The Fire Island Wind project started production in September 2012 and supplies approximately 3% of Chugach’s retail load under a 25-year power purchase agreement with Cook Inlet Region Incorporated and its subsidiary Fire Island Wind LLC, who owns and operates the facility. Chugach Electric purchases all the power generated by Fire Island Wind and delivers it to Chugach retail members.

Fire Island is located west of Ted Stevens Anchorage International Airport in Cook Inlet and is home to Anchorage’s first commercial-scale wind farm. Fire Island Wind is comprised of eleven, 1.6 megawatt (MW) General Electric XLE wind turbines, which provide up to 17.6 MW of generation capacity and produces approximately 49,000 megawatt hours (MWh) per year. For reference, the average Chugach residential member uses approximately 6.3 MWh per year, so the project’s annual energy production is equivalent to more than 7,500 households.

The Fire Island Wind project has operated continuously since the fall of 2012 and maintains an annual capacity factor of approximately 32 percent. Fire Island is connected to Anchorage via a double circuit 34.5 kV sub-transmission line comprised of submarine, overhead and underground segments. The bulk of the transmission line was paid for with a $25 million grant from the State Legislature in 2008. This grant was specifically for the purpose of building a transmission line to Fire Island.

Wind power is a variable resource that is different from Chugach's other generation sources. Wind energy varies by the hour, day, and season. Energy production is generally higher in winter when winds are more consistent and the air is cold and dense. The Fire Island Wind project continues to provide Chugach with valuable experience in integrating variable energy resources into our generation portfolio. The knowledge Chugach has gained by integrating Fire Island Wind has increased our capability to integrate new renewable energy resources and diversify our generation portfolio while maintaining safe, reliable, and affordable electric service to Chugach members.

 For more information visit Fire Island Wind LLC.

In October 2011, the Regulatory Commission of Alaska approved a 25-year Power Purchase Agreement (PPA) between Fire Island Wind, LLC, a subsidiary of Cook Inlet Region Incorporated (CIRI), and Chugach Electric Association. Over the term of the PPA, Chugach pays a fixed price of $97 per megawatt hour ($0.097 per kilowatt hour) for power made available by Fire Island Wind generators.

The cost of Fire Island Wind is higher than some other sources of power in Chugach's generation portfolio. Fire Island Wind, like Bradley Lake, Cooper Lake, and Eklutna Lake hydroelectric generators, has no fuel cost and delivers energy at a consistent price for the duration of the 25-year power purchase agreement. This serves as a hedge against future increases in the price of natural gas and helps stabilize the cost of electric service to members. The annual cost to purchase Fire Island Wind energy averages approximately $4.8 million and saves approximately $2.4 million of fuel and operational costs for a net cost of approximately $2.4 million per year.

 The impact of this wind energy on an individual retail member’s monthly bill for each customer class is identified in the line item “FIW Renewable Energy Adjustment” on a per kWh basis. Members can view their monthly Chugach billing statement for the total cost impact of Fire Island Wind based on their actual monthly usage.

As a purchaser of Fire Island Wind power, Chugach earns a Renewable Energy Certificate (REC) for every megawatt hour of wind energy produced.

RECs represent the environmental and other non-power attributes of renewable electricity generation and are a component of all renewable electricity products, according to the Environmental Protection Agency.

The Fire Island Wind project is registered with North American Renewables (NAR) Registry and the associated RECs are created and tracked through NAR's accounting platform. The project has an approved tracking attestation and is listed with the Center for Resource Solutions. The RECs may be sold to Chugach commercial members to achieve their sustainability objectives or sold on national voluntary retail markets. Chugach applies the revenue from selling RECs produced by the Fire Island Wind Project to offset the price of purchased power. Chugach sought the ratemaking treatment in a 2013 filing with the Regulatory Commission of Alaska.

If you would like more information about Fire Island Wind RECs, or are interested in purchasing RECs, please see the Chugach Green Up information or e-mail the Chugach Green Up program at greenup@chugachelectric.com.