Loading...
HomeMy WebLinkAboutKing Cove Hydro Electric Feasibility Study Feb 1991U "moo -wf�— t Ap `t February 1991 �1 HDR Engineering, Inc.: r S AL4SKA ENERGY AUTHORITY This study was prepared under the direction of the Alaska Energy Authority by: HDR Engineering, Inc. 4446 Business Park Boulevard Building B Anchorage, Alaska 99503 The technical content of this report has been reviewed and is accepted. Robert L.chwebel Project Manager G�y D. mith Manager of Rural Projects Date ,STy�- 7 / Date The conclusion of the benefit - cost analysis presented in the report is accepted. Richard Emerman Senior Economist .1 ' zS /qv Date ' This project is recommended for further development and review of financing T David Denig-Chakroff Dat Director, Rural Programs KNGCV2 DOC 2540-41 KING COVE HYDROELECTRIC PROJECT FEASIBILITY STUDY Prepared for: Alaska Energy Authority 701 East Tudor Road Anchorage, Alaska 99519 Prepared by: HDR Engineering, Inc. 4446 Business Park Boulevard Building B Anchorage, Alaska 99503 February 1"] TABLE OF CONTENTS Pave EXECUTIVE SUMMARY ...................................... 1 1.0 INTRODUCTION ......................................... 4 1.1 SCOPE OF THIS REPORT ....................... ..... 4 1.2 PROJECT HISTORY AND PREVIOUS STUDIES .... .... ...... 4 1.3 ACKNOWLEDGEMENTS 5 2.0 PROJECT AREA . ... .. ... ... ... .. . .. . .. . .. .. ....... ... ... 6 2.1 PROJECT LOCATION ................ .......... ..... 6 2.2 PROJECT AREA GEOLOGY ... _ .. ... ..... ....... .. ... 11 2.3 STREAM FLOW DATA ........... ............ .. ..... 12 2.4 PEAK DISCHARGES 16 3.0 HYDROELECTRIC PROJECT ALTERNATIVES .................... 18 3.1 INTRODUCTION.................... .............. 18 3.2 MOBILIZATION ....................... ........... 18 Options Considered ................................. 18 Option Selected ................................... 18 Further Study ..................................... 18 3.3 DIVERSION ...... ...... . ................... ..... 19 Options Considered ................... ......... .... 19 Option Selected ................................... 20 Further Study ..................................... 20 3.4 PENSTOCK ..................................... 25 Options Considered ....... . ........ .. ............... 25 Option Selected .... ........... ....... .. ..... I .... 1 26 Further Study .. ...... ... ... ....................... 27 3.5 POWERHOUSE ................................... 27 Options Considered ................................. 27 Option Selected ................................... 29 3.6 TRANSMISSION LINE ... ... ................... ..... 31 Options Considered .............. . .................. 31 Option Selected ............................. . ..... 31 Further Study . ........ ...... ... ... ............ .... 32 4.0 PROJECT ENERGY PRODUCTION ............................ 33 5.0 PROJECT COST ........................................ 35 07073,003:N:8;D10 6.0 LOAD FORECAST ....................................... 36 6.1 EXISTING GENERATION CAPACITY .................... 36 6.2 ELECTRICAL DEMAND ...... ... ....... .. .. ......... 36 6.3 CURRENT ENERGY COSTS ........ .................. 38 6.4 FUTURE ELECTRICAL DEMAND ...................... 41 6.5 PETER PAN SEAFOODS ........................ I .... 41 7.0 ECONOMIC ANALYSIS ................................... 43 8.0 PROJECT IMPLEMENTATION ............................... 55 8A REGULATORY REQUIREMENTS .... .. ................. 55 Federal Energy Regulatory Commission (FERC) ............... 55 U.S. Army Corps of Engineers (COE) ..................... 55 U.S. Environmental Protection Agency (EPA) ................. 56 U.S. Fish and Wildlife Service (USF&WS) .................. 56 Alaska Department of Natural Resources (ADNR) .............. 56 Alaska Department of Conservation (ADEC) ..... _ _ .......... 56 Alaska Department of Fish and Game (ADF&G) ............... 57 Division of Governmental Coordination (DGC) ................ 57 8.2 LOCAL REQUIREMENTS ............................ 59 8.3 RIGHTS -OF -WAY .... ..... . ... ............ ...... , 59 Federal ......................................... 59 State..........................•...•........... 59 Local.......................................... 59 Private ......................................... 60 8.4 PROJECT SCHEDULE .............................. 60 9.0 RECOMMENDATIONS .................................... 62 10.0'BIBLIOGRAPHY....................................... 63 APPENDICES APPENDIX 1 FLOW RECORD EVALUATION APPENDIX 2 DETAILED COST ESTIMATE 07073.003:H:8:D10 FIGURE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 LIST OF FIGURES Page COMMUNITY LOCATION .. .. .... .. ... .. .. ... ... .. . ... .. 7 KING COVE ......................................... 8 MT. DUTTON AND STUDY AREA .......................... 9 PROJECT AREA AND COMPONENTS ........................ 10 DELTA CREEK FLOW DURATION CURVE .................... 13 DELTA CREEK AVERAGE MONTHLY FLOWS .................. 14 DELTA CREEK PEAK FLOW FREQUENCY CURVE ...... . ........ 17 DIVERSION LOCATION ..... ............................ 21 CLEARWATER TRIBUTARY DIVERSION ..... . ................ 22 GLACIAL TRIBUTARY DIVERSION PLAN AND PROFILE .......... 23 GLACIAL TRIBUTARY DIVERSION CROSS-SECTION 24 TYPICAL ACCESS ROAD AND PIPE BEDDING SECTION ..... . . .... 28 HYDROPOWER POTENTIAL AND MONTHLY LOAD DISTRIBUTION ... 40 KING COVE HYDROELECTRIC, CITY LOAD ONLY; SENSITIVITY ANALYSIS OF 30 YEAR ECONOMIC ANALYSIS ................. 53 KING COVE HYDROELECTRIC, CITY AND PETER PAN LOADS; SENSITIVITY ANALYSIS OF 30 YEAR ECONOMIC ANALYSIS ....... 54 07073.003:N:s:n10 LIST OF TABLES TABLE Pa.e I PROJECT SUMMARY ................................... 3 2 PROJECT COMPONENTS ................................ 11 3 AVERAGE MONTHLY FLOWS AND ANNUAL FLOWS AT DELTA CREEK GAUGING STATION .................................... 16 4 POTENTIAL ENERGY GENERATION FROM DELTA CREEK .... .. ... 30 5 MONTHLY ENERGY GENERATION POTENTIAL . ... .. ... .. .. ... 34 6 PROJECT COST SUMMARY . . .. ........................... 35 7 HYDROPOWER POTENTIAL AND MONTHLY LOAD DISTRIBUTION; CITY LOAD ONLY, 700 kW PROJECT ................. _ .......... 37 8 HYDROPOWER POTENTIAL AND MONTHLY LOAD DISTRIBUTION; CITY AND PETER PAN LOAD, 700 kW 'PROJECT .................... 39 9 SUMMARY OF EXISTING DIESEL ELECTRIC POWER PLANT COSTS FOR CITY OF KING COVE .................... , ... ........... 41 10 KING COVE HYDROELECTRIC FEASIBILITY, ECONOMIC ANALYSIS; CITY LOAD ONLY .......... I...I..I.............. I........ 44 11 KING COVE HYDROELECTRIC FEASIBILITY, ECONOMIC ANALYSIS; CITY AND PETER PAN LOADS ................................ 47 07073.003:N :8 03 0 EXECUTIVE SUMMARY INTRODUCTION Previous studies have recommended development of Delta Creek near King Cove for hydroelectric generation. This study reevaluates those studies and updates the feasibility of the project using current construction costs, load forecasts, and economic parameters. PROJECT AREA Delta Creek is located on the south side of Mt. Dutton, five miles north of King Cove, Alaska. A glacial branch and a clearwater branch of Delta Creek would be diverted to produce power. Hydrologic analysis of the basin showed an average annual flow of 37 cubic feet per second. HYDROELECTRIC PROJECT ALTERNATIVES This study reevaluates and update previous hydroelectric development schemes for Delta Creek, The selected development scenario is summarized in Table 1. PROJECT ENERGY PRODUCTION With the proposed development scenario, Delta Creek would be able to produce an estimated 3940 MWh per year through use of a 700 kW turbine and generator. PROJECT COST Development of Delta Creek for hydroelectric generation has an estimated total cost of $5,700.000. This cost includes construction of items listed in Table 1 for design, administration, and construction inspection. This cost does not include the costs associated with obtaining the necessary permits, licensing under FERC, or performing any required mitigation for effects the project might have on wetlands or fish habitat. LOAD FORECAST The City of King Cove has a present electrical demand of approximately 2,100 MWh per year. The City demand is estimated to increase by 2.5 percent per year to an approximate demand of 3,800 MWh per year in 2014. The City demand could be met through this hydroelectric project, with backup diesel generation used during for demand peaks, hydroelectric maintenance, and low flow periods. If Peter Pan Seafoods' processing plant's electrical demands are included, the entire electrical generation from Delta Creek could potentially be used at the present time. 07073.003:N :8 010 Actual use may vary, however, as hydroelectric generation peaks may not correspond to peaks in the demands of the City and Peter pan. ECONOMIC ANALYSTS An economic analysis comparing the cost of diesel generation and the cost of hydroelectric plus diesel backup generation over a 34-year period was performed for this project. With the assumptions used for this study, the project has a base case cost to hydroelectric case cost of 1.02. Projects with cost -to -cost ratios greater than 1.0 are defined as feasible. This project is defined as feasible, PROJECT IMPLEMENTATION Many permits will be required to construct and operate a hydroelectric project on Delta Creek. These permits will have to be obtained prior to design of this project, It is estimated that the permitting, design, construction process, and plant commissioning will take approximately three years from the decision to build the project. RECOMMENDATIONS The project economic analysis indicates that a hydroelectric project is feasible in King Cove. The next step should involve the thorough investigation of the environmental and permitting issues through meetings with permitting agencies to discuss the project in detail. Once regulatory issues are resolved, project design and implementation should begin. 07073.003:y:8:nia 2 TABLE 1 SUMMARY OF PROJECT FEATURES Name of Project King Cove Hydroelectric Project Project Location Delta Creek on the Alaska Peninsula approximately five miles north of King Cove, Alaska Intake Clearwater Tributary - submerged manifold of stainless steel cylinder screens connected behind a sheetpile dam. Glacial Tributary - plate type screens with sheet pile diversion weir. Reservoir Small reservoir on Clearwater Tributary, none on Glacial Tributary Elevation: 465 feet Average Annual Basin Flow: 37 cubic feet per second (cfs) Penstock Total Length: Two at 250 feet joining one at 6,000 feet, buried with one trestle stream crossing Diameter: 250 feet of 24 and 30 inch, and 6,000 feet of 32 inches Material: Steel Flow Continuation Open channel tailrace to Delta Creek Powerhouse Size: 35 feet by 50 feet or 35 feet by 35 feet [Number of Units: one or two Type of Turbine: Turgo Flow: 50 cfs Head: Gross: 255 feet Net: 225 feet Power: 938 hp Generator Ratino: Power 700 kW Auxiliary Unit Existing icing Cove Diesel Generators, two-300 kW and one-500 kW, with future upgrades Transmission Line Voltage: 12.47 kV Length: 5 miles Type: Buried cable Average Annual Energy 3940 MWh Estimated Project Cost $5,700,000 (3990 dollars) 07073.003:N:8:Dio 1.0 INTRODUCTION 1.1 SCOPE OF THIS REPORT In October 1990 HDR Engineering, Inc. was contracted by the Alaska Energy Authority (AEA) to review the existing reports and data concerning the King Cove hydroelectric project; to summarize this information; and to determine project feasibility using current and projected electrical load information and diesel fuel costs. No additional data collection was authorized. A reconnaissance trip to King Cove was taken in November 1990 to examine the project area and to discuss the project with City officials. The information collected at the time was also used in preparation of this report. The numbered bibliography documents the sources used during report preparation these sources are cross-referenced in the text. The findings of the document review and feasibility analysis are in the Section 9.0, Recommendations, of this report. 1.2 PROJECT HISTORY AND PREVIOUS STUDIES Two potential hydropower sites near King Cove were evaluated in 1980 by EBASCO Services, Inc. for the Alaska District Corps of Engineers. A site on Delta Creek was identified as the most economical, with a benefit -cost ratio between 3.6 and 5.8, depending on the plant utilization factor. In July 1981, CH2M Hill completed a Reconnaissance Study of Energy Requirements and Alternatives for King Cove. The study evaluated alternative sources for meeting the future electricity requirements of King Cove, including wind, peat and coal combustion, small hydropower, tidal and solar power, and continued use of centralized or decentralized diesel - powered generators. The report also analyzed the potential for waste heat recovery from generators for building heat. The reconnaissance study rejected wind, peat, coal, tidal and solar power options based on economic, environmental and technical grounds. It dismissed waste heat recovery due to a lack of buildings with significant heating requirements in the vicinity of the power plant. The study recommended a more detailed investigation to determine the feasibility of a hydro -project on Delta Creek, including a stream flow measurement program. In response to the reconnaissance study, a King Cove hydroproject feasibility study began in September 1981, followed by a stream flow monitoring program on Delta Creek in January 1982. The Feasibility Study for King Cove Hydroelectric Project, completed by DOWL Engineers in June 1982, evaluated four potential hydropower sites in addition to the Delta Creek site and concluded that upper Delta Creek was the best available hydroproject site in the vicinity of King Cove. A conceptual design and economic analysis for the project were developed as part of the study. 07M.003:V:8:D10 4 Based on the results of the 1982 study, the stream flow monitoring program was continued and a number of environmental, geotechnical, and hydrologic investigations were initiated. Field surveys were conducted in late 1982 and early 1983 to obtain fish counts, to update hydrologic data, and to determine the proposed project's impact on fisheries. A geotechnical study of the proposed diversion site conducted in 1984 by Alaska Department of Natural Resources, Division of Geological and Geophysical Surveys (USGS) concluded seepage rates under the proposed diversion would be acceptable, but adverse sediment transport conditions in Delta Creek would have to be addressed in the design of the hydroelectric system. In 1985, the Alaska Energy Authority (AEA) conducted a detailed assessment of the existing electrical generation and distribution systems of both the City of King Cove and Peter Pan Seafoods to determine interfacing requirements for the proposed hydroelectric system. They also collected load data from both the City and Peter Pan. Design modifications to the earlier feasibility study were initiated in 1986 to address 'sediment transport conditions, to meet existing system interfacing requirements, and to size the project on updated flow data and load projections. AEA used this new information to complete the King Cove Hydroelectric Study, July 1988, which recommended alternate approaches to the project, depending on electricity sales to the Peter Pan cannery. A smaller project was recommended to meet only the city's needs and a larger project was developed to include possible sales to the cannery: The cost -to - cost ratios developed (hydropower cost to base case costs) for either scenario ranged from 1.3 to 1.9, depending on cost assumptions and interest rates used: 1.3 ACKNOWLEDGEMENTS This study was funded by the AEA, with Mr. Robert Schwebel as AEA Project Manager. HDR Engineering, Inc. thanks the City of King Cove, Mr. Scott Thompson, Mr. Bob Dryden, Mr. James Dryden, and others who provided comments during the preparation of this document. 07073.003:N;8:n10 5 2.0 PROJECT AREA 2.1 PROJECT LOCATION The City of King Cove is located near the terminus of the Alaska Peninsula, approximately 625 miles southwest of Anchorage (Figure 1). King Cove (Figure 2 and report cover) was founded in 1911 with the construction of a salmon cannery. Due to its location near the center of commercial fishing grounds, the harbor and seafood processor now serve as a hub of North Pacific fishing activity. The cannery, currently owned by Peter Pan Seafoods, employs over 300 people on a year-round basis and processes salmon, bottomfish, and crab. King Cove has approximately 850 residents (19). These residents are employed in fishing industry, government, and private sector jobs. The economy of King Cove is considered stable. The City is served by regular barge service from Seattle and scheduled air carriers from Cold Bay. The road system extends throughout the town and to the airport and Delta Creek near the proposed hydroelectric powerhouse, approximately five miles north of town. There are no roads connecting King Cove to other communities. The proposed hydroelectric project is located near the airport on Delta Creek, approximately five miles north of the City. Delta Creels drains the southwest slope of 4,884-foot Mt. Dutton (Figure 3), a non -active volcano, whose glaciers on the upper slopes of Mt. Dutton feed Delta Creek. These glaciers, along with limited vegetation cover on the upper mountain slopes, make Delta Creek very turbid with a high sediment load. The Delta Creek drainage basin above the proposed diversions is approximately 3.63 square miles and contains small glaciers on the south slope of Mt. Dutton. Two tributaries join at the proposed diversion site; a smaller, clear -water tributary and a larger, glacial tributary. After their confluence, Delta Creek is confined to a narrow, relatively steep, straight canyon until it reaches the King Cove airport. Near the airport the creek develops a braided channel and has formed an alluvial fan. The creek remains braided from the airport to its mouth in Lenard Harbor. The proposed diversions would be located near the confluence of the two previously mentioned tributaries of Delta Creek, at an elevation of approximately 465 feet (Figure 4). The penstock would extend from the diversions through the relatively steep portions of the creek to a powerhouse located where the stream gradient flattens to the gentler valley slopes. The powerhouse would be located at approximately 210 feet in elevation, one-half mile from the airport. A transmission line would carry generated power from the powerhouse, down the existing airport -to -City road, to the King Cove distribution system, a distance of approximately five miles. Table 2 lists principal project components. 07073.003:x:8:n10 6 COMMUNITY LOCATION FIGURE 1 LOOKING SOUTH --SOUTHWEST TOWARDS KING COVE FROM THE AIRPORT ROAD. FIGURE 2 Im, LOOKING NORTH FROM AIRPORT TOWARDS MOUNT DUTTON AND THE DELTA GREEK STUDY AREA. FIGURE 3 im, jk(Mount Dutton aa 15 �,1•� ., JJowr F 1 � rlp J` ' ,`! 1 ~�✓Q , ,; 'r . h, f - � , '\S' � r�. r' r Glacial Tributary -- 4, _ F 1 l,'r'+'f! 1}' 'r 11 '� \•P J d- /ilti B \_..,•� I 4;{' If � y. r3 Clearwater Tributary ` - �;'' r' ti r&j I s "I+ DIversionsl Ir'r r`li! ny'Sgrffh• 1 c - r II •II�7 v�_•4f4 ,I "' - —=r �' .-`•�'. f i}���. - :rl.. ' ,..- Penstock and Access Road " J �, ✓' - '4 �ZI Powerhouse and Tailrace f f 17) ' Kitchen �C An Cho .i. New Powerhouse Access Road ?/ Jr �J� . 1 ill , `i' •%-'y 5 1 �= � � r ` � � '-mac.. I *f f tn Slo Burled Trn Line , 'n— •ladies \+ J ►rs,a . Go f No Airport Road ` King Cove Power Plant \6�1 i.•�\\\ ,\ ,�t, , 4. PROJECT AREA '' ItI]���9z {r�r rN. \ and COMPONENTS t FIGURE 4 P;gssgG 10 TABLE 2 PROJECT COMPONENTS Location Delta Creek on the. Alaska Peninsula approximately five miles north of King Cove, Alaska Diversion Clearwater Tributary at 465 foot elevation. Sheetpiling dam with small reservoir. Submerged stainless steel cylinder screen intakes with 250 feet of 24-inch steel penstock to connection with main penstock. Glacial Tributary at 465 foot elevation. Sheetpiling weir and plate screen intake with a 30-inch steel penstock to connection with main penstock. Penstock 250 feet of 24-inch steel, buried 250 feet of 30-inch steel, buried 6,000 feet of 32-inch steel, buried within access road to diversion site and one trestle stream crossing Powerhouse Elevation 210 feet Gross Head 255 feet Design Flow 50 efs Generation Equipment One 700 kW Turizo Turbine with synchronous generator or two 350 kW Turgo Turbines with synchronous generators Transmission Line 5 miles of 12,47 kV buried cable Average Annual Energy 3,940 MWh 2.2 PROJECT AREA GEOLOGY The surface features of this area have been formed by past glaciation, with most of the unconsolidated sediment consisting of glacial drift. Bedrock in the Delta Creek project area lies beneath a thick mantle of glacial till coverers with stream alluvium. The dense, well compacted till deposits consist of unsorted cobbles, gravel, sand, and silt with very large boulders present. The permeability of this material is variable but typically low. The till is estimated to be 170 feet thick beneath the proposed diversion area. Overlaying the till is an eight to twelve foot layer of alluvium, which has been transported to this area by Delta Creek and which consists of unsorted cobbles, gravel, sand, and some silt. This alluvium consist of less silt than the till, and its boulders, although present, are smaller in size. Its permeability is variable due to the unsorted nature of the material but is typically low. Both the till and alluvium have good bearing strength for structures and, with proper design, have acceptably low permeabilities for water impoundments. Numerous boulders would be encountered during trenching of the buried penstock. However, the anticipated size of most boulders might be small enough for the trenching equipment to move. Some blasting of larger boulders in the higher elevation areas 07073.003:N:8:DI0 I 1 might be required for removal. Boulders in the project area could also be used for riprap where required (2). 2.3 STREAM FLOW DATA There are no long-term stream flow records for Delta Creek. The closest long-term daily records of drainage basins with similar characteristics are from Kodiak Island in the Gulf of Alaska, with shorter periods of daily record available for Russell Creek near Cold Bay. Delta Creek was gauged from January 1982 to April 1986 and discharge was recorded several times a day. The gauge was located near the proposed powerhouse site, approximately one mile downstream from the proposed diversion. The conversion of recorded Delta Creek stage data to flow was based upon rating curves developed from several discharge measurements at the site. These measurements provided a rating curve relationship between creek stage and flow only in the range between 17 and 41 cfs. Higher and lower stage and discharge values were estimated through extrapolation of the rating curve above and below the measured discharge. The collected data is not continuous and gaps exist from equipment malfunction, ice formation, and channel shifts. The stream gauging site was not located at the proposed diversion, but at the more accessible powerhouse location. The drainage basin above the gauging station was 4.03 square miles (9), while the drainage basin above the proposed diversion is 3.63 square miles (14). To reflect basin differences, the gauging station flows have been reduced by ten percent, an amount proportional to the differential basin area. This reduction has been used to predict flows available at the diversion elevation. The flow estimate should be conservative as the actual contribution to the total flow at the gauging station from the increased basin area is probably less than ten percent because the increased basin area is at lower elevation and does not include any glaciers. Through comparison of the Delta Creek basin with discharge records for similar basins and climate patterns, a synthetic flow duration curve was developed (14). As part of this study, a second flow duration curve was produced from the five years of Delta Creek stream flow data. This curve was developed by reducing the gauged data to mean monthly flows and then correcting these flows for basin area differences. Both curves are presented in Figure 5. These two flow duration curves have similar shapes, but the corrected mean monthly flow for the five year creek gauging records predicts larger flows than the synthetic flow duration curve. These curves estimate the mean annual flow (defined as 33 percent exceedence or the percentage of time flow will be greater than a specified value) to be 24 cfs (14) or 31 cfs (from HDR analysis of stream flow data corrected for basin area). Although five years of stream flow data is not a sufficient period of record to predict the long-term flow characteristics of Delta Creek, it is sufficient to predict project feasibility. Figure 6 presents the estimated average monthly flows for Delta Creek. The figure contains two graphs: the previous studies' synthesized estimated flows (14) and the five years of gauged data monthly averages (corrected for basin area differences). In general, the corrected gauged 07073.003:N:8:D J 0 12 150 140 130 120 110 100 U so 0 70 LL 60 50 40 30 20 10 rf, u • MEAN (5 YEAR ANNUAL CORRECTED FLOW "VOE 31 eta DATA) MEAN ANNUAL (SYNTHESIZED FLOW 24 S1tTA)( ets 14) ' L L 10 20 30 40 50 60 70 90 90 100 PERCENT (%) OF TIME FLOW EXCEEDED DELTA CREEK FLOW DURATION CURVE FIGURE 5 im, 13 SO 0 60 U �.. 40 O LL 30 "l SYNTHESIZED MONTHLY FLOW (14) 1 17 j 17 I 17 i 33 31 29 51 5 YEAR GAUGED DATA 55 0 \\\\f\\\\\\\Y\\\V\\\\1\Z\1Y\\\V��♦\�\��Y��i�Ll„ n�sv J F M A M J J A S 0 N D. MONTH 31 Cfs 0 SYNTHESIZED YEARLY AVERAGE 24 Cfs FLOWS CORRECTED FOR BASIN AREA DIFFERENCES DELTA CREEK AVERAGE MONTHLY FLOWS FIGURE 6 14 �Z data flows are higher than earlier estimates. This is especially true during July and August when gauged discharges were more than double the estimated discharges, possibly due to glacial melting during summer months or unanticipated orographic effects. During May and June, however, gauged flows were less than estimated. This difference could mean winter snowpack melts at a slower, more even rate than predicted. Average monthly flows computed from the creek gauging records are presented in Table 3. This table also presents the predicted average monthly flows at the diversion, corrected for basin area differences. The diversion flows were reduced by ten percent from gauged flows to account for ten percent less basin area as stated earlier. The table shows peak flows occur from July through December, and low flows occur from January through April. From the previous studies it appears both tributaries of Delta Creek flow year-round at the proposed diversion. There have been, however, no actual discharge measurements on the glacial or clearwater tributaries at the proposed diversions during winter low flow periods. It is also unknown what proportion of the flow may originate from the glacial versus the clearwater tributary. Prior to design, work should be done to verify the flow contribution available at each proposed diversion. The cost of this verification work was not included in total estimated project cost presented in Section 5.0. A hydrologic analysis was done to compare Delta Creek gauge data to USGS gauge data at Russell Creek near Cold Bay. Gauge records were concurrent at both sites for 12 months and comparisons of these daily records showed that Delta Creek has 25 percent less runoff per square mile than Russell Creek. Study of the basin characteristics for these creeks revealed no obvious reason for this. On the contrary, it would be expected that Delta Creek should have a greater runoff per square mile because_ 1. Delta Creek has 85 percent of its drainage area above 1,000 feet elevation, while Russell Creek has only 50 percent above 1,000 feet elevation. Typically rainfall increases with elevation. 2. The Delta Creek Basin faces south. The Russell Creek Basin faces north. The predominant rain bearing winds are out of the SSE. These factors suggest that Delta Creek should have a runoff per square mile of drainage basin at least equal to that of Russell Creek. Therefore, Russell Creek runoff volumes per square mile were used to synthesize Delta Creek daily flows from Russell Creek data. The estimated monthly flows are included in Table 3. 07073,003:V:8:1)10 15 TABLE 3 AVERAGE MONTHLY FLOWS AND ANNUAL FLOWS DELTA CREEK GAUGING STATION AVERAGE MONTHLY FLOWS (CFS) YEAR SOURCE ]AN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC AVERAGE ANNUAL FLOW 1982 9 15 13 19 32 53 32 60 94 46 26 30 22 37 1983 9 13 13 18 25 35 56 70 56 37 43 32 51 37 1984 10 21" 21 17* G 23* 3.7 42 33 42 33 36 31 30* 1985 10, 11 25 19 16** 16 18 23* G G G 44* 65 41 30* 1986 12 22* 29 25 66" *** 35* 5 year average 19 19 19 34 32 37 57 61 42 36 41 36 34 5 year average at 17 17 17 31 29 33 51 55 37 32 37 32 31 diversion corrected For basin areas Diversion flows 29 24 17 17 28 37 49 43 56 47 48 44 37 estimated from Russell Creek data * partial data ** 3 daily discharges of 8$, 217, and 114 cfs not included; it included nv4raga 28 cfs *** Gauge removed April 1986 G Data gap 2.4 PEAK DISCHARGES Estimates of the 2-year, and 100-year peak flows have been calculated for Delta Creek (13). These calculations were based upon regression equations developed by Ott Water Engineers "Water Resources Atlas for USDA Forest Service Region X, Juneau, Alaska", (Ott Water Engineers, April 1979). Figure 7 presents the peak flow frequency with associated 90 percent confidence intervals (13). This curve has not been updated with the five years of gauged data nor have flood flows been predicted for the glacial or clearwater tributaries individually as these were not part of the restudy. The gauging station recorded a maximum two hour discharge of 364 cfs on November 26, 1985 (11). Comparison of this flow to Figure 7 shows it corresponds to approximately a two year recurrence interval event for this basin. Peak discharges should be calculated for each tributary prior to design and be used for design of structures placed in or near the creek channels. 07073.003:N,8:Dt0 16 21000 ..s 500 w 200 a a s U = EXCEEDENCE PROBABILITY 90 90 70 50 30 40 30 20 to S 2 t 0.5 0.1 . - i T d.. - :. 7 1 CONFIDENCE 1NTERMAZ.: . �.._.. : EST MATED FLOOD FREQUENCY 2 5 10 zo 60 100 IVVu AVERAGE RETURN PERIOD IN YEARS DELTA CREEK PEAK FLOW FREQUENCY CURVE ( From 14) FIGURE 7 fm� 17 3.0 HYDROELECTRIC PROJECT ALTERNATIVES 3.1 INTRODUCTION Two previous indepth feasibility reports have been completed to assess the development of a hydroelectric project at Delta Creek. The first was completed in 1982 by DOWL Engineers and the second was completed by AEA in 1988. Both reports recommended run -of -the -river hydroelectric projects. This section reevaluates these two studies and updates the feasibility of the project. 3.2 MOBILIZATION Options Considered King Cove's location on the Alaska Peninsula complicates logistics. On one hand, rates and schedules for barge service from Seattle are only slightly less favorable than these for Anchorage; yet air transportation to and from king Cove is expensive, often delayed, and potentially hazardous. Equipment and supplies are not all locally available, and weather can often delay or hinder deliveries and work for days at a time. Mobilization for this project will be a significant project cost, which could vary greatly, depending on local project support. The first feasibility study assumed labor and equipment would not be available at King Cove, and the project construction cost estimates reflected the cost of using equipment and materials brought to the site by the contractor (14). The second study developed cost estimates assuming "force account" construction by using labor and equipment from the City of King Cove and bringing in contractors only for specialty work (3). This construction cost estimate method was done in order to reduce project costs and provide employment opportunities for local labor. Option Selected This study_ assumes all labor, materials and equipment to build the project would need to be brought in by a contractor. Material would be barged directly from Seattle to King Cove, then trucked to the construction site. Workers would be transported into King Cove and accommodated by the contractor. Some of the construction crew might be hired locally. Further Study Cooperative involvement of Peter Pan Seafoods could reduce mobilization fuel or lodging costs during project construction. 07073.003;-NA W 18 3.3 DIVERSION Options Considered The 1982 feasibility study recommended a reinforced stream bed -level concrete apron with wing walls and an earth dike. The weir itself would consist of five prefabricated steel diaphragm modules bolted to the apron. The weir would impound water to about 4.5 feet above the top of the apron. A prefabricated steel inlet structure located to the right of the diaphragm modules would provide a cleaning sluiceway with a control gate, a trash rack, and a penstock with an isolation gate. A prefabricated steel sediment basin located below the inlet structure would prevent coarse sediment from entering the penstock. A bypass with sluice gates would be provided for cleaning operations and periodic sediment removal (14). The Division of Geological and Geophysical Surveys in 1984 calculated that the basin behind the diversion would fill with sediment in approximately seven days under average flow conditions (2). The sediment was predicted to come exclusively from the glacial tributary. This was derived from information gained during a DGGS geotechnical survey of Delta Creek in 1984. Sedimentation, therefore, became a major design and feasibility issue for the glacial tributary. Due to the anticipated high cost of cleaning sediment from the above diversion, AEA proposed an alternative diversion scheme in 1988 (3). In order to reduce sedimentation problems, increase available project head, and provide for force account construction, the study proposed diversions for both the Clearwater and glacial tributaries. These diversions were to be located about 500 feet above the 1982 proposed diversion at the confluence of the tributaries. A low timber and steel post fence would be constructed across each tributary. The posts would be set in concrete in the stream and canyon bottom. This weir would fill in on the upstream side with either sediment, in the glacial tributary, or water, in the clearwater tributary. A lower section of the weir would act as a spillway where an intake box could be located. Rocks and sediment would be washed over the intake box during high flows, small diameter bed load would be rejected by a Johnson screen on top of the box. The intakes for both the clearwater and glacial tributaries would feed into a wood stave tank designed to combine both flows to a common penstock and provide some final sediment removal. The exact locations for these diversion weirs, penstocks, or pressure tanks were not noted in the report. Both of these proposed diversion designs, as well as other diversion options, were reviewed during this study. Diversion selection criteria included Iow maintenance, minimizing icing potential, and sediment accumulation (especially for the glacial tributary). As the site is remote and access during winter months is poor, site maintenance activities needed to be minimized, especially removal of accumulated sediment. Intake icing was addressed through submerging intake screens in a pool of water or maintaining water over screens. The selected option present below is considered to be a good solution to these problems. Other solutions may exist and should be investigated during design. 07073,003:n;8;Dla 19 O ti on Selected The proposed diversion consists of two darns, one on each tributary, and a single penstocks from each dam, which join to form a common penstock to the powerhouse (see Figure 8). A different type of intake structure is proposed for each tributary. The Clearwater tributary diversion (Figure 9) wouId consist of a sheet piling dam approximately six feet tall. The sheet piles would be dug into place, with a concrete footing and a riprap covering on both sides for erosion protection. A spillway would be constructed approximately one to two feet lower than the maximum dam height. Cylinder screen intakes would be located near the bottom of the dam and would be connected to a 24-inch steel penstock. A sluice gate would be constructed on the eastern side of the dam in order to drain the reservoir for cleaning and intake maintenance. This diversion method was selected because the clearwater tributary has little or no sediment load (2), and a submerged intake would reduce or eliminate intake icing problems. The glacial tributary diversion would be similar to the type proposed in 1988 and would consist of a low weir structure across the full width of the glacial tributary (Figure 10). The weir would channel low and average flows over a screened intake box, and would be constructed from dug - in sheet piling with a concrete footing to avoid river scour of the weir foundation. The upstream side of the weir would be filled to the weir top with creek gravels. The downstream side would be partially filled with boulders in order to eliminate scour from the cascading water (Figure 11). An iron boulder deflector would -need to be installed upstream to deflect boulders away from the intake box during flood flows. The intake box would be screened to remove sediment, and would have a sluice gate for periodic cleaning. A 30-inch penstock would connect this intake to the 24-inch clearwater tributary penstock. Sediment would be swept over the weir and intake box by high flows. Twice yearly weir maintenance is assumed to be needed to remove excess sediment and boulder accumulation and to clean the intake box. Screen icing might be controlled by keeping the screens slightly submerged (112 to 1-inch) in the intake box through the hydraulic connection to the clearwater tributary diversion pool. The small depth of water would help reduce icing while still allowing sediment to be washed over the intake screen. Submerging.the screen deeper may allow excess sediment accumulation on the screen. Further Stud The proposed diversion location was not surveyed during this or previous studies. The diversions were located through interpretation aerial photographs and extrapolation from the 1981 topographic mapping (7). A survey of the diversion areas should be done prior to design. This survey may also locate diversion locations at higher elevations which would increase hydropower generation through increased availability of head. As noted in Section 2.3, existing gauging records were collected at the proposed powerhouse location; no gauging was done at the proposed diversion area. Through inspection of photographs of the two tributaries and wort: done by DGGS (2), it is assumed that the clearwater 07073.003:N:8:DIO 20 CLEARWATER TRIBUTARY DAM WS EL.-465± (SPILLWAY EL.) SHEET PILE DAM and BARREL INTAKE SCREENS (See Fig. 9) / I 32' STL. PENSTOCK WITH ROAD TO POWERHOUSE PENSTOCK and CREEK FORD 24' STL. PENSTOCK GLACIAL TRIBUTARY DIVERSION WS EL.=465± SHEET PILE DAM WITH INTAKE BOX (See Fig, 10) 97a 4sp+ 440- ���� ¢3O 440 \\ a q�b o 470 CONTOURS ESTIMATED FROM CONTOURS BY DOWL,1982 AERIAL PHOTOS DIVERSION LOCATION NTS FIGURE 8 FiDR Enpr►eerr�p, H"IR. 21 SLUICE GATE WEIR EL. 465= SHEETPILE DAM t PENSTOCK i CONCRETE FOOTING �f BARREL SCREEN INTAKES CLEARWATER TRIBUTARY DIVERSION NTS FIGURE 9 22 BOULDER RACK SHEETPILING I + � I Lu L------------- I I � I I 1------------- _____�__-----------------------------------___-----------h ------------- so'= 20' so'= GLACIAL TRIBUTARY DIVERSION PROFILE LOOKING UPSTREAM NTS NATIVE GRAVEL and COBBLES FILLED TO TOP OF SHEETPILE iTygical) SLUICE Jl1}JyJ}�� E 10 r I\{\ r------ - - ------------- ------------ ---- ---- - E ------ ---- L� s�rl! l LARGE NATIVE BOULDERS PLACED FOR SCOUR PROTECTION ACROSS FACE (Typical) BOULDER RACK SHEETPILING r----------------------; I ---------------------------- INTAKE SCREEN (Not Shown) GLACIAL TRIBUTARY DIVERSION PLAN NTS INTAKE STRUCTURE STL. PENSTOCK FIGURE 10 23 HDR �,�..►t,a r� BOULDER RACK 1 a' 77 g'� Flow SHEETPILING cc cc 'H' PILING a' INTAKE SCREEN Elev. 465'= r , 6' ' I � nC?n -. ap OfiY': "-8(J--.vUOffa o j - 30' DIAMETER PENSTOCK i i r 0 . ire TO POWERHOUSE GLACIAL TRIBUTARY DIVERSION CROSS-SECTION A NTS FIGURE 11 HaR 6Qrti.rtl� IM4 24 tributary flows year round, at approximately 25 percent of the glacial tributary flows. This should be verified prior to design. Costs to do this were not included in total project costs. - The anticipated sediment loads of both tributaries were estimated from the DGGS 1984 report. As the report estimates sediment transport with only one water sample, additional investigations into sediment loads should be done prior to design. Costs to do this work were not included in total project costs. The diversions proposed in this report rely on limited existing information. Better and less expensive intake structure designs may be applicable after the diversion area has been surveyed, sediment loading evaluated, and the actual diversion locations identified. The glacial tributary diversion proposed in this report should be refined during design. Coanda type screens with a taller weir were investigated during the preparation of this report and are workable alternative to the intake proposed that should be further investigated. 3.4 PENSTOCK Options Considered The remoteness of the King Cove site required the assessment of numerous penstock designs. Cost, weight, construction approach, constructability, and mobilization all affected each choice of pipe and pipe route in different ways. Materials The 1982 feasibility study had recommended a buried 36-inch fiberglass pipe combined with steel pipe for above -ground sections (14). The 1988 study recommended aboveground and buried, 36-inch 10-gauge bell and spigot steel pipe to be held in place with earth anchors in above -ground sections (3). For this report, these materials were again evaluated, along with high density polyethylene (HDPE) and ductile iron. Hydropower Evaluation Program (HEP) modeling of gauged stream flow data analysis showed that 32-inches would be the preferred diameter (Appendix 1). Fiberglass pipe was dismissed due to its poor resistance to scour by abrasive water, which this project will have, and susceptibility to "bruising" during installation, which creates weak areas in the pipe. HDPE pipe was eliminated because it offers no costs or weight savings for the diameter required using HPDE would require an oversized pipe to meet inside diameter requirements that it would need to be specially manufactured to meet pressure requirements. Steel and ductile iron pipe were found to be applicable penstock materials for this site. Both would withstand potential erosion and corrosion over the lifetime of the project. Both could be buried in the till and alluvium materials present with minimal imported bedding. Ductile iron with bell and spigot has greater joint flexibility than steel bell and spigot. Steel pipe for this 07073.003:N:8: D 10 ? 5 application would probably weigh 30 percent less than ductile iron, depending on wall thickness required to rneet operating and surge pressures. Ductile iron has greater bedding and backfill material tolerances. Steel is less expensive than ductile iron for the size required. Route The 1982 report investigated three possible penstock routes: a route in the west rim of the creek canyon, one to the east rim of the creek canyon, and one on the creek floodplain (3). Each route included a road from the powerhouse to the diversion for maintenance purposes. For cost and constructability, the preferred route of the 1982 report was on the creek floodplain. This route included a stream crossing by the penstock on a trestle and long sections of riprap over the pipe to protect it from creek erosion. The total penstock length would be 5,300 feet. The access road would have only been passable during creek low flow as it had areas where it bordered and crossed the creek. AEA's 1988 study proposed an overland penstock route on the east side of the creek. As the diversions were at higher elevations, the route would leave the creek floodplain above the 1982 proposed diversion and travel along the bench on the east side of the creek. The total penstock length would be 7,080 feet. AEA did not recommend a road be built from the powerhouse to the diversion. The intent of the design was for low maintenance and no cleaning of debris, so infrequent inspections and maintenance were to be accomplished via a temporary access road built during construction and via foot access to the diversions (3). Option Selected Materials An above ground pipeline was evaluated. The logistics of attempting to anchor the pipe for thrust and thermal considerations, the need to eliminate siphons and adverse slope in the pipe, and freezing considerations for an above -ground pipeline make burial the preferred choice. Either ductile iron or steel pipe are recommended for, this project. For this study, steel pipe with bell and spigot appears to be the better option due to its lower weight and lower cost. The penstock should not have any interior coating as it would wear away with the abrasive water. To help prevent corrosion of the pipeline in the soil, the pipe should be coated on the outside or wrapped in polethylene wrap. The appropriate method should be chosen during design. The pipeline should be buried. Burying the pipe would provide the best support and protection from freezing, and would allow the pipe to be placed with a continuous downhill slope. The constant slope would eliminate the need for air -vac valves and would allow the pipe to be completely drained, if required . Above the confluence of the glacial and clearwater tributaries, the penstock sizes should be 250 feet of 24-inch pipe for the clearwater tributary and 250 feet 30-inch pipe for the glacial tributary. The final sizing and length of these pipes will depend on the actual percentage of the 07073.003:N:8:I)10 26 total flow in each creek and the actual diversion location. The tributary penstocks will join at a simple 'Y' connection. No settling tank will be installed as sediment removal will be accomplished at the intakes. After the two tributary penstocks join, the 32-inch penstock will be placed on a trestle to cross the Clearwater tributary. The trestle should be of steel construction with concrete footings holding the pipe above estimated flood levels. The steel penstock can span 40 feet unsupported, which should be adequate to bridge the clearwater tributary at this point. Only two supports are anticipated. Concrete anchor blocks will be required where the penstock leaves and enters the ground. Route The preferred alignment would be on the bench adjacent to the east side of the creek, as recommended by the 1988 study. This route would protect the penstock from creek erosion. The glacial tributary diversion penstock would connect to the clearwater tributary penstock just above the confluence of these tributaries (Figure 8). A Iimited access road should be constructed over the penstock from the powerhouse to both diversions. A ford should be constructed across the clearwater tributary below the diversion dam to access the glacial tributary diversion. A typical road section is shown in Figure 12. If the road surface above the pipe is graded to match the existing ground, no culverts would be needed to route drainage across the road surface. Some sections of the penstock might be placed on very steep slopes and the roadway might have to be constructed on an alternate nearby route. From inspection of available information and aerial photographs, two sections approximately 1,000 and 2,000 feet from the powerhouse might require the access road and the penstock routes to diverge due to excessive grades. Further Study Options of ductile iron and steel pipes, as well as reinforced concrete cylinder pipe, should be further evaluated during design of the project. A route survey must be done prior to design, as no field reconnaissance or survey of the penstock route was done as part of this study. Also, the exact location and extent of the divergence of the access road and penstock route should be determined during design. 3.5 POWERHOUSE Options Considered A turbine and generator are needed to generate electricity from water. The turbine converts the power in the water to mechanical power, and the generator converts the mechanical power to electrical power. Turbines fall into two main categories: reaction and impulse. Propeller -type reaction turbine use is confined primarily to high flow, low head situations and would not be applicable at this site. The most common high -head reaction turbine is the Francis 07073.003:N:8:nin 27 B' FIBERGLASS ROAD MAKER @ EDGE OF ROAD 12' MIN. TOP WIDTH Ili SLOPE TO MATCH COMPACTED 6' MINUS - ROAD SURFACE MATERIAL 12' MIN. THICKNESS BEDDING MATERIAL ROADSURFACE ORIGINAL GROUND NATIVE TRENCH BACKFILL (LARGE STONES REMOVED) 32" STL. PENSTOCK TYPICAL ACCESS ROAD and PIPE BEDDING SECTION NTS FIGURE 12 Em, mm which converts the water's energy to mechanical energy by forcing the water through gates to a vaned rotating runner. Francis type turbines could be used for the head and flow conditions at this site, but, for this application would require surge tanks or relief valves. These tanks or valves reduce pressure surges in the penstock when the turbine has to shut down quickly. These devices usually cost about ten percent the price of the turbine unit (14). Impulse turbines, the most common types being Pelton or Turgo, convert water energy to mechanical energy by shooting a jet or jets of water into buckets on the perimeter of the runner. This process takes place in a case open to atmospheric pressure. An emergency shutdown is accomplished by deflecting the water jet from the runner and then slowly_ closing the valve on the penstock. No relief valves or surge tanks are required. Generators connected to turbines can be either induction or synchronous types. induction types are usually less costly, easier to maintain, and require less peripheral equipment (14). They do not, however, produce synchronous power (power at a set frequency). To do so, they require excitation from outside power sources. Synchronous generators produce power at an established frequency. This type of generator is more costly and does require more sophisticated ancillary equipment. Through analysis of the cost difference between turbine types and single and multiple turbines, the 1982 study recommended a single turbine sized for the 15 percent exceedence flow. The impulse turbine was also recommended, and the type selected for the available head and predicted flows was a single 575 kW unit with a synchronous generator (14). The 1988 study reviewed the gauged flow data and the geologic and sediment data during the reevaluation of this project. Since the diversions were at higher elevations, more head was available to the project, as well as more flow being predicted by the gauged data (the gauged data was not corrected for basin area difference). The study, therefore, recommended a plant capacity of 1,000 kW in single 1,000 kW unit or one 600 kW plus one 400 kW unit using either impulse turbines or Francis turbines and synchronous generators. This was a preliminary recommendation and the report suggested "bid documents should allow contractors to propose the least costly units that meet project specification (3)". Both previous feasibility studies recommended a prefabricated building with a concrete floor for the powerhouse. AEA recommended a larger building (35 feet x 50 feet v.s. 35 feet x 35 feet) if two turbine generator sets were used. Both studies recommended the electrical transformer be located in a fenced area next to but outside of the powerhouse and an open channel tailrace be constructed from the powerhouse to Delta Creek. Option Selected An impulse turbine would work best for this project, due to the head and flow characteristics of the site, and the lower costs for the turbine. A Turgo type turbine may be better than a Pelton type, but the actual turbine used should be decided during design. Table 4 presents the 07073.003AI: D10 79 projected power generation capacities from HEP modeling at a plant efficiency of 80 percent. These estimates may change as the actual available head may be greater if a final diversion site is located at a different elevation other than 465 feet or if plant efficiencies are other than 80 percent. It is also assumed 100 percent of the creek's minimum flows can be diverted for generation. The calculations show a range of generation capacity from 283 to 721 kW. This large difference in maximum and minimum capacities suggests one or two generation units could be used. A twin jet horizontal turbine would result in a increased turbine speed, which would reduce the size of the turbine runner, case and generator. Twin jet impulse units of the recommended type can run down to 20 percent of their maximum rated capacity. Synchronous generators are recommended so that power can be delivered at an established frequency. TABLE 4 POTENTIAL ENERGY GENERATION FROM DELTA CREEK FROM HEP MODELING FLOW REGIME FLAW (CFS) HEAD (FT) CAPACITY (kW) 20 percent exceedence 50 201 721 Mean Annul 37 227 533 80 percent exceedence 18 248 283 Analysis of King Cove power requirements (presented in Section 6.0) shows the current peak demand is about 350 kW, approximately one-half 20 percent exceedence hydropower capacity. Since it is not known if power generated in excess of the City's demand can be sold at this time, installing two generation units may be the best alternative. If two 350 kW units are installed, one could be installed now to meet current demand and a second one installed when demand, either City or cannery, warranted it. Two units could be used over a slightly wider range of flows than a single generation unit, and might be able to better use daily flow variation. Two identical units would provide system redundancy and allow for use of identical parts. A single turbine and generator would, however, be less expensive to purchase and install and would provide less equipment for operators to maintain. Electrical switching would also be simpler for a single unit. The penstock, building, electrical switching, and transmission line should be sized for future capacity in any case, even if only half the generation capacity is initially installed. This is recommended because the major cost for these items is labor and mobilization, not materials. This study will, therefore, develop project costs based on a single turbine with synchronous generator sized for the 20 percent exceedence flow and two identical turbines and synchronous generators sized for one-half this flow in order to allow for design flexibility. These scenarios would be one 700 kW unit or two 350 kW units. 07073.003:N:8:D 10 30 The AEA's recommended building configuration for two turbine generator units, a 35' x 50' building with an outdoor transformer area, will be used for two unit estimation purposes. A smaller 35' x 35' building will be used for single unit estimation. Either building would be located at the site recommended by both previous studies. The building should be placed well above flood water elevations, 3.6 TRANSMISSION LINE Options Considered The 1982 feasibility study recommended a five mile 12.47 kV overhead transmission line following the road from the hydroelectric power plant to the airport and on to the existing, City of King Cove diesel generators (14). However, all the electrical distribution for the City of King Cove is buried cable. The area weather conditions might also cause frequent damage to an overhead transmission line system. In order to address these concerns the 1988 study recommended a 3.7 mile, 12.47 kV, three phase, buried cable, with tie-in cabinets for future services every 2,500 feet, to be located next to the airport road. Also recommended was an additional telemetry cable be laid to allow for monitoring of the hydroelectric powerhouse'in King Cove (3). The shorter, buried cable was to tie into the existing King Cove system at Dear Island subdivision, although the exact location of this tie-in was not clear in the report. The decision whether to use overhead or underground transmission cable is dependent on many factors, including initial construction and maintenance costs, system reliability, ease of future service tie-ins, and system life. A buried cable system is normally installed with final transmission capacity, as any additional capacity is very costly to install later. Overhead transmission line capacity can be increased at a lower cost with the addition of new transmission cable. Construction of overhead lines can be less expensive than buried cables especially if the cable is to be buried in bedrock areas which involves blasting and special bedding. Overhead transmission lines are more susceptible to environmental damage and power outages than buried cable, but overhead system breaks are easier to find and repair. Option Selected Buried cable, rather than overhead transmission lines, is recommended for this system. Because the generation capacity is limited by Delta Creek discharge and the turbine size selected, the ultimate electrical transmission capacity is known, and buried cable should be sized accordingly. In anticipation of development which may occur along the airport road, service cabinets could be installed at prime development locations as well as every 2,500 feet. Due to the possible frequent and severe damage to overhead lines, a buried cable system should be more reliable. The transmission line route should follow the road to the airport, as recommended by both the 1982 and the 1988 studies. The buried cable should be installed on the west side of the airport road to avoid unnecessary road crossing (see Figure 4). The Deer Island subdivision, 1.5 miles south of town, is not a good location to tie into the electrical system. Presently, the 07073.001A r8. U 10 31 northernmost extension of the electrical distribution system is a subdivision approximately 0.75 miles north of town on the west shore of King Cove Lagoon. This subdivision is across the lagoon from the airport road, and connection into the system would require crossing the lagoon. Therefore following the airport road to a connection into the present electrical distribution system at the King Cove power plant, as recommended by the 1982 study, seems the most feasible. This would also allow consolidation of controls and switch gear in one area and would not require the construction of new buildings. Like the recommended overhead line, the transmission line connecting the hydroelectric powerhouse to the existing diesel generator powerhouse would be approximately five miles long. Through aerial photograph interpretation, bedrock depth has been estimated along the proposed cable route. It appears that bedrock is present only in a section of the road approximately one- half mile long at the low pass near the airport. As a result, bedrock excavation should be limited. Further Study The cable alignment needs to be surveyed, and depth to bedrock verified by a geologist along the proposed route. Transmission cable could be laid underwater in King Cove Lagoon, thereby avoiding burial costs for 1.5 miles of the route. With little or no boat traffic'on the lagoon, the cable could be sunk to the lagoon bottom instead of buried. This option should be investigated. 07M-003:n:8:D10 32 4.0 PROJECT ENERGY PRODUCTION For this project, two turbine options were considered based upon the alternatives of community - only versus community -plus -Peter Pan power sales. For the first option, two 350 kW turbines would be used. Each turbine has a predicted range of 5 to 25 cfs and thus cannot use all of the water available from the creek. The second option would use one 700 kW turbine with a flow range of 5 to 50 cfs and, again, could not use all the water available from the creek. With both options, the use of a 32-inch penstock would be required for efficient power production and to allow for future increases in power generation. The use of 32-inch pipe is predicted to result in 12 percent ]lead loss at maximum flow, an arnount typical for this type of project. Delta Creek is capable of producing up to 700 kW with the proposed development, based on a 20 percent exceedence discharge of 50 cfs and gross head of 255 feet. Table 5 summarizes the average monthly energy available for each hydropower option based on HEP modeling. The months of lowest energy production would be January through March. Where the monthly average exceeded the maximum turbine design flow, the maximum turbine design flow was used for the calculations. Both previous feasibility studies based energy production potential on mean monthly flow values. This study bases energy production on estimated mean daily flow. The energy potential in Table 5 will be used in Section 7.0, Economic Analysis, in this study. The plant factor is a comparison of actual power production to the retinal power that could be produced if the generators were run at the rated flow for the entire year. It should be noted that average monthly flows lead to an overestimation the power potential of a creek as single day peak discharges heavily influences monthly average (see Table 1, March 1985 flow). Also, monthly averages incorporate daily peaks that are above the turbine's maximum usable flow again causing over -estimation energy potential. Therefore, daily flows were estimated and used to predict energy potential as these better represent the usable discharge of the creek. 07073.003:N:8:1) 10 33 TABLE 5 MONTHLY ENERGY GENERATION POTENTIAL MONTH AVERAGE FLOW cfs USABLE FLOW els MEGAWATT HOURS/MONTH AVERAGE kW JAN 29 29 296.8 399 FEB 24 24 199.2 296 MAR 17 17 196.0 263 APR 17 17 197 . l 260 MAY 28 28 288.1 387 JUNE 37 37 380.3 528 JULY 49 49 432,0 568 AUG 43 43 413.8 556 SEPT 56 50 400.4 556 OCT 47 47 372.5 500 NOV 48 48 390.9 542 DEC 44 44 381.6 513 TOTAL 3938.7 Total potential energy it' turbine(s) operated continuously at rated flow 6017.6 Plant factor (actual production/potential production) 69% 07073.003:,',':8: D 10 34 5.0 PROJECT COST Costs for the proposed hydroelectric project options are summarized below in Table b. Complete cost estimate spreadsheets are included in Appendix 2. These costs include construction, design, administration, and construction management, which in Table b were added together to yield the total project cost_ Design, administration, and construction management costs are calculated as a percentage of construction costs. The costs do not include the additional recommended studies (where noted in the text) or permitting costs, both of which should be assumed before design. TABLE 6 PROJECT COST SUMMARY ALTERNATIVE DESCRIPTION CFS NIA\ kW NtWh PER YR. COST NUMBER 1 Two 350 kW 10-50 700 3,940 $5,687,000 turbinel�enerators 2 700 kW Ttounrheine/E!enerator 10-50 7D0 3,940 $5,370,000 The cost estimates represent the project cost if a contractor were selected through the competitive bidding process to construct the entire project and deliver it completed to the City of King Cove. This is the same approach that was used by the 1982 study. This "method was determined to be more realistic in this case because of the nature and location of the project" (14). Project costs estimated for force account construction as employed by the 1988 study were not used. The cost estimates developed with force account construction often do not include administrative costs and may underestimate the total funds required. Force account construction might not be appropriate due to the complexity of the project, the size and type of equipment required for construction, and the availability of local labor. Because of these uncertainties, this study assumed contract construction. When the actual creek discharge is less than the design capacity of the hydroelectric project, the entire creek flow would be diverted to generate energy. This would dewater the creek from the diversions to the tailrace outfall into the creek, approximately 6,000 feet. Dewatering of the creek could occur up to 80 percent of the time. It is not known at this time if ADF&G would allow creek dewatering, and any minimum in stream flow requirements would have to be deducted from the total flow available to the project. As was done in the previous studies, this report will assume dewatering of this reach of the creek would be acceptable to ADF&G or that mitigation for dewatering would be a minor cost. This assumption should be verified prior to design and any mitigation costs should be included in total project cost. Determination of mitigation cost was not included as part of this contract. 07073.00:t:8:n10 35 6.0 LOAD FORECAST 6.1 EXISTING GENERATION CAPACITY The City of King Cove and Peter Pan Cannery currently produce electricity with diesel generators. The City operates two 300 kW and one 500 kW diesel generators. The 300 kW generators are older and one has been recently overhauled. The 500 kW generator is new. The Peter Pan Cannery operates up to five diesel generators with a generation capacity of 2,340 kW. The cannery generators include 480 kW and 1,500 kW main generators and older 450 kW, 750 kW, and 1,000 kW backup generators. 6.2 ELECTRICAL DEMAND Recent electric generation logs from the City of King Cove were reviewed to assess electric demand. These records indicated that from November 1989 to October 1990 the City generated approximately 2,176 MWh or an average of 181 MWh per month. This required 178,000 gallons of diesel fuel, or an average of 15,000 gallons per month. The yearly average kilowatt hours produced per gallon of fuel was 12.2 for this period of record. Peter Pan cannery power needs vary with the seafood being processed. During the salmon season the cannery has a 1,900 kW load, during crab season, a 1,300 kW load, and during bottomfish season, a 1,500 kW load. No fuel consumption or generation records were reviewed in order to determine the cannery system efficiency. An analysis of a similar seafood processor at Akutan was used to estimate efficiency. Peter Pan does plan to expand their operation in the next five years with a planned increase in generation capacity of 1,000 to 3,000 kW. The exact year and amount of this expansion is unknown at this time. Electrical demand data for the City of King Cove was combined with hydroelectric generation potential from Table 5 to estimate the monthly electrical load distribution between hydroelectric generation and diesel generation. Two scenarios were evaluated: City load requirements served by a 700 kW hydroelectric project (Table 7) and the City and Peter Pan loads served by a similar hydroelectric project (Table 8). City loads represent the actual generation by King Cove for the months noted. Peter Pan loads represent load data gathered by AEA in 1985 (3). The Peter Pan loads have not been- updated for this study, although substantial improvements to the cannery generation system have been made and power requirements have increased. Table 7 allocates the total output from the hydroelectric project to the City of King Cove loads. The table shows the City may not have to supplement hydroelectric generation with diesel generation to satisfy present demands. This table does not, however, estimate diesel generation requirements for peak demands, daily low flows, equipment maintenance, or emergencies. Standby diesel generation will be required to meet peak demands and daily demands during 07073.001:N:8:D10 36 Table 7 HYDROPOWER POTENTIAL AND MONTHLY LOAD DISTRIBUTION 700 kW Project, 1990 City Load Only ENERGY REOUIREMENTS CITY LOAD {Most Recent Data} Jan-'.* Feh-90 Mar-90 Apr-90 May-90 Jun-90 Jul-% Aug-90 Sep-9u Oct-90 Nov-89 Dec-89 Year Total 1 Average Dcmand(kW) 26.1 265 261 251 266 229 229 22-5 231 250 242 264 Z16 2 Peak Demand (kW) 527 536 522 503 532 459 459 451 461 500 484 528 3 Total Lad {kWh) 4 Percenl of Tolal Annual 196,080 178,320 194.400 181.200 198.000 165,360 170,880 168,000 166,800 186,240 174.240 196.560 2,176,n00 9.0`3. R2% 8.9% 8.3% 9.1% 7.6% 7.9% 7.-PT 7.71s 8,6% &0% 9,ny'o 100.[Y"r DELTA CREEK I rYDROPOWER P1YITNTIAL (See Tahle 5 ) DISCHARGE SUMMARY 5 Average Flow (cfs) 29,0 24A 17.0 17.0 28.0 37.0 49.0 41,0 16.0 47.0 48,0 44.0 36.9 6 Usable Flow {cfs) 29.0 21.0 17.0 17.0 28.0 37.0 49.0 4.3.0 50-0 47.0 48,0 44.0 ENERGY POTENTIAL 7 Average Capacity(kW) 399 296 263 260 391 3Z8 568 556 456 5M 542 513 447 8 Hydroproject Ibtenlial (kWh) j9h,R0n 190,200 196SM 187MI'll 28F1100 380.3011 437—MO 4DA 0 400,4611 37451M1 390,9M1 381,6t10 1,93$700 I IYDRGPRO.IF(7 r.N1.Rf1Y wsrntl1311'IION HYDROELECTRIC GENERATION (kWh) 9 City Load 10 Excess Hydro Generation {&o) 196-080 106,720 178,320 104.400 191,200 10KOW 165,360 17000 168f100 166.800 186,240 174,240 196.560 2,176,080 2000 1.600 5,910 90,11k1 214,940 241,120 245,800 Z11fal IK260 216.660 1g5,a1n 1,762,620 DIESEL GENERATION (kWh) 11 City Load 0 n U U 0 0 0 0 0 0 0 0 0 FUEL REQU[RED (Gallons) 11 city Load n 0 0 n 0 n 0 0 n n u hydroelectric plant maintenance shutdown or low flow periods. Table 7 does show that the City demands could be met for twelve months of the year for the year chosen, with excess hydroelectric generation available for sale. As demands increase, however, the need for diesel generation will increase. The timing of this excess generation corresponds, in part, to a Peter Pan processing demand peak. If a 350 kW hydroelectric project is constructed for City loads only, the City will have to use diesel generation made up the difference. A 700 kW project will, however, provide excess hydroelectric capacity during higher flow periods. Table 8 distributes hydroelectric generation between both in the City and Peter Pan from a 700 kW hydroelectric project. The City loads are met first by the project (Table 8, line 17) and the excess is applied to Peter Pan loads (Pane 18). With the load assumptions used for November and December, the table shows the total electrical load for both the City and Peter Pan can be met with hydroelectric generation. This may not be realistic as Peter Pan loads are from 1985 and have increased. This table does show a 700 kW project electrical output can be totally used by the City and Peter Pan. The project output may not, however, correspond to the timing of City or Peter Pan demands. Demand timing and project output should be carefully evaluated prior to design. Again for low flow periods, droughts, and demand peaks, the City and Peter Pan electrical needs will have to be met with diesel generation. Figure 13 presents graphically the City and Peter Pan loads (Table 8, lines 3 and 7) and the hydroelectric generation potential (Table 8, line 16). 6.3 CURRENT ENERGY COSTS The City purchases diesel fuel to power their electrical generator system. The diesel fuel is purchased in bulk from Peter Pan on a semi-annual basis and stored in tanks near the generator plant. The most recent purchase of fuel was approximately November, 1990, when 80,000 gallons was purchased at $1.40 per gallon. The previous purchase was $0.78 per gallon. Before the most recent fuel purchase, power costs were $0.20 kWh. The more expensive fuel purchase may increase the cost of power generation, Recent King Cove power generation costs are summarized in Table 9. Data for Table 9 was taken from power cost equalization (PCE) records submitted by the City of King Cove to the AEA. Over the three base years of FY 1988 to FY 1990, the City showed a 7.4 percent increase in electrical use. Power generation costs or fuel consumption data were not reviewed for Peter Pan Cannery. 07073.003.N:8:n10 38 Table 8 HYDROPOWER POTENTIAL AND MONTHLY LOAD DISTRIBUTION 700 KW Project, City and Peter Pan loads ENERGY RF_OUIREMENTS Year Jan•90 Feb-" Mar-90 Apr-90 May-90 Jun-90 Jul-90 Aug-90 Sep-09 Oct-00 Nov-99 Dec-89 Total CITY LOAD (Mast Recent Data) 1 Average Demand (kW) 263 265 Z61 251 266 229 229 as 23t 250 242 264 248 2 Peak Demand (kW) 527 536 522 50.1 532 459 459 451 463 500 484 528 3 Total Load (kWh) 196,080 17"2A 194,400 181,200 108,000 165.360 171),BW 16800 166,8W 186.240 174.240 t%560 2,176,080 4 Percent of Total Annual 3.2% 2.91m 3.17, 2-9% 3.2% 27% 7 8% 2.7% 2,7^/ 3.0% 28' , 3.2% 35.2171 PETER PAN SEAFOODS LOAD (1985 Data) 5 Average Demand (kW) 378 371 308 357 449 735 875 833 421) 329 280 Z18 464 6 Peak Demand (kW) 540 530 440 510 640 1,050 I'M 1,190 600 470 400 340 7 Total Load (kWh) 2M.2-12 24%312 229,132 257,040 333,312 529,200 651,000 6[9,752 30Z400 244.776 201,600 177,072 4,073.948 8 Percent of Total annual 4.5% 4.0% 17 % 4.Z 5.4% 8-6% 111.5% 10.070 4.9% 4-0%a 3.3% 299E 65.9% AREA TOTAL (City and Cannery) 0 Average Demand (kW) (1+5) 619 621 540 597 689 964 1,093 t,1166 661 576 536 494 7n5 10 Peak Demand (kW) (2+6) 540 536 522 510 640 1.050 I,L50 1,190 6M S00 484 528 11 Total Load (kWh) (3+7) 460,536 417,312 101.761) 420,840 512616 604,080 814,680 704,592 475,020 428,544 395.920 167.536 6.]&4,336 12 Percent or-Tnlnl Annual 7.•Y7, 6.7% 6,5 %, 71" R..1- 112n 112M 1191: 7,7 % 6.0% 6.2% 5,917 1001Y."n DIRLTA CRFEK I I YDROPOWER POTFN'I1AL (See Table 5) W DISCI IARGESUMMARY 13 Averagc Flow (cfs) 20.0 24.0 37.0 17.0 28.0 37 0 49.0 43.0 5&0 47.0 48.0 44.0 36,9 1.1 Usable Flow (cfs) 29.0 Z.I.n 17,n 17A 2R.0 37.11 44.n 43.0 50.0 47.0 4R.0 44,0 ENERGY POTENTIAL 15 Average Capacity (kW) 3" 2% 263 260 .187 528 568 556 556 500 542 513 447 16 Hydroproject Potential (kWh) 2%,800 199,200 196,000 137.100 288,1IX) 380,3rx) 43Z000 413,80) 4M,401 372,500 390,91X1 3Rl.6M1 3,938,701 I IYDROPROJECT FNERGY D[S1Rl(iU'1'ION I i YDROELECTRIC GENERATION (kWh) 17 City Load 196.060 178,320 194,400 t81.200 198.000 165,160 170.880 168.000 166,800 I.K240 174,240 1%,560 2176,080 18 Petcr Pan Load 101,720 20,880 1,600 5,901 00,ion 214,940 261,120 245,8W Z33.600 186.260 216,660 185.040 1,762,620 19Totnl 2%RM 199,200 196,000 187,100 2R$101 380,300 43VW 413,81V 400,30) 37ZSW 390,900 391.600 3,938.701 DIESEL GEN FRA11ON (kWh) 20 City Load 0 0 0 0 0 0 0 0 0 0 0 0 0 ZI Peter Pan Load 180,512 228,432 227,552 251.140 243.212 314,260 389,880 373.952 68.800 A516 0 0 2313,228 22Total 180,512 228.432 227.552 251,140 243,212 314,260 389,FR0 373.952 M.800 581516 0 0 2336,256 FUEL. REOUIRED (Gallons) D City Load 0 0 0 0 0 0 0 0 0 0 0 0 0 24 Peter Part Load 14,796 A724 18,652 2A585 19.035 2-5,759 311957 30.652 5,639 4,796 0 0 141,496 75Total 14,796 18,724 18,652 2%585 K935 25,759 31,951 30,652 5.639 4.796 0 0 191,496 4 y z a a 700 60 500 o 1400 300 200 100 1,M) a Ol D(St 1 DI ii 700 kW Project, City and Peter Pan Dads aen---UU M"U Mar-YU Apr-WU M,a"U JUn-9U dui-90 M --90 Sep-90 Od-90 Nov-69 Dw-89 Month -�' City Iced Pekes Pan In®d - )K- Hyft Poteutiel Figure 13 TABLE 9 SUMMARY OF EXISTING DIESEL ELECTRIC POWER PLANT COSTS FOR CITY OF KING COVE FY 1988 FY 1989 FY 1990 Three -Year Average Percent Change 1998 to 1990 Total Fuel Consumed (gallons) 162,903 164,440 173,601 166,991 3.8 Total Fuel Cost S 110,094 S 145,187 S 142,357 S 132,546 22.7 Power Cost Per Gallon S 0.73 s 0.88 S 0.75 S 0.79 2.7 Power Generated (kW) 1,966,920 1,918,920 2,099,560 1,995,100 6.3 Average kWh Pear Gallon 12.1 11.7 12.1 12.8 17.7 Power Sold (kWh) (a) 1,663,846* 1,590,971 1,796244 1,683,687 7.4 System Loss (kWh) 303,074 327,849 303,316 311,413 0.1 System Efficiency Production to Sales 84.6% 82.9 85.5% 84,3% 1.0 Fuel Expense S 101,094 S 145,187 S 142,357 S 129,540 22.7 Operating Expense S 202,927 s 272,134 S 161 ,928 S 212,329 -25.3 TOTAL EXPENSES (b) S 304,021 S 417,321 S 304,285 S 341,875 0.1 Cost Per kWh Calculated (b=a) S 0.183 S 0.262 S 0.169 S 0.204 - 7.6 Cost Per kWh Customer Charge (19) S 0.20 5 0.20 $ 0.20 S 0.20 0.0 * Estimate Taken from State of Alaska Power Cost Equalization Program (PCE) filings for 1988, 1989, and 1990. FY = State Fiscal Year, July 1 to June 30, ending in year noted. 6.4 FUTURE ELECTRICAL DEMAND Future load projections for the City of King Cove were based on a 2.5 percent growth rate for the planning period. This value will be used in the economic analysis. Dock expansion, fish processing expansion ill tile C0111111L1111ty, and the community expansion could all substantially impact the electrical load, but are too undefined at this stage to factor into future loads. Prior studies projected the City of King Cove peak load for 1990 at 253 kW (14), while the actual peak was over 350 M. 6.5 PETER PAN SEAFOODS There was little base data related to operating cost available from Peter Pan. The estimates of production costs were derived from studies done with similar fish processing facilities at Akutan (18). Load data was derived from projected demands furnished by Peter Pan and the 1988 AEA 07073.003:N:8:p10 41 study (3). During 1990, Peter Pan Seafoods peaked at between 1,300 and 1,900 kW. Energy use data was not available, but at a 70 percent load factor this would represent 12,000,000 kWh per year. For this study, Peter Pan load data from the AEA 1988 study was used as more recent data was not available. Also uncertainties in the growth of the seafood industry preclude accurate assessment of Peter Pan load growth. For purposes of this study, Peter Pan and the City of King Cove together represent an infinite load which could absorb all of the energy produced by the Delta Creek hydropower project. 07073.003:N :S:D t 0 42 7.0 ECONOMIC ANALYSIS The economic analysis presented in this section compares the net present value of diesel generation with the net present value of hydroelectric generation. The analysis period begins in 1991, assumes hydroelectric power will be available beginning in 1994, and continues for the next 20 years unt l~lfor a total analysis period of4,ears. An economic analysis spreadsheet was developed to analyze the cost -to -cost ratio of the project. The spreadsheet was modeled after one used by AEA in 1988. Two scenarios were modeled: 1) installation of a two 350 kW unit hydroelectric project to meet the City of King Cove's electrical needs; and 2) a single 700 kW hydroelectric project to meet the City and Peter Pan electrical needs. The spreadsheets are presented in Table 10 and 11. The net present values of each case, diesel generation only and hydroelectric with diesel generation, is found by calculating the yearly capital, fuel, and operation and maintenance (O&M) costs for each, discounting these to current dollars and summarizing them for the analysis period. The base case net present value is then divided by the hydroelectric net present value to yield the cast -to -cost ratio. Cost -to -cast ratios greater than 1.0 indicate that hydroelectric is less expensive over the project analysis period than diesel generation. Ratios less than 1.0 indicate continued diesel generation would be the more economic option. The economic analysis was based on the following assumptions: • The City of King Cove load growth will be at an annual rate of 2.5 percent based on PCE records (see Table 9). • The annual interest rate will be 8.0 percent, nominal ynterest rate will be 3.0 percent, and annual inflation will be 5.0 percent. �fues reflect recent trends in long- term rate trends. • Diesel fuel will be escalated at 1.35 percent above annual inflation. This value was ssigned for use in this project by the AEA project manager and reflects the trend in energy costs increasing faster then costs in general. + The 1990 fuel price of $0.90 per gallon was assigned for use in this project by the AEA project manager. • The City's diesel generation efficiency of 12 kWh per gallon is based on recent generation records. Peter Pan efficiency of 12 kWh per gallon is based on an analysis of a similar seafood processor in Akutan (17). 07073,003.N:8010 43 Table 10 KING COVE HYDROELECTRIC FEASIBILITY Economic Analysis City Lead Only- Umd Foreenst Acsumptiom Diesel Sesfcml Aasumpli"ns Hydroprnjeel Assumptions SUMMARY ('in• Load Factor Sn.O n Fuel Escalation Rate 1.35^ Total Cost $J.marwXl Rssse (.nsc Ncl l'resenl Vsthle = $15,372,212 Community Lead Grouch L511 I"PAyg. Fuel price S(I.00 1pal Funding Life 24 Yeats 1 Eydrllprnjeel Nei Present V.-iWe = $15,137,175 Cry F,frMeney 12 kWh/gal Annual Debt Service $65510q I•nsl/Cost Hallo = I.42 Flontrmic Paramelers / Econnmic la(c 10 years Unit 1 350 kW Nnminal Interest Rale RIP, Replacement Cost $Inn /kWh Unit 2 350 Annual Inflation Rate 431 City 0 R M C'nct $ft I I Aft Installed Capacity 71m) kW Rc:d Discnunr Rate 3.tr: Head 255 ft Erriciencv SO' O a M C'nsl Stl.(R (kWh CITY ONLY ECONQMI( ANALYSIS 1mN1 I(I'll I'M 1003 "m 11N)S r'Mlr, I(ml Imw I'm 21XIr) 21011 2(N12 201`13 ENER(SY RE(•1111RC.NIF.N l5 fkwhl I Ci1vinad 2,OK060 7152111.1 22115,850 2,2eAk o 2,317,521 237S, 157 113.IAP, 2,41A,711 2,S5fk1111 2.622,t163 2,6R7.611 1751,RI(5 2.823,675 !"Q1.267 DIFSFL FUEL RATLS 2 Annual brninlion Ratc 3 Fu0I1ncc1P"mI5�dl 0JV;r• CAST ANAI NSIS Cite Svslem 1 Firm C:IpacilyikWI S ('np:w4v Addui,m.(kWi 6 (',IpaeilVRepl.—niem,IOVI 7 D1, M l`us4 l lsa l};Jh'n I R Capital l'"cls l l'1'x15I 9 Fucl ('ns13 11'1'N151 In () C MC-1,(I'rxIS} I I •ri,cd ci„-rl,a� I rwx, $r S1YDR(1pR(1?C ("I' ANAS.Y51S 12 Firm Capacim(kW1 13 Diesel C'apacily Additions (kWl 14 Cnpncky Replacements (kW) 15 Hydroelectric Gcneration(kWh) 16 Diesel Generate m (kWh1 17 Diesel Fuel I Ise (galh,ns) M Capital Costs 119" S) 19 1 iydro Capital Costs 20 Fuel cnstb 119" S) 21 0 A M Costs (191X1 S1 22 Total Annual CmLs (1" $ L4 , 1.4% Llr4 LIS'% I.Ar" I.11_+ IA-1 1,4� I.-n 1. n 1. 1­, I, 1.1 1.X", R,xl hQl 11.92 It'll Rns 1111x pub n.IIu 1,1w1 IO2 1.113 Lul 1(11, I.0i'1 Rf X] 81N1 I,IMMI 1,e041 I,Iwxl LINXI 1_fx Nl 1.IxNr I!Mw] I,1XX1 I'm) I.IXMI LIkXI LIXkI II It to 11 II 11 to tl It 11 (1 0 11 I(NI It II 5rXl to It 11 t1 11 Sm 11 0 11 SIXI to l 1.,k,3 IAI,?11 183,R21 IRR. 110. 110, 1 ! I I'f)"M liz"t11 24]1.']An 20. 17r, 21R.5115 1211Al 22?1567 235.34w, 211.3A'? $11 $tl $35ammo $11 5n SII $tl SII $156joI n $11 SIl S(1 S35rknntl S7n.IN11! 5157,If.1 S163,S83 S14,9.1r36 SIM.531i S183142 Sl'11.5II S19'1,'llt $11i.fAml $213.585 S221.981i S230,lw S139,4.W 521C719 $2SS..IIII 111,952 $236, 121 $'I_!.(, 11 S_'I,l•. 1111 S35 k921 S2r.1.101 S26 J. `:13 Ste 021, $_R1.3Q2 S28F, IN S29V138 S31U,n211 531VIII Sl l IL 364 WR,-11`f $.IINI,U61 S7Q.S14 $.125?15 $118.311) $ISI,RrS S465114, t18(p.1211 5811.1]T7 S5IR V7 $526,135 $542.•17R 51Nhf.343 S616,179 800 RIN) 1j]nn I.1wo 1•1110 1.RXII 1.74n 1.7491 L7nn 1.711A 1,71)(1 1.7110 1,700 1.700 n n n n 11 11 1f ff u o n n n Q It u Snll n 0 n It It 0 0 0 0 0 Soo 2,317,521 2�J75,459 2.a3a,R>•. 2.495,717 Z558.110 262L1163 2.(A7,614 z754,W 2.22?.675 2,8Q4,267 V"C1,56(1 2,152,049 2205,85n 2.260,9% F1,401 8.2on $d(I5 t1,6IS 8.831 1051 9,278 9,509 9.747 9,9'll 174,963 1710337 183,821 1M,116 ml e83 71X1 '119 "136 '151 773 74J2 812 $33 so $0 $3503100 $a $o A $II $n $n $n $o $o So $350,0111 $0 $1) $0 $n SM5121k1 S625,716 $Sn'7,55't 557r1,6r,9 $5.11,969 S520,4(A $497,a13 V14,676 $153,316 $13?,917 S157,467 5163.583 S169,936 $176.536 $03 S65R $NR3 $7111 $737 $766 $796 $827 58-59 S892 $L30,952 $236,71_5 524?rol4 S248,710 SYNA57 S214.60.1 S22n11r1 5225,562 S23L2n1 $2.16,081 S212,(WA $2-2,Q78 $M,2+13 S261.583 S3811,419 S4n,3W 5762570 S,w,245 S86S,200 Sr411,067 $S18.303 $71M,931 $776,927 S75R,21I $74n,745 S724,48I S7M.377 S1,045,392 Table 10 CITY ONLY ECONOMIC ANALYSIS ENERGY RFOl11RFMENIS (kWhl I Ci1v I-crld DIESEL FUEL RATES 2 AnmuaF F*calalion Rate 3 l,ucl I'rire ( I mlS/Far) BASF CASI-- ANALYSIS Oily lyvsicm U, I Firm f'ap:,cin•(kWl 5 Cnpacily AdditVa nt fkWI 6 Cap:u-in' Replaccmcnls (k W I ! Oic+CI fntd I Ise IgAlom) R (;Ipi131 frisk (I'M S) 9 fuel (:-15 (1 Wilt S) III f144MC-I$(1'1xI$I 11 Telll C•itr C,wis (Sf„1II S) M01.1102 031xf IMAK A WKIZ! 12 Firm Capacity (kWI 13 Diesel Capacity Additions (kW) 14 Capacity Replacements (kW) IS Hydroelectric Gencralion (kWh) 16 Diesel Generatinn (kWh) 17 Diesel Fuel Use (gallr+rts) 18 Capital Costs (10" S) 19 Hydro Capital Costs 20 Fuel Costs (low$) 21 O 8t M Cmis (1990 S) 22 Total Annual Costs (IQ90S) KING COVE HYDROELECTRIC FEASIBILITY Economic Analysis City Load Only 20111 2fx15 20" 21M11 21" 2(m 2014) 201t 2n12 2013 2014 21115 2016 2017 2018 2010 'r066.633 3,("11.789 3,116.8(19 3,191.729 3,271.507 3,356,462 3,44n,37-i 3.526.383 3,61I,s•12 3,704.906 3.797,5Z9 IOWAfi7 3.989.774) 4.118(I,52-3 4.191.7151 4.296.555 1.4i'n 1.•I;x- 1.446 JAI; 1.41 1, 1-, JA% 1,4"7 1-•l^ t,4x 1.4e4 1.44:1-4!, 14, 1.1^1 1.,1 LII'1 1,10 1.12 I.I3 1.15 1.16 11IR 1.I" 1.21 1.2.1 1 N 1.2r. 1 is 1.21) 1-31 L33 I,II(xl 1.INO 1.1"1 1,501 1,5411 I.SIIQ I.SIMI 1,SIM1 I,ffxl 1.5fln 1,5011 IN* 1,7f91 1.701 1,7tM) 1,74111 n It 0 5111 II 4 4 1`1 4 0 1) It 21M1 it n 0 If 4) 4 11 fix$ It 0 II SIN) n it 11 0 59.11 54111 0 211_21'1 25t-3+r1 *c9,f,t.l Z6rc221 12,x.K7 11-1.0111 284,,a.IR 2'r3,R65 1111.212 MA. 74Z 31fsIf, 1 321.312 331IR2 311010 319.313 35831i6 $0 $0 so S350,Ix11 $350,l 1 $u Sn $n S351)3xxl $0 S0 $0 Sl+t(Xk) s3sow) $3509g) $0 SNA,446 527R871 $289,702 S31w)i3 P12.e.12 W—I.-I84 $337,341R SwI.Sol $36.1,1111 $378.255 SY12,946 S108.2n7 S-12Rtw) S449.510 SI571639 S475AIZ $324024 $331, 187 $342,849 $351. 124 S3W.21xk $36'g2tt S378,411 S181,942 S141,61111 $407,540 $417,7M S129. 171 $43$R76 $-11't,BSx 5161.01 $•172.4,21 S591,1'11 $4.1:058 5634551 tI.(XIL373 51,021811 S6rt31M15 3715.839 $738-•103 11,11),713 1781095 MAIM 5836,378 SIJP2.136 51,210,377 SI,2(A733 S%lP,1133 1,700 1.700 1.700 1.7"1 1,7fln 1.101) L7110 1. MI 1.7(41 1700 1.700 1,100 13M i,700 1.7t10 1,700 0 0 0 0 n o 0 n n 0 a 0 0 0 0 n 0 0 0 500 n 0 0 0 0 0 0 0 0 0 500 4 2,966,623 3,04Q789 1116,809 3.194.729 3174,597 3,356,1162 3:140,374 3.526,383 3,614,542 3,704,906 3,797,529 3,892,467 3,938,700 3,938,700 3,938,700 3,93$701I 10,241 10,497 14,759 11,02$ 1I.MM 11,586 11.876 1�'173 17477 IL789 U.109 11.4.47 51,079 150,923 253.061 357,855 653 875 897 910 412 666 'MNl LOl4 i,(sl0 1.%6 1,ft92 1,t2n 4.257 12.569 ZISM 29,6'_[ $0 SO $0 S350,000 Sit SO so SO $0 SO S L000,000 SO $0 $0 $350,(xl0 SO $41.1,435 S394,831 S377,063 S360,0% $343,891 $32&416 $3t3,637 S299,524 S286,015 5273.173 5260,880 $249,141 S237,929 $227,223 S216.998 SO $927 S%3 S1,OW $1,019 S1.079 $1.121 $1,165 S1110 S1,257 S1,306 $1.356 $1.409 $5.429 $16147 S27,628 S3A597 S268.123 $274.926 S281.696 S288.739 5295,a57 VIM'356 S310,940 $318,713 S326,681 $334,848 S3.13220 $351.8W S360,102 S37i,074 S38-320 $393,847 $682,485 $670,619 3650,760 $999,87,1 $640,928 5OUQ3 $625.742 $619.447 S613,983 $609,3Z7 11.605,456 $607350 S6113,460 $614.54.1 1976,945 $433,444 Table 10 KING COVE HYDROELECTRIC FPASIBILITY Economic Analysis City Load Only CITY ONLY ECONOMIC ANALYSIS :n1n 2n21 zn2'+ 2n23 NT.I I;NER(;Y RI°Q111RFMI-MIS (kWh) I 01e Lt�ad iAf13.%,i 014.(w,g I.Q( 020 414Y 503 40-1,158 imsCL ruEL RA•n:5 _' Annual F.�calalian Ratc I:i'7 L4^% Ld 1.4f'i 1.1':. 3 1.35 1.36 L38 1. trl 1.12 13ASr (_ASI: ANALYSIS City SVIICm CT 4 Firm Cer:lt•ity l kW) I_IIN7 1.711) l"IM 1.7tkt I. 71x1 5( igwily Ad&hms (kW) a it 0 n u n Capacity Rc13larerncn1%(kWI 1) 0 Simi It 01 7 Diesel l$tcl t fsc(gallons) Nx,,at7 31fi,172 ,385,577 375,216 IW.IMin 8 Capital Coos (1", $1 $II $9 S3150_01,110 SO Sit 0 Fuel Colts(lwatSI $403,876 $50,057 S532083 S553,7&3 S575.Nh Iu 0.k M Costs (1-41 S) S1,e1,437 51,16,518 S5f1fi.461 iS21j-f,5 S531.121 II Twal011•Coa1s(anfglj} $n19,113 S100k6n5 $1,301,0.1.1 S1.075tr,13 M.1trt.61I I I YOROPROJIF('1• ANALYSIS 12 Firm Capacity' (kW) 1,71n1 1.Ina 1,700 1,71M) 1.71)0 13 DFescl Capacity Additions 1kW) 0 0 0 0 0 14 Capacity Replacements 1kW) 0 0 500 q 0 15 Hvdr lcctric Generation (kWh) 3938,700 3,038,7r10 3.439,700 3,938.71JQ 3,938.7110 16 Diesel Generation (kWh) -165,269 575.368 6KZ20 803,893 022,458 (7 DicsdFuclllscigalloni) 38,772 •17.9.17 57.352 66.901 74.871 18 capital Costs (1900 $) $0 SO $350,(ft SO SO 19 Hydro Capital Costs SO $0 So $0 $0 10 Fuel Costs (1999S) S54177 565,305 $79,277 $93.852 $109.118 21 0 & M C0515 (IQ"$) $405,663 S417,774 $430,187 S442.911 $455.953 22 Tot -it Annual Costs (19%S) S457,A39 S483,166 S859,464 $536,163 1565,101 4- v Table 11 KING COVE HYDROELECTRIC FEASIBILITY Economic Analysis City plus Peter Pan Loads Load Forecast Assumptions Diesel System Assumptions Hydroproject Assumptions SUMMARY City Load Factor 50.0% Fuel Escalation Rate 1.35% Total Cost $7j,16,000 Base Case Nei Present Value = $35,442,646 Peter Pan Load Factor M.0m 1990 Avg Fuel Price S0.90 )gal Funding Life 24 years llydroproject Nei Present Value = $35,431,881 Community Load Growth 2.5 T City Efficiency 12 kWhlgal Annual Debt Service S616,000 Cost/Cost Ratio = 1.00 Petet Pan Efficiency 12 kWhlgal Unit 1 700 kW Economic Parameters Economic Life 10 years Unit 2 Nominal Interest Rate &0: Repfacemem. Cost S700 AW Installed Capacity 700 kW Annual lnn.nion Rate 4.5%. City 0 & M Cost $0.11 /kWh Head Z55 ft Reat Discount Rate 3.0% Xclet Pan O & M Cost SO04 /kWh Efficiency 80%. O & M Cast $R.p9 lkWh ECONOMIC ANALYSIS 14% 1991 111'12 1993 lml•1 1995 199h M7 1998 1999 2000 2001 2002 2003 1:Ni;R(:Y RFOUIRFMEN'1S (kWh) I City Ioad 2,099,560 2,152,049 2.205.851) 2,260,996 1,31-1,521 2,375,459 -434,8-16 2,495,717 2,558.110 2,622,063 2,687,614 2,754,805 2821.675 2,89.1,267 2 Peter PartLo4d(1990) 1,075.&18 4,177,744 4,282,188 •1,399,243 4.498.074 4,611.448 4.T_6.73.1 4.84.1,902 4,966.025 5,090,176 5.217,430 5,347,866 5,481,562 5,616,(101 3 Total Community Low 6,175AW 6,329,793 6,488,038 6,650,239 4816,495 6,986,907 7,1615811 7,340,620 7.52.1,135 7,71Z?,38 7,90.1144 8,102,670 &305,237 8,S14868 DIESEL FUEL RATES 4 Annual Escalation Rate 1.4 % 1,4 % 1.4% 1.4% 1.4%. 1.4:0 1.4'"0 1.4% 1.4% 1.4% 1.4% 1.4% 1.4% 5 Fuel Price (I"O $1gai) D.90 0.91 0.92 0.94 Allis 0.96 0.98 0.99 1,00 1.02 1.03 1.&1 1.06 1,07 RASH CASE ANALYSIS (Disesi Generation only) City System , 6 Firm Capacity (kW) OOII so 1,(Nol 1,000 1,40ml l'otm I,tXkl 1.00t) 1.000 1,000 I,01H) 1,000 000 I.(01 7 Capacity Additions (kWl 0 f1 A 0 41 0 0 A 0 0 0 0 0 0 8 Capacity Replacements4kW) 0 0 500 0 0 0 0 0 S00 0 0 0 500 0 9 Diesel Fuel Use(p4ons) 17.1,1163 179.337 183,821 IM416 19-1,121 197,955 20z,)w 2417.9-16 20,176 218,505 223.968 229,567 215.306 241.189 10 Capital Costs (1990S) SO s0 S350010 SO $D S0 s0 SO S350,000 $0 SO SO $350,000 s0 11 Fuel Costs (1990S) $157.467 S163,583 S169,936 S176,536 $183.392 Sl%,514 $397,913 S20.5,600 $213,585 S221,880 $230,497 S239,449 $24&749 $258.410 12 O & M Casts (1991)$) SZM.952 5236,725 $242,644 S248,710 $254,927 $261.301 S267,833 $274,529 $281 392 $288,427 SZ95.638 1303,029 $310,604 S3M369 13 Total City Costs (1990 S) $368,419 S400,308 E414579 $425.245 VX319 $451.615 S465,746 $480,129 $494.977 $510,307 $526,135 1544478 S559,353 S576,779 Peter Pan System (1985 Data) 14 Firm Capacity (kW) 2,344 2,340 2,3.10 21340 Z,340 3,340 3,340 3,340 3,340 3,340 3,340 4.340 4,340 4,340 15 Capacity Additions (M) 0 0 0 0 0 1,D00 0 0 0 0 0 1,000 0 0 16 Capacity Replacements (kW) 0 0 0 0 0 0 0 0 0 2,000 0 0 0 0 17 Diesel Fuel Use (gallons) 339.654 348,145 356,849 365,770 374,914 384,287 393,895 403,74Z 413,835 424,181 434,786 445,655 456,797 468,217 18 Capital Costs (1990 S) $0 SO SQ $0 $0 $700,000 SO S0 $0 $1,400,000 SO $700,000 s0 SO 19 Fuel Costs (1990 $) S305,6% $317,561 $329,894 $342,706 $356,016 S369,843 $394,207 $399,128 $414.629 $430,733 $447,461 $464,&40 $482,893 $501.647 20 O & M Costs (19%$) S163,034 $167,110 $171,288 S175,570 $i79,959 $164,458 $199,069 $193,796 $1%.641 $203,607 $208.697 $213,915 $219.262 $224.744 21 Total Peter Pon Costs (1990 $) S468,723 $484.671 $501.182 SSIK276 $535,975 SL254,301 $573,276 $592924 $613.270 $ZO34,340 S656,158 $1,378,754 $702,155 $726,391 Z2 Total Annual Costs (1990s) $W7,141 SB84,979 S913,761 $943,521 $974,294 S1.706,U6 S1,039,023 Si,073,053 $1,108,247 SZ544,647 $1,182,293 $1,921,232 S1,261,508 $1,303,170 HYDROPRO3ECT ANALYSIS 23 Finn Capacity (kW) 3,140 3,140 3,340 3,340 4.040 4,540 040 4,540 4,540 4,540 4.540 5,550 3.550 5,550 24 Diesel Capacity Additions (kW) 0 D 0 0 0 500 0 0 0 0 0 0 LOW 0 25 Capacity Replacements (kW) 0 0 500 0 D 0 0 0 0 0 0 0 21000 0 26 Hydroelectric Generation (kWh) 3,938,700 3.938,700 3,938,7D0 3,938,700 3,938,100 3,938,700 3,938,700 3,938,700 3,938;700 3,938,700 27 Dim] Generation (kWh) 6,175,408 6,3Z9,793 6,488,038 6,650,239 z877,795 3,049.207 3,222,880 3,401,920 3,595,435 3,773,338 3,966,344 4.t63,970 4,366,5V 4.574,168 Z8 Diesel Fact Use (Batton) 514.617 527,483 540,670 554,187 239,816 254,017 268,573 283,493 298,786 314,462 330,529 346,998 363.879 381,191 29 Capital Costs (1990S) SQ SO $350,000 SO SO $350,000 SR $0 s0 SO SO $0 $4100.000 SO 30 Hydro Capital Cost SO $0 SO SO $6t6,00D 558&280 $561.807 $53026 $512,382 S489,325 $467,306 $446,277 S426,194 $407.016 31 Fuel Costs (1990 S) $463,156 $481,143 S499,830 S519,242 $227,729 S244,469 S261„968 S280,254 $299,360 $319,318 $340,165 $361,935 $384,666 5408,397 32 O & M Casts (1990 $) $247.016 SZ53,192 $259,522 $266,010 $469,595 $476,411 $483.398 $490,560 $497,900 $505,425 S513,137 $521.042 S529,144 $537.450 33 Total Annual Costs (1990 S) S710,)72 $734,335 $1.109,351 $785.252 $1.313,323 $1,659,161 $1,307.173 $1,307,340 $1,309,642 S1,314,N8 S1,320,607 $1,329,753 $3,440,OD5 $1,352,B62 Table 1 I ECONOMIC ANALYSIS ENERGY REQUIREMFN-IS (kWh) 1 City Load 2 Peter Pan toad (10 0) 3 Total Community Load DIESEL FUEL RATES 4 Annual Escalation Rate 5 Fuel Price (1990 Slgal) BASE CASE ANALYSIS (Disesl Generation only) City System 6 Firm Capacity (kW) 7 Capacity Additions4kW) 8 Capacity Replacements (kW) a Diesel Fuel Use (pa Ions) 10 Capital Costs (19%S) I l Fuel Costs (1990 S) 12 O & M Costs (1990 $) 13 Total City Costs (1990 S) Peter Pan System (1985 Data) 14 Firm Capacity (kW) 15 Capacity Additions (kW) 16 Capacity Replacements (kW) 17 Diesel Fuel Use (gallons) 18 Capital Costs (1990 $) 19 Fuel Costs (1990 S) 20 O J1 M Casts (1990 S) 21 Total Peter Pan Costs (19%$) 22 Total Annual Costs (1990 S) HYDROPRO3ECT ANALYSIS 23 Firm Capacity (kW) 24 Diesel Capacity Additions (kW) 25 Capacity Replacements (kW) 26 Hydroelectric Generation (kWh) 27 Diesel Genetton (kWh) 28 Diesel Fuel Use (gallons) 29 Capital Costs (19905) 30 Hydra Capital Cast 31 FutiCosts(1990S) 32 0&MC0s1s(1990$) KING COVE HYDROELECTRIC FEASIBILITY Economic Analysis City plus Peter Pan Loads 2004 2005 2006 Z007 24)(18 2009 2010 2011 2012 2013 2014 2W.S 2016 2017 Z018 2019 496N623 3,044089 3,116,809 3,194,729 3,174,591 3,356,462 3,440,374 3,526,383 3.614,542 3,704,9U6 3,797,529 3,892,467 3.989,779 4,089,523 4,191,761 4,296,555 5,759.067 5,903,043 6.050,619 6201,885 05032 6,515.855 6,678,752 6,845,720 7,016,863 7,19ZZ85 7,37ZO92 7,556,394 7,745,304 7.938.937 8,07,410 8,340,845 8,7L5,690 8,943,832 9,167.428 9.396.61.1 9,631.529 9,87Z317 10,H9,i25 10,372JW 10,631,406 10.697,191 11,160.621 11.448.861 11,735,M 12,028,460 14329,171 17,637,401 1.4% 1.4% L4% 1.4% 1.4% 1.4%a 1.4% 1.4% IA% 1.4% 1.4% 1.4'7 1.4% 1.4% 1.4% 1.4% 1.09 1.10 1.12 1.13 1.15 1.16 1.18 1.19 1.21 1. Z3 1.24 1.2 6 1.24 1.29 1.31 1.33 I,(00 1,0111t MW 1.5W 1,51111 1.500 41544) I,SW 11519) 1500 1.51N1 1,5u) 1.W 1.700 13W 1,700 0 0 0 5(141 It 0 0 0 0 4) 0 0 ?(8t 0 0 0 0 0 0 0 S110 0 0 0 500 0 0 0 0 500 SO0 0 247.239 233,399 259,714 266,227 272A3 279,705 MOM 293,865 301,212 308,742 316.461 124.372 332AS2 340.794 149,313 35$046 $0 $0 SO $350,(XM $350,OM) s0 s0 s0 E350,000 s0 $0 SO $140,0W S350,000 $350,000 SO S268,446 $Z78,871 $289.702 S300,953 WZ642 $324,784 $337,39B $350,501 $36-1,114 S318,255 $392,946 $408.207 $42-1,060 $440,530 $457.639 S475,412 5326,329 $334,497 $342,&19 $351,420 $360,206 $369,211 $378,441 S387,902 $397,6IX1 $407.540 $417,728 WS.171 S438;876 $449,848 S461.O94 $47Z621 $594,774 $613,3j8 $632,551 W2.373 S672,847 $693.995 $715,839 $738,403 S761,713 $785,795 $910.674 $836,378 $862,936 SBK377 $911033 $948,033 4,340 4,340 4,340 4,340 4,340 4,340 4.340 4,340 4.340 4,340 4,340 4,340 4,340 4,340 4.340 4,340 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 a 0 1,000 0 0 0 ZaaO 0 1,000 0 0 0 1,000 0 0 0 Z000 479,922 491,920 504,213 516,824 529,744 547,988 556,563 570,477 584,739 599,357 614,341 629,700 645.442 661.578 678,118 695,070 $0 S700,000 $0 SO $0 $1,400,000 $0 $700,000 s0 SO $0 S700,000 s0 s0 so S1,400,000 S521,130 $541,369 S561395 $584,137 S606,927 S63%498 $654,985 M,4Z3 $706.849 $734,302 S76ZS20 $792,446 $823,223 Sass,195 $888,408 $922-912 S230,363 $236,122 SZ42,02S S248,075 s254,271 S260,634 $267,150 $273.829 $280,675 $287,691 S294,884 $304256 S309,812 $317,557 $325,496 $333,634 $751,492 $1,477,491 M.419 S832,312 S861.204 SZ291,133 $922,155 S1,654,L52 $987,524 S1,021,993 S1,057,704 $1,794,702 $1,135,035 $1,174752 $1.213,905 $2,656,546 $1,346,2.67 $ZO90,849 S1,436,970 $1,484,685 $1.534,051 SZ985,121 111,631,974 $439Z656 $1,74%237 $1,807,788 11,868,377 S2,631,080 $1,995,971 SZO63,129 $2.132,637 S3,604,579 5,550 5,550 5,550 5,850 5,850 5,850 5,850 5,850 5,850 5,850 5,950 5,950 6,050 6,050 6,050 6,050 0 0 0 300 0 0 0 0 0 0 0 0 200 a 0 0 500 0 0 low 500 0 Z00o 0 I,o00 0 0 0 1,000 0 500 2,000 3,938,700 3,938,700 3,938,700 3.938,700 3,9A700 3,938,700 3.938,700 3,938,700 3,938,700 3,938,700 3,938,700 3,938,700 3,938,700 3,939,700 3.938,700 3.938,700 4,786,990 5,005,132 5,228,728 5,457,914 5,69ZB29 5.933,617 6,180,475 6,433,403 6.692,706 C958,491 7,Z30,9Z1 7.510,161 7,796,383 8,080,760 8,390,471 8,698,701 398,916 417,094 435,727 454,826 474,402 494,468 SIS,035 536,117 557,725 579,874 602,$77 625,947 649,699 674,147 699,206 724,892 $350.000 SO $0 S910,000 $350,000 $0 $1,400,000 $0 S700,000 s0 $1.000,000 SO S840,OW SO $350,DW $1,400,000 $388,700 $371,208 $354,504 $338,551 $323,317 $30F1,767 $294,973 $281.603 $M931 $256.829 $Z45,272 S234,235 $723,694 $211,628 S204,015 SO $433.169 $459,012 $486,001 S514,152 S543,522 $574,159 $606.114 S639,442 S674,195 $710,432 $746,212 S787,598 IM652 S871,441 $9KO36 $962,508 $545,963 $554.688 $563,632 $57ZB00 S5841% S591,828 S601,700 S611,819 S624191 $632 8W $643,770 $654,899 1666,339 $678,073 S690,102 $702,431 33 Total Annual Costs (1990 S) $1,7t7,830 $1,384;918 S1,404,137 $Z335,503 11,799.034 $1,474,754 S4901687 €1,532,t164 SZ265,318 SJAW.084 $2,637,204 $1,676,722 %2558,684 $1.763,141 $2,160,153 S3,064;939 Table 1 I KING COVE HYDROELECTRIC FEASIBILITY Economic Analysis City Plus Peter Pan I:Ct INOMIC ANALYSIS zeo 2021 2022 z923 2W 1 ENERGY REOUIREMI:MIS (kWh) I Ciryl. .d 1,403.WO 1,51-1,968 •1,626,92n 1,712.593 1.861.158 2 Peter Pan Ln:,d (I'Pttl) 8,549,367 8,763,101 8,982,i78 9,206,733 9,436,901 3 Total Community load 12,953,336 13,2Tf,169 13,ri09,098 13,949,326 1.1.296,059 DIESE1, FUEL RATFS 4 Annual Escalation Rate 1.4% 1.4-. 1.11T 1.4% 1.4% 5 Fuel Price (19W SIga4) 1.33 1.36 1.38 1.40 1.42 BASE CAST: ANALYSIS {Dieeel Generation only) City Systcm 6 Firm Capacity (MW 1,7t111 ).7011 1,71M1 1,740 1,709 7 Capacity Additions (kW) q 0 11 0 0 8 Capacity Replacements (kW( Il 0 500 0 0 9 Diesel Fuel Use (gallons) 3wW7 376,172 385,571 3951216 405,096 10 Capital Costs (1990 S) so SO $3500)(1 so SO 11 Fuel Costs (19905) $493,876 $513,051 $532,993 S553,683 $575.186 12 0 & M Costs (1990 S) � S484,437 5496,548 S508,961 5521.685 $534.727 13 Total City Costs (1990$) S978,313 S1,009,605 $1.011,944 S1,075,366 S1,109,914 Peter Pan System (1995 Data) 1-t Finn Capacity (kW) 4.340 4,340 4.340 4,340 4,340 15 CapaevyAdditions (M) 0 0 0 0 0 16 Capacity Replacements (kW) 0 1,0t10 0 0 0 17 Diesel Fuel Use (gallons) 712,447 730,258 748,515 767,228 786.408 18 Capital Casts (1990 S) s0 S7001(00 $O $O s0 19 Fuel Costs (1990S) $958,755 $995,991 $1,034,673 S1,074,857 S1,116,602 20 0 & M Cnsts 09%$) S341,975 S350,524 $359,287 $368.269 $377,476 21 Total Peter Pan Costs (1990 $1 S1,300,730 S2,01015 $1.393,960 $1.443.126 S1,494,078 22 Total Annual Costs (1990 S) $2,279,043 $3,056,120 $2,43S,904 $2,518,494 $2,603,991 HYDROPR03ECT ANALYSIS 23 Film Capacity (kW) (i,050 6.050 6,050 6,00 6,050 24 Diesel Capacity Additions (kW) 0 0 0 0 0 25 Capacity Replacements {kW) 0 1,000 800 0 0 26 Hydroelectric Generation (kWh) 3,938,700 3,938,700 3.938,700 3,938,700 3,938.700 27 Diesel Gcnemiion (kWh) 9,014,636 9,3X469 9,670,396 10,010,626 10,359.359 28 Diescl Fuel Use (gallons) 751,220 778,206 805,867 834.219 863,280 29 Capital Costs (1990 S) SO $700.000 $560,000 s0 so 30 Hydro Capital Cost s0 so so SO s0 31 Fur€ Costa (1990 S) $1,010,932 $1,061.386 $1,113,950 $1,16&709 $1,225,750 32 0 & M Costs (19905) S715,068 S728,022 S741,299 S754,908 $766,857 33 Total Annual Costs (1990 S) S1,726,001 S2,489,408 $2,415,249 $1,923.617 S1,994,607 + The analysis period is 30 years to reflect an anticipated project life of 50 years._ Where the City of King Cove monthly hydroelectric is less than demandLgztp•Gt, a minimum diesel generation (line 16, Table 10) has been assigned to account for diesel generation required to meet low flow periods. This minimum was derived by comparing of estimated daily hydroelectric generation (for 1982 flow data) to 1990 City of King Cove daily electrical usage. This minimum load requirement value is increased at the same rate as electrical load growth from the base year of 1994. • Replacement cost for diesel generators will be $700 per kW with a generation life of ten years for full-time diesel generation and 15 years for backup diesel generation. This cost represents the cost of installing a new unit in King Cove powerhouse and was developed from previous studies (3) and for a similar project in Akutan (18) and recent supplier's price quotes for new generators. • The City of King Cove diesel generation O&M costs will be .$0.11 ,per kWh. This value represents the cost to maintain the generators and distribution --system. This value is derived from PCE records by dividing the most recent three years average operating expense ($212,329) by the most recent three years average power generated (1,995,100 kWh) to yield this value. This value does not include diesel fuel costs. • Peter Pan O&M costs will be $0.04 per kWh to reflect values from an analysis of a similar seafood processor in Akutan (17). • Total project costs include estimated construction costs ( Section 5) and financing costs. Construction costs include design, administration, and construction of the project. Financing costs include banding costs, construction costs and a debt reserve fund. Financing costs were assigned for this project by the AEA project manager. • Annual debt service will be equal annual payments of the project spread over a 24 year payback period at 8.0 percent interest. • Hydroelectric generation assumptions have been developed in earlier section of this; report and are used in this analysis. • A $1,00,000 cost to replace the transmission cable from the power plant to the city is added to year 2014 and represents the cost to replace the cable after its design life of 20 years. ' • Hydroelectric project O&M costs will be 0L,0-0?er kWh and represent the cost to maintain the hydroelectric project, the bacels, and the distribution system. 07073.003:N:S:Di0 50 For this analysis, costs for all years are computed in inflation free 1990 dollars. The model does not increase costs by inflation but calculates present value of future costs by using a discount rate equal to the nominal interest minus inflation. This is the same method that was used by AEA in 1988 (3). The base year of economic analysis is 1990 as actual City generation data was available for that year. The electric load and generation data of Peter Pan collected and used by AEA in 1985 (3) are used for this analysis. This data represents the most recent data collected for the seafood processor. Peter Pan was contacted to discuss their generation system and any changes to that system since 1985. These changes have been incorporated into this analysis. Table 10 presents the economic analysis for a two 350 kW unit hydroelectric project serving only the City of King Cove. The project is assumed to be delivering power by 1994. The base case analysis assumes increasing the 800 kW present firm capacity through generation replacements to 1,000 kW for capacity in 1992 and increasing capacity to 1,300 kW in 2002. Firm capacity represents the required generation capacity to meet electric demand including generator down time for repairs. Firm capacity is maintained through replacement of existing generators in the years noted. The two existing old 300 kW City units would be replaced in 1992 with a single 500 kW unit under both cases. Other generation equipment replacements and additions are shown. Some diesel generation will be required during each year because of low creek flows. This is reflected as minimum diesel generation requirement in line 16. The minimum was derived as noted in the previous assumptions. Electricity generated in excess of the City needs and generator waste heat was assumed to have no value. No costs were included for construction of new generator buildings. Table 1 I presents a similar analysis of the Delta Creek hydroelectric project with the assumption of one 700 kW hydroelectric generation unit installed to serve the City and Peter Pan by 1994. Again replacement and increases in diesel generation capacity were developed from the conversations with Peter Pan and as previously noted for Table 10. Electricity generated in excess of the City and Peter Pan needs and generator waste heat was assumed to have no value. It was assumed that Peter Pan and the City represent an infinite load and all hydroelectric generation can be used. This assumption may not be valid because peak hydroelectric generation may not correspond to peak electrical demands. Because this is a run -of -the -river project and generation depends on flow in Delta Creek, a daily generation capacity should be estimated prior to sale of electricity negotiations. Table 10 shows the base case present value to be $15,372,000 and the hydroelectric present value to be $15,137,000, with the 34 year cost -to -cost ratio 1.02. The project is defined as feasible. Table 11 shows the base case present value to be $35,442,000 and the hydroelectric present value to be $35,431,000 with 34 year cost -to -cost ratio 1.00. The project is defined as feasible. 47073.003.N:8:DI0 51 A sensitivity analysis was conducted to determine the effect on the economic analysis of changing the values of various assumptions. Figure 14 illustrates the sensitivity of hydroproject assumptions and economic parameters for the project serving the City of King Cove demands only (cross reference Tables 7 and 10). Figure 15 is the same analysis for the City and Peter Pan loads (cross reference Tables S and 11). Each of the five assumptions shown in Figures 14 and 15 was tested by deviating their values, in 25 percent increments, up to plus and minus 50 percent of their original estimated value, and recording the effect of these changes on the project cost -to -cost ratio. For example, note construction cost estimate line of Figure 14. At the estimated construction cost of $7,602,000, the cost -to -cost ratio is 1.02. if, however, the cost is underestimated by 50 percent, or if there is a 50 percent cost overrun on the project, then the cost -to -cost ratio would be 0.84. If, on the other hand, the cost were to come in under budget by 50 percent, then the cost -to -cast ratio would be 1.32. In both Figures14 and 15 none of the eight assumptions, when varied independently by plus or minus 50 percent, caused the cost -to - cost ratio to drop below 0.90 (defined as the lower limit of marginally feasible by AEA), except a 50 percent decrease in initial fuel costand a 50 percent incerase in total project cost. Even these factors caused the cost -to -cost ratio to be only slightly below 0.90. A combination of factors, however, such as a large cost overrun accompanied by a drop in oil prices, could conceivably cause the project cost -to -cost ratio to go below 0.90, and therefore, define the project as not feasible. 07073.003:1:8:nin 52 1.4 1.3 1.2 0 1.1 0 U 0.9 0.8 ling Cove Hydroelectric, City Load Only Sensitivity Analysis of 30 Year Economic Analysis 1........... ....... .......... ........ ... .................... al. . ......... .... 1 .... ...... --Ou —40 u 25 50 Variation -W Total Project Cost -4— Initial Fuel Prue -E- Real Dm mnt Rate $ Comm Ioad Growth ->E Fw Fsr- Rate Figure 14 LA 1.15 1.1 1.05 �3 1 0.95 0.9 0.85 King Cove Hydroelectric, City and Peter Pan Loads Sensitivity Analysis of 30 Year Economic Analysis -bu --"Z5 0 25 50 % Var Uon f- TbW Prn Jed Goat --+-- TaiW keel Prig -CIE- Real D wowt Rate -F3- Cmm. lad Grath -X- Fuel H,-- Rate b5gute 15 8.0 PROJECT IMPLEMENTATION 8.1 REGULATORY REQUIREMENTS The following is an overview of permitting and agency requirements that need to be addressed prior to the design and construction of this project. This review, which was not requested as part of this study, is not intended to be a definitive list and was developed by HDR's in-house permitting and regulatory staff from previous hydroelectric project experience and review of previous King Cove hydroelectric feasibility studies. No agencies were contacted as part of this study. HDR recommends that all agencies be contacted prior to project implementation. Federal Energy Re ulato Commission FERC FERC normally does not claim licensing authority over hydropower projects that meet the following criteria: (1) generate less than 1.5 megawatts (MW); (2) are not on navigable streams; (3) will not affect interstate commerce by distributing power to areas served by the interstate electric grid; and (4) and are not on federal lands (18 CFR). However, there is no prescribed extent of FERC authority. FERC makes an independent determination of its authority for each proposed hydropower project, and bases its determination on a project description and location map submitted by the client. AEA requested a determination during previous hydropower feasibility studies designed for Delta Creek, but there is no record of a determination being made. According to HDR Regulatory Specialist Neil McDonald, the proposed project stands a better chance of a favorable (i.e. non -jurisdictional) determination if the impoundment only impounds sufficient water to stop air entrainment in the penstock. This project appears to meet this criterion, but that determination must be made by FERC. FERC licensing could be costly, upwards of several hund4A thousphd dollars, if required. Therefore a determination by FERC or locating the previous determination in AEA's files would be important before begining design of the project. No FERC licensing costs have been included in project costs. U.S. Army Corps of Engineers (COE) The creek at the proposed site is not on the COE 1990 list of navigable creek or rivers; therefore, the project would not require a Section 10 Permit from COE (for structures or work affecting navigable waters of the United States). The project would need an Individual Section 404 Permit from COE (for discharge of dredged 07073.003:N:8:D10 55 or fill material into waters of the United States) for construction of the diversion, penstock, and powerhouse where these structures affect wetland areas. The buried transmission cable could fall under a Nationwide Permit Number 12 (utility line placement in waters in the United States). However, if the cable is stink in King Cove Lagoon, a Section 10 permit would be required because this work would be below mean high tide and therefore in navigable water. U.S. Environmental Protection Agency (EPA) Because this project may degrade water quality due to diversion cleaning, a National Pollutant Discharge Elimination System (NPDES) permit may be needed. U.S. Fish and Wildlife Service USF&WS The Fish and Wildlife Coordination Act requires federal agencies who are proposing to control or modify a body of water to first consult with USF&WS and the National Marine Fisheries Service (NMFS). For this project, the COE would seek comments from USF&WS and NMFS during the COE permit application process. USF&WS and NMFS do not issue any permits independently. Alaska Department of Natural Resources ADNR ADNR issues Dam Safety Permits to dams over ten feet tall that impound more than 50 acre-feet of water. The proposed project does not exceed either threshold limit. ADNR also requires permits to darns of any size whose failure under non -storm conditions would damage life or property downstream. The areas downstream from both proposed sites are uninhabited but are developed. There would be a potential minor threat to the raceway and the powerhouse from a clearwater tributary dam failure. Earlier studies noted that there are no known archaeological or historical sites in the proposed project area (14). The State Historic Preservation Office in the Division of Parks and Outdoor Recreation may require a pre -construction archaeological survey of the area. "A Water Rights Permit is required from the Director of the Division of Land and Water Management, Alaska Department of Natural Resources, for any person who desires to appropriate waters of the State of Alaska. However, this does not secure rights to the water. When the permit holder has commenced to use the appropriated water, he should notify the director, who will issue a Certificate of Appropriation that secures the holder's rights to the water." (14) Alaska Department of Conservation (ADEC) If the power generating process does not add chemicals or waste heat to the creek water, nor discharge domestic sewage or gray water, nor require operation of heavy equipment on site after construction, the project should be in compliance with ADEC water quality requirements. The 07073.001:N:8:1)1(1 56 project might result in the discharge of silt into the water during diversion cleaning which may require a permit from ADEC (14). ADEC would review any applications to the COE, FERC, and the Alaska Department of Fish and Game if the project falls under the regulatory purview of those agencies. Alaska Department of Fish and Game (ADF&G) Delta Creek is an anadromous fish stream, as catalogued by ADF&G. Three species of salmon (pink, chum, and coho) all spawn in the creek. Delta Creek also has a population of resident Doily Varden trout. Upstream of the powerhouse, only about 500 feet of the creek is usable fish habitat (9). The proposed project is anticipated to reduce the flow between the proposed intakes and the powerhouse all months of the year and would possibly eliminate 90 percent or more of the flow within this section of the creek for approximately nine months out of the year. This section might not be dewatered, however, because there are several small tributaries entering the creek between the diversion and the powerlouse. Reducing or eliminating the creek flow would have a direct effect on the usable fisheries habitat above the powerhouse. This habitat modification might require mitigation. Previous studies have included work with ADF&G to address mitigation for this project. In 1984, discussions took place between AEA and ADF&G concerning mitigation for habitat modification above the powerhouse. These meetings resulted in a consensus agreement that appropriate mitigation might be the elimination of the "road" crossings or fords of Delta Creek between the airport and Lenard Harbor. Investigations into this mitigation performed by HDR in November, 1990, revealed that there is no "road" between the airport and Lenard Harbor. The "road" is an undefined 4-wheeler trail along the creek. The trail takes the easiest route to Lenard Harbor and happens to cross Delta Creek and its tributaries in numerous spots. Work to modify this trail may not be appropriate because the trail changes as the infrequent users find easier routes along the creek. It should also be noted that a powerhouse tailrace channel would be constructed. In order to ensure that the powerhouse would not be impacted by potential flood, it should be located 200 feet or more from the existing Delta Creek channel. The tailrace will be low gradient in order to use as much of the available head as possible for power generation. This low gradient constant water supply channel could be constructed for fish habitat as mitigation for modifications to Delta Creek. Division_ of Governmental Coordination (DGC) If the project requires a federal permit or permits from more than one state agency, the Division of Governmental Coordination will oversee coastal consistency review process to determine whether the project complies with the State and District Coastal Management Programs. 07073.0o3:N:8:D10 57 For this analysis of the proposed hydroelectric project, no costs for mitigation are included. These costs are undetermined because the type and extent of mitigation is not known. 07073.003:1:8;I)lo 58 8.2 LOCAL REQUCREMENTS The Aleutians East Borough (AEB) Coastal District Coordinator must determine whether the proposed project is consistent with the Borough's federally -approved Coastal Management Plan. The proposed project appears consistent with the AEB Coastal Management Plan; it does not affect the historic or optimal productivity of fish and wildlife populations important for commercial and subsistence use, limit other industrial or infrastructure development, limit recreation, or affect any known cultural resources. Moreover, the proposed project appears to meet the AEB goal of developing cost-effective renewable energy systems that do not adversely affect fish and wildlife populations and habitats (Aleutians East Coastal Resource Service Area Conceptually Approved Coastal Management Plan, July 1985). 8.3 RIGHTS -OF -WAY Federal "Any party wishing to use land or facilities of any National Wildlife Refuge for purposes other than those designated by the manager -in -charge and published in the Federal Register must obtain a Special Use Permit from the U.S. Fish and Wildlife Service. This permit may authorize such activities as right-of-ways; easements for pipelines, roads, utilities, structures, and research projects; and entry for geological reconnaissance or similar projects, filming and so forth. Note that all lands that were part of a National Wildlife Refuge before the passage of the Alaska Native Claims Settlement Act and have since been selected and conveyed to a Native corporation will remain under the rules and regulations of the refuge (13)". It is not clear what ! permits or right-of-way may be required because of the wildlife refuge jurisdiction over these } creeks. State , The proposed project would require a right-of-way from the Alaska Department of Natural Resources (ADNR) for placement of the transmission cable across state tidelands and submerged lands if it were placed in or across King Cove Lagoon. Trenching of the buried transmission line within Alaska Department of Transportation and Public Facilities road right-of-way will require a permit from that agency to do so. Local The transmission cable route from the power house to the power distribution point in town might require a right-of-way from the City. 07073.003:N:8:v10 59 Private "The proposed dam and penstock sites are on lands owned by King Cove Native Corporation. The diversion weir, borrow site, and penstock locations at Delta Creek and the road proposed for construction from the airport to the powerhouse and on up to the diversion weirs are entirely on lands conveyed to the King Cove Village Corporation as part of their entitlement under the Alaska Native Claims Settlement Act (ANCSA), Public Law 92-203. The existing road from the airport to King Cove and the proposed transmission line to King Cove are also within the King Cove Village Corporation property boundary. The subsurface estate has been interim conveyed to the regional Native corporation, Aleut Corporation, for all of the lands in the project area for which King Cove Village Corporation has the surface rights." (13). The project would be on Corporation lands and would require rights -of -way from the Corporation. Costs associated with these right-of-way and permits, if any, have not been incorporated into project costs. If routed across private lands, the transmission cable will require rights -of -way. The cable could cross the parcel occupied by Peter Pan Seafoods or the adjoining tidelands, both privately owned or leased. In town, the cable may have to cross private lands, including residential lots, depending on the selected route. 8.4 PROJECT SCHEDULE After a decision to construct, the following would be required to bring this project on-line: 1) obtain required permits and licenses; 2) design power project; 3) award contract and construct project; and, 4) commission and debug hydroelectric plant. The permitting process would take several months to a year to complete, as agency meetings would be required. This process could run concurrently with project design and construction. Turbines for hydroelectric projects are typically individually manufactured for a specific project. Conversations with turbine manufacturers as part of this study and information gathered as part of previous studies (13) indicated that manufacture and delivery to Seattle of a selected turbine and generator would take approximately one year. An additional six months would be required for development of turbine specifications, bidding, and award of contracts. The turbine could be purchased by the City of King Cove or AEA to decrease project development time by several months. The equipment could be supplied to the contractor constructing the project. Although this is frequently done, the City of King Cove or AEA could be liable for change orders if delivery is delayed, or if the system is nonfunctional. The liability issue should be addresses prior to making the decision to prepurchase a turbine. 07073.003:N:8,n10 60 Design and preparation of bidding documents for this project should take approximately ten months. Bidding and award of the construction contract should take approximately four additional months. In estimating construction time it is assumed the contractor would begin work at Delta Creek in early summer; May or June. In order to do this the contractor would need to order materials (except the turbine, see above) in February or early March. Therefore, contracts should be awarded in January. if construction could begin in May or early June, the major items of construction should be completed by October, if there are no unexpected delays. The entire process from award to finish of construction would take approximately one year. Hydroelectric projects need a commissioning and debugging period, as do all major mechanical construction projects, before they can supply firm power. This process has been estimated to take three months (13). Assuming the permitting and design process begins in June, 1991, and the turbine is supplied by the construction contractor, firm power could be available from the project by mid -March, 1994. 07073.003A:8:niu 61 9.0 RECOMMENDATIONS Recommendation of a project depends greatly upon the load option selected, This is a political - economic decision that is outside the scope of this report. On a technical basis, Delta Creek hydroelectric has many advantages. At the present time, the City of King Cove, by itself, does have a large enough load to make a hydroelectric project feasible. When the load increases, or the price of fuel rises, a City -only hydroelectric project would become more feasible. Diesel electric generation will always be required, because the City load is nearly constant over the year while hydroelectric generation varies with flow regime, During low flow periods (January to April at least) supplemental electrical generation would be required. A project constructed with guaranteed power sales to Peter Pan Seafoods might decrease costs of power for the City and Peter Pan. Peter Pan might only wish to buy power for specific processing seasons, such as salmon. In other seasons, Peter Pan might wish to rely on their diesel powe,rplant. The guarantee of potential power sales to Peter Pan during specific times where excess hydroelectric generation is available should be investigated. The construction costs and power generation potential estimated in this report are believed to be conservative. Construction costs could be reduced by several factors, which have been presented in previous sections. The economic analysis shows a 700 kW hydroelectric project serving the City only or the City and Peter Pan is feasible at this time. Both options would have diesel versus hydroelectric cost - to -cost ratios greater than one (1.0). For either option the City and Peter Pan would have to maintain standby and peaking diesel capacity. Hydroelectric generation could, for the economic analysis period, provide nearly all the City's demands and substantial amounts of Peter Pan's demands. As the project economic analysis indicates, a hydroelectric project is feasible, This study recommends the environmental and permitting issues noted in Section S be thoroughly investigated through meeting with permitting agencies and discussing the project in detail, Once these issues are resolved, project design and implementation should begin. 07073.003AA.D 10 62 10.0 BIBLIOGRAPHY 1. Alaska Department of Community and Regional Affairs, Division of Bottomfishing, City of King Cove Community Comprehensive Plan, January 1981. Prepared for the citizens of King Cove. 2. Alaska Department of Natural Resources, Division of Geological and Geophysical Surveys, A Geotechnical Investigation of the Proposed King Cove Hydroelectric Weir Site on Delta Creek, Alaska, September 1984. Final report to the State of Alaska Power Authority and Department of Commerce and Economic Development. 3. Alaska Power Authority, King Cove Hydroelectric Feasibility Study, July 1988. 4. CH2M Hill, Preliminary Technology Profiles Reconnaissance of Energy Requirements and Energy Alternatives for Kodiak Island Villages and Sand Point and King Cove, December 1980. 5. CH2M Hill, Reconnaissance Study of Energy Requirements and Alternatives for Akhiok Kin Cove, Larsen Bay, Old Harbor, Ouzinkie, Sand Point, June 1981. Prepared for the Alaska Power Authority_ 6. CH2M Hill, Summary Reconnaissance Study of Energy Requirements and Alternatives for King Cove, July 1981. Prepared for the Alaska Power Authority. 7. DOWL Engineers, King Cove Hydro Project, Miscellaneous Topographic Mapping, 1981. 8. DOWL Engineers, King Cove Hydroelectric Project Feasibility Study, January 1983. "A Report on Continuous Field investigations of Delta Creek Relative to Aquatic Biology and Hydrology". Prepared for the Alaska Power Authority. 9. DOWL Engineers, King Cove Hydroelectric Project Feasibility Study, Continuous Field Investigations of Delta Creek Aquatic Biology and Hydr&gy, May 1984. Prepared for the Alaska Power Authority, 10. DOWL Engineers, Feasibility Study for King Cove Hydroelectric Project Supplemental Data Report:_ Hydrology, May 1985..Prepared for Alaska Power Authority. 11. DOWL Engineers, Preliminary Stream Flow Records October 1985 Through January 1986, February 1986, Prepared for the Alaska Power Authority. 12. DOWL Engineers, Stream Flow Records January 1986 through April 1986, Delta Creek Near King Cove, September 1986. 07073,003:NA: U 10 63 13. DOWL Engineers, in association with Tudor Engineering Company and Dryden and LaRue, Financial Analysis for King Cove H, dry oelectric Project, May 1984. Prepared for the Alaska Power Authority. 14, DOWL Engineers, in association with Tudor Engineering Company and Dryden and LaRue, Feasibility Study for King Cove Hydroelectric Project, Volume II Draft Report, February 1982. Prepare for the Alaska Power Authority. 15. Ebasco Services Incorporated, Regional Inventory and Reconnaissance Stud,for Small Hydropower Project, Aleutian Islands, Alaska Peninsula, Kodiak Island, Alaska, Volume II Community Hydropower Reports, October I980, Prepared for the U.S. Army Corps of Engineers, Alaska District. 16. Fryer/Pressely Engineering, Inc., Gambell Waste Heat Recovery Report and Concept Design, May 1, 1990. Prepared for the Alaska Energy Authority. 17. Gemperline, Eugene, J., M. ASCE, Considerations in the Design and Operation of Hydro Power Intakes Cold Re ions Hydrology and Hydraulics, 1990, pgs. 157-556. A State of the Practice prepared by the Technical Council on Cold Regions Engineering of the American Society of Civil Engincers. Edited by William L. Ryan and Randy D. Crissman. 18. HDR/OTT Engineering, Inc, in association with Dryden and LaRue, Inc, Akutan Hydroelectric I~easibilitkStudy, June 1990. 19. Henningh, Gary, King Cove Manager, Personal Communication, 1990. 20. King Cove, Alaska, Discharge Measurements, Jame 1985 field trip. 21. Ott Water Engineers, Inc., Hydropower Design Manual, January 1983. 22. Reconnaissance Study of Energy Requirements and Alternatives for Akhiok, King Cove, Larsen Bay, Old Harbor, Ouzinkie, Sand Point: Findings and Recommendations, May 1981. 23. R.W. Retherford Associates International Engineering Company, Inc., Ram Creek Potential at King Cove for Alaska Power Authority, March 1980. APPENDICES Table 1 lists the total yearly production, maximum capacity, and power factor for 32-inch, 34- inch, and 36-inch steel pipe and 5 to 50 cfs turbine range. TABLE A-1 PENSTOCK SIZE SELECTION Pipe Size (inches) Total Yearly Production (MEGAWATT-HRS) Maximum Capacity (kW) Plant Factor Average Head Loss 32 3 940 72I 0.69 12 % 34 4100 775 0.64 8 % 36 4210 812 0.65 6 % Selection of pipe size will be based upon the economic of power loss vs- pipe cost. Typically ten percent is considered a reasonable trade off. APPENDIX 2 DETAILED COST ESTIMATE GENERAL This appendix presents the method and assumptions used to estimate the construction costs of the selected hydropower options. Following this methodology are tables itemizing the major costs. These tables are arranged with a summary sheet at the beginning, showing the cost of each major task, followed by supporting tables itemizing those task costs. All costs are based on 1990 dollars. METHODOLOGY In order to produce accurate cost estimates, a structured cost estimating method was established. The development of this method was based on a task breakdown of the total project_ Mobilization &. Logistics, Diversion Structures, Penstock, etc. (see summary sheet). A supporting table for each task was developed, which includes a major cost breakdown for that particular task. The cost estimating method was then to price all materials FOB Seattle, barge the materials and equipment to King Cove, truck the materials & equipment to the site, add the labor, equipment and camp support costs to construct the project. These costs were then compared to previous report estimates. MATERIALS The preliminary design and layout of facilities was used to estimate the quantities of materials needed for each task. These materials were then priced, FOB Seattle, using supplier's information and comparing the costs to previous studies. For any shop fabricated materials, a shop time was estimated then multiplied by a shop labor rate. FREIGHT Freight costs for the materials Iist was estimated using 1990 barging rates from Seattle to King Cove. The weight and size of the materials was determined using supplier's and previous report information. A spring delivery date to Seattle was assumed. Trucking from King Cove to the construction site is based on the labor and equipment crew method explained below. LABOR AND EQUIPMENT Material and freight costs are fairly straightforward and fixed. However, labor and equipment costs in "Bush" Alaska are very sensitive to existing conditions. In order to estimate these costs accurately a labor and equipment crew breakdown was used, instead of a unit price per task. Four construction crews were developed. Each crew is assigned to a certain operation, the Diversion Crew will build the diversion structures, the Powerhouse Crew will work on the powerhouse, etc. These crews consist of selected laborers and equipment necessary to perform the intended operation. The labor costs are based on the Davis Bacon Wages (including overhead) and a 60-hour week. The equipment costs are based on equipment rental rates for a month plus overhead and maintenance, These labor and equipment rates were then reduced to cost per day and then summed to calculate a crew cost per day for actual operation. To find the actual cost for labor and equipment on a given construction phase, the estimated days of construction is multiplied by the corresponding crew cost per day. The primary assumption made here is the estimation of the length of time required for a crew to complete a construction phase, which were based on previous studies and construction experience in King Cove. CAMP COSTS In order to compensate for crew down -time, a camp cost estimate was developed. This cost estimate was calculated two different ways and the results compared for a final determination of an estimate. The main assumption was an average of 14 men camp for five months. The two methods of calculation were: 1) Use of previous report cost and inflated to 1990 dollars, which yielded $200/person/day. 2) Two camp cooks at $587/day (Davis Bacon Wages) and supplies plus food at $150/camp day, which yielded $192/person/day GENERAL SUPERVISION The general supervision cost is based on the labor cost and expenses for someone to oversee the project. TRANSMISSION LINE The only exception to the stated cost estimating method is the cost estimate of the transmission line. Since this task will probably be contracted out to a specialty contractor, construction costs were based on information from two different experienced Alaskan contractors specializing in transmission line construction. The materials are fixed cost, however, trenching is dependent upon the soil characteristics. The trenching costs were based on geology reports and are the average of the two contractors estimated costs. TOTAL PROJECT COSTS The total project cost includes the following costs, based as a percentage of the sum of materials, labor, and equipment costs: administration (3 %), engineering (11 %), construction management (7%) and contingencies (20%). The total project cost does not include permitting costs, any mitigation costs, or cost to do any indepth design studies. These studies may include additional sediment load work, and flow recording of each tributary. Appendix XI Table 1 AEA - King Cove Hydropower Summary Sheet Component Days Labor Equip. Mobilization & Logistics 225 $89,320 $23,439 Diversion Structures - (Clear 62 $213,693 $49,011 Water & Glacial Tributaries) Penstock 66 $176,496 $286,880 Powerhouse & Tailrace 21 $63,551 $59,056 Transmission Line 60 $521,400 $0 Total 434 $1,064,460 $418,386 Construction Subtotal Total Weeks Adminstration (3%) Engineering (11%) Construction Management (7%) Contingency (20%) Administrative Subtotal TOTAL COST USE $4,033,016 72 $120,990 $443,632 $282,311 $ 806,603 $1,653,537 $5,686,553 (1990 Dollars) $5,687,000 (1990 Dollars) (Two 35OkW Turbines & Generator) Material Total $767,855 $81,331 5416,507 $1,036,757 $247,720 52,550,170 $880,614 $344,036 $879,883 $1,159,363 $769,120 $4,033,016 Table 1 Page 1 Appendix II Table 1 AEA - King Cove Hydropower (Two 350kW Turbines & Generator) Mobilization & Logistics Item Crew Days Labor Equip. General Supervision 210 $66,000 $0 Freight 0 $0 $0 Trucking Trucking 15 $23,320 $23,439 Camp Costs 0 $0 $0 Misc. Standby Equip. 0 $0 $0 Materials Profit MOB. TOTAL 225 $89,320 $23,439 Material Total Comments $0 $66,000 $261,230 $261,230 From Seattle to King Cove (includes equip. return to Seattle) $0 $46,759 From dock to construction site $425,600 $425,600 Lump Sum based on daily camp costs $11,220 $11,220 3% of Freight, Trucking and General Supervision $69,805 $69,805 10% of materials $767,855 $880,614 Table 1 Page 2 Appendix II Table I AEA - King Cove Hydropower (Two 350kW Turbines & Generator) Diversion Structures (Clear Water & Glacial 'Tributaries) Item Crew Days Labor Equip. Material Total Comments Clear Water Tributary 6' High Sheet Pile Dam: Sheet Piling Diversion 15 $51,700 $11,858 $23,600 $87,158 20' Sections Concrete Diversion 15 $51,700 $11,858 $8,900 $72,458 Riprap Diversion 1 $3,447 $791 $o S4,237 Sluice Gate Diversion 1 $3,447 $791 S300 $4,537 Misc. Materials 0 $o $0 $1,224 $1,224 3% of Materials Intake Structure: Barrel Screen Diversion 2 S6,893 $1,581 $8,000 $16,474 Subtotal 34 $117,187 $26,877 $42,024 $186,088 Glacial Tributary Weir: Sheet Piling Diversion 10 $34,467 $7,905 $12,600 $54,972 20' Sections Concrete Diversion 10 $34,467 $7,905 $4,444 $46,816 Pill Diversion 2 $6,893 $1,581 $0 $8,474 Boulders (Riprap) Diversion 1 $3,447 $791 $0 $4,237 Sluice Gate Diversion 1 $3,447 $791 $300 $4,537 Iron Boulder Deflector 0 $0 $0 $800 $800 Prefaberacated steel 'H' Piling Diversion 2 $6,893 $1,581 $840 $9,314 Misc. Steel 0 $0 $0 $930 $930 3% of Materials Intake Structure: Screen Diversion 1 $3,447 $791 $11,200 $15,437 Box (steel) Diversion 1 $3,447 $791 $800 $5,037 Subtotal 28 $96,507 $22,134 $31,914 $150,554 Materials Profit $7,394 $7,394 10% of materials DIVERSION TOTAL 62 $213,693 $49,011 $81,331 $344,036 Table 1 Page 3 Appendix 1I Table 1 AEA - King Cove Hydropower (Two 350kW Turbines & Generator) Penstock Item Crew Days Labor Equip. Material Total Comments Penstock 24" steel pipe Earthwork 2 $5,955 $9,679 $8,450 $24,083 Clear Water to Connection (250') 30" steel pipe Earthwork 2 $5,955 $9,679 $8,450 $24,083 Glacial Fork to Connection (250') 32" steel pipe Earthwork 42 $105,040 $170,734 $204,000 $479,774 Connnection to Powerhouse (6000') Trestle For creek crossing Steel Earthwork 2 $5,955 $9,679 $1,200 $16,833 Concrete Earthwork 4 $11,909 $19,358 $12,800 $44,067 Trestle foundation & Anchor blocks Misc_ Appurtances 0 $0 $0 $11,745 $11,745 5% of mat. costs, bedding not included Screened Bedding 0 $0 $0 $46,000 $46,000 Classified Fill ($10/C.Y.) Subtotal 52 $134,814 $219,128 $292,645 $646,587 Road Construction 1) 1/2 mile Access Rd. Earthwork 14 $41,683 $67,752 $0 $109,434 Airport to Powerhouse Classified Fill 0 $0 $0 $21,500 $21,500 Fill 0 $0 $0 $19,165 $19,165 Culverts 0 $0 $0 $12,000 $12,000 6 culverts @ $2,000 ea. 2) Penstock Rd, (6,000 FT.) built at the same time as the penstock Fill 0 $0 $0 $9,333 $9,333 6" minus road surface Culverts 0 $0 $0 $24,000 $24,000 12 culverts @ $2,000 ea. Subtotal 14 $41,683 $67,752 $85,998 $195,432 Materials Profit $37,864 $37,864 10% of materials PENSTOCK TOTAL 66 $176,496 $286,880 $416,507 $879,883 Table 1 Page 4 Appendix 11 Table 1 AEA - King Cove Hydropower Powerhouse & Tailrace Item PREFAB. METAL BLDG. HVAC Lighting Concrete Floor Earthwork Erection. Subtotal TURBINE & GENERATOR Installation Mechanical Electrical Start Up Turbine & Gen. Subtotal Station Auxiliary, City of King Cove Power Plant New Control Panel Metalclad Switchgear Installation King Cove Junction Metalclad Switchgear Installation. System Telemetry Misc. Gen. Support Subtotal Materials Profit POWERHOUSE TOTAL (Two 350kW Turbines & Generator) Crew Days Labor Equip. Material Total Comments 0 $0 $0 $20,500 $20,500 1,750 SF, insulated Powerhouse 1 $3,051 $1,799 $35,000 $39,849 Powerhouse 1 $3,051 $1,799 $14,000 $18,849 Earthwork 3 $8,932 $14,518 $103,700 $127,150 Earthwork 4 $11,909 $19,358 $0 $31,267 Includes site preperation, tailrace Powerhouse 4 $12,203 $7,194 $0 $19,397 13 $39,145 $44,667 $173,200 $257,013 0 $0 $0 $458,500 $458,500 Two 350kW Turbines and generators Powerhouse 2 $6,101 $3,597 $0 Powerhouse 2 $6,101 $3,597 $0 Powerhouse 2 $6,101 $3,597 $0 6 $18,304 $10,792 $458,500 Powerhouse 2 $6,101 $3,597 $90,000 $9,699 $9,699 $9,699 $487,596 $99,699 Includes Control & Protection, Switchboard Equ & Grounding System 0 $0 $0 $24,000 $24,000 0 $0 $0 $52,000 $52,000 0 $0 $0 $17,000 $17,000 0 $0 $0 $87,000 $87,000 0 $0 $0 $40,806 $40,806 3% of materials 2 $6,101 $3,597 $310,806 $320,505 $94,251 $94,251 10% of materials 21 $63,551 $59,056 $1,036,757 $1,159,363 Table 1 Page 5 Appendix II Table 1 AEA - King Cove Hydropower (Two 350kW Turbines & Generator) Transmission Line Item Transmission Line Cable Trench Excavation 4.5 miles (Gravels) 0.5 miles (Rock) Materials Profit TRAM TOTAL Crew Days Labor Equip. Materia Total Comments 0 0 $0 $0 $225,200 $225,200 Standard URD, 3 phase, 3o cable Includes backfill 0 0 $415,800 $0 $0 $415,800 0 0 $105,600 $0 $0 $105,600 $22,520 $22,520 10% of materials 0 60 $521,400 $0 $247,720 $769,120 Specialty Contractor Bid Item Table 1 Page 6 Appendix II Table 2 AEA - King Cove Hydropower (One 700kW Turbine & Generator) Summary Sheet Construction Days Labor Equip. Material Total Mobilization & Logistics 225 S89,320 $23,439 $767,855 $880,614 Diversion Structures - (Clear 62 $213,693 $49,011 $81,331 $344,036 Water & Glacial Tributaries) Penstock 66 $176,496 $286,880 $416,507 $879,883 Powerhouse & Tailrace 16 $48,517 $40,941 $845,545 $935,003 Transmission Line 60 $521,400 $0 S247,720 $769,120 Total 429 $1,049,427 $400,270 $2,358,958 $3,808,656 Subtotal $3,808,656 Total Weeks 72 Adminstration (3%) $114,260 Engineering (11%) $418,952 Construction Management (7%) $266,606 Contingency (20%) $761,731 TOTAL COST $5,370,204 (1990 Dollars) USE $5,370,000 (1990 Dollars) Table 2 Page 1 Appendix II Table 2 AEA - King Cove Hydropower (One 700kW Turbine & Generator) Mobilization & Logistics Item Crew Days Labor Equip. Material Total Comments General Supervision 210 $66,000 $0 $0 $66,000 Freight 0 $o $0 $261,230 $261,230 From Seattle to King Cove {includes equip. return to Seattl Trucking Trucking 15 $23,320 $23,439 $0 $46,759 From clock to construction site Camp Costs 0 $0 $Q $425,600 $425,600 Lump Sum based on daily camp costs Misc. Standby Equip. 0 $0 $0 $11,220 $11,220 3% of Freight, Trucking and General Supervision Materials Profit $69,805 $69,805 10% of materials MOB. TOTAL 225 $89,320 $23,439 $767,855 $880,614 Table 2 Page 2 Appendix 11 Table 2 AEA - King Cove Hydropower (One 700kW Turbine & Generator) Diversion Structures (Clear Water & Glacial Tributaries) Item Crew Days Labor Equip. Material Total Comments Clear Water Tributary 6' High Sheet Pile Dam: Sheet Piling Diversion 15 $51,700 $11,858 $23,600 $87,158 20' Sections Concrete Diversion 15 $51,700 $111858 $8,900 $72,458 Riprap Diversion 1 $3,447 $791 $0 $4,237 Sluice Gate Diversion 1 $3,447 $791 $300 $4,537 Misc. Materials 0 $0 $0 $1,224 $1,224 3%n of Materials Intake Structurc: Barrel Screen Diversion 2 $6,893 $1,581 $8,000 S16,474 Subtotal 34 $117,187 $26,877 $42,024 S186,088 Glacial Tributary Weir. - Sheet Piling Diversion 10 $34,467 $7,905 $12,600 $54,972 20' Sections Concrete Diversion 10 $34,467 $7,905 $4,444 $46,816 Fill Diversion 2 $6,893 $1,581 $0 $8,474 Boulders (Riprap) Diversion 1 $3,447 $791 $0 $4,237 Sluice Gate Diversion 1 $3,447 $791 $300 $4,537 Iron Boulder Deflector 0 $0 $0 $800 $800 Prefaberacated steel 'H' Piling Diversion 2 $6,893 $1,581 $840 $9,314 Misc. Steel 0 $0 $0 $930 $930 3% of Materials Intake Structure: Screen Diversion 1 $3,447 $791 $11,200 $15,437 Box (steel) Diversion 1 $3,447 $791 $800 $5,037 Subtotal 28 $96,507 $22,134 $31,914 $150,554 Materials Profit $7,394 $7,394 10% of materials DIVERSION TOTAL 62 $213,693 $49,011 $81,331 $344,036 Table 2 Page 3 Appendix II Table 2 AEA - King Cove Hydropower (Two 350kW Turbines & Generator) Penstock Item Crew Days Labor Equip. Material Total Comments Penstock 24" steel pipe Earthwork 2 $5,955 $9,679 $8,450 $24,083 Clear Water to Connection (2501) 30" steel pipe Earthwork 2 $5,955 $9,679 $8,450 $24,083 Glacial Fork to Connection (250') 32" steel pipe Earthwork 42 $105,040 $170,734 $204,000 $479,774 Connnection to Powerhouse (6000') Trestle For creek crossing Steel Earthwork 2 $5,955 $9,679 $1,200 $16,833 Concrete Earthwork 4 $11,909 $19,358 $12,800 $44,067 Trestle foundation & Anchor blocks Misc. Appurtances 0 $0 $0 $11,745 $11,745 5% of mat. costs, bedding not included Screened Bedding 0 $0 $0 $46,000 $46,000 Classified Fill ($10/C.Y.) Subtotal 52 $134,814 $219,128 $292,645 $646,587 Road Construction 1) 1/2 mile Access Rd_ Earthwork 14 $41,683 $67,752 $0 $109,434 Airport to Powerhouse Classified Fill 0 $0 $0 $21,500 $21,500 Fill 0 $0 $0 $19,165 $19,165 Culverts 0 $0 $0 $12,000 $12,000 6 culverts @ $2,000 ea. 2) Penstock Rd. (6,000 FT.) built at the same time as the penstock Fill 0 $0 $0 $9,333 $9,333 6" minus road surface Culverts 0 $0 $0 $24,000 $24,000 12 culverts @ $2,000 ea. Subtotal 14 $41,683 $67,752 $85,998 $195,432 Materials Profit $37,864 $37,864 10% of materials PENSTOCK TOTAL 66 $176,496 $286,880 $416,507 $879,883 Table 2 Page 4 Appendix 11 Table 2 AEA - King Cove Hydropower Powerhouse & Tailrace Item PREFAB. METAL BLDG HVAC Lighting Concrete Floor Earthwork Erection Subtotal TURBINE & GENERATOR Installation Mechanical Electrical Start Up Turbin & Gen. Subtotal Station Auxiliary City of King Cove Power Plant New Control Panel Metalclad Switchgear Installation King Cove Junction Metalclad Switchgear Installation System Telemetry Misc. Gen. Support Subtotal Materials Profit POWERHOUSE TOTAL Crew Powerhouse Powerhouse Earthwork Earthwor'; Powerhouse Powerhouse Powerhouse Powerhouse Powerhouse Days 0 z z 2 2 2 8 0 Labor $0 $3,051 $3,051 $5,955 $5,955 $6,101 $24,112 $0 2 $6,101 2 $6,101 2 $6,101 6 $18,304 2 $6,101 (Otte 700kW Turbine & Generator) Equip. $0 $1,799 $1,799 $9,679 $9,679 $3,597 $26,552 $0 $3,597 $3,597 $3,597 $10,792 $3,597 Material Total Comments $14,350 $14,350 1,225 SF, insulated $24,500 $29,349 $9,800 $14,649 $72,590 $88,223 $0 $15,633 Includes site preperation, tailrace $0 $9,699 $121,240 $171,904 $345,000 $345,000 One 700kW Turbine and generator $0 $9,699 s0 $9,699 $0 $9,699 $345,000 $374,096 $90,000 $99,699 Includes Control & Protection, Switchboard ERu & Grounding System 0 $0 $0 $24,000 $24,000 0 $0 $0 $52,000 $52,000 0 $0 $0 $17,000 $17,000 0 $0 $0 $87,000 $87,000 0 $0 $0 $32,437 $32,437 3% of materials 2 $6,101 $3,597 $302,437 $312,136 $76,868 $76,868 10% of materials 16 $48,517 $40,941 $845,545 $935,003 Table 2 Page 5 Appendix 11 Table 2 AEA - King Cove Hydropower Transmission Line Item Transmission Line Cable Trench Excavation 4.5 miles (Gravels) 0.5 miles (Rock) Materials Profit TRAN.TOTAL (One 700kW Turbine & Generator) Crew Days Labor Equip. Material Total Comments 0 0 $0 $0 $225,200 $225,200 Standard URD, 3 phase, 3o cable Includes backfill 0 0 5415,800 $0 $0 $415,800 0 0 $105,600 $0 $0 $105,600 $22,520 $22,520 1.0% of materials 0 60 $521,400 SO $247,720 $769,120 Specialty Contractor Bid Item Table 2 Page 6 Appendix II Table 3 AEA - King Cove Hydropower Crew Definitions Labor Casual Laborcr Foreman Equip. Operator Welder Electrician Mech. HVAC Total Labor $/Day Equipment CAT 980 JD 350 Dyn 190 CAT D-6 CAT D-8 10 CY Compactor Truck Total EQ $/Day Total $/Day (Support Data For Tables 1 & 2) CREW NAME $/Day Powerhouse Earthwork $367 3 3 $513 1 1 $455 1 3 $469 $513 1 $469 1 $3,051 $2,977 $1,435 $236 $555 $804 $1,546 $855 $200 $128 1 1 1 $1,799 $4,849 1 1 1 1 1 $4,839 $7,817 Diversion 3 1 3 1 $3,447 1 1 $791 $4,237 Trucking 3 1 $1,555 1 1 $1,563 $3,117 Table 3 Page 1 Appendix II Table 3 AEA - King Cove Hydropower Labor Rates $/HR Raw Overtime Category Rate Rate (Support Data For Tables 1 & 2) `Overhead & Profit Per Day $/Day Casual Laborer $25.00 $37.50 $75.00 $366.67 Foreman $35.00 $52.50 $105.00 $513.33 Equip. Operator $31.00 $46.50 $93.00 $454.67 Welder $32.00 $48.00 $96.00 $469.33 Electrician $35.00 $52.50 $105.00 $513,33 Mech. HVAC $32.00 $48.00 $96.00 $469.33 Average $/Day assumes 60 hr week and over time, Davis -Bacon wages * Additional 30% of straight time pay to account for overhead costs and profit. Overhead includes bond, property damage liability insurance, unemployment insurance contributions, social security and other taxes. Table 3 Page 2 Appendix 11 Table 3 AEA - King Cove Hydropower Equipment Rates Name Type $/HR (Support Data For Tables 1 & 2) $/Day CAT980 FE Loader $143.45 $1,434.50 ]D 350 Dozer $23.60 $236.00 Dyn 190 Backhoe $55.45 $554.50 CAT D-6 Dozer $80.39 $803.90 CAT D-8 Dozer $154.62 $1,546.20 10 CY Dump S85.48 $854.80 Compactor Self Propelled $20.00 $200.00 Truck Fiat Bed $12.81 $128.10 Average $/Day assumes a 10 hr day Table 3 Page 3