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HomeMy WebLinkAboutBurro Creek Feasibility Study 2011BURRO CREEK HYDROELECTRIC FEASIBILITY STUDY FINAL REPORT NOVEMBER 2011 Prepared For BURRO CREEK HOLDINGS, LLC P.O. Box271 SKAGWAY, ALASKA 99840 BURRO CREEK HYDROELECTRIC FEASIBILITY STUDY FINAL REPORT NOVEMBER 2011 PREPARED FOR: BURRO CREEK HOLDINGS, LLC PO BOX271 SKAGWAY,AK 99840 PREPARED BY: polarconsult alaska, inc. 1503 West 33rd Avenue, Suite 310 Anchorage, AK 99503 AND: Southeast Strategies 900 1st Street, Suite 12 Douglas, AK 99824 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study EXECUTIVE SUMMARY Burro Creek Holdings, LLC (BCH) received a grant from the Alaska Energy Authority in 2009 to perform a feasibility study of upgrading the existing 15-kilowatt (kW) run-of-river hydroelectric system on Burro Creek. In 2010, BCH contracted Southeast Strategies and Polarconsult Alaska, Inc. to prepare a feasibility study to evaluate hydroelectric upgrade options, develop estimated upgrade costs, and evaluate the market for the project's energy in the Upper Lynn Canal region. This report presents the findings of the feasibility study. Hydropower Resource Because Burro Creek is across Lynn Canal from Skagway, the existing project produces insufficient energy to justify an interconnection with Skagway. Instead, a range of new larger run-of-river projects at Burro Creek were investigated in this study. Storage projects were also considered, but the topography of the Burro Creek valley is not suitable for cost-effective construction of reservoirs of significant capacity for the projects considered. The run-of-river configurations considered in this study range in installed capacity from 430 kilowatts up to 7.3 megawatts (MW). This range is developed by considering different design flows and different elevations for diversion sites on Burro Creek. The figure below shows the location of BCH property relative to Skagway and the diversion sites considered in this study. Project configurations with a capacity of up to 2.2 MW are located wholly on the BCH property. Projects with larger capacities are partially located on Federal land upstream of BCH property. All project configurations require a submarine cable from Burro Creek to Skagway to deliver power to potential markets. The mostly fixed cost of this submarine cable makes the smaller project configurations less competitive than larger configurations since the larger projects can spread this fixed cable cost over increased energy sales. This enables the larger project configurations to be profitable at a lower $/kWh sales price. Market For Energy The market for energy from a Burro Creek project is not well defined at this time. The amount and seasonal availability of energy from Burro Creek does not mesh well with the needs of November 2011-Final Report i Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Polarconsult Alaska, Inc. G existing markets in the Upper Lynn Canal region. Existing markets include Haines and Skagway, served by Alaska Power Company (APC) (a subsidiary of Alaska Power and Telephone, Inc. (AP&T)), and the Chilkat Valley communities served by Inside Passage Electric Cooperative, Inc. (IPEC). These are summarized below. ~ Possible sales of up to 240,000 kWh annually to IPEC for resale to customers in Klukwan and the Chilkat Valley near Haines. ~ Possible sales up to 500,000 kWh annually to APC to displace energy APC currently generates with diesel fuel. Most of these sales would occur in late winter, when APC' s hydroelectric facilities are not operating, or are operating at reduced capacity. ~ The Regulatory Commission of Alaska allows independent power producers such as BCH to sell power to businesses held in common without the power producer having to become a certified utility. Businesses held in common currently use about 110,000 kWh of power annually. By themselves, these existing markets are too small to justify a new project at Burro Creek. Projected growth trends in these markets are slightly negative, and thus not favorable for development of Burro Creek. However, these markets may prove viable in combination with the potential market opportunities discussed below, and warrant future consideration. Three potential future market opportunities were identified that could be viable market(s) for Burro Creek energy. These markets will depend on future developments and warrant continued attention: ~ Sales to Yukon Territory. The Yukon Territory is experiencing a boom in mining activity, and the crown utility (Yukon Energy) is actively seeking additional capacity to meet mining demand. Yukon Energy would consider extending its transmission line to the U.S. border to connect with the Upper Lynn Canal grid if Burro Creek or other hydroelectric projects offer sufficient energy at a suitable price. APC' s existing lines end approximately 7 miles from the border. It appears Burro Creek can meet Yukon Energy's criteria for a line extension. ~ Sales to APC during the summer season if APC develops infrastructure to provide shore power to cruise ships docked in Skagway. This opportunity may be dependant on the development of additional hydroelectric power in the region, as the combined output of Burro Creek and the excess power currently available from APC would not be enough to meet demand from the cruise ships. ~ Sales to APC if the Palmer mining prospect north of Haines is developed. Serving one of these three future markets is considered the best opportunity for a new project at Burro Creek. Development of additional hydropower resources in the region will strongly influence whether demand for the full-year output of Burro Creek power will materialize. Project Feasibility This study identified several project configurations that appear to be compatible with potential future markets in the Upper Lynn Canal region with regard to estimated energy price and November 2011-Final Report ii ( ( t ( ~ ( ~ ( ~ () () () () () ~} ,., .. ., ; ,. ' ,, ,. ' ,, I"'") ,, 0 0 0 0 0 0 0 0 Q 0 0 :l ~ 0 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study energy output. At this time, the preferred project configuration is not known, because it will depend on the need for power from the market and further study to better refine development costs. Table ES-1 summarizes the project configurations that have promising estimated energy prices and may reasonably match future market demand. Details for all project configurations, funding, and market scenarios are presented in Appendix H of this report. Two other major variables will influence the energy sales price from a project at Burro Creek. These variables are (1) the potential use of grant funds and (2) how much of the project's output will be sold. This study considered two grant funding scenarios for all project configurations: no grant funding, and 50% grant funding up to a cap of $8.5 million in grants. This study considered two energy sales scenarios: sale of a project's full output, and sale of only 80% of a project's potential output. These scenarios are presented in Table ES-1. Based on currently available information, a connection to the Canadian power grid, and/or development of the mine north of Haines could provide a year-round market for Burro Creek energy. A combination of existing market opportunities and providing shore power to cruise ships in Skagway could result in only partial-year demand for Burro Creek energy. In market situations where power is not sold directly to APC, Burro Creek would likely have to pay a charge to APC (called a "wheeling" charge) of about $0.02 per kWh for use of APC's electric lines. That wheeling charge is figured into the power sales rates in Table ES-1. Other Proposed Project in the Region Several future hydroelectric projects are under consideration in the Haines/Skagway area. Connelly Lake is a storage facility near Haines with a 10 to 15 MW capacity potential. That project could be completed by 2016. Schubee Lake is a storage facility across Lynn Canal from Haines with a 3 to 5 MW potential capacity, which could be completed by 2019. It is likely that only one of those two facilities will be built. A smaller run-of-river system at Walker Lake near Haines has been considered, but its 1 MW capacity potential may not warrant development. Any of these facilities will help create the additional system capacity needed for APC to develop shoreside electrical connections for cruise ships in Skagway, thus creating a market for Burro Creek power in the summer season. Near Skagway, a 25 to 50 MW potential capacity storage facility at West Creek is being considered, and could be completed by 2018. Plans for this facility include an intertie across the Canadian border to connect to the Canadian power grid. Once an intertie is developed, virtually all the power produced in the Haines/Skagway area could be sold to the Canadian grid. November 2011-Final Report iii Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Polarconsult Alaska, Inc. IS. Table ES-1: Project Configurations, Funding Scenarios, and Sales Scenarios with Lowest Estimated Power Sales Rates Project Configuration 1 1D-70 1D-70 2D-70 2D-70 3D-70 3D-70 1D-110 1D-110 2D-110 2D-110 3D-110 3D-110 Amount of Project Output Sold 2 Full Partial Full Partial Full Partial Full Partial Full Partial Full Partial Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Project Design Flow 70 110 (cubic feet per second) Project Head (feet) 1,130 gross 970 gross 770 gross 1,130 gross 970 gross 770 gross 1,030 net 880 net 710 net 1,030 net 880 net 710 net Penstock Length and Diameter 12,600 feet 10,300 feet 7,600 feet 12,600 feet 10,300 feet 7,600 feet 36-inch 36-inch 36-inch 42-inch 42-inch 42-inch Installed Hydroelectric Capacity 4,400 3,800 3,400 7,300 6,500 5,250 (kilowatts, kW) Estimated Total Capital Cost $17.2 M $13.9 M $11.1 M $21.1 M $16.8 M $13.8 M (2011 $, millions) Expected Annual Energy Sales 17,943 13,981 15,935 12,340 13,127 10,074 20,581 16,672 18,798 15,172 15,915 12,747 (megawatt-hours, MWh) Estimated Energy Sales Price, No $0.151* $0.165 $0.140* $0.152 $0.138* $0.150 $0.159* $0.169 $0.143* $0.149 $0.140* $0.146 Grants ($per kWh) Estimated Energy Sales Price, with Grants for 50% of Development $0.102* $0.102 $0.095* $0.094 $0.0938 $0.093 $0.113* $0.111 $0.097* $0.092 $0.095* $0.090 Cost 3 ($per kWh) Source: Polarconsult Alaska, Inc., October 2011. * The estimated sales price for full sales scenarios includes a $0.02/kWh wheeling charge for use of APC transmission and distribution system to deliver Burro Creek energy to market. 1: The configuration codes such as '3D-70' are defined as: the number (1-5) is the diversion location, the letter (A-D) is the powerhouse site, and the number after the hyphen is the design flow in cubic feet per second. 2: Full sales assumes that all of the net output of the project is sold. Partial sales assumes that all of the net output of the project from April 1st through September 30th (or an equivalent amount of energy distributed throughout the year) is sold. 3: Up to a maximum of $8,500,000 in grant funding. November 2011-Final Report IV Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Pola"onsult Alaska, In<. ~ Recommendations A project at Burro Creek is estimated to take five years to complete once a viable market for the project is secured. The following actions are recommended to continue advancing a hydro project at Burro Creek: :Y Contact the Regulatory Commission of Alaska (RCA) to determine how best to move forward. The RCA governs sales of power in Alaska, and it is important to understand the conditions under which a company can sell power to various customers. In general, an independent power producer such as Burro Creek cannot sell to more than 10 customers or over $50,000 worth of power per year without becoming a certified utility. In addition, RCA generally will not allow two certified utilities within one service area However, the RCA Commissioners have the final say on such projects, and can make exceptions to their regulations as they determine is in the public interest. Appendix F contains the Alaska Statute language that may be pertinent to this project. :Y Continue stream gauging at Burro Creek to characterize the resource potential. :Y Monitor future land management decisions for the BLM land west of Burro Creek to insure the land remains open to hydropower development. :Y Maintain Burro Creek as a generation resource in regional energy planning documents, such as the Southeast Alaska Integrated Resource Plan, currently under development by the Alaska Energy Authority (AEA). :Y Contact Yukon Energy to discuss the possible extension of its power transmission line south to the Upper Lynn Canal system, and a possible power purchase agreement. :Y Contact the developers of the Palmer Mine to monitor the progress of that project, and if and when development is assured, to discuss possible power purchase agreements. :Y Contact APC to discuss the conditions under which they may be willing to purchase wholesale power from BCH. :Y Contact IPEC to discuss a possible power purchase agreement, keeping in mind that other market opportunities may need to exist in order to make this market viable. :Y Contact possible funding sources to identify grants and loan programs that may reduce the cost of energy from the Burro Creek project. November 2011-Final Report v Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Polarconsult Alaska, Inc. TABLE OF CONTENTS 1.0 INTRODUCTION ................................................................................................................................ 1 1.1 PROJECT AUTHORIZATIO;\J AND PURPOSE ........................................................................................... 1 1.2 PROJECT EVALUATION PROCESS .......................................................................................................... 1 1.3 EXISTING HYDROELECTRIC PROJECT AND CURRENT STUDY ................................................................ 1 2.0 COMMUNITY PROFILE ..................................................................................................................... 4 2.1 COMMUNITY OVERVIEW ...................................................................................................................... 4 2.2 EXISTING E;\JERGY SYSTEM ................................................................................................................... 8 3.0 HYDROELECTRIC DEVELOPMENT OPTIONS ........................................................................... 15 3.1 RESOURCE DESCRIPTIO;\J ................................................................................................................... 15 3.2 OVERVIEW OF PROJECT CONFIGURATIONS CONSIDERED ................................................................... 16 3.3 RECOMMENDED PROJECT CONFIGURATIONS ..................................................................................... 16 3.4 ESTIMATED ENERGY GENERATION .................................................................................................... 17 3.5 DESCRIPTION OF PROJECT FEATURES ................................................................................................. 18 4.0 MARKET ANALYSIS AND OPPORTUNITIES ............................................................................. 21 4.1 MARKET FOR POWER .................................................... ································································· .... 21 4.2 PROJECT COST ESTIMATES ................................................................................................................. 23 4.3 POTENTIAL BURRO CREEK BUSINESS OPPORTUNITIES ....................................................................... 23 4.4 OTHER INTANGIBLE PROJECT BENEFITS ............................................................................................. 24 5.0 CONCLUSIONS AND RECOMMENDATIONS ........................................................................... 25 5.1 DEVELOPMENT PLAN & SCHEDULE ................................................................................................... 25 5.2 RECOMME;\JDA TIONS FOR IMPLEMENTATION ..................................................................................... 26 APPENDIX A-MAPS AND FIGURES APPENDIX B-PHOTOGRAPHS APPENDIX C-HYDROLOGY DATA APPENDICES APPENDIX D-RESOURCE DATA AND ANALYSIS APPENDIX E-ENVIRONMENTAL CONSIDERATIONS APPENDIX F-PERMITTING INFORMATION APPENDIX G-TECHNICAL ANALYSIS APPENDIX H-CAPITAL COST ESTIMATES AND FINANCIAL SCENARIOS APPENDIX I -ACRONYMS AND TERMINOLOGY APPENDIX J-1982 REPORT ON ORIGINAL BURRO CREEK HYDROELECTRIC PROJECT "APPROPRIATE TECHNOLOGY REPORT: HYDROELECTRIC SYSTEM AT BURRO CREEK" APPENDIX K-AEA REVIEW COMMENTS, AUTHOR RESPONSES, AND CORRESPONDENCE WITH YUKON ENERGY November 2011-Final Report vi Burro Creek Holdings, LLC Burro Creek Hydroelectric Study LIST OF FIGURES Polarconsult Alaska, Inc. Figure 2-1: Haines/Skagway Moderate Electrical Demand Forecast, 2012 to 2062 ....................... 14 Figure 3-1: Estimated Average Annual Net Output of Project 3D-70 ............................................. 17 Figure 5-1: Project Development Schedule .......................................................................................... 26 Figure A-1: Project Overview and Location Map ............................................................................. A-1 Figure A-2: Potential Diversion Sites and Drainage Basins ............................................................ A-2 Figure A-3: Map of Project Configurations on USS 1560 ................................................................ A-3 Figure A-4: Map of Project Configurations Using Federal Lands ................................................... A-4 Figure A-5: Map of Transmission Routes ........................................................................................... A-5 Photograph B-1: Burro Creek Site from Lynn Canal... ..................................................................... B-1 Photograph B-2: Burro Creek Waterfall, Looking Upstream .......................................................... B-1 Photograph B-3: Burro Creek Gauging Station, Looking Downstream ........................................ B-1 Photograph B-4: Existing Burro Creek Intake, Looking Upstream ................................................ B-2 Photograph B-5: Existing Burro Creek Intake Screening Box ......................................................... B-2 Photograph B-6: Existing Burro Creek Intake ................................................................................... B-2 Photograph B-7: Burro Creek from Skagway .................................................................................... B-3 Photograph B-8: Burro Creek Gauging Station ................................................................................. B-4 Photograph B-9: Typical Terrain and Vegetation in Project Area .................................................. B-5 Photograph B-10: Existing Penstock ................................................................................................... B-5 Photograph B-11: Existing Penstock ................................................................................................... B-6 Photograph B-12: Existing Penstock ................................................................................................... B-6 Photograph B-13: Existing Powerhouse ............................................................................................. B-6 Photograph B-14: Existing Turbine and Generator .......................................................................... B-7 Photograph B-15: Burro Creek at USS 1560 Property Line ............................................................. B-7 Figure C-1: Burro Creek Stage Data ................................................................................................... C-2 Figure C-2: Model Used for Creek Section at Burro Creek ............................................................ C-4 Figure C-3: Burro Creek Stream Gauge Rating Curve ..................................................................... C-4 Figure C-4: Burro Creek Hydrograph ................................................................................................ C-5 Figure C-5: Burro Creek and Taiya River Flow Data and Models ................................................. C-8 Figure C-6: Extended Burro Creek Record Using Taiya River Flow Model.. ............................... C-9 Figure C-7: Daily Flow Statistics for Extended Burro Creek Flow Record ................................. C-10 November 2011-Final Report vii Burro Creek Holdings, LLC Burro Creek Hydroelectric Study LIST OF TABLES Polarconsult Alaska, Inc. Table ES-1: Project Configurations, Funding Scenarios, and Sales Scenarios with Lowest Estimated Power Sales Rates ............................................................................................. .iv Table 2-1: Population of Haines and Skagway, 2000 to 2010 .............................................................. 4 Table 2-2: Employment in Haines and Skagway, 2000 to 2010 ........................................................... 5 Table 2-3: Summer Visitors at Haines and Skagway, 2000 to 2010 .................................................... 6 Table 2-4: Recent Electric System Statistics ......................................................................................... 10 Table 2-5: Changes in Population and Energy Consumption in Haines and Skagway, 2004 to 2010 .......................................................................................................................... 11 Table 2-6: Haines/Skagway Electrical Demand Forecast, 2012 to 2062 ........................................... 13 Table 3-1: Project Configurations Considered .................................................................................... 16 Table 4-1: Comparison of Potential Project Costs and Required Power Prices Projects Over 4 MW in Capacity ...................................................................................................... 24 Table C-1: Burro Creek Flow Measurements .................................................................................... C-2 Table C-2: Manning Equation Parameters for Gauging Station ..................................................... C-3 Table C-3: Creek Sections used to Calculate A and Pat Gauging Stations .................................. C-4 Table C-4: Summary of Hydrology Data for Burro Creek and Nearby Resources ...................... C-6 Table C-5: Burro Creek Flow Model Parameters .............................................................................. C-7 Table D-1: Maximum Probable Floods at Burro Creek .................................................................... D-1 Table G-1: Range of Project Options Considered ............................................................................. G-1 Table G-2: Diversion Site Considerations .......................................................................................... G-2 Table G-3: Powerhouse Site Considerations ..................................................................................... G-6 Table G-4: Expected Plant Capacity Factor for Different Project Configurations ........................ G-7 Table G-5: Average Monthly and Annual Energy Generation of Project Configurations .......... G-9 Table G-6: Estimated Costs for Power Line-Burro Creek to Skagway ...................................... G-10 Table H-1: Cost Estimates and Financial Analysis for Select Project Configurations ................ H-3 Table H-2: Economic Cases for Select Project Configurations ....................................................... H-4 November 2011-Final Report VIII Burro Creek Holdings, LLC Burro Creek Hydroelectric Study November 2011-Final Report Polarconsult Alaska, Inc. IX Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Pola"on,ult Ala>ka, Inc 4 1.0 INTRODUCTION 1.1 PROJECT AUTHORIZATION AND PURPOSE Burro Creek Holdings, LLC (BCH) received a grant from the Alaska Energy Authority in 2009 to perform a feasibility study for an upgrade of the existing run-of-river hydroelectric system. In 2010, BCH contracted Southeast Strategies (SES) and Polarconsult Alaska, Inc. (Polarconsult) to prepare a feasibility study to determine costs of the development and increased operations costs, and whether there was a market for this power in the Skagway area. This feasibility study: ~ Quantifies the hydropower resource at Burro Creek, ~ Identifies the most economical hydropower development at Burro Creek, ~ Provides feasibility-level cost estimates for several hydro project configurations, ~ Evaluates possible markets for power from Burro Creek, and ~ Makes recommendations for future development of Burro Creek's hydropower potential. This report presents the findings of the feasibility study. 1.2 PROJECT EVALUATION PROCESS Resource data for Burro Creek was collected and analyzed to identify several project configurations for further evaluation. The resource data included stream hydrology, site topography, land ownership and related information. Environmental and regulatory factors were also considered in developing these project configurations. Cost estimates were developed for these project configurations, and hypothetical financing and business models were applied in order to estimate energy sales rates for each configuration. Future markets for power were evaluated to determine if there is an opportunity for Burro Creek to supply future demand in the region. The three developing markets described in Section 4.2 were identified. These market scenarios were then further analyzed to identify the amount of project output that could be sold, and the seasonal timing and sales price that would be necessary. These potential developing markets warrant continued attention, as close coordination will be necessary in order to dovetail the development schedules of these potential buyers with the development schedule of Burro Creek. 1.3 EXISTING HYDROELECTRIC PROJECT AND CURRENT STUDY 1.3.1 Existing Hydroelectric Project There is an existing small run-of-river hydroelectric project on Burro Creek which was built in 1982 by Captain Gene Richards, a retired NOAA captain. The project was constructed in part with funds from an Alaska Energy Authority Grant, and was used to support the Richards' homestead and fish hatchery for nearly 20 years. Gene Richards' report entitled "Appropriate Technology Report: Hydroelectric System at Burro Creek" is attached as Appendix J. November 2011-Final Report 1 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study This existing hydro project is suitable for meeting on-site demand at Burro Creek. The existing project includes the following: ? A diversion structure at 235' elevation consisting of a natural rock sill in Burro Creek, a blasted notch in this sill fitted with a 10-inch diameter PVC intake pipe, and a milled log pinned into the apex of the rock sill with l-inch iron bars to create a deeper impoundment. ? An approximately 3-foot by 4-foot by 8-foot timber filter box located approximately 30 feet downstream from the diversion. Raw water from the diversion discharges into the box, passes through a coarse fiberglass screen, and enters the penstock. This box prevents excessive rocks, sticks, or gravel from entering the penstock, and stabilizes water flow into the project. ? A 1,400-foot long 10-inch diameter PVC penstock that conveys water from the intake down to the powerhouse. ? An approximately 12-foot by 12-foot milled-log powerhouse with a finished floor elevation of 32.5 feet that contains the turbine and generation equipment. ? The original turbine equipment, which includes two 2-jet Pelton wheels on a common shaft that drive a 25 kilowatt (kW) alternator via pulleys and belt drive. The second jet on each wheel was blanked off inside the turbine housing during original manufacture of the turbine equipment. This turbine set has the potential to generate 50 kW, although the second jets would need to be installed and the belt drive and alternator would need to be upgraded. This equipment is not currently functional. It is not known when this equipment was last operational, or what measures are needed to place it back into service. ? Newer turbine-generator equipment, consisting of one single-jet home-made Pelton-type wheel driving a 15 kW alternator via a belt drive. The turbine is governed by a Woodard UG-8 mechanical governor, which actuates the jet deflector to regulate frequency and voltage. This turbine-generator installation currently provides Burro Creek with electricity. ? A shallow-burial tailrace pipe that discharges water into Burro Creek just above tidewater. The existing 15-kW hydro project is functional, but has significant deferred maintenance. The diversion pipe and head box is past its useful life and in need of replacement; thrust restraints along the entire penstock are in need of re-tensioning, adjustment, or replacement; and some of the thrust restraints in the powerhouse are in marginal condition. The electrical panel in the powerhouse also appears to be substandard and may warrant upgrade. The existing hydro project is an good example of a small (15 to 50 kW) rural Alaskan hydroelectric project. The siting and construction methods used for this project are excellent example of simple, economical, and appropriate micro hydro development at a remote site. November 2011-Final Report 2 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study However, the existing project is too small to justify export of power from Burro Creek, and is not considered further in this study. 1.3.2 Current Study This feasibility study included the following activities: Y R&M Engineers, Inc. performed an as-built survey of the existing micro hydro project at Burro Creek in the fall of 2009 to identify the head and location of the project on USS 1560. Y Polarconsult visited Burro Creek on December 17 to 18, 2009 to install a stream gauge and measure flow in Burro Creek to collect site-specific hydrology data for this study. Polarconsult also conducted an initial reconnaissance of the lower reaches of Burro Creek on USS 1560. Y Polarconsult conducted additional site investigations at Burro Creek in May 2010 and September 2011. Activities during these visits included limited topographic surveys to determine the available head and location of various intake sites, assessment of terrain and identification of penstock routes and construction requirements, initial assessment of basic environmental conditions in the project area (e.g., presence or absence of wetlands), and additional flow measurements. Y Southeast Strategies visited Burro Creek in August 2011 to review the project site and be familiarized with the project setting and terrain. Y BCH personnel have periodically downloaded and maintained the stream gauge throughout the feasibility study. Y Several potential hydro project configurations on Burro Creek were developed, including cost estimates and financial analysis of each configuration. Y Existing and future potential markets for the energy from Burro Creek were analyzed. Y Recommendations for future efforts at Burro Creek were developed. November 2011 -Final Report 3 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study 2.0 COMMUNITY PROFILE 2.1 COMMUNITY OVERVIEW Polarconsult Alaska, Inc. Burro Creek is located along the shores of Taiya Inlet in Lynn Canal, about two miles southwest of Skagway, in Southeast Alaska. Skagway is located about 90 miles northeast of Juneau in Upper Lynn Canal, and Burro Creek is accessed by boat or helicopter from Skagway. The Upper Lynn Canal communities on the electric grid that will be served by the Burro Creek hydroelectric project include Haines, Klukwan, and Skagway, as well as some outlying areas. The Upper Lynn Canal area has a maritime climate with cool summers and mild winters. Because it is in the rain shadow of nearby mountains, Skagway receives less precipitation than Haines and many communities in the Southeast Alaska region, averaging 26 inches of precipitation per year, which includes 39 inches of snow. Both Haines and Skagway have commercial airports, and are ports of call for the State ferry system. In addition, Skagway is connected by the Klondike Highway to the Alaska Highway, and the North American road system. Haines is also connected to the Alaska Highway via the Haines Highway. Skagway is one of the oldest communities in Alaska, beginning as an access to the Klondike gold region in the late 1880s. It was incorporated as Alaska's first city in 1900, and became a fully consolidated borough in 2004. Haines housed the first permanent military post in Alaska, Fort William H. Seward, built in 1904. It was incorporated as a city in 1910, and formed a borough in 2007. Table 2-1 presents population in both Haines and Skagway between 2000 and 2010. The estimated summer population reflects the influx of summer workers for the tourism season. Table 2-1: Population of Haines and Skagway, 2000 to 2010 Year Skagway Haines Both Summer Annual Percent Change Estimate* Averase 2000 862 2,392 3,254 4,978 3,829 --- ------- 2001 838 2,383 3,221 4,897 3,780 -1.3% ··--------------------·------------------------------------------------------------------------------------------------------------------------.--------- 2002 844 2,373 3,217 4,905 3,780 0.0% --------------------- 2003 843 2,335 3,178 4,864 3,740 -1.0% ----- 2004 873 2,271 3,144 4,890 3,726 -0.4% ----------------- 2005 834 2,225 3,059 4,727 3,615 -3.0% ---------------------- 2006 855 2,252 3,107 4,817 3,677 1.7% ---------_._ ___ -···- 2007 843 2,264 3,107 4,793 3,669 -0.2% ------------ 2008 846 2,322 3,168 4,860 3,732 1.7% ------------------- 2009 865 2,286 3,151 4,881 3,728 -0.1% ---------------------------------------------------------------------------- 2010 968 2,508 3,476 5,412 4,121 10.6% Average Annual Change +0.8% Sources: Alaska Department of Labor and Workforce Development and Southeast Strategies, 2011. *Summer population estimates by Southeast Strategies assume that the population in Skagway about triples in the summer season. November 2011-Final Report 4 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Both communities have strong tourism sectors. In addition, Haines hosts a commercial fishing fleet of around 100 residents. Many of the jobs in these communities are seasonal. The following table shows employment in Haines and Skagway. Skagway appears to have a more stable employment base than Haines. Both communities have lost employment between 2009 and 2010. Table 2-2: Employment in Haines and Skagway, 2000 to 2010 Year Haines 2000 805 2001 683 2002 893 ------------· 2003 947 Percent Change -15.2% 30.7% 6.0% Skagway 656 684 745 749 2004 1,002 5.8% 780 -~-----~------------------~------------------------- 2005 1,050 4.8% 836 ------------·------ 2006 730 -30.5% 848 2007 763 4.5% ------------------------·---------------------- 2008 981 28.6% 2009 1,017 3.7% --------------------~----------~-------------------------- 2010 Average Annual Change 995 -2.2% 3.6% 877 886 826 812 Source: Alaska Department of Labor and Workforce Development. Percent Both Change Communities 4.3% 1,461 1,367 8.9% 1,638 ---- 0.5% 1,696 Percent Change 3.5% 4.1% 7.2% 1,782 5.1% 1,886 5.8% ------------------------ 1.4% 1,578 -16.3% 3.4% 1,640 1.0% 1,867 -6.8% 1,843 -1.3% -1.7% 1,807 -2.0% 2.2% 2.6% Both Haines and Skagway are connected to the continental road system, and they receive many visitors in the summer season (see Table 2-3). In addition, they both receive scheduled and chartered air traffic, which increases greatly in summer. State ferry service is also available daily in the summer and several times weekly during the rest of the year. Both communities receive visits by cruise ships in summer. Haines gets about one large cruise ship per week, and Skagway can receive as many as 20 per week. The following table presents visitation by mode at Haines and Skagway. November 2011-Final Report 5 Burro Creek Holdings, LLC fl, Burro Creek Hydroelectric Study Polarconsult Alaska, Inc. Table 2-3: Summer Visitors at Haines and Skagway, 2000 to 2010 Year Cruise Ship Highway State Ferry Train Total Percent Chane 2000-Total 753,036 139,305 56,892 19,231 968,464 ---------------- - - Haines 187,397 44,380 27,494 259,271 ----------~----------·····---- SkaQwa.l;: 565,639 94,925 29,398 19,231 709,193 2001-Total 639,670 128,923 46,287 20,674 835,554 -13.7% Haines 40,150 46,294 22,575 109,019 -58.0% ------------- SkaQwa.l:: 599,520 82,629 23,712 20,674 726,535 2.4% 2002-Total 698,112 128,538 52,122 14,361 893,133 6.9% Haines 86,474 48,117 25,309 159,900 46.7% ----------------·- SkaQwa.l;: 611,638 80,421 26,813 14,361 733,233 0.9% 2003-Total 654,483 118,756 49,413 13,065 835,717 -6.4% Haines 14,741 44,006 24,383 83,130 -48.0% -------·-· SkaQwa.l:: 639,742 74,750 25,030 13,065 752,587 2.6% 2004-Total 744,560 121,393 46,901 13,187 926,041 10.8% Haines 22,465 43,556 23,227 89,248 7.4% ·----------- SkaQwa.l;: 722,095 77,837 23,674 13,187 836,793 11.2% 2005-Total 804,300 112,280 43,464 17,071 977,115 5.5% Haines 31,968 40,893 22,200 95,061 6.5% --------- SkaQwa.l;: 772,332 71,387 21,264 17,071 882,054 5.4% 2006-Total 786,592 101,010 44,060 17,826 949,488 -2.8% Haines 31,278 39,140 23,899 94,317 -0.8% SkaQwa.l;: 755,314 61,870 20,161 17,826 855,171 -3.0% 2007-Total 843,922 108,193 38,780 16,514 1,007,409 6.1% Haines 23,178 39,338 20,531 83,047 -11.9% -----~--- SkaQwa.l:: 820,744 68,855 18,249 16,514 924,362 8.1% 2008-Total 807,262 100,260 40,399 18,326 966,247 -4.1% Haines 41,770 34,434 22,404 98,608 18.7% SkaQwa.l;: 765,492 65,826 17,995 18,326 867,639 -6.1% 2009-Total 798,644 173,781 79,666 16,159 1,068,250 10.6% Haines 41,304 33,931 19,812 95,047 -3.6% -------- SkaQwa.l;: 757,340 139,850 59,854 16,159 973,203 12.2% 2010-Total 726,490 103,044 38,524 16,822 884,880 -17.2% Haines 30,850 36,806 21,330 88,986 -6.4% SkaQwa.l:: 695,640 66,238 17,194 16,822 795,894 -18.2% Sources: Haines and Skagway Visitors Bureaus, Alaska Marine Highways Traffic Volume Reports. Note: Some visitors arriving by State ferry and highway may be local residents. In addition, some visitors arrive by air, passenger-only ferries, and private boat. November 2011-Final Report 6 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Polarconsult Alaska, Inc. Visits to Haines and Skagway have generally grown between 2000 and 2010. However, cruise passenger visits dropped slightly between 2007 and 2010, and appear to have dropped slightly again in 2011. According to the Cruise Line Agencies of Alaska, in 2012, cruise ship stops at Haines will remain the same at 23. Cruise ship ports of call at Skagway in 2012 will increase by 8, to 352 stops. Assuming a similar load factor of passengers per ship as recent years, this increase should bring more passengers to Skagway in summer of 2012. Many of the cruise ships visiting these communities house 2,000 or more passengers, and 1,000 or more crew. As a result of these visitations, it is not unusual for Skagway to have an additional 10,000 people in the town on any given summer day. Skagway's status as the gateway to the Klondike, and its Yukon Gold Rush historical flavor is a strong tourism draw, and virtually every cruise ship transiting Alaska's Inside Passage visits the community. Cruise ship calls in Haines are far fewer, averaging one large cruise ship visit per week. Haines also lacks the train traffic that Skagway has. Potential future industrial development in the Upper Lynn Canal includes the Palmer mining project near Haines. This is a mid-stage prospect containing high grade copper, zinc, gold, and silver. The project is still in the exploration phase to better define the existing inferred resource. The Palmer project could potentially require large amounts of electric power to develop and operate. November 2011-Final Report 7 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study 2.2 EXISTING ENERGY SYSTEM Polmonsult Al.,k•, Inc. ~ Alaska Power Company (APC) is the certificated electric utility in the Skagway area. The utility is also connected to the Haines area by undersea cable. Inside Passage Electric Cooperative (IPEC) provides retail electric power to Klukwan and the Chilkat Valley near Haines, some of which is purchased wholesale from APC. In this report, the Municipality of Skagway and the Haines Borough (the area is also referred to as Upper Lynn Canal) are taken together as the project area into which the Burro Creek upgrade integrates. 2.2.1 Electric Utility Organization Electrical service in Upper Lynn Canal is provided by APC, a subsidiary of Alaska Power and Telephone (AP&T). The utility holds Certificate of Public Need and Necessity No. 2. It is a for- profit utility, and operates under statutory authority AS 42.05.990(5)(A). The APC is the entity that operates the power distribution system serving Upper Lynn Canal. The generation plants are owned by either AP&T or APC. The APC participates in the State of Alaska's Power Cost Equalization (PCE) program, which subsidizes electricity rates for residences and community facilities served by eligible Alaska utilities. 2.2.2 Electrical Generation System The AP&T currently operates four hydroelectric generation facilities and two diesel plants in Upper Lynn Canal. Historically, one diesel generation plant operated in Skagway and one in Haines. A four-generator diesel plant at Haines has the capacity to generate about 6.4 megawatts (MW) of power, and a four-generator diesel plant at Dewey Lakes near Skagway has a generating capacity of about 3.4 MW. Diesel generation is used mainly for backup power when the hydroelectric systems are not operating. The 900 kW Dewey Lakes hydroelectric run-of-river project has operated near Skagway since 1909. In 1997, the Goat Lake hydroelectric project began operations. This 4.0 MW facility is located seven miles north of Skagway, and consists of a 204-acre glacier fed lake that has winter storage enough to provide hydroelectric power nearly year around. The facility was connected to the Haines power grid by a 15-mile undersea cable in 1998. In 2009, the Kasidaya Creek run- of-river hydroelectric project near Skagway began operating. That facility has a generation capacity of 3.0 MW, and is not operational during some winter months. The Lutak Hydro run- of-river system near Haines has an installed capacity of 250 kW. In addition to these AP&T facilities, the privately owned 10-Mile Creek run-of-river hydroelectric facility north of Haines has a capacity to generate 600 kW. Currently that facility sells its power to IPEC for use in Klukwan and the Chilkat Valley. IPEC is in the process of acquiring the 10-Mile Creek facility. The installed capacity of these power plants totals over 8.3 MW of hydroelectric power, and approximately 9.8 MW of diesel-generated power. The existing hydroelectric facilities can produce enough power to meet community demand except in late winter when Goat Lake has drained down, and the Kasidaya project is off-line due to low flows and freezing conditions. November 2011 -Final Report 8 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study APC relies on its diesel plants to supplement the hydro projects during these periods and other times when the hydroelectric projects are off-line for maintenance or repair. 2.2.3 Electrical Distribution System The APC is the certificated electric utility in the Skagway area. It is also connected to the Haines area by a 15-rnile undersea cable. The IPEC provides retail electric power to Klukwan and the Chilkat Valley near Haines. In addition, the following transmission lines have been built in Upper Lynn Canal since 2005: Y Intertie to Dye a Valley -2005; Y 5 mile to 10 mile Haines Highway intertie-2007; Y Intertie from IPEC system to the Canadian Border-2007; Y Intertie to Lutak Community near Haines-2007; Y Power line to the Canadian border station from Skagway; and Y Power line from Whitehorse, YT to Carcross, YT. 2.2.4 Future Projects Since the undersea cable in Taiya Inlet provides most of the renewable power to Haines, that community would rely mainly on diesel generation should that cable be incapacitated. The AP&T is looking for hydroelectric potential in the Haines area to reduce that dependence on diesel generation. Connelly Lake (on the Haines side of Lynn Canal) and Schubee Lake (on the Skagway side of Lynn Canal) are both being investigated for potential hydroelectric generation. Both Lake projects are in the process of receiving preliminary FERC permits. Connelly Lake has the capacity to produce 10 to 15 MW, and Schubee Lake has a 3 to 5 MW capacity. The Connelly Lake facility could be operational by 2015 or 2016. Schubee Lake would likely not be operational until2018 or 2019. The Municipality of Skagway is investigating the development of a hydroelectric darn project at West Creek. That facility has the capacity to produce 25 to 50 MW of power in the future. The intent of this project is to complete transmission lines to connect it to the Canadian electric grid, and sell power to Canada. No FERC permits have been applied for as yet, and it is unlikely this facility would be operational before 2017 or 2018. On the Canadian side of the border, Yukon Energy, the electric utility serving the Yukon Territory (YT), is developing two small projects near Tutshi Lake south of Carcross, YT. One of those projects would be a pumped storage project. The current transmission line from Whitehorse, YT to Carcross, YT ends about 47 miles from the Alaska border. APC's existing 34.5 kV distribution lines extend to within approximately 7 miles of the Alaska border. This project would extend the line about 10 to 15 miles closer to the Alaska border, reducing the gap between the two systems. Yukon Energy has interest in connecting to the Skagway electric grid in order to purchase power for the increasing mining activity in the Yukon region.1 Personal conversation with Hector Campbell, Director of Resource Planning & Regulatory Affairs, Yukon Energy, Whitehorse, YT, Canada, October 2011. November 2011-Final Report 9 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study 2.2.5 Existing Electric Load Profile J'olmoosult Alaska, Inc fl, Table 2-4 presents power generation and usage in Haines and Skagway from 2004 through 2010. While there is more demand for power in the summer because of the increased population and visitation, there is ample existing hydroelectric generation during the summer season. During the winter, as Goat Lake drains down, and Kasidaya Creek is off-line, supplemental energy is generated with diesel generators. Table 2-4: Recent Electric System Statistics Parameter 2004 2005 2006 2007 2008 2009 2010 kWh Generated 23,907,062 23,931,656 NA 28,020,445 31,738,747 28,309,127 28,251,646 kWh Generated with 761,200 Diesel 189,680 219,160 1,296,970 3,073,780 1,236,110 238,820 (Diesel as % of total 3.2% 0.8% NA 4.6% 9.7% 4.4% 0.8% generation) kWh Sold 21,825,252 22,297,987 NA 24,172,427 25,210,170 25,063,025 24,286,111 System Losses 8.71% 6.83% NA 13.73% 20.57% 11.47% 14.04% (Generated but not sold) Fuel Price $1.14 $1.61 $2.01 (annual average) $2.57 $2.84 $2.17 $2.68 Fuel Used (gallons) 60,312 19,081 20,375 90,969 210,423 86,836 18,236 Total Fuel Expense 68,805 30,699 40,915 234,061 596,603 188,049 $48,876 Total Non-Fuel Expense 995,989 1,276,902 1,007,552 846,263 968,983 1,207,594 $3,060,050 Total Utility Expense $1,064,794 $1,307,601 $1,048,467 $1,080,324 $1,565,586 $1,395,643 $3,108,926 Power Cost per kWh sold $0.02 $0.03 NA $0.02 $0.03 $0.03 $0.06 Diesel Generation Efficiency (kWh/gal) 12.6 9.9 10.8 14.3 14.6 14.2 13.1 All data is compiled from monthly Power Cost Equalization program records provided by AEA. Data is in state fiscal years (July 1'' through June 30'h). kWh: kilowatt-hours gal: gallons The data above shows that more power is consistently generated by APC than is consumed in the Haines and Skagway markets. This is due in part to inherent distribution system losses that are typical of any utility system. November 2011-Final Report 10 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study 2.2.6 Projected Future Electric Load Profile Polarconsult Alaska, Inc. Table 2-5 presents average population in the project area and kilowatt-hours (kWh) sold between 2004 and 2010. An intertie to the Chilkat Valley was completed in 2007, which would have caused an increase in power usage in that year that would have flattened out in subsequent years. Even with a growth of population of over 10% between 2009 and 2010, energy usage dropped by about 3% in that year. Table 2-5: Changes in Population and Energy Consumption in Haines and Skagway, 2004 to 2010 Annual Average Percent kWh Sold Percent kWh Sold Percent Year Population Change Change per Resident Change 2004 3,726 -0.4% 21,825,252 5,858 ·--~~-~-------------------~--· 2005 3,615 -3.0% 22,297,987 2.2% 6,168 5.3% -----·-----~------------------~-------------------------------------~----------- 2006 3,677 1.7% 23,168,671 3.9% 6,301 2.2% ------------------------------------------------------------------------------- 2007 3,669 -0.2% 24,172,427 4.3% 6,588 4.6% 2008 3,732 1.7% 25,210,170 4.3% 6,755 2.5% ----------------------------------------·· ·-· 2009 3,728 -0.1% 25,063,025 -0.6% 6,724 -0.5% ----·------------------------------- 2010 4,121 10.6% 24,286,111 -3.1% 5,893 -12.4% Sources: Alaska Department of Labor and Workforce Development, and Alaska Energy Authority Power Cost Equalization Program reports. kWh: kilowatt-hour Note: An intertie to the Chilkat Valley was completed in 2007. This connection would have caused an increase in power usage that would have flattened out in subsequent years. According to the population projections produced by the Alaska State demographer's office, population is expected to decline by an average annual rate of 1.8% in the Haines Borough between 2009 and 2034. Population projections were not developed for the Municipality of Skagway alone, and the communities combined with Skagway in the projections that were developed are so economically and demographically different from Skagway, that this data is not useful for an analysis of future population changes in that community. However, it is likely that Skagway's future population will not decline as rapidly as is projected for the Haines population. Cruise ship traffic had been on a slight decline, but is expected to begin increasing again in 2012. However, Skagway has a small port area, and is nearly at capacity for the number of ships it can host each day. There is room for growth in cruise ship traffic at Haines, however. Increased energy efficiency and conservation puts downward pressure on growth of energy demand. As a result of the slowing population growth, slowing per capita energy consumption, and possible slow growth in visitors to the area, growth in energy demand is expected to decline slightly. November 2011-Final Report 11 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Pola<<On<ult Ala<ka, In<. ~ Three potential future occurrences in the project area could put additional loads on energy demand. Two of those occurrences are somewhat linked to development of additional alternative energy resources, and one may be influenced by addition of those resources. ~ Yukon Energy is facing growing power demand from mining projects in the Yukon Territory. The company is developing two small projects near Tutshi Lake south of Carcross, YT, one of which is a pumped storage project. That development would bring power lines capable of transmitting 5 to 10 MW of power to within about 35 miles of the Alaska border, which is near the existing limit of APC's Skagway distribution system. Burro Creek power would work well with the planned pumped storage project at Tutshi Lake, and Yukon Energy has expressed interest in continuing its transmission lines to the Alaska/Canada border to connect with the Skagway grid in order to purchase all of the power produced by Burro Creek (at $0.10 to $0.15 per kWh) 2• If the Municipality of Skagway's West Creek or other hydroelectric power developments occur, this transmission connection could be improved to carry more energy into Canada. ~ With development of the Connelly and/or Schubee Lake hydroelectric facilities (operations beginning as early as 2016), APC would likely develop shore power hookups for cruise ships at Skagway. Under this scenario, it is possible that APC would purchase all of Burro Creek's power during the cruise ship season (about 20 weeks beginning in mid-May, and ending in mid to late-September). This would be a substantial portion of Burro Creek's annual output (8,410,000 kWh, or 58% of the annual output from a 3.4 MW project, configuration 3D-70). ~ With development of the Palmer mine project north of Haines, demand for power will increase significantly, and APC would likely purchase all the power that Burro Creek could produce year around. If the results of ongoing mineral exploration are favorable, mine construction could begin in 2020, with the mine becoming operational in 2022. Power demand during construction is assumed to be about 2 MW, increasing to about 4 MW when operations begin. Development of this mine is dependent upon mineral prices and other variables. A forecast of future electric demand in the Haines and Skagway area is based on existing and expected future trends in population and energy consumption growth, and considers potential future development that will impact energy demand. Table 2-6 and Figure 2-1 present a 50-year forecast of energy demand growth in the Haines/Skagway areas under several scenarios. The load growth associated with a connection to the Yukon Electric grid is not quantified in this study, as the Yukon Energy grid is substantially larger than the Upper Lynn Canal grid, and a connection to the Yukon Energy grid is assumed to provide a market for the entire output of a Burro Creek project. Personal conversation with Hector Campbell, Director of Resource Planning & Regulatory Affairs, Yukon Energy, Whitehorse, YT, Canada, October 2011. November 2011-Final Report 12 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Polarconsult Alaska, Inc. Table 2-6: Haines/Skagway Electrical Demand Forecast, 2012 to 2062 Normal Load Scenario Year low Moderate high Moderate with Moderate Moderate Cruise Ships with Mine with Both 2012 24,286 24,286 24,286 24,286 24,286 24,286 2017 23,096 23,685 24,899 69,045 23,685 69,045 --------------~ 2022 21,964 23,099 25,528 68,459 58,139 103,499 ------------------~-,~~--------------------------------·----~------------------------- 2027 20,887 22,527 26,173 67,887 57,567 102,927 2032 19,864 21,969 26,833 67,329 57,009 102,369 2037 18,890 21,426 27,511 66,786 56,466 101,826 2042 17,964 20,895 28,206 66,255 55,935 101,295 ------------------------ 2047 17,084 20,378 28,918 65,738 55,418 100,778 2052 16,247 19,874 29,648 65,234 54,914 100,274 ----- 2057 15,450 19,382 30,397 64,742 54,422 99,782 2062 14,693 18,902 31,164 64,262 53,942 99,302 Source: Southeast Strategies, October 2011. All units are annual megawatt-hours. Table 2-6 and Figure 2-1 incorporate the following assumptions: • Under the Normal Load Scenario, the low growth forecast assumes a drop in energy demand of 1% per year due to forecasted declining population, and increased energy efficiency from improved technology. • Under the Normal Load Scenario, the moderate growth forecast assumes a drop in energy demand of 0.5% per year due mainly to increased energy efficiency from improved technology, and assumes only a slight drop in population. • Under the Normal Load Scenario, the high growth forecast assumes an increase in energy demand of 0.5% per year due mainly a slight increase in population and business activity in the area. • The Moderate Growth Forecast with Cruise Ships scenario assumes the moderate growth forecast for the normal energy load, with the development of shore power hook ups for cruise ships in Skagway beginning in 2017. This scenario assumes an average of 3 ships per day tying into shore power for 12 hours per day, for 140 days. This forecast assumes each ship requires an average of 9 MW of power, and the total additional power demand per season would equal 45,360 MWh. • The Moderate Growth Forecast with Mine scenario assumes that the Palmer mine north of Haines will be developed, and connect to the power grid at Haines. It is assumed that construction of the mine begins in 2020, and continues for two years. Mine operations would begin in 2022, and continue at a steady pace through at least the end of the forecast period. That load was added to the moderate growth forecast for the normal November 2011-Final Report 13 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Pola<eonsult Alaska, Inc. 4 energy load for this scenario. Mine operations are assumed to require an average of 4 MW year around (the Kensington Mine north of Juneau currently uses 6 to 7 MW year around), with half that load used during the construction phase (2020 and 2021). Figure 2-1: Haines/Skagway Moderate Electrical Demand Forecast, 2012 to 2062 120,000 100,000 .s:. 80,000 3: ~ .: 60,000 ... Ill ~ Q a.. 40,000 20,000 0 2012 2017 2022 2027 2032 2037 2042 2047 2052 2057 2062 Year Moderate Moderate with Mine Source: Southeast Strategies, 2011. MWh: megawatt-hours. November 2011-Final Report ~Moderate with Cruise Ships Moderate with Both 14 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study 3.0 HYDROELECTRIC DEVELOPMENT OPTIONS 3.1 RESOURCE DESCRIPTION Polarconsult Alaska, Inc. Burro Creek is located approximately two miles southwest of Skagway, Alaska (Figure A-1). The Burro Creek basin is in a transitional area between the moderate maritime climate of southeast Alaska and the more extreme continental climate of the Yukon. Annual precipitation in the Burro Creek basin is estimated at 80 inches, based on measured Burro Creek flows and large-scale isohyetal maps of Alaska. Total annual precipitation in Skagway is 26 inches. The difference between measured precipitation in Skagway and estimated precipitation in the Burro Creek basin is attributed to orographic effects that result in micro-climate variations (rain shadows, etc.) in the area's mountainous terrain 3 . Burro Creek drains an east-facing basin running on a southeast -northwest axis that is 2 to 3 miles wide and 5.5 miles long, totaling approximately 12 square miles in area. The basin extends from tidewater on Lynn Canal up to a series of 4,500 to 5,500 foot peaks to the north and 4,000 to 4,500 foot peaks to the south. Prominent peaks include Face Mountain (4,830 feet), Parsons Peak (5,600 feet+), and Mount Harding (5,321 feet). Several other peaks 4,000 to 5,500 feet in elevation surround the basin. The basin has little to no glaciation, and is forested to an elevation of approximately 3,000 feet. The basin is bordered by West Creek, a tributary of Taiya River, to the north, and by Ferebee River to the west and south. Minor drainages discharging directly to Lynn Canal are located northeast and southeast of the Burro Creek basin. The basin is mountainous, with little evidence of extensive alluvial or fluvial deposits except along the valley bottom where Burro Creek flows. Bedrock is visible at the surface in many areas. The lower approximately 3,550 feet (0.67 miles) of Burro Creek is located on USS 1560, a 121- acre property owned by Burro Creek Holdings, LLC. The upper reach of Burro Creek to its headwaters is located on Federal land managed by the Bureau of Land Management (BLM). From tidewater up to mile 0.13, Burro Creek runs at a gradient of approximately 7% over a combination of exposed bedrock, cobbles, and boulders. There is an approximately 15-foot waterfall at mile 0.13 (Photograph B-2). From mile 0.13 to 0.42, the creek gradient is approximately 12%. At mile 0.42, there is a diversion structure for the existing small hydro plant at an elevation of 235 feet at the head of a series of rock sills that Burro Creek cascades down (Photograph B-6). Between this diversion structure and the westerly property line, Burro Creek runs at approximately 8%, rising to an elevation of 340 feet at the westerly USS 1560 property line. The creek cascades over large boulders and cobbles throughout this reach (Photograph B-15). Upstream from the property line, Burro Creek runs at approximately 10% to mile 1.00 (elevation 500 feet), then at 5 to 8% to mile 2.58 (elevation 1,160 feet). Major tributaries flow into Burro Creek between mile 2.58 and 2.74. Above these, Burro Creek continues for approximately six more miles to its alpine headwaters. The reach from mile 2.58 down to tidewater, or a subset thereof, is of interest for hydropower development. 3 Precipitation data and sources are discussed in Section C.1 of Appendix C. November 2011-Final Report 15 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study 3.2 OVERVIEW OF PROJECT CONFIGURATIONS CONSIDERED Polarconsult Alaska, Inc. The Burro Creek basin lacks any notable dam sites suitable for significant storage reservoirs. While dams may be technically feasible at Burro Creek, the cost of a dam is expected to be out of proportion to the value of the resulting storage and hydropower regulation for a project large enough to export power to the Upper Lynn Canal market. Accordingly, this study only considers run-of-river hydropower options at Burro Creek. Several potential diversion sites, powerhouse sites, and design flows were evaluated for Burro Creek. These are summarized in Table 3-1 and discussed in Appendix G. The five different diversion locations, numbered 1 through 5, are shown on Figures A-2, A-3, and A-4 in Appendix A. The four different powerhouse locations, numbered A through 0, are shown in Figure A-3. Table 3-1: Project Configurations Considered Parameter Values Considered Diversion Location Powerhouse Location Design Flow CONFIGURATION CODES AND NOMENCLATURE 1. 1,160 foot elevation 2. 1,000 foot elevation 3. 800 foot elevation 4. Property Line (340 foot elevation) 5. Existing Diversion (235 foot elevation) A. Existing Powerhouse (33 foot elevation) B. Below Falls (50 foot elevation) C. Above Falls (80 foot elevation) D. North of Dock (50 foot elevation) 50 cfs (30-inch penstock) 70 cfs (36-inch penstock) 110 cfs (42-inch penstock) For brevity, project configurations in this report are referenced in shorthand. Configuration '30-70' references a project with a diversion at site '3', a powerhouse at site 'D', and a design flow of 70 cfs. Source: Polarconsult Alaska, Inc., 2011. 3.3 RECOMMENDED PROJECT CONFIGURATIONS Combinations of the project parameters listed in Table 3-1 were analyzed for estimated cost, estimated energy generation, and environmental issues. To a significant degree, the most favorable project configuration at Burro Creek will depend on the needs of the market that the project is built to serve. This section presents project configuration '30' with a design flow of 70 cfs (referred to as configuration '30-70'), which has the lowest estimated sales price of power, assuming all project output is sold and no grants are used for the project's development costs. Several other project configurations have similar estimated sales prices as configuration 30-70, and are also technically similar to 30-70. Other project configurations are discussed in Appendix G, and estimated costs and energy sales prices for other project configurations are presented in Appendix H. Table H-2 provides estimated energy sales prices for a selection of project configurations, financing scenarios, and market scenarios. November 2011-Final Report 16 1 ~ .. ~ ~ 'S z li Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Polarconsult Alaska, Inc. Project configuration 3D-70 has an intake at 800 feet elevation (site 3) and a design flow of 70 cubic feet per second (cfs). The estimated sales price for energy generated by this project configuration, assuming the full output is sold, is approximately 12 cents per kWh, using the financial assumptions described in Appendix H. At this level of analysis, the cost of power for this project configuration is essentially the same for the four powerhouse sites considered in this study. The differences in penstock length and total project head between the various powerhouse sites amounts to less than 5% variation in the estimated sales price, which is within the margin of error of this study. Because the market for power from this project is not well defined at this time, there is latitude to tailor the project to the needs of the customer. The full range of project configurations outlined in Table 3-1 have installed capacities ranging from 430 kW up to 7.3 MW, and average net annual energy output from 2,041,000 kWh to 20,581,000 kWh. This detailed information in provided in Table H-2 of Appendix H. 3.4 ESTIMATED ENERGY GENERATION The installed capacity of configuration 3D-70 is 3.4 MW, and the estimated annual net energy generation for the recommended project is 13,127,000 kWh, for a capacity factor of 44%. Figure 3-1 presents the estimated seasonal distribution of this energy output. Seasonal energy output for other project configurations is presented in Table H-2 of Appendix H. 4,500 Figure 3-1: Estimated Average Annual Net Output of Project 3D-70 90,000 4,000 80,000 3,500 70,000 3,000 60,000 2,500 50,000 f3 >~ 8- cu liP .. ~ 1l ~ :;; Ill w 2,000 1,500 1,000 500 -Estimated Average Daily Net Power Output (kW) -Estimated Average Daily Net Energy Generation (kWh) 40,000 30,000 20,000 10,000 0 L-------------------------~~--~----------------.---~----~--_J 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Polarconsult Alaska, Inc., 2011. November 2011-Final Report 17 c: 0 :;; I! cu c: cu ~ ~ cu c: w -a;_ :;.j = ~ !!!- 21, ~ ~ "tt cu .... ~ ·-a w Burro Creek Holdings, llC Burro Creek Hydroelectric Study 3.5 DESCRIPTION OF PROJECT FEATURES Polmonsult Alaska, Inc. 4 Key features of project 30-70 are described in the following sections. 3.5.1 Transmission Line A transmission line is required to get the output of the Burro Creek project to markets in Skagway or beyond. Four potential transmission line configurations were evaluated for this study, and are described in Appendix G, section G.3. The most economical transmission line is a submarine cable routed from Burro Creek to Skagway. All project configurations discussed in this study include the cost of a transmission line to Skagway, but do not include other transmission line upgrades or extensions (e.g., from the APC system north to Carcross). The submarine cable route from Burro Creek to Skagway is shown on Figure A-5 in Appendix A. The route is approximately 2.2 miles long, and has a maximum depth of approximately 600 feet. The submarine cable installation would consist of four individual cables, three cables for the power intertie and a fourth cable as a spare in the event one of the three in-service cables fails. This approach is preferred over a single bundled cable, as the cables can be individually laid by smaller vessels available on the west coast of North America. A bundled cable would likely require mobilization of a more specialized cable laying ship from Asia or Europe, which is expected to be prohibitively expensive for this project. Also, in the event of a cable failure, a single failed cable will be easier to lift off the bottom of Lynn Canal for repair than a bundled cable. The cables would be a jacketed full concentric neutral power cable with 1/0 conductor insulated for 25 kV AC service. The intertie would operate at a voltage of 24.9 kV. Cable armor would be required at the shore ends to protect from abrasion due to wave action. More study would be necessary to determine if cable armor is necessary along the entire cable route. Currents, bottom conditions, commercial fishing activity, and marine practices (anchoring) would all be determinants in whether armor is needed for the submarine cables. The feasibility cost estimates assume armor is provided only for the 800 feet of cable nearest to shore at each end. 3.5.2 Controls and System Integration Because Burro Creek is only approximately 2 miles line-of-sight from Skagway, a dedicated secure radio communications link is suitable for communications between the Burro Creek project and the APC system. As would be defined in the power sales agreement between BCH and APC APC would have the ability to control project output as part of overall management and operation of generation assets serving the Upper Lynn Canal grid. Burro Creek operations would be controlled by an on-site control system that would monitor flow in Burro Creek and regulate power generation accordingly. Control and power circuits would be run along the penstock route from the power house up to the diversion/intake site to monitor conditions at the intake and actuate gates and related equipment to maintain the intake system in an operational condition. The hydro turbine would be regulated by spear valves, unlike the existing Burro Creek project which is regulated by deflector control. Spear valve regulation would enable the larger project November 2011 -Final Report 18 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Pola"on,ult Ala,ka, Inc ~ to operate at low flows. This is not an issue for the existing project, which has adequate flow to use deflector control for frequency regulation. 3.5.3 Access and Staging All construction equipment, material, supplies, and personnel would arrive at Burro Creek by barge. The existing landing area is adequate for landing construction materials and equipment. Existing cleared areas at Burro Creek are likely adequate for project staging. If not, staging could also occur in Skagway, or additional staging areas could be cleared to the north of the existing dock. There is adequate space in this area to maintain a vegetated buffer along the shore to screen staging activities from view along Lynn Canal. Existing trails on USS 1560 extend up towards the existing intake at elevation 235 feet. These trails would be improved to provide for equipment access for construction of this project. Terrain above the existing intake is favorable for construction of trails up to the westerly property line of USS 1560. Above the property line, the terrain becomes steep, and significant trail-building work will be necessary to side-hill a bench up to the intake site. Side slopes are consistently 50 to 100% for approximately 3,500 feet of the penstock I access route through this area. Due to the prevalence of shallow bedrock in this area, significant blasting will be required to establish an access trail and penstock bench. Because of the location up in Burro Creek valley, this access route and penstock bench will not be visible from Skagway but will be partially visible to ship traffic on Lynn Canal. It will be visible from the air. 3.5.4 Construction Schedule Construction is scheduled to occur over two seasons. The first construction season would focus on building the access trail up to the intake, building the powerhouse and tailrace, and installing the penstock. The second construction season would start with construction of the in-stream diversion structure in March. This would coincide with a period of reliable low flow in Burro Creek, simplifying the in-stream construction work for the diversion structure. During the summer, the penstock would be installed, the submarine cable would be laid, and the turbine/generator equipment would be installed in the powerhouse. Construction would be completed and the project commissioned m the fall of the second construction year. 3.5.5 Intake While there are numerous exposed bedrock sills on the lower reaches of Burro Creek between tidewater and the existing intake at mile 0.42, there does not appear to be any exposed bedrock in Burro Creek above the vicinity of the existing intake. This conclusion is based on field investigations up to the 700 foot elevation and review of aerial imagery up to the 1,160 foot elevation. Throughout the reach from mile 0.42 up to mile 2.58 (which includes conceptual intake sites 1, 2, 3, and 4), Burro Creek cascades over cobbles and boulders at gradients of 5 to 10%. No notable features were identified in this reach that present especially favorable intake November 2011-Final Report 19 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Pola.wnsult Alaska, Inc. 4 sites. However, there are three apparent avalanche hazard areas in this reach where project intakes should not be built. These are approximately located from mile 1.23 to 1.36, from mile 2.06 to mile 2.12, and from mile 2.18 to mile 2.41 along Burro Creek. All of these avalanche chutes extend down from the south side of Burro Creek, whereas the penstock would be located on the north side of Burro Creek. The conceptual diversion and intake structure design for a project with an intake at sites 1, 2, 3, or 4 (or in between these locations) calls for a reinforced concrete wall founded on alluvium and buttressed with local filL If geotechnical investigations identify shallow bedrock at the intake site, that would be advantageous for foundation design and also sealing off subsurface flow. The intake would incorporate Obermeyer-type gates to pass debris and flood flows, and would feature a protected forebay to divert project flows from the main channel of the creek to a coanda-type inclined screen intake structure to screen water and admit it to the penstock. 3.5.6 Penstock The penstock for configuration 3D-70 would be an approximately 7,600 foot long, 36-inch diameter pipeline. The first approximately 5,000 feet of pipe would be relatively low pressure (under 100 psi static pressure), and can be constructed of HDPE or PVC pipe. The last approximately 2,600 feet of pipe would be higher pressure (100 to 330 psi static pressure), and would be constructed of steel pipe. The pipe can be installed above ground or buried. This will depend on the geotechnical conditions along the penstock I access route, and the final design and configuration of the intake bench. A buried pipeline would be more protected from cold weather and potential damage from tree falls. Above ground pipes of this diameter have little risk of freezing in southeast Alaska provided the water is kept moving through the pipe. If the project is off line in the winter months, the penstock should be drained or allowed to keep flowing through a bypass valve at the powerhouse. Penstocks for other project configurations would be similar as that for configuration 30-70 as described above. The diameter, length, and transition points between materials and pipe walls would vary as dictated by the technical details of the particular configuration. 3.5.7 Powerhouse and Tailrace The powerhouse would be an approximately 36-foot by 36-foot building housing the turbine, generator, switchgear, and controls for the project. The powerhouse is assumed to be sited at the location of the existing project powerhouse, but can be moved to any of the other three sites listed in Table 3-1 with a very modest impact on project performance or economics. The turbine would be a two-jet Pelton turbine fitted with spear valves for power and frequency regulation. The Pelton wheel would be approximately 30 inches in diameter and would drive a 720 rpm synchronous generator. The tailrace would be an open ditch armored with local cobbles and boulders returning water to Burro Creek just above tidewater. November 2011-Final Report 20 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study 4.0 MARKET ANALYSIS AND OPPORTUNITIES 4.1 MARKET FOR POWER Currently, APC has slight excess hydroelectric capacity in summer, and not quite enough hydroelectric capacity in winter for the communities they serve. In recent years, power demand on the APC system has declined slightly, likely due to a slight decline in visitors to the area and an increase in energy efficiency. While there are a number of existing opportunities for sale of Burro Creek power, these existing opportunities do not amount to a market for the full output of a project at Burro Creek. These existing opportunities are discussed in Section 4.1.1. There are several emerging developments within the Upper Lynn Canal region that could buy the full output of a Burro Creek project. These emerging opportunities include cruise lines wanting to use shore power while in port at Skagway, the Palmer Project mining prospect north of Haines, and the Canadian power grid if an intertie is built. These opportunities have development schedules that are similar to the schedule for Burro Creek, and are discussed in Section 4.1.2. Section 2.2.6 presents long-term energy forecasts under a variety of growth and large project scenarios. The load growth associated with a connection to the Yukon Electric grid is not quantified in this study, as the Yukon Energy grid is substantially larger than the Upper Lynn Canal grid, and a connection to the Yukon Energy grid is assumed to provide a market for the entire output of a Burro Creek project. 4.1.1 Existing Market Opportunities Without future development of new markets for power in Upper Lynn Canal (discussed in Section 4.1.2), it would be possible for Burro Creek to sell power in a few instances. At this time, these opportunities are a viable market for only a portion of the output of Burro Creek. These opportunities are: Y The APC generates an average of 900,000 kWh of electricity by burning diesel fuel each year. This mostly occurs in late winter, when their hydroelectric facilities are shut down for maintenance and repairs. The APC may purchase Burro Creek power during those times, especially in late winter, when Goat Lake has drained down, and Kasidaya Creek is still frozen to avoid diesel generation. Late winter power purchase could amount to up to 20 days per year. Unfortunately, this is the time of year that Burro Creek has a low flow, so does not produce a lot of power. Representatives of APC estimated their avoided cost of diesel generation in the Haines-Skagway area at about $0.28 per kWh. That rate will vary with changes in the price of diesel fuel. Y The IPEC may purchase Burro Creek power if the cost is less than the APC power it currently purchases (about 241,000 kWh per year at about 12.35 cents per kWh). However, IPEC continues to acquire and develop its own sources of power, so may not need Burro Creek power in the long term. APC would charge BCH a fee to move energy across APC's distribution system (called 'wheeling'). This fee is estimated at two cents per kWh. November 2011 -Final Report 21 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Pola«o.,ult Alaska, Inc. ~ "" Burro Creek can sell power to businesses with a common owner without having to become a certified utility. In the past year, businesses held in common with the owner of BCH used about 110,000 kWh of power. Businesses are not eligible for Power Cost Equalization subsidies, so this power was charged at the rate of around $0.21 per kWh. APC would charge BCH a wheeling fee of about two cents per kWh to deliver this power to the businesses held in common. "' If Burro Creek's sales price of power is less than AP&T's cost to produce power, then APC may be willing to enter into a wholesale power sales agreement to purchase additional power from Burro Creek. However, APC has a 'take or pay' agreement with AP&T for the full output of AP&T facilities on the Upper Lynn Canal grid, to the extent that all AP&T costs (including debt service) are covered. This agreement applies to the Goat Lake and Kasidaya hydro projects, and runs until construction bonds on these projects are retired in the late 2030s. APC would not be able to purchase large amounts of Burro Creek power before about 2040 unless regional demand increased beyond the capacity of AP&Ts existing facilities. Current charges for APC power in the Haines- Skagway area is about $0.21 per kWh. Residential and community facility customers receive a subsidy of about $0.07 per kWh through PCE. 4.1.2 Potential Future Market Opportunities Several development projects in the Upper Lynn Canal region would significantly increase demand for electrical power generation, creating a good market for the output of Burro Creek. 4 };-Yukon Energy is facing growing power demand from mining projects in the Yukon Territory. The company is developing two small projects near Tutshi Lake south of Carcross, YT, one of which is a pumped storage project. That development would bring power lines capable of transmitting 5 to 10 MW of power to within about 42 miles of the existing limit of APC's 34.5 kV distribution system north of Skagway. Burro Creek power would work well with the planned pumped storage project at Tutshi Lake, and Yukon Energy has expressed interest in extending its transmission lines south to the Upper Lynn Canal system in order to purchase all of the power produced by Burro Creek (at $0.10 to $0.15 per kWh) 4 • If the Municipality of Skagway's West Creek or other hydroelectric power developments occur, that transmission line could be improved to carry more energy into Canada. ;,.. With development of the Connelly and/or Schubee Lake hydroelectric facilities (operations beginning as early as 2016), APC would likely develop shore power hookups for cruise ships at Skagway. Under this scenario, it is possible that APC would purchase all of Burro Creek's power during the cruise ship season (about 20 weeks Personal conversation with Hector Campbell, Director of Resource Planning & Regulatory Affairs, Yukon Energy, Whitehorse, YT, Canada, October 2011. See correspondence in Appendix K. November 2011 Final Report 22 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study beginning in mid-May, and ending in mid to late-September). This would be between 71 and 81% of Burro Creek's annual output, depending on the project configuration. ~ With development of the Palmer mine project north of Haines, demand for power will increase significantly, and APC would likely purchase all the power that Burro Creek could produce year around. If the results of ongoing mineral exploration are favorable, mine construction could begin in 2020, with the mine becoming operational in 2022. Power demand during construction is assumed to be about 2 MW, increasing to about 4 MW when operations begin. Development of this mine is dependent upon mineral prices and other variables. 4.2 PROJECT COST ESTIMATES Appendix H presents estimated capital costs for 15 different project configurations at Burro Creek. The 15 configurations include three different design flows (50 cfs, 70 cfs, and 110 cfs) at five different diversion elevations. The capital cost estimates for these project configurations range from $4,342,000 to $21,069,000, and in all cases include a transmission line to Skagway. Appendix H also provides estimated annualized costs for these project configurations, including debt service, maintenance, operations, and periodic replacement and refurbishment ranging between $437,000 and $4,082,000. 4.3 POTENTIAL BURRO CREEK BUSINESS OPPORTUNITIES Appendix H develops cost estimates for various project configurations, as well as estimated power output, financing scenarios, and estimated sales prices (cents per kWh) required for each configuration. For each project configuration, scenarios were developed for partial power sales, and sales of the full output of each project. Projects producing a base power cost of about $0.10 per kWh and lower would allow Burro Creek power to be competitive in current markets such as wholesale to IPEC, and sales to business held in common. For both of those power markets, a $0.02 per kWh wheeling charge for use of APC transmission lines would be added to the base charge, bringing the highest feasible power costs to about $0.12 per kWh to the consumer. If a wholesale purchase agreement with APC could be developed, a wheeling charge would be unnecessary, and projects with slightly higher kWh costs would be feasible. However, as APC has been hesitant to state conditions and costs at which they would be willing to purchase power from Burro Creek, it is difficult to determine which project configurations would be feasible if such an agreement could be reached. Because it is unlikely that Yukon Energy would consider building a transmission line connecting its grid to the Upper Lynn Canal system without a promise of sales of at least 4 MW in capacity, the proposed projects were narrowed to only those with an installed capacity of over 4 MW. However, smaller projects may also be feasible if a connection to the Canadian grid is not developed, as long as those project costs remained below $0.10 per kWh, or a wholesale power purchase agreement with APC could be reached. None of the projects analyzed in Appendix H would have costs at or below $0.10 per kWh unless some grant funding for those projects can be obtained. November 2011 -Final Report 23 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Table 4.1 shows that, provided grant funding can be found for these four projects with installed capacities of over 4 MW, they would produce power for a low enough cost to be attractive to Yukon Energy. Representatives of Yukon Energy stated that they would purchase power for between $0.10 per kWh and $0.15 per kWh. Table 4-1: Comparison of Potential Project Costs and Required Power Prices Projects Over 4 MW in Capacity Project Configurations lD-70 lD-110 2D-110 Installed Capacity (kW) 4,400 7,300 6,500 Avg. Ann. Net Energy Output (MWh) 17,943 20,581 18,798 Estimated Capital Costs $17,229,000 $21,069,000 $16,750,000 Estimated Required Power Sales Rate with 50% Grant Funding* ($/kWh) 50% Grant-Full Year Sales** Source: Polarconsult Alaska, Inc., October 2011. * Grant funding is capped at $8,500,000. $0.102 $0.113 $0.097 3D-110 5,250 15,915 $13,765,000 $0.095 ** The estimated power sales rate includes a $0.02 per kWh wheeling charge for use of APC transmission lines. 4.4 OTHER INTANGIBLE PROJECT BENEFITS In addition to the obvious monetary benefits to the power producer, the Burro Creek hydroelectric project provides benefits to the public, including: ~ This completed facility will provide a reliable additional source of renewable energy that can be used to replace diesel generation when other hydroelectric facilities on the grid are not operable. ~ The completed facility could replace cruise ship generator power with shore power, reducing air emissions in the Skagway area in the summer season. ~ The completed facility will increase the reliability of power generation in the Upper Lynn Canal region. ~ Construction of this project will provide short term jobs in the area during construction, and a variety of employment opportunities over the long term for management, maintenance, operations, and repairs. ~ Economic multipliers in the local economy due to the fact that more energy will be generated from local resources and local labor vs. imported diesel or bunker fuels. ~ Secondary benefits from having more stably-priced hydropower on the local utility grid. ~ Reduced volume of hydrocarbon fuels being barged through the waters of Southeast, reducing the probability of fuel spills. This project fits well within the criteria for beneficial projects as evaluated by the Alaska Energy Authority. November 2011-Final Report 24 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study 5.0 CONCLUSIONS AND RECOMMENDATIONS Polarconsult Alaska, Inc. There is a viable run-of-river hydroelectric resource at Burro Creek. A range of project configurations all using Federal land above BCH property appear to be viable provided a market develops for the power they would produce. These projects have capacities of 3.4 to 7.3 MW and annual generation potential of 13,127 to 20,581 MWh. The specific project configuration that warrants development will depend on the needs of the market it would serve. Capital cost estimates and some financial scenarios for select project configurations are presented in Appendix H. If the entire output of the most economical project configuration (Configuration 30-70) can be sold, the sales price is estimated at 12 cents per kWh, assuming a debt-financed project. Different business models or equity structures would result in higher or lower energy pricing. At this time, there is not a market for the full output of a project at Burro Creek of this size. Smaller projects down to the existing 15 kW project are also technically viable, however they would require higher per kWh sales prices to be economically viable for sale to the Upper Lynn Canal market. There are a number of emerging market opportunities in the Upper Lynn Canal region that may present a market for the full output of Burro Creek, and that have similar development schedules as a Burro Creek project. Because the market for the output of this project is still developing, there is some latitude to tailor the installed capacity of the project to market demand. This can be accomplished by adjusting the diversion location and/or the design flow, as neither parameter is strongly constrained by the characteristics of the resource at Burro Creek. 5.1 DEVELOPMENT PLAN & SCHEDULE The estimated development schedule for a Burro Creek project is summarized in the following figure. Figure 5-1 assumes that a market for the power is secured in the first half of 2012 to a degree that justifies expenditure of pre-development costs. Based on assessment of the current market, this is an ambitious goal that depends on the outcome of future discussions between BCH and potential customers as discussed in Section 4. If securing a buyer for the project output is delayed, the remainder of the development schedule will be extended forward in time. Based on available data, the project can be operational in as little as 5 years after a buyer for the project output is secured and a 'go' decision is made for the project. This is based on either use of the PERC Integrated Licensing Process or obtaining a PERC exemption from licensing, and a two-year construction schedule. Complications in the permitting, financing, or construction phases of project development could result in delays in this project development schedule. November 2011-Final Report 25 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Polarconsult Alaska, Inc. Figure 5-1: Project Development Schedule 5.2 RECOMMENDATIONS FOR IMPLEMENTATION The following actions are recommended to continue advancing Burro Creek, and to position Burro Creek for development as these emerging markets mature: ? Contact the Regulatory Commission of Alaska (RCA) to determine how best to move forward. The RCA governs sales of power in Alaska, and it is important to understand the conditions under which a company can sell power to various customers. In general, an independent power producer such as Burro Creek cannot sell to more than 10 customers or over $50,000 worth of power per year without becoming a certified utility. In addition, RCA generally will not allow two certified utilities within one service area However, the RCA Commissioners have the final say on such projects, and can make exceptions to their regulations as they determine is in the public interest. Appendix F contains the Alaska Statute language that is pertinent to this project. ? Continue stream gauging at Burro Creek to characterize the resource potential. ? Monitor future land use planning and management decisions for the BLM land west of Burro Creek to insure future management decisions do not preclude development of a hydro project in this area. ? Maintain Burro Creek as a generation resource in regional energy planning documents, such as the Southeast Alaska Integrated Resource Plan, currently under development by the AEA. ? Contact Yukon Energy to discuss the possibility of that company extending its power transmission line south to the Upper Lynn Canal system, and a possible power purchase agreement. ? Contact the developers of the Palmer Mine to monitor the progress of that project, and if and when development is assured, to discuss possible power purchase agreements. November 2011 Final Report 26 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Pola"onsult Alaska, Inc ~ ~ Contact APC to discuss the conditions under which they may be willing to purchase wholesale power from BCH. ~ Contact IPEC to discuss a possible power purchase agreement, keeping in mind that other market opportunities may need to exist in order to make this market viable. ~ Contact possible funding sources to identify grants and loan programs that may reduce the cost of energy from the Burro Creek project. November 2011-Final Report 27 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study November 2011-Final Report Polarconsult Alaska, Inc. 28 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Polarcon,ult Alaska, Inc. fl, APPENDIX A-MAPS AND FIGURES November 2011 Final Report Burro Creek Holdings, LLC Burro Creek Hydroelectric Study November 2011-Final Report Polarconsult Alaska, Inc. Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Polarconsult Alaska, Inc. Figure A-1: Project Overview and Location Map STATE INDEX MAP BARROW 0 2110 F3 F3 FAIRBANKS ANCHORAGE PROJECT VIC INITY MAP November 2011-Final Report !IUD LOCA]ON MAP 0 E3 E3 MILES SKAGWAY 2 SKAGWAY BURRO CREEK PROPERTY 4 ""-(USS 1560) A-1 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Polarconsult Alaska, Inc. Figure A-2: Potential Diversion Sites and Drainage Basins November 2011-Final Report BASIN ABOVE DIVERSION 3 10 .44 sa. MI. Gr Dyee Pt y BASIN ABOVE DIVERSION 5 ~··""'~r..t---12.33 SQ. MI. 1/2 E3 BASIN ABOVE STREAM GAUGING STATION 12 .39 sa. MI. SCALE IN UILES A-2 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Polarconsult Alaska, Inc. Figure A-3: Map of Project Configurations on USS 1560 November 2011-Final Report A-3 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Polarconsult Alaska, Inc. Figure A-4: Map of Project Configurations Using Federal Lands November 2011-Final Report A-4 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Polarconsult Alaska, Inc. Figure A-5: Map of Transmission Routes November 2011-Final Report OVERLAND POWER ROUTE TO SKAGWAY (NEW OH: 3.5 Ml) (NEW BURIED: 2.3 Ml) (UPGRADE 11& BURIED TO 31& BURIED: 2.7 Ml) UPGRADE 1 t& OH TO 31& OH: 2. 7 Ml) A-5 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study November 2011-Final Report Polarconsult Alaska, Inc. Burro Creek Holdings, LLC Burro Creek Hydroelectric Study APPENDIX B -PHOTOGRAPHS November 2011 -Final Report Burro Creek Holdings, LLC Burro Creek Hydroelectric Study November 2011-Final Report Pola<<onsult Alaska, Inc ~ Burro Creek Holdings, LLC Burro Creek Hydroelectric Study November 2011-Final Report Polan:onsult Alaska, Inc. G Photograph B-1: Burro Creek Site from Lynn Canal View of USS 1560 looking northwest from Lynn Canal. The main cabin and outbuildings are visible near tidewater. Photograph B-2: Burro Creek Waterfall, Looking Upstream This waterfall is located at mile 0.15 of Burro Creek. Burro Creek is flowing at 70 cfs. May 11, 2010. Polarconsult. Photograph B-3: Burro Creek Gauging Station, Looking Downstream The stilling tube that houses the pressure transducer is visible in this view. A flexible metal conduit housing the power cable/ vent tube extends up from the stilling tube towards the log crib where the data logger is mounted. The conduit is anchored to bedrock. Burro Creek is flowing at 70 cfs in this photo. May 10, 2010. Polarconsult. B-1 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study November 2011-Final Report Polarconsult Alaska, Inc. Photograph B-4: Existing Burro Creek Intake, Looking Upstream View at the existing hydro intake on Burro Creek at the 235-foot elevation. The diversion structure is a log pinned into bedrock at the head of a series of rock chutes and cascades. The existing diversion and intake is past its serviceable life and requires repair or replacement. Burro Creek is flowing at 11 cfs. December 16, 2009. Polarconsult. Photograph B-5: Existing Burro Creek Intake Screening Box View of existing screening box looking upstream. December 16, 2009. Polarconsult. Photograph B-6: Existing Burro Creek Intake View of existing diversion structure during summer. Burro Creek is flowing at 70 cfs. May 10, 2010. Polarconsult. B-2 Burro Creek Holdings, LLC Burro Creek Polarconsult Alaska, Inc. Photograph B-7: Burro Creek from Skagway ........ · .~:!!'.f~r. November 2011 -Final Report B-3 Burro Creek Holdings, LLC Burro Creek Hvdroelectric Stu November 2011-Final Report Polarconsult Alaska, Inc. Photograph B-8: Burro Creek Gauging Station ' View of Burro Creek gauging station and creek section to bank full flow. Burro Creek is flowing at 70 cfs. May 10, 2010. Polarconsult. B-4 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study November 2011-Final Report Polarconsult Alaska, Inc. Photograph B-9: Typical Terrain and Vegetation in Project Area Foot path to the existing intake from the dock. This terrain and vegetation is representative of conditions on USS 1560 where access trails or penstocks would be located. May 11, 2010. Polarconsult. Photograph B-10: Existing Penstock View looking up the existing penstock from approximately station 8+50. Most of the penstock is installed on grade or above grade on timber blocking. Thrust forces are restrained by a combination of timber blocking and cables anchored to rock bolts or trees. The penstock has significant deferred maintenance, but is in serviceable condition. At this location, the thrust restraint cables appear to need adjustment as the pipe is falling over. May 11, 2010. Polarconsult. B-5 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study November 2011-Final Report Polarconsult Alaska, Inc. Photograph B-11: Existing Penstock View of existing penstock looking up from approximately station 8+00. The penstock is resting directly on grade in this area. May 11, 2010. Polarconsult. Photograph B-12: Existing Penstock View of existing penstock looking down from approximately station 11 +00. The penstock is supported by timber blocking and cables in this area. May 11, 2010. Polarconsult. Photograph B-13: Existing Powerhouse View of existing penstock entering existing powerhouse. May 11, 2010. Polarconsult. B-6 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study November 2011-Final Report Polarconsult Alaska, Inc. "- Photograph B-14: Existing Turbine and Generator Burro Creek currently generates up to 15 kW of power with a single jet Pelton- type wheel driving a 15 kW 3- phase alternator. The turbine governor is a Woodward UG8 mechanical governor. May 10, 2010. Polarconsult. Photograph B-15: Burro Creek at USS 1560 Property Line View looking downstream Burro Creek in the vicinity of the westerly property line of USS 1560. This view is typical of the creek bed and grade throughout this reach. May 11, 2010. Polarconsult. B-7 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study November 2011 -Final Report Polo<eonsult Alosko, Inc'S, B-8 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study APPENDIX C-HYDROLOGY DATA C.1: Available Hydrology Data pages C-1 to C-6 C.2: Burro Creek Record Extension pages C-7 to C-9 C.3: Burro Creek Hydrology Model page C-10 C.4: Burro Creek Gauging Station Data pages C-11 to C-25 November 2011-Final Report Burro Creek Holdings, LLC Burro Creek Hydroelectric Study November 2011-Final Report Pola•mnsult Alaska, Inc~ Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Pola"onsult Alaska, Inc~ This Appendix summarizes the hydrology data collected and used for this study. Approximately 1.8 years of hydrology data have been collected at Burro Creek to date. The hydrology information described in this Section is used to determine the appropriate installed capacity of the hydroelectric project, evaluate the expected performance of the project, and determine the magnitude of flood flows on each creek. Moreover, this hydrology information can help assess the effect the project may have on the natural environment. C.l AVAILABLE HYDROLOGY DATA Substantially all of the flow in Burro Creek originates as precipitation falling within the Burro Creek basin. Small glaciers within the basin and alpine groundwater systems make very minor contributions. The average annual precipitation in the Burro Creek basin is unknown. Total annual discharge in Burro Creek (calculated as described in this Appendix) amounts to direct precipitation of approximately 40 inches annually. Actual basin precipitation is higher than this due to evaporation, sublimation, and transpiration. These observations are consistent with 1-to- 2,500,000 scale maps of the region that indicate precipitation in the Burro Creek basin and in the Skagway vicinity is approximately 80 inches annually 5. Total annual precipitation in Skagway is only 26 inches. The difference between measured precipitation in Skagway and measured flows at Burro Creek is attributed to micro-climate variations in the mountainous terrain. C.l.l Site and Gauging Station Description The Burro Creek gauging station is located at river mile 0.01 at an elevation of approximately 25 feet. It is approximately 375 feet upstream from the log footbridge across Burro Creek, and 275 feet downstream of a prominent waterfall. The gauge is installed in a natural pool in Burro Creek. The outlet control for this pool is a series of large boulders interlocked with smaller bed materials and resting on bedrock. This outlet appears relatively stable, but could experience scour during major flood events. The gauging station was installed on December 17, 2009. The station has a 0 to 5 psi Acculevel vented pressure transducer manufactured by Keller America, Inc. The sensor is installed in a three-inch diameter HOPE stilling tube mounted to a bedrock wall on the south bank of Burro Creek. The stilling tube extends into the natural pool, and the sensor is mounted approximately two feet below annual low water levels to protect it from freezing. This sensor is fitted to a MONITOR-1 data logger manufactured by Sutron, Inc. 6 The data logger and power supply are inside weather tight enclosures mounted on an existing log crib located on rock above the south bank of Burro Creek. The sensor zero mark is the station zero datum. A staff board is not installed at the gauging station. The top of the upstream rock bolt on the second bracket down from the top of the stilling tube is at an elevation of +4.26 feet in the station datum. The logger is programmed to record stage, battery level, and on-board temperature at 15-minute intervals. Log data is downloaded on a monthly basis by BCH personnel. 5 USGS Water Resources Investigation Report 93-4179, Plate 2. (Jones and Fahl). 6 The logger was initially deployed with five AA lithium batteries, but these were replaced with a 7 amp- hour 12 volt AGM lead-acid battery and 9 watt amorphous silicon solar panel on March 5, 2010. This power supply remains in service at the gauging station. November 2011-Final Report C-1 = 0 II ~ ! i !:!:. I ] g ~ Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Photograph B-3 and B-8 in Appendix B show the gauging station. It's location is shown on Map A-3. Stage data is presented in Figure C-1. Daily station records are presented in Section C.4. 6.25 6.00 5.75 5.50 5.25 5.00 4.75 4.50 4.25 4.00 3.75 3.50 3.25 3.00 2.75 2.50 2.25 2.00 1.75 Figure C-1: Burro Creek Stage Data 12/1/09 1/26/10 3/23/10 5/18/10 7/13/10 9/7/10 11/2/10 12/28/1 2/22/11 4/19/11 6/14/11 8/9/11 10/4/11 Source: Polarconsult Alaska, Inc., 2011. C.1.2 Flow Measurements and Station Calibration Stream flow in Burro Creek was measured during Polarconsult site visits in December 2009, May 2010, and September 2011 (Table C-1). Table C-1: Burro Creek Flow Measurements Date(Time Party Location Flow Stage Method I (cfs) (ft) Egui,~;;ment Burro Creek Gauge Station Below Falls 12/17109 15:30 Groves I Wrentmore At log bridge 375' below gauge 11.0 2.23 Marsh McBirneyill 12117109 16:00 Groves I Wrentmore 200' reach of stream below gauge 11.3 2.23 Hanna Meter (21 5110110 10:50 Groves I McClendon 200' reach of stream below gauge 76.0 3.46 Hanna Meter 5/10/10 11:40 Groves I McClendon 200' reach of stream above gauge 83.0 3.45 Hanna Meter 9126111 9:00 Groves I McClendon 300' reach -gauge to ab. log bridge 47.8 3.25 Hanna Meter 9126/11 9:30 Groves I McClendon 500' reach-ab. falls to ab. log bridge 66.2 3.25 Hanna Meter 9126111 10:00 McClendon I Groves At gauge pool 59 3.25 Marsh McBirney 9126111 10:45 McClendon I Groves At ~au~e eool 50 3.25 Marsh McBirne~ Source: Polarconsult Alaska, Inc., 2011. (1) Current velocity stream flow method with March McBirney Flowmate 2000 current velocity meter. (2) Sudden dose salt integration stream flow method with Hanna HI 9828 conductivity meter. November 2011-Final Report C-2 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Polmon•ult Ala•ka, Inc 4 To calibrate the gauging station, Polarconsult performed seven flow measurements to establish three stage-discharge points at the stream gauging station (Table C-1). The resulting preliminary stage-discharge rating curve for the station is presented in Figure C-2. The stage- discharge equations and methodology are discussed in this section and the equation parameters are summarized in Tables C-2 and C-3. More measurements are warranted to develop a final rating curve for the station. The existing flow measurements and calibrated sections of the stage discharge curve have good confidence at low and medium flows, which are of primary interest for hydropower assessment. Because there are few flow measurements at the gauging station, the rating curve is considered preliminary. Collection of additional flow measurements is recommended to continue developing the rating curve for the station. Additional measurements at high flows would improve estimates of infrequent high flow events that have limited hydropower value, but are important for determining flood flows important for design of the diversion structure. Additional measurements at moderate and low flows would increase confidence in estimates of the available hydropower resource. The stage-discharge curve for the gauging station was developed using Manning's equation for open channel flow (Equation C-1). Equation C-1: Q = 1.49 n -t A R 213 So 112 Where: Q =flow in cubic feet per second n =roughness coefficient A = area, in square feet R =hydraulic radius(= AlP) P = wetted perimeter in feet So = slope in feet per feet Initial values of So and n were selected based on the physical characteristics of the site, and adjusted within reason until calculated flows and measured flows were in good agreement. These values are listed in Table C-2. The area (A) and wetted perimeter (P) of the creek at the gauging station are both functions of the stage and the shape of the creek bed. A model of the creek bed profile was developed for the gauging station, and was used to compute A and P over the range of stages. Models of the creek bed section profile are listed in Table C-3 and an example illustration is shown in Figure C-2. The computed A and P were then entered into Equation C-1 to determine flow from the recorded stage data. Table C-2: Manning Equation Parameters for Gauging Station N So A p Gauging Station and Epoch (roughness (Slope in (Sectional area, (Wetted coefficient) feet/foot) sguare feet) _eerimeter, feet) Burro Creek Gauging Station 0.04 0.012 Calculated from creek section (2009 -2011) Earameters listed in Table C-3. November 2011-Final Report C-3 -;E Qj a .... "' c c ·-c Qj 0 QD ·-"' .... ... "' V'J~ Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Pola«on>ull Alaska, Inc.~ Table C-3: Creek Sections used to Calculate A and Pat Gauging Stations Gauging Station Burro Creek (2009 -2011) Segment L2 Slope 1.00 Stage 6.43' Source: Polarconsult Alaska, Inc., 2011. SegmentL1 Slope= 0.20 Stage = 4.36' Center 5.0' wide at 1.57' SegmentR1 Slope = 10.0' Stage = 8.43' Figure C-2: Model Used for Creek Section at Burro Creek 2 0 0 .-I a: .... c ~.--.-.-.-.-.-.-.~se~g~m:e:n:t:Ll~-------.-.-.._ .. ~::~.l E .~ Center v• 5 10 15 20 25 30 35 Creek Profile at Gauging Station in feet (looking downstream) Source: Polarconsult Alaska, Inc., 2011. Figure C-3: Burro Creek Stream Gauge Rating Curve 10 • Stage and Discharge Measurements -Rating Curve for Gauging Station 1 0.1 1 Source: Polarconsult Alaska, Inc., 2011. November 2011-Final Report 10 Discharge (cfs) 100 SegmentR2 Slope 0.01' Stage= 9.43' 40 1000 C-4 1000 100 iii ~ Qj ~ "' ..t:. u "' 0 10 Burro Creek Holdings, LL C Burro Creek Hydroelectric Study C.1.3 Calculated Flow and Burro Creek Hydrograph Polarconsult Alaska, Inc. Each stage reading recorded by the stream gauge is converted to a calculated flow using the rating curve described in Section C.1.2. The result is a calculated hydrograph for Burro Creek shown in Figure C-4. Some of the stage data in Figure C-1 reflects anomalous data due to sensor errors or ice affected readings during winter cold spells. These artifacts have been removed from the calculated flow hydrograph. Figure C-4: Burro Creek Hydrograph Source: Polarconsult Alaska, Inc., 2011. November 2011-Final Report -Flow, Calculated from Stage • Flow, Measured 58.4 C-5 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study C.2 BURRO CREEK RECORD EXTENSION Pol•<eonsult Al.,k•, Inc~ While the 1.8 years of data at Burro Creek provides a good basis for understanding the hydrology of this resource, it is beneficial to have a longer period of record to improve understanding of the variability of flow in the resource. This longer period of record can be synthesized by correlating the 1.8 year record at Burro Creek with concurrent hydrographs of nearby streams with longer periods of record. Nearby streams that are suitable candidates for correlation are listed in Table C-4. Of these, Taiya River was selected for extending the Burro Creek record because it provided a good correlation (R 2 = 0.86) and has a long period of record (14.8 years). Table C-4: Summary of Hydrology Data for Burro Creek and Nearby Resources USGS Basin Site Begin End Number Location Size Elevation Latitude!11 Longitude(ll of Daily Gauge ID (s9.mi.) (ft) (1) Date Date Records(31 Burro Creek 12.39 25 59° 26' 02" 135° 22' 11" 12/18/09 10/12/11 661 below Falls Kasidaya 21.3 500 59° 24' 19" 135° 19' 47" 1/1/99 3/29/02 1,183 Creek Taiya River 15056210 179 20 59° 30' 49" 135° 21' 7" 1/1/71 11/18/77 2,514 10/1/03 10/12/11 2,925 Kakuhan 15056030 1.53 25 59° 17' 32" 135° 22' 01" 5/14/97 10/12/11 5,115 Creek Source: Polarconsult Alaska, Inc., 2011. (1) Coordinates for U.S. Geological Survey gauges are in North American Datum of 1927 (NAD 27). All other coordinates are in NAD 83. (2) Count of available daily records. Gauges may have been in service for a longer period. (3) The record count for current gauging stations reflects data through the most recent download on October 12, 2011 . The Burro Creek and Taiya River basins are geographically close to each other, and are expected to experience similar weather systems and events. The basins are similar in many respects, but do have several significant differences: 1. Size. The Burro Creek basin area is approximately 7% of the Taiya River basin area. All else equal, the smaller Burro Creek basin can be expected to experience more volatile discharge, such as more severe droughts and floods. 2. Glaciation. Approximately 3% of the Burro Creek basin is glaciated, whereas approximately 22% of the Taiya River basin is glaciated. Seasonal melt of the glaciers in the Taiya River basin will result in Taiya River having relatively greater discharge that Burro Creek during the summer months. 3. Basin Orientation. The Burro Creek basin is oriented facing east-southeast, whereas the Taiya River basin is oriented facing south-southeast. The Taiya River basin is somewhat better oriented to capture precipitation from storms from the Gulf of Alaska than the Burro Creek basin. November 2011 -Final Report C-6 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study 4. Altitude. The average elevation of the Burro Creek basin is approximately 3,100'. This is significantly lower than the Taiya River basin, which has an average elevation of approximately 3,500'. Taiya River's higher basin is consistent with its greater glaciation, as the higher basin can be expected to receive more precipitation and colder temperatures. The average daily flows at Burro Creek and Taiya River over their 1.8 year common period of record have a correlation of 0.61. Based upon analysis of the data, a piece-wise linear model was developed to calculate expected Burro Creek flow from the Taiya River flow data. This more complex model accounts for some of the subtle differences between the Taiya River and Burro Creek basins by applying different relationships for different seasons and flow regimes. Table C-5 summarizes the model parameters. The expected Burro Creek flows calculated using this model have a correlation with the Burro Creek gauging station daily flows of 0.86. These models are shown graphically in Figure C-5. Table C-5: Burro Creek Flow Model Parameters Taiya River Flow 0 to 145 cfs 145 to 920 cfs 920+ cfs Model For October 1 -June 30 Equation For Burro Creek Flow QBurro = 0.110 QTaiya-0.3 QBurro = 0.110 QTaiya -1.0 Qsurro = 0.030 QTaiya + 73 Source: Polarconsult Alaska, Inc., 2011. Model For August 1-August 31 Taiya River Flow 0 to 85 cfs 85+ cfs Equation For Burro Creek Flow QBurro = 0.110 QTaiya-0.3 Qsurro = 0.024 QTaiya + 7.0 Model flows for the months of July and September are calculated as a linear ramping function between the two models above, with the October-June model weight decreasing from 100% to 0% during July, and vice versa during September. November 2011-Final Report C-7 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Polmonsult Alaska, Inc.~ Figure C-5: Burro Creek and Taiya River Flow Data and Models 1,000 -.--------__;:'------~--------''-----------------------, 100 10 1 -standard Linear Correlation Model (R] = 0.61) 6. Daily Flows, October-June ~Flow Model, October-June } 0 Daily Flows, July-September (R = o 86) -Flow Model, August* • Flows for the months of July and September are calcuated as a weighted average of the two models shown. The June model receives 100% weighting on July 1st, decreasing to 0% by July 31st. The opposite transition occurs for the month of September. 10 100 Source: Polarconsult Alaska, Inc., 2011. Taiya River Flow (cfs) 1,000 The extended Burro Creek record using the Taiya River record set is presented graphically in Figure C-6. Flow statistics calculated using the 14.8 years of Taiya River record are presented graphically in Figure C-7. November 2011-Final Report C-8 10,000 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Polarconsult Alaska, Inc. Figure C-6: Extended Burro Creek Record Using Taiya River Flow Model 350 300 250 Ill I I ,, Ill -u 'i 2_ c 200 1 I I I I I II I I I I ...:.2 Ill Ill Ill c ... Ill v 1C 0 Ill :: ~ = ... Ill 8 ! ~ 150 1 II .I I I I II Ill I II I .1.1 u Ill ll. >C ... 100 i I II I -1 •• 1 1 ~n 1"111 n •n 1 I "111 1 50 0 --. -:;::.:y.. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~..,, ..... ,~ ~~ .... ,~ ~..,\ ..,, ... \ ~~ .... ,~ ~~ ..,, ... ,. ~~ .... ,~ ~~ .... ,~ November 2011 -Final Report 350 ,------ -Burro Creek Flow Record --Extended Burro Creek Flow Record 300 250 200 150 100 50 0 +-~-----~--.------.----~--------~------.--r~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ v v ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ C-9 Ill 'ti ,.j .. 0 u Gl a:: "C Gl "C c:: Gl .... >C w ~ Gl Gl .. u 0 .. .. :I 11:1 .. 0 .... Ill u :;:; Ill :;:; "' ~ :1 0 i:i: ~ ·; Q Burro Creek Holdings, LLC Burro Creek Hydroelectric Study C.3 BURRO CREEK HYDROLOGY MODEL Polarconsult Alaska, Inc. The extended hydrology record for Burro Creek forms the basis of a hydrology model used to estimate the energy generation potential of various hydroelectric project configurations considered in this study. Flow statistics were calculated on a daily basis using the 14.7 year extended record for Burro Creek. The resulting flow statistics for the Burro Creek gauging station are presented in Figure C-7. Figure C-7: Daily Flow Statistics for Extended Burro Creek Flow Record 350 300 -Maximum Daily Flow -Mean Daily Flow -Median Daily Flow 250 -Minimum Daily Flow 200 150 100 so 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Statistics are based on the extended record for Burro Creek compiled using Taiya River record from USGS gauge #15056210. Correlation between calculated flow at Burro Creek gauge and Taiya River record extension is R11 2 = 0.81 for the period 12/19/2009-8/17/2011. Daily flow statistics shown in this figure are based on 5,383 daily flow records at Taiya River from 1/1/1971-11/18 1977 and 10/1/2003-8/9/2011. Source: Polarconsult Alaska, Inc., 2011. Flows at the various diversion sites were estimated by prorating the model flow at the gauging station by relative basin areas (Table C-6, Figure A-2). Project flow statistics for a given project configuration were then estimated by clipping the complete extended flow record at the design flow, and then computing the median daily flow from the resulting clipped data set. Figure C-8 provides an example of the resulting estimated project flow for a 70 cfs project with a diversion at 800' and a powerhouse at the existing powerhouse site. November 2011-Final Report C-10 Burro Creek Holdings, LLC Polarconsult Alaska, Inc. Burro Creek Hydroelectric Study Date Record Recorded Stage (ft, station datum Calculated Flow (cfs) I Air Temperature (F) (Note 1) I Battery Notes Count Minimum Average Maximum M;n;m,m A.ocog• M,;m,miM;n;m"m A.ocog• M,;m,~~ 12/18/09 88 2.22 2.24 2.28 10.9 11.~~ 31.41 32.3 35.7 (2) 12/19/09 96 2.20 2.21 2.26 10.1 10.6 24.4 27.9 32.0 . 12/20/09 96 2.19 2.26 2.33 10.0 12.1 14.3 17.6 20.2 24.8 15.57 12/21/09 96 2.28 2.35 2.46 12.7 15.1 19.1 14.4 16.4 19.1 15.47 12/22/09 96 2.44 2.55 2.68 18.3 22.8 29.0 14.1 16.1 19.9 15.44 12/23/09 96 2.30 2.50 2.72 13.2 21.3 30.8 20.2 22.2 23.6 15.59 12/24/09 96 2.22 2.26 2.32 10.7 12.0 13.9 23.7 25.5 28.3 15.66 12/25/09 96 2.17 2.20 2.22 9.3 10.1 10.8 28.5 30.1 31.2 15.75 12/26/09 96 2.15 2.21 2.26 8.9 10.5 11.9 31.11 31.2 31.5 15.76 12/27/09 96 2.22 2.24 2.26 10.7 11.3 12.1 31.2 31.4 31.8 15.75 12/28/09 96 2.26 2.28 2.30 12.1 12.8 13.2 31.6 31.7 31.9 15.75 12/29/09 96 2.23 2.26 2.28 11.1 11.9 12.8 27.3 29.6 32.0 15.69 12/30/09 96 2.20 2.22 2.23 10.2 10.7 11.2 21.7 26.2 27.7 15.58 12/31/09 96 2.15 2.21 2.26 8.8 10.6 12.1 14.1 17.1 21.7 15.31 1/1/10 96 2.26 2.53 3.07 12.1 23.3 51.6 11.4 12.7 14.5 15.17 1/2/10 96 3.07 3.22 3.37 51.5 62.3 74.1 10.8 12.3 14.1 15.14 1/3/10 96 3.20 3.35 3.45 60.5 72.1 80.3 11.2 13.9 17.4 15.19 1/4/10 96 2.88 3.02 3.22 39.4 48.7 62.2 14.3 16.4 18.3 15.26 1/5/10 96 2.59 2.76 2.87 24.7 32.9 39.2 16.2 17.7 20.0 15.28 1/6/10 96 2.18 2.46 2.76 9.6 20.0 32.7 17.7 19.8 24.7 15.35 1/7/10 96 2.11 2.15 2.18 7.8 8.7 9.6 24.9 26.6 29.7 15.56 1/8/10 96 2.12 2.14 2.16 7.9 8.4 9.0 29.8 30.9 31.5 15.67 1/9/10 96 2.14 2.31 2.46 8.5 13.9 18.9 30.8 31.7 32.9 15.67 1/10/10 96 t=Im 2.29 2.40 10.7 13.0 16.7 28.6 31.0 32.2 15.66 1/11/10 96 2.17 2.21 2.24 9.5 10.5 11.5 11.5 18.4 28.5 15.32 1/12/10 96 2.20 2.21 2.23 10.3 10.6 11.1 10.0 10.3 10.0 15.05 1/13/10 96 2.17 2.18 2.20 9.4 9.8 10.3 11.5 14.8 19.8 15.17 1/14/10 96 2.15 2.17 2.18 8.7 9.3 9.6 20.1 23.1 27.2 15.41 1/15/10 96 2.14 2.16 2.18 8.5 9.0 9.5 25.1 26.3 28.1 15.50 1/16/10 96 2.13 2.18 2.28 8.4 9.8 12.6 28.2 32.5 34.7 15.66 1/17/10 96 2.23 2.47 2.7H. 19.9 31.8 31.2 32.5 34.2 15.65 1/18/10 96 2.32 2.41 2.56 ·"' 17.4 23.2 31.1 32.0 32.7 15.64 1/19/10 96 2.26 2.29 2.33 11.9 12.9 14.2 29.4 31.2 32.8 15.61 1/20/10 96 2.23 2.24 2.26 11.0 11.4 12.1 29.6 30.3 31.8 15.57 1/21/10 96 2.20 2.21 2.23 10.2 10.6 11.0 29.2 30.3 32.1 15.55 1/22/10 96 2.18 2.19 2.20 9.7 10.0 10.3 29.4 31.4 34.2 15.58 1/23/10 96 2.17 2.18 2.19 9.3 9.6 9.9 31.1 32.0 34.7 15.58 1/24/10 96 2.16 2.17 2.18 9.1 9.3 9.5 27.0 29.1 33.7 15.48 1/25/10 96 2.15 2.16 2.17 8.8 9.0 9.2 24.1 25.7 27.9 15.36 1/26/10 96 2.14 2.15 2.16 8.5 8.8 9.0 22.4 23.6 25.6 15.29 1/27/10 9~ '"ffi 8.7 24.3 25.5 26.3 15.35 1/28/10 96 2.14 2.14 8.4 8.5 26.7 29.2 32.3 15.44 1/29/10 96 2.12 2.13 2.14 8.1 8.3 8.4 26.6 30.1 34.4 15.45 1/30/10 96 2.12 2.12 2.15 8.0 8.1 8.7 31.5 32.6 34.5 15.52 1/31/10 96 2.11 2.12 2.13 7.9 8.0 8.2 31.7 32.3 33.8 15.50 2/1/10 96 2.11 2.11 2.13 7.8 7.9 8.3 31.4 32.1 33.7 15.48 2/2/10 96 2.10 2.11 2.12 7.6 7.8 7.9 30.5 31.7 33.0 15.45 2/3/10 96 2.10 I 2.10 2.11 7.5 7.6 7.8 29.7 31.0 33.6 15.41 2/4/10 96 2.09 i 2.10 2.10 7.4 7.5 7.6 "ii 32.0 15.32 2/5/10 96 2.09 2.09 2.10 7.2 7.3 7.5 28. 30.5 15.30 2/6/10 96 2.09 2.09 2.10 7.2 7.3 7.6 28. 31.8 15.29 2/7/10 96 2.10 2.19 2.35 7.6 10.1 15.0 31.5 33.0 38.2 15.35 2/8/10 96 2.31 2.35 2.39 13.5 15.2 16.3 31.4 33.3 36.9 15.33 November 2011 Final Report Appendix C Section C.4 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Date Record Recorded Stage (ft, station datum Count Minimum Average Maximum 2/9/10 96 2.24 2.27 2.31 2/10/10 96 2.20 2.22 2.24 2/11/10 96 2.18 2.19 2.20 2/12/10 96 2.16 2.17 2.18 2/13/10 96 2.15 2.15 2.16 2/14/10 96 2.14 2.15 2.15 2/15/10 96 2.14 2.17 2.19 2/16/10 96 2.16 2.17 2.18 2/17/10 96 2.16 2.20 2.23 2/18/10 96 2.21 2.23 2.24 2/19/10 96 2.20 2.21 2.22 2/20/10 96 2.20 2.22 2.25 2/21/10 96 2.25 2.26 2.27 2/22/10 96 2.25 2.26 2.27 2/23/10 96 2.24 2.25 2.26 2/24/10 96 2.22 2.23 2.24 2/25/10 96 2.20 2.21 2.23 2/26/10 96 2.18 2.21 2.22 2/27/10 96 2.20 2.21 2.22 2/28/10 96 2.21 2.21 2.23 3/1/10 96 2.23 2.26 2.33 3/2/10 4 2.34 2.34 2.34 3/5/10 89 2.30 2.33 2.36 3/6/10 96 2.29 2.30 2.31 3/7/10 96 2.30 2.33 2.38 3/8/10 96 2.26 2.28 2.30 3/9/10 96 2.26 2.27 2.28 3/10/10 96 2.23 2.25 2.28 3/11/10 96 2.21 2.22 2.23 3/12/10 96 2.19 2.20 2.22 3/13/10 96 2.19 2.19 2.20 3/14/10 96 2.18 2.19 2.19 3/15/10 96 2.19 2.21 2.24 3/16/10 96 2.19 2.21 2.22 3/17/10 96 2.19 2.20 2.20 3/18/10 96 2.18 2.19 2.20 3/19/10 96 2.18 2.19 2.19 3/20/10 96 2.18 2.18 2.19 3/21/10 96 2.17 2.17 2.18 3/22/10 96 2.16 2.16 2.17 3/23/10 96 2.15 2.16 2.16 3/24/10 96 2.15 2.16 2.16 3/25/10 96 2.15 2.15 2.16 3/26/10 96 2.14 2.14 2.15 3/27/10 96 2.14 2.15 2.16 3/28/10 96 2.15 2.19 2.27 3/29/10 96 2.27 2.29 2.30 3/30/10 96 2.24 2.26 2.27 3/31/10 96 2.24 2.25 2.25 4/1/10 96 2.24 2.25 2.26 4/2/10 96 2.25 2.26 2.27 4/3/10 96 2.25 2.26 2.27 November 2011-Final Report Calculated Flow (cfs) Minimum Average Maximum 11.3 12.3 13.6 10.3 10.8 11.3 9.5 9.9 10.3 9.1 9.4 9.7 8.7 8.9 9.2 8.5 8.7 8.8 8.5 9.4 10.0 9.2 9.3 9.6 9.2 10.3 11.1 10.6 11.0 11.4 10.2 10.5 10.9 10.1 10.7 11.7 11.6 11.9 12.3 11.7 12.0 12.3 11.3 11.6 11.9 10.8 11.1 11.4 10.3 10.6 11.0 9.5 10.5 10.8 10.3 10.5 10.7 10.4 10.6 11.2 11.2 12.2 14.3 14.5 14.6 14.8 13.4 14.3 15.4 13.1 13.4 13.6 13.3 14.4 16.2 12.1 12.7 13.4 11.9 12.2 12.5 11.1 11.7 12.6 10.6 10.8 11.2 9.9 10.4 10.7 9.8 10.0 10.2 9.7 9.8 10.0 9.8 10.5 11.5 10.0 10.4 10.7 9.9 10.1 10.2 9.7 9.9 10.1 9.6 9.8 10.0 9.5 9.7 9.9 9.3 9.5 9.6 9.0 9.2 9.4 8.8 9.0 9.1 8.8 9.0 9.2 8.7 8.8 9.0 8.5 8.7 8.9 8.5 8.8 9.1 8.9 9.9 12.3 12.2 12.9 13.4 11.5 11.9 12.4 11.4 11.6 11.7 11.5 11.9 12.1 11.7 12.0 12.2 11.8 12.1 12.3 Polarconsult Alaska, Inc. Air Temperature (F) (Note 1) Minimum Average Maximum 31.3 32.9 35.1 29.9 30.9 33.8 29.5 30.5 32.6 30.7 32.0 33.7 29.5 31.2 33.5 31.9 33.6 36.1 31.9 34.5 37.5 31.1 33.6 37.2 33.2 37.5 40.1 29.2 32.7 36.8 28.7 30.2 32.5 27.9 30.0 33.6 27.0 28.9 31.3 25.4 28.0 31.6 25.5 28.1 31.8 30.5 31.7 33.8 31.1 32.4 35.6 32.6 35.2 37.7 27.6 30.7 37.4 31.1 31.8 34.7 31.2 31.6 33.6 33.3 33.4 33.5 32.4 34.7 42.5 31.3 33.2 34.5 30.0 33.1 35.9 27.5 30.3 35.1 29.1 31.5 34.0 29.1 31.6 36.1 30.1 32.1 37.0 30.3 33.0 38.0 29.5 30.5 32.9 31.0 31.4 32.9 31.2 31.8 34.4 30.2 32.5 36.1 33.2 34.4 39.0 32.1 35.1 41.0 29.8 33.3 40.2 31.7 33.5 37.5 27.4 30.8 37.6 26.1 28.6 32.3 30.2 32.2 36.9 30.9 31.9 34.4 31.4 32.6 36.2 27.8 31.3 37.2 31.1 34.8 41.2 32.6 35.6 42.3 32.5 36.6 43.1 28.0 34.3 45.5 33.3 36.4 41.6 32.7 35.6 43.5 33.1 36.4 41.8 32.6 37.0 46.0 Battery Voltage 15.29 15.21 15.14 15.16 15.09 15.12 15.09 15.00 15.10 14.87 14.67 14.53 14.30 14.11 13.96 13.94 13.75 13.53 13.07 12.84 12.50 12.31 13.00 12.98 13.19 13.20 13.13 13.21 13.29 13.28 13.18 13.20 13.28 13.23 13.32 13.33 13.36 13.32 13.26 13.33 13.33 13.34 13.35 13.38 13.39 13.34 13.40 13.41 13.41 13.42 13.40 13.40 Notes (3) Appendix C Section C.4 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Date Record Recorded Stage (ft, station datum Count Minimum Average Maximum 4/4/10 96 2.24 2.26 2.27 4/5/10 96 2.23 2.25 2.26 4/6/10 96 2.23 2.24 2.25 4/7/10 96 2.22 2.24 2.25 4/8/10 96 2.21 2.22 2.23 4/9/10 96 2.19 2.20 2.21 4/10/10 96 2.18 2.18 2.19 4/11/10 96 2.17 2.18 2.18 4/12/10 96 2.18 2.19 2.20 4/13/10 96 2.19 2.21 2.23 4/14/10 96 2.22 2.23 2.24 4/15/10 96 2.23 2.28 2.32 4/16/10 96 2.31 2.40 2.47 4/17/10 96 2.46 2.65 2.77 4/18/10 96 2.72 2.80 2.86 4/19/10 96 2.81 2.89 2.97 4/20/10 96 2.97 3.22 3.34 4/21/10 96 3.29 3.47 3.60 4/22/10 96 3.07 3.17 3.31 4/23/10 96 3.02 3.08 3.13 4/24/10 96 2.90 2.97 3.02 4/25/10 96 2.90 2.98 3.04 4/26/10 96 2.95 3.05 3.12 4/27/10 96 3.11 3.38 3.49 4/28/10 96 3.43 3.72 3.85 4/29/10 96 3.59 3.70 3.79 4/30/10 96 3.51 3.64 3.74 5/1/10 96 3.33 3.44 3.52 5/2/10 96 3.24 3.30 3.34 5/3/10 96 3.14 3.21 3.25 5/4/10 96 3.11 3.14 3.17 5/5/10 96 3.13 3.29 3.39 5/6/10 96 3.28 3.42 3.53 5/7/10 96 3.36 3.45 3.53 5/8/10 96 3.41 3.52 3.62 5/9/10 96 3.41 3.47 3.53 5/10/10 96 3.40 3.49 3.57 5/11/10 96 3.44 3.52 3.59 5/12/10 96 3.41 3.44 3.47 5/13/10 96 3.42 3.55 3.66 5/14/10 96 3.31 3.40 3.48 5/15/10 96 3.30 3.40 3.47 5/16/10 96 3.42 3.62 3.77 5/17/10 96 3.48 3.57 3.68 5/18/10 96 3.46 3.60 3.72 5/19/10 96 3.57 4.10 4.68 5/20/10 96 4.07 4.52 4.81 5/21/10 96 4.07 4.40 4.58 5/22/10 96 4.15 4.39 4.58 5/23/10 96 4.20 4.49 4.71 5/24/10 96 4.26 4.57 4.77 5/25/10 96 4.40 4.61 4.82 November 2011-Final Report Calculated Flow (cfs) Minimum Average Maximum 11.5 12.0 12.3 11.2 11.6 11.9 11.2 11.5 11.7 10.9 11.3 11.7 10.4 10.7 11.1 9.9 10.2 10.5 9.5 9.8 10.0 9.4 9.6 9.7 9.6 9.8 10.1 10.0 10.4 11.0 10.8 11.1 11.4 11.2 12.6 13.9 13.6 16.8 19.6 19.0 27.8 33.4 30.7 35.1 38.5 35.4 40.0 44.8 45.3 62.1 71.4 67.6 82.7 94.7 51.2 58.7 68.7 48.4 52.3 55.8 41.0 45.1 48.1 40.7 45.7 49.6 43.7 50.5 54.7 53.9 75.2 84.0 78.8 106.1 120.3 93.7 104.4 113.7 85.7 98.1 108.5 70.8 79.8 86.9 63.4 68.7 71.1 56.6 61.8 64.2 54.0 56.4 58.6 55.5 67.5 75.4 66.4 78.7 87.5 73.1 81.1 87.6 77.1 86.9 96.4 77.0 82.6 87.9 76.8 84.7 91.7 80.1 86.7 93.3 77.6 80.1 82.0 77.7 89.5 99.9 68.9 76.9 83.4 68.5 76.8 82.7 77.9 96.7 111.3 83.0 91.9 102.1 81.4 94.6 105.6 91.1 151.8 231.1 144.9 207.5 253.3 144.9 189.3 214.8 154.5 188.1 214.9 161.2 202.1 235.5 169.9 215.3 246.7 189.1 221.5 254.8 Polarconsult Alaska, Inc. Air Temperature (F) (Note 1) Minimum Average Maximum 30.9 37.3 47.1 27.9 34.7 44.2 31.6 36.1 44.5 28.2 33.6 41.4 30.0 33.4 38.7 27.3 32.8 42.0 27.4 32.5 41.8 27.2 31.9 40.6 26.0 32.1 44.8 34.5 38.8 45.2 40.3 42.9 47.8 30.0 38.4 52.8 30.6 37.9 55.3 36.4 42.2 56.5 35.2 40.3 48.2 36.4 41.2 49.2 36.3 39.7 46.8 34.3 38.7 44.8 35.9 41.0 58.7 34.7 40.7 60.2 30.8 40.1 65.9 34.1 42.6 67.1 37.4 45.3 56.5 36.5 45.2 56.0 38.4 46.9 72.3 37.6 43.2 55.0 37.4 41.8 51.1 36.8 42.5 54.6 38.7 44.9 58.3 33.8 43.8 72.0 39.0 45.9 59.9 36.5 45.1 64.9 36.9 45.1 76.6 37.7 47.8 79.0 36.1 45.4 77.5 32.9 44.5 77.0 33.2 45.3 80.1 42.0 50.3 82.2 40.3 46.4 57.1 40.3 46.2 55.2 37.2 46.8 65.8 39.4 48.8 75.8 37.4 47.2 76.9 33.6 46.6 82.1 37.5 49.9 83.7 40.5 48.3 74.3 36.5 46.0 74.0 41.8 51.2 79.8 38.2 45.4 67.3 38.5 49.7 85.7 40.9 51.4 84.7 38.7 48.3 77.1 Battery Voltage 13.42 13.42 13.40 13.39 13.43 13.42 13.34 13.30 13.31 13.43 13.44 13.40 13.42 13.42 13.45 13.45 13.42 13.44 13.44 13.45 13.37 13.42 13.46 13.44 13.46 13.43 13.46 13.46 13.47 13.45 13.47 13.41 13.46 13.45 13.42 13.35 13.36 13.46 13.44 13.48 13.47 13.46 13.47 13.39 13.46 13.44 13.36 13.43 13.35 13.39 13.42 13.37 Notes Appendix C Section C.4 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Date Record Recorded Stage (ft, station datum Count Minimum Average Maximum 5/26/10 96 4.43 4.71 4.97 5/27/10 96 4.51 4.74 4.92 5/28/10 96 4.66 4.93 5.29 5/29/10 96 4.59 4.92 5.23 5/30/10 96 4.53 4.78 5.05 5/31/10 96 4.41 4.71 5.01 6/1/10 96 4.41 4.59 4.78 6/2/10 96 4.28 4.45 4.61 6/3/10 96 4.46 4.79 5.04 6/4/10 96 4.10 4.42 4.63 6/5/10 96 3.97 4.12 4.29 6/6/10 96 3.97 4.15 4.29 6/7/10 96 4.01 4.20 4.43 6/8/10 96 4.01 4.20 4.40 6/9/10 96 4.02 4.18 4.36 6/10/10 96 4.08 4.29 4.50 6/11/10 96 4.09 4.26 4.43 6/12/10 96 4.10 4.22 4.32 6/13/10 96 3.88 4.08 4.24 6/14/10 96 3.70 3.83 3.93 6/15/10 96 3.69 3.73 3.77 6/16/10 96 3.71 3.78 3.83 6/17/10 96 3.73 3.81 3.87 6/18/10 96 3.75 3.86 3.93 6/19/10 96 3.79 3.87 3.93 6/20/10 96 3.81 3.90 3.98 6/21/10 96 3.84 4.10 4.25 6/22/10 96 4.05 4.22 4.35 6/23/10 96 4.00 4.20 4.79 6/24/10 96 4.61 4.94 5.24 6/25/10 96 4.39 4.51 4.66 6/26/10 96 4.05 4.26 4.45 6/27/10 96 3.89 3.97 4.04 6/28/10 96 3.75 3.93 4.07 6/29/10 96 3.59 3.70 3.78 6/30/10 96 3.60 3.92 4.68 7/1/10 96 4.11 4.36 4.61 7/2/10 96 3.84 3.96 4.14 7/3/10 96 3.77 3.83 3.90 7/4/10 96 3.78 4.15 4.56 7/5/10 96 4.08 4.28 4.48 7/6/10 96 3.92 4.16 4.53 7/7/10 96 4.36 4.79 5.23 7/8/10 96 4.09 4.38 4.67 7/9/10 96 3.96 4.14 4.29 7/10/10 96 3.98 4.20 4.46 7/11/10 96 4.10 4.36 4.56 7/12/10 96 3.72 3.95 4.16 7/13/10 96 3.67 3.71 3.78 7/14/10 96 3.66 3.71 3.81 7/15/10 96 3.61 3.73 3.82 7/16/10 96 3.58 3.62 3.66 November 2011-Final Report Calculated Flow (cfs) Minimum Average Maximum 193.6 236.4 281.3 204.9 241.9 272.4 228.6 274.9 342.2 217.4 273.4 329.3 208.1 248.3 295.8 190.4 237.1 287.7 190.7 217.9 248.0 171.9 196.5 219.9 197.1 249.9 294.1 149.4 192.4 222.5 133.1 152.1 173.4 133.6 155.4 174.1 138.3 162.0 193.4 137.9 161.5 188.1 139.2 159.5 182.9 146.6 174.6 202.7 147.2 170.0 192.4 149.0 164.5 177.5 122.6 146.7 167.0 104.1 117.8 128.4 102.6 107.4 111.7 105.4 112.4 117.1 106.8 115.7 122.1 108.8 120.4 128.4 113.0 122.2 129.0 115.7 124.9 134.5 119.2 149.7 168.6 142.4 164.0 181.2 136.6 162.8 249.2 220.0 276.9 331.3 187.1 204.9 227.9 142.9 170.5 196.2 124.3 133.1 141.6 109.1 128.8 145.6 93.8 104.2 112.3 94.7 131.3 231.1 149.5 183.2 220.3 119.0 132.6 154.3 110.9 117.9 125.5 112.4 157.2 212.8 146.2 173.1 200.4 127.0 157.5 207.9 183.3 251.4 330.9 147.6 186.6 229.2 132.2 153.8 173.7 134.1 162.4 197.5 148.8 184.0 212.0 106.3 131.1 156.2 100.8 105.5 111.9 99.9 105.3 115.0 95.2 106.9 117.0 92.5 96.3 100.4 Polarconsult Alaska, Inc. Air Temperature (F) (Note 1) Minimum Average Maximum 40.9 49.5 74.8 41.4 52.0 77.6 40.8 50.2 75.3 40.1 51.0 77.4 41.5 51.9 82.8 39.8 50.1 76.7 42.8 52.0 82.9 40.8 49.7 74.2 41.4 48.3 64.9 42.2 50.5 74.7 40.8 49.7 69.8 42.8 53.8 82.2 39.7 52.0 86.7 41.7 54.1 90.6 43.4 53.0 81.9 42.4 54.0 84.4 44.4 52.4 76.3 40.8 43.7 49.7 42.1 47.8 58.8 45.7 52.1 78.2 46.1 50.6 57.4 45.1 50.3 58.8 45.1 51.2 64.6 46.0 51.5 58.8 45.6 54.3 84.7 44.7 55.4 87.8 43.0 54.2 82.6 46.1 52.4 73.9 44.5 47.5 52.5 43.4 45.5 50.6 45.8 49.4 55.3 44.1 50.5 72.6 44.7 49.7 55.8 41.7 53.8 86.9 41.4 52.5 83.0 44.2 52.1 75.1 43.1 45.9 54.9 45.4 49.2 56.2 46.2 49.8 56.1 44.9 47.0 52.2 46.1 50.0 59.3 45.7 48.4 52.5 44.9 47.0 53.7 43.9 52.5 80.1 44.9 56.1 89.7 49.0 56.1 79.3 49.9 53.3 58.2 45.5 51.6 69.8 49.2 53.5 64.9 48.4 52.0 57.4 46.7 51.8 63.5 48.4 51.7 56.8 Battery Voltage 13.46 13.34 13.37 13.44 13.38 13.37 13.44 13.40 13.40 13.45 13.43 13.47 13.36 13.43 13.47 13.43 13.46 13.43 13.44 13.46 13.43 13.41 13.45 13.44 13.46 13.46 13.40 13.45 13.42 13.38 13.43 13.45 13.43 13.42 13.42 13.37 13.41 13.41 13.44 13.35 13.46 13.37 13.40 13.42 13.38 13.42 13.45 13.43 13.41 13.38 13.46 13.41 Notes Appendix C Section C.4 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Date Record Recorded Stage (ft, station datum Count Minimum Average Maximum 7/17/10 96 3.56 3.62 3.66 7/18/10 96 3.56 3.63 3.71 7/19/10 96 3.54 3.62 3.72 7/20/10 96 3.52 3.56 .:1.61 7/21/10 96 3.51 3. .64 7/22/10 96 3.59 3.66 3. 7/23/10 96 3.63 3.68 3. 7/24/10 96 3.73 4.06 7/25/10 96 3.58 3.70 3. 7/26/10 96 3.47 3.55 3.61 7/27/10 96 3.45 3. 62 7/28/10 96 3.45 3.62 3.71 7/29/10 96 3.49 3.56 3.601 7/30/10 96 3.45 3.52 3.58 7/31/10 96 3.41 3.45 3.48 8/1/10 96 3.44 3.60 3.76 8/2/10 96 3.50 3.57 3.62 8/3/10 96 3.49 3.57 3.67 8/4/10 96 3.52 3.64 3.75 8/5/10 96 3.53 3.63 3.72 8/6/10 96 3.56 3.66 3.76 8/7/10 96 3.52 3.62 3.73 8/8/10 96 3.44 3.48 .52 8/9/10 96 3.42 3.50 3.81 8/10/1~ 3.50 3.66 4.20 8/11/10 3.71 4.00 4.34 8/12/10 96 3.43 3.57 3.73 8/13/10 96 3.37 3. 3.47 8/14/10 96 3.30 3. .44 8/15/10 96 3.31 3.41 3.47 8/16/10 ~ 3.36 3.45 3.53 8/17/10 3. .41 3.48 8/18/10 96 3.33 3.66 4.03 8/19/10 96 3.48 3.66 3.99 8/20/10 96 3.32 3.38 3.46 8/21/10 96 3.18 3.29 3.40 8/22/10 96 3.06 3.13 3.19 8/23/10 96 3.05 3.10 3.17 8/24/10 96 3.11 3.20 3.28 8/25/10 96 3.02 3.09 3.14 8/26/10 96 3.03 3.13 3.25 8/27/10 96 3.01 3.07 3.12 8/28/10 96 2.96 3.00 3.03 8/29/10 96 2.95 3.09 8/30/10 96 2.89 2.95 3.00 8/31/10 96 2.8 .89 2.93 9/1/10 96 2.84 2.88 2.93 9/2/10 96 2.85 2.94 3.13 9/3/10 96 2.92 3.01 3.13 H%10 2.85 2.91 2.95 10 96 2.83 2.86 3.34 I 9/6/10 961 3.24 3.48 3.81 November 2011 Final Report Calculated Flow (cfs) Minimum Average Maximum 91.0 96.2 99.7 90.3 97.1 105.0 88.8 96.8 106.2 8~f 91.0 95.6 86. 92.2 98.4 93.1 100.2 106.7 97.1 101.9 110.3 107.2 144.7 194.0 92.8 104.0 119.1 82f 89.9 94.8 80. 87.3 96.4 81.0 96.0 105.3 84.3 90.5 94.0 81.1 86.9 92.3 77.7 80.4 83.5 79.4 95.1 110.6 84.9 91.1 96.3 84.6 91.9 100.8 87.2 98.2 .0 88.0 97.0 106.1 90.3 100.2 110.0 86.6 96.8 106.9 80.1 83.0 86.8 78.1 85.2 115.4 85.1 101.1 161.7 105.1 138.5 180.4 78.7 92.0 107.0 73.6 78.3 82.0 68.2 74.3 80.0 68.8 77.3 82.2 73.2 80.4 87.5 73.2 77.3 83.0 70.6 102.0 140.3 83.5 100.2 135.4 69.8 74.9 81.9 59.2 68.0 76.2 50.6 56.0 60.0 50.3 53.4 58.8 54.3 60.6 66.7 48.5 52.9 56.5 48.6 55.4 64.1 47.8 51.3 54.6 44.4 46.9 49.1 43.8 46.4 52.5 40.1 43.9 47.1 37.3 40.4 42.8 37.4 39.8 42.7 38.0 43.6 55.5 42.1 47.6 55.4 37.6 41.1 43.6 36.5 38.6 71.7 63.9 84.4 115.0 Polarconsult Alaska, Inc. Air Temperature (F) (Note 1) Minimum Average Maximum 47.5 52.3 59.4 48.6 56.3 84.6 50.0 60.1 92.9 48.9 58.5 87.0 49.3 53.9 61.0 ~55.1 63.2 55.7 92.9 46.8 48.5 53.5 48.9 53.2 58.2 47.5 60.0 45.1 57.1 90.9 48. 59.7 91.4 51.4 55.5 61.1 50.2 59.7 87.0 49.4 57.0 83.1 49.0 51.5 60.3 51.0 55.8 64.4 49.1 57.8 84.3 49.2 58.1 85.8 52.1 57.8 86.0 52.4 54.6 59.1 51.4 54.2 62.0 50.4 52.9 56.7 i= 54.0 60.7 55.7 54.8 62.6 49.9 57.3 81.2 49.1 87.0 48.2 57.1 84.9 51.5 58.5 80.4 51.3 58.9 83.2 55.5 62.1 84.2 52.2 55.2 63.4 49.7 53.6 64.6 50.0 53.2 61.6 46.3 50.6 56.4 48.9 53.4 66.7 49.0 52.7 62.2 46.5 50.0 55.4 48.5 51.8 63.8 49.0 51.5 56.6 47.3 51.9 65.1 49.0 53.1 65.0 47.8 52.1 60.3 46.1 50.3 60.5 46.1 49.9 58.7 49.1 53.3 62.5 47.9 51.6 60.8 4t. .6 60.1 46.9 50.2 56.2 48.4 52.0 58.4 45.0 47.4 52.4 Battery Notes Voltage 13.41 13.40 13.42 13.42 13.40 13.43 13.42 13.37 13.42 13.42 13.38 13.40 13.42 13.41 13.42 13.33 13.42 13.31 13.34 13.35 13.35 13.35 13.38 13.41 13.38 13.37 13.40 = 13.35 13.26 13.31 13.36 13.38 13.32 13.38 13.38 13.40 13.36 13.40 13.39 13.39 13.39 13.37 13.37 13.37 13.36 13.33 13.36 13.351 13.32 13.55 13.50 13.47 R Appendix C Section C.4 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Date Record Recorded Stage (ft, station datum Count Minimum Average Maximum 9/7/10 96 3.09 3.18 3.24 9/8/10 96 3.00 3.08 3.13 9/9/10 96 3.00 3.13 3.46 9/10/10 96 3.09 3.24 3.42 9/11/10 96 3.06 3.12 3.20 9/12/10 96 3.03 3.09 3.14 9/13/10 96 2.91 2.99 3.04 9/14/10 96 2.81 2.88 2.93 9/15/10 96 2.76 2.81 2.88 9/16/10 96 2.73 2.78 2.85 9/17/10 96 2.70 2.75 2.82 9/18/10 96 2.67 2.71 2.75 9/19/10 96 2.62 2.67 2.74 9/20/10 96 2.55 2.60 2.64 9/21/10 96 2.51 2.55 2.60 9/22/10 96 2.48 2.51 2.55 9/23/10 96 2.46 2.48 2.52 9/24/10 96 2.44 2.45 2.48 9/25/10 96 2.48 2.69 2.84 9/26/10 96 2.84 3.97 4.76 9/27/10 96 3.58 3.96 4.52 9/28/10 96 3.52 3.68 3.81 9/29/10 96 3.68 4.10 4.49 9/30/10 96 3.69 4.00 4.27 10/1/10 96 3.36 3.52 3.67 10/2/10 96 3.33 3.48 3.63 10/3/10 96 3.49 3.60 3.77 10/4/10 96 3.37 3.44 3.53 10/5/10 96 3.24 3.30 3.37 10/6/10 96 3.39 4.83 5.93 10/7/10 96 3.52 3.78 4.17 10/8/10 96 3.31 3.40 3.54 10/9/10 96 3.21 3.29 3.53 10/10/10 96 3.55 3.82 4.35 10/11/10 96 3.65 4.04 4.46 10/12/10 96 3.36 3.50 3.72 10/13/10 96 3.36 3.83 4.38 10/14/10 96 3.41 3.63 3.96 10/15/10 96 3.33 3.41 3.57 10/16/10 96 3.31 3.37 3.44 10/17/10 96 3.26 3.31 3.37 10/18/10 96 3.28 3.86 4.38 10/19/10 96 3.51 3.72 4.13 10/20/10 96 3.25 3.38 3.51 10/21/10 96 3.06 3.17 3.27 10/22/10 96 2.93 3.01 3.08 10/23/10 96 2.85 2.90 2.95 10/24/10 96 2.79 2.83 2.86 10/25/10 96 2.72 2.75 2.79 10/26/10 96 2.67 2.70 2.73 10/27/10 96 2.64 2.66 2.68 10/28/10 96 2.60 2.63 2.65 November 2011-Final Report Calculated Flow (cfs) Minimum Average Maximum 52.5 59.2 63.5 47.2 52.2 55.8 46.8 56.2 81.3 52.5 64.3 78.2 50.6 55.2 60.9 48.9 52.8 56.6 41.3 46.1 49.4 35.7 39.6 42.4 32.7 35.9 39.4 31.1 34.0 37.7 30.0 32.3 36.1 28.2 30.2 32.5 26.1 28.6 31.7 23.0 25.0 26.9 21.3 22.9 24.9 20.0 21.2 22.8 19.0 19.9 21.4 18.1 18.8 20.1 20.0 29.4 37.2 37.5 142.8 245.0 92.8 135.3 206.8 87.3 102.0 115.8 101.9 149.9 202.1 103.2 137.4 170.2 73.5 87.3 100.9 70.3 83.8 97.0 84.3 94.5 111.2 73.6 79.6 88.2 63.5 68.0 74.1 75.2 268.6 488.9 86.7 113.3 157.5 69.4 76.7 88.4 61.7 67.4 87.7 89.7 117.6 181.9 99.1 143.0 197.8 73.4 85.7 105.6 73.3 122.3 186.1 77.3 97.9 132.4 70.8 77.8 91.4 69.1 73.8 79.9 65.5 69.3 73.9 66.9 124.2 185.4 86.1 107.2 152.2 64.4 74.9 85.9 50.8 58.4 65.6 42.7 47.5 52.0 38.1 40.6 43.9 34.3 36.5 38.3 30.9 32.7 34.8 28.5 29.9 31.1 26.8 27.8 28.9 25.3 26.5 27.6 Polarconsult Alaska, Inc. Air Temperature (F) (Note 1) Minimum Average Maximum 46.5 51.4 58.7 46.4 50.9 57.8 48.8 49.6 51.0 44.2 48.4 53.0 46.8 49.2 53.7 47.3 50.5 55.1 43.8 48.9 57.5 42.7 47.3 54.2 42.8 47.5 53.5 43.7 47.7 53.9 42.6 47.4 53.7 42.4 46.5 53.4 43.9 49.8 55.6 40.2 45.2 50.9 32.7 39.6 48.2 34.0 39.0 45.3 38.8 42.6 49.1 40.0 44.3 51.8 39.7 41.0 43.5 43.6 44.8 46.9 43.1 45.2 48.4 41.0 43.1 46.0 43.3 46.6 49.1 46.7 48.7 50.6 41.9 45.3 49.3 45.6 47.0 48.4 41.4 44.5 46.4 42.1 44.0 47.8 36.0 41.7 49.3 36.6 43.2 45.2 37.7 42.6 47.2 40.0 42.0 47.3 40.4 43.2 47.9 40.3 42.8 45.5 40.8 43.5 45.4 38.9 41.6 46.0 40.2 42.5 45.0 39.9 42.1 45.9 40.1 41.4 43.6 36.4 39.6 43.5 39.6 40.2 41.7 40.6 41.1 42.0 41.1 42.3 44.9 38.6 41.1 45.1 30.2 35.2 42.2 31.8 35.7 40.5 39.3 40.4 42.2 39.7 41.7 44.1 39.4 41.6 45.2 36.2 39.6 44.4 36.4 38.6 41.6 36.8 38.0 41.0 Battery Voltage 13.46 13.43 13.33 13.42 13.39 13.39 13.36 13.33 13.30 13.26 13.30 13.32 13.31 13.20 13.19 13.19 13.31 13.24 13.14 13.16 13.24 13.17 13.27 13.24 13.17 13.19 13.25 13.24 13.23 13.10 13.20 13.11 13.21 13.09 13.17 13.18 13.12 13.18 13.13 13.12 13.15 13.08 13.15 13.18 13.11 13.09 13.13 13.09 13.10 13.09 13.08 13.06 Notes Appendix C Section C.4 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Date Record Recorded Stage (ft, station datum Calculated Flow (cfs) Count Minimum Average Maximum Minimum Average Maximum 10/29/10 96 2.60 2.64 2.83 24.9 27.0 36.5 10/30/10 96 2.80 3.00 3.28 35.3 47.3 66.4 10/31/10 96 2.69 2.74 2.81 29.4 32.1 35.5 11/1/10 96 2.65 2.67 2.71 27.2 28.4 30.2 11/2/10 96 2.65 3.23 4.04 27.4 71.9 141.8 11/3/10 96 3.22 3.49 3.86 62.1 85.6 120.8 11/4/10 96 3.24 4.07 5.18 63.7 156.7 321.0 11/5/10 96 3.35 3.63 4.12 72.3 98.7 150.8 11/6/10 96 3.21 3.37 52.7 61.6 73.6 11/7/10 96 2.93 3.01 3.10 42.8 47.9 53.7 11/8/10 96 2.85 2.89 2.95 37.8 40.3 43.8 11/9/1 2.76 2.81 2.86 33.2 35.6 38.2 11/10/1 2.71 2.78 30.6 32.2 33.8 11/11/10 96 2.67 2.70 2.73 28.6 29.9 31.4 11/12/10 96 2.67 2.75 2.98 28.6 32.8 45.4 11/13/10 96 2.97 3.23 3.92 44.8 63.8 127.1 11/14/10 96 3.21 3.56 4.07 61.7 92.2 145.2 11/15/10 96 2.98 3.09 3.23 45.4 52.9 62.6 11/16/10 96 2.84 2.90 2.99 37.1 41.1 46.2 11/17/10 96 2.67 2.75 2.84 28.2 32.7 37.5 11/18/10 96 2.62 2.67 2.74 26.2 28.4 31.9 11/19/10 96 2.66 2.70 26.6 28.1 30.0 11/20/10 96 2.57 2.60 2.65 23.6 24.9 27.2 11/21/10 96 2.57 2.58 2.60 23.6 24.2 24.9 11/22/10 96 2.49 2.54 2.57 20.4 22.3 23.5 11/23/10 96 2.47 2.49 2.50 19.7 20.2 I 20.6 11/24/10 96 2.46 2.48 2.50 19.2 19.8 20.6 11/25/10 96 2.45 2.46 2.48 18.8 19.3 19.9 11/26/10 96 2.42 2.44 2.46 17.6 18.4 19.2 11/27/10 96 2.37 2.41 2.43 15.9 17.2 17.9 11/28/10 96 2.36 2.39 2.42 15.5 16.6 17.6 11/29/10 96 2.38 i 2~ 16.0 16.5 16.7 11/30/10 96 2.35 2.3 15.0 15.9 16.4 12/1/10 96 2.29 2.3 2.40 13.1 15.1 16.9 12/2/10 96 2.41 2.65 2.75 17.2 27.4 32.3 12/3/10 96 2.73 2.86 3.24 31.4 38.6 63.3 12/4/10 96 3.01 3.17 3.32 47.8 58.7 70.1 12/5/10 2.67 3.05 3.31 28.5 51.0 12/6/10 96 2.33 2.38 2.64 14.4 16.3 27.1 12/7/10 96 2.31 2.32 2.34 13.6 14.1 14.6 12/8/10 96 2.30 2.31 2.32 13.2 13.5 13.9 12/9/10 96 2.28 2.30 2.32 12.8 13.2 14.0 12/10/10 96 2.29 2.31 2.34 13.1 13.5 14.6 12/11/10 96 2.30 2.32 2.38 13.2 14.1 15.9 12/12/10 96 2.30 2.31 2.34 13.4 13.7 14.5 12/13/10 96 2.28 2.29 2.31 12.6 13.0 13.5 12/14/10 96 2.27 2.29 2.31 12.4 12.9 13.6 12/15/10 96 2.28 2.33 2.58 12.6 14.3 24.1 12/16/10 96 2.37 2.45 2.61 15.6 18.6 25.5 12/17/10 96 2.66 2.80 2.96t==f' 35.4 44.5 12/18/10 96 2.49 2.81 3.11 0.2 36.3 54.5 12/19/10 96 2.56 2.79 2.96 23.4 34.9 44.4 November 2011 Final Report Polarconsult Alaska, Inc. Air Temperature (F) (Note 1) Minimum Average Maximum 36.5 37.6 39.9 34.5 38.2 42.5 36.6 37.7 39.6 35.6 37.9 40.3 34.1 39.2 41.8 38.3 44.0 37.6 38.7 39.7 36.9 39.1 40.6 34.9 37.2 40.1 36.5 38.0 39.9 35.9 37.8 40.6 29.4 33.5 38.0 30.0 32.6 35.6 33.7 34.5 37.1 34.9 37.5 40.0 37.4 41.3 45.7 36.8 39.9 45.6 31.5 36.0 40.6 30.1 30.8 32.5 26.5 28.5 31.7 19.2 22.4 26.8 22.3 28.5 31.1 21.4 25.0 32.8 23.2 28.7 32.0 23.4 29.5 32.9 22.3 25.5 27.7 27.0 29.5 33.1 32.2 35.9 39.2 29.0 :),£. 38.2 24.4 28.9 33.7 24.4 27.7 29.0 29.1 30.1 31.4 22.7 27.6 31.5 15.8 18.4 23.0 14.5 16.0 17.4 10.0 11.4 10.0 10.2 21.4 33.0 33.1 36.0 40.1 28.8 32.7 40.0 29.6 31.5 36.2 28.6 31.6 32.8 22.4 26.7 32.0 20.6 21.6 24.7 21.2 21.8 22.5 20.0 21.9 23.3 19.5 20.8 23.0 15.6 18.7 20.3 16.6 17.3 19.4 14.6 16.1 18.7 15.4 16.5 18.2 13.0 15.9 17.9 12.9 14.2 15.5 Battery Notes Voltage 12.99 13.02 13.07 I= 12.95 12.98 12.97 12.98 ;=== 12.99 13.00 13.01 13.08 13.02 12.98 13.06 13.02 13.06 12.94 13.04 12.98 12.97 12.96 12.95 13.01 12.98 12.97 12.92 12.91 13.01 12.87 12.83 12.86 12.92 12.92 12.80 12.81 12.80 12.81 12.75 12.74 12.73 12.74 12.73 12.72 12.72 12.69 12.68 Appendix C Section C4 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Date Record Recorded Stage (ft, station datum Count Minimum Average Maximum 12/20/10 96 2.29 2.45 2.61 12/21/10 96 2.40 2.68 3.02 12/22/10 96 2.21 2.50 3.08 12/23/10 96 2.24 2.36 2.87 12/24/10 96 2.19 2.26 2.32 12/25/10 96 2.11 2.23 2.36 12/26/10 96 2.11 2.24 2.47 12/27/10 96 2.12 2.16 2.32 12/28/10 96 2.14 2.15 2.17 12/29/10 96 2.13 2.14 2.18 12/30/10 96 2.12 2.12 2.13 12/31/10 96 2.12 2.12 2.12 1/1/11 96 2.10 2.11 2.14 1/2/11 96 2.09 2.11 2.12 1/3/11 96 2.10 2.12 2.14 1/4/11 96 2.12 2.13 2.18 1/5/11 96 2.14 2.19 2.24 1/6/11 96 2.11 2.13 2.14 1/7/11 96 2.10 2.11 2.12 1/8/11 96 2.09 2.10 2.11 1/9/11 96 2.07 2.10 2.12 1/10/11 96 2.09 2.10 2.13 1/11/11 96 2.10 2.12 2.20 1/12/11 96 2.06 2.10 2.17 1/13/11 96 2.11 2.19 2.43 1/14/11 96 2.44 2.70 3.18 1/15/11 96 2.41 3.13 3.64 1/16/11 96 2.45 2.71 3.39 1/17/11 96 3.43 3.58 3.66 1/18/11 96 2.34 2.92 3.42 1/19/11 96 2.09 2.23 2.41 1/20/11 96 2.10 2.13 2.23 1/21/11 96 2.03 2.14 2.42 1/22/11 96 2.07 2.31 3.51 1/23/11 96 2.16 2.32 2.86 1/24/11 96 2.11 2.13 2.16 1/25/11 96 2.10 2.14 2.21 1/26/11 96 2.14 2.17 2.29 1/27/11 96 2.18 2.28 2.36 1/28/11 96 2.11 2.14 2.18 1/29/11 96 2.05 2.10 2.11 1/30/11 96 2.05 2.07 2.09 1/31/11 96 2.07 2.09 2.13 2/1/11 96 2.04 2.14 3.05 2/2/11 96 3.14 3.45 3.81 2/3/11 96 3.15 3.55 3.93 2/4/11 96 2.68 2.97 3.36 2/5/11 96 2.45 2.55 2.69 2/6/11 96 2.35 2.39 2.46 2/7/11 96 2.30 2.33 2.36 2/8/11 96 2.28 2.31 2.91 2/9/11 96 2.35 2.42 2.51 November 2011-Final Report Calculated Flow (cfs) Minimum Average Maximum 12.9 18.8 25.5 16.8 29.7 48.5 10.4 22.1 52.1 11.4 15.7 38.8 9.8 12.1 13.9 7.7 11.1 15.5 7.7 11.5 19.4 8.0 9.2 14.0 8.5 8.9 9.3 8.2 8.4 9.6 8.0 8.1 8.3 7.9 8.0 8.1 7.6 7.9 8.5 7.2 7.7 8.1 7.6 8.0 8.4 7.9 8.2 9.6 8.7 9.9 11.3 7.8 8.2 8.6 7.6 7.8 8.0 7.3 7.5 7.6 6.8 7.5 7.9 7.3 7.6 8.3 7.5 8.0 10.3 6.6 7.6 9.3 7.7 10.0 17.8 18.3 30.4 59.1 17.2 60.6 97.8 18.8 31.5 75.2 78.8 92.8 100.2 14.5 44.6 78.5 7.4 11.2 17.1 7.4 8.3 11.2 5.7 8.7 17.6 6.7 17.4 86.1 9.1 14.5 38.6 7.7 8.3 9.0 7.5 8.7 10.4 8.4 9.4 13.0 9.8 12.8 15.5 7.7 8.6 9.7 6.2 7.4 7.8 6.3 6.8 7.1 6.9 7.2 8.4 6.0 9.0 50.2 56.6 81.9 115.1 57.0 91.8 129.2 29.0 46.0 73.3 18.7 22.9 29.2 15.0 16.6 18.9 13.2 14.4 15.2 12.6 13.6 41.2 14.9 17.5 21.0 Polarconsult Alaska, Inc. Air Temperature (F) (Note 1) Minimum Average Maximum 10.0 11.0 9.6 10.0 11.1 10.0 13.4 14.6 16.5 16.8 18.1 19.4 16.3 18.0 21.4 17.8 18.8 20.5 20.3 22.2 23.2 20.1 22.9 25.4 19.3 20.9 23.8 18.8 20.2 22.5 20.2 23.8 29.7 29.7 33.8 36.0 33.8 35.2 36.7 33.5 34.2 36.5 34.6 37.4 40.0 33.8 36.0 40.4 33.0 36.5 38.9 31.3 32.9 35.0 29.3 31.3 32.0 24.4 26.9 31.7 19.1 22.0 25.8 19.9 21.4 24.3 21.4 24.3 27.4 14.7 21.0 27.7 10.0 11.0 9.9 2.9 6.4 9.4 0.0 0.5 3.9 0.0 2.7 9.6 10.0 10.1 9.9 13.4 17.5 20.5 14.8 18.0 22.1 16.2 17.5 20.9 21.1 29.4 34.5 31.2 36.7 39.5 37.6 38.8 39.7 33.8 38.1 41.2 36.0 38.8 41.4 31.5 36.1 41.8 33.0 35.9 41.4 26.2 29.8 35.3 22.2 25.9 30.3 18.4 22.1 24.7 15.8 18.9 23.4 23.7 29.8 39.0 33.8 39.6 43.9 32.5 37.5 41.2 33.8 36.1 42.6 30.4 33.2 37.6 26.5 28.6 31.3 23.7 27.6 31.1 17.0 21.3 26.1 23.4 29.3 33.9 Battery Voltage 12.66 12.65 12.66 12.68 12.67 12.67 12.68 12.68 12.66 12.65 12.66 12.72 12.72 12.71 12.72 12.71 12.71 12.69 12.68 12.74 12.73 12.72 12.77 12.80 12.73 12.65 12.70 12.63 12.68 12.68 12.68 12.67 12.70 12.75 12.76 12.75 12.76 12.74 12.73 12.78 12.68 12.65 12.66 12.73 12.71 12.69 12.77 12.81 12.74 12.77 12.66 12.83 Notes Appendix C Section C.4 Burro Creek Holdings, LLC Polarconsult Alaska, Inc. Burro Creek Hydroelectric Study Date Record ~ecorded Stage (ft, station datum Calculated Flow (cfs) Air Temperature (F) (Note 1) Count Minimum Average Maximum Minimum Average Maximum Minimum Average Maximum 2/10/11 96 2.20 2.27 2.39 10.3 12.3 16.4 33.5 35.5 38.1 2/11/11 96 2.21 2.23 2.30 10.4 11.0 13.2 32.8 34.5 39.3 2/12/11 96 2.25 2.27 2.30 11.6 12.4 13.2 31.2 33.7 40.2 2/13/11 96 2.19 2.22 2.26 9.9 10.9 11.9 24.4 29.7 35.2 2/14/11 2.18 2.22 9.6 10.9 15.4 10.8 17.1 24.4 2/15/11 2.37 2.83 15.7 37.8 6 10.1 11.4 13.8 2/16/11 3.23 3.46 63.0 82.0 1 10~~ 10.0 2/17/11 3.44 3.61 80.1 95.3 11 10.1 2 9.9 2/ 3.23 3.38 62.9 75.1 92.5 10.0 10.0 2/ 2.93 3.07 3.23 42.8 51.6 63.1 =1E= 22.1 31.4 2/ 961 2.56 2.73 2.93 23.3 31.6 42.5 28.5 32.9 2/21/1~H 2.35 2.44 2.56 15.2 18.3 23.1 14.4 18.4 20.9 2/22/11 2.21 2.28 2.35 10.6 12.6 15.1 16.1 18.6 22.1 2/23/11 96 2.15 2.18 2.21 8.9 9.7 10.6 10.0 12.1 9.9 2/24/11 96 2.08 2.12 2.17 7.1 8.1 9.3 10.2 9.4 9.9 2/25/11 96 2.06 2.07 2.09 6.6 6.9 7.2 11.5 14.7 18.6 2/26/11 96 2.06 2.06 2.07 6.5 6.6 6.8 19.5 26.0 28.1 2/27/11 96 2.05 2.06 2.07 6.3 6.5 6.7 10.8 15.9 26.3 2/28/11 96 2.04 2.05 2.06 6.1 6.2 6.5 10.0 10.9 9.9 3/1/1~H 2.03 2.04 2.05 5.9 6.0 6.2 9.3 10.0 3/2/11 2.03 2.03 2.04 5.7 5.9 6.0 10.1 10.0 10.0 3/3/11 96 2.02 2.03 2.03 5.7 5.8 5.9 11.8 14.0 15.8 3/4/11 96 2.02 2.02 2.03 5.5 5.7 5.8 10.9 12.9 17.6 3/5/11 96 2.01 2.02 2.03 5.5 5.6 5.7 15.7 18.5 20.5 3/6/11 96 2.01 2.02 2.02 5.5 5.5 5.6 16.9 21.3 25.3 3/7/11 96 2.01 2.01 2.02 5.4 5.4 5.6 13.8 18.3 24.0 3/8/11 96 2.01 2.01 2.01 5.3 5.4 5.5 18.9 21.3 25.2 3/9/11 96 2.00 2.00 2.01 .2 5.3 :m;:; 25.7 3/10/1~ 2.00 2.00 2.01 .1 5.2 24.8 3/11/11 1.97 1.99 2.00 4.6 5.1 5.2 13.0 10.0 3/12/11 96 1.97 1.97 1.99 4.5 4.7 4.9 11.9 15.7 3/13/11 96 1.96 1.98 4.4 4.7 5.0 16.6 20.0 3/14/1~ 1.96 1.98 4.4 4.7 5.2 2 21.2 26.8 3/15/11 1.98 1.98 4.7 4.8 4.9 25.4 27.4 31.2 3/16/11 96 1.98 1.98 1.99 4.7 4.8 5.0 29.0 31.5 36.2 3/17/11 96 1.97 1.98 1.98 4.6 4.7 4.8 31.1 34.2 38.6 3/18/11 96 1.97 1.97 1.98 4.6 4.7 4.8 24.0 30.2 42.4 3/19/11 96 1.97 1.97 1.98 4.6 4.6 4.8 22.3 27.7 35.3 3/20/11 96 1.97 1.97 1.97 4.5 4.6 4.6 24.1 26.6 30.8 3/21/11 96 1.96 1.97 1.97 4.5 4.5 4.6 27.5 33.4 3/22/11 96 1.96 1.97 1.97 4.4 4.5 4.6 19.8t=25.8 34.0 3/23/11 96 1.96 1.96 1.97 4.4 4.5 4.5 27.6 32.8 39.0 3/24/11 96 1.96 1.96 1.97 4.4 4.5 4.5 28.0 32.8 40.7 3/25/11 96 1.96 1.97 1.97 4.4 4.5 4.6 30.6 34.2 41.3 El=i 1.96 1~ 1.98 4.4 4.6 4.8 32.0 35.7 42.8 1.98 1. 2.0~ 4.9 5.1 29.6 34.9 43.9 1.99 2.03 2.07 4.9 6.0 6.7 32.5 35.3 41.0 2.05 2.06 2.08 6.2 6.6 7.0 30.6 35.7 44.9 3/30/11 96 2.04 2.06 2.07 6.1 6.5 6.8 33.3 36.6 42.9 3/31/11 96 2.08 2.15 2.19 6.9 8.9 10.0 39.1 41.4 45.4 4/1/11 96 2.12 2.14 2.16 8.0 8.6 9.0 37.4 41.0 47.9 4/2/11 96 2.08 2.11 2.13 7.0 7.7 8.2 32.8 37.4 45.3 November 2011 -Final Report Battery Notes Voltage 12.75 12.68 12.78 12.79 12.73 13.02 12.76 12.69 12.67 12.92 12.75 12.78 12.72 12.95 12.85 13.00 13.08 13.15 13.22 13.15 13.11 13.26 13.24 13.20 13.23 13.11 13.11 13.12 13.20 13.24 13.24 13.32 13.32 13.35 13.30 12.97 12.94 12.87 12.89 12.86 12.89 12.96 12.97 12.98 13.0~ 12.97 12.96 12.98 12.99 13.0R 13.03 12.99 Appendix C Section C.4 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Date Record Recorded Stage (ft, station datum Count Minimum Average Maximum 4/3/11 96 2.08 2.13 2.17 4/4/11 96 2.08 2.10 2.12 4/5/11 96 2.06 2.07 2.08 4/6/11 96 2.05 2.06 2.08 4/7/11 96 2.04 2.05 2.05 4/8/11 96 2.03 2.04 2.05 4/9/11 96 2.04 2.05 2.06 4/10/11 96 2.02 2.03 2.04 4/11/11 96 2.01 2.02 2.03 4/12/11 96 2.01 2.01 2.02 4/13/11 96 2.01 2.01 2.02 4/14/11 96 2.01 2.08 2.12 4/15/11 96 2.09 2.12 2.14 4/16/11 96 2.08 2.10 2.12 4/17/11 96 2.06 2.08 2.09 4/18/11 96 2.06 2.08 2.10 4/19/11 96 2.05 2.07 2.09 4/20/11 96 2.05 2.07 2.09 4/21/11 96 2.08 2.09 2.09 4/22/11 96 2.07 2.08 2.09 4/23/11 96 2.06 2.08 2.09 4/24/11 96 2.08 2.15 2.20 4/25/11 96 2.14 2.23 2.29 4/26/11 96 2.25 2.37 2.45 4/27/11 96 2.40 2.46 2.51 4/28/11 96 2.38 2.46 2.53 4/29/11 96 2.41 2.56 2.67 4/30/11 96 2.42 2.48 2.54 5/1/11 96 2.35 2.39 2.47 5/2/11 96 2.44 2.50 2.69 5/3/11 96 2.45 2.73 2.89 5/4/11 96 2.74 2.81 2.89 5/5/11 96 2.71 2.80 2.96 5/6/11 96 2.93 3.01 3.17 5/7/11 96 2.93 3.08 3.27 5/8/11 96 3.00 3.10 3.26 5/9/11 96 2.92 2.99 3.12 5/10/11 96 2.82 2.87 2.97 5/11/11 96 2.81 2.86 2.98 5/12/11 96 2.94 2.98 3.03 5/13/11 96 2.90 2.96 3.03 5/14/11 96 2.93 3.03 3.27 5/15/11 96 3.06 3.17 3.31 5/16/11 96 3.10 3.21 3.35 5/17/11 96 3.17 3.31 3.56 5/18/11 96 3.45 3.50 3.56 5/19/11 96 3.41 3.51 3.71 5/20/11 96 3.65 3.76 3.95 5/21/11 96 3.64 3.78 3.93 5/22/11 96 3.66 3.76 3.87 5/23/11 96 3.62 3.72 3.87 5/24/11 96 3.70 4.02 4.45 November 2011-Final Report Calculated Flow (cfs) Minimum Average Maximum 7.0 8.2 9.2 6.9 7.5 8.1 6.5 6.8 7.0 6.3 6.6 6.9 6.2 6.3 6.4 5.8 6.1 6.3 6.0 6.3 6.6 5.7 5.9 6.1 5.5 5.7 5.7 5.4 5.5 5.6 5.4 5.5 5.6 5.5 6.9 7.9 7.1 8.0 8.6 7.0 7.6 7.9 6.6 7.0 7.1 6.6 7.0 7.4 6.3 6.8 7.2 6.2 6.9 7.3 7.0 7.2 7.3 6.7 7.0 7.2 6.6 7.0 7.3 7.0 8.8 10.2 8.6 11.2 13.1 11.7 16.0 18.6 16.9 19.2 21.3 16.2 19.1 21.8 17.3 23.4 28.4 17.5 20.1 22.6 15.1 16.6 19.4 18.5 20.9 29.4 18.7 31.5 40.2 31.8 35.6 40.0 30.4 35.3 44.5 42.5 48.0 58.7 42.8 52.3 65.6 46.6 53.4 65.5 41.8 46.4 54.7 36.1 39.3 45.0 35.9 38.6 45.9 43.4 45.7 48.9 40.5 44.2 48.7 42.4 49.0 66.3 50.8 58.7 69.1 53.6 61.5 72.0 58.2 69.1 90.7 80.4 85.3 90.9 76.9 86.3 105.0 99.5 110.3 130.9 97.7 112.5 128.7 100.3 110.6 122.0 95.8 106.5 121.8 104.0 141.2 195.7 Polarconsult Alaska, Inc. Air Temperature (F) (Note 1) Minimum Average Maximum 37.9 40.3 46.8 34.1 37.8 46.8 32.6 37.7 47.4 25.6 33.6 46.6 30.7 36.9 45.2 35.8 39.7 46.0 36.5 40.0 47.6 34.9 38.9 44.7 30.8 35.9 45.9 31.9 36.8 45.2 34.8 39.9 46.5 32.1 41.4 52.2 37.6 43.2 54.3 31.3 38.4 46.8 27.2 37.0 49.9 31.1 39.2 55.8 26.5 36.0 51.0 32.7 40.0 57.8 35.8 41.2 56.9 37.8 41.7 51.5 40.9 44.5 50.5 32.6 40.9 51.4 37.9 46.0 67.6 40.4 46.7 68.2 29.7 41.6 68.4 30.5 41.5 69.2 36.1 47.3 80.2 41.3 45.0 52.7 38.9 46.1 58.3 38.2 47.7 74.5 39.4 47.1 58.6 37.8 40.3 44.4 36.3 44.2 56.5 38.7 43.0 50.0 37.9 46.1 75.2 36.4 46.9 67.6 37.5 46.8 60.9 34.9 43.0 51.4 38.5 47.3 73.3 38.3 42.7 49.3 37.4 45.2 65.0 35.7 47.9 82.0 33.6 47.3 81.3 34.5 49.6 90.6 39.3 52.2 85.9 42.8 48.5 71.4 40.2 45.5 56.1 39.7 44.6 61.3 36.6 43.8 52.9 38.6 43.6 51.3 39.8 42.4 47.2 39.4 43.6 51.0 Battery Voltage 13.02 12.99 13.01 12.97 13.00 13.00 13.01 13.00 12.99 12.98 13.01 13.02 13.03 12.98 12.98 13.00 12.97 13.00 13.02 13.01 13.01 12.98 13.04 13.03 12.98 12.96 13.03 13.01 13.03 13.22 13.41 13.39 13.41 13.39 13.41 13.41 13.42 13.42 13.41 13.38 13.42 13.36 13.30 13.34 13.40 13.39 13.37 13.39 13.39 13.38 13.33 13.40 Notes Appendix C Section C.4 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Date Record Recorded Stage (ft, station datum Count Minimum Average Maximum 5/25/11 96 4.10 4.26 4.44 5/26/11 96 4.11 4.37 4.72 5/27/11 96 4.15 4.41 4.67 5/28/11 96 4.30 4.42 4.60 5/29/11 96 4.14 4.31 4.52 5/30/11 96 4.08 4.37 4.73 5/31/11 96 4.37 4.58 4.88 6/1/11 96 4.40 4.61 4.81 6/2/11 96 4.08 4.26 4.67 6/3/11 96 4.04 4.11 4.22 6/4/11 96 3.97 4.09 4.20 6/5/11 96 3.77 3.90 4.02 6/6/11 96 3.79 3.92 4.08 6/7/11 96 3.83 4.08 4.44 6/8/11 96 4.08 4.21 4.43 6/9/11 96 3.83 3.95 4.12 6/10/11 96 3.68 3.76 3.86 6/11/11 96 3.62 3.70 3.81 6/12/11 96 3.56 3.65 3.76 6/13/11 96 3.56 3.68 3.87 6/14/11 96 3.83 3.96 4.26 6/15/11 96 3.91 4.05 4.26 6/16/11 96 3.70 3.82 3.97 6/17/11 96 3.68 3.79 3.89 6/18/11 96 3.70 3.86 4.14 6/19/11 96 4.02 4.14 4.26 6/20/11 96 3.85 ¥.it 4.06 6/21/11 96 3.81 4.03 6/22/11 96 3.71 4.02 6/23/11 96 3.70 3.89 4.15 6/24/11 96 3.82 4.03 4.32 6/25/11 96 4.00 4.11 4.37 6/26/11 96 3.91 3~ 4.10 6/27/11 96 3.90 4. 4.25 6/28/11 96 3.98 4.06 4.22 6/29/11 96 3.78 3.90 4.02 6/30/11 96 3.64 3.73 3.87 7/1/11 96 3.57 3.63 3.71 7/2/11 96 3.54 3.60 3.68 7/3/11 96 3.55 3.65 3.76 7/4/11 96 3.67 3.74 3.80 7/5/11 96 3.53 3.63 3.73 7/6/11 96 3.50 3.58 3.68 7/7/11 96 3.58 3.70 3.80 7/8/11 96 3.49 3.58 3.74 7/9/11 96 3.48 3.53 3.59 7/10/11 96 3.51 3.57 3.67 7/11/11 96 3.52 3.66 3.89 7/12/11 96 3.63 3.81 4.06 7/13/11 96 3.72 3.89 4.03 7/14/11 96 3.71 3.82 4.01 7/15/11 96 3.62 3.68 3.78 November 2011 -Final Report Calculated Flow (cfs) Minimum Average Maximum 149.4 ~194.0 150.2 236.9 154.7 191.4 230.3 175.4 192.6 219.1 154.3 176.5 206.5 146.3 185.1 239.4 183.9 216.3 264.6 189.3 219.7 253.3 146.8 170.8 229.4 142.0 150.4 163.9 133.1 148.3 162.0 111.4 125.9 139.21 113.5 127.9 146.7 117.8 ~ 195.0 146.1 193.3 117.8 130.8 151.8 102.3 110.4 121.2 96.6 104.2 115.8 90.8 99.1 109.7 90.2 102.0 121.8 117.4 133.1 168.8 126.8 143.1 169.1 104.4 117.1 132.7 102.3 113.4 124.6 103.9 121.3 153.7 138.6 154.3 169.8 119.3 131.4 143.5 115.7 125.7 140.3 119.5 139.1 104.1 125.0 155.3 116.6 141.0 177.6 136.2 150.8 183.9 126.0 136.0 148.4 125.6 141.4 168.2 135.0 144.2 163.6 112.3 125.5 139.4 97.9 106.8 122.5 91.5 97.7 105.0 88.7 94.1 101.6 89.6 98.8 110.1 101.5 108.6 114.9 88.2 97.1 106.9 85.3 92.6 101.6 92.6 104.7 113.9 84.4 ~07.8 83.2 93.5 85.8 91.9 100.8 86.6 100.7 123.9 97.1 116.0 143.8 106.6 124.8 140.9 105.3 117.3 137.5 95.8 102.3 112.5 Polarconsult Alaska, Inc. Air Temperature (F) (Note 1) Minimum Average Maximum 39.0 45.7 69.2 38.7 47.7 71.4 38.8 48.6 78.6 41.8 45.5 50.9 41.2 ± 77.9 39.5 77.7 40.0 51.3 83.3 40.7 51.4 80.6 42.2 48.4 60.5 44.1 47.9 52.1 42.0 47.9 55.7 43.4 49.3 64.8 42.7 52.7 83.1 40.3 53.7 90.8 46.4 50.0 54.6 45.2 49.9 58.4 44.3 51.3 62.8 44.9 51.3 61.5 44.5 54.3 89.9 41.6 52.0 70.4 44.5 53.3 84.3 44.1 50.9 62.7 53.3 83.4 41.2 52.1 73.7 44.7 50.8 66.7 45.2 48.6 55.5 44.3 51.5 67.2 43.8 51.6 71.3 43.2 54.5 84.3 42.1 56.1 91.9 45.0 56.4 92.9 47.4 51.9 57.2 47.2 52.4 59.1 47.5 60.1 95.6 49.3 54.8 76.1 47.0 53.4 .5 47.7 54.2 69.1 45.4 56.4 83.0 44.5 54.9 85.2 48.0 58.6 92.1 48.2 56.1 76.4 45.7 54.3 78.4 45.8 55.5 83.7 45.8 53.7 81.0 ~ 80.9 81.6 49.0 57.5 81.7 45.4 58.3 91.2 47.1 61.3 96.9 48.4 62.0 96.4 52.6 55.1 58.4 50.9 56.6 63.7 Battery Voltage 13.38 13.32 13.38 13.36 13.37 13.37 13.31 13.31 13.36 13.33 13.39 13.38 13.38 13.30 13.40 13.36 13.40 13.42 13.38 13.38 13.39 13.42 13.42 13.39 13.38 13.32 13.39 13.40 13.38 13.35 13.39 13.36 13.37 13.37 13.36 13.40 13.40 13.21 12.98 12.99 13.00 12.97 12.98 12.96 12.96 12.97 12.96 12.92 12.95 12.95 12.91 12.96 Notes Appendix C Section C.4 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Date Record Recorded Stage (ft, station datum Count Minimum Average Maximum 7/16/11 96 3.56 3.64 3.72 7/17/11 96 3.58 3.66 3.76 7/18/11 96 3.58 3.65 3.76 7/19/11 96 3.52 3.57 3.63 7/20/11 96 3.40 3.48 3.59 7/21/11 96 3.37 3.44 3.59 7/22/11 96 3.41 3.50 3.62 7/23/11 96 3.46 3.54 3.63 7/24/11 96 3.56 3.64 3.76 7/25/11 96 3.57 3.63 3.77 7/26/11 96 3.45 3.66 4.11 7/27/11 96 3.51 3.68 4.07 7/28/11 96 3.49 3.69 3.98 7/29/11 96 3.53 3.61 3.71 7/30/11 96 3.37 3.45 3.59 7/31/11 96 3.35 3.39 3.45 8/1/11 96 3.35 3.47 3.64 8/2/11 96 3.31 3.39 3.55 8/3/11 96 3.24 3.29 3.33 8/4/11 96 3.28 3.32 3.36 8/5/11 96 3.26 3.32 3.39 8/6/11 96 3.20 3.25 3.31 8/7/11 96 3.08 3.15 3.22 8/8/11 96 2.99 3.04 3.09 8/9/11 96 2.96 3.00 3.03 8/10/11 96 2.92 2.95 2.98 8/11/11 96 2.94 3.41 3.94 8/12/11 96 3.53 3.76 3.96 8/13/11 96 3.29 3.38 3.54 8/14/11 96 3.22 3.35 3.68 8/15/11 96 3.59 3.77 4.05 8/16/11 96 3.59 3.78 4.00 8/17/11 96 3.32 3.42 3.58 8/18/11 96 3.22 3.26 3.32 8/19/11 96 3.21 3.43 3.70 8/20/11 96 3.71 4.87 5.52 8/21/11 96 4.44 4.88 5.73 8/22/11 96 4.19 4.34 4.44 8/23/11 96 3.93 4.24 4.60 8/24/11 96 3.62 3.73 3.91 8/25/11 96 3.42 3.55 3.73 8/26/11 96 3.38 3.43 3.53 8/27/11 96 3.31 3.37 3.44 8/28/11 96 3.32 3.36 3.43 8/29/11 96 3.30 3.36 3.46 8/30/11 96 3.17 3.25 3.32 8/31/11 96 3.08 3.13 3.19 9/1/11 96 3.10 3.34 3.54 9/2/11 96 3.14 3.27 3.63 9/3/11 96 3.63 4.04 4.56 9/4/11 96 3.75 4.02 4.40 9/5/11 96 3.55 3.81 5.08 November 2011 -Final Report Calculated Flow (cfs) Minimum Average Maximum 90.9 98.0 106.6 92.8 99.9 109.8 92.8 99.6 110.5 87.3 91.5 97.4 76.2 83.3 93.3 74.3 80.4 93.5 77.1 85.4 95.9 81.8 88.5 97.3 90.3 98.3 110.7 91.1 97.7 110.9 80.6 101.9 150.4 86.0 103.0 145.7 84.3 103.6 134.8 87.8 95.4 105.3 74.2 80.5 93.6 72.0 75.4 80.7 72.2 83.1 98.0 69.2 75.6 89.8 63.9 67.5 70.7 66.5 70.0 73.1 65.3 69.9 75.7 61.0 64.6 68.8 52.3 56.7 61.9 46.5 49.2 52.6 44.3 46.7 49.1 42.1 43.6 45.8 42.9 79.7 129.5 87.9 111.0 131.7 67.3 74.9 88.7 61.9 72.9 102.0 93.0 112.2 142.4 93.1 113.2 136.6 70.1 78.3 92.3 62.2 65.3 70.0 61.7 79.6 103.8 104.9 268.7 390.5 194.7 267.1 439.7 160.8 180.2 194.0 128.5 167.6 219.1 96.1 107.4 126.6 77.8 89.6 107.6 75.1 79.2 87.9 69.0 74.2 79.6 70.0 73.0 79.3 68.3 73.3 81.3 58.8 64.1 69.7 52.3 55.4 60.2 53.4 71.6 88.9 56.3 66.3 96.7 97.5 145.2 212.8 109.2 140.9 189.3 89.5 120.4 301.6 Polarconsult Alaska, Inc. Air Temperature (F) (Note 1) Minimum Average Maximum 50.5 59.3 75.7 51.6 58.7 71.9 52.6 57.1 62.9 51.6 58.3 82.3 50.1 57.6 75.9 100.7 61.9 99.7 100.2 63.2 99.7 100.1 64.8 99.7 53.3 57.6 60.3 52.1 57.0 74.9 49.9 52.7 54.9 48.4 52.9 61.0 47.7 52.5 59.2 49.3 52.3 58.3 47.3 57.7 91.1 51.5 56.4 65.6 53.3 56.7 67.2 51.8 56.9 64.5 51.6 58.7 71.2 50.9 53.1 57.0 51.0 55.7 64.4 52.3 56.6 64.1 49.7 57.0 66.9 48.9 54.9 64.4 50.6 56.4 64.0 48.8 54.8 61.9 46.7 49.2 52.7 45.5 48.5 53.5 45.3 51.4 60.2 48.3 51.2 55.9 45.7 48.3 50.4 45.1 48.1 52.5 46.8 51.5 60.0 49.5 52.6 58.1 47.6 49.0 51.0 46.9 51.2 61.9 48.0 49.8 52.2 47.4 48.6 50.7 46.6 49.4 52.5 44.9 48.8 56.7 46.7 50.0 56.4 46.0 47.3 49.6 45.8 48.3 52.1 45.9 48.5 53.4 47.4 50.6 56.4 47.7 50.5 54.8 47.4 50.5 54.9 44.3 47.9 53.6 43.5 47.4 51.2 45.8 49.1 52.3 45.8 48.5 53.6 45.2 47.4 50.0 Battery Voltage 12.97 12.96 12.95 12.96 12.96 12.96 12.96 13.00 12.98 12.98 12.94 12.91 12.93 12.88 12.95 12.93 12.91 12.92 12.93 12.86 12.90 12.91 12.91 12.89 12.90 12.88 12.86 12.88 12.88 12.89 12.83 12.87 12.89 12.86 12.83 12.85 12.87 12.82 12.85 12.84 12.86 12.79 12.82 12.83 12.85 12.83 12.82 12.83 12.75 12.80 12.84 12.78 Notes Appendix C Section C.4 Burro Creek Holdings, LLC Polarconsult Alaska, Inc. Burro Creek Hydroelectric Study Date Record Recorded Stage (ft, station datum Calculated Flow (ds) Air Temperature (F) (Note 1) Battery Count Minimum Average Maximum Minimum Average Maximum Minimum Average Maximum Voltage 9/6/11 96 4.21 4.64 5.53 163.4 229.4 393.9 44.5 47.4 51.7 12.80 9/7/11 96 3.80 4.20 4.6H14.3 163.7 227.9 44.4 49.5 55.5 12.81 9/8/11 96 3.50 3.62 3.88 84.7 96.4 122.9 41.3 45.9 49.4 12.79 9/9/11 96 3.87 4.37 4.77 122.4 185.6 245.7 46.3 50.3 53.7 12.80 9/10/11 96 3.49 3.71 4.02 84.3 105.7 139.3 42.6 47.2 53.6 12.82 9/11/11 96 3.28 3.39 3.52 67.1 75.6 87.1 38.3 43.2 49.2 12.74 9/12/11 96 3.15 3.21 3.30 57.3 61.5 68.1 42.9 47.9 54.7 12.74 9/13/11 96 3.12 3.23 3.34 55.1 63.2 71.3 46.7 49.8 55.5 12.94 9/14/11 96 3.28 3.57 4.02 67.1 93.4 139.4 48.0 50.2 52.6 13.23 9/15/11 96 3.32 3.53 4.00 69.5 88.8 136.6 44.6 47.8 53.~ 9/16/11 90 3.23 3.33 56.1 62.6 70.6 44.5 47.1 52.7 9/17/11 96 3.10 3.15 48.7 53.4 56.8 41.8 46.6 52.6 13.29 9/18/11 96 2.94 2.98 3.04 42.9 45.9 49.7 39.8 46.2 54.6 13.28 9/19/11 96 2.92 3.01 3.60 41.7 48.2 94.4 45.7 49.5 54.5 13.24 9/20/11 96 3.67 4.60 5.05 100.9 222.4 296.0 44.1 45.9 49.0 13.20 9/21/11 96 4.15 4.61 5.86 155.4 227.3 470.7 44.7 45.7 46.8 13.14 9/22/11 96 3.99 4.61 5.94 136.1 228.7 491.2 41.6 45.6 49.5 13.29 9/23/11 96 3.60 3.79 3.99 94.1 114.0 136.0 41.9 44.7 46.7 13.27 9/24/11 96 3.55 3.81 4.07 89.3 116.0 145.2 40.0 46.1 51.9 13.30 9/25/11 96 3.28 3.41 3.57 66.4 77.8 91.9 37.6 42.5 49.4 13.26 9/26/11 t=±lli 3.21 3.30 54.9 61.9 68.6 41.7 43.8 47.0 13.20 9/27/11 3.06 3.15 45.6 51.0 56.9 41.1 45.3 49.9 13.28 9/28/11 96 3.05 3.47 3.95 50.2 85.1 131.1 41.2 43.9 46.7 13.09 9/29/11 96 3.58 3.72 3.88 92.1 106.4 123.5 38.8 41.5 44.8 13.25 9/30/11 96 3.32 3.44 3.59 69.8 79.7 93.7 41.7 44.2 48.0 13.26 10/1/11 96 3.20 3.33 3.46 60.4 70.6 81.8 36.3 43.6 48.1 13.26 10/2/11 96 3.04 3.12 3.22 49.3 55.2 62.4 31.6 35.8 41.9 13.16 10/3/11 96 2.94 2.99 3.06 43.0 46.6 51.0 32.7 38.0 44.7 13.25 10/4/11 96 2.85 2.90 2.95 38.1 41.0 44.0 36.0 40.7 46.6 13.20 10/5/11 96 2.82 2.85 2.90 36.0 37.8 ~ 38.6 42.0 45.1 13.27 10/6/11 96 2.80 2.87 2.94 35.3 38.8 42.7 45.4 48.7 13.22 10/7/11 96 2.90 3.24 3.49 40.8 64.5 84.5 44.1 46.0 48.5 13.23 10/8/11 96 3.03 3.17 3.35 48.9 58.8 72.1 41.1 44.0 47.6 13.23 10/9/11 96 2.99 3.07 3.20 46.2 51.3 60.5 41.1 42.8 46.6 13.24 10/10/11 96 2.94 3.04 3.13 43.1 49.7 55.7 38.5 41.5 45.4 13.25 10/11/11 96 2.85 2.89 2.96 37.8 40.5 44.5 40.7 43.4 48.4 13.23 10/12/11 56 2.86 2.90 2.96 38.3 41.1 44.5 40.9 41.7 43.3 13.12 Notes: 1. Air temperature is measured on-board the data logger, and can be affected by logger operations or solar gain on the logger enclosure. 2. Gauge installation. 3. Power supply changed. 4. Most recent download. November 2011 Final Report Notes !----- (4) Appendix C Section C.4 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study November 2011-Final Report C-11 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study APPENDIX D-RESOURCE DATA AND ANALYSIS 0.1: Maximum Probable Flood 0.2: Geotechnical Considerations 0.3: Tsunami Hazards November 2011-Final Report page 0-1 page 0-2 page 0-2 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study November 2011-Final Report Burro Creek Holdings, LLC Burro Creek Hydroelectric Study D.l Maximum Probable Flood Polmonsult Alaska, lno. ~ Determining the maximum probable flood for Burro Creek is important for designing the in- stream diversion structure so it can withstand flood flows. Existing data from the gauging station and extended flow record is compared with U.S. Geological Survey (USGS) statistical models for southeast Alaska streams to develop initial estimates of the 100-year flood flows for Burro Creek. The USGS has developed statistical models to estimate the maximum probable floods for streams in southeast Alaska. These models are developed based on stream gauging data throughout the region, and specific parameters for the drainage basin of the stream of interest. 7 USGS model input parameters and flood flow estimates are summarized in Table D-1. The estimated 2-year flood flows in Table D-1 are approximately 131% of the highest observed flows recorded at Burro Creek in 1.8 years of measurements. This is reasonable agreement, given the accuracy of the USGS estimation method, the length of record at the gauging station, and the lack of flow measurements at peak flow conditions. The estimated 100-year maximum probable flood flows are used for the conceptual designs described in this feasibility study. Table D-1: Maximum Probable Floods at Burro Creek Parameter Basin Area (square miles) Mean Annual Precipitation (inches) (1) Percentage of Basin as Storage (lakes, ponds) Mean Minimum January Temperature (°F) (1) Estimated 500-year flood Estimated 100-year flood (Initial Estimate of Design Flood) Estimated 25-year flood Estimated 2-year flood Maximum Recorded Flow (Dec. 2009-Oct. 2011) <2! Source: Polarconsult Alaska, Inc., 2011. (1) Data are from source maps specified in the USGS publication. Burro Creek 12.39 80 2,364 cfs 1,815 cfs 1,390 cfs 641 cfs 491 cfs (2) Maximum flow is calculated from recorded stage data and the gauging station's rating curve. This calculated flow is well outside the range of measured flows used to develop the stage-discharge curve, and may have significant extrapolation error. See USGS Water Resources Investigation Report 2003-4188. November 2011-Final Report D-1 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study D.2 Geotechnical Considerations The prevalence of shallow bedrock throughout the project area precludes cost-effective trenching for burial of pipelines and power cables in some areas. Partial burial, on-grade, and/or above-grade pipelines are viable project options. Similarly, on-grade or shallow burial cables in conduit are practical options for power and communications. Access trails in certain areas may require removal of rock. To reduce construction costs, geotechnical subsurface investigation is recommended before access alignments are finalized to reduce the amount of blasting and ripping required. D.2.1 Typical Vegetation The project area is generally forested by large conifers growing in shallow soils overlaying weathered and fractured rock. Mixed conifer and deciduous vegetation tends to be prevalent where the grades are moderate and thicker soil strata occurs. D.3 Tsunami Hazards The only feature of a hydro project at Burro Creek that would be exposed to tsunami hazard is the powerhouse. All of the proposed powerhouse sites are away from the coast, at elevations of 50 or more feet above sea level. Tsunami hazard for these sites is considered minimal. Tsunamis can be generated from distant seismic events such as the March 1964 Alaska earthquake or the March 2011 Japan earthquake. Tsunamis can also be generated by local events, such as landslides into nearby waters or submarine landslides. The tsunami energy from distant sources cannot generally propagate into upper Lynn Canal and still cause tsunamis of concern to this project. Locally sourced tsunamis do occur in upper Lynn Canal, due to submarine and upland landslides or mass wasting events. Burro Creek is potentially exposed to tsunamis from events at the alluvial fan of the Skagway River (Skagway waterfront) or the east shore of Lynn Canal south approximately one mile from Skagway. Tsunami hazard should be assessed during the design phase of projects with powerhouses sited north of the dock or below the falls. November 2011-Final Report D-2 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Polmonsult Alaska, Inc~ APPENDIX E-ENVIRONMENTAL CONSIDERATIONS November 2011-Final Report Burro Creek Holdings, LLC Burro Creek Hydroelectric Study November 2011 -Final Report Polammsult Alaska, Inc.~ Burro Creek Holdings, LLC Burro Creek Hydroelectric Study E.l THREATENED AND ENDANGERED SPECIES Polmon,ult Ala>ka, ln<. ~ Threatened or endangered species, and those species designated as candidates but not yet listed to those categories, are the Kittlitz's murrelet, the yellow-billed loon, and possibly the short- tailed albatross. Preliminary consultation with the U.S. Fish and Wildlife Service indicates that this project is not expected to impact any of these species. E.2 FISHERIES AND WILDLIFE Burro Creek is not listed as an anadromous stream in the Alaska Department of Fish and Game's catalog of anadromous streams.8 The creek drops from high elevations, and the lower reaches which might allow fish passage run only a short distance to the shore. Much of the stream bed is bedrock, and does not make good fish rearing habitat. However, Dolly Varden have occasionally been reported in the creek over the years, and salmon occasionally visit the lower reaches. The habitat for these species occurs between the waterfall at mile 0.13 and tidewater. This reach of the creek formerly housed a salmon hatchery, so it might be expected that some salmon visit the area, but the habitat is not conducive to spawning. A stream survey is recommended prior to project construction. The project is not expected to have a significant impact on fisheries and wildlife resources. In the event that the limited utilization of the lower reaches of Burro Creek by Dolly Varden and salmon result in minimum flow requirements in the habitat reach, the generation potential of the project could be curtailed. If the powerhouse were located above the waterfall at site' A', no generation curtailment would be needed due to an in-stream flow requirement, as the entire habitat reach would be located downstream of the hydro project, and habitat flows would be unchanged from natural conditions. If the powerhouse were located at sites 'B', 'C', or 'D', some generation curtailment would result from a minimum in-stream flow requirement. This curtailment would depend on the amount and timing of the in-stream flow requirement. The financial impact of this curtailment would be bracketed by the 'full sales' and 'partial sales' scenarios presented in Appendix H, Table H-2. E.3 WATER AND AIR QUALITY The project will not have a significant negative impact on air or water quality. By reducing diesel combustion in the Skagway Area, and possibly powering cruise ships while in port in Skagway, it will actually improve air quality. E.4 WETLAND AND PROTECTED AREAS Based on field reconnaissance in 2009, 2010, and 2011, project configurations located on USS 1560 will not require filling wetland areas. Projects located on Federal land above USS 1560 H Catalog and Atlas of Waters Important for the Spawning, Rearing or Migration of Anadromous Fishes, Alaska Department of Fish and Game, 2010. http://www.sf.adfg.state.ak.us/SARR/awc/ November 2011-Final Report E-1 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Polmonsult Alaska, ln<.4 may require filling of small localized wetlands that occur along the penstock I access route. The project is not expected to have a significant impact on wetlands or protected areas. E.5 ARCHAEOLOGICAL AND HISTORICAL RESOURCES No archaeological or historical resources are known in the Burro Creek area. The State Historical Preservation Office will be consulted during the permitting process to determine if any historical or archaeological resources exist in the area. In addition, local Native groups will be consulted regarding cultural resources in the area. E.6 LAND DEVELOPMENT CONSIDERATIONS This project is expected to be built mostly on private land, with possible extension to US Bureau of Land Management (BLM) lands on the mountain slope above the private land. No significant impacts to land development in the area are expected to occur from this development. E.7 TELECOMMUNICATIONS AND AVIATION CONSIDERATIONS The project will not create significant impacts to telecommunications or aviation resources. E.8 VISUAL AND AESTHETIC RESOURCES Although Burro Creek falls is beautiful, it cannot be seen off the property due to dense forest. Development of the upgrade would require some tree removal which could allow the development to be seen from a distance. Reasonable efforts will be made to minimize visual impacts of the project. Depending on final siting, the new powerhouse could be visible by sea, air, and possibly from the Skagway waterfront with the use of powerful binoculars or spotting scopes. The new powerhouse would be designed to blend in with the surroundings. It would appear as another outbuilding similar to the buildings already existing along the shore at Burro Creek. No significant impacts to visual or aesthetic resources would occur from this project. E.9 MITIGATION MEASURES No impacts warranting mitigation are known at this time. November 2011 -Final Report E-2 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Polae<on,ult Alaska, Inc.~ APPENDIX F-PERMITTING INFORMATION F.l: Federal Permits F.2: State Permits F.3: Local Permits November 2011 Final Report pages F-1 to F-2 pages F-2 pages F-3 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study November 2011-Final Report Burro Creek Holdings, LLC Burro Creek Hydroelectric Study F.l FEDERAL PERMITS F.l.l Federal Energy Regulatory Commission Pola<Consult Alaska, Inc.~ Most hydroelectric projects in Alaska are licensed by the Federal Energy Regulatory Commission (PERC). These licenses determine how to allocate stream flows between energy generation and other beneficial uses recognized by the Federal Power Act, and other applicable laws. Small hydroelectric projects (under 5 MW) may be exempted from obtaining a PERC license under certain conditions, such as the use of a natural water feature, and control over all non-Federal lands impacted by the project. An applicant must file for a PERC exemption application which includes such documentation as: Y a detailed project description; Y proof of property ownership or rights obtained for use; Y project schematics and maps; Y an environmental report outlining the project areas: o flora and fauna, o land and water uses, o recreational uses, o historical and archeological resources, o water quality and quantity, o scenic and aesthetic resources, o and endangered or threatened species, and critical habitats. Y Description of expected environmental impacts; Y Proof of consultation with pertinent agencies, including having supplied such agencies with the draft application and required studies, and having received and addressed agency comments. If a PERC license is required for the project, all State and Federal permitting efforts will be managed through that licensing process. Projects exempted from PERC licensing must use normal State and Federal permitting processes. To determine if the project is eligible for an exemption, a Declaration of Intent should be filed, and PERC will determine whether the project must obtain an exemption or a license. F.1.2 U.S. Bureau of Land Management Project configurations utilizing diversion sites 1, 2 or 3 place the project onto Federal land managed by the U.S. Bureau of Land Management (BLM). Land use permits must be obtained for that use. F.1.3 U.S. Forest Service The project area is not located within the Tongass National Forest, so is not required to obtain land use permits from that agency. November 2011-Final Report F-1 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Pola.wnsult Alaska, Inc~ F.1.4 U.S. Army Corps of Engineers Army Corps of Engineers (COE) permits must be obtained for work within waters of the U.S., which includes the diversion structure in Burro Creek and the submarine cable from Burro Creek to Skagway. COE permits are also required for work in wetlands. No wetland work is necessary for projects with diversions at sites 4 or 5 (on USS 1560), however projects with diversions at sites 1, 2 or 3 (on BLM land above USS 1560) will require some work in wetlands. If this project is exempted from FERC licensing (or ruled non-jurisdictional because it is located entirely on USS 1560), it is expected to be eligible for a Nation Wide Permit #17 for hydroelectric projects. Otherwise, the project must be permitted as part of the FERC licensing process. F.l.S U.S. Environmental Protection Agency A storm water pollution prevention plan will be required for construction of this project. F.1.6 Federal Aviation Administration None of the project alternatives will present hazards to aviation. F.1.7 U.S. Fish and Wildlife Service Preliminary consultation with the U.S. Fish and Wildlife Service indicates that this project is not expected to impact any threatened or endangered species. If the status of threatened or endangered species changes, or other species in the project area become listed as threatened or endangered, then another consultation must be requested. F.1.8 NOAA/National Marine Fisheries Service No marine species listed as threatened or endangered use the project area. A biological assessment must be performed to determine if any essential fish habitat will be impacted by the project. F.1.9 U.S. Coast Guard As-built drawings showing underwater cable locations must be provided to the U.S. Coast Guard for incorporation into navigational charts. F.l.lO U.S. Department of Energy (DOE) Two additional permits are required from the DOE for sale of energy to markets in Canada. These are: 1. Presidential Permit. 2. Export Authorization. Projects that were built for the Canadian market would also require FERC licensing due to their location on Federal land. These permit applications would be filed concurrently with submittal of the License Application to the FERC. The development cost estimates and schedules include these permitting processes for projects over 5 MW that could sell to Canadian markets. November 2011 -Final Report F-2 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Pola"""'"" Ala•ka, In<.~ F.2 STATE OF ALASKA PERMITS F.2.1 Alaska Department of Natural Resources Coastal Zone Consistency Review: Although the Alaska Coastal Zone Management Program was discontinued in 2010, there is a move to reconstitute it Progress on this movement should be followed. Likely much of the information for a possible future consistency review will be gathered for other permitting agencies. Land Authorizations: This project will not occupy State land. Tidelands Permits: Tidelands easements will be required if undersea cables are to be used for this project Material Sale Agreement: Not applicable. Water Use Permits/Water Rights: Water rights from the Alaska Department of Natural Resources will need to be obtained for this project. F.2.2 Alaska Department of Fish and Game The project will need to obtain either a fish habitat permit or a finding that a permit is not required from the Alaska Department of Fish and Game. F.2.3 Alaska Department of Transportation and Public Facilities Not applicable. F.2.4 Alaska Department of Environmental Conservation Wastewater or Potable Water Permits: Not applicable. Solid Waste Disposal Permit: Not applicable. Air Quality Permit and Bulk Fuel Permits: Not applicable. F .2.5 Regulatory Commission of Alaska The Regulatory Commission of Alaska (RCA) governs how an electric utility may operate and sell its power. The regulations are complex, and may be waived at the discretion of the five RCA commissioners if they feel it is in the "Public Interest." In general, the RCA regulations of relevance to this project are as follows: );;> If a power producer produces less than 1 MW above its own power needs, it may sell that excess power to a local utility without certification, and the utility must pay at its "avoided cost" (for APC, that is currently about 28 cents per kWh). If the excess produced is above 1 MW, the power producer must certify as an Independent Power Producer, and must negotiate with the utility to sell that power to the utility. );> An Independent Power Producer can either sell up to $50,000 worth of power, or to less than 10 customers without being certified as a utility. November 2011-Final Report F-3 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study ~ A power producer can file as a utility within another utility's service area, but it will be up to RCA commissioners whether the producer gets that certificate or not. ~ A power producer may sell power to businesses owned in common with the owner of the power producer without being certified as a utility. ~ A power producer can get a "service" contract with a utility to sell power to customers using its transmission lines and equipment. In this case, the power producer will likely pay a charge per kWh (wheeling charge) to the utility for the use of its transmission and distribution infrastructure. ~ A power producer may sell power to a cooperative such as IPEC without being certified as a utility. In addition, a power producer can be exempted from having to be certified as a utility through AS 42.05.711(r) as follows: A plant or facility that generates electricity entirely from renewable energy resources, as that term is defined in AS -t2..t5.0-t5 , is exempt from regulation under this chapter if (1) the plant or facility (A) is first placed into commercial operation on or after the effective date of this subsection and before January 1, 2016; and (B) does not generate more than 65 megawatts of electricity; (2) the electricity generated by the plant or facility is sold only to one or more electric utilities that are regulated by the commission; and (3) the person that constructs, owns, acquires, or operates the plant or facility has not received from the State (A) a grant that was used to generate the electricity from the renewable energy resources; or (B) a tax credit related to the generation of electricity from the renewable energy. Exemption from economic regulation is also possible on public interest grounds under AS 42.05.711 (r). F.3 LOCAL PERMITS The project is located within the Municipality of Skagway, and is in an area zoned Residential- conservation. Electric facilities is a permitted principal use in this zoning area, however, a local building permit will be required prior to construction. November 2011-Final Report F-4 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Pola.mnsult Alaska, Inc~ APPENDIX G-TECHNICAL ANALYSIS G.1: Potential Project Configurations G.2: Electrical Output of Project Configurations G.3: Transmission Alternatives November 2011-Final Report pages G-1 to G-7 pages G-8 to G-9 pages G-10 to G-12 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study November 2011-Final Report Polmon<ult Ala<ka, Inc~ Burro Creek Holdings, LLC Burro Creek Hydroelectric Study G.l POTENTIAL PROJECT CONFIGURATIONS Pola<eonsult Alaska, Inc.~ Hydropower development options for Burro Creek were identified by collecting and analyzing resource data for Burro Creek. The resource data included stream hydrology, site topography, and related information. Environmental and regulatory factors were also considered in developing candidate project configurations. Several potential diversion sites, powerhouse sites, and design flows were evaluated for Burro Creek. These are summarized in Table G-1 and discussed in this section. Each combination of these project configurations was analyzed for estimated cost, estimated energy generation, and environmental issues, and the most favorable project configurations identified. Table G-1: Range of Project Options Considered Parameter Diversion Location Powerhouse Location Design Flow Source: Polarconsult Alaska, Inc., 2011. G.l.l Diversion Locations Values Considered 1. 1,160 ft. elevation 2. 1,000 ft. elevation 3. 800 ft. elevation 4. Existing Diversion (235ft.) 5. Property Line (340ft.) A. Existi'ng Powerhouse (33 ft.) B. Below Falls (50 ft.) C. Above Falls (80ft.) D. North of Dock (50 ft.) 50 cfs (30-inch penstock) 70 cfs (36-inch penstock) 110 cfs (42-inch penstock) Five diversion sites were considered in this study. As the diversion site moves upstream, the project head increases, increasing potential energy output, but the available water in Burro Creek decreases, decreasing potential energy output. The diversion sites extend from the existing hydro intake at mile 0.42 (elevation 235 feet) upstream to mile 2.58, where a major tributary joins Burro Creek from the south (elevation 1,160 feet). This tributary and another tributary that joins Burro Creek from the north at mile 2.74 comprise a significant fraction of the basin area, so a diversion above mile 2.58 is not considered practical due to the reduced flow above these tributaries. Characteristics of the five diversion locations considered are summarized in Table G-2. November 2011-Final Report G-1 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Table G-2: Diversion Site Considerations Diversion Site Site #5 Existing Intake Site #4 Property Line Site #3 Conceptual Site #2 Conceptual Site #1 Conceptual Elevation 235' 340' 800' 1,000' 1,160' Basin Area (Square Miles) 12.33 12.21 10.44 9.70 9.10 Source: Polarconsult Alaska, Inc., 2011. Advantages -Exposed rock across creek section. -On private property, avoids FERC licensing. -On private property, avoids FERC licensing. -95' more head. -460' more head. -200' more head. -160' more head. Diversion Site #5 -Existing Diversion (235 feet) Disadvantages -Low head, limited generation potential . -Lacks exposed bedrock, more difficult construction. -Lacks exposed bedrock, more difficult construction. -On Federal property, requires FERC licensing. -5,100' more penstock and access trail required -14.5% less water (gross). -Lacks exposed bedrock, more difficult construction. -On Federal property, requires FERC licensing. -2,700' more penstock and access trail required. -7.1% less water (gross). -Lacks exposed bedrock, more difficult construction. -On Federal property, requires FERC licensing. -2,200' more penstock and access trail required. -6.4% less water (gross). The existing diversion site (Photographs B-4 through B-6) is favorable due to the presence of exposed bedrock that simplifies construction of a diversion structure. Topography at the site also allows for the penstock to rapidly depart the creek bed, reducing flood hazard to the penstock. A project developed at this site would also be wholly sited on private land, simplifying the permitting requirements for the project. The primary disadvantage of this site is that it is at a significantly lower elevation than upstream sites, limiting the energy potential of a hydro project with a diversion sited here. Existing access to the existing diversion site is via foot trail. The existing diversion was built with hand labor, and no motorized trail exists. A construction trail could be built to this diversion site using conventional methods and equipment. The most favorable route appears to November 2011 -Final Report G-2 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study start at the trail that heads north from the dock, and joins up with the existing penstock at approximately station 5+25. The trail would deviate north from the existing penstock paralleling it on a higher bench approximately 100 feet to the north and rejoining at the diversion site. Penstock routes would depend on the powerhouse location, and are shown on Figure A-3. Diversion Site #4-Diversion at Property Line (340 feet) A diversion at the property line was considered because it represents the maximum head that can be developed on USS 1560. A diversion here would maximize energy generation while avoiding the additional permits required to access Federal land. Bedrock is not visible in the creek bed or surrounding terrain at this diversion site. In this area, the creek is incised about six to eight feet into a relatively flat valley floor. Because of the coarse bed material and lack of visible bedrock, the diversion structure should be kept as short as possible to minimize the amount of water that flows through the gravels beneath the structure. There is no development on USS 1560 above the existing diversion structure. The terrain from the existing diversion up to the property line is not difficult for trail building. Approximately 250 feet of sidehill would be necessary approximately 400 feet below the diversion to maintain a downhill grade from the diversion. The access trail could take an alternate route up this hill if necessary. Field inspection also identified some possible small wetland areas along this route. It may be practical to avoid these by proper routing of the access trail I penstock. Diversion Site #3 -at BOO-foot Elevation Field investigations on the ground for this study extended up to approximately the 700-foot elevation. The creek at the 800-foot elevation was not inspected on the ground during field investigations for this study. Based upon review of aerial photography and topographic maps, conditions at 800 feet appear similar to conditions at and below 700 feet, with the creek incised 5 to 10 feet in a bed armored with large boulders. Little if any bedrock is exposed in the creek bed. The primary advantage of this site is the increased elevation and increased generation potential. Disadvantages include: ~ The project would be located on Federal land, requiring additional permits; ~ An additional 5,100 feet of access trails and penstock are required to capture the additional460 feet of head compared with an intake at 340 feet; and ~ The available flows in Burro Creek are reduced due to the loss of tributary flow, decreasing potential project output. The net effect of the differences between the 340 and 800-foot diversion sites is positive. An intake at 800 feet will generate more energy at a lower cost than an intake at 340 feet. Access routes to the 800 foot diversion were not evaluated on the ground. Review of topographic maps and aerial photographs suggest the terrain steepens and exposed bedrock becomes more prevalent. Cost estimates assume more expensive trail work for blasting and sidehill work to pioneer a trail to this site. November 2011-Final Report G-3 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Diversion Site #2 -Diversion at 1,000-foot Elevation Field investigations on the ground for this study extended up to approximately the 700-foot elevation. The creek at the 1,000-foot elevation was not inspected on the ground during field investigations for this study. Based upon review of aerial photography and topographic maps, conditions at 1,000 feet appear similar to conditions along the creek from approximately 250 feet to 700 feet. The primary advantage of this site is the increased elevation and increased generation potential. Disadvantages include: Y The project would be located on Federal land, requiring additional permits; Y An additional 2,700 feet of access trails and penstock are required to capture the additional200 feet of head compared with an intake at 800 feet; and Y The available flows in Burro Creek are reduced due to the loss of tributary flow, decreasing potential project output. The net effect of the differences between the 800-foot and 1,000-foot diversion sites, within the level of detail of this study, is neutral. This project would output more energy than a project with a diversion at 800 feet, but the estimated cost of energy from either project is approximately equal. Access routes to the 1,000-foot diversion were not evaluated on the ground. Review of topographic maps and aerial photographs suggest that the terrain between the 800 and 1,000- foot diversions is similar to terrain in the vicinity of the 340-foot diversion site. Cost estimates reflect these assumed conditions. Diversion Site #1 -Diversion at 1,160-foot Elevation A diversion at 1,160-foot elevation would be located just downstream of a major tributary. This is the farthest upstream diversion location that is considered practical. Field investigations on the ground for this study extended up to approximately the 700-foot elevation. The creek at the 1,160-foot elevation was not inspected on the ground during field investigations for this study. Based upon review of aerial photography and topographic maps, conditions at 1,000 feet appear similar to conditions along the creek from approximately 250 to 700-foot elevations. The primary advantage of this site is the increased elevation and increased generation potential. Disadvantages include: Y The project would be located on Federal land are require additional permits; Y An additional 2,200 feet of access trails and penstock are required to capture the additional160 feet of head compared with an intake at 1,000 feet; and Y The available flows in Burro Creek are reduced due to the loss of tributary flow, decreasing potential project output. The net effect of the differences between the 1,000-foot and 1,160-foot diversion sites, within the level of detail of this study, is negative. The additional project costs are not justified by the additional energy output. November 2011 -Final Report G-4 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Polmonsult Alaska, In<.~ Access routes to the 1,160-foot diversion were not evaluated on the ground. Review of topographic maps and aerial photographs suggest that the terrain between the 1,000 and 1,160- foot diversions is similar to terrain in the vicinity of the 340-foot diversion site. Cost estimates reflect these assumed conditions. G.1.2 Penstock Routes Upper Penstock Routes Upper penstock routes are shown on Figure A-4. Penstocks starting at diversion sites 1, 2, or 3 would initially be built on access trails that side hill through mountainous terrain with typical slopes of 2:1 to 3:1. These access trails would be built at a 2 to 4% grade descending from the diversion site. Some blasting will likely be necessary to maintain this grade. Steeper grades are allowable to avoid prominent outcrops or other obstacles, but maintaining a shallow grade will allow for increased use of lower pressure pipe, reducing penstock material costs. Approximately 1,000 feet downstream of diversion site 3, all three penstock routes encounter steeper terrain. For the next approximately 3,500', the penstock routes traverse terrain with typical slopes of 1:1. Significant trail building work and blasting will be needed to provide access and a penstock bench through this area. An incised ravine occurs approximately 1,500 feet below diversion site 3. This ravine is co- located with a major avalanche chute on the south side of Burro Creek. There is abundant evidence that powder blast from this avalanche chute has felled mature trees approximately 200-300 vertical feet up the north side of Burro Creek Valley. The penstock from diversion site 3 (800-foot elevation) would cross through this hazard zone. Penstocks from diversion sites 1 and 2 would pass above this hazard zone. All three penstock routes would start a steep (20 to 25%) downhill grade towards the powerhouse near the northwest property corner of USS 1560. As the penstock routes approach the existing intake site, they would follow similar routes to the lower project penstock routes shown on Figure A-3 to reach any of the four proposed powerhouse sites. Figure A-4 only shows routes to powerhouse site 'D' for clarity. Lower Penstock Routes Lower penstock routes are shown on Figure A-3. Penstocks starting at diversion sites 4 would initially cross relatively flat terrain. About 250 feet from the diversion, the penstock would start to sidehill through 1:1 slopes for about 400 feet. After this sidehill, the penstock would traverse another 800 feet of relatively flat terrain until it reached the vicinity of the existing intake structure. At this point, the penstock route would diverge as shown on Figure A-3 depending on the powerhouse site. Above the existing intake /diversion site 5, there is sufficient material on-site to build trails and bed the penstock. Below the existing intake /diversion site 5, exposed rock becomes increasingly common. November 2011-Final Report G-5 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study G.1.3 Powerhouse Locations Four potential powerhouse sites were considered in this study. They are listed in Table G-3 and shown in Figure A-2. Advantages and disadvantages of the powerhouse sites are summarized in Table G-3. Analysis of potential project configurations considered all of these sites. Table G-3: Powerhouse Site Considerations Powerhouse Site Site 'A' Existing Site Site 'B' Below Falls Site 'C' Above Falls Site 'D' North of Dock Elevation 33' 50' 80' 50' Advantages -Highest head of sites. -returns all water to Burro Creek. -Good access. -Returns all water to Burro Creek near top of fish habitat. -Good access. -Returns all water to Burro Creek above fish habitat. - A voids aesthetic impacts to waterfall. -Away from existing development (avoids noise or aesthetic impacts). -Good access. Source: Polarconsult Alaska, Inc., 2011. Disadvantages -In center of existing development. Could be incompatible with future development (noise, aesthetics) -Reduced flow in part of fish habitat. -On edge of existing development. Could be incompatible with future developments. -Reduced flow in part of fish habitat -Lowest head of all sites. -May impact waterfall viewshed from some vantages. -Access not as good as other sites. -Tailrace discharges to Lynn Canal, reduces flows in Burro Creek fish habitat. For projects with diversions at 235 feet or 340 feet, the elevation of the powerhouse site significantly influences the energy output of the project. For projects with diversions at 800 feet or above, the elevation of the powerhouse site becomes of lesser importance. Because of this, evaluation of the lower head projects includes individual powerhouse sites, but evaluation of the higher head projects assumes the existing powerhouse site in all cases. The higher head projects could use any of the four powerhouse sites with a less than 5% variation in cost or project energy output. G.1.4 Design Flows Design flows of 50, 70, and 110 cfs were considered in this study. Table G-4 summarizes the expected plant capacity factor for each design flow. November 2011-Final Report G-6 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Table G-4: Expected Plant Capacity Factor for Different Project Configurations Design Nominal Diversion Site 5 Diversion Site 4 Diversion Diversion Diversion Flow Penstock (235 ft., Existing (340 ft., Property Site 3 Site 2 Site 1 (cfs) Diameter Diversion) Line) (800ft.) (1,000 ft.) (1,160 ft.) 50 30-inch 54.0% 52.9% 50.5% 49.2% 48.2% 70 36-inch 47.8% 46.9% 44.2% 42.8% 41.6% 110 42-inch 39.5% 38.1% 34.9% 33.4% 32.4% Source: Polarconsult Alaska, Inc., 2011. Notes: Plant capacity factor includes an assumed 90% plant reliability applied to net energy generation. All capacity factors are for projects with powerhouses sited at the existing powerhouse site. November 2011-Final Report G-7 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study G.2 ELECTRICAL OUTPUT OF PROJECT CONFIGURATIONS The five diversion locations, four powerhouse sites, and three design flows create a total of 60 potential project configurations. This number was reduced to 33 configurations by eliminating consideration of the multiple powerhouse sites for the three highest-head diversion options. For projects with diversions at 235 feet (existing diversion) or 340 feet (property line), the elevation and location of the powerhouse site significantly influences the estimated cost and estimated energy output of the project. For projects with diversions at 800 feet and above, differences in the powerhouse elevation and location is of lesser importance, and is estimated to vary cost and energy output by less than 5%. At this stage of analysis, this difference is not meaningful. If one of the higher head projects is selected for development, powerhouse siting should receive scrutiny with regard to energy output, cost, environmental factors, and aesthetics. Average energy output was calculated for each of the 33 configurations. Average daily flow statistics from the Burro Creek hydrology model (Appendix C) were input to an engineering model for each of the project configurations to estimate average daily energy generation. The engineering model computed net energy generation considering the following factors: );> Gross project head );> Penstock friction losses and net head );> Daily project flow );> Turbine type and turbine efficiency curve 9 );> Station service power loads );> Transformer and cable losses from Burro Creek to delivery in Skagway. Table G-5 presents the results of this analysis on a monthly and annual basis. The estimated performance data presented in Table G-5 was reviewed in conjunction with estimated capital and annualized project costs to identify the project configurations expected to produce the lowest cost power. The results of this analysis are presented in Appendix H. A single two-jet Pelton turbine is assumed for all project configurations. Turbine efficiency curves vary with the project installed capacity in accordance with typical turbine manufacturer's data. November 2011-Final Report G-8 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Project Configuration 50 cfs Desie:n Fl 10-50 20-50 30-50 4A-50 4B-50 4C-50 40-50 --· SA-50 -----------. 5B-50 SC-50 50-50 Installed Capacity (kW) (30" 3,400 3,000 2,400 820 900 900 970 430 490 500 560 January (kWh) k) 245,000 225,000 194,000 80,000 87,000 87,000 93,000 46,000 ---· 54,000 54,000 59,000 70 cfs Desie:n Fl ~ (36" tock) 10-70 4,400 214,000 20-70 3,800 200,000 --- 30-70 3,000 179,000 4A-70 1,030 77,000 4B-70 11100 84,000 4C-70 1,150 84,000 40-70 1,220 89,000 --- SA-70 630 40,000 -5B-70 720 46,000 5C-70 735 46,000 ----- 50-70 800 50,000 110 cfs Design Flo~ (42" Eenstock) 110 cfs Desie:n Flow (42" k) 10-110 71300 193,000 - 20-110 6,500 182,000 ~-------- 30-110 5,250 156,000 4A-110 1,840 64,000 ~ - 4B-110 2,000 70,000 4C-110 2,025 70,000 40-110 2,170 74,000 SA-110 970 31,000 5B-110 1,100 36,000 5C-110 1,130 36,000 50-110 11250 39,000 February (kWh) 225,000 207,000 179,000 74,000 81,000 81,000 86,000 43,000 50,000 50,000 55,000 196,000 186,000 1671000 71,000 - 771000 77,000 821000 36,000 421000 42,000 461000 1831000 168,000 143,000 59,000 65,000 65,000 691000 29,000 33,000 331000 37,000 ----------------- ·- - -- March (kWh) 196,000 183,000 160,000 65,000 72,000 72,000 76,000 36,000 41,000 41,000 45,000 168,000 155,000 139,000 60,000 -- 65,000 65,000 69,000 30,000 341000 34,000 381000 80,000 -- 88,000 1081000 52,000 571000 57,000 611000 25,000 29,000 29,000 32,000 April (kWh) 500,000 461,000 392,000 155,000 170,000 170,000 181,000 89,000 103,000 104,000 114,000 498,000 459,000 3921000 158,000 173,000 173,000 184,000 91,000 105,000 105,000 1161000 4601000 431,000 3761000 154,000 1681000 168,000 178,000 86,000 99,000 100,000 109,000 May (kWh) 1,964,000 1,721,000 1,402,000 498,000 543,000 548,000 587,000 264,000 303,000 309,000 345,000 2,455,000 2,183,000 1,791,000 649,000 7081000 713,000 7621000 3471000 3991000 405,000 449,000 2,7331000 2,516,000 2,143,000 834,000 911,000 915,000 9751000 455,000 525,000 530,000 .. __ 585!QOO June (kWh) 2,206,000 1,904,000 1,522,000 521,000 568,000 574,000 616,000 273,000 313,000 321,000 359,000 3,130,000 2,702,000 2,1601000 742,000 808,000 8161000 874,000 389,000 446,000 455,000 507,000 4,371,000 3,9041000 3,217,000 1,151,000 112551000 1,265,000 1,354,000 609,000 700,000 712,000 793,000 July (kWh) 2,273,000 1,964,000 1,571,000 539,000 587,000 593,000 637,000 282,000 324,000 331,000 371,000 3,146,000 2,738,000 2,202,000 763,000 832,000 839,000 900,000 401,000 4601000 469,000 5231000 411751000 3,739,000 3,0971000 11130,000 1,2331000 1,242,000 1,3291000 600,000 690,000 701,000 780,000 ·- August (kWh) 2,145,000 1,877,000 1,520,000 531,000 578,000 585,000 628,000 280,000 322,000 329,000 368,000 2,627,000 2,350,000 11946,000 710,000 7751000 781,000 835,000 378,000 434,000 442,000 491,000 2,798,000 2,5841000 2,202,000 870,000 9501000 955,000 1,017,000 472,000 544,000 549,000 606,000 - September (kWh) kWh 1,813,000 1,609,000 1,321,000 474,000 517,000 521,000 559,000 252,000 289,000 295,000 329,000 ... October (kWh) November (kWh) h -~ ----------- 1,840,000 737,000 1,626,000 675,000 1,329,000 577,000 478,000 231,000 521,000 252,000 526,000 253,000 563,000 269,000 255,000 135,000 293,000 156,000 298,000 156,000 332,000 172,000 kWh net t' th --------o----------L--------- 2,125,000 2,178,000 764,000 1,908,000 1,950,000 696,000 - 1,5831000 1,624,000 591,000 591,000 603,000 235,000 645,000 6591000 2571000 649,000 663,000 257,000 693,000 707,000 273,000 317,000 324,000 140,000 3651000 3731000 162,000 370,000 377,000 163,000 4101000 418,000 179,000 kWh net generation per month kWh h 2,135,000 212811000 773,000 1,998,000 2,102,000 711,000 1,712,000 1,816,000 612,000 693,000 719,000 245,000 7581000 7861000 2681000 760,000 789,000 268,000 809,000 840,000 2851000 - 384,000 400,000 145,000 443,000 4621000 167,000 446,000 465,000 168,000 4921000 513,000 1841000 Polarconsult Alaska, Inc. G Table G-5: Average Monthly and Annual Energy Generation of Different Project Configurations - December (kWh) 456,000 421,000 359,000 144,000 157,000 158,000 167,000 86,000 99,000 99,000 109,000 442,000 408,000 3531000 143,000 157,000 1571000 1671000 85,000 98,000 98,000 107,000 399,000 375,000 333,000 137,000 1501000 150,000 160,000 74,000 86,000 86,000 94,000 ANNUAL (kWh) 14,600,000 12,873,000 10,526,000 3,790,000 4,133,000 4,168,000 4,462,000 2,041,000 2,347,000 2,387,000 2,658,000 17,943,000 15,935,000 1311271000 4,802,000 5,240,000 5,274,000 5,635,000 2,578,000 219641000 3,006,000 3,3341000 20,581,000 18,798,000 15,915,000 6,108,000 6,6711000 6,704,000 7,151,000 3,310,000 3,814,000 3,855,000 41264,000 SEASONAL (4/1-9/30) (kWh) 10,901,000 9,536,000 7,728,000 2,718,000 2,963,000 2,991,000 3,208,000 1,440,000 1,654,000 1,689,000 1,886,000 13,981,000 12,340,000 --·---- 10,074,000 3,613,000 3,941,000 3,971,000 4,248,000 1,923,000 --- 21209,000 2,246,000 21496,000 16,672,000 15,172,000 12,747,000 4,832,000 512751000 5,305,000 5,662,000 2,606,000 3,001,000 3,038,000 3,365,000 Seasonal I Annual 75% 74% 73% 72% 72% 72% 72% 71% 70% 71% 71% 78% 77% ~ 77% 75% 75% 75% 75% 75% 75% 75% 75% -· - 81% -- 81% ·-- 80% 79% 79% 79% 79% 79% 79% 79% 79% Project Configurations: 1 = 1,1601 Diversion, 2 = 1,0001 Diversion, 3 = 800' Diversion, 4 = 340' Diversion (Diversion at USS 1560 property line), 5 = 2351 Diversion (existing hydro diversion) . A = powerhouse above waterfall at 80' 1 B =powerhouse below waterfall at 50', C = powerhouse north of dock at 50' 1 D = powerhouse at existing powerhouse site at 331. For projects with diversions at 800' and above (sites 1, 21 and 3)1 the powerhouse location has a minor effect on energy location, so only the existing powerhouse site ('D') is listed . November 2011 -Final Report G-9 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Polmon<ult Ala<ka, Inc~ G.3 TRANSMISSION ALTERNATIVES Four options were considered to move the electricity generated at Burro Creek to market. 1. AC submarine cable from Burro Creek to Skagway. 2. AC submarine cable from Burro Creek to Kasidaya Creek. 3. DC submarine cable from Burro Creek to Skaway. 4. AC overland transmission line from Burro Creek to Dyea and on to Skagway. Figure A-5 shows these four routing options. Of these options, an AC submarine cable from Burro Creek to Skagway is estimated to be the least costly, and is the transmission method used in this study to get Burro Creek power to market. These four transmission options are discussed below, and estimated costs for each option are summarized in Table G-6. Table G-6: Estimated Costs for Power Line-Burro Creek to Skagway AC Cable AC Cable to HVDC Overland Item to Kasidaya Cable to ACto Skagway Creek Skagway Skagway Pre-construction (Permitting, Design) $135,000 $135,000 $135,000 $175,000 Interconnections, Burro and Skagway $30,000 $30,000 $1,900,000 $20,000 AC Submarine Cable $1,200,000 $1,500,000 DC Submarine Cable $800,000 AC Overhead Power Line $615,000 AC Overhead Power Line (Upgrade to 3 ph) $245,000 AC Buried Power Line $345,000 AC Buried Power Line (Upgrade to 3 ph) $540,000 Construction Management & Administration $110,000 $130,000 $220,000 $150,000 Construction Engineering & Inspection $110,000 $130,000 $220,000 $150,000 Contingency (25%) $340,000 $415,000 $680,000 $470,000 Total Estimated Cost $1,925,000 $2,340,000 $3,955,000 $2,710,000 Source: Polarconsult Alaska, Inc., 2011. Note: All cost estimates are for a 3 MW project and transmission line capacity. G.3.1 AC Submarine Cable from Burro Creek to Skagway An AC cable from Burro Creek to Skagway would be approximately 2.2 miles long and could be routed to stay in waters less than 600 feet deep. Bottom profiles along the cable route were obtained from NOAA navigation charts and bathymetric surveys performed for installation of APC's Upper Lynn Canal transmission system. For reliability, four individual power cables would be installed, three cables for three phase service and one spare cable. November 2011-Final Report G-10 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study I'ola<Consult Alaska, In<.~ G.3.2 AC Submarine Cable from Burro Creek to Kasidaya Creek AP&T's upper Lynn Canal transmission system makes a shore landing at the Kasidaya Creek hydroelectric project. An AC submarine cable from Burro Creek to Kasidaya Creek is feasible, however it would be approximately % of a mile longer and cross deeper waters than a similar cable to Skagway. For these reasons, the cost of this cable connection is expected to be slightly higher than a submarine cable to Skagway. This route may warrant future consideration if a cable to Skagway is determined to not be feasible. G.3.3 HVDC Submarine Cable from Burro Creek to Skagway In the past, High Voltage Direct Current (HVDC) transmission has not been an option for power transmission needs under approximately 50 MW. Starting in 2007, the Denali Commission began funding development of small-scale HVDC transmission system technology in order to lower the costs of small transmission lines in Alaska. The first full-functionality 500 kW HVDC converters will be built and tested by the end of 2011, and these converters are expected to be commercially available by the time Burro Creek is under final design. HVDC interties have higher terminal costs than AC interties, but lower per-mile costs. Thus, HVDC interties are generally not cost effective for interties as short as the Burro Creek -Skagway intertie needed for this project. The HVDC technology was reviewed in this application to see if it presents a more economic alternative to AC cables. The HVDC converters would feed directly from the 480 volt bus of the Burro Creek power plant. Under the larger project configurations, a step down transformer from 4,160 volt generation to 480 volt for DC conversion would be required. From the converters, two HVDC submarine cables would cross 2.2 miles to Skagway to an identical set of HVDC converters.10 A step-up transformer would convert the 480 volt three phase from the HVDC converters up to the local distribution voltage on the APC grid. One submarine cable would operate at +50 kV DC, and the second cable would be a neutral metallic return. Sea electrodes would also be provided at each end of the HVDC line for emergency operation in sea-return mode in the event of a cable failure. G.3.4 AC Overland transmission line from Burro Creek to Dyea and on to Skagway This transmission routing would consist of the following major parts: 10 Y Approximately 3.5 miles of new overhead 24.9 kV three phase AC power line from Burro Creek north along Lynn Canal towards Dyea. In rural settings, HVDC can use a single cable with sea return to complete the transmission circuit. At this stage of analysis for this application, a metallic return cable is assumed to avoid induced currents and accelerated corrosion of the extensive marine infrastructure in Skagway. Further investigation may demonstrate that a sea return for an HVDC transmission link is an appropriate system configuration for this project. However, for this project, the estimated cost of an HVDC transmission link is not competitive against AC even using a single cable I sea return configuration because the transmission line is so short. November 2011-Final Report G-11 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Pola.con<ult Ala<ka, Inc fl, Y Approximately 2.3 miles of buried 24.9 kV three phase AC power line within Klondike Gold Rush National Historic Park to reach the end of APC's existing single phase buried distribution in Dyea. Y Approximately 2.7 miles of upgrade of single phase buried power line to three phase 24.9 kV buried power line from Dyea towards Skagway. Y Approximately 2.7 miles of upgrade of single phase overhead power line to three phase overhead 24.9 kV power line to the end of existing three phase distribution near Skagway. In total, approximately 11.2 miles of new or upgraded overland power line is necessary to reach the Skagway market. The length and cost of line extensions I upgrades is not competitive with more direct submarine cable options. Additionally, the overland power line route would traverse very steep terrain between Burro Creek and Dyea that is prone to avalanches and logistically challenging. Aesthetics of this power line are also a concern, as the power line would be highly visible from the Skagway waterfront as well as from cruise ships arriving in Skagway. Another factor is that this line routing would require use of Federal lands, requiring PERC involvement, regardless of whether the hydro project used lands upstream from USS 1560. November 2011-Final Report G-12 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study APPENDIX H-CAPITAL COST ESTIMATES AND FINANCIAL SCENARIOS H.l: Project Cost Estimates pages H-1 to H-7 H.2: Assumptions in Project Cost Estimates and Scenarios pages H-6 to H-8 H.3: Funding Opportunities page H-9 November 2011-Final Report Burro Creek Holdings, LLC Burro Creek Hydroelectric Study November 2011 -Final Report Burro Creek Holdings, LLC Burro Creek Hydroelectric Study H.l PROJECT COST ESTIMATES The total installed cost of select project configurations is presented in Table H-1. Table H-2 presents simplified business models for select project configurations. Two financing structures and two market structures are considered, for a total of four Business Model Scenarios. These are: Business Model Scenarios Energy Market Full Energy Partial Energy Presented in Table H-2 Sales Sales Financing 20% Debt, Balance Equity MODEL 1 MODEL2 Structure 50% Grants, Balance Equity and Debt MODEL3 MODEL4 The first of the two financing structures assumes no grants are used to pay for the project's capital costs, so the project is financed through a combination of 20% equity and 80% debt. The second of the three financing structures assumes that grants are used for 50% of the project's capital costs, up to a maximum of $8,500,000. 11 The balance of the capital cost is assumed to come from owner equity (up to 20% of the total capital cost), and any remaining balance is provided as debt. Many other financing structures are possible, but these two cases reasonably consider the resultant annualized project expenses and resulting energy sales price. Two markets are considered. The first is full energy sales, so the full potential output of the project is sold to a buyer. This might be the Palmer Mine or Yukon Energy connection, for example. The second market is for partial energy sales. This might include sales to IPEC, sales to commonly held businesses, and late winter sales to APC, as well as sales to cruise ships docked in Skagway. The annual energy sales under this option are calculated as the full output from April Jst through September 30 1h, but the timing of these sales could occur throughout the year. For each scenario, annual debt service, operating expenses, return on equity, and operating margins are estimated. The sum of these values is then divided by the estimated average annual net energy sales to arrive at the estimated energy sales price needed for that project configuration and business model scenario. There are numerous assumptions implicit in the numbers presented in Tables H-1 and H-2. These are discussed in Section H.2. 11 $8,500,000 in grants could come in the form of an $8,000,000 grant from the state's Renewable Energy Grant Program, and a $500,000 grant from the USDA Rural Development Grant Program. It is not known if these grant programs will still exist, operate under their existing rules, or be funded when Burro Creek is ready to apply for construction grants. Other grant opportunities are discussed in Section H.3. November 2011-Final Report H-1 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study While configuration 30-70 has the lowest estimated energy sales price at full sales, there are several other project configurations with estimated energy sales prices within 0.5 cents of the price for this configuration. At the level of analysis conducted in this study, these differences are not significant. As the market for power from Burro Creek becomes better defined and Burro Creek receives further scrutiny and analysis, these estimates can be refined and reviewed with regard to the demand for power to determine the optimal project capacity and configuration at Burro Creek. November 2011-Final Report H-2 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Burro Creek Holdings, LLC Burro Creek Polarconsul t Alaska, Table H-1: Cost Estimates and Financial Analysis for Select Project Configurations PROJECT CONFIGURATIONS 7 50 CFS DESIGN FLOW 70 CFS DESIGN FLOW 110 CFS DESIGN FLOW PROJECT PARAMETERS 1D-50 2D-50 3D-50 40-50 50-50 10-70 2D-70 3D-70 4D-70 SD-70 1D-110 20-110 3D-110 4D-110 5D-110 Plant Capacity Factor 48.2% 49.2% 50.3% 52.6% 53.8% 41.6% 42.8% 44.2% 46.9% 47.8% 32.4% 33.2% 34.6% 37.7% 38.7% Installed Capacity (kW) 3,400 3,000 2,400 970 560 4,400 3,800 3,400 1,220 800 7,300 6,500 5,250 2,1 70 1,250 ·- Avg. Ann. Net Energy_ Output (MWh) 14,600 12,873 10,526 4,462 2,658 17,943 15,935 13,127 5,635 3,334 20,581 18,798 15,915 7,151 4,264 A vg. Seasonal Energy Output (MWh) 10,901 9,536 7,728 3,208 1,886 13,981 12,340 10,074 4,248 2,496 16,672 15,172 12,747 5,662 ... .. -3,365 ------~-- Seasonal Output as % of Annual 75% 74% 73% 72% 71% 78% 77% 77% 75% 75% 81 % 81 % 80% 79% 79% ----· -·---· ·------· -·- ~!!stock Length (feet) 12,600 10,300 7,600 2,700 1,300 12,600 10,300 7,600 2,700 1,300 12,600 10,300 7,600 2,700 1,300 ------------------------_....., ____ ----·-. Gross Head (feet) 1,130 970 770 310 205 1,130 970 770 310 205 1,130 970 770 310 205 DEVELOPMENT COSTS Pre-construction $630,000 $625,000 $610,000 $310,000 $305,000 $630,000 $625,000 $610,000 $310,000 $305,000 $630,000 $625,000 $610,000 $31 0,000 $305,000 (studies, permittin& design, etc.) -·-· ---- Transmission Line $1 ,21 4,000 $1,203,000 $1,190,000 $1,171,000 $1,208,000 $1 ,247,000 $1 ,231,000 $1,212,000 $1,186,000 $1 ,221 ,000 $1,310,000 $1,286,000 $1,256,000 $1 ,214,000 $1 ,25 1,000 -· ·-· --·------------------------ Access Trails $2,165,000 $1,796,000 $1,118,000 $212,000 $124,000 $2,316,000 $1,796,000 $1,118,000 $212,000 $124,000 $2,560,000 $1,985,000 $1,521,000 $323,000 $159,000 Diversion I Intake $251,000 $225,000 $192,000 $192,000 $129,000 $263,000 $236,000 $204,000 $204,000 $131 ,000 $300,000 $273,000 $241,000 $241 ,000 $148,000 ---· - Penstock $2,772,000 $1,833,000 $1,470,000 $432,000 $192,000 $3,542,000 $2,249,000 $1,727,000 $520,000 $227,000 $4,3oo,ooo_ $2,689,000 $2,065,000 $616,000 $273,000 ·- Powerhouse $2,214,000 $1,972,000 $1,610,000 $968,000 $680,000 $2,947,000 $2,605,000 $2,153,000 $1 ,1 23,000 $837,000 $4,416,000 $3,831,000 $3,104,000 $1,485,000 $1 ,135,000 ----------------··---------------·--------·····-------------· -----------------· ---.. ---.. . ... Construction EguiEment $507,000 $491,000 $398,000 $272,000 $220,000 $507,000 $491,000 $398,000 $272,000 $220,000 $507,000 $491,000 $398,000 $398,000 $220,000 ,_ ShiEEing $317,000 $234,000 $190,000 $116,000 $98,000 $438,000 $317,000 $251 ,000 $140,000_ $111,000 $625,000 $438,000 $339,000 $176,000 $130,000 -----···-------·-·---------- Construction Engineering $533,000 $470,000 $381,000 $222,000 $183,000 $559,000 $479,000 $389,000 $224,000 $185,000 $606,000 $514,000 $443,000 $246,000 $196,000 ---· Construction Management I $944,000 $775,000 $617,000 $336,000 $265,000 $1 ,1 26,000 $893,000 $706,000 $366,000 $287,000 $1 ,4 02,000 $1 ,099,000 $892,000 $445,000 $332,000 Administration ------· ----------~--·--··· Contractor Margin $800,000 $704,000 $571,000 $333,000 $275,000 $839,000 $719,000 $584,000 $336,000 $278,000 $909,000 $771 ,000 $665,000 $369,000 $294,000 - Contingency $2,360,000 $1,938,000 $1 ,542,000 $841,000 $663,000 $2,815,000 $2,231 ,000 $1 ,765,000 $914,000 $718,000 $3,504,000 $2,748,000 $2,231 ,000 $1 ,113,000 $829,000 ESTIMATED TOTAL CAPITAL COST $14,707,000 $12,266,000 $9,889,000 $5,405,000 $4,342,000 $17,229,000 $13,872,000 $11,117,000 $5,807,000 $4,644,000 $21,069,000 $16,750,000 $13,765,000 $6,936,000 $5,272,000 1 = 1,160' Diversion, 2 = 1,000' Diversion, 3 = 800' Diversion, 4 = 340' Diversion (Diversion at USS 1560 property line), 5 = 235' Diversion (existing hydro diversion); D =powerhouse at existing powerh ouse site at 33'. Avg. (average) Seasonal Energy Output is from April1 through September 30 . Source: Polarconsult Alaska, Inc., 2011 . November 2011-Final Report H-3 • • • • • • • • • • • • Burro Creek Holdings, LLC Burro Creek PROJECT CONFIGURATIONS~ 50 CFS DESIGN FLOW FINANCING MODEL* 10-50 20-50 30-50 40-50 50-50 EQUITY AND DEBT FINANCING MODELS (NO GRANTS) ~~r Equity (20%) -----·-------$2,961,000 $2,473,000 $1,9?8,ooo_$L 101,oo_2 ___ $888,000 r------------- Grants (Existir~g_Smly) $40,000 $40,000 $40,000 $40,000 $40,000 Debt (80%) $11,706,000 $9,753,000 $7,851,000 $4,264,000 $3,414,000 TOTAL PROJECT CAPITAL COST $14,707,000 $12,266,000 $9,889,000 $5,405,000 $4,342,000 Debt Service $850,000 $709,000 $570,000 $310,000 $248,000 .. --· -.. ----· . ----·------~-- O,M,R,&R $226,000 $196,000 $159,000 $71,000 $45,000 -- Return on Equity & $888,000 $742,000 $600,000 $330,000 $267,000 Operating Margin ANNUALIZED COSTS $2,852,000 $2,389,000 $1,929,000 $1,041,000 $827,000 MODEL #1: EQUITY AND DEBT FINANCING WITH FULL SALES (NO GRANTS) Annual MWh Sold 14,600 12,873 10,526 4,462 2,658 --------------·------------------------· ------·--------- REQUIRED POWER SALES RATE $0.137 $0.130 $0.129 $0.162 $0.213 NO GRANT & PARTIAL SALES ($/kWh) MODEL #2: EQUITY AND DEBT FINANCING WITH PARTIAL SALES (NO GRANTS) Annual MWh Sold 10,901 9,536 ?~?.~~---.... 3,208 1!886 ----------... -----. . ·-. ----~--~-. -- REQUIRED POWER SALES RATE $0.180 $0.173 $0.172 $0.222 $0.297 NO GRANT & PARTIAL SALES ($/kWh) Polarconsult Alask a, I nc. Table H-2: Business Models for Select Project Configurations 70 CFS DESIGN FLOW 110 CFS DESIGN FLOW 10-70 20-70 3D-70 40-70 50-70 10-110 20-110 30-110 40-110 50-110 --- $3,466,000 $2,794,000 $2,243,000 $1 ,181,000 $949,000 $4,234,000 $3,370,000 $2,773,000 $1,407,000 $1,074,000 ------------- $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $4 0,000 $40,000 $40,000 .. ----· $13,723,000 $11 ,038,000 $8,834,000 $4,586,000 $3,655,000 $16,795,000 $13,340,000 $10,952,000 $5,489,000 $4,158,000 $17,229,000 $13,872,000 $11,117,000 $5,807,000 $4,644,000 $21,069,000 $16,750,000 $13,765,000 $6,936,000 $5,272,000 $997,000 ~~02,0QQ__ $642,000 $333,000 $265,000 $1,220,000 $969,000 $796,000 $399,000 $302,000 $276,000 $240,000 $196,000 $87,000 $54,000 $322,000 $285,000 $240,000 $108,000 $68,000 ----------------····· --·--------....... $1 ,040,000 $838,000 $673,000 $354,000 $285,000 $1 ,270,000 $1,011,000 $832,000 $422,000 $322,000 $3,353,000 $2,718,000 $2,184,000 $1,128,000 $889,000 $4,082,000 $3,276,000 $2,700,000 $1,351,000 $1,014,000 I I 17,943 15,935 13,127 5,635 3,334 20,581 !8,79~----15,915 7,151 4,264 ·-· ---.... -.... --- $0.131 $0.120 $0.118 $0.140 $0.184 $0.139 $0.123 $0.120 $0.133 $0.165 ·----- 13,981 12,340 __ l 9,074 4,248 ~!.'!2~. 16,672 -15,1_72 . --_!_2,747 5,662 3,365 -··-- $0.165 $0.152 $0.150 $0.182 $0.242 $0.169 $0.149 $0.146 $0.164 $0.206 • 50% GRANT, 20% EQUITY AND 30% DEBT FINANCING MODELS • • • • • • • • • • • • • • • • • _Q~er Equityj20%) $2,961,000 --_g ,_'!?.3,000 $1,998,000 $1,101,000 $888,000 $3,466,000 $2,794,000 ----- Grants (80% up to $8,500,000 max.) $7,333,000 $6,113,000 $4,924,000 $2,683,000 $2,151,000 $8,500,000 $6,916,000 ----~-- Debt (Remaining Balance) $4,413,000 $3,680,000 $2,967,000 $1,621 ,000 $1,303,000 $5,263,000 $4,162,000 TOTAL PROJECT CAPITAL COST $14,707,000 $12,266,000 $9,889,000 $5,405,000 $4,342,000 $17,229,000 $13,872,000 Debt Service ~~~~,OOQ ___ . __ $?6_7,000 $216,000 $118,000 $95,000 $382,000 $302,000 ~----------·-. O,M,R,&R $262,000 $228,000 $186,000 $82,000 $5 2,000 $321,0Q9 g~0,900 -~ - Return on Equity & $651,000 $544,000 $440,000 $242,000 $196,000 $763,000 $61 4,000 Operating Margin ANNUALIZED COSTS $1,885,000 $1,583,000 $1,282,000 $684,000 $539,000 $2,229,000 $1,810,000 MODEL #3: 50% GRANT, 20% EQUITY AND 30% DEBT FINANCING WITH FULL SALES Annual MWh Sold 14,600 $0.085 12,873 $0.081 1_0,52_6 -___!!62 $0.080 $0.099 2,658 $0.129 17,943 15,935 REQUIRED POWER SALES RATE 50% GRANT & FULL SALES ($/kWh) $0.082 MODEL #4: 50% GRANT, 20% EQUITY AND 30% DEBT FINANCING WITH PARTIAL SALES ~~~1 ~~~!~. --··1-10,901 9,536 7,728 REQUIRED POWER SALES RATE 50% GRANT & PARTIAL SALES ($/kWh) $0·110 $0.106 $0.105 3,208 $0.134 1,886 ~ 13,981 $0.178 I $o.1o2 See Section H.2 for assumptions used in these financial models. Source: Polarconsult Alaska, Inc., 2011. $0.075 12,340 $0.094 $2,243,000 $5,538,000 $3,336,000 $11,117,000 $242,000 --·--··· --~~- $229,000 $493,000 $1,457,000 13,127 $0.073 10,074 $0.093 $1,181,000 $2,883,000 $1,74 3,000 $5,807,000 $127,000 $101,000 $260,000 $748,000 5,635 $0.086 $949,000 $2,302,000 -·- $1,393,000 $4,644,000 $101,000 -------- $63,000 $209,000 $582,000 3,334 $0.112 4,248 2,496 --~ ------------ $0.111 $0.1 46 $4,234,000 $3,370,000 $2,773,000 --~~-~.2?"-000 $1 ,074,000 $8,500,000 $8,355,000 $6,861,000 $3,448,000 $2,615,9_Q9_ --------------~- $8,335,000 $5,025,000 $4,131,000 $2,081,000 $1 ,583,00 0 $21,069,000 $16,750,000 $13,765,000 $6,936,000 $5,272,000 $606,000 $365,000 $300,000 $151 ,000 $11 5,0qQ $322,000 $285,000 $240,000 $1 08,000 $68,000 ·-· -·- $931,000 $741,000 $61 0,000 $3 10,000 $236,000 $2,790,000 $2,132,000 $1,760,000 $879,000 $655,000 20,581 18,798 1 ~915 ~1 51 ~264 ------- $0.093 $0.077 $0.075 $0.083 $~101 16,6 ?~---15,172 12,747 5,662 3,365 ------··------------ $0.111 $0.092 $0.090 $0.100 $0.125 Note: Estimated required power sales rates in all scenarios in Table H-2 is for delivery to Alaska Power Company in Skagway, and does not in clude the co st of w heeling or o ther infrastructure costs to get the powe r to its ultimate market. November 2011 -Final R eport H-4 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study H.2 ASSUMPTIONS IN PROJECT COST ESTIMATES AND SCENARIOS H.2.1 ESTIMATED DEVELOPMENT COSTS The estimated development costs listed in Table H-1 include all costs from concept to commissioning, including the costs of this feasibility study. Assumptions for these costs are as follows: ~ The 'pre-construction' line item includes the estimated cost to obtain regulatory approvals and permits, conduct resource studies that may be required by the resource agencies, conduct technical studies, complete design documents for the project, conduct contract negotiations, develop a business plan for the project, and similar pre- construction costs. ~ The next seven line items are for construction activities. These are organized by major construction activity. ~ The 'construction engineering' line item includes inspection, review of technical change order requests, assembly of record documents for the project, and related items that occur during the construction phase of the project. ~ The 'construction management/administration' line item includes oversight of the contractor(s), and management of the project finances, permits, and similar activities during the construction phase of the project. ~ The 'contractor margin' line item is an estimated markup for contracted construction services. ~ The 'contingency' line item is a 20% contingency applied to the entire development budget estimate. H.2.2 FINANCING Assumptions about financing presented in Table H-2 are as follows: ~ For scenarios without additional grants, 20% of the total development cost is contributed owner equity, and the balance is raised as debt. ~ For scenarios with additional grants, grants are assumed to provide 80% of the total capital costs, up to a maximum of $8,500,000. Owner equity is assumed to provide the balance, up to a maximum of 20% of the total capital cost. Any remaining capital is raised as debt. ~ All debt is assumed to be commercially financed at a 30-year term at 6% interest. .~ Debt origination costs of 3% are assumed for items such as application fees, loan guarantee fees, and/or other origination fees. State or Federal grants can help reduce the amount of capital BCH needs to borrow for the project. As shown in Table H-2, such grants would enable BCH to lower the required sales price for energy from the project, potentially expanding the available market for Burro Creek energy. The eligibility of the project for grants will depend on a number of factors that are specific to the various grant programs for which the project may be eligible. Also, State or Federal loan programs can lower BCH's borrowing costs for the project, which would reduce annual debt payments, enabling BCH to lower the energy sales price. These loan November 2011-Final Report H-5 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study PolMwn<ult Ala,ka, Inc~ programs typically offer below-market interest rates, longer loan terms (up to 50 years), loan guarantees, or a combination of these. State and Federal loan and grant programs for which the project may be eligible are listed in Section H.3 of this Appendix. H.2.3 ESTIMATED ANNUAL PROJECT COSTS H.2.3.1 General, Administrative, Operation, and Maintenance Expenses Typical general and administrative costs for an IPP at Burro Creek include items such as business insurance and management of the IPP' s business affairs. The hydroelectric project will have operation and maintenance costs. This includes labor costs for monitoring and maintaining the hydro systems as well as direct expenses for parts and consumables. This will include activities such as plant inspections, maintenance, routine parts replacement, and trail maintenance costs. H.2.3.1.1 Taxes As a for-profit business, BCH will have to pay State and Federal taxes on earnings. The State of Alaska currently has tax credit programs in effect that may partially offset BCH's tax burden if the current program is still in effect when the project is operational. Similarly, Federal energy credit programs may partially offset tax liabilities. Depreciation will largely or entirely offset tax liabilities in the early years of project operation. H.2.3.1.2 Insurance At a minimum, BCH will be required to carry standard business and liability insurance policies for the project. Additionally, BCH may elect or be required to purchase boilermaker's insurance and related policies to protect the project against premature failure of capital equipment. BCH's financial instruments, power sales contract, and regulatory permits will likely contain language stipulating what insurance policies BCH will be required to maintain. H.2.3.1.3 Repair and Replacement Most of the hydroelectric project systems and components have a very long useful life. The intake, penstock, powerhouse, switchgear, turbine/generator, and power line all are expected to have useful lives of 30 to 50 years or more. Some components will require periodic repair or replacement. Minor components, such as pumps, actuators, control sensors, and similar devices, are assumed to have a useful life of five years. The water turbines may need an overhaul after about 15 to 25 years. H.2.3.2 Return on Equity and Operating Margins For debt and equity-financed projects, an annual return on equity of 20% is assumed. For partially grant-financed projects, an annual return on equity of 12% is assumed. All cases also provide a 10% margin on gross revenue to provide adequate cash reserves for the business to weather unforeseen expenses such as major equipment failures, low water years, etc. November 2011-Final Report H-6 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study H.2.4 ESTIMATED PROJECT REVENUES H.2.4.1 Energy Sales The amount of kWh available for sale from a given project configuration are calculated from the hydrology model described in Appendix C. The net kWh available for sale are the average annual amount less 10% for assumed forced outages and scheduled outages for maintenance. Seasonal cases also discount the net kWh available for sale by 10% for forced and scheduled outages. H.2.4.2 Environmental Attributes The environmental attributes (EA) of the recommended project can be marketed nation-wide to earn BCH additional revenue. The project's EAs would be sold on the voluntary market, where pricing for EAs varies. Prices were as high as $0.02 per kWh before the financial crisis of 2008, and more recently have fluctuated in the range of $0.001 to 0.005 per kWh. For several years, there has been an effort at the Federal level to implement mandatory purchase of EAs. Such legislation would likely expand the market and stabilize the pricing for EAs. It is unknown if or when such legislation would take effect, or what the final terms of such legislation will be. While EAs from the project are an additional potential revenue stream for BCH, no revenue from EAs is assumed in this feasibility study. November 2011-Final Report H-7 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study H.3 POTENTIAL FUNDING AND FINANCING OPPORTUNITIES Several Federal, State and regional programs offer grants or loans for hydroelectric facility development. Some Federal programs have lost funding in recent years, even though they are still in effect. Some programs are outlined below. While this project seems to fit with these programs in general, often judgment of the funding agency regarding economic benefit to the public and other criteria will be determining factors for eligibility. Currently, Federal regulations do not define hydroelectric power generation as renewable energy, so hydro projects are not eligible for some Federal grants and loans. Legislation has been presented to Congress that will redefine small hydroelectric projects as renewable energy projects. If that legislation becomes law, additional Federal grant and loan opportunities may become available for this project. );> US Department of Agriculture Rural Development: o Rural Energy for America direct loan and loan guarantee programs. o Rural Energy for American grants program (no funds available) o High Cost Energy program (no funds available) );> US Small Business Administration: o Small Business Grants o Small Business Loans (18 programs) );> Alaska Energy Authority (AEA)/Alaska Industrial Development and Export Authority (AIDEA): o AEA Renewable Energy Fund (grants) o AEA Power Project Fund (loans) o AIDEA Development Finance Program (loans) o AIDEA Load Participation Program (loans) );> Alaska Department of Commerce, Community and Economic Development, Division of Economic Development: o Rural Development Initiative Fund (loans) o Small Business Economic Development Fund (loans) );> Alaska State Legislature: o Direct Legislative Appropriations );> Juneau Economic Development Council: Southeast Alaska Revolving Loan Fund November 2011 -Final Report H-8 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study APPENDIX I-ACRONYMS AND TERMINOLOGY November 2011-Final Report Burro Creek Holdings, LLC Burro Creek Hydroelectric Study November 2011-Final Report Burro Creek Holdings, LLC Burro Creek Hydroelectric Study l'o!."onsult Alaska, Inc.~ ac-ft A DC ED ADEC ADFG ADNR AEA ATV APA AS BCH BCR BLM cfs ACRONYMS AND TERMINOLOGY acre-foot, acre-feet. A measure of water volume equal to one acre covered in water to a depth of one foot. Alaska Department of Community and Economic Development Alaska Department of Environmental Conservation Alaska Department of Fish and Game Alaska Department of Natural Resources Alaska Energy Authority All Terrain Vehicle Alaska Power Authority (predecessor to the AEA) Alaska Statute Burro Creek Holdings, LLC benefit-cost ratio Bureau of Land Management cubic feet per second coanda effect The tendency of a fluid jet to stay attached to a smoothly convex solid obstruction. A common example is the way a stream of water, as from a faucet, will wrap around a cylindrical object held under the faucet (such as the barrel of a drinking glass). COE discharge U.S. Army Corps of Engineers A synonym for stream flow. Flow and discharge are used interchangeably in this report. DOE U.S. Department of Energy Environmental attributes ft FY The term environmental attributes is used by the utility industry to describe the desirable aspects of electricity that is generated from environmentally benign and/or renewable sources. Environmental attributes are tracked, marketed, bought, and sold separately from the physical energy. Separating the environmental attributes from the physical energy allows customers or ratepayers to elect to buy sustainable or 'green' energy even if it is physically unavailable from their electric utility. foot, feet fiscal year November 2011-Final Report 1-1 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study gal gross head HDPE in isohyet kV kVA kW kWh MHW mi MW net head gallon(s) The topographic elevation difference between the headwater elevation of the hydroelectric project and the turbine(s) in the powerhouse (see also 'net head'). high-density polyethylene inch, inches a map contour connecting areas of equal precipitation. kilovolt, or 1,000 volts kilovolt-amp kilowatt, or 1,000 watts. One kW is the power consumed by ten 100-watt incandescent light bulbs. kilowatt-hour. The quantity of energy equal to one kilowatt (kW) expended for one hour. mean high water mile, miles megawatt, or 1,000 kilowatts The gross head on a project less losses due to friction in the pipe, fittings, valves, etc. at the project's full design flow. Obermeyer gate O&M OMR&R PCE PDO P.E. A hydraulic gate that when open lays flat on the bottom of a creek or river. The gate has a hinge along its upstream edge that is secured to the creek bottom (typically to a concrete sill formed in the creek bed). The gate is closed by inflating a rugged rubber bladder installed underneath the gate. The bladder lifts the gate to an angle of approximately 45 degrees, impounding water behind the gate. These gates are advantageous for passing large debris and accumulated bed load (sand, gravel, and cobbles) through a small diversion impoundment. operating and maintenance operating, maintenance, repair, and replacement Power Cost Equalization Program pacific decadal oscillation. A climate phenomenon similar to the 'El Nino I La Nina' climate fluctuations in the equatorial Pacific Ocean. The PDO is situated in the north Pacific, and fluctuates on a time scale of a few decades. Professional Engineer. Licensed in the State of Alaska. Polarconsult Polarconsult Alaska, Inc. November 2011-Final Report 1-2 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study Plant capacity factor rpm SDR sq.mi. USPS USGS v The plant capacity factor is the amount of energy the plant generates in a year divided by the amount of energy that would be generated if the plant could run at full output 100% of the time. This number is less than 100% due to factors such as limited water flow during the winter months or system outages for repair or maintenance. revolutions per minute standard dimension ratio Square mile U.S. Forest Service u.s. Geological Survey volt November 2011-Final Report 1-3 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study APPENDIXJ PolmonsuU Alaska, Inc.~ APPROPRIATE TECHNOLOGY REPORT: HYDROELECTRIC SYSTEM AT BURRO CREEK (GENE RICHARDS, 1982) November 2011-Final Report Burro Creek Holdings, LLC Burro Creek Hydroelectric Study November 2011-Final Report Report Hydroelectxic SysT~m at Burro Creek Farms, Inc. Skagway 1 Alaska This re-port supplements our f'inal hydroelectric report. submitted earlie:t to the tlep8l·tment of Energy, a copy o:f which -was submitted to the Alaska Division of Energy and Power Development. The format f'or this report covers the subjects listed in. your letter of October 14, 1983. I LOCATION Burro Creek Salmon Hatchery is located 1.5 .miles B.W .. of Skagw.ay 1 Aleska. (Lat. 59° 26'N_. Longitude 135° 22'W). Access ;across Tedys. Inlet from Skagway is by boat o:nl.y. The populat:Lon of Skagway.. varies ·from ·about .600 in the winter to 2000 in the summer" The Kl.ond':tke Htghway provides road access to Skagway and is generally kept open f.rotn April through October. Air and water tranepor- tatiou are available tlu~oughout the year. White Pai!S and Yukon Railxoad provio.ed rail transportat-ion 'to Whitehorse, Canada but it wa.a discontiD.ued in 1982. It is unknown ·whether it will resume operations in the :near future.. The Ala.sk:a Ma.r·:Ln~ H:i:wa.y System operates ferries between. Ska§Wa¥ and other Southeast Alaskail cities, Prince Rupert_, Canada, and Se.attle_, Washington on a regule:r ~:~chedule throughout the yea:r. Cruise ships malce over one hundred port-calls at Skagway during the summer months. Westours runs a da.,y cruise boa;t-daily to the vicinity o:f Juneau from May to September. Alaska Power & Telephone Qo. provides Skagway with energy and Communica- tion services but does not include outlying communities of Dyea and Burro Creek~ Power generation is by d:iiesela in the winter and a combination of d1.esel and h~rdro f'or the rei:ne.inder of' the year.. The possibility of' sel.line power from.Burro Creek is remote due to the high .cost of providin,g an tindex water cable across Taiya Inlet. At the time of tbis writLng" diesel oil sells at the Skagway-Bulk Plant at $1.109/gaL No • .1 and $0.989/gal No. 2 an.d res.idential power costs about ~ 7 to 20 ¢/¥Jil depending on consumption. Telephone service and ca.bl.e TV is available in :Skagway ·but not a.t Burr.o Creek. We receive State TV on channel 13 and educational TV on channe.l 11 over the air. Water, se~1er and garbage service is provided by the City of Skagway but not to Burro Creek, even though we are in the city limits.. We have an air-jet sewer system 1·lhich also includes a dra:'!.n field. Our domestic water gravitates to the hcuse from two independent "'ater systems. The hatchery water sourc.e provides water through a 6 11 PVC pipe from the top of the creek's first waterfall (700' distance) at 20 .PSic-The second supply is from tbe hydroelectric: system which picks up ·water at the t.op of' the third -waterfall ( J.L~oo' distance) anr:l del:i.vers at 90 PSI which is then reduced to 45 PSI. The Ne:tion.al Weather Se::7:"Yice of' NOAA has recorded -weather statistics at Slca.gwe.y for many years and they ar.e available on-request. vre have exoeri-, enced ·tempP.!ratures f:rom about ..;10° F to 80° ,F during the. five years w~ have lived. a,t .Burro Creek. Surf~·;ce ice fonns on the Dyea tid.e flats in the winter and 'the prevailing North wi.ntls push them on our :beach and into our t:l.d al la.goon, :particu:lerly1 during 1~idea o'f maximum :tan.ge. · :tt 'is sorettrnes 6" thick but never remains long, as the wind and tidal currents keep. it mov:ing. ·The ice threat does pre.cillde leaving a :float or. mooring in the water during 1·7inter months. We have our own marine railroad to pull our small boats -out ·Of the danger and a float i·s maintained by Westou :from May thru September co'Dl!t!ensing i:;1 1983. They conduct har"bor tours to the hatchery during t!le summer oonths. About 3000 tourists ineijpec.!lbed our he.i;chezjr and power system 1ast year. Burro Creek :flows year e.round and in reduced ··amounts ;under the. ice during vinter months. It drains 11.4 sq .. miles of valley. Rainfall averages 22. hg" / year, most of which flil.ls in Attguet through October. Ill SYSTEM DESIGN It was originally planned to oper~te a 25 KW two-runner Peltech with two jets on each rUime1:' from a water sour~e 1000 feet upstream "With a bead o:P about 150 feet. A subsequent SiJXVey made -when the Wlit was under menu- factll.Te, disclose-d that it :wou.l~. be easier tn pir.:k u.p wat.~T at the top. of the third falls, l400' abO'\'e illie power ·bO'.Ise, with en increased hea.d .of 200 feetu The manufacturer redesigned 'the belt-drbre system and plugged two of the fo.ur jets a:s they ~ere unnecessary to gerierste 25 KW. This; gives us an option to increase to 50 KW if a need erises, but we will have to replacE the Lima. alternator and probably change the belt-drive .. The e1 terns.to.r selected ;.;as a Lima brnshless, 25 KW., 3 phase 220 volt AC It we.s ass~d that a large portion of the load would be used to drive motors on rsfrigeration compressors. Refrigeration is needet:l to proce:ss harvested :fist.. to pay hatch2ry expenses. The :pipeline between tbe~e·r house and the water .source is a lO inch d:tameteT Simpson THfh.;.Seal PVC pipe designed for 125 PSI. (See al:so Final Technical Report on H..>rdroelectric System submJ.tted to D .• O .• E. ). ·rv .CONSTRUCTION AND INSTALLATION The planning, purchasing an::1 ccnstruction for this project :was cond.uctec o1rer a five-year per~Dd.. It was given secondary :;_n"iority to the hatchEr.! construction which was done simultaneously. Most of cn.e construc-G'ion season ( 1982) was lost whe:l Alaska .Fi:sh and Oa."D'~ cJ:-d~red u.s to install , separate daru to furnis.h gravity 1-1a:ter to tl'le hatchery re.tber than use a aiJ?bon sys·tem or face csncellation of our b.atcbeJll permits. The lack of road access to Burro Creek corr..plicated delivery of pipt=r -pelton wheel;~ a:.l:t·::rnator, snd associated supplies. Deli:very was ma.de possible by u.sing the owner's 56' LCM landing craft. R.o-.·1ever, shippint: r~,l t=~·,r~ from Seattle and higb asscd ate~ costs were otbe:r important ...... ~ ........ .,..,,..,..._.., .. ,....... o..uc J:.'""M:<..t,' 1..\VI;I.t>O:: wUii! ·our :l' . .l.r:G't. ;!:JilF.'...Se·. .l."t 't.".EI:S l::n:l!:l~t of ·(~d.at logt; :f':rorn tb~ Qtt~en Cbarl't')'tte IelBIJaa oJ:'r Br:ltish :co.l.umlt1~. .P. .Mt:Uleo crs.r-tsntM precut 1311d .ssseaib?r.eCJ it a.t Mm;set~ It was <l:J.r..aesrmllled upon oon;plet.ion ana .lr.laded on e, trai..lel' 1~c:r sbip'!ll'ent 'to P1•1.uee Rupert by barge sna ferry to Ket.c::hir..sn... ..At tl:ds poin~ it va.s t.rm1s~·e:r:red. frl':lm tb~ 'tr~tler t.o oUt" landing craft :for de:U.'\l'en to :au:rro. creek. The ~er 'boune ~·ted IUl · tmr. tciitpornr.:y bO!IlS untU ·.ve· . eoultl oOl'!:!pJ.ete the log res:tderu!e .in 198~. An a.ir-cool:?tl Lis:te:r 'Die-sel. ·t.bat rlri vcs a 11': n,y Lima brushless .alternator was i~J;tal.led .IQJ:l ·the pl)rt:h. It. seT"~Ted as our' prime en!!J;"g,\" source aLd. ~2JU provide powel:" when the h~"li:r;o.Zle-etric ~;;}!'~tern is ~but down for tte winter or rep~s • .A:!."t!tt' -the .red:dem:~ ''lfl:.l.'S cOmPlEted !'at' :fj)»owt;b :W br:i ·oecl ... pied._. ·tbEJ :po"'~ JJQUSe ,.s,s, then fl."'Ja.il..:abl.e tor .inG'talu't:tO.t( o:r ; the :?el.i>ec!! a:'ld tii$SOc1ated electr\le.aJ. Clilli't.t'ib~.tt1c:m ·equ:ipmeat. Simultaneously 11e sua.rted t~. pi;pe-. line ins~letion. t:".1rs:·t!f :the r:tg'h.t.o.o:r-~ :\fM .elea=ed Sl'l'a pipe distributer. l'.l..long tlltt litro -'This ;r:eqUirett t:be ~se o:f .a higl:.U1ne up ·tM -steep bXuff :;:..t, 't.be bottom .ancl :ttr.ttn 'l'r.; "tra1l :bike or ·a !t -lrheel tlr.i'!'te coo:t .on the mere gradua.J. sl.opes. Tl::l.e ·ooot require.:3 adiii'ti011Al eleer.icc ·t..o bui1d a ~>raclt rood. mtsn we :bu.Ut tbe :r:tl.t.er box I'J.t the ·tc;p o:t' 'tae :l,i~ st the enn of tl.m .co:ns:t:tuctiori period m nseel a we:tsb pony: te lir.etj t'he 16 !'oot 2'ltlO's· to tll~ top.. !f we;· w~e 't:o a.o it ill 9'V'9X ~o~ we wculll :prob!llhly t2t'tke. :more 'lll;let o.f the pcny. !l:bis would have .reduced all xo:ad. building s.nd e:Jt- pen~l!s it'rrolved in repairing· wcben:ioel ~.quipn:ent. The p::l,pe.Iine vas· >ass~~bled. in 'Sec·ticns ftOJ» t.1'le \'!Qttom ~p to ~he:r.e a large ehange in: lCJ."eae ·or ·d1Te1.1tion reqt~Jxe<'J. ·the hbzicat.ioo o::: a spe::.i&l bantl. Then it !Was a "tWo Ol" three week wa.i.t ·:tor t:he betld ·to mTive. l't wr:nild ~~~em tha.'t ·WO eou'1d h~ laid i:t out ~ith .~T.iG, .anli determ:ine ""hat or.ll" total requ.~'bs f.or !!pec:ial bentts woul:d 'be a:t one 1:inl!e. nowe:ver 1 we never knev exw;:t;ly bo'W much ·c:hQ!:Igt!! 1:e codl(l a~:comocbl.'t:e 1;it.bin the .liDdividtmJ. pipe jointt\ u.nt..tl they we.re sll B!llsem.bl.~d. We :wanted to l~e;. the nwnber of spet:'ia.l benfts to :a minimum oa tbey coat. over :$1.00 each* One e:i.tcb reqtJ.'ired digg1xrg a.-t tbe top of the line. A litt..l.e blasting a.r T~k ~u$ ~quired ·and wes.done at tbe s~ time we bl.a6ted a notch out of tbe slll at :the .to:;. o:f' tbe ll~l!l.ll... The WP&l' ·RB rec'tsd us their Swed:Lsb 'bu:U 't ga.s-dr1-ve.n h1ur.mw for t;he l"t'Jek .. Q:d.U.1ng .cP"'...ra:tion.. Bt-ao'ing a:nd . Sllreuri'tlg !the pi-pell:ne "~~at.< 'the lllQlrt; time 1tellsumin& ·operation..· B1i".G1cal1y we u.mea 1/4'' s.:trcratt. cable 'for ties 'to e7.pa:ns1oo bo11lli: ·'Sat in bedrooik or lsrt;e bota.tle:r.s,... D.r:Ul:ix:lg f'or t~ eX:Patae:10tl .SJ.eeve~J l!tm . ~iteCOln­ pliab~li ·~ltb a MIJ.w~ ··electri-c :rotor.;· h~ tttl.?en ·by'· :a portabll.e 3:~ KW P1ncor gas gen.e:r.tttor... •TOe c:able wa.s. seca::t!!!d to ·the· p:i:pe with c.Ei.ble clips.. ;rhe pi;pe was :·:t.~st 11¢epp!!d v.i'i!h bu'!l.ds;:og p~r:t tdumimum f1nnhing end tMXl ·with .used ·.~ae :e.t e~eh :tie point. .Tn:J:s :SI<\'Ve "' .~ad .SX'.i.P ·on · the pipe snrl ;prov:ii.lad ample d.lctr ing. g.ea.r:. .:The aa.ble ·ran th:J:ol:gh :the center -of tbe f:Lrebone ··and· vas t1gltM~ned -with· tu:-nbue.k.le:s. T!ie eroas·- tiea were .-suppl:emenwd •';."i'th dm.'ll .. hlll tieG :at. ~0 ,to : ;:300 !oc.t intervl!lilJa "00 pn."Wnt :tbe pi}:le from· c:rav~1ng aowt.~ the. hil..l,. -· one eye ... 'l:tol:'t bro~ llu.rinbt a ,natic: tel'lt antl 'the pipe ble11 nps.rt. at a joint.. !t -was eorrectff!l by re_pJ.scillg t'be pl:Jt-rmetJW. eye-bolt ~d.1!h a. :;teel. :llilfi sc::re'll' and 'by e.tld.~ mere ties... .No :rurtber :problema .of thi.a type occu:rrea .• The p1;pe :reS'hs or:. tbe groWJd a:s mueh as possib~e, b11·t -whe:r:'e c.hs:ac;ea in .r.:rade ;;:eattl.red., a trea"beti ox8 suppt:~rting post ;.!tl.G a-ided s.t. not more 'tba.n ·. \. • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • -· ¥-----. .....U'-"' .P'-' !!:> '-u;,.u.l !.YfV ~::<"..LV C.IJ.'!e"!!' .KS UO.:!..t..eO. 1;0 "'"!;lJe 1:-op 1:0 SS~ a saddle" The bottom of the post ~as placed on bedrock or flat rockso Special concrete anchors :were provided at the bottom of' the pipeline ov the last 80 feetD The mass of concrete proved to be inadequate to resi movemen,t at the very bottom so another yard of cCDncrete -was added :plus similar size deadman on the bisector of tbe bend. This aa.a:ttion proved adequa.te plus it also stopped a sma.ll leak iiha.t bed developed ill a glue joint on th-e t 1T" .. The wood. f:tlter box -was an el'ter-·thought. The purpose was to simpli:fy wa•t.er p:Lek-up and to provide means of separating out ·debris .anti aedtme.n It j.ncluded an over:flow to assi.st in by-passing es much floati:cg materi ae possible and a catch basin to collect the sedimento 1-itlch and t-in· metal screens from a .rock crusher were installed. to filter out anything over ~-inch. This turned out to be a mistake as ice generated rapidly on the metal screens in free:ing weather. V OPERATION We bad t-wo .months :af c01ltinu.ous Oj_:le:ration prior to the winter shut-down. bearing problem developed simul taeous with the advent of free.2:iDg weath~ However, it. was very satisfying to substitute the hydro system for ou:t" noisy oil•consuming diesel :for eyen th:is short ti:me. Disregarding the initial costs; we had the feeii:ng o:f getting something for nothing.. Ale 1o1e ha.d power 24 hours a day rather -r.he.n the 5 tc 10 Pl-~I diesel operation which we had limited ourselves to. Tb.e extra round-the-clock power ca- pacity spurred us on to c.rea.te additional a;ppli'cations. We added el:ect.l: heaters in beth t.ile hatcher.r and hol,l;se.. In addition,. we alw-ays had. hot water, our emergency l:Lghting batteries -were til'W'a.ys fully oha:rged :and we did not have to "Worry ·about overloading the dieseL ~Refrigeration equiJ ment could run as needed on a 24 hour basis rather than continuously during the 5 to lO PM period. One of the most satisfying parts of the operation was the smooth perforn: ance of the Woodward Governor.. It compensated :for any change in load w1th a definite motion and a .miniltlllDl of hunting. We experienceQ some .difficulty at first in util.i::ing a.ll ·three pha.se!S of' the 220 volts A.C.. As new loads are created ·'We d:tstribu.te them to the best ad:vemtage to obtain a. baJ.anced load. This "Wi·ll be particti.larly t::::u when the cold. storage plant is phaeed in.. During t.be. in.itia.l start-up period it :wotll.d ha.ve helped if ~e bad installed a 3-phase distribution panel in the bouse. Th'is over-sight wlll be compens·ated for as new loads are a.dded.4 As we gain experience and modify this equi'j;:rrtent~ we axe hopeful that 1>1$ ;::an obtain year a.rcund o:pe:raticn. E'lten if we have to settle for a nine or ten month operation it -will be well worth 1 t. The hea."t/.ile9't. load -will be refrj,gera.tion and it is at the lowest during the cold -winter montha. vle had similar difficulties obtaining year a.rouu.d water far our salmon hatchery the fi.rst two years.. A da.m was constructed to provide a deep pond for the water pick-up &,1 this bas solv.sd that problemM VI PERFORM.ANCE IJ.'he l:l.tni tations to the a.esif;!:Iled operation now all binge on im_proveme!lts i;o the lClW drao nt the water ·oick-u.p. See Sec'tion IV P.liD VIII for other mod1flcat1.ons mad.e or pla.nned .. V!I PROBLEII.S All problems genere1;ed to date are d.iscus.sed in Section IV an VIII .. How- ever~ they are also tabulated here to follow the outline provided .• L Inadequate volume of water to operate a:t full load 2., Icing on metal filter-box screens .. 3· Free~ing of valves. 4. Freezing in filter-box filler pipes 5. Freezing in pipe at levels below jets (Bottom hal.f' of pipe) 6~ Freezing in metal discharge pipes 7. Governor disengaged from pelt~n wheel after two months operation and generated a. run-away si tu.ation which resulted in a burned-out bearing and scoured sha.f't. 8. Pipe movements in lowest sections. 9.. Broken eye-bolt on pipeline tie .. VIII MODD"~ICATIONS Our first modification was to chahge the point of vater pick-up f'rom 9Ji elevetion above the power house of 150 feet to 200 feet. This permitted a more direct routing of the 10" PVC piJJe, kept most of the pipe out of the scenic area near the creek, added 50 feet of head, simplified the point of pick-up and only reql,lired 400 feet more pipe.. The change came a lj.ttle late as the 25 KW alternator hail s.lready been order.ed. However, we now have the option o:f going to 50 KW i::f our needs require by re- placing the alternator and modifying the be~t drive ·and jets. Two of the Tour jets are ·now blocked off as they are not needed to generate 25 J!Ji!. "The second mod:S.fication. was to construct a wooden filter box at the top of the sys'tem. A 10-inch :filler pipe was run .from the creek to the box. As might be expected, we found that vhen the pelton -wheel was Tunning with both jets o:pen i:t S1ilcked the 1i1aiiler down the 10-inch pipeline faster than. the 10-inch filJ.er pipe could gravitate it into the filter box. The ad- dit:i.ob of a second 10--:inch filler pipe solved this problem. Free,;.ing in 'the filler pipes, as water in the creek loweredJ terminated all operation on December 5, 1983. A temporary aam had been built in November on the sill of the waterfall by falling two trees across and sandhagg:ing the void·s.. This servea to keep a pond over the intakes for a i~h:i1e but was not efficient enough at lower creek .levelso Improvements this spring on the lm; dam should give a deeper J.;ond behind the sill and im;pro·.;e chances for year around operation. lve discovered in November that :i.n freez;ing weather the metal screens in ·t~he filt..e:r box rapidly iced Oil"'€'!' and reduced the water flawA This situatior. The pipel;i;ne was install':!d to insure good g:ravi ty drainage with :no pocket where dead water coldd freeze. Ah atmospheric vent was also installed at tbe to.P of the line. One overs.ight wa.s at the bottom of the g;,rstern T.:hel:"e the jets are installed in the middle of the :p'ipe.. This pel"lllitted water t collect 1n the lower half of the pipe and. ob:.=::t.ruct . Gperation of' tb.e main throttle val·re. A d:ra.tn plug w:tll be installed. e.t the low-poj.nt to lnsux oomplet.e dra..ina.ge .. We ordor~d a. second set o1' !"educed si%e jets to permi i operating one jet on each runner at times of low water in the creek~ It ·,.;as orig.:tnaal;r planned to accomplish the same effect cy sb.ut'ting the water off on one :nmner by cloe:ing the 8" valve. How<l.lve:r, vJe felt that this unbalanced operation m:tght have ccntr:5.buted to tho sid.e pressure on the main .shaf't which aep.aratea the .govern.o:r from the pelton wheel after two months operation. Improvement was made on the belt tighteni:c.g method :provided by the ma.nu- fecturer by adding a. l-inch rod ::with a left and right thre-ad between the pelton and el term::r.tor. It was installed on the line of shs.f't centers to give a more di-1:"ec:t f>1.1Sh between units than by mo,ring the alt.er.ne.t.or on th( base plate alone.. rt also provides a very 1'ine ad.t.J.stment. The c:riginel discha:::-ge from the pelton -wbee1 :::onsisted of an open ~oncreu trough unde!" the power .hour;e and tben connected to three :parallel 8..:.1nch :uetal drain pipes running to the creek bed and d:ischargiDg near MIDtW. Rs;pid icing occurred in the l'llErt;al p:ipe.s at belo-w 10° so -we pJ.an to relllO"'.-e them and allow the discharge to fJ.ow in e.n open ditch or wooden .flume ne::-..'1: winter. The :filter box .we.s dt!!Signed to dh-ert 71JOS"!: floa.t.ing materiel, return it to the creek bed through the over flow and thereby .reduce f'ilter cleaning. A catch ba.Gi~ -was also included to collect seditaent. .The box Prill be xnod. ified tbi~ summer to aLso permit deflecti~g all incowdng water from the box and tc: .also flush out sedi.roent.. Thi.s chaage was deemed ~cessary as opera.tio:o · o:r the val '-1'6 at the t.cp of the liue was not dependable during .free2;ing wea.tber. IX TI?S - Do not underestimate costs and time delays to ship p~oducts to Alaska, particul.al"ly to a remote area, tha.t does not ha~tre au estS.:,lished deli~.;:ery service. Do nat underest'imate cost of eHectr.ical distribution co:mponent&. :Have a good electrician 1~~ aut the system and prcrt·ide you with .c:ost estimates .. Na.kecerte..in that the s;ystem can be shut down eaeilV" and that it will auto- LUaticeJ.ly dr.aiD i taelf. An atmospheri: vent a.t the top of the system is a must. otherw.ise., a vacuum could be created during a blo·""-out that might collapse the pipe.~ Al.so, remember that vaJ.:ves uo not ope::-ate when :frozen .. Confine their locations to heated areas 'Wbene-.,e:r possible. Ll.rnit la.rge metal masses such as va.lv:es and reetal screens in exposed at'ea.s ea t,hgy yil J )<p +be +';Irst tp 'rs:"';ii"'· Keep bends in the pipeline t6 a minimum 1 particularly at the lo'Wer sections where pressure is the great~st. I ' Anchor the :pipeline well wit* adequate cross ties" particularly at large changes :in direction~ Include dmm-hill ties to preclude the pipeline frOlll crawling down the hill. i X EQUIPMENT Peltech 'Pelton WheeJ. I 25 KW Brushless Alternator j (including ammeter) voltmete~~ I cycle meter and phase : selection swi'tch) j PVC 10'' p1pe FittL~gs, Valves~ .Special Bend~ Etc. i I Electric:sl meters, switches., : distribution bo,~e·s, ci:rcuit ! breakers etc. Xl MONITORING I Manufactured .1:ly SmaLl ffydrota.leetric Systems and Equi.pment ~ 511~1 'Wicke;r.she.m Acme~ Washington 98220 Ma.nu:factm-ed by Lima 200 E. ·Chapman Rd. Lima., Ohio 458o2 Manufactured qy Woodward Governor Compa.:c:y Fort Collins, Colorado Distributed by·Liberty Equipment Company 317 Iowa Bellingham, Wa. 98225 Distributed by Material Distributors, Inc .. ~. 13624 N.E. 177 Place Woodinville, Wa~ 98072 Dis~ributed Qy Stusser Elec~ 660 S • .Ando~er·St. Seattl:e., Was-hington 98108 Two 14-inch rwlilers ori o sha:ft with t je•ts an ee.t:l:l runner Three-phase 220 Volt A .. c. Hodel 8558-7 Simpson:.": Twia-seal A -watt-meter and. hour-meter eke run continuously with the :power system wbei operating on the 12 ·KYl· Lisi;e~ diesel or 25 KW hydroelectric plant. A volt- meter Bnd pressure gage are :iJnsta.J.led in the residenc.e to alert the o:wner of' improper operat;Lon. A cydle meter:t vol:t.meter., a.mroeter end pressure ·gagE sre installed in the power hdu:se to permit monitoring of all three phases or ·the 220 volt ft..,C. I I When the go-vernor became d:iseDgaged from the Pelt· eeh ··it created a. :run.-a.wai) situation. The light in thetouse increased in brilliancy and the sound· from the power house changed. These changes -were noted by the caretaker and th.e plant shut down.. Th ·Pel tech me.nui'acturer has suggested i:nete.lliJl.E a vibration detector alarm td alert the operators of a. mal-function. The system is vieue.lly inspected jtwo or three times ,daily but. an ale.nn would improve tnon.ito:r.ing eapabili'l;j 1 s.nd possibly a:'Wid problems before they be-- come se:r:.i.ou.s. ! XII li'INANCING ey owner By state gra.n:'c. By federal grant Total XIII BUDGET 5_,675.00 5.?675.00 $49,696 .. 00 See Final TechnicaJ. .Report on Hydroelectric System to D.O.E" XIV MISCELLANEOUS It is appropriate in closing to comment on our major unresolved problem which is the design of the Pelton Wheel. The separation of the governor from the rurmer shaft required a little :reseexeh prior to serious comrnen A visit to the SkagWay Power House of Alaska Power and Telephone Company disclosed that tbey have a similar type; i.e .. two runners on one OQmmon shaft. It is a. larger urdt than ours but. it has on.e basic difference., i ha.s thrust bearings on .each end of the sba.ft. Had ours been so eqUipped the chances of' sideways shaft movement wotild have been elinti.ne:ted. Now tha.t 1'16 know "What Ca.tt happen,. we know :what to look for. ~e dogs that engaged the governor are visible 'from the outside. If there is a gradual separation that can be de~~ted from a daily 'inspection~ then -we CB.!l live with the inherent :weaknesso But., if'· it occurs all at once, the: we may hav.e to mod:ify the design by instalJ..at:ion of thrust bearings or possibly posi ti-..re stops. In the ·fut'l.l.'l:"e it will be routine maintenance 't shut down periodically and check the bearing set screws located exterior to the casing. Furthermore" when the damaged shaf't is replaced, it be- hooves us to flatten the shaft with a. file where the set screws make con tact. If this doesn ~t do the job, the slla:ft could be drilled to accept the set screws.. Installation of a eecond set SC!rew could back-up the first an:d serve as a lock. Use of a glue-t'Jl:Pe lock ... -set is also adviseab ln retrospect, it :is un:fortt.ma.te that no d.Jrawings., instructions or -ws.ria: were proVided by the .msnu:facture:r. Service has also been nominal. Suomi tted by ----- • Richards, OWner October 14, 1983 Mr. Eugene W. Richards .Box 455 Ska.gway, AK ·99840 Dear Mr. Richards: SUBJECT: Department of Energy Grant # 657 BILL SH.f.FFIE!'fJ, GOVERNOR OFFICE ·OF ENERGY PROGRAMS 3601 "C" STREET. SUITE 7'22 ANCHORAGE, ALASKA 99503 (907) 561-4201 The Sta·te of Alaska in coordination vli th the U.S. Department of Energy (DOE) is p.lanning to publish a book de.scribing Appropriate Technology (A. T .. .) grant proj·ects in Alaska. Your project has been· .se.l.ected to be incl.uded in this book. This project wil 1 be managed by the A-T. Program Manager in Alaska, Norman Bair.. The availabl·e budget is~ very tight so we will be relying on input from the individual grantees like yourself. We have selected subtopics ·to be covered on each project as appropriate. These are listed on the enclosed page. They a.re taken from The Montana Renewable Energy Handbook. Written material .needs to be received in our .offi-ce by March 2, 1984 in order to keep our ,publishing schedule. It is voluntary, but I hope that you will be willing to provide t-he w:ritten rnater:ial .an your project with any sketches or graphics that may be helpful. We will provide editing of rough material from what you may provide. You may have already submitted your f ina1 reports on yo.ur project. If you think that the information is .availabl·e in the reports, please .let us know. In some c.ases we do not have copies of reports slibmi t·ted directly to DOE. If you have not written your reports, this project can also be used as your final performance report. October 14, 1983 Page Two As you may be aware., the Alaska Division of Energy and Powe Development ceased existence on June 3Oth. The remaining en erg: programs are now handled in the Division of Community Developmen in the Department of Community and Regional Affairs. Our addres will continue to be that shown on the letterhead until D~cember !f you have any questions, you can contact Norman Bair at thi address or telephone 561-4201. We look forward to your participation in this project. Sincerely, ~~Chief Energy Conservation Section Enclosures Burro Creek Holdings, LLC Burro Creek Hydroelectric Study APPENDIXK DRAFT REPORT REVIEW COMMENTS AND RESPONSES November 2011-Final Report MEMORANDUM DATE: November 17, 2011 TO: Jan Wrentmore polarconsult alaska, inc. 1503 West 33rd Avenue , Suite 310 Anchorage, Alaska 99503-3638 Phone : (907) 258-2420 FAX: (907) 258-2419 FROM: Joel Groves, Polarconsult Project Manager SUBJECT: Response to AEA Review Comments on Burro Creek Hydroelectric Study CC: Final Report Appendix K The Client Review Draft of the Burro Creek Hydroelectric Feasibility Study Final Report was provided to the Alaska Energy Authority (AEA) on October 31, 2011. The AEA provided comments on November 9, 2011. AEA comments and Polarconsult I Southeast Strategies responses are summarized below. As appropriate, AEA's comments have been incorporated into the final release of the Burro Creek Hydroelectric Feasibility Study Final Report, dated November 2011. AEA Comments Received (Polarconsult/Southeast Strategies responses in BLUE ) 1. Table ES-1: Capital construction costs in this table range from $2,585lkW to $3,909lkW. AEA is currently using the figure of $5,500ikW for estimates of hydropower at this level of study as the low end cost. Projects with significant upcharge features such as remote sites, multi miles of high pressure penstocks and several miles of submarine cables will likely cost more. All in all, it is expected these reported capital costs are far below what is believed to be reasonable for budgeting at the reconnaissance level in today's market. The cost estimates in Table ES-1 are based on analysis of unit costs and quantities for major project materials, equipment, and labor, and not on a simplified $1kW metric. While a $1kW metric is useful in comparing and evaluating projects, it is important to recognize that $1kW varies strongly with installed capacity and other factors. For example, $lkW for small hydro projects in Alaska under 300 kW can be expected to be $10,000 to $15,000 per kW or more, 2 to 3 times greater than the cited AEA metric. Recent experience in Skagway at Kasidaya Creek {commissioned in 2009), which is similar in many regards to Burro Creek, is in line with the cost estimates in this study, when adjusted for site specific differences. It is important to understand the limitations of cost estimates at the level of analysis performed for this study. Because this study did not include detailed geotechnical investigations, engineering design, and similar in-depth analyses, there are unknowns that may result in costs significantly different than those cited in this study. The budget contingency included in the construction cost estimate is intended to accommodate these, based on standard engineering practice. Future investigations ·will provide the data to refine these cost estimates. Because of these factors, the accuracy of these cost estimates can be considered as+ I-30%, as is typical at this level of study. 111117-BURROREPORT _AEACOMMENTS.DOC POLARCONSULT MEMORANDUM 2. Regarding export of power to the Yukon (Canadian) grid (page ii): The report states the proposed project would meet the needs of Yukon Energy and they would be willing to extend their transmission lines to the U.S. -Canadian border to purchase the power from Burro Creek. This approach would appear less speculative if an offer letter from the Canadian utility were provided in the appendix explaining the conditions that would have to be met for that to take place. Correspondence with Hector Campbell of Yukon Energy regarding an interconnection between the Yukon and Upper Lynn Canal grids and purchase of Alaska hydropower over this interconnection is attached to this memo. 3. The Executive Summary of the report fails to mention several other potential hydroelectric projects presently under consideration for study and future development in the Upper Lynn Canal region, including Walker Lake (1 MW), West Creek (25 MW), Connelly Lake (12 MW) and Schubee Lake (5 MW). These alternative projects will compete for the same limited markets that Burro Creek would propose to satisfy. These other prospective hydro projects have been added to the Executive Summary narrative. It is likely that these projects will improve the market opportunities for Burro Creek, rather that compete against Burro Creek. This would occur by either {1} opening up the Yukon Territory market, or {2) increasing the capacity of the Upper Lynn Canal grid so that cruise ships docked in Skagway and Haines can be served. The Upper Lynn Canal grid would need a combination of storage and run-of-river hydro projects in order to serve the variable 10 to SO MW combined load of the cruise ships that dock in Skagway during the summer months. 4. The page numbers for the Executive Summary need to be adjusted. This has been corrected. 5. Unless the project is limited to within the boundary of the USS 1560 property, the five year completion time for project first power is overly optimistic. The project will be subject to FERC licensing jurisdiction if federal lands are impacted. Note that all project configurations found in Table ES-1 will require FERC to be the licensing authority since BLM lands are impacted by project features. FERC's 5 MW exemption may apply depending upon the project configuration. The five-year schedule is based on the following assumptions: 1. BCH makes a near-term decision to aggressively develop the project, and is able to secure power sales commitments in a timely fashion. 2. The project uses FERC's Integrated Licensing Program, which provides for a three-year licensing period. A FERC exemption would have a similar or shorter time-frame. 3. Construction is completed in two years. Hydro projects frequently experience schedule creep and delay. Such delays generally are due to permitting delays and shifting environmental study requirements, but can be caused by a diverse range of project-specific issues. The project schedule presented in the report is a Page 2 of3 POLARCONSULT MEMORANDUM near-best case schedule, and delays are a real possibility. The report narrative has been revised to clarify these points. 6. The data in Table 2-4 should be labeled as in Fiscal Years of the State of Alaska (July 1 to June 30}. A footnote has been added to Table 2-4 specifying that the data is in state fiscal years. 7. The title of Table D-1 needs to be edited. This has been corrected. 8. In Section D.1 Maximum Possible Flood, the following statement is offered: "The estimated 2-year flood flows in Table D-1 are approximately 105% of the highest observed flows recorded at Burro Creek in 1.7 years of measurements." From Table D-1, the 2-Year Flood Flows have been calculated at 292 cfs. In fact, there were five high observed flows captured in the stage data, at 491 cfs on 9/22/11, 470 cfs on 9/21/11, 439 cfs on 8/21/11, 390 on 8/20/11, 321 cfs on 11/4/10, and nine other events that exceeded the 292 cfs figure. Given this data, the calculations of the 2 year flood data and the Maximum Possible Flood using the USGS methods appear to have significantly under-estimated the predicted high flow events. There was an incorrect entry for the 'storage' parameter input to the USGS model used to estimate flood flows. The flood flow and observed peak flow estimates in Table D-1 have been corrected. 9. Regarding the discussion of fish populations in Burro Creek in Section E.2: It has been AEA's experience that ADFG will require environmental flows to support Dolly Varden populations. This may impact your energy generation estimates. Additionally, the narrative refers to salmon visiting the creek but fails to mention how far up they can travel or if the waterfalls act as natural barriers. ADFG requirements are based on ADFG's comments regarding this specific project. In the event ADFG does determine minimum flows are required for Dolly Varden or other species, the economic impact on the project would depend on final powerhouse siting. If the powerhouse is located above the waterfall at site 'A' (see Figure A-3), fish habitat flows would not be altered from natural conditions. If habitat flow requirements did curtail project generation, this impact would be bracketed by the 'full sales' and 'partial sales' power generation scenarios considered in this study. The approximately 15-foot tall waterfall at mile 0.13 (see Photograph B-2) is a barrier to fish passage. These points have been clarified in the Appendix E narrative. Page 3 of 3 Burro Creek Holdings, LLC Burro Creek Hydroelectric Study --------Original Message -------- Subject:RE: Burro Creek Hydroelectric in Skagway Date:Mon, 21 Nov 2011 18:39:04-0800 From:Hector Campbell <Hector.Campbell@yec.yk.ca> To:Linda Snow <ljsnow@ak.net> Linda, Sorry for the delay in responding to you. Polarconsult Alaska, Inc.~ 1/ Yukon Energy is interested in a connection to Skagway to potentially import renewable energy from the Skagway grid when it is available or to export energy to Skagway when it is available in Yukon and needed in the Skagway power grid. For the grid intertie to be constructed, there would have to be favorable economics on both sides of the border. Yukon Energy is also reviewing the potential development of up to two hydro sites in Yukon along the Skagway road whose economics would be improved by an transmission line along the Skagway road between Carcross and the Alaska border. 2/ The economics of extending the existing 34 kV line from Carcross to the Alaska border would have to be assessed based on its maximum load carrying capacity (in MW's) as that would be the primary economic factor, in addition to the amount of power available (MWH's) for import and/or export. 3/ There are no set conditions I can give you. The economics and decisions would be approved on a case by case basis by the Yukon Utilities Board (YUB), our financial regulator in Yukon. In general they will look at both the short term and long term costs of this option compared to alternatives available to Yukon Energy at the time of our application to the YUB. 4/ There will be a max amount of load carrying capability in the lowest cost of connection option utilizing existing 34 kV transmission in both Yukon (Whitehorse to Carcross) and Skagway (Skagway to Goat Lake). To go above this threshold to improve the load carrying and energy transfer potential would require a new transmission line at 69 or 138 kV from Whitehorse all the way to Skagway which would result with a significant transmission cost increase. Hector Campbell. P. Eng., M.B.A. Director, Resource Planning & Regulatory Affairs Yukon Energy Corporation Ph: (867) 393-5331 Ce11:(867) 334-7070 Fax: (867) 393-5323 Email:hector.campbell@yec .yk.ca <mailto :hector.campbell@yec .yk .ca> Website: www.yukonenergy.ca From: Linda Snow [mailto:ljsnow@ak.net] Sent: Thursday, November 17, 2011 9:57AM To: Hector Campbell Subject: Fwd: Burro Creek Hydroelectric in Skagway Importance: High Mr. Campbell, I just left you a voice mail message about this. Alaska Energy Authority is reviewing the feasibility study, and they were asking if we could get some conditions in writing from you for the final. Please let me know if you get this message. I am gone from the office a lot this week, but you can reach me on my November 2011 -Final Report Appendix K Burro Creek Holdings, LLC Burro Creek Hydroelectric Study cell phone at 907-209-3603. Once the feasibility study is finalized, we would be happy to send you a copy. Thanks. Linda Snow --------Original Message -------- Subject:Burro Creek Hydroelectric in Skagway Date:Fri, 11 Nov2011 08:17:21-0900 From:Linda Snow <ljsnow(a ak.net> To:Hcctor.campbell(a yec.yk.ca Mr. Campbell, We spoke a couple of months ago about plans for Burro Creek hydroelectric near Skagway to expand their facility and offer hydro power for sale. You told me that Yukon Electric may be interested in purchasing Burro Creek power. From our conversation, I understood that Yukon Electric is considering a couple of projects near Tutshi Lake south of Carcross. One of those projects being considered is a pump storage project, which you felt might work well with Burro Creek upgrade. I understand that the Yukon Electric power line currently reaches from Whitehorse to Carcross, and if the Tutshi Lake projects are developed, that line would be extended to within about 35 miles of the Alaska Border. You said that Yukon Electric may be willing to continue that line to the Alaska border in order to connect with, and purchase Burro Creek power. We are completing the Burro Creek hydroelectric upgrade feasibility study. Would it be possible for you to reply to this e-mail with a list of conditions that would need to be met by Burro Creek hydroelectric in order for Yukon Electric to extend your power line to the Alaska Canada border to purchase Burro Creek power? Also, we are looking at several project configurations with various outputs. Is there a minimum and maximum amount of power you are interested in purchasing that would make your line extension more probable? I hope you are having a good holiday. Please don't hesitate to contact me if you have questions or need further clarification. Linda Snow Southeast Strategies Juneau, Alaska Phone: 907-780-6106 Cell: 907-209-3603 November 2011 -Final Report Appendix K