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Southern Intertie report 10-2002
~ % Joe Griffith POWERING ALASKA’S FUTURE General Manager . - WN) Wedieasta: EGEWWE oF. 7 OCT 24 2002 3) Sheones AIDEA/AEA October 25, 2002 Mr. James McMillan Acting Executive Director Alaska Industrial Development and Export Authority 813 W. Northern Lights Boulevard Anchorage, Alaska 99503-6690 Subject: Southern Intertie Monthly Report for October 2002 W.0.#E9590081 Dear Mr. McMillan: Enclosed is 1 (one) copy of the Southern Intertie Report for October 2002. If there are any questions, please contact Dora Gropp, (907) 762-4626. Enclosures: 1 (one) copy of Southern Intertie Monthly Report Cc: Lee Thibert Carol Johnson Mike Cunningham Don Edwards Alice Mullins W.0.#E9590081, Sec., 2.1.3 RF CHUGA<2:: ——— CHUGA<.; POWERING ALASKA'S FUTURE CHUGACH ELECTRIC ASSOCIATION, INC. - Anchorage, Alaska SOUTHERN INTERTIE Phase IC - EIS MONTHLY REPORT For OCTOBER 2002 5601 Minnesota Drive / 99518 P.O. Box 196300 Anchorage, Alaska 99519-6300 TABLE OF CONTENTS I. SUMMARY Il. FINANCIAL 1 Summary 2: Activity Summary of September 2002 3 Transactions, Inception through September 2002 4. Bank Statement of September 2002 5; Section II-A, Southern Intertie Transactions Allocations Ill. SCHEDULE 1. Project Schedule IV. ITEMS FOR APPROVAL None. V. ITEMS FOR DISCUSSION None. Vi. ITEMS FOR INFORMATION 1. POWER Engineers’ Monthly Report dated October 16, 2002 2. RUS Record of Decision dated October 2, 2002 |. SUMMARY We have received the RUS Record of Decision, which agrees with the USFWS decision and prefers the TESORO Route for the project. The COE’s Record of Decision is still expected to be available by the ANILCA regulation prescribed deadline of November 12, 2002. We expect the ROD to agree with the findings of the USFWS/KNWR and RUS. Once alt RODs are available, we will mail them to all recipients of the DEIS and FEIS. On October 10, 2002 Chugach’s Project Manager, Dora Gropp, made a status presentation to AIDEA’s Board of Directors which was well received. AIDEA requested that a schedule for design and construction be prepared and presented as soon as feasible. Expenditures for Phase IC (EIS) of the project stand as follows: POWER DESCRIPTION ENGINEERS COE/USFWS/RUS | CHUGACH TOTAL ORIGINAL BUDGET $389,547 $160,000 $100,000 $649,547 LLOCATED ONTINGENCY $0 $0 $0 $0 [TOTAL $389,547 $160,000 $100,000 $649,547 AMENDMENTS $1,501,026 $50,000 $150,000 | $1,701,026 [TOTAL COMMITMENT | $1,890,573 $210,000 $250,000 | $2,350,573 SPENT TO DATE $1,722,814 $187,190 $182,184 | $2,092,189 PERCENT OF TOTAL 91% 89% 73% 89% Total Project expenditures as of October 10, 2002 stand at $7,163,628. Il. = FINANCIAL Summary Activity Summary of September 2002 Transactions, Inception through September 2002 Bank Statement of September 2002 Section Il-A, Southern Intertie Transactions Allocations oe ON) = CHUGACH ELECTRIC ASSOCIATION, INC. Anchorage, Alaska 10/08/02 TO: Dora Gropp - Manager, Transmission & Special Projects FROM: Marina McCoy-Casey, Plant Accountant SUBJECT: E9590081 - Southern Intertie Route Selection Study You had previously requested establishment of this work order to study route selection for the Southern Intertie for the Intertie Participants Group. The Association will be reimbursed for charges to this work order. The following charges occurred during September 2002. Direct Labor Indirect Labor Power Engineers Invoice #96429 Dora Gropp Business expense 9/18/02 Sub-Total General, Administrative & Construction Overhead (0.5%) Total Charges Costs are allocated as follows: Grant through AIDEA - 75% $21,224.66 Chugach Electric - 8.8075% $2,492.48 City of Seward - 0.4195% $118.72 GVEA - 5.8587% $1,657.99 HEA - 3.3795% $956.38 AML&P - 6.5348% $1,849.32 Please review the attached backup and indicate your concurrence below if you are in agreement that these charges are correct for this work order and time period. As per your request, I will keep the original in the work order file. Concur: mmce Attachments lt ~OF ~ 02 Date 1,286.82 671.13 26,191.80 9.00 28,158.75 $140.79 $28,299.54 $28,299.54 September 2002 Chugach Electric Association, Inc. Southern Intertie Activity Summary Beginning Grant Chugach Ending Bank Funds Interest Invoices Bank Year Balance Received Earned Paid Balance 1996 0.00 2,771,277.00 40,361.59 (1,440,252.89) 1,371,385.70 1997 1,371,385.70 1,346,934.44 67,734.52 (2,421,276.94) 364,777.72 1998 364,777.72 525,214.00 19,424.02 (732,050.23) 177,365.51 1999 177,365.51 985,191.00 19,246.30 (643,398.53) 538,404.28 2000 538,404.28 271,383.56 31,904.14 (462,844.32) 378,847.66 2001 378,847.66 787,500.00 15,904.91 (664,381.33) 517,871.24 2002* 517,871.24 525,000.00 8,307.80 (463,936.24) 587,242.80 Total 7,212,500.00 202,883.28 (6,828,140.48) * Through September 2002 bank statement (does not include Chugach invoices for charges incurred in September 2002) Southern Intertie AIDEA mtg 10/8/2002 UGACH ELECTRIC ASSOCIATION, INC. ‘thern Intertie Transactions Allocations 2ption Through September 30, 2002 YEA Grant YEA Grant 4 vard EA A (L&P 100% 75% 8.8075% 0.4195% 5.8587% 3.3795% 6.5348% Inception through Year to Date Month 12/31/2000 Through Total Through Ended Inception 5/1/2001 9/1/2002 9/30/2002__ Through 09/30/02 5,747,986 .66 70,768.97 5,900,000.00 - 5,900,000.00 - 955,300.40 21,224.66 976,525.06 - 112,184.10 2,492.48 114,676.58 - 5,343.32 118.72 5,462.04 - 74,624.25 1,657.99 76,282.24 - 43,045.84 956.38 44,002.22 83,235.95 1,849.32 85,085.27 $ 5,747,986.66 $_7,173,733.86 $ 28,299.54 $ 7,202,033.41 —— 10/8/2002 21,224.66 7,074.89 28,299.54 01-02Sinterti CHUGACH ELECTRIC ASSOCIATION, INC. Southern Intertie Transactions Inception Through September 2002 Project Expenditures Year to Date Month Inception Through Ended Inception Through 12/31/00 9/1/2002 09/30/2002 Through 09/30/2002 Direct Labor $190,549.23 $36,003.89 $1,286.82 $227,839.94 Indirect Labor 75,871.61 18,113.48 671.13 94,656.22 Power Engineers 5,060,117.80 1,278,525.97 26,191.80 6,364,835.57 Miscellaneous 392,851.08 86,010.57 9.00 478,870.65, Total $5,719,389.72 $1,418,653.91 $28,158.75 $7,166,202.37 Grant Fund Expenditures Year to Date Month Inception Through Ended Inception Through 12/31/00 9/1/2002 09/30/2002 Through 09/30/2002 Direct Charges that Chugach has been Reimbursed for $ 5,719,389.71 $ 1,418,653.91 $ 28,158.75 $ 7,166,202.37 Plus General, Administrative & Construction Overhead $ 28,596.95 _$ 7,093.28 $ 140.79 $ 35,831.02 Total Amounts Paid to Chugach $ 5,747,986.66 $ 1,425,747.19_ $ 28,299.54 $ 7,202,033.41 10/8/2002 01-02Sinterti Invoice Month Date Incurred Costs OH Total Dec-95 Jun-Oct 95 22,614.00 113.07 22,727.07 Jan-96 0.00 0.00 0.00 Feb-96 Nov-Dec 95 176,265.61 881.33 177,146.94 Mar-96 Jan-96 7,660.92 38.30 7,699.22 Apr-96 Feb-96 251,912.29 1,259.56 253,171.85 May-96 Mar-96 172,070.45 860.35 172,930.80 Jun-96 Apr-96 127,113.82 635.57 127,749.39 Jun-96 May-96 35,628.41 178.14 35,806.55 Aug-96 Jun-96 40,919.00 204.60 41,123.60 Sep-96 Jul-96 57,116.72 285.58 57,402.30 Oct-96 Aug-96 168,312.54 841.56 169,154.10 Oct-96 Sep-96 202,010.97 1,010.05 203,021.02 Dec-96 Oct-96 171,462.74 857.31 172,320.05 Life to Date 1,433,087.47 7,165.42 1,440,252.89 Jan-97 Nov-96 234,735.50 1,173.68 235,909.18 Feb-97 Dec-96 306,667.10 1,533.34 308,200.44 Mar-97 Jan-97 5,045.85 25.23 5,071.08 Apr-97 Feb-97 124,380.57 621.90 125,002.47 May-97 Mar-97 177,117.40 885.59 178,002.99 Jun-97 Apr-97 165,814.35 829.07 166,643.42 Jul-97 May-97 158,762.80 793.81 159,556.61 Aug-97 Jun-97 158,786.12 793.93 159,580.05 Aug-97 Jul-97 154,159.15 770.80 154,929.95 Sep-97 Aug-97 243,365.76 1,216.83 244,582.59 Oct-97 Sep-97 193,127.79 965.64 194,093.43 Nov-97 Oct-97 258,833.19 1,294.17 260,127.36 Dec-97 Nov-97 228,435.19 1,142.18 229,577.37 Year to Date 2,409,230.77 6.94 Life to Date 3,842,318.24 19,211.59 3,861,529.83 Jan-98 0.00 0.00 0.00 Feb-98 Dec-97 153,179.64 765.90 153,945.54 Mar-98 0.00 0.00 0.00 Apr-98 Jan-98 39,750.15 198.75 39,948.90 Apr-98 Feb-98 49,887.09 249.44 50,136.53 May-98 Mar-98 64,102.85 320.51 64,423.36 Jun-98 Apr-98, 7,283.97 36.42 7,320.39 Jul-98 May-98 173,312.97 866.56 174,179.53 Aug-98 Jun-98 59,362.04 296.81 59,658.85 Sep-98 Jul-98 38,793.39 193.97 38,987.36 Oct-98 Aug-98 123,711.01 618.56 124,329.57 Nov-98 Sep-98 19,025.07 95.13 19,120.20 Dec-98 0.00 0.00 0.00 Year to Date 728,408.18 3,642.05 732,050.23 Life to Date 4,570,726.42 22,853.64 06 Jan-99 0.00 0.00 0.00 Feb-99 Oct-98 4,729.98 23.65 4,753.63 Nov-98 2,668.64 13.34 2,681.98 Dec-98 63,600.94 318.00 63,918.94 =e USFS Refund (27,159.93) 0.00 (27,159.93) Mar-99 Jan-99 55,203.86 276.02 55,479.88 Apr-99 Feb & Mar 99 133,963.88 669.82 134,633.70 May-99 0.00 0.00 0.00 Jun-99 Apr & May 99 175,367.11 876.83 176,243.94 Jul-99 Jun-99 129,717.72 648.59 130,366.31 Aug-99 Jul-99 62,556.06 312.78 62,868.84 Sep-99 Aug-99 9,366.00 46.83 9,412.83 Oct-99 Sep-99 12,455.30 62.28 12,517.58 Nov-99 Oct-99 9,854.56 49.27 9,903.83 Dec-99 Nov-99 7,738.31 38.69 7,777.00 Year to Date Life to Date 640,062.43 3,210,788.85 26,189.74 3,336.10 643,398.53 a es 5,236,978.59 Inception-to-Date Charges 22,727.07 22,727.07 199,874.01 207,573.23 460,745.08 633,675.88 761,425.27 797,231.82 838,355.42 895,757.72 1,064,911.82 1,267,932.84 1,440,252.89 1,676,162.07 1,984,362.51 1,989,433.59 2,114,436.06 2,292,439.05 2,459,082.47 2,618,639.08 2,778,219.13 2,933,149.08 3,177,731.67 3,371,825.10 3,631,952.46 3,861,529.83 3,861,529.83 4,015,475.37 4,015,475.37 4,055,424.27 4,105,560.80 4,169,984.16 4,177,304.55 4,351,484,08 4,411,142.93 4,450,130.29 4,574,459.86 4,593,580.06 4,593,580.06 4,593,580.06 4,598,333.69 4,601,015.67 4,664,934.61 4,637,774.68 4,693,254.56 4,827,888.26 4,827,888.26 5,004,132.20 5,134,498.51 5,197,367.35 5,206,780.18 5,219,297.76 5,229,201.59 5,236,978.59 01-02Sinterti Invoice Month Inception-to-Date Date Incurred Costs OH Total Charges Jan-00 Dec-99 13,496.23 67.48 13,563.71 5,250,542.30 Feb-00 Jan-00 3,892.65 19.46 3,912.11 5,254,454.41 Mar-00 Feb-00 9,362.97 46.81 9,409.78 5,263,864.19 Apr-00 Mar-00 41,813.83 209.07 42,022.90 5,305,887.09 May-00 Apr-00 20,419.98 102.10 20,522.08 5,326,409.17 Jun-00 May-00 58,113.81 290.57 58,404.38 5,384,813.55 Jul-00 Jun-00 22,827.27 114.14 22,941.41 5,407,754.96 Aug-00 Jul-00 147,084.41 735.42 147,819.83 5,555,574.79 Sep-00 Aug-00 114,403.32 572.02 114,975.34 5,670,550.13 Oct-00 Sep-00 17,513.29 87.57 17,600.86 5,688,150.99 Nov-00 Oct-00 7,908.09 39.54 7,947.63 5,696,098.62 Dec-00 Nov-00. 3,705.76 18.53 3,724.29 5,699,822.91 Year to Date 460,541.61 302.71 462,844.32 Life to Date 5,671,330.46 28,492.45 5,699,822.91 Invoice Month Inception-to-Date Date Incurred Costs OH Total Charges Jan-01 Dec-00 20,899.33 104.50 21,003.83 5,720,826.74 Feb-01 Jan-O1 4,043.31 20.22 4,063.53 5,724,890.27 Mar-01 Feb-01 3,571.96 17.86 3,589.82 5,728,480.09 Apr-01 Mar-01 59,726.05 298.63 60,024.68 5,788,504.77 May-01 Apr-01 3,075.56 15.38 3,090.94 5,791,595.71 Jun-01 May-01 136,597.44 682.99 137,280.43 5,928,876.14 Jul-01 Jun-01 114,465.30 572.33 115,037.63 6,043,913.77 Aug-01 Jul-01 103,783.27 518.92 104,302.19 6,148,215.96 Sep-01 Aug-01 125,054.23 625.27 125,679.50 6,273,895.46 Oct-01 Sep-O1 58,546.92 292.73 58,839.65 6,332,735.11 Nov-01 Oct-01 139,311.39 696.56 140,007.95 6,472,743.06 Dec-01 Nov-01 54,974.35 274.87 55,249.22 6,527,992.28 Year to Date 824,049.11 4,120.26 828,169.37 Life to Date oe USFS Reimbursement is not included in total Grant Fund Expenditures portion of Transaction Spreadsheet. Invoice Month Inception-to-Date Date Incurred Costs OH Total Charges Jan-02 Dec-01 8,306.28 41.53 8,347.81 6,536,340.09 Feb-02 Jan-02 89,287.79 446.44 89,734.23 6,626,074.32 Mar-02 Feb-02 60,933.28 304.67 61,237.95 6,687,312.27 Apr-02 Mar-02 93,531.13 467.66 93,998.79 6,781,311.06 May-02 Apr-02 109,430.46 547.15 109,977.61 6,891,288.67 Jun-02 May-02 85,140.34 425.70 85,566.04 6,976,854.71 Jul-02 Jun-02 55,552.63 277.76 55,830.39 7,032,685.10 Aug-02 Jul-02 77,378.70 386.89 77,765.59 7,110,450.69 Sep-02 Aug-02 35,943.52 179.72 36,123.24 7,146,573.93 Oct-02 Sep-02 28,158.75 140.79 28,299.54 7,174,873.47 Nov-02 Oct-02 0.00 0.00 0.00 7,174,873.47 Dec-02 Nov-02 0.00 0.00 0.00 7,174,873.47 Year to Date 643,662.88 3,218.31 Life to Date 139,042.45 35,831.02 7,174, Ldutad USFS Reimbursement is not included in total Grant Fund Expenditures portion of Transaction Spreadsheet. 01-02Sinterti Southern Intertie Grant Fund Bank Account Activity Summary September 2002 August Ending Balance Forward Total Deposits Total Withdrawals Interest Earned Balance September 30, 2002 Southern intertie bank activity $613,468.30 $0.00 ($27,092.43) $866.93 $587,242.80 10/8/2002 000 01 00 PAGE: i DATE: 09/30/02 ACCOUNT: 41100033 eae eT Sern ALASKA Dae | UadasbalosaDadecssl Laval bocel falls Mcelsadbalelsl CHUGACH ELECTRIC ASSOC INC <T> 30 PO BOX 196300 0 ANCHORAGE AK 99519-6300 0 BRANCH TELEPHONE : 907-777-4362 BOX 100720 HORAGE AK 99510-0720 NON FEDERALLY INSURED REPURCHASE AGREEMENT ACCOUNT 41100033 LAST STATEMENT 08/30/02 613,468.30 20 CREDITS 866.93 1 DEBITS 27,092.43 THIS STATEMENT 09/30/02 587,242.80 - - - - - - - - OTHER CREDITS - - - - - - - - - CRIPTION DATE AMOUNT EREST 09/03 114.66 EREST 09/04 28.39 EREST 09/05 28.39 EREST 09/06 28.40 EREST 09/09 85.81 EREST 09/10 29.02 EREST 09/11 29.02 EREST 09/12 27.74 'EREST 09/13 27.75 ‘EREST 09/16 83.50 'EREST 09/17 28.01 ‘EREST 09/18 28.01 ‘EREST 09/19 28.01 ‘EREST 09/20 28.01 ‘EREST 09/23 83.19 ‘EREST 09/24 27 sad, ’7EREST 09/25 27.37 ‘7EREST 09/26 27 kd ‘7EREST 09/27 27icad 7EREST 09/30 80.34 *** CONTINUED * * * tO0Kcnoumc LENDER 000 01 00 PAGE: 2 A DATE: 09/30/02 ACCOUNT: 41100033 AEE Beil ALASKA CHUGACH ELECTRIC ASSOC INC NON FEDERALLY INSURED REPURCHASE AGREEMENT ACCOUNT 41100033 - - - - - - - - - OTHER DEBITS - - - - - - - - - tRIPTION DATE AMOUNT ISFER TO BUSINESS ACCOUNT 1106061 09/12 27,092.43 ------+----INTEREST--------- - {AGE LEDGER BALANCE: Sy aye Waal INTEREST EARNED: 866.93 2AGE AVAILABLE BALANCE: 597,271.61 DAYS IN PERIOD: 31 IREST PAID THIS PERIOD: 866.93 ANNUAL PERCENTAGE YIELD EARNED: Lov2s TREST PAID 2002: 8,307 .'80 - - - - - - - - DAILY BALANCE - - ee er eee isa alias ohesle lel at a BALANCE DALE 6 ac wine «© . -.-BALANCE DAT Biac es visieie = = = BALANCE 3 613,582.96 09/12 586,747.30 09/23 S87 7053378 4 61.3, 61.17.55 09/13 586,775.05 09/24 587,080.95 5 613,639.74 09/16 586,858.55 09/25 587,208 a2 6 613,668.14 09/17 586,886.56 09/26 587 35.29 19 6213.7753.495 09/18 586,914.57 09/27 587,162.46 LO GLs77 82597 09/19 586,942.58 09/30 587,242.80 Ea 613,811.99 09/20 586,970.59 - END OF STATEMENT - con nousme LENDER SECTION II-A SOUTHERN INTERTIE TRANSACTIONS ALLOCATIONS CHUGACH ELECTRIC ASSOCIATION, INC. Anchorage, Alaska 10/08/02 TO: Dora Gropp, Manager, Transmission & Special Projects FROM: Marina McCoy-Casey, Plant Accountant SUBJECT: Invoice for Your Review - Southern Intertie Attached is a draft invoice and and supporting documents for the billing of City of Seward's supporting documents for share of allocated costs for the Southern Intertie, Work Order E9590081. Work Order: E9590081 Amount of Current Invoice: $118.72 For Time Period: 09/01/02 to 09/30/02 Please review the entire invoice package and indicate your concurrence below, that these charges are correct for this work order and time period. If you want to delete or change the invoice in any manner, please provide appropriate documentation. Return the invoice package to me by : 10/15/02 Concur: Attachments Chugach Draft Invoice SEWARD 0902 Dave Calvert City of Seward P. O. Box 167 Seward, Alaska 99664 Past Due: 7-Nov-02 Date Invoice Acct. No. Folio 10/08/02 Draft 14300 000 00 2101 To invoice you for City of Seward's share of allocated costs for the Souther Intertie, Work Order E9590081, for the period September 1, 2002 to September 30, 2002. Direct Labor Indirect Labor Power Engineers Invoice #96429 Dora Gropp Business expense 9/18/02 Sub-Total General, Administrative & Construction Overhead (0.5%) Total Charges City of Seward's Share Amount Due From City of Seward Attachments To ensure proper credit, please return a copy of this invoice with your payment. 18620 000 15 2101/ E9590081 (SWD) maint&svc.xls 0.4195 % 1,286.82 671.13 26,191.80 9.00 28,158.75 140.79 28,299.54 118.72 CHUGACH ELECTRIC ASSOCIATION, INC. Anchorage, Alaska 10/08/02 TO: Dora Gropp, Manager, Transmission & Special Projects FROM: Marina McCoy-Casey, Plant Accountant SUBJECT: Invoice for Your Review - Southern Intertie Attached is a draft invoice and and supporting documents for the billing of Homer Electric's supporting documents for share of allocated costs for the Southern Intertie, Work Order E9590081. Work Order: E9590081 Amount of Current Invoice: $956.38 For Time Period: 09/01/02 to 09/30/02 Please review the entire invoice package and indicate your concurrence below, that these charges are correct for this work order and time period. If you want to delete or change the invoice in any manner, please provide appropriate documentation. Return the invoice package to me by: 10/15/02 Concur: Caw Aes Ley i Cf OF4Y? Signature Date Attachments Chugach Draft Invoice GVEA 0902 Steve Haagenster Date 10/08/02 Golden Valley Electric Association P. O. Box 71249 Invoice Draft Fairbanks, Alaska 99707 Acct. No. 14300 000 00 2101 Past Due: 7-Nov-02 Folio To invoice you for GVEA's share of allocated costs for the Southem Intertie, Work Order E9590081, for the period September 1, 2002 to September 30, 2002. Direct Labor 1,286.82 Indirect Labor 671.13 Power Engineers Invoice #96429 26,191.80 Dora Gropp Business expense 9/18/02 9.00 Sub-Total 28,158.75 General, Administrative & Construction Overhead (0.5%) $ 140.79 Total Charges $ 28,299.54 GVEA's Share 5.8587 % Amount Due From GVEA $ 1,657.99 Attachments To ensure proper credit, please return a copy of this invoice with your payment. 18620 000 15 2101/ E9590081 (GVEA) maint&svc.xls CHUGACH ELECTRIC ASSOCIATION, INC. Anchorage, Alaska 10/08/02 TO: Dora Gropp, Manager, Transmission & Special Projects FROM: Marina McCoy-Casey, Plant Accountant SUBJECT: Invoice for Your Review - Southern Intertie Attached is a draft invoice and and supporting documents for the billing of Golden Valley Electric Association's supporting documents for share of allocated costs for the Southern Intertie, Work Order E9590081. Work Order: E9590081 Amount of Current Invoice: $1,657.99 For Time Period: 09/01/02 to 09/30/02 Please review the entire invoice package and indicate your concurrence below, that these charges are correct for this work order and time period. If you want to delete or change the invoice in any manner, please provide appropriate documentation. Return the invoice package to me by: 10/15/02 Concur: bh yn Je 8 4 tule of02 ate Signature Attachments Don Stead Homer Electric Association 3977 Lake Street Homer, Alaska 99603 Past Due: 7-Nov-02 Chugach Draft Invoice HEA 0902 To invoice you for HEA's share of allocated costs for the Southern Interte, Work Order E9590081, for the period September 1, 2002 to September 30, 2002. Direct Labor Indirect Labor Power Engineers Invoice #96429 Dora Gropp Business expense 9/18/02 Sub-Total General, Administrative & Construction Overhead (0.5%) Total Charges HEA's Share Amount Due From HEA Attachments Date 10/08/02 Invoice Draft Acct. No. 14300 000 00 2101 Folio 1,286.82 671.13 26,191.80 9.00 28,158.75 $ 140.79 $28,299.54 3.3795 % $ 956.38 To ensure proper credit, please retum a copy of this invoice with your payment. 18620 000 15 2101/ E9590081 (HEA) maint&svc.xls CHUGACH ELECTRIC ASSOCIATION, INC. Anchorage, Alaska 10/08/02 oO: Dora Gropp, Manager, Transmission & Special Projects FROM: Marina McCoy-Casey, Plant Accountant SUBJECT: Invoice for Your Review - Southern Intertie Attached is a draft invoice and and supporting documents for the billing of Anchorage Municipal Light and Power's supporting documents for share of allocated costs for the Southern Intertie, Work Order E9590081. Work Order: E9590081 Amount of Current Invoice: $1,849.32 For Time Period: 09/01/02 to 09/30/02 Please review the entire invoice package and indicate your concurrence below, that these charges are correct for this work order and time period. If you want to delete or change the invoice in any manner, please provide appropriate documentation. Return the invoice package to me by : 10/15/02 Concur: Cov (A KR. pf B/DS/C 2. Signatur ate Attachments Chugach Draft Invoice AML&P 0902 Dan Helmick Date 10/08/02 Anchorage Municipal Light & Power 1200 East First Avenue Invoice Draft Anchorage, Alaska 99501-1685 Acct. No. 14300 000 00 2101 Past Due: 7-Nov-02 Folio To invoice you for AML&P's share of allocated costs for the Southern Intertie, Work Order E9590081, for the period September 1, 2002 to September 30, 2002. Direct Labor 1,286.82 Indirect Labor 671.13 Power Engineers Invoice #96429 26,191.80 Dora Gropp Business expense 9/18/02 9.00 Sub-Total 28,158.75 General, Administrative & Construction Overhead (0.5%) $ 140.79 Total Charges $ 28,299.54 AML&P's Share 6.5348 % Amount Due From AML&P $ 1,849.32 Attachments To ensure proper credit, please return a copy of this invoice with your payment. 18620 000 15 2101/ E9590081 (AML&P) maint&svc.xls Ill. SCHEDULE 1. Project Schedule CHUGACH ELECTRIC ASSOCIATION ANCHORAGE - KENAI INTERTIE Thu 10/17/02 PHASE IC 1995 1996 1997 1998 1999 2000 2001 2002 2 ~ 2003 ID _| Task Name % Comp. [Q2 703 [a4 [ai [a2 J a3 [a4 [ar [a2 [a3 [a4 [ar [a2 [a3 [a4 [ai [a2 [a3 [as [ar [a2 [a3 [as [ai [a2 [a3 [as [ai [a2 [a3] a4 [ai [a2 [a3 [as far 1 |ENVIRONMENTAL & ENGINEERING ST TN A SE SSPE NT: 3 2) |) RECJECTIMANAGENENT 5 | | 3 ROUTE SELECTION STUDIES 100% | 45 SRT ‘90! : ‘ 4 EVAL & PREL.ENGINEERING 100% ani [5 | EIS PREPARATION 97% re | DEIS. 100% 9/28 [7 | FR NOTICE 100% 10/8 8 COMMENT PERIOD 100% : 1015 fad 1216 : 9 PUBLIC HEARING, WASHING 100% 10/30 | 10/30 10 PUBLIC HEARING, ANCHOR 100% 4413 bys : [a1 | PUBLIC HEARING, KENAI 100% sta [4 12 FEIS 100% 13 REVIEW PERIOD FEIS 0% 14 | AGENCIES 98% 15 USFWS 100% 017 16 RUS 100% 10/11 | usrs 100% cred 6: | coe 92% ce va 19 ROD 52% 1 I 14/12 Task Summary a coled Up Progress A Split seieieZaeiss aioe a 6 0'9 Progress Rolled Up Task g g External Tasks zz Rolled Up Split gianna sSNNTATS Milestone a Rolled Up Milestone ©> Project Summary Vy Project: ANCHORAGE - KENAI INTER Date: Thu 10/17/02 1V. ITEMS FOR APPROVAL None. V. ITEMS FOR DISCUSSION None. Vi. ITEMS FOR INFORMATION 1. POWER Engineers’ Monthly Report dated October 16, 2002 2. RUS Record of Decision dated October 2, 2002 ER DOU Ms. Dora Gropp Chugach Electric Association 5601 Minnesota Drive, Building A Anchorage, AK 99518 October 16, 2002 Subject: POWER Project #120376-14 EIS & Preliminary Engineering Chugach Contract No. 10629, Monthly Status Report No. 2 For Period September 15 to October 5, 2002 Dear Dora: This report summarizes the Task 14 activities completed during the reporting period. Reporting Period Overview: e Project coordination activities included progress reporting and telephone conferences. Finalized response to comments and formatting of letters. Developed draft ROD for RUS. Coordinated with USFWS and USACE on decisions. Project team conference call on September 20 to review draft ROD. Revised draft ROD. Prepared final ROD for RUS. Work Planned for Next Reporting Period: e Issue combined RODs pending receipt of USACE document Current Schedule (RUS Schedule - Version 15): Finish Date e RUS and USFWS issue RODs October 4 e RUS Publishes Federal Register Notice of ROD availability October 9 e USACE issues final Section 404(b)(1) Evaluation (tentative) November 12 R ECEIVE D OCT 1 7 2002 LANSMISSION & apECIAL PROJECT HLY 23-643 OWER Engineers, Incorporated Cvrewe EEE 340 Glenbrook Dr. + P.O. Box 1066 Phone (208) 788-3456 ailey, Idaho 83333 Fax (208) 788-2082 Chugach Electric Association October 16, 2002 Page 2 Budget: Task 14 Budget $153,509 Task 14 Billed Through Previous Invoice $ 26,192 Task 14 Billed This Invoice 44,029 Task 14 Billed Subtotal to Date $ 70,221 Task 14 Remaining Project Budget $ 83,288 Total Budget $5,801,767 Total Billed Through Previous Invoice $5,550,039 Total Billed This Invoice $44,029 Total Remaining Project Budget $ 207,699 The above cost summary includes charges for EPG and PEI through October 5, 2002. Dora, should you have any questions about this report or any of the backup, please do not hesitate to contact Mike Walbert or me. Sincerely, POWER Engineers, Inc. “Or “if Randy Pollock, P.E. Project Manager RP/mw Enclosures ce Mike Walbert (POWER HLY) Dusty Liman (POWER HLY) RM/REF 120376-14-55-00-01 HLY 23-643 i 2owew SOUTHERN INTERTIE PROJECT — 120376-14 PROJECT FINANCIAL SUMMARY — OCTOBER, 2002 INVOICE Tasks 1-10 | Task 11 | Task 12 | Task 13 | Task 14 Total Base Not to Exceed | $3,043,423 | N/A N/A N/A N/A $3,043,423 Budget CWG Contract $103,046 N/A N/A N/A N/A $103,046 Amendment No. 4 DFI Contract $45,000 N/A N/A N/A N/A $45,000 Amendment No. 5 DFI Contract $11,400 N/A N/A N/A N/A $11,400 Amendment No. 6 DFI Contract $3,502 N/A N/A N/A N/A $3,502 Amendment No. 7 DFI Contract $89,487 N/A N/A N/A N/A $89,487 Amendment No. 8 Task 5 & 6 $0 N/A N/A N/A N/A $0 Reallocation * L Contract $31,926 N/A N/A N/A N/A $31,926 Amendment No. 9 Contract $118,193 N/A N/A N/A N/A $118,193 Amendment No. 11 Contract 820, $465,215 N/A N/A N/A N/A $465,215 Amendment No. | Contract 820 $389,547 N/A N/A N/A N/A $389,547 Amendment No. 2 Contract No. 7614 N/A $731,264 | N/A N/A N/A $731,264 Contract No. 7614 | N/A N/A $129,673 | N/A N/A $129,673 Amendment No. 1 Contract No. 10629 | N/A N/A N/A $486,580 | N/A $486,580 Contract No. 10629 | N/A N/A N/A N/A $153,509 $153,509 Amendment No. | Total Not to $4,300,741 | $731,264 | $129,673 | $486,580 | $153,509 $5,801,767 Exceed Budget Actual Budget $4,249,250 | $715,413 | $104,832 | $454,352 | $26,192 $5,550,039 Expended Through Previous Invoice | Current Invoice $0 $0 $0* $0 $44,029 $44,029 Amount Actual Budget $4,249,250 | $715,413 | $104,832 | $454,352 | $70,221 $5,594,068 Expended Through Current Invoice Remaining $51,491 $15,851 $24,841 | $32,228 | $83,288 $207,699 Task 5 budget amount reflects the addition of Contract No. 820, Amendment No. | funds. Task 10 budget amount reflects the addition of Contract No. 820, Amendment No. 2 funds. Task 11 budget amount reflects the addition of Contract No. 7614 funds. Task 12 budget amount reflects the addition of Contract No. 7614, Amendment No. | funds. Task 13 budget amount reflects the addition of Contract 10629 funds. Task 14 budget amount reflects the addition of Contract 10629 , Amendment No. 1 funds. HLY 23-643 10/16/2002 SOUTHERN INTERTIE PROJECT THROUGH PERIOD ENDING: awe PROJECT SUMMARY REPORT = 3RD QUARTER 2002 | __-4TH QUARTER 2002 K MONTH| _JUL DEC PM & Monthly Reporting Actual Remaining Task Budget Develop and Format Responses to FEIS Comments Actual % Work Completed 0% — 20% 50%; | Planned % Complete $ (to date) 0%, 0% «25% (50% 75% ~~—- 100% Actual % Expended $ (to date) 0% 0% 20% 26% Planned $ (this period) $0, $0 $2,044] $2,044 $2,044 $2,044 Actual $ Expended (this period) $0 $0 $1,659 $435 Planned $ (to date) $0 | $0 $2,044| $4,088 $6,132 $8,176 Actual $ Expended (to date) $0 $0 $1,659 $2,094 Contract No. 10629, Amend. 1 $8,176 | $8,176 $8,176 | $8,176 $8,176 $8,176 + Actual % Work Completed 0% 0% | 23% 100% | Planned % Complete $ (to date) 0% | 0% | _ 33% 67%: 100% | 100% Actual % Expended $ (to date) 0% 0% 20% 54% Planned $ (this period) $0 . $0 $24,700 | $24,700 $24,702 | $0 | Actual $ Expended (this period) $0 $0 $14,609 | $25,271 __ Planned $ (to date) _ $0 $0 $24,700 | $49,400 $74,102 $74,102 Actual $ Expended (to date) $0 | $0 $14,609 | $39,880 Contract No. 10629, Amend. 1 | $74,102 $74,102 $74,102 | $74,102 $74,102 $74,102 Actual Remaining Task Budget $74,102 $74,102 | $59,493 | $34,222 Assist in Development of the RUS ROD August 2002, Contract 10629 Amendment No. 1 HLY 23-643a 14 _ _ Actual % Work Completed _ 0% 0% 42% 100% _ a2 Planned % Complete $ (to date) 0%, 0% 33% 67%) 100%) 100% Actual % Expended $ (to date) 0% 0% 35% 101%. _ Planned $ (this period) $0 $o $9,328 | $9,328 $9,328, $0 Actual $ Expended (this period) $0 $0 $9,924 | $18,323 __Planned$(todate) «| ss $0.~S—«S.~S«$9,328 | $18,656 $27,984 $27,984 Actual $ Expended (to date) $0 $0 $9,924 | $28,247 Contract No. 10629, Amend. 1 $27,984 $27,984 $27,984 | $27,984 $27,984 $27,984 Actual Remaining Task Budget_| $27,984 $27,984 $18,060 ($263) 10/16/2002 SOUTHERN INTERTIE PROJECT THROUGH PERIOD ENDING: Page 2 of 2 PROJECT SUMMARY REPORT oe 38RD QUARTER 2002 4TH QUARTER 2002 iK MONTH| _ JUL AUG SEP OCT NOV DEC 3 |Prepare and Distribute Composite ROD Document | Actual % Work Completed ao rcs No neem I fn 0%) | | Planned % Complete $ (to date) 0%, 0% 0%! 0% = 50%, ~— 100% Actual % Expended $ (to date) 0% 0% 0% 0% Planned $ (this period) $o $0 ~~ go} $0 $21,624 $21,624 Actual $ Expended (this period) $0 $0 $0 $0 ___ Planned $ (to date) _ $0, $0. $0] $0 $21,624 $43,248 | Actual $ Expended (to date) $0 $0 $0 $0 Contract No. 10629, Amend.1 | $43,248 $43,248 $43,248 | $43,248 $43,248 $43,248 Actual Remaining Task k Budget $43,248 $43,248 $43,248 | $43,248 TASK 14 TOTAL Actual % Work Completed 0% 0% 20% 60% | | ‘Planned % Complete. $ (to. date) 0% 0% 23%) 47% | (85% 100% Actual % Expended $ (to date) 0% 0%, 17% 46% Planned $ (this period) — $0° $0 $36,072 | $36,072 | $57,698 $23,668 Actual $ Expended (this period) — $0 $0 $26,192 | $44,029 | | | Planned $ (to date) $0. $0 $36,072 | $72,144 $129,842 $153,510 Actual $ Expended (to date) $0 $0. $26,192 | $70,221 Contract No. 10629, Amend. 1 [$153,510 $153,510 $153,510 [$153,510 $153,510 $153,510 ~ Actual Remaining Task Budget_ [$153,510 $153,510 $127,318 | $83,289 August 2002, Contract 10629 Amendment No. 1 HLY 23-643a 14 RECEIVED Mees beak & OCT - 8 2002 TRANSMISSION & SPECIAL PROJECT RECORD OF DECISION for the Southern Intertie Project Kenai Peninsula to Anchorage, Alaska Rural Utilities Service, U.S. Department of Agriculture October 2002 TABLE OF CONTENTS Ts Ventre tn ct On ese vacescececscescec ness nyc ons onces-sovecezesesqosecsieoessaeasuececneasoezs eer sesosnssstsassasectzc setsesstsees Il. Decisions @.. ‘Rural Utilities Service esccccsxcccex cansceevcevssecansvescesusesetecscsssecsqcerncecroossoesectevaesnesovewaceess b. US. Fish & Wildlife Service.... c. U.S. Army Corps of Engineers . I. Description of Project ...........+. a. Project Need b. ProjectiFacilities. .....<<.sccssesseseses<0 IV. Range of Alternatives Considered . a. Alternatives to a new transmission line eliminated SesesSccreactgetarscessurveewsecosessesesectezs b. Alternative transmission systems eliminated .................::ssscsscesseeeseescessceeseeseeseenees c. Alternative transmission routes eliminated... G; ‘No-Action altermative:............-.....-c-c2c--+.so-cccovsonseoseenesooneennenies Sdnsiusssssessnossustcsessssesses V Environmentally Preferred:-Altermative:.2...........--....----.-.--0-------c-oseoenvnreso05snnsess5es07900503 VI. Mitigation Plan. es VIL. Scopmg, Constltation Coordimata om -rxvis.5o2.5c1.2c0.0.s02n0cesacacares-cncvesecersecsasotenanenestcatse0ees WIE Bindings) Requited! Dy Other Tews errr exces recerszcos cussccevercsacccweswcszsssesecssececeecesennsneaerwcsers a. Endangered Species Act ..... ; b. Clean Water Act........ ic, National Historic Preservation sACt..o.csccc.c-csscccececaseeceezsececncsscosscscessvsssorsceesss=-cccecess d. Executive Order 12898 (Environmental Justice). — e. Required Permits, Licenses, Grants or Authorizations..............::0:0:0+0++ IX. Administrative Review, Related Authorizing Actions, and Contact Person. ................ OWMWANAIAIANNIAUNA KEEN NHHY Southern Intertie Project : Record of Decision l October 2002 I. INTRODUCTION The following Record of Decision (ROD) has been prepared in accordance with the Rural Utilities Service (RUS) Environmental Policies and Procedures, 7 CFR 1794.63, and the Council on Environmental Quality Regulations, 40 CFR Section 1505.2, for the implementation of the National Environmental Policy Act of 1969 (NEPA). The RUS, an agency of the U.S. Department of Agriculture, served as the lead federal agency and prepared the Environmental Impact Statement (EIS) for the Southern Intertie Project. The U.S. Fish and Wildlife Service (USFWS) and U.S. Army Corps of Engineers (USACE) participated as cooperating agencies in the review of the environmental planning process and preparation of the EIS. The Intertie Participants Group (IPG), also referred to as the Applicant, is proposing to construct an electrical transmission line between the Kenai Peninsula and Anchorage in south-central Alaska. This 138kV transmission line, known as the Southern Intertie Project, is proposed as a system improvement project to increase the overall Railbelt electrical system reliability and transfer of energy capabilities between the Kenai Peninsula and Anchorage. Members of the IPG include Golden V alley Electric Association (GVEA), M atanuska E lectric A ssociation (MEA), Chugach Electric Association (CEA), Anchorage Municipal Light and Power (AML&P), Homer Electric Association (HEA), and the City of Seward. The Draft EIS was made available to the U.S. Environmental Protection Agency (EPA) and the general public on October 5, 2001. Notices of availability of the Draft EIS (DEIS) were published in the Federal Register on October 3, 2001 (Volume 66, Number 192, pages 50396 and 59397) by RUS and on October 5, 2001 (Volume 66, Number 194, page 51036) by EPA. The RUS notice requested that written comments be addressed to the RUS contact in Washington, D.C. by December 5, 2002. The formal comment period for the DEIS was extended to accommodate mail screening requirements at the time. The Final EIS (FEIS) was made available to the EPA and the public on July 12, 2002. Notices of availability of the FEIS were published in the Federal Register on July 10, 2002 (Volume 67, Number 132, pages 45701 and 45702) by RUS, and on July 12, 2002 (Volume 67, Number 134, page 46185) by EPA. The wait period on the FEIS ended on August 12, 2002. The Applicant has filed for a right-of-way for the Enstar Route alternative across federal lands on the Kenai National Wildlife Refuge (KNWR), a Conservation System Unit designated under the Alaska National Interest Land Conservation Act (ANILCA). Rights-of-way across Conservation System Units for transportation and utility systems are governed by regulations (43 CFR Part 36) implementing Title XI of ANILCA. The USFWS completed a ROD on September 11, 2002 for the project. The Applicant has also submitted a 404 permit application for the Enstar Route alternative with the USACE. In addition to the rules governed by ANILCA (43 CFR Part 36), the USACE also evaluates 404 permits under the guidance of Section 10 Rivers and Harbors Record of Decision Southern Intertie Project 1 October 2002 Act 1899 (33 U.S.C. 403), Section 404 /Clean Water Act (33 U.S.C. 1344), and Section 404(b)(1) Guidelines of the Clean Water Act (40CFR 230). Il. DECISIONS This ROD documents findings specific to whether the RUS decision will provide financial assistance to participating RUS borrowers. The RUS Assistant Administrator of Electric Programs is the Responsible Official for this decision. The RUS decision is based on a review of the Project’s technical and economic justification, reliability, environmental issues and impacts, and the location in its entirety (federally managed lands and private property). In addition to the RUS decision on financing the project, the USFWS and USACE each had permit applications to review as part of the NEPA process and have prepared separate RODs. Rural Utilities Service The decision of RUS is that the NEPA process is satisfied with respect to a request for financing assistance from Golden Valley Electric Association, an IPG member, for the construction of the Southern Intertie Project from the Kenai Peninsula to Anchorage, Alaska. The construction of the project will be undertaken in accordance with the FEIS. The RUS preferred alternative is the Tesoro Route. This alternative will consist of overhead, underground and submarine c able segments o f 1 38 kilovolt (kV) transmission | ine. The overall length varies from 62 to 63.2 miles depending on which of the three Turnagain Arm crossing alternatives is selected. The Tesoro Route alternative connects the Bernice Lake Substation on the Kenai Peninsula and the Pt. Woronzof Substation in Anchorage. This route begins as-an overhead transmission line at the existing Bernice Lake Substation near Nikiski (Route Option A), and parallels the North Kenai Road to the southern end of Captain Cook State Recreation Area (SRA). Underground cable would parallel the North Kenai Road through the Captain Cook SRA and would also occur where the route is adjacent to two local airstrips along the N orth K enai S pur R oad. T he line would transition back to overhead beyond the northern end on the Captain Cook SRA and would be located in a transportation/utility corridor designated by the Kenai Peninsula Borough (KPB), including segments that parallel the Tesoro pipeline to Pt. Possession. Through coordination with the KPB the route in this location could be modified to parallel newly platted utility rights-of- way. The Tesoro Route would also cross one parcel of Native conveyed lands, near Grey Cliff Lake (less than 1 mile). Section 22(g) of the Alaska Native Claims Settlement Act (ANCSA) permitting and regulatory requirements would apply to these lands. Upon entering the KNWR boundary at Pt. Possession, the route would parallel the existing Tesoro pipeline in a perpetual right-of-way easement that has been reserved by The Conservation Fund through conveyance of the property to the USFWS. The reserved easement includes Record of Decision Southern Intertie Project October 2002 “access for construction and maintenance, for a proposed electric transmission line, known as the Southern Intertie, to be located within Sections 17 and 20, Township 11 North, Range 6 West. This electric transmission line shall be roughly parallel to an existing buried pipeline that crosses the same sections.” (Warranty Deed signed August 23, 2002 between The Conservation Fund and USFWS). Section 22(g) of ANCSA would still apply to these lands. From Pt. Possession, route option B crosses Turnagain Arm by submarine cable via Fire Island to the Pt. Woronzof Substation. The line would transition to overhead in order to cross the island, and then return to submarine cable to connect to the Pt. Woronzof Substation. Route option C would start at Pt. Possession and cross the Turnagain Arm by submarine cable and would connect directly to a landing at the Pt. Woronzof Substation. The routing of the proposed submarine cable would have to avoid the 14 cables that currently terminate at that location. Route option D/N also starts at Pt. Possession but w ould cross T urnagain Arm by submarine cable directly to Pt. Campbell. The transition station has been tentatively located in Kincaid Park. From that location underground cable would parallel the Tesoro pipeline and the relocated Airport Access Road to the Pt. Woronzof Substation. As stated in the FEIS the RUS preferred alternative route between Pt. Possession and Anchorage is Option D/N. This preference is based on economic, technical, and environmental factors. As is shown in Table 2-4 of the FEIS, the submarine cable route between Pt. Possession and Pt Campbell (Option D) is the shortest (13.9 miles), which consequently results in the lowest total life cycle cost. No serious technical issues have been identified with a cable landing at Pt. Campbell as compared to Pt. Woronzof where routing of the proposed cable would have to avoid the 14 cables that currently terminate at that location. Concerns have been raised by agencies and the public about potential impacts from submarine cable installation on Beluga Whales. If the risk of potential impacts is proportional to length, the proposed route contains the least amount of submarine cable and should represent the route with the lowest potential impacts. Modifying or curtailing construction and maintenance activities during calving season and other sensitive periods will further reduce impacts to Beluga Whales. The overland route from Pt. C ampbell to Pt. Woronzof (Option N) is approximately 4 miles. Selective mitigation has been proposed to reduce impacts. Directional boring will insure that the Coastal Trail is not impacted. The transition station will be located so as to minimize impacts to Kincaid Park. Underground construction is proposed for the entire route, which negates the visual impacts associated with above ground structures. Selective right-of-way clearing, using existing access for construction and maintenance, and paralleling existing or planned linear facilities (Tesoro pipeline and airport access road) will further reduce corridor impacts. Coordination with the Municipality of Anchorage and the Airport Authority will determine the exact location of the transition station and underground cable route between Pt. Campbell and the Pt. Woronzof Substation . Southern Intertie Project Record of Decision October 2002 In the event that the Applicant is unable to acquire permits for Route Option D/N, RUS believes that alternative Routes B and C are also environmentally acceptable and may be used bythe Applicant for the routing of the transmission facility across the Tumagain Arm to reach the Pt. Woronzof Substation. The RUS’s decision is based on the following documents: = Southern Intertie Route Selection Study (1996) Update and Reevaluation of the Economic Benefits of the Southern Intertie Project, Final Report (March 1998) Southern Intertie Project Scoping Report (February 1997) Souther Intertie Project Final Environmental Analysis (July 1999) Southern Intertie Project Draft Environmental Impact Statement (October 5, 2001) Southern Intertie Project Final Environmental Impact Statement (July 2, 2002) Comments Received on the Southern Intertie Project Final Environmental Impact Statement (August 2002) U.S. Fish and Wildlife Service The USFWS has denied the application for a right-of-way permit for the Enstar Route alternative on lands within the KNWR. The decision was made in accordance with the requirements of Title XI of ANILCA and the National Wildlife Refuge System Administration Act of 1966 (INWRSAA] [16 U.S.C. 668dd]), as amended. The decision is based on the following findings: (1) there is an economically feasible and prudent alternative to crossing the KNWR; (2) the project would result in significant adverse impacts to the natural and other resources of the KNWR; and (3) the project as proposed would not be compatible with the purposes for which the KNWR was established or the Mission of the National Wildlife Refuge System (see FEIS, Volume I, Appendix A and the ROD signed September 11, 2002). As described in the FEIS, the USFWS has identified the Tesoro Route as the environmentally preferred alternative. U.S. Army Corps of Engineers The USACE conducted a Draft Section 404 (b)(1) Evaluation for the Enstar route (see F EIS, Volume I, Appendix B) in accordance with transportation and utility systems in, across, and access into, Conservation Systems Units in Alaska under ANILCA (43 CFR Part 36). The Draft Section 404 (b)(1) Evaluation indicates that construction of the transmission line along the Tesoro Route alternative (Route Option A) with any of the three Turnagain Arm crossing options (B, C, or D/N) is a less damaging practicable alternative to the Applicant’s Enstar proposal, without significant impacts to aquatic resources. Southern Intertie Project Record of Decision October 2002 iil. DESCRIPTION OF PROJECT Project Need The Project is located within the Railbelt electrical system, a power grid that electrically connects central and south-central Alaska from Homer to Fairbanks. The system allows the six participating utility companies, also referred to as the Railbelt Utilities, to sell and buy power to and from each other, taking advantage of lower costs in other areas, and to provide back-up power to each other. The IPG was formed by the Railbelt Utilities to improve electrical reliability and coordination within the Railbelt by working together to improve the interconnected system through intertie improvements and cooperative energy projects. The Southern Intertie Project is one of these cooperative projects. This Project is needed because the existing Railbelt electrical system is deficient south of Anchorage. The 115kV Quartz Creek transmission line currently provides the sole path for coordinating the operation of generation on the Kenai Peninsula with Anchorage area generation. The line also is used to provide back-up power in the case of outages in the Anchorage area or on the Kenai Peninsula. The Quartz Creek transmission line is limited in electrical transfer capability (70 megawatts [MW)]), and its ability to provide reliable back-up power during system outages is subject to outages from ice, wind, and snow loading. The line is also routed across known and historically active avalanche areas. To allow full use of the Kenai Peninsula generation, the intertie secure transfer capacity needs to be increased to 125 MW. The Project would provide the increased transmission capacity to make these higher transfers possible in a secure manner by creating a transmission loop to increase reliability and provide a second path for power to flow during an outage of the Quartz Creek transmission line. In addition, the limitation of 70 MW of power transfer capability along the existing Quartz Creek transmission line reduces the ability to fully utilize the 120 MW generating capacity of the Bradley Lake Hydroelectric Project, owned by the State of Alaska. At the time the Power Sales Agreement for the Bradley Lake energy was signed, it was recognized that additional transmission line (interties) would be needed between the Kenai Peninsula and Fairbanks for system reinforcement and the capability to transfer the Bradley Lake hydro power throughout the Railbelt system. The 1992 Kenai Peninsula Borough Comprehensive Plan acknowledged that to fully utilize the Bradley Lake Project, additional transmission line upgrades are needed to carry power to Anchorage and Fairbanks. Project Facilities The following five separate types of facilities and associated construction techniques are required for the Project: = Overhead Transmission Lines - Overhead transmission lines with the conductors supported on steel or wood structures are proposed for the Kenai Peninsula along North Southern Intertie Project Record of Decision October 2002 IV. Kenai Road and north of Captain Cook SRA. Primary transmission structure types will include single-shaft steel poles and steel X-towers. The right-of-way width will vary between 30 feet for single poles and 150 feet for X-tower structures. The number of structures per mile would range from approximately 13 (for single pole) to 7 (for X- towers). Underground Lines - Underground lines are composed of 138kV transmission line cables buried below ground surface in a duct bank. Underground lines are proposed in the Anchorage area between Pt. Campbell and the Pt. Woronzof Substation, and on the Kenai Peninsula in the Captain Cook SRA and adjacent to two airstrips along the North Kenai Road. Submarine Cable - Submarine cable is specially constructed to operate in a marine environment and is more rugged than the cables used on land. Submarine cable is proposed for crossing the Turnagain Arm. Transition Stations - A transition station is equipped to change a transmission line from one type to another. Transitions from overhead lines to underground or submarine cable, or from underground cable to submarine cable would be required for the Project. Terminal facilities for the submarine cables are included in the transition stations. Transition stations would be required near the landfalls for the submarine cable, and at selected locations along North Kenai Road, Pt. Possession, and the Anchorage area. Substations and Reactive Compensation - Substations are located at the ends of transmission lines and at generation plants, and are the points at which the electrical system is joined together to form a network. Reactive compensation involves installation of specialized equipment in a substation to provide voltage support for the system or to increase power flow across a transmission line segment. Modifications to existing substations would be required at the Pt. Woronzof Substation in the Anchorage area, and at the Bernice Lake Substation on the Kenai Peninsula. Modifications will also be required at the Dave’s Creek Substation. RANGE OF ALTERNATIVES CONSIDERED A range of alternatives were identified through public scoping, a comprehensive review of previous Project documentation, and emerging energy systems. Through a comprehensive screening process, each alternative was assessed for its ability to meet the stated purpose and need, and as a result, some alternatives were eliminated from further consideration. The range of alternatives is also responsive to scoping comments regarding environmental and social issues and alternative energy options. Alternatives that initially were considered but then eliminated are listed below and then specifically described: Southern Intertie Project Record of Decision October 2002 = Alternatives to a new transmission line eliminated - battery energy storage systems: would only partially meet the purpose and need for the project due to its limited storage capacity, and was therefore eliminated - demand-side management and energy conservation: focuses on managing a very small part of the load on the system, whereas the Project need is for improvements to the entire interconnected system — = conventional new generation: the overall system has an excess of generating capacity and was therefore eliminated - wind generation: additional generation is not needed and was therefore eliminated fuel cells: additional generation is not needed and was therefore eliminated increasing spinning reserves: the project is being proposed to reduce spinning reserve requirements, and was therefore eliminated = Alternative transmission systems eliminated - upgrade of the existing Quartz Creek transmission line: the high cost of reconstructing the intermediate substations along the line, the minimal change in performance, and reliability and stability issues resulted in elimination of this option - alternate voltage levels: 230kV and 138kV were studied, and 230kV would require larger and more expensive equipment without the corresponding benefits, thus 138kV was selected for the project - underground transmission lines: underground transmission lines have been proposed in certain areas where required by regulation and/or to avoid hazards that would be associated with an overhead line; high installation and repair costs eliminated the option of undergrounding the entire project = Alternative transmission routes eliminated - Quartz Creek transmission route parallel: it would not meet the purpose and need of the project because it would be exposed to the same avalanche, ice, snow, and wind conditions as the existing line, and system reliability and energy transfer capability would remain limited - Sixmile Creek to Anchorage (Submarine) Route: the addition of submarine cable between Sixmile Creek and Anchorage would increase the costs of the project substantially. Additionally this option would parallel the existing Quartz Creek transmission line from Hope Junction to the Soldotna Substation and would not meet the purpose and need as noted above; therefore, it was eliminated from further consideration - Tesoro Route local options: several different local routing options were considered and eliminated - Enstar R oute local options: s everal different 1 ocal r outing o ptions were considered and eliminated = No-Action Alternative Implementation of the no-action alternative would mean that the Project would not be constructed and the Quartz Creek transmission line between the Soldotna Substation on Southern Intertie Project Record of Decision October 2002 the Kenai Peninsula and the University Substation in Anchorage would continue to be utilized as the only electrical connection between Anchorage and the Peninsula region. There would be no improvements to the system to address the current electrical system deficiencies associated with this line. Overall, the Railbelt electrical system reliability and transfer of energy capabilities between the Kenai Peninsula and Anchorage would not be increased. Additionally, the cost savings that would accrue from construction of the Project would continue to be part of the overall cost of producing electricity, and those continuing costs would be reflected in the rates for electricity paid by consumers. V. ENVIRONMENTALLY PREFERRED ALTERNATIVE In accordance with the provisions of NEPA C.F.R.§1502.14(e), the FEIS identifies the environmentally preferred alternative. Based on the EIS analysis and consideration of public comments on the DEIS and FEIS, the environmentally preferred alternative consists of the following: 1. Constructing and operating a new 138kV line between the Bernice Lake Substation and the Pt. Possession submarine cable transition station along the Tesoro Route alternative (Route Option A). 2. Constructing and operating a new 138kvV line consisting of a submarine cable crossing of the Turnagain Arm from Pt. Possession directly to Pt. Woronzof (Route Option C). VI. MITIGATION PLAN Mitigation planning has been an integral component of the Project from the initial Macro Corridor Study beginning in 1995 through the preparation of the DEIS. During the preparation of the FEIS, interested federal, state, and local agencies reviewed the locations and effectiveness of selective mitigation measures along alternative routes. Meetings occurred in March 2002 in Anchorage and Soldotna with the EPA, Alaska Department of Fish & Game (ADF&G), Kenai Peninsula Borough (KPB), Kenai River Center, Alaska Department of Governmental Coordination, and the Municipality of Anchorage-Community Planning and Development, and Parks and Recreation departments. The resulting mitigation plan as illustrated in the FEIS- Volume II, Mitigation Plan (July 2002), provides specific locations of the mitigation measures applied in the DEIS and summarizes the effectiveness of these measures in avoiding or reducing environmental impacts. Results of the mitigation plan provide both general and site-specific mitigation commitments that will be adhered to for the construction, operation, and maintenance of project facilities. This ensures that all practicable means to avoid or reduce impacts will be implemented for the project. Southern Intertie Project Record of Decision October 2002 In addition to those measures outlined in the Mitigation Plan, per the request of the EPA, the Applicant will conduct site-specific surveys for wintering waterfowl along the Tesoro Route prior to final design and construction of the project. This information will be used to determine the magnitude and extent of off-shore waterfowl behavior and will be gathered with the goal of ensuring that appropriate additional mitigation (if needed) is identified and will be implemented. At the request of the Municipality of Anchorage — Department of Community Planning and Development, and Parks and Recreation Department, the location of the underground cable and transition station between Pt. Campbell and Pt. Woronzof will be reviewed and further refined to minimize impacts to Kincaid Park and the surrounding area. VII. SCOPING, CONSULTATION, AND COORDINATION In accordance with the requirements of NEPA, RUS published a Notice of Intent in the Federal Register in October 1996. The notice announced the intent of RUS to prepare an EIS for the Project and the schedule for the three public scoping meetings, which were conducted in Anchorage on November 12, Cooper Landing on November 13, and Soldotna on November 14. RUS conducted an interagency meeting on November 6, 1996 in Anchorage. In addition, the Applicant and its consultants contacted agencies and organizations having jurisdiction and/or specific interest in the Project. A series of agency and interagency meetings as well as two public meetings (January and February 1996) were conducted. Two community working groups were developed, one on the Kenai Peninsula and the other in Anchorage. Each group met five times at key milestones during the process. All issues and concerns raised during the scoping process were analyzed in the Environmental Analysis prepared for RUS by the Applicant’s consultants and have been considered in the preparation of the DEIS and FEIS. A total of 14 issues were identified and have been addressed. They are listed below and discussed in more detail in the DEIS and FEIS documents. Issue 1 — Purpose of and Need for the Project Issue 2 — Urban and Rural Land Use Issue 3 — Aviation Safety Issue 4 — Recreation and Tourism Issue 5 — Management Plans Issue 6 — Watershed Management and Soil Erosion Issue 7 — Visual Resources Issue 8 — Biology Issue 9 — Cultural Resources Issue 10 — Right-of-way Limitations Issue 11 — Human Health and Safety Issue 12 — Avalanche Hazards Issue 13 — Socioeconomics Record of Decision Southern Intertie Project October 2002 Issue 14 — Alternatives to the Proposed Project In August 2001, a newsletter was issued that updated the Project status and announced the future availability of the DEIS. The mailing list included almost 375 agencies and individuals. The RUS Federal Register notice of the availability of the DEIS contained the dates, times, and locations of public hearings, and established a 60 day comment period that ended on December 5, 2001. In accordance with RUS procedures, the Applicant published DEIS availability notices in seven Alaska newspapers. As required by Title XI of ANILCA, public hearings were held in Arlington, Virginia on October 30, 2001, in Anchorage, Alaska on November 13, 2001 and in Soldotna, Alaska on November 14, 2001. Notices of the public hearings were placed in local newspapers during the week of the public hearings. Approximately 110 copies of the DEIS were sent to federal, state, and local government agencies, institutions, organizations, and individuals. Copies were also placed in the public reading rooms of the following libraries: Mountain View, Chugiak/Eagle River, Cooper Landing, Hope, Kenai, Muldoon, Samson-Dimond, Z.J. Loussac, Gerrish Branch, Soldotna, and Alaska State. Public testimony at the three hearings was received from 12 persons. During the 60-day comment period, a total of 102 different comment letters were received from federal, state, and municipal agencies, businesses, native corporations, non-profit organizations, and individuals. Two of the letters were email form letters signed by 158 and 907 individuals respectively and one letter was in petition format with 12 signatures. The FEIS was made available to the EPA and the public on July 12, 2002. Comments were received from two agencies and five non-profit organizations. No new issues or concerns were identified in these comments. VI. FINDINGS REQUIRED BY OTHER LAWS The Endangered Species Act The proposed project is subject to compliance with the Endangered Species Act. The only threatened and endangered species within the project study area is the Stellar sea lion (Eumetopias jubatus). The Stellar sea lion is a year-round resident of the Lower Cook Inlet, although there are no documented haulouts in Turnagain Amm or on Fire Island. Placement of the submarine cable across Turnagain Arm is not expected to affect Stellar sea lions. No significant impacts have been identified for the Stellar sea lion as a result of the project. Southern Intertie Project Record of Decision 10 October 2002 Clean Water Act Wetlands and waters of the U.S., which may be affected by this decision, are not proposed for dredge, fill, or any direct site-specific disturbance. A revised Section 404 permit application will be submitted to the USACE by the Applicant for construction of the project along the Tesoro Route. National Historic Preservation Act There are no known historic or archaeological sites within the Tesoro Route alternative that are listed or proposed for listing in the National Register of Historic Places. However, unknown archaeological sites may be present within the area of potential effect associated with the final right-of-way. Prior to final design and construction, the Applicant will retain qualified archaeologists to conduct a survey to identify any sites within areas to be disturbed. The survey will be submitted to the appropriate federal land manager, and the Alaska Office of History and Archaeology for review. If a site is discovered and avoidance is not possible, a mitigation plan will be developed and submitted to the appropriate agencies in compliance with 36 CFR Part 800 implementing Section 106 of the National Historic Preservation Act, 16 U.S.C. 470F, and Section 110 of the same act. Executive Order 12898 (Environmental Justice) Executive Order 12898 (February 11, 1994, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations) directs each federal agency “to make achieving environmental justice part of its mission by identifying and addressing, as appropriate, disproportionately high and adverse human health or environmental effects of its programs, policies, and activities on minority populations and low income populations.” EPA guidelines have been utilized in the analysis and decision processes in this decision. The Southern Intertie Project and Tesoro Route alternative do not disproportionately impact any minority or low- income populations; therefore the project complies with Executive Order 12898. Required Permits, Licenses, Grants or Authorizations The construction of the Tesoro Route will require a Compatibility Determination for the crossing of Native corporation surface lands and other lands conveyed within the KNWR subject to Section 22(g) of ANCSA. This applies to less than two miles of the Tesoro Route near the Grey Cliffs Subdivision and Pt. Possession. The Refuge Manager will conduct the determination. The State of Alaska — Department of Governmental Coordination will require a Coastal Project Questionnaire (CPQ) for construction of the Tesoro Route. This application will be submitted for a project consistency review by multiple agencies in accordance with the Alaska Coastal Record of Decision Southern Intertie Project October 2002 11 Management Program. The CPQ will determine additional state and federal permitting requirements for the project. T hese p ermits will be identified by agencies such as the Alaska Departments of Natural Resources, Fish and Game, Environmental Conservation, along with the KPB and Municipality of Anchorage. The Applicant will maintain compliance with the KPB Coastal Management policies and will apply for a plan amendment to the Utility Corridor Plan of 1990, as required by the Municipality of Anchorage. A complete listing of the permits and right-of-way grants required by the project are located in Table 4-7 in the DEIS. IX. ADMINISTRATIVE REVIEW, RELATED AUTHORIZING ACTIONS, AND CONTACT PERSON For further information regarding this decision contact: Lawrence R. Wolfe Mail: USDA-Rural Utilities Service 1400 Independence Ave., SW - Stop 1571 Washington, DC 20250-1571 Phone: (202) 720-5093 Fax: (202) 720-0820 Email: lwolfe@rus.usda.gov Related Authorizing Actions are: The USFWS approved its Record of Decision for the project on September 11, 2002. The USACE approval of its Section 404 (b)(1) Evaluation and Record of Decision is pending. Qo. LOR bles Blaine D. Stockton Date Assistant Administrator, Electric Program Rural Utilities Service Southern Intertie Project Record of Decision 12 October 2002