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HomeMy WebLinkAboutBlack Bear Lake Update of Power Market Forecast 1983BLA 011 BLACK BEAR LAKE HYDROELECTRIC PROJECT UPDATE OF POWER MARKET FORECAST PROPERlY Of: . I< Power ,A.uthonty A\as a 334 W 5th Ave. · A\asl<a 99501 J Anchorage, Prepared for the Alaska Power Authority Prepared by Harza Eng i neer i ng Company May 1983 r· ;'?r.t 0 General 0 ----Vol.---- June 20, 1983 TO: ATTACHED DISTRIBUTION LIST Enclosed for your information is a copy of a updated electric energy load forecast prepared for Craig, Klawock, Hydaburg and Thorn Bay on Prince of Wales Island by Harza Engineering Company for the Alaska Power Authority. Under separate cover a copy of this forecast has been filed with the Federal Energy Regulatory Commission as part of the licensing proceedings on the Black Bear Lake Hydroelectric Project and with the intervenors in the licens- ing proceedings -the city of Craig and Alaska Power and Telephone C01npany. If you have any questions or comments on the forecast please do not hesitate to contact me at the above address or by phone at 907-276-0001. FOR THE EXECUTIVE DIRECTOR Enclosures as stated BP:ms 9232 Sincerely, Brent Petrie Project Manager ,. I .. : DISTRIBUTION LIST Mr. William Chabot, General Manager Tlingit-Haida Regional Electric Authority P.O. Box 2517 Juneau, Alaska 99803 Ms. Lee Perkins, Plant Manager Tlingit-Haida Regional ~lectric Authority Klawock, Alaska 99925 Mr. E. Gregory Head Alaska Timber Corporation P.O. Box 69 Klawock, Alaska 99925 Mr. Fredriksen Office of Coastal Management Pouch AP Juneau, Alaska 99811 Mr. Robert Loescher Sealaska Corporation One Sealaska Plaza . Juneau, Alaska 99801 Mr. Leonard Kato, President Klawock Heenya Corporation P.O. Box 25 Klawock, Alaska 99925 Mr. Percy Frisby, President Haida Corporation P.O. Box 89 Hydaburg, Alaska 99922 Mr. Patrick Gardner, Shaan Seet, Inc. President P.O. Box 90 . Craig, Alaska 99921 The Honorable Bruce Cook Mayor, City of Hydaburg P.O. Box 49 Hydaburg, Alaska 99922 The Honorable Lee Axemaker Mayor, City of Craig P.O. Box 23 Craig, Alaska 99921 9232 '·. c The Honorable Robert W. George, Jr. Mayor, City of Klawock P.O. Box 113 Klawock, Alaska 99925 The Honorable Denis Kuntz Mayor, City of Thorne Bay P.O. Box 110 Thorne Bay, Alaska 99950 Mr. Ron Wolfe Tlingit-Haida Central Council One Sealaska Plaza, Suite 200 Juneau, Alaska 99801 Mr. Ed Johnson Tongass National Forest Federal Building Ketchikan, Alaska 99901 Mr. Adrian LeCornu City Manager City of Hydaburg Hydaburg, Alaska 99922 Mr. Walt Begalka Sealaska Timber Corporation 400 Mission Street, Suite 205 Ketchikan, Alaska 99901 Mr. Cliff McCarty Louisiana Pacific Corporation Thorne Bay. Alaska 99950 Mr. Steve Hansen Klawock Hatchery Alaska Department of Fish & Game Klawock, Alaska 99925 Mr. Lloyd Robinson. Holden & Associates 1710 Davis Avenue Juneau, Alaska 99801 Mr. W. E. Williams Local Government Specialists 311 Gruening Avenue Juneau, Alaska 99801 9232 ,• Mr. Jim Wilson City of Thorne Bay P .0. Box 110 Thorne Bay, Alaska 99950 Mr. George Woodbury Louisiana Pacific Corporation P.O. Box 6600 Ketchikan, Alaska 99901 Mr. Robert Martin Deputy Director Division of Design & Construction Alaska Department of Transportation & Public Facilities P.O. Box 3-1000 Juneau, Alaska 99802 Mr. Allen Bailey Tlingit-Haida Regional Housing Authority One Sealaska Plaza Juneau, Alaska 99801 Mr. Peter Freer Alaska Department of Community & Regional Affairs Pouch B Juneau, Alaska 99811 Mr. Brad Powe 11 Tongass National Forest Craig, Alaska 99821 Mr. Robert Cross Alaska Power Administration P.O. Box 50 Juneau, Alaska 99802 Mr. Bill MaCannell Island News P.O. Box 433 Thorne Bay, Alaska 99950 Mr. Will Jones Prince of Wales Island P.O. Box 72 Klawock, Alaska 99925 ., 9232 ... . . . , I' ~r. Bob Sanderson /o City Council City of Hydaburg P.O. Box 49 Hydaburg, Alaska 99922 9232 BLACK BEAR LAKE HYDROELECTRIC PROJECT UPDATE OF POWER MARKET FORECAST Prepared for the Alaska Power Authority Prepared by Harza Engineering Company May 1983 TABLE OF CONTENTS Introduction Page 1 Klawock Population Residential, Commercial, Public Sector Industrial Sector Craig Population Residential, Commercial, Public Sector Industrial Sector Hydaburg Population Residential, Commercial, Public Sector Industrial Sector Thorne Bay Population Residential, Commercial, Public Sector Industrial Sector LIST OF TABLES A Historical Population Data B Historical Electric Energy Consumption Residential, Commercial and Public Sector LIST OF EXHIBITS A Scenario A -Projection of Peak Load and Energy Demand B Scenario B -Projection of Peak Load and Energy Demand C Scenario C -Projection of Peak Load and Energy Demand LIST OF ATTACHMENTS A Agency Contact List B Comments on the Black Bear Lake Draft Environmental Impact Statement prepared by the City of Craig C City of Thorne Bay -Letter sent on August 23, 1982 to the Alaska Power Authority 2 2 3 4 4 4 5 5 6 6 6 7 8 8 8 9 BLACK BEAR LAKE HYDROELECTRIC PROJECT UPDATE OF POWER MARKET FORECAST Introduction As part of the continuing studies on the Black Bear Lake hydroelectric project, an update of future economic developments and needs for electric energy was performed for the power market area. In addition to the communities of Klawock, Craig, and Hydaburg, the City of Thorne Bay was included in the analysis. This letter report presents the results of the study. A visit was made to the power market area from April 22 to April 27. Discussions were held with community govern- ments, utilities, business entities, and state and federal agencies. A list of these contacts is presented in Attachment A. For each community, the 1982 historical data are presented and compared to earlier data. Then the update of future economic developments is described followed by a revision of the electric load forecasts for the period 1982-2001. Three scenarios were developed, based on differing socioeconomic assumptions. The load forecasts are presented in Exhibits A, B, and C in a format similar to the previous forecasts presented in the Alaska Power Authority Findings and Recommendations of February 1982, and the License Application. Scenario A is based on projections made by representatives of the municipalities, native corporations, and local entrepreneurs. Population estimates are derived from the comments on the Black Bear Lake Draft Environmental Impact Statement prepared by the City of Craig, and from estimates sent by the City of Thorne Bay to the Alaska Power Authority. A copy of these documents is presented in Attachments B and C. The industrial developments were also derived from these documents and from discussions with representatives of the existing industries, and new business ventures. Scenario B reflects a more conservative growth, specially in terms of population projections. The average annual growth rate for the period 1982-2001 is about half the rate presented in Scenario A. Both scenarios assume operation and expansion of the existing industries, introduction of a forest product industry in the late 1980's, and recovery of the fishing industry. Scenario C assumes a very depressed economy. The future population growth is less than half the historical growth. Although timber harvesting will continue, no forest product industry is introduced until the mid 1990's, except for Thorne Bay where the Louisiana Pacific Corporation has definite plans to install a chip plant. Activities in the fishing industry would increase very slowly. 1 For each community, an analysis of historical trends and assumptions used in developing the scenarios is presented in the following paragraphs. Historical data are presented for the population, and the electric energy demand of the residential, commercial and public sector. To maintain consistency with the projections presented in the License Application, the same approach was used. Estimates of short and long term average annual growth rates of per capita energy consumption and population were used to compute the energy demand of the combined residential-commercial-public sector. The peak demand of this sector was computed from the historical load factor increasing gradually to 50 percent. Peak and energy demand projections were made separately for the fisheries and forest products industries. For the fisheries industries, the energy demand of a cold storage facility, which operates between mid-May and mid-September, is equal to the load demand operating around the clock for four months at a load factor of 60 percent. In addition, if the facilities are used for bottomfish processing and other year-round operations, the energy demand for the remaining 8 months is equal to 60 percent of the summer load operating at a load factor of 30 percent. For the forest products industries, the energy demand is equal to the load demand operating for 3400 hours at a load factor of 60 percent. Klawock Population For the past ten years, the population has increased at an average annual growth rate of 7.4 percent. In 1983, the population was about 490. Table A presents the historical data and the annual growth rates. During the past two years, there was an increase of about 100 people due to the immigration of former residents or the arrival of new residents attracted by the economic development of the area. Scenario A reflects the population projections made for the Prince of Wales Island Regional Government Study, and the assumptions made by the City of Craig. As reported in Table 1 of Attachment B, the population of Klawock would vary between 720 and 1,080 by 1992, with an antic- ipated population of 900. For the period 1992-2001, an average annual growth rate equal to 5.3 percent (70 percent of the annual growth rate of the previous decade) was used. The 2001 population would be 1,400. Under Scenario B, the population is not expected to continue its rapid historical growth because of the saturation of job opportunities. The population is projected to be 500 by 1986, 590 by 1991, and 720 by 2001. 2 Under Scenario C, the population will remain the same until 1986, and then increase slowly at an average annual growth rate of 2 percent. The 2001 population would be 660. Residential, Commercial, and Public Sector The completion and operation of the dock facilities on Klawock Island have revitalized the local economy. Plans are underway to develop new residential and commercial areas. This fall, the Bureau of Indian Affairs is scheduled to open a road in the other half of the island. A request for 25 additional housing units is pending review by the Department of Housing and Urban Development. The village corporation is finalizing financing for a mini-mall, and the state is expanding its maintenance shop. The Department of Transportation and Public Facilities is upgrading the Klawock airport. The runway will be lengthened from 2500 feet to 3400 feet. Future funding may allow for paving and expansion to 6000 feet, giving the Prince of Wales Island a facility to land jet aircraft and cargo planes. Although there are no immediate plans to expand the lodging accommoda- tions, the increase in tourism will most likely require more facilities. In the long term, the community of Klawock is expected to benefit from the logging development in the area, the expansion of the dock facilities and the airport, tourism, and renewed interests in the cannery operations. As a result of these developments, the per capita consumption of energy is expected to continue to increase. As derived from Tables A and B, the historical per capita consumption increased rapidly from 1,610 kWh in 1978 to 2,700 kWh in 1982, at an average annual growth rate of 13.8 percent. By comparison, the total 1980 per capital consumption, including industrial consumption, was about 7,000 kWh for the State of Alaska, and 6,000 kWh in Southeast Alaska. The residential per capital consumption, alone, was about 3,200 kWh for the State of Alaska, and 2,800 kWh in Southeast Alaska. Under Scenarios A and B, the per capita consumption is expected to increase at an average annual growth rate of 5 percent until 1986, then at 3 percent. The total energy demand is expected to increase from 1,169 MWh in 1982 to 7.150 MWh in 2001 under Scenario A; 3,680 MWh under Scenario B; and 3,250 MWh under Scenario C. The peak demmand would increase from 300 kW to 1,630 kW, 840 kW, and 740 kW respectively. 3 ' . Industrial Sector Fisheries Industries. Although the village corporation has decided, for the short term, to terminate its operation of the existing cannery, they are planning to lease the facilities. A local entrepreneur, with the financing of Japanese associates, has definite plans to use some of the existing facilities for the coming salmon season, and to build a new facility for cold storage and year-round operation (bottomfish and speciality processing plant). The load demand is estimated at 250 kW under Scenarios A and B, · increasing more or less rapidly to 350 kW by 2001. Under Scenario C, a load demand of 200 kW is expected until the mid of 1990's, and then would increase to 250 kW. The energy demand was computed using the assumptions described in the introduction. Forest Products Industries. The village and regional native corporations are planned to continue the timber harvest. For 1983, Klawock Heenya Corporation has scheduled a cut of about 17 Million Board Feet (MMBF). The dock facilities which were completed in 1981 are used for the loading of round logs to Japan. There is a good possibility that a chip plant, a mill, or other forest products industries under consideration by the village and regional native corporations, might be installed on Klawock Island. However, for the purpose of these forecasts, the load was kept in Craig and Hydaburg. The power and energy requirements of the Alaska Timber Corporation (ATC) are not included because ATC has installed its own wood waste generation capacity. Craig Population For the past ten years, the population has increased at an average annual growth rate of 6.8 percent. In 1983, the population was about 905. Table A presents the historical data and the annual growth rates. During the past two years, there was an increase of about 300 people due to the immigration of former residents or the arrival of new residents attracted by the economic development of the area. The arrival of large number of new families is changing the character of the area. Standard of living expectations are much higher for these new residents than for many long-term residents of the area. Scenario A reflects the population projections made for the Prince of Wales Island Regional Government Study, and the assumptions made by the City of Craig. As reported in Table 1 of Attachment B, the population of Craig would vary between 1,440 and 1,800 by 1992, with an antici- pated population of 1,620. For the period 1992-2001, an average annual growth rate equal to 5.1 percent (70 percent of the annual growth rate of the previous decade) was used. The 2001 population would be 2,480. 4 Under Scenario B, the population is not expected to continue its rapid historical growth because of the saturation of job opportunities. The population is projected to be 1,010 by 1986, 1,230 by 1991, and 1,500 by 2001. Under Scenario C, the population will increase slightly to 1,080 in 1991, and 1,320 by 2001. Residential, Commercial, and Public Sector The City of Craig is developing as a subregional government and service center for Prince of Wales Island. The East Craig area is being developed for residential and commercial lots •. The lots are connected by roads, and water-sewer systems are being installed. The following decription shows the rapid growth: About 165 building permits were issued in the past 2 1/2 years, more than 60 water and sewer hookups are programmed for the next year, two new shopping centers are opening, and a small cement plant is under construction. Financing is being secured for an office building, a court house, and a jail. The road between Craig and Klawock is being upgraded, which will facilitate transportation between the communities and Hollis, the ferry terminal to Ketchikan. Other projects include the paving of new roads within the city limits, and a marine industrial facility under consideration by the City of Craig and the Department of Commerce and Economic Development. The per capita energy consumption was about 3,450 kWh in 1982, and is expected to continue to increase steadily to 5,700 kWh by 2001 under Scenario A and B, and 5,230 kWh under Scenario C. The total energy demand would increase from 2,765 MWh in· 1982 to 14,140 MWh in 2001 under Scenario A; 8,550 MWh under Scenario B, and 6,900 MWh under Scenario C. The peak demand would increase from 630 kW to 3,230 kW, 1,950 kW, and 1,580 kW respectively. Industrial Sector Fisheries Industries. The new cold storage facilities of Craig Fisheries are expected to continue their operations throughout the study period. The load demand is 300 kW in 1982, and is projected to increase progressively to 400 kW. Under Scenario A, the facilities will also be used year-round from the early 1990's. Forest Products Industries. The village corporation is actively continuing its timber harvest. In 1983, they have planned to cut 10 to 15 MMBF, and would like to increase the annual cut to 15-20 MMBF. Shan Seet, Incorporated is also studying, with other agencies, the possibilities of using small logs and other lower grade logs for a more finished product such as particle boards. Based on a conservative interpretation of their projections, a 500 kW load demand is expected 5 in the late 1980's under Scenarios A and B, and in the mid 1990's under Scenario C. This load would only increase under Scenario A to about 750 kW. Hydaburg Population For the past ten years, the population has increased at an average annual growth rate of 5.5 percent. In the 1983, the population was about 450. Table A presents the historical data and the annual growth rates. During the past two years, there was an increase of about 100 people due to the immigration of former residents or the arrival of new residents attracted by the economic development of the area. Scenario A reflects the population projections made for the Prince of Wales Island Regional Government Study, and the assumptions made by the City of Craig. As reported in Table 1 of Attachment B, the population of Hydaburg would vary between 900 and 1,260 by 1992, with a anticipated population of 1,080. For the period 1992-2001, an average annual growth rate equal to 7.1 percent (70 percent of the annual growth rate of the previous decade) was used. The 2001 population would be 1,950. Under Scenario B, the population is not expected to continue its rapid historical growth because of the saturation of job opportunities. The population is projected to be 520 by 1986, 630 by 1991, and 810 by 2001. Under Sc~nario C, the population would be about 580 in 1991, and 710 in 2001. Residential, Commercial, and Public Sector Several major developments are changing the economic outlook for Hydaburg. The last section of the road to Craig is now under construction by the native corporations. Although it will be only a one-lane logging road, the Department of Transportation is planning to upgrade the road in the coming years. This road transportation network to Craig, Klawock, Thorne Bay, Hollis, and the Klawock airport, will facilitate trade between the communities and the outside, as well as increase tourism in Prince of Wales Island. The village corporation has constructed a log storage facility, and a sort yard at Saltery Point, about 2 miles south of Hydaburg. These facilities are already being used for the shipment of logs. About 20 to 25 ships will be loaded during the coming months. Haida Corporation is planning to expand these facilities, so that they can be used not only for timber transshipment, but also for the shipment and receipt of other goods. A 100-man logging camp is also being under consideration between Hydaburg and Saltery Point. 6 A new specialty seafoods plant is under construction. process other seafoods in addition to salmon and will smokery. Its goal is the year-round employment of 36 This plant will include a workers. The City is developing new residential areas, and has requested 20 housing units from the Department of Housing and Urban Development. They are also securing funding to expand the water supply. A 16,000 sq. ft. gymnasium has just been completed. The next main development will be the construction of a deep-water port, and an industrial park, just south of Hydaburg. As a result of these developments, the per capita consumption of energy is expected to continue to increase. From about 2,340 kWh in 1982, it is projected to increase to 3,300 kWh in 1991, and 4,430 kWh in 2001, under Scenarios A and B. The 2001 per capita consumption would be 4,100 under Scenario c. The total energy demand would increase from 965 MWh in 1982 to 8,640 MWh in 2001 under Scenario A; 3,590 MWh under Scenario B; and 2,910 MWh under Scenario c. The peak demand would increase from 260 kW to 1,970 kW, 820 kW, and 670 kW respectively. Industrial Sector Fisheries Industries. As mentioned earlier, a new specialty seafoods plant is under construction, near the.existing facilities. Although Haida Corporation is not planning to operate the cold storage facilities during this summer season because of the softness of the market, they are planning the integraton of the existing facilities into the new plant and expect full operation in the next two-three years. A load demand varying between 350 kW and 450 kW is projected. Forest Products Industries. For 1983, the village corporation has planned a timber harvest of 25 MMBF, and would like to maintain an annual cut of about 15 MMBF for the next ten years. In addition, the regional corporation will continue its timber harvet on Dall Island and Long Island, averaging between 40 and 60 MMBF per year. Most of the logs would be processed at the Saltery Point sort yard. Although the chip plant under consideration by Sealaska, the regional corporation, has been put aside for the short term, the village corporation and local entrepreneurs are studying the construction of a cedar mill, and a shingle and shake mill. Under Scenarios A and B, a load demand of 750 kW is projected for the late 1980's, increasing to 1,000 kW by the mid or late 1990's. Under Scenario C, such a development would only come in the mid 1990's, and would have a load of about 500 kW. 7 Thorne Bay Population Until July 13, 1982, when it became incorporated as a City of the second class, Thorne Bay was a logging camp of the Louisiana Pacific Corporation. As shown on Table A, the population had been decreasing from 550 in the mid 1970's to about 300. However, the slow recovery of the timber market, and the recent sale of residential land parcels by the State of Alaska has changed the historical trend. By the end of 1983, there will be about 400 people within the city limits. Under the State land disposal programs, all Alaskans who purchase land under the Homesite Laws are required to have a home built within 4 years after purchase. With the parcels already sold, 56 homes must be built by 1984. Scenario A reflects the population projections made by the City of Thorne Bay (Exhibit A of Attachment C). The population projections were adjusted to reflect the differences in the 1982 base year. The 2001 population would be 1,460. Under Scenario B, the population is expected to continue to increase rapidly until the late 1980's, then to increase at an average annual growth rate of 4 and 3 percent. The 2001 population would be 910. Under Scenario C, the population will increase more slowly, and would be 700 in 2001. Residential, Commercial, and Public Sector The City limits encompass approximately 22.5 square miles, making it the largest city on Prince of Wales Island. Of the total, about 1,000 acres have been transferred into private ownership under the State lottery and homesite laws. The City will be able to select 700 acres under its municipal entitlements for commercial, industrial, and residential zones. The U.S. Forest Service has a district office which manages the federal lands of the northern half of the island. They have now a staff of about 25 full-time employees and 20 summer employees. They are expanding their facilities: housing, offices, and maintenance shop. The Louisiana Pacific Corporation is still the main source of employment. They have now definite plans to install a chipper for small logs. If the timber market continues to recover, they would consider expanding their activities and install a sawmill. The shortage of a cold storage or ice-making facility on the east coast of Prince of Wales will provide Thorne Bay with some opportunities to 8 develop a fishing industry. Local entrepreneurs are studying several possibilities, and the farming of shellfish. The commercial sector is growing, and will continue to grow as industry is attracted to the area. Because Thorne Bay was originally a logging camp, many services are not yet available, and could be developed. One of the major long-term economic potentials would be the development of a deep-water port facility in Tolstoi Bay on land selected by the State of Alaska in 1976 for such a purpose. The proposed port facility would include a mainline ferry terminal, barge terminal, and a small boat harbor. However, at this time, no detailed studies have been done, and no financing has been secured. The per capita consumption was about 3,040 kWh in 1982, and is expected to increase to 5,760 kWh by 2001 under Scenarios A and B, and to 5,080 kWh under Scenario C. The total en~rgy demand would increase from 1,050 MWh in 1982 to 8,410 MWh under Scenario A; 5,240 MWh under Scenario B; and 3,560 MWh under Scenario C. The peak demand would increase from 300 kW to 1,920 kW, 1,200 kW, and 810 kW respectively •. Industrial Sector Fisheries Industries. The fishing industry will develop in the form of a cold storage, ice-making facility and fish buying station for the short term, and in year-round small processing plant for the long term. A load demand of 100 or 200 kW is projected at the beginning, increasing to 150 kW under Scenario C, and 250 kW under Scenarios A and B. Forest Products Industries. As mentioned earlier, the Louisiana Pacific Corporation (LPC) is planning to install this year or next year, a chip plant for small logs. Based on discussions with representatives of LPC, the load demand would be about 750 kW. Under Scenarios A and B, an additional 250 kW was added to reflect the potential expansions of this facility. 9 -I TABLE A HISTORICAL POPULATION DATA Klawock Crais Hxdaburs Annual Annual Growth Growth Year Population Rate Population Rate Population (%) (%) 1973 240 ---467 ---264 1974 251 4.6 475 1.7 291 1975 266 6.0 484 1.9 350 1976 290 9.0 493 1.8 384 1977 300 3.4 503 2.0 380 1978 350 16.7 560 11.3 380 1979 404 15.4 620 10.7 381 1980 385 -4.7 587 -5.3 381 1981 389 l.O 560 -4.6 356 1982 433 11.3 8oo1/ 42.8 412 1983 490 13.2 905-13.1 450 !J Estimated Annual Growth Rate (f) --- 10.2 20.2 9.7 -1.0 o.o 0.3 o.o -6.6 15.7 9.2 Thorne Bax. Annual Growth Population Rate -m 550 550 o.o 550 o.o 550 0.0 400 -27.3 375 -6.3 300 -20.0 320 6.7 320 0.0 316 -1.2 400 26.6 s t"" tsj > Year 1913 1974 1975 1976 1977 1978 1979 1980 1981 1982 TABLE B HISTORICAL ELECTRIC ENERGY CONSUMPTION RESIDENTIAL-COMMERCIAL-PUBLIC SECTOR Klawock crais Annual Annual Energy Growth Energy Growth Sales Rate Sales Rate (MWh) (%) (HWh) (%) NA ---918 --- NA ---1,054 14.8 NA ---1,200 13.9 NA ---1,332 11.0 NA ---1,483 11.3 563 ---1,608 8.4 772 37.1 1,857 15.5 833 7.9 2,023 8.9 867 4.1 2,388 18.0 1,169 34.8 2,765 15.8 Hldaburi5 Annual Energy Growth Sales Rate (HWh) -m 324 466 43.8 551 18.2 725 31.6 675 -6.9 840 24.4 901 7.3 861 -4.4 957 11.1 965 0.8 ~ tzj IJ:I SCENARIO A PROJECTION OF PEAK LOAD AND ENERGY DEMAND RESIDENTIAL-COMMERCIAL-PUBLIC SECTOR Annual Annual Annual Annual Growth Growth Growth Growth Klawock 1982 Rate 1986 Rate 1991 Rate 1996 Rate 2001 Per Capita Consumption (kWh) 2,700 5.0 3.280 3.0 3.800 3.0 4,410 3.0 5,110 Population 433 7.6 580 7.6 840 5.3 l ,080 5.3 l ,400 Energy Consumption (MWh) 1,169 1,900 3,190 4,760 7.150 Peak (kW) 300 470 760 1,090 1,630 Load Factor (%) 45 46 48 50 50 Craig Per Capita Consumption (kWh) 3,450 4.0 4,040 3.0 4,680 2.0 5,170 2.0 5.700 Population 800 7.3 l ,060 7.3 1,510 5.1 1,930 5.1 2,480 Energy Consumption (MWh) 2,765 4,280 7,070 9,980 14,140 Peak (kW) 630 980 1,610 2,280 3,230 Load Factor (%) 50 50 50 50 50 Hydaburg Per Capita Consumption (kWh) 2,340 5.0 2,840 3.0 3,300 3.0 3,820 3.0 4,430 Population 412 10.1 600 10.1 980 7.1 l t 380 7.1 1,950 Energy Consumption (MWh) 965 1,700 3,230 5,270 8,640 Peak (kW) 260 430 770 1,200 1,970 Load Factor (%) 42 45 48 50 50 Thorne B~ ~pt Per Capita Consumption (kWh) 3,040 5.0 3,700 3.0 4,280 3.0 4,960 3.0 5,760 Ill ~ OQ ::r Population 316 10.0 460 8.0 680 8.0 990 8.0 1,460 lb ...... cr Energy Consumption (MWh) 1,050 1,700 2,910 4,910 8,410 ........... rt Peak (kW) 300 430 690 1,120 1,920 0 l"'l> Load Factor (%) 40 45 48 50 50 N SCENARIO A PROJECTION OF PEAK LOAD AND ENERGY DEMAND TOTAL SYSTEM 1982 1986 1991 1996 2001 Peak Enertllx Peak Ener~x Peak Ener~x Peak Ener&l Peak Energy --w MWh kW MWh kW MWh kW MWh kW MWh Klawock Res./Com. Sector 300 1,169 470 1,900 760 3,190 1,090 4,760 1,630 7,150 Industrial Sector Fisheries Industries 200 430 250 690 300 830 300 830 350 970 Forest Products Indust. 0 0 0 0 0 0 0 0 0 0 Total 500 1,599 720 2,590 1,060 4,020 1,390 5,590 1,980 8,120 Crai~ Res./Com. Sector 630 2,765 980 4,280 1,610 7,070 2,280 9,980 3,230 14,140 Industrial Sector Fisheries Industries 300 600 350 700 350 970 400 1,100 400 1,100 Forest Products Indust. 0 0 0 0 500 1,020 750 1 !530 750 1,530 Total 930 3,365 1,330 4,980 2,460 9,060 3,430 12,610 4,380 16,770 Hydaburg Res./Com. Sector 260 965 430 1,700 770 3,230 1,200 5,270 1,970 8,640 Industrial Sector Fisheries Industries 350 750 450 1,240 450 1,240 450 1,240 450 1,240 Forest Products Indust. 0 0 0 0 750 1,530 1 !000 2,040 1 2ooo 2!040 Total 610 1, 715 880 2,940 1,970 6,000 2,650 8,550 3,420 11,920 Thorne Bay Res./Com. Sector 300 1, 050 430 1,700 690 2,910 1,120 4,910 1, 920 8,410 Industrial Sector Fisheries Industries 0 0 200 340 250 690 250 690 250 690 Forest Products Indust. 50 180 1,000 2,040 1 ,ooo 2,040 1 !000 2 1 040 1 1 000 2,040 Total 350 1,230 1,630 4,080 1,940 5,640 2,370 7,640 3,170 11,140 Total '"dtzi II) ~ oq ::s' Res./Com. Sector 1,490 5,949 2,310 9,580 3,830 16,400 5,690 24,920 8,750 38,340 Cll ...... CT Industrial Sector N t-'• rt Fisheries Industries 850 1,780 1,250 2,970 1,350 3, 730 1,400 3,860 1,450 4,000 0 '"">-Forest Products Indust. 50 180 1 1 000 2!040 2,250 4 1 590 2 1 750 5 1 610 2!750 5 1 610 N Total 2,390 7,909 4,560 14,590 7,430 24,720 9,840 34,390 12,950 4/,950 -.. -, SCENARIO B PROJECTION OF PEAK LOAD AND ENERGY DEMAND RESIDENTIAL-COMMERCIAL-PUBLIC SECTOR Annual Annual Annual Annual Growth Growth Growth Growth Klawock 1982 Rate 1986 Rate 1991 Rate 1996 Rate 2001 Per Capita Consumption (kWh) 2,700 5.0 3,280 3.0 3,800 3.0 4,410 3.0 5,110 Population 433 4.0 500 3.0 590 2.0 650 2.0 720 Energy Consumption (MWh) 1,169 1,640 2,240 2,870 3,680 Peak (kW) 300 410 530 650 840 Load Factor (%) 45 46 48 50 50 Crai~ Per Capita Consumption (kWh) 3,450 4.0 4,040 3.0 4,680 2.0 5,170 2.0 5,700 Population 800 6.0 1,010 4.0 1 J 230 2.0 1,360 2.0 1,500 Energy Consumption (MWh) 2,765 4,080 5,760 7,030 8,550 Peak (kW) 630 930 1,310 1,600 1,950 Load Factor (%) 50 50 50 50 50 Hydaburg Per Capita Consumption (kWh) 2,340 5.0 2,840 3.0 3,300 3.0 3,820 3.0 4,430 Population 412 6.0 .520 4.0 630 3 .o 730 2.0 810 Energy Consumption (MWh) 965 1,480 2,080 2,790 3,590 Peak (kW) 260 370 490 640 820 Load Factor (%) 42 45 48 50 50 Thorne Bal_ Per Capita Consumption (kWh) 3,040 5.0 3,700 3.0 4,280 3.0 4,960 3.0 5,760 Population 316 10.0 460 7.0 650 4.0 790 3.0 910 Energy Consumption (MWh) 1,050 1,700 2,780 3,920 5,240 "tt t-J• Ill H Peak (kW) 300 430 660 890 1,200 OQ ::r (I) ..... Load Factor (%) 40 45 48 50 50 IT .......... " 0 l"'hb:t N '. ,Kl' . . PROJECTION OF PEAK LOAD AND ENERGY DEMAND TOTAL SYSTEM 1982 1986 1991 1996 2001 Peak Eoer~x_ Peak Ener~x_ Peak Ener~x_ Peak Ener~x_ Peak Ener~n: kW MWh kW MWh kW MWh kW MWh kW MWh Klawock Res./Com. Sector 300 1,169 410 1,640 530 2,240 650 2,870 840 3,680 Industrial Sector Fisheries Industries 200 430 250 690 250 690 300 830 350 970 Forest Products Indust. 0 0 0 0 0 0 0 0 0 0 Total 500 1,599 660 2,330 780 2,930 850 3,700 1,190 4,650 Crai~ Res./Com. Sector 630 2,765 930 4,080 1,310 5,760 1,600 7,030 1,950 8,550 Industrial Sector Fisheries Industries 300 600 350 700 350 700 400 800 400 800 Forest Products lndust. 0 0 0 0 500 1,020 500 1 !020 500 lz020 Total 930 3,365 1,280 4,780 2,160 7,480 2,500 8,850 2,850 10,370 Hydaburg Res./Com. Sector 260 965 370 1,480 490 2,080 640 2,790 820 3,590 Industrial Sector Fisheries Industries 350 750 400 1,100 400 1,100 450 1,240 450 1,240 Forest Products Indust. 0 0 0 0 750 1!530 1,000 2!040 1 !000 2,040 Total 610 1, 715 770 2,580 1,640 4, 710 2,090 6,070 2,270 6,870 Thorne Bay Res./Com. Sector 300 1,050 430 1,700 660 2,780 890 3,920 1,200 5,240 Industrial Sector Fisheries Industries 0 0 100 170 150 260 200 340 250 690 Forest Products Indust. 50 180 750 1!530 1,000 2!040 1,000 2,040 1,000 2!040 Total 350 1, 230 1,280 3,400 1,810 5,080 2,110 6,300 2,450 7,970 Total -- Res./Com. Sector 1,490 5,949 2,140 8,900 2,990 12,860 3,780 16,610 4,810 21,060 Industrial Sector >OPI Ill X Fisheries Industries 850 1,780 1,100 2,660 1,150 2,750 1,350 3,210 1,450 3,700 OQ ::r Ill ..... Forest Products Indust. 50 180 750 1,530 2!250 4!590 21500 5! 100 2!500 5!100 a' N ..... Total 2,390 7,909 3,990 13,090 6,390 20,200 7,630 24,920 8,760 29,860 f"t 0 1-hb:l N SCENARIO C PROJECTION OF PEAK LOAD AND ENERGY DEMAND RESIDENTIAL-COMMERCIAL-PUBLIC SECTOR Annual Annual Annual Annual Growth Growth Growth Growth Klawock 1982 Rate 1986 Rate 1991 Rate 1996 Rate 2001 ------ Per Capita Consumption (kWh) 2,700 4.0 3,160 3.0 3,660 3.0 4,240 3.0 4,920 Population 433 3.0 490 2.0 540 2.0 600 2.0 660 Energy Consumption (MWh) 1,169 1,550 1 J 980 2,540 3,250 Peak (kW) 300 390 470 580 740 Load Factor (%) 45 45 46 48 50 Crai~ Per Capita Consumption (kWh) 3,450 3.0 3,880 2.0 4,290 2.0 4,730 2.0 5,230 Population 800 4.0 940 3.0 1,080 2.0 1,200 2.0 1,320 Energy Consumption (MWh) 2,765 3,650 4,630 5,680 6,900 Peak (kW) 630 830 1,060 1,290 1,580 Load Factor (%) 50 50 50 50 50 Hydaburg Per Capita Consumption (kWh) 2,340 3.0 2,630 3.0 3,050 3.0 3,540 3.0 4,100 Population 412 5.0 500 3.0 580 2.0 640 2.0 710 Energy Consumption (MWh) 965 1,310 1 J 770 2,270 2,910 Peak (kW) 260 350 450 540 670 Load Factor (%) 42 43 45 48 50 "CCtz:l Ill ~ OQ ::r Thorne Bay Rl ..... rT ..-..... rt Per Capita Consumption (kWh) 3,040 3.0 3,420 3.0 3,970 3.0 4,600 2.0 5,080 0 1'1'10 Population 316 8.0 430 5.0 550 3.0 640 2.0 700 N Energy Consumption (MWh) 1,050 1,4 70 2,180 2,940 3,560 Peak (kW) 300 390 550 700 810 Load Factor (%) 40 43 45 48 50 scr iO . PROJECTION OF PEAK LOAD AND ENERGY DEMAND TOTAL SYSTEM 1982 1986 1991 1996 2001 Peak Ener~~ Peak Ener~~ Peak Ener~~ Peak Ener~~ Peak Eners~ kW MWh kW MWh kW MWh kW MWh kW Hwh Klawock Res./Com. Sector 300 1,169 390 1,550 470 1,980 580 2,540 740 3,250 Industrial Sector Fisheries Industries 200 430 200 550 200 550 250 690 250 690 Forest Products Indust. 0 0 0 0 0 0 0 0 0 0 Total 500 1,599 590 2,070 670 2,530 830 3,230 990 3,940 Cr a i _g_ Res./Com. Sector 630 2, 765 830 3,650 1,060 4,630 1,290 5,680 1,580 6,900 Industrial Sector Fisheries Industries 300 600 300 600 330 660 360 720 400 800 Forest Products Indust. 0 0 0 0 0 0 500 1 !020 500 1 !020 Total 930 3,365 1,130 4,250 1,390 5,290 2,150 7,420 2,480 8,720 Hydaburg Res./Com. Sector 260 965 350 1,310 450 1, 770 540 2,270 670 2,910 Industrial Sector Fisheries Industries 350 750 350 860 350 860 400 1,100 400 1,100 Forest Products Indust. 0 0 0 0 0 0 500 1 !020 500 1,020 Total 610 1, 715 700 2,170 800 2,630 1,440 4,390 1,570 5,030 Thorne Bay Res./Com. Sector 300 1, 050 390 1,470 550 2,180 700 2,940 810 3,560 Industrial Sector Fisheries Industries 0 0 0 0 100 170 120 210 150 260 Forest Products Indust. 50 180 750 1! 530 750 1,530 750 1,530 750 1,530 Total 350 1,230 1,140 3,000 1,400 3,880 1,570 4,680 1, 710 5,350 'Qtzj Total -=~ Ill I"'• c:r Res./Com. Sector 1,490 5, 949 1, 960 7,980 2,530 10,560 3,110 13,430 3,800 16,620 N I"'• " 0 Industrial Sector 1"1'10 Fisheries Industries 850 l, 780 850 1,980 980 2,240 1,130 2, 720 1,200 2,850 N Forest Products Indust. 50 180 750 1! 530 750 1!530 1!750 3!570 1!750 3!570 Total 2,390 7. 909 3,590 11,490 4,260 14,330 5,990 19,780 6,750 23,040 ATTACHMENT A AGENCY CONTACT LIST Mr. William Chabot, General Manager Tlingit-Haida Regional Electric Authority P. 0. Boxt 2517 Juneau, Alaska 99803 Ms. Lee Perkins, Plant Manager Tlingit-Haida Regional Electric Authority Klawock, Alaska 99925 Mr. Robert S. Grimm, Vice President Alaska Power & Telephone Co. P. 0. Box 222 Port Townsend, WA 98368 11r • j\~ L • • I <S ""' 11 c..J:f , P 1 ant Manager Alaska Power & Telephone Co. Craig, Alaska 99921 Mr. , Plant Manager Alaska Pow~r & Telephone Co. Hydaburg, Alaska 99922 ~. E. Gregory Head Alaska Timber Corporation P. 0. Box 69 Klawock, Alaska 99925 ~. Fredrikson Offic~ of Coastal Management Pouch AP Juneau, Alaska 99811 ~. Dnn Howse Ataska Department of Fish & Game 415 Main Street #208 Ketchikan, Alaska 99801 Mr. Vince Matt ~tr. Wanamaker Sealaska Corporation One Sealaska Plaza Juneau, Alaska 99801 ~. Leonard Kato, President Mr. Charl~s Katasse, General Manager Klawock H~enya Cor por at ion P. 0. Box 25 Klawock, Alaska 99925 Attachment A Page 1 of 4 Mr. Percy Frisby, President Mr. Woodrow Morrison, Jr., Resource Manager Raid a Cor por at ion P. 0. Box 89 Hydaburg, Alaska 99922 The Honor able Bruce Cook Mayor, City of Hydaburg P. 0. Box 49 Hydaburg, Alaska 99922 The Honorable Lee Axemaker Mayor, City of Craig P. 0. Box 23 Craig, Alaska 99921 Mr. Patrick Gat'dner, Pt"esident Mr. Ron Schwear ingen, Resource Manager Shaan Seet, Inc. P. 0. Box 90 Craig, Alaska 99921 The Honorable Robert W. George, Jr. Mayor City of Klawock P. 0. Box 113 Klawock, Alaska 99925 The Honorable Denis Kuntz Mayor, City of Thorne Bay P. 0. Box 110 Thorne Bay, Alaska 99950 Mr. Ron Wolfe Tlingit-Haida Central Council One Sealaska Plaza, Suite 200 Juneau, Alaska 99801 Mr. Ed. Johnson Mr • Dar l Enger Tongass National Forest Federal Bui.ldi.ng Ketchikan, Alaska 99901 Mr . Adr ian LeCor nu City Manager City of H yd ab ur g P. 0. Box 49 Hydaburg, Alaska 99922 Attachment A Page 2 of 4 Mr. Glen Vernon City Administrator City of Craig P. 0. Box 23 Craig, Alaska 99921 Mr. Walt Begalka Sealaska Timber Corp. 400 Mission Street, Suite 205 Ketchikan, Alaska 99901 Mr. Cliff McCarty Louisiana Pacific Corp. Thorne Bay, Alaska 99950 Mr. Steve Hans-en Klawock Hatchery Alaska Department of Fish & Gam~ KLawock, Alaska 99925 Mr. Lloyd Robinson Hold@n & Associates 1710 Davis Avenu@ Juneau, Alaska 99801 Mr. W. E. WiLLiams Local Government Specialists 311 Gruening Avenue Jun@au, Alaska 99801 Mr. J i.m Wilson City of Thorne Bay P. 0. Box 110 Thorne Bay, Alaska 99950 Mr • Gear ge Woodbury Mr • Dan Lo it z Louisiana Pacific Corp. P. 0. Box 6600 Ketchikan, Alaska 99901 Attachment A Pa~e 3 of 4 Mr. Robert Mart in Deputy Director Devision of Design and Construction Alaska Department of Transportation & Public Facilities P. 0. Box 3-1000 Juneau, Alaska 99802 Mr • A l len Ba i 1 e y Tlingit-Raida Regional Rousing Authority One Sealaska Plaza Juneau, Alaska 99801 Mr . Peter-Fr-l!er Alaska Department of Community & Regional Affairs Pouch B Juneau, Alaska 99811 Mr. Brad Powell Tongass National Forest Craig, Alaska 99921 Mr • Bob Arnold, General Manager- Ketchikan Public Utilities Ketchikan, Alaska 99901 Attachment A Page 4 of 4 AT'!'ACHMENT 8 Attachment B Page 1 of 18 COMMENTS ON THE BLACK BEAR LAKE DRAFT. ENVIRONMENTAL IMPACT STATEMENT (PROJECT NO .. 5715) PREPARED FOR THE FEDERAL ENERGY REGULA TORY COMMISSION (OFFICE OF ELECTRIC POWER REGULATION) PREPARED BY THE CITY OF CRAIG, ALASKA LEE AXMAKER, MAYOR APRiL 1983 1 .......... ·:..-•"'·' . . Page 2 of 18 Hotn:tn~us-. ~~o~.\ou·:. E.\S1'At·c~u ~ HHAnu. Y .... ,.,.., ••• 0 ........ , .... . •c.~rc.•• •••• ,. •·c••c" •. ••o••• ...• ., • .t •••• , • • ·t St ••• ~;,.•••uo• .,.11,.0\.C• ~~--Ct • ..,,.o .. a, c"'••• .. -~"~ ...... ~ , ....... ~,._, ......... c• ,._ ...... " .. c. .. cc:•-•-..-.. ..., ... p••, c.. , •o'-o t •-c• w• .... , •• , ,,.. c ,.,.•o•• .\. ..... ,. ... "',. -"'·' ...... , , ........... , !i· .. · • ........... ..,,\. ...... t ....... ,,') """'. ··"'"'. ,., .. M .... ~ ... e-t\pril 27, lll~} ·~·· ( l'f;('t. • .,. •'• a••{ •(· ••(" C. A\, .. ~·· •••teo • .. ~ .. , owo•• 1n·•••, 'St:A ll OtTlCE ~·""' •o•c• ·c~c• <'•O·••·••• rt••• •••-•• r-..oc• • '-'"' c c: •o• ., .. l•v .......... •••~t -C' ... t eC""· •~•· ll•.• .... "'' ·=· ... (• ·c.acw•·4t::J"'.._ ~r. Kenneth F. i'lurnb, Sccret3t'}' federal Energy Regulatory Commission 825 ~orth Capitol Stre~t, N. E. ~~s~in;ton, 0. r. 2J42~ R c : ? l a c k Fee r L..:! k e t~ y t ~ C"e l e c t r i c P r C" J e c t FERC ~~. 571~-000 ((t~t~ENTS ON DPr-FT r~:\'IROf~~·::s':'AL rMPACT STATE~E'HT Dear Secret~ry ?~um~: 7~~ C:•y ~! :~~i~. rn t~.r~ draft fnvi:-cnT:~cf"'tal takP Hy~ro~l~c:r1c ?roJcc:. A l ,"! s ~. 2i !~rae~ ~~:c~; trans~~~s its cc~~cnts S ~ a t l"' "'c n t f c r t h t· ::< : c:: .: ".;. ;! c a r "':"re City of C:-aig su~por-t.:..·. ~t:•-! l~~t: ... 1r-~Ct.· ·• ..J fEr: license fer: this t'rOJec~. We are su~~lttir.c;, as ~~rt of c~r cor.-meonts, some new rcpu:ation p::-ojectiC"n.s: fc::-?::-:.nee rf ~ ... les !sland, which we trust r:1ay be of use tn the up~atinc; c: load ~orecast figures. we also transmit (by copy 0f this letter) these new population projections to the Alaska Power Authority for t~eir consideration and use. based on the State of Alaska's request for a time ext~ns1on until May 2, 1983. I had also requested the ~arne time exten~ion, ln il telephone conversation with Gary Morgans of your legal staff on April 4. The r-easo, ttlis time extension was needed is that it took thr-ee weeks for tht" draft environmental impact statcrn(•nt copies to travel from FERC to tile addressees, arr1vin; ~1arch 25. The tlmin; of our submittal of comments is r, ...... ---..... ·-··--Page J of 18 We <"pprC!'ciate y<'ur consideratinn in the matter of the time extension, and trust our comments may be helpful to the Commission. 1Jf2dzd-e~ D. El i;:-t&Jth Cuadra City Attorney, City of Craig DEC/mt" cc: (w/encl.): Gle~ Vernon (City Administrator, City of Craig) Alaska ?ower Authority (Attn: Eric P. Yould. Exec. Dir.l Holcen & Associates (Consultin~ En~inPers) -2- Page 4 of 18 TAetE OF CONTENTS Page Introduction l I. Island Population Characteristics and Gro~th Projections 2 II. Island Transportation Capital Improvement Projects and Plans 6 III. Funding 5etting and Interties Potential between Present Distributors 8 I ~ ~ IV. Project Impact and Mitigation "easur~s 12 v. Summary 14 Introduction Attachment J:S Page 5 of 18 The City of Craig supports the Plack ecar take Hydroelectric Project as cJ significant capital irnprc.,vell'tt?nt which will facilitate continued growth and improve the quality of life on Prince of Wales Islc-nd. The City also fincls that ti"e February 1983 .. Oraft Fnvironmental tmpact State~ent .. for the Alack Pear tc-ke project offers e fair and valid assessment of the project i~pacts, and generally appropriate miti~ation measures to ~inimize adverse impacts. Il"l an E"ffort to assist the ,\lasR~ Power 1-uthorit.y (APA) and the Federal Energy Regulatory Commission (rERC), the present commer.ts provide updated infor~ation relating to Island populatiof'l characteristics af'\d growth projections, Island transportation, capital improvement projects and plans and a discussi~n of ti"e fuf'lding setting, if'lcluding the possibility of interties between presef'lt electrical distributors. Finally, our c~m~ents suggest a few a~ditional mitigation ~easures. -1- Page 6 of 18 I. Island Population Characteristics and Growth Projections. The Draft EIS contaiMs an analysis of Island population and projections for. future growth (pp. 3-37 through 3-39). Figures in the ~ocument were supplied by the Alaska Power Authority in 1982. Draft EIS figures are as follows: Estimated populct ion for Craig, Klawock anc Hydaburg (1979): 1,400 (rounded). Hial"l projection for Craig,· Klawock and Hydaburg !1991): 2,~30 trounded). Anticipated popt:laticn for Craig, Klawock anc' Hydaburg ( 1991): 2, 170. Lo~oo· forecast for Craig, Klawock, and t!yd.:-l:'urg (199ll: 1.745 (rcunced). In ~arch of 19R3 the f1nal dr~ft for the Pri~ce of t..r c 1 e !-I s l a nc~ Reg i on co 1 Go v e r n !"'en t S t u c y w a s com p l e ted by a consulting firm under contract tc tre City of c~aig, the pro j e c t s p on so r . The de rnog r a ph 1 c s s ~ c t i c n of the Dr a f t FiMal Report contains population prcJcctiO~$ for t~e Prince cf Wales Island as follows (see Volu~e !, pp IV-3 and IV-4}: 1992 high projectior.: 11,000. • • 1992 anticipated populJt:cn: 8,020. 1992 low forecast: 5,265. To arrive at these figures the consultant employee the following method: ll review previous population characteristics for the Island, including causes of population fluctuations; 2) survey majC'r government agencies and industries to assess future development plans, including potential job creation (U. S. Forest Service, ~E-alaska, Village Corporations, etc.): 3) review and determine past, present and anticipated number of residents per job on Prince of wales Island tso-called "~ultipliers"); 4) forecast high, anticipated and low populatlons for Prince of ~ales Island through 1992. of tl"le which final The methodology is more fully u1scus~ed in Volume I Draft F'ln~l R~port for thP k~g1cnal Gcvernment Study, i s ,., t t a c he d a s A r p e n d 1 x A • 7 o s u r. ~a r i z e , the Dr a t t Report contatns t...,0 conclu!":i~Or~ i'H' fnl!0ws: 1) the -:!- 1'<1~1.! 7 0 f 18 number of r~sident~ per j0b (multipli~r) tor Prince of ~~les Island has bl!en increasino at ."n increasing rate fnr a rumber of years ~nd will continur to do so through at least 1992: the reason for this increase is the development of a support infrastructure on the Island whereby goods and services are provided to industry from Prince of Wales Island communities as opposed to Ketchikan or Seattle: 2) the multiplier is presently .estimated to be about l. 7: this figure has grown from 1.44 estimated in the 1970 census and is expected to equal or @xceec 2.46 by 1992. 1. Pooulation Projections for Craig, Klawock, and Hydaburc. The Regional Government study shows that approximately 8,000 people will reside on Prince of Wales Island in 1992. The question then becomes, how many of these people will reside in Craig, Klawock and Hydabcrg? 7o answer this question several sets of data can be erployed: these data are as follows: 1) populations within col"!"'..munities as a percent of total population; 2) recent growth and indicators o: growth; 3) recent population c~unts: 4) anticipated growth through JOb and servi~es development. a) Percent of Total Populatlon ~ithin Com~uniti~~. The estimated porulaticn for Prince of Wales Island for l~t2 in the RegionaliGovernment Study is 3,400 (see Volur.~e I, page III-5). Of this total the Department cf Corn~unity and Regional Affairs showed the 1982 Cr<"ig popul~tion to be 560, the Klawock population to be 390 and Hydaburg to be j55. Together, these three communities had a total population of 1,300 or about 38\ of the Island population. Within the l, 300 Craig had about 43\ of the population, Klawcck had 30\ and Hydaburg 27\. b ) R e c e n t Grow t h and I n d i c a tors • I n d i c a t i on s of rapid and recent growth in Craq; are numerous. The indicators include the upgrade in the past year of the City reservoir to provide more than 250,000 gallons of water storage, 165 building permits for hous1ng in the past 2 l/2 years, more than 60 water and sewer hookups ~rogrammed for the next year, the construction of a new cement plant within the City limits, two new shopping centers in the City in the past year and related items. c) Recent Populat1on Counts. Within the past few weeks the City of Craig has completed a new census for the corporate t-ouncari~s. '!hi..; census .show.-: tl"i'!~. 002 persons now reside in Craig. It should be noted ttl21t this census has been taken before the influx of transient workers -3- I , Pn,.:t~ S of I 8 normally as~oci.:.tP.d with the sull"mer l"''Onths. When corr.1ar .. ~d to the Ocpartr.u~nt of Community l\ncf Ftegional Affairs 1982 r~venuP sha~ins population figur~ of 5~0 p~rsons, this census shews ~ recent population increase of 342 persor.s, or a 61\ increase. d) Anticipated Growth. As shown ahove, Craig h.:\s historically contained-about 43\ of the Craig, Klawock an~ Hydaburg population, Klawock 30\ and Hydaburg 2"7\: and the· three co~munities together have contained about 38\ r: thP. total island pcrulation. However, owing to growth policie~ of the co~munities, these proportions are expected to change somewhat through 1992. While information from Klawock is yet forthcoming and while it is understood that Hydaburg will be comrr.enting on the Draft EIS separately, the following assumptions are noted; ( 1) The City of Craig will continue to experic~ce rapid growth as the government anc service center for central Prince of Wales Island. (2) The City of Klawock, at least fc::- the foreseeable future, will remain J predominately native, residential commu~i'; wit~ a modest growth rate. (3) Tt'le City of Hydaburg will experien• ·~ r-apid <;;r-owth as a result of new industri.~: activity and the cctnpletion and upgrade 't tr-ansportation facilites connecting Hydabu~g wit.h the rest of the Island, Ketchikan ar.c ott'ler points. (4) The three communities together will account for a la~ge~ percentage of the tot~l Island population by 1992. 2. findings. In light of these data and assumptio~s, the following population projections for Cr~lg, Klawock and Hydaburg are offered. (Figures are baSfh: on an anticipated total of Island population of 8,000 wit:' 3,600 persons residing in the communities of Craig, Klaw("'~ck and Hydaburg). -4- Table 1 : POPULATION Communit;x: \ of Study Craig (high (anticipated) (low) KlawOCK (high) (anticipated) (low) Hydaburg (high) (anticipated) (low) PROJECTIONS FOP Area Populi'tion SO\ 45\ 40\ 30\ 25\ 20'- 35'- 30\ 25~ 1992 Number 1,800 1,620 1, 44 0. 1,080 900 720 1,260 1,080 900 t\~;;~;acnmen~;. o Page 9 of 18 of People Totals: Under any combination c-f ~cE>nariC's tMe population c-f t~e three com~unities is anticip~tec to ~e about 3,600. -5- , ... II. Islnnd Transportation C~pital Imrr~v•ment Projects ~nd Plans. At t<.11.: hmcn t B P:tgc 10 of 18 Various public:ally-funded capital ill'provements on Prince of Wal~s Island are in the planning, design or construction phase at the presel"'t time. A discussion of these projects by type follows. l. Transportation. Transportation facilities ceveloprnent is a key to the overall economic growth on Pt'i!"ce of wales Islan<~. The State of Alaska, the Federa~ ~cvernmcnt, private industry and the Island communities have long recognized the economic potential of the Island and have planned, designed and CC'\n~tructed transportation improvett~ents to ef!ect trat potential. These projects .:-.re. as follows: a) Roads. 7he Is lane network t:as been develoi)ec jointly by the federal Government (PI;.. anc Forest Servic~?l end the Alaska Department of Transportation and ?u~lic Facilities (QOT?Fl ever the past twenty or more years. Presently every major community 01"1 ":.ht? Islanc ('>:cept Hydahurg is connected to other communities and to the Alaska Marine Highway terminal ~t Hollis. The 1982 DOTPF six year plan showed over 530 million in improvements prograrn~ed for this road network; thes~ improyements inclucec up~racing existing roads to two lane,· paved art~rials (A;,SH"!:O secondary standards} anc the complet:..on anc upgrade o£ a road link between Hydaburg and the rest cf the rsland. 7hc •Hydaburg Road" is presently under construction by Sealaska t h r o u g h a n a g r e em e n t w i t h DOT P F w he r e by S e a l a s k a w i 11 construct a basic facility, and DOTPF will purchase anc upgrade that facility. Last year Sl million was appropriated .to the project by the State; a supplemental appropriation bill recently signed by the Governor contains an additional saoo,ooo plus for the project, and tt"le remaining S2 million for the project is anticipated in FY84 appropriations. Other current projects include an upgrade of the roads between Craig and Klawock, City of Craig pav1ng projects, Klawock paving projects and Thorne P.ay road upgrade projects, all with current funding. t'l} Airports. The DOTPF has rccentl}' upgradec the Klawock a1rport from a "local airport" designation to a "subregional hub airport" designatinn. 7his change in classificat:,.,r. has allowed the DOTPF to progr.'Hn and exrcnd fu~cs f~r t~• ex~ansion of the faciltty, which lt 1s -t'- Attachment B Page 11 of 18 curr<'ntly doing. fund~ obtained in FY83 will lengthen the runway from 2,500 feet to 4,000 feet o~ More. Future funding may allow for paving and for ulti~ate exp~nsion ~o 6 , 5 0 0 fee t or nor E." , g i v i n g t h c I s 1 ~' n d a f a c i 1 i t y w i t h t h f' capacity to lane Jet aircraft and large cargo planes. cl Ports. rlanning, progr~rnrring and construction of marine facilities ranges from up~rades of S!Tiall boat harbors to CC'nS true t ion of rna j o~ d<'E'P water ports, barge loading facilities and marine industrial facilities. Small boat nar~c·r upgradE's include thE' Craig South Cove Har·bor, which was rP.cent ly irnp~oved through th<' ·construct ion of .a b~eakwatP.r and finger Eloats: additional funds for i~proving the channel and floats of this facility havP. been p~ogr~~med ~y DOTPr. t-1ajot" port construction c'\nd upgrade projects include a t'lreakwater in Hydahurg new undergoin<; review by the A~rr:y Corps of Engin~ers;. a bargE:!' loading f«"cilit;,· in Hydaburg now under consideration by the OOTPr and the City: a narine industrial f«"cility now under consideration by the City of Craig and the Alaska Depar-tment of Cotrrrer-ce and Econo~ic DevelormPnt: port irrpr~vements in Kasaan new under study by the City of Kasaan and DOTPF: and p~rt impr~vP.ments in Thorne ~ay now under consideratior ty the City of Thorne Bay and COTPF. c) Otl'ler '!r-an!=.t"l~rtation Facilitirs. ':'he 007PF operates fer-ry serv1ce tc Prince ot i·;ale~ Is:ar.c witt"~ a terminal at Hclli.s, south of '!horne P..~y. Dur!rg the past w i n t e r , use of t 1"1 i s s e r v i c c h a s 9 r Cl ..... n to t r. e r o i n t whet" e vessels are !"!OW consistently :-coked o:c c?pacity, anc DOTPF is preparing to increase service capacities to accommodate remand. e) Planninc. The DOTPF recognize~ that r;.ajor industrial activity underway and planned for Prince of WalE's Island will lead to increased demand for ser-vices and facilities. To develop a sound approach to meeting this dE'mand DOTPr has earmarked funds for a "Prince of vJales Island Transportation Plan.• This plan will b~ initiated in the next few months nnd will result in an analysis of needs and a program of imprcvemen t s to f"'ee t thosE' needs. Needs may extend from ports, to airports, to rcacs lrr:provements, to maintenance: and improvements may il"!clude siti~g of ports, airport expansion, road upgrades and ~ccrler~ted maintenance schedules. Results of thE' plan will be used to ~evelop portion5 of thP Governor's bu~get for future yc!rs, thus adc1ng to <"~nd protecting the Slgr'llflcant inv('strrent alre"dy mC'de on thP Isl.:-nd t"ly thE' St..:>tt' 0f :\l~!=r.a. Page 12 tJf 18 III. funcinq Scttinq and Int~rtiP.~ Potential Hetw~Pn Pr~~~nt Distrlbut~r~. 1. funding Settina. Table l-6 on page 1-14 of the Draft EIS shows the Alack Bear Lake Project coming on line wit~ a construction cost of ~~out S4~.7 million. That t~ble also shows the average cost of Black Bear power to be 22.7 cents per Kwh. The 22.7 cent figure anticipates that Dlack ~ear Lake will be financed through the salP nf (tax exempt) revenue bonds, a~c the cost of debt r~tir~ment is therefore seen 3S a si~nific3nt portion of the Kwh costs. · It should be pointed out in this same context that Governor Sheffield has made a very firm policy cf investing publlc capital i~provements funds in projects whic~ produce jobs. As shown in previous sections of this document Prince cf Wales Isl~nd is an area now experiencing rapid growth and is thcrPfore a center of Pxisting and pot~ntial sicnificant e~rlov~ent ccoortunity. \\'Mile it is rot expected t:r·at the Governor, his advisors or the Legislature would provide ~ graf't for the entire construction cost of P.lack Bear Lake, it is distinctly possible that the Governor and the :.egislature :ay provide a grant fer a ~ajor share ryf tMe project capit~l costs. \o.ot"ile no "formulas" for State invclvefl'lt?nt l!'i th:.~ sort of project currently exist, fermer State :rvclve~ent ~n medium-sized Mydroelectric projects sil'l"ilar to F-lack Bear Lake is well documented. If the State were to pay enough of the capital costs of the project so that the combined debt retir~ment of the re~aining cnnstruction costs and the ongoing operations and maintenance costs equated to an energy cost of, say, 15 cents per Kwh, then the incentive for industrial development, job creation and (pctential) new State tax bases on Prince of Wales Island prom~ted hy th~se low energy costs could he easily demonstrated. !t is understood that the ;..laska ?ower Authority staff is Ctlready discussing ongoing State involvement in hydroeletric projects at i!' policy level, and it is anticipated th~t the Power Authority response t0 the EIS and their ne._. ioad for~c:ast for the stu1!y <H·ea •nl: take this saliPnt r.c·~nt ~nlo consiccratit'n. t ht, new 10.-:!d T!"'ornp PJy ,,;. I' (, t ,.., n t 1 a l f r r I n t t' t· t l t • ~ • 1 t tcrec,"lst, '*it'n or· ... :~Lhout i\ ccf"lsumcr r.f P.le~c•. P•',1r -!:l- t!; r·xpectc<i tMat the inclusion of (") u t r \..; r , w i 11 show At tacnmem;: .o Page 13 of 18 Prince of l·lales Island electrical demand approaching the ~~pacity of the ~l~ck Bear Lake facility very soon after the facility comes on line. TherefoE"e, a disr.ussion of the potential for interties or a •grid system• between present pE"oducers appears relevant at this time. ~s shown in the £IS, there are currently five major producers of electricity within the EIS study area, as follows: 1) Tlingit Haida Regional electrical Authority (THREAl in Klawock; 2) Alaska Timher Corporation (ATC) in Cralg/Klawock: 3) Alaska Power and TelephOne (APT) in Craig and Hydaburg; 4) Craig Fisheries in Craig, and 5) Sealaska Fisheries in Hydaburg. ' For purposes of the present document only the first thrP.e of these producers will be examined to analyze ~otential interties. (a) Ph4!se 1: Aoreernents. ;..n immediatf" agreement between THRE;. and APT could provide an int('rt ie between Craig and Klawock. THFEA is understood to have excess power available wt-.ich could be sold to the t'I'Ore rapicly growil"g market in Craig. This sale may preclude the nccc for AP~ to install an additional generator and would therefore reduce cosr:s in the area l:'y precluding the nPed to rE"tire ~coitional capital improvements de~ts for ge~eratio~ of petroleum -dependent pow~r. f The Alaska Power AuthoE"ity has alrea~y received ~n appropE"iation from the Legislature of S720,000 to install a tranmission line between the two ccmt'l'unities: cost estit'l'ates for tre line were somewl"lat low, however, and an additional SJOO,OOO is still needed to install the line. Prior to any line installation, an agreement ~etweem THFEA and APT would have to be executed. It is the understanding of the City of Craig that ,.A..PT is opposed to such an agreement and would prefer to install its own additional generator despite the fact that a cost saving to the consumer could be ef fee ted through tho THREA agreement and the State-funded transmission line. An additional agreement could be effected among THREA, APT, and ATC whereby ATC would sell ~ooowaste-pE"ocuc~d electricity to both of the other ~gencies at tlmes when ATC plant demands permit. In this fashion both THREA and APT customers could reduce diesel consumption and sell ATC electricity to their custo~crs ~t le~st ?art of the time. Since the woodwast~ electricity is cheaper tt'lan -9- ·-·. r. Page 14 of 18 the diesel generator electricity, this further agreement could result in additional savings to t~e consumer. with the existence Clf t~e grid system described above, each of the three electrical producers would have a standing backup supply of power in the evel"'t of equipment fr-ilure. b) Phase 2: Production from Slack ~ear Lake. This p~~se would entail the production of power from ~lack ~ear Lake anq would also entail Hydaburg and possi~ly Thorne Bay becoming members of the Island grid system. Until Slack Sear Lake reached capacity, the diesel and woodwaste systems would serve as backup system·s for ~lack Bear Lake. Under this scenario cCinsumers would be assured of an ongoing·power source despite equipme~t f~ilure of the dicsel/woodwaste generators and despite failure of the Black Pear Lake facility, unless a multiple failurP. happened to occur at the same time. c) Phase 3: Future Considerations. Although projections Ol"' growth and development tend to lose reliability at an exponential rate at a point beginniNJ a~cut ten years frol'!l the point of the t'rojections, it is neve r t he 1 e s s a n t i c i p a t e d t ~a t P r i n c e o f vi a 1 e s r s 1 a n d w i 1 l experience c~~tinued growth and development through t~e re~ainderlof the century. It is therefore als~ anticicated that at ~ome point ~etween 1992 and the vP.ar 2000 ~ot~ the Plack Bear take project and the back~? or "suopleme~tal" dleselfwoodwaste system will te at caoacity, thus requirlng the construction of an additional hydroelectric facillty in the Reynolds Creek area or at some ether appropriate location. Given the scenario developed in phases (1) and (2) above, it is seen that the addition of a secnnd hydroelectric project on Prince of v~ales would supplement the existing grid system on the Island, witM tMe diesel/woodwaste production facilities again assuming a role of backup to the hydroelectric facilities. Planners and programmers may also want to keep in mind tJ"Ie long range plans of the Alaska Power Administration, under which a grid system encompassing all of Southeast Alaska might he established. Under the scenario presented hen~. Prince of Wales Island would be a likely candidate fer inclusion in such a grid sy~tem. -10- Page lS·of 18 J. Findings. As s"o""n above, the City of Craig vie...,s the Black Bear Lake facility as a key part of an overall energy development program for Prince of W~les Island. This energy development program ...,ould occur in concert with economic development on the Island, both in response to demand (the load forecast} al'ld as a motivation for industrial location and development (through the availability of· lo..., cost, reliable energy). Key components of this development are the willingness of the ~tate of Alaska to assist with the capital costs.of ~lack Bear Lake : :-o j e c t a n d t he w i 11 i n g n e s s o f I s 1 a n d e 1 e c t r i c·a 1 producers/distributors to work together and for the public good. Careful attention should be paid to J..PT in this context. It is known both that APT is opposed·to the Black Bear Lake project and that APT is opposed to cooperative agreements with THREA. Since APT is under review at present by the Alaska Public Utilities Commission wit!'l resi)ect to its performance and management practices, it is urc.;ec that FtRC staff review any APT corn.tTients on Black Eear Lake in light of the larger Island ener~y development pictcre. -ll- r~ I ., Attachment B Page 16 of 18 IV. Proj~ct Impacts and Mitiaation ~easures. We believe that the impacts of the proposed projPct have been thoroughly addressed in thE' Ora f t En vi ronmen tal Impact Statement, and that those impacts will be minimal, particularily if the mitigation measures discussed in the draft EIS are adopted and i~plemen_ted. We do ~ave a few additional mitigation measures to suggest, as follows. Pirst, during t~e construction phase of t~e project, whef"' a large number of construction workers ar'e involved, we expect there may he s need for additional staffing of the City of Craig police department, in order to keep the peace during weekend and/or evef"'ing recreation activities by construction workers visiting the City of Craig. vJe would appreciate any impact assistance aid that might be available, under any federal program, to assist us in paying for this additional staffing. Such assistance ..... culd help to ndtigate the econci'T'ic impact on the City of Craig. The Draft EIS suggests ar. interim transmission line across a portion of Natzuf'iini ~ay. \·Je prefer that this interim transmissiol" linE' be omitted, and that the final routing (around the head c! the bay) be constructed at the outset, as part the preferred alternativP. Our reason is that Natzuhini &ay is extensively used by migrating (and some overwintering) waterfowl, and we believe there woulc be losses of waterfowl by collision with ~ransi'T'ission lines, if the transmission line were constructE'd across a portion of the bay itself rather than around t~c head of t.he bay. Waterfowl are important to P.laskans as food, bcs ides the-ir inherent wildlife values. Those construction activities which result if"' sedimentation to streams should be scheduled so as to minimize impact on fisheries values. ~edi~entati~n in streams should be avoided when fish eggs are-present in the stream bE'd. ~ased Of"' our information fror.1 lC'cJl fisheries experts, such construction activities ideally should be 1 imi ted to the period fro!':' mid-June to early August. If construction scheduling requirements de~and compromise of these contraints, we request that Sfldirnent producing activities at least be limited to the period fro~ mid-May to early August. The prim<"ry fisheries resource at st.;:~~:P. here pink salmon, which run on a t'WO year spawn1ng cycle. would prefer that sedirr.t:r.t generat il"g p("''rr ie"l"~ cf -12- is 'tiC the • 1\t:t;acnment: o Page 17 of 18 construction activites be scheduled sn as tc ~1n1mize i~pact on pink salmon by limiting such construction activities to the even numbered years, at which time there ~re fewer pinks in Black Bear Cr~ek, and it is doubtful that any pink salmon spawn above Black Bear Lake in those years. We ask that the section on mitigation measures ~ake a commitment to limiting any brush control (such as from transrnisson lines corridor maintenance) t~ non-chemical means (!..:..2.•• mechanical means). We are against the use of chemical hert-icides (because of their po'tential effects on fisheries, wildlife, and humans who gilther wild berries), when alternative means are available. Finally, we believe the statement in section 4.1.4.1, to the effect t~at deer populations are enhanced t::y clearcutting, should be reconsidered. That belief has been superseded by ~ore recent studies, which show Cat least in Southeastern Alaska l that old growth forests tend :o provide undergrowth for food and shelter from snow, both of which are important for survival of Sitka black tail deer during severe winters, and that second g.rowti" stards after clearcutting do not provide these ~enefits. Generally, the mitigation measures selected in the Draft EIS are very good: .... e suppcrt their it'11plomentC~tion, and trust this highly ~e~eficial project Wlll proceed. -13- V. ~utr~m<"~ry. Attachment ts Page 18 of 18 A major capital investment in h:·croclectric power generation such· as Plack Pear t..ake can t-e justified only after careful ccnsiccration as the nc:oed for the project is weighed again!'t its costs and impacts. The City of Craig feels that the fERC staff has ~ade a fair and valid assessment of the costs and the in"pacts of the proposed project: our comm~nts have attetr~pted to provide FERC staff with new data regarding the need for the project. We hc!'ve-shown that r.~~jor population increases are occurring on the Island at present and. will continue to occur for t~e foreseeable future. These population increases are thP. result of significant economic activity on the Island. We have further shown that otrer public agencies in the State, local and federal sectors have long noted this economic activity and have tr~ade sizeable capital investments in response. These investfl"ents include transportation, utilities and services. ~e have also s~own a willingness on the part of tPe State of .A.lasr.a to participate fl•rther in this ecor.cr'·ic development by securing i!l"' appropriation for ~n intertic between Craig anc Klawock: and we have d iscussec the very real possibility that the State-may make ~n ~pprop~iatior. ~n ·c~sh out• ? sizPabl~ ~crtion of tte Black Rear La~e construction cost, thus accing further incer.tive fer Prince of ~ales eccncmic development through the ~rov1sicn of low cost and reliat:'lle electricity. Fir.ally, we have shown an emerging energy development plan for the Isl,;nd c.nd i::z relation to Southeast Alaska as a w!"c!e. ln C~n<d~·si~ 0: this plan we have cautioned against interests which ...,cuid hamper economic development and public benefit in favor cf narrower motives. -14- ATTACHMENT C r ' ~. I T Y 0 F T H 0 R N E B A Y P.O. Box llO Thorne Bay, AK 99950 August 23, 1982' RE: Black Bear Lake Hydroelectric Project State I.D. No.: AK8207l3-03 Mr. Srent Petrie Alaska Power Autaority 334 W. 5th Ave., 2nd Floor Anchorage, AK 99501 Dear Mr. Pet~ie: Attachment C Page l of 6 This brief is directed to tae Alaska Power Authority by the City of Thorne Say in order to ;rovide an accurate estimate of energy needs !or the next 19 years. Thorne Say became Alaska's newest city on July 13, 1982, when it incorpora~ed as a City of ~he second class. The City limits encompass approximately 22.5 square miles, ~akin; it the la~gest city on Prince of Wales Island, and one of the largest in South- east Alaska. Of ~he total acres involved, aoout l,OCO acres ~ve been transferred into private ownership under :he State lottery and homesite laws. T~e City will ~e able to select 700 acres under its municipal entitlements for develo;~ent as commercial, industrial, or residential zones. The following governmental, industrial and co~~ercial devel- opment in Thorne Say is either under construction or being seriously considered. The new Forest Service Administrative Site, already one-third complete, will house 30 families and 50 temporaries. The anticipated energy demand is .8~~wnr/yr. This complex will come on line in l98u and will buy its power from tae Thorne oay Public Utility. The potential of Thorne oay as the transportation center of P~ince of Wales Island was realized as early as 1976 when the State selected land around Tolstoi Bay as a possible deep- water port facility. The proposed port facility would include a mainline ferry ter~inal, barge terminal, and a small boat harbor. The projected energj demand for this facility is .78 Mwnr/yr. The trucking indus~ry will ex~ar.d with the growth of the Island population and will need .87 Mwnr/yr. initially. Energy demand is expected to grow at 6~ per year !'or these industries beg:~ning in 1986. Page J August 2J, 1982 Attachment C Page 3 of 6 With the influx of people and industry into Thorne Bay, the City will nave to provide uniform utility services to the people and the most important of these is electricity. Plans !'or additional generating facilities will begin this year as the City starts to plan its growth, and the information for interfacing these facilities with Black Sear Hydro power is . needed soon. ~e recommended route !'or the transmission line is along the Sig Salt Road and east along the 5000 Road into Thorne Bay. This would require about 25 miles of line and no additional road construction. I!' power is made available to Thorne Bay by 1986, we will become one, if not the largest user, by 2001 as shown in Exhibit B. The time ·required to pay off the project will be reduced by JO to 40~, depending on which funding scenario is used. We urge you to recognize the need for power in Alaska's newest city and include Thorne 5ay in the Slack 3ear Lake Hydroelectric Project. Sincerely, $~77!.# Denis :·!. K ~.:.n t z c:;:r Mayer enc cc: Wendy Wolf State-Federal Coordinator ~iv. of Policy Development and Planning ?ouch AW (MS-0165) Commissioner McAnerny Dept. of Community & Regional Affairs Pouch. EH Juneau, AK 99811 Rep. Oral Freeman 2743 Jrd Ave. Ketchikan, AK 99901 Senator Robert H. Ziegler, S~. 307 Bawden Street Ketchikan, AK 99901 Senator Frank H. MurKowski Federal Suilding, EoA 1647 Juneau. AK 99811 Page 2 of 6 Page 2 August 2J, 1982 Logging industrial use of electricity will expand as more logs are brought through Thorne Bay and primary manufacturing of timber products given more emphasis by the State and in- dustry. LPK is currently considering installing a chipper plant here and with its current operations would require 1.98 Mwnr/yr by 1985. A cedar products mill is being considered and, if funded, would begin operations in 1985. The energy requirements are estimated to be .4.3 Mwhr/yr and a ~ growth rate is expected. I.!' low cost energy is available, a full- seal$ lumber mill is expected to be developed by 1992 with a demand of J.J Mwhr/yr and cogeneration facilities available. The fishing industry will develop in Thorne Bay in the form of a cold storage facility, fish processing plants and fish buying stations. The shortage of fresh water in other cities on the island will force any future cold storage facilities :o be b~il~ in Thorne Bay. A shellfish processing plant is being considered and, if funded, will go on line in 1987. This plant will consume .25 Mw~r/yr and crea~e 17 to 20 year-round jobs. There is a potential for a fishing rleet to be based at ~horne 3ay and ~his would require 25 to 30 residences to be b~ilt by 1990. The co~~ercial sector will grow as industry is attracted to the area an.d will include such. establish..-nen~s as motels, a~a·rt­ ments, restauran.ts, lodges, grocery and hardware s~cres. Ser- vice statiocs, enter:ain~~r.: facil:ttes, re?air sho~s and construction comcanies will ex~and to .!'ill ~arkets. These companies are expected to grew· at a 9-l.l% :-a~e and pro•1ide 25~ to JOfo of the jobs in the area, they are expected to cons~-ne 15% to 20% of power generated. There are presently 125 residential users of electricity in Thorne Say and already we have a housing snortage to accomodate all the people that want to move here. The population projec- tions shown in the APA report are erroneous as they show a decrease and then only a 2% increase after 1984. The City's projections are shown in Exhibit A. Under the State land disposal programs, all Alaskans who purchase land under the Homesite laws are required to have a home built within 4 years after purchase. With the parcels already sold, 56 homes must be built by 1a84. Currently, houses are being built en lottery land at a rate of 3 per year, and when the road system is up-graded, this figure w~ll jump to 2C :c 25 per year to ~eet popula~ior. ~emar.ds. ' . Page 4 August 23, 1982 Honorable Donald E. Young House ot Representatives 2331 Rayburn House O!t1ce Bldg. Washington, D.C. 20515 Honorable Ted Stephens United States Senate 127 Russell Office Bldg. Washington, D.C. 20510 Rep. Terry Gardiner P. 0. Box 6092 Ketchikan, AK 99901 Attacnment t; Page 4 of 6 Page 5 of 6 EX.HI3IT A -POPtTLAT!O!.;' GROWTH Thorne Bay's population is projected to increase at a rate or 7 to 8% per year as more people and industry are attracted to the area due to lower cost or living and nearness to the nat- ural resources. The chart and graph below graphically illus- trate this growth. YEAR 1982 POPULATION 425 459 495 535 z.- I 198) 1984 1985 1986 l ea ... , I SDO 578 · I I 624 I l /~ I I //1 1988 1989 1990 1991 1992 1993 728 786 849 990 1994 1070 1995 1155 1996 1248 1997 1998 1348 1456 1999 1572 2ooo lo9e 2001 1834 1 i I j -· ' ~ ~s I ~ c I ~ 0 ' I ' 7 I ' I I I I I I I I ' j I ' I I ' I I I I I I I I / v Page 6 of 6 . .. EXHIBIT B-ENERGY CONSID-t?TION, THOR.~E 5AY Energy con~umpt1on is projected to increase at a rate of ~ per year as industrial, commercial and residential growth occurs. YEAR M'WHR/YR I~ 1982 2. 6J 1983 2.79 "- 1984 2.96 9 - 1985 J.10 1986 .,._ I J.J2 l98i 3.52 / I L ' ... 1988 J.7J 1989 ., a c: .J. , .., 1990 4.19 1991 4.40 1992 4. 70 1993 5.00 ~ I I 1/ ~ I I / ~ I ~Y ',/" ~ I ~ ~I ! l I I \&II I I Q I I I ,3..o .... VI ' I I I I I I I z.._ i i s I 1994 5.29 I· I 1995 5. 61 1996 5.95 . -J"i9o ,.,~ ri,, 19ft~. 1916 t9G' 11 'fZ. 19'!'r mz. 1997 6.JO 1998 6. 68 1999 i.08 2000 7.50 2001 7.96 / / I I I I .ll::~