1. Alaska Municipal League 59th Annual Local Government Conference The Programs of the Alaska Energy Authority Energy and Empowerment for Your Communities Rural Power System Upgrade Program and Technical Assistance to Rural Utilities The Hotel Captain Cook - Anchorage, Alaska November 18-20, 2009

2. Alaska Energy Authority Rural Energy Group Rural Power System Upgrades and Technical Support Alan Fetters Project Manager 907-771-3000 1-888-300-8534 toll free http://www.akenergyauthority.org/

3. Alaska Energy Authority (AEA) implements rural power plant construction, renewals, repairs and technical assistance via the Rural Power System Upgrade (RPSU) program The program encompasses diesel powerhouses, alternative energy sources and distribution The RPSU program is some of the most important work we do at the AEA for rural communities The success of this program directly impacts the health, safety, economics and quality of life in rural communities Alaska Energy Authority RPSU Program

4. Every RPSU project is designed to meet the unique needs of each community and take advantage of locally available resources in order to reduce the cost of power The RPSU program supports approximately 120 independent rural electric Utilities that are not part of a cooperative like AVEC, AP&T or the North Slope Borough Diesel efficiency is one of the core values of this program along with long term reliability and safety Alaska Energy Authority RPSU Program

5. Powerhouse Project in Tuluksak Before After

6. Powerhouse Project in Chitina Before After

7. Electrical Distribution in Chignik and Napakiak

8. Raptor Safe Electrical Distribution

9. Alternative Energy in Ouzinkie

10. Alternative Energy in Larsen Bay

11. Alternative Energy in Pelican Existing Wooden Flume to be Replaced

12. Chitina Stream Gauging for Hydro Power

13. Technical Assistance Fort Yukon

14. kWh/gal kW 3456 C27 250 15.3 11.7 300 15.8 12.2 350 15.7 12.6 400 15.5 12.9 Fort Yukon Engine Selection Analysis

15. The previous graph shows the fuel efficiency of a "typical" CAT 3412 genset, a CAT 3456 (500+/-kW) genset and the C27 (619 kW) In simple terms, the fuel economy of the C27 is horrendously poor! Based on PCE data from FY 2007 to generate 3,123,000 kWh: – it will take approx. 248,000 gallons of fuel using a C27 – it will take approx. 201,500 gallons of fuel using a 3456 Estimated fuel savings of 46,500 gallon /year using the 3456 vs a C27 The fuel savings in a single year will pay for the purchase and installation of at least 2 each 3456 gensets Technical Assistance Fort Yukon

16. Emergency Assistance for Chignik

17. Cumulative Fuel Savings from RPSU Program

18. Inside the Typical Powerhouse

19. Typical Efficiency of an Older Powerhouse

20. Possible Rural Power System Efficiency Upgrades

21. Potential Efficiency of a New Powerhouse

22. With new modern electronically controlled engines, automated paralleling and dispatching switchgear we typically see a 20-25% increase in diesel efficiency or kWh generated per gallon of fuel consumed If heat recovery is added to the system there is potential for another 10-15% saving in space heating This can equate to a nearly 30-40% in total fuel savings. The payback improves if you consider the reduced maintenance costs associated with a new facility Alaska Energy Authority

23. Routine maintenance and technical support is required to keep these power systems running reliably and efficiently. The next graphs convey what can happen to a new powerhouses efficiency without proper opeeration and maintenance Alaska Energy Authority

24. Challenges in Maintaining Efficiency New powerhouse 2000. Suggests inconsistent maintenance, sporadic repairs and generator sets out of service for long periods

25. Challenges in Maintaining Efficiency New powerhouse 2003. Suggests low level of maintenance without timely repairs, overall engine efficiency decline and system out of tuned

26. Training and Routine Maintenance is Important The RPSU program includes power plant operator training at AVTEC in Seward and training on site during powerhouse construction or renovation

27. Akiachak Powerhouse Before After

28. The community of Akiachak has realized efficiency improvements that has resulted in significant fuel savings from an AEA RPSU project completed in the fall of 2008 AEA partnering with the Denali Commission and the community replaced the old diesel powerhouse with a new modern powerhouse as part of AEA’s Rural RPSU program The electric utility is Akiachak Native Community Electric Co. Akiachak Efficiency Improvements

29. Akiachak Powerhouse Improvements The above information was gathered from the Utility’s FY2008 & FY2009 Power Cost Equalization (PCE) reporting 14.62Avg kWh produced per gallon of fuel consumed in FY2009 after the project 10.62Avg kWh produced per gallon of fuel consumed in FY2008 before the project 4kWh per gallon increase in efficiency or 37.6% increase! 165,261Gallons of fuel consumed at powerhouse in FY2008 before the project 124,555Gallons of fuel consumed at powerhouse in FY2009 after the project 40,706Gallons of fuel saved FY 2009 or 25% reduction!

30. Akiachak Powerhouse Improvements The above information was gathered from the Utility’s FY2008 & FY2009 Power Cost Equalization (PCE) reporting $495,142Cost of fuel consumed at powerhouse in FY2008 before the project $386,689Cost of fuel consumed at powerhouse in FY2009 after project $108,453Avoided fuel expenditures in FY2009 or 22% savings! 1818Estimated tons of CO 2 from powerhouse in FY2008 before the project 1370Estimated tons of CO 2 from powerhouse in FY2009 after the project 448Estimated tons of CO 2 emission diverted in FY2009 or 25% reduction!

31. Akiachak Heat Recovery The above information was gathered from the powerhouse SCADA system and PCE 15,000Equivalent gallons of fuel saved at the municipal water treatment system in FY2009 $57,900Estimated avoided cost of fuel in FY2009 at a current cost of $3.86 per gallon 165Estimated tons CO 2 emission diverted in FY2009!

32. Akiachak Combined Powerhouse & Heat Recovery Savings from reduced maintenance was not included and the cost of the distribution portion of the project was not removed and would have a positive effect on the payback 55,706Gallons of fuel saved per year $215,025Avoided cost of fuel per year at a cost of $3.86 per gallon 613Estimated tons of CO 2 emissions diverted in FY2009! $2,700,000Design and construction cost of new powerhouse and distribution system 12.5Years estimated simple payback at a the current fuel cost of $3.86 per gallon

33. Akiachak Powerhouse RPSU technician training and working with the local Akiakchak operators Interior of the new powerhouse

34. Proper design and construction considering efficiency, reliability and maintainability Analyzing the community electrical load and matching it to the proper generators Automated paralleling load sensing switchgear with modern a Supervisory Control And Data Acquisition (SCADA) system Heat recovery from the new powerhouse to the community’s municipal water system Factors Contributing to the Efficiency Gains

35. Automatic Paralleling Load Sensing Switchgear

36. Remote Monitoring Supervisory Control and Data Acquisition

37. Automatic Load Sensing Switchgear Modern generator control

38. Waste Oil Injection Injection waste engine oil back into the fuel

39. Powerhouse Fire Protection Fogging water mist system

40. Heat Recovery & Receptor Equipment Fuel tank with heat recovery loop to allow use of #2 fuel in the winter Heat recovery system is expected to meet all the clinics needs BTU meter

41. Remote Monitoring of Heat Recovery Heat recovery monitoring and metering to the municipal water system

42. An important component of the RPSU program is ongoing technical assistance which includes on call technicians and remote monitoring of the powerhouses with a supervisory control and data acquisition system (SCADA) Alaska Energy Authority RPSU Program

43. Diesel and Hydro Integration

44. Remote Monitoring Camera installation Satellite connectivity

45. Remote Monitoring Cameras

46. Alaska Energy Authority Rural Energy Group Rural Power System Upgrades and Technical Support Alan Fetters Project Manager 907-771-3000 1-888-300-8534 toll free http://www.akenergyauthority.org/

47. Alaska Energy Authority RPSU Program