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Al Alask aska a Vi Vill llage age Ele lectric tric Co Coop opera erative, tive, In Inc. c. Meera Kohler President and CEO May 27, 2011 53 villages 160+ diesel generators 22,500 population 500+ fuel tanks Would


  1. Al Alask aska a Vi Vill llage age Ele lectric tric Co Coop opera erative, tive, In Inc. c. Meera Kohler President and CEO May 27, 2011

  2.  53 villages  160+ diesel generators  22,500 population  500+ fuel tanks ◦ Would be the 4th largest city in Alaska  5 million+ gallons after fuel burned Anchorage, Fairbank  7,600 services s and Juneau  80 Anchorage-based  94% Alaska Native employees  48 power plants  95 Village technicians  9 wind systems serving 12 villages

  3.  AVEC is committed to improving operational efficiencies and reducing the cost of fuel for its members  To achieve those goals we are installing: — New fuel efficient power plants — Interties between communities — Wind generation in available locations

  4.  Reduc duce e die iese sel l use se by y 25% % in in 10 Ye Year ars — 1,250,000 gallons (2010 – 213,000 gallons)  Reduc duce e power wer pla lants ts by y 50% % in in 10 Ye Year ars — Interconnect another 24 villages (1 down, 23 to go)  Reduce duce non-fu fuel el costs ts by 10 y 10% — Plant costs, depreciation, interest… (done!)

  5. • Ave verage rage 2002 1.29 • Ave verage rage 2003 1.47 +. +.18 • Ave verage rage 2004 1.98 +. +.51 • Ave verage rage 2005 2.26 +. +.28 • Ave verage rage 2006 2.26 • Ave verage rage 2007 2.93 +. +.67 • Ave verage rage 2008 4.55 +1 +1.62 • Ave verage rage 2009 3.02 • Ave verage rage 2010 3.30 • Expec pected ted 2011 4.50 Increase ase 2002 - 2010 $2.01 +2 +256%

  6. $0.000 $0.250 $0.500 $0.750 $1.000 $1.250 $1.500 $1.750 $2.000 $2.250 $2.500 $2.750 $3.000 $3.250 $3.500 $3.750 $4.000 $4.250 $4.500 $4.750 $5.000 1 … $0.354 1 … $0.515 1 … $0.578 AVEC System-wide Average Fuel Prices 1 … $0.649 1 … $0.718 1 … $0.779 1 … $0.968 1 … $1.330 1 … $1.601 1 … $1.610 1 … $1.565 1 … $1.296 1 … $1.203 1 … $0.842 1973-2009 1 … $0.980 1 … $0.964 1 … $1.033 1 … $1.097 1 … $1.190 1 … $1.224 1 … $1.259 1 … $1.208 1 … $1.215 1 … $1.281 1 … $1.263 1 … $1.088 1 … $1.216 2 … $1.367 2 … $1.389 2 … $1.160 2 … $1.350 2 … $1.940 2 … $1.950 2 … $2.270 2 … $2.930 2 … $4.590 2 … $3.020

  7.  80 80 10 100K 0KW W ma machines nes wo would displace lace 1,250,0 ,000 ga gallons  22 units s now w operation ational al  12 schedul duled ed for commissioni sioning ng in 2010-11 11  In 2010, Wi Wind Turbi bines nes accounted nted for ◦ 3.7% 7% of gross oss generat ration ion ◦ Displaced splaced 213,0 ,079 79 gallo lons s of fuel l ◦ Worth orth $7 $710,76 10,763. 3.

  8.  39 vi villages lages are in Class ass 4+ wi + wind nd regi gimes mes  A diesel esel ge generator erator yield lds 14 kWh/gallon /gallon  One e 100-kW kW turbi bine e could ld disp splace lace 15,000 ga gallons/yr llons/yr (Class ass 6-7 regi gime) me)  Three ree units its = = 47,000 ga gallons/yr lons/yr  Ave verage rage vi village lage uses s 113,000 ga gallons/yr lons/yr

  9. Curre rrent t Chal allenges lenges to Wi Wind d Deve velop lopment ment • Remote lo locatio ions • Comple lex x lo logi gistic ics • Dif iffi ficult ult envir ironm nmenta ental l condit itio ions ns • Sm Small ll ele lect ctri ric c lo loads • Poor soil ils • Comple lex x founda dation ions • Turbul ulenc ence • Low temper erat atur ures/I es/Icing ing • Lim imit ited turbin ine e optio ions s for remote vil illa lage ges

  10. AVEC Wind Projects ects 2003 2003 Selawik 2006 2006 Kasigluk – with tie line to Nunapitc tchuk 2006 2006 Tokso sook ok Bay - wi with tie lines to Tununak k and N Nightmute te 2008 2008 Hooper er Bay and Savoonga ga 2009 2009 Gambell and Chevak in constru tructi ction on, commissioning g in process ss in 2 2010 2009 2009 Mekory oryuk erected, ed, commissi sion oning g in 2 2010 2010 2010 Quinhagak - in constru ruction tion 2010 2010 Shakto tooli olik and Toksook ok (one more turbine) e) 2011 2011 Emmonak/ k/Al Alaka kanuk Kasigluk #11

  11.  Meteorol rologic ogical al towers are collecting ing info formation ion in several location ons  Evalua uation tion of s f sites fo for fu future fu funding g in several more western n Alaskan n village sites is underway ay  Denali Commission ion and RUS fu funding g is declining ng  State fu funding g is competitiv tive e and challeng nging ing to administe ster

  12. Wi Wind d Technicians hnicians Ar Are Being ng Tra rained ed

  13.  One new, larger Higher Efficiencies power plant will be more efficient than two, smaller, ol der power plants Teller Brevig Mission Less fuel — consumed Reduced — maintenance and operating costs

  14. • Lower Fuel Costs • Wind and Tidal Energies may be – Renewable Available resources can produce energy – An intertie opens without diesel fuel up possibilities for locations of – Less diesel fuel renewable energy consumed = lower fuel cost charges resources

  15.  The main power plant can be built to power multiple villages  A modular standby power plant in a connected village can power both villages during outages, if necessary  New power plants are typically up to 35% more fuel efficient than most current plants

  16. Fewer Fuel Deliveries Lower Fuel Costs  Larger tank farms =  Deliveries made to lower storage cost one location instead of per gallon two  Lower maintenance  Safer Environment and operating costs — Fewer opportunities per gallon for fuel spills

  17.  Other benefits may include: — Telephone service could be more easily extended to individuals along the route by attachment to the poles — Availability of electric service along the route could increase the land value

  18.  Brevig vig Missio ion n – Teller ler  St. Mary’s - Mt. t. Villag age e  St. Mary’s - Pilot ot Statio ion  St. Micha hael el – Stebbin ins s  New w Stuyah yahok k - Ekw kwok k  Togiak ogiak - Twin in Hills ls  Noo oorvik ik - Kiana na – Selawik lawik  Ambler bler - Shung ungna nak k – Kobuk uk  Upper er Kobuk buk - Lower wer Kobuk uk

  19. St. Mary’s to Pilot Station New Stuyahok to Ekwok

  20. Stebbins to St. Michael Togiak to Twin Hills- 2 possible routes

  21.  We must connect communities  We must improve efficiencies  We must harness renewables  We must train local people  We must use less diesel fuel  We must each use less energy

  22. Meera Kohler Alaska Village Electric Cooperative, Inc. May 27, 2011

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