medium or low penetration system.However it is assumed that the increased wind absorption rate and resulting diesel fuel savings will justify the higher cost for integration.The cost estimation for the different integration controls (low,medium,high penetration)are outside the scope of this study.For preparation of a final design study the different scenarios should be taken into consideration and a cost comparison should be made. Avoided Cost of Energy As the base case for avoided cost of energy,the stated price for diesel per total kWh generated is used for calculations.The data are derived from the current published PCE Statistical Report for the community.The data do not take any non-fuel expenses into account. Simple Payback The revenue for the simple payback calculation is based on the avoided cost of diesel fuel.The simple payback should not be used as the primary indicator to evaluate a project.It is useful,however,as a secondary indicator to January 29,2008 | _____[WIND SCREEING REPORT]myindicate the level of risk of an investment.A further criticism of the simple payback method is that it does not consider the time value of money,or the impact of inflation on the costs. Net Present Value The model!calculates the net present value (NPV)of the project,which is the value of all future cash flows, discounted at the discount rate,in today's currency.Under the NPV method,the present value of all cash inflows is compared against the present value of all cash outflows associated with an investment project.The difference between the present value of these cash flows,called the NPV,determines whether or not the project is generally a financially acceptable investment.Positive NPV values are an indicator of a potentially feasible project.For the purpose of this screening study the only 'revenue'is the avoided cost of diesel fuel and the only expenses are the cost for operation and maintenance including repair and replacement cost.Modeling with additional revenue sources such as the sale of environmental attributes is recommended to identify benefit impacts. Benefit Cost Ratio The model calculates the net benefit-cost (B/C)ratio,which is the ratio of the net benefits to costs of the project. Net benefits represent the present value of annual revenues (or savings)less annual costs,while the cost is defined as the project equity.Ratios greater than 1 are indicative of profitable projects. Annual Diesel Savings The annual diesel savings are calculated without the RetScreen software.The displaced diesel amount iscalculated by dividing the kWh produced by the wind generators through the diesel system efficiency factor indicated in the latest published PCE Statistical Report.The diesel efficiency factor is calculated by multiplying the displaced diesel amount with the cost for diesel. Greenhouse Gas Analysis Green House Gas (GHG)emission calculation based on 100%energy mix of diesel #2 generation using following default values: e CO,74.1kg/G); @ CH,0.0020 kg/G); e NO,0.0020 kg/GJ; e Fuel conversion efficiency 30% To obtain a more accurate emission analysis,actual energy mix data could to be applied. January 29,2008 | VJ=ALASKAR J [WIND SCREEING REPORT] Turbine Cost Turbine costs are derived from direct vendor/manufacturer quotations and include shipping and installation.If no direct cost estimation is available the default cost of $4,000/kW installed is used.A recent study undertaken by the Berkeley National Laboratory states the installed cost for utility scale,grid connected wind turbines in the US market (lower 48)with $1,725 -$1,829 per installed kW.The high cost used in this screening tool is an estimate, taking Alaska's high transportation and construction cost into account.The estimate was based on personal communication with recent wind developers in Alaska and to a limited extend from installed system cost from past wind projects. Balance of Plant Cost In this effort low,medium,and high penetration wind-diesel hybrid systems were modeled.For each level of penetration different Balance of System (BOS)costs were assumed.All options modeled included an estimated $300,000 to run power lines up to the wind site.At higher levels of penetration more sophisticated power conditioning equipment and controls were considered necessary to maintain power quality.Additionally,during periods of strong winds,higher penetration systems have more excess energy to send to the dump load,to match this increase in excess energy the dump load must be scaled up.The dump load is assumed by HOMER to be an electric boiler that will supply heat to help satisfy the community's thermal load.The table below breaks down the assumed BOS costs for each penetration level. Level of Penetration Low Medium High Line Extension $300,000 |$300,000 |$300,000 Design &Engineering $75,000 |$100,000 |$150,000 January 29,2008 | ee. > |_aill LASKAF |'_[WIND SCREEING REPORT]ENERGY AUTHOR] Controls $5,000 |$30,000 |$100,000 Dump Load $0 |$20,000 |$100,000 Total Balance of System Cost |$380,000 |$450,000 |$650,000 Wind-Diesel System Penetration Level Penetration Penetration .PoeClassOperatingCharacteristics Peak Annual Tastastaseous |Average ®DieseKs)run full-tme ®Wind power reduces net load on diesel 2Low*All wind energy goes to primary load =30%<20% ©No supervisory control system ®Diesel(s)run full-time *Athigh wind power levels,secondary loads dispatched to 0%Medium ensure sufficient diesel loadmg or wmd generation is 50%-100%|<.)50%curtailed ©Requires relatively simple control system ©Diesel(s)may be shut down during high wind availability High ©Auxiliary components required fo regulate voltage and 100%-50%= ;frequency 400%150% ©Requires sophisticated control system eS Alaska installed wind-diesel systems are designed in all three levels of penetration design.For the purpose of this screening study a medium penetration system is the default system (cost only).If community load is too small to accommodate a medium penetration system (dependent on available turbine choices),the cost for a high penetration system is used.However it is not recommended to install a high penetration wind-diesel system in a community without adequate long-term skilled technical support and reliable and fast spare part supply options. Operation and Maintenance Cost Due to lack of Alaska based wind plant operation and maintenance cost numbers,available to the public,following method was used: January 29,2008 |3 l ,VERSA |;©twit sereeine REPORT] The cost for operation and maintenance were calculated as a combination of fixed and variable cost.The fixed cost is calculated with 3%of installed cost and a variable cost of 0.975 ct/kWh per year.These annual costs are applied throughout the estimated project life of the wind turbines and take repair and replacement into account.The variable cost was determined by applying a 5%annual increase of 1996 industry data of 0.65 ct/kWh.Planners consider adding variable cost to take wear and tear into account that increases with project life. Turbine Loss Factors Due to limited validated long-term information on turbine loss factors of Alaska installed wind turbines a default value of 23%is used based on the information below: Loss Factor A B Cc Average 2-9,Wake 10%4-17%5-10%10.5 Availability 2-8%5%5-8%6.8 Electrical Efficiency 2-4%2-5%1.5-3%3.6 Turbine Performance 1-3%10%1-6%4.6 Curtailment 0-2%1-3.5%1.8 Environmental 1-6%2%(1-9%)45 Total Range Average 9.5 36.5 | Average 23 Source: AEA Notes from AWEA Wind Resource &Project Energy Assessment Workshop,September 18-19,2007, Portland Oregon. Wind Developer Code: A:AWS -AWS Truewind (www.awstruewind.com) B:GEC -Global Energy Concepts (www.globalenergyconcepts.com/overview.htm) January 29,2008 |19 |] [f=ALASKAY I:SS bare So Do WIND SCREEING REPORT] C:GH -Garrad Hassan (www.garradhassan.com) Notes: Numbers are for large scale wind turbine/farms in the lower 48 and Europe Heavy icing,as in some AK locations,is not experienced at reported locations.Environmental losses take less severe icing into account. Alaska operators report turbine availability of 92%and higher. References WIP-coming soon January 29,2008 |Feu | APPENDIX G POTENTIAL KVICHAK RIVER RISEC PROJECT IGJUGIG TRIBAL VILLAGE COUNCIL A.K.A,Igiugig Village Council P.O.Box 4008 Igiugig,AK 99613 Phone:(907)533-3211 or Fax:(907)533-3217 www.igiugig.com e-mail:igjugig@bristolbay.com November 10,2008 Renewable Energy Grant Fund Alaska Energy Authority 813 West Northern Lights Blvd. Anchorage,AK 99503 Re:Igiugig Village Council -Renewable Energy Fund Grant Application -Letter of Commitment Application Revicw Committee: Igiugig Village Council d/b/a Igiugig Electric Company is pleased to submit the attached application for a Renewable Energy Fund Grant for a river in-stream energy conversion (RISEC) project,an eligible renewable energy project as defined under HB 152.Igiugig Village Council is authorized by the Regulatory Commission of Alaska to provide power to the community of Igiugig under Certificate of Public Convenience and Necessity,CPC&N No.681. The attached Application documents and describes the proposed RISEC project.The total estimated cost of design,permitting,construction,and development and testing is $2,302,630. The estimated fuel savings as a result of the commercial scale project is 15,000-gallons starting in year 5.Igiugig Village Council commits to this project a cash Match of up to $50,000. Igiugig Village Council strives to keep electric costs as low a possible by maximizing operating efficiencies and reducing operating costs.This project will provide a significant improvement toward mecting this continued goal,and will greatly benefit the community of Igiugig,as well as other rural Alaska communities interested in implementing a RISEC technology project. Igiugig Village Council]welcomes and fully supports this opportunity to work with the Alaska Energy Authority to implement this innovative RISEC project,and requests the Review Committee carefully review the merits of this application. We welcome your review and evaluation of our proposal,and look forward to working with youonthisproject.If you have any questions about this project,please feel free to contact me at(907)533-3217 Sincerely,D . Dallia Andrew Igiugig Village Council President Bonnie Thurston Village Administrator f=ALASKA Renewable Energy Fund @M@E ENERGY AUTHORITY Grant Application Application Forms and Instructions The following forms and instructions are provided for preparing your application for a Renewable Energy Fund Grant.An electronic version of the Request for Applications (RFA) and the forms are available online at http://www.akenergyauthority.org/RE_Fund.html! The following application forms are required to be submitted for a grant recommendation: Grant Application |GrantApp.doc Application form in MS Word that includes an outline of Form information required to submit a complete application. Applicants should use the form to assure all information is provided and attach additional information as required. Application Cost Costworksheet.doc |Summary of Cost information that should be addressed Worksheet by applicants in preparing their application. Grant Budget GrantBudget.x!s A detailed grant budget that includes a breakdown of Form costs by task and a summary of funds available and requested to complete the work for which funds are being requested. Grant Budget GrantBudgetinstr.pdf |Instructions for completing the above grant budget form. Form Instructions e If you are applying for grants for more than one project,provide separate application forms for each project. e Multiple phases for the same project may be submitted as one application. e If you are applying for grant funding for more than one phase of a project,provide a plan and grant budget for completion of each phase. e If some work has already been completed on your project and you are requesting funding for an advanced phase,submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. e If you have additional information or reports you would like the Authority to consider in reviewing your application,either provide an electronic version of the document with your submission or reference a web link where it can be downloaded or reviewed. REMINDER: e Alaska Energy Authority is subject to the Public Records Act,AS 40.25 and materials submitted to the Authority may be subject to disclosure requirements under the act if no statutory exemptions apply. e All applications received will be posted on the Authority web site after final recommendations are made to the legislature. AEA 09-004 Grant Application Page 1 of 25 9/2/2008 =Renewable Energy Fund iE ENERGY AUTHORITY Grant Application SECTION 1 -APPLICANT INFORMATION Name (Name of utility,IPP,or government entity submitting proposal) Igiugig Village Council d/b/a Igiugig Electric Company Type of Entity: Certificated Electric Utility Mailing Address Physical Address Igiugig Village Council PO Box 4008 Same Igiugig,Alaska 99613 Telephone Fax Email 907-533-3211 907-533-3217 bsthurst@aol.com 1.1 APPLICANT POINT OF CONTACT Name Title Bonnie Thurston Village Administrator Mailing Address Igiugig Village Council PO Box 4008 Igiugig,Alaska 99613 Telephone Fax Email 907-533-3211 907-533-3217 bsthurst@aol.com 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate.If you do not to meet the minimum applicant requirements,your application will be rejected. 1.2.1 As an Applicant,we are:(put an X in the appropriate box) X |Anelectric utility holding a certificate of public convenience and necessity under AS 42.05,or An independent power producer,or A local government,or A governmental entity (which includes tribal councils and housing authorities);Aes}|1.2.2.Attached to this application is formal approval and endorsement for its project by or its board of directors,executive management,or other governing authority.If a No collaborative grouping,a formal approval from each participant's governing authority is necessary.(Indicate Yes or No in the box )Aes}|1.2.3.As an applicant,we have administrative and financial management systems and or follow procurement standards that comply with the standards set forth in the grant No agreement. lYes|1.2.4.If awarded the grant,we can comply with all terms and conditions of the attached or grant form.(Any exceptions should be clearly noted and submitted with the No application.) AEA 09-004 Grant Application Page 2 of 25 9/3/2008 =ALASKA Renewable Energy Fund GME ENERGY AUTHORITY Grant Application SECTION 2 --PROJECT SUMMARY Provide a brief 1-2 page overview of your project. 2.1 PROJECT TYPE Describe the type of project you are proposing,(Reconnaissance;Resource Assessment Feasibility Analysis/Conceptual Design;Final Design and Permitting;and/or Construction)as well as the kind of renewable energy you intend to use.Refer to Section 1.5 of RFA. The Igiugig Village Council (IVC)proposes to complete a multi-phase project to develop,test,and ultimately commercialize a river in-stream energy conversion (RISEC)project in the Kvichak River at Igiugig,Alaska.RISEC technology uses water turbines (similar to wind turbines)to convert the kinetic energy of a free-flowing river into electricity. The Igiugig Village Council d/b/a Igiugig Electric Company operates the electric utility in the community of Igiugig under Regulatory Commission of Alaska Certificate of Public Convenience and Necessity No. 681.The Igiugig power plant is an existing facility in operation prior to August 20,2008.The proposed RISEC project is a new project that is not in operation. The first phase of the project has been completed.A Scoping Brief was prepared by IVC that identified the potential resource and the community commitment to this project.IVC then teamed with the Electric Power Research Institute (EPRI),in conjunction with the Alaska Energy Authority,to further investigate the resource and prepare a system level design,performance,and cost assessment (refer to Appendix F). Phase II of this project is to conduct side-by-side in-water testing of at least two different near- commercial RISEC devices to evaluate electro-mechanical performance and assess potential environmental impacts.The steps under this phase,include: e assess the available energy resource, develop an environmental monitoring program, secure a FERC hydrokinetic pilot project license, develop and submit an RFP to RISEC equipment manufacturers, procure and employ the RISEC devices, monitor and evaluate performance and environmental impacts analyze and report findings and recommendations Phase III consists of final design and permitting of a commercial scale RISEC project,and includes: e geotechnical investigation e complete NEPA environmental permitting and secure FERC project license e develop and submit an RFP to RISEC equipment manufacturers e select commercial scale RISEC equipment, finalize business plan and project cost/benefit e finalize project design and electric grid integration Phase IV includes: e material procurement and mobilization RISEC installation and commissioning Environmental monitoring Ongoing performance and environmental monitoring and reporting The phased approach to this project will enable IVC to make an informed evaluation regarding the feasibility of incorporating renewable river energy into its energy portfolio,while simultaneously facilitating the commercial development of this new technology and sharing the results with other communities in the region and Alaska. AEA 09-004 Grant Application Page 3 of 25 9/3/2008 [=ALASKA Renewable Energy Fund QE ENERGY AUTHORITY Grant Application 2.2 PROJECT DESCRIPTION Provide a one paragraph description of your project.At a minimum include the project location, communities to be served,and who will be involved in the grant project. The Village of Igiugig is located at the outlet of Lake Iliamna,240 air miles southwest of Anchorage,on the southern shore of the Kvichak River.Igiugig has a year-round population of 56 (predominantly Yupik,Aleut,and Athabascan)rising in summer to about 75.Igiugig also provides goods and services to six area tourism lodges and their respective clients and workforce of 90 additional persons per week. This lake outlet location provides an ideal site for the study,testing and implementation of river in-stream energy conversion that will also benefit other Alaska communities considering this form of renewable energy.A RISEC plant will convert available river kinetic energy into electric power,and feed into the existing Igiugig electric grid to reduce diesel fuel consumption at the Igiugig power plant.Direct beneficiaries include the Lake and Peninsula School District (LPSD)and Igiugig electric service customers. IVC will be the Grantee under the Renewable Energy Fund project.IVC has teamed up with the engineering firm of Alaska Energy and Engineering,Inc.(AE&E),Electric Power Research Institute (EPRI),and the Bristol Bay Research and Science Institute (BBSRI).AE&E also brings to the team the geotechnical firm of Duane Miller Associates,LLC. AE&E is an Alaska-owned,Anchorage-based firm incorporated in 1993 specifically to provide design and project management services for rural energy projects.AE&E has built its reputation on the ability to provide practical design solutions and hands-on construction support to effectively meet the challenges of rural Alaska.We have fostered excellent working relationships with permitting and regulatory agencies, which ensures that our projects comply with current interpretation of state and federal regulations.The engineering staff of AE&E has extensive experience designing and constructing projects in remote sites throughout the state with particular emphasis in western Alaska.Our primary field of expertise is electric power generation and distribution,rural fuel storage and handling facilities,and energy systems integration. EPRI is a non-profit,public-benefit organization leading innovation in strategic areas of electricity technology through public-private partnerships.Over the past two and half years,EPRI has performed techno feasibility studies for offshore wave and tidal energy conversion;wave energy in 2004 and tidal in 2005 and early 2006.The tidal work evaluated the application of water turbines to convert the kinetic energy in a tidal stream to electricity.The tidal feasibility studies,for good sites,made a compelling case for investing in projects using this technology to diversify our energy supply portfolio.The case made was so compelling that within a couple of months of the completion of the EPRI feasibility studies, approximately 30 applications for preliminary permits were filed by private investors to the FERC and Nova Scotia Power announced a multi-million dollar tidal in-stream pilot plant in that province. BBSRI is an independent research institute established by the Bristol Bay Economic Development Corporation and is one of its non-profit subsidiaries.This multi-disciplinary team uses its technical expertise to devise and conduct scientific research and monitoring to improve management of fish stocks, fisheries,and the environments of the Bristol Bay region.The Institute also provides scholarships and on- the-job training to increase participation by area residents.BBSRI is currently under contract to the Alaska Department of Fish and Game to manage an ongoing seasonal Kvichak River smolt outmigration study.They have an established base camp near Igiugig with on-site personnel experienced in the operation of both traditional single beam upward-looking sonar and side-looking imaging DIDSON sonar equipment.The fact that this crew will already be situated near the proposed RISEC installation site will result in substantial savings for the planned RISEC fish impact study.AE&E has a long history of successful energy-related projects throughout Alaska,and has worked with both IVC and the school district on numerous projects dating back to 1995.EPRI just concluded an intensive feasibility study of RISEC technology in Alaska and at the Igiugig site in particular. AEA 09-004 Grant Application Page 4 of 25 9/3/2008 [=Renewable Energy Fund<-ALA'SKA Grant Application 2.3 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed,the anticipated sources of funds,and the nature and source of other contributions to the project.Include a project cost summary that includes an estimated total cost through construction. The estimated cost of construction for all three phases is $2,396,830 Of this amount,$44,200 has been expended on completed tasks and IVC has committed to provide a cash match in the amount of $50,000, as well as use of heavy equipment as a contribution in aid of construction.The balance requested for this project from the Renewable Energy Grant Fund is $2,302,630. There are a variety of sources of capital that may be available for this project,including Department of Agriculture,Rural Utilities Service grants and loans,Denali Commission funding,Bristol Bay Economic Development Corporation funding,private financing and commercial loans.However,due to the potential for this technology to have widespread application in many parts of Alaska,and the extensive pilot project testing and environmental evaluation costs required to document the validity of this technology, IVC is requesting full funding from the Renewable Energy Fund grant program so that we may proceed immediately with this vital project to the benefit of the community and all of rural Alaska. PHASE I.RECONNAISSANCE Igiugig Electric Hydropower Scoping Brief (1/08)-- Alaska RISEC Final Feasibility Study Report (10/08)$9,200 PHASE !TOTAL $9,200 PHASE II.FEASIBILITY ANALYSIS,RESOURCE ASSESSMENT &CONCEPTUAL DESIGN Existing Energy Assessment (Igiugig RPSU CDR 11/08)$35,000 Kvichak River Current Profile,Bathymetry and Preliminary Geotechnical Study $82,000 RISEC Pilot Project Permitting,Installation,Environmental Impact Study and Performance Monitoring $307,500 Phase II Engineering,Permitting and Project Management $127,500 EPRI Phase I!Consulting $72,500 Phase II Contingency @ 15%$93,675] PHASE Il TOTAL $718,175) PHASE lll.FINAL DESIGN &PERMITTING Phase Ill Engineering,Permitting and Project Management $98,750 Commercial RISEC Installation Geotechnical Investigation $236,000 EPRI Phase III Consulting $50,500 Phase Ill Contingency @ 15%$57,788 PHASE Ill TOTAL $443,038 PHASE IV.CONSTRUCTION,COMMISSIONING,OPERATION &REPORTING Fabrication,Construction and Installation of Commercial RISEC Device(s)$710,200] Commercial Project Environmental Impact Study $75,000 Phase IV Engineering and Project Management $96,250 EPRI Phase IV Consulting &Long Term Monitoring $185,000} Phase IV Contingency @ 15%$159,968) PHASE IV TOTAL $1,226,418 PROJECT TOTAL $2,396,830: Less Local Match Funds ($50,000) Less Completed Tasks ($44,200) TOTAL GRANT REQUEST $2,302,630 AEA 09-004 Grant Application Page 5 of 25 9/3/2008 {=ALASKA Renewable Energy Fund MB ENERGY AUTHORITY Grant Application 2.4 PROJECT BENEFIT Briefly discuss the financial benefits that will result from this project,including an estimate of economic benefits(such as reduced fuel costs)and a description of other benefits to the Alaskan public. Local economic benefits The EPRI feasibility study evaluated the financial benefits expected to accrue from this project.While the Phase H pilot project development portion of the project does not have a simple payback,the estimated payback period for the commercial scale facility is 3 to 4 years,at an avoided cost of diesel fuel at 65 cents/kWh,including the initial capital outlay and ongoing operation and maintenance cost of the RISEC plant.Additional benefits include the development of an emission-less renewable energy resource and a reduction in carbon footprint,as well as local economic development during the installation,monitoring, and evaluation phases of the project. Benefits to Alaskan public The primary benefit of this project reaches far beyond the Village of Igiugig.As a pilot demonstration project,the resulting data will aid the Authority and other Alaska communities considering RISEC renewable energy and help to evaluate the current technology,provide a decision-making framework, advance subsequent design and permitting processes,and ultimately refine and reduce installation and operating costs. 2.5 PROJECT COST AND BENEFIT SUMARY Include a summary of your project's total costs and benefits below. 2.5.1 Total Project Cost $2,396,830 (Including estimates through construction.) 2.5.2 Grant Funds Requested in this application.$2,302,630 2.5.3 Other Funds to be provided (Project match)$94,200 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3)$2,396,830 2.5.5 Estimated Benefit (Savings)$refer to above 2.5.6 Public Benefit (If you can calculate the benefit in terms of $refer to above dollars please provide that number here and explain how you calculated that number in your application.) SECTION 3 -PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope,schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include a resume and references for the manager(s).If the applicant does not have a project manager indicate how you intend to solicit project management Support.If the applicant expects project management assistance from AEA or another government entity,state that in this section. Bonnie Thurston,Igiugig Village Administrator,will be the Grant Manager.She will be the single point of contact with AEA and will execute all grant,contractual and administrative responsibilities.Ms.Thurston has experience as a grant facilitator and as an administrator,working extensively with state and federal agencies as well as the Lake and Peninsula School District.She is skilled in tracking grants, communications,and deals smoothly and professionally with executive officers,upper management, employees,vendors,and customers in day-to-day and occasionally adverse situations. Brian C.Gray,P.E.,AE&E,,will serve as the Project Manager.He will work with the Grant Manager to commit essential engineering disciplines to ensure a successful project.For the past 17 years he has served as project manager and project engineer for the design and construction of rural power generation, fuel storage,and energy-related projects in Alaska communities totaling more than $110 million.His responsibilities have included feasibility analysis,program development,budgeting,design,permitting, construction management,and system startup.For this project,Mr.Gray will establish specific man hour AEA 09-004 Grant Application Page 6 of 25 9/3/2008 [=ALASKA Renewable Energy Fund IE ENERGY AUTHORITY Grant Application and reimbursable budgets,and schedule the necessary technical staff.He will track specific contractual deliverables against the schedule to ensure adequate resources are available to meet critical milestones. He will analyze all relevant issues such as available shipping options,permitting and site control issues, and procurement requirements.Drawing on the expertise of our team,he will assign specific project tasks to responsible team members.Mr.Gray will oversee all technical work and coordinate the efforts of our team to ensure the efficient and cost effective production of project designs.He will develop a realistic project schedule to address critical issues in proper sequence to minimize cost and maximize construction resources. Mr.Gray will be directly responsible for the quality of all work produced by our team.He will oversee and review all critical tasks and provide input and support on all significant design issues.He will ensure that design review comments from the Authority and the Village of Igiugig are adequately addressed and incorporated into final design documents,and he will manage the logistics of construction support.His working relationship with Authority staff dates to the early 1990s.Mr.Gray has the authority to assign the technical personnel and resources necessary to successfully complete this project. 3.2 Project Schedule Include a schedule for the proposed work that will be funded by this grant.(You may include a chart or table attachment with a summary of dates below.) The RISEC project schedule,for this multi-phase,multi-year,pilot through commercialization project,is shown in detail on this and the next page: IGIUGIG RISEC PROJECT SCHEDULE Task/Year 2009 2010 2011 1 st gnd 3 4th 1 st gnd 3"4"41st gna gr 4h Qrtr |Qrtr |Qrtr |Qrtr |Qrtr |Qrtr |Ortr |Qrtr |Qrtr |Qrtr |Ortr |Qrtr PHASE Ii FUNDING ANNOUNCED Xx FERC RISEC PILOT PROJECT LICENSE KVICHAK RIVER ADCP & BATHYMETRY &PRELIM.XemwweeX GEOTECH EVALUATION ANALYZE DATA & DEVELOP PILOT DEVICE »eee!PERFORMANCE SPECS PILOT DEVICE PROCUREMENT DELIVER,INSTALL &TEST RISEC PILOT DEVICE(S) FISH IMPACT STUDY PLANNING,FIELD WORK,x x ANALYSIS &REPORT DATA CAPTURE PLANNING,MONITORING,x x ANALYSIS &REPORT COMPREHENSIVE ANALYSIS &GO/NO-GO badbadXonwoneX AEA 09-004 Grant Application Page 7 of 25 9/3/2008 [=ALASKA Renewable Energy Fund @iK_>ENERGY AUTHORITY Grant Application IGIUGIG RISEC PROJECT SCHEDULE (CONT'D) Task/Year 2012 2013 2014 1 st and 3rd 4 1 st gnd 3rd 4th 1 st gnd 3"4th Qrtr |Qrtr |Qrtr |Qrtr |Qrtr |Qrtr |Qrtr |Qrtr |Qrtr |Qrtr |Qrtr |Qrtr PHASE Ill DEVELOP COMMERCIAL DEVICE PERFORMANCE =|X---=--=-e-nennnne=XSPECS STRUCTURAL ELEMENT DESIGN CONDUCT GEOTECH INVESTIGATION FERC &STATE PERMITTING &SITE CONTROL FOR COMMERCIAL DEVICE(S) BUSINESS &OPERATIONS PLANS PHASE IV COMMERCIAL DEVICE(S) PROCUREMENT STRUCTURAL ELEMENT CONSTRUCTION DEPLOYMENT OF COMMERCIAL RISEC X=-X DEVICE(S) GRID EXTENSION & INTEGRATION COMMISION RISEC DEVICE(S)AND REMOTE x-X MONITORING SYSTEM FISH IMPACT FOLOW-UP STUDY ON COMMERCIAL X---X INSTALLATION FINAL REPORT,AS- BUILTS,O&M MANUALS CONTINUING LONG TERM PERFORMANCE Xereewwe= MONITORING &ANALYSIS XeerceveececenneceenK KewserenX XreeeeX AEA 09-004 Grant Application Page 8 of 25 9/3/2008 [=ALAS Renewable Energy Fund=>ALASKA Grant Application 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. Project milestones (see above tables for details ofcomponents and dates)include: Kickoff Meeting o Present a detailed project plan and assure mutual expectations among project participants. RISEC Pilot Device Design/Solicitation ©The RPF for two RISEC test devices will be completed by the end of 2009 based on data from acoustic Doppler current profiles,bathymetric surveys and preliminary Geotechnical studies of the Kvichak River. FERC Permitting,Environmental Monitoring Plan co The fish impact study plan and the FERC license should be in hand by the second quarter of 2010,ready for arrival of the RISEC devices and testing. Pilot Project Testing o Phase II pilot testing of the vertical and horizontal RISEC devices will take place during 4 quarters,from mid 2010 to mid 2011.Upon completion of testing and inspections,a Go/No Go decision for Phase III (commercial design &permitting)will be made by the end of 2011 based on a comprehensive financial,performance,and environmental analysis. Cost/Benefit/Recommendations for Commercial Installation o The end of Phase III in mid 2013 will have the final business plan and operational plans completed as well as permitting with FERC,Alaska Coastal Management,Corps of Engineers,Fire Marshal,and others.Site control will have been secured. Commercialization o Completion of construction and beginning of operations will take place in the third quarter of 2013 with installation of grid integration equipment and cable interties. Monitoring of juvenile and adult fish will be during the first salmon season following the commercial RISEC installation to verify the response is as predicted. Final Report/Continuing Long-term Monitoring o The success of the RISEC plant will be analyzed with recommendations by the end of 2014.EPRI will continue to remotely monitor the Igiugig RISEC system for at least three years following the completion of the project in order to provide a long term performance evaluation of the RISEC technology employed and to determine the overall benefits to the community. 3.4 Project Resources Describe the personnel,contractors,equipment,and services you will use to accomplish the project.Include any partnerships or commitments with other entities you have or anticipate will be needed to complete your project.Describe any existing contracts and the selection process you may use for major equipment purchases or contracts.Include brief resumes and references for known,key personnel,contractors,and suppliers as an attachment to your application. In addition to the Grant Manager and Project Manager annotated in Section 3.1,our team includes the following personnel,contractors,equipment and services.IVC will be the single point of contact and will execute all grant,contractual,and administrative responsibilities.AE&E will provide all design, permitting,system integration,and construction management.EPRI will serve as RISEC technical consultants.BBSRI will plan and implement fish studies and environmental monitoring. AEA 09-004 Grant Application Page 9 of 25 9/2/2008 f=ALASKA Renewable Energy Fund ME ENERGY AUTHORITY Grant Application Alaska Energy &Engineering,Inc. John Dickerson,EIT,AEE,will be the lead Design Engineer/Construction Manager.He has more than 25 years of Alaska construction,engineering,project management,and business management experience.For the past nine years,he has served as project engineer for the design and construction of over $25 million worth of rural power system and fuel storage projects in Alaska communities, Responsibilities have included site investigations,design,drafting,cost estimation,procurement, logistics,and construction management.As a design engineer,Mr.Dickerson has prepared construction documents for heating,ventilation,plumbing,refrigeration,fuel storage and ASME B31.3 process piping systems for a range of commercial and industrial facilities.His has developed a long working relationship with the Village of Igiugig and the Lake and Peninsula School District as well as the Authority. Steven J.Stassel,P.E.,AES&E president,will accomplish the Environmental Permitting.He has more than 21 years of engineering experience,including rural Alaska energy projects in more than 125 communities.He has been responsible for permitting and fulfilling all regulatory and environmental compliance requirements (Wetlands,Flood Mitigation,Coastal Zone,NEPA Environmental review)and state and federal agency coordination.He has successfully permitted more than 40 energy-related projects in rural Alaska. Duane Miller Associates,LLC Duane L.Miller,P.E.,DMA,will provide Geotechnical Services as a subconsultant to AE&E.He has more than 36 years of experience as a geotechnical engineer on a variety of projects onshore and offshore in Alaska,California,and Guam.He has special training and experience in arctic engineering, engineering geology,and coastal and earthquake engineering.Mr.Miller has provided geotechnical engineering services on architectural,civil,mining,petroleum,and military projects across Alaska since 1973 and has worked extensively with the Authority and AE&E. Electric Power Research Institute Roger Bedard,M.E.,EPRI,will serve provide RISEC Technical Consulting.He has more than 40 years of engineering R&D experience,focused recently on emerging energy systems.He will work with the Project Manager to bring his and EPRI's expertise in renewable energy,in-stream river and tidal power,to the team.He has been the EPRI Ocean Energy leader since 2004 and managed in-stream projects across the continent and several in Alaska,including the RISEC study in Igiugig that is the foundation for this proposal.His EPRI Ocean Energy Program has accelerated the deployment and commercial development of in-stream renewable resource technologies.He and its engineers together have published more than 18 public reports on various aspects of tidal energy conversion,including resource assessments,conceptual design studies,environmental effects,cost and economics. Mirko Previsic,P.E.,EPRI/re-vision LLC,will provide RISEC Technical Consulting from his 10 years of experience with the design,evaluation and optimization of renewable power generation systems, theoretical modeling,resource assessments,feasibility studies,and environmental impact studies with an emphasis on wave and tidal power conversion.He has had primary technical responsibility in many high- profile studies of wave,tidal and river-in-stream power conversion for various state and federal government agencies,research institutes,technology development companies and utilities.He is the Technology Lead in the RISEC projects for EPRI Ocean Energy programs and was instrumental in the baseline RISEC study in Igiugig. Bristol Bay Science and Research Institute Michael Link,BBSRI executive director,will develop the Environmental Monitoring plan, perform and evaluate fisheries studies,and interface with the Alaska Department of Fish and Game.He has spent two decades designing and implementing fisheries research and management programs in Alaska and western Canada.BBSRI is an independent research institute established in 1999 by Bristol Bay Economic Development Corporation to undertake research and education to lead to a greater understanding of the fish stocks,fisheries,and the environments of the Bristol Bay region.Mr.Link leads the interdisciplinary team to improve management of area fish stocks and to increase participation by locals by establishing in-house expertise and knowledge. Igiugig Village Council Igiugig Village Council has an extensive Infrastructure.The community has a 3,300-foot airport AEA 09-004 Grant Application Page 10 of 25 9/3/2008 [=ALASKA Renewable Energy Fund BE ENERGY AUTHORITY Grant Application runway with AWOS and GPS approach.Barge service via Bristol Bay is available August through September most years.The community is barge-accessible for Anchorage/Kenai/Homer May through October via the Pile Bay/Williamsport Road,and across Lake Iliamna all years.The IVC owns a 30'x 80'FlexiFloat flat deck barge capable of carrying 225,000 pounds and distributes 90%of non fuel-related goods for all the communities and businesses of the Lake Iliamna region.Local residents have multiple 32x13'aluminum 450HP plus diesel-powered fishing boats that pull or push the FlexiFloat when needed. Many power skiffs ranging from 18”to 24”and 80 to 150HP are available as well to assist in any potential installation and/or operational activities. Hliamna Lake Contractors,LLC Igiugig Village Council is an owner of a Tribal Heavy Construction Firm,Iliamna Lake Contractors LLC,and has access to a large inventory of heavy equipment that is fully operational,modern and well maintained,including: e ==Cat 330 and 320 excavator Cat 966 and 950 loaders,buckets and forks 10 yard cement truck and fill hopper Cat 163 grader and JD 572 grader Numerous 10/12 yard end dumps,20 yard Cat D300E articulating dump Plasma cutter/welders,aluminum,steel,etc. Cat D7,Cat D6,Cat D4,2 JD 450 dozer/backhoes 40'boom truck,15,000 Ib.crane e Numerous light and heavy power tools,winches,etc. All of the above can operate off of FlexiFloat barge. RISEC technology provider RISEC technology vendors will be selected based on a competitive RFP process tailored specifically to the characteristics of the Igiugig project. The project will be constructed using primarily utility and local force account labor.Locally available contractors will be used for the assembly and installation of the RISEC modules.All major purchases and construction contracts will be in accordance with the Village of Igiugig procurement policies. Our proposed organization chart (below)for this project introduces and identifies key members of our team and shows the lines of authority.Each engineering discipline is led by a professional engineer registered in the State of Alaska.All engineering documents will be stamped by Alaska registered engineers. Refer to Appendix A for resumes of key personnel AEA 09-004 Grant Application Page 11 of 25 9/3/2008 =>ALASKA Renewable Energy Fund ME ENERGY AUTHORITY Grant Application AEA PROGRAM MANAGER AEA CONTRACTS MANAGER IGUGIG VILLAGE GRANT MANAGER BONNIE THURSTON TECHNICAL CONSULTANTS ROGER BEDARD/EPRI MIRKO.PREVISIC/EPRI PROJECT NANAGER BRIAN GRAY,P.E./AES&E ENVIRONMENTAL PERMITTING ||LEAD DESIGN /CONST MGT GEOTECH /BATHYMETRY STEVE STASSEL,P.E./AE&E JOHN DICKERSON /AE&E DNA FISHERIES STUDY/MONITORING CONSTRUCTION SUPPORT NDEPENDENT TEST VERIFICATION BBSRI ILIAMNA LAKE CONTRACTORS EPRI 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Alaska Energy and Engineering is in communication with AEA staff on almost a daily basis on a variety of active projects.The Authority Project Manager will be kept up to date on the RISEC pilot project status by periodic email and/or verbal status reports,in addition to written quarterly reports that will be submitted by the Village of Igiugig Grant Manager.Periodic reports will provide general information regarding project status and any unforeseen circumstances that need to be resolved.The quarterly reports from the Grant Manager will include specific information on project completion status vs.project schedule;project labor reports -including hours,rates and costs;and current project expenditures relative to budgeted project costs. In addition to regular email updates and quarterly reports,we also propose to conduct a minimum of four briefings: e an initial kickoff briefing of the detail project implementation plan, ©amid term review at the completion of the Phase II Pilot Project, e areview at completion of final design and permitting, e anda final briefing of all project results. AE&E has provided design and construction support services on over 80 energy infrastructure-related projects throughout Alaska over the past 15-years.Our long-term working relationship with the Authority assures well-tested monitoring methods and seamless channels of communication. 3.6 Project Risk Discuss potential problems and how you would address them. The risk associated with this project to develop emerging RISEC technology will be mitigated byimplementingariskidentificationandmitigationprogramforthedurationoftheproject.At this proposalstage,the primary risks and our proposed mitigation plan are as follows: 1.Risk of increased project cost -the cost estimate to construct and operate the commercial plant is currently at the preliminary design stage of development.There is a risk that the cost estimate AEA 09-004 Grant Application Page 12 of 25 9/3/2008 f=ALASKA Renewable Energy Fund ME ENERGY AUTHORITY Grant Application will increase during the final design and permitting stage of development.This risk will be mitigated by the development and testing performed during the Pilot Project phase,by deferring selection of a RISEC technology provider until the final Phase IV,and by developing a concise and specific RFP solicitation for selecting the final technology provider. 2.Risk of measurable environmental affects -As RISEC technology is emerging;there is currently uncertainty about interactions between the RISEC turbines and the environment in which they are generating electricity.The primary purpose of a pilot plant is to gain technical,environmental, and commercial confidence in a technology.To minimize risk and maximize the outcome of this RISEC pilot project,the Village of Igiugig is enlisting the services of Bristol Bay Science and Research Institute to develop a study plan to identify the horizontal and vertical turbines'effects on the spring out-migration of smolt and summer return of adult fish.Environmental effects will be monitored and mitigated,if possible,or the RISEC turbines will be pulled from the water. There are additional elements of risk that arise in any rural Alaska construction project;however,the risk associated with this project is well managed.A highly competent team of professionals has been assembled with the skills and motivation necessary to see this project through to successful completion. The project has been devised to proceed in distinct phases,with carefully planned go/no go decision intervals.In the event that the pilot project is deemed unsuccessful,or the Village of Igiugig changes its direction or power production needs,the latter phases of the project may be postponed or cancelled with little additional risk. IVC understands the potential risks from this project,but seeks to be an early adopter of RISEC technology and realize the benefit of reduced diesel fuel consumption by utilizing a readily available renewable resource.Demonstration of increased cost certainty and minimal environmental effects of this technology at Igiugig will benefit many remote villages in the state of Alaska.IVC is willing to accept these risks. SECTION 4 --PROJECT DESCRIPTION AND TASKS e Tell us what the project is and how you will meet the requirements outlined in Section 2 of the RFA.The level of information will vary according to phase of the project you propose to undertake with grant funds. e If you are applying for grant funding for more than one phase of a project provide a plan and grant budget for completion of each phase. e /f some work has already been completed on your project and you are requesting funding for an advanced phase,submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs.other alternatives that may be available for the market to be served by your project. The current in the Kvichak River that flows past Igiugig is a renewable resource identified as one of the prime sites in Alaska for a pilot demonstration project of River In-Stream Energy Conversion.In Phase I Reconnaissance studies done by EPRI,we found that the river's discharge rates and related power- densities at Igiugig are more consistent year-round than the typical summer peak found in other rivers. Lake Iliamna,the Kvichak's source,smoothes the summer/winter variability.The pilot demonstration project will start with up to 10kW of RISEC turbines.The commercial RISEC plant is expected to be rated at least 40kW to meet the communities community's base electric load. The river is relatively shallow and velocities are highest in the middle of the channel and near the surface. The water depth at the site of interest will likely limit the rotor size to 1.5m.Unlike areas farther AEA 09-004 Grant Application Page 13 of 25 9/3/2008 f=ALAS KA Renewable Energy Fund ME ENERGY AUTHORITY Grant Application downstream,this portion of the river remains ice-free during the winter.During spring breakup of Lake Iliamna (about two weeks)and during occasional wintertime wind-driven lake ice releases,the turbines would need to be removed to protect them from ice chunks. There does not appear to be another more viable energy alternative to RISEC power,at this time.Although the R&D costs associates with the development of the pilot project are relatively high,the implementation costs of the commercial RISEC plant are anticipated to be relatively low,since the existing community powerhouse and electric distribution system are located within 200 feet the river/hydro source. The Kvichak River bed is believed to consist of a fine silt base and an overburden of cobbles,rocks and gravel,depending on current and location of river width.Directly adjacent to the powerhouse the river expends its greatest velocity and/or gradient as it leaves Lake Iliamna and winds down the "'cut-bank.”The riverbed here is characterized by rocks approximately 6”-12”in diameter interlaced with stones,sand,and gravel for a protective barrier to the underlying silts.River width at this location is approximately 437 feet. River depth raises approximately 4 to 6 feet in depth May through October with temporary wind-driven increases of an additional 6”to 2'.Greatest depths occur in late fall (September/October)and lowest depth after ice cover loss on Lake Iliamna in April/May. The following illustration shows the water velocity readings taken on June 20,2007.Detailed river cross- sectional profile and the depth averaged velocity measurements will be performed at the early stages of the Pilot Project to determine the optimum RISEC location and to develop the RFP specifications. ror =cBOONa '2g 1°:4.90fpsdA4°:4.98fpses5°:4.30fps we a2WgboxCPaHemyLenePune>SARE EIS BPA a eenAROS aefen*ei*SURVET ycporeATE®No.4756aeeevata US SURVEY No.7796 Lot 12 US SURVEY NA Cart,50-91-0768 No.7796GrantofEasementtoUSSURVotty<jaeee Viloge Counct No.77 .Lot 9]Distances: 50-90-0 e from shore to readings in boxes aFouze.Pge.50 -S2 .i 'ear tte he Ae .7 we and d is 15 -qracta GHft aT "ef x e from boxes a and d to readings in aS boxes b and e is 100°eleag -e from boxes b and e to readings in :if wk|7 sepoehent Lend ke aia8VilogeCouncilter BY|Bk.27,Pg.341-358 |iGrant jot Rowteeeeee.VT}a Regiongl Aftoirs he boxes c and fis 130° Given that water depth will be the limiting factor on rotor diameter,it is possible that the total number of installed rotors for a commercial installation could range from a dozen to more than twice that number, depending on the plant rating scenario chosen.A high penetration design scenario would likely result in a RISEC installation with a total peak output of around 40kW. Total river freeze-over is rare at this location and usually requires a freeze/thaw/wind event to push ice out of the lake and fill the river.Twenty-five years of local experience estimates that this portion of the river is frozen over completely less than two weeks of the year.Some years no ice has formed or discharged down AEA 09-004 Grant Application Page 14 of 25 9/3/2008 f=ALASKA Renewable Energy Fund QM ENERGY AUTHORITY Grant Application the Kvichak.Spring breakup usually occurs March through May,with ice passage lasting approximately two to three weeks.Thickness of passing ice ranges from 3”to 4'.Final commercial design will incorporate methods to protect the RISEC system from potential ice damage. Water clarity is extremely high during periods of calm wind with visual bottom observation possible at 10 feet or more.Prevailing east winds may increase turbidity with organics and silt,but these readily settle depending on direction and change of wind speed.The Kvichak River has little to no large debris,as sparse vegetation and its close proximity to the outlet doesn't allow these obstructions to accumulate.The west end of Lake Iliamna is virtually free of large debris. The Kvichak River is a navigable waterway that allows a range of marine traffic from a skiff to a LCM barge that may draw up to 8'.Directly adjacent to the powerhouse,traffic is minimal due to the heavy current and lack of infrastructure requiring access.The USGS maintains a stream gauging station on the Kvichak River at Igiugig (Station#15300500 Kvichak River at Igiugig),with 21 years of daily discharge records over the period between 1966 and 1987.That data was used to establish a data set suitable for evaluating RISEC technology.First a relationship between discharge rate and velocity was established; that relationship function was then applied to the full data set to determine the statistical parameters shown below. It is important to note that the velocity profiles and associated power densities below are valid for the USGS station site,which was used to calibrate the flow and velocity data for the EPRI Reconnaissance level assessment (refer to Appendix F). USGS Station Summary Station Name:Kvichak River at Igiugig,AK Station ID:15300500 Lake And Peninsula Borough,Alaska Hydrologic Unit Code 19030206 Latitude 59°19'44",Longitude 155°53'57" Drainage area 6,500.00 square miles Gage datum 45.00 feet above sea level Resource Data Overview Velocities Unit Average Velocity mis 1.41 Average Mid-Channel Velocity mis 1.84 Power X-Section Average Power Density kW/m42 1.48 Mid-Stream Average Power Density kW/m*2 3.24 Average Total Kinetic Power kW 719 Dimensions (During Typical Discharge Conditions) Discharge Rate for Referenced Dimensions _|m'3/s 487 Cross-Section m2 365 Width m 152 Average Depth m 2.4 Deepest Point m 3.7 Discharge Average m3/s 507 Maximum m3/s 1,277 Minimum m43/s 181 Maximum Stage Differential m NA During the first step of Phase II,an acoustic doppler current profile (ADCP)of the proposed RISEC AEA 09-004 Grant Application Page 15 of 25 9/3/2008 [=ALASKA Renewable Energy Fund @ME ENERGY AUTHORITY Grant Application location will be performed to identify "hot spots”where the river velocity is greatest,and to correlate the historical USGS streamgauge data to the site.The short term ADCP measurements will support extrapolation of the historical USGS data to provide a realistic annual flow profile at the selected RISEC site without the need for multiple years of local velocity measurements. 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system.Include information about the number,size,age,efficiency,and type of generation. The Village of Igiugig has three diesel-powered generators ranging from 60 to 100kW that work independently of load,as necessary,to energize the community's 7200-volt,three-phase distribution system.The generators were installed in a two-phased program in 1998 and 2002. The Alaska Energy Authority has prepared a conceptual design report for a powerhouse,power distribution and generation heat recovery system upgrade at Igiugig.The following proposed upgrades will modernize the existing Igiugig power plant and improve the overall fuel efficiency,reliability,fire prevention/protection and operations at the facility: e Replace all three existing generators utilizing marine jacketed units for maximum generation heat recovery. e Replace existing switchgear and relays with new programmable automatic paralleling switchgear with load sharing capabilities set up for possible integration of alternative energy generation. e Remove existing siding/roofing and interior fiberglass batt insulation and replace with new insulated sandwich panels. e Install new interior mounted critical grade silencers on all three generators. e Replace existing ventilation equipment with sound-insulated air intake and exhaust fan ducting. e Install new radiators with variable speed motor controls,to minimize station service power consumption. e Replace existing engine coolant manifold and heat recovery system,including thermostatic valve, brazed plate heat exchanger for improved efficiency.Install energy meter for system monitoring. e Install new fire detection and suppression system. e Provide sound insulated control room with personnel heater. e Reuse existing fuel supply pipeline,day tank and control panel. The upgrade is expected to include new Tier II marine gensets and auto synchronized switchgear that monitors loads and integrates proper generator set capacity and operation per load requirement.Design engineers are evaluating alternative energy upgrades in the powerhouse design to ensure cost-efficient implementation and to support integration of a RISEC project. The IEC power plant has been the sole source of power generation for Igiugig and it is anticipated it will continue to be the prime power source even as other alternative energy projects are developed. 4.2.2 Existing Energy Resources Used Briefly discuss your understanding of the existing energy resources.Include a brief discussion of any impact the project may have on existing energy infrastructure and resources. Diesel fuel is delivered to Igiugig by barge in summer and stored in bulk at a tank farm adjacent to the powerhouse.The proposed RISEC project will displace diesel fuel but will not completely replace the diesel generation capability.The RISEC system will be sized to provide sufficient energy for the lowest load day of the year.Diesel generation will be used for load following. AEA 09-004 Grant Application Page 16 of 25 9/3/2008 [=ALASKA Renewable Energy Fund GM ENERGY AUTHORITY Grant Application 4.2.3 Existing Energy Market Discuss existing energy use and its market.Discuss impacts your project may have on energy customers. A power recorder was installed in the Igiugig power plant in December 2007 to gather community power demand data for the RPSU project design.Data from this recorder was downloaded in September 2008. The data shows a winter peak daily load of around 52kW in January 2008 and the summer peak daily load of around 42kW in June 2008. Steady growth in Igiugig's summer peak loads and annual generation are likely over time due to expected increases in tourism as well as planned new developments including a clinic,water treatment plant and subdivision development. In 1983 IEC successfully supplied power to several lodges near Igiugig after installing a submarine cable across the Kvichak River directly below the power plant.However the cable was left in during the winter and was damaged by lake ice in the spring and has not been replaced.These lodges have recently approached IEC about resuming this service.With better boats and equipment available in the community now,IEC is considering a seasonal service with the submarine cable removed each year prior to freeze-up. It is projected that this additional seasonal load would cause summer peak and monthly demand to approach the current winter loads. Based on these factors,it is estimated that annual generation requirements will grow to over 250,000kKWH and peak demand loads will reach 75kW or more within five years. A successful commercial RISEC installation and a corresponding decrease in local electricity rates could encourage both public and private facilities to increase the use of electric space heating in the future, potentially increasing peak demand and further increasing annual generation requirements. 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design,land ownership,permits,and environmental issues. 4.3.1 System Design Provide the following information for the proposed renewable energy system: e Adescription of renewable energy technology specific to project location Optimum installed capacity Anticipated capacity factor Anticipated annual generation Anticipated barriers Basic integration concept Delivery methods The Phase I Scoping Brief and RISEC Reconnaissance level feasibility study,and Task 1 Energy Assessment of Phase II have been completed,refer to Appendix F for detailed information. Phase II -Pilot Demonstration Project Building on information gathered in the prior Phases,this phase will establish the project configuration and specifications that will be used to guide construction,refine project cost estimates,finalize business plans,and obtain land use and resource authorizations required for construction.Work shall address the information and tasks below. Task 11.2 -Energy Resource Assessment AEA 09-004 Grant Application Page 17 of 25 9/3/2008 [f=ALASKA Renewable Energy Fund @@K_ENERGY AUTHORITY Grant Application An acoustic doppler current profile (ADCP)and bathymetric survey of project site and preliminary Geotechnical evaluation will be performed.The ADCP will provide specific river flow information to select the preferred RISEC installation site,and the bathymetric survey will provide a contour map of the river bottom.Analysis of ADCP/bathymetric data will be used to develop specific performance specifications for the RISEC pilot devices.A preliminary geotechnical evaluation will also be performed at this time using acoustic technology to probe and assess the river bottom conditions. Task II.3 -RISEC Pilot Device Design/Solicitation RISEC devices are at a very early stage of development.To carry out the prior Reconnaissance level performance,cost,and economic assessments,EPRI established a baseline device design consisting of open rotor horizontal axis turbines mounted on a pontoon structure.The pilot project RISEC equipment; however,will be tailored specifically to the Igiugig application using results of the Kvichak River acoustic doppler current profile,bathymetric survey,and preliminary geotechnical research.We will develop and submit to qualified vendors an RFP based specifically on the Igiugig RISEC parameters.It is anticipated that the pilot project RISEC device will have a 10kW maximum output.The RFP will require the manufacturer to provide the recommended structural support elements (pontoons)for this phase of the project. Due to the relatively high cost of developing and monitoring a RISEC pilot project in remote Alaska, compared to the RISEC equipment purchase cost,the pilot project will select and test two different RISEC technologies in a side-by-side evaluation.The purpose of this dual-effort is to identify potential differences in electro-mechanical performance,as well as possible differences in environmental impact.The initial focus will be to the preliminary selection of one horizontal axis and one vertical axis RISEC power unit for pilot project. Task II.4 -RISEC Pilot Project License,Permitting and Fish Impact Study Design An application for a FERC hydrokinetic pilot project license is currently underway.Bristol Bay Science and Research Institute (BBSRIJ)will provide a biologist and a technician to work with IVC to develop a specific and detailed fish impact study plan based on selected RISEC pilot device configurations.The NEPA project level environmental review will also be initiated and comments solicited for federal and state regulators and project stakeholders. Task IL5 -Procure and Deploy RISEC Pilot Devices Upon completion of the pilot project license and permitting requirements,and review of proposed RISEC technologies,two RISEC pilot devices will be selected and procured for installation and testing.This task will also include specifying,procuring and installing the wireless remote RISEC performance monitoring/SCADA equipment,current measurement devices and load banks for installation on the RISEC pilot devices.Materials will be specified and procured for RISEC anchoring systems.All materials will be purchased FOB Homer,barged to Pile Bay on the west shores of Cook Inlet at Kamishak Bay,then trucked over Pile Bay Road to Williamsport on the eastern shore of Lake Iliamna.Materials will then be freighted by ILC flexi-float to Igiugig for installation. Upon arrival in early spring,the RISEC pilot devices will be assembled and the outfitted with the load bank and telemetry equipment.The anchoring systems will be fabricated and the RISEC pilot devices deployed utilizing local equipment and flexi-float barge.The RISEC pilot devices will then be commissioned and wireless remote performance monitoring of the electro-mechanical systems will begin. Task II.6 -Smolt and Adult Fish Impact Studies The Bristol Bay Science and Research Institute (BBSRI)will provide a biologist,technician and other support staff as required to conduct a single season fish impact study.The study will use side-looking imaging (DIDSON)sonar,single-beam up-looking sonar arrays,net sampling and physical observation to evaluate the response of juvenile and adult salmon to the deployed pilot RISEC devices.Field data will be compiled and a fish impact study report will be completed for both RISEC pilot devices. Task II.7 -Conduct RISEC Pilot Project Remote Performance Monitoring AEA 09-004 Grant Application Page 18 of 25 9/3/2008 {=ALA Renewable Energy Fund«=ALASKA Grant Application Coincident with the fish impact study,daily RISEC pilot device performance and river current data will be collected.During this timeframe,periodic on-site inspections and maintenance of RISEC pilot devices will be performed.It is expected the RISEC units will remain in the water until late fall,when the risk of damage from lake ice increases. RISEC pilot device electro-mechanical performance data will be compiled and assessed and final performance reports will be prepared and issued. Task I1.8 -Preliminary Analysis &Recommendations The Igiugig team will perform comprehensive financial,performance and environmental analysis of the RISEC technologies tested.Careful consideration will be given to address performance vs.assessed environmental affects.After careful evaluation of all aspects of the project,a Go/No-go decision will be made for the commercial scale RISEC power project in Igiugig. Presuming a Go decision is reached,performance specifications and structural element conceptual design for the commercial scale RISEC project will be finalized.It is anticipated that sufficient geotechnical data can be acquired using echoic methods during the pilot project river current and bathymetry phase to support detailed conceptual design.Due to the anticipated high cost of performing a full geotechnical evaluation of the river floor using conventional drilling techniques,the final geotechnical study will not take place until after a Go decision has been reached.The process of producing a draft business and operational plan will be initiated at this step. PHASE III.FINAL DESIGN &PERMITTING Task III.1 -RISEC Commercial Installation Design/Solicitation Due to AE&Es ongoing involvement with the energy infrastructure in Igiugig over the past 10 years,we have detailed record data of the Igiugig powerhouse and electric distribution systems for coordination with the RISEC commercial scale project.A thorough analysis of current and potential near-term future electrical use within the community will be conducted and compared to potential RISEC capacity scenarios based on the analysis of the ADCP and bathymetric data collected.This information will be used to determine the total RISEC capacity and design that will provide the optimum project cost/benefit.A grid integration study will be completed and the conceptual design advanced to approximately 65%.Once sufficient design detail has been developed,the geotechnical investigation for proposed commercial RISEC installation will proceed. A RFP for the commercial RISEC equipment will be prepared and submitted to manufacturers based on final performance specifications,structural element conceptual design,geotechnical investigation and grid integration design.It is anticipated that at this juncture,a single RISEC technology vendor will be selected for the RISEC power units for the commercial project. Task III.2 -Permitting &Site Control for RISEC Commercial Installation In conjunction with the RFP development,and immediately after the Go decision has been reached,final application to FERC for a hydrokinetic license will be made,along with the commercial scale NEPA environmental review process,including Alaska Coastal Management,Corps of Engineers,Fire Marshal, and other state and federal regulatory agencies.Site control requirements will also be confirmed and site control secured as required for the RISEC commercial project. Task III.3 -Project Cost and BenefitsAfinalcostestimateforRISECcommercial installation project will be developed and sufficient funding and resources verified prior to moving forward with construction of the commercial plant.A detailed cost benefit analysis will be performed based on final construction costs and the performance data acquired during the pilot project Task II1.4 -Final Analysis &Recommendations for Commercial Installation Project All site control,funding,and the business operating plan will be finalized.A report will be prepared and issued detailing the final design recommendations,estimated construction costs,construction plan and schedule. AEA 09-004 Grant Application Page 19 of 25 9/3/2008 =>ALASKA Renewable Energy Fund GME ENERGY AUTHORITY Grant Application PHASE IV.CONSTRUCTION,COMMISSIONING,OPERATIONS &REPORTING Task IV.1 -Construction Scheduling &Procurement The commercial RISEC power units,as well as grid integration equipment,switchgear,power cables,and all other required construction materials will be procured and consolidated in Homer,Alaska for shipment via the Pile Bay road to Igiugig.Throughout the procurement and construction,actual project costs will be tracked against budgeted costs to ensure the project stays on budget.Contract(s)will be negotiated for on- site construction or off-site fabrication of the structural element(s)depending on whether a pile-based or pontoon-based design is selected for the commercial RISEC installation. Task IV.2 -Construction Mobilization Materials,equipment and tools,including pontoons and anchoring hardware if required for RISEC installation,will be barged to Pile Bay and trucked over Pile Bay road to Williamsport on Lake Iliamna. The ILC Flexi float will be used to mobilize materials and equipment across Lake Iliamna to Igiugig. If a pile-based structural element is incorporated into the design,all equipment,piles,supplies and crew required for pile installation will be transported by barge up the Kvichak River to Igiugig in early spring or as soon as river conditions allow.ILC will provide locally based crews for both the RISEC deployment and the grid integration portions of this project so no crew mobilization/demobilization will be required for this portion of the project. Task IV.3 -RISEC Installation &Commissioning After the delivery/installation of all required structural elements,equipment and supplies,ILC crews and RISEC device technical support personnel will field assemble and deploy the RISEC devices.The ILC line crew will install and connect all grid integration equipment and cable interties. Upon completion of installation EPRI,AE&E and AEA personnel will supervise the commissioning of the RISEC plant,including load bank testing to verify system output,testing of dump-load system if required, demonstration of automatic paralleling capabilities with existing diesel generation,remote monitoring / SCADA system functionality,and testing of all required protective devices. Task IV.4 -Environmental Monitoring of Final RISEC Installation BBSRI will provide a biologist and technician to conduct an abbreviated fish study during the first salmon run following the commercial RISEC installation.This study will employ the same methodology and sonar equipment used for the pilot phase fish impact study in order to verify that the response of juvenile and adult fish to the commercial RISEC installation is as predicted. After all final environmental data is gathered,BBSRI and AE&E will issue all final environmental reports required by the permitting agencies,including FERC,ADF&G and others. Task IV.5 -Analysis &Recommendations Upon project completion the business plan will be updated and the RISEC power rate will be recalculated based on actual project costs.A final RISEC project report will also be issued,complete with as-built drawings,O&M manual,a project analysis and final recommendations. EPRI will continue to remotely monitor the Igiugig RISEC system for at least three years following the completion of the project in order to provide a long term performance evaluation of the RISEC technology employed and to determine the overall benefits to the community. 4.3.2 Land Ownership Identify potential land ownership issues,including whether site owners have agreed to the project or how you intend to approach land ownership and access issues. The power plant site is entirely contained within Tract H-2,Igiugig Community Facilities Subdivision. The surface estate of Tract H-2,power plant site,is owned by the State of Alaska,Department of Community,Commerce and Economic Development,in trust for a future city in Igiugig.The Igiugig Village Council has a long-term lease from the State for the power plant site. AEA 09-004 Grant Application Page 20 of 25 9/3/2008 «>ALASKA Renewable Energy Fund-_ENERGY AUTHORITY Grant Application The proposed RISEC hydroelectric site is located near the south shore of the Kvichak River in the "cut bank"area directly adjacent to the IEC power plant,approximately 0.2km below the outlet of Lake Iliamna.Site access requirements will be investigated with the State of Alaska,Department of Natural Resources,as part of the Pilot Project preliminary permitting effort. 4.3.3 Permits Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues. e List of applicable permits e Anticipated permitting timeline e Identify and discussion of potential barriers The proposed RISEC project is subject to regulations of both State and Federal agencies including the Alaska Coastal Management Program,the Alaska Department of Environmental Conservation (ADEC), the U.S.Environmental Protection Agency,U.S.Coast Guard,U.S.Army Corps of Engineer,Alaska Department of Natural Resources (DNR),Alaska Department of Fish and Game (ADF&G)and the Federal Energy Regulatory Commission (FERC)regulations as well as tideland survey requirements. FERC has recently adopted the Hydrokinetic Pilot Project Licensing Process to define and streamline permitting requirements for these projects during pilot plant operation,testing and monitoring.In addition to the FERC licensing process,a NEPA project level environmental review will be performed to demonstrate and confirm the project will not have a negative impact on the human environment.There are no wetlands in the project area,an evaluation will be made to ensure there are no known archaeological or historic properties within the area of potential effect,and that no birds or mammals listed as endangered or threatened that will be impacted by the project.It is anticipated the FERC and NEPA environmental review for the pilot project will be completed by the second quarter of 2010. Should the project advance to commercialization,final FERC license and project permitting is anticipated to be completed in the 1°quarter of 2013. 4.3.4 Environmental Address whether the following environmental and land use issues apply,and if so how they will be addressed: e Threatened or Endangered species Habitat issues Wetlands and other protected areas Archaeological and historical resources Land development constraints Telecommunications interference Aviation considerations Visual,aesthetics impacts Identify and discuss other potential barriers Environmental Considerations The Kvichak River supports populations of all five species of Alaska Salmon,as well as an abundant stock of Rainbow Trout,Grayling,Dolly Varden,Whitefish,Pike,Ling Cod,and others.Annual smolt outmigration generally occurs in May/June for approximately three weeks,with peak passage occurring in the cover of nightfall.Adult salmon return to spawn from mid-June to mid-July. The primary environmental concern is expected to be fish migration and spawning habitat.None of the fish are endangered or threatened,but salmon and salmonid species such as trout are vital economically and culturally to the region.The effects of RISEC machine/rotors on anadromous fish is unknown.Bristol Bay Science and Research Institute (BBSRI)will develop and conduct monitoring studies using side-scan AEA 09-004 Grant Application Page 21 of 25 9/3/2008 f=ALASKA Renewable Energy Fund GME ENERGY AUTHORITY Grant Application sonar,bottom sonar arrays and net sampling for migrating young smolt from May 15 to June 15.Similarly, BBSRI will monitor any effects on adult fish using observers in shore tower,underwater videography,and side-scan sonar from June 15 to July 15 during the pilot study and again during commercial RISEC installation.Mitigation efforts to deflect fish passage,removal or shutdown of equipment may be required to manage potential conflicts. AE&E has provided NEPA project level environmental permitting on over 40 energy related projects throughout Alaska during the past 10 years.Our understanding of the NEPA process and potential environmental impacts of our projects allows us to mitigate possible negative affects early in the design stage.Environmental permitting for the pilot project is anticipated to be completed by spring of 2010. 4.4 Proposed New System Costs (Total Estimated Costs and proposed Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project.Applicants must reference the source of their cost data.For example:Applicants Records or Analysis,Industry Standards, Consultant or Manufacturer's estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project.Cost information should include the following: e Total anticipated project cost,and cost for this phase Requested grant funding Applicant matching funds -loans,capital contributions,in-kind Identification of other funding sources Projected capital cost of proposed renewable energy system Projected development cost of proposed renewable energy system The cost information provided in this application is a composite of a variety of sources,including engineers estimates,budget proposals for geotechnical and bathymetry efforts,cost data from EPRI's prior projects,and AE&E's 15-years of successfully designing and constructing energy related projects throughout Alaska.The hands-on construction management of our projects helps keep us current with ever escalating construction costs. Total anticipated project cost:$2,396,830 Phase II (Pilot Project):$718,175 Phase II](Commercial Design /Permitting):$443,038 Phase IV (Commercialization and Monitoring):$1,226,418 Requested grant funding:$2,302,630 Applicant matching funds - loans,capital contributions,cash:$50,000 Identification of other funding sources:IVC Projected capital cost of renewable energy system:$2,396,830 Development cost (phases II &IlI):$1,161,213 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant. e Total anticipated project cost for this phase e Requested grant funding The O&M costs for a RISEC project are as yet unknown because currently there are no commercial-scale RISEC projects in operation.This proposal's goal is to implement a pilot project to ferret out real costs based on remote Alaska application.Although the specific costs associated with operating and maintaining AEA 09-004 Grant Application Page 22 of 25 9/3/2008 =>Renewable Energy Fund @@E_ENERGY AUTHORITY Grant Application a RISEC plant are unknown,the AE&E team has continually demonstrated its ability to use innovative technologies throughout rural Alaska that are highly cost effective and that result in low O&M costs.A significant component of the pilot project is to confirm that the benefits of this renewable resource are not discounted due to poor reliability and high operational costs. Real O&M costs obtained during the pilot project will be incorporated into the business plan at Phase III and will weigh heavily in the decision to advance the pilot project to commercialization under Phase IV. 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following: e Identification of potential power buyer(s)/customer(s) e Potential power purchase/sales price -at a minimum indicate a price range e Proposed rate of return from grant-funded project IVC is the electric utility and project operator;therefore,there will be no power purchase agreement. Due to the infancy of this technology and many unknowns yet to be determined during the pilot project, the cost of power from RISEC technology is unknown. Refer to attached EPRI reconnaissance level report in Appendix F for more information. 4.4.4 Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Download the form,complete it,and submit it as an attachment.Document any conditions or sources your numbers are based on here. The cost worksheet is submitted as an attachment,refer to Appendix B. 4.4.5 Business Plan Discuss your plan for operating the completed project so that it will be sustainable.Include at a minimum proposed business structure(s)and concepts that may be considered. Once this RISEC pilot project has been demonstrated commercially viable,a draft Business Plan will be prepared and completed during Phase III,final design and permitting of the commercial scale project.IVC is currently preparing a Business Operating Plan for its RPSU powerhouse upgrade project and has the resources and ability to integrate the RISEC project into its operating assets.AE&E has assisted communities in preparing Business Plans for over a dozen AEA/Denali Commission projects. 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project.Discuss your recommendation for additional project development work. The EPRI reconnaissance level feasibility study includes a simple payback period calculation for an assumed built out commercial scale plant for a remote grid scenario,refer to Appendix F. AEA 09-004 Grant Application Page 23 of 25 9/3/2008 f=ALASKA Renewable Energy Fund @E_ENERGY AUTHORITY Grant Application SECTION 5--PROJECT BENEFIT Explain the economic and public benefits of your project.Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following: e Potential annual fuel displacement (gal and $)over the lifetime of the evaluated renewable energy project e Anticipated annual revenue (based on i.e.a Proposed Power Purchase Agreement price, RCA tariff,or avoided cost of ownership) Potential additional annual incentives (i.e.tax credits) Potential additional annual revenue streams (i.e.green tag sales or other renewable energy subsidies or programs that might be available) e Discuss the non-economic public benefits to Alaskans over the lifetime of the project The Igiugig pilot project will advance the technical design,permitting,and environmental knowledge of RISEC for use by other Alaskan communities considering this form of renewable energy.The project will also boost the expertise of the industry and potentially reduce manufacturing and operations costs. Economic benefits The estimated annual fuel displacement from a 40kW commercial scale project is 15,000 gallons/year. This equates to approximately 300,000 gallons over a twenty-year anticipated useful life of the project. The anticipated cost savings to the electric utility based on reduced diesel fuel use is $85,000 per year based on the current fuel cost of $5.67/gallon. Non-economic benefits There are no known tax credits or other subsidies for a project of this type. Non-economic benefits to Alaskans include the reduction in diesel exhaust emissions realized by using a renewable RISEC resource,short term job creation during testing and construction,as well as the improved long term viability of the Igiugig utility. SECTION 6 -GRANT BUDGET Tell us how much your total project costs.Include any investments to date and funding sources, how much is requested in grant funds,and additional investments you will make as an applicant. Include an estimate of budget costs by tasks using the form -GrantBudget.xls Provide a narrative summary regarding funding sources and your financial commitment to the project. Total estimated project cost is $2,396,830.The grant request for all three phases is $2,302,630.IVC will provide a cash match in the amount of $50,000,in addition to heavy equipment provided as a contribution in aid of construction.Refer to Grant Budget worksheet in Appendix C AEA 09-004 Grant Application Page 24 of 25 9/3/2008 /=ALASKA Renewable Energy Fund waa.GNENGY AUTHORITY Grant Application sEaTIONT ADDITIONAL DOCUMENTATION AND CERTIFICATION©weenSUBMITTHEFOLLOWINGDOCUMENTSWITHYOURAPPLICATION:|| A.Resumes of Applicant's Project Manager,key staff,partners,consultants,and suppliers per application form Sectlon 3.1 and 3.4 Cost Worksheet per application form Section 4.4.4 Grant Budget Form per application form Section 6.97©An electronic version of the entire application per RFA Section 1.6 E.Governing Body Resolution per RFA Section 1.4 Enclose a copy of the resolution or other forma!action taken by the applicant's governing body or management that: -authorizes this application for project funding at the match amounts indicated in the application -authorizes the individual named as point of cantact to represent the applicant for purposes of this application -tates the applicant is In compliance with all federal state,and local,laws including existing credit and federal tax obligations. F.CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct,and that the applicant is in compliance with,and will continue to comply with,all federal and state laws Including existing credit and federal tax obligations.«Bonnie Thurston |ores|AEA 09-004 Grant Application Page 25 of 25 9/3/2008