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Sleetmute Powerhouse & Red Devil Tieline Project 2004
any ts oP eleparenaiecancel ae ce Lt ie SF gp te : eee y von .Sige bes " "we a MENT EEC a act 22) on: ct eeeAS mlens. wie ws Otero,MPa deesS...Tee 'cMeek.me cap E,geese! fo.pSPe SLEETMUTE POWERHOUSE & RED DEVIL TIELINE PROJECT SSSee&Oo2weaeaae.= iPEREeae age'?aa ?a wariel bat ees< tas On ES : :ss .Sas Os come :, 2 oe fe ,tein fan wage aan Liga 4 pi rare Ratt Son . 'oh,SA Tae, a :;tye,oe -OD aECaaayFeeeenyeeete:Mr Bours A age « aE aRad el pettie aiy oo : . an 4 i Pree re :oP)Oe a hb ry ”, 4,ee ONE,"ageeh a tebei"4 +o Etre 'apy&PTgleeee Exe Bota ay EUBaynes apace Tet eevomwig: IT peteweRee Alaska Industrial Development and Export Authority-AIDEAWA 813 WEST NORTHERN LIGHTS BLVD.ANCHORAGE,ALASKA 99503 907 /269-3000 907 /269-3044 TOLL FREE (ALASKA ONLY)888 /300-8534 Alaska Energy Authority March 5,2004 Rural Utilities Service U.S.Department of Agriculture 1400 Independence Avenue,SW. _STOP 1560,Room 5165,South Building Washington,DC 20250-1560 Subject:High Energy Cost Community Grant Program Dear Review Panel: Alaska Energy Authority is pleased to submit the enclosed application for financing the Sleetmute Powerhouse and Red Devil Tieline Project.Our proposal has been prepared in accordance with the instructions. If you have any questions concerning our proposal,please contact me.Thank you for your consideration. Sincerely; nald W.Miller ecutive Director Enclosure as stated. C mom Lal 2WeALEDKpRwleéec¢ APPLICATION FOR Version 7/03 FEDERAL ASSISTANCE March 5,2004 2.DATE SUBMITTED Applicant Identifier 1.TYPE OF SUBMISSION: Application Pre-application 3.DATE RECEIVED BY STATE State Application Identifier 8 Construction D1Non-Construetion Construction a Non-Construction 4.DATE RECEIVED BY FEDERAL AGENCY Federal identifier 5.APPLICANT INFORMATION Legal Name:Organizational Unit: AIDEA/Alaska Energy Authority Department:State of Alaska,Department of Community &Economic Development Organizational DUNS:054072608 Division: AIDEA/Alaska Energy Authority Ci :Cotter States of America Address:Name and telephone number of person to be contacted on matters Street:involving this application (give area code)813 W.Northem Lights Blvd.Prefix:First Name:Mr.Ronald City:Middle NameArthorageWw. 'Last NameCountyMiller State:Zip Code Suffix: Alaska |99503 Email: rmiller@aidea.org 6.EMPLOYER IDENTIFICATION NUMBER (EIN):Phone Number (give area code)Fax Number (give area code) Other (specify) [9}[2](6 }[O}fo}[4 [4]5)(907)269-3000 (907)269-3044 8.TYPE OF APPLICATION:'7.TYPE OF APPLICANT:(See back of form for Application Types) VM New 1 continuation [Revision A.State if Revision,enter appropriate letter(s)in box(es) See back of form for description of letters.)O g Other (specify) 9.NAME OF FEDERAL AGENCY: USDA,Rural Utilities Service,Assistant Administrator,Electric Program 10.CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBER: TITLE (Name of Program):([ol-BIE)(2) Assistance to High Energy Cost Rural Communities 11.DESCRIPTIVE TITLE OF APPLICANT'S PROJECT: Rural Power System Upgrade projects include rebuilding or replacement of worn out diesel generator units,old and hazardous distribution systems,and construction of new power generation systems in rural Alaska.Installation of a tie-line between two12.AREAS AFFECTED BY PROJECT (Cities,Counties,States,etc.): ALASKA:Sleetmute and Red Devil communities. 13.PROPOSED PROJECT 14.CONGRESSIONAL DISTRICTS OF: Start Date:Ending Date:a.Applicant b.Project3/01/04 12/31/05 Alaska Alaska 745.ESTIMATED FUNDING:16.IS APPLICATION SUBJECT TO REVIEW BY STATE EXECUTIVE Z IORDER 12372 PROCESS? a.Federal iS 3.300.000 ,THIS PREAPPLICATION/APPLICATION WAS MADE,i Z a.Yes.AVAILABLE TO THE STATE EXECUTIVE ORDER 12372 b.Applicant 5 ,PROCESS FOR REVIEW ON c.State S Aid DATE: d.Local 3 ad b.No.[7 PROGRAM IS NOT COVERED BY E.O,12372 e.Other 3 ™[J OR PROGRAM HAS NOT BEEN SELECTED BY STATEFORREVIEW f.Program Income 5 17.1S THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? g.TOTAL 3,300,000 -NoCJYesIf"Yes”attach an explanation. ATTACHED ASSURANCES IF THE ASSISTANCE IS AWARDED. 18.TO THE BEST OF MY KNOWLEDGE AND BELIEF,ALL DATA IN THIS APPLICATION/PREAPPLICATION ARE TRUE AND CORRECT.THE IDOCUMENT HAS BEEN DULY AUTHORIZED BY THE GOVERNING BODY OF THE APPLICANT AND THE APPLICANT WILL COMPLY WITH THE a.Authorized Represe Wd.SignatureLh"piWr Kyefix First Name Middle Name r Ronald Ww. Last Name SuffixMilleraN b.Title F.Telephone Number (give area code)Executive vide)(907)269-3000 ntative p:Date Signed 2-5-0 Previous Edfion Usable Authorizedfor Local Reoroduction Standard Form 424 (Rev.9-2003) Prescribed by OMB Circular A-102 Alaska Industrial Development and Export AuthorityAIDEAL Alaska Energy Authority High Energy Cost Grant Program 2004 Application to the USDA Rural Utilities Service (RUS)for the Sleetmute Powerhouse and Red Devil Tieline Project Note on the number of pages: There are a total of 136 pages in the original document, including the SF 424 Application Form. ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT Part High Energy Cost Grant Program_2004 Application to the USDA Rural Utilities Service Grant Proposal [isan 1.Executive Summary The Applicant The Alaska Energy Authority (AEA),a public corporation of the State of Alaska, qualifies as an applicant of the High Energy Cost Grant Program according to Section 19 of the amended Rural Electrification Act of 1936. The Project Title Sleetmute Powerhouse and Red Devil Tieline Project Key Contact Information Ronald W.Miller,Executive Director,AIDEA/AEA Alaska Energy Authority 813 W.Northern Lights Blvd. Anchorage,Alaska 99503 (907)269-3000 Phone (907)269-3044 FAX Email:rmiller@aidea.org Funding Request The Alaska Energy Authority (AEA)requests $3,300,000 to fund an existing rural power system upgrades program. Proposed Program The Rural Energy Group (REG)of the AEA proposes to use the requested grant funds to fund a rural power system upgrades project,which includes the decommissioning of three deteriorating powerhouses and installation of one new power generation system in Sleetmute,replacement of small sections of old and hazardous distribution systems,and construction of the Sleetmute-Red Devil tieline to transfer power from Sleetmute to Red Devil. This proposed program is a smail part of a larger project inclusive of AEA's bulk fuel upgrade and rural power system upgrades project for the Middle Kuskokwim Electric RUS GRANT APPLICATION 1 ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT Cooperative (MKEC)communities.The Denali Commission and AEA both urge full funding of this project in order to get the full efficiency of a multi-million dollar infrastructure project. Eligible rural communities and residents to be served: There are two communities targeted as the direct beneficiaries of the rural power system upgrades program:Sleetmute and Red Devil,both Census Designated Places (CDPs)located in the Bethel census area.The 2000 Census data shows that Sleetmute has a total of 100 residents and Red Devil has a total of 48 residents.The combined total population is 148. This rural power system upgrades project proposes to install a tieline between the two communities,upgrade the distribution system,and decommission three powerhouses and replace with one centralized powerhouse.!n the development process,the program will provide the following items as part of the project a Conceptual Design Report (CDR),a Final Design and a Business Plan.Construction Management services will continue until each facility is fully complete. Building new facilities that do not require constant maintenance will decrease overall repair,replacement,operation and maintenance expenses,allowing for decreased annual expenses. Associated Rural Development Initiative Support The Alaska Energy Authority is directly involved in rural development efforts,therefore is a leader of rural development initiatives in the area of energy for the State of Alaska. Additional Points:Priority Criteria The two villages appear to meet the following categories,qualifying them for additional points:1)Economic Hardship;2)Persistent Poverty Community;3)Rurality;4) Unserved Energy Needs;5)Imminent Hazard;6)Cost Sharing;and 7)USDA designated Champion Community.The following table summarizes where each community may qualify for additional points. Community or |Census Area Incorporated %of State Persistent Rurality:Unserved |Imminent Cost USDA Census Area?Median HH Poverty Population needs Hazard Sharing Champion Designated Income at Area in 2000 Community Place (CDP)community level Sleetmute Bethel No 29.10%Yes 100 Yes Yes Yes Yes Red Devil Bethel No 21.21%Yes 48 Yes Yes Yes Yes RUS GRANT APPLICATION 2 ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT 2.Table of Contents Grant Proposal 0.0...cccccssccsscsecsessseesessesseresstscseessssssacsseseussssesesesesesessessssesesseseees 1 1.Executive SUMMALY ue esesesescessssescsceesescessessassceeseeseeeseseetescassenteceee 1 2.Table of COntent............ccssssscsscssctesseccsesecesseseessens "sangeteetectaceneseaeatensass 3 Narrative DeSCTiption..ccccessecoscecccsssssssseessssessessseseucerseseenuenssereeeseevenenees crease 4 3.Applicant Eligibility...esesessesessssessecssensassesessseseacscsesseeeassnessscensasee 4 4.Community Eligibility ....0.......ccccssssseessesene vassssusssesvssssvesssuussessesenesesees 4 5.Coordination with State Rural Development Initiatives ....................10 6.Project Overview -The Narrative ..........ce eessssscssssscesesceneeseenees wesseeen 11 7a.Proposed Project Budget (SF 424 C).0..ees essesesssenceccesesesenseeene 24 Tb.Budget Narrative 0.0...eee ccessesscceeseesnsssseeesesscoscaessecnsessensessesesesaneas 25 8.Supplementary Material ...............ccsssccececesrencseeescaseccorssaescseenees 26 ADDONIX A o.oo.eececeeecetescecsecesstecneoesvessonscscossceessssseenstecensseesesseessescusesseseceenes 27 APPONix B.......ccceecessececseesessescesscsescesseosaceeenoresoesacsnensacaesessesuesssseaseasanees 28 7 Ne)¢\=1 91 |).Oeee 29 76)91-1910 |)2 eee 30 7 \6)1-610|)=ee ee ene 31 APPONnix F..........esseeceseeceeee seceseteeecccccececsseesceseeceseeseseseacerereenenerscesssesese ets 32 FOrMs and Certifications .......ssssesesssssessssssessessssesecsssssesenssvsscsssessssesensseees 33 SF 424D -Assurances -Construction Programs SF LLL -Disclosure of Lobbying Activities Certification Regarding Debarment,Suspension,and Other Responsibility Matters Environmental Profile RUS GRANT APPLICATION 3 ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT Narrative Description[iis 3.Applicant Eligibility The Alaska Energy Authority is a public corporation of the State of Alaska that is qualified as an applicant of the High Energy Cost Grant Program 'according to Section 19 of the amended Rural Electrification Act of 1936.The Alaska Energy Authority ("AEA”or the "Authority”)was created by the state Legislature in 1976.AEA is a public corporation of the state of Alaska within the Department of Community and Economic Development,but with separate and independent legal existence. Pursuant to legislation enacted in 1993,the members of the Alaska Industrial Development and Export Authority (AIDEA)Board of Directors also serve as Board of Directors of AEA.Concurrently,the Executive Director of AIDEA was also appointed as Executive Director of AEA.AIDEA and AEA continue to exist as separate legal entities. AEA has no employees;AEA contracts to have AIDEA employees administer AEA programs.There is no commingling of funds,assets,or liabilities between AIDEA and AEA and there is no responsibility of one for the debts or the obligations of the other. Pursuant to legislation effective July 1,1999,rural energy programs previously © administered by the former Department of Community and Regional Affairs (DCRA), Division of Energy,were transferred to AEA.DCRA,Division of Energy staff became AIDEA employees. The Authority's goal is to continue to operate and maintain existing state-owned power projects.Continue to work in partnership with the Denali Commission as well as private sector businesses to bring safe,economical power to Alaskans.Help train Alaskans to build and maintain state of the art energy systems.Overall,the Authority,through its programs,works with Alaskan communities in order to achieve the lowest reasonable consumer power costs and assist in the development of safe,reliable,and effective energy systems throughout Alaska that are financially viable and environmentally sound. AEA is governed by its By-Laws,Alaska Statute 44.83 and 42.45,and Regulations 3 AAC 105 -3 AAC 107.AEA has the power to accept gifts,grants or loans from any person, and to enter into contracts or other transactions in fulfillment of its corporate purposes. Alaska Stat.§44.83.080(8). 4.Community Eligibility Communities to be Served There are two communities targeted for this project:Sleetmute and Red Devil,both Census Designated Places (CDPs)located in the Bethel census area (See Appendix A - Census Area Map).The direct beneficiary of each infrastructure completed under this proposal!are these rural Alaskan villages that continuously face exorbitant rates for power, gasoline and fuel oil.The entire population of these two communities total 148. The following table represents average household data of the target communities and their percentage compared to the statewide levels presented in the 2000 census data. RUS GRANT APPLICATION 4 ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT Community or Census Area Population Median %of State Per Capita %of State |Alaska Native %ofAlaska Census (Census Household |Median HH Income Per Capita Population Native Designated Place 2000)Income of Income Income Population in Community Community Alaska Alaska 626,932 $51,571 100%$22,660 100%119,241 19% Sleetmute Bethel 100 $15,000 29.10%$8,150 35.97%89 89% Red Devil Bethel 48 $10,938 21.21%|.$5,515 24.34%25 52.1% The target communities certainly experience economic hardship.Sleetmute's median household income level is $15,000,which is 29.10%of the State's median household income level.Red Devil's median household income level is $10,938,whish is only 21.21%of the state's average. The following information represents households and housing conditions that may affect or impact the overall total energy expenses of the households that live in the target communities.In summary,the target communities typically have larger household sizes,_ yet live in much smaller and older,less efficient housing structures that lack the basic amenities or appliances that average United States citizens enjoy,such as running water, flush toilets,shower stalls,plumbed kitchen sinks,washers/dryers,dish washers and refrigerators. In the state of Alaska,majority of the home structures (roughly 29.9%)were built between 1980 to 1989.In Sleetmute,57.4%of the homes were built between 1970 to 1979.In Red Devil,of the 18 units surveyed,6 units (33.3%)were built between 1995 to 1998,3 between 1990 to 1994,5 between 1980 to 1989,and 4 between 1970 to 1979. Community or Total Family HH Non-Family Average HH Average Median Housing Units |Housing Units Census Households HH Size Family Size Rooms that Lack that Lack Designated Place (HH)Complete Complete Plumbing Kitchen State 221,600 152,337 69,263 2.74 3.28 4.7 -|14,003 or |12,496 or 6.3%5.6% Sleetmute 33 25 8 3.03 3.56 2.7 20 or 20 or 60.6%60.6% Red Devil 17 12 5 2.82 3.33 2.9 14 or 140° 82.4%82.4% Average Residential Energy Costs The State of Alaska Power Cost Equalization (PCE)program consistently records and details the expenses of rural utilities that are eligible to participate in this state-funded program.The Energy Information Administration (EIA)uses PCE information to calculate average annual household expenditures for residential customers.The sixteenth edition of the Statistical Report for the PCE program issued for fiscal year 2003 (July 2,2002- June 30,2003)was used to gather information presented in this section (see Appendix B -Power Cost Equalization Statistical Report).The eligible local energy provider is the Middle Kuskokwim Electric Cooperative (MKEC),a utility providing energy services to five middle kuskokwim communities since 1981. RUS GRANT APPLICATION 5 ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT There are two private distributors and retailers of gasoline and diesel that service both Sleetmute and Red Devil,in addition to two other neighboring communities. Enterprises retails fuel oil at $4.00 per gallon and gasoline at $3.10 per gallon.Mellick & Sons retails fuel oil at $2.60 per gallon and gasoline at $3.00 per gallon.Both of these private businesses are located in Sleetmute,Alaska.One additional private distributor and retailer,Mid Kusko Marine,retails fuel oil and gasoline at $3.50 per gallon in Red Devil. Hill AEA focuses on these extremely high average per unit énergy costs in the two communities for the rural power system upgrades project. Community or Local Energy Fuel Energy Average Average Average Per Effective %of national Census Provider Source Annual Annual Unit Cost Subsidy Residential |average unit Designated Household Household Rate cost Place Consumption Expenses (kWh) Sleetmute Middle Kuskokwim |Electricity |2,960.48 {|$1,930.53 |$0.6521 $0.354 $0.2981 815% Electric Coop. Red Devil Middle Kuskokwim |Electricity |2,967.42 |$1,935.95 |$0.6524 $0.354 $0.2984 816% Electric Coop. Sleetmute/|Hill Enterprises |Diesel Fuel --$4.00 -152.7% Red Devil Sleetmute/|Mellick &Sons |Diesel Fuel --$2.60 -99.2% Red Devil Red Devil Mid Kusko Diesel Fuel --$3.50 -133.6% Marine Sleetmute/|Hill Enterprises Gasoline --$3.10 -118.3% Red Devil Sleetmute/|Mellick &Sons Gasoline --$3.00 -114.5% Red Devil Red Devil Mid Kusko Gasoline --$3.50 -133.6% Marine The 2000 Census information presents data on House Heating Fuel types used by the target communities.Majority of the households use fuel oil,with a few depending on wood as a primary source of fuel. Community or Census Fuel Source #%of Community Fuel Source #Households |%of Community Designated Place Households HH -HH Sleetmute Fuel Oil,Kerosene,Etc.25 80.6%Wood 6 19.4% Red Devil Fuel Oil,Kerosene,Etc.15 83.3%Wood 3 16.7% Wood is a fuel source for the target communities.The AEA Project Manager of the Altemative Energy and Energy Efficiency Program created a formula that provides a conservative estimate for the equivalent cost of wood per household. RUS GRANT APPLICATION 6 ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT Assume A.#2 fuel oil BTU/gal 138,000 B.Wood Btu/cord (spruce)15,897,000 C.#2 Fuel Oil $/gal (use local retailer price) D.Cords/year-household 4 Then E.Equivalent Cost of wood per |Sum of (B*C)/(A*C)household In an effort to provide a more accurate profile of the community energy costs,the cost of energy provided by wood has been calculated below.The current retail cost of diesel is being used for comparison purposes. Community or Census Local Fuel Average Average Average Per Local Retailer %of national Designated Place Energy Energy Annual Annual Unit Cost whose rates were average unit Provider Source Household Household used for average per Consumption Expenses unit cost (Cords) Sleetmute /Red Self Wood 4 $1,843 $4.00 Hill Enterprises Devil Sleetmute /Red Self Wood 4 $1,198 $2.60 Mellick &Sons Devil Red Devil Self Wood 4 $1,382 $3.50 Mid Kusko Marine The residents in our target communities need a combination of the electricity,fuel oil and wood as sources for fuel to heat and provide energy to the modest homes located in such a cold climate.The climate in Sleetmute is continental with temperatures ranging from -58 to 90.Snowfall averages 85 inches,with total precipitation of 22 inches per year.The climate in Red Devil is continental with temperatures ranging between -58 and 90.Annual snowfall averages 85 inches,with total precipitation of 20 inches.High winds often cause flight delays in the fall and winter.The Kuskokwim is ice-free from mid-June through October. The average household annual energy expenses presented using reported data does not capture the entire actual energy expenses of the target population.Excluded expenses we are not able to calculate accurately are the annual expenses spent on normal household chores or activities such as doing laundry or showering.In the communities of Sleetmute and Red Devil,centralized community facilities exist,such as a washeteria (laundry facility),because such appliances may not be owned by households.Further, because of lack of plumbing,a public watering point is made available to the community, which is generally self-pumped and self-delivered for consumption.Shower stalls are also made available in washeterias,or some residents may prefer to bathe in communal steam houses,a traditional wash house.All of these activities are not represented in the average annual household expense calculation. There are many challenges and limitations living in Alaska,particularly when addressing energy needs and demands.The physical challenges exist when the landscape of the state varies from one large region to the next.Any mode of transportation -land,air or water -presents a major challenge.Rural communities are often located in isolated and remote sites.The tundra and rolling mountainous terrain does not make it feasible for road construction.Majority of the airstrips in the small communities are too short for aircrafts bigger than a twin-engine 9-passanger aircraft,not cost-efficient for delivery of RUS GRANT APPLICATION 7 ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT bulk fuel or other energy sources.Air transportation is available year-round.The rivers are wide enough for barge delivery,but there is only a four-month window of opportunity for this form of transportation. Economically,transportation of fuel is not cheap.The local retailers of fuel oil and gasoline are often at the mercy of a few major fuel wholesalers who are able to sell fuel at any price they feel is warranted at the time.There are not enough competitive fuel wholesalers toruralAlaskansitestokeepfuelpriceslow.:. Service Area Description by Location,Population and Local Government Divisions This proposed program is a small part of a larger project inclusive of AEA's bulk fuel upgrade and rural power system upgrades project for the Middle Kuskokwim Electric Cooperative (MKEC)communities.The Denali Commission and AEA both urge full funding of this project in order to get the full efficiency of a multi-million dollar infrastructure project.The overall service area of MKEC includes the communities of Chuathbaluk, Crooked Creek,Red Devil,Sleetmute and Stony River.Two of these communities are included in this proposal. Sleetmute The community of Sleetmute is a Censes Designated Place (CDP)and has 100 residents (2000 Census Data)in a village that is not incorporated as a city and is not located in an organized borough.The primary local government agency is the Sleetmute Traditional Council,a BIA-recognized Traditional Council. Sleetmute is located on the east bank of the Kuskokwim River,1.5 miles north of its - junction with the Holitna River.It lies 79 miles east of Aniak,166 miles northeast of Bethel, and 243 miles west of Anchorage.It lies at approximately 61.7025°North Latitude and - 157.16972°West Longitude.(Sec.25,TO19N,RO44W,Seward Meridian.)Sleetmute is located in the Kuskokwim Recording District.The area encompasses 99.5 sq.miles of land and 5.8 sq.miles of water.The climate in Sleetmute is continental with temperatures ranging from -58 to 90.Snowfall averages 85 inches,with total precipitation of 22 inches per year.High winds often cause flight delays in the fall and winter.The Kuskokwim is ice- free from mid-June through October. Sleetmute is an Ingalik Indian village,and subsistence activities contribute substantially to local diets. Most cash income in Sleetmute is derived seasonally from BLM firefighting,trapping,or from cannery work in other communities.The school is the primary employer.One resident holds a commercial fishing permit.Most foods are derived from subsistence fishing,hunting and gathering.Many residents travel to fish camps during the summer. Salmon,moose,bear,porcupine,rabbit,waterfowl and berries are harvested in season. A central well with treated water and several individual wells are used in the community. Water is pumped by hand to fill gravity storage tanks at each house.Privies, honeybuckets and seepage pits are used by 27 homes.Eleven homes and the school use individual systems and are completely plumbed.A Master Plan has been completed to design alternative water,sewer and refuse systems.There is a landfill site southeast of the airstrip.In December 2001,a fire destroyed the building with the laundromat,clinic,offices and meeting hall,and satellite dish.A new washteria is under construction. RUS GRANT APPLICATION 8 ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT The Kuskokwim River provides barges and boats transportation in the summer,and snowmachines are used on the frozen river in the winter.The 3,100'long by 60'wide gravel airstrip is owned and maintained by the State.Scheduled weekday service is provided. Red Devil The community of Red Devil is a Census Designated Place (CDP)and has 48 residents (2000 Census Data)in a village that is not incorporated as a city and is not located in an organized borough.The primary local government agencies are the Red Devil People & Community,Inc.,a non-profit community organization,and the Red Devil Traditional Council,a BIA-recognized Traditional Council. Red Devil is located on both banks of the Kuskokwim River,at the mouth of Red Devil Creek.It lies 75 air miles northeast of Aniak,161 miles northeast of Bethel,and 250 miles west of Anchorage.It lies at approximately 61.761110°North Latitude and -157.3125° West Longitude.(Sec.06,TO19N,RO44W,Seward Meridian.)Red Devil is located in the Kuskokwim Recording District.The area encompasses 24.2 sq.miles of land and 2.2 sq.miles of water.The climate in Red Devil is continental with temperatures ranging between -58 and 90.Annual snowfall averages 85 inches,with total precipitation of 20 inches.High winds often cause flight delays in fall and winter.The Kuskokwim River is ice- free from mid-June through October. Red Devil is a mixed population of Yup'ik Eskimos,Tanaina Athabascans and non- Natives.Subsistence activities are prevalent.The sale of alcohol is prohibited,although importation or possession are allowed. Since the closure of the mercury mine in 1971,employment opportunities have been limited.Income is supplemented by subsistence activities,BLM firefighting,or work in the commercial fishing industry.Salmon,bear,moose,caribou,rabbit,waterfowl and berries are harvested in season. Water is derived from individual wells or hauled from the school well.Four of the 17 occupied homes are fully plumbed.Sewage is disposed of on an individual basis.The school and teacher's housing uses individual septic tanks and drain fields;others use pit privies.A new landfill site is needed.A Master Plan for water,sewer and waste has been completed. The Kuskokwim River serves as a major transportation link and supply route for bulk supplies and fuel oil during the summer.In the winter the frozen river is used by snowmachines for travel to neighboring villages.A 4,801'long by 80'wide gravel airstrip provides year-round access.It is owned and operated by the State.Scheduled weekday service is available. Local Energy Providers Sleetmute and Red Devil both receive their electric power service from the Middle Kuskokwim Electric Cooperative,Inc.(MKEC),an electric cooperative of the Middle Kuskokwim area that provides power to five small rural communities.The combined generator capacity in Sleetmute is:182 kilowatts from three small generators at Sleetmute A powerplant and 64 kilowatts from two small generators at Sleetmute B powerplant,and both use diesel fuel as their power source.The combined generator capacity in Red Devil is at 140 kilowatts from three small generators,which uses diesel fuel as its power source. Local retail fuel service is provided by several fuel distributors and retailers.Based out of RUS GRANT APPLICATION 9 ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT the community of Sleetmute,both Hill Enterprises and Mellick &Sons are two privately owned businesses that distribute and retail gasoline and diesel to the residents of Crooked Creek,Red Devil,Sleetmute and Stony River.Additionally,Mid Kusko Marine is a privately owned business in Red Devil that retails gasoline and diesel to the residents of Red Devil. Sources of Data and Estimates . The Alaska Energy Authority,through the Power Cost.Equalization (PCE)Program, maintains records of participating utilities that are updated on a monthly basis.PCE reporting allows AEA to keep a good source of data that identifies the following information:residential and commercial customers,generation of power by kilowatt hour, use of diesel fuel,expenditures and revenues,and their effective residential rates.This information is available by utility and community (See Appendix B -Power Cost Equalization Statistical Report). The Alaska Energy Authority,through the Rural Energy Group (REG)Programs, maintains records of fuel and gasoline prices in rural communities,updated on an annual basis.AEA conducts price updates by calling individual retailers in the community.This record includes the rates for fuel oil in both grades one and two,if available,and gasoline. The Alaska Energy Authority also maintains a database for both bulk fuel tank farms and electric utility systems that identify the physical conditions of the local facilities.The consultants made observations,provided a report on the existing status of the facilities, and provided recommendations on ways to improve or solve the deficiencies at these sites.These databases continue to be a critical part in the decision making process in the selection of projects for the rural energy group. The Research and Analysis Section of the State of Alaska,Department of Labor and Workforce Development maintains an excellent source of information based on the findings of the 2000 US Census data.The agency organized a sophisticated web site with demographic information by community,by census area,or at the statewide level.In addition to the census information,the State of Alaska,Department of Community and Economic Development (DCED)established an informative community database, conveniently accessibly through the State's web site.|DCED deals directly with the government leaders of every rural community in Alaska,so has the capacity to offer relevant and key community information. 5.Coordination with State Rural Development Initiatives The Alaska Energy Authority is directly involved in rural development efforts,therefore is a leader of rural development initiatives in the area of energy for the State of Alaska.AEA works collaboratively with other State agencies that also implement rural development initiatives,such as the Rural Utility Business Advisors (RUBA)of the Department of Community and Economic Development;Alaska Department of Environmental Conservation;and the Alaska Department of Transportation and Public Facilities.AEA also has working relationships with partners of the Denali Commission,including the Alaska Native Tribal Health Consortium (ANTHC)and the Alaska Village Electric Cooperative (AVEC).AEA also approaches Federally funded agencies,such as the USDA Rural Development program,when needs arise for alternate funding of community projects. RUS GRANT APPLICATION 40 ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT 6.Project Overview-The Narrative 6(A).PROJECT DESIGN AEA,in partnership with the Denali Commission,funds upgrades and improvements to rural power generation systems and bulk fuel storage facilities.These projects require and include the development of business plans to ensure long-term sustainability of the new facilities (See Appendix C-Partnership).By December 2004,the Denali Commission will have funded 19 AEA power system and 44 bulk fuel projects at a total cost of approximately $97 million.Although there are substantial contributions from grantees in the form of in-kind matches and from other funding sources,the Denali Commission is the primary source of funding for this program. Scope of Work The Rural Energy Group (REG)of the AEA proposes to use the requested grant funds to support projects currently in the development stages of the rural power system upgrades program.The rural power system upgrades program provides funding and construction management to replace diesel generator plants and distribution systems to be more fuel efficient,environmentally friendlier and easier to maintain. Before construction begins,each village must demonstrate that the proposed facility will be sustainable.A business plan will be prepared to describe who will own the facility,and how it will be operated and maintained.The plan will describe how the community will collect funds to pay for operations,maintenance,insurance,major repairs,and long term replacement.AEA typically uses grant funds to help prepare the business plan. Upgraded rural power systems typically include three new generators of various capacity, a new automated control panel and an intermediate fuel tank.The project comes with a single steel structure to house the new power system.In most cases,the project includes a waste heat systern to heat public or community facilities that may be located adjacent to or near the power system.Where necessary,the project also installs new distribution systems or replaces deteriorating portions of the systems in the community.The new systems would be constructed to a more conventional design following Rural Utility Standards (RUS)and National Electrical Safety Code (NESC). Major Tasks New power systems are funded,designed,and constructed in three phases:Phase 1, Conceptual Design;Phase 2,Final Design;and Phase 3,Construction.The process can take two to three years before construction is complete.AEA personnel and hired consultants produce designs,address constructability issues,and take into consideration the Denali Commission policies to get the best possible facility built Phase 1,Conceptual Design:Staff from AEA will contact the local electric utility owner to determine their interest in the program.AEA may follow with a site visit to give a presentation about the program,listen to comments,and answer questions.The Conceptual Design made by an Engineering consultant represents the first drawing of the proposed facility designed with input from the community and AEA.At the completion of Phase 1 Conceptual Design,participants will be requested to review and approve the location of the upgrade,the number and volume of fuel tanks,and a draft business plan. Phase 2,Final Design:The design for the new power system will be completed.Permits will be applied for.A final cost estimate will be used to determine the cost of construction. The Final Design drawings will still require final input from the community before they are considered "ready for construction.”Details of the facility,types of equipment,layout of RUS GRANT APPLICATION 41 ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT project site and land location need to receive final approval at this time.A business consultant will prepare the Business Plan in close collaboration with the village and by using detailed information about the design.The Business Plan must be considered completed,approved and signed before moving onto the next phase,Construction. Phase 3,Construction:The Construction phase is when the construction crew begins to build the facility under materials,fabrication of the building,shipping,hiring workers,and on-site construction.Local labor will be used as much as possible.Imported labor will be used where special skills or certifications are needed.Once construction is complete,the primary operator is ready to take over the operation and maintenance responsibilities of the facility or project assets. Project Feasibility and Adequacy The technical feasibility,adequacy and appropriateness of the project for rural Alaska is viable,sensible and realistic for the target communities,the challenging conditions in which they live and the limited energy resources made accessible to them.All rural power system upgrade (RPSU)projects take into consideration the multiple community needs in the design of the facility.Where long-term cost saving measures can be found,those technologies are incorporated.Where the facility brings on concerns about immediate health and safety issues,adequate equipment will be supplied to the powerplant for precaution.Functionality,suitability and sustainability are an underlying goal throughout the design process. Fuel efficient generators include the latest fuel injective type engines with load sensing switch gear controls that automatically selects the most fuel efficient generator for the various loads during the day.The system has the ability to recycle used engine oil and eliminates the build-up of hazardous material.Fire suppression systems are installed with the latest environmentally sound extinguishers,a type of agent to protect the investment in communities whose volunteer fire departments lack well equipped facilities.The new power generation system will recapture heat from the engines to heat the fuel storage tanks to allow the use of standard #2 diesel fuel,a lower cost and higher energy content option.Currently,most communities use standard #1 diesel,an arctic grade product that is often more expensive and contains lower energy content than #2 diesel. For each of the proposed powerhouse facilities,the generators will be sized so the largest generator can handle peak loading during the winter.The power generation capacity of each facility is in excess of its present usage.The Denali Commission guidelines dictate that extra capacity is provided to account for ten years of growth in electric power requirements. The financial resources requested for these projects fall within the pre-established benchmarks of the Denali Commission,whose policies drive our projects to be cost- efficient.Energy systems are costly in general.The current power generation systems in these communities have far outlived their useful lives in these economically-depressed communities.Rural Alaskans don't have easy access to readily exploitable alternative energy sources.The existing system has been working for many years,but those systems severely need replacement with more efficient technology. Once the project is completed,the Alaska Energy Authority will be able to perform remote monitoring for fuel efficiency and to ensure that the equipment continues to be run economically.This is one method of providing project evaluation.AEA engineers will have direct access to assess the performance of the powerhouse and determine whether the electric utilities have been able to fully benefit from the system's cost-saving features. RUS GRANT APPLICATION 12 ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT Additionally,AEA will,in the coming year,begin monitoring the operations and maintenance of the energy facilities across Alaska.With the existence of a business plan, AEA can help ensure that the communities operate and maintain these new facilities in a responsible and business-like manner. The severity of the problem with the existing powerplants presents an imminent hazard to the target communities involved.The safety and welfare of the public is constantly in question,because of the unreliability of the old facility.The environment surrounding the powerplant is slowly being contaminated with the slow leaking waste oil.With the powerplant facility as the only source of power,the community is in threat of loosing its only critical energy source.This is particularly concerning to the health and safety of the residents,especially when the community exists in harsh arctic conditions at least two- thirds (2/3)of the year (8 out of 12 months). Project Details by Project Site This proposed program is a small part of a larger project inclusive of AEA's bulk fuel upgrade and rural power system upgrades project for the Middle Kuskokwim Electric Cooperative (MKEC)communities.The Denali Commission and AEA both urge full funding of this project in order to get the full efficiency of a multi-million dollar infrastructure project.The overall service area of MKEC includes the communities of Chuathbaluk, Crooked Creek,Red Devil,Sleetmute and Stony River. The Middle Kuskokwim Electric Cooperative (MKEC)has been the sole electric utility provider for five middle Kuskokwim communities since 1981.Two of its communities, Sleetmute and Red Devil,are included in this project. Sleetmute Powerhouse and Red Devil Tieline (See Appendix D -project information) Assignments by the Alaska Energy Authority: Project Manager:Lenny Landis Business Plan Writer.|Aurora Consulting,Inc. Design Engineer.HDL,LLC Construction Manager.AEA Proposed Schedules for Task Completion:This project is currently in the Conceptual Design Phase (65%design drawings)and currently has a draft business plan. Procurement is scheduled to begin in February 2005,with construction beginning by May 2005 and entire project completion by December 2005. Detailed Description of Equipment,Facilities and Associated Activities:The participant of this project is the Middle Kuskokwim Electric Cooperative (MKEC).Three existing powerhouses operated by MKEC (2 in Sleetmute and 1 in Red Devil)will be decommissioned by this project.A new centralized powerhouse will be located in the community of Sleetmute,between the unnamed gravel road and the river. This project includes three new environmentally friendlier generators of various capacity,a new load sensing (automated)switch-gear,fuel handling,step-up transformer bank, energy savings equipment,heat recovery,used oil blending,loud sensing,automatic generator controls,a new powerhouse facility and an intermediate fuel tank.The project comes with a single steel structure to house the new power system,as well as a new foundation to raise the new powerhouse above historic flood levels.The project includes a waste heat system to heat the fuel storage tank and,in the future,a vehicle maintenance shop (to be located adjacent from the proposed power system).The project RUS GRANT APPLICATION 43 ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT may upgrade small sections of the existing distribution systems or replace deteriorating portions of the systems in the community. The proposed capacity of the Sleetmute facility will be 295 kilowatts,using three generators,taking into account the .5%annual growth in consumption.The initial annual estimated kilowatt hour generation by the community is estimated to be 370,000 kilowatt hours. The Sleetmute to Red Devil tieline will be approximately 9.4 miles long,which is broken down as such:.1 mile of rebuilt line in Sleetmute;1.5 miles of rebuilt line in Red Devil;.5 mile of new line to cross the Kuskokwim River,and 7.3 miles of new line from the west side of the Kuskokwim River at Sleetmute to the south end of Red Devil.Specific considerations must be provided for each section of the tieline. For the .1 mile of rebuilt line in Sleetmute,the tieline will be connected to the existing distribution system in Sleetmute.The single phase line from pole A to pole B will be upgraded to three phase line with new 40-foot poles.The rebuilt line will follow the existing line route. , For the 1.5 miles of rebuilt line in Red Devil,the tieline will be connected to the existing distribution system in Red Devil.The single phase line from pole A heading northwesterly approximately 1 mile to pole B will be rebuilt to a three phase line with new 40-foot poles. From pole B northeasterly .5 mile to pole C at the existing power plant,a new line will be constructed on native corporation land. For the .5 mile Kuskokwim River Crossing,the route selected to cross the Kuskokwim River is considered to have stable soil conditions with some bedrock on the west side of the river and fluvial silts and sand on east side with a floodplain region.The location selected on the west side of the river falls between two parceled lots and thus easement acquisition is expected to be straightforward.The location selected on the east side of the river is Lot 6,Block 1 which is owned by a native corporation. For the 7.3 mile Tieline from Sleetmute to Red Devil,the route selected from the west side of the Kuskokwim at Sleetmute to Red Devil is typically high ground with several valley crossings with varying lengths.The terrain is generally treed except on valley floors.The soil is expected to be generally acceptable for overhead pole construction with exceptions of encountering bedrock at higher elevations and silt and gravel at low elevations.Routing follows west of current parcel allotments thus allowing easement/right of way acquisition to be simplified since the areas selected are owned by a native corporation.This will be a three phase 12.47 kV system. The poles selected for the tieline design are 40-foot class 4 poles with 45-foot class 2 poles at deadends.This height and class allows proper clearances and meets the strength requirements for the construction.The primary supports are 10-foot crossarms with an offset neutral which is appropriate for high wind areas to allow maximum conductor separation.As an added benefit,such construction also provides an economical method of construction for raptor protection.All construction follows standard RUS Construction specifications. Three separate options were considered for the tieline crossing:overhead,underground and boring.Of the three options,the overhead construction was selected as the most economical and reliable construction method for this project. RUS GRANT APPLICATION 14 ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT Two reports were written in April 2002 to address the status of two existing MKEC- Sleetmute powerplants.The two powerplants will be identified as Sleetmute A and Sleetmute B.The final recommendation of the assessment was to decommission both Sleetmute A and Sleetmute B powerplants and replace with one new powerhouse with enough capacity to provide power to the entire community. Powerplant Sleetmute A has no doors and is very oily and dirty.The module was falling apart and in general bad state of repair.Of the three generators,one unit was not fully installed as of yet.Another generator did not have an operable battery charger and needed its fuel injector pump replaced.The two operating generators required installment of belt covers.Replacement was required of its bumt exhaust fans,and missing doors and louvers. Powerplant Sleetmute B has only two generators that were in fairly good shape. However,one unit needed a new engine control panel and installation of cut-outs in three poles. An April 2002 report identifying the deficiencies of the MKEC-Red Devil powerplant indicates that the old facility,although well taken care of,has traces of oil-covered flooring, an exhaust leak in a minimally ventilated facility,uncovered exhaust system,and an oil leak from one of the three generators.There are old generator parts stored in the building and waste oil is kept in drum or tank storage,creating a burn hazard. Location of Eligible Community: Sleetmute is located on the east bank of the Kuskokwim River,1.5 miles north of its junction with the Holitna River.It lies 79 miles east of Aniak,166 miles northeast of Bethel, and 243 miles west of Anchorage.Sleetmute is a Census Designated Place (CDP)and can be found within the Bethe!Census area. Red Devil is located on both banks of the Kuskokwim River,at the mouth of Red Devil Creek.It lies 75 air miles northeast of Aniak,161 miles northeast of Bethel,and 250 miles west of Anchorage.Red Devil is a Census Designated Place (CDP)and can be found in the Bethel Census area. Overall Duration of Project The estimated overall duration of the project is set at 21 months,with the final close out of all projects anticipated by December 2005. >Proposed projects involving construction,repair,replacement,or improvement of electrical generation,'«©transmission,and distribution facilities must generally be consistent with standards and requirements forprojectsfinancedwithRUSloansandloanguaranteesas.set forth,'in RUS.ElectricProgam 2BoRegulationsanandBulletinsandmayreferencetheseserequirements.ee es Code Compliance:Our designers typically have a developed design criteria using known environmental and climatic information for the project area,the C2-2002 edition of the National Electrical Safety Code (NESC)an construction specifications outlined by the Rural Utilities Service (RUS)in 1998. Clearances:The minimum clearances defined in the NESC for ground and conductor/cable clearances were considered as a basis for defining the required RUS GRANT APPLICATION 415 ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT clearances.The minimum clearances required for the river crossing over the Kuskokwim River at Sleetmute is yet to be determined by the US Army Corps of Engineers,as is done on a case-by-case basis. Conductor and Structure Loading:Structure and conductor loading was determined to meet the requirements of Grade B construction as detailed in the NESC if constructed without telephone.Structure and conductor loading was determined to meet the requirements of Grade C construction as detailed in the NESC if constructed with telephone.The following loading conditions were observed: m NESC Heavy m Extreme Wind m=Grade B Construction;Grade C construction 6(B).PROJECT MANAGEMENT Capabilities and Project Management Plans The Alaska Energy Authority -Rural Energy Group was first established in the mid 1980s to provide rural villages with assistance fore repair and maintenance of power systems. Given the agency's long involvement in this area,AEA is more than capable of planning, developing and implementing the said scope of work for this project.The Program Managers and the Project Managers of the AEA have been and will continue to work as a team to manage the rural power system upgrades program.As the only state agency having been charged to administer such a program,our well-experienced staff have the capacity,capability and ingenuity to complete a major infrastructure project in rural Alaska. Organizational Structure AEA is govemed by a Board of Directors comprised of the same people who serve as members of the AIDEA Board of Directors,and include the Commissioner of Department of Revenue and the Commissioner of Community and Economic Development,one additional commissioner (currently from the Department of Transportation and Public Facilities)and two public members appointed by the Govemor. AEA is directed by its Executive Director,who is appointed by,and reports to,AEA's Board of Directors.The AEA Board of Directors has appointed as AEA's Executive Director the same person who the AIDEA Board of Directors has appointed as AIDEA's Executive Director. AEA's Deputy Director provides guidance,management and leadership to the Rural Energy Group (REG).REG administers four distinctive programs:the Bulk Fuel Upgrade (BFU)Program;the Rural Power System Upgrades (RPSU)Program;the Alternative Energy &Energy Efficiency (AE&EE)Program and the Power Cost Equalization (PCE) Program.Each Program has a Program Manager who,in turn,supervises Project Managers that have direct working relationships with selected Alaskan Consultants and Contractors that assist AEA in meeting its project goals and objectives. Method of Funding Today,AEA receives much of its project development funding from the Denali Commission,a designated clearinghouse for Federally funded programs.Some financial awards are also received on behalf of individual community projects from the U.S. Housing and Urban Development (HUD)and direct appropriations from the Alaska State RUS GRANT APPLICATION 46 ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT Legislature.This list contains only the sizable grants awarded for these projects and AEA wants to recognize the fact that some projects receive limited local financial and in-kind contributions from the beneficiaries wherever possible.The Denali Commission continues to be a major source,but AEA seeks to diversify its funding sources for these multi-million dollar projects. Legal Authority . AEA is governed by its By-Laws,Alaska Statute 44.83 and 42.45,and Regulations 3 AAC 105 -3 AAC 107.AEA has the power to accept gifts,grants or loans from any person, and to enter into contracts or other transactions in fulfillment of its corporate purposes. Alaska Stat.§44.83.080(8). Legislation is sought to update and clarify statutes affecting three Alaska Energy Authority programs.(1)AEA's Bulk Fuel Revolving Loan Fund provides low interest loans to communities for their annual or emergency fuel needs.The legislation will remove the present 2,000 maximum population limit for loans from the fund to allow more communities to access the fund,consistent with conditions of a USDA grant capitalizing the fund.(2)By statute,AEA is mandated to provide technical electrical assistance to rural communities,which it does through its Circuit Rider program.The legislation will make it clear that the statutory mandate does not create an independent basis for tort liability,and that AEA is liable only if it fails to use reasonable care.(3)AEA's Rural Energy Group constructs and improves rural communities'bulk fuel storage tanks and electrical facilities,primarily with Denali Commission funds.The legislation will make it clear that AEA is expressly authorized by statute to construct such projects and to make grants or loans and enter into contracts respecting them.This authority has been implicit in the legistature's appropriations of Denali Commission funds for these purposes over the last several years. Key Personnel The Alaska Energy Authority has a very fine team of professionals working within the Rural Energy Group to administer and implement the rural power system upgrades project. Ronald W.Miller Ron Miller was appointed to the Executive Director position on January 30,2003.Ron is an attorney and local businessman with a strong background in business development and intemational trade.He has worked with the Institute of the North to improve management and development of fishery resources in Russia,and was also an exporter of U.S.consumer goods to the Russian Far East.Mr.Miller was a Co-founder of a joint venture that was responsible for a $50 million housing project on Sakhalin Island,Russia, and was also a Co-founder of a commercial fishing joint venture in the Russian Far East. Mr.Miller has served as Special Advisor for the North Pacific Fishery Management Council and worked in various positions for the State of Alaska including the Governor's Office of International Trade and Director of Adjudications for the Alaska Commercial Fisheries Entry Commission.Mr.Miller holds a Bachelor of Arts in Russian studies from the University of Kentucky;a Masters of Business Administration from the International Institute for Management Development in Switzerland;a Juris Doctor from the University of Louisville School of Law,and a LLM (Law &Marine Affairs)from the University of Washington School of Law. RUS GRANT APPLICATION 47 ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT Michael C.Harper Michael Harper,Deputy Director-Energy:Mr.Harper was appointed to this position in June 2001 after spending 10 years as President and CEO of The Kuskokwim Corporation,an ANCSA Village Corporation.Mr.Harper enjoys seeking ways to improve life in rural Alaska especially through job development,education,and training.He has pursued these goals throughout his career both in public and private sector.Past work experience includes positions with the State of Alaska's Rural Alaska Community Action Program, and United Bank Alaska.Mr.Harper volunteers his time to community groups such as, Salvation Army Board,Rotary,and University of Alaska Anchorage Advisory Native Students Steering Committee.Past service includes Doyon LTD Board,Anchorage Chamber of Commerce Board,and Commonwealth North Board.Mike holds a Business degree from the University of Georgia. Kris Noonan Kris Noonan works as a Program Manager for the Alaska Energy Authority and has 22 years of experience in the construction field working with rural Alaskan communities.At the Energy Authority,he is responsible for several programs,including the Circuit Rider Maintenance/Training,Rural Power System Upgrades,and the Statewide Emergency Response program.All of these programs assist rural communities to provide safe, efficient,and reliable electrical power for the community needs.Kris is a Journeyman Electrician,a Journeyman Lineman and has an Electrical Administrator's License. Lenny Landis Lenny Landis has worked for the State of Alaska for two years as Project Manager for the Alaska Energy Authority,Rural Power Systems Upgrade Program.He is a licensed Journeyman Electrician and a certified Building Inspector.Mr.Landis has 20 years of experience in the construction,maintenance and operation of rural utilities throughout the State of Alaska. Project Management Experience Overall,the Alaska Energy Authority has successfully managed numerous Rural Energy Projects for the past 28 years.As the only state agency designated to implement such projects prior to becoming a Denali Commission partner,AEA has single-handedly worked on major energy projects from the beginning to the end. Staff Resources The employees of AIDEA/AEA are an impressive group of professionals that collectively will make these projects manageable and successful.In addition to the designated project staff,AEA has additional professional engineers and planners that can be assigned as altemate managers as needed.Additionally,an experienced team of administrative personnel are available to meet the following needs:Financial and Progress Reporting; Budgeting;Contracting and Procurement,Public Relations;Technical Utility Servicing; Business Planning;and Office Administration.Majority of the employees at AIDEA/AEA have been working for an extended period of time,making each person a valuable resource in the field in which they work.On technical projects like these,the established and well-maintained contacts in the business world makea significant difference in project implementation. Goals and Objectives of Program or Business The Authority's goal is to continue to operate and maintain existing state-owned power projects.Continue to work in partnership with the Denali Commission as well as private sector businesses to bring safe,economical power to Alaskans.Help train Alaskans to RUS GRANT APPLICATION 18 ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT build and-maintain state of the art energy systems.Overall,the Authority,through its programs,works with Alaskan communities in order to achieve the lowest reasonable consumer power costs and assist in the development of safe,reliable,and effective energy systems throughout Alaska that are financially viable and environmentally sound. e The rural power system upgrades program provides emergency assistance to rural power utilities experiencing or facing imminent danger of failing power systems,as well as funding and construction management to build reliable power generators and distribution lines in rural communities.Projects include the rebuilding or replacement of worn out diesel generator units,old and hazardous distribution systems,and construction of new power generation systems. Related Services Provided to the Project Beneficiaries The project Beneficiaries may receive the following services as needed and will be described by program area. Rural Power System Upgrades Program Operational,Technical and Emergency Assistance:There are three main categories: 1.Rural Technical Assistance (RTA):Technical assistance to rural utilities in evaluating deficiencies and needs in respect to the collective energy systems and facilities within a community.Community support is a key element. 2.Meter Installation and Data Acquisition:Provides for adequate metering of rural utilities and trains operators to accurately read and record meter data.This program would also be used to install monitoring devices to record and transmit time-coded data necessary for planning purposes. 3.Emergency Prevention:Provides funding to continue activities,procurement of materials,and equipment that would be used to prevent power plant-related emergencies and disasters statewide.This program is designed to prevent a potential emergency situation before disaster occurs. Electric System Life,Health and Safety Improvements:Provides follow-on funding for correction of hazards that are existing or pose a possible threat to life,health and safety in rural communities.Wherever possible,funds will be used to leverage local matching funds. Rural Electric Capitalization Fund:Provides for electric utility improvements matching grants (75%)to utilities eligible to participate in Power Cost Equalization.Grants can be made for small power projects that reduce costs to utility customers.This program has not been funded for two years and is currently inactive. Circuit Rider/Emergency Response Services:Preventive maintenance assessment and response service for emergency work needed on rural electrical systems.This program is intended to be an interim fix until long-term planning can address the problems. Training Advanced Power Plant Operator Training:This advanced course prepares the student with the necessary knowledge and skills to diagnose and repair failures in power plants. Program content includes:review of electrical fundamentals;testing equipment;basics of computerized engine control systems;sensors and actuators;electronic signatures and waveforms;and diagnostics and testing. RUS GRANT APPLICATION 19 ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT Power plant Operator Training:This is the entry level course for power plant operators. and provides them with the necessary skills to operate and maintain a power plant. Program content includes:theory,maintenance and troubleshooting of engines,electrical systems,and generators;introduction to electrical distribution systems;operation of diesel electric sets;control panels;paralleling generator sets;load management,fuel management,waste heat recovery;plant management;and power plant safety and industrial CPR. Utility Clerk Training:This course focuses on Power Cost Equalization (PCE)reporting; Regulatory Commission of Alaska (RCA)reporting;how to apply for bulk fuel loans and general accounting practices that utilities can use to keep their records and reports current.Courses are planned for Anchorage as well as select hub communities. Current Financial Statement and Other Supporting Documentation A copy of the current financial statements of the Alaska Energy Authority are attached as Appendix E in the Supplemental Materials section.Additionally,the following web site contains the AEA 2003 Financial statements: htto:/Avww.aidea.org/PDF%20files/FsO3aea.pdf. "ff the applicant proposes to use affilated entities,contractors,or subcontractors to provide sa orfundedunderthegrant,the applicant must describe the identities,_Fetationship,qualifications,and=_Sipeence of these affliated entities.©_ Zz eee : Multi Disciplined Engineering Services Scope of Work The selected consultants who have been selected based on criteria and an evaluation system provide design services on an as-needed basis throughout the three phases of the project.AEA requests a project-specific proposal from one or more of the selected consultants.The consultant responds with a project-specific proposal including a budget for services,project schedule,and a list of consultant's personnel and sub-consultants who are available for the project.The consultant does not begin working until the terms of the proposal have been accepted and a Notice to Proceed has been issued by the AEA. The consultants must be familiar with rural Alaska travel and living conditions. Identity,Relationship,Qualifications and Experience Hattenburg,Dilley &Linnell (HDL),LLC was established in 2000,specialized in "client- focused”planning,engineering,project management,earth science and geotechnical services.HDL currently has a Multi-Disciplined Engineering Services contract with the Alaska Energy Authority. The licensed professional civil engineers who created this firm each have a long history of work in Alaska and a long-standing working relationship together on a multitude of rural Alaskan projects.HDL has assembled a special team of seasoned professionals who work closely with AEA project managers,agencies and the communities to prepare any necessary and required document.HDL and its subconsultants specialize in designing, construction and procurement,and understand complex logistical requirements of rural Alaskan infrastructure projects.An organizational chart and information on the project staff are attached as supplemental material as Appendix F. RUS GRANT APPLICATION 20 ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT Construction Management Services Scope of Work The construction manager for all rural power systems upgrade projects is the Alaska Energy Authority,so it is very rare to seek professional services outside AEA resources. AEA estimates the project-specific expenses and provides a pre-construction and construction phase cost estimate.Project tasks are then implemented upon authorization by a Notice to Proceed (NTP).NTP's authorize payment of,AEA managers and anymaterials,equipment,transportation or labor procured for use on the project. Identity,Relationship,Qualifications and Experience Kris Noonan works as a Program Manager for the Alaska Energy Authority and has 22 years of experience in the construction field working with rural Alaskan communities.Kris supervises the employees tasked to construct rural power systems upgrade projects.At the Energy Authority,he is responsible for several programs,including the Circuit Rider Maintenance/Training,Rural Power System Upgrades,and the Statewide Emergency Response program.All of these programs assist rural communities to provide safe,efficient,and reliable electrical power for the community needs. Procurement Procedures AEA does its own procurement to order,purchase and ship materials,tools and equipment for the project.Before shipping any tools or equipment,AEA may visit the project site to determine what equipment and tools are available locally.AEA prepares a detailed material take-off and identifies long lead items.Procurement shall comply with AEA Procurement Guidelines.AEA tracks all items procured from fabrication,to shipment, through receiving at the project site.Once at the project site,all materials,equipment and supplies are entered into an inventory accounting and reporting system. AEA provides labor,equipment and materials under its NTP that fall under the following categories:Small Procurement (less than or equal to $5,000),skilled labor employed by the AEA,and small tools rented from AEA.Procurement categories are described in AEA's Project Reference Manual,Procurement Procedures. How does all this result in successful completion of project? The Alaska Energy Authority has used this very successful project construction model for many years.The use of contractors for designing and construction management allows AEA to manage multiple projects at any given time.AEA has the administrative support to handle,manage and implement what it takes to utilize intemal and outside sources that have the qualifications to get the task done.The important ingredient in these relationships is that the agency and its contractors are very familiar with rural Alaska and know what to anticipate when coordinating the logistics of the project. 6(C).REGULATORY AND OTHER APPROVALS :"Theapplicant must iter any/other+requatory or otherot approvals required by otother Federal State, .Jocal,or tribal agencies,or by private entities as a condition of financing that are necessary to carry out"the proposed grant project and its estimated schedule forropeinna ithenecessary approvals. The National Environmental Policy Act (NEPA)requires an environmental review for "major federal actions significantly affecting the quality of the human environment”(42 RUS GRANT APPLICATION 21 ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT U.S.C 4332).The State of Alaska requires all of its projects to follow the federal guidelines of completing an environmental assessment.Additionally,other regulatory requirements are addressed as pertinent to a specific project in Alaska.The following list highlights the common requirements that the AEA abides by. Alaska Coastal Zone Management Program Compliance FAA -Form 2120 "Notice of Proposed Construction or Alteration" COE -Pre-construction Notification Procedure,Compliante with Clean Water Act Section 404 (Wetlands) State Historic Preservation Office -Pre-construction Notification Procedure Borough Zoning Permit Applications Alaska DNR -Review project need to access state owned land. US Fish and Wildlife -Endangered Species Act Compliance The new facility designs are prepared to meet current code and regulatory requirements, including: e The 2000 Edition of the International Fire Code,including proposed State of Alaska Amendments e The 1999 Edition of the National Electrical Code Once the power plants become operational,the communities shall comply with the procedures established in the spill prevention and response plans listed below and will maintain and be familiar with the following regulatory plan: e US Environmental Protection Agency (EPA)Spill Prevention Control and Countermeasures Plan (SPCC)(40 CFR Part 112) 6(D).BENEFITS OF THE PROPOSED PROJECT The RPSU projects replace old,deteriorating power systems that are often inefficient and inadequate for the needs of the community.New generators require less maintenance or manual operation,as certain functions are built into the system or are connected into other corresponding systems.Generators come with load sensing switch-gear to automatically switch from one generator to the other of lesser or larger capacity,depending on the load required at a particular point in time.The switch-gear coupled with the energy savings equipment allows the plant to save hundreds of gallons of fuel oil over the course of a year.The automatic generator controls work in such a way that the generators are able to produce more kilowatt per gallon used.Additionally,the ability to blend in used oil back into the generation system saves additional gallons and alleviates environmental pollution. Overall,the economic savings will mean less operations and maintenance expenses, therefore potentially decreasing residential rates as a result of reduced annual budgets. e The old generators produced roughly 9.5 kilowatt hours or less per every gallon of diese!consumed.The new system will allow a 12 kilowatt hour production per gallon, saving roughly 20%of diesel fuel consumption annually. e The automated ability and electronic reading systems of the new generators will eliminate rough 25%of operations and maintenance time,saving the company many hours of administrative expenses over a course of a year. e With the new used oil blending mechanism,the utility saves one gallon of diesel fuel per 100 gallons used to generate power.After using 99 gallons of diesel,one gallon RUS GRANT APPLICATION 22 ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT of used oil is mixed into the generation system,saving the community expenses associated with exporting the used oil and the hundreds of gallons saved from consumption. e Cost increases generally arise when unanticipated activities resulting from accidents or malfunctioning equipment occur.These types of burdens on costs of operation and maintenance should be greatly minimized with these new facilities. With new generators,the transmission and distribution of power will be safer,more reliable and economical.More than likely,power surges will be minimized,therefore providing undisturbed flow of energy into the homes and community facilities.Brownouts and blackouts may not be experienced,as the capacity of the generators will be more that sufficient to provide power for current and future residential,community and commercial users.Overall,the improvements will be noticeable and appreciated by rural residents in the participating communities. A type of environmental pollution from older generatorsis the loudness of the generators.With the new and improved systems that come with sound deadening equipment,the power plant will be a much quieter facility.The older generators often caused the operators to experience some loss of hearing,even with the use of protective gear.This feature makes working at the plant a much more manageable task. The enhanced reliability of a new power facility will benefit those with a high dependence on reliable electrical power.Practically nine months of the year is cold and dark in Alaska. Rural residents have become accustomed to the modem amenities,such as electric- dependent home heating equipment and the commercial size chest freezers that many of these families depend on to store subsistence caught fish and meat.Without a reliable source of power and limited ability to have individual backup generation,residents often worry about the security of their harvests. Socially,being able to work in a clean and safe workplace has to be a tremendous positive,not only for the employees,but also for the entire community.No longer will employees and pedestrians walk in or near a hazardous facility that is saturated in fuel oil. Families will be able to breathe a little easier knowing that the power facilities are not in deficient status. A positive social benefit in the community is the attained higher level skills of local power operators that operate and maintain these more modern facilities.It takes special skills to be able to work on the generators and the energy systems installed at these sites.A sense of pride and ownership of a new facility produces positive motivation in those that work around andin it. RUS GRANT APPLICATION 23 ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT 7a.Proposed Project Budget (SF 424 C) RUS GRANT APPLICATION 24 RUS MKEC TIELINE BUDGET.xls BUDGET INFORMATION -Construction Programs COST CLASSIFICATION a.Total Cost b.«oe artcipation for |c.ve Coumme ab) 1.Administrative and legal expenses $129,000.00 $0.00 $129,000.00 2.Land,structures,rights-of-way,appraisals,etc.$0.00 $0.00 $0.00 3.Relocation expenses and payments $0.00 $0.00 $0.00 4.Architectural and engineering fees $266,000.00 $0.00 $266,000.00 5.Other architectural and engineering fees $0.00 $0.00 $0.00 6.Project inspection fees $0.00 $0.00 $0.00 7.Site work $0.00 $0.00 $0.00 8.Demolition and removal $0.00 $0.00 $0.00 9.Construction $1,350,000.00 $0.00 $1,350,000.00 10.Equipment $1,411,000.00 $0.00 '$1,411,000.00 11.Miscellaneous $9,000.00 $0.00 $9,000.00 12.SUBTOTAL (sumoflines 1-11)$3,165,000.00 $0.00 -$3,165,000.00 13.Contingencies $135,000.00 $0.00 .¢$135,000.00 14.SUBTOTAL $3,300,000.00 $0.00 $3,300,000.00 15.Project (program)income $0.00 $0.00 $0.00 16.TOTAL PROJECT COSTS (subtract #15 from #14)$3,300,000.00}$0.00 $3,300,000.00 FEDERAL FUNDING 17.Federal assistance requested,calculate as follows:Enter eligible costs from line 16c¢Multiply X __100_%$3,300,000.00 LOCALLY REPRODUCED Standard Form 424C 3/5/2004 As Authorized on original form Prescribed by OMB Circular A-102 ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT 7b.Budget Narrative 1. 10. 11. 12. 13. 14. 15. 16. 17. Administrative and legal expenses:This includes the estimated direct administrative expenses of the organization,AIDEA/AEA,which is no more than 4%of the total project costs. Land,Structures,rights-of-way,appraisals,etc.:Not applicable. Relocation expenses and payments:Not applicable. Architectural and engineering fees:This category includes costs associated with the design,the business plan and site control work.All these functions are completed through an architectural and engineering firm,therefore are included as fees. Other architectural and engineering fees:Not applicable. Project inspection fees:Not applicable. Site work:Not applicable. Demolition and removal:Not applicable. Construction:This line item generally includes all fees associated with the Construction Management firm and all activities associated with the construction of the project.This includes the purchase and shipment of material for the project.The time and travel expenses incurred by the Project Manager while managing the project are also included in this category. Equipment:This includes the costs of the actual generator sets and the associated switchgear,including the shipment costs. Miscellaneous:The pre-construction services of the construction cost estimator are included in this line item,as they technically do not fall under construction costs. SUBTOTAL:The combined subtotal of items 1 through 11. Contingencies:10%of the constructs costs is a standard rate used by AIDEA/AEA's RPSU program. SUBTOTAL:The combined subtotal of items 12 and 13. Project (program)income:Not applicable. TOTAL PROJECT COSTS:The rural power systems upgrade project totals $3,300,000,The total allowable costs. Federal assistance requested:AIDEA/AEA requests to receive 100%of the total allowable costs,which is at $3,300,000. RUS GRANT APPLICATION 25 ALASKA ENERGY AUTHORITY ; HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT 8.Supplementary Material Appendix A -Census Area Map Appendix B -Power Cost Equalization Statistical Report Appendix C -Denali Commission Partner information Appendix D -Project Information Appendix E -AEA Financial Statements Appendix F -HDL,LLC RUS GRANT APPLICATION ;26 ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT Supplementary Material RUS GRANT APPLICATION 27 Bethel Page 1 of 1 Ne ee oator ce Development Workforce Info y [Alaska Census Data]Home |Career Center{Economic Information|Download Data| Bethel Census Area 9 Clickon the .+map or on the"Vemma,view a 2000 C profile.Chuathbaluk Crooked Creek Aniak .Red Devil Upper Kalskag Stony River [Choose a Pla Lower Kalskag Nunapitchuk Akiachak Kasigluk Atm autluak NapakiakNewtok Mekoryuk Tununak ya 2 Choose ad Census Area' :ay .below. >Tuluksa \,[Borough/CenAkiakSleetmuteLimeVillage Kwethiuk Beth al OscarvilleToksookBayNightmute:Chefomak..Napaskiak Ipnu Tuntutuliak Kwigillingok Eek 2 Profile Beth Kongiganak Goodnews Ba PlatinumS :0 :4 ;90 ;::180 Miles Source:Alaska Deparin ent of Labor And Workforce De velgom ent,Research and Analysis arid US Census Bureau,2000 Tigeriive fies. Quinhagak © http://www.labor.state.ak.us/research/cgin/cenmaps/cas/beth.htm 3/5/2004 ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT Supplementary Material Appendix ss:(00 4 RUS GRANT APPLICATION 28 ((€4{({qq€€€4FFGFSCOCCCC((-_==¢4OCOCTETECCOCCOCESTATISTICAL REPORT - Of The POWER COST EQUALIZATION PROGRAM Fiscal Year 2003 | July 1,2002 -June 30,2003 Sixteenth Edition January 2004 State of Alaska Frank Murkowski,Governor ,Alaska Energy Authority pecrcerrcrcrcreeecllGQGGGasTCS9SCOCOCOOOOaRQ*Alaska Industrial Development and Export Authority Alaska Energy authority January 2004 Executive Director's Statement: This report provides statistical data on the Power Cost Equalization (PCE)program for the fiscal year ended June 30,2003. The cost of electricity for customers in rural parts of Alaska is generally fromthreetofivetimeshigherthanforcustomersinmoreurbanareasoftheState. PCE provides assistance to the customers of rural electric utilities by paying partoftheirelectricitycosts.PCE ultimatelyinsures the viability of the local utility andtheavailabilityofreliablecentralizedpower.About 79,000 people livein the 185 communities that participated in the PCE program during FY03. The FY03 appropriation allowed for PCE payments at the 84%level during the first eight (8)months,90%reduced level for the next three (3)months and 92%for the last month of the program year.Total disbursements were approximately$15.5 million. The FY03 report may be accessed via our web site at www.aidea.org/aea.htm.Printed and electronic copies of this report,or similar information on prior years,can be obtained by calling AEA at (907)269-3000. onald W."Miller Executive Director 813 West Northern Lights Boulevard *Anchorage,Alaska 99503 ddd88888839358008355040506TABLE OF CONTENTS Power Cost Equalization Program - Map of Participating Utilities/Communities ...................s:ccssssssrerereneeee saeel Power Cost Equalization Program - List of Participating Utilities/COMMUNItI€S ..............cecesceeeeeeescnsrereceeeesens 2 Highlights of the Power Cost Equalization Program .............cssesescerecesseserees 3 Power Cost Equalization Program Statistics - Comparing Fiscal Year 2002 to Fiscal Year 2003................:sccesssssnereee 4 Power Cost Equalization Annual Statistics - Utilities with Twelve Months of Data FY03........ec eessseteseeecenseseenes 5-9 Power Cost Equalization Program Historical Trends - Fiscal Years 1989 -2003 .........csecssscsesscsserecsesceseseseeesessesessceesesarssusagars 10 FY02 PCE Program Statistical Report Amendmentts............:ccccssssssrenceere 11 The Alaska Energy Authority complies with Tite il of the Americans with Disabilities Act of 1990.This publication is available in aitamative communications formats upon request.Please contact the Authority at (907)269-3000 to make any necessary arrangements. Data for the Power Cost Equalization Annual Statistics comes from utility monthly PCE reports submitted by participating utilitiesicommunities.Alaska Energy Authority staff reviews the report for completeness;otherwise,data submitted by the utilities/communitiss is not altered. Data for prior fiscal years does not include data collected after the publication of the PCE Annual Statistics Report for that fiscal year.Data for this fiscal year reflects only those reports that have been processed prior to the close of the intemal review period. Power Cost Equalization (PCE)Program Participating Communities 5salaeeesemeieeeFA RHAARARAARARARABKRKRKBSKKSHKHKRKRHWHR HABAB 2 (-&@ &KRRR 1LAQQ®@ : bSODOFAARTTOLCCSCICSSdSTIIITICETOTTTOSTFY03 PCE Program Participating Utilities Akhiok,City of Akiachak Native Community Akiak,City of Akutan Electric Utility Alaska Power Company Allakaket/Alatna Hydaburg Bettles/Evansville Klawock Chistochina Mentasta Coffman Cove Naukati Craig Northway/Northway Village Dot Lake Skagway Eagle/Eagle Village Tetlin Haines Thorne Bay/Kassan Healy Lake Tok Hollis Whale Pass Alaska Village Electric Cooperative Alakanuk Nightmute Ambler Noatak Anvik Noorvik Brevig Mission Nulato Chevak Nunapitchuk Eek Old Harbor Elim Pilot Station Emmonak Pitka's Point Gambell Quinhagak Goodnews Bay Russian Mission Grayling Savoonga Holy Cross Scammon Bay Hooper Bay Selawik Huslia Shageluk Kaltag Shaktoolik Kasigluk Shishmaref Kiana Shungnak Kivalina St.Mary's/Andreafsky Koyuk St.Michael Lower Kalskag Stebbins Marshall Togiak Mekoryuk Toksook Bay Minto Tununak Mt.Village Upper Kalsag New Stuyahok Wales Alutiiq Power Company Karluk Andreanof Electric Corporation Aniak Light &Power Company Atmautluak Joint Utilities Beaver Joint Utilities Bethel Utilities Corp. Bethel Oscarville Buckland,City of Central Electric,Inc. Chenega Bay IRA Village Council Chignik Electric Chignik Lagoon Power Utility .Chignik Lake Electric Utility,Inc. Chitina Electric Inc. Circle Electric Utility Cordova Electric Co-op Diomede Joint Utilities Egegik Light and Power Ekwok Electric Elfin Cove Electric Utility . False Pass Electric Association G&K Cold Bay Galena,City of Golovin Power Utilities Gustavus Electric Company Gwitchyaa Zhee Utilities Ft.Yukon Hughes Power &Light Iglugig Electric Company -N-N Electric Cooperative lliamna Nondaiton Newhalen Ipnatchiaq Electric Company Deering King Cove,City of Kipnuk Light Plant Kobuk Valley Electric Company Kokhanok Village Council Koliganek Village Council Kotllk Electric Services Kotzebue Electric Association Koyukuk,City of Kwethluk,Inc. Kwig Power Company Kwigillingok Larsen Bay Utility Company Levelock Electric Cooperative Lime Village Electric Company Manley Utility Company : Manokotak Power Company McGrath Light &Power Middle Kuskokwim Electric Cooperative Chuathbaluk Sleetmute Crooked Creek Stony River Red Devil Naknek Electric Association Naknek/South Naknek/King Salmon Napaklak Ircinraq Power Company Napaskiak Electric Utility Naterkaq Light Plant Chefornak Nelson Lagoon Electric Cooperative Nikolai Light &Power Nome Joint Utility System North Slope Borough Anaktuvuk Pass Point Hope Atqasuk Point Lay Kaktovik Wainwright Nuiqsut Nunam Iqua Electric Company Nushagak Electric Cooperative Dillingham/Aleknagik Ouzinkle,City of Pedro Bay Village Council Perryville,City of Pilot Point Electrical Platinum,City of Port Heiden,Clty of Puvurnaq Power Company Kongiganak Ruby,Clty of Sand Point Electric Company St.George Municipal Electric Utility St Pau!Municipal Electrical Utility Takotna Community Association Utilities Tanalian Electric Cooperative _Port Alsworth Tanana Power Company Tatitlek Electric Utility Teller Power Company Tenakee Springs,City of Tlingit Haida Regional Electric Authority Angoon Kake Chilkat Valley Kiukwan Hoonah Tuluksak Traditional Power Utility Tuntutuliak Community Service Assoc. Twin Hills Village Council Umnak Power Company Nikoiski Unalakleet Valley Electrical Cooperative Unalaska Electric Utility Unqusrag Power Company Newtok ; Venetie Village Electric White Mountain Utilities Yakutat Power |HIGHLIGHTS OF THE POWER COST EQUALIZATION PROGRAM | Eligibility Utility An electric utility participating in the Power Cost Equalization Program (PCE)must: a)provide electric service to the public for compensation;b)during calendar year 1983, have had less than 7,500 megawatt hours of residential consumption or less than 15,000 megawatt hours if two or more communities were served;and c)duting calendar year 1984, the utility has used diesel-fired generators to produce more than 75%of its electrical consumption. Customers Customer eligibility is based on actual power sold.State and federal offices/facilities, commercial and public schools are excluded from PCE.Residential customers are eligible for PCE credit up to 500 kwh/month/customer.Community facilities,as a group,can receive PCE credit for up to 70 kwh/month multiplied by the number of residents in a community.. Formula Used to determine PCE level/kWh for a utility: Formula:95%of the eligible costs per kWh between 12.0 cents/kWh,"the floor and,52.5 cents/kwh,"the ceiling”. Costs below 12.0 cents/kWh and above 52.5 cents/kwh are not eligible for PCE. If the eligible costs are 52.5 cents/kwh or more,the maximum PCE level is 38.48 cents/kWh (52.5 cents -12.0 cents =40.5 -cents x 95%=38.48 cents). A participating utility must meet generation efficiency and line loss standards,otherwise the PCE level is reduced to reflect those standards. Process The Regulatory Commission of Alaska (RCA) RCA determines the PCE level per kwh for each utility.Two categories of costs are used in determining the PCE level:a)fuel expenses:the cost of fuel,including transportation;and b)non-fuel expenses;other costs such as salaries,insurance,taxes,power plant parts and supplies,interest and other reasonable costs. The Alaska Energy Authority (AEA) Eligible utilities then submit monthly reports to AEA that document the eligible power sold. AEA calculates the amount of PCE on a monthly basis and issues payment to the utility to cover PCE credits that the utility has already provided to its eligible customers in the form of a reduced monthly electric bill.AEA also determines the eligibility of customers and of community facilities. Authority PCE is governed by Alaska Statutes 42.45.110-170,and by the Alaska Administrative Code 3 AAC 94.305-330 and 3 AAC 52.600-690.FeAewwmeVeWVeemeeeKhBRRREARAAB&@HR&& 8bd839°399899SGANSSSDIIIIIISFBFY03 POWER COST EQUALIZATION PROGRAM STATISTICS Fiscal year |Fiscal year}Percent 2003 2002 Change 2002 -2003 Participation Statistics Population Served 79,229 79,555 -0.4% Communities Served 185 187 -1.1% Participating Utilities 89 90 -1.1% Total Residential Customers 25,713 25,495 0.9% Total Eligible Community Facilities Customers 1,776 1,746 1.7% Total Eligible Customers 27,489 27,241 0.9% Production Statistics Total Diesel Generation (kWh)370,976,960}386,658,693 4.1% Total Hydroelectric Generation (kWh)(1)-25,599,909 7,889,500 224.5% Total Purchased Power (kWh)45,840,367}45,755,222 0.2% Total kWh Sold (All Customers)(2)403,156,646|401,804,401 0.3% PCE Eligible kWh -Residential 89,786,393|89,314,504 0.5% PCE Eligible kWh -Community Facilities 33,828,803|34,342,099 -1.5% Total PCE Eligible kWh shown as percent of total kWh sold.31%31%0.0% Average Monthly PCE Eligible kWh -Residential Customers (3)291 293 -0.7% Average Monthly PCE Eligible kWh -Community Facilities 1,587 1,645 -3.5% Average Monthly PCE Eligible kWh -Community Facilities /Per Resident 36 36 0.0% Financial Statistics Average Price of Fuel Oil ($/gallon)1.33 1.32 0.8% Total Fuel Oil Consumed (gallons)27,295,935|28,161,794 -3.1% Total Cost of Fuel Oil Purchased by the Utilities ($)_36,400,050|37,059,110 -1.8% Total Operating Costs ($)59,003,506{57,169,071 3.2% .Operating expenses per total kWh sold ($)0.1464 0.1410 3.8% PCE legislative funding appropriations 15,700,000;15,700,000 0.0% Total PCE payments ($)(4)15,448,480]15,469,105 -0.1% Average PCE payment per eligible kwh (5)0.1250 0.1251 -0.1% Average annual required PCE payment percustomer ($)(3)562.00 569.00 -1.2% (1)Substantial increase in hydro generation due to the production of Cordova's Power Creek hydro facility. (2)Value reduced by 3,194,515 kWh's in FY02,and by 1,063,387 in FY03 to eliminate double counting of kWh's where power is sold/purchased between utilities participating in the PCE Program. (3)Calculation assumes all customers were eligible to receive twelve (12)months of PCE credit. (4)During FYO3 PCE payments were made at a 84%level for the first eight (8)months,and at a 90%level for the next three (3)months,and at a 92%level for the last month. State of Alaska:Alaska Energy Authority Fiscal Year 2003 Power Cost Equalization Program by Utility/Community [al [b]{c][d]fe][f=d+e]tg] Popu-Number PCE Eligible Total lation of Customers kWh kWh Utility/Community SoldResi-Community |Residential |Community Total dential Facilities Facilities kWh 'Akhiok,City of (1) :+: Akiachak Native Community Electric Co.622 137 :8 387,945 =68,845 ;456,790 |1,015,893 Akiak,City of 346 77°13 171,581 :0:171,581 772,716 Akutan Electric Utility 748 37:10 162,019 .143,671 ;305,690;530,160 Alaska Power Company Allakaket,Alatna 162 74 ;16 194,575 :111,671 ;306,246 567,542 Betties,Evansville 58 30 |7 118,521 |45,789 ;164,310!657,528 Chistochina 84 34:2 107,250 :33,243 |140,493 |252,541 Coffman Cove 161 120 11 371,269 :91,636 :462,905 699,905 Craig 1,562 648 47 2,610,121 :1,139,824 ;3,749,945 113,576,973 Dot Lake §2 24:85,195 -33,071 i 118,266 345,499 Eagie,Eagle Village 162 146 8 .303,910 :18,243 i 322,153 607,846 Haines 1,872 908 :23 3,223,547 :449,113 ;3,672,660 |11,322,649 Healy Lake 31 13:4 38,697 .28,379 ;67,076 126,425 Hollis 150 88 :266,318 ;3,713 :270,031 502,036 Hydaburg 364 127 :14 561,608 :164,365 ;725,973 |1,377,885 Klawock 848 323 :19 1,207,741 :208,044 ;1,415,785 |4,869,423 Mentasta 139 33:105,252 :99,419 ;204,671 310,668 Naukatl 110 50:176,893 |0:176,893 |393,809 Northway,Northway Village 282 105 357,285 «82,215 ;439,500;1,430,722 Skagway 841 552 42 1,760,867 :716,200 ;2,477,067 |10,586,855 Tetlin 142 49:2 155,724 |49,746 ;205,470 383,954 Thome Bay/Kasaan 558 264 :29 871,702 i 394,701 ;1,266,403 |2,957,401 Tok 1,444 685 10 |2,529,257:87,508;2,616,765 |10,452,682 Whale Pass 62 50 :1 113,909 :1,218 |115,127 223,899 Ffotal =Alaska Power Compan 074.3 13,758,098 7 18,917,739 [61,646,242 Alaska Village Electric Cooperative 659 "1 '296,921 :893,305 1,628,805 295 91:10 308,267 ;175,764 :484,031 |1,130,502 109 55 :7 151,491 ;56,803 «208,294 411,384 307 74:11 256,722 :167,190 :423,912 732,001 Chevak 854 192 :12 690,897 ;349,199 :1,040,096 |2,238,627 Eek 291 94:316,801 «88,554 |405,355 643,110 Elim 339 97 :9 389,804 :169,101 ;558,905 |1,230,426 Emmonak 745 217 :11 737,862 :451,342 :1,189,204 |2,545,448 Gambell 639 171:14 553,255 ;235,751 |789,006 |1,672,971 Goodnews Bay 234 92 :9 249,603 ;132,224 '381,827 622,378 Grayling 192 65 :12 190,961 ;106,566 :297,527 464,772 Holy Cross 232 84:10 293,524 ;113,987 ;407,511 672,178 Hooper Bay 1,075 222 :13 806,128 :155,542 :961,670 |2,259,296 Husiia 285 104 :13 376,217 ;102,276 :478,493 831,229 Kaltag 223 79 :9 284,582 |44,456 :329,038 658,799 Kasigiuk 527 119 10 443,888 ;94,650 :538,538 |1,276,787 Kiana 399 132:17 468,954 :246,668 :715,622 |1,406,791 NOTES:***=Calculations cannot be made due to lack of data or other circumstances.()=see andnotes on Page 9. Columns a-c:Values extracted from June 2003 utility reports. Columns d,8,g:Values summed from fiscal year 2003 utility reports. *Totals reflect all data reported by utility for fiscal year 2003. Page 5A i*Me&aa2OAQQA}@@aa@AARAAEASBABAFARAARARARAAABRARARAAA weFiscal Year 2003 Power Cost Equalization Program by UtilityiCommunity [h]|Gein][k)mn Im]In][o}[p=l/(b+c}]{q=I"100/f][r=g{m+n+oj] [s=f/g][tedib/12]_[u=e/a/12]_-[v=k"100/g]_=[w=m/h}Ix]yl [z=x-y] Total Fuel Used Average Totai Required +Total kWh Total kWh Total kWh Average Average Total Eligibie Average monthly Non-fuel kWh Average PCE Effective (diesel)Price Non-fuel PCE Generated Generated Purchased Annual PCE kWh Sold kWh Eligible kWh per Expenses |Generated|Residential Rate ResidentialofFuelExpensesPaymentsDieselNon-Diesel Required Payment |vs.Total versus per kWh Sold;=with Rate (based Rate Utility/Community gallons cost diesel and Non-PCE Payment |per Eligible]kWhGen-|=Total Residential |Community Diesel per |on monthly |go/2003 |6/30/2003dieselperCustomerkWherated_|kWhSold |Customer |Facility Galion of |usage of 500PurchasedFuelUsedkWh)$($/gal)($}$kWh kWh kWh $cents %%kWhiperson|cents/kWh |kWh/gal |cents/kWh |cents/kWh|cents/kWh Akhiok,City of 105,291 159,475 1.51 222,244 71,688 1,250,017 i :494 15.7 813 45.0 236 3:9 21.9 11.87 42.00 18.97 23.03 'Akiachak Native Community Electric Co. 82,354 121,405 1.47 100,172 24,162 395,678 @);'268 14.1 om (2)22.2 186:0 13.0 "39.00 14.42 24.58 Akiak,City of 47,669 64,104 1.34 99,232 53,438 553,006 :13,950 :1,137 17.5 93.5 57.7 365 :18 18.7 11.60 32.30 18.68 13.62 Akutan Electric Utility 55,494 115,372 2.08 68,441 86,870 637,718 ;:965 28.4 89.0 54.0 219 :57 12.1 11.49 47.97 30.22 17.75 {Allakaket,Alaina Alaska Power Company 62,115 78,668 1.27 96,755 35,117 745,584 ''949 21.4 882 25.0 329:66 14.7 12.00 39.49 22.81 16.68 |Betties,Evansville 23,091 25,530 1.11 43,593 26,191 276,491 'i 728 18.6 91.3 55.6 263 :33 17.3 11.97 36.78 20.44 16.34 |Chistochina 58,403 60,280 1.03 80,332 46,183 749,180 i '353 10.0 93.4 66.1 258 '47 11.5 12.83 28.45 13.03 15.42 |Coffman Cove 25,249 :27,930 1.11 691,808 144,148 329,498 ;:23,307,200 ©)207 3.8 27.6 336:61 5.1 13.05 18.30 4.81 13.49 {Craig beatad 4:we 4 aided 20,862 6,526 ::261 55 w=(4 H2 296 53 6.0 "ee 19.99 5.89 14.10 |Dot Lake 56,229 63,427 1.13 128,584 65,938 703,950 ::428 20.5 86.3 53.0 173 10 21.2 12.52 37.76 21,30 16.46 |Eagle,Eagie Village 16,881 |17,370 1.03 614,773 157,008 233,600:'42,056,970 ®)169 43 92.1 32.4 296 20 5.4 13.84 17.94 4.57 13.37 |Haines 14,082 :15,370 1.09 29,688 15,201 144,054 :i 894 22.7 87.8 53.1 248 76 23.5 10.23 40.25 23.47 16.78 {Healy Lake 47,126 :48,390 1.03 41,548 10,391 564,560 't 117 3.8 88.9 53.8 252;2 8.3 11.98 17.34 4.81 12.53 |Hollis 105,367 116,710 1.11 85,981 27,923 1,454,800 ':198 3.8 94.7 §2.7 369 38 6.2 13.81 18.30 4.81 13.49 j Hydaburg oe ©;(5)"we 186,203 55,587 we (5)i :163 3.9 we (5)29.1 312)Oi 20 3.8 "*18.30 4.81 13.49 |Klawock 31,730 35,508 1.12 42,669 38,673 359,560 ::1,018 18.9 86.4 65.9 266 60 13.7 11.33 37.38 20.97 16.41 |Mentasta 40,984 41,036 4.00 49,659 23,620 457,632 :'472 13.4 86.1 44.9 295 i 0 12.6 WAT 28.23 12.63 15.40 |Naukati 123,874 132,738 1.07 106,930 83,192 1,627,944 :'756 18.9 879 30.7 284 24 75 13.14 35.75 19.54 16.21 |Northway,Northway Village 9,081 :9,642 1.06 496,135 105,972 97,600 :3,890,200 :6,969,058 &)178 43 96.6 23.4 266 |71 47 10.75 17.94 4.57 13.37 |Skagway 35,499 i 49,944 1.41 43,812 40,918 436,620 :'802 19.9 87.9 53.5 265 |29 11.4 12.30 36.57 20.26 16.31 |Tetin baled (s)i niall (5)-"44,174 48,629 wee (5):'166 3.8 wee (5)42.8 275i 59 15 "18.30 4.81 13.49 |Thome Bay/Kasaan ,820,563 (©i 870,809 (©1.06 525,500 144,492 11,931,727 ©::208 55 (8)25.0 308:5 5.0 14.54 19.99 5.89 14.10 |Tok 285,504 363 784 51.4 190 12.21 29.11 13.60 16.5124,097 39,998 036, Whale Pass :139,193 175,678,1,724,464:' 38 88,889 ;191,176 124,923;1,226,227}i 50 36,848 :52,938 52,202 448,178:i .;43 60,359 :76,368 : 82,812 791,464:i 974 19.5 92.5 45 "=(7)13.11 19.57 |Brevig Mission"493,868;212,123 |1.15 m "207,507 2,435,558 $C 1017 >(200:«919°34 ed)13.25 1963 [Chak===-SSSSs=C CS ="'"'"';7<2CS ;;3C]}SHC<CS;<S;7;CS"62,328:«61,316 "83,251!680,672}a yee "808 205 945 25 ;19.60 [Eek ;-- 105,735 :122,892 i i 1,076 204 .94.7 42 19.53 |Elimtaeda”TP eabe0d TT ||Soo es oy .-G9.5i°temmonak .ne meen z "444,189:«163,289 | 7""453,268!1,988,515 |Sn en:194 :84.1 1 "49.72 {Gambell "--_-oe 56,857:61,167 :76,018 678,162::753 199 :91.8 19.75 |Goodnews Bay 40,782;54,249 1.33 -M 70,052 505,381:i 10:23.5 92.0 64.0 20.03 :Grayling 54,099 :70,984 1.31 "7 91,687 :700,886:;975.225 :959 60.6 19.93 :Holy Cross 191,541 i:217,578 1.14 "=a 208,534;2,350,629:i 879 215 96.1 426 |19.65 |Hooper Bay 72,175 113,367 1.57 "-123,498 865,062::1,056 25.8 :96.1 57.6 |20.20 |Husiia 58,929 :80,956 1.37 "=7 -78,481 689,583:i 892 23.9 95.5 49.9 20.10:Kaltag 1,159 @ :60 (8)a "a 112,135 9,565 ()i 869 20.8 (8)422 |19.77;Kasigiuk 122,384 209,343 1.71 "7 173,951!.1,680,457 1,167 243°83.7 50.9 ;20.28 {Kiana NOTES **=Calculations cannotbemade due to lack of data or other circumstances.(}=sea endnotes on Page 9.Column q:Calculated PCE rate based on 12 monthsof data. Columns h,i,k,m,n,0:Values summed from fiscal year 2003 utility reports. Column k:Total non-fuel expenses consists of salaries,insurance,taxes,supplies,interest,and other verifiable reasonable costs. Column |:Total amount utility was reimbursed for PCE credit given to eligible customers during fiscal year 2003. Column x.Residential rates as reported by the utility in fiscal year 2003. Column y:Rates based on RCA Letter Order effective June 2003.PCE rate reflects 92%funding level. Page 5B State of Alaska:Alaska Energy Authority Fiscal Year 2003 Power Cost Equalization Program by UtilityiCommunity -fal {b]{c]{a}tel [fed+e][9] Popu-Number PCE Eligible TotallationofCustomerskWhkWh Utility/Community SoldResi-Community |Residential |Community Total dential Facilities Facilities kWh 'Alaska Village Electric Cooperative Kivalina 383 8&3 i;7 331,989 :116,471 |448,460 |1,092,113Koyuk32990i"1 372,610 :185,033 ;557,643 |1,153,394LowerKaiskag26092;7 268,083 :84,902 ;352,985 |528,672 Marshall 364 105;12 416,120 |179,903 ;596,023 |1,034,930 Mekoryuk 204 ot:7 264,046 :73,766 :337,812 |751,027 Minto 229 92 i 6 298,372 |153,522 i 451,894 |644,361 Mountain Village 157 204;17 701,647 ;250,212 :951,859 |2,438,437 New Stuyahok 479 115 5 10 455,127 :111,585 ;566,712 |1,134,313 Nightmute 224 48 i 8 180,208 :65,756 :245,964 |494,410 Noatak 455 106 11 478,397 |189,938 ;668,335 |1,380,294 Noorvik 677 181:10 633,181 ;273,882 ;907,063 ;1,999,300Nuiato345119:18 412,105 |235,535 i 647,640 |1,063,951Nunapitchuk512122:10 425,805 :50,889 :476,694 |1,024,430 Old Harbor 229 97 :10 290,612 ;136,538 ;427,150 659,953 Pilot Station 546 140 :12 527,211 !191,998 ;719,209 |1,651,626PitkasPoint9437:4 109,523 :33,717 !143,240]290,431 Quinhagak 572 167;13 565,796 :244,086 :809,882 |1,450,617 Russian Mission 328 76 :6 283,542 ;39,561 ;323,103)724,056 Savoonga 686 172 14 587,412 :306,294 :893,706 |1,790,970 Scammon Bay 491 109:7 394,942 |64,380 :459,322 |979,056 Selawik 778 218 :17 708,908 :477,812 :1,186,720 |2,459,579 Shageluk 145 53:8 122,020 :65,019 :187,039 |369,044 Shaktoolik 218 70:6 260,029 :84,971 :345,000}806,632 Shishmaref 589 154:12 570,647 :148,581 :719,228 |1,669,561 Shungnak 249 71:8 241,546 ;176,053 :417,599 |1,436,713 St.Mary's,Andreafsky 688 193:16 564,817 :251,340 :816,157 |2,456,923 St.Michael 390 125 :12 357,278 :292,689 :649,967 |1,208,794 Stebbins 586 133:14 431,730 ;146,761 :578,491 |1,267,658 Togiak 804 241:18 809,097 ;231,964 ;1,041,061 |2,225,392 Toksook Bay 549 120 :10 453,723 ;135,665 :589,388 ;1,168,580 Tunanak :9 288,427 :69,808 :358,235 764,105 Upper Kalsag :6 279,180 :53,910 :333,090 {630,162Wales6157,773 :68,374 :226,147;591,810 [Total=Alaska Village Electric Cooperative©20,387,243 127.908 317 28,595,152 [59,766,798'Alutiiq Power Company Karluk 38,332 :9,408 «47,740 100,044 'Andreanof Electric Corporation Atks 116,952 i 53,524 +170,476 317,565 'Aniak Light&Power Company 712,134 ;61,637 :773,771 |2,111,744 'Atmautluak Joint Utilities 195,307 ;28,746 :224,053:571,485 Bethel Utilities Corp.18 =:7,113,598 ;1,656,616 :8,770,214 139,103,908 Buckland,Cityof :5 ;309,085 :90,471 ;399,556 |773,184 Central Electric,Inc.120 122 :1 i 225,633 -3,886 :229,519 488,223 Chenega Bay IRA Village Council 86)19;3 83,351 ©18,034 ©101,385 i 245,539 NOTES:'***=Calculations cannot be made due to lack of data or other circumstances.()=see endnotes on Page 9. Columns a-c:Values extracted from June 2003 utility reports. Columns d,e,g:Values summed from fiscal year 2003 utility reports. *Totals refiect all data reported by utility for fiscal year 2003. -Page 6A CLOCLOLCOCCOCOOHHODOECADADGANDKDHAGAAKHhAAHGAGAANRLALHEA Columns h,i,k,m,n,0:Values summed from fiscal year 2003 utility reports. Column k:Total non-fuel expenses consists of salaries,insurance,taxes,supplies,interest,and other verifiable reasonable costs. Column I: Colurnn x:Residential rates as reported by the utility In fiscal year 2003. Column y:Rates based on RCA Letter Order effective June 2003.PCE rate reflects 92%funding level. Total amount utility was reimbursed for PCE credit given to eligible customers during fiscal year 2003.'»»Page 6B =]a 2 Fiscal Year 2003 ®Power Cost Equalization Program by -UtilityiCommunity ®. I [hy Ol O=Vh]Ik].ul [m]In}[0]{p=li(b+c)][q=i*100/][r=gim+nto)][s=f/g][ted/bl12][use/a/12]-[vek*100/g}_[wanvh][x]yl [z=x-y] ; Total Fuei Used Average Total Required Total kWh Total kWh Total kWh Average Average Total Eligible Average monthly Non-fuel kWh -Average PCE Effective 4 (diesel)Price Non-fuel PCE Generated Generated Purchased Annual PCE kWh Sold kWh Eligible kWh per Expenses |Generated}Residential Rate |ResidentialofFuelExpensesPaymentsDieselNon-Diesel Required Payment |vs.Total versus per kWh Sold|=with Rate (based Rate Utility/Community :gallons cost diesel and Non-PCE Payment |per Eligible |kWhGen-|Total |Residential |Community Diesel per |on monthly |39/2003 |6/30/2003 .diesel per Customer kWh erated.|kWhSold |Customer |Facility Gallon of |usage of 500 a Purchased Fuel Used kWh) :$(S/gal)(9)$kWh kWh kWh $cents %%kWh/person|cents/kWh |kWhigal {cents/kWh |cents/kWh|cents/kWh 85,041 138,202 1.63 ow 7 109,458 1,175,222 !1,216 24.4 92.9 411 333:25 (7)13.82 45.02 24.89 20.13;Kivaiina Alaska Village Electric Cooperative 84,169 :93,588 1.11 7 108,615 1,209,975 i '1,075 :19.5 95.3 483 345;47 ene (7)14,38 40.13 20.61 19.52 |Koyuk .. 90,488 (:102,049 (9%)1.13 -7)73,217 1,216,071 ®;:740 :20.7 oe (9)66.8 2430:27 "(7 13.44 41.81 22.08 19.73 |Lower Kalskag :78,252 92,615 1.18 (7)119,444 1,085,053 ::1,021 :20.0 95.4 57.6 330:41 oon (7)13.87 41.45 21.77 19.68 |Marshall 57,165 65,114 1.14 (7)67,603 812,557 ':690 :20.0 92.4 45.0 242--=:30 wo (7)14.21 40.85 21.24 19.61 |Mekoryuk 56,061 57,840 4.03 o-7)91,171 680,842::930 :20.2 94.6 70.1 270:«.56 owe (7)12.14 39.26 19.84 19.42 i Minto 192,659 225,019 1.17 -7 195,696 2,610,457 '886 :20.6 93.4 39.0 287 28 on (7)13.55 41.86 22.12 19.74 ;Mountain Village 92,163 107,486 1.17 om in 123,943 1,199,412 ::992 :21.9 94.6 50.0 330 :19 "7 13.01 40.95 21.33 19.62 |New Stuyahok 46,532 50,358 1.08 "7 62,926 559,234 :'1,124 :25.6 88.4 49.7 3130:24 «we (7)12.02 43.43 26.12 17.31 {|Nightmute 406,501 :285,764 2.68 "7 218,444;1,467,832:1,867 327 :940 48.4 378:7)13.78 57.42 35.40|22.02 |Noatak £153,688 :260,389 1.69 "7 220,504 2,307,252 ::1,154 24.3 86.7 45.4 292 :«4 wes (7)15.01 45.74 25.51 20.23;Noorvik |69448.125,716 |1.44 -a 151,131;1,135,953;1,103 233:937 60.9 29 «: «O57 =7 12.70 44.95 24.82 20.13 jNuito 409,136 (9°2195080)|te 100,308:2,480,189 (10)::760:21.0 ae (10)46.5 291:8 =™7 13.11 42.08 22.31 19.77 |Nunapitchuk 59,713 72,907 1.22 -™89,361 745,885 ''835 i 209 :885 64.7 250 i 50 (7)12.49 37.36 18.19 19.17 |Old Harbor 131,899 >153,730 1.17 w=(7 147,865 1,744,455:'973 i 206 :947 43.5 314 Oi 29 +(7)13.23 43.41 23.48 19.93 |Pitot Station Seiad ay,tee ay etal -™30,990 oe 1),'756 i 216 :sm (tM)49.3 247_-:30 wee (7)betel 41.24 21.58 19.66 [Pitkas Point 121,280 133,072 1.10 -7 156,676 1,558,345 :'870 :19.3:93.1 55.8 282;36 (7)12.85 40.03 20.53 19.50 i'Quinhagak §7,573 61,285 1.06 -7 64,419 778,529:H 786 i 19.9 :93.0 446 311:10 wo (7)13.52 39.83 20.35 19.48 |Russian Mission 149,314 171,983 115 oe (7)185,411 1,911,413 ::997 :20.7 :937 49.9 285:37 oe (7)12.80 41.44 21.76 19.68 :Savoonga ;80,979 91,885 1.13 on)96,505;1,032,324:832;21.0 :948 46.9 302;11 (7 12.75 40.94 21.32 19.62 |Scammon Bay 213,054 351,922 1.65 "-7 307,084 2,600,476:'1,307 :25.9 :946 48.2 271 i 51 ore (7)12.21 45.97 25.71 20.26 |Selawk :33,124 51,105 1.54 -m7 43,770 413,276::718 i 23.4 89.3 50.7 192 '37 oe (7)12.48 47.04 26.65 20.39 |Shageiuk a 63,767 69,859 1.10 w"-7 69,976 866,256 ::921 :20.3 93.1 428 310:32 os (7)13.58 40.81 21.21 19.60 ;Shaktoolik t 130,843 144,782 1.11 "7 142,906 1,770,332::861 i 19.9 94.3 43.1 308k 21 owe (7)13.53 39.66 20.19 19.47 ;Shishmaref ;J 109,784 :239,291 2.18 "™™98,586 1,527,747:i 1,248 :23.6 94.0 29.1 284:59 oe (7)13.92 50.56 29.73 20.83 |Shungnak t 224,875 (12):257,903 (12)1.15 ve 7)173,913;2,925,726!;832;21.3 -33.2 244;=30 "=m 13.01 41.24 21.58 19.66 |St Mary's,Andreatsky L 89,964 +103,491 1.15 on 7 133,708 1,312,945 :i 976 :20.6 92.4 §3.8 238:63 «we (7)14.59 41.15 21.50 19.65 |St Michael 2 103,431 113,159 1.09 "-7 117,123 1,345,824 |'797 20.2 94.2 45.6 271;21 oo (7)13.01 40.43 20.87 19.56 |Stebbins 192,390 i 221,217 1.15 ow"215,035 2,418,069 :i 830 i 20.7 $2.0 46.8 280 i 24 wee (7)12.57 40.95 21.33 19.62 |Togiak t "902,802 145,111 |1.12 ee 123,303,-1,256,713 948 209:930 "504;315 =,24 sm i 4222 [41.47 «|21.78 19.69 |ToksookBay SS -_ :Pgagoo eeea LT a Co ere)ee a mg ee os is 56a 3 scm aa Poa a ede |a £baited (13):-(13)oe oem (7)(83):18 see (7)"41.81 22.08 19.73 |Upper Kaisag t $3,295;73,311 "a)13.38 41.05 21.42 19.63 |Weles , 5863 }BO NOME (a2 808 T=Total =Alaska Vilage Elodie Cooperativec14,712;25,746 1.75 46,288 136,690:;417 34 9.29 60.00 31.62 |:Karluk Alutiiq Power Company E 36,130 69,787 1.93 22,955 27,300 ;334,687::941 16.0 94.9 53.7 361;44 72 9.26 50.00 18.10 31.90 {Atka Andreanof Electric Corporation L 190,406 219,520 1.15 729,913 171,984 :2,433,500::935 i 22.2 86.8 36.6 343 0=«C:10 46 12.78 47.48 24.55 22.93 Aniak Light &Power Company £57,630 >77,512 134 :86,388 26,229:.795,345 :;391 11.7 719 39.2 258 |8 15.1 13.80 46.80 9.41 37.39 Atmautiuak Joint Utilities A 3,086,007 :§,780,610 1.87 ;..2,350,000 806,378 42,048,000 ::501 92 93.0 22.4 :372):24 6.0 13.63 27.74 11.72 18.02 Bethel Utilities Corp. a 98,035 198,328 2.02 67,288 -50,468 1,077,480::608 12.6 71.8 51.7 :330 18 8.7 10.99 37.00 11.57 25.43 Buckland,City of *§8,963 64,369 1.09 225,213 56,549 537,940:460 24.6 90.8 47.0 i 164:3 46.1 9.12 50.89 29.40 21.49 Central Electric,Inc. &27,335 47,363 1.73 23,540 10,876 :268,620 ::494 10.7 91.4 i 41.3:366 17 9.6 9.83 i 29.50 16.10 i 13.40 i Chenega Bay IRA Village Council . :i tO NOTES '***=Calculations cannot be made due to lack of data or other circumstances.()=see endnotes on Page 9.Colurnnq:Calculated PCE rate based on 12 months of data. eo J ve > State of Alaska:Alaska Energy Authority Fiscal Year 2003 Power Cost Equalization Program by UtilityiCommunity [al [b}{c]{d]"Te)[fed+e](gl Popu-Number PCE Eligible Total |lation of Customers kWh °kWhUtility/Community SoldResi-Community |Residential |Community Total dential Facilities Facilities kWh Chignik Electric 77 62 i.10 167,227 :65,800 ;233,027 578,860 Chignik Lagoon Power Utility 89 68 ;11 164,560 :70,114 ;234,674 552,830 Chignik Lake Electric Utility,Inc.115 36:6 102,399 :0:102,399}290,010 Chitina Electric Inc.123 36:2 92,535 ;17,659 ;110,194 |400,904 Circle Electric Utility 84 31:6 86,377 :27,129 ;113,506:291,719 Cordova Electric Co-op 2,593 819 ;60 3,720,846 :2,158,736 ;5,879,582 (22,175,827 Diomede Joint Utilities 128 39 i 6 124,576 }63,547 i 188,123 |487,979 Egegik Light and Power 88 69 :21 129,317 !98,521 i 227,838;661,952 Ekwok Electric 130 62 :7 149,538 ;48,649 ;198,187 |384,435 Elfin Cove Electric Utility 32 46 :5 102,214 :23,361 :125,575 |326,833" Faise Pass Electric Association 79 27 :10_69,173 :§3,141 |122,314 |414,009. G&K Cold Bay 116 33:5 113,786 :81,760 ;195,546 |2,642,856Galena,Cityof a z Golovin Power Utilities 148 49:9 153,806 }61,769 |215,575 |573,744 Gustavus Electric Company 421 365 :6 776,532 ;32,114 ;808,646 |1,450,912 Gwitchyaa Zhee Utilities Fort Yukon 581 246 :8 756,769 |215,342 +972,111 |2,143,535 Hughes Power&Light 69 4:3 61,972 ;35,045 :97,017|201,088 Igiugig Electric Company $2 18 :9 53,484 ;34,353 +87,837 189,441 I-N-N Electric Cooperative Wiamna,Newhalen,Nondalton 467 209 18 619,308 ;196,136 :815,444 |1,974,787 ilpnatchiag Electric Company Deering 129 49:8 182,957 :61,504 :244,461 665,317 King Cove,City of 794 180 :28 501,728 ;665,280 :1,167,008 |3,343,330 Kipnuk Light Plant 644 149 :6 594,970 ;0:594,970 |1,591,192 Kobuk Valley Electric Company 106 33:6 96,823 iH 87,942 :184,765 |471,546 Kokhanok Village Council 174 47 :8 151,467 :50,490 :201,957 254,196 Koliganek Village Council 186 64 :7 175,130 ;54,422 :229,552 |393,207 Kotiik Electric Services 633 146 :8 452,285 ;164,486 :616,771 |1,609,045 Kotzebue Electric Association 3,107 975 :29 3,720,309 ;1,810,243 :5,530,552 (20,551,249 Koyukuk,Cityof 101 52 :2 93,552 H 11,855 :105,407 |262,478 Kwethluk,Inc.693 158 :10 487,103 :74,712 |561,815 |1,132,372 Kwig Power Company Kwigilligok 337 87 :2 367,509 ;27,040 :394,549 654,083 Larsen Bay Utility Company 107 49:10 130,269 :81,148 :211,417 |557,514 Levelock Electric Cooperative 122 40:16 115,478 |36,952 :152,430}358,127 Lime Village Electric Company 62 14:4 24,903 ;10,749 :35,652 67,591 Manley Utlity Company 72 73:1 109,960 ;2,113 :112,073 |245,251 Manokotak Power Company 404 97:4 305,264 ;14,338 :319,602 |1,126,900 McGrath Light&Power 407 181 :12 674,799 i 289,541 :964,340 |2,627,495 Middle Kuskokwim Electric Cooperative ©Chuathbaluk 98 29 :6 87,297 ;21,908 :109,205 171,957 Crooked Creek 146 30:4 103,993 ;25,650 :129,643 |242,801 Red Devil 35 12 :2 35,609 :7,634 :43,243 109,618 Sleetmute 93 31 4 91,775 ;19,902 :111,677 |195,847 Stony River 57 20 3 38,643 :7,582 :46,225 96,406 Total <Middle Kuskokwim Electric Cooperative 9 fx 957,317 82,678F<*;439,093 |816,629. NOTES:«*=Calculations cannot be made due to lack of data or other circumstances. Columns a-c:Values extracted from June 2003 utility reports. Columns d,e,g:Values summed from fiscal year 2003 utility reports. *Totals reflect all data reported by utility for fiscal year 2003. ()=see endnotes on Page 9. Page 7A SOOHLHEOH3G011d.FOOQHONOAOHAHADADAADRMDRARAANRDRARAAALALAAa "SRBBEaywyyvesyryryreeeeoere|byerFiscal Year 2003 Power Cost Equalization Program by Utilityi(Community fh)fl O=i/h]{k]m {m]In][o]{p=Ui(b+c)]--[q=i*100/f][regXkm+nto)][s=t/a][ted/b/12][uze/atZ]-[vek*400/g][wert]Le ll [z=x-y] Total Fuei Used Average Total Required Total kWh Total kWh Total kWh Average Average Total Eligible Average monthiy Non-fuei kWh Average PCE Effective (diesel)Price Non-fuel PCE Generated Generated Purchased Annual PCE kWh Sold kWh Eligible kWh per Expenses [Generated |Residential Rate |Residential ° of Fuel Expenses Payments Diesel Non-Diesel Required Payment |vs.Total versus per kWh Sold}with Rate (based Rate Utility/CommunitygationscostdieselandNon-PCE Payment |per Eligible]kWhGen-|Total |Residential |Community Diesel per |on monthly |g3p9003 |6/30/2003dieselperCustomerkWherated_|kWhSold |Customer |Facility Gallon of |usage of 500PurchasedFuelUsedkWh) $(S/gal)(3)$kWh kWh kWh $cents %%kWhiperson|cente/kWh |kWhigal |cents/kWh |cents/kWh|cents/kWh 59635 :66,020 1.11 103,681 36,408 630,750;:508 15.6 91.8 40.3 225:71 179 10.58 33.33 16.62 16.71 Chignik Electric 49,956 72,546 1.45 60,532 21,3068 595,750;'270 91 :928 42.4 202:66 10.9 11.93 32.50 13.56 18.94 Chignik Lagoon Power Utility i Sion CL ca 0 (4)26,812 0 014);:598,152 (16)638 220:(4 35.3 237 0 "ad 47.88 27.98 19.92 Chignik Lake Electric Utility,inc. 37,839 :55,634 1.47 84,549 13,132 436,394;:346 119 :919 275 214!12 214 11.53 35.50 13.59 21.91 Chitina Electric Inc. 31,711 :36,052 1.14 93,357 28,272 332,080;!764:249 :878 38.9 232!27 32.0 10.47 50.00 31.16 18.84 Circle Electric Utility 619,290 :764,913 1.24 4,550,083 479,482:8,294,871;16,177,414 |545 82 :906 26.5 379:69 20.5 13.39 26.28 10.69 15.59 Cordova Electric Co-op 43,856 :71,485 1.63 177,189 42,491 513,930:944 22.6 :95.0 38.6 266 |41 36.3 11.72 50.00 26.64 23.36 Diomede Joint Utilities 64,679 :100,008 1.55 232,967 55,862 662,400 (1):621 245 5 8 34.4 156!93 35.2 "55.00 26.15 28.85 Egegik Light and Power 31,757:82,568 2.60 121,731 48,592 422,860 (18);:704 2445 5 08 51.6 201 31 317 "50.00 26.23 23.77 Ekwok Electric 29,010 :48,250 1.66 29,562 12,940 361,300::254 10.3:905 38.4 185:61 9.0 12.45 25.00.|11.70 13.30 Elfin Cove Electric Utility 87,082.67,531 0.78 22,604 10,369 588,668:280 85 :703 29.5 213.=:56 55 6.78 42.00 10.41}31.59 False Pass Electric Association 213496 :479,445 2.25 :631,080 50,396;2,919,440 ;:1,328 258 :905 74 287:59 23.9 13.67 43.77 27.83 15.94 j Cold Bay Gé&K 'se :i :i ial Galena,Cityof 53,828 :97,855 1.82 103,653 35,843 668,670:i 618:166 :858 37.6 262 =:12.42 38.00 18.07 19.93 Golovin Power Utilities 132,031 194,277 1.47 535,307 241,087 1,679,400:i 650 i 29.8 :864 55.7 177 12.72 50.63 32.01 18.62 Gustavus Electric Company 214,777 325,090 1.54 355,675 128,399:2,607,000:i 510:13.2 :622 45.4 256:12.31 33.47 15.36 18.11 |Fort Yukon Gwitchyaa Zhee Utilities 33,240 76,062 2.29 38,499 24,275 ore (14:;656:250 :(4 482 152:on 51.00 26.34 24.66 Hughes Power&Light 20,199 30,922 1.53 32,073 22,657 216,311:i 839 25.8 :87.6 46.4 248 10.71 58.30 27.84 30.46 Igiugig Electric Company 27,259 43,400 1.59 836,399 213,313 368,850 :2,428,870 ;940 26.2 :70.8 413 247;13.53 49.60 25.51 24.09 |Itiamna,Newnalen,Nondalton I-N-N Electric Cooperative 53,807 i 96,246 1.79 102,032 32,601 761,506::572 13.3:874 36.7 311i 14.15 38.50 14.78 23.72 |Osering tpnatchiag Electric Company 91,826 09;94,318 19)1.03 113,677 59,686:1,219,316 !2456580 287 5.1 +91.0 349 232;oe 20.00 5.81 14.19 King Cove,City of 123,028 174,875 142 269,303 56,826 1,788,180:'367 96 :89.0 37.4 333:14.53 32.00 10.19 21.81 Kipnuk Light Plant iow "be)55,682 "«:447,787 (16 1428:30.1 om 39.2 245:a 53.00 25.10 27.90 Kobuk Valley Electric Company 24,368 =;47,271 1.94 81,393 55,468 309,440::1,009:275 :824 79.4 269 12.70 60.00 35.40 24.60 Kokhanok Village Council 36,099 ;61,768 1.71 112,043 (15)41,909 438120:'590:183 :897 58.4 228;12.14 50.00 18.86 31.14 Koliganek Village Council 158,940 ;291,196 1.83 220,702 68,386:2,230,355 :444 11.41 72.1 38.3 258:14.03 30.00 11.19 |18.81 Kotlik Electric Services 1,468,952 |2,167,050 1.48 4,599,883 460,047;21,640,381:400,563 i 458:B83 :932 26.9 318 i 14.73 24.14 8.53 15.61 Kotzebue Electric Association 23,279 35,041 1.51 61,200 11,229 291,776:;208:10.7 :90.0 40.2 150;12.53 45.00 12.87 32.13 Koyukuk,Cityof 98,685 195,827 1.98 73,128 56,661 1,351,444:i 337)i 10.4 +838 49.6 257 i 13.69 44.00 9.92 34.08 Kwethluk,Inc. 59,338 i 77,366 1.30 95,629 74,581 693,440 i 838:18.9 60.3 352 11.69 50.00 19.67 30.33.Kwigilligok Kwig Power Company "gaid'tin "Fase tm [4.48 Be tae 138001""aa,980°wf 288735 -59 ay eb 379 a wget ga ggbag ge casas "TigranBayUilityCompany: "3644405 54668 °F 1.50 |98,277 39,381:435,822:ee "703 2°258:(B17 "428 241 "41.96|45.00 |2084!”15.16 |,"LevelockElectricCooperative = 9,115 28,257 3.10 55,809 11,696 80,749:5,869 650;32.8 78.0 527 :148;8.86 80.00 35.40;44.60 Lime Village Electric Company "28,562 32,682 1.14 "99,572 «=: 37092,«300202;"(<'i';7;+S!”* C<';7272S O!t*é<'<i<z Gt ON |CT 8;"10.51 ""eoto |3540!2470)"Manley UtityCompany ss” 116,962 164,561 141 64,131 50,749 ore (14)!;502 15.9 on (14)28.4 262 "34.00 15.55 |18.45 Manokotak Power Company 225,712;304,863 1.35 635,156 170,931 3,059,200:i 886 177 85.9 36.7 311 13.55 42.63 18.65 23.98 McGrath Light&Power 17,295 i 28,618 1.65 64,559 36,166 178,293:i 1,033 33.1 96.4 63.5 251 10.31 65.24 35.40 29.84 |Chuathbaluk Middle Kuskokwim Electric Cooperative 24,581 :40,568 1.65 64,559 42,974 256,689 i 1,264 33.1 94.6 53.4 289 10.44 66.70 35.40 31.30 |Crooked Creek 15,579 26,004 1.67 ..64,559 14,280:127,157 i 1,020 33.0 86.2 39.4 247 8.16 65.24 35.40 29.84 |Red Devil 23,993 39,554 1.65 64,559 -37,017 206,900 i 1,058 33.1 94.7 57.0 247 8.62 65.21 35.40 29.81 |Sleetmute 13,758 22,364 119,991 667 33.2 80.3 479 161 65.24 29.84 :Stony River35.40 95,206 187,107:889,030 NOTES **=Calculations cannot be made due to lack of data or other circumstances. Coiumns h,i,k,m,n,0:Values summed from fiscal year 2003 utility reports. Column k:Total non-fuel expenses consists of salaries,insurance,taxes,supplies,interest,and other verifiable reasonable costs. Column i:Total amount utility was reimbursed for PCE credit given to eligible customers during fiscal year 2003. ()=see endnotes on Page 9. otal =Middle Kuskokwim Electric Cooperati Column q:Calculated PCE rate based on 12 months of data. Column x:Residential rates as reported by the utility in fiscal year 2003. Column y:Rates based on RCA Letter Order effective June 2003.PCE rate reflects 92%funding level. Page 7B State of Alaska:Alaska Energy Authority Fiscal Year 2003 Power Cost Equalization Program by UtilityiCommunity [al {b][cl]td]fe][f=d+e]Is] Popu-Number PCE Eligible Total lation of Customers kWh kWh Utility/Community SoldResi-Community |Residential |}Community Total dential Facilities Facilities kWh Naknek Electric Association 1,159 709 43 2,041,078 :1,013,102 ;3,054,180 |17,656,692 Napakiak Ircinraq Power Company 353 103;5 373,486 :35,260 ;408,746 |567,488 Napaskiak Electric Utility 408 96:5 336,322 :22,221 |358,543 |723,843 Naterkag Light Plant Chefomak 419 73 6 310,551 :42,392 :352,943 |646,571 Nelson Lagoon Electric Cooperative 70 §2 i 6 139,368 :20,201 :159,569 |339,343 Nikolai Light&Power 120 41 |6 135,432 !94,080 «229,512|374,477 Nome Joint Utility System 3,493 1,578 5 66 5,221,160 |2,029,851 ;7,251,011 |25,846,679 North Slope Borough Anaktuvuk Pass 302 84 i 3 299,776 '178,348 ;478,124 |3,472,381 Atqasuk 231 59 ;3 234,291 |170,862 ;405,153 |3,223,758 Kaktovik 306 72:4 279,116 :193,875 ;472,991 |3,208,110 Nuiqsut 443 96 :5 396,937 :219,146 |616,083 |4,273,741 Point Hope 709 164 :4 693,744 ;193,787 ;887,531 |5,716,887 Point Lay 256 5B:3 234,372 :183,643 :418,015 |2,574,242Wainwright543120:5 442,732 :280,336 :723,068 |5,177,023 :=So W poe O00 S8e re re 131,630 |136,201 !267,831 |658,124 Nushagak Electric Cooperative Dillingham 2,749 955:45 3,962,815 «884,712 :4,847,527 (16,475,618 'iOuzinkie,City of 189 83:5 306,373 ;82,230 :388,603 |628,288 Pedro Bay Village Council 46 27 :4 59,835 :39,271 |99,106 173,362 Perryville,Cityof 111 37!1 109,588 :0:109,588 |333,862 Pilot Point Electrical Pilot Point 76 42:9 112,181 :52,341 :164,522!365,188 Platinum,City of 43 26 :4 29,010 ;5,226 :34,236 |121,941 Port Heiden,City of 108 4:6 49,487 ;27,842 :77,329 |701,639 Puvurnag Power Company Kongiganak 359 89 4 354,177 ;9,949 :364,126 |837,474 Ruby,City of 195 88 :12 202,337 :140,054 :342,391 |570,372 Sand Point Electric Company 919 304 |22 1,035,336 :549,887 :1,585,223 |3,363,327 St.George Municipal Electric Utility 0) ::: St.Paul Municipal Electrical Utility 533 154 |31 724,165 :447,160 :1,171,325 |3,248,237 Takotna Community Association Utilities 49 20 :6 64,692 i 39,494 :104,186 211,169 'Tanalian Electric Cooperative Port Alsworth 110 57 0 158,584 ;0:158,584 557,821 Tanana Power Company Tanana 278 118 11 295,444 :117,998 :413,442 |1,169,122 Tatitlek Electric Utility i)i : Teller Power Company 281 67 :5 206,319 :39,630 :245,949;721,731 Tenakee Springs,City of 98 100 :10 202,330 ;35,694 :238,024 |407,537 Tlingit Haida Regional Electric Authorit |Angoon 542 189 8 651,043 ;236,212 :887,255 |1,755,719 Chilkat Valley 226 172 :1 473,811 ;1,112 |474,923 |983,275 Hoonah 868 348 :21 1,415,905 :631,421 :2,047,326 |4,187,191 Kake 700 274 11 1,011,519 ;119,608 :1,131,127 |3,900,325 Kiukwan 111 49 6 174,181 28,214 ;202,395 |331,592FFotal-Tlingit Haida Regional Electric Authorit 032.y726,459 |016,567 7°4,743,026.[17,156,102'Tuluksak Traditional Power Utility 454:i 231,959 :47,616 «279,575 |411,272 Tuntutuliak Community Service Assoc.377 i 83 5 i 293,342 :33,243 :326,585 715,414 NOTES:'***=Calculations cannot be made due to lack of data or other circumstances.()=see endnotes on Page 9. Columns a-c:Values extracted from June 2003 utility reports. Columns d,e,g:Values summed from fiscal year 2003 utility reports. *Totals reflect all data reported by utility for fiscal year 2003.id .Page 8A BSSBBd©BIweaohaanh:©haFiscal Year 2003 Power Cost Equalization Program by Utilityi|Community {h]fl f=W/h]Ik]n [m][n][p=l(b+e)][q=I*100/f][r=gi(m+n+o)][s=f/g][t-d/b/12}[u=e/a/12]-[v=k*100/g] [w=m/h]ie ly}[z=x-y] Total Fuel Used Average Total Required Total kWh Total kWh Total kWh Average Average Total Eligible Average monthly Non-fuel kWh Average PCE Effective (diesel)Price Non-fuel PCE Generated Generated Purchased Annual PCE kWh Sold kWh Eligible kWh per Expenses [Generated |Residential Rate |ResidentialofFuelExpensesPaymentsDieselNon-Diesel Required Payment |vs.Total versus perkWh Sold]=with Rate (based Rate Utility/Community gallons cost diesel and Non-PCE Payment |per Eligible |kWhGen-|Total Residential |Community Diesel per |on monthly |gr3q/2003 |6/30/2003dieselperCustomerkWherated.|kWh Sold |Customer Facility Gallon of |usage of 500 ' Purchased Fuel Used kWh)$(S/gal)($)$kWh kWh $cents %%kWhiperson|cents/kWh |kWhigai |cents/kWh |cents/kWh|centskWh 1,320,545 |1,210,224 0.92 2,150,364 213,688;19,728,034 284 7.0 89.5 173 240:73 422 14.94 22.61 8.49 14.12 |Naknek Electric Association awe ,eee iad 107,429 129,966 bead i :645,600 (18)1203:31.8 "*72.0 302:8 18.9 "56.95 31.92 25.03 .Napakiak Ircinraq Power Company 71,969 118,352 164:141,998 75,874 936,220 751:212 =:773 49.5 292:5 19.6 13.01 45.00 22.11 22.89 Napaskiak Electric Utility 69,012 102,109 1.48 95,713 39,947 829,483:470 113:779 54.6 328:8 14.8 12.02 34.00 12.58 21.44 |Chefomak Naterkag Light Plant 33,517 45,488 1.36 106,273 39,659 358,145 |684 249 ;948 47.0 223 24 31.3 10.69 42.00 27.49 14.51 Nelson Lagoon Electric Cooperative 37498:=57,171 1.52 60,194 46,950 408,800 |999 20.5 91.6 61.3 275:65 16.1 10.90 50.00 18.89 31.14 Nikolai Light &Power 1,788,827 |1,704,934 0.95 3,196,842 285,562;28,584,115;174 3.9 90.4 28.1 278:48 12.4 15.98 20.04 4.30 15.74 Nome Joint Utility System 299,517 497,198 1.66 283,971 24,359;3,958,800;280 54 87.7 13.8 237 49 82 13.22 15.00 2.70 12.30 |Anaktuvuk Pass North Slope Borough 263,247 408,033.|1.55 241,439 17,013;3,662,379 =:274 42 88.0 126 331:62 75 13.91 15.00 2.70 12.30 |Atqasuk 287,756 :395,665 1.38 :335,736 17,141;3,823,900 226 36 :839 147 323!53 10.5 13.29 15.00 2.70 12.30 |Kaktovik "386,866 |471,977 422 }290,964 21,037:5,257,318 :208 34 813 144 45 41 6.8 13.59 15.00 2.70 12.30 |Nuigsut|410430:«564,341 |1.38 |289,978 24,770:6,273,337 -:;147 28:91.41 155 353:23 5.1 15.28 15.00 2.70 12.30 |Point Hope 267,406 :367,683 1.38 312,719 19,779:3,441,458:324 47 74.8 16.2 337;60 12.4 12.87 15.00 2.70 12.30 ;Point Lay 449,981 618,724 1.38 306,056 25,609:5,782,212:205 89.5 -14.0 307 43 5.9 12.85 15.00 2.70 12.30 |Wainwright2,365,2 323,624 '2,060,863 49,708.32,199.4 Ce55,635.:76,552 1.38 48,244 24,122 687,931:95.7 ;::';lunam tqua Electric Company 1,223,492;1,112,685 0.91 2,487,545 340,975;18,178,700:341 70 :906 29.4 MBC 27 15.1 14.86 21.81 7.79 14.02 j Dillingham Nushagak Electric Cooperative 33,320 49,378 1.48 153,244 47,233 407,721 |380,160 |537 122 79.7 61.9 308;36 244 12.24 34.00 12.59 21.41 Ouzinkie,Cityof21,220 42,798 2.02 40,409 21,548 219,000:i 695 217:792 57.2 185 -:71 23.3 10.32 60.00 21.87 38.13 Pedro Bay Village Council 34,716 60,765 1.75 31,402 13,045 388,760:;343 11.9 :659 32.8 247 0 8.4 41.20 30.00 12.26 17.74 Perryville,City of 34,844 54,801 1.57 37,843 24,173 419,712:i 474 147 =87.0 45.1 223;57 10.4 12.05 35.00 15.86 19.14 |Pilot Point Pilot Point Electrical417,537 26613.=:41.52 40,059 8,250 ;167,955.|i 275 244 72.8 28.1 93:10 32.9 9.58 50.00 27.66 22.34 Platinum,Cityof 54,271 (18):83,005 (1%4.53 1,369 5,622 856,700 (19):115 73 see (19)11.0 98 21 0.2 we 30.00 8.08 21.92 Port Heiden,Cityof 71,306 99,281 1.39 107,901 43,364 831,520 G8):466 119 see (20)43.5 332-2 129 oe 40.00 11.92 28.08 |Kongiganak Puvurnaq Power Company 59,180 103,040 1.74 33,904 @1)44,563 |416,515 @ :405 13.0 or (2)60.0 172 60 awe oe 42.00 13.87 28.13 Ruby,Cityof 268,637 436,848 1.63 718,412 279,753;3,658,768:858 176 =:91.9 47.4 284;50 214 13.62 37.41 20.66 16.75 Sand Point Electric Company .:i i St.George Municipal Electric Utility 276,274 ;462,899 1.68 264,193 145,190: 3,900,249-:i 785 124 |833 36.1 392 70 8.1 14.12 38.00 14.41 23.59 St.Paul Municipal Electrical Utility 22,532 ;32,408 1.44 |36,769 16,158 :239,168:i 621 155 :883 49.3 270 i 67 174 10.61 48.10 7.41 30.69 Taketna Community Association Utilities "50,909;114,127 2.24 |64,269 -29643 611,397:520,187 :912 28.4 232;#20}O48 12.01 42.77 21.42 |24.35|Port Aisworth ""TanalianElectic Cooperative "98468 °121,791 "4.24 276,016 |98,700!1309561 °ee 765° * "'SS |S 209°:3 COC "23.6 "73.34|54.08 "24.60 29.48 |Tanana==S=S*=*é<" * * *™: *™”:”™”CannPowerCompany CS” i :Tatitlek Electric Utility "69,759 120,631 1.73 314,081 "81,225;901,309;7 °"4128 330.80 34.4 27.9;+12 «=$+ +435_42.92"56.39 "34.63 21.76;™a "Teller PowerCompany -s-™tS ""36,280 :55,815 1545 E51,553 |'"38,963'«4565000 2 :354 164°893.|584 469:#430. = SCOtaT "12.58 "32.00 "47.05"1495).""""Tenakee Springs,Cityof =” 155,221:159,412 1.03 sre (22)135,298:2,027,293.;i 687 152 :866 50.5 287 36 ses (22)13.06 32.75 18.21 14.54 |Angoon Tlingit Haida Regional Electric Authorit 3,773 @4):3,684 (24 0.98 o (2)72,457 :30,000 @4)::1,639,200 ©)419 153 -24 48.3 230;0 "**(22)aoe 34.50 18.21 16.29 |Chilkat Valley 319,745 368,793 1.15 oon (22)312,541;4,591,978 i 847 153.912 489 339;61 "ee (22)14.36 32.75 18.21 14.54 |Hoonah 307,162 338,077 1.10 se (22)172,646;4,254,155 i 606 153:917 29.0 308 14 'os (22)32.75 aoe (23)on 560 15.2 a (23)61.0 296 69,966.2,190,52 40,903,426 639,200 :SeTlingitHaidaRegionalElectricAuthont Column I: Columns h,i,k,m,n,0:Values summed from fiscal year 2003 utility reports. Column k:Total non-fuel expenses consists of salaries,insurance,taxes,supplies,interest,and other verifiable reasonable costs. Total amount utility was reimbursed for PCE credit given to eligible customers during fiscal year 2003. Column x:Residential rates as reported by the utility in fiscal year 2003. Colurnn y:Rates based on RCA Letter Order effective June 2003.PCE rate reflects 90%funding level. 48,815:69,279 1.42 33,727:474,760 872 68.0 Tuluksak Traditional Power Utility 72,768 96,297 i 1.32 191,019 (18)44,265 :840,664 503 13.6 85.1 45.6 295:7 "11.55 46.00 15.56 :30.44 Tuntutuliak Community Service Assoc. NOTES *°**=Calculations cannot be made due to lack of data or other circumstances.()=see endnotes on Page 9.Column q:Caiculated PCE rate based on 12 months of data. Page 8B State of Alaska:Alaska Energy Authority Fiscal Year 2003 Power Cost Equalization Program by Utilityi'Community fa][b]Ic}[d][e}[f=d+te][a] Popu-Number PCE Eligible TotallationofCustomerskWh°kWh Utility/Community SoldResi-Community |Residential |Community Total dential Facilities Facilities kWh Twin Hills Village Councit 69 2 i 5 85,323 :23,691 :109,014 141,384 Umnak Power Company Nikolsk!34 18 ;6 51,944 :16,282 :68,226 158,725 Unalakleet Valiey Electrical Cooperative 757 258 :13 880,780 :385,858 :1,266,638 |3,741,706 Unataska Electric Utility 4,051 456 :51 1,819,342 :3,106,492 ;4,925,834 127,309,793 Unqusrag Power Company Newtok 326 68 i 3 244,216 |21,396 ;265,612|367,427 Venetie Village Electric ()i i White Mountain Utilities White Mountain 210 68 i 8 219,590 ;143,907 i 363,497 693,376 'Yakutat Power Yakutat 808 282 :18 1,148,397 :440,688 i 1,589,085 |6,195,575 Endnotes: (1)Utility reported less than twelve (12)months of data and is not included in this report. (2)Six (6)months of data reported for this category. (3)All kWh's purchased were hydro generated. (4)See Tok. (5)See Craig. (6)Includes Dot Lake data. (7)Non-fuel expenses for AVEC are reported as a total for the utility. (8)See Nunapitchuk. (9)Includes Upper Kalskag data. (10)Includes Kasigluk data. (11)See St.Mary's. (12)Includes Pitka's Point data. (13)See Lower Kalskag. (14)No data reported for this category. (15)Eleven (11)months of data reported for this category. (16)All kWh's purchased were diesel generated. (17)Ten (10)months of data reported for this category. (18)Eight (8)months of data reported for this category. (19)Four (4)months of data reported for this category. (20)Data reported was questionable;kWh's sold >kWh's generated. (21)Nine (8)months of data reported for this category. (22)-Non-fuel expenses for THREA communities are reported as a total for the utility. (23)See Chilkat Valley. (24)One (1)month of data reported for this category. NOTES:***=Calculations cannot be made due to lack of data or other circumstances. Columns a-c:Values extracted from June 2003 utility reports. Columns d,e,g:Values summed from fiscal year 2003 utility reports. *Totals reflect all data reported by utility for fiscal year 2003. ()=see endnotes on Page 9. Page 9A 1MOMMHMDH&ar WVUVUUTTUUUaABUCTTCCIEEPHPHRHHVHHAHVHVV”VVUVVDVVVVVVVVAFiscal Year 2003 Power Cost Equalization Program by Utilityi(Community Th]0]D=i/h]Ik]i]{m]In}[o][p=l/(b+c)][q=I*100/f][r=eg/(m*n+o)][s=f/g][t=d/b/12] [u=e/al12]-[v=k*100/g)=[w=m/h]bd [y][z=x-y] Total Fuel Used Average Total Required Total kWh Total kWh Total kWh Average Average Total Eligible Average monthly Non-fuel kWh Average PCE Effective(diese!)Price Non-fuel PCE Generated Generated Purchased Annual PCE kWh Sold kWh Eligible kWh per Expenses |Generated |Residential Rate ResidentialofFuelExpensesPaymentsDieselNon-Diesel Required Payment [|vs.Total versus per kWh Sold with Rate (based Rate Utility/CommunitygallonscostdieselandNon-PCE Payment |per Eligible |kWhGen-{Total Residential |Community Diesel per |on monthly |6/39/2003 |6/30/2003dieselperCustomerkWherated.|kWhSold |Customer |Facility Gallon of |usage of 500PurchasedFuelUsedkWh)$(S/gal)($)$kWh kWh kWh $cents %%kWhiperson}cents/kWh |kWh/gal |cents/kWh |cents/kWh]cents/kWh22,579 42,885 1.90 13,508 24,097 143,810;:709 22.1 i 98.3 771 245:29 9.6 6.37 50.00 20.98 29.02 Twin Hills Village Council 18,873 36,696 1.94 55,645 14,739 179,604 (15);:670 21.6 oem (18)43.0 271!40 35.1 ove 40.00 17.97 22.03 |Nikolski Umnak Power Company 290,641 |331,344 1.14 652,719 120,261;3,914,920 :444 95 95.6 33.9 284:42 17.4 13.46 25.48 10.04 15.44 Unalakleet Valley Electrical Cooperative 2,046,771 :2,179,006 1.06 3,121,136 222,597:28,508,340 :'176,400 (18)439 45 95.2 18.0 332.64 11.4 13.93 21.42 4.84 16.58 Unalaska Electric Utility 38,141 56,147 147 139,333 68,948 379,448:'971 26.0 96.8 72.3 299:5 37.9 9.95 54.00 26.08 27.92 |Newtok Unqusrag Power Company i ::Venetie Village Electric 63,099 88,555 1.40 129,386 57,412 807,000::755 15.8 85.9 52.4 269:57 18.7 12.79 43.00 18.02 24.98 |White Mountain White Mountain Utilities 447,821 516,069 1.15 815,179 135,734 6,759,644 ''452 85 91.7 25.6 339:45 13.2 15.09 29.33 8.98 20.35 {Yakutat Yakutat Power NOTES '**=Calculations cannot be made due to lack of data or other circumstances.()=see endnotes on Page 9.Column q:Calculated PCE rate based on 12 months of data. Columns h,I,k,m,n,0:Values summed from fiscal year 2003 utility reports.Column x.Residential rates as reported by the utility in fiscal year 2003. Column k:Total non-fuel expenses consists of salaries,insurance,taxes,supplies,interest,and other verifiable reasonable costs.Column y:Rates based on RCA Letter Order effective June 2003.PCE rate reflects 92%funding level. Column it:Total amount utility was reimbursed for PCE credit given to eligible customers during fiscal year 2003. Page 9B "This page is intentionally left blank.”>?'@ "CECEECRSH”DWOVVHDDDVVUVEVUUUUUUTVUIVYPOWER COST EQUALIZATION PROGRAM HISTORICAL TRENDS | Fiscal Year 1989 -2003 ' Fiscal Year |Fiscal Year j Fiscal Year J Fiscal Year |Fiscal Year |Fiscal Year |Fiscal Year |Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year |Fiscal Year 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 PARTICIPATION . Participating Utilities 97 96 96 96 96 95 95 96 96 97 98 94 91 :90 89 Communities Served 166 165 160 164 166 173 175 180 191 193 194 188 189 187 185 Population Served 66,444 68,764 67,223 67,922 69,626 73,392 "75,776 75,488 77,406 78,179 79,377 77,625 79,708 79,555 79,229] CUSTOMERS ° Residential 19,338 19,991 19,816 20,059 20,857 21,732 22,361 23,316 23,820 24,423 25,226 24,753 25,123 25,426 25,713 Commercial 4,772 4,999 4,895 §,037 5,363 5,202 5,299 6,391 5,778 5,895 5,955 (1)(1)(1)(1) Community Facilities 1,080 1,133 1,195:1,276 1,285 1,366 1,361 1,452 1,510 1,609:1,627 1,675 1,732 1,740 1,776 Total Customers 25,190 26,123 25,906:26,372 27,505 28,300 29,021 31,159 31,108 31,927 32,808 26,428 26,855 27,166 27,489] FUNDING . Appropriations ($)$19,724,000:$16,814,000}$16,912,100!$15,029,700?$18,026,700:$17,920,000:$18,635,000:$19,385,600:$18,500,000:$18,700,000!$18,050,000:$15,700,000:$17,090,222!$15,700,000:$15,700,000 Disbursements ($)$17,104,631:$17,785,256:$19,607,435;$15,731,165?$17,341,042:$17,516,024;$18,493,448:$19,201,515:$17,906,275:$18,503,992:$17,949,524:$14,415,676:$17,076,203!$15,469,105:$15,448,480 Disbursements/Customer ($)$679 $681 $757 $596 $630 $619 $637 $616 $576 $580 $547 $545 $636 $569 $562 Funding Level (Annual Average %of full PCE rates)100%100%100%81.67%89.17%95%97.5%97.5%85%85%(2)100%(3)(4)(5) CONSUMPTION Total MWH Sold (MWH)270,265 293,086 286,508 309,552 313,535 340,102:359,569 363,783 374,455 383,549 403,663 391,454 390,802 401,804 403,157 PCE Eligible MWH Residential &Commercial (6)105,531 112,251 111,065 102,009 104,545:105,630 108,217 112,484 115,803:118,553 128,836 85,873 87,524 89,315 89,786] PCE Eligible KWH/Month/Cust,Resid &Comrcl 376 385 379 339 332:327 326 316 326 326 364 265 290 293 291 PCE Eligible MWH Community Facilities 16,200 18,004 19,703 22,185 23,331 24,344,26,447 27,420 28,308 29,954 33,016 30,216 33,062 34,342 33,829 Elig.KWH/Month/Capita,Community Facilities 21.2 23.0 25.0 27.0 28.0 28.0 29.0 30.0 31.0 32.0 35.0 32.35.0 36.0 36.01 Total PCE Eligible MWH (MWH)121,732:130,255 130,769 124,193 127,877 129,974 134,194 139,904 144,112 148,507 161,852:116,089 120,585 123,657 123,615 Eligible KWH/Month/Cust,Total Customers 415 428 427 392 388 383 385 374 386 388 411 293 325 379 327' COSTS Average Price of Fuel Oil ($/gallon)$0.874 $0.920 $1.050 $1.000 $0.990 $0.970:$1.010 $1.01 $1.11 $1.07:$0.98 $1.10 $1.37 $1.32 $1.330] Total Gallons of Fuel Oil Consumed (gallons)23,124,266:24,827,962:23,540,785:24,251,425:24,932,287:26,663,700;27,861,416 27,540,292:28,159,435:28,380,048 28,296,365 27,697,657:27,358,835 28,161,794:27,295,935 Total Cost of Fuel Oil ($)$21,154,979:$22,865,957:$24,631,042:$24,222,958:$25,246,066:$27,391,271:$27,616,949:$27,849,969:$31,174,864:$30,235,332:$27,701,300:$30,427,210!$37,547,880:$37,059,110:$36,400,050 Total Operating Costs ($)$32,058,897:$40,998,307:$38,058,236:$42,014,478:$43,974,601!$48,431,445:$47,200,227:$52,174,734:$51,068,505:$53,803,948!$54,539,372!$41,487,005:$55,436,898:$57,169,071:$59,003,506 EFFICIENCY RATIOS Operating Expenses per total KWH Sold ($/kwh)$0.1190 $0.1400 $0.1330 $0.1360 $0.1400 $0.1270 $0.1310:$0.1430 $0.1360 $0.1400 $0.1350 $0.1060:$0.1410 $0.1410 $0.1464| RATES Average PCA/PCE per Eligible KWH ($/kwh)$0.1410 $0.1395 $0.1500 $0.1220 $0.1350 $0.1350 $0.1380 '$0.1370 '$0.1240:$0.1250:$0.1450 $0.1240:$0.1416 $0.1251 $0.1250} (1)Commercial customers are ineligible to receive PCE credit,per July 2000 legislation. (2)PCE funding levels for FY99 were paid at the a reduced level of 85%for the first ten (10)months of the program year, and reduced to 73.5%for the last two (2)months of the program year. (3)PCE funding levels for FYO1 were paid at the 100%level for the first eleven (11)months,and reduced to 74%for the last month of the program year.an : (4)PCE funding levels for FY02 were paid at the reduced level of 92%for the first seven (7)months,&0%for the next four (4)months,and 66%for the last month of the program year. (5)PCE funding levels for FY03 were paid at the reduced level of 84%for the first eight (8)months,90%for the next three (3)months,and 92%for the last month of the program year. (6)PCE Eligible MWH Residential &Commercial is a combined total for years FY89 -FY$9.FYO0 -FY03 represents residential eiligible MWH's only. 10 Amendments to the Fiscal Year 2002 PCE Annual Statistical Report Alaska Power Company --Haines: Column "H”-Total Fuel Cost Published:$266,768. Amended:$81,069. 11 @@@aaeaeaeaaeaae@e@@a ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT Supplementary Material Seer ee ee rareAppendix 2:, RUS GRANT APPLICATION 29 Be WAAL WW AMARAAA AULA DAAEWEEEwE OTT UU LL augw twat Programs:Energy In most rural Alaska communities electricity is expensive,unreliable, and almost solely dependent on diesel-powered generation to produce power.These communities also face critical threats to health and environment from non-code compliant,bulk fuel storage facilities. Deteriorating and leaking fuel tanks,some that are 50-60 years old, contaminate the water supplies and pose serious fire hazards. With increasing construction of schools,homes,and infrastructure energy consumption in rural Alaska has been growing at a higher rate than the rest of Alaska.Recognizing the critical role energy plays in the quality of life and economic development of Alaska's communities, the Denali Commission has made energy its primary infrastructure theme since 1999.In partnership with the State of Alaska and other energy organizations in the state,great strides are being made to develop safe and reliable energy infrastructure in Alaska while minimizing efforts and expenses. -aReturnto Home'.Last Updated"FIRSTGOV |Search our web site:1 5 oyYourFirstCutttePeU.S.Go Denali Commission,510 L Street,Suite 410,Anchorage,AK 99501,Phone -(907)271-1414,Fax -(907)271-1415 http://www.denali.gov/Section.cfm?Section=Energy | 3/5/2004 MEMORANDUM OF AGREEMENT RE SUSTAINABILITY OF RURAL POWER SYSTEMS Between: The Denali Commission,the Alaska Energy Authority:.and the Regulatory Commission of Alaska. Purpose: This Memorandum of Agreement (MOA)outlines the mutual interests, understandings,agreements,and roles among parties in achieving sustainable and cost effective rural energy systems. Mutual Interests Understandings and Agreements: Reliable,reasonably priced electricity is necessary for survival of communities throughout Alaska.Parties to this MOA understand that some small communities may not be able to operate a cost effective and sustainable electrical utility,due to their small population or other factors.However,such communities wishing to demonstrate that capability will generally be given the opportunity.If an electric utility receiving financial assistance with Denali Commission funds fails to fulfill its obligations under operative project agreements,the parties to this MOA will move expeditiously,subject to state statutes and consistently with the operative agreements,in the interest of protecting the publicly-funded assets of the utility,to seek another electric utility with demonstrated capability to agree to operate the defaulting utility or its Commission-funded assets in a cost effective and sustainable manner.If a willing secondary or substitute operator can be located,the parties to this MOA will work cooperatively and expeditiously to obtain. Page 1 of 5 Thursday,August 28,2003 (2).max the regulatory approval that may be necessary for such operation.It is necessary to act expeditiously (generally within a year but not longer than two years)because of the rapid depreciation of improperly maintained power generation equipment. Parties to this MOA are committed to reducing the cost and increasing the reliability and sustainability of electrical power services in rural Alaska.The parties to this MOA recognize the importance of utilizing sustainability principles when investing in rural energy systems including: 1.Funding projects which minimize life-cycle costs; 2.Creating incentives which reward sustainability and climinating disincentives that work against sustainability; 3.Utilizing business plans as a tool to fully account for operation, maintenance,renewal and replacement costs while identifying sufficient revenue streams to cover these costs;and 4.Achieving a scale of operation sufficient for sustainability. Failure to operate power utilities in a sustainable manner will likely result in failure of the utility and because the state is no longer able to fund the replacement of failed equipment on a routine basis as has been done in the past,failure of the utility may very well result in the ultimate demise of the community.While the federal government currently has funding to assist with the replacement and upgrade of electric utility systems,continuation of that funding in the future is certainly not assured and is not anticipated to continuc for more than the next few ycars. Page 2 of 5 Thursday,August 28,2003 (2).max Roles: Denali Commission Provide funding (as long as funding is provided by Congress for that purpose)to construct rural energy systems in partmership with local,'tribal,slate,and lederal governments and to implement this MOA,promulgate and apply sustainability principles in cooperation with state and federal partners,and actively participate in the implementation of this agreement,including participation in negotiations with defaulting grantee utilities and potential secondary or Substitute operators,. Alaska Energy Authority Carry out the powers and duties assigned under AS 44.83,and,subject to appropriation and availability of funds from Congress or from other sources for these purposes,assist the Denali Commission in developing safe,reliable,and efficient energy systems,developing business plans that if followed should assure sustainability, monitoring progress in implementing business plans,negotiating with defaulting grantee utilities and potential secondary or substitute operators,and,in the event of a grantee's default on its obligations and when a willing secondary or substitute operator is available, expeditiously petitioning the Regulatory Commission of Alaska to modify a certificate of public convenience and necessity or transfer it to an operator which has demonstrated the capability to operate in a sustainable manner if the business plan or comparable sustainability principles are not followed. Page 3 of 5 Thursday,August 28,2003 (2).max Regulatory Commission of Alaska Carry out the powers and duties assigned under AS 42.05 to ensure adequate, affordable and reliable energy,and,when appropriate under AS 42.05 and consistent with due process,to effect the modification or wansfer of a certificate of public convenience and necessity. MOA Implementation: 1.This MOA becomes effective immediately for each participating agency as they sign and will remain in effect,subject to appropriation and availability of funding for performance of the obligations under this MOA,through April 30,2007 or before if all signers agree to revise Mou prior to that date.Any party to this MOA may withdraw from it by providing 30 days advance written notice of termination to the other parties. 2.Nothing in this MOA shall be construed to limit or modify the authority or legal responsibility of any participating agency. 3.This MOA is neither a fiscal nor a funds obligating document.Any proposed funding endeavor will be outlined in separate agreements that shall be made in writing by representatives of the parties and shal]be independently authorized by appropriate statutory authority. Page 4 of 5 Thursday,August 28,2003 (2).max %. yet kee Jeff Stater'| Federal Co-Chair Denali Commission Dv.Ww _ Ro#!Miller Executive Director Alaska Energy Authority [Nyheiflan Mark Johnson Chair Regulatory Commission of Alaska Page 5 of 5 Thursday,August 28,2003 (2).max ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT Supplementary Maternal a PF Ae ae.Appendix 3% RUS GRANT APPLICATION 30 March 4,2004 USDA Rural Village Services Dear Gentlemen: This is a letter of support for the Alaska Energy Authority on two grants being applied for on behalf of Middle Kuskokwim Electric Cooperative.As president of this cooperative and the owner of a business selling lodging,fuel,and groceries,I am well aware of the cost of producing power in this region of Alaska. MKEC has struggled for years to maintain electric service in the area,Much of our help has been from grants from the State of Alaska and the State's PCE program.However, our equipment has gotten old and lacks the capabilities of load sharing and other efficiencies that would help achieve a lower cost of producing power. The biggest cost savings to this utility would be the line intertie from Sleetmute to the power plant on the west side of the river and on down river to Red Devil.This intertie would replace two generator sites which include five generators.These two sites which would be replaced have had very poor KW/fuel gal.ratios,putting a real drain on the cooperative. This intertie would probably also result in good future use of this line because the line passes by many large private land holdings which will someday be subdivided and require power.. The new design also includes improved fuel storage giving us the opportunity to make our fuel purchase just once a year.This would give us much better buying power. Without the upgrade MKEC will be hard pressed to maintain this service.We operate in an area that has a very poor economy and will not be able to support a rate increase.Our rate now is one of the highest in the state. I hope you will give these grants serious consideration.This cooperative could certainly use the help in order to make this a more efficient electric utility. Thank you, Henry M.Hill ,President,Middle Kuskokwim Electric Cooperative Owner,Hill Enterprises P.O.BOX 88 Phone:907-447-3203 RED DEVIL,AK 99656 Fax:907-447-3203 Email:Rdpcinci@starband.net March 1,2004 :I)c MAR 05 2004 AIDEA/AKA. Jolene John Development Specialist AIDEA/AEA 813 West Northern Lights BLVD. Anchorage,Alaska 99503 Ref:Middle Kuskokwim RPSU Projects Dear:Jolene John: The Community of Red Devil ranks this project as its number1 priority.The intertie between Sleet- mute and Red Devil will eliminate two power generation location,Sleetmute B and Red Devil.The cur- rent system in place at Sleetmute and Red Devil is over twenty years old.Currently both Sleetmute and Red Devil power generation shed are located in the flood plain.Red Devil power shed has flooded as recently as May 2002 and has a bad history of flooding in the last twenty years. Since the 2002 flood in Red Devil,Red Devil People and Community Inc.has applied for and received state approval to relocate the power generation shed to a new location well above the 100 year flood plain mark these funds are part of a FEMA grant that the ADES/FEMA has approved,we are waiting for final approval.You may contact Mr.Scott Simmons at ADES to confirm the grant offer.Mr.Sim- mons phone number is 907-428-7000.This grant offer will be granted to the Middle Kuskokwim Electric.Coop,Inc.in the amount of $118,000,00 and should start construction sometime this sum- mer. Per gallon rates in the community for gas is currently $3.50 per gallon and diesel is also $3.50 per gallon.The local vendor is Mid Kusko Marine operated by Shirley Vanderpool private retailer,phone number is 907-447-3221 Sincerely, Richard Wilmarth,President Red Devil People and Community,Inc. Cc:Sleetmute Traditional Council Red Devil Traditional.Council Sleetmuteé Village Council 97JOGadegur[gSuneiedQssautsngepex8dqAyanopeaagezadooDIMI3a7qWIM,oYsNy]aPPIWCayLic|- KUSKOKWIMTE -e,PUBLIC US CEMETEI SITEbosqueere / EY PROROSED FUEL STORAGE PROPOSED MK. POWER PLANT - RIVER HATTENBURG DILLEY &LINNELL engineering Consultants «ENGINEERING «EARTH BCENCE «=PROIECT MANAGEMENT «PLANNING (07)277-2120werendsiein.com PROPOSED MKEC POWER PLANT RURAL.POWER SYSTEM UPGRADES ADDEA/AEA RURAL ENERGY GROUP SLEETMUTE,ALASKA OATES 91/03/04 DRAWN BY;yy SHEET:=AIGURE 4 SCALE 7”=50°CHECKED BY!az)JOB NO.93-998 mnoke'T9alorg23nWN32S Typical Powerhouse Layout _4 ”ws"s.aTter.s-3(FELDVERFY;HATTENBURG DILLEY &LINNELL Engineering Consutants *ENGINEERING *EARTH SCIENCE °PROJECT MANAGEMENT (907)277-2120 ¢PLANNING werw Wdalsske.com BULK FUEL UPGRADES POWER PLANT FLOOR PLAN AIDEA/AEA VARIOUS LOCATIONSDATE.01/16/04 |ORAWN BY:Kic |SHEET:FIGURE 1SCALE:1/8”=17-0"|CHECKED BY:LMH |4O8 No.03-028 Middle Kuskokwim Electric Cooperative Electric Utility Upgrade Business Operating Plan Page 11 of 26 Woo e)se}EpyAM ONINNVId + VASVIV"SLNALGIISs Ozz-222 (206) ty * ANSW3OVNVW LOarOud + suingateney tyg-'ouonuisico of"=7WAVIGIV |.(sta i] YOS LON ONIEBANIONS Berar LESS RousI530 Ta pare s}Ue;NsuoD Buye6eulbug"YO4SIQVYIdN WILSAS YIMOd Twyny SRS SHOISHSE THSNNIT 8 AaTHG Sarna MD ese|i iFiesls § 3 : 8 , g38- gS3 ; iG pra batoeNe HS a rea'is}& omz we i WAS Sef 483 X16 apt oe& 5&8 ty eS ° 3°ofza SEae (Fa -# Anyvi* aN heON'4KA s\n ihe be hah, VS One See POS ee ayeri.NEoeAare. Reao% GWAR stWSS eenmonaz : ATESNSSACU BT - gASEN CRE CERES + f wire Nels Me .>'*| , .¥c pres"is: areas'*4 idLs 7 Peay*watia,indy oeGee On g328z8 $ w * 8 LS)28u=aag3q byf& : er" liens, rt6 vy Prog ivy a wf we . :aaz uw §S : 53 ys #f& Ah 7 =@=2g8§ re iE= é w The a8 x 28 nN mimBES 'fedofaeoy nes g eeFe 3 Seah, 5 is: "a cs 7. ' ®Fe aHY, "ibatfab 5 yy25ze#ggg "rT &€&@a&&66f||i|i|QQ&ai}G|ro)tjw1oi < bap'102- 00 £¥0z0\Sbuimoup\po2\HOINSA! 21NuH2/5 C¥O-ZO\S90!\:H'wa uooe:6 - £00z 'Zz uop /\ é ozvezse(208) one VASVTV"ILNNLITISvol8 + INSW39VNYW LOaroud + ohnaee een ha an"9 * INOLLONULSNOO ZONSIOS HVA + TENT VWAWVACIV gstWoe +] OsLON ONRIEENONS * aNi ntozomcnet bef€}lalSe a er siueynsucd Buyeeuibug 'YO4 SFQVUIdN WILSAS YIMOd TWHuNY |gPdgtikes-SNOISASY TIANNA 8ABTUG sunenalii EOD eee alt € hd Ed 2 4 20 Giiraz3 PHOTOGRAPHY PROVIDED BY AEROMAP U.S. DATE OF PHOTOGRAPHY:MAY 29,2001 irah. PROPOSED FENCE &CLEARING LIMITS BORE HOLE LOCATION prosemy Mase ee ne coe. B-+ rare . fe a fore ort ora : watt hme AG v 8 a” ® | led ' FUTURE WASTE HEAT DISTRIBUTION PIPELINE NEW 3°68 FILL PIPELINE NEW 3°@ DISTRIBUTION PIPELINE Oest,©den WH - oe 4s Re ally Oy paler 2 + pte aahow * ™ Py ™ go he ." * Sidi coma it a + Bed i) oe "yk er oe fq, } $ . "y HE Ten teenyI, : Ls aaa : Semye pi a & " x. aS je ' 2 4 ; Se me . : , 2 Lamee r b f JF , ao 4 of afy%_ . ' Awe ¥ 4 EXISTING POWER LINE EXISTING TELEPHONE LINE fa Py ke "” Tid a Bs k LEGEND A 5e2'ZO2 GOFr0Z0\sOumO4p\PL2\4d2 ASGY 21NWIEe5 F¥O-ZO\SqO!\:H a woeeg - C002 'Zz uor - oa 4 4 : Pi 'new +ercemyrs Wisvly NOISY YIAY WIMYONSOY FICGIN suseuBuz Bupmsuo) Ss"EyeLeto yefoe We i Pz"SutXS ASVY settsWigs SUASRiELPS)v aemmnipoerarem bySER a L030 AQYINI WMHONSNA TIGTINVYEBIE 9 t § ? ¢.. 4'1 1 i i § s bSaizoe , &&3&ao'i 5&§zeéyiul&Myz 5S a> aaa =ee eicibe 28a Gl ¢zeeee¢n2 T maceeea 85&oTeT|I|ft| , i}i|}on . 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SCALE IN FEET \[ 5006s iy °i @lectricPouerSystemsConsultingEngineersSYSTEMS_/ Aoraeayeaa1S(b99) 901 x08)."fee ?5015(b99)7 ', .(93-5)acto oy>.</15A 1!«__-o/5056(a82)- .,(93-5)036(08)17-A,B,C |aNSJ"% a = &°§a iSWA>NEE"5021(b14)&Loiei .so4s -oS Se 5047 043 'S i 4 s..5043(a11 .é XY)'a jh GSe$048 'soe 20 5043(a11)\20 3 a 3e.s049 11 post ly j ty™a.s050 No \5045(a110)|4.8 -C 8---No 045(alta)== 5051 .-_-_-erasSSS' .,N PODS SSE ro5052Q' .SLEETMUTEXX014SSoNeurePLAN £4,015EXISTINGCIRCUITNEWCIRCUITas Oo- MIAIN WIMMOMSNY UaARy WMYOXSNY|| L _NEW EASEMENT ee NEW FENCE ON-__CO : , _ ST || L-|oO Lt ee|| | w [2% 85a) 3jf BYBs Cl]2 oeZis83l35 £238 Gyeis 22mo-2a | Seer)mlot L nint| /) i:| pe SMBASAR VASYTY 'NOIOGY BAY HIMYONSAY FICGW|obS| |, ee emirV/a seh|wll SUASLMTUDIWY :AN] WACIIV B8e]xf| fours * LIZPOUS ADMIN WIMMONSNA FIGOUIN eves,i! , les) SCALEINFEET A POLE P4 POLE PS VHSVTV NOISFS YIN WIMHONSOM SIGN a5' ™ ee gaatSFBgse| < tree|"tetLOFTON AOMING WIMMONSI Fico Perse!j{4 g hd § 9 4 § T i 1 T 1 .Cs) iniroml=z2 axS$ 3 e. > =f Y5AIG WIMMONSN» ot eB x7)>x a i|[8sxal4,dy tt |NySES [vayan)-Nqn 74.7 } * {2 ao s fRQ]|iQ NANAeee a ,"t; | Li) os NN _ Nyy = " be Z IoJ Li] a£ = Newer <[ =} FE bs Ls PR i $24.55 Lili «f 0 ms c ne a oD a a; eo [e)a. rye :y Reeeenees aerreae "e"<r ae Ah <r 00.00--e- = a4 ot Y : a © lw V? x 4 x GH re) a - oH ad =NZ we x ofaa)Liwed(o)ia=> «nmrouy g 4 nme 893)O 'dOLa boogcaetoso"aux voorBRIER I I l H ! ] } ' I I I I t I | POLE A3 ConsultingEngineersXY)" SYSTEMS7%PROPOSED KUSKOKWIM RIVER CROSSING AT SLEETMUTE (EAST SIDE PROFILE VIEW T BbBi9,feeTSayPOLE A3 \/ eStesAny2AskAbebatinagyAutietyAbasanrantriadDeavuganentandfypenNecibusyAIDEA:MIDDLEKUSKOKWIMRIVERREGION,ALASKAMIDDLEKUSKOKWIMENERGYPROJECT =--TOPOLEA3rT POLE Al LINE FROM REO =DEVIL TO SLEETMUTE £4.028 a 30 60 -comm weeg|p SCALE IN FEET ee TE TPO PNIS SS ifi PNEZ LAGE mS gery Fat unl ant Gt Gon an RoMPSDOGALT4)eS)AT RA -ff [;f er a iN AYmersOPVJOEKilSKOKWAFeYouASUNiA:NZ H John Deere Equipment Engine Power "Calculated Kwe primeModelhpkWrating100%Kwe 75%Kwe50%GPH@100%GPH@75%GPH@50%Kwe/Gal@100%Kwe/Gal@75%Kwe/Gal@50% 4045DF a i =4045TF150 #|ee ee ae 4.44 "3.41 2.48 14.44 (408 220=33,4.96 12.27404a110=36 8 4.24 2.97 12.72 2.56 -11.9pkf_4045TF250 121 -5 59:39 6.14 4.75 3.31 12.70 (12.32) 6068TF1D0 105101 -88 66 Ad 604 4.03 3.46 13.46 30.t «Szw 6068TF150 149 111 6s 46.7 88-CC DSS«i8«T 12.68 _12.3160681F250150121-97 73 49 4728 555 385 13.32 13.11 __1260 6068TF250 172 128 11 -«83 56.-6.46 654.434 i312.(i273 (1279 6081TF001 190 142 123 92 62 9.3 744.-*+5.11 13.23... -- -12.40 12.04 6081TF001 225 168 146 110 73 10.82 8.37 5.76 13.49 13.08 12.67 6081AF001 223 166 144 108 72 10.69 8.21 5.73 13.47 13.15 12.57 6081AF001 270 201 175 131 88 12.77 9.69 6.61 13.70 13.54 13.24 6081AF001 295 220 190 143 95 14.51 10.32 7.03 13.09 13.81 13.51. 6125AF001 341 254 221 166 111 14.82 11.46 8.06 14.91 14.46 13.71 6125AF001 366 273 237 178 119 16.06 12.55 8.8 14.76 14.16.13.47 6125AF001 402 300 261 196 131 17.35 13.63 10.01 15.04 14.36 13.04 (*)Calculated rating range is determined by a 0.8 power factor ALASKA ENERGY AUTHORITY SECTION 16200 RURAL POWER SYSTEM UPGRADE ENGINE GENERATOR UNITS MULTIPLE GENERATOR PURCHASE STANDARD CONFIGURATION OPTIONS Unit No.# Unit No.# Unit No.# Unit No.# Unit No.# Unit No.# Unit No.# Unit No.# Unit No.# Unit No.# Unit No.# 7K 402 hp,260 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 6125AF001.No equals. 366 hp,235 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 6125AF001.No equals. 341 hp,220 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 6125AFO001.No equals. 295 hp,190 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 6081AF001.No equals. 270 hp,175 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 6081AF001.No equals. 225 hp,145 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herem.John Deere 6081TFO01.No equals. 190 hp,120 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 6081TFO01.No equals. 172 hp,110 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 6068TF250.No equals. 150 hp,95 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 6068TF250.No equals. 135 hp,85 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 6068TF150.No equals. 121 hp,78 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 4045TF250.No equals. Unit No.# arene 110 hp,71 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 4045TF250.No equals. _16200-1 . " ALASKA ENERGY AUTHORITY SECTION 16200 RURAL POWER SYSTEM UPGRADE ENGINE GENERATOR UNITS MULTIPLE GENERATOR PURCHASE Unit No.#102 hp,66 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 4045TF250.No equals. Unit No.#99 hp,64 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 4045TF150.No equals. Unit No.#90 hp,58 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 4045TF150.No equals.. MARINE CO -- Unit No.#58 hp,37 kW,prime duty power,1800 RPM,277/480 volt,complete4skidmountedengine/generator unit,as specified herein.John Deere 3029TF150.No equals. Unit No.#225 hp,145 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit with marine configuration wet manifold,as specified herein.John Deere 6081AFM.No equals. Unit No.#150 hp,95 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit with marine configuration wet -__-_-____manifold,as specified herein.John Deere 6068TFM.No equals. Unit No.#99 hp,64 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit with marine configuration wet manifold,as specified herein.John Deere 4045TFM.No equals. AY 7 -:16200-2 \-s y ALASKA ENERGY AUTHORITY ) SECTION 16200 RURAL POWER SYSTEM UPGRADE ENGINE GENERATOR UNITS MULTIPLE GENERATOR PURCHASE PART 1 -GENERAL 1.1 1.2 1.3 1.4 Cc. SCOPE A.The Work included herein shall consist of fabricating,providing and factory testing a complete engine/generator package to be used in the communities of Kongiganak,Kwigillingok,Arctic Village,and Golovin,Alaska consisting of fifteen (15)skid mounted diesel generation units as specified herein. Units shall be delivered complete and ready for installation.The diesel/electric engine generators shall be arranged for automatic start,or manual start,from a remote location.Each unit shall be harmonically balanced. Provide all accessories as specified for all fifteen engine/generator units. QUALITY ASSURANCE A.All equipment shall be designed,fabricated,and assembled in accordance with recognized and acceptable engineering and shop practices.Individual parts shall be manufactured to standard sizes and gauges so that repair parts, furnished at any time,can be installed in the field.Like parts of duplicate units shall be interchangeable.Equipment shall not have been in service at any time prior to delivery,except as required by tests. Equipment and components furnished under these specifications shall be in accordance with the requirements of applicable UL 2200,NEC,IEEE,NEMA, and ANSI standards.; CONTRACTOR QUALIFICATIONS The entire system shall be designed coordinated,and supplied by a qualified contractor who is regularly engaged in the business of providing John Deere engine driven generator equipment.The contractor shall have been successfully providing similar work continuously for the past five years. MANUFACTURER'S WARRANTIES A.The Contractor shall warrant the work for a period of not less that one-year after energization of the equipment or 18 months after delivery to the F.O.B. point,whichever comes first.In the event of equipment or component failure during the warranty period,the Contractor shall replace such defective equipment or components and bear all associated costs.Costs shall include material,parts,and labor.The Contractor will be allowed to charge for travel and perdiem expenses related to warranty service at actual cost plus 10%.The Contractor shall pursue manufacturer's warranties to the extent necessary to obtain replacement equipment and provide proof of action taken upon request. Assist Owner as directed in determining cause of failure. The warranty shall state in clear terms exactly what warranty coverage is provided,by the seller,for each unit and attachments.This shall include the - terms,length of coverage,reporting responsibilities,how the warranty applies 16200-1 x ™, i ALASKA ENERGY AUTHORITY SECTION 16200 .RURAL POWER SYSTEM UPGRADE ENGINE GENERATOR UNITS MULTIPLE GENERATOR PURCHASE D. to accessory equipment,restrictions,locations of local facilities for handling warranty and other repairs (including contact names),and any other available information pertaining to warranty. Provide a nametag on each piece of equipment that clearly identifies the party responsible for the warranty.Nametag shall include the name,address,and phone number,and shop order or Contractor's serial number. Proposals that provide a warranty that does not meet these specifications shall be considered non-responsive. 15 SUBMITTALS A.Complete drawings,details,and specifications covering the equipment furnished shall be submitted for review.Within 14 days after Notice to Proceed,the Contractor shall furnish complete and accurate drawings of the equipment, including outline drawings and dimensional data which fully describe the height, width,and depth of the equipment;skid construction;schematics;wiring diagrams,engine coolant pump curve rated at 1800 RPM,and other relevant details. Submittal Preparation:Mark each submittal with a permanent label for identification.Provide the following information on the label for proper processing and recording of action taken. Project name. Date. Name and address of contractor. Name of manufacturer. Number and title of appropriate specification section.WVkwWnNrDefinition of Engineer's review actions: "Revise and Resubmit":Submittal is unacceptable or incomplete as submitted.Contractor shall revise and resubmit. "Accepted with Notes ":Engineer finds the submittal acceptable with the exceptions noted.Contractor shall comply with the exceptions noted.Resubmittal required. "Accepted”:Engineer finds the submittal acceptable with the exceptions noted.Resubmittal not required.Shon DrawinosandEneineerined 1.Engineering data covering all equipment and fabricated materials,which will become a permanent part of the Work under this contract,shall be submitted to the Engineer for review.This data shall include drawings and descriptive information in sufficient detail to show the kind,size, arrangement,and operation of component materials and devices;the external connections,anchorage,and supports required;performance -16200-2 ". ALASKA ENERGY AUTHORITY SECTION 16200 RURAL POWER SYSTEM UPGRADE ENGINE GENERATOR UNITS MULTIPLE GENERATOR PURCHASE characteristics;and dimensions needed for installation and correlation with other materials and equipment. 2.All submittals,regardless of origin,shall be stamped with the approval of the Contractor.Each submittal shall indicate the intended use of the item of Work.When catalog pages are submitted,applicable items shall be clearly identified.The current revision,issue number,and date shall be indicated on all drawings and other descriptive data. 3.Contractor's stamp of approval is a representation to the Engineer that the Contractor accepts full responsibility for determining and verifying all quantities,dimensions,field construction criteria,materials,catalog numbers,and similar data,and that he has reviewed or coordinated each submittal with:the requirements of the Work and the ContractDocuments.. 4.Each submittal shall include a statement prepared by the originator of the drawings and data certifying compliance with the Contract Documents except for deviations which are specifically identified. 5.All deviations from the Contract Documents shall be identified on each submittal and shall be tabulated in the Contractor's letter of transmittal. Such submittals shall,as pertinent to the deviation,indicate essential details of all changes proposed by the Contractor and all required wiring diagrams. 6.Contractor shall accept full responsibility for the completeness of each submission,and,in the case of a resubmission,shall verify that all exceptions previously noted by the Engineer have been taken into account.This shall apply in the event that more than one resubmission is required because of failure of the Contractor to account for exceptions previously noted. 7.Resubmittals shall be made within 14 days of the date of the letter returning the material to be modified or corrected,unless within 7 days the Contractor submits an acceptable request for an extension of the stipulated time period,listing the reasons the resubmittal cannot be completed within that time. 8.Any need for more than one resubmission,or any other delay in obtaining the Engineer's review of submittals,will not entitle Contractor to extension of the Contract unless the Contractor submits an acceptable request for an extension of the Contract Time,unless the delay of the Work is directly caused by a change in the Work authorized by a Change Order or by the failure of the Engineer to return any submittal within 7 days after it is received in the Engineer's office. 16200-3 ALASKA ENERGY AUTHORITY SECTION 16200 RURAL POWER SYSTEM UPGRADE ENGINE GENERATOR UNITS MULTIPLE GENERATOR PURCHASE 9. 10. 11. 12. 13. The Contractor's letter of resubmittal shall list the date of his original submittal letter,the date of the Engineer's letter returning the submittal, and the dates of submission and return of any previous resubmittals. The Engineer's review of drawings and data submitted by the Contractor will cover only general conformity to the drawings and specifications, external connections,and dimensions,which affect the layout. Engineer's review does not indicate a thorough review of all dimensions, quantities,and details of the material,equipment,and device or item shown.Engineer's review of submittals shall not relieve Contractor from responsibility for errors,omissions,or deviations,or responsibility for compliance with the Contract Documents. Three copies of each drawing and necessary data shall be submitted to the Engineer.The Engineer will not accept submittals from anyone but the Contractor.Submittals shall be consecutively numbered in direct sequence of submittal and without division by subcontracts or trades. Resubmittals shall bear the number of the first submittal followed by a letter (A,B,C,etc.)to indicate the sequence of the resub mittal. When the drawings and data are returned marked "Revise and Resubmit”,the corrections shall be made as noted thereon and as instructed by the Engineer and three corrected copies resubmitted. When corrected copies are resubmitted,the Contractor shall in writing direct specific attention to all revisions and shall list separately any revisions made other than those called for by the Engineer on previous submissions. E.Specific Submittal Reaui The Contractor shall submit newly prepared information,drawn to accurate scale on sheets not less than 8-1/2"X 11";except for actual pattern or template type drawings,the maximum sheet size shall not exceed 24"X 36".Indicate the name of the firm that prepared each shop drawing and provide appropriate project identification in the title block.Do not reproduce contract documents or copy standard printed information as the basis of shop drawings. In addition to paper copies,all drawings shall be submitted in AutoCAD release 2000 format on floppy disk or CD.As requested,drawing files shall be emailed to the Engineer. 1.6 OPERATIONANDMAINTENANCEMANIJALS_ A.Provide three (3)bound sets of operation and maintenance (O&M)manuals for equipment as listed.Identification symbols for all replaceable parts and assemblies shall be included.Provide manuals for the following equipment: 16200-4 ALASKA ENERGY AUTHORITY SECTION 16200 RURAL POWER SYSTEM UPGRADE ENGINE GENERATOR UNITS MULTIPLE GENERATOR PURCHASE . Engine. Generator. Engine governor. DC schematic showing complete electrical system including voltage regulator,fuel injector pump,and all other devices. 5.Instrument panel.5 6.All accessories.RYNB.Include the following information in the operation and maintenance manuals: 1.Equipment function,normal operating characteristics,and limiting conditions. 2.Assembly,installation,alignment,adjustment,and _checking instructions. 3.Operating instructions for start-up,routine and normal operation, regulation and control,shutdown,and emergency conditions. Lubrication and maintenance instructions. Guide to "troubleshooting." Parts list and predicted life of parts subject to wear. Outline,cross section,and assembly drawings;engineering data;engine coolant pump curve rated at 1800 RPM,wiring and connection diagrams,three-line diagrams,and front elevations.NIAMSC.The operation and maintenance manuals shall be in addition to any instructions or parts list packed with or attached to the equipment when delivered,or any information submitted for review. D.One preliminary copy of each manual,temporarily bound in heavy paper covers bearing suitable identification,shall be submitted to the Engineer prior to the date of shipment of the equipment. E,After review and approval by the Engineer,ship one bound copy of the final operation and maintenance (O&M)manuals with the equipment.Ship two bound copies of the final O&M manuals directly to the Engineer. F.Each copy of the final O&M manual shall be provided with original copies of the manufacturer's instruction books.Copies of manufacturer's instruction books shall not be inserted in any of the final O&M manuals. G.Bind materials in locking three ring "D”style binders.Binder capacities shall not exceed 3 inches,nor shall material included exceed the designed binder capacity.If material to be bound exceeds capacity rating,multiple volumes shall be furnished.Binder capacity shall not be less than approximately 1/2 inch greater than the thickness of the material within the binder.Permanently label with project information on the front cover and edge. H.Where reduction is not practical,larger drawings shall be folded separately and placed in envelopes,which are bound into the manuals.Each envelope shall bear suitable identification on the outside. 16200-5 ALASKA ENERGY AUTHORITY SECTION 16200 RURAL POWER SYSTEM UPGRADE ENGINE GENERATOR UNITS MULTIPLE GENERATOR PURCHASE I.All information in the O&M manuals shall be new and original publications. 1.7 EINAL PAYMENT A.Shipment of equipment will not be considered complete until all required manuals and data have been received as specified. Bz Final payment will not be made until all equipment is received at the F.O.B. point in satisfactory condition and all O&M Manuals and other required data are received in the form and quantity specified. 1.8 PAINTING. Each unit shall be painted John Deere industrial tan,including engine,skid,generator, and panels. PART 2 -PRODUCTS 2.1 ACCEPTABLE MANUFACTURERS Engine:|John Deere Generator/Alternator:Marathon/Lima. Other manufacturers are not acceptable. 2.2.UNITDESIGNATIONSANDSIZES A.KONGIGANAK GENERATOR EQUIPMENT Unit No.1 Unit No.2 Unit No.3 Unit No.4 366 hp,235 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 6125AF001.No equals. 295 hp,190 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 6081AF001.No equals. 295 hp,190 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 6081AF001.No equals. 225 hp,140 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 6081TF001.No equals. 16200-6 . ALASKA ENERGY AUTHORITY SECTION 16200 RURAL POWER SYSTEM UPGRADE ENGINE GENERATOR UNITS MULTIPLE GENERATOR PURCHASE B.KWIGILLINGOK GENERATOR EQUIPMENT Unit No.1 Unit No.2 Unit No.3 Unit No.4 295 hp,190 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 6081AFO001.No equals. 225 hp,150 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 6081AFM.No equals. 225 hp,150 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 6081AFM.No equals. 150 hp,90 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 6068TFM.No equals. C.ARCTIC VILLAGE GENERATOR EQUIPMENT Unit No.1 Unit No.2 Unit No.3 Unit No.4 190 bp,130 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 6081TFO01.No equals. 150 hp,100 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 6068TF250.No equals. 150 hp,100 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 6068TF250.No equals 99 hp,65 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 4045TF150.No equals. D.GOLOVIN GENERATOR EQUIPMENT Unit No.2 225 hp,150 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 6081AFM.No equals. 16200-7 ™ a ALASKA ENERGY AUTHORITY SECTION 16200 RURAL POWER SYSTEM UPGRADE ENGINE GENERATOR UNITS MULTIPLE GENERATOR PURCHASE 2.3 Unit No.3 172 hp,115 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 6068TF250.No equals. Unit No.4 172 hp,115 kW,prime duty power,1800 RPM,277/480 volt,complete skid mounted engine/generator unit,as specified herein.John Deere 6068TF250.No equals. ENGINE Provide a skid mounted,industrial rated,1800 RPM,direct injection diesel engine complete with generator/alternator and ready for service.Engine to be less alternator,fan,and radiator.The unit shall be of newest design and of recent manufacture.. The engine shall be a four-cycle,water-cooled,direct injection diesel engine of 4 or 6 cylinder in-line configuration with a gear driven coolant pump when offered by manufacturer. Horsepower:Certified engine power curves and fuel consumption at 25%, 50%,75%,and 100%loading,shall be submitted showing the manufacturer's approval of the engine rating for generator set prime power application.Special ratings or "continuous standby"ratings will not be acceptable. Isochronous Governor:The engine speed shall be 1800 RPM over the entire load range.The engine speed shall be governed by a Woodward governor system complete with a model EPG actuator and speed sensor or electronic fuel injection system (EFI)to maintain speed at precise isochronous control for rated frequency operation.The frequency at any constant load,including no load, shall remain within +/-0.5%isochronous control for rated frequency operation. If EFI engines are not available the EPG actuator shall be sized with sufficient torque as required for the engine.Fuel flow shall be controlled by the fuel injection stop lever to maintain 1800 RPM,with the throttle lever set in full fuel position.Rotary type fuel pumps shall be provided with a stop lever kit.A Woodward 8290-186 controller will be provided by others to control the actuator. Acceptable Manufacturer:Woodward Governor Co.No alternates accepted. Fuel:The engine shall be capable of satisfactory performance on No.1 Arctic Grade Fuel or No.2 Domestic Burner Oil. Fuel System:The engine shall have manufacturer's engine mounted fuel filters with replaceable elements.Supply and return lines for the engine will be connected to the front of generator skid,to allow easy connection to the fuel system.See attachment drawing "M1”for detailed configuration.Two each fuel 16200-8 ALASKA ENERGY AUTHORITY SECTION 16200 RURAL POWER SYSTEM UPGRADE ENGINE GENERATOR UNITS MULTIPLE GENERATOR PURCHASE flow sensors,one for supply and one for return.The sensors shall be Palladium/Simon part number SF001-04,5 to 30 GPH.Supply two (2)5ft. flexible fuel hoses,Aeroquip type FC300 with reusable fittings,to be used to connect to the fuel system.No push-on or barb type hose fittings will be allowed.sO G.Lubrication:The engine shall have a gear type lubricating oil pump for supplying oil under pressure to the main bearings,crankshaft bearings,pistons, piston pins,timing gears,camshaft bearings and valve rocker mechanism. Threaded spin-on type,full flow lubricating oil filters shall be provided.Oil drain line shall be connected to the front of the generator skid with on-off brass ball valve and end plug.Aeroquip type FC300,to be used to connect to the oil drain system.See attachment drawing "M1”for detailed configuration.No push-on or barb type hose will be allowed. H.Cylinder Liners:The engine shall be provided with removable wet-type cylinder liners,to facilitate a rebuild in the field.Engines with no or dry liners will not be accepted. I.Air Cleaners:The engine shall be provided with a dry-type,replaceable element air cleaner with air restriction indicator.Open disposable type air filters will not be accepted. J.Engine Crankcase Ventilation:The engine shall be provided with a crankcase ventilation system with replaceable filter element. Acceptable Manufacturer:Racor K.Starting:The engine shall be equipped with 12 VDC electric starting system of sufficient capacity to crank the engine at a speed which will allow full diesel starting. L.Safety Controls:The engine shall be equipped with automatic safety controls,which will shut down the engine in the event of the following. 1.High Water Jacket Temperature.Nason TM-1C-210R or equal. 2.Low Lubricating Oil Pressure.Nason MM-2C-20F or equal. 3.Low Oil Level.Murphy L150 4,Engine Overspeed The sensors for these safety controls shall be independent from engine gauges and all other devices and sensors.The sensors shall be wired to terminal blocks located inside the generator terminal enclosure. Note that the low water shut down protection will be installed on the external cooling system and is not part of the engine package. 2.4 EXHAUST SILENCER A.A Suitable silencer,of the critical grade type,middle in,end out with welded flanges shall be furnished with the engine,as manufactured by Nelson,or equal. 16200-9 ALASKA ENERGY AUTHORITY SECTION 16200 RURAL POWER SYSTEM UPGRADE ENGINE GENERATOR UNITS MULTIPLE GENERATOR PURCHASE 2.5 B.A flexible,continuous,18 inch stainless steel exhaust flex connector with the appropriate size ASA 125 lb.flange welded at one end and either a 20 degree flare tube end or the engine manufacturer's 90 degree exhaust elbow welded at the opposite end shall be furnished for each engine exhaust outlet,as manufactured by DME Inc.,or equal.Slotted cuff connections are notacceptable.oS Exhaust hardware shall be included,including insulated stainless wall thimble for standard 6 inch wall construction,two (2)each muffler brackets,one (1) each 60 inch 16 gauge exhaust tubing outlet extension,one (1)90 degree exhaust elbow 16 gauge,three (3)each bolt kits,four (4)each gaskets,and three (3)each companion flanges ASA 125 lb. ACCESSORIES. Provide the following accessories for each generating unit (unless otherwise indicated): A.oO7Caldyn spring vibration isolators complete with mounting hardware,minimum four (4).If required for the engine/generator weight,provide more spring isolators. Oil level indicator and oil level switch.FW Murphy L129. Magnetic pickup speed sensor. 12 VDC auxiliary starter solenoid,mounted near the starter,Cole Hersee Part No.24059,no equals. Protective guards for all moving parts. Rain caps,for each exhaust system,appropriately sized for each unit. Drip pan,14-gauge sheet metal,galvanized,sized for each unit.Drip pan volume shall be sized for the oil capacity of the engine with a minimum of one inch from the top of the oil to the top of drip pan side.Drip pan shall be large enough to cover all engine parts that can drip or leak oil. Provide a single D8,12-volt starting battery.Interstate or equal. Each battery shall be provided with a battery rack sized to hold the battery. The battery rack shall have minimum 6-inch clearance from the floor.Provide two 15 ft.long 2/0 AWG arctic flex battery cables with compression type terminal ends shipped loose.One battery cable will be for the positive lead and the other will be for the negative lead. Each battery shall be provided with a 12-volt battery charger for 120 volt AC input power;Charles Industries model AE1230 with 0-24 hour equalize timer, high and low DC voltage alarm,AC pilot light and AC power failure relay,no substitutes. One case of each type of filter provided (one for the order.) 16200-10 ALASKA ENERGY AUTHORITY SECTION 16200 RURAL POWER SYSTEM UPGRADE ENGINE GENERATOR UNITS MULTIPLE GENERATOR PURCHASE In addition to the above listed items provide one each low coolant level switch,FW Murphy IL 150 K1,shipped loose (only one for the entire order.) 2.6 COOLING SYSTEM A.Engine cooling shall be by remote radiators (provided by others)driven by theenginecoolantpump. 2.7 INSTRUMENT PANEL A.Engine Instrument Panel:Provide a stainless steel instrument panel for each diesel/electric generating unit to provide visual monitoring of the primaryenginefunctions.Mounted on the_rear_of the engine or on the exterior of thegeneratorconnectionboxwithvibrationisolators,The instrument panel shall contain the following gauges for proper engine surveillance and maintenance.«4 .. ; .. E . 3 reeks H _p en Eottowi rane . 1 Mechanical Type Water Temp Gauge 2.Mechanical Type Oil Pressure Gauge 3.DC Voltmeter 4 Engine Hour Aeroquip type FC300,to be used to connect all gauges as required.No push-on or barb type hose fittings will be allowed. The;shat .be-fietdinstatiectat ti 4 sne-Mountine-bract Ht be-buitt bythe instatter, 2.8 GENERATOR/ALTERNATOR A.The generator shall be sized for continuous output at a minimum of 112% of the engine prime power output at 1800 RPM,as measured on the generator output leads,for a maximum of 80degreesC temperature rise at 0.8 power factor.The actual continuous output shall be subject to verification through load testing prior to acceptance.Delivery voltage shall be 277/480. B.Generator shall be a single bearing,four pole,synchronous type with direct drive centrifugal blower for proper cooling and minimum noise.Generator shall be directly connected to the engine flywheel housing and driven through a flexible coupling to ensure permanent alignment.The generator shall be rated three phase,60 Hz,1800 RPM,brushless,12 lead reconnectable,and winding pitch of 2/3 design.Windings shall be random wound.and lashed at the end turns to provide superior mechanical strength. C.The rotating assembly shall be dynamically balanced to less than 2 mils -peak to peak -displacement,and shall be designed to have an over speed withstand of 125%of rated speed for 15 minutes when operating at stable rated operating temperature. 16200-11 ALASKA ENERGY AUTHORITY SECTION 16200 RURAL POWER SYSTEM UPGRADE ENGINE GENERATOR UNITS MULTIPLE GENERATOR PURCHASE D.Cast iron end brackets with bearing bores machined for an O-Ring to retard bearing outer race rotation and fabricated steel frames shall be used.Bearings shall be pre-lubricated,double shielded,ball type,single row conrad,C3 fit. Minimum B-10 bearing life shall be 100,000 hours for single bearing units. Generator wiring diagram shall be permanently Installed on the inside of the terminal enclosure cover. The insulation system of both the rotor and stator shall be of NEMA Class H materials or better and shall be synthetic and non-hygroscopic.The stator winding shall be given multiple dips and bakes of varnish,plus a final coating of epoxy for extra moisture and abrasion resistance.The rotor shall be layer wound with thermosetting 100%solids epoxy between each layer,plus a final coating of epoxy for moisture and abrasion resistance. Generator Set Performance:The voltage regulation shall be 0.25%from no load to full load and 5%frequency variation.Regulator drift shall be less than 0.5%with 72°F (40°C)ambient temperature change. The waveform harmonic distortion shall not exceed 5%total RMS measured line to line at full rated load. The TIF factor shall not exceed 50. The generator shall be equipped with a 300/250 Hz permanent magnet generator (PMG)excitation system.Both the PMG and the rotating brushless exciter shall be mounted outboard of the bearing.The system shall supply a minimum short circuit support current of 300%of the rating for 10 seconds.The rotating exciter shall use a three-phase full wave rectifier assembly with hermetically sealed silicon diodes protected against abnormal transient conditions by a multi- plate selenium surge protector.The diodes shall be designed for safety factors of 5 times voltage and 3 times current. Voltage Regulator:The voltage regulator shall control the output of the brushless AC generator by regulating the current into the exciter field.Regulator shall include electromagnetic interference (EMI)filtering,and under frequency roll-off protection.Include cross current transformer for paralleling operation.It shall be mounted inside engine-generator control can and shall be a Marathon DVR2000E. Nameplate:On the side of the generator housing,provide a nameplate that provides the following information.The nameplate shall be located in a clearly visible location and shall not be obscured by the terminal enclosure or located such that the nameplate is behind any part of the generator or housing. 1 Rated kW as specified. 2.Full load amps. 3.Rated voltage,phase,and power factor. 4 Rated voltage and current of the field exciter. 16200-12 . ALASKA ENERGY AUTHORITY SECTION 16200 RURAL POWER SYSTEM UPGRADE ENGINE GENERATOR UNITS MULTIPLE GENERATOR PURCHASE K.xAll control wiring and wiring for safety or indication devices shall be terminated on terminal blocks within the generator terminal compartment and clearly identified for interface with remote switchgear.A maintenance loop of control wiring 24 inches long shall be secured in the generator terminal compartment.The loop shall allow'the generator to be slid back,for maintenance on the engine,without disconnecting any control wiring. The generator neutral connection shall not be connected to the mounting skid or the generator frame.The neutral shall be isolated for grounding at the paralleling switchgear. Generators for the all units shall be of the same manufacture. The generator shall be self-ventilated and have a one-piece,cast aluminum alloy,unidirectional internal fan for high volume,low noise air delivery. Airflow shall be from opposite drive end through generator to drive end.The exciter shall be in the airflow. Each generator shall be provided with an oversized terminal compartment.The terminal compartment shall be provided with a load connection block to allow easy termination of the load conductors. 2.9 MOUNTING SKID_ B. The engine and generator shall be equipped with a suitable full length structural steel base frame for mounting the engine generator units.The skid shall be constructed from structural steel channel with ends beveled and plated for short term skidding and rolling of unit.Provisions shall be provide so that the generator can slide back a minimum of 12”to access the rear main seal on the engine without removing the generator end off of the skid or requiring the use of blocking to support it.Provisions shall be made in the skid for the mounting of vibration isolators to distribute the weight equally.Wedge washers shall be welded in place on the skid to provide a flat surface for the vibration isolator lock nuts.No formed or stamped steel base frame designs will be accepted. See attachment "B”for skid design layout. Provide a grounding connector capable of accepting up to 3/0 copper cable. 2.10 WIRING INTERFACE WITH REMOTE SWITCHGEAR A.All control wiring and wiring for safety or indication devices shall be terminated on terminal blocks within the generator terminal compartment and clearly identified for interface with remote switchgear.Terminal blocks shall be 600 volt,20 amp rated.Terminal block layout and labeling shall be as indicated on the attached drawing E-1 included at the end of these specifications. The intent of these specifications is for the engine starting and governing systems to be 12 VDC,including the fuel valve solenoid.All remote indication,such as low oil level,high engine water temperature,etc.,shall be 16200-13 . a ALASKA ENERGY AUTHORITY SECTION 16200 RURAL POWER SYSTEM UPGRADE ENGINE GENERATOR UNITS MULTIPLE GENERATOR PURCHASE powered from a 24 VDC source from the switchgear.The switches used for the remote indication shall be rated for operation at 24 VDC. The DC power supply for the engine fuel flow sensors shall be provided from the 12 VDC at the engine.The DC power supply for the switchgear shall be provided from the engine starting batteries.Terminals shall be provided on the terminal block as indicated on drawing E-1 for supplying 12 VDC to the switchgear.Inside the switchgear,provided by others,will be a 12-24 VDC converter for supplying 24 VDC to the engine remote indication. PART 3 -EXECUTION EACTORY TESTS3.1 3.2 A.The Contractor shall perform factory tests and inspection on each diesel engine, generator,and each component of the system prior to shipment.Provide certified copies of all manufacturers'test data and results.Supply sufficient notice to the Engineer prior to performing tests.Engineer or his representative reserves the right to witness all tests.Test procedures shall conform to ASME, IEEE,and ANSI standards,and NEMA standard practices section on testing,as appropriate and applicable.The manufacturer performing the tests shall provide equipment necessary for testing,and all measuring and indicating devices shall be certified correct or correction data furnished for the device.Tests shall indicate satisfactory operation and attainment of guarantees and specified performance.Contractor shall not ship equipment without approval by the engineer of the shop test reports. Engine Tests:Perform customary commercial factory tests on each engine, including,but not limited to,the following: 1.Perform hydrostatic test on water jackets to assure that water seals and water jackets are watertight.Test report shall indicate pressure at which test was made and the results. 2.Place engine in continuous operation without stoppage for a period of not less than eight hours.Operate not less than one hour at each load point (1/2,3/4,and full load)and 1 hour at 110 percent of rated load at 0.80 power factor.If stoppage becomes necessary during this period, repeat the 8-hour run.Also record the following data at the start,at 15- minute intervals,and at the end of each load run:Fuel consumption (correct fuel consumption results to guaranteed conditions);exhaust temperatures;and jacket water temperatures,lube oil temperatures and pressures,and crankcase vacuum. SHIPPING A.After testing,and immediately prior to shutdown for shipping perform the following items: 16200-14 ".™. i ALASKA ENERGY AUTHORITY SECTION 16200 RURAL POWER SYSTEM UPGRADE ENGINE GENERATOR UNITS MULTIPLE GENERATOR PURCHASE 1.Operate the engine three to five minutes with oil,which has 3%to 4% VCI (volatile corrosion inhibitor)oil per engine crankcase volume.The oil does not have to be removed from the engine. Remove any dirt from the air cleaner;check all seals and gaskets.Put lubricant on all points given in the lubrication chart of the engine operation guide. Turn the engine at cranking speed with governor control in full off position and use a sprayer to add a mixture of 50%VCI oil and 50%30 weight oil into the air intake or turbocharger inlet. Use a sprayer to add a mixture of 50%VCI oil and 50%30 weight engine oil into the exhaust ports. Clean the outside of the engine and inspect and ensure that the engine and generator are covered by good quality paint.Correct any deficiencies. Spray a thin amount of 50%VCI oil and 50%30 weight engine oil on the flywheel,ring gear teeth,and starter pinion.Install the covers to keep the vapors in. Put a heavy layer of multipurpose grease on all outside parts that move, i.e.threaded rod,ball joints,linkage,etc. Flush the cooling system with 50/50 ethylene glycol mix.Install covers over the connections. Install a positive mechanical seal consisting of a fitting plate and gasket on exhaust opening.Then install all covers and/or tape on openings,air intake,exhaust openings,flywheel housing,etc.Ensure all coves are air tight and weatherproof.Use waterproof,weather resistant type tape. Do not install tape in such a manner as will damage paint when the tape is removed.Install a mechanical protective device over any protruding items,which may be vulnerable to breakage during transportation. B.After preparing the equipment for shipping,package each engine/generator separately as follows: 1.Put a waterproof cover over the entire engine/generator set.Make the cover tight,but loose enough to let air circulate around the unit to prevent damage to exposed metal parts from condensation. All other included components (spare parts,loose items,etc.)shall be packaged individually in waterproof wrapping.Each individual component package shall then be packed in a box or crate,and each box/crate wrapped in waterproof wrapping to prevent corrosion to the components during extended periods of outside storage.All boxes or 16200-15 ; a ALASKA ENERGY AUTHORITY SECTION 16200 RURAL POWER SYSTEM UPGRADE ENGINE GENERATOR UNITS MULTIPLE GENERATOR PURCHASE crates shall be palletized onto the minimum number of pallets,as required for the quantity and size of the boxes/crates. 3.Each component package shall be sequentially numbered and marked for ease of identification.Each box/crate shall also be marked with a unique identifying number.Each pallet shall be provided with a packing slip identifying the number of each box/crate on the pallet,in addition to a listing of each component package within each box/crate.Each pallet shall be marked (with two inch high letters/numbers),on all four sides and the top,with the purchase order number. 4.Two copies of the packing slip identifying the quantity of pallets,the crates/boxes on each pallet,and the listing of component packages within each box/crate shall be provided to the engineer. END OF SPECIFICATION -16200-16 ™ " ALASKA ENERGY AUTHORITY SECTION 16200 RURAL POWER SYSTEM UPGRADE ENGINE GENERATOR UNITS MULTIPLE GENERATOR PURCHASE ATTACHMENT "E1”- -16200-17 -SPARE 6-3 (+)a BK "|TO ENGINE BATTERIES (410 AWG)- MP JUMPER G-4 ie ERG-5 TO FUEL VALVE SOLENOID (12 VOCGosJJUMPER1D(12 voc)\ G-6 2 TO STARTER RELAY (12 VOC) 6-7 Ly TO LOW OIL LEVEL SWITCH (24 VDC)#14G-8 |=--To Low oll PRESSURE SWITCH (24 VOC)AWG G-9 ruR 'TO HIGH WATER TEMPERATURE SWITCH (24 VDC)G-10 a TO ENGINE OVERSPEEO SWITCH (24 VDC))G--11-----._T0._24 VDC COMMON FOR ALARMSBL BKaeBL-WH TO GOVERNOR ACTUATOR (12 AWG) G-14 TO MAGNETIC PICKUP G-15 (#16 AWG SHIELDED/TWISTED PAIR) G-16 Lt G-17 }-+--_}(+)-Soe LY=BKra (-)10 FUEL SUPPLY FLOW SENSOR (#14 AWG) G-19 W-W4 rye,SUPPLY FLOW SENSOR SIGNAL (#14 AWG) Lt ¢-29 -O=R-|(+).a7 LO=BKfont}(-)TO FUEL RETURN FLOW SENSOR (#14 AWG)G-22 PO=WH.FUEL RETURN FLOW SENSOR SIGNAL (#14 AWG) G-23 =SPARES G-26 su LEKWH7na }10 VOLTAGE REGULATOR ADJUSTMENT (#12 AWG)6D NOTES: 1)PROVIDE TWO SEPARATE TERMINAL STRIPS EXCLUSIVELY FOR INTERCONNECTION WITH SWITCHGEAR:ONE FOR CONTROL &ALARM FUNCTICN &ONE FOR VOLTAGE REGULATOR SENSING AS SHOWN. 2)PROVIDE IDENTICAL TERMINAL STRIPS IN EACH GENERATOR CONTROL SECTION OF THE GENERATOR. 3)LAY OUT AND LABEL TERMINAL BLOCKS AS SHOWN.DURINGREQUIREDFORCOORDINATIONWITHSWITCHGEARSUPPLIER.CONTRACTOR SHALL REVISE THE FINAL DRAWINGS AS DIRECTED WITHOUT ADDITIONAL COST OR CHANGE ORDER. LAY OUT &LABEL TERMINALS EXACTLY AS SHOWN. SHOP DRAWING REVIEW ENGINEER MAY REVISE LAYOUT AS TYPICAL ENGINE LAYOUT Drawn Br:scat:NO SCALE Stote ofAlaskaPROVECT:*Deporiment of C.Devetop DESIGNED BY:oat:10/21/03 *,x k AIDEA/AEAGENERATORCONTROL/ALARM FRE Wat SHeeT oF AID Sol Eley Soe PEALASKAmmTERMINALSTRIPLAYOUTra)F 4 1 we Achoroge,tone wobas ©SRENENOY AE ITB No.REG-04-085 ALASKA ENERGY AUTHORITY SECTION 16200 RURAL POWER SYSTEM UPGRADE ENGINE GENERATOR UNITS MULTIPLE GENERATOR PURCHASE ATTACHMENT "M1” _16200-18 |ROUND CORNERS ON PLATE f O i OoRegAoA ttt }*-aicn DieseL FUEL SUPPLY,DIESEL FUEL RETURN,&USED éSSS SSS SSF ae SE oleh OIL RETURN IN VERTICAL PLANE PLAN (TOP)VIEW -NO SCALE FUEL FLOW SENSOR,TYP(2)3/8°x6"SCH 40 NIPPLE,TYP(4) 1/2"x3/8"BELL REDUCER,TYP(4a,oe J fi /(4) }t TF}(oeset FUEL SUPPLY)"AEROQUIP HOSE PROVIDED ) |De) ! i ] t i}WITH ENGINE,TYP(3)!Rove fe ;=e _-Hoesen FUEL RETURN)|.l I I I ----3/8"STEEL PLATE is /SEAL WELD 1/2”FORGED STEEL PIPE COUPLING INTO CENERATOR SKID SKID FRONT BULKHEAD PLATE (USED OIL RETURN) ! l I I t | | \ lL I a)aELEVATION (SIDE)VIEW -NO SCALE INSTALL FRAME CAP ON TOP OF STRUT,NOTES:|11-UNISTRUT P2859-10 OR EQUALDIESEL_-1)ALL PIPE NIPPLES SCHEDULE 40 FUEL '@::BLACK ASTM A53 CARBON STEEL. SUPPLY pats ALL THREADED FITTINGS CLASS 3000 ASTM A105 FORGED STEEL 1-5/8"x12 GAUGE STRUT FITTINGS. 2)PRIOR TO LOAD TEST SHOPDIESEL- =SECURE PIPE NIPPLE TO STRUT WITH FABRICATE &INSTALL ENTIRE FUEL (Cy CUSHION CLAMP,UNISTRUT 011NO14 ASSEMBLY AS SHOWN. RETURN ad *OR EQUAL,REPLACE STANDARD NUT WITH JAM LOCK NUT,TYP(2)3)AFTER LOAD TEST REMOVE DIESELoO---FUEL SUPPLY &RETURN SENSOR ae . ASSEMBLY AS A UNIT FROM SKID SEAL WELD STRUT TO BASE PLATE &PACKAGE FOR SHIPMENT. 4)CAP &SECURE ENDS OF DIESEL N USED OIL RETURN )FUEL SUPPLY &RETURN HOSESNe&PLUG USED OIL RETURNATTACHPLATETOSKIDWITHCOUPLINGPRIORTOSHIPMENT.1/2”BOLTS &JAM LOCK NUTS -I! END VIEW -NO SCALE PROJECTMULTIPLE POWER SYSTEM UPGRADES gram ev:BCG |scat:NO_SCALE Stote of ko Deve!.GENERATOR PURCHASE cescnen er:BCG wre:10/22/03 |*#ooo °coniminy ora eaorneFILENAME 2 *Rurol Energy Group ALASKA:SHEET OF patFUEL&LUBE OIL PIPING TERMINATIONS -[ruerpipeconn [M1 A.ease ttre OES Even atinoniy 'e. . ALASKA ENERGY AUTHORITY SECTION 16200 RURAL POWER SYSTEM UPGRADE ENGINE GENERATOR UNITS MULTIPLE GENERATOR PURCHASE ATTACHMENT "M2” _16200-19 ™ HOLE FOR GENERATOR MOTOR MOUNT,FABRICATE FROM 1/2"MOUNTING BOLTS,TYP,SIZE PLATE,PROVIDE 1/2°x1”SLOTS FOR&LOCATION AS REQUIRED >|BOLTED CONNECTION TO CHANNEL,TYP(4) Th 8,8 °°A A 2'-5"I,i, A al eee L Levers AS REQUIRED FOR SPECIFIC GENERATOR SET PLAN (TOP)VIEW -3/4"=1'-0" a 9/16"HOLE FOR EYEBOLT,2 EACH 88 a SIDE (CHANNEL)PLUS 2 EACH END||(THROUGH BENT PLATE),8 TOTAL T af BENT 3/8"PLATEBO°\C8x18.75 CHANNEL od CONTINUOUS ACROSStL=FRONT OF SKIDCAPENDOFCHANNELWITH\BENT 3/8”PLATE oN 9/16"HOLE WITH WELDED IN PLACE3/8"x2-1/2"FLAT BAR WEDGE WASHER,SPACE EQUAL DISTANCE »a?"FROM CENTER OF GRAVITY,2 EACH SIDEELEVATION(SIDE)VIEW -3/4”=1' -0 LENGTH AS REQUIRED FOR GENERATOR BENT 3/8”PLATE, F TO SLIDE BACK 12”MIN 2'-5"WIDE a tsre\3/8"PLATE,t Ne 2'-0"WIDE >a\'SECTION A-A o SECTION B-B NOTES: 1)FABRICATE FROM ASTM A-36 STEEL.BEND PLATES &CUT ENDS OF CHANNELS AT 90°&45°AS SHOWN. 2)EXCEPT WHERE INDICATED AS BOLTED MAKE ALL CONNECTIONS WITH CONTINUOUS WELDS (FILLET OR PULL-PENETRATION GROOVE AS REQUIRED)IN ACCORDANCE WITH CURRENT AWS STANDARD CODE. 3)ROUND ALL CORNERS &GRIND WELDS SMOOTH AFTER FABRICATION.PAINT TO MATCH ENGINE-GENERATOR. PROXCTMULTIPLE POWER SYSTEM UPGRADES |oumer_8CG__|scat:NO SCALE nomic DevelopmenGENERATORPURCHASEpescneney:BCG |owe:10/22/03 |*»_*orROEAATA puesFILENAME.SHEET OF A.arsRurol caena is TEALASKASKIDDESIGNskio-oesicon |IMM2 2."* N. " ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT Supplementary Material Appendix, RUS GRANT APPLICATION 31 ALASKA ENERGY AUTHORITY (A Component Unit of the State of Alaska) Financial Statements and Schedules June 30,2003 and 2002 (With Independent Auditors'Report Thereon) ALASKA ENERGY AUTHORITY (A Component Unit of the State of Alaska) Table of Contents Management Discussion and Analysis Independent Auditors'Report Balance Sheets Statements of Revenues,Expenses,and Changes in Net Assets s, Statements of Cash Flows Notes to Basic Financial Statements Schedules 1 Schedule of Bradley Lake Hydroelectric Project Trust Account Activities 2 Schedule of Projects -Balance Sheet 3 Schedule of Projects -Revenues,Expenses,and Changes in Net Assets 24 25 26 ALASKA ENERGY AUTHORITY (A Component Unit of the State of Alaska) Management's Discussion and Analysis June 30,2003 and 2002 This discussion and analysis is intended to serve as an introduction to the June 30,2003 and 2002 financial statements of the Alaska Energy Authority (AEA or the Authority),a component unit of the State of Alaska. The Authority's operations are broken down into two major programs -the owned hydroelectric and intertie projects and the rural energy programs.Further information on AEA's programs can be found in note 1 to the financial statements. Financial Highlights AEA's assets exceeded its liabilities at June 30,2003 and 2002 by $423 million and $438 million,respectively. Of the total net assets at June 30,2003,$154 million was invested in capital assets net of related debt,$48 million was restricted and $221 million was unrestricted.Of the total net assets at June 30,2002,$160 million was invested in capital assets net of related debt,$52 million was restricted and $226 million was unrestricted. Financial Analysis Financial Position Total assets,total liabilities and total net assets at June 30,2003,2002 and 2001 follows (stated in thousands): June 30,2003 June 30,2002 June 30,2001 Current assets $9,607 15,274 21,760 Noncurrent and restricted assets 569,406 582,821 777,926 Total assets $$79,013 598,095 799,686 Current liabilities $22,521 24,007 22,460 Noncurrent liabilities 133,405 136,466 139,950 Total liabilities 155,926 160,473 162,410 Total net assets 423,087 437,622 637,276 Total liabilities and net assets $579,013 598,095 799,686 The decline in current assets at June 30,2003 compared to June 30,2002 results substantially from the decrease in grants receivable and operating revenue receivable.AEA has been billing its largest grant provider,the Denali Commission,more frequently,resulting in a lower amount receivable at June 30,2003.The decline in current assets between June 30,2002 and June 30,2001 resulted substantially from a decrease in operating revenue receivable relating to the Four Dam Pool Project (Project).On January 31,2002,AEA sold the Project to The Four Dam Pool Power Agency.One of the conditions of sale was that revenues from operation of the Project for the period July1 through December31,2001 did not accrue to AEA.Accordingly,there was no receivable related to the Four Dam Pool Project at June 30,2003,the receivable at June 30,2002 was for a one month period and the receivable at June 30,2001 was for a full year. 1 ;(Continued) ALASKA ENERGY AUTHORITY (A Component Unit of the State of Alaska) Management's Discussion and Analysis June 30,2003 and 2002 The decrease in noncurrent assets at June 30,2003 compared to the same date in 2002 resulted mainly from depreciation of the Alaska Intertie and Bradley Lake Hydroelectric Projects.The sale of the Four Dam Pool Project in 2002 affected noncurrent assets at June 30,2002 compared to 2001.The legislation authorizing the sale of the Four Dam Pool Project provided for forgiveness at closing of a noncurrent loan totaling $185 million to the Authority (AEA received $68 million from the sale of the Project).In addition to the sale of the Four Dam Pool Project,declines in noncurrent restricted cash and investments,depreciation and the write down of the Larsen Bay Hydroelectric Project (Larsen Bay)resulted in the net decline in total noncurrent assets of $195 million from June 30,2001 compared to June 30,2002. The decrease in current liabilities at June 30,2003 compared to June 30,2002 was caused by a decrease in the amount due to the State of Alaska (State),offset by an increase in accounts payable.During the year,accounting and invoice paying for the AEA rural energy programs were transferred off of the State's accounting system to AEA's.This transfer eliminated AEA's usage of State monies and the subsequent repayment.The increase in accounts payable results mostly from increased construction management activities relating to Denali Commission projects.The increase in total current liabilities from June 30,2001 to June 30,2002 was caused by a reduction in grants payable ($2.3 million),which was offset by an increase in the amount due to the State ($3.6 million). The decrease in noncurrent liabilities between June 30,2003 and 2002 and between June 30,2002 and 2001 was caused by the decrease in the long term portion of bonds payable at each year end.There were no new borrowings during 2002 or 2003.The full call or defeasance of all outstanding Larsen Bay bonds during the year ended June 30,2002 contributed to the decline during that year. The decrease in net assets from June 30,2002 to June 30,2003 results from the operating loss for the year ended - June 30,2003 offset by nonoperating investment income.The decrease in net assets from June 30,2001 to June 30,2002 results from the operating loss for the year ended June 30,2002 coupled with a nonoperating investment loss for the year. 2 (Continued) Operations ALASKA ENERGY AUTHORITY (A Component Unit of the State of Alaska) Management's Discussion and Analysis June 30,2003 and 2002 Components of the Authority's operating revenues,operating expenses,and nonoperating investment income (loss)for the years ended June 30,2003 through 2001 follows (stated in thousands): June 30,2003 June 30,2002 June 30,2001 Operating revenues:Federal grants $24,354 22,792 7,920 Revenue from operating plants 15,582 ™17,388 25,257 State of Alaska 5,190 13,151 22,461 Other 2,696 1,539 1,195 Total operating revenues .47,822 54,870 56,833 Operating expenses: . Loss on sale of Four Dam Pool Project _-177,871 - Grants and projects 31,087 24,832 9,707 Power cost equalization grants 15,565 15,652 16,955 Depreciation 10,373 15,782 21,233 Interest expense 9,004 9,275 9,538 Plant operating.3,257 5,347 5,440 General and administrative 1,757 2,209 1,971 Impairment loss -_-1,186 - Bad debt expense and provision for loan loss 329 190 466 Total operating expenses 71,372 252,344 65,310 Operating loss (23,550)(197,474)(8,477) Nonoperating -investment income (loss)9,015 (2,180)(1,051) Decrease in net assets RY (14,535)(199,654)(9,528) Operating revenues declined $7 million during the year ended June 30,2003 compared to the same period in 2002 and declined $2 million during the year ended June 30,2002 compared to 2001.In both years,the net declines resulted from decreases in revenue from operating plants and State of Alaska receipts,offset by an increase in federal grant revenues.As indicated earlier,the Four Dam Pool Project was sold on January 31,2002 and income from the Project did not accrue to AEA from July 1 to December 31,2001,which accounts for the decline in operating income -there was a full year of revenue in 2001,one month of revenue in 2002 and no revenue in 2003.The decline in revenues from the State of Alaska results from net changes in several State funding sources between each of the two year periods.The Authority received state appropriations of $20.2 million in 2001 and $1.2 million in 2002 from the Trans-Alaska Pipeline Liability Fund.There were no further (Continued) ALASKA ENERGY AUTHORITY (A Component Unit of the State of Alaska) Management's Discussion and Analysis June 30,2003 and 2002 appropriations from this source in 2003.During the year ended June 30,2002,AEA received a $5 million grant from the U.S.Department of Agriculture.There was no comparable grant in 2003 or 2001.In each of the past two years,increases in Denali Commission project funding significantly contributed to the increase in federal grant revenue. Operating expenses decreased $181 million during the year ended June 30,2003 compared to the same period in 2002 and increased $187 million in the year ended June 30,2002 compared to June 30,2001.The primary reason for the expense fluctuations during the two year comparison periods was the 2002 loss on the sale of the Four Dam Pool Project.The sale of the Four Dam Pool also resulted in the decline in depreciation and plant operating expenses over the past two years.Grant and project expenses increased in both of the past two years due to the increase in the number of active rural energy projects under construction in both of the year end periods,made possible by additional grant funding.The increase in grant and project expenses corresponded with the increase in federal grant revenues.Other changes in operating expenses between the years included the impairment loss recognized on Larsen Bay in 2002. The nonoperating investment income and loss fluctuated during the year end periods substantially due to market value gains in 2003 and losses in 2002 on the PCE Endowment Fund investments.The PCE Endowment Fund is a managed long term fund intended to generate the income to fund the PCE program.The Fund value fluctuates with market changes. 701 West Eighth Avenue Suite 600 Anchorage,AK 99501 Independent Auditors'Report The Board of Directors Alaska Energy Authority (a Component Unit of the State of Alaska): We have audited the accompanying balance sheets of the Alaska Energy Authority (a Component Unit of the State of Alaska)(Authority)as of June 30,2003 and 2002,and the related statements of revenues, expenses and changes in net assets,and cash flows for the years then ended.These financial statements are the responsibility of the Authority's management.Our responsibility is to express an opinion on these basic financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.An audit includes examining,on a test basis,evidence supporting the amounts and disclosures in the financial statements.An audit also includes assessing the accounting principles used and significant estimates made by management,as well as evaluating the overall financial statement presentation.We believe that our audits provide a reasonable basis for our opinion. In our opinion,the basic financial statements referred to above present fairly,in all material respects,the financial position of the Authority as of June 30,2003 and 2002,and the changes in its financial position and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards,we have also issued a report dated October 10,2003, on our consideration of the Authority's internal control over financial reporting and on our tests of its compliance with certain provisions of laws,regulations,contracts and grants.That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. The Management Discussion and Analysis is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America.We have applied certain limited procedures,which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information.However,we did not audit the information and express no opinion on it. Fa E]PIE}.LLP.KPMG LLP,a U.S.limited partnership,isberofKPMGIrional,a Swiss tion. Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The supplementary information included in schedules 1 to 3 is presented for the purpose of additional analysis and is not a required part of the basic financial statements.Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and,in our opinion,is fairly stated in all material respects in relation to the basic financial statements taken as a whole. KPMG LEP October 10,2003 ALASKA ENERGY AUTHORITY (A Component Unit of the State of Alaska) Balance Sheets June 30,2003 and 2002 (Stated in thousands) Assets Current assets: Grants receivable $ Loans receivable (note 7) Operating revenue receivable Accrued interest receivable 'Total current assets Noncurrent assets: Restricted cash and investments (note 3) Cash and investments designated for specific purposes (note 3) Loans receivable,net of allowance (note 7) Capital assets (note 4) Less accumulated depreciation Capital assets,net Total noncurrent assets Total assets $ Liabilities and Net Assets Current liabilities:| Due to State of Alaska $ Accounts payable Bonds payable -current portion (note 6) Accrued interest Total current liabilities Noncurrent liabilities: Bonds payable -noncurrent portion,net (note 6) Arbitrage interest payable (note 6) Other liabilities Total noncurrent liabilities Total liabilities Net assets: Invested in capital assets net of related debt Restricted for debt service Restricted by agreements with external parties Unrestricted net assets Total net assets Commitments and contingencies (notes 8 and 10) Total liabilities and net assets $ See accompanying notes to basic financial statements. 2003 2002 5,672 10,184 2,293 2,026 529 1,7131,113 1,351 9,607 15,274 21,913 21,620235,082 238,701 20,975 21,934 432,921 431,678(141,485)(131,112) 291,436 300,566 569,406 582,821 579,013 598,095 750 8,072 13,095 7,386 5,085 4,825 3,591 3,724 22,521 24,007 132,697 135,961 605 402 103 103 133,405 136,466 155,926 160,473 153,654 159,780 21,913 21,62026,034 30,335 221,486 225,887 423,087 437,622 579,013 598,095 ALASKA ENERGY AUTHORITY (A Component Unit of the State of Alaska) Statements of Revenues,Expenses,and Changes in Net Assets Years ended June 30,2003 and 2002 (Stated in thousands) Operating revenues: Federal grants Revenue from operating plants State of Alaska Revenue from other state agencies Interest on loans Other revenue Total operating revenues Operating expenses: Grants and projects Power cost equalization grants Depreciation Interest expense Plant operating General and administrative Bad debt expense and provision for loan loss Loss on sale of Four Dam Pool Project (note 5) Impairment loss (note 1) Total operating expenses Operating loss Nonoperating -investment income (loss) Decrease in net assets Net assets -beginning Net assets -ending See accompanying notes to basic financial statements. $ 2003 2002 24,354 22,792 15,582 17,388 5,190 13,151 1,675 573 945 751 16 215 47,822 54,870 31,087 24,832 15,565 15,652 10,373 15,7829,004 9,275 3,257 5,347 1,757 2,209 329 190 -177,871 -1,186 71,372 252,344 (23,550)(197,474) 9,015 (2,180) (14,535)(199,654) 437,622 637,276 423,087 437,622 ALASKA ENERGY AUTHORITY (A Component Unit of the State of Alaska) Statements of Cash Flows Years ended June 30,2003 and 2002 (Stated in thousands) >2003 2002 Cash flows from operating activities: Receipts from federal grants $28,419 15,723 Receipts from customers and users 16,491 27,458 Receipts from State of Alaska appropriations 5,055 14,021 Principal collected on loans 5,373 2,967 Receipts from other state agencies 1,351 440 Interest collected on loans 802 734 Other operating receipts _127 Loans originated (5,325)(3,095) Payments to suppliers :(12,390)(13,297) Payments to grantees (33,929)(36,532) Net cash provided by operating activities 5,847 8,546 Cash flows from noncapital and related financing activities: Funds received in trust for subreceipient grantees 470 -_ Unremitted interest earned on federal grant advances 13 - Net operating loans from (payments to)AIDEA -(60)928 Net operating loans from (payments to)State of Alaskz (5,625)4,118 Net cash (used)provided by noncapital and related financing activities (5,202)5,046 Cash flows from capital and related financing activities: Principal paid on bonds (4,825)(5,180) Interest paid on borrowings (7,316)(7,616) Purchase of capital assets (1,243)(144) Sale of capital assets,net -_-63,500 Net cash (used)provided by capital and related financing activities (13,384)50,560 Cash flows from investing activities: Purchase of investments (30,610)(112,948) Proceeds from sales and maturities of investments 36,857 26,090 Interest received from investments 8,831 8,521 Net cash provided (used)by investing activities 15,078 (78,337) Net increase (decrease)in cash and cash equivalents 2,339 (14,185) Cash and cash equivalents at beginning of year 34,090 48,275 Cash and cash equivalents at end of year (note 3)$36,429 34,090 Reconciliation of change in net assets to net cash provided by operating activities: Operating loss $(23,550)(197,474) Adjustments to reconcile deficiency of revenues over expenses to net cash provided by operating activities:Loss on sale of Four Dam Pool Project(note 5;-_177,871 Depreciation 10,373 15,782 Impairment loss (note 1)-_1,186 Bad debt expense and provision for loan loss 329 190 Bond interest expense 9,004 9,275 Changes in assets and liabilities: (Increase)decrease in due to State of Alaska (27)245 Decrease (increase)in grants receivable 751 (7,069) Decrease (increase)in loans receivable 362 (128) Decrease (increase)in interest receivable ; 42 (17) Decrease in operating revenue receivable 2,475 9,424 Increase (decrease)in accounts payable 6,088 (662) Decrease in other liabilities -_(77) Net cash provided by operating activities $5,847 8,546 e@ See accompanying notes to basic financial statements. (1) ALASKA ENERGY AUTHORITY (A Component Unit of the State of Alaska) Notes to Financial Statements June 30,2003 and 2002 Organization and Operations The Alaska Energy Authority (Authority or AEA)was created by the Alaska State Legislature in 1976. AEA is a public corporation and a component unit of the State of Alaska (State).AEA's mission is to promote,develop,and advance the general prosperity and economic welfare of Alaskans by providing a means to operate and maintain existing power projects that tap Alaska's natural resources to achieve the lowest reasonable consumer power costs. Throughout the 1980's,AEA worked to develop the State's energy resources as a key element indiversifyingAlaska's economy.A number of large-scale projects were constructed;four of those projects were sold in 2002.Today,AEA's two hydroelectric projects have an installed capacity in excess of 90 megawatts,and the Alaska Intertie's 170 miles of transmission line link Interior Alaska with the cheaper energy available in the Southcentral portion of the State. Pursuant to statute,on August 12,1993,the board of directors of the Alaska Industrial Development and Export Authority (AIDEA),a public corporation and a political subdivision of the State,became the board of directors of AEA.Concurrently,the Executive Director of AIDEA was also appointed as Executive Director of AEA.AIDEA provides personnel services for AEA.AIDEA and AEA continue to exist as separate legal entities.The corporate structure and operating assets of AEA were retained but the ability to construct and acquire energy projects was eliminated.The intent of the legislation was that ongoing operation of the operating assets be assumed by the electric utility companies that use or purchase power from the assets with oversight responsibility retained by AEA;this has occurred to the extent possible. There is no commingling of funds,assets or liabilities between AIDEA and AEA and there is no responsibility of one for the debts or the obligations of the other.Consequently,the accounts of AIDEA are not included in the accompanying financial statements. Pursuant to legislation effective July 1,1999,rural energy programs previously administered by the former Department of Community and Regional Affairs,Division of Energy,were transferred to AEA for administration,as part of a larger reorganization of state agencies.Five general energy programs comprising more than twenty smaller programs were moved to AEA.Rural energy programs were originally part of AEA prior to the reorganization that occurred in 1993. The following is a description of AEA's existing projects and programs: (a)Bradley Lake Hydroelectric Project The project has installed capability,under optimal conditions,of 126 megawatts and transmits its power to the State's main power grid via two parallel 20-mile transmission lines.The project,which cost in excess of $300 million,went into commercial operation in 1991.The project is now operated by Homer Electric Association under contract with AEA.Bradley Lake serves Alaska's Railbelt from Homer to Fairbanks as well as the Delta Junction area. (b)Alaska Intertie The 170-mile,345-kilovolt transmission line interconnects the power distribution systems of Anchorage and Fairbanks.The Alaska Intertie allows Golden Valley Electric Association in Fairbanks to purchase electricity produced with lower cost energy,such as natural gas and 10 (Continued) (c) (d) ALASKA ENERGY AUTHORITY (A Component Unit of the State of Alaska) Notes to Financial Statements June 30,2003 and 2002 hydroelectric,from the Anchorage and Kenai Peninsula utilities.The Alaska Intertie reduces the number of black/brownouts throughout the system.Operations and maintenance duties are overseen by the Intertie Operating Committee. Under legislation effective July 1,2002,the State appropriated $20,300,000 to AEA to upgrade and extend a portion of the Alaska Intertie.During the year ended June 30,2003,AEA incurred costs of $87,000 for preliminary design work. Larsen Bay Hydroelectric Project , The 475-kilowatt project went into commercial operation in 1991.In addition to producing electricity for this isolated Kodiak Island community,the project replaced the City of Larsen Bay's old water supply system and provides a better source of water with reduced maintenance and improved water quality.The City of Larsen Bay operates the project. During 2002,the Authority recognized an impairment charge of $1,186,000 to reduce the asset to its net realizable value.In addition,during 2002,all remaining outstanding bonds that financed this project were defeased (see note 6). Rural Energy Programs The rural energy programs of the Authority include Bulk Fuel Storage Upgrades,Rural Power System Upgrades,Power Cost Equalization,Alternative Energy,Utility Training,and Technical Assistance,two active loan programs funded from the Bulk Fuel Revolving Loan Fund and the Power Project Fund and one inactive loan program. (2)Summary of Significant Accounting Policies (a)Basis of Accounting -Enterprise Fund Accounting The accounts of the Authority are organized as an Enterprise Fund.Accordingly,the financial activities of the Authority are reported using the economic resources measurement focus and the accrual basis of accounting,whereby revenues are recorded when earned and expenses are recorded when goods or services are received or the related liability is incurred. GASB Statement No.20,Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting,provides two options for reporting proprietary fund activities (including component units using proprietary fund accounting).The Authority has elected to apply all applicable GASB pronouncements and all FASB Statements and Interpretations,Accounting Principles Board Opinions and Accounting Research Bulletins issued on or before November 30,1989,unless they conflict with or contradict GASB pronouncements. Operating Revenue and Expense The Authority considers all its revenues and expenses,except for investment income,to be part of its principal ongoing operations and therefore classifies these revenues and expenses as operating in the statement of revenues,expenses,and changes in net assets. 11 ;(Continued) (b) (c) (d) (e) ALASKA ENERGY AUTHORITY (A Component Unit of the State of Alaska) Notes to Financial Statements June 30,2003 and 2002 Capital Assets Capital assets are stated at cost and depreciation is charged to operations by use of the straight-line method over their estimated useful lives.The estimated economic lives of the assets are as follows: Utility plant Life in years Intangible 30-50 Production 30-50 Transmission ,20-40 General 5-30 The Authority recognizes impairment losses for long-lived assets whenever events or changes in circumstances result in the carrying amount of the assets exceeding the sum of the expected future cash flows associated with such assets. Cash and Investments All of AEA's cash and investments are restricted.For the purposes of the statement of cash flows, cash and cash equivalents consist of cash,short term commercial paper and repurchase agreements. AEA's marketable securities are reported at fair value in the financial statements.Unrealized gains and losses are reported as components of the deficiency of revenues over expenses.Fair values are obtained from independent sources. Loans and Related Interest Income Loans are generally carried at amounts advanced less principal payments collected.Interest income is accrued as earned.Accrual of interest is discontinued whenever the payment of interest or principal is more than ninety days past due or when the loan terms are restructured.The Authority considers lending activities to be part of its principal operations and classifies it as operating in the statement of revenues,expenses,and changes in net assets.For purposes of the statement of cash flows,loans are treated as program loans. Allowance for Loan Losses The allowance for loan losses represents management's judgment as to the amount required to absorb potential losses in the loan portfolio.The factors used by management to determine the allowance required include historical loss experience,individual loan delinquencies,collateral values,economic conditions and other factors.Management's opinion is that the allowance is currently adequate to absorb known losses and inherent risks in the portfolio. 12 (Continued) (3) (2) (h) @ (k) ALASKA ENERGY AUTHORITY (A Component Unit of the State of Alaska) Notes to Financial Statements June 30,2003 and 2002 Environmental Issues The Authority's policy relating to environmental issues is to record a liability when the likelihood of Authority responsibility for clean-up is probable and the costs are reasonably estimable.At June 30, 2003 and 2002,there were no environmental issues which met both of these criteria and, accordingly,no provision has been made in the accompanying financial statements for any potential liability which may result. Income Taxes The Internal Revenue Code provides that gross income for tax purposes does not include income accruing to a state or territory or any political subdivision thereof which is derived from the exercise of any essential governmental function or from any public utility.AEA is a political subdivision of the State performing an essential governmental function and is therefore exempt from State and federal income taxes. Appropriations and Grants The Authority recognizes grant revenue under the provisions of GASB Statement No.33, Accounting and Financial Reporting for Nonexchange Transactions,whereby revenue is recognized when all applicable eligibility requirements,including time requirements,are met. Segment Information The financial statements disclose all information required by the Authority's bond indenture. Estimates In preparing the financial statements,management of the Authority is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the balance sheet and revenue and expenses for the period. Actual results could differ from those estimates. Reclassifications Certain reclassifications have been made to the 2002 financial statements to conform to the 2003 presentation. Cash and Investments Pursuant to various agreements,appropriations and statutory requirements relating to its operations,AEA has established accounts for assets restricted to construction,operation,and financing activities (as used herein,Fund means a separate account established by the State legislature and does not refer to a separate group of self balancing accounts as contemplated by GAAP). At June 30,2003 and 2002 the Authority's carrying amount of deposits (all of which were restricted)was $36,429,000 and $34,090,000,respectively.The total of all bank balances was $38,074,000 and $33,802,000,respectively. 13 (Continued) ALASKA ENERGY AUTHORITY (A Component Unit of the State of Alaska) Notes to Financial Statements June 30,2003 and 2002 The restricted and designated cash and investments were held in trust accounts for the following activities as of June 30,2003 (stated in thousands): Cash and cash equivalents Investments Total Power Cost Equalization Endowment Fund $-166,652 166,652 Bradley Lake Hydroelectric Project 1,791 28,919 30,710 Rural Energy Operations 7,279 12,953 20,232 Rural Energy Loan Funds 12,328 * 7,085 19,413 Southeast Energy Fund 6,395 4,957 11,352 Power Cost Equalization and Rural Electric Capitalization Fund 3,007 -_-3,007 Funds advanced from State and federal agencies 2,889 -_-2,889 Power Development Fund 2,006 -_2,006 Alaska Intertie Project 650 -650 Electric Service Extension Fund 84 -84 Total cash and investments $36,429 220,566 256,995 The restricted and designated cash and investments were held in trust accounts for the following activities as of June 30,2002 (stated in thousands): Cash and cash equivalents Investments Total Power Cost Equalization Endowment Fund $55 172,374 172,429 Bradley Lake Hydroelectric Project 1,917 28,515 30,432 Rural Energy Operations 5,719 16,174 21,893 Rural Energy Loan Funds 9,719 9,168 18,887 Southeast Energy Fund 11,921 -11,921 Power Cost Equalization and Rural Electric Capitalization Fund 2,810 -_-2,810 Power Development Fund 1,865 -1,865 Electric Service Extension Fund 84 -84 Total cash and investments $34,090 226,231 260,321 At June 30,2003 and 2002,amounts restricted for debt service totaled $21,913,000 and $21,620,000, respectively,for the Bradley Lake Hydroelectric Project. AEA's cash,cash equivalents and investments are categorized below to give an indication of risk assumed by AEA at June 30,2003 and 2002.Category 1 includes investments that are insured,registered or collateralized with securities held by AEA or its agents in AEA's name.Category 2 includes uninsured and 14 ;(Continued) O G ALASKA ENERGY AUTHORITY (A Component Unit of the State of Alaska) Notes to Financial Statements June 30,2003 and 2002 . unregistered investments or collateralized investments,with securities held by the pledging financial institution's trust department in AEA's name.Category 3 includes uninsured and unregistered investments for which the securities are held by the counter party,or by its trust department or agent but not in AEA's name. (Stated in thousands) Fair value at Category 1 Category 2 Category 3 June 30,2003 U.S.Treasury and Agency Securities 24,996 -_-24,996 Repurchase agreements _-_31,048 31,048 Cash and investments with ; State Treasury -_--_-170,240 170,240 Other investments -28,919 1,792 30,711 $24,996 28,919 203,080 256,995 (Stated in thousands) Fair value at Category 1 Category 2 Category 3 June 30,2002 USS.Treasury and Agency Securities $25,341 --_-25,341 Repurchase agreements -_--_-17,210 17,210 Cash and investments with State Treasury -_--_-187,245 187,245 Other investments -28,506 2,019 30,525 $25,341 28,506 206,474 260,321 15 (Continued) (4) ALASKA ENERGY AUTHORITY (A Component Unit of the State of Alaska) Notes to Financial Statements Capital Assets June 30,2003 and 2002 Capital asset activity for the years ended June 30,2003 and 2002 was as follows (stated in thousands): Capital assets,being depreciated: Intangible Production Transmission General Total capital assets, being depreciated Less accumulated depreciation for: Intangible Production Transmission General Total accumulated depreciation Total capital assets, being depreciated,net $ Balance at Balance at June 30,2002 Additions June 30,2003 14 -14 241,070 1,214 242,284 185,600 -185,600 4,994 29 5,023 431,678 1,243 432,921 (2)-_(2) (54,067)(4,995)(59,062) (72,781)(4,975)(77,756) (4,262)(403)(4,665) (131,112)(10,373)(141,485) 300,566 (9,130)291,436 16 (Continued) ALASKA ENERGY AUTHORITY (A Component Unit of the State of Alaska) Notes to Financial Statements June 30,2003 and 2002 Balance at Balance at June 30,2001 Additions Deletions June 30,2002 Capital assets,being depreciated: Intangible $2,742,-_(2,728)14 Production 553,496 144 (312,570)241,070 Transmission 326,481 -(140,881)185,600 General 7,490 -(2,496)4,994 Total capital assets,™. being depreciated 890,209 144 (458,675)431,678 Less accumulated depreciation for: Intangible (1,199)(1)1,228 (2) Production (164,184)(8,016)118,133 (54,067) Transmission (159,501)(7,300)94,020 (72,781) General (6,564)(435)2,737 (4,262) Total accumulated depreciation (331,448)(15,782)216,118 (131,112) Total capital assets, being depreciated,net $558,761 (15,638)(242,557)300,566 -(5)Four Dam Pool Sale On January 31,2002,pursuant to ch.60 SLA 2000 (the Legislation),AEA sold the Four Dam Pool Projects to The Four Dam Pool Power Agency,an entity formed by the City of Ketchikan dba Ketchikan Public Utilities,the City of Wrangell dba Wrangell Municipal Light and Power,the City of Petersburg dba Petersburg Municipal Light and Power,Copper Valley Electric Association,Inc.and Kodiak Electric Association,Inc.(Purchasing Utilities).Pursuant to the Legislation,AEA sold the Projects pursuant to the terms of a Memorandum of Understanding (MOU)between AEA and the Purchasing Utilities dated April 11,2000,as amended in accordance with the Legislation.Pursuant to ch.75 SLA 2000,the proceeds of the sale,$68,000,000,along with certain other project funds,were transferred to the Power Cost Equalization Endowment Fund established under the Legislation.The Legislation provided for forgiveness of a noncurrent loan to the Authority upon closing.The loan forgiveness,net of other items,resulted in a $177,871,000 loss on sale of the Projects. 17 (Continued) ALASKA ENERGY AUTHORITY (A Component Unit of the State of Alaska) Notes to Financial Statements June 30,2003 and 2002 (6)Long-Term Debt The composition of bonds outstanding at June 30,2003 and 2002 follows (stated in thousands): Balance Balance at June 30,at June 30,Due within 2002 Additions Deletions 2003 one year Bradley Lake Power Revenue Bonds: First Series (a)$9,910 - _-9,910 - Second Series (a)11,520 __11,520 -_ Refunding,Third Series (a)54,140 -_(2,875)51,265 3,030 Refunding,Fourth Series (a)45,855 -(1,950)43,905 2,055 Refunding,Fifth Series (a)30,640 ---30,640 -_- Total bonds payable 152,065 _-(4,825)147,240 5,085 Arbitrage interest payable (b)402 202 -604 -_- Less bond discount and deferred interest (11,279)-1,821 (9,458)- $141,188 202 (3,004)138,386 5,085 Balance Balance at June 30,at June 30,Due within 2001 Additions Deletions 2002 one year Bradley Lake Power Revenue Bonds: First Series (a)$9,910 _--9,910 _- Second Series (a)11,520 __-11,520 - Refunding,Third Series (a)56,880 -_(2,740)54,140 2,875 Refunding,Fourth Series (a)47,710 _-(1,855)45,855 1,950 Refunding,Fifth Series (a)30,640 _-30,640 -_ Larsen Bay Fixed Rate (c)585 _-(585)--_ Total bonds payable 157,245 -_(5,180)152,065 4,825 Arbitrage interest payable (b)226 176 -_-402 - Less bond discount and deferred interest (13,085)-1,806 (11,279)- $144,386 176 (3,374)141,188 4,825 18 (Continued) ALASKA ENERGY AUTHORITY (A Component Unit of the State of Alaska) Notes to Financial Statements June 30,2003 and 2002 The minimum payments related to all bonds for the years subsequent to June 30,2003 are as follows (stated in thousands): Principal Interest Total Year ending June 30: 2004 $5,085 7,043 12,128 2005 5,370 6,756 12,126 2006 5,665 6,542 12,207 2007 5,800 * 6,470 12,270 2008 5,810 6,457 12,267 2009-2013 31,480 29,133 60,613 2014-2018 42,905 18,865 61,770 2019-2021 45,125 4,997 50,122 $147,240 86,263 233,503 (a) (b) (c) AEA issued the Power Revenue Bonds,First and Second Series (Bradley Lake Bonds),in September 1989 and August 1990,respectively,for the long term financing of the construction costs of the Bradley Lake Hydroelectric Project and refunded AEA's Variable Rate Demand Bonds which were issued in November 1985 to provide interim financing of the project.AEA issued the Power Revenue Refunding Bonds,Third and Fifth Series in April 1999 to refund a portion of the First Series Bonds and to provide costs of issuance.AEA issued the Power Revenue Refunding Bonds, Fourth Series in April 2000 to refund a portion of the Second Series Bonds and to provide costs of issuance.All of the revenues derived by AEA from the operation of the project and all moneys,- securities and funds (except the excess earnings fund),including a capital reserve fund,held or set aside are pledged and assigned to secure the payment of principal,redemption premium,if any,and interest on the bonds.No other revenues of AEA are pledged as security for the payment of the bonds.AEA has covenanted to notify the State Legislature of any failure to maintain the capital reserve fund at its required level.The bonds are further secured by bond insurance.AEA collects from each power purchaser a percentage share of annual project costs.The outstanding Bradley Lake Bonds mature annually each July 1 through the year 2021 with interest rates ranging from 5%to 6.25%. The arbitrage interest payable is due to the Internal Revenue Service for the excess of investment income on the proceeds of AEA's tax exempt Bradley Lake bonds over the related interest expense in accordance with Section 148 of the Internal Revenue Code of 1986.The accumulated arbitrage interest payable amount is computed each year,and the amount is first due after the end of the fifth bond year and every five years thereafter.AEA maintains a separate account with the trustee and each year sets aside a sufficient amount to satisfy the liability. Larsen Bay Fixed Rate Revenue Bonds were issued May 1991 for the long term financing of a portion of the construction costs of the Larsen Bay Hydroelectric Project. The Alaska Legislature,in ch 61,SLA 2001,appropriated $400,000 to AIDEA,which in tum deposited the funds with the Larsen Bay Hydroelectric Project's bond trustee,as required by the 19 (Continued) ALASKA ENERGY AUTHORITY (A Component Unit of the State of Alaska) Notes to Financial Statements June 30,2003 and 2002 legislation.The funds were used to pay current debt service and call bonds on April 1,2002.In June 2002,the AEA board authorized the expenditure of funds to retire all remaining outstanding bonds.The June 2002 transfer to the bond trustee resulted in the legal defeasance of all outstanding bonds at June 30,2002.The defeased bonds were called on October 1,2002. In addition,the Authority has participated in the following debt agreements: Other Debt -In 1982,AEA assumed $44,858,858 of 5%mortgage notes payable which require quarterly principal and interest payments to the Rural Utilities Service (RUS)in connection with the Solomon Gulch Hydroelectric Project.Concurrent with the assumption,AEA deposited with a trustee Treasury notes sufficient to satisfy and provide for timely repayment of all principal and interest due on the assumed RUS loans.Accordingly,the loans and related trust assets are not included in the financial statements of AEA.At June 30,2003,the unpaid principal balance of the notes was $24,646,000 and the trust assets had a fair value of $27,373,000. Conduit Financing -City and Borough of Sitka -Utility Revenue Refunding Bonds,Series 1997 and Utility Revenue Bonds,Series 1992 -In May 1992,AEA issued $56,890,000 of tax-exempt bonds that allowed the City and Borough of Sitka (Sitka)to refinance its 1979 municipal bonds,resulting in significant debt service savings to Sitka.In November 1997,AEA issued $22,080,000 of tax-exempt bonds to advance refund and defease $20,145,000 of the Series 1992 bonds (collectively with the Series 1992 bonds,the Sitka Bonds).The Sitka Bonds are not included in these financial statements.As of June 30,2003,the outstanding balance was $47,395,000. The Sitka Bonds are special obligations of AEA secured under a trust indenture by and between AEA and U.S.Bank Trust National Association,as trustee.The Sitka Bonds are payable solely from the sources provided under the trust indenture.They are equally and ratably secured by a pledge and assignment of the municipal revenue bonds of Sitka held by AEA under the trust indenture,the obligation of Sitka to make payments under its loan agreement with AEA and the money and securities held under the trust indenture,including a capital reserve fund.AEA has covenanted to notify the State Legislature of any failure to maintain the capital reserve fund at its required level. The bonds are further secured by bond insurance. The Sitka Bonds do not constitute an indebtedness or other liability of the State,including AEA,and do not directly,indirectly or contingently obligate the State,including AEA,or any political subdivision thereof to levy any form of taxation for the payment of the bonds.Neither the full faith and credit nor the taxing power of the State,including AEA,or Sitka is pledged for the payment of the Sitka Bonds. 20 .(Continued) CG (7) (8) ALASKA ENERGY AUTHORITY (A Component Unit of the State of Alaska) Notes to Financial Statements June 30,2003 and 2002 Loans The Authority administers the Power Project Loan Program,the Rural Electrification Revolving Loan Program and the Bulk Fuel Revolving Loan Program.Loans outstanding at June 30,2003 and 2002 are classified as follows (dollar amounts stated in thousands): 2003 2002 No.of No.of Loans Amount Loans Amount Power Project Loan Program 46 $22,274 43 $22,232 Rural Electrification Revolving Loan Program 10 1,504 10 1,812 Bulk Fuel Revolving Loan Program :46 1,021 46 1,114 102 24,799 99 25,158 Less allowance for loan losses (1,531)(1,198) $23,268 $23,960 Loans that are more than 90 days past due on which the accrual of interest has been discontinued amounted to $1,388,000 and $1,749,000 at June 30,2003 and 2002,respectively. An analysis of changes in the allowance for loan losses for the years ended June 30,2003 and 2002 follows (stated in thousands): 2003 2002 Balance at beginning of year $1,198 1,447 Charge-offs -(249) Recoveries 4 - Provision for loan loss 329 - Balance at end of year $1,531 1,198 Risk Management AEA is exposed to various risks of loss.AEA obtains coverage for its risks through the purchase of commercial insurance,participation in the State Risk Management Pool and the establishment of self-insurance plans. (a)General Liability --Watercraft and Aviation All risks are covered by the State insurance plan through an annual charge assessed by the State Division of Risk Management and payroll markup. 21 .(Continued) (9) ALASKA ENERGY AUTHORITY (A Component Unit of the State of Alaska) Notes to Financial Statements June 30,2003 and 2002 (b)Property 1.Alaska Intertie The utilities participating in the Alaska Intertie operating agreement retain the property risk associated with the Alaska Intertie. 2.Bradley Lake and Larsen Bay Hydroelectric Projects The risks are covered by commercialinsurance purchased through the State Division of Risk Management,and the self-insured retentions are the responsibility of the respective projectsfromoperatingfunds. (c)Boiler and Machinery These risks are covered by commercial insurance purchased through the State Division of Risk Management and a private carrier. Additionally,utilities benefiting from the use of the facilities owned by AEA participate in the responsibility for deductibles and self insured retentions under the terms of the respective agreements. Related Parties (a)Alaska Industrial Development and Export Authority Pursuant to understandings and agreements between AIDEA and AEA,AIDEA provides administrative,treasury,personnel,legal,data processing,communications,and other services to AEA.AEA has a borrowing arrangement with AIDEA to provide working capital funds. (b)Alaska Intertie Operating Committee Effective May 1,1986,AEA entered into an agreement with utilities using the Alaska Intertie for wheeling of electrical power.Pursuant to the agreement,the Intertie Operating Committee (IOC)was established to manage the system.The IOC is comprised of a representative from AEA and each of the utilities.AEA is reimbursed for operation and maintenance costs on a monthly basis with an annual settlement to adjust the payments to actual costs.The agreement may be terminated by mutual agreement of the participants. (c)Bradley Lake Project Management Committee Effective December 7,1987,AEA entered into a power sales agreement with entities purchasing electric power produced by the Bradley Lake Hydroelectric Project.Pursuant to the agreement,a Project Management Committee (PMC)was formed.The PMC is comprised of a representative from AEA and each of the power purchasers.The participating power purchasers make monthly payments directly to the bond trustee based on their respective percentage share of the estimated annual project costs,including debt service and annual administrative fee to AEA.There is an annual computation to adjust future payments for current year surpluses or deficits. 22 ;(Continued) (10) ALASKA ENERGY AUTHORITY (A Component Unit of the State of Alaska) Notes to Financial Statements June 30,2003 and 2002 Commitments and Contingencies AEA,in the normal course of business,is involved in various claims and pending litigation.The State Department of Law manages all pending litigation of AEA,and any liability arising from the settlement of pending claims is a liability for which the Department of Law or AEA requests an appropriation from the Legislature to satisfy judgment in the event that the judgment exceeds available funds or the proceeds from applicable insurance policies.In the opinion of management,the disposition of current claims and pending litigation is not presently expected to have a material adverse effect on AEA's financial position. 23 Balance at June 30,2002 $ Interest received Bond principal paid Bond interest paid Construction expenditures Operating revenue received Operating expenses paid Transfers between funds Balance at June 30,2003 $ ALASKA ENERGY AUTHORITY (A Component Unit of the State of Alaska) Schedule of Bradley Lake Hydroelectric Project Trust Account Activities Schedule 1 See accompanying independent auditors'report. Year ended June 30,2003 (Stated in thousands) Debt Capital Renewal and Construction Excess Operating service reserve contingency unallocated earnings Revenue Operating reserve account account account account account account account account Total 8,549 12,834 5,000 1,917 237 661 699 535 30,432 480 615 448 18 2 298 __1,861 (4,825)_-_-__-_-(4,825) (7,316)-__--_-_-_-_-(7,316) __(1,284)(154)_--__--(1,438) ___--_14,409 -__14,409 -_-_-__-_-_(2,413)-(2,413) 11,789 (615)(127)_163 (13,608)2,398 =-_ 8,677 12,834 4,037 1,781 402 1,760 684 535 30,710 i 24 Schedule 2 ALASKA ENERGY AUTHORITY (A Component Unit of the State of Alaska) Schedule of Projects -Balance Sheet June 30,2003 (Stated in thousands) Administration Bradley Lake Alaska Larsen Bay and Power Hydroelectric Intertie Hydroelectric Development Raral Energy Combined Assets Project Project Project Fund Projects Subtotal balance Current assets: . Grants receivable $___(1,211)6,883 5,672 $5,672 Loans receivable _--__2,293 2,293 2,293 Operating revenue receivable 3 302 27 _197 529 529 Accrued interest receivable 975 __-_138 1,113 1,113 Total current assets 978 302 27 (1,211)9,511 9,607 9,607 Noncurrent assets: Restricted cash and investments 21,913 __-_-_21,913 21,913 Designated for specific purpose 8,797 650 _4,895 220,740 235,082 235,082 Loans receivable,net of allowance tad ___20,975 20,975 20,975 Capital assets 308,259 124,246 416 --432,921 432,921 Less accumulated depreciation (81,475)(59,594)(416)_-_(141,485)(141,485) Capital assets,net 226,784 64,652 __-_-291,436 291,436 Total noncurrent assets 257,494 65,302 =4,895 241,715 569,406 569,406 Total assets $258,472 65,604 27 3,684 251,226 579,013 579,013 Liabilitics and Net Assets Current liabilities: Due to State of Alaska $_-__1,618 (868)750 750 Accounts payable 459 935 95 (65)41,671 13,095 13,095 Bonds payable -current portion 5,085 _-__5,085 5,085 Accrued interest 3,591 ____3,591 3,591 ° Total current liabilities 9,135 935 95 1,553 10,803 22,521 22,521 Noncurrent liabilities: Long-term debt,net of current portion: Bonds payable -noncurrent portion 132,697 ___A-132,697 132,697 Arbitrage interest payable 605 -__od 605 605 Other liabilities 103 ____103 103 Total noncurrent liabilities 133,405 ____-133,405 133,405 Total liabilities 142,540 935 95 1,553 10,803 155,926 155,926 Net assets: Investment in capital assets net of related deb!89,002 64,652 _-__153,654 153,654 Restricted for debt service 21,913 ___- .21,913 21,913 Restricted by agreements with external partiet 5,017 17 __-21,000 26,034 26,034 Unrestricted net assets __=(68)2,131 219,423 221,486 221,486 Total net assets 115,932 64,669 (68)2,131 240,423 423,087 423,087 Cc i and conting: Total liabilities and net assets $258,472 65,604 27 3,684 251,226 579,013 579,013 See accompanying independent auditors'report. 25 Operating revenues: Federal grants Revenue from operating plants State of Alaska Revenue from other state agencies Interest on loans Other revenue Total operating revenues Operating expenses: Grants and projects Power cost equalization grants Depreciation Interest expense Plant operating General and administrative Provision for loan loss Total operating expenses Operating loss Nonoperating: Investment income Decrease in net assets Net assets -beginning Net assets -ending See accompanying independent auditors'report. ALASKA ENERGY AUTHORITY (A Component Unit of the State of Alaska) Schedule of Projects -Revenues,Expenses,and Changes in Net Assets . Schedule 3 Year ended June 30,2003 (Stated in thousands) Administration Bradley Lake Alaska Larsen Bay and Power Hydroelectric Intertie Hydroelectric Development Rural Energy Combined Project Project Project Fund Projects balance _--_---24,354 24,354 14,409 1,161 12 _--15,582 -87 -_-5,103 5,190 ----1,675 1,675 ---_-945 945 3 _--73 76 14,412 1,248 12 -_32,150 47,822 --_--31,087 31,087 ----15,565 15,565 6,972 3,401 --_10,373 9,004 -_--9,004 2,103 1,118 36 --3,257 245 136 17 ;_-1,359 1,757 ---°-_329 329 18,324 4,655 53 -_-48,340 71,372 (3,912)(3,407)(41)-(16,190)(23,550) 1,681 6 _--7,328 9,015 (2,231)(3,401)(41)_-(8,862)(14,535) 118,163 68,070 (27)2,131 249,285 437,622 $115,932 64,669 (68)2,131 240,423 423,087 26 e,'O ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT Supplementary Material SEAN ametdAppendix. RUS GRANT APPLICATION 32 MULTI-DISCIPLINE ENGINEERING SERVICES AEA RFP AEA 02-002/=ALASKAl=ENERGY AUTHORITY _3.MANAGEMENT Key to our management plan is effective communication.HDL's role is to work closely with AEA's Project Managers and act as an extension of AEA staff.Our management style is characterized as an energetic,professional,client-oriented,team approach.All key team members have long experience in identifying conflicts and issues,establishing a positive dialogue,and working with interested parties to determine a positive plan of action.The following is an organizational chart of management and key staff: =(=ALASKA@&-_ENERGY AUTHORITY "AEA Project Managers Regulatory & David A.Lockard,P.E.Funding Christopher P.Mello Agencies *Project Management|; Lorie Dilley,P.E/C.P.G Scott Hattenburg,P.E. Principal Principal-In-Charge ads,-skids ot ates Fea paealaadeatumasranl SEEEe"e=@ ProjectTeam y-x-meng eS vind ase Concept Design Lorie Dilley,PEPG. Mike Krieber,P.E. Randy Smith,P.L.S. Construction Documents Scott Hattenburg,P.E. David Lundin,P.E. Non-Destructive Examination Ty Amberg (QA Services) Structural EngineeringProductionDraftinBenOien,P.E.(Oien Assoc.)Surveying Richard Best Randy Smith,P.L.S. Geotechnical Engineering Lorie Dilley,PE,CPG Environmental Engineering Michael Travis,P.E.(TPECI) Cost Estimating /QA/QC Scott Hattenburg,P.E. Randy Smith,P.L.S. Mechanical Engineerin Alexander Reeve,P.E. (Enterprise Engineering,Inc.) Construction Administration David Lundin,P.E. Randy Smith,P.LS. Regulatory Plans Lorie Dilley,P.E.,C.P.G. Jim Berry (Jim Berry &Assoc.)Land Issues Rick Elliot Electrical Engineering Business Plans (Land Management)Dan Rogers,P.E.Ann Campbell :(EPS)(Aurora Consulting) Mike Krieber,P.E. Scott Hattenburg,P.E.,(CE 6739,Alaska),Principal with Hattenburg,Dilley &Linnell,will be Project Manager and will be directly responsible for all aspects of this project including coordinating staff activities,team performance,and quality products.Lorie Dilley,P.E.,C.P.G.,(CE 9256, CPG 9797,Alaska),Principal with HDL,will be Contract Manager and Project Engineer.She will have overall authority for contractual matters.She will be a project engineer and will provide geotechnical engineering services.The HDL Design Team includes David Lundin,P.E.,(CE 10127,Alaska),Randy Smith,P.L.S.,(PLS 10317,Alaska),Mike Krieber,P.E.,(PE 9067, Alaska)and Richard Best.Our specialty subcontractors include Rick Elliot a land management Page 6 -+DL)HATTENBURG,DILLEY &LINNELLiSEngineeringConsultants a 'e. --/=>ALASKA MULTI-DISCIPLINE ENGINEERING SERVICES @=-ENERGY AUTHORITY AEA RFP AEA 02-002 consultant;Michael Travis,P.E.,(CE 8048,Alaska)Principal of Travis Peterson Environmental Consultants;Ben Oien,P.E.,(CE 9141,Alaska)Principal with Oien Associates will provide structural engineering;Dan Rogers,P.E.,(EE 7959,Alaska)Principal with Electric Power Systems (EPS);and Alexander Reeve,P.E.,(ME 9143,Alaska)Mechanical Engineer with Enterprise Engineering,Inc.Ty Amberg,Principal with QA Services will provide any non-destructive examination (NDE)of existing tanks,welding inspections and coating inspections.Jim Berry, Principle with Jim Berry &Associates will be responsible for developing regulatory plans for the individual projects including SPCCs,USCG Operations Manuals,and Facility Response Plans. Ann Campbell,Principle with Aurora Consulting will be responsible for the development of the business plans. We bring together for this project a uniquely qualified and specially selected team of seasoned professionals with long experience in planning and design of bulk fuel farms.The firms proposed under this contract have worked together on various projects and each have unique design experience for arctic and sub-arctic facilities. Project Manager Scott Hattenburg,P.E.will serve as the project manager.He will be directly responsible for all aspects of this term contract,including coordinating staff activities,team performance,and quality assurance.He will interface directly with AEA Project Managers.Mr.Hattenburg is a registered professional engineer (CE 6739)and has 18 years experience in civil design and project management in rural Alaska.He is an API-653 certified tank inspector (1123) and has conducted numerous bulk fuel studies and designs including bulk fuel projects in Koyuk,Barrow,Point Hope,Anaktuvuk Pass,Point Lay,Wainwright, Nuiqsut,Allakaket,Hughes,Kodiak,Chefornak,and Bethel.He has been Principal-In-Charge overseeing staff preparation of 32 separate Spill Prevention Control and Countermeasure Plans,Oil Spill Contingency Plans at Wainwright,Barrow,and Point Hope,and has performed API 653 tank inspections at Red Dog Mine for Cominco,Cape Newenham for the Air Force,and at Nuiqsut for the North Slope Borough.He developed a cost-effective,innovative bulk fuel system design at Chefornak that used elevated storage and containment on piles to provide flood-protection and to protect the integrity of warm permafrost soils.He was Project Manager and Contract Manager for LCMF engineering services to AEA from 1995 to 2000.He initiated the AEA "Standard Drawings”concept for AEA in 1995 to create efficiency, standardization,and cost savings.Mr.Hattenburg has been in responsible charge of over 300 civil projects with single budgets exceeding $18 million.Mr.Hattenburg is an Alaskan Resident. Availability:Mr.Hattenburg's availability is excellent at this time.His future commitments include oversight of a new Sewer Pretreatment Facility at Palmer,Alaska,and he is currently developing Seldovia's Airport Master Plan for the DOT&PF,which will occur over the next year.He has time to perform the duties of this contract and fulfill his existing commitments. Previous Experience:Mr.Hattenburg has a long history of providing project management andcivildesignontankfarms,pipelines,and related facilities in rural Alaska.Following is a list of projects: Page 7 |HATTENBURG,DILLEY&LINNELL,-DL Engineering Consultants l==>ALASKA MULTI-DISCIPLINE ENGINEERING SERVICES @&_>ENERGY AUTHORITY AEA RFP AEA 02-002 Alaska Energy Authority Bulk Fuel Term Contracts (#2155275,#2175039,and #2195020). (1995-2000)Project Manager and Contract Manager for LCMF overseeing term agreement services with AEA.Trained LCMF engineers and drafters in fuel system design and provided oversight of client services.References:Eric Marchegiani,former AEA Program Manager, 529-1263,Art Isham,269-3015. Alaska _Village Electric Cooperative Bulk Fuel Term Contract (2001-present)Principal-In-Charge and Project Manager for the Concept Design of new bulk fuel storage and dispensing facilities in the five communities of Koyuk,Mtn.Village,Noatak,Hooper Bay,and Chevak. Responsible for developing the construction documents for Koyuk bulk fuel facility. Responsible for overseeing consultant team,design,quality assurance and responding to Denali Commission requests.Reference:Brent Stonebraker,MACTEC,562-6005.Vv>Nuiqsut Natural Gas Pipeline Investigation and Concept Design Report.(1997)Project Manager for preliminary design and study of four alternate routes for a 12-mile natural gas pipeline between Alpine Oil Field and the village of Nuiqsut.Analyzed code and regulatory requirements,selected routes,modeled gas flows,established future gas demands,sized the pipeline,analyzed corrosion and geotechnical studies,and developed budget level costs for programming.Reference:Richard Glenn,former Director of NSB Energy Management, 852-8633. Other related projects include: Merrill Field Airport Underground Fuel Tanks Removal (1999) Merrill Field Airport Generator Fuel Tank Replacement (1998) Bethel Army National Guard Aircraft Fuel Storage and Dispensing Facility (1996) Akiak Bulk Fuel System Inspection and Report (1996) Allakaket Bulk Fuel System Inspection and Concept Design Report (1995) Hughes Bulk Fuel System Inspection and Concept Design Report (1995) Chefornak Bulk Fuel Storage Upgrades (1992) Cape Newenham Bulk Fuel System Inspection and Improvements (1992) Walakpa Natural Gas Pipeline Design and CA (1991) Kodiak Island Hospital Fuel Containment Design (1991)VVVVVVVVVVReferences:Rick Koch,City of Palmer,Public Works Supervisor,745-3271 Mark Tietzel,AVEC,561-1818 Brent Stonebraker,MACTEC,334-3502 Don Shiesl,City of Wasilla,Public Works Director,373-9095 Project Team Lorie Dilley,P.E.,C.P.G.will serve as one of our project engineers and contract manager for HDL.Ms Dilley will be in charge of the day-to-day activities associated with the concept design phases of a project and will provide geotechnical engineering services.Ms.Dilley is a registered professional engineer (CE 9256)and a certified professional geologist (CPG 9797).She has over 14 years experience in geotechnical design and environmental issues in Alaska.She has completed the Concept Design for Bulk Tank Farm Improvements for the villages of Koyuk,Mtn. Village,and Noatak.Her bulk fuel tank experience also includes developing SPCCs for the Alaska DOT&PF and for the Alaska Department of Education.She is intimately familiar with 40 CFR Part Page 8 4 'HATTENBURG,DILLEY&LINNELL°-DL Engineering Consultants «=>MULTI-DISCIPLINE ENGI/=>ALASKA NEERING SERVICES @E_>ENERGY AUTHORITY ;AEA RFP AEA 02-002 112 and has inspected tanks farms in Unalakleet,St.Michaels,Stebbins,Wrangell-St.Elias National Park,Nome,and Kotzebue.She has attended the Alaska Department of Environmental Conservation's Aboveground Storage Tank Workshop course,and developed and produced a training video for inspections of tanks and associated facilities for the DOT&PF.Ms.Dilley has also conducted numerous geotechnical studies throughout Alaska including Elim,Anvik,McGrath, Kodiak,Bethel,southeastern Alaska,and the Aleutian Islands.She is an Alaskan resident. References:Luther Nagaruk,City of Elim,907-890-3441,Brent Petrie,AVEC,561-1818,andTrenaHallback,Delta Western Fuels,276-2688. David Lundin P.E.will serve as a project engineer for HDL.He is a registered professional engineer (CE 10127)has over 8 years experience in civil engineering and construction management.His experience includes design,inspection and construction administration of multi- million dollar projects.Mr.Lundin was the design engineer for the Koyuk Bulk Fuel Improvements for AVEC.He was design engineer and construction manager for the Palmer Airport FireRetardantStorageTankFarmandDispensingFacility.He was project manager for design of a vehicle fueling facility consisting of two 12,000-gallon underground storage tanks, fueling island,and service building and project manager for design of above ground 100LL and Jet A storage and dispensing tanks at the Tulare Airport.He has a working knowledge of 40 CFR 112 and the Uniform Fire Code.He is an Alaskan resident.References:Larry Mathis,Pan American Consulting Engineers,907-563-4648;Rick Koch,Public Works Superintendent,City of Palmer,907-745-5 ey nine ot Oy Saas 3925;Tom Healy,City Manager,City of Palmer,907-745-Mefford Field Fuel Station 3271. Randy Smith,P.L.S.of HDL,is a 34-year resident of Alaska working in the surveying,engineer, and construction management/supervision fields.His experience covers a wide range of aspects including land and subdivisions,land planning,engineering,construction,and construction layout, GIS,hydrographical,and many other types of surveys.Mr.Smith worked for an engineering firm as project manager,resident engineer,chief surveyor,and head of construction project supervision and inspections.Currently,Mr.Smith's principle activities include constructionmanagement,land surveying and pre-engineering surveys for design applications.He is anAlaskanresident.References:Brent Petrie,AVEC,561-1818;Bill Pettigrew,Thermo-Tech,403-688-4644,Bob Gilman,Contractor,745-8618. Mike Krieber,P.E.,staff engineer with HDL,will assist the project team with the Concept Design Reports.Mr.Krieber has served as the construction program manager for the City of Wasilla and was an environmental engineer with the Department of Environmental Conversation.He was responsible for managing all construction programs for water,sewer,and roads in this rapidly growing community.As a consulting engineer,he performed city management services in project development,funding,and municipal contract functions (RFP's,construction bids,contract management,negotiations,closeouts,etc).He served as community liaison for all projects and at city council meetings.By working with residents,businesses,local governments,and funding agencies he successfully developed short-term and long-term construction programs and completed constructing many projects.He excelled on financial matters (contract management, grant writing,compiling operating and capital budgets).He is an Alaskan Resident.References: Page 9 EDL HATTENBURG,DILLEY &LINNELLEngineeringConsultants ULTI-DISCIPLINE ENGINf=ALASKA MULTI-DIS EERING SERVICES @@=->ENERGY AUTHORITY AEA RFP AEA 02-002 Mayor Sarah Palin,City of Wasilla,373-9055;Steve Miller,Raven Engineering,376-9614;Beth Kerttula,State Representative,465-4766. Richard Best,lead drafter with HDL,will be responsible for production drafting of construction documents.Mr.Best has over 10 years experience as a production drafter and graphic designer. He has most recently completed the construction documents for the Palmer Taxiway Improvement project,and has drafted the concept designs for the bulk tank farm improvements at Mtn.Village,Noatak,and Hooper Bay.Mr.Best is familiar with AutoCad 14 and 2000 and with a variety of graphic programs.Heis an Alaskan resident.References:Mark Greenough,BNC International, Inc.522-6103;Jane Thomas,ENSR,561-5700;Jim Czech,Michael Baker Jr.,Inc 562-1399. Mike Travis,P.E.,Environmental Engineer and Principal of Travis/Peterson Environmental Consulting,Inc.(T/PECI),is our proposed Task Leader for environmental services.Mr.Travis is a 28-year resident of Alaska,and has a BS in Fishery Biology and an MS in Environmental Quality Science from UAF.He is licensed in Alaska as a Civil Engineer (CE 8048).Mike is an experienced Alaskan environmental engineer with extensive experience in performing environmental assessments and environmental impact statements following NEPA guidelines.Mr. Travis has coordinated with local,state,and federal agencies on environmental issues, stipulations,and mitigation measures.He has also performed environmental auditing,wetland delineation and mitigation,and environmental engineering on a variety of projects throughout Alaska.Mr.Travis is an Alaskan resident.References:John Tolley,Central Region DOT&PF, 269-0520;Mark Mayo,Aviation Planning,Central Region DOT&PF,266-1770;Patty Miller, Northern Regions DOT&PF,451-2200. Daniel C.Rogers,P.E.(EE 7959),Principal Electrical Engineer with Electric Power Systems, Inc.,will provide all electrical controls design in support of the bulk fuel work,and any related electrical power plant work.He has 17 years of Alaskan electrical design experience.Dan Rogers has extensive knowledge of power plant planning and design requirements and a special understanding of remote plant operations.Mr.Rogers is currently the principal-in-charge of the Nome Powerplant upgrade project.Mr.Rogers has managed and EPS has completed control systems and designs for fuel control and tankage systems.He is an Alaskan resident. References:Mike Massin,Director,Engineering,Chugach Electric Association,762-4600;Clay Kaplin,Chief Engineer,Cordova Eelctric Cooperative,Inc.424-5026;Mike Lewis,Power/Vapor Engineer,Alyeska Pipeline Service Company,Inc.,834-6435. Alexander Reeve,P.E.(ME 9143),Lead Mechanical Engineer with Enterprise Engineering,Inc., will coordinate all mechanical design in support of the bulk fuel work.Mr.Reeve has 12 years of engineering design experience.He has served as lead mechanical engineer on projects withconstructionvaluesupto$5 million.His extensive experience includes bulk fuel facilities,diesel generator plants,steam piping and heating,fire protection systems,code and condition surveys, system trouble shooting,and expert witness testimony.Currently,he is the project manager and lead mechanical engineer for evaluation and design work at AEG&T Co-Generation Plant in Nikiski.He is an Alaskan resident.References:Jeff Hatt,Slayden Plumbing &Heating,373-7690; Christian Ryll,ARRC,265-2595;Ernie Baumgartner,McGrath Power &Light,524-3009. Ben Oien,P.E.,Structural Engineer and Principal of Oien Associates,Inc.will provide structural engineering services.Mr.Oien is a registered professional engineer (CE 9141)and has 10 years of structural engineering experience.He is currently working on structural design of staff housing in Bethel for the Yukon-Kuskokwim Health Corporation.He also provided structural design of Page 10 -+DL)HATTENBURG,DILLEY &LINNELL-§_Engineering Consultants --MULTI-DISCIPLINE ENGIN/=_ALASKA TI-DI EERING SERVICES @E_>ENERGY AUTHORITY AEA RFP AEA 02-002 wastewater buildings at the Alpine Development on the North Slope and is working on a 55-room hotel in Whittier.He is an Alaskan resident.References:Jerry Winchester,Winchester Alaska, Inc.272-4347;Andy Anderson,Deputy Director,Bristol Bay Housing Authority,1-888-280-6424; Johan Overland,Blue Sky International Developers,344-7757 Jim Berry,is a regulatory compliance consultant specializing in oil and hazardous substances. Operating as a sole proprietor since 1984,he has prepared compliance documents,response plans and training programs for more than 150 petroleum facilities throughout Alaska,Washington, California,and 30 marine operators internationally,and prepared spill prevention and response plans for 24 bulk fuel projects for AEA.He is an Alaskan resident.References:Matt Carr,EPA,AK On-Scene Coordinator,271-5083;Larry Katkin,ADEC,Mgr.Terminal &Tank Farms Section, 451-2360;Pete Hellstrom,Williams Petroleum,Environmental Compliance Manager,273-3343. Ty Amberg Principal of QA Services,is an AWS Certified Welding Inspector,Certified API 653 Tank Inspector,Certified API]570 Piping Inspector,NACE Certified Level Ill Coating Inspector,and ASNT Level Il Inspector in the disciplines of PT,MT,LT,ET,and UT.He has conducted inspections for Owners and Contractors in all areas of Alaska and in all seasons.He is an Alaskan Resident.References:Jeff Byrne,UIC Construction,Inc,762-0119;Bob Farmer,Alaska DOT & PF 269-6230;Hank Nichols,Corps of Engineers,563-7441. Rick Elliot is a land management consultant.He has over 28 years of experience with researching land records and preparing title searches.Mr.Elliot has recently worked with HDL on the research of Delta Western's pipelines at Dutch Harbor.Mr.Elliot showed from his thorough research that Delta Western did own the right to where the pipelines were buried and therefore saved Delta Western several thousands of dollars in relocation expense.He is an Alaskan resident.References:John Bennett,DOT&PF,Fairbanks,541-5423;Daniel Beardsley,Right of Way and Land Consultant,222-4893;Allan Breitzman,ANCSA Bureau of Land Management, 271-5606. Ann Campbell has a Master of Business Administration.Ms.Campbell has provided Alaska Energy Authority (AEA),AIDEA,and Village Safe Water with a variety of business planning services for rural energy projects,including bulk fuel upgrade projects,rural electric power system upgrade projects and water and wastewater planning.Aurora Consulting has assisted the AEA with the development and writing of Bulk Fuel Facility Business Operating Plans for the villages of Beaver,Buckland,Chenega Bay,Deering,Egegik,Igiugig,Kokhanok,Nelson Lagoon,Newhalen,- Nikolai,Port Heiden,and Takotna.She is an Alaskan resident.References:Mike Harper,AEA, 269-3000;Berney Richert,USEDA,271-2272;Margaret Nelson,ANHC,330-8000. Current Contracts:HDL has no current contracts with AEA at this time.Our commitments on other contracts are of short-duration and will allow us the flexibility to respond to accelerated schedules or fast-track projects under this contract. Time Commitments and Availability.We have analyzed in detail our team's time commitments and current resources available to do this work and we find that our availability is excellent at this time.HDL and our team members are available and have ample time in their schedules to provide services under this contract.We have prepared a manpower analysis table to summarize our team member's anticipated commitments for the next 12 months. Page 11 1 HATTENBURG,DILLEY &LINNELL-+D1 Engineering Consultants ALASKA ENERGY AUTHORITY HIGH ENERGY COST GRANT PROGRAM SLEETMUTE POWERHOUSE &RED DEVIL TIELINE PROJECT Additional Required Forms and Certifications Forms and Certifications SF 424D -Assurances-Construction Programs SF LLL -Disclosure of Lobbying Activities Certification Regarding Debarment,Suspension,and Other Responsibility Matters Environmental Profile RUS GRANT APPLICATION 33 OMB Approval No.0348-0042 ASSURANCES -CONSTRUCTION PROGRAMS Public reporting burden for this collection of information is estimated to average 15 minutes per response,including time for reviewing instructions,searching existing data sources,gathering and maintaining the data needed,and completing and reviewing the collection of information.Send comments regarding the burden estimate or any other aspect of this collection of information,including suggestions for reducing this burden,to the Office of Management and Budget,Paperwork Reduction Project (0348-0042),Washington,DC 20503. PLEASE DO NOT RETURN YOUR COMPLETED FORM TO THE OFFICE OF MANAGEMENT AND BUDGET. SEND IT TO THE ADDRESS PROVIDED BY THE SPONSORING AGENCY. NOTE:Certain of these assurances may not be applicable to your project or program.If you have questions,please contact the Awarding Agency.Further,certain Federal assistance awarding agencies may require applicants to certify to additional 1. Previous Edition Usable assurances.If such is the case,you will be notified. Has the legal!authority to apply for Federal assistance, and the institutional,managerial and financial capability (including funds sufficient to pay the non-Federal share of project costs)to ensure proper planning, management and completion of the project described in this application. Will give the awarding agency,the Comptroller General of the United States and,if appropriate,the State, through any authorized representative,access to and the right to examine all records,books,papers,ordocumentsrelatedtotheassistance;and will establish a proper accounting system in accordance with generally accepted accounting standards or agency directives. Will not dispose of,modify the use of,or change the terms of the real property title,or other interest in the site and facilities without permission and instructions from the awarding agency.Will record the Federal interest in the title of real property in accordance with awarding agency directives and will include a covenant in the title of real property aquired in whole or in part with Federal assistance funds to assure non- discrimination during the useful life of the project. Will comply with the requirements of the assistance awarding agency with regard to the drafting,review and approval of construction plans and specifications. Will provide and maintain competent and adequate engineering supervision at the construction site to ensure that the complete work conforms with the approved plans and specifications and will furnish progress reports and such other information as may be required by the assistance awarding agency or State. Will initiate and complete the work within the applicable time frame after receipt of approval of the awarding agency. Will establish safeguards to prohibit employees from using their positions for a purpose that constitutes or presents the appearance of personal or organizational conflict of interest,or personal gain. 10. Authorized for Local Reproduction As the duly authorized representative of the applicant,|certify that the applicant: 8.Will comply with the Intergovernmental Personnel Act of 1970 (42 U.S.C.§§4728-4763)relating to prescribed standards for merit systems for programs funded under one of the 19 statutes or regulations specified in Appendix A of OPM's Standards for a Merit System of Personnel Administration (5 C.F.R.900,Subpart F). Will comply with the Lead-Based Paint Poisoning Prevention Act (42 U.S.C.§§4801 et seq.)which prohibits the use of lead-based paint in construction or rehabilitation of residence structures. Will comply with all Federal statutes relating to non- discrimination.These include but are not limited to:(a) Title VI of the Civil Rights Act of 1964 (P.L.88-352) which prohibits discrimination on the basis of race, color or national origin;(b)Title IX of the Education Amendments of 1972,as amended (20 U.S.C.§§1681 1683,and 1685-1686),which prohibits discrimination on the basis of sex;(c)Section 504 of the Rehabilitation Act of 1973,as amended (29 U.S.C. §794),which prohibits discrimination on the basis of handicaps;(d)the Age Discrimination Act of 1975,as amended (42 U.S.C.§§6101-6107),which prohibits discrimination on the basis of age;(e)the Drug Abuse Office and Treatment Act of 1972 (P.L.92-255),as amended,relating to nondiscrimination on the basis of drug abuse;(f)the Comprehensive Alcohol Abuse and Alcoholism Prevention,Treatment and Rehabilitation Act of 1970 (P.L.91-616),as amended,relating to nondiscrimination on the basis of alcohol abuse or alcoholism;(g)§§523 and 527 of the Public Health Service Act of 1912 (42 U.S.C.§§290 dd-3 and 290 ee 3),as amended,relating to confidentiality of alcohol and drug abuse patient records;(h)Title VIII of the Civil Rights Act of 1968 (42 U.S.C.§§3601 et seq.),as amended,relating to nondiscrimination in the sale, rental or financing of housing;(i)any other nondiscrimination provisions in the specific statute(s) under which application for Federal assistance is being made;and,(j)the requirements of any other nondiscrimination statute(s)which may apply to the application. Standard Form 424D (Rev.7-97) Prescribed by OMB Circular A-102 11. 12. 13. 14. 15. Will comply,or has already complied,with the requirements of Titles ll and I!of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (P.L.91-646)which provide for fair and equitable treatment of persons displaced or whose property is acquired as a result of Federal and federally-assisted programs.These requirements apply to all interests in real property acquired for project purposes regardless of Federal participation in purchases. Will comply with the provisions of the Hatch Act (5 U.S.C. §§1501-1508 and 7324-7328)which limit the political activities of employees whose principal employment activities are funded in whole or in part with Federal funds. Will comply,as applicable,with the provisions of the Davis- Bacon Act (40 U.S.C.§§276a to 276a-7),the Copeland Act (40 U.S.C.§276c and 18 U.S.C.§874),and the Contract Work Hours and Safety Standards Act (40 U.S.C.§§327- 333)regarding labor standards for federally-assisted construction subagreements. Will comply with flood insurance purchase requirements of Section 102(a)of the Flood Disaster Protection Act of 1973 (P.L.93-234)which requires recipients in a special flood hazard area to participate in the program and to purchase flood insurance if the total cost of insurable construction and acquisition is $10,000 or more. Will comply with environmental standards which may be prescribed pursuant to the following:(a)institution of environmental quality control measures under the 16. 17. 18. 19. National Environmental Policy Act of 1969 (P.L.91- 190)and Executive Order (EO)11514;(b)notification of violating facilities pursuant to EO 11738;(c) protection of wetlands pursuant to EO 11990;(d) evaluation of flood hazards in floodplains in accordance with EO 11988;(e)assurance of project consistency with the approved State management program developed under the Coastal Zone Management Act of 1972 (16 U.S.C.§§1451 et seq.);(f)conformity of Federal actions to State (Clean Air)Implementation Plans under Section 176(c)of the Clean Air Act of 1955,as amended (42 U.S.C.§§7401 et seq.);(g) protection of underground sources of drinking water under the Safe Drinking Water Act of 1974,as amended (P.L.93-523);and,(h)protection of endangered species under the Endangered Species Act of 1973,as amended (P.L.93-205). Will comply with the Wild and Scenic Rivers Act of 1968 (16 U.S.C.§§1271 et seq.)related to protecting components or potential components of the national wild and scenic rivers system. Will assist the awarding agency in assuring compliance with Section 106 of the National Historic Preservation Act of 1966,as amended (16 U.S.C.§470),EO 11593 (identification and protection of historic properties),and the Archaeological and Historic Preservation Act of 1974 (16 U.S.C.§§469a-1 et seq.). Will cause to be performed the required financial and compliance audits in accordance with the Single Audit Act Amendments of 1996 and OMB Circular No.A-133, "Audits of States,Local Governments,and Non-Profit Organizations.” Will comply with all applicable requirements of all other Federal laws,executive orders,regulations,and policies governing this program. SIGNATURE THORIZ CERTIFYING OFFICIAL TITLE AIDEA/AEA Executive Director APPLICA\RGANIZATION AIDEA/Afaska Energy Authority DATE SUBMITTED March 5,2004 SF-424D (Rev.7-97)Back DISCLOSURE OF LOBBYING ACTIVITIES Complete this form to disclose lobbying activities pursuant to 31 U.S.C.1352 Approved by OMB 0348-0046 (See reverse for public burden disclosure.) 1.Type of Federal Action:[b |a.contractb.grant c.cooperative agreement d.loan e.loan guarantee f.loan insurance 2.Status of Federal Action: [a |bid/offer/applicationb.initial award Cc.post-award . 3.Report Type:[a]a.initial filingb.material change For Material Change Only: year quarter date of last report _ 4.Name and Address of Reporting Entity: ©Prime oO SubawardeeTier ,ifknown: AIDEA/Alaska Energy Authority 813 W.Northern Lights Blvd. Anchorage,Alaska 99503 Congressional District,if known:Alaska 5.If Reporting Entity in No.4 is a Subawardee,Enter Name and Address of Prime: Congressional District,if known: 6.Federal Department/Agency: U.S.Department of Agriculture,Rural Utilities Service 7.Federal!Program Name/Description: Assistance to High Energy Cost Rural Communities CFDA Number,if applicable:_10.859 8.Federal Action Number,if known: FR Doc.04-1471 9.Award Amount,if known: $3,300,000 10.a.Name and Address of Lobbying Registrant (ff individual,last name,first name,MI): Ronald W.Miller,Executive Director AIDEA/Alaska Energy Authority 813 W.Northern Lights Blvd. Anchorage,Alaska 99503 b.Individuals Performing Services (including address if different from No.10a) (last name,first name,MI): ff)>.41 Information requested through this form is authorized by title 31 U.S.C.section"1352.This disclosure of lobbying activities is a material representation of fact upon which reliance was placed by the tier above when this transaction was made or entered into.This disclosure is required pursuant to 31 U.S.C.1352.This information will be ilable for public inspection.Any person who fails to file the required disclosure shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. Signature:[Dh laif:Ronald WillerTitle:Executive Director Print Name Telephone No.:(907)269-3000 y 4Date:3,"5-07FederalUseOnly7nT"|Authorized for Local Reproduction Standard Form LLL (Rev.7-97) INSTRUCTIONS FOR COMPLETION OF SF-LLL,DISCLOSURE OF LOBBYING ACTIVITIES This disclosure form shall be completed by the reporting entity,whether subawardee or prime Federal recipient,at the initiation or receipt of a covered Federal action,or a material change to a previous filing,pursuant to title 31 U.S.C.section 1352.The filing of a form is required for each paymentor agreementto make paymentto any lobbying entity for influencing or attempting to influence an officer or employeeof any agency,a Member of Congress,an officer or employee of Congress,or an employeeof a Member of Congress in connection with a covered Federal action.Complete all items that apply for both the initial filing and material change report.Refer to the implementing guidance published by the Office of Management and Budget for additional information. 1.Identify the type of covered Federal action for which lobbying activity is and/or has been secured to influence the outcome of a covered Federal action. 2.Identify the status of the covered Federal action. 3.Identify the appropriate classification of this report.If this is a followup report caused by a material change to the information previously reported,enter the year and quarter in which the change occurred.Enter the date of the last previously submitted report by this reporting entity for this covered Federal action. 4.Enter the full name,address,city,State and zip code of the reporting entity.Include Congressional District,if known.Check the appropriateclassification of the reporting entity that designates if it is,or expects to be,a prime or subaward recipient.Identify the tier of the subawardee,e.g.,the first subawardee of the prime is the 1st tier.Subawards include but are not limited to subcontracts,subgrants and contract awards under grants. 5.If the organization filing the report in item 4 checks "Subawardee,”then enter the full name,address,city,State and zip code of the prime Federal recipient.Include Congressional District,if known. 6.Enter the name of the Federal agency making the award or loan commitment.include at least one organizationallevel below agency name,if known.For example,Department of Transportation,United States Coast Guard. 7.Enter the Federal program name or description for the covered Federal action (item 1).If known,enter the full Catalog of Federal Domestic Assistance (CFDA)number for grants,cooperative agreements,loans,and idan commitments. 8.Enter the most appropriate Federal identifying number availablefor the Federal action identified in item 1 (e.g.,Request for Proposal (RFP)number; Invitation for Bid (IFB)number;grant announcement number;the contract,grant,or loan award number;the application/proposal control number "assigned by the Federal agency).Include prefixes,e.g.,"RFP-DE-90-001." 9.For a covered Federal action where there has been an award or loan commitment by the Federal agency,enter the Federal amount of the award/loan commitment for the prime entity identified in item 4 or 5. 10.(a)Enter the full name,address,city,State and zip code of the lobbying registrant under the Lobbying Disclosure Act of 1995 engaged by the reporting entity identified in item 4 to influence the covered Federal action. (b)Enter the full names of the individual(s)performing services,and include full address if different from 10 (a).Enter Last Name,First Name,and Middle Initial (Ml). 41.The certifying official shall sign and date the form,print his/her name,title,and telephone number. According to the Paperwork Reduction Act,as amended,no persons are required to respond to a collection of information unless it displays a valid OMB Control Number.The valid OMB control number for this information collection is OMB No.0348-0046.Public reporting burden for this collection of information is estimated to average 10 minutes per response,including time for reviewing instructions,searching existing data sources,gathering and maintaining the data needed,and completing and reviewing the collection of information.Send comments regarding the burden estimate or any other aspect of this collection of information,including suggestions for reducing this burden,to the Office of Managementand Budget,Paperwork Reduction Project (0348-0046),Washington, DC 20503. United States Department of Agriculture Rural Utilities Service Certification Regarding Debarment,Suspension,and Other Responsibility Matters -Primary Covered Transactions This certification is required by the regulations implementing Executive Order 12549,Debarment and Suspension,7 CFR Part 3017,Section 3017.510,Participants'Responsibilities.The regulations were published as Part IV of the January 30,1989,Federal Register (pages 4722- 4733).Copies of the regulations may be obtained by contacting the Department of Agriculture agency offering the proposed transaction. (1)The prospective primary participant certifies to the best of its knowledge and belief,that it and its principals: (a)are not presently debarred,suspended,proposed for Debarment,declared ineligible,or voluntarily excluded from covered transactions by any Federal department or agency; (b)have not within a 3-year period preceding this proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining,attempting to obtain,or performing a public (Federal,State,or local)transaction or contract under a public transaction;violation of Federal or State antitrust statutes or commission of embezzlement,theft,forgery,bribery,falsification or destruction of records,making false statements,or receiving stolen property; (c)are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal,State,or local)with commission of any of the offenses enumerated in paragraph (1)(b)of this certification;and (d)have not within a 3-year period preceding this application/proposal had one or more public transactions (Federal,State,or local)terminated for cause or default. (2)Where the prospective primary participant is unable to certify to any of the statements in this certification,such prospective participant shall attach an explanation to this proposal. State of Alaska,AIDEA/Alaska Energy Authority Organization Name Ronald W.Miller,Executive Director Name and Tipe of AtWi gs-of Signet :Date ' (This is not an official Government form.It has been prepared to assist and expedite the application process and is only intendedfor use in the RUS Grant Programs for Rural Communities with Extremely High Energy Costs.) orized Representative Draft:9/9/02 United States Department of Agriculture Rural Utilities Service ASSISTANCE TO HIGH ENERGY COST RURAL COMMUNITIES ENVIRONMENTAL PROFILE (To Be Completed by the Grant Applicant) The Rural Utilities Service (RUS)is required by the National Environmental Policy Act (NEPA) of 1969,as amended (42 U.S.C.4321),the Council on Environmental Quality Regulations (40 CFR Parts 1500-1508),and RUS implementing regulations (7 CFR Part 1794)to consider the potential environmental impacts resulting from providing Federal financial assistance.As an applicant for Federal financial assistance,your project will be subject to the requirements of RUS's Environmental Policies and Procedures (7 CFR Part 1794)prior to the release of any grant or loan funds. Please complete the following project profile to facilitate RUS's initial environmental review. RUS will evaluate the requested information as part of the final pre-award review for selected applicants. Part I:General Information 1.Describe the project as specifically as possible,i.e.new facilities to be constructed, capital purchases,equipment purchases or modifications to existing facilities. Sleetmute will have the following:New power house to replace the existing undersized and out- of-compliance power house at a new site.Pile foundation supporting foam panel kit building at 30 x 48 feet,three new generators,a new load sensing switch-gear,distribution system extension to new site,energy savings equipment,used oil blending,and automatic generator controls. Red Devil will have the following:1.5 miles of distribution system upgrades. A transmission intertie will connect Sleetmute to Red Devil and provide power to Red Devil residents.The 7.3-mile overland intertie will be a 3-phase 12.47kV system and a 0.5-mile crossing of the Kuskokwim River. 2.Is any part of your project located on land owned or under the jurisdiction of a Federal or state agency? Yes. If yes,please identify the agency(s). Draft:9/9/02 The river crossing is over a navigable waterway,and will require coordination with the State Department of Natural Resources and The Corps of Engineers. 3.Does any part of your project require review and or permitting by any Federal,State, regional,local,environment,or regulatory agency? Yes. If yes,please provide a list of required reviews and permits. The following Permits and Notifications are applicable to the RPSU projects. Alaska Department of Environmental Conservation,18 AAC 50.325.Operating Permits Alaska Department of Environmental Conservation,18 AAC 50.335,Alaska Division of Air and Water Quality,Air Quality Control Permit to Construct or Operate Fire Marshal EPA (CO2 emissions) US Army Corps of Engineers Review Coastal Zone Management Questionnaire US Fish and Wildlife -Endangered Species Act Section 7 Consultation Historic Preservation Act Section 106 Consultation Alaska Department of Transportation,Airport Clear Zone Form 7460-1 Has an environmental impact review (e.g.NEPA documentation,permits,agency consultations)related to the project been prepared? Reviews are progressing through the state and federal agencies at this time.As a result of the Environmental Review,"No significant impact”is anticipated for this project.HDL,a consultant for AIDEA/AEA,is completing the Environmental Review. If yes,please provide details.You may be asked to provide a summary or copy of the report as part of a pre-award review. For projects that do not yet have a review completed,the following provides AIDEA/AEA consultants guidance on how to complete an Environmental Review. The National Environmental Policy Act (NEPA)requires an environmental review for "major federal actions significantly affecting the quality of the human environment”(42 U.S.C 4332). This Environmental Review (ER)checklist is intended to provide a framework for AIDEA/AEA consultants to address NEPA requirements. After completing the checklist,either enough documentation will have been generated for the AIDEA/AEA to request a Finding of No Significant Impact (FONSI)from the lead federal agency, or the AIDEA/AEA will have determined if a full Environmental Assessment (EA)or Environmental Impact Statement (EIS)will be required for the project. 5.Is the proposed project part of a larger project?If yes,please describe. Draft:9/9/02 Yes.This project will be constructed as part of the Middle Kuskokwim Regional Energy Project (MKREP),which includes power houses,tank farms and retail fuel sales facilities. 6.Do you anticipate requesting additional Federal funding for subsequent phases of this project? Yes. If yes,please describe. Additional funding for the tank farm and retail sales facilities in MKREP will be requested through other federal sources. 7.Ifthe scope of your project is limited to the installation or replacement of equipment or facilities located within existing buildings or other structures and does not involve outside construction or ground disturbance,please skip to Part III.Otherwise continue with Part II Most rural power system upgrades projects will require some level of outside construction or ground disturbance. Draft:9/9/02 Part II:Environmental Considerations Provide the following information,as appropriate,for the construction of new facilities or modification of existing facilities. 1.The amount of clearing or excavation required.Indicate the estimated number of acres or length and width of the right-of-way if the project is linear (e.g.pipeline or power line). The alignment of the transmission intertie will be cleared for the overhead powerline.A corridor 7.3 miles long and approximately 40 feet wide is anticipated.Additional clearing will be required for guys.The right-of-way will be 80 feet wide. The power house in Sleetmute will have a pile foundation,which does not require excavation or fill.Fill is required only for drive and parking areas.In Sleetmute,the construction activities will include approximately 90'x 160'of clearing and a driveway fill area 35'x 105'x 2'deep. 2.The amount of dredge and/or fill in wetlands.Indicate the number of acres involved. There is and will be no dredge or fill in wetlands for the intertie and river crossing.Placement of utility poles is not considered fill.The Sleetmute power house site is currently under Jurisdictional Review with the Corps of Engineers.If it is determined that the area is wetland, the acreage of fill will be 0.085 acres. 3.Describe any pre-existing contamination of the construction site. There is and will be no pre-existing contamination of the construction site for all sites involved in this project. 4.Areas with special designation that may be impacted (e.g.National Forests,Parks, Trails) There is and will be no areas involved with special designation for all sites involved in this project. 5.Proximity of the project to floodplains,wetlands,coastal management zones,or coastal barrier resource areas. The finished floor of the Sleetmute power house will be constructed approximately 5 feet above grade to raise it above the 100-year flood elevation.Portions of the intertie will cross floodplain, wetland and water features.The pole spacing for the intertie is 250 feet;therefore,the feature being crossed is often not impacted along the intertie route because the line is overhead. All sites involved in this project are within a Coastal Zone and a Coastal Zone Management Questionnaire will be submitted to the State Department of Natural Resources. Part III:Contact Information Draft:9/9/02 Please provide the name,address,telephone number and email address of the preparer of this form and a contact person who can answer questions or provide additional information. Jolene John,Development Specialist Alaska Energy Authority 7 ; 813 W.Northern Lights Blvd.sO Anchorage,Alaska 99503 (907)269-3022 Phone (907)269-3044 FAX Email:jjohn@aidea.org (This is not an official Government form.It has been prepared to assist and expedite the application process and is only intendedfor use in the RUS Grant Programs for Rural Communities with Extremely High Energy Costs.) ***