_______________________Presented by John Lyons and Steve DrouilhetInternational Wind-Diesel ConferenceMarch 9, 2011

Sustainability for Rural Sustainability for Rural AlaskaAlaska

in the 21in the 21stst Century Century Reliable, Efficient, Community Supported Electric Reliable, Efficient, Community Supported Electric

UtilitiesUtilitiesand the Successful Integration of Renewable and the Successful Integration of Renewable

PowerPower

Main Office in Anchorage, AlaskaWith branches in:

Alaska’s Rural Power SpecialistsMarsh Creek’s staff has extensive experience with both fossil fuel and renewable based generation in diverse locations.

• Fossil Fuel Generation – Marsh Creek develops and maintains power plants of all sizes, utilizing both liquid and gaseous fuels.

• Renewable Energy – Marsh Creek designs, constructs, and supports unique wind-diesel hybrid systems and small hydro.

• Hybrid Technologies – Marsh Creek is an industry leader in integrating renewable technologies with base load fossil fuel generation for stand alone, critical system/high-reliability

requirements.

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Marsh Creek Capabilities

Village Power GroupUtility Management Assistance• Monthly Customer Billings• Monthly Ledger and PCE Reports to AEA• Regulatory Commission of Alaska Annual Reports• DOE Annual EIN Reports• Fuel Farm Management Assistance• Fuel Loan Application Assistance• Rate Analyses

Operations and Maintenance • On Site Training and Migratory Field Service Technicians• Funding Search Assistance• LED Street Lighting• Renewable Resource Assessments• Integration Engineering, Project Design and Construction• Pre-Pay Electric Meters – Installation and Support

Reliable - Efficient - Renewable_______________________

Hybrid projects will not succeed without a well maintained diesel plant and a well managed electric

utility.

Integrating renewable resources has created hope for affordable energy. BUT…

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Keeping the Lights On

Kokhanok ElectricA Tribally Owned Utility

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1: Installed pre-pay electric meters and contracted for utility management assistance

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2: Increased the efficiency of their diesel plant & balanced their distribution system

3: Decided to integrate an available renewable resource with their diesel plant

when fuel hit $7.20/gallon in 2008

Steps taken to be sustainable, reliable, and more affordable for their customers

Located at the southern tip of Lake Iliamna, Kokhanok often faces flying fuel in when the Kvichak River is too low for the fuel barge.

• 2009 - Village Council and Lake and Pen Borough committed to develop the Class 6 wind resource

• Borough issued an RFP for the design and development of a hybrid wind project

High Penetration Wind-Diesel System

• Marsh Creek was awarded the engineering, procurement, and construction contract on July 11, 2009

• Timeline: May 2010 – Construction began

October 2010 - Ribbon cutting December 2010 – System testing

began_______________________

Vestas V17

• 90 kW wind turbines• 85 foot lattice towers• 56 foot rotor (swept

area)• Manufactured in 1991• Remanufactured by

Halus Power Systems - 2010

Wind Turbines Installed in Kokhanok

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Vestas V-17 Turbine Remanufacturing

• Paint blades black to assist in deicing

• Stainless steel bolts and fasteners

• One year full warranty (same as a new turbine)______________________

System Overview:• Two (2) Vestas V-17 turbines

(90kW) • Four (4) John Deere Gensets

(60kW, 115 kW, 160 kW, 160 kW)

• Grid forming inverter (200kVA)• Battery storage (336 kWh nominal)• Synchronous condenser (240kVAR)• Electric boiler and secondary load

controller (240 kVA)

High Penetration Wind-Diesel System in Kokhanok

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• Substantial plant controls upgrade.

• Remote operations monitoring and control.

• Wind system operator training.

• Five (5) year O&M support contract with Marsh Creek.

High Penetration Wind-Diesel System in Kokhanok

Total Project Cost: $1.94 M Funding: USDA RUS______________________

Project Benefits:

• Diesel fuel savings estimated at between 30% to 50% annually

• 2010 average cost of fuel $4.90/gallon

• Further heating fuel savings at school complex - 8,886 gals.

• The cost to produce power will go down as less diesel is consumed

High Penetration Wind –Diesel Power in Kokhanok

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Anchorage Office:2000 E 88th AvenueAnchorage, AK 99507Phone: (907) 258-0050Fax: (907) 279-5710

Contact:John Lyons, Division Manager Alternative Energy Systems

john.lyons@marshcreekllc.com