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HomeMy WebLinkAboutNenana River Hydropower Scheme Reconnaissance Study 2009Golden Valley Electric Association Nenana River Hydropower Scheme Healy, Alaska onnaissance Study Knight Piesold CONSULTING Rev. No. Rev A RevB RevC RevO Golden Valley Electric Association Nenana River Hydropower Scheme Reconnaissance Study Healy, Alaska Final Report January 7, 2009 Prepared for Golden Valley Electric Association P.O. Box 71249 Fairbanks, Alaska 99207 Telephone: (907) 452-1151 Date 12/01/08 12/18/08 12/22/08 01/07/09 Telefax: (907) 451-5657 Prepared by Knight Piesold and Co. 1580 Lincoln Street, Suite 1000 Denver, Colorado 80203 Telephone: (303) 629-8788 Telefax: (303) 629-8789 Project DV103-00209.01 Description Knight Piesold For Internal Review John Dwyer Issued for Review/Approval John Dwyer Issued for Review/Approval John Dwyer Issued as Final John Dwyer Client Paul Park Paul Park Paul Park Paul Park Knight Piesold CONSULTING Golden Valley Electric Association Nenana River Hydropower Scheme Healy, Alaska Reconnaissance Study Final Report Table of Contents List of Figures ................................................................................................................................ iii List of Appendices ......................................................................................................................... iv Executive Summary .................................................................................................................. ES-1 1.0 lntroduction ............................................................................................................................ l-1 1.1 Scope of Work ........................................................................................................... 1-1 1.2 Sources of Information .............................................................................................. 1-1 2.0 General Site Conditions ......................................................................................................... 2-1 2.1 Site Location .............................................................................................................. 2-1 2.2 Basin Description ....................................................................................................... 2-1 2.3 Climate ....................................................................................................................... 2-1 2.4 Geology ...................................................................................................................... 2-1 2.4.1 Regional Geologic Considerations ............................................................. 2-1 2.4.2 Diversion Alternatives (Alternatives I, 2 and 3) ........................................ 2-2 2.4.3 Lower lnstream Alternative (Alternative 4) ............................................... 2-2 3.0 Hydrology and Hydraulics ..................................................................................................... 3-1 3.1 Hydrologic Analysis .................................................................................................. 3-1 3.2 Instream Flow Requirement. ...................................................................................... 3-2 3.3 Peak Flows ................................................................................................................. 3-2 4.0 Project Arrangement and Alternatives ................................................................................... 4-1 4.1 Diversion Alternatives (Alternatives 1, 2 and 3) ...................................................... .4-1 4.2 lnstream Alternative (Alternative 4) .......................................................................... 4-3 4.2.1 Weir. ............................................................................................................ 4-3 4.2.2 Powerhouse Structure ................................................................................. 4-4 4.2.3 Turbine Types ............................................................................................. 4-4 DV1 03.00209.01 January 7, 2009 Rev 0--Nenana Hydropower Recon.doc Knight Piesold CONSULTING Table of Contents (Continued) 4.2.4 Transmission Line ....................................................................................... 4-4 4.2.5 Electrical Equipment ................................................................................... 4-5 4.2.5.1 Single Line Diagram .................................................................... 4-5 4.2.5.2 Electrical System Layout ............................................................. 4-6 4.2.6 Other Design Considerations ...................................................................... 4-6 5.0 Energy Generation Potential .................................................................................................. 5-1 6.0 Estimated Costs ...................................................................................................................... 6-1 6.1 General ....................................................................................................................... 6-1 6.2 Basis for Construction Costs ...................................................................................... 6-1 7.0 Economic Evaluation ............................................................................................................. 7-1 7 .I General ....................................................................................................................... 7-1 7.2 Annual Costs .............................................................................................................. 7-1 7.3 Cost-Benefit Evaluation ............................................................................................. 7-1 7.4 Economic Analysis Results ........................................................................................ 7-2 8.0 Critical Issues ......................................................................................................................... 8-1 9.0 Conclusions and Recommendations ...................................................................................... 9-1 9.1 Conclusions ................................................................................................................ 9-1 9.2 Recommendations ...................................................................................................... 9-2 10.0 Certification ....................................................................................................................... 10-1 11.0 References .......................................................................................................................... 11-1 DV103.00209.01 II January 7, 2009 Rev 0--Nenana Hydropower Recon.doc Knight Piesold CON8ULTING List of Figures Figure Title 2.1 Project Location 3.1 Nenana River near Healy -Mean Monthly Flow 3.2 Nenana River near Healy -Flow Duration Curve 4.1 Alternative 4-Conceptual Site Plan 4.2 Weir and Powerhouse-Conceptual Layout Plan 4.3 Weir and Powerhouse-Conceptual Layout Sections 4.4 Nenana River Hydro Project-Single Line Diagram 5.1 Average Monthly Power Output DV103.00209.01 Ill January 7. 2009 Rev 0--Nenana Hydropower Recon.doc Knight Piesold CONSULTING List of Appendices Appendix Title A Cost Estimate B Economic Analyses C Photos DV103.00209.01 IV January 7, 2009 Rev 0-Nenana Hydropower Recon.doc Knight Piesold CONSULTING Golden Valley Electric Association Nenana River Hydropower Scheme Healy, Alaska Reconnaissance Study Final Report Executive Summary This report presents a reconnaissance-level investigation of four alternatives for the construction of a small run-of-river hydropower facility on the Nenana River near the town of Healy, Alaska, and includes a description of the physical characteristics of the site and an analysis of the four alternatives. Also included are a conceptual project layout, an estimate of power generation, the estimated conceptual costs, and an analysis of the economic feasibility for the preferred alternative. The first phase of the study was a fatal flaw analysis to investigate if the project is technically feasible and if there are significant impediments to the project. This phase involved a site visit, a conceptual geologic and geotechnical assessment of the project site, evaluation of flow and head available for power generation, and an estimation of the potential turbine and generator capacity. The fatal flaw analysis did not identify technical fatal flaws that would preclude development of any of the four alternatives. Results of the fatal flaw analysis were summarized in a memo issued by Knight Piesold in November, 2008 (Knight Piesold, 2008). Alternatives I through 3 would consist of a low-impact diversion weir across the river at a sharp left bend in the river about 3 river miles upstream from the confluence with Healy Creek. A portion of the river flow would be conveyed from the diversion weir through a 6,800-foot long tunnel and/or penstock, to a powerhouse on the east bank of the Nenana River about 2,000 feet upstream from the Healy Creek confluence. Several major disadvantages make Alternatives 1 through 3 unattractive. Each of these alternatives require diversion of water from the river. Based on preliminary estimates received from the Alaska Department of Fish and Game, the instream flow requirements for fish (grayling) in this section of the river would considerably reduce the amount of flow available for diversion and thus the amount of energy that could be produced. Secondly, experience with other projects suggests that for a hydropower project to be attractive, the pressurized water conductor should be no longer than about 40 times the available net head. At this location, the available net head is about 50 feet, and thus the tunnel or penstock should be no longer than about 2,000 feet. The tunnels and/or penstocks for these alternatives DV103.00209.01 ES-1 January 7, 2009 Rev 0--Nenana Hydropower Recon.doc Knight Piesold CONSULTING would be over 6,800 feet long. In addition, the estimated diameter of the tunnel or penstock required to minimize head loss at the estimated design flow is 17.5 feet, which would be very expensive to construct. For these reasons, Alternatives 1 through 3 were eliminated from further consideration. Alternative 4 would consist of a low-head concrete weir across the full width of the river, with a powerhouse built into the weir. This facility would be located upstream of the Healy Creek confluence, where sufficient river width is available and a net head of about 15 feet can be achieved. This would be a low-head scheme, but there would be no penstock or tunnel, and no water would be diverted from the river. The mean monthly flow at this location varies from 434 cubic feet per second (cfs) in March to 9,884 cfs in June. The powerhouse would include three pit turbines and generators, each having a design flow of 3,250 cfs, a design head of 15 feet (4.57 m), and an installed capacity of 3,700 kilowatts (kW), for a total installed capacity of 11,100 kW. Based on 29 years of daily flow data from the nearby United States Geological Survey (USGS) gaging station, the average annual energy production for this facility was estimated to be 23.6 gigawatt-hours (GWh). Power could be produced for 167 days (May II through October 24) during an average year. The weir would need to include a fish ladder for grayling migration, with fish bypass flow requirements estimated to be I ,000 cfs. The weir would create an impoundment that would extend approximately 3,700 feet upstream, which probably would not affect whitewater rafting in this reach of the river. The last whitewater rapids in the river are just downstream of the section known as "Garner", which is about one mile upstream of the proposed hydropower site. Therefore, these rapids should not be influenced by the impoundment from the weir. A whitewater raft chute could be installed at the weir, which may require an additional bypass flow that has not been accounted for in this study. This issue would need to be coordinated with the local rafting companies and other interested parties. The estimated cost of the project is 55 million dollars, which is considered accurate to within plus or minus 30 percent. Assuming an installed capacity of 11.1 megawatts (MW), an avoided cost rate of $0. I 3/k Wh escalated at 2 percent per year, a 30-year operating period, and a discount rate of 6 percent, the project would have a positive net cash flow I 7 years after startup, a cost benefit ratio of 0.91, and a present worth of net benefits of -$5,176,000. Thus, the project is not economically feasible under these assumptions. Assuming a discount rate of 4 percent, the project has a positive cash flow in the sixth year after startup, with a cost benefit ratio of I .16, and a present worth of net benefits of $9,318,000. DV103.00209.01 ES-2 January 7, 2009 Rev 0--Nenana Hydropower Recon.doc Knight Piesold CON&ULTlNG Assuming a discount rate of 6 percent, the cash flow for the project is positive during the first year if the avoided cost rate is $0.176/kWh. If GVEA decides to continue investigating a hydropower project at this site, recommendations include: • Conduct further studies to determine ifthe economics can be improved by increasing the weir height and/or the design flow. • Perform detailed topographic mapping and river channel surveys at the site to define the site topography, including the channel geometry and the inundation area for the weir and reservoir. • Conduct geotechnical field investigations to determine the depth to bedrock for construction of the weir, the foundation treatment for the weir and powerhouse, dewatering requirements, and the availability of construction materials in the vicinity. • Initiate baseline environmental studies at the project site to provide the basis for an Environmental Assessment or Environmental Impact Statement. • Conduct an investigation of fisheries resources and recreational use to determine the requirements for bypass flows and other mitigation measures. • Investigate the potential effects of sediment loading on the weir, the impoundment and the turbines. • Identify the specific requirements for perm1ttmg and licensing of the proposed facility. FERC (Federal Energy Regulatory Commission) and other appropriate regulatory agencies and community stakeholders should be contacted early in the planning process to identify and address potential environmental and safety concerns. DV103.00209.01 ES-3 January 7, 2009 Rev 0--Nenana Hydropower Recon.doc Knight Piesold CONSULTING Golden Valley Electric Association Nenana River Hydropower Scheme Healy, Alaska Reconnaissance Study Final Report 1.0 Introduction Knight Piesold and Co. (Knight Piesold) was retained by Golden Valley Electric Association (GVEA) to investigate the potential for construction of a small run-of-river hydropower facility on the Nenana River near the town of Healy, Alaska. 1.1 Scope of Work The first phase of the study was a fatal flaw analysis to determine if the project is technically feasible and if there are significant impediments to the project. This phase involved a site visit, a conceptual geologic and geotechnical assessment of the project site, evaluation of flow and head available for power generation, an estimate of the potential turbine and generator capacity, and a description of four possible alternatives for the proposed hydropower facility. The results of the fatal flaw analysis were summarized in a memo issued by Knight Piesold in November, 2008 (Knight Piesold, 2008), which concluded that there were no technical fatal flaws to preclude development of a hydropower scheme. Four alternatives were identified for the hydropower facility during this phase of the study. The second phase, presented in this report, includes a more detailed description and analysis of the four alternatives. Also included for the preferred alternative are development of a conceptual project layout; an estimate of power generation; the estimated conceptual costs; and an analysis ofthe economic feasibility. 1.2 Sources of Information Information used during the study included survey data, information on energy economics, and facility design criteria received from GVEA; information on the physical setting collected by Knight Piesold staff during a site visit; hydrologic data and topographic maps from the United States Geological Survey (USGS); site imagery from Google Earth software; geologic reports DV103.00209.01 1-l January 7, 2009 Rev 0--Nenana Hydropower Recon.doc Knight Piesold CONSULTING from the Geophysical Institute at University of Alaska Fairbanks; and fisheries information from the State of Alaska Department of Fish and Game, Division of Habitat, Fairbanks, Alaska. DV103.00209.01 1-2 January 7, 2009 Rev 0--Nenana Hydropower Recon.doc Knight Piesold CONSULTING 2.0 General Site Conditions 2. 1 Site Location The proposed hydropower project is located on the Nenana River south of Healy, Alaska. The intake and power plant would likely be located in a stretch of the river between the Alaska Highway 3 bridge crossing and the confluence of Healy Creek. Figure 2.1 shows the locations of the four alternatives that were considered for this study. 2.2 Basin Description The Nenana River is a tributary of the Tanana River. Its drainage basin area above the gaging station near Healy is 1,910 square miles, and includes a portion of the northern slopes and foothills of the Alaska Range. Its headwater region is the Nenana Glacier, southwest of Mt. Deborah and northeast of Cantwell, and its total length is about 150 miles. The river flows north along the eastern boundary of Denali National Park to its confluence with the Tanana River at the town of Nenana, about 60 miles southwest of Fairbanks. The Nenana River is one of the most popular destinations for whitewater rafting in Alaska. 2.3 Climate The average annual precipitation in the Nenana River watershed ranges from over 50 inches in the high mountains of the Alaska Range, to 14.8 inches at Healy, which has an average annual snowfall of 79 inches. The climate of Healy is typical of interior Alaska, with seasonal temperature extremes that can range from -60°F in mid-winter to as high as +85°F in the summer. Average January temperatures range from -22°F to -2°F. Average July temperatures range from +50°F to +72°F. 2.4 Geology 2.4.1 Regional Geologic Considerations The area is characterized by exposed schist bedrock, alluvial material on the valley bottom and remnants of a complex series of outwash gravel terraces on the valley sides. Schist exposed at the valley sides is composed predominantly of quartz and fine grained mica. Foliation is well developed and strikes eastward and dips approximately 20° southward. Basalt dikes are common in well developed cross joints in the schist. The dikes are generally vertical, strike roughly north-south and range from 5-50 feet thick. The schist is inherently weak and prone to separating along planes of foliation. Once exposed to air and frost, fresh schist surfaces may DV103.00209.01 2-1 January 7, 2009 Rev 0--Nenana Hydropower Recon.doc Knight Piesold CONSULTING weather to depths of 5 to 6 inches in less then a year. Rockslides and rockfalls are common in the schist where foliation dips or fold axes plunge toward the river. The majority of bedrock in the area is covered with a thin veneer of gravels deposited from down-slope movements caused by freeze-thaw action. An anticline is located approximately Y4 mile north of the proposed project site, trending generally east-west, parallel to the south side of the Healy Creek. Aerial photographs of the region suggest deformation of Quaternary deposits in much of the northern foothills that may contribute to the regional seismic hazards. 2.4.2 Diversion Alternatives (Alternatives 1, 2 and 3) The diversion alternatives are located about 2 to 3 miles upstream from the Healy Creek confluence. The majority of subsurface or underground work in this area would be through schist containing widely spaced basalt dikes. Alluvial fan or glacial deposits may be encountered north of sections 4 and 5 where the topography flattens. These deposits are poorly consolidated and would make tunneling difficult. As such, a shorter tunnel option may be more viable. The schist should have sufficient strength to support the diversion structure. According to the river guide, the river is approximately 10 to 20 feet deep at the proposed diversion weir and intake location. Based on the exposed rock walls in this section of the valley, alluvial material is anticipated to be several feet thick. Remnant terrace and glacial deposits are exposed along the valley walls and may pose stability issues. Glacial deposits may contain clay and various unconsolidated soils. Instabilities were observed in the railroad fill slopes on the west side of the valley walls. Access to the diversion weir and tunnel inlet would involve constructing a bridge over Healy Creek and pioneering a road to the intake site. Large cuts into the steep schist slopes within a half mile downstream of the inlet would likely need to be stabilized by a combination of rock bolting, wire mesh and shotcrete. 2.4.3 Lower lnstream Alternative (Alternative 4) The lower instream alternative is located about 2,000 feet upstream of the Healy Creek confluence. Outwash gravel deposits are preserved in this area as remaining sections of an extensive complex of terraces. Gravels generally consist of well-rounded pebbles, cobbles, boulders and coarse to very coarse clean sands and clays. Gravel covered terraces form an DV103.00209.01 2-2 January 7, 2009 Rev 0--Nenana Hydropower Recon.doc Knight Piesold CONSULTING approximately one-mile wide area adjacent to the site. On the lower level terraces, gravels are generally between 5 to 10 feet thick. In the area of the proposed in-stream hydropower facility, the Nenana River has cut through the terrace gravels into the schist. Thus the left and right abutments are schist and the river bed is likely to consist of fluvial gravels, cobbles and boulders overlying schist. The fluvial gravels are estimated to be about 5 to I 0 feet thick. Slumps and earthflows are common in the unconsolidated or poorly consolidated debris on the canyon walls along the Nenana River. These failures are well documented along the railroad line adjacent to the site. According to previous studies of failures in the area, sliding planes for the failures are 10 to I 00 feet below the surface and up to several thousand feet wide. Additional investigation is required to confirm the potential impact of slope failures within the immediate site area. The Healy Fault trends east-west, and it is understood to be an active fault reverse fault. However, it appears that the fault is north and west of the proposed site development and would not cross the site. Additional investigation would be required to determine if this fault is a potential source of ground shaking that could affect the project. For this study, a suitable foundation for a low weir was assumed to be available at a reasonable depth at this site. This assumption should be confirmed by site-specific drilling and geotechnical analysis during future studies. A detailed discussion of the foundation treatment and river diversion required for this project is beyond the scope of this report, and should be addressed during feasibility studies and preliminary design. DV103.00209.01 2-3 January 7, 2009 Rev 0--Nenana Hydropower Recon.doc Knight Piesold COH&ULTING 3.0 Hydrology and Hydraulics 3. 1 Hydrologic Analysis The stream gaging station nearest the proposed project site on the Nenana River is located just upstream of the confluence with Healy Creek. The USGS monitored the flows at this station (No. 15518000) from October I, 1950 through September 30, 1979. The mean monthly flows for this station are shown in the table below and on Figure 3.1. The mean flow for the period from May through October is 6,353 cfs. The mean monthly flow varies from a low of 434 cfs in March to a high of 9,884 cfs in June. The peak recorded flow for the period of record was 46,800 cfs on July 25, 1967. The flow pattern is typical for interior Alaska, with high flows from May through October and low flows from November through April. The 1,910 square mile drainage area includes a number of glaciers, and therefore the summer flows tend to be sustained at a fairly high rate. Conversely, most of the winter precipitation falls as snow, and winter flows can become very low. Nenana River Station No. 15518000 near Healy, Alaska Mean Monthly Flow, cfs Jan Feb Mar Apr May Jun Jul Au~ Sep Oct Nov Dec Av~ 558 473 434 514 3,885 9,884 9,516 7,872 4,879 2,149 1,021 688 Max 890 640 610 1,700 17,000 35,900 38,600 29,200 18,200 5,470 2,600 2,600 Min 200 190 190 190 270 3,720 4,060 2,600 1,450 650 290 240 Mean daily flow records for the Nenana River gaging station 15518000 were downloaded from the USGS web site and used to develop the flow-duration curve shown in Figure 3.2. The flow- duration curve is a cumulative-frequency curve that shows the percentage of time that specified discharge values are met or exceeded during a given period. The practical power generation period was assumed to be from May through October. Therefore, the flow-duration curve was developed for only those months. As shown in the table above, the flows from November through April are significantly lower and the river typically freezes over. Based on the recorded flows for the period from May through October, it appears that there is probably adequate water available for power generation, depending on the amount of water that needs to remain in the river for rafting and fish. As a starting point, normal flows in the 25-percent exceedance range are selected for analysis of the project installed capacity and energy output. For the flow-duration curve shown in Figure DV103.00209.01 3-1 January 7, 2009 Rev 0--Nenana Hydropower Recon.doc Knight Piesold CONSULTINO 3.2, the 25-percent flow would be about I 0,000 cfs. Initially, GVEA assumed a design flow of 3,000 cfs for the Alternative Energy Grant Proposal for this project. This design flow would leave significant flow in the river for recreational rafting and fish. Depending on the alternative design selected for the hydropower facility, it may be possible to increase the design flow and still leave sufficient water in the river for rafting and fish. Cross sections of the river at USGS Gaging Station No. 15518000 near Healy, Alaska were obtained from the USGS for several discharges to assist in determining the depth of the water and shape of the river channel at this location. The cross sections indicate a deep channel on the right side of the river looking downstream that varies from about 11.0 to 12.5 feet deep for flows of about 3,400 to 7,200 cfs, respectively. 3.2 lnstream Flow Requirement The Alaska Department of Fish and Game filed an application with Alaska Department of Natural Resources' Division of Land and Water Management in 1996 for instream flow reservation (to protect and maintain fish habitat and passage) on a reach of the Nenana River that includes the area of interest. The table below shows the comparison of the mean daily flows in the river by month with the minimum flows requested for fisheries habitat. The table indicates that diversion available for power production would likely be limited to the months of June, July, August and September. Flows available for power production would be less than half of the mean daily flow during these months, which would significantly affect the economic feasibility of the hydropower facility. Nenana River near Healy, Alaska M can on ly ow an ns ream eserve ow eqUiremen s M th I Fl d I t R Fl R t Flow (cfs) Jan Feb Mar Apr May Jun Jut Au~ Sep Oct Nov Dec Mean Monthly Flow 558 473 434 514 3,885 9,884 9,516 7,872 4,879 2,149 1,021 688 lnstream Reserve Flow 527 470 430 500 3,506 5,760 5,760 5,760 3,506 2,104 1,000 670 3.3 Peak Flows Peak flows for selected return periods were estimated by applying the Type-1 Extremal (Gumbel) distribution to the annual peak flows for the period of record. The results of this analysis are DV103 00209.01 3-2 January 7, 2009 Rev 0--Nenana Hydropower Recon.doc Knight Piesold CONSULTING summarized in the table below. The I 00-year peak flow estimate ( 50,481 cfs) was used to develop a conceptual design and preliminary cost estimate for the weir and powerhouse. A weir and hydropower facility at this location may be required to be designed for the Probable Maximum Flood (PMF). Calculating the PMF was beyond the scope of this study. Return Period Peak Nenana River near Healy, Alaska Peak Flows for Selected Return Periods 2-yr 5-yr 10-yr 50-yr 100-yr Flow 20,836 28,772 34,027 45,592 50,481 (cfs) DV103.00209.01 3-3 Rev 0--Nenana Hydropower Recon.doc 500-yr 61,779 January 7, 2009 Knight Piesold CONSULTING 4.0 Project Arrangement and Alternatives Based on the available flow data and survey information collected by GVEA on the river gradient, several possible run-of-river alternatives were identified and evaluated for potential hydropower generation on the Nenana River upstream of the town of Healy. PDC Engineers (PDC Engineers, 2008) surveyed water surface elevations at three points along the Nenana River, beginning at the gaging station upstream from Healy Creek and continuing for 6.6 miles farther upstream. The total elevation difference over this distance was 149 feet, giving an average river gradient of 0.43 percent. This gradient shows that sufficient head is available for a potential run-of-river scheme at this location, such as described in Alternatives I through 3. An instream alternative (Alternative 4) that would utilize a low-head weir with an integral powerhouse was also considered. The four alternatives are described in the following sections, and their locations are shown on Figure 2.1. 4.1 Diversion Alternatives (Alternatives 1, 2 and 3) These alternatives would consist of a low-impact diversion weir across the river, at a sharp left bend in the river about 3 river miles upstream from the confluence with Healy Creek. The weir would be designed to incorporate a bypass channel or whitewater rafting chute. The almost vertical rock wall on the east side of the river at this bend would provide a good location for a tunnel portal. For Alternative I, the tunnel would extend for about 2 miles from the intake to a point on the east bank of the Nenana River, just upstream from the confluence with Healy Creek where the river starts to widen. According to the survey conducted by PDC Engineers, the river gradient is about 0.39 percent in this area, which would produce a net drop in the river water surface of about 62 feet over 3 miles. The tunnel diameter would be about 17.5 feet to provide a net head of about 50 feet. Based on a design flow of 3,000 cfs and net head of about 50 feet, the installed capacity would be about 10.8 MW. A second sharp left bend in the river and rock face was observed during the raft trip about 2 miles upstream of the Healy Creek confluence. The net drop in the river water surface for this location would be about 41 feet over the 2 miles. A 1.3 mile long tunnel would be required from this site to the powerhouse site near Healy Creek. The net head would be about 33 feet, which would provide an installed capacity of about 7 .l MW for a design flow of 3,000 cfs. Access to the weir and tunnel portal would be along the east side of the Nenana River and would be DV103.00209.01 4-l January 7, 2009 Rev 0--Nenana Hydropower Recon.doc Knight Piesold CONSULTING difficult and costly to construct due to the steep terrain and the required bridge across Healy Creek. According to discussions during the field trip, this is a smaller hydropower facility than GVEA is interested in developing; therefore, this site was excluded from further consideration. Alternative 2 would be a combination of a tunnel and penstock. The tunnel portal would be at the same location as Alternative I, with the tunnel extending for about 1.2 miles where it would daylight near the river about one mile upstream of the Healy Creek confluence. A penstock would then extend for about one mile from the end of the tunnel to the power plant site near Healy Creek as described above. The penstock would likely be above ground with steel or concrete supports. The tunnel and penstock would both be 17.5 feet in diameter. Based on a design flow of 3,000 cfs and net head of about 49 feet, the installed capacity would be about 10.6 MW. Alternative 3 would consist of a penstock along the east side of the Nenana River from the weir to the power plant site near Healy Creek. The penstock would be about 3 miles long and would likely be above ground with steel or concrete supports. The penstock would be about the same diameter as described above. Based on a design flow of 3,000 cfs and net head of about 44 feet, the installed capacity would be about 9.5 MW. Access for not only the weir, but also construction of the penstock would be difficult due to the steep terrain and extensive rock outcrops. Several major disadvantages make the diversion alternatives unattractive. Each of the alternatives described above require diversion of water from the river. As indicated earlier in this report, the instream flow requirement for fish would considerably reduce the amount of energy that could be generated with a diversion scheme. A general guideline is that for a hydropower project to be attractive the pressurized water conductor should be no longer than about 40 times the available net head. For the available net head of about 50 feet, the tunnel or penstock should be less than about 2,000 feet long. The tunnels described above are over about 6,800 feet long. In addition, the diameter of the tunnel and/or penstock would be relatively large, to minimize head losses for the design flow, which makes it very expensive to construct. For these reasons, the diversion alternatives were eliminated from further consideration. DV103.00209.01 4-2 January 7, 2009 Rev 0--Nenana Hydropower Recon.doc Knight Piesold CONSULTING 4.21nstream Alternative (Alternative 4) Alternative 4 would consist of a weir and hydropower facility located upstream of the Healy Creek confluence, where sufficient river width is available and a net head of about 15 feet can be achieved. The location should be as near to the confluence of Healy Creek as possible to minimize the length of the access road and transmission lines and to avoid interference with the railroad. The conceptual site plan for this alternative, showing possible locations for the access road and transmission line, is shown in Figure 4.1. The key components of this alternative are described in the following sections. 4.2.1 Weir A hydropower facility at this site would consist of a low-head concrete weir across the Nenana River with the hydropower facility integrated into the weir. This would be a low-head scheme, but there would be no penstock or tunnel and no water would be diverted from the river. The weir would need to include a fish ladder for fish migration, but the bypass flow requirements would probably be less than the instream flow requirements given in the table in Section 3.2. For this report, the bypass flow requirement for Alternative 4 was assumed to be I ,000 cfs. The weir would experience a relatively large head range and a very large potential flow variation. Based on the cross sections of the river obtained from the USGS, the weir would need to be a minimum of 30.0 feet above the river bed at its deepest point to maintain a head differential of about 15.0 feet on the turbines. These characteristics indicate use of bulb, "pit" or S-type turbines incorporated into the weir. For a design flow of about 9,750 cfs (based on the 25 percent exceedance on the flow duration curve) and a net head of about 15 feet, the installed capacity would be about II. I MW. The hydropower facility would consist of three 3.7 MW turbine and generator units. The weir would create an impoundment that would extend approximately 3,700 feet upstream, which probably would not affect whitewater rafting in this reach of the river. The last whitewater rapids in the river are just downstream of the area known as "Garner'', which is about one mile upstream of the proposed hydropower site. Therefore, these rapids should not be influenced by the impoundment from the weir. A whitewater raft chute could be installed at the weir, which may require an additional bypass flow that was not accounted for in this study. This issue would need to be coordinated with the local rafting companies and other interested parties. DV103.00209.01 4-3 January 7, 2009 Rev 0--Nenana Hydropower Recon.doc Knight Piesold CONSULTING The maximum weir height is uncertain due to the lack of adequate topographic mapping of the area. The exiting USGS Healy (D-4) Quadrangle, dated 1950, has a contour interval of I 00 feet, with some 50 foot contours. More detailed topographic data would be needed to establish the maximum potential height of the weir at this site. 4.2.2 Powerhouse Structure For the instream alternative described above, the powerhouse would be a semi-indoor reinforced concrete structure with roof hatches for access to install and maintain the turbines and generators. A permanent crane would not be included in the structure. The water intake would include gates for emergency shut down of the turbines. Stoplog slots would be included on the intake and draft tube to dewater the turbine to perform maintenance. Trashracks would be included on the intake to prevent large debris and ice from entering the waterway and damaging the turbines. The conceptual plan view and cross-sections of the weir and powerhouse are shown in Figures 4.2 and 4.3. 4.2.3 Turbine Types The instream site would be characterized as low-head, high-flow as far as the turbines are concerned. These working conditions are especially suited for propeller-type turbines. These turbines are available in vertical, inclined and horizontal shaft alignments and configurations designated by the names vertical shaft, tube, bulb, and pit types. For the instream site on the Nenana River, the preferred configuration would be the horizontal-axis, adjustable-blade pit type turbine, due to its high efficiency across the expected wide range of flows. This type of turbine has gained popularity over recent decades for its compact construction, ease of maintenance and efficient performance. The pit turbine considered for the instream site has three elements m the power train: an adjustable-blade Kaplan turbine, a speed increaser and a high-speed synchronous generator. These are arranged on a horizontal axis within the water passage, with access to the generator and speed increaser from above. 4.2.4 Transmission Line The existing GVEA 138 kilovolt (kV) transmission line from the existing Healy power plant is located about 0.5 miles northeast of the proposed instream hydropower site on the Nenana River. DV103.00209.01 4-4 January 7, 2009 Rev 0--Nenana Hydropower Recon.doc Knight Piesold C::ONSULTING 4.2.5 Electrical Equipment The electrical system would be designed to connect the three generators to the GVEA 138kV transmission line located just northeast of the powerhouse site. For the purpose of the electrical system design, the following assumptions were used: • Generators designed to operate at 13.8kV. • Electrical equipment housed in the generation building, no separate control needed. • Switchyard contains a 13.8 to 138kV step-up transformer and 138kV breaker switch. • Line protection required for the 138kV line. • Point of interconnection is the bushings of the 138kV potential transformers. GVEA to provide the dead end structure, lightening arrestors and disconnect switches. • GVEA to provide any Supervisory Control and Data Acquisition (SCADA) equipment required. The construction cost estimate does not include GVEA SCADA allowances. 4.2.5.1 Single Line Diagram A preliminary single line diagram for the proposed hydropower facility is shown in Figure 4.4. Each generator would have an SEL-300G providing primary protection consisting of over and under voltage elements, over and under frequency elements, differential elements, over-current elements and synch check. Backup protection would be provided by a SEL-351 relay that would provide over and under voltage elements, over and under frequency elements, over-current elements and synch check. Each generator would be high resistance grounded to protect the generators from damaging ground fault currents. The main breaker would have an SEL-351 to provide over-current protection with some back up protection for voltage and frequency disturbances. Synch-check would also be used on this relay to ensure the utility cannot be closed into the generators. The main 13.8kV bus would also be protected with an SEL-587Z high impedance bus differential relay for high speed protection against bus faults. The step up transformer would be a three winding, wye-delta-wye, transformer that would provide a ground source for both the utility and the generation facility. The facility side of the transformer would be resistance grounded to 200A for selective clearing of ground faults. The utility side would be solidly grounded unless directed otherwise by the utility. The transformer DV103.00209.01 4-5 January 7, 2009 Rev 0--Nenana Hydropower Recon.doc Knight Piesold CONSULTING would be protected by an SEL-587 transformer differential relay with back-up protection provided by an SEL-551C relay. Line protection for the 138kV transmission line would be provided by an SEL-421 distance relay. Some back-up protection would be provided by the SEL-551 C relay as well. All of the relays would be connected to an SEL-2032 communications processor for plant monitoring and control. No SCADA control from the utility is shown. Trip and close terminals for the main breaker would be made available to the utility. A motor control center is included to provide station service for the facility. The station service loads include the hydraulic units for the generators, power for station lights, HVAC, control equipment and miscellaneous motor loads that could be expected in such a facility. 4.2.5.2 Electrical System Layout The 15kV switchgear and 480V station service equipment would be located in a dedicated electrical room in the generation facility. The main breaker in the 15kV gear would be connected to the step-up transformer via underground cables. The station service transformer would be located in the same yard. This yard would be on the opposite side of the wall from the electrical room to minimize cable lengths. 4.2.6 Other Design Considerations Hydropower facilities in cold climates sometimes include design features to prevent ice formation near critical components, and to withstand spring season ice-out For example, bubbler pipes and/or heaters can be used to prevent ice formation at the turbine intakes; trashracks can be used to prevent floating ice from entering the turbine intake; and log booms can be installed upstream of the weir to trap floating ice. Specific design features to prevent ice formation and withstand ice-out should be included in the feasibility study and preliminary design. The specific effects of sediment loading on impoundment storage capacity and turbine runners at the site should be addressed in future studies. A sampling program to characterize suspended and bedload sediment in the river may be required. A detailed analysis of the effects of sediment loading is beyond the scope of this report. DV1 03.00209.01 4-6 January 7, 2009 Rev 0-Nenana Hydropower Recon.doc Knight Piesold CONSULTING 5.0 Energy Generation Potential The concept for the hydropower facility includes a powerhouse integrated into a low-head weir located upstream from the confluence of Healy Creek. The powerhouse would include three pit turbines and generators, each turbine having a design flow of 3,250 cfs, design head of 15 feet, and an installed capacity of 3,700 kW, for a total installed capacity of 11,100 kW. The mean daily flow data for the entire period of record was used in the energy generation calculations. Flows in the river from 20 percent to 110 percent of the design flow (II ,000 cfs) were used to calculate the average annual energy generation, which is estimated to be 23.6 GWh. Ten percent of the design flow (I ,000 cfs) was subtracted from all mean daily flows to allow for diversion from the turbine intakes for a fish migration facility. Efficiency of a Kaplan turbine is above 90 percent but is not constant, gradually rising and then falling moderately as the flow increases. The Kaplan operating range can be from 110 percent of design flow down to about 20 percent of design flow. The efficiency of the speed increaser would be fairly constant at around 98.5 percent, and the efficiency of the generator would be about 98 percent at full design flow but drops to around 94.5 percent at 20 percent of full load. The combined efficiency would be 89.3 percent from 60 percent to 100 percent of design flow. At 20 percent flow the combined efficiency would be 78.2 percent. Based on these values, an overall average efficiency of 86 percent was used for the energy generation calculations. A constant head of 15 feet was assumed since topographic data was unavailable to calculate the headwater and tailwater elevations in the river channel at various flows. The crest of the weir was assumed to be approximately 15 feet above the tailwater elevation at the design flow. The design head was assumed to remain relatively constant throughout the range of flows since both the headwater and tailwater elevations would increase when the flow increases. The results of the annual energy generation analyses are summarized in the table below, and the average monthly power output is shown in Figure 5.1. DV1 03.00209.01 5-1 January 7. 2009 Rev 0--Nenana Hydropower Recon.doc Knight Piesold CONSULTING Weir Height (ft) 15 20 25 Notes: Nenana River Hydropower Study Annual Energy Generation Summary11 l Installed Capacity (MW) 11.1 Bypass Flow Annual Energy Production (GWhr) I) The average annual energy production period is 167 days, from May lith through October 24th, based on average values for the 27-year period of record ( 1951 to 1978). 2) Energy production is based on mean daily flows for the period of record, minus 1,000 cfs for fisheries bypass flow requirements. 3) Transformer efficiency is assumed to be 99.5 %. 4) Unscheduled outages are assumed to be 3 %. DV103.00209.01 5-2 January 7, 2009 Rev 0-·Nenana Hydropower Recon.doc Knight Piesold CONSULTING 6.0 Estimated Costs 6.1 General An opinion of probable project costs for Alternative 4 was developed based on November 2008 dollars. The opinion of probable project costs includes construction costs, contingency, engineering, permitting, and legal fees. Estimated project costs are discussed below and presented in Appendix A. 6.2 Basis for Construction Costs Construction costs were estimated for each of the project components using cost data from available guidelines, manuals, previous projects, and preliminary quotes from vendors. Where necessary, estimated costs were escalated to the third quarter of 2008 using escalation rates published by the Bureau of Reclamation (USBR, 2002) and Corps of Engineers. Estimated construction costs were developed for each of the following project components: • Mobilization and demobilization • Access roads • Powerhouse and ancillary facilities Weir and apron, including temporary river diversion and earthwork • Power generation package (turbines, speed increasers, generators, governors, controls, switchgear and hydraulic pressure unit, transformer, draft tube gate and installation) • Switchyard • Transmission line • Fish passage The costs for mobilization and demobilization were estimated as a percentage of the total construction costs. Costs for the powerhouse, weir and apron construction, temporary river diversion, and earthwork were based on a conceptual design using available guidelines and data from previous projects, with dimensions and site conditions estimated from reconnaissance-level topographic and geotechnical information. It was assumed that the foundation of the weir would extend I 0 feet below the river bed. Costs for the turbines, generators, hydraulic pressure units DV103.00209.01 January 7, 2009 Rev 0--Nenana Hydropower Recon.doc Knight Piesold CONSULTING (HPUs), controls and switchgear are based on a preliminary quote from Andritz VA Tech Hydro Canada, Inc. Switchyard electrical costs were based on a preliminary quote from NEI Electric Power Engineering, Inc. of Arvada, Colorado. Transmission line costs were based on information from GVEA. Fish passage construction costs were from a report by INEEL, 2003, which estimates these costs as a function of plant capacity based on data from other hydropower projects. The total estimated construction cost was calculated by adding 25 percent for contingency. The contingency allowance covers the cost of unexpected and unlisted items that would normally be included in a more detailed estimate. The contingency also allows for possible price increases due to unforeseen circumstances. Overall project cost was established by adding engineering, permitting, and legal fees. These fees were estimated to be: • Engineering @ 15 percent of total construction cost with contingency • Permitting @ 4 percent of total construction cost with contingency • Legal@ 4 percent of total construction cost with contingency Engineering costs include the feasibility study, preliminary and final design, procurement, construction management, and administration. Estimated construction costs and the total project cost are shown in Appendix A. The total project cost estimate is $55,182,000, which should be considered accurate to within plus or minus 30 percent. DV103.00209.01 6-2 January 7. 2009 Rev 0--Nenana Hydropower Recon.doc Knight Piesold CONSULTING 7.0 Economic Evaluation 7.1 General An economic evaluation was completed for Alternative 4, including annual costs, annual revenues, benefit/cost ratio, net present value of costs and revenues, present worth of net benefits and accumulated net cash flow. The economic analysis was based on energy generation using a net head of 15 feet, a design flow of I 0,000 cfs, and the estimated costs from Appendix A 7.2 Annual Costs Project annual costs were divided into two components: annual debt service and annual operation and maintenance (O&M) cost. Annual debt service provides payment of interest and principal over the bond repayment period. Maintenance was assumed to take place during the off-season. Fixed operation and maintenance costs were estimated to be $0.0062/kWh [INEEL, 2003]. The annual operation and maintenance cost for the first year of operation was estimated to be $146,320. Operation and maintenance costs were escalated at an annual rate of 2 percent over the life of the project to account for increased costs associated with aging machinery. 7.3 Cost-Benefit Evaluation An economic analysis was completed for Alternative 4 assuming a 30-year project life, a discount rate of 6 percent, and bond repayment term of 30 years. Energy production was assumed to begin in 2011. Project permitting, planning, engineering and construction were assumed to consume about two years from early 2009 through 2010. Annual revenue was calculated by multiplying GVEA's avoided cost rate by the average annual energy production. The GVEA avoided cost rate was estimated to be $0.13/k Wh in 2008, escalated at 2 percent annually over the 30-year life of the project. Several analyses were performed to determine the economic feasibility of the project. The first analysis calculated the benefit-to-cost ratio for an installed capacity of 11.1 MW, assuming an avoided cost rate of $0.13/k Wh escalated at 2 percent per year and a 6 percent discount rate. The second analysis assumed the same avoided cost rate and a 4 percent discount rate. A third analysis determined the minimum avoided cost rate required to produce a completely positive cash flow for the entire period assuming a 6 percent discount rate. DV103.00209.01 7-1 January 7, 2009 Rev 0--Nenana Hydropower Recon.doc Knight Piesold CONSULTING 7.4 Economic Analysis Results The table below summarizes the results of the economic analysis for the assumed installed capacity of 11.1 MW and discount rates of 6 percent and 4 percent. For an operating life of 30 years and a discount rate of 6 percent, the project is not economically feasible. For a discount rate of 4 percent, the project is economically feasible if a positive net cash flow that begins 6 years after startup is acceptable. The cash flow for the project is positive during the first year if the avoided cost rate is $0.176 per kWh. Details of the economic analysis are included in Appendix B. Nenana River Hydropower Study Alternative 4 Economic Analysis Results for 30 Years of Operation Average Initial Present Installed Annual Avoided Discount Benefit Worth of Net Years of Capacity Energy Cost Rate Cost Benefits Cash Negative (MW) (GWh) ($/kWh) (%) Ratio ($) Flow Cash Flow 11.1 23.6 0.13 6 0.91 -5,176,000 Negative 16 11.1 23.6 0.13 4 1.16 9,318,000 Negative 5 11.1 23.6 0.176 6 1.23 13,433,000 Positive 0 DV1 03.00209.01 7-2 January 7. 2009 Rev 0--Nenana Hydropower Recon.doc Knight Piesold CONSULTING 8.0 Critical Issues The following critical issues for Alternative 4 were identified during this study. These issues could have a significant impact on the design and/or the economic feasibility of the project. • The economic feasibility of hydropower at this site depends on the weir height and turbine design flow, as well as on the value of the energy produced and the bond discount rate. Further investigation would be required to evaluate the effect of these parameters on the project economics. • More accurate topographic data is required for the entire site, including the river channel, to determine the dimensions and design of the weir and powerhouse, the area of inundation, and the design of the required river diversion. • A site-specific geotechnical field investigation is needed to determine the depth to bedrock for construction of the weir, the foundation treatment for the weir and powerhouse, dewatering requirements, and the availability of construction materials in the vicinity. • Geologic and seismic hazard investigations should be conducted at the site, including the potential effect of inundation on the stability of the railroad fill slopes upstream from the weir. • An accurate determination offish bypass flow requirements is required since grayling are present in the river at the site. The fish bypass requirements will affect the potential for energy generation and hence the economic feasibility of the project. • The effects of sediment loading on impoundment storage capacity and on the turbine runners at the site should be addressed. This issue affects the turbine design as well as possible requirements for flushing or otherwise removing sediment from the impoundment. • The potential effects of the project on whitewater rafting, and any necessary mitigation measures, should be addressed in cooperation with the local rafting companies and other interested parties. • Specific requirements for permitting and licensing ofthe proposed facility need to be identified. FERC (Federal Energy Regulatory Commission) and other appropriate regulatory agencies and community stakeholders should be contacted early in the planning process to identify and address any potential environmental or safety concerns. DV103.00209.01 8-1 January 7, 2009 Rev 0--Nenana Hydropower Recon.doc Knight Piesold CON8ULTtNG 9.0 Conclusions and Recommendations 9. 1 Conclusions The following conclusions are based on the reconnaissance level studies described in this report: • Development of a hydropower facility at the initially identified diversion weir sites (Alternatives 1 to 3) does not appear to be economically or environmentally feasible due to the potentially high costs and instream flow requirements. Construction of a long, large-diameter tunnel or penstock for these sites would be very costly, particularly when compared to the available head. In addition, the instream flow requirements requested by the Alaska Department of Fish and Game would adversely reduce the annual energy generation at these sites. • Development of a hydropower facility at the instream site (Alternative 4) appears to be technically feasible. The estimated cost of the project is $55,182,000 considered accurate to within plus or minus 30 percent. Assuming an installed capacity of 11.1 MW, an electricity rate of $0.13/kWh escalated at 2 percent per year, a 30-year operating period, and a discount rate of 6 percent, the project would have a negative net cash flow for a period of 16 years after startup, a cost benefit ratio of 0.91, and a present net worth of benefits of -$5,176,000. Thus, the project is not economically feasible under these assumptions. • Assuming a discount rate of 4 percent, the project has a positive net cash flow in the sixth year after startup, with a cost benefit ratio of 1.16. The economic feasibility of hydropower at this site depends on the weir height and turbine design flow, as well as on the value of the energy produced and the bond discount rate. Further study would be required to determine if raising the weir height and increasing the installed capacity would improve the economics of the project. • Small hydropower projects are currently eligible for federal Production Tax Credits (PTCs) of $0.0 1/kWh during the first ten years of operation. Further investigation would be required to determine how this could affect the economics of the project. • Accurate existing topography is required to determine the weir height, layout of the potential hydropower facility, and access road alignment. • Geotechnical field investigations are required to determine the depth to bedrock for construction of the weir, the foundation treatment for the weir and powerhouse, dewatering requirements, and the availability of construction materials in the vicinity. DV103.00209.01 9-1 January 7. 2009 Rev 0-Nenana Hydropower Recon.doc Knight Piesold CONSULTING 9.2 Recommendations If GVEA decides to continue investigating a hydropower project at this site, recommendations include: • Conduct further studies to determine if the economics can be improved by increasing the weir height and/or the design flow. • Investigate the possible impact of production tax credits on the economics of the project. • Perform aerial mapping and river channel surveys at the site to define the site topography, including the channel geometry and the inundation area for the weir and reservoir. • Conduct geotechnical field investigations to determine the depth to bedrock for construction of the weir, seismic and geologic conditions at the site, and availability of construction materials in the vicinity of the site. • Identify land ownership at the project site, and in the area that would be flooded by the weir. • Initiate baseline environmental studies at the project site to provide the basis for an Environmental Assessment or Environmental Impact Statement. • Conduct an investigation of fisheries resources and recreational use to determine the requirements for bypass flows. Investigate the potential effects of sediment loading on the weir, the impoundment, and the turbines. • Initiate discussions with state and federal agencies to identify potential environmental and permitting issues. • Investigate the potential effects of price volatility of material costs, fuel costs and electricity prices on the economic feasibility of the project. DV1 03.00209.01 9-2 January 7, 2009 Rev O~~Nenana Hydropower Recon.doc Knight Piesold CONSULTING 10.0 Certification This report, entitled ''Golden Valley Electric Association, Nenana River Hydropower Scheme, Healy, Alaska, Reconnaissance Study, Final Report" was prepared for Golden Valley Electric Association by Knight Piesold and Co. The material in this report reflects the best judgment of Knight Piesold and Co. in light of the information available to both firms at the time of the report preparation. Any usc which a third party makes of this report, or any reliance on or decisions made based on it, are the responsibility of such third parties. Knight Piesold and Co. and Golden Valley Electric Association accept no responsibility for damages, if any, suffered by any third party as a result of decisions made or actions taken based on this report. This numbered report is a controlled document. Any reproductions of this report arc uncontrolled and may not be the most recent revision. This report was completed by Knight Piesold and Co. under the coordination of Gilberto Dominguez, P.E., Principal, and was prepared by John Dwyer, P.E., Project Engineer and Charles Hutton, P.E., Senior Consultant. AI Gipson, P.E., Senior Consultant, and Steve Farrand, Geologist, prepared the geology and geotechnical sections. The electrical systems design was furnished by NEI Electric Power Engineering, and the mechanical systems design by Ken Laurence, P.E., Senior Consultant. Final review was conducted by Gilberto Dominguez, P.E., Principal and Sam Mottram, P.E, Manager, Power Systems. ~£~ Project Engineer DV103.00209.01 Rev 0--Nenana Hydropower Recon.doc 10-1 Charles C. Hutton, P.E. Senior Consultant January 6, 2009 Knight Piesold CONSULTING 11.0 References Idaho National Engineering and Environmental Laboratory, June 2003, "Estimation of Economic Parameters of U.S. Hydropower Resources". Knight Piesold, October 2008. "Nenana River Hydropower Reconnaissance Study -Technical Fatal Flaw Analysis", Memorandum to Golden Valley Electric Association. The Geological Society of America, 2007, "Neotechtonic Framework of the North-Central Alaska Range Foothills", Special paper 431, Bemis, S.P. and Wallace, W.K. PDC Engineers, 2008. GVEA Tok-Healy Hydro Study, Survey Report. PDC Memorandum No. F08116 from Craig Ranson to Paul Park. October 1, 2008, Fairbanks, Alaska. U.S. Army Corps of Engineers, July 1979, "Feasibility Studies for Small-Scale Hydropower Additions", Hydrologic Engineering Center, Davis, California. U. S. Department of the Interior, July 1980, "Reconnaissance Evaluation of Small, Low-Head Hydroelectric Installations", Water and Power Resources Center, Engineering and Research Center. United States Department of the Interior, Geological Survey, 1976, "Healy Alaska D-4 Quadrangle, Alaska-Denali Borough", 1 :63 360 Topographic Map. United States Department of the Interior, Geological Survey 1958, "Quaternary and Engineering Geology in the Central Part of the Alaska Range", Professional Paper 293, Wahrhaftic, C. and Black, R.F. DV103.00209 01 11-1 January 7, 2009 Rev 0--Nenana Hydropower Recon.doc Figures LEGEND: PROPOSED TUNNEL - - -PROPOSED PENSTOCK GOLDEN VALLEY ELECTRIC ASSOCIATION NENANA RWER HYDROPOWER PROJECT PROJECT LOCATION 5000 0 5000 10000 FEET Knigl!( fi!~l?ltl RE'o/ISIOH A n\WIP\Nenono_O I 000\F;gure 2 .1 .dwg Knight Piesold CON8ULTING 12,000 10,000 -8,000 tn '1- (.) -6,000 3: 0 -4,000 LL 2,000 0 Nenana River-Mean Monthly Streamflow 1950-1979 OAT A Sta. 15518000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Figure 3.1 -Nenana River Mean Monthly Flows DV1 03.00209.0 January 6, 2009 Rev 0-Nenana Hydropower Recon.doc Knight Piesold CON.ULTING 45,000 40,000 35,000 30,000 -.!!! 25,000 () -3: 20,000 ..2 LL 15,000 ... ~ ~ ... 10,000 5,000 0 0% 10% DV103.00209.0 Rev 0--Nenana Hydropower Recon.doc 20% Nenana River Near Healy Flow Duration Curve (May-October) 30% 40% 50% 60% Percent of Excedence I---USGS 15518000 I 70% Figure 3.2 -Nenana River Flow Duration Curve ~~ 80% 90% 100% January 6, 2009 .. · .... . .. ·' . 2000 0 2000 4000 FEET G.\ 103\00209.01 \CAO\Des;gn\WIP\Nenono _01 DOO\F;gu<e 4 .1.dwg LEGEND: - -PROPOSED ACCESS ROAD -PROPOSED WEIR LOCATION - - -PROPOSED TRANSMISSION LINE EXISTING TRANSMISSION LINE GOLDEN VALLEY ELECTRIC ASSOC IATI ON NENANA RWER HYDROPOWER PROJECT DEStGNED BY I JO DRAWN BY ! LLT ACTMTY CODE N/A ALTERNATIVE 4 CONCEPTUAL SITE PLAN Knigl!! fi!~l?ltJ LOCATlO'ol I PROJECT NUMBER DV103 I 209.01 XREF NUMBER I N/A RE.vtstON A .. z.d .. q Wk•TfWAI(R l'tArTINC {>.;,;f!; PLAN '0 EOCE or ¥~fiR _j ~I I """' GOLDEN VALLEY ELECTRIC ASSOCIATION NENANA RIVER HYDROPOWER PROJECT WEIR AND POWERHOUSE CONCEPTUAL LAYOUT -PLAN 0 RWC>l '•". -'· ' . :· .... ·~ ~I 1>-" r;;sci-'II.~Gt Il ) SECTIO!" 4.2 ;,or ro :,CAt.( !'!QI~S,: A\..'. 0tloi£NSIQNS OT>;(fi!Wt$[ [L[VATlOOS ffTT, LINLESS GOLDEN VALLEY ELECTRIC ASSOCIAnON NENANA RIVER HYDROPOWER PROJECT WEIR AND POWERHOUSE CONCEPTUAL LAYOUT -SECTIONS Knig~tfi#N!l4 iPRO!~CT~ ("'":;" VA103 198,01 •I• 0 G:\ 103\00209.01 -.. ... f """'""' """"' . """" ,. __ ,.._ - !1~· ~ ,_., - TTT! --, - ,(MII'f-Y-.!..Yrr) I .r-"'~-IV.. 12111'f/115'1 ., ·-· -L I Dol~ ~-st7-n _I [ ~ >t I ~~"!f~ -----===-! -1 _) 41 rm:--- (l~llll ,f•Y-Y..!.rw) (\}-•$• I CUENT GOLDEN VALLEY ELECTRIC ASSOCIATION PROJ£CT NENANA RIVER HYDROPOWER PROJECT TITLE SINGLE LINE DIAGRAM r--:ii:l Knigll( fil~qlt/ ~~~~~ DESIGNED BY LOCATION : PROJECT NIJMSER i F1GVRE NUM6ER >lEV!SION electric power engineering DRAWN BY I OV103 209.01 I 4.4 A I (3g~)8 ~31 13:i9s Arvcdo, CO 80001 F'AX {303) 4.31-1836 Knight Piesold CON.ULTING - 9 8 ~ 7 ~ 6 C) Q) :::2: 5 --[4 -::::s 0 3 ~ ~ 2 Q. 1 0 J I I I I JAN FEB Nenana River Hydropower Scheme Average Monthly Power Output r-r- r-- r--- r- MAR APR MAY JUN JUL AUG SEP Month Figure 5.1-Average Monthly Power Output [l OCT Notes: 1) Based on mean daily flows for the peri od of record (1 951-1978 ), minus 1000 cfs for fishe ri es requirements. 2) T ransformer efficiency is assumed to be 99 .5 %. 3) Unscheduled outages are assumed to be 3 %. I I I I I NOV DEC DV1 03.00209.0 Rev 0-Nenana Hydropower Rec on.doc January 6 , 2009 Appendix A Cost Estimate Appendix A RECONNAISSANCE LEVEL OPINION OF PROBABLE CONSTRCTION COSTS Nenana River Hydroelectric Project (3 Pit Turbines@ 3.7 MW = 11.1 MW Installed Capacity) ITEM UNIT QUANTITY tiT RATE ($) PRELIMINARY & GENERAL Mobilization and Demobilization L.S. 1 1,380,000 SITE DEVELOPMENT Access Roads mi 0.80 425,000 POWERHOUSE and ANCILLARY SERVICES Dewatering L.S. 1 802,000 Excavation L.S. 1 400,000 Foundation Treatment L.S. 1 152,000 Civil Works and Structure L.S. 1 7,623,000 Intake Gate LS. 1 600,000 WEIR Diversion and Care of Water L.S. 1 221,000 Excavation cyd 20,000 25 Roller Compacted Concrete cyd 10,000 150 Concrete (weir and and abutments) cyd 1,500 1,000 Foundation Treatment LS. 1 175,000 POWER GENERATION (Water to Wire Package) L.S. 1.0 11,700,000 Installation & commissioning LS. 1.0 2,925,000 SWITCHYARD AND TRANSMISSION LINE Switchyard LS. 1 2,054,000 Transmission Line (138 kV) mile 0.5 335,000 ENVIRONMENTAL COMPONENTS Fish Passage LS. 1 3,850,000 CONSTRUCTION COST SUBTOTAL CONTINGENCY (% of Construction Cost) % 25 TOTAL ESTIMATED CONSTRUCTION COST Engineering, Administration & Construction Management % 15 Licensing and Permits % 4 Legal Fees % 4 Subtotal Other Costs TOTAL PROJECT COST Rev 0 ·Final Print1/7/09 14 30 AMOUNT ($) 1,380,00C 340,00C 802,00C 400,00C 152,00C 7,623,00C 600,000 221,000 500,000 1,500,000 1,500,000 175,000 11,700,000 2,925,000 2,054,000 168,000 3,850,000 $ 35,890,000 $ 8,973,000 $ 44,863,000 $ 6,729,000 $ 1,795,000 $ 1,795,000 $ 10,319,000 $ 55,182,000 Appendix B Economic Analysis Project: Nenana River Hydropower Reconnaissance Study Feature: Economic Analysis Using a Discount Rate of 6 \ Detail: Pile: Alt Ro. • 11 .1 MW Installed Capacity Initial Cost (2008 prices) Construction cost = $44 1 863,000 Other cost ., SlO. 319 000 Total Project Cost ., First Year Ann Costs • Input from Power Analysis: Average Annual Energy = Average Mo Capacity = 2008 2009 2010 2011 2012 Year Year No 2013 2014 2015 2016 2017 10 2018 11 2019 12 2020 13 2021 14 2022 15 2023 16 2024 17 2025 18 2026 19 2027 20 2028 21 2029 22 2030 23 2031 24 2032 25 2033 26 2034 27 2035 28 2036 29 2037 30 2038 31 2039 32 Net Present Value Ann Debt Service ($) 4,0081912 410081912 4,008,912 4,008, 912 410081912 410081912 4,008,912 41008,912 4,008,912 410081912 41008,912 4,008,912 4,008,912 4, 0081912 41008,912 4, 008,912 4, 008,912 41008,912 4,008,912 4, 008,912 41008,912 4,008,912 4,008,912 41008,912 4,008,912 4,008,912 4,008,912 41008,912 4,008,912 41008,912 Benefit Cost Ratio Costs Annual O&M Cost ($) 1461 320 1491246 152,231 1551276 158,381 161,549 164,780 1681076 171,437 1741866 178,363 181,931 1851569 1891281 193' 066 196' 927 2001866 204' 883 208,981 2131161 217,424 221,772 226' 208 230,732 235,347 2401053 244 I ass 249,752 254,747 259,842 Present Worth of Net Benefits, $ Notes: 1. Avoided Cost "' $0. 13/kWh 2. Discount and Interest Rate • 6 t 3. 0 & M Escalation Rate "" 2 t 4. Avoided Cost Escalation Rate • 2t $55' 182' 000 $146' 320 23' 600' 000 kWh 0 kW Total Cost ($) 411551232 4,158,159 411611144 4,164,188 4,1671294 4,170,461 4,173,692 4,176,988 4,1801349 4,183,778 4,187,275 411901843 4,194,481 4,198,193 41201,978 4,205,840 4,209,778 4,213,796 4,217,893 4,2221073 4,226,336 4,230,685 4,2351120 4,239,644 41244,259 4,248,966 4,253,767 4,258,664 4,263,659 4,268,754 $57,686,353 Energy Revenue ($) 3,068,000 3,129,360 3 ,191, 947 3,255,786 3,320,902 3,387,320 31455,066 3,5241168 3,5941651 3,666,544 3,739,875 3,814,672 3,890,966 3, 968,785 4,048,161 4,1291124 41211,707 4,295,941 4,381,859 414691497 4,558,887 4,650,064 4,743,066 4,837,927 4,934,685 5,033,379 5,134,047 5,236,728 5,341,462 5,448,292 0. 91 (5,176,000) Salvage Value: Hydro val• $0 Pi Pel val• $0 Total SV= $0 Revenues Capacity Revenue ($) Job No: By, CCH Chkd.By' Yearly Total Revenue ($) 3,068,000 3,129,360 311911947 3,2551786 3,320,902 3,387,320 3,455,066 31524,168 3,5941651 3, 666,544 3,739,875 3,814,672 3,890,966 3,9681785 4, 048,161 4,129,124 41211,707 4,295,941 4,381,859 4,469,497 4,558,887 4, 650,064 4,743,066 4,8371927 4,934,685 5,033,379 51134,047 512361728 51341,462 51448,292 $52,510,630 Sheet #": Date: 12/18/08 Date: Capacity value mult. Yearlv Capacity value • Economic Parameters: 0. 00\ Loan Repayment Period = 3 0 y rs Avoided Cost of Energy Value • 0.13000 /kWh Capacity Value = $0.00 /kW-mo Avoided Cost Escalation Rate • 0 & M Cost Escalation :E Const. Cost Escalation = Discount and Interest Rate "' 2 ' 2 ' 0 ' 6 ' Cash Flow Net Cash Flow ($) (1,087,232) (1' 028' 799) (969, 196) (908,402) (846,392) (783,141) (718, 626) (652,820) (585,698) {517,234) (447,401) 1376,170) (303,516) (229,408) "153,818) (76, 716) 1, 928 82' 145 163,966 247,424 332,551 419,380 507,946 598,283 690,427 784,413 880' 280 9781064 1,0771803 1,179,538 Accum Net Cash Flow ($) (1,087,232) (2,116,031) (3,085,227) (3. 993. 629) 14,840, 021) (5,623,163) (6,341,789) (6,994,609) (7,580,307) (8' 097' 541) 18,544,942) (8, 921, 112) (9,224,628) (9,454,036) (9,607,853) (9,684,569) (9,682,640) (9,600,495) 19,436,529) (9, 189, lOS) (8' 856' 555) (8,437,1751 (7' 929, 229) (7' 330, 946) (6, 640, 520) (5,856,106) (4,975,826) (3' 997' 762) (2,9191959) (1, 740,421) 5. The average annual energy production period is 167 days, from May 11th through October 24th, and is based on average values for the period of record from 1951 to 1978. NEW~Nenana Economic Analysis.xls 1211812008 Project: Nenana River Hydropower Reconnaissance Study Peature: Economic Analy•i• U•ing a Discount Rate of 4 !\ Detail: Pile: Alt llo. • 11.1 MW Installed Capacity Initial Cost (2008 prices ) Construction cost • $44,863,000 Other cost • $10, 319. 000 Total Project Cost • First Year Ann Costs • Input from Power Analysis : 2008 2009 2010 2011 2012 2013 2014 Year Year No 2015 2016 2017 10 2018 11 2019 12 2020 13 2021 14 2022 15 2023 16 2024 17 2025 18 2026 19 2027 20 2028 21 2029 22 2030 23 2031 24 2032 25 203 3 26 2034 27 2035 28 2036 29 2037 30 2038 31 2039 32 Average Annual Energy • Average Mo Capac! ty • Ann Debt Service ($) 3,191,181 3,191 ,181 3' 191,181 3,191,181 3,191,181 3,191,181 3,191,181 3,191,181 3, 191 ,181 3,191 ,181 3,191,181 3,191,181 3,191,181 3 ,191,181 3,191,181 3' 191, 181 3,191,181 3,191,181 3,191 ,181 3, 191,181 3' 191,181 3,191,181 3,191,181 3, 191,181 3' 191,181 3,191,181 3,191,181 3 ,191,181 .3,191,181 3,191,181 Costs Annual O&:M Cost ($) 146,320 149,246 152,231 155.276 158,381 161,549 164,780 168. 076 171,437 174,866 178,363 181,931 185,569 189,281 193,066 196. 927 200,866 204,883 208,981 213,161 217,424 221,772 226,208 230,732 235,347 240' 053 244. 855 249,752 254,747 259,842 Net Present Value Benefit CO !!It Ratio Present Worth of Net Benefits, $ Notes: 1 . Avoided Cost • $0 .13/kWh 2. Discount and Interest Rate • 4 t 3. 0 & M Escalation Rate -2 t 4. Avoided Cost Escalation Rate • 2\ S55, 182' 000 S146, 320 23 ,600 ,000 kWh 0 kW Total Cost ($) 3,337,501 3,340,427 3,343,412 3,346,456 3 , 349,562 3,352,730 3,355,961 3,359,256 3,362,618 3,366,046 3 ,369,544 3,373,111 3 ,376,750 3 , 380,461 3, 384,247 3,388,108 3,392,047 3 ,396,064 3,400,162 3,404,341 3,408,604 3,412,953 3,417,388 3 ,421,912 3,426,527 3 ,431,234 3. 436,035 3, 440,932 3,445,927 3,451,022 $58.412' 185 Energy Revenue ($) 3,068,000 3,129,360 3,191,947 3,255,786 3,320,902 3,387,320 3,455,066 3,524,168 3,594,651 3,666,544 3,739,875 3,814,672 3,890,966 3,968,785 4 ,048,161 4 ,129,124 4,211,707 4,295, 941 4 ,381,859 4,469,497 4,558,887 4,650,064 4. 743. 066 4,837,927 4,934,685 5,033,379 5,134,047 5,236,728 5,341,462 5,448, 292 1.16 9, 318,000 Salvage Value: Hydro val• $0 Pipel val• $0 Total sv. $0 Revenues Capacity Revenue ($) Job No: By: CCH Chkd.By ' Yearly Total Revenue ($) 3,068,000 3,129,360 3, 191,947 3,255,786 3 ,320,902 3,387,320 3,455,066 3,524,168 3,594,651 3,666,544 3, 739,875 3,814,672 3,890,966 3,968,785 4,048,161 4,129,124 4,211,707 4' 295,941 4, 381,859 4,469 ,497 4,558,887 4,650,064 4, 743,066 4,837,927 4,934,685 5,033,379 5,134,047 5,236,728 5,341,462 5,448,292 $67,729,691 Sheet #: Date: 12/18/08 Date: Capacity value mult. Yearlv Caoacitv val\l.fL• _ _____Q__,___Q_Q_t Economic Parameters: Loan Repayment Period ,. 3 0 y rs Avoided Cost of Energy Value • 0.13000 /kWh Capacity Value • Avoided Cost Escalation Rate • 0 & M Cost Escalation • Const . Cost Escalation • Discount Rate • $0 . oo /kW-mo 2 ' 2 ' 0 ' 4 ' Cash Flow Net Cash Flow ($) (269,501 ) (211, 067 ' :151,465 ) (90,670 ) (28, 660 ) 34' 590 99, 106 164,911 232,033 300,498 370,331 441,561 514,216 588.324 663,914 741,016 819.660 899,877 981,698 1,065,156 1,150,282 1,237,112 1,325,677 1,416,015 1,508,158 1,602,145 1 ,698,012 1 , 795 ,796 1,895,535 1,997,269 Accum Net Cash Flow ($) (269,501 ) (480 567 ) (632 ,032 ) (722, 702 ) (751,363 ) (716, 772 ) (617' 667 ) (452 . 755 ) (220' 722 1 79,776 450,107 891,668 1, 405, 884 1,994,208 2, 658,122 3,399,138 4, 218.798 5, 118,675 6,100,373 7,165, 529 8, 315,811 9, 552,923 10,878,600 1212941 614 13,802,773 15,404,918 17,102,930 18,898,725 20,794,260 22,791,530 5. The average annual energy production period is 167 days, from May 11th through October 24th, and is based on average values for the period of record from 1951 to 1978. NEW-Nenana Economic Anatysis.xls 12/18/2008 Proj•et: Nemma River Hydropowll!lr Reconnaiss:~mce Study Feature~ Eeonomic Analysis to Calculate Avoided Cost for Positive Cash Flow in Firat Y• Datail: File: Alt No. • ll.l MW Installed Capacity Initial Construction cost cost Tota: Project Cost First Year Ann Costs Input fro'!l Power Analysis: 200B 2009 2010 201::. 2012 2013 201::, Year Year No 2016 9 2017 10 2018 11 2019 12 2020 2021 14 2022 2023 16 2024 17 20/':1 :.a 2026 19 2027 20 2028 21 22 23 2031 24 2032 25 2033 26 2034 ;;.:7 20.35 28 2036 29 2037 30 2038 3: 2039 32 Average Annual Ave:r-ag~ Mo A.."ln Debt Service I~ I 4' 008' 912 4,0081912 4,008,912 4' 008. 912 4,008,912 4' 912 4' 912 4' !112 4' t 912 4,008,91:). 4,008,912 4,008,912 4,008,912 4,008,912 4,008,912 4,008,912 4,008,912 4,008,912 41006,912 4,008,912 4, 912 4' 008' 912 4,008,912 4,008,912 4,008,912. 41008,912 4,008,912 4' 005,912 912 4,006,912 costs A.\'mual C'o~:>r 14£,320 149,246 152,231 155,276 158,381 161,54.9 l64,780 168,0'/6 174, 178,363 181' 931 1851 569 189,281 193' 066 196,927 866 204' 883 208,981 213,1-61 217,424 221, 226' 208 230,732 235,347 ~40, 053 244' 855 249,752 254.' '/47 842 No>t Present Benefit Cost Ratio Present Worth of Net Benetio::s, S Notes 1. Avoidt"d Cost-$0,172/kW"h 2. Discount and ::nterest ?:ate 6 l 3. 0 & M Esca!.a~.ion Rate = 2 % 4. Avoided cost Escalat::..on Rate = 2't pt::ices) $44,Af3, $10.319' 000 coo $146,320 23 1 600, kWh Total Cost 4,155,232 4 I 1 SA. 41161,144 154' 188 4,167,294 4, 1'10,461 4,173,692 4117(,,998 4,180,349 4,183,778 '' 4, S43 4,194,481 4,198,193 41 201,978 4,205,840 4,209,778 213' 795 891 4,222,073 4' ':'136 4,230,685 4,235,120 4,239,644 4,24iL259 4, 248,966 4,253,767 4,258,664 4,263,659 268' 754 J53 kW Energy RevenuE' 1$1 4.155. 232 4,2'H!,337 4,323,104 4,409,566 41497,757 4,~87,712 4,679,466 4, T/1,056 868,517 4,965,887 5,065,205 5,166,50'9 5,269,839 5,375,236 5,482. 741 '1, 592,396 5,?04,243 !;,18181328 9.34,695 61053,389 6,1"?4,457 6' 297' 946 6,423,905 6,552,383 6,68'3,430 6,817,099 €, 953,441 7,032,51/) 7,234,360 7,379,04.7 1. 23 13,433, Salvage Vahle Hydro val= Pipel val"" $0 Total SV= $0 Revenues Capacity Revenue i$} Job No: By: Chkd.By: Yearly Total Revenue 41155,232 4,238,337 4,323 !04 4,409,566 4,497,757 •L 587 I 712 4,679,466 4,773,056 4,868, S17 4,965,887 ~,065,205 5, 509 5,269,839 5,375,236 5,48:21741 5,592,396 :3,704,:24:\ !::>,818,328 934,69!1 05J,389 6,174,457 1'1,297,946 6,423,905 6,552,383 6, 6R3, 430 6,817,099 6,953,441 7,092,";:10 ., '234, 360 7,379,047 Sheet ;; : Date: 12/18/08 Date: Capacity value mult. Yearly CapacitY value "" Econorni-:.~ Parameters: 0 Q\ Loan Period 30 Avoided Cost 0.17607 Capacity Vahle Avoided Cost. Escalation Rat.e = & M Cost Escalation = Const. Cost Escalation Discount /kW-mo 2 ' 2 % 0 • G % Cash Flow :f{er. cash Flow 1$1 80,1/A 61,9€0 45,378 30,453 417' 505' 774 596' 068 6B8, l67 782,109 877' 9?.9 975,666 :,075,358 1,1771 1,280,762 1,386,556 1,494,165 1,604,533 1,716,802 1, 316 120 2,067,2[>1 2,198,785 2,312,739 2,439,172 :2,568. 2' 699 J 674 2,833,A46 2,970,701 ,1!0,293 Accum Net Cash Flow ($) 178 242,139 487' 516 817,979 1,235,230 1,741,004 2,337,072 3,025,239 3,807,348 4,685,278 5,660,944 6,736,302 7,91:~,34::! 9' 194, 10,580,661 12,075,:!.28 13,679,661 15,196,462 17,227,778 19,175,399 21124J,160 945 25,714,683 28,183,855 30,751,988 33,451,662 )6,295,508 39,256,2:09 42,366,502 S. The average annual energy production pe:ricd is 167 days, from May r.hrough 24th, and based on average values for the period of record fro!~ 1951 to 1978, NEW~Nenana Economic Analysis. xis 12118/2008 Appendix C Photos Nenana River Diversion Site Nenana River Instream Site