HomeMy WebLinkAboutTazimina River Hydro Work Plan of Iliamna-Newhalen-Nondalton Elec Coop, INC 1994WORK PLAN
OF
ILIAMNA-NEWHALEN-NONDALTON
ELECTRIC COOPERATIVE, INC.
SUBMITI'ED To THE
DIVISION OF ENERGY
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS
November 19, 1994
T AZIMINA HYDROPOWER PROJECT APPROPRIATION AND GRANT PROPOSAL
Iliamna-Newhalen-Nondalton Electric Cooperative, Inc.
A. Utility Representative
The Utility representative who will oversee the project is:
Brent N. Petrie
General Manager
INN Electric Cooperative
P.O. Box 210
Iliamna, AK 99606
Telephone (907) 571-1259
Fax (907) 571-1444
In his absence, signatory authority for documents relating to the Department of Community and
Regional Affairs (DCRA) grant will reside with:
Thomas (Tinny) Hedlund
President
INN Electric Cooperative
A copy of the Iliamna-Newhalen-Nondalton Electric Cooperative (INNEC) Board of Directors
Resolution 1994-04 which establishes the utility representative and his alternate for the pu1p0ses
of this grant is attached as Exhibit A.
B. Board of Directors
President Tinny Hedlund Term Expires 05/95
Vice-President Wassie Balluta Term Expires 05/95
Secretary Treasurer Edna Foss Term Expires 05/96
Board Members George Hornberger Term Expires 05/96
Paul Cusma, Jr, Term Expires 05/96
Steve Willis Term Expires 05/95
Robert Arce Term Expires 05/97
Attached as Exhibit B is the latest audit of INNEC's fmancial operations.
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C. Project Description
Tazimina Hydropower Project
Appropriation and Grant Application
The Tazimina River Hydroelectric Project will be located at Tazimina Falls on the Tazimina
River at river mile 9. 5. This site is approximately 12 miles northeast of the community of
Iliamna where the existing power generation facility is located. The project will serve the
communities of Iliamna, Newhalen, and Nondalton which have a combined population of
approximately 496 (1990 Census) residents. When constructed, the facility will be capable of
700 kilowatts (kW) at a peak flow of 110 cubic feet per second (cfs).
The proposed project is a run-of-the-river facility. An intake structure upstream of the falls will
divert water through a penstock to the powerhouse. Water will be returned to the river
downstream of the falls. Main project features include an access road, stream channel control
sill, gated intake structure, buried steel penstock, elevator access shaft, semi-underground
powerhouse, switchyard, and underground transmission line. Installation of a fish screen
structure is also under consideration. The need for a fish screen depends on the outcome of fish
studies and agency consultation that are currently ongoing.
A brief summary of the main project features follows. A detailed description of these features
can be found in section 2, "Proposed Project Description" of the Tazimina Hydroelectric Project
Reconnaissance Design and Constructibility Study prepared by HDR Engineering, Inc. in
September 1994 (see Exhibit J).
Access road: A new 6.7 mile gravel access road will be constructed. It will extend from the
existing Newhalen-Nondalton Road, around the north end of Alexcy Lake to the project site on
the left bank of the Tazimina River.
Stream channel control sill: A linear concrete block sill, as currently proposed, will be
constructed across the right side of the river, opposite the intake structure, to help prevent
degradation of the streambed and to help divert streamflow to the intake during periods of low
flow.
Intake structure: The proposed structure will be located on the left bank, approximately 300 feet
upstream of the top of the falls. It will be constructed in rock and consist of a trash rack, intake
gate, and sluice gate.
Penstock: Flow from the intake to the turbines will be via a 60 inch buried welded steel
penstock. The penstock will be sized to convey 220 cfs (double the proposed initial hydraulic
capacity) to allow for future expansion. The penstock will be divided into two sections: an
upper section 120 feet long and a lower section 310 feet long.
Elevator access shaft: An enclosed elevator shaft to provide permanent access to the powerhouse
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Tazimina Hydropower Project
Appropriation and Grant Application
will be installed in a rock notch blasted to accommodate the last 130 feet of the lower penstock
section.
Powerhouse: The powerhouse will be a semi-underground 40 foot x 50 foot x 18 foot structure
excavated into the cliff to the left of the falls. It will house two 350 kW turbines, generators,
switchgear, and auxiliary equipment. It will be sized and configured to accommodate future
doubling (to 1 ,400 kW) of plant capacity.
Switchyard and transmission line: A 24.9 kilovolt (kV), 3 phase, 60 hertz transmission line and
multi-pair communications cable will be buried in the access road alignment. It is proposed that
the transmission line cable (260 mil EPR insulated cable) will match existing cable used in the
INNEC system. Other types of insulation systems may be possible, however, and a fmal
decision will be made during fmal design. Adjustments to transmission voltages will be
regulated with tap changers at the tie-in point.
Fish screen structure: If a fish screen structure is required total screen size would be 8 feet high
by 30 feet wide. Design would have to provide for a gradual reduction in the velocity of flow
to the screens and a gradual acceleration downstream, away from the screens. Screens would
be fully submerged to accommodate winter operation and maintenance.
The estimated project cost (design and construction) inclusive of all the project features described
above is $10,359,000. If fish screens are not necessary, the cost will decrease by approximately
12 percent to $9,620,620.
D. Project Management Plan
Overall Project Management
INNEC will retain overall project management authority for the project. They will be supported
by the Management Analysis Company (MAC) who will provide management support services
during project design, procurement, and construction. MAC will review reports prepared by
project consultants, review the constructibility of options, and identify contracting issues.
Pre-design, Licensing, and Permitting Work
INNEC has contracted HDR Engineering to provide environmental, permitting, licensing, and
engineering services. More specifically, HDR has conducted and coordinated field studies on
the project vicinity's wildlife and botanical resources (including wetlands), fish resources, water
quality, and archeology. This information will be used to fmalize the preparation of an Exhibit
E Environmental Document. The Exhibit E is required by the Federal Energy Regulatory
Commission (PERC) for the preparation of their internal environmental assessment (EA) of the
project. This EA is required by the PERC to complete their review of the project in order to
grant an exemption from PERC licensing.
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Tazimina Hydropower Project
Appropriation and Grant Application
HDR has prepared a Reconnaissance Design and Construclibility Feasibility Study (September
1994) for the project. The study includes a review of past project configurations, identification
of potential problem areas, energy production estimates, development of a recommended
alternative to take forward to fmal design, and preliminary cost estimates (attached).
A review of the existing electric generation and transmission system has been undertaken by
Power and Control Engineering. Part of this review included an investigation of the impacts of
integrating the project into the existing INNEC system, including the cost of substations,
switches, transformers, and SCADA systems.
Final Engineering and Design
HDR Engineering, Inc. will provide engineering services to prepare: a preliminary design: a
project schedule; fmal construction drawings; specifications; an estimate of probable construction
cost; construction management and inspection services; and start-up and testing services.
A project schedule showing the major activities of the design and anticipated construction
activities will be developed (attached) including identification of procurement and construction
bid packages. The schedule will include the various tasks, sub-tasks, deliverables, and
milestones for each task. Once the project begins the schedule will be updated monthly to show
actual versus anticipated progress. Through regular schedule updates it will also be possible to
identify possible future problems or any actions that could result in schedule changes.
Communication between HDR and INNEC will be through the HDR project manager to the
INNEC General Manager. Monthly coordination with INNEC and the permitting and design
task managers will be performed to assure the project is proceeding as scheduled and to avoid
schedule slippage. This will include work schedule updates, monthly project status reports, and
invoicing. The HDR project manager will be available to meet with INNEC Management and
the INNEC board, potential fmancing entities, interested contractors, the public and any
regulatory agencies as necessary.
Geotechnical and surveying support services to the design effort will be provided by R&M
Consultants Inc. Benchmarks and baselines for use in construction will be provided at the
powerhouse (near the intake) and every one thousand feet along the access road route starting
from the existing road end. Geotechnical investigations to determine rock characteristics,
borrow sources, and foundation conditions will also be conducted.
HDR Engineering will prepare a fmal design criteria guide for use by the project team showing
geotechnical, hydraulic, structural, civil, mechanical and electrical criteria for the design of all
facilities. This document will be updated as necessary throughout the life of the project as new
data becomes available and will be circulated to project staff for use on all design tasks. This
document will be circulated to the INNEC and MAC for their review and comment prior to
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distribution to project staff.
Tazimina Hydropower Project
Appropriation and Grant Application
Following review and approval of the design criteria, HDR Engineering will complete a
preliminary design of all project features. The design criteria, coupled with the survey data and
geotechnical data gathered previously, will form the basis for the preliminary design. Particular
emphasis will be placed on specific areas of the design as follows:
Intake structure and penstock
Powerhouse location and configuration
Turbine selection and arrangement
Substation and maintenance building
Access road and transmission/communication line
The preliminary design and specifications will be developed in sufficient detail to allow
development of a reliable cost estimate and the completion of in-progress reviews by MAC.
Based on the preliminary design a contracting plan will be developed. The plan will describe
timing of work, logical divisions of labor, local contracting capabilities, and how project
responsibilities and liabilities can be divided between the suppliers, contractors, and
professionals.
Once review comments from the preliminary design have been addressed, fmal design of the
project will commence. At this time three bid packages are anticipated. These include (1) a
transmission and communication cable material supply contract, (2) a turbine/generator
equipment contract, and (3) a general construction contract for installation of the materials. As
the design drawings and specifications are completed for each project feature they will be
incorporated into the appropriate contract package. At the 95 % complete phase of each contract
package a review period with INNEC and MAC will occur to verify constructibility and identify
any design deficiencies. An estimate of probable construction cost will also be prepared by
Clarke-Graves for each of the packages.
Procurement of Equipment
General Procurement Approach
The basic procurement philosophy of the project is that the procurement of permanent plant
materials and equipment will be performed by the construction contractors, with the exception
of certain specified items. This is being done to minimize possible exposure to delay claims
from Contractors in the event of late deliveries of items procured by INNEC and to minimize
the administrative burden on the INNEC or HDR that would be imposed by extensive direct
procurement by INNEC.
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Owner-Furnished Materials and Equipment
Tazimina Hydropower Project
Appropriation and Grant Application
INNEC views Owner procurement of certain long lead time items as essential to optimization
of the project schedule for key items having impact on the project critical path. Procurement
of these items will be the responsibility of HDR. The methods employed in effecting
procurement will be in accordance with requirements of the lenders and Public Agencies
providing grant moneys for the project. Generally, all "Owner-Furnished" procurement
contracts will be competitively bid and awarded to the lowest responsible bidder. Timeliness
of delivery to meet schedule milestones will be a factor in award. The quality of the materials
will be based on the requirements of the plans and specifications developed by HDR.
Bidding
HDR will be responsible for preparing bid documents and will issue the bid documents following
INNEC review and approval. The Notice of Intent to Award, the Award and the Notice to
Proceed will be made by INNEC.
Award and Execution of INNEC Procurement Contracts
Contract administration will be performed by HDR. INNEC will retain signatory authority and
monetary approval authority for change orders. HDR will be responsible for monitoring the
vendor's progress and performing shop inspections and design reviews that may be required.
In the event of required inspection of equipment fabricated overseas, a subcontract for inspection
services may be utilized.
Expediting
HDR will be responsible for expediting of INNEC procured materials and equipment. The
vendor's production/ shipping schedules will be monitored regularly. Expediting will be through
both telephone contacts and in-plant inspections by personnel experienced in the particular field.
Written status reports will be prepared regularly and distributed to INNEC and interested parties.
Quality Control and Progress Payments
HDR will arrange for qualified inspectors to attend and witness key factory tests and inspections
at designated hold points during fabrication of INNEC procured items. HDR will verify the
accomplishment of progress for payments during the period of fabrication.
Shipment and Receiving
Shipment of INNEC procured items to the project will be the responsibility of the vendors
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Tazimina Hydropower Project
Appropriation and Grant Application
F.O.B. Iliamna. The contractor responsible for their installation on the project will be
responsible for receipt of the items at Iliamna. Acceptance inspections will be performed jointly
by the receiving Contractor and representatives of INNEC and HDR. The receiving Contractor
will thereafter take control of the items and safeguard them from deterioration and damage. The
Contractor will warehouse and stage in accordance with the vendors' recommendations and the
instructions of INNEC or their representatives.
Identified INNEC Procured Materials and Equipment
To date, three exceptions to INNEC's policy for Contractor-procurement of permanent plant
materials and equipment have been identified. INNEC has designated the following three items
as items that may be procured directly by INNEC and furnished to the construction contractors
for installation.
I. Concrete Blocks
The project design entails placement and anchoring of concrete blocks in the riverbed to help
direct water toward the intake structure on the left bank during periods of low flows. A
preliminary project schedule has timed the installation of these blocks by the Powerhouse
Contractor in March and April 1996. These are the months of lowest river flows. Award
of the contract to the Powerhouse Contractor is currently envisioned in the fall of 1995.
Procurement of these items by INNEC under separate contract is being done for the
following reasons:
• Design of these blocks will be complete in early spring 1995 thereby permitting
commitment to a supplier approximately three months before bid documents are issued
to the bidders for the Powerhouse Contract. This provides added time for fabrication and
transport by barge to the Iliamna area (if the complexity of the blocks design requires
their fabrication outside the project area).
• Early solicitation of bids for fabrication of the blocks favors bidding by local suppliers
in the Iliamna area by giving ample time for the local supplier to complete their
fabrication and stockpiling in the project area in 1995.
• Supply of the concrete blocks by a third party relieves the Powerhouse Contractor of the
necessity to mobilize a concrete facility in the Iliamna area immediately after contract
award and casting the blocks during the winter.
2. Transmission and Communication Cable
Direct purchase of the supply and transmission cables could result in significant savings to
the project for the following reasons:
• Contractor profit and mark-up would be avoided.
• The contract package would be large enough to attract bids from several suppliers,
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making it more competitive.
3. Turbine-Generators
Tazimina Hydropower Project
Appropriation and Grant Application
The supply and installation of the turbine-generators represents the critical path on the
project schedule. Direct procurement of the turbine-generators by INNEC is being done for
the following reasons:
• Duration of fabrication from the time of receipt of a notice to proceed is approximately
twelve months. Issue of bid documents by the Engineer can be done approximately three
months before issue of the bid packages to the Powerhouse bidders. This will initiate
the turbine-generators procurement process at least three months earlier than would be
the case if turbine-generators supply is included in the scope of the Powerhouse Contract.
• Initiation of the procurement process three months prior to issue of the Powerhouse bid
documents will permit incorporation in the Powerhouse documents of the shop drawings
and design details from the successful turbine-generator supplier.
• Direct procurement of the turbine-generators by INNEC will advance commercial
operation by at least three months (from early 1997 to fall 1996).
Procurement of the above INNEC procured permanent plant materials and equipment will be the
responsibility of HDR. HDR will develop a short list of pre-qualified bidders, issue the design
specs and bid documents and conduct the bidding and award process for INNEC. HDR will also
perform the expediting of these items, shop inspections, contract administration and close-out
of the procurement contracts. The balance of project permanent plant materials and equipment
will be the responsibility of the construction contractors to furnish.
Construction Work
General Awroach to Packa~:in~: the Work
The current work packaging concept calls for the construction to be performed under two
principal construction contracts:
l. Access Road Construction Contract (6.7 mile access road), and
2. General Construction Contract (comprised of the river sill, intake structure, water conduit
and powerhouse-including installation of the two turbine-generators).
Other smaller contracts may be awarded to local individuals and contractors for individual
environmental mitigation packages whose scope has yet to be established.
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Contracting Approach
Tazimina Hydropower Project
Appropriation and Grant Application
The principal construction contracts will be bid under competitive unit-price/lump-sum contracts.
In order to maximize the utilization of local labor forces (and construction equipment already
in the region), the road contract will incorporate a feature whereby the contractor may obtain
most of its craft labor (including some equipment) from a local pool paid directly by INNEC.
The construction work will be bid under two separate contacts to allow start of construction on
the access road while work continues on completion of the design of the powerhouse and balance
of the work. The staged issuance of the bid documents will permit incorporation in the General
Construction Contract documents of turbine-generators design information (obtained from the
finn awarded the turbine-generators contract in spring 1995).
Specific Areas of Emphasis
• Maximize Utilization of Local Resources
One of the important objectives in the packaging and award of the construction contracts will
be to maximize use of local resources. In addition to direct supply by INNEC of local hire
labor forces on the Access Road Contract, consideration will also be given to methods to
maximize use of local labor and equipment on the General Construction Contract and to
maximize utilization of other local resources (lodging, transportation, etc.). INNEC will
survey availability of local resources that can be employed on the project.
• Environment
Due to the fact that the work will take place in environmentally sensitive areas, complete
compliance with customary environmental practices and agency requirements will be
enforced. Environmental orientations will be required of all project personnel before they
commence work on the project.
• Cost Control
Project funding will come from at least three different sources. Project costs will be tightly
controlled to stay within overall funding. In order to minimize design changes after contract
awards, bid documents will, to the maximum extent possible, incorporate fmal design of the
facilities when issued.
• Safety
Contractors will be required to put in place effective safety and training programs.
• Quality
All facilities will be designed for extended service (50 years or more). Rigorous field
inspection will be performed by INNEC (and its representatives) to ensure that materials and
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Tazimina Hydropower Project
Appropriation and Grant Application
equipment furnished by the contractors and all construction work conform to the
specifications in the construction contracts.
Administration of Procurement and Construction Contracts
Responsibilities
• General
Overall responsibility for the project resides in Mr. Brent N. Petrie, the General Manager
for INNEC, subject to the procurement policies established through INNEC's Board of
Directors, corporate bylaws and employee handbook.
• Procurement contracts for INNEC procured materials and equipment.
Administration of the supply contracts entered into directly by INNEC for supply of certain
items of long lead time materials and equipment will be performed by HDR. HDR will
report to Mr. Petrie.
• Construction Contracts
Following award of the construction contracts, INNEC will manage the contractors by use
of a construction management team. This construction management organization will have
the authority to represent INNEC in the administration of the construction contracts.
INNEC' s construction management organization will be located in Iliamna during
construction and will report directly to Mr. Petrie.
Administration of Construction Contracts
INNEC' s construction management organization will administer the construction contracts and
have authority to represent INNEC for inspection of the work, interpretation of the Contract,
measurement of work progress for progress payments and exercise of stop-work authority.
Except for the specific long lead time items contracted directly by INNEC, all other materials
and equipment will be contracted for and supplied by the construction contractors responsible
for their installation. INNEC's construction management organization will monitor the
contractors' procurement of these items as part of the contract administration of the construction
contracts. INNEC (through HDR) will obtain the services of specialists to attend important shop
inspections of key equipment items being procured by the construction contractors.
The construction manager will evaluate and prepare change orders for INNEC approval.
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Tazimina Hydropower Project
Appropriation and Grant Application
INNEC will retain approval authority for all project monetary commitments. The specific
functions of the construction manager will include the following:
• During Construction
-Conduct pre-construction meeting
-Hold periodic meetings with the contractors
-Review and process contractor submittals
-Field inspection (QC and QA)
-Monitor contractor safety compliance
-Monitor contractor environmental compliance
-Monitor contractors' compliance with PERC and other permit requirements
-Monitor procurement by contractors of critical materials and equipment items
-Review monthly progress and process progress payment requests
-Review and negotiate change order requests (for INNEC final approval)
-Maintain as-built drawings
Maintain photographic and video records of project progress
-Conduct project briefings
-Prepare monthly reports for incorporation in reports to PERC
• Post Construction
-Coordinate pre-startup and startup activities by contractors with HDR (HDR will retain
responsibility for development of the startup plan and direct supervision of startup)
-Forward red-line as-built drawings to HDR for incorporation in fmal as-built drawings for
submission to INNEC
-Assemble contractor-furnished shop drawings, operating manuals, catalog cuts, warranties,
test and inspection reports and all other documents required for operation and maintenance
of the project and forward to INNEC.
-Prepare construction portion of the Project Historical Report (Final Construction Report).
Project Accounting and Cost/Schedule Control
General
Cost schedule control on the project will employ standard commercial scheduling software and
computerized cost software to provide the project the ability to track cost and schedule trends
on a monthly basis. As part of the project cost, INNEC will purchase and install a job cost and
general ledger software package capable of accounting for all project costs and transactions.
Project participants will utilize the same scheduling software to facilitate exchange of scheduling
data.
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Work Breakdown Structure
Tazimina Hydropower Project
Appropriation and Grant Application
INNEC will provide the project work breakdown "WBS" coding structure to each construction
contractor for the scope of work covered by their respective contracts. The contractors will be
required to organize their schedules in accordance with this standardized code structure. The
same coding will be used for INNEC's project cost reporting.
Project Schedule
Each contractor will submit a detailed construction schedule with its proposal along with a
narrative work plan describing the methods and resources it intends to use to accomplish the
work. Upon review with each contractor, "target" schedules will be adopted for the execution
of the construction work covered by the contract. Monthly progress percent complete targets
will be established for each major element of the work breakdown coding structure and progress
of the work will be measured against these monthly targets. A similar approach will be
employed to monitor progress on the INNEC procurement contracts.
Project Construction Costs
Project construction costs will be evaluated on a monthly basis and the cost trends will be
reflected in monthly project cost reports. Contractor costs will reflect monthly reevaluation of
quantities to date (negotiated with the contractors for progress payments) and a reassessment of
the quantities to complete for those activities paid on a unit -price or reimbursable compensation
formula. Project scope items compensated on a lump sum basis will be evaluated for potential
changes.
Cost data for the other project participants will be integrated into the project cost system at the
summary report level. An assessment of potential cost trends and progress will be made for
each of these organizations for incmporation in the project reports.
E. Project Schedule
Submission of a FERC License Exemption
INNEC is planning to submit an application for exemption for the Tazimina River Hydropower
Project. However, they have committed to performing some baseline monitoring work and
biological studies to address agency and public concerns raised during the initial consultation
process. This latest phase of this process, initiated in 1992, included public meetings, agency
coordination, field studies, and review of existing information. It is anticipated that the
environmental documents and technical reports summarizing these activities will be completed
and submitted to the FERC in January 1995.
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Receipt of a FERC Exemption
Tazimina Hydropower Project
Appropriation and Grant Application
Based on a January submittal, receipt of a FERC exemption for the project is anticipated for late
June 1995. INNEC and its consultants will be very responsive to FER.C in order to accelerate
issuance of the exemption.
Acquisition of Major Permits
The following permits and approvals will potentially be required:
Agency Statue or Regulation Pennit or Approval
Alaska Division of Governmental Alaska Coastal Management Act Coastal Zone Consistency
Coordination Determination
{Required for work in coastal
zone)
Alaska Department of Natural Alaska Water Use Act Water Rights Application
Resources {Required for diversion of surface
water)
Alaska Department of Section 401 of the Federal Water 401 Certification of Reasonable
Environmental Conservation Pollution Control Act Assurance
18 AAC 72 Design Review
Approval to Construct
Approval to Operate
Alaska Department of Fish and Alaska Statute Title 16 Fish Habitat Permit
Game (Required for construction in
streams)
U.S. Army Corps of Engineers Section 404 of the Federal Water Section 404 Permit
Pollution Control Act {Required for discharge of dredge
or fill materials into waters or
wetlands of the U.S.)
U.S. Environmental Protection Section 402 of the Clean Water NPDES General Permit for Storm
Agency Act Water Discharges from
Construction Sites
Alaska Department of Driveway Permit
Transportation and Public Utility Permit
Facilities Letter of Non-Objection
Department of Public Safety Fire Marshall Review
Projects funded with federal $$
need to comply with applicable
ADA requirements.
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Tazimina Hydropower Project
Appropriation and Grant Application
It is anticipated that permit submittal, coordination, and issuance will be completed by March,
1995.
Acquisition of Financing Commitment for the Balance of Project Costs
In addition to the $5 million appropriation for the project made by the 1993 Alaska State
Legislature, the federal fiscal year 1995 Energy and Water Development Appropriations Bill
contained a $3.4 million grant for the Tazimina Project. These federal funds were appropriated
as matching funds for the project. INNEC is encouraging their transfer to DCRA to be
administered jointly with the state funds for this project (see Exhibit C). If the federal funds are
not transferred to DCRA, then INNEC will submit a separate application to the U.S. Department
of Energy. In any event, INNEC expects that the federal grant funds will still be available to
meet the cash flow needs of the project.
Under the current project cost estimate of $10.4 million, INNEC would need $2 million in
additional funds to complete the project. It is INNEC's intent to have an agreement in place
with a lender prior to major construction draws for the project. Such an agreement will likely
involve a "bridge loan" during construction which will be converted or taken out with long-term
fmancing upon commencement of commercial operations.
It is INNEC's intent to have a fmancing agreement in place prior to construction but to use it
sparingly. A major effort will be made to offer offsetting mitigation which will negate the need
for a fish screen in the intake and penstock for the hydroelectric project. If this feature can be
avoided, project costs and borrowing needs would be reduced by approximately $750,000. In
addition INNEC and its consultants will reassess project cost estimates, cash flow and
borrowing needs in February 1995 when road and transmission line fmal design is complete and
when the remaining design engineering is at the 35% complete level.
Issuance of RFP's and/or Bid Documents
Project construction will be bid and awarded under three main contracts.
(1) Access road construction will be bid and awarded in the period mid-February through
mid-March 1995.
(2) Turbine and generator equipment supply will be bid and awarded in the period March
through early April 1995.
(3) A general construction contract to construct the balance of the plant will be bid and
awarded in the period late June through July 1995.
Beginning and End of Design
Exhibit D, "Tazimina Hydroelectric Project" depicts the proposed schedule. As currently
proposed, access road and transmission line design is scheduled to commence in November 1994
with completion in mid-February, 1995. Design of other project components (stream channel
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Tazimina Hydropower Project
Appropriation and Grant Application
control sill, intake structure, penstock, elevator access shaft, powerhouse, and fish screens) will
commence in January 1995 with completion scheduled for July l st, 1995.
Beginning and End of Construction
Construction activities identified occurring prior to January 1996 are as follows (see Exhibit D):
(l) Construct access road and transmission line: Late July 1995 through mid October 1995.
(2) Construct control sill in river: Mid October 1995 through November 1995.
(3) Commence construction of intake and powerhouse: Early September through November
1995.
Construction at the project site would shut down for over winter and resume again in May 1996.
Facility start-up is scheduled to occur in November 1996.
F. Project Budget and Cash Flow Projections
Project Budget
The estimated direct construction cost of the project is $6,887,000 (see Exhibit J, Section 3).
Total project development cost, including construction, engineering services, owner costs,
contingencies and escalation, is estimated to be $10,359,000. The direct construction cost is the
cost a reasonable contractor would be expected to bid for the work if it were bid in 1995.
Construction quantities were estimated for the major project features based on preliminary
sketches. Unit and lump sum prices were estimated based on experience, data, and contractor
quotes for the turbine/ generator equipment and penstock trench excavation. The estimates reflect
local conditions, remoteness of the project site and Alaska wage rates. Some costs were also
included for related work, such as heating equipment changes at the school which are necessary
because of the new project. Cost for land use was included as an annual expense.
Unit prices for reinforced concrete are based on recent experience data in Alaska. Actual
contractor bid prices are expected to vary considerably depending on the bidders' assumptions
and strategy in fonnulating its bid. Access road construction costs were based on having to
import about 50% of the material for the road bed from four or five borrow sites near the road
alignment, and obtaining the rest from cut slopes within the right-of-way. This will be refmed
based on October 1994 geotechnical investigations.
Contingencies were added to direct construction costs in varying percentages to account for a
degree of uncertainty in the fmal cost of each major project feature. Based on the level of study
conducted for this report, a contingency of 15% was added to the turbine/generator and other
equipment, and 20% to all other work. This results in a contingency fund for this project of
about $1,270,000.
x: \sw\0725(X)021workplan.doc 15
Tazimina Hydropower Project
Appropriation and Grant Application
Costs for engineering, geotechnical investigations, topographic surveying, hydraulic modelling,
permitting, and construction management are estimated to total $1,512,000.
Cash Flow
The cash flow for the project is displayed in Exhibit E and is estimated based on the month that
the obligation occurs. Although there is a lag time between when the cost is incurred and billing
and payment occurs, INNEC requests that DCRA disburse funds on a scheduled basis in
accordance with Exhibit F, Grant Disbursement Schedule. INNEC does not have the fmancial
resources to fund vendor payments in advance of receiving grant funds from DCRA. INNEC
will provide monthly documentation of project funds paid out.
We anticipate that the federal funds will be administered by DCRA as matching funds and
anticipate that state funds would be disbursed frrst, federal funds second, and INNEC borrowed
funds last.
Economic Analysis
A simple economic analysis was performed to estimate the frrst year cost of energy produced
from the hydroelectric project (see Exhibit G). Inputs into this analysis include the assumed
project capital cost, interest rate, discount rate, O&M cost, and system load growth. The costs
of diesel fuel and maintaining the diesel system during periods of hydro plant shutdown are also
factored into the analysis. Diesel fuel is estimated to cost $1.15 per gallon in 1994.
Assuming a total plant capital cost of $9,961,000, a $5 million grant from the State of Alaska,
a $3.4 million grant from the federal government, and the other assumptions noted above, the
frrst year energy costs will be approximately $0.10 per kilowatt hour. If bond interest is 7%
or 9%, instead of 5%, first year energy costs increase to $0.111 and $0.120. Power price is
very sensitive to overall system demand. Increasing load has a dramatic effect on lowering
energy price, because the fixed costs are relatively high, and the incremental cost of additional
generation is extremely low. For example, increasing system load from 1, 775,000 ( actual1993-
94 production) to 2,300,000 reduces frrst year energy price from $0.10 to $0.078 per kWh under
the 5 % bond case.
Allowance for a savings (a benefit) in the expense of rebuilding the diesel fuel storage depot is
included in the annual cost analysis, since constructing the hydro project will indefinitely defer
the need to rebuild the fuel facilities. Assuming 20 year bonds (6%) are sold to fmance an
estimated $400,000 in repairs, an annual savings of $35,000 per year results from the deferred
work.
G. Financing Options
INNEC has determined that it is not eligible to borrow from the Power Project Fund
x: lsw\07ZS0002\workplan.doc 16
Tazimina Hydropower Project
Appropriation and Grant Application
administered by DCRA without legislative approval due the $5,000,000 state grant that is
already appropriated for the project. Therefore, INNEC intends to negotiate with other lenders
who typically lend for utility projects. These include:
National Rural Utilities Cooperative Finance Cooperative Finance Corporation (CFC):
INNEC has borrowed form CFC before and currently has a $400,000 line of credit with this
organization.
CoBank: A cooperative bank similar to CFC with a history of lending to rural Alaska
utilities.
National Bank for Cooperatives: A major lender to Alaskan village and regional
corporations.
Farmers Home Administration (FHA): A major lender to the King Cove Hydroelectric
Project. INNEC meets the criteria for a five percent loan from FHA.
Revenue bonds: Discussions will also be held with the Alaska Industrial Development and
Export Authority (AIDEA) and Alaska Municipal Bond Bank to determine INNEC's
eligibility and benefits under their programs and the possibility for tax exempt financing.
H. Land Interest
Legal Description
INNEC has obtained an option to purchase the project lands from the land owner, Iliamna
Natives Limited. Exhibit H contains a map of the property and a copy of the recorded
agreement.
National Park Service (NPS) Jurisdiction
Section 2402 of the Energy Policy Act of 1992 provides that FERC has the authority to issue
a license for this project notwithstanding the fact that it is located within the exterior boundaries
of the Lake Clark National Preserve. Section 2407 of the Energy Policy Act of 1992
specifically mentions the Tazimina Hydroelectric Project and allows FERC to issue an exemption
for this project. In a meeting held on June 7, 1993, the NPS indicated its support for
construction of this hydroelectric project. Copies of the federal statute, as well as the NPS
meeting minutes, are attached as Exhibit H. INNEC and HDR will continue to meet with the
NPS during the agency consultation process.
x:lswi07250CXJ21workp/.an.doc 17
CERTIFICATION
Tazimina Hydropower Project
Appropriation and Grant Application
I certify that the information presented in this grant proposal is, to the best of my knowledge,
true.
~A)~
Signature of Chief Executive Officer
Mtl'-UHlec
Date
x: lsw\07250002 \workpfan.doc 18
Exhibits
A. INNEC Board Resolution 1994-04
B. INNEC Audited Financial Statements
C. Letters Regarding Federal Funds
D. Schedule
E. Cash Flow Analysis
F. Grant Disbursement Schedule
G. Economic Analysis Spreadsheets
H. Property Map and Copy of Recorded Option Agreement
I. Documents Pertaining to National Park Service Issues
J. Feasibility Report
EXHIBIT A
INNEC BOARD REsOLUTION 1994-04
RESOLUTION NUMBER 94-04
A RESOLUTION of the Iliamna-Newhalen-Nondalton Electric Cooperative, Inc.
accepting State legislative grants in the amount of $5,000 1 ooo, and, if
applicable, federal grants in the amount of $3,400,000 for design and
construction of the Tazimina Hydroelectric Project.
WHEREAS, the !liamna-Newhalen-Nondalton Electric Cooperative, Inc. wishes to
construct the Tazimina Hydroelectric Project for the benefit of electric
consumers in our region; and
WHEREAS, the Iliamna-Newhalen-Nondalton Electric Cooperative, Inc. has
commissioned design and constructability reviews which estimate the project
cost at $10,358,800 in September 1994 dollars; and
WHEREAS, the project will replace diesel generation and its associated
expensive fuel transportation and storage needs; and
WHEREAS, in consideration of the above grants, the $10.4 million construction
cost and up to $2,000,000 in loans, if necessary, the project is expected to
be financially feasible if it is in commercial operation by January 1997.
NOW, THEREFORE BE IT RESOLVED TEAT:
Brent N. Petrie, General Manager, or his alternate, Thomas Hedlund, President
is hereby authorized to negotiate, execute, and administer any and all
documents and contracts required for granting funds to the Iliamna-Newhalen-
Nondalton Electric Cooperative, Inc. and managing funds on behalf of this
entity, in accordance with the policies and bylaws of the Cooperative.
Brent N. Petrie, General Manager, or his alternate, Thomas Hedlund,
President,is also authorized to execute any subsequent amendments to said
grant agreement to provide for adjustments to the project within the scope of
service and tasks, based upon the needs of the project.
PASSED AND APPROVED BY THE BOARD OF DIRECTORS ON
Yeas 7
Neas. ___ _
EXHIBIT B
INNEC AUDITED FINANCIAL STATEMENTS
Audited Financial Statements
I-N-N ELECTRIC
COOPERATIVE, INC.
June 30, 1993 and 1992
TABLE OF CONTENTS
Independent Auditor•s Report
Audited Financial Statements
Balance Sheets
Statements of Revenue and Patronage Capital
Statements of Cash Flows
Notes to Financial Statements
1
2-3
4
5-6
7-11
(!Jt lit/, r
-------------------------------
Independent Auditor's Report
9oa of Qirectors
=-~-~ s:ectric rative, ~nc.
I\I , Alaska
Certdred PubliC Accountants
330 1 C Street. Swte 520
Alaska 99503
Tef. (907} 5634547
FAX 561-7683
We a t accompanying balance sheets of I-N-N Electric
Coc Inc. as c f ,Tune 3 0, 1993 and 1992 and the related
sta~ements of revenue and t ital, and ash flows for the
ars then d. ial statements are the
'bility cf the Cooperative's management. Our responsibility
ress an opinion on these financial statements based on our
We con ted our audit .in acccrdance with rally accepted
audit1 standards. Those standards require that we plan and
perform :he audit to obtain reasonable assurance about whether the
fina:1cial statements are free of rna erial misstatement. An audit
ncludes examin ng, on a test basis, evidence supporting the
amounts and disclosures in Lhe financial statements. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
overall financial statement presentation. We believe that our
audit p des a re sonable basis r cur opinion.
In our inion, the financial statements referr to above present
fairly, in all material respects, the financial position of I-N-N
Electric Cooperative, Inc. as of June 30, 1993 ar..d 1992 and
results of its operations and cash flows for the ars then ended,
in conformity with generally accept accounting pr les.
Sept er 17, 1993
I-N-N ELECTRIC COOPERATIVE, INC.
BALANCE SHEETS
ASSETS
UTILITY PLANT: (Notes B & F)
Le
Ele t~ic p ant in servi e
Cons ruction work in progress
.W.ccumula
cepreciat
t ut
provision r
and amortization
plant
OTHER ASSETS:
Non-util ty p rty (Note C)
Investments in associat
organizations (Notes A & D)
Restricted funds (Note H)
CURRENT ASSETS:
Cas~ -general
Temporary stments
Accounts receivable (less provision
for doubt accounts of $8,945
in 1993 and $3,402 in 1992)
Materials and supplies (Note A)
Pr id se
TOTAL CURRENT ASSETS:
DEFERRED CPPRGES (Notes A & E)
2
June 30,
1993 1992
$2,478,658 $2,334,458
17,801 155,251
2,496,459 2,489,709
854,093 748,050
1,642,366 1, 741,659
25,000 25,000
96,873 58,192
10,753
121,873 93,945
233,841 189,767
243,165 379,293
77,648 84,142
104,473 106,443
27,936 16,735
687,063 776,380
250,79 129,482
~2,7Q2,093
EQUITIES AND LIABILITIES
EQUITIES:
Hember-ships
Patronage capital
LONG-TERM DEBT: (Note F)
Mortgage notes aska
rgy Authority
Notes payable-National Rural
Utilities Cooperative Finance
Corpor-ation
Less: Current inst lments
CURRENT LIABILITIES:
Note payable
Curr-ent portion of long-term debt
Accounts payable
Consumer deposits
Interest accrued
Other accrued liabilities
TOTAL CURRENT LIABILITIES
June 30,
1993
$ 1,435
764,067
765,502
1,65l,910
128,862
1, 780,772
61,400
1, 719,372
61,400
93,273
15,682
25,939
20,925
2::.7,219
$2.702,093
1992
s 1,395
612,580
613,975
1,703,925
135,736
1,839,661
58,900
1,780,761
140,000
58,900
60,011
32,324
28,065
27,430
346,730
$2,741,466
See accompanying notes to financial statements
3
I-N-N ELECTRIC COOPERATIVE, INC.
STATEMENTS OF REVENUE AND PATRONAGE CAPITAL
FOR THE YEARS ENDED JUNE 30, 1993 and 1992
OPERATING REVENUE & PATRONAGE CAPITAL
rati expense:
Power production-operation
Pc;...;er production-maintenance
Distribution-operations
stribution-maintenance
Consumer accounts
nistrative and eral
eciation and amortization
1993
272,235
32,402
17,924
32,672
45, 732
238,116
106,044
949
TOTAL OPERATING EXPENSE ___2_!§ , 0 7 4
Operating marg before fixed cha
Fixed r s:
Interest on long-term debt
Operating margins after fixed char s
Patronage c ital from associated
or izat ons
Net operating margins
Non-operating margins:
Interest income
Ot r income
Loss on di sition of assets
NET MARGINS
Patronage capital -:1ning of
PATRONAGE CAPITAL-END OF YEAR
r
s 135,503
65,315
70,188
38,681
108,869
39,239
3,379
151,487
612 580
See accompanying notes to financial statements
4
1992
265,221
38,887
14,698
32,024
51,498
251,880
106,375
936
761,519
112,401
76,269
36,132
4,075
40,207
30,169
415
482
70,309
542,271
S612~58Q
I-N-N ELECTRIC COOPERATIVE, INC.
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30, 1993 AND 1992
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash ~eceived from customers
ash ;:aid to suppliers/employees
lnterest and patronage received
Non-erating (expenses) revenue
Interest paid -long term debt
Taxes id
NET CASH PROVIDED BY
OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
t~on to plant
Increase in inventories
NET CASH USED BY
INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES:
Pr ipal payments on long-term debt
Increase (decrease) in l of credit
Increase (decrease) in consumer
deposits
Increase (decrease) in memberships
NET CASH PROVIDED (USED)
BY FINANCING ACTIVITIES
NET (DECREASE) INCREASE IN CASH
AND EQUIVALENTS
Cash and equivalents, beqinninq of year
CASH AND EQUIVALENTS, END OF YEAR
END OF YEAR CASH AND CASH EQUIVALENTS:
Cash general
Temporary investments
1993
$ 888,071
(717,499)
49,992
3,379
(73, 946)
949)
149,048
(6,750)
18 861)
:25, 611)
(58,889)
(140,000)
(16, 642)
40
(92,054)
569,060
$ 477,006
s 233,841
243, 65
See accompanyinq notes to financial statements
5
1992
$ 899,956
(597,530)
39,283
(67)
(54,013)
935)
286,694
(155, 446)
1,330
(50, 040)
81,000
18,237
120
49,317
181,895
387,165
s 569.060
$ 139,767
429,293
s 569.060
I-N-N ELECTRIC COOPERATIVE, INC.
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30, 1993 AND 1992
RECONCILIATION OF NET MARGINS TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
Net ins
ustments to reconcile net
ma ins to net cash provided
by rating activities:
Depreciation and amortization
(Increase) decrease in other
current assets
(Increase) decrease n accounts
receivable
(Increase) decrease materials
and supplies
(Increase) crease in prepaid
expense
(I~crease) crease in deferred
cha s
Increase (decrease) in accounts
yable
Increase ( rease) ln accrued
.il ilities
~ncrease (decrease) in accrued
Jnterest
Total Adjustments
NET CASH PROVIDED BY
OPERATING ACTIVITIES
1993
$151,487
106,044
(27,928)
6,494
20,830
(11,201)
(121,309)
33,2
(6, 505)
2 12 6)
2 439
~149!048
See accompanying notes to financial statements
6
1992
106,375
5,039
26,040
9' 171
(2,016)
(8,058)
57,580
81 9 60
3,293
21 385
I-N-N ELECTRIC COOPERATIVE, INC.
NOTES TO FINANCIAL STATEMENTS
Years ended June 30, 1993 and 1992
iWTE A: ACCOUNTING POLICIES
a counting records of -N-N Electric Cooperative, Inc. (Cooper-
ative) conform to the ~n form System of Accounts prescribed by the
ra 1 Energy Regulatory Cornrr.ission.
Addit ens to electric plant in
are re cost of contracted services,
direct labor and materials, and indirect overhead charges. ?or
p rty replaced or retired, the estimated average unit cost of
the property unit plus removal cost less salvage is charged to the
accum~lated provision for depre ation. Generally, no gain or loss
on sale or retirement is recognized for property other than
integrated operating units. The cost of replacement is added to
ele tric plant.
Contributions ~n
on are cr
property units.
of
of
Depreciation is computed on a straight-line basis at
annual rates:
Production Plant
Structures
Generation
Fuel Storage
Other
Electric Distribution System:
Poles, Fixtures and Transformers
Meters
Overhead Conductors and Services
Underground Conductors
General Plant:
Structures
Other
2.0%
7.0%
5.0%
7.0%
3.0%
3.0%
3.0%
2.5%
2.0%
15.0
Mater1als and Supplies: Inventory of Iaterials and supplies is
recorded at weighted average cost.
Extraordinary Maintenance: Non-:recurring ;:;"'traordinary ma~ntenance
costs incurred by the Ccoperat1ve are dererred and amort1zed over
up to three years to operating expense. Rates for energy sol~ are
established to compensate the Cooperative r e:<traordlnary
maintenance costs over the period of amortization.
7
I-N-N ELECTRIC COOPERATIVE, INC.
NOTES TO FINANCIAL STATEMENTS (Continued)
Years ended June 30, 1993 and 1992
The rative is tax
1 (c) ( 12) .
t under In::ernal
The nember
ation of
certified on
of the Cooperative elected to exempt
aska Public ~lities Commission in an
ruary 29, 1988.
associ a ted o zations are accounted
NOTE B: UTILITY PLANT
I-ra~ or lasses of the erative's utility plant as of June 30,
1993 1992 are as
P ct on Plant:
st~-....:.ctures
Generation
Fuel Storage
Ot r
Electric Dis:ribution:
rground
eve ad
Se ces
Meters and transformers
General Plant:
Structures
r
~lectric plant in se ce
truction work in progress
NOTE C: NON-UTILITY PROPERTY
1993
$ 115,450
515,023
212,910
80,670
146,777
693,359
209,245
149,269
195,274
160,681
2,478, 658
17,801
~2!496!459
1992
$ 115,450
515,023
:88,658
215,155
8,417
598,730
202,963
:48,2:2
185,494
156,356
2,334,458
155,251
~2!489!7Q9
As of June 30, 1993 1992 property not used in utility service
consis~s of a lot located in Illiamna, aska reco at a cost of
$25,000.
8
I-N-N ELECTRIC COOPERATIVE, INC.
NOTES TO FINANCIAL STATEMENTS (Continued)
Years ended June 30, 1993 and 1992
NOTE D: INVESTMENTS IN ASSOCIATED ORGANIZATIONS
Invesc~ents in associa organizations are with the National Rural
~ ili~ies Cooperative Finance Corporation (NRUCFC) and the Alaska
Rural 2lectric Cooperative Association Inc. (ARECA) as llows:
rship
ital Term Certificates
?atrona Capital
l\.RE:CA:
Insurance Exchange
Patronage Capital
NOTE E: DEFERRED CHARGES
1993
$ 1,000
10,787
7,716
77,370
$96,873
Deferred
ing:
rges at June 30, 1993 and 1992 consist of the
Prel nary investi tion costs
relating to Tazimina
hydroelectric project
Termination wages
Loss on disposition of
new equipment
Rate "'iling
~aior overhaul units
Top end unit #3
Other
1993
$'34,902
40,305
796
42,916
21,215
10,652_
1992
s 1,000
10,787
5,383
41,022
$ 58,192
llow-
1992
$ 79,723
3,024
1, 194
40,736
805
$l29,482
e Tazimina hydroelectric project costs will be capitaliz if the
proJect proceeds to construction or amortiz to expense if
project fs abandoned. The rate case costs are being amortized over
36 ~on s. The costs of major overhauls are being amortized over
periods ranging up to 36 mont:hs. :~mplo e terminations cost
amortiz over 12 months from June 1, 1993.
9
I-N-N ELECTRIC COOPERATIVE, INC.
NOTES TO FINANCIAL STATEMENTS (Continued)
Years ended June 30, 1993 and 1992
NOTE F: LONG-TERM DEBT
Long-term debt at June 30, 1 993 and 1992
Au
Eortgage notes due to the Alaska rgy
State of Alaska, as follows:
?ower Project Loan 8.6
Revolving Loan Fund-2%
Due Date
July 2004
Januaty 2005
1993
$ 285,452
1, 366,458
1992
$ 299,563
1,404,362
$1,703,925
Repayment of Power Project Loan is scheduled for semiannual
yments of $19,788 due July 1 and January 1 of each year.
Hepayment terms of the Revolving :Soan Fund notes provide for annual
payments of $65,990 due January 1 of each year.
The Alaska Energy Authority (AEA) offered to extend repayment of
the Revolving ~oan Fund notes in Noverrber 1990. Negotiations are
on going.
National Rural Utilities Cooperative Finance Cooperation:
NRUCFC note is secured by a diesel generator unit and is payable in
quarterly instal1nents of $4,882, including interest at variable
rates. The rate paid in 1993 was 9.50%. The note matures in 2003.
10
I-N-N ELECTRIC COOPERATIVE, INC.
NOTES TO FINANCIAL STATEMENTS (Continued)
Years ended June 30, 1993 and 1992
NOTE F: LONG-TERM DEBT (continued)
annual requirements of
outstanding as of June 30 1
r"Lscal Year
ing
1?94
995
l996
1997
1998
reafter
NRUCFC
$ 7,300
8,300
9, 10 0
10,000
11,000
8 3' 1
NOTE G: NOTES PAYABLE
AEl\
8-6% Loan
$ 15,400
16,700
18,200
19,800
2:L,500
3..93,8
AEA
2% Loan Total
$ 38,700 $ 61,400
39,400 64,400
40,200 67,500
41,000 70,800
41,850 74,350
,165,308 1,442,322
$11366!458
At June 30, 1992, the Cooperative owed a balance of$ 140,000 under
a line of credit from NRUCFC for the purchase of fuel inventory.
During 1993, loan was repaid in monthly installments of $20,000
plus variable interest at approximately 5.625%.
NOTE H: RESTRICTED FUNDS
Grant funds received for the Tazirrina hydroelectric project (see
Note E) are for the p.roj ect expenses only and are classified ;:;s
restricted use funds.
11
S<INfiA 'IVffil<rn..{ !>NimiV!>a}l Sli'H.LL:ii'J
:) .LIHIHX':t(
; r~
:: ! I ~ ~ ;~) J I
/
WALTER J. HICKEL, GOVERNOR
0 PO. BOX 112100
.JUNEAU.ALASKA 91111·2100
I
I
PHONE: (901) <165-4700
DEPARTMENT OF COMMUNITY AND
REGIONAL AFFAIRS
FAX: (901} 484>-a48
OFFICE OF THE COMMISSIONER
CJ .m w. 4TJ.I AVfiNUE. sum: m
ANCHORAGE. ALASKA l~t·234'
PUONti: (!107} 2fi9.450()
FAX: (907) 219-4520
The Honorable Hazel 0 'Leary
Secretary
U.S. Department of Energy
1000 Independence Avenue, S.W.
Washington, D.C. 20585
Subject: Tazimina Hydroelectric Project
Dear Secretary 0 'Leary:
October 2 7, 1994
RECEIVED ~-'......., l I
I i:...,.: J
...... " -... --
We are greatly encouraged by Congress' support of funding, through the
Department of Energy, for the Tazimina hydroelectric project here in Alaska.
Now that we are well into the first quarter of the 1995 fiscal year, we are hopeful
of working quickly with the Department in putting that funding to work.
The Alaska State Legislature, in May 1993, appropriated $5.0 million for the
Tazimina project, to be administered by the Alaska Department of Community and
Regional Affairs. This amount already puts in place Congress~ wishes for match
of the $3.4 million cleared by the Conference Committee.
The plans for the Tazimina hydro facility are well laid out, as are demonstrations
of the needs and benefits of the project. I look forward to working out the details
with the appropriate DOE personneL
DE:HH:EB
Sincerely,
Edgar Blatchford
Commissioner
2 1994
OAHI(l K. INOUYE. HAWAa
<~NfS~ f. HOLLING$ SOUTH CJIIIOUN..-.
J SI.NNETI JOI*ISTOI'<. tOVISIAIIIA
PATRICK 4. U-1'. VeRMONT
JIM SAS$lfl TlN~jESSEE
DENNIS OtCOHCIHi. ARlZONA
DALE llUMI>ERS, AII><AASAS
'~'IAN< fll. I.AUTEHIIERO;l, NW<' J~EV
TOM MAfiKIN, •OWA
b.AIUM.RA. A. Mhr:tJC.,$E:t. MAilT-.AJJO
MAAAY ~EIO, "'fVAOA
J. R061;R'T ~EIIIIn. l!lllflf'IAS~A
H£118 kOHL WISCONS"'
PATTY MURMY. WASHINGTON
OIAIINE FEINSTEIN. CAUFORNIA
MAA~ 0. HATFIElD. OREGON
t~l) STEVENS. ALAS¥;A
tHAD COCHIIAN. MlSS!SSIPPI
AU'OHSC M. !)'AMATO, NEW VOA~
ARLEN SP1!CTlA, PeNH!!:YWANIA
1'1!TE V OOUE!tl<:;l, NiW ... ~)(IC()
DOH NICKUS\. OK\.A!tOIIAA
PHll ORA,..., TIM$
CNAISTOI"'<IIt $-BONO. M111$0URI
SI.AOf GO~TON. WASI'UNGTON
MITCH M;CONHELL KENTUCKY
CONNIE MACK, F'ORlOA
CONRAil BURN$. MONT ANA
'RFC! ·vED SEP 1 n
Rnittd ~tatr.s £;matt
COMMITTEE ON APPROPRIATIONS
WASHINGTON. OC 20510-6025
JAioilt$" ~lflkJSH. STAFF O<RECTOR
J KEITH KENNEDY. MIN~ITI ST AH O!ll!CTOR September 15, 1994
Tinny Hedlund
President
INN Electric Cooperative
P.O. Box 210
Iliamna, AK 99606-0210
Recently, Conqress passed the Fiscal Year 1995 Energy and
Water oevelopment Appropriations Bill which contains $3.5 million
in funding for the Tazimina Hydroelectric Project. I have been a
long-time supporter of this endeavor and am glad to be able to
send you the good news. The federal funds allocated complement
the 1993 allocation of state funds by the Alaska Legislature of
$5 million.
When the final appropriations bill is signed by President
Clinton, my office will contact the Department of Energy to help
ensure disbursement of the funding for the project.
The Tazimina project is a step forward for rural development
in Alaska. Please keep me informed of your progress on this
important project.
With best wishes,
EXHIBIT D
SCHEDULE
10 ,~ ,~,
1 ENGI&RING AN) I.JCBSI Od
Stilt
lltiM
TAZIINA ~TRIC PROJECT
SliiMRY SCHEDULE
2 I~
3 I Oblli\ Pemis & ROWI 150dl 1001941 ~ .. , ... , M~~ _., ::t:J --=~-
.. I Filii 01191 • Real & Xmln U 1011dj
5 I Dl'tlllap T .m'Gen Speclllclllo Sid
II Bllmceol DeiVt 165d
7 FERCtJca. 177d
8
• OWNER FURNISIED ITEMS Od
10 T A. Callie l'roc:tnnwt 68d
11 Concn!le Blocicl ~ 1DI
12 Tlltn Generalln Proanrn1 Dd
13
14 ROADCONSTR. CONTRACT N
15 AdvlrtildicrAWIIII 6f
111 Mol:bt 6f
17 Road & Xnn lile Conslru:lio 74d
18
11 p .H. CC.STR. CONTRACT N
20 hMrllei!IIIUAWIWII SOd
21 MobizliiiDn & lnillll Eavallon 73d
22 Wlnler StUdawn 1d
23 ~CMIWor 141d
24 TJG, Eldttech & ~ 123d
21 COMIERCIAL OPN lei
Ptqect: TAZIMINA HYDRO PROJEC I Crlicll
Dill: 11.w.M
11l'W4j 1l2lW5
12112194 31'311115
1111&t nw5
11111.94 71171115
1120111 1120/H
1/2!WS o4l25l95
413195 1111495
4I'.W5 6.'61911
311111 311/H
~1115 ~
!il2495 7f'JSN!J
111NEI 1111W5
711111 1/WS
7/3S5 111&'95
W111iil 12!2tW5
12f.lG'll51 1212(W5
~.96 !lf131.16
S/1S96 11/1198
11111111 1111M
\, ,'','' •\ ~"::('"'·~·
I I I FINI ..... RDid &X... Lilt
.I ••• ~ TIIIIIGinSpdlc:aMana
I I I I i lllllnoedo.igll
., ........................ ·.~~
' I I
CMIER FURNISHED ll6G I I
•
1
•• 1 I I TA. Callll PRx:unlmenl
~.~?'\''•'~'' \ ''\' ,~~t?''\"~'"~ •''\''{'~'::::~'~'~ eon.:.. 8IDdll Pr--..1
I I : I
' Tlllinl G.nenllln ~
I
I
I ROAD CONSTR. CXJITRACT I
'•• I I -~Awn ••. •\-""' ........... -.....
I
I p .H. CONSTR. CONTRACT I
'·--~~ I
•••• r.ioblizab' lnililll b:MIIal I
1 wner shlddawn
I ~~-"~J\~:~:''('''"'"'~'~"t':'V~~~ ~CWWor
~"'~ ~t\~~,·~~~~~\~~~"R~~'~'1~ I
TIG, Eldotech &
ccuoJ.
Nonatlcal PR9I!II Mileslllne
S&lnnay '
• Roledllp 0
Paget
1111
10 I Nlme I 0\1 I ~ I Fi1llh I Sep I Od I Nil¥ I Dee I ad Feb I Mar I All' I May I .11111 JU I Aug I Sep I Od I New I Dec
1 ENGNl'O Nl) L.JCeNSitG ld 111114 111114 J ENGNfG ~ li:ENSIIG
I I I
[ 2 CcxnpiiiiFIIIwiiiSiudlel .QI ll/1194 1012&'94 cr-r.._..sw.
3 Rold IIIII Rt.t.:t Sllwy & G 88d 1CM.w4 11:W5 Aa.I•IIU••tlld an., &G•*h
4 llrale Phyllcll Model 58d 1711W4 2f2MIS lrllllill Pl.,.alloblll
5 I Filallze FERC AA**o 38d 11111194 1f.W5 f"niiiFERCAppil*l
6 I Aglncy CcnUtlllonl I 10d I 1f.W5
7 l&m~FERCAA**ian I 5dl 111&'95
8 IFERC~~ I 127dl 1fJOI95
g I Obtlil Olher Pennllund RO I 150d I 11Y.W4
10 IDe191AccesaRcat&Tnn I 106dl 11M.w4
1f I Review Rold DetVt wEER I ld I 2l2llllll
12 I DMiop Tll't*lo'Gelaalln s I 80c!l 12112194
13 I Review TtO Specs WlfERC I ld I 3/S1191
14 I Filii Des91· B*lce at Plan I 145d I 12112'94
11 I RevilwDalgn wRRC I ld I lllllllll
16
f7 I OWNER FURfiSHED nEMS I Od I 11201tl
11 I TRANSII. CABLE PROCMT I Del I 11211195
19 I Pilch. and Delver Trnm Li1 I 75d I 1118195
2D
21 I CONCR. BLOCKS PROCM'T I let I 41WI
22 I laue RFPs far Fab. at Blacks I 1d I 4'1195
23 I Bidcilg & Award· Bb:11s Fatril 21d I 4'4195
111&'951 • ,.., Ccndllla
11»951 I timiFERC....,
~ I , .......... _
3 ••••· •• ~--:;=r.·RC!Ns I I I
, 1 I RMw RDad De1iF IIIFERC I
3131185
3/S1/91
6(»'95
1/31111
11211/H
1I2IIJH
5I2NS
411111
.w.l5
5I2NS
01M11ap T~Speca I
I
I I I RMwT.O&t-~
I I I I
••••••••• Flnllo.lfl· ...... dl'lllllf
I I I I ~o.igawfERC
I I I I 1
I I : I I I
i I ONNER FURHIHD ITIMS I I
) I I I I 1
, I TRANSM. CAlli.£ PROCIIT I ' l I I 1 I I I PurdL-Dlllllr Tllllllll u. Cal*
; 1 I I I I I I
I
I I CCKR. a.oacs 'ri"
flauiRFPifarflb.dllb:b
' t I I
I • lllddlng & '-d . B1ocb F11bric1i
~-
11M
.1811£~] Mwl All' IMifl Jlld .IIJ I Aug I Slil Od I Nc7t I Dec I Jill
24 I Fab. & Stagilg of Cone. Blacks I 1-IOcl I sr.ws 11/I.WS : ....p.f Fllb. & ~of Calc. Blocb
25
21 ITURIINEGENERATORSPR I Odl 4'11H
27 I Bid TIG Padlagl I 24dl 4'3195
Prqect: T AZIMINA HYDRO PROJEC I Clllc:ll
Dill: 11&94
411111
~
• Normlcll
I I 1
'
,· t 1'\NIE GeERA;ORf fiR()CtRMT
I -lilT~~~
~ Mlesbl8 Sllnrr*Y • • RoledUp 0 ,.,
-• -... _ --_,
ID Name 1M start Fiilh ISeoiOctiNoviDec • .wd Fetd r. I ~ I M11Y I .hill .u I Aua I 5ep I Oct I Nov I Dec ai!FebiMiri~IMwi..U.I.U IAIIIIISe!IIOctiNowiDec '*'' 28 Evli. & Awd T/G Plcirlgl 10d ~ &1&95 i I • ~'tmfOPecaae i
! I 29 Flbrllae Tlltlile Gennlln 2liOd &19r'95 &1&'96 i ~ Tlltlill o...a. I ! I I 30 ~T.IGtDSie 15d &17196 61&'96 i • SNp T~IDSII I I I I ! 31 i I I I
I
I
! I I I
I
32 ROAD CONSTR. CONTRACT ld 111114 111114 ROAD CClNS'Jk. CONTRICT ' I : i I 33 Mtwtile&Bid lkf l'11115 41111115 !
-AMIII&IId I : I : : I 34 Awd 15d 4'121!15 5'2195 i -~ I ! : I I 35 Mobill*n 4Sd 512.WS 7~ : t MDiilllJilan ~ :
I I 38 Rl*l CGnstuctian 10d 7/2!MJ 10r'31.95 :
lad Conlndiol !
37 Lay T•••ullliaul.ill callle SOd 8116195 1004'95 ! I I
I Lar Tra.nilliollN Callie
i I I I 38 Deruut-.allun -Rl*l Ccnnlc:l 7d 111127135 111&'95
I
! I I OenLdiaion· Ro.l c:o.nc:..
i 3Q
I
I
I 40 P .H. CCIGTR. CONTRACT ld 111M 7MI t P.H. caGTR. CCHTRACT
! 41 AdYartile & Bid 35d 7111~ 8118195
I
-AIMitillt& Bid
42 Award 15d 8121195 9t'BI95 •'-' 43 Mobillltian to lamna 2Sd 91111115 1Ml95
-lolaiJizl6ln ID ..._
Col1ractar Sl.tJnilllls -45d 91'1&95 11117/95 -I
44 CGnhc:W SIDnllak
I
11n195 1111l95 I I 45 Mobizato P.H. 511 5d ! •=tK:_KM&-;
46 I~.H.D111&~ 45d 11114C.I5 11151116 ~ I I j
47 wn.S!Udown 1d 111Ml6 1116196 I 1 WiiWSlUduNI
46 Place Blacks r. Rivlrt.d 30d 311196 4'11196 !
I
-Pia BIDcis in R"llollt.d
49 Eltl:lvl* Sid Rock Orii/Nde 15d 3IMI6 3128196 i • EcNIISIIdRact~,ei:) I
50 IIDke struc:.ttn (oanc::nile) 25d 4'12196 5116196 I I -HIIIISN:UII~)
51 Fish Sc:nlen Struc. (c:cna-.) 25d 5117196 6I2CIII6 ! ! -F" .. Screen auc. (cuncr.)
' ! I 52 Fish Screen Stnr:. (saeet) 6d &'21196 6128196
I
1 Filii Screen SINe. (slall)
53 lnlale Slrut. Galles & Stell! 2lkl 711196 7l'JIJII¥J
I • lralll &We. tWis & S1ell I
I
54 lrhk8 stu:. Elec. & Crial& 10d 7fl!JIOO 8&'96 j I ... SN:. Elec. & Cor*~* L
Prqed: TAZIMINA HYDRO PROJEC Clllcal * 8 Nancrtical Pf19W MllesiDne SIIMwy • • RoledUp 0
Dale: 1 1 &'94
Plge2
\ F '-
1111 1111 .. '
ID Nne Dlr sat Fiilh ISeP I Oct I New I Dec .11n I Feb I Mar I AEir I MIY I .ud ~ I ALa I Sell I Oct I Nov f Dec Jan T Feb I a. I Arlr I M1¥ I J11d JU I Ala I Sell I Oct I Nod Dec Jan
55 WrbsCclnld (\p) 10d P/11198 8123196 1 WlllrConM (If!*) i 511 Bldll·lrDIIII*"IIh Saeln'Cond 5d &'2MI6 &'D96 1 •· Wlllafllll aa-cnw
57 Rock Tmntlg kl P.H.& Tlh 10d 4'12S6 ~ • RocUrinnilg II P Jt.& T.a.
ScreeWCrulh Ra.l Sllflce c 40d 4'2M6 tl.lOo1l6 : 58 aa..au.ll Road SllflctColnt
59 Sllfo ecu. & Fnl Grlde Ro 3ld w.l6 W13196 -s..r. eo-a FNIGradtRIII
II) R~& Ccnar nPWe 6d .v.M6 ~ 0 1 ~ &CIIIIIolll,..
I
'
61 lnllaiEIMD 3)11 OWlS SIZW6 .lniiii8Ma
I
62 lnlllll M' CcMi il Nctdl 3)11 4'2IW6 SIZW6 • ..... W.CCIIIdulln ......
63 hill Xnn ell* 11om PH tD 7d sr.za &'3196 I llltiiXAwl Cllill hal PH lo GAl
I
I 64 Tllll&frmrlra & ~ 3ld .o4l2&'96 616196 ! -Tllllfnrr IIIII. & SMicllyard
I!) PH Conc:refe PadiiiFcniTih 21d sue &3'96 I
-PH Corllnll PadmlniiTaim.
I. 66 lnslall ~ & Imbeds ~ &1598 8l2!il.l6
-lnllll pipiv & lmbedl I
Q Other EJeciMech ntal. 50d 5/T!M &'2196 ' Ohr EJd,tech inllall. '
68 EleciMactl ~ 25d 7/tiW& P/13196 ' -Eidlech~ ee Instal Tlltliii/Gennlln 58d 6/TSS 8/'DM lniiiiT~
812&95 m'96 i
-T~PIHtnlp I 70 TIGP~ 21d
I
! I 0
0 71 TIG Mectt. Ral & Ttllilg 7d 9r'26r96 tW.w& ' k1 TAJ Midi. Rail & T e.g
I 72 TIG Elec.. Ral & Telling Zld tons; 11/tM I l\1 TIGEiilc.RaU Te I
I 73 ' I I
I I 74 COMMERCIAL OPERATION Od 1111M 11/WI I I CCJ,I,ER~OPE
Prajec:t TAZIMINA HYDRO PROJEC Crlk:al I m HcrlcrMical
D*11fcW4
P!vess Mleslollll Sm1nwy • • RaledUp 0
Plge3
EXHIBIT E
CASH FWW ANALYSIS
Total 1994
WORK PACKAGE Contract OCT NOV
Value 1 l
Geotechnical & Surveying $260,000 $!30,000 $104,000
% of total spent each month 100_0% 500% 400%
Engineering, Permits, Constr. Mgmt $1,251,920 $37,558 $62,596
and Hydrauhc Modeling 1000% 3 0~'0 5.0%
Access Road and T ·Line Contract $2,014,976 $0 $0
100.0% 00% 0.0~"0
Turhine/Generntor Supply Contract $2,112,000 $0 $0
and Balance of equipment 100.0% o.o~c 0.0%
Main Construction Contract $2,760,186 $0 $0
]00.0~'6 0 0'?·• O.O'?io
Administration & Other $397,718 $7,954 $7,954
100.0% 2 !)'?;, 20%
Contingency and Escalation Account $1,561,957 $31,239 $31,239
I (spread evenly over construction period) 100.0% 2 o•;o 2.0%
TOTALS $10,358,757 $206,751 $205,790
MONTI fl. Y PERCENT OF TOTAL 20% 2 0~0
CUMULATIVE TOTAL $206,751 $4!2,541
CUMULATIVE PERCENT OF TOTAL 2.0'?/o 40%
TAZJMINA 1/fDROELECTRIC PROJECT t99o
cASH FLOW PRCliEC110N JAN FEB --r-!'fAR
WORK PACKAGE CONTD. Hi 17 18
Geotechnical & Surveying $0 $0 $0
o/o of total spent each month 0.0~'0 0.1)% 0.0~·0
Engineering, Permits, Con.•tr. Mgmt. $12,519 $12,519 $12,519
and Hydraulic Modeling 1.0% 1.0% 1.0%
Access Road and T-Linc Contract $0 $0 $0
0.0% 0.0~1.1 0.0'/o
Turbine/Generator Supply Contract $168,960 $168,960 $168,960
and Balance of equipment 8.0% &.O'?Io 8.0'/o
Main Construction Contract $27,602 $27,602 $27,602
1.0% LMo 1 o~-o
Administration & Other $!5,909 $15,909 $15,909
4.~-· 4_0% 4.0~/0
Contingency and Escalation Account $62,478 $62,478 $62,478
I (spread evenly over construction period) 4.0% 4.Mo 40%,
TOTALS $287,468 $287,468 $287,468
MONTHLY PERCENT OF TOTAL 2.8% 2_8% 2.8%
CUMULATIVE TOTAL $6,815,206 $7,102,674 $7,390,143
CUMULATIVE PERCENT OF TOTAL 65.8% 68_6% 7L3~/o
Notes: Assumes Turbme Contract Payment Schedule of equal monthly pa}ments unttl delivery
Assumes transmission Hne installed at same time as access road construction
--,.--
DEC
3
$26:ooo
100%
$87,634
7.0%
$0
0.0%
$0
0.0%
$0
0.0%
$15,909
4.0%
$62.478
4.0~:0
$192,021
) .9~··
$604,562
:i8%
-----
APR
19
$0
o.o~~
$25,038
2.0%
$0
0.0~~
$168,960
8.0~C.
$27,602
l.O~.
$15,909
4.0%
$62,478
4.0%
$299,987
2 9" ••
TAZIMINA H\'DROELECTRlC PROJECT
CASH FLOW PROJECTION
Estimated on September 16, 1994
1995
JAN FF:B I\ fAR APR
4 5 6 7
$0 $0 $0 $0
0.0% 0.0% 0_0% 00~''
$!00,154 $100,154 $!00,154 $100,154
8.0% 8.~'0 80% 8.0%
$0 $0 $0 $0
0.0% 0.0% 0.0% 00%
$0 $0 $0 $84,480
0.0~'. 0~~ O.O'?Io 4 O'?;i
$0 $0 $0 $0
00% O.Of% 0.0% 00~!.
$15,909 $15,909 $15,909 $15,909
4.0% 40% 4.0'/o 4.0%
S62,4n $62,478 $62,478 $62,478
40% 4.0'/o 4.0% 4.0%
$178,541 $178,541 $178,541 $263,021
1.7% L7%~ L7% 2.~1%
$783,103 $961,643 $!,140,184 $1,403,204
7.6% 9.3~0 11.0% 13.5%
1\<lAY JUN JUL AUG
20 21 Z2 23
$0 $0 $0 $0
0.0% 0.0~'0 0.0'1. 00'!.
$25,038 $25,038 $25,038 $37,558
2.0'/o 2.00/0 2.~"0 3.0%
$0 $0 so $0
0_0% 0_0% 0.0'?1. 0.0%
$0 $0 $0 $0
0.0% 0_0'?/o 0.0% 0_0%
$193,213 $276,019 $276,019 $303,620
7.0~-'0 10 ()*,. 10.0% II 0~-.
$15,909 $15,909 $15,909 $15,909
4.0% 4~· 4.~0 4.0~4
$62,478 $62,478 $62,478 $62,478
4.0~'0 4.0'/o 4.0'/t 4 Oo/.
$296,638 $379,444 $379,444 $419,565
2.9% 3.7% 3.7% 4 H/•
$7,690,!30 $7,986,768 $8,366,212 $8,145,656 $9,165,221
74.2% 77.1% 80.8% 84.4% K8.5%
MAY J1JN JUL
8 9 10
$0 $0 $0
0.0% o o~>o 00'%
$100,154 $100,154 $50,077
8.0% 80% 4.0%
$80,599 $362,696 $402,995
4.0% 18 Ol·, 20.0%
$168.960 $168,960 $168,960
80% 8.0~-· 8.0~.
$0 $0 $110,407
0.0% 0.0°!& 4_01%
$15,909 $15,909 $15,909
4.0~/· 4.0% 4 o~~o
$62,478 $62,478 $62,478
4.0o/o 4.0'/6 4 o~~.
$428,100 $710,196 $810,826
4_1!/. 6.9"1. 7.8%
$1,831,304 $2,541,500 $3,352,327
17.7% 245% 32.4%
1996
SE!' OCT NOV
24 25 26
so $0 $0
0.0% 00% 1)()'/o
$37,558 $37,558 $0
3.0~~-3.0~0 0 0~/0
$0 $0 $0
0.0% 0.0% 0 O~cQ
$0 $0 $0
00,% O.Mo 0.(1%
$303,620 $303,620 $276,019
I LO!o ll.Mo 100%
$15,909 $15,909 $15,909
4 0~0 4.0% 4.00;,
$62,478 $62,478 $62,478
4.0o/o 4.0~-· 4.0%
$419,565 $419,565 $354,406
4.1'!. 4.1% 3A'tf.
$9,584,786 $10,004,351 $10,358,757
92.5% 96.6~'0 100.0'/o
AUG SEP
II 12
$0 $0
00% 0 0~:~
$37,558 $37,558
'lO~O 3.0°/o
$443,295 $443,295
22.0% 22 o~·o
$168,960 $168.960
8.0% 8.0~0
$138,009 $138,009
5.0% 5.0~/~
$15,909 $15,909
40% 4.0°/0
$62,418 $62,47S
4.0'/• 4.0°;0
$866,209 $866,209
8A~O 8.4~to
$4,218,535 $5,084,744
40.7!/o 491~'0
--1995
OCT NOV DEC
13 14 __ 15
$0 $0 ·w
0 !)'?/, 0 0°/o 0 O~··o
$37,558 $37,558 $12,519
3.0~/0 lO~~t } O~o
$282,097 $() $0
14.0% (J 0°•'i) \) !)~ G
$168,960 $168.961) $16~.960
8.0~-{1 KO~{j s.ol,
$138,009 $1l8.009 $55,211-l
s 0~--a s.o~-o :!.O~o
$15,909 $15,909 $15,909
•tO~o 4_0~-o -~.0°-o
$62,478 $62,478 $6~;178
·lO~o •tO~-o 4 0°-o
$705,011 $422,9!4 $315,070
6.8% 4J~.·o 30%
$5,789,755 $6,212,668 $6,5:::7,738
55.9~• 600% 63.0~.
x:\dalton\cashtlw2 whl
17-Nov-94
EXHIBIT F
GRANT DlSBURSEMENI' SCHEDULE
Exhibit F
Cash Disbursement Schedule
Year State Grant Available Federal Grant Available Other
1994
•.
October $4,904,000 $3,400,000
November 207,000
December 206,000
1995
January $192,000
February 179,000
March 179,000
April 179,000
May 263,000
June 428,000
July 710,000
August 811,000
September 866,000
October 684,000 $182,000
November 705,000 705,000
December 423,000
1996
January $316,000
February 287,000
March 287,000
April 287,000
May 300,000
June 297,000
July 316,000 $63,000
August 379,000
September 420,000
October 420,000
November 420,000
December 354,000
EXIDBIT G
ECONOMIC ANALYSIS SPREADSHEETS
HYDROELECTRIC PROJECT ECONOMICS
TAZIMINA IIYDROELECTRIC PROJECT
Asswnptions: BAS F. CASE 5%
Construction interest rate:
Bond Interest Rate:
Percent financed:
Kilowatt houn prod .I year:
To!Jol Capital Cost:
Number yean< of loan
YEAR .................................................. ......... .
Operating Revenues:
Power Price (price escalated @ 5~. to represent 5~ u load growth)
Sale of Electricity Revenues
Total Revenues;
1996
Operating Expenses (atmualassumcd escalation sl10wn in parentheses)
Operating Labor ( 4~ o)
Maintenance Expenses (5%)
Land Use Payments (0%)
Insurance ( 4%)
Permit Fees (2%)
Maintaining Diesel Plant On Stand-by (4~•)
Diesel Fuel For 3% of Load (4% fuel, 5% load growth)
Savings From Deferred Fuel Tankage Rehabilitation (O~o)
Administrative Fees (5%)
Total F."J'enses:
Debt Service
Interest Expense
Principal Repayment
Total Debt Service
Operating Cash Flow
EQUITY Contribution
Total Capital Expcditures
8400012
9961000
0 03
0.050 (These arc global variables)
0.05000
15.671
1775641 (July to June 1994 actu.tl)
9961000 (Not including indirects)
30
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 200!1 2009 2010 2011 2012 211!3 ..............................................................................................................................................
OJ03
182358
0108 0.113 0.119 0.125
191476 201050 211103 221658
0,131
231741
0.138 0.145 0.152 0.159 0.167 0.176 lUH-1 0.19-1 tl.ll>J lUI~ u 221
244378 256596 269426 282898 297043 311895 3274119 3-13864 361()57 3791 J() 39!1065
IM235M 19147& 20itl50 211103 221658 232741 24H7H 2565% 269426 2!12K9X 2970H .liiK9S .llH~'l lnl!t.-1 .H>!OYI !7'1110 i'!HIIh5
70000
15000
20000
10000
3000
20000
4368
-35000
15000
72800
15750
20000
10400
3060
20800
-1770
-35000
15750
75712
16538
20000
10816
3121
21632
5209
-35000
16538
78740
17364
20000
11249
3184
22497
5688
-35000
17364
81890
18233
20000
11699
3247
23397
6211
-35000
18233
85166
19144
20000
12167
3312
24333
6783
-35000
19144
88572
20101
20000
12653
3378
25306
7407
-35000
20101
92115
21107
20000
13159
3446
26319
!1088
·35000
21107
95800
22162
20000
13686
3515
27371
8832
-35000
22162
99632
23270
20000
14233
3585
28466
9645
-35000
23270
103617
244.l3
20000
14!!02
3657
29605
10532
-35000
24433
IH7762
25655
20000
15395
3730
30789
11501
-35000
25655
112072
26938
20000
16010
3805
32021
12559
-35000
26938
11655 5
l!Wi5
20000
16651
3881
33301
13715
-15000
28285
121217
29699
20000
17317
3958
34634
14976
·35000
29699
121.0(,,,
311!!4
21l000
IKOWl
4(B8
JMIJ9
16354
"35000
31184
llllll'J
327-l.l
20000
1873()
4118
17~6()
17!!59
·35000
:l274l
122368 128330 134565 141087 147910 155049 162520 170340 178528 187101 196080 205487 215343 225672 236500 2-171!5-1 2591&2
73049
23495
101545
-41554
76875
24670
101545
-38393
75641
25903
101545
-35059
743·16
27199
101545
-31529
72986
28558
101545
-27796
71558
29986
101545
-23853
70059
31486
101545
-19687
68485
33060
101545
-15288
66832
34713
101545
-10646
65096
36449
10 15·15
-5748
63173
38271
101 'i~5
·582
61360
40185
101545
4863
59.l'i1
42194
101545
106()2
57241
44304
101545
16647
55026
46519
101545
23012
52700
4K845
1015~5
29711
50258
51287
1!)15-15
Real Discount Rate For Economic Analysis ..................................... ••••••••••• • ......... •••+••• ............................................................................................................................................. +++++++
PV of Operating Cash Flow
(Adjust power ptice Wltilswn approximates zero)
Debt Principal~
Amual Loan Payments~
Annual interest
Amual principal
6166
(swn)
-40344
0.971
1560988
101545
78049
23495
-3619-1
0.943 .......
101545
76875
24670
-32084
0.915 .......
101545
75641
25903
·280 13
0.888
•••••••
101545
74346
27199
·23977
0.863
•••••••
101545
72986
28558
-19976
0.837
• ••••••
101545
71558
29986
-16007
0.813 .......
101545
70059
31486
-12069
0.789 .......
101545
68485
33060
-8159
0.766 . ..... .
101545
66832
34713
-4277
0.744 ........
101545
65096
36449
-421
0.722 .......
101545
63173
38271
3-111
0.701 . ..... .
101545
61360
40185
7219
0.681
.........
101545
59351
42194
I 1006
0.661 .......
101545
57241
44304
14771
tl 642
101545
55026
465!9
1!1515
() 623 . ..... .
101545
52700
48845
2224()
0.605 . ....... .
101545
5()25!!
51287
2014 2015 2016 2017 2018
••••••• ........... ........ ........ . ........
0.235 0.247 0.260 0.272 0.2~6
417969 438867 460810 483851 508043
417969 438867 460810 483851 508043
136353 141807 147479 153379 159514
34380 36099 37904 39799 41789
20000 20000 20000 0 0
19479 20258 21068 21911 22788
4201 4285 4370 4458 4547
38958 40516 42137 43822 45575
19502 21296 23255 25395 27731
-35000 -35000 -35000
34380 36099 37904 39799 41789
272253 285361 299119 328564 343734
47693 45001 42174 39205 36088
53851 56544 59371 62340 65457
101545 101545 101545 101545 101545
44171 51962 60147 53743 62765
....... . ...... ....... ....... . ......
25946 29633 33302 28889 32757
0.587 0.570 0.554 0.538 0.522
953866 900015 843471 784100 121760
101545 101545 101545 101545 101545
47693 45001 42174 39205 36088
53851 56544 59371 62340 65457
NOTES: L Power Price is shown here escalating at 5% per year for calculation pwposes. In reality, we arc assuming power price is constant in the future at the 1997 rate and the load is growing at 5~o. l:ksults an: the same.
2. To model different load growth projections, change power price escalation to match desired load growth rate.
3. To model impact of other financing methods or grants, change percent financed so "equity contribution" equals the grant amounts. Then adjust "power price" in the first year until the PV of operating cash llow approximates zero.
4. Only first 20 years of operation are shown and only 20 years included in the PV calculations for simplicity.
S. Land use payments are to pay for S400,000 in land use charges over 20 years at no int~"fesl.
6. Tank farm rehabilitation .avings b.,ed on avoiding $400,000 in rehab. costs linanced wl 20 year 6~o bonds.
HYDROELECTRIC PROlliCT ECONO!'vllCS (program updated 10121/94)
TAZIMINAIIYDROELECTRIC PROJECT
Asswnptions: BASE CASE 7%
Construction interest rate: !1.07() (These are global variable•)
Bond Interest Rate: 0.070
Percent financed: 15.671
Kilowatt hours prod./year: 1775641 (July w lwte 1994 actual)
Total Capital Cost: 9961000 (Not including indirects)
Nwnber years ofloan 30
YEAR 1996 1997 1998 1999 2000 20tH 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 .................................................... .......... ................................................ . ...... ....... . ...... . ...... • ••••• lilt ....... . ....... . .......................
Operating Revenues:
Power Price (price escalated @ 5~. to represent 5% load gro\rth) 0.1108 0.116 0.122 0.128 0.135 0.141 0.149 0.156 0.164 0.172 0.181 0.190 0.199 IU09 11219
Sale of Electricity Revenues 196812 206653 216985 227835 239226 251188 263747 276934 290781 305320 320586 336615 353446 371118 389674
Totall<cvcnues: 196812 206653 216985 227835 239226 251188 21>3747 276934 2907111 ]05120 3205X6 .B61>15 l51Ht. HI IIX lH%7-1
Operating Expenses (annual assumed escalation shown in parentheses)
Operating Labor (4%) 70000 72800 75712 78740 81890 85166 8K572 92115 95800 9<)632 103617 11)7762 112072 11&555 121217
Maint~nce Expenses (5%) 15000 15750 16538 17364 18233 19144 20101 21107 22162 23270 24433 25655 26938 28285 29699
Land Use Payments (0%) 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000
Insurance ( 4%) 10000 10400 10816 11249 11699 12167 12653 13159 13686 14233 14802 15395 16010 16651 17317
Pemtit Fees (2%) 3000 3060 3121 3184 3247 3312 3378 3446 3515 3585 3657 3730 3805 3881 3958
Maintaining Diesel Plant On Stand-by (4%) 20000 20800 21632 22497 23397 24333 25306 26319 27371 28466 29605 30789 32021 33301 34634
Diesel Fuel For 3% of Load (4% fuel, 5% load gro\rth) 4368 4770 5209 5688 6211 6783 7407 8088 8832 9645 10532 11501 12559 13715 14976
Savmgs From Deferred Fuel Tankage Rehabilitation (0%) -35000 -35000 -35000 -35000 -35000 -35000 -35000 -35000 -35000 -35000 -35000 -35000 -35000 -35000 -35000
Administrative Fees (5%) 15000 15750 16538 17364 18233 19144 20101 21107 22162 23270 24433 25655 26938 28285 29699
Total Expenses: 122368 128330 134565 141087 147910 1550-19 162520 170340 178528 187101 1960!W 205487 215343 225672 23t.5HO
Debt Service
Interest Expense !09269 108112 106!175 105550 104133 102617 100994 99258 97401 95413 932!17 9]()11 !18576 85971 8318<1
Principal Repayment 16525 17682 18920 20244 21661 23178 24800 26536 28393 30381 32508 34783 37218 39823 42611
Total Debt Service 125794 125794 125794 125794 125794 125794 125794 125794 125794 125794 125794 125794 125794 12579-1 IL5794
Operating Cash Flow -51350 -47472 -43374 -39047 -34478 -29656 -24567 -19201 -13541 -7575 ·12M9 5.134 12309 191>52 27.lSU
EQUITY Contribution 8400012
Total Capital Expeditures 9961000
Real Discooot Rate For Economic Analysis 0.03 ...................................... . .......... ........... ••••••••••••••••••••••••••••••••••••••• ....... ....... . ...... . ...... . ...... . ...... ........ ········ ........
PV of Operating Cash Flow 316 -49855 -44747 -39693 -34692 -29741 -24836 -1!.1976 -15157 -10378 -5637 -931 3741 8382 12992 17574
(Adjust power price Wltil swn approximates zero) (sum) 0.971 0.943 0.915 0.888 0.863 0.837 0.813 0.789 0.766 0.744 0.722 0.701 0.681 0.661 06--12
Debt Principal~ 1560988 ....... ....... ....... ••••••• ••••••• ....... ••••••• • •••••• ........ ....... . ...... ....... .......
Annual Loan Payments~ 125794 125794 125794 125794 125794 125794 125794 125794 125794 125794 125794 125794 125794 125794 125794
Annual interest 109269 108112 106875 105550 104133 102617 100994 99258 97401 95413 93287 91011 88576 85971 831!14
Annual principal 16525 17682 18920 20244 21661 23178 24800 26536 28393 30381 32508 34783 37218 39823 42611
2012 2013 2014 2015 2016 2017 2018
••••••• ••••••• ••••••• ••••••• ••••••• • ••••••••••••••••
0.230 0.242 0.254 0.267 0.280 0.29~ 0.309
409158 429616 451097 473652 497334 522201 548311
409158 429616 451097 473652 497334 52220 I 548311
126066 131109 136353 141807 147479 153379 159514
31184 32743 34380 36099 37904 39799 41789
20000 20000 20000 20000 20000 0 0
18009 18730 19479 20258 21068 21911 22788
4038 4118 4201 4285 4370 4458 4547
36019 37460 38958 40516 42137 43822 45575
16354 17859 19502 21296 23255 25395 27731
-35000 -35000 -35000 -35000 -35000
31184 32743 34380 36099 37904 39799 41789
247854 259762 272253 285361 299119 328564 343734
80201 77009 73594 69940 66030 61847 57371
45594 48785 52200 55854 59764 63948 68424
125794 125794 12579~ 125794 12579~ 125794 125794
35510 44060 53049 62~96 72421 67843 78783
••••••• ....... ....... . ...... ....... . ....... ···········
22128 26657 31161 35641 40098 36469 41116
0.623 0.605 0.587 0.570 0.554 0.538 0.522
••••••• ....... • •••••• 999146 943291 883527 819580
125794 125794 125794 125794 125794 125794 125794
80201 77009 73594 69940 66030 61847 57371
45594 48785 52200 55854 59764 63948 68424
NOTES: I_ Power Price is shown here escalating at 5% per year for calculation purposes_ In reality, we are assuming
power price is constant in the future at the 1997 rate and the load is growing at 5%_ Results are the same.
2. To model dilli:renlload growth projections, change power price escalation to match desired load gro1<1th rate.
3_ To model impact of other financing methods or grants, change percent financed so "equity contribution" equals
the grant amount.. Then adjUSt "power price" in the first year until the rv of operating cash flow approximates zero.
4. Only first 20 years of operation are shown and only 20 years included in the l'V cakulations for oimplicity.
S. Land use payments are to pay for $400,000 in land use charges over 20 years at no interC!II.
6, Tank farm rehabilitation savings based on avoiding $400,000 in rehab. costs financed wl 20 year Mo bonds.
HYDROELECTRIC PROJECT ECONOMICS
T AZIMINA HYDROELEC'ffi.IC PROJECT
Assumptions: BASE CASE 9%
Construo;tion interest rate:
Bond Interest !Ute:
Pcn:ent financed:
Kilowatt hOW'S prod.lyear:
Total Capital Cost:
Number years ofloan
YEAR ..................................................
Operating Revenues:
Power Price (price escalated @ 5% to represent 5~u load gro"th)
Sale of Electricity Revenues
Total Revenues:
Operating Expenses (annual assumed escalation shown in parentheses)
Operating Labor (4%)
Maintenance Expenses (5%)
Land Usc Payments (0%)
Insurance (4%)
Pennit Fees (2%)
Maintaining Diesel Plant On Stand-by (4%)
Diesel Fuel For 3% of Load (4% fuel, 5% load growth)
Savings From Deferred Fuel Tankage Rehabilitation (0%)
Administrative Fees (5%)
Total Expenses:
Debt Service
Interest Expense
Principal Repayment
Total Debt Service
Operating Cash Flow
EQUITY Contribution
Total Capital Expeditures
Real DiscoWlt Rate For Economic Analysis
•••••••••••••••••••••••••••••••••••••
PV of Operating Cash Flow
(Adjust power price until sum approximates zero)
Debt Principal~
Annual Loan Payments~
Annual interest
Annual principal
1996 .........
8400012
9961000
0.03
(program updated 10121194)
0.090
0090
15.671
(These are global variables)
1775641 (July to JWte 1994 actual)
9961000 (Not including indirects)
30
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2001 200H 20119 2U II) 21lll ........................................................................................................................
0.119~ 0.126 0.132 0.139 0.146 0.153 0.160 0.169 0.177 (l.IM(> 0 195 O.:>OS 0.215 lUll>
212633 223265 234428 246149 258457 271380 lM4949 299196 314156 329864 346357 363615 381858 40U951
0.2.'7
-1209'19
212633 223265 234428 246149 25lH51 271380 284949 299196 314156 329864 346357 36.!675 l8l858 ·100951 4..'11'l'N
70000
15000
20000
10000
3000
20000
4368
-35000
15000
72800
15750
20000
10400
3060
20800
4770
-35000
15750
75712
16538
20000
10816
3121
21632
5209
-35000
16538
78740
17364
20000
11249
3184
22497
5688
-35000
17364
81890
18233
20000
11699
3247
:.!3397
6211
-35000
18233
85166
19144
20000
12167
3312
24333
6783
-35000
19144
88572
20101
20000
12653
3378
25306
7407
-35000
20101
92115
21107
20000
13159
3446
26319
8088
-35000
21107
95800
22162
20000
13686
3515
27371
8832
-35000
22162
99632
23270
20000
14233
3585
28466
9645
-35000
23270
103611
24433
20000
141!02
3657
29605
10532
-35000
24433
107762
25655
20000
15395
3130
3071!9
11501
-35000
25655
112071
26938
20000
16010
3805
32021
12559
-35000
26938
111>555
28285
20000
16651
3S81
33301
13715
-35000
282!!5
121111
29699
20000
17317
3951!
.l4634
14976
-35000
29699
122368 128330 134565 141087 147910 155049 162520 170340 178528 187101 196080 205487 215343 225672 2)(,500
140489 139458 138335
11452 12483 13606
137110
14831
135716
16165
134321
17620
132735
19206
131006
20935
129122
22819
127068
24872
124830
21111
122390
29551
119730
32211
116831
35109
113672
38269
151941 151941 151941 151941 151941 151941 151941 1519-tl 151941 151941 151941 151941 151941 151941 151911
-61676 -57006 -52078 -46878 -41394 -35610 -29512 -23085 -16313 -9178 -1665 6247 14515 23338 32557
............. ........... ........ ........ ........ ........ ....... ....... ......... ....... ....... ......... ......... ........... . ................. .
244
(sum)
-59880
0.971
-S3734
0.943
-47659
0.915
-41651
0.888
-35707
0.863
·29823
0.837
-23996
0.813
-18224
0.789
-12502
0.766
-61!30
0.744
-1202
!L722
4381
0.701
9925
0.681
15129
0.661
20897
0642
1560988 ••••••• ••••••• ••••••• ••••••• ••••••• ••••••• ••••••• ••••••• ••••••• ••••••• ••••••• ••••••• ••••••• • ••••••
151941 151941 151941 151941 151941 151941 151941 151941 151941 151941 151941 151941 151941 151941 151941
140489 139458
11452 12483
138335
13606
137110
14831
135776
16165
134321
17620
132735
19206
131006
20935
129122
221119
127068
24872
124S30
27111
122390
29551
119730
32211
116M3!
35109
113672
38269
2012 2013 2014 2015 2016 2017 2018 .........................................................
0.249 0.261 0.274 0.288 0.303 0.318 0334
442049 464151 487359 511727 537313 564179 592388
442049 464151 487339 511727 537313 564179 591388
126066 131109 136353 141807 147479 153379 159514
31184 32743 34380 36099 37904 39799 41789
20000 20000 20000 20000 20000 0 0
18009 18730 19479 20258 21068 21911 22788
4038 4118 4201 4285 4370 4458 4547
36019 37460 38958 40516 42137 43822 45575
16354 17859 19502 21296 23255 25395 27731
-35000 -35000 -35000 -35000 -35000
31184 32743 34380 36099 37904 39799 41789
247854 259762 272253 285361 299119 328564 343734
I 10227 )06473 102381 97921 93059 87759 81983
41714 45468 49560 54020 58882 64181 69958
151941 151941 151941 151941 151941 151941 151941
42254 52449 63165 74425 86253 83674 96713
••••••• ....... ....... ........ ....... . ....................
26331 31732 37103 42443 47756 44979 50474
0.623 0.605 0.587 0.570 0.554 0.538 O.S22
••••••• ....... • •••••• ....... ••••••• 975105 910923
151941 151941 151941 151941 151941 151941 151941
110227 106473 102381 97921 93059 87759 81983
41714 45468 49560 54020 58882 64181 69958
NOTES: I, Power Price is shown here escalating at 5% per year for calculation purposes. In reality, we arc assuming
power price is constant in the future at the 1997 rate and the load is growing at 5% Results arc the same.
2. To model different load growth projections, change power price escalation to match desired load growth rate.
3. To model impact of other financing methods or grants, change percent financed sn "equity contribution" equals
the grant amounts. Then adju.•t "power price" in the first year until the PV of operating cash flow approximates zero.
4. Only first 20 years of operation are shown and only 20 yean included in the PV calculations for simplicity.
5. Land use payments are to pay for $400,000 in land use charges over 20 years at no interest.
6. Tank fann rehabilitation savings based on avoiding $400,000 in rehab. costs fmanccd wl 20 year 6% bonds.
ExmBIT H
PROPERTY MAP AND COPY OF .
RECORDED OPTION AGREEMENT
z~ ~
< ,..o z
<CZ 0 ~5 u
U.C) a..,
>-(,) -.... ~a a: a::
0::..
<o oz
0::<(
~
' ' ' ' ' \
' ' ' ' '
,~..... 1
'\ 3 ~ -'\'~~~ \ ~,~r· c
------t---~---L .
:!'·S;. --::-:1 ,.., '. 0 ~-
IO
I
_, ~~~~~, .1 G ......... v \ ~
0 '.
-~2, ' .
,j 0
... ~~-
~
..
z ...
;n /7""c BOOK ___ I~o~_PAGE __ ~/~~~--'-
liiamna Reco~J•~g: Diserict
OP~ION AGRE:E~ENT
':'HIS A.GREEMEN'I' is :nade ~hi.s 3! ~ day of Ju.t..:--' _:::...:.:.,:::...._ ___ _
1990, by and oe:ween ILIAMNA NA.':'!VES LIMITEJ, here~na~cer known
as "Optloncr," and ILIAMNA-NEWHALEN-NONDALTON ELECTRIC
COOPERATIVE, INC., hereinafter known as "Optionee."
WHEREAS, Optionee is actively p~rsuing the possibility
of constructlng a hydroelectric facility on the Tazimina River;
and
WHEREAS, the proposed location of this facility is on
Optionor's lands; and
WHEREAS, Optionor has agreed in principal to provide
sufficient lands to Optionee to allow for construction of the
hydroelectric facility, a transmission line, and access road,
NOW THEREFORE, for and in consideration of $2,000 paid
by Optionee to Optionor, the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:
1. The term of this Option Agreement shall be for a
period of Six (6) years commencing on :;r ... ~,.v "!.\ , 19~, and
ending on :Sui'~ ")I , 1991,..
2. During the term of this option, Optionee shall have
the right to purchase the property referenced above and more par-
ticularly described on the attached Attachment A for the sum of
THIRTY-FIVE THOUSAND TWO HUNDRED AND N0/100 DOLLARS ($35,200.00}
per acre for a 10.0-acre hydroelectric facility site for a total
for the site of THREE HUNDRED FIFTY-TWO THOUSAND AND N0/100
DOLLARS ($352,000.00) and SIX HUNDRED AND N0/100 DOLLARS
($600.00) per acre for a 100 feet wide distribution line and
access road right-of-way, containing approximately 80 acres for a
total for the right-of-way of FORTY-EIGHT THOUSAND AND N0/100
DOLLARS ($48,000). The grand total for the rights described
herein is FOUR HUNDRED THOUSAND AND N0/100 DOLLARS ($400,000.00)
to be paid in equal annual installments pursuant to the pro-
missory note attached hereto as Attachment B.
3. During the term of this option, Optionee shall have
a reasonable right of access across any and all property of
Optionor for the purposes of conducting required environmental,
engineering, and other studies.
/r rf')t
1:100~ I! PAGE I::; I ---'---niaml\& Recor .. ung Diltric:
4. Co~tempo:aneously herewith C?~ionor is executl~~
:he "Gran: c~ Easement, Fee Si~ple Estate, and Right of Entry,•
attached hereto as Attachment A. and Optionee is executing the
"Promissory Kate,• attached hereto as Attachment B, lt be1ng
expressly agreed and understood :hat said Attachments shall be
held in escrow and shall oe of no force and effect until such
time as O~tionee shall exercise its option as described herein.
Upon the exercise of the option, the "Grant of Easement, Fee
Simple Estate, and Right of Entry" shall be delivered to
O~tionee, and the "Promissory Note" shall be delivered to
Optionor. In the event Optionee does not exercise its option as
described herein then the "Grant of Easement, Fee Simple Estate,
and Right of Entry" shall be returned to Optionor, and the
"Promissory Note" shall be returned to Optionee.
WHEREFORE, the parties have set their hands and seals
this '1J~ day of -:Ft.A.t..Y' , 1990. ~~~----------------
STATE OF ALASKA
TEIRD JUDICIAL DISTRICT
ILIAMNA-
of said corporation.
OPTION AGREEMENT
Page 2
ss.
ILIAMNA-NEWHALEN-NONDALTON
ELECTRIC COOPERATIVE, INC.
By:,K~~
Its: ~r/&-"'="1
acknowledged before
--~~~~~------=-----' 1990, by .~~~~~~~~~~-----~ .of INC., on beha.l:f .. ~·· .
ILIAMNA NATIVES LIMITED
1/g t!OOK_.....;;; __ PAG&
llial'lln& Recor:1•ng Dutrict
STA':'E OF ~.:.ASK.;
ss.
THIRD JU~IC:A~ DISTRICT
. ~e;~egoing OPTI~G~RE~ T was acknowledged before
me-trns ::;> ~ day of 1 4 ~ , 1990, by
~(g_ 1 :.....']: ,.;.,JyU.&IIk. ,I tne . U -so :..YlF o: I ;:JI AMN A NAT :VES LIMITED , on beh a''-:il";;f""-::o~f;....<-s..:.a~l a~--e-n_t_,l_t_y-. ------
/
Optionor: Iliamna Natives, Ltd.
P.O. Box 16
Iliamna, AK 99606
Optionee: !liamna-Newhalen-Nondalton Electric Cooperative, Inc.
P.O. Box 210
Iliamna, AK 99606
OPTION AGREEMENT
Page 3
K~CW ALL MEN BY THESE ?RESENTS: Tha ILIA~N~ NATIVES
L!~:TED <hereinafter referred to as "Grantor" , the address ~or
which i.s ?.:). Box :..6, Iliamna, ,t;.laska 99606, :1cor;:>orated and
organized i.:1 accordance with Sectlon 8 of the Alaska Native
Clalms Sett:ement Act !hereinafter referred to as "ANCSA"I and
the laws of the State of AlasKa, for oood and valuable con-
sideration, the recei;:>t of which is h~reby acknowledged, does
hereby grant, subJect to the terms and conditions of its actual
or inchoate title to the lands involved, unto ILIAMNA-NEWHALEN-
NONDALTON ELECTRIC 200PERATIVE, INC. (hereinafter referred to as
"Grantee"!, the address for which is P.O. Box 210, Iliamna,
Alaska 99606, and to its successors or assions, an easement and
fee simple estate to certain :..ands of the undersigned, situate in
the Iliamna Recording District, Third Judicial District, State of
Alaska, and more particularly descri~ed as follows:
EASEMENT
A right-of-way 100 feet in width for an electrical
transmission and/or distribution-service line and
access road within the following-described land:
and:
Township 3 South, Range 33 West and 34 West,
Seward Meridian, Township 4 South, Range 33
West, 34 West, and 35 West, Seward Meridian,
from the existing Iliamna-Newhalen Road to the
hydroelectric site in Township 3 South, Range
33 West, Seward Meridian, Section 24, to be
more particularly described upon completion of
construction after an as-built survey, which
survey shall be attached hereunto and made
part hereof upon completion.
FEE SIMPLE
A 10.0 acre site to be located and configured by
the Grantee at its discretion for the construc-
tion, operation, and maintenance of a
hydroelectric facility including, but not limited
to, an intake structure, penstock, generator
house, and outflow within the following-described
land:
Township 3 South, Range 33 West,
Seward Meridian, Sec~ion 24, to be wore
particularly described upon completion
after an as-built survey, which survey
shall be attached hereto and made a
part hereof upon completion.
and to construct, reconstruct, rephase, repair, operate, and
maintain on or under the above-described lands and/or in, upon,
or under all streets, roads, or highways located upon said lands
an electric transmission and/or distribution line or system and
hydroelectric facility; to inspect and make such repairs,
changes, alterations, improvements, removals from, and substitu-
tions and additions to its facilities as Grantee may from time to
time d.eem advisable, including, by way of example and not by way
c: limitation, the right to increase or decrease the number of
conduits, w~res, cables, hand boles, manholes, connection boxes,
transformers, and transformer enclosures: to cut, trim, and
control the growth by chemical means, machinery, or otherwise of
ATTACHMENT "A"
.11. 17 -r "7 I I
ll 00 K_:...· .;::.;};... _ PAGE._!;..;' J;....,...,_u...:...: _
, ::•mna Recoc.lmg Distnct
trees and s~:~ooery ocated w1:h:n said· utility right-of-wav, or
tha ~ay ~~:er:ere ~ th or threaten to endanoer the ooerati~n and
ma1ntenance of said ~ne or svs:em lincludin~ anv con~rol of the
growth of ether vegetat1on ln.the right-of-wiy w~1ch may inciden-
tally and necessarily result from the means of control employed!;.
to keep the easement clear of al: buildings, structures, or other
obstruct~ons; and to license, oermit, or otherwlse aoree to the
JOlnt use or occupancy of the i:nes, system, or, if iny of said
system is placed underground, of the trench and related under-
ground facilities, by any other person, association, or cor-
poration.
~he Grantor agrees that Grantee shall have reasonable
right of entry, access, and use in or upon any and all lands o:
Grantor, including, but not l1mited to, those lands specifically
described herein, for the purposes of conducting the necessary
env1ronmental and engineering studies and fer the purpose of the
construction and maintenance of the facilities described herein.
The lands to actually be conveyed-by deed or easement shall be
specifically described upon completion of construction and an as-
built survey as otherwise provided for in this flGrant and Right
of Entry~ 11
The Grantor agrees that all poles, wires, cables, and
other facilities, including any main service entrance equipment,
installed in, upon, or under the above-described lands at
Grantee's expense shall remain ~he property of Grantee, removable
at :he option of Grantee.
The Grantor further agrees that upon completion of
construction and survey of the facilities described herein, the
appropriate conveyance documents shall be modified to reflect the
actual legal description of the property conveyed.
The Grantee agrees that the road constructed pursuant to
this document shall be a private road solely for the use of
Grantee in the construction, operation, and maintenance of the
improvements contemplated herein. Grantee agrees to construct a
locked gate across the subject road at its intersection with the
existing Iliamna-Nondalton road. Grantee shall provide Grantor
with a key to the lock.
Grantee agrees to indemnify and hold harmless Grantor
from liability with respect to hazardous substances or other
pollutants on the lands granted herein provided such liability is
not the fault of the Grantor.
Grantor shall have the right to repurchase the property
interests granted herein at the then fair market value in the
event of abandonment by Grantee. For the purposes of this
clause, "abandonment" shall be defined as three 131 years of con-
tinuous non-use of the property.
The Grantor covenants that it is the owner of record of
the surface estate of the above-described lands as evidenced by
an Interim Conveyance which conveyed title from the United States
pursuant to ANCSA, as recorded in the Iliamna Recording District,
Third Judicial District, State of Alaska, or that it has duly
selected said lands pursuant to Section 12 of ANCSA; and that
there are n~ liens, encumbrances, or claims !other than those
listed in said Interim Conveyance No. 402, including valid
existing rights, if any, or otherwise arising under ~NCSA and the
rules and regulations promulgated thereunderl affect1ng the sur-
face rights of any lands subject to this right-of-way easement
grant and deed which were created by or are the result of any
action taken by Grantor.
ATTACHMENT "A"
Page 2
_-t..., -"""""
:lOOK / 0" P.'1.GE ./ :/..::J ~~----~----r .iamna Rccor-.::ng District
IN W~TNESS ~rl~R~OF, G:-ar.tor has caused :hese presents to
be exec·..::ed by 1::.s du~y au::.!"lc=l::.ed o::::ice=s. rep:-esentat1ves, or
agents ttis day cf 1990.
::..IA!-NA NA'l'!VF:S LIMITED, Grantor
By'----------------------------------
::s: ______________________________ _
S':"f..TS OF ALASKA
ss.
':"E!RD JUDICIAL DISTRICT
The foregoing instrument· was acKnowledged before me this
day of , 1990, by , the
of ILIAMNA NATIVES LIMI'l'F.D, on behalf of said
Notary Public 1n and for Alaska
My commission expires: _________ _
11.'1"tACHMEN'1' "'A"
Page 3
S 400,00C.CO :9
ska
Fer value received, the unders1gned promises to pay on
denand ~o ~he order of r~rA~~A ~A~IVSS LI~I~~~ at Ilia~na,
A.:.aska, or a:: such o:her place as the holder or holders hereof
~ay designate i:1 wz:-iti:"lg, t.he ?:"i::tcipal sum of FOUR HUNDRED
~HOUSA~D A-~::l NO/ l 00 DOLLARS ( $400, 000. 00). in l.a wf ul money ot ::.he
0nited S~a:es of ~erica, withcu~ ir.~eres~~
Said sum shall be due and payable as follows:
Commencing on the date of ~he exercise of
the option of ·,o~hich· this promissory note
is "Attachment 8," eoual annual
installments of ~WEN~Y THOUS~~D ~~D
N0/100 DOLLARS ($20,000.00) for a period
of twenty (20) years.
~he undersigned shall not be deemed in default here-
under. and the obligation to pay sums due hereunder shall not
be subject to acceleration, untll the obligee hereunder has given
the undersigned thirty (30) days' written nctlce by certified
mail, return receipt requested, o: any alleged default under this
note. ~he undersioned shall have thirtv (30) davs :rom the
receipt of sal~ notice to cure any such. alleged default.
~he undersigned, or the principal, surety, guarantor,
endorser, or other party hereto, agrees to be bound, hereby
waives any homestead and exemption right against said debt,
waives demand, protest, and notice of demand, protest, or non-
payment, except as provided above, and expressly agrees that this
note or any payment hereunder may be extended from ti~e to time
and consents to the accep:anc~ of security, all without in any
way affecting the liability of such parties. If any suit or
action is instituted to collect this note or any part thereof,
the undersigned promises and agrees to pay, in addition to the
cos:s and disbursements provided by statute, a reasonable sum as
attorney's fees in such suit or action.
This note is to be construed according to the laws of
the State of Alaska.
DA~Eo at Iliamna. Alaska, this day of
1990.
~~~:;,g~cc
0Al'l ~ '1-lt!l!!.
Tl>olf ___ :2.L..:...:.:::;O..r../ ~
ILIAMNA-NEWHALEN-NONDALTON ELECTRIC
COOPERATIVE, INC.
A~'l'ACHMENT B
EXHIBIT I
DocUMENTS PERTAINING TO NATIONAL PARK SERVICE ISSUES
June 8. :993
Joan Dame: i
Chief. Div1sion of Envtronmen~al Qualny
National Park Service
Alaska Regtonal Office
2525 Gamoell Street. Room l 07
Anchorage. Alaska 99503-2892
Subject: Tazimtna River Hydropower ProjeCt
Dear Joan:
Thank you r"or meetmg with Vickie Bakker and me as weil as several National Park Service staff
yesterday regarding rhe National Park Service's concerns about the Tazimina River Hydropower
Project expressed in your letter dated December 30. 1992. Based on discussions during this
meeting, I feel that we can meet the concerns of the National Park Service through project
studies and engineenng design. The attached minutes summarize the discussion held and
conclusions reached during today' s meeung. Please let us know whether you concur with the
results of the meeting as described in these minutes. Thank you for your cooperation on this
project. We look forward to continuing to work closely with the National Park Service on this
project.
Sincerely.
HDR ENGINEERlNG. lNC.
ftc71.i<-~~
Mark Dalton
Project Manager
attachment
cc: Trig Olsen: INNEC
Dick Emerman: AEA
Dean Smnh: Kemppel. Huffman. and Ginder
Neii MacDonald: HDR
HDR Engineering, Inc. 4446 Business Park Boulevard
Building B
Anchorage. Alaska
99503-7118
RECEIVED
Telephone
907 562-2514
Fax
907 561-4621
.\1inut<:!S ut ag<:!n-:y -.:llUrdination m~::t1ng between the :\ational Park Serv1-:e (:--.;PS) and HDR Enginecnn~.
rerres<:!nting the lliamna-:-..:<:!whal<:!n-Nondalton Electric CLloperative. The meeting was held Jt the \iPS
.-'\!ask:.! Regional Otti-.:~ in An-.:hllrage .
.\leeung date: June-:. 1993
Suhje-.:t: T;rr1mina Ri,~r Hydropuwer proie-:t
.\leeting participants: Joan Darnell. NPS
Ted Birkedal. NPS
Allen Bennett. NPS
Ralph Tingey, NPS
Ross Kavanaugh. NPS
Larry Wright. NPS
Mark Dalton. HDR
Vi-:kie Bakker. HDR
The meeting -:ommenceJ at II: 15. The meeting began with a discussion of whether the project would
he li-.:ensed under Federal Energy Regulatory Commission (FERC) regulations. or whether an exemption
would he sought under section 2407 of the 1992 Federal Power Act and the implications of each. Mark
Dalton explained that. at present. attorneys for the applkant were drafting up a request for exemption
from FERC for suhmittal to that agency. He added that applicant would proceed with the FERC license
application pro-:ess until the exemption request was acted upon.
Ralph Tingey asked ahout plans to bring power to Port Alsworth and changes in the project scope as a
result. M.ark Dalton mentioned that the concept of developing interties to other communities such as Port
Alsworth. PeJro Bay. and Kokhanok haJ heen discussed hut was not a part of the project at this time.
He explained that the appli-:ant haJ asked HDR to look at the possihilities for upsizing the project. hut
in any scenario. impoundment was not proposed. He also noted that for the purposes of this meeting and
the -.:urrent pnKess. the NPS should only look at the current project.
Issues of suhsistence. road access. tisheries. and water quantity and quality were discussed brietly prior
to reviewing NPS -:lmcerns in the order presented in the letter from Joan Darnell to Mark Dalton dated
December 30. 1993. Discussion and resolution of NPS concerns are summarized below.
Aesthetics
Vickie Bakker noted that the NPS recommendations to design and -:onstrw.:t the project to have minimal
adverse visual effects and to photograph the falls in a variety of tlow conditions prior to construction
would he followed hy the appli-:ant.
Cultural Resource Survey
Ted Birkedal stated that for a NPS project. the agency would recommend additional an.:haeological survey
work. However. he noted that in the case of this project. the applicant had fultilled their responsibilities
hv cnnsultin!! with the State Historic Preservation Oftice (SHPO). SHPO did not recommend additional
s~rveys. and-the NPS would accept their comment as sufticient for this project.
Fisher:-· Studies
\brk Daltor. ~xplaini;!J that tht: applicant planned tLl conduct tisht:ry studies upstream and Jnwnstream
,,f thl;! falls in the vicinity ut the pruJt:Ct art:a. A discussion \vas held regarding puhlic tishing pressurl;!
along the luwer Tazimina River. a phenomcnon not related to this projt:ct. Vickie Bakker noted that
"urvey work had ht:t:n c:omplt:ted along the length of the lower Tazimina. including NPS lands. in earlier
rruit:ct studies. Ru:-s Kavanaugh informed HDR of a survey of the Tazimina River rishery Cl)mpleted
hy ADF&G in 1989 <tnd funded by the \'PS. whic:h he would provide to HDR. He stated that the
rroposed studies appeared adequate.
Puhlic Access
Larry Wright stated that a projec:t recreation plan is required hy FERC on all major hydropower projects
and may be required on smaller projects with signiticant recreation resources. Mark Dalton explained
the desire of the applicant. the land owner. and the local communities to keep the road dosed and not
enc:ourage u~e of project lands. Different methods of guaranteeing such dosure in the future. including
~stahl ishing ..:losure as a permit conuition. were discussed. Ralph Tingey and Joan Darnell noted that a
do~ure WllUid he Llitticult w enfor..:e and that wt: should all assume that the road would he used and
eventually upened. At this point. how~;ver. this future ust: (at sDme undetermined tim~ in th~ future)
would he dit'ticult to rlan for. Allen Bennett noted that most suhsistenc:e use of tht: road is Juring th~:
s~v~;n months of winter when ac:c~:ss is via snowmachine and not limitt:d w roads and trails.
Larry Wright summarized the NPS position. stating that a re~reation plan is not warranted at this point
in time. hut that th~ applicant should compl~te one in the future as nt:cessitated by public use of the road.
Th~: NPS would he a willing partner in development of this plan.
Road De.'iiJ!n
Y ickit: Bakker stateJ that tht! appl kant wuuld im:orporatt: the N PS re~ommt!ndation that the a-:~ess road
have a low rrutil~ to minimize its et'fe..:t on wildlife migration.
Suhsist~nc.:~
Ralph Tingey said that the projec:t would have an effect on subsistence and some son of evaluation should
he conduct~d to make sur~ local residents were aware of the potential impacts. He suggested something
modelled after an ANlLCA 810 evaluation.
VeJ!etation Mappin}!
Vi..:kie Bakkt:r not~d that vegetation mapping hy c:ommunity type had heen compl~tt:d for the 1982 Bristol
Bay Regional Power Plan. and that this work would he updat~d and retined. The mapping would be
suftici~nt to quantify hlsses of the different habitat typ~s. Allen B~nnett stated that a rare plant survey
should he wnJuc:ted. ht:caust: tht:re is a high rotential for some -:ategory 2 plams in this area. specitically
near the falls. No work of this type has heen dune in the area.
Wutt:r Quulity
Vi..:ki~ Bakker stated that the :\PS v .. ould he given an opportunity to review the proie..:t Erus1un and
Sediment C1ntrol Plan. as requested. She noted that HDR typi..:ally ..:ollects monthly samples f\lr une
ye;.H r,1r FERC rroie~ts. Sh~ stated that the applicant planned on collecting weekly or hiweekly samples
J~mng e.1riy summer. then reducing frequency to monthly in late summer. She noted that the applicant
\l,(lulJ ..:u!lc:.:t samrles dunng tlne or more major storm events . .1nd that they wouiJ monitor tor
temrerature. dissolveJ gases. rH. turhidity. tuta! suspended sediment. and conJuctivity. :\PS stan noted
that Gary Vequist of the NPS had drat'ted the t\PS ..:oncerns relating to water quality and water use. Garv
Vequist wuu!d he nut ut tt>wn tor two weeks. Vickie Bakker stated that HDR would ..:untact Gar~·
Vequ1st up~1n his return to discuss water quality issues.
Water Cse
Vickie Bakker stated that if a stream gage were installed. the applicant feels strongly that it should he
installed at the ~;xisting USGS gage house. Five years of Jata exist from this site. cstablis;hing .1
:.:urrelatiun hetwt:cn stage :.tnt! discharge. :mJ guotl ~hannel ~omrnl is present. Mark Dalton n\lted that
HDR already had suttkient int(Jrmation to rroduce a graph depicting the number uf days nver
wnhdrawals wouiJ hc greater than 50 rcrcent. a.s rcqucsted by the NPS. A discussion was hc!J regarding
the hest rla.:e w monitor prc...:iritation. Vi.:kie Bakker noted that additional tlow data were not necessary
f\lr rro1c..:t engineering. A t1 is.:ussiun was hdd rcgarding thc nced tor a stream gage. It was agreed that
the issuc of tlow reiateJ unly to aesthetks in this projcct and that low tlows that would dcwatcr thc falls
would nccur in winter wht:n use uf the falls was low. Vickie Bakker stated that HDR would contact Gary
Vequist regarding NPS water ust: concerns upon his return.
Wildlife Studies
Vh:kic Bakkcr nmed that some hahitat survey work had been completed for the 1982 Brisco! Bay Regional
Powcr Plan. Allen Bcnnctt stated that a moose and caribou survey should bc completed in early and late
winter. He nuted that the NPS wuuld he willing to hclp with this work. He explained that most of the
..:arihuu in this area werc likcly resident caribou trom the Groundhog Mountain herd and not part of the
:Vtukhatna herd. He notcd that thcir use uf the area varied widely from year to ycar. limiting the
usetulness of survey data. He statcd that nald eaglc nests should he located for compliance with the Bald
Eagle Protection Act. He nott:!d that he had seen peregrinc falcons in the Tazimina River canyon tw1ce
and the roremial t:!xisted for nesting in tht:! area. This should be investigated as well. He said that the
flott:!ntial for hear denning was low in the area but that they were present in the area. Practices during
.:onstruction and operation should he planncd to avoid attracting bears.
HOUSE OF REPRESENTATIVES
ENERGY POLICY ACT OF 1992
CONFERENCE REPORT
TO ACCOMPANY
H.R. 776
Ocroau. 5, 1992.-0rdered to be printed
U.S. GOVDHI.IZMT PJUNTING OPP'ICE
WA.SIIINGTON : 1992
Ruon
102-1018
3 .. _
a permit, right-of-way or otMr approool un.der this section prior to
enactment of this subsection. no· such permit, right-of-way, or other
approval shall be required for continued operation, including con·
tinued operation pursuant to section 15 of the Federal Power Act, of
such project unless the Commission determines that such project in·
valves the use of any additional public lands or National Forest
lands not subject to such reservation. ·:
( SEC. ZIOZ. DAMS IN NATIONAL PARK SYSTEM UNITS.
After tM date of enactment of this Act, the Federal Energy Reg·
ulatory Commission may not issue an original license under Part I
of the Federal Power Act (nor an exemption from such Part) for any
new hydroelectric power project located within the boundaries of
any unit of tM National Park System that would have a direct ad-
verse effect on Federal lands within any such unit. Nothing in this
section shall be construed as repealing any existing provision of law
(or affecting any treaty) ex:plicitly authorizing a hydroelectric power
project.
SEC. UOJ. THIRD PARTY CONTR.A.CTINC BY FERC.
(a) ENVIRONMENTAL IMPACT STATEMENTS.-Where the Federal
Energy Regulatory Commission is required to prepare a draft or
final environmental impact statement un.der the National Environ-
mental Policy Act of 1969 (.ff U.S.C. J,3f1 and following) in connec·
tion with an application for a license under part I of the Federal
Power Act. tM Commission may permit, at tM election of tM appli-
cant, a contractor, consultant or otMr person funded by tM appli-
cant and chosen by tM Commission from among a list of such indi-
viduals or companies determined by the Commission to be qualifted
to do such work, to prepare such statement for tM Commission. The
contractor shall ex:ecute a disclosure statement prepared by tM Com·
mission specifying that it has n.o financial or other interest in tM
outcome of tM project.. The Commission shall establish tM scope of
work and procedures to assure that tM contractor, consultant or
otMr person has n.o financial or other potential conflict of interest
in tM outcome of tM proceeding. Nothing herein shall affect tM
Commissions responsibility to comply with the National Enuiron-
mental Policy Act of 1969.
(b) ENVIRONMENTAL ASSESSMENTS.-Where an environmental
assessment is required under tM National Environmental Policy
Act of 1969 (42 U.S.C 1,321 and following) in connection with an
application for a license under part I of tM Federal Power Act. tM
Commission may permit an applicant. or a contractor, consultant or
other person sel«ted by the applicant. to prepare such enuironmen·
t(ll asse.ssment. The Commission shall institute procedures, includ-
ii&g pre-a.pplication consultations, to adui.se potential applicants ~f
studies or otMr information foraeeably required by the Comm~&·
sion. The Commission may allow the filing of such applicant-pre·
pared environmental assessments as part of the application. Noth-
ing Mrein shall affect tM Commission$ responsibility ·to comply
with the National Environmental Policy Act of 1969.
(c) EFFECTIVE DATE.-Thi.s section shall take effect with respect
to license 4pplications fil«:l after the-enactment of this Act..
337
SEC. U04.IMPROIIEME"T AT EXISTING FEDEIU.L FACJUTJES.
(a} STUDIES oF 0PPORTUN!TIE.S FOR INCREASED HYDROELECTRIC
'~ENERATION.-The Secretary, in consultation with the Secretary of
. ~e Interior and the Secretary of the Army, shall perform reconnais·
sance level studies of cost effective opportunities to increase hydro-
power production at e:::isting federally-owned or operated water reg·
ulation, storage, and conveyance facilities. Such studies shall be
completed within 2 years after the date of enactment of this Act and
transmitted to the Committee on Energy and Natural Resources and
the Committee on Environment and Public Works of the United
States Senate and to the Committee on Energy and Commerce, the
Committee on Interior and Insular Affairs, and the Committee on
Public Works and Transportation of the United States House of
Representatives. An individual study shall be prepared for each of
the Nation's principal river basins. Each such study shall identify
and describe with specificity the following matters:
{]) opportunities to improve the effu:iency of hydroelectric
generation at such facilities through, but not limited to, me·
chanical, structural, or operatwnal changes;
(2) opportunities to improve the effu:iency of the use of
water supplied or regulated by Federal projects where such im·
provement could, in the absence of legal or administrative con·
straints, make additional water supplies. available for hydro-
electric generation or reduce project energy use;
(3) opportunities to create additional generating capacity at
exi.~ting facilities through, but not limited to, the construction
of additional generating units, the uprating of generators and
turbines, and the construction of pumped storage facilities; and
(./;) preliminary assessment of the costs and the economic
and environmental consequences of such measures.
(b) EXCEPTION FOR PREVIOUS STUDIES.-In those cases where
studies of the type required by this section haue been prepared by
-'lny agency of the United States and published within the ten years
prior to the date of enactment of this Act, the Secretary may choose
not to perform new studies but incorporate the information devel-
oped by such studies into the study reports required by this section.
{c) AUTHORIV.,TION.-There is authorized to be appropriated in
each of the fr.scal years 1993, 199.1;, and 1995 such sums as may be
necessary to carry out the purposes of this section.
SEC. U()S. WATER CONSERVATION AND ENERGY PRODUCTION.
(a) STUDIE.S.-The Secretary of the Interior, acting pursuant to
the Federal reclamation laws (Act of June 17, 1902, 32 Stat. 388),
and Acts supplementary thereto and amendatory thereof, is author·
ized and directed to conduct feasibility investigations of opportuni·
ties to increase the amount of hydroelectric energy available for
marketing by the Secretary from Federal hydroelectric power genera-
tion facilities resulting from a reduction in the consumptive use of
such power for Federal reclamation project purposes or as a result of
an increase in the amount of water available for such generation be·
cause of water conservation efforts on Federal reclamation projects
or a combination thereof. The Secretary of the Interior is further au·
thori.zed and directed to conduct feasibility inuestigations of oppor-
tunities to mitigate damages to or enhance fr.sh and wildlife as a
result of increa.sing the amou~t of water aooilable for such purposes
because of water conseroatwn efforts on Feckral reclamation
projects. Such feasibility investigations shall iru::lw::k, but not be
limited to-
(1) an analysis of the technical, environmental. and eco-
nomic feasibility of reducing the amount of water diverted up-
stream of such Feckral hydroelectric power geTUration facilities
by Feckral reclamation projects;
(!J) an estimate of the reduction. if any, of project power
consumed as a result of the ckcreased amount of diversion;
(3) an estimate of the increase in the amount of electrical
eTUrgy and related revenues which would result from the mar-
keting of such power by the Secretary,·
(,4) an estimate of the (I.Sh and wildlife beTU(its which
would result from the ckcreased or m.odif~.ed diversions;
(5) a finding by the Secretary of the Interior that the activi-
ties proposed in the feasibility study can be carried out in ac-
cordance with applicable Feckral and State law, interstate com-
pacts and the contractual obligations of the Secretary,· and
(G) a finding by the affected Feckral Power Marketing Ad-
ministrator that the hydroelectric compoTUnt of the proposed
water con.servation feature is COJSt-effective and that the affected
Administrator is able to market the hydro-electric power expect-
ed to be geTUrated.
(b) CoNSULTATION.-In preparing feasibility studies pursuant to
this section, the Secretary of the Interior shall consult with, and
seek the recommenda.tions of, affected State. local and Indian tribal
interests, and shall provick for appropriate public comment.
(c) ArnBORIZATION.-There is hereby authorized to be appropri-
ated to the Secretary of the Interior such sums as may be TUcessary
to carry out this sectioTL
SEC. ZIH. FEDEIU.L PROJECTS IN TBE PACIFIC NORTHWEST.
Without further appropriation and without (I.SCal year limita·
tion, the Secretaries of the Interior and Army are authorized to
plan, design, construct. operate and maintain geTUration additions,
improvements and replacements, at their respective Feckral projects
in the Pacific Northwest Region as ckfined in the Pacific Northwest
Electric Power Planning and Conservation Act (Northwest Power
Act), Public Law DG-501 (lG U.S.C 839ol14)), and to operate and
maintain the respectiue Secretary~ power facilities· in the Region,
that the respectiue Secretary cktermines necessary or appropriate
and that the BonTUville Power Administrator subsequently ckter-
mines necat4ry or appropriate. with any funds that the Adminis-
trator cktermin.e:s to ma.ke aua.ilable to the respective Secretary for
such purpo81!8. Eat:h Secretary is authorized, without further al?pro-
pria.tion, to accept and use such funds for such purposes: Prouided.
That. such fund.s shall continue to be u.empt from sequatration
pursuant to section ~55(gX1) of the Balanced Budget and Emergency
Deficit Control Act of 1985: Proui.ded further, That thu section
shall not modify or affect the applicability of any prouision of the
NorthWt!llt PoUJitr Act. This provision shall be effective on October 1,
1993.
'39
SEC UD7. CERTA.IN PROJECTS IN ..tL.ASKA..
(a} AUT'HOR.ITY TO issUE EXEMPTIONS.-&cept as provided in
subsection (b) or (c), upon rf!:ceipt of an application un.der this sec·
tion, tM. Federal Energy Regulatory Commission rM.reinafter in this
section referred to as tM. "Commission'') may grant, notwithstand-
ing tM. provis~ns of section 2402, an exemption in whole or in part
from tM. requtrements of part I of the Federal Power Act, including
any license requirements contained in Part I of the Federal Power
Act, to the following facilities located in the State of Alaska:
(1) a project located at Sitka, Alaska, with application
numbered UL89-08-000;
(2} a project located at Juneau, Alaska, with preliminary
permit numbered 10&81-000; and
(3) a project located near Non.dalton, Alaska, with applica·
tion num!>ered EL88-25-001.
(b) CAPACITY LrMITA.TIONs.-No exemption un.der subsection (a)
shall be applicable to any facility the installed capacity of which
exceeds 5 megawatts.
(c) MA.NDA.TORY TERMs A.ND CoNDITIONS.-ln making the deter-
mination under subsection (a}, tM. Commission shall consult with
the United States Fish and Wildlife Service, the National Marine
Fisheries Service, and tM. State agency exercising administration
over the ftsh and wildlife resources of the State of Alaska, in the
manner provided by the Fish and Wildlife Coordination Act (16
U.S. C. 6&1, et seq.), and shall include in any such exemption-
(]) such terms and conditions as tM. Fish and Wildlife
Service, National Marine Fisheries Service, and the State
agency each determine are appropriate to prevent loss of, or
damage to, such resources and to otherwise carry out the pur-
poses of such Act, and
(2) such terms and conditions as the Commission deems ap·
propriate to ensure that such facility continues to comply with
the provisions of this section and terms and conditions included
in any such exemption.
(d) ENFORCEMENT.-Any violation of a term or condition of any
exemption granted untkr subsection (a) shall be treated as a viola·
tion of a ruk or order of the Commission un.der the Federal Power
Act.
(e) F'EES.-The Commission may establish fees which shall be
paid by an applicant for a license or exemption for a project that is
required to meet terms and conditions set by (tsh and wildlife agen·
cies under subsection (c). Such fees shall be adequate to reimburse
the (tsh and wildlife agencies referred to in subsection (c) for any
reasonable costs incurred in connection with any studies or other re·
views carried out by such agencies for purposes of compliance with
this section. The fees shall, subject to annual appropriations Acts,
be transferred to such agencies by the Commission for use sokly for
purposes of carrying out such studies and shall remain available
until experuied.
({)ExPEDITED PROCESSING.-A computed application for an ex·
emption under this w:tif'n shall be acted_ on ~ the q:>mm~io':' in
an expedited manner, m accordance wtth thts sectwn. wtthm 6
months after the date on which the application for such exemption
is applied for, or as promptly as practicable thereafter.