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Utilities report: $2.9M USDA grant for heat‑recovery boilers, turbine repairs and fuel procurement plans

Nome Common Council · July 28, 2026
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Summary

Utility staff told the council about a $2.9 million USDA high energy cost grant to install exhaust‑gas boilers to recover about 170 kW, a $400,000 microgrid assistance grant, plans to rehabilitate two wind turbines via insurance proceeds, and intention to procure about 2 million gallons of fuel (budgeting roughly $4.30/gal).

Utility staff provided a multi‑area update on capital projects and operations. Ken Morton and the NJUS team described a USDA high energy cost grant of about $2.9 million that will fund exhaust‑gas boilers to recover roughly 170 kilowatts from generator exhaust, with the first boiler installation expected to be operational in about a week and full commissioning by early fall.

Morton also said the utility has a Community Microgrid Assistance Program grant of about $400,000 to modernize switchgear and improve system resilience; further work includes insurance‑funded turbine repairs and rehabilitation of other turbines while crane work is already underway. On procurement, the utility said it is planning to buy about 2,000,000 gallons of fuel and budgeting at about $4.30 per gallon for planning purposes. NJUS staff added that generator and plant maintenance projects are progressing and that some projects are joint efforts with Norton Sound Health Corporation and DOT coordination for road and waterline projects.

Council members asked for projected fuel savings and impacts on diesel consumption from energy projects; staff said projections exist in the proposals and that the heat‑recovery project will reduce diesel consumption but not dramatically alter total annual fuel use. The report included operational updates and a multi‑year view of capital projects.