Loading...
HomeMy WebLinkAboutScammon Bay Prelim Evaluation of Small Hydro Power Development at Scammon Bay, AK 1980DATE SCA 001 ISSUED TO ,, PRELIMINARY EVALUATION OF SMALL HYDROELECTRIC POWER DEVELOPMENT AT SCAMMON BAY, ALASKA ALASKA DISTRICT CORPS OF ENGINEERS DECEMBER 1980 SUMMARY Scammon Bay is a village of approximately 200 people located on the Kun River near the Bering Sea. The village currently derives all of its electrical energy from diesel fired generation. The Corps of Engineers was authorized by Congress to conduct feasibility studies for the development of small hydroelectric power facilities at isolated villages throughout Alaska. During the preparation of the feasibility studies, the Alaska Power Authority requested an evaluation of hydroelectric power at the community of Scammon Bay. This preliminary analysis is in response to tnat request. This report includes a preliminary engineering, economic, and financial evaluation of possible development of hydroelectric power on a small stream near Scammon Bay. The estimated cost is $1,010,000 and the project woulo have a peak capacity of 150 killowatts. Based on financial criteria estaolishea by the Alaska Power Autnority, (30 year pay-oack, 10 percent financing) the project would produce energy for approximately 31¢/kWh during the first year with very little increase in future years. Tnis figure includes interest, amortization, operation, and maintenance. The current figure for diesel fired generation is approximately 30¢/KWh, which is expected to double in 10 years. Neither of these figures includes administrative overhead, taxes or insurance. Although hydroelectric generation is initially more expensive, by the second year of operation it should prove to be less expensive than diesel and by year 2000 hydroelectric power would be less than one fourth as expensive as diesel. This is based on an assumed inflation rate of 7 percent and diesel fuel escalating at 3.5 percent above inflation. INTRODUCTION COMMUNITY PROFILE GENERATION FACILITIES ENERGY DEMAND HYDROLOGY DESIGN FEATURES ENVIRONMENTAL IMPACTS COST ESTIMATE ECONOMIC ANALYSIS FINANCIAL ANALYSIS TABLE OF CONTENTS Page Number l 2 5 6 9 14 18 19 21 24 INTRODUCTION AUTHORIZATION The Corps of Engineers• small hydropower study was authorized by Congress in 1976. The small hydropower study was undertaken to determine the feasibility of installing small hydroelectric systems in isolated villages throughout Alaska. This feasibility study is being conducted as part of that larger study. SCOPE OF WORK This report is limited in scope to the analysis of hydropower at Scammon Bay. Other alternatives are currently being studied by the AlasKa Power Authority. The information proviaed in this report is preliminary; accurate measurements of the instream flow have only been made since late July 1980. The proposed plan presented herein is oased on the best information available; however, due to the limited data, the conceptual design and resulting cost estimate are subject to change as additional information becomes available during 1981. Project size may be reduced if stream-flow is less than predicted. BACKGROUND TO CURRENT STUDIES In August 1979, the Alaska Power Administration, in conjunction with the Alaska Village Electrical Cooperative (AVEC), visited 15 potential hydropower sites located near villages served by AVEC. Of those sites visited, Scammon Bay appeared to be the most feasible hydropower project. As a result, the Alaska Power Administration recommended that the Corps of Engineers pursue the feasibility evaluation under its small hydropower authorization. THE STUDY The primary objective of this study is to determine the feasibility of hydropower development at Scammon Bay and, if feasible, assist in implementing the project at the earliest possiole date. The neea to reduce the bush communities dependence on diesel fuel is imperative to their future well being. Federal funds to construct this project would require Congressional authorization under existing regulations; however, Congress may change this procedure and provide the Corps of Engineers a continuing authority to build small hydropower projects. Pending legislation includes author- ity which would allow projects up to 25,000 kW capacity to be constructed by the Corps of Engineers. If this legislation passes, action could be taken to construct economically feasible and environmentally acceptable small hydropower projects in a timely manner. COMMUNITY PROFILE HISTORY Scammon Bay is located to the north of the Askinuk Mountains in the· Yukon-Kuskokwim Delta on the south bank of the Kun River, one mile from the Bering Sea (Plate 1). In earlier times the village located at Scammon Bay was known in Eskimo as "Mariak." The village was later named after the nearby bay which honors Captain Charles M. Scammon, who served with the Western Telegraph Expedition from 1856-1867. The name Scammon Bay became commonly applied to tne village in 1951 when a post office of that name was established. SOCIO-ECONOMICS Transportation Scammon Bay is accessible by air, water, and winter trail. Transport fuel and bulk supplies are barged to the community from June to Septemoer. The Kun River serves approximately 60 privately owned noats, providing transportation to fish and berry camps. A 2,800-foot gravel airstrip north of the city enables daily scheduled commercial air service. Principal air carriers include Sea Airmotive, and Wien. Scammon Bay has approximately one mile of gravel road for use by the few vehicles in town. Snowmachines, owned by nearly every household in the community are the major form of transportation in winter. Fishing The primary economic activity of Scammon Bay occurs during the summer when most residents are involved in commercial fishing. As of 1978, the Yukon District had issued 40 gill net permits to Scammon Bay residents. commercial species include salmon and to a lesser extent herring. Herring are anticipated to become a larger portion of the cash economy with the investment by the Alaska Renewable Resource Corporation in the construction of approximately 10 herring fishing boats at Scammon Bay. In addition to these commercial catches, non-cash landings include whitefish, blackfish, needlefish, smelt, and tomcod. Trade and Services vear-rouna employment in the city is available through local government and trade. In the trade sector, employers include the airport, four minor stores and the general store. Some residents also sell handmade grass baskets or ivory-carved jewelry and other handicrafts. Government Scammon Bay was incorporated as a second class city in 1967. The seven member city council selects the town mayor and administrator. In aoaition, the city ewploys a clerk, secretary/treasurer, police and 2 maintenence personnel. These positions are funded through the Comprehen- sive Employment Training Act (CETA) program. Other government supported employment sources include the Bureau of Indian Affairs school, the Rural Parent-Child program, and seasonal firefighting for the Bureau of Land Management. Subsistence Activities Income from the aforementioned activities is supplemented by subsistence hunting and gathering and to some extent, assistance payments. In addition to fish, residents of the area hunt walrus, seal, geese, swans, cranes, ducks, loons, and ptarmigan. In the fall, various types of berries such as blueberries, cranberries, and salmon berries are harvested. Population In 1979 the population of Scammon Bay was 191. Census figures for 1970 show that the population is 100 percent native with median ages of 17.5 and 16.0 for males and females, respectively. Table 1 shows population figures for Scammon Bay. The reported figures indicate an annual growth rate of approximately 2 percent. Year 1939 1950 1960 1970 1979 Employment Overview TABLE 1 HISTORIC POPULATION OF SCAMMON BAY Population 88 103 115 166 191 Table 2 shows employment in Scammon Bay for the year 1979. 3 TABLE 2 SCAMMON BAY 1979 EMPLOYMENT BY INDUSTRY Part Time Year Round Gillnetting 40 _!/ BLM * CETA 11 Airport l BIA School 9 Retail 8 Parent-Child Program 2 Handicrafts * TOTAL 40 31 Source: Alaska Department of Community and Regional Affairs 1/ Based on number of gillnet permits only. Actual participation is greater. *Number Unknown 4 GENERATION FACILITIES Prior to 1974 Scammon Bay was not associated with any formal electric utility system. During this period most households either utilized private generators or were not electrified. Like most bush communities, the local Bureau of Indian Affairs (BIA) elementary school had its own generating capacity. As a result of the informal system, electric consumption records from this era are unavailable. In 1974, Scammon Bay joined the Alaska Village Electric Cooperative Inc. (AVEC), a nonprofit electric cooperative membership corporation. AVEC is the State's largest single supplier of electricity to rural areas and provides power to 48 communities throughout western Alaska. The average population of AVEC supplied communities is approximately 300. All AVEC power is diesel generated. The utility's diesel units at Scammon Bay are summarized below. 1 -50 kW, 1,200 rpm, KATO (1971) 1 -75 kW, 1,200 rpm, KATO (1971) 50 kW 75 kW 125 kW AVEC is currently in the process of modifying this capacity by boosting each unit from 1,200 rpm to 1,800 rpm. The total capacity of the system will thus be increased to about 175 kW (105 kW and 70 kW). In addition to AVEC generation, the local BIA elementary school and high school maintain standby generators. The specifications of these units are summarized here. High School BIA School 1-100 kW, 1-35 kW, 1-25 kW, Newage Stawford Kohler Kohler 100 35 25 160 kW The recently acquired high school generator presently has very few hours of operating time. The BIA units vary from 10 to 15 years in age. Presently both schools are customers of AVEC, but the school generating capacity is often needed for standby purposes. 5 ENERGY DEMAND HISTORIC: Since JOlnlng AVEC, Scammon Bay has participated in the cooperative's record keeping system. Unfortunately, records were not kept dilligently in the early years, resulting in incomplete and missing forms. In 1979 AVEC generation for Scammon Bay totaled 269,310 kWh with a peak load of 78 kW. The total energy generation at Scammon Bay is unknown. The BIA's generators are known to operate a significant proportion of the time, but no records of output have ever been kept. For the purpose of this report, it has been estimated that the BIA generator produces an additional 15% above AVEC' generation. This would increase the combined 1979 AVEC and BIA energy generation to 309,700 kWh. In adaition to the BIA school (three classrooms) and new high school (6,500 sq. ft.), the community has a variety of public and residential structures which comprise the electricity demand of Scammon Bay. AVEC estimates that the recently constructed high school, will add approxi- mately 35 kW to the system's peak demand. Public buildings include the community center, the traditional council building, armory, clinic, post office, Luther Aguchak Memorial Building, and two churches. Four stores, several warehouses, a movie theater, and the AVEC building are also located in the city. There are approximately 45 single family dwellings in Scammon Bay; most are of wood-frame construction. Of these, 15 were built in 1970 by th~ Alaska State Housing Authority. In all, about 60 structures are served by AVEC. AVEC's total dependence upon diesel generation has resulted in ever spiraling costs in recent years. Tne cooperative's base rate currently stands at 40.8¢ per kWh. The extremely complicated accounting and financing practices of this utility make the derivation of Scammon Bay's generating costs difficult. The rate quoted above for instance, applies to the first 75 kWh of residential use, a category many households fall into. Consumption above this level is charged at about 75 percent of this rate. Commercial rates, on the other hand, are 37.8¢ per kWh. All rates include a 3.6¢ per kWh fuel surcharge. The fuel surcharge does not fully reflect the fuel cost component of AVEC's rates. It is intended strictly to anticipate rising fuel costs, thus protecting consumers against abrupt rate increases. The overall utility rates corresponding to these years are given in Table 5. Rates for consumption above 75 kWh and commercial use have remained roughly proportional to the present schedule. 6 TABLE 5 AVEC RESIDENTIAL RATE 1975-1980 {75 kWh) Year Rate (¢ per kWh) 1975 21.9 1976 22.8 1977 29.0 1978 34.2 1979 36.7 1980 40.8 For electrical generation, fuel prices have been the principal source of rising costs. Tne average cost of diesel fuel delivered to AVEC villages since 1973 is shown in Table 6. Table 6 AVERAGE COST OF DELIVERED FUEL TO ALL AVEC VILLAGES 1973-80 Year cost ($/gal) 1973 1974 1975 1976 1977 1978 1979 1980 0.35 0.52 0.58 0.65 0. 72 0.78 0.97 1.33 Scammon Bay, which takes a small annual shipment relative to other AVEC villages {20,000 gal.), experiences higher than average costs. The price of diesel for Scammon Bay currently stands at $1.35 per gallon as compared to $1.33 on a system wide basis. Regardless of this differen- tial, Scammon Bay pays the same electrical rates as do other AVEC villages. FUTURE DEMAND For this analsis a 1981 energy demand of 416,000 kWh is used. This was derived by assurnming a 5 percent per year energy increase above AVEC's 1979 generation plus an additional 15 percent generated by the BIA generators. Additional generation to serve the high school is estimated at 5 kW base load with an average demand of 25 kW during school hours. This generated output is summerized in Table 7. · 7 Table 7 SUMMARY OF ESTIMATED 1981 GENERATION (kWh) AVEC * BIA ** HIGH SCHOOL *** TOTAL * Estimated Community Need ** Estimated proportion generated by BIA 296,900 44,500 75,000 416,400 *** Estimated yearly High School load (served by AVEC or Standby) No attempt has been made to project electrical energy needs beyond 1981. The on-going study being conducted by NORTEC for the Alaska Power Authority should address these needs. Assumming future energy needs are at least equivalent to the projected 1981 estimates, the proposed hydropower project's feasibility should not be dependent on high future energy forcasts. 8 HYDROLOGY Only one hydropower site is located close enough to Scammon Bay to be potentially feasible for development at this time. This stream flows through town and serves as the community water supply. BASIN DESCRIPTION The basin is within an area of maritime influence which is prevalent over the Yukon-Kuskokwim Delta. Although the Askinuk Mountains are adjacent to Scammon Bay, they are relatively small in height {1,000-2,000 foot) and create minor orographic changes in the climate. In general, the area surrounding Scammon Bay is tundra covered, flat and marshy land with oxbow lakes similar to other areas in the Yukon-Kuskokwim Delta. STREAMFLOWS The village has historically acquired its water supply from the creek which flows from the Askinuk Mountains. In 1976 the Public Health Service (PHS) built a corr1munity water system that treated the water with chlorine and fluoride and installed a piping network. Although the village utilizes a portion of the creek for water supply, there are no records of the amount of streamflow which has actually occurred. During July 1980, a water measurement structure (Parshall Flume) was installed to collect data during the upcoming year and to verify the assumed streamflow values. As this data becomes available, it will be possible to make final design adjustments that may be warranted. Based upon measured flows taken near the village and correlated to the damsite, the discharge and energy estimates shown in Table 8 have been made. The months of July, August, September, and October are actual measured monthly average flows. The other monthly flows are based on the current best estimates considering climatic conditions, known basin characteristics, and conversations with the local villagers. Measurements taken at the damsite and in town indicate that adequate residual flow will be left for water supply purposes. 9 TABLE 8 ESTIMATED MONTHLY ENERGY PRODUCTION TIME DISCHARGE POWER ENERGY (Months) (cfs) {kw) (kwh) Oct 1. 50 46 34,000 Nov 1.25 38 27,000 Dec 1.00 30 22,000 Jan 1.00 30 22,000 Feb 0.80 24 16,000 Mar 1.00 30 22,000 Apr 2.00 61 44,000 May 10.00 *150 111,000 Jun 6.00 *150 108,000 Jul 2.00 61 45,000 Aug 2.00 61 45,000 Sep 1. 50 46 33,000 TOTAL 529,000 * Maximum capacity has been tentatively set at 150 I<W. The project has been initially sized at 150 kW. With a single unit of the type proposed, efficient operation will be possible over the range of 0.8 to 4.6 cfs. This should cover the majority of the flows availaole. The turbine would only develop the installed capacity in May and June when demand is relatively low, out any necessary size reduction during final design should have little effect on the total usable energy output of the project. CLIMATE The area has a maritime influence as indicated by its relatively moderate temperatures and precipitation. The Askinuk Mountains have a minor orographic influence on the climate at Scammon Bay such that the various pressure systems approaching from the ocean or the Yukon-Kuskokwim Delta would have a direct effect on the village. There are no glaciers at the head of the stream which could effect the climate or the streamflow. The nearest climatological station is located at Cape Romanzof Air Force Station approximately 15 air miles away. Although Cape Romanzof is at approximately the 435-foot elevation and has a Southwest exposure it represents the best approximation of weather at Scammon Bay. Temperature Temperature data was collected from the "Climatological Data," National Oceanic and Atmospheric Administration (NOAA) for the period of 1953-1978. Tne monthly maximums, minimums, and averages are illustrated in Table A. The average temperature range during the summer and winter respectively are 34° F to 49° F and between go to 31° F. Recorded extremes are -26° F and 79° F. 10 Preci itation Precipitation data was also collected from NOAA records for the period of 1953-1978. The monthly average, maximum, and maximum 24-hour preciptiation are shown in Table A. The average monthly precipitation ranges between 0.98 and 5.00 inches with an annual average of 25.45 inches. The maximum monthly precipitation for the period of record is 10.50 inches with the maximum 24-hour precipitation being 2.77 inches. Snow Snow pack data was collected from NOAA records for the same period as temperature and precipitation. The average snowpack on the first of each month with the standara deviation is illustrated in Table 9. Tne standard deviation of the snowpack indicates that over the period of record the snowpack nas varied considerably. Wind Wind data was obtained from the Arctic Environmental Information Data Center through Mr. James Wise. It was also taken at Cape Romanzof AFS and is illustrated in Table 10. The data indicates the prevailing wind is from the northeast for all months of the year with the exception of July and August when it is from the south-southwest. The mean annual velocity is 15.6 mph while the maximum mean velocity for the year is 16.2 mph. 11 TABLE 9 CAPE ROMANZOF CLIMATOLOGICAL DATAl/ PRECIPITATION:l/ JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC ANNUAL AVERAGE 1.11 o. 98 1.25 . 9 7 1.28 2.13 2.95 5.00 4.62 2.39 1.56 1 • 21 25.45 MAX MONTH 4. 17 4.25 6.83 3.44 3.72 4.31 6.45 8.78 10.50 6.09 5.46 4. 14 10.50 MAX 24 HOUR o. 99 1. 15 1.20 0.90 o. 7 4 1.88 1.95 2. 77 2.09 1.34 1.97 1.30 2. 77 TEMPERATURE: AVERAGE 12.9 9.7 13.5 20.7 34.4 43.3 49.2 49.2 43.7 31.1 22.6 12.8 28.6 MAXIMUM 49 48 46 60 63 72 79 73 63 60 43 48 79 MINIMUM -23 -26 -26 -12 3 25 31 33 23 4 -7 -23 -26 SNOW PACK: y 1-' AVERAGE 7.8 11.8 15.3 18.6 12.9 1.4 0.0 0.0 0.0 0. 1 2.9 5.9 N STANDARD 0 EVIATION 6.8 9.7 14. 1 20.6 8.3 3.3 0.0 o.o 0.0 0.64 3.2 5.7 STATION INFORMATION: LATITUDE -61° 46' LONGITUDE -166° 03 1 ELEVATION -434 1 1/ From Climatological Data 1953 through 1978 2/ Rainfall in inches }_/ Snow pack (including snow and sleet) on the ground. in inches, on the first of each month. TABLE 10 CAPE ROMANZOF WIND DATA (MPH) SUBJECT JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC ANNUAL Prevailing Wind, Mean Velocity 19.2 20.2 1 7 .o 16.9 13.8 11.8 9.6 11.8 11.8 14.3 16.8 17.8 15.6 Direction NE NE NE NE NE NE ssw ssw NE NE NE NE NE % Time 16.9 21.4 1 7. 1 15.2 18.0 12.6 14.7 13.0 16.6 19.7 18.6 21.3 16.2 Maximum Mean Velocity 21.0 20.2 17.9 18.0 14.5 12.9 11.4 11.8 14. 1 15.7 1 7. 4 18.7 16.2 ...... w Direction NNE NE NNE NNE NNE NNE NNE ssw NNE NNE NNE ENE NNE % Time 14.2 21.4 14.5 14.0 9.9 11.7 7.8 13.0 16.5 15.3 11.3 8.6 12.6 DESIGN FEATURES Hydroelectric power would be developed from the spring fed stream, which originates south of Scammon Bay and flows through the village (See Plate 2). The stream flows from approximately elevation 800 to elevation 50, where it merges with the main channel of the Kun River. A small reservoir would oe excavated upstream of a rock-fillea gabion dam which would be constructed at elevation 596, about 3,500 feet from the town proper. A penstock would run from the intake structure of the dam to an aboveground powerhouse located near the village's school. An open channel tailrace approximately 50 feet in length would be excavated from the powerhouse to the main stream channel. Several viable alternatives for the installation of the penstock and for the type of pipe to be used are presented here. Further study of these alternatives will be completed prior to final design of the Scammon Bay Hydropower Project. WATERWAYS An 8-foot high dam would be constructed from standard manufactured galvanized steel gabions filled with rocks taken from the reservoir excavation and from the stream itself (Plate 3). A cut-off wall would be constructed of sack crete, at the center of the dam. This cut-off would extend approximately 9 feet below the existing ground surface, and its top would be flush with the top of the dam at elevation 600. The dam would extend about 50 feet across the stream gully and would include a spillway with a 10-foot long weir which is 3 feet lower than the top of the dam. A drop box type intake structure with a top elevation 596 would be prefabricated of corrosion resistant steel, with a trashrack located either on top or at the upper siaes of the box. The trashrack would be made from a standard heavy duty steel grating. The bottom of the reservoir would be sloped toward the stream to prevent rocks and other debris from accumulating around the intake box. Reservoir excavation woula be limited to elevations below 598 with a minimum of 1 on 3 slopes for all embankments. PENSTOCK Two alternatives were studied for the installation of the 12-inch diameter penstock and three types of pipe were considered for conveying water from the reservoir to the powerhouse. For both alternatives, th~ invert of the penstock at the intake structure is at elevation 593, 4 feet below the minimum pool elevation 597, and 1 foot above the finished bottom grade of the reservoir at elevation 592. A sluice gate would be installed to regulate the flow through the penstock and for emergency operation. The penstock would be placed on an average 13.5 percent slope whether above or below ground construction is used. Under Alternative No. l, the penstock would be buried about 2 feet below existing grade. A trench would be excavated and backfilled as required. The penstock would be anchored and supported as required. Penstock Alternative No. 2 would consist of a partly buried pipe, about 100 feet in length near the dam, 14 and the rest would run aboveground, supported on piers and anchored as required. The exposed portion of the penstock would be insulated for thermal protection. A steel penstock is found more suitable for aboveground installation because it would be more durable against natural disaster or vandalism. For both alternatives, the penstock would cross the stream at approximately 550 feet downstream of the dam. The minimum working pressure for the penstock would be at least 250 psi ana the thickness of the shell would be 10 ga. minimum for steel and 0.1875 inch for reinforced plastic pipes. Three viable options for the types of penstock pipe were considered: a standard welded steel pipe; a spiral weld lock- seam pipe; and a reinforced plastic mortar (RPM) pipe. Initial economic evaluation indicated that the "RPM 11 pipe was the most inexpensive in material ana handling costs. This particular pipe is also lightweight and highly corrosion resistant; however, it is susceptible to vandalism when installed aooveground. The final selection of the type of pipe would be made at a later design stage. Therefore, in this analysis, all three alternatives are being addressed for general feasibility. They will be evaluated further, with more serious consideration and emphasis on performance applications in Alaska. For cost estimating purposes, buried spiral welded pipe was used. POWER PLANT The penstock would connect to a valve upstream of the turbine in the valve room located within the powerhouse. The powerhouse would be located at elevation 100, and would be built on concrete slab. The finished floor elevation of the slab would be about 4 feet above the main stream water level. Three sites for the powerhouse were con- sidered but geological findings proved that two of the sites are not suitable due to potential flooding and/or soil creep. An open channel tailrace would be excavated below the powerhouse. A small energy dissipater structure would be located at the ena as near as possible to the mainstream channel to prevent erosion of the embankments. Powerhouse Oescri ion The equipment would be housed in a small lO'xll' structure consisting of a concrete draft tube and equipment floor slab. The structure will be prefabricated steel rather than the concrete block and wood as shown in Plate 4. Ventilation would be provided by a wall mounted fan. Double doors for ease of equipment removal are proposed. The generator is not intended to be fire protected. Plate 1 shows the transverse section and plan of the powerhouse. 15 Turbine The turbine would be a "standardized•• horizontal axis impulse or Turgo impulse turbine with one or two nozzles, one of which would be adjustable. The turbine would operate at 1,800 rpm and would be directly coupled to the generator shaft. A jet deflector would be provided for rapid diver- sion of the water from the wheel at load rejection. A valve would automatically close slowly to prevent overpressure in the penstock. The turbine would be specified to discharge from 0.8 to 4.6 cfs while operating at 460 feet net head. Arrangements utilizing Francis Turbines and pumps operating as turbines were also investigated; however, because of the wide flow variation, multiple units would be required thereby increasing the cost of the mechanical and electrical equipment. Also, the use of pumps as turbines would result in lower average operating efficiencies. Prior to the final selection of the turbine type, a review of applicable types will be made. Shown on the drawings is a single jet Turgo Impulse Turbine. Generator The generator would be a synchronous type, rated 150 kW (188 kVA at 0.8 p.f.) 1-Phase, 60Hz, 120/240 Volt, 1800 rpm, provided with a drip proof guarded enclosure, and have a 80° c temperature rise (over 40° c ambient) capable of 10 percent overload. Excitation System The excitation system would consist of a brushless (rotating rectifier) exciter with a saturable transformer, automatic voltage regulator. This system would be provided as part of the generator. Generator Circuit Breaker ·The generator circuit breaker would be furnished as part of the generator package. Unit Control and Protective Equipment The control and protective equipment would be furnished as part of the generator package. Station Service Equipment The station service equipment would consist of a 120/240 volt distribution panel to supply lighting, outlets, and other miscellaneous loads. Low Level Alarm A low level alarm system at the intake structure would be utilized to shut thetsystem down should water levels drop to a point where air may enter the penstock. 16 Transmission System The project power would be transmitted through a local distribution system. The connection to the existing distribution system would be by overhead line through a wall mounted weatherhead fitting. 17 ENVIRONMENTAL IMPACTS Fish and wildlife resources would not be significantly affected by sma l1 hydropower development on the stream running through Scammon Bay. The small spring fed stream does not support resident or anadromous fish and there are no wildlife species dependent on the project area. Although waterfowl and shorebirds are abundant in the immediate area, there are no known resting, nesting or feeding occurring in the area of the proposed project's influence. The U.S. Fish and Wildlife Service stated the greatest impact of the project could be erosion caused by mechanized equipment moving on the steep slopes underlain by permafrost. Removal of the thin protective vegetative layer could allow permafrost to thaw resulting in ground subsidence and subsequent creation of deep gullies from erosion. With construction occurring within the stream gully where permafrost is not present, erosion would be minimal. , 18 ' COST ESTIMATE Two different schemes including above ground and buried penstocks were considered for Scammon Bay. In all, three penstock materials were considered for use: steel welded, spiral welded, and rmp {plastic) pipe. The costs for the various schemes and alternatives ranged from a low of $990,000 to a high of $1,250,000. Additional data and design is required to determine the best alternative for the site before a final decision is made. The cost estimate was based on a buried spiral welded penstock. The following cost estimate does not include land acquisition which is assumed to be local responsibility. ITEM DESCRIPTION MOB & PREP WORK INTAKE WORKS Reservoir Excavation {common) Intake Structure stainless steel drop box {3' wide x 6' long x 6' deep) Trashrack Std Steel Grating 18 SF DAM AND SILL {50 FT) Excavation (common) Concrete Reinforcement Gabion {rock) (Std Manufacture) 6' long x 3' wide x 1' deep Backfi 11 {gravel) Steel Gate (std sluice gate) 12" dia. {low head type) PRELIMINARY COST ESTIMATE QUANTITY 1 70 400 4l5 55 50 2,500 200 . 15 1 19 UNIT LS CY LB LB CY CY LB EA CY LS UNIT PRICE $ 20.00 8.00 2.00 20.00 600.00 l. 30 200.00 20.00 TOTAL $300,000 l, 400 3,200 830 1' 100 30,000 3,250 40,000 300 3,000 ITEM DESCRIPTION QUANTITY UNIT UNIT PRICE TOTAL Riprap 15 CY 110.00 l '650 WATERWAYS Penstock, 12"dia. 3,500 LF Spiral weld 61,250 LB l. 60 98,000 Ring stiffeners exp. anchors, anchor supports 4,288 LB 2.00 8,576 ANCHOR & THRUST BLOCKS Concrete 12 CY 600.00 7,200 Excavation (common) 3,500 CY 5.00 17,500 Backfi 11 (common) 3,400 CY 3.00 10,200 POWER PLANT Powerhouse LS 163,000 TAILRACE CHANNEL Excavation {common) 45 CY 10.00 450 Riprap 15 CY 110.00 1, 650 TRANSMISSION LINE {hook-up to exist city line) wood poles, cables transformer, etc. l LS 30,000 SUB TOTAL COST = $721,306 20% Contigencies = 144,694 CONTRACT COST :;: $866,000 Engineering & Design = 70,000 Supervision & Adminis- tration = 74,000 TOTAL PROJECT COST $1,010,000 20 ECONOMIC ANALYSIS This evaluation is based exclusively on economic benefits that can be derived from hydropower development. Evaluation of the Scammon Bay pro- posal was accomplished by comparing the benefits to accompanying costs. The benefit value of hydroelectric power is measurea by the cost of providing the equivalent power from the most likely alternative source {diesel). The evaluation has been conductea in accordance with methods requested oy the Alaska Power Authority. PROJECT COSTS Interest During Construction As the proposed development would oe constructed in one season~ interest during construction would not enter into project costs. Annual Costs The Alaska Power Authority has specified that under an inflation free economic analysis a discount rate of 3 percent is appropriate. By applying the capital recovery factor associated with a 3 percent interest rate and a 50-year economic life, the investment cost can be transformed into an average annual fixed cost. Adding operations, maintenance, and replacement costs, a total annual cost is established for the purpose of determining comparability and feasibility. Operation, Maintenance, and Replacement Costs (OM&R) An OM&R cost of $8,000 annually has oeen estimated for the Scammon Bay hydropower project. This figure does not include AVEC's existing charges. Tot a 1 Ave rage Annu·a 1 Sys tern Costs The average annual costs for the various plans of development are based on a 3 percent annual interest rate and a 50 year economic life. These costs also reflect transmission tie in facilities, access {but not land aquisition), replacement costs, annual operation and maintenance, ana other associated project costs. PROJECT BENEFITS The benefit value of hydroelectric power is measured by the cost of providing the equivalent power from the most likely alternative source. Diesel generation is currently the most likely alternative for Scammon Bay. 21 Power Values The project under examination would displace diesel currently utilized for power generation. Thus, Scammon Bay's current power costs (as can be best approximated) will be employed to access the costs of continued diesel generation. As of 1980 AVEC's per kWh costs divided as follows: Fuel 0~ Depreciation Taxes Insurance Interest AVEC Generation cost per kWh excluding administration and transmission costs 16.93 12.66 .25 .04 .03 .06 29.97¢ As measured by the base rate~ administrative and transmission costs total 7.3¢ per kWh. Adding a fuel surcharge of 3.6¢ per kWh yields the original rate of 40.8¢ per kWh. As mentioned, this rate applies only to the first 75 kWh of residential use. Although industrial and larger residential users enjoy lower rates, the base rate will be considered representative of Scammon Bay's power costs. Credit for Energy and Capacity Opportunities 'exist for displacing energy which could alternatively be produced by existing thermal plants. The value of thermal energy that would be displaced is dependent on fuel costs and other variable costs. Benefits for this project are based solely on displaced diesel fuel costs. Savings resulting from reduced O&M expenses may occur but were not possible to estimate at this time. Since only secondary energy would be produced, the project cannot be assigned credit for capacity. The total potential energy output of the selected project is estimated at 529,000 kWh annually. This compares to an estimated demand of 416,400 kWh for 1981. By examining seasonal demand and the streamflow data appearing in the hydrology section of this analysis, it was determined that approximately 300,000 kWh of hydropower is useable. Although growing loads woula allow increasing proportions of hydropower to be utilized, this preliminary report will assume 300,000 kWh of useaole hydropower annually. 22 Fuel Cost Escalation As mentioned in the passage concerning historical fuel prices, the cost of this component of thermal power has consistently outstripped all other costs over the past decade. Given the present outlook of continued fuel price escalation, the Alaska Power Authority has requested that the economic evaluation be based on increasing fuel costs. An annual (real) growth rate of 3.5 percent in fuel prices over a period of 20 years was specified. This variation has been implemented by adjusting the fuel cost component (excluding fuel surcharge) of AVEC's base rate. The projected per kWh diesel cost for each year of the project life was discounted to the present at the appropriate rate. The resulting factors were then summarized to develop a present worth factor. The effect is a shift. in AVEC's fuel cost component from 16.9¢ per kWh to 27.9¢ per kWh. Comparison of Annual Costs and Benefits Based on criteria set forth by the Alaska Power Authority (discount rate of 3 percent, fuel cost escalation of 3.5 percent, and a 50-year economic life), the project would provide annual benefits of $84,000 at an annual cost of $47,000. 23 FINANCIAL ANALYSIS The 3 percent discount rate specified by APA does not take inflation into account. The two major effects of inflation on capital investment are, 1) the actual cost of funds will greatly exceed 3 percent, and 2) investments with high fixed costs and low variable costs are more "inflation proof". The Alaska Power Authority has therefore requested an examination of the selected projects feasibility under a 7 percent annual inflation rate, with 10 percent financing for 30 years and fuel cost escalation of 10.5 percent for 20 years. The results of this analysis are graphically displayed and are based upon the calculations shown below. Note that the costs being compared are strictly generation costs. Administrative and transmission costs, as well as taxes and insurance, have been netted out of AVEC's current generation to draw an even comparison with hydro. Comparative $/kWh cost of Diesel and Hydro Generation at Scammon Bay for Initial Year of Analysis AVEC Cost of Diesel Generation excluding fuel surcharge, adminis- trative and transmission costs, taxes, and insurance Fuel O&M Interest & Depreciation Estimated Cost of Hydro Generation excluding fuel surcharge, adminis- trative and transmission costs, taxes, and insurance Fuel O&M Interest & Depreciation {@ 10%) 24 16.9 12.7 .3 29.9 0 2.7 28.6 29.9¢ 29.9¢ 31.3¢ 31.3 31.3¢ . Unite. d States Army Corps of Engineers .. _ Servmg tht' Arm~ ... &n·ing rtv-Noti()ft Alaska District Comparative Cost of Hydro Vs. Diesel Power - Assuming 7% Inflation 2.00r---.-------r------r-----r------,.----/---:..~/ / END OFF .JEL COST ESCALATION AT 3.5% _ .oo~---~----+---+----4--~-----+- 1981 1985 1990 1995 YEAR 25 2000 2005 2010 FIGURE 1 Based upon the previously outlined assumptions of inflation and fuel cost escalation, the proposea project would oe less expensive than·diesel by the end of the first year of operation. Although the analysis as shown in the previous grapn indicates the relative costs of hydro versus diesel, the total system cost should lie somewhere between the two graphs. This is due to the inability of the hydrosystem to meet all system aemands thereby forcing the use of diesel as a supplement. 26