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HomeMy WebLinkAboutKingcove Oldharbor Hydro 6 of 13 1982SECTION IV LARSEN BAY SUMMARY INTRODUCTORY NOTE: Presented in this section is the Summary from Volume D-- Feasibility Study for Larsen Bay Hydroelectric Project. Included for easy reference are several items from that report: Exhibit VI-1, photographs of the project area; Figure VII-3, Projected Monthly Generation, Demand, and Usage; and selected project drawings which include Plate I, the General Plan, Plate III, the Penstock Plan, Profile, and Details, and Plate V, the Powerhouse Plans and Sections. References to figures, exhibits, and plates in the summary presented here refer to items in Volume D, the full feasibility report for the Larsen Bay Hydroelectric Project. NBI-432-9526-SLB IV-1 LARSEN BAY SUMMARY A. GENERAL Several prior studies of alternative means of supplying Larsen Bay with electrical energy had recommended a hydro- electric project as the best available source. As a direct result of these prior studies and recommendations, the Alaska Power Authority has authorized a feasibility study to investigate in detail the hydropower potential in the vicinity of Larsen Bay. This report summarizes the activities conducted for the feasibility study. These activities included projections of energy needs, formulation of a hydroelectric project and an alternative base case to meet the electrical energy needs of Larsen Bay, detailed analyses of economic feasibility, and preparation of an environmental assessment of the effects of the project. The results of the study indicate that a 270 kilowatt (kW) hydroelectric project can be constructed at Larsen Bay, that the project is considerably more economical than the base case alternative, and that the environmental effects of the project are minor. The total cost of the proposed Larsen Bay hydroelectric project is $2,821,400 in January 1982 dollars. The project could be implemented and on-line by January 1, 1985, if a decision to proceed with the project is made by December 1982. During an average water year, the proposed project would be capable of supplying more than 85 percent of the electrical needs and about 14 percent of the space beating needs in the project area. The equivalent savings in diesel fuel in the year 2001 would be about 69,000 gallons for direct electrical demand and 16,000 gallons for space heating. NBI-432-9526-SLB IV-2 B. AREA DESCRIPTION The village of Larsen Bay is located near the junction of two fjords, Larsen Bay and Uyak Bay, on the northwest coast of Kodiak Island. Shelikof Strait, separating Kodiak Island from the mainland, lies 14 miles to the northwest and the city of Kodiak lies 60 miles to the east. The selected hydroelectric power site is on Humpy Creek, a small tributary of Larsen Bay fjord about one mile south of town. The general project area and the proposed project site are shown on Plate I of Appendix A. C. POWER PLANNING Power planning for the Larsen Bay project was conducted using standards set forth by the Alaska Power Authority. Previously recommended potential hydroelectric sites were investigated and the project area was surveyed to evaluate potential new sites. After detailed study, a project was selected and then compared with a base case plan. Present energy demands for Larsen Bay for direct electrical uses and space heating were estimated and future uses in these categories were projected. The projections were based on forecasts of increases in the number of customers and increased usage rates. Population growth and employment, legislation and other political influences, life style changes, and other factors ca❑ influence future energy demands but they were not explicitly treated. The period of economic evaluation used was 53 years, which starts in January 1982 and extends for the 50-year life of the hydroelectric project after the estimated on-line date of January 1985. The energy demands for Larsen Bay were increased for 20 years starting in January 1982 and extending through NBI-432-9526-SLB IV-3 December 2001. The demands were the❑ held level over the remainder of the economic evaluation period. For the proposed hydroelectric project, it was assumed that the first priority of use for the energy produced would be the direct electrical needs of Larsen Bay, and any remaining energy would be used for space heating. D. DESCRIPTION OF RECOMMENDED HYDROELECTRIC PROJECT Hydroelectric power plants transform the energy of falling water (head) into electrical energy. Generally, a hydroelec- tric power project consists of a dam to produce the head or to divert stream flows so that they can be passed through a turbine -generator system to produce electric power. In the case of the recommended Larsen Bay Hydroelectric Project, a low weir will act as a dam to divert water from Humpy Creek through an inlet structure and into a penstock (conveyance pipe). The penstock will be 27 inches in diameter and will carry the water about 2700 feet to the powerhouse, where it will be passed through the turbine -generator system to produce electric energy. The powerhouse will have the capacity to produce 270 kw of electrical power. A transmissio❑ line will be constructed to transmit the power generated at the plant to Larsen Bay. Access to the powerhouse facilities will be provided by building a short length of new road to link up with an existing road that extends to an existing and abandoned dam near the site of the new powerhouse. The transmission line will follow the alignment of the new access road and the existing road to Larsen Bay. The general plan and features of the proposed project are presented on Plates I through VII of Appendix A. Photographs of the project area are presented in Exhibits VI-1 through VI-4 at the end of Section VI and in the Environmental Report, Appendix E. NBI-432-9526-SLB IV-4 Under the recommended plan, energy generated by the hydro- electric plant will have to be supplemented by diesel genera- tion. Larsen Bay does not currently have a central diesel generating plant and the plan will therefore require the construction of diesel facilities for standby and backup power. The hydroelectric generation will be adequate to meet the direct electrical needs of Larsen Bay during most of the year; however, from December through March diesel will be needed to supplement the hydroelectric generation. A new electrical distribution system will also be required since none currently exists. During an average water year the proposed hydroelectric project will be capable of supplying more than 90 percent of the electrical needs of Larsen Bay and approximately 20 percent of the space heating over the life of the project. Average annual energy production from the hydroelectric plant will be 1.09 million kilowatt-hours (kWh) and the average annual plant factor will be about 46 percent, which means that the plant is expected to generate about 46 percent of the energy that it could produce if the turbine -generator unit was operated continuously at full capacity. E. BASE CASE PLAN The base case plan formulated to meet the projected energy demands of Larsen Bay assumed that the use of individual existing diesel generating plants would be discontinued and a new centralized diesel generating plant would be constructed. Because of apparent economic benefits, it was assumed that the proposed system would also incorporate waste heat recovery that would be used for space heating. The possibility of installing wind generation equipment was also considered, and was found to be economically viable. NBI-432-9526-SLB IV-5 It was assumed that the diesel system for the 1982 base case would require about 51,500 gallons of fuel oil per year; this amount was expected to increase over the next 20 years to more than 80,000 gallons per year. Waste heat recovery was expected to displace the use of 17,000 gallons of fuel oil per year by the year 2001. The wind generators are expected to displace about 12,000 gallons of oil by 2001. F. ECONOMIC ANALYSIS The economic analysis was based on the Alaska Power Authority criteria that compare the net present worth of the proposed base case costs to the net present worth of the pro- posed hydroelectric project costs using specified real price escalation and discount rates. Net present worth is the present value of the costs that would be incurred over a comparable economic evaluation period of 53 years for both projects. The present worth of the base case only, that is, diesel generation, is $7,532,100. If this cost is reduced by the savings that could be realized from the installation of waste heat recovery, the present worth is $6,725,100; further reducing this cost by the benefit obtainable from wind generation yields a present worth of $6,432,000. All costs except the cost of the hydroelectric project and its diesel supplement were considered as adjustments to the base case. The cost of the space heating credit was added to the base case because it represents a benefit that would not be realized if the base case plan was implemented. The next present worth of the base case after all adjustments is $7,348,600. For the proposed hydroelectric project, the present worth of the costs, is $5,941,700. A comparison of this net present cost with the base case net present costs indicates that the NBI-432-9526-SLB IV-6 recommended hydroelectric project is considerably more economical than the alternative base case. An additional measure of project feasibility is the bene- fit/cost (B/C) ratio. The B/C ratio is the present worth of the project benefits divided by the net present worth of the project costs. For this project, the B/C ratio for the base case only is 1.268. The B/C ratio after adjustment for waste heat recovery is 1.132; after additional adjustment for wind generation, the B/C ratio is 1.067; and after all adjustments, the B/C ratio is 1.237. These B/C ratios indicate that the proposed hydroelectric project is highly feasible. G. ENVIRONMENTAL AND SOCIAL EFFECTS The environmental study results indicate that the effects of the project will be minor due to the limited scope of the project activities, the inability of salmon to spawn above the old diversion dam on Humpy Creek, the abundance of alternative areas available for trapping, hunting, and general recreation, and the availability of measures to mitigate potential effects from the construction and operation of the facilities. Minor socioeconomic benefits will occur as a result of project construction and maintenance and cheaper electric rates made possible by the project. Additional environmental studies do not appear to be warranted unless regulatory agencies or local residents express additional concerns. H. CONCLUSIONS AND RECOMMENDATIONS The studies conducted for this report indicate that the proposed 270 kW hydroelectric project is feasible and that the energy demands of Larsen Bay are sufficient to utilize the hydroelectric plant's planned capacity. The proposed project is a more economic means of meeting the area's future electric needs than the base case diesel alternative. Environmental effects of the proposed project are minor. NBI-432-9526-SLB IV-7 In view of these findings, it is recommended that actions be initiated to implement the project. NBI-432-9526-SLB IV-8