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EUSE M. STEFANIK. House armen senvices ‘COMMITTEE ‘ee Congress of the United States one pee Bouse of Representatives ee Washington, BC 20515-3221 a Dr. Mark T. Esper vous erway esc Secretary of the Army cOmrTes On INTELLIGENCE 101 Army Pentagon ‘Washington, D.C. 20310-0101 December 5, 2018 Secretary Esper, New York’s 21° Congressional District is home to Fort Drum and the U.S. Army's 10" Mountain Division. Fort Drum is unique in being the only power projection platform with secure electricity in addition to being one of the few Army installations meeting the Army's objective of having a 14-day supply of fuel on-site. The Army’s long-term power purchase agreement with ReEnergy Holdings to provide Fort Drum with 100 percent of its electricity makes reaching this goal possible, Moreover, ReEnergy produces this electricity at the Black River plant that is located inside the fence line at Fort Drum. As you may be aware, prior to this contract, Fort Drum purchased electricity in the day ahead or spot market. At the time the contract was signed the price projections were below Energy Information Agency estimates for future costs. Ithas come to my attention that the Defense Logistics Agency has approached ReEnergy about renegotiating their contract and plan to meet on December 14", 2018. I found it particularly interesting to learn that DLA and Army officials informed ReEnergy that they will be unwilling, to discuss important topics including: (1) future energy pricing in New York (e.g. the social cost of carbon that is anticipated to impact utility rates as soon as 2020), (2) if'a change in Administration really affects the requirement for Fort Drum to buy electricity under the contract, and (3) the Army’s resiliency policy and related costs. Since the DLA does not intend to discuss these important considerations with ReEneray, we request answers to the following questions and request a meeting with the appropriate Army staff to ensure effective communication between all parties moving forward: ¢ Does the Army intend to change ReEnergy’s requirements contract for the supply of electricity at Fort Drum? If so, what changes are contemplated and why? Is the Army aware of the pending changes to the New York electricity market that will add a surcharge fee to the social cost of carbon? How has the Army factored in these pending changes when considering the future cost of electricity at Fort Drum and other installations in New York? «Is Fort Drum currently compliant with Army Directive 2017-07 with respect to lectricity? If Fort Drum did not have access to the ReEnergy’s Black River facility and the intertie system between Fort Drum’s two substations, would the installation be compliant with Army Directive 2017-07? * Does Fort Drum have an energy resiliency master plan as required by the FY 2019 National Defense Authorization Act? If the plan is complete, can you send a copy to my office? If it is not complete, when is completion expected? © If Fort Drum did not have access to the Black River generation facility and the intertie system, how much would it cost in both annual operation and maintenance as well as capital investment for Fort Drum to comply with Army Directive 2017-07? Is this cost estimate informed by the exercise at Fort Stewart which demonstrated that diesel ‘generation sets are an unreliable back-up source of electricity? * Does the Army have the authorization and funds to acquire the intertie between the two substations? Does the Army plan to comply with the legal limitations and notification requirements for the acquisition of real property? What type of funds would the Army use to acquire the intertie? ook forward to hearing from you and working on this important issue. Sincerely, Elise M. Stefanik Member of Congress

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