Whom ever this concerns..

 

 

On the following pages is a proposal for the use of the PCE-fund to implement alternate Energy sources in Rural Communities.

 

By thinking forward 20-25 years we can project some impacts.

 

It is likely that the cost of oil will continue to rise, with that the cost of electricity in the Rural Communities will also continue to rise.

 

Currently we have the PCE fund to offset that cost, however the historical trend shows an increasing amount needed for the Communities.

Here is a doc. that shows the historical trend on PCE

  Energy%20proposal%20PCEtracking-anyone.doc

 

 In some villages PCE is now paying for 70 % of the cost of electricity to run the Water & sewage facilities.

 

This amount is likely to increase.

 

How long will the State of Alaska be able to fund this ?

Currently, new W&S projects are based upon the cost of local electric rates and counts on the State paying the difference.

 

Proposal

 

 

To use the PCE Fund to offset some of the cost of implementing Alternate Energy Systems.

 

 

Consider the following:

 

The Water-plant in the Community of Ambler Ak..

 

Cost of operation (electricity) $ 26,828.00/year (2010 data).

 

Of this PCE was $ 18,944.00 (70 %) & City cost $ 7,884.00.00 (30 %).

 

A 10 Kw tracking Solar-PV array, can produce 14,004 Kwh = $ 7,226.00 worth of electricity in a year at the location of Ambler.

 

Installed directly on the plant, co-generating with the grid, it would save the State of Alaska $ 5,211.00 per year and the City of Ambler $ 2,015.00 per year (Oct. 2010 Rate).

 

This is at least $ 130,275.00 + 50,375.00 over 25 years..  $ 180,650.00 

 

In 2008 the figures would have been State $ 4,512.00 & City $ 5,865.00

For a total of $ 112,800.00 + 146,625.00 over 25 years..  $ 259,425.00

 

Estimate cost for a 10 Kw Tracking Solar PV array and installation $ 100,000.00

 

Simple direct payback: 13.8 years 

Payback using Diesel oil reference @ $5.00/G is 19 years, @ $10.00/G is 9,5 years.

 

Deliverables :

 

The PV-array would deliver approximately 23 % of the plants electric needs.

Diesel offset

 

1167 Kwh/ month gives 1167*12/13.5 = 1037 gallons per year

over 25 Years gives 25,933  gallons.

 

CO2 offset

 

25,933* 22.38 lb = 580,388 lbs

 

 

 

 

 

As the PCE amount will continue to increase as the oil price goes up, it seems pertinent to install a Solar PV array or some other alternate energy source to run the plant.

 

The State could allow the use some of the PCE fund to install alternate energy systems in the Rural Communities.

 

• The way this could be done is to allow funding up to the calculated PCE offset for each individual project over its lifespan or any number of years, say 10 years.

   

• This way the PCE would cease to be an obstacle in getting funding for alternate energy projects.

 

And the State of Alaska would subsidize the installation of clean alternate energy sources instead of subsidizing the use of Diesel oil.

 

Solar PV is used as an example, other sources of alternate energy may be more appropriate in other locations.

The size of the array have been selected to fall within AVEC’s allowable Co-generation limit of 13.5 Kw for Ambler.

 

However working with the utility in each community it could be possible to Co-generate up to 50 Kw so that possibly all local government buildings would be covered in a proposed project.

 

It is vitally important that we help our small Community Governments to function. And as this Co-generation proposal help the entire Community it seems the best way of implementing alternate energy systems.

It would also prove that we can build a Water/Sewer system that can function with less environmental impact.

If we loose our local rural governments it’s likely that the infrastructure will also fail.

 

All our Rural Communities could follow this model..

 

I believe it would be in the State of Alaska’s interest to seriously consider this.

 

Any input on this would be appreciated

 

Sincerely Ingemar Mathiasson