1. The Coastal Energy Project
Craig Dublanko
Finance Officer
Coastal Community Action Program
9/20/2018

2. Presentation Overview
Who We Are
Project Vision
How Did We Get Here…?
Current Project Status
Financing Package
Next Steps…
About The Turbines
Wind Energy Basics
Project Outcomes
Summary
9/20/2018

3. Who We Are Coastal Community Action Program
Over 100 Federal, State, Local and Private Grants
Annual Budget: $7.3 Million
Employees: 175+
Serving Grays Harbor and Pacific Counties in Washington State
9/20/2018

4. Project Vision Problem:
We Cap Our Annual Waiting List For LIHEAP At 300 Families
LIHEAP Funding Fluctuates
We Have Many Unmet Needs With No Funding
Solution: What Local Resources Do We Have That Can Supplement Existing LIHEAP Funds and Make Us Less Dependent On Federal and State Funds Long-Term?
In Our Case…We Have Wind
9/20/2018

5. Project Vision
Generate Wind Energy to Benefit Low-Income Families in Grays Harbor & Pacific Counties
Supplement Existing LIHEAP Dollars with Locally Generated Energy Dollars
CCAP Will Sell Power to Generate Supplemental Monies for Other Existing Programs As Well
Two 2.5 MW Class Wind Turbines Installed In Hills Above the Grayland Cranberry Bogs
9/20/2018

6. How Did We Get Here? Our Story… First Conversations, First Conference
Number Crunching
Bad Idea…Very Expensive, Low ROI
End of Idea.
…For Two Months
9/20/2018

7. How Did We Get Here? New Idea… Is It Possible To Raise The Money?
Studying, More Number Crunching
High ROI
High Community Benefit
Time For Some REAL Meetings
9/20/2018

8. How Did We Get Here? Met with Grays Harbor PUD
Met with Pacific County PUD
Met with Wind Energy Experts
9/20/2018

9. How Did We Get Here
Went To More Conferences To Learn More About Wind Energy
Found A Location, Moclips, WA
Need Real Wind Data To Sell Idea
9/20/2018

10. How Did We Get Here
Received Permission From Landowner to Site Wind Test Tower
December 2002—Received REACH Funding For:
Business Plan
Leased Wind Test Tower
This Was Huge For Us
9/20/2018

11. How Did We Get Here Installed 50 Meter Wind Test Tower
April 9-10, 2003
Hired A Wind Consulting Firm
Business Plan
Feasibility Study
Real “Critical Analysis”
9/20/2018

12. How Did We Get Here Found A New Site…Grayland, Washington
Great Landowner
Received Funding To Do A Second Study in 2004 – REACH II
Moved Old Test Tower and Leased a Second Tower for the New Site
9/20/2018

13. Current Project Status
Completed Installation in August of 2004
Wind Study Completed Fall of 2005
Currently Have Over 3 Years of Wind Data from the Site.
9/20/2018

14. Current Project Status
Land Secured
$10,400,000+ In Capital Secured
Wind Resource Verified
Avian and SEPA Steps Have Begun
Turbine Procurement Process is Just Starting
Working Out Logistical Issues
9/20/2018

15. Financing Package $5,000,000 State Line Item Appropriation
$2.7 Million (Approx.) From Bank #1
NMTC Deal
$2.7 Million (Approx.) From Bank #2
PTC & Accelerated Depreciation
$10.4 Million Leveraged Debt Free
9/20/2018

16. Next Steps… Secure Power Purchase Agreement Secure Turbines
Work Out Logistics
165’ Blades…
650 Ton Crane
Small Scale Procurement Of Towers
Much More…
Environmental, Power Marketing, Etc.
9/20/2018

17. About The Turbines 100 Meters to the “Hub” 50 Meter Blades
6 Second Rotation
Tubular Towers
Naselle Weighs 90 Tons
Built-in Crane
9/20/2018

18. Turbine Photos
9/20/2018

19. Turbine Photos
9/20/2018

20. Wind Energy Basics Cost: $2 Million/MW Installed
1 MW = Power For Approximately 700 Homes Annually
Wind Energy Has a Capacity Factor Averaging 30%
Minimum Wind Resource Is 6.0m/s at 50 Meters
9/20/2018

21. Wind Energy Basics Major Aspects Of A Project Turbines – 18 Months Out
Site Control and Long Term Lease
Environmental Issues
Power Purchase Agreement (PPA)
Financing Package
Transmission/Interconnect
9/20/2018

22. Wind Energy Basics Revenues – Three Areas Revenue Numbers
PPA – Local Utility
Production Tax Credit (PTC) & MACRS
Green Tags
Revenue Numbers
$50 PPA
$20 PTC
$5 Green Tags
$75/MW Hour
9/20/2018

23. Wind Energy Basics Expenses: Debt Service Operations & Maintenance
Land Lease
Wheeling & Metering
Firming
9/20/2018

24. Wind Energy Basics Returns:
Generally Wind Projects Debt Is Retired in Years
Life Span Of Turbines is Between 20 & 25 Years
Once Debt is Retired…Very Profitable
Maintenance
9/20/2018

25. Project Outcomes
Generate Over $600,000 annually in Family Emergency Assistance Dollars
Assist Approximately 1000 Households Annually
Generate Renewable Energy And Create a Model For Other Communities
9/20/2018

26. Project Outcomes
Create Economic Development on Coast of Grays Harbor County
Provide Renewable Energy Education for Coastal Visitors
9/20/2018

27. Summary
Many Years of Preparation and Perseverance Have Brought Us To This Point
Many People Have Stepped In And Made This Project Possible
5 Megawatt Project Will Be Developed by 2009
9/20/2018

28. Thank You Craig Dublanko Finance Officer, CCAP Aberdeen, Washington
(360) Ext. 126
9/20/2018