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Alaka Power & Telephone Company Black Bear Lake Hydroelectric Project 1994
ALASKA POWER & TELEPHONE COMPANY SERVING ALASKA SINCE 1957 EMPLOYEE OWNED — COMMUNITY MINDED Howard Garner 4 & Executive Vice President Alaska Power & Telephone Company P.0. Box 222 1-800-982-0136 191 Otto Street PHONE 206-385-1733 Port Townsend, WA 98368 FAX 206-385-5177 ALASKA POWER & TELEPHONE COMPANY P.O. BOX 222 « 191 OTTO STREET PORT TOWNSEND, WA 98368 (206) 385-1733 « (800) 982-0136 FAX (206) 385-5177 October 20, 1994 ECEIVE } ocT £1 1994 William R. Snell, Executive Director ; + Alaska Industrial Development Alaska industrial Developmen and Export Authority and Export Authority 480 West Tudor Anchorage, Alaska 99503 Dear Riley: Thanks for scheduling our meeting in your office on Tuesday, the 25th at 10 AM. Loren Lester and I will be there and we hope to review the specific steps necessary for what will be the sale of $10,000,000 of long term bonds in 1995 for the permanent financing of BBL Hydro. To prepare for that meeting, I have put together a book which is enclosed to review the project in depth. I used this material with CoBank to support my request for a $12 million secured operating line which we will use to complete the construction of BBL Hydro as well as other projects. Much of this information will also be used to support our required filing with the APUC. Also'enclosed is the letter dated today from Sam Saracino of our law firm, Davis Wright Tremaine. This is to the IRS and represents our final statements regarding our ruling request. Sam has kept Carol Giles of Wohlforth, Argetsinger informed throughout the IRS process. After talking with Sam, it sounds like he is hopeful of getting a verbal answer by the end of next week to indicate the decision of the IRS. We would like to work with you at putting Larry Markley to work on getting a political solution to the two county rule for Alaska. I look forward to discussing this as well as the outlook for the Skagway terminal. Please call me if you have questions. Best gards, Howard Garner Executive Vice President SENT BY:Davis Wright Tremaine ;10-20-84 ;11:07AM 3 DWT Seattie- 20 DAVIS WRIGHT TREMAINE Law Ornces a6oo Century Square: 1so1 Fouern Avenun * Saarrur, Wasnincton 98101-1663 (206) 622-3150 Samuet E Saracino (206) 6a8-7757 October 20, 1994 Internal Revenue Service 1111 Constitution Ave. NW Washington, D.C, 20224 Attn: Mr. Bernard Harvey CC:DOM:P&SI:6 Room 5118 Re: Alaska Power & Telephonc T.T.N.: 92-0028045 Dear Mr. Harvey: As you requested, I have attempted to track down the history of the Bradley Lake Hydroelectric Project in Alaska. In particular, I tried to find out the reason(s) why the 1984 legislation granting an exemption to the two-county rule for certain bonds issued in connection with the Bradley Lake Project specified that (i) the project receive financing of at least 25% from the State of Alaska and (ii) the energy generated by the project must be purchased by an electric cooperative qualified as a rural electric borrower, Unfortunately, after talking with the Alaska Power & Telephone officials and with Wohlforth, Argetsinger, Johnson & Brecht, bond counsel for the Bradley Lake Hydroelectric Project Revenue Bonds, and after reviewing the documents in connection with that project, I do not have a definitive answer to your qucstion. Nevertheless, | have enclosed the Official Statement for the Bradley Lake Project, and the following summary may be helpful. A. The Bradley Lake Project. The Bradley Lake Hydroelectric Project was a 90 megawatt generating facility located at the northeast end of Kachemak Bay, which is about 27 miles from the City of Homer at the southern end of the Kenai Peninsula in Alaska. The project consisted of a concrete rock-filled dam, a power tunnel to transport water from the tunnel intake at Bradley Lake to a powerhouse at sea level, and a powerhouse containing two generators with provision for a third backup generator. There were also certain associated facilities. 1487112} 00016. LTR Scattle Fax: (206) frat-7699 Ancatorsor, Avaxka * Bettevue, WasiinoTon * Bots, Inano + onovutu, Hawan + Low Ancsiss, CALIPORNTA PORTLAND, Orson * Rictttann, Wasitinerton * SAN Francisco, Carmornia + Wasnincton, D.C. SENT BY:Davis Wright Tremaine ;10-20-94 +11:08AM ; D WT Seattie- ; 1# 3/6 Mr. Bernard Harvey October 20, 1994 Page 2 The project also included approximately 20 miles of two parallel 150-kilovolt transmission lines to connect the power plant to a switching station at Bradley Junction. The switching station interconnected with the 59-mile, 115 kilovolt Fritz Creek to Soldotna trans- mission line, which was built by the Homer Electric Association, Inc. The Fritz Creek/ Soldotna line was not part of the project, but was essential for transmission of the Bradley Lake project power to the power purchasers. The Fritz Creek/Soldotna transmission line provided two paths for power to flow from Bradley Junction. One path interconnected with the transmis- sion system of the Homer Electric Association, and the other interconnected with the transmis- sion system of the Chugach Electric Association. The Alaska Energy Authority issued the bonds to permanently finance a portion of the construction cost of the Bradley Lake project. Under various power sales agreements, the Alaska Energy Authority sold 100% of the project power in the following specified percentage shares: Power Purchaser Percentage Share Chugach Electric Association, Inc. 30.4% Municipality of Anchorage 25.9% Alaska Electric Generation & Transmission Cooperative, Inc. (acting on behalf of Homer Electric Association, Inc. (12.0%) and Matanuska Electric Association, Inc. (13.8%) 25.8% Golden Valley Electric Association, Inc. 16.9% City of Seward LO: TOTAL 100.0% Chugach Electric Association, Homer Electric Association, Matanuska Electric Association, and Golden Valley Electric Association are all rural electric cooperatives, The Municipality of Anchorage and the City of Seward operate municipally owned electric utilities. The electric systems of all of these purchasers were interconnected through a transmission network owned in part by the purchasers and in part by the Alaska Power Authority. 14871\21\00016.LTR ‘Seattle SENT BY:Davis Wright Tremaine ;10-20-94 +11:08AM ; D W T Seattle- i 4/ 6 Mr. Bernard Harvey October 20, 1994 Page 3 The purchasers of the Bradley Lake power provide the vast majority of the electricity needs in the "Railbelt Region" of Alaska, an area so named because of its proximity to the Alaska Railroad. The Alaska Railroad linked the coastal port city of Seward with Anchorage and Fairbanks in the interior of the State. The Railbelt is comprised of three distinct economic and geographic regions, the Kenai Peninsula, the greater Anchorage area, and the Fairbanks area, I have enclosed a map showing the location of the project and the service areas of purchase. B. Analysis. I have little more to offer in the way of an explanation for the 1984 legislation. Clearly, the exemption was needed because the Bradley Lake Project provided power for more than two counties. I would assume that the two restrictions imposed by Congress (state financ- ing and rural clectric borrowers as power purchasers) were designed to ensure that the project was going to be made available primarily to small communities or small geographic service areas, which is the purpose of tax-excmpt financing of electrical facilities. See H.R. Rep. No, 95-1800 (Conf. Rep.), 95th Cong. 2d Sess. 198 (1978). Indeed, to help assure that the benefit of tax-exempt financing of electrical facilities is limited to small communities or small geographic service areas, the two county rule was adopted. The two county mule helped achieve this goal by assuring that the size of issues that qualify for exemption remains small. G.C.M. 37783 (Dec. 8, 1978). We continue to think that treating the Unorganized Borough of Alaska as the equivalent of a county is entirely consistent with the purpose behind tax-exempt financing, i.e,, to benefit small communities. The Unorganized Borough has a population of only one person per 4.4 square milcs of land, and the communities of Klawock and Craig, which will be served by the proposed Black Bear Lake Hydroelectric Power Project, are small and isolated. I know you have expressed some concern that the Unorganized Borough does not have the traditional characteristics of a county (including, for example, local government), and we respectfully disagree. As we have previously noted, the borough system was created by the sovereign power of the State of Alaska, and in Alaska, the nature and duration of the powers conferred upon a borough varies depending on the nature of the borough. The only difference between a more traditional county and the Unorganized Borough is that counties are generally governed by a locally selected assembly or commission whereas the Unorganized Borough is governed by the legislature with the assistance of designated state agencies and local boards. We would emphasize that this is, in fact, governance (and not the absence of governance) and that the legislature of the State of Alaska is every bit as much the governing body of the Unorganized Borough as a locally elected assembly ur commission is the governing body of a more traditional county. While the borough system and the Unorganized Borough are admittedly unique as political subdivisions in the United States, there can be no dispute that in 14871\21\00016, LTR Cn nsate mu SENT BY:Davis Wright Tremaine +10-20-34 711L7U0AM + DW seater Mr. Bernard Harvey October 20, 1994 Page 4 Alaska the Unorganized Borough is a political subdivision of the state for governmental pur- poses and corresponds generally to a county in other states. See Walters v, Cease, 388 P.2d 263, 264 n.1 (Alaska 1964), Indeed, we would be happy to provide affidavits from various state officials detailing the active governmental role they play in the local governance of the Unorganized Borough. According to Mr. Robert Walsh, the Director of Municipal and Regional Affairs of the Alaska Department of Commerce and Regional Affairs, the State of Alaska is responsible of govern- mental functions that would, in a more conventional county environment, be provided by the county government. For example, in an organized borough or a first class city with govern- mental powers, the borough or the city would provide education and other services such as snow removal. In the Unorganized Borough, however, these functions remain the responsibil- ity of the State of Alaska, and the State (through the various Departments of the State of Alaska) provides and/or pays for these functions. I can also understand the precedential concerns the Internal Revenue Service may have with a ruling that the Unorganized Borough is the political equivalent of a county, but as a practical and factual matter, the involvement of the state legislature in the borough system makes the Unorganized Borough unique and thus distinguishable from other situations. More- over, if the Service does not treat the Unorganized Borough as the political equivalent of a county, exactly what is it for purposes of the two-county rule? If the Unorganized Borough is not treated as the political equivalent of a county, no project in the Unorganized Borough will ever qualify under the two county rule since any project will inevitably extend beyond that city’s borders into the geographical territory of the Unorganized Borough. Thus, absent a tuling to effect that the Unorganized Borough is the political equivalent of a county, the citizens of Craig and Klawock (as well as the citizens of other small communities in Alaska) will be deprived of the benefits of tax exempt financing. If you have any questions, or if 1 can provide you with any additional information, please feel free to give me a call. Very truly yours, DAVIS WRIGHT TREMAINE Samuel F, Saracino ce: Mr. Howard Garner Ms. Carol Giles Mr. John A. Reed 14871\21 00016. LTR Seattle BRADLEY LAKE HYDROELECTRIC PROJEC] \ © RYBO:TT! PG-OZ-OT! auremasy 1U3TIM STAed:Aa INGS - SN BN rf * } N PISS gl 5 ea ENN ®. 7 vosasorm—f mt; . een @OLDEN WALLEY ELECTRIC AB! DEIATION a BRADLEY To ; SOL DOT MA = —~ MATRNUBKA ELECTRIC ASSOC: WON TRASE SOON | ne pTATION \ CHUAACH ELECTRIC ASSOCAT ; = sme nares sn } ANCHORAGE WURRCIRE, GMT 2 wD POWER } a —— furs rranemssion one Sea aesrie Sesoceene io <= TRAMEIIENION LINE UNDER CO! WETRUCTION a = t m7) 1® le te - [neal 2 rr wt a * ° ’o . - : Q /Q October 1, 1994 BLACK BEAR HYDRO, Inc. Index Executive Summary Sections: Il. Requested financing and proposed terms and conditions. ll. Description of Alaska Power & Telephone Company lll. Description of BBL Hydro Project IV. Economic Conditions on Prince of Wales Island V. Updated Load Forecast VI. Financial Profile of AP&T Vil. Financial Projections for Black Bear Hydro Vill. Risk Assessment Attachments: |. Bingham Engineering Profile of Experience ll. Whitewater Engineering Profile of Experience The information below was used in creating this document and is available upon request from AP&T. A. FERC License B. R.W. Beck, Inc., Economic Study & Load Forecast (October, 1992) C. Prince of Wales Island Economic Profile and Forecast, for Sealaska, McDowell Group, 1993. D. Prince of Wales Island Economic Development Strategy, Cheshire & Hacskaylo, 1994. E. Construction Quality Control Inspection Program Manual, 1994. 7 Alaska Power & Telephone Company Executive Summary Alaska Power & Telephone Company (AP&T) has developed a hydro electric project on Prince of Wales Island, Alaska. The project, Black Bear Lake Hydro Project, will have the capacity to generate 4.5 MW. It will replace existing diesel generation on the island. AP&T was issued a license by the Federal Energy Regulatory Commission (FERC) to construct and operate the project on November 9, 1993. The project will be operated by a wholly owned subsidiary of AP&T, BBL Hydro, Inc. AP&T is an investor owned utility providing electric and telephone service to a number of small communities in Alaska. Approximately 40 percent of the company's stock is held in an Employee Stock Ownership Plan. AP&T will act as the primary contractor for the project and will be responsible for all aspects of the project. AP&T will maintain close coordination with FERC to ensure that all requirements contained in the license for construction of the project are met. The project will provide power for several cities and communities on the island. By replacing diesel generation, AP&T and its customers will realize substantial long-term benefits from the project. Project feasibility studies indicate that over the fifty year life of the project $140,000,000 in savings to = the ratepayers will be achieved. The project will provide a stable source of power to enable the economy on the island to continue to grow. AP&T CREDIT REQUIREMENTS The company is seeking credit facilities which will assist it in achieving its goals of remaining a strong and growing company in the power and communication industry within Alaska. The term revolving credit line will be used for this project and other construction projects as they are developed by the company. The revolving credit line will also be used as a vehicle to facilitate the acquisition of new service territories as those opportunities become available. The company will finance the construction of the Black Bear Lake project through its existing lines of credit and through the establishment of a new term revolving credit line. Permanent financing will be used to repay the interim construction loans. It is anticipated that the permanent financing will be secured by project assets and other credit enhancements offered by the company. = SECTION I Alaska Power & Telephone Company Financing Request Alaska Power and Telephone Company (AP&T) is seeking financing for current and proposed construction projects, acquisitions of new service territories and for general corporate purposes. The company currently has under construction the Black Bear Lake Hydroelectric Project on Prince of Wales Island. The company is seeking the following credit facilities in order to accomplish its capital program and long term goals. $12,000,000 - Term Revolving Credit Line The term revolving loan would be made to Alaska Power & Telephone Company for its general corporate purposes and interim financing for Black Bear Lake Hydro. The company's wholly owned subsidiary, Alaska Power Company will pledge sufficient assets to secure the loan. The proposed term revolver would have a two year maturity with an evergreen clause enabling the revolving loan to be extended on an annual basis. $10,000,000 - Term Loan Proceeds from the term loan will be used to repay the interim construction loans for Black Bear. The term loan is for the permanent financing of Black Bear Lake and will be made to BBL Hydro, Inc., a wholly owned subsidiary of AP&T. AP&T is prepared to offer credit enhancements necessary to secure this financing. Amount: Purpose: Term: Borrower: Security: Repayment: Interest Rate: Covenants: Fees: SECTION I Alaska Power & Telephone Company Term Revolving Loan Proposed Term Sheet $12,000,000 General Corporate Purposes, Including Funding For Capital Additions, Construction And Acquisitions Two Years With An Annual Renewal Alaska Power & Telephone Company Various Assets Of Alaska Power Company Repayments Permitted At APC's Discretion With Commitment Reinstated. On A Date Certain, Any Outstanding Balance To Be Amortized On Pre-Agreed Terms. Full Range Of Interest Rate Options Including Spread Over U.S. Treasuries, Spread Over Cost Of Funds And Variable Rate. Same as existing agreement for Alaska Telephone Company (ATC) except as modified for start-up conditions. To Be Negotiated Amount: Purpose: Term: Borrower: Security: Repayment: Interest Rate: Covenants: Fees: SECTION I Alaska Power & Telephone Company Proposed Term Sheet $10,000,000 Permanent Financing For Black Bear Lake Hydro Project 30 Years BBL Hydro, Inc. Project Assets; Power Sales Agreement; Guarantee Of Alaska Power & Telephone Quarterly Level Principal And Interest Payments Full Range Of Interest Rate Options Including Spread Over U.S. Treasuries, Spread Over Cost Of Funds And Variable Rate. Same as existing agreement for Alaska Telephone Company (ATC) except as modified for start-up conditions. To Be Negotiated II SECTION II Alaska Power & Telephone Company Company Profile Alaska Power & Telephone Company is an investor owned utility providing electric and telephone service to twenty communities in three diverse areas in Alaska. Currently, there are about 100 stockholders with the AP&T ESOP holding about 40% of the shares. The 55 eligible employees participate in this plan and own these shares. Ralph Wilson, Chairman of the Board who was for 15 years (1969-1984) the President, owns 25% of the outstanding shares. AP&T's company stock is traded in the OTC market. AP&T is the holding company for several subsidiary corporations. A diagram showing the corporate structure is as follows: Alaska Power & Telephone Company (AP&T) Alaska Power Company | | Alaska Telephone Company | Bettles Power & | Light, Inc. Bettles Telephone, Inc. Coffman Cove Utilities Assn. | North Country Telephone, Inc. Eagle Power Company (BBL Hydro, Inc. This corporate structure was adopted by the board during 1993 and provides several benefits to the company. The restructuring enables each subsidiary to submit separate filings to the APUC (Alaska Public Utility Commission) to review. The company was also able to redeem the stock of a number of minor shareholders, during this restructuring, thus reducing future administrative costs. The company has a total of thirteen electric service territories and sixteen telephone territories. In nine of the areas the company provides combined electric and telephone service. The company's service territories are widely dispersed throughout Alaska. The company has adopted a growth strategy of carefully planned acquisitions of new service territories. AP&T's service territories are concentrated in three areas in the state; southeastern, north central and an area 200 miles southeast of Fairbanks, centered at Tok. The majority of the company's electric operations are handled by Alaska Power Company (APC). Communities served by APC are: Skagway, Tok, pst SECTION II Dot Lake, Mentasta Lake, Chistochina, Tanacross, Tetlin, Craig, Hydaburg, Healy Lake, and Hollis. Tok, located on the Alaska Highway, is a transportation hub for Alaska, Canada and the lower 48 states. Skagway is the port of entry for Alaska's interior and a major tourist attraction because of its historical past. It is the terminus of the Inland Waterway from Seattle. The company provides both wholesale and retail electric service on Prince of Wales Island. The economic base on the island is timber, fishing and tourism. The company's service areas have experienced sustained economic growth over the last several years. The other electric subsidiaries are the result of acquisitions by the holding company and serve the areas shown. BBL Hydro, Inc. was formed to operate the hydro facility that is under construction. For operations, a service center concept is used for each of the three areas. A general manager supervises all employees needed to operate both electric and telephone systems for those communities around the service center. This allows cross use of employees, maximizing efficiency for scheduling and reliability through employee backup. Several part-time employees are used as watchman or as needed to complete construction. The majority of the company's telephone operations are handled by Alaska Telephone Company (ATC). Communities served by ATC are Skagway, Dry Creek, Dot Lake, Tanacross, Tok, Tetlin, Edna Bay, Whale Pass, Naudati, Meyers Chuck, Hollis, Hydaburg, Craig, and Healy Lake. The other telephone subsidiaries are the result of acquisitions by the company and serve the areas shown. The company's growth strategy is based on acquiring new service areas that are economically feasible and concentrating on existing service areas that have strong economies. (See Section VI, Financial Profile of AP&T) The company is subject to regulation by the Alaska Public Utilities Commission. The commission has jurisdiction over both service territories, rates and services. The commission grants franchises on an exclusive basis. New franchises are granted based on need, financial feasibility and the utilities ability to serve. The company has an excellent relationship with the commission. Cae wets Ee er Mission STATEMENT OuR MISSION IS: T: remain a strong and growing company in the power and communication industry within Alaska. PURSUANT TO THAT WE WILL: 1. Continue the enhancement of our existing power and communication systems and the communities we serve; 2. Identify and develop cost-effective hydroelectric resources within Alaska; 3. Identify and install local exchange tele- phone systems where needed within Alaska; 4. Investigate and pursue interconnection of our electrical facilities with others; and, 5. Pursue acquisitions of other electric and telephone systems where our Company offers unique advantages and cost effectiveness. EXTRACTED FROM: ALASKA POWER & TELEPHONE COMPANY Robert S. Grimm, President Howard Garner, Executive Vice President Phone: 1-800-982-0136 HYDROELECTRIC PROJECTS Withits feet fi firmly planted in rural Alaska, AP&T continu to identify, and develop cost-effective hydroelectric resources within Alaska. As evidenced by Skagway’s past successes with the Dewey Lake . Project, vere projects are among the best means for achieving 2 Prplects ane currently i in development. Construction on will begin i oe <—e Biack Bear Lake A\ federal license was issued in November 1993, enabling AP&T to move closer to construc- tion of its Black Bear Lake Project on Prince of Wales Island. The license was issued by the Federal Energy Regulatory Commission (FERC), shortly after a land-use agreement was reached between AP&T and Sealaska Corporation, one of the 13 regional Native Corporations created by the Alaska Native Claims Settlement Act, the largest private land holder on Prince of Wales Island. Both the agreement and the license from FERC represent many years of work by AP&T “¢@ “We consider both to be major milestones AP&T,” says Alan See, President of BBL Hydro, Inc., a subsidiary of AP&T. LR: Bob Berreth, Vice President of BBL Hydro, Inc.; and John Klontz, Director of Permitting. emi mum. With the rew ie a facility, “Normally, the spawning success of salmon is dependen ai says John Klontz. “But by drawing water out of the lake and releasing it the flow requirements, making it easier for salmo' «f ai Selmer, General | Manager of gAPATs Skagway service center 7 Hee sg % ( JI When completed, the project will provide a reliable, cost-effective and pollution-free power source for communities on the island that are now solely reliant on diesel oil for electric generation. Construction at the remote site, about 14 miles east of Klawock, will begin in 1994. “Before we can actually turn ashovel, we must satisfy a series of stipulations put forth by FERC,” says John Klontz, BBL Hydro’s Director of Permit- ting. “We've already taken steps in 1993 to address some of these,” he adds, pointing to initial studies on bald eagles, endangered spotted frogs and native ainbow trout populations. “We’re making every effort to ensure that these and other natural re- sources will be protected throughout the project’s life.” A civil engineering firm has been recruited for the next phase of the project, and a construction firm will soon be sought. Black Bear Lake occupies a bedrock basin in "t-shaped valley at an elevation of 1,687 feet. A ch in the bedrock rim at the lake’s lower end leates a series of falls, dropping nearly 1,400 feet, to form Black Bear Creek. As planned, the Black Bear project will utilize the basin’s natural flows and the 215-acre lake’s upper 15 feet as equalizing storage. A hydroelectric turbine in an auto- mated powerhouse near the falls’ base will generate up to 4.5 megawatts of electricity— enough to supply twice the present electrical load in Craig and Klawock. Goat Lake Preliminary plan- ning also continued on another hydroelectric project, Goat Lake, dur- ing 1993. When completed, this project will supply hydroelectric power to the growing com- munity of Skagway. One third of Skagway’s energy is presently supplied by hydropower from nearby Dewey Lake, with the remainder supplied by diesel generators. As with the Black Bear Lake project, planners of the Goat Lake project will be choos- ing the least disruptive technologies to con- struct and operate the project. Water will be withdrawn from the 204-acre lake through a steel siphon, then directed through a 6,700- foot-long penstock pipe to a powerhouse lo- cated next to the Skagway River. The powerhouse’s generating unit will havea capac- ity of four megawatts, producing about 15,000 megawatt hours of electricity each year. “€There’s very little impact to the lake itself by this project,” observes Glen Martin , Technical Writer for our projects. “We’re not raising the lake’s level, nor are we redirecting the natural flows.” AP&T’s license application for the Goat Lake project will be submit- ted to FERC in 1994. Above: Water from Goat Lake tumbles down the 850-foot Pitchfork Falls. This natural cascade is particularly popular with tourists and other trav- elers along the Klondike Highway. nda weather conditions”, the stream, AP&T will actually enhance pawn upstream.” HYDRO, INC. SERVICE AREAS SKAGWAY TOK CRAIG HYDABURG TANACROSS DOT LAKE TETLIN HOLLIS BETTLES & EVANSVILLE DRY CREEK CHISTOCHINA NAUKATI WHALE PASS MENTASTA LAKE MEYERS CHUCK COFFMAN COVE EDNA BAY JIM RIVER CAMP TETLIN Ed EAGLE & EAGLEVILLAGE Ed A AN AAA 3] OO 0 OO booo00000o ; Ty a ok , Pan LV SAB Up 1a fiers Saga = sic SO RAI aed fo OR kee mye SAE sald ae Be eae OTe acs toe ype ee aE ty Mau ol Sm UR Ss sede) rd d » eG ATEWRY Gp ata Deed eat DTU Sha Ss SERVING ALASKA SINCE 1957. EMPLOYEE OWNED — Community MINDED \_” Customer Service CENTERS Ed Power SERVICE Eg TELEPHONE SERVICE ade SECTION III Black Bear Lake Hydroelectric Project Project Description Alaska Power & Telephone Company (AP&T) was issued a federal license by The Federal Energy Regulatory Commission on November 9, 1993 to construct, operate and maintain the 4.5 MW Black Bear Lake Hydroelectric Project located on Prince of Wales Island, Alaska. AP&T started project construction in August, 1994. AP&T, acting as the primary contractor, will oversee construction schedules, standards, subcontractors, and arrange for and provide materials necessary for all phases of the project. Company personnel will install powerhouse metering, protection and monitoring systems. The staff will insure that the Quality Control Inspection Program (QCIP) (See Attachment) is successful by providing project construction inspections and compliance monitoring. Because AP&T is 40% owned by the employee's the staff of AP&T has a vested interest in seeing to the successful completion of the construction of this project and too follow QCIP guidelines. The Black Bear Lake Project is located on Prince of Wales Island, in Southeast Alaska. The Project is approximately 14 road miles northeast of the town of Klawock. The primary Project features are located at the outlet of Black Bear Lake and along Black Bear Creek. The climate of the Project area is maritime, typified by cool summers, relatively mild winters, long periods of almost continuous cloudy or foggy conditions, and year-round precipitation averaging about 220 inches per year. Black Bear Lake is a high, perched, cirque lake, in a U-shaped valley at an elevation of 1,687-feet, that drains 1.82 square miles of steeply sloped forested land. Inflow into the lake consists primarily of intermittent streams that drain deep snowfields located in the alpine areas surrounding the lake. The Black Bear Lake Project will have a capacity of 4.5 MW. The Project will utilize the natural flows of the basin as well as the upper 15 feet of Black Bear Lake as equalizing storage to power a hydroelectric turbine. The Project will consist of a siphon intake, penstock, powerhouse and tailrace, switchyard, substation, transmission line, and access road. There will be approximately 4900-feet of penstock extending from the siphon to the powerhouse. The transmission line will follow the existing roads to the Klawock substation. When completed, the Project will provide a reliable, cost-effective and pollution-free power source for communities on the Island that are now solely reliant on diesel oil for electric generation. SECTION III ATTACHMENT 1 Quality Control FERC inspects projects under construction throughout their construction period to assure that (1) construction is in accordance with license exhibits, in compliance with all provisions of the license; and in general conformance with contract plans and specifications; (2) sound construction practices, satisfactory field supervision, adequate attention to environmental concerns, adequate quality control (QC), and satisfactory surveillance and monitoring are being employed; and (3) records are being maintained of significant construction details. Major projects under construction are inspected by FERC Regional Office (Portland, OR.) personnel once a month. A photographic log is kept of the construction as well as a monthly report to FERC documenting the projects progress. FERC considers the BBL Hydro Project to be a low hazard hydroelectric project and as such will only inspect the project every two years after construction has been completed. The Quality Control Inspection Program (QCIP) is being implemented by a staff of five during the project construction. A complete copy of the program, as approved by FERC, is available for review. The staff will monitor and inspect the construction activities as may be required. There is a Project Manager, three Project Engineers, and a Project Compliance Coordinator. The Project Manager (BBL Hydro, Inc.) has the overall responsibility of the Black Bear Hydroelectric Project construction and contracts. The manager reports directly to the President of Alaska Power & Telephone Company (AP&T). Each Project Engineer (AP&T, BBL Hydro, Inc. & Bingham Engineering) has separate design and inspection responsibilities but will work together during the over all project designs. All design engineers will report to the Project Manager. The Project Compliance staff has the responsibility to monitor and inspect project construction activities for permitting and licensing requirements. The project compliance staff will report to the Project Manager. The QCIP staff will work dependant with the primary contracted civil design firm and contracted construction firm during the project construction activities but independently regarding issues, concerns and field inspections. AP&T (QCIP) staff involved in the construction of the Black Bear Lake Hydro Project are Alan See-Project Manager, Bob Berreth-Project Design Engineer, Vern Neitzer-Project Design Engineer, John Klontz-Project Compliance and J.Trae Stokes-Project Engineer (Bingham Engineering). (Resume's available in the Construction Quality Control Inspection Program Manual, 1994) AP&T staff has the following background and experience: Alan See: B.S. Electrical Engineering, 1974 Construction Project Administration Course, 1994 Vice-President of operations and construction. Has working p. 1 SECTION III ATTACHMENT 1 ‘ experience and knowledge of Project Management. Operations manager for twelve power service areas and fifteen telephone service areas. Has installed diesel generators, expansion of power plant buildings and hydroelectric system work. Bob Berreth: B.S. Mathematics, 1972 B.S. Electrical Engineering, 1973 Has working experience and knowledge of turbines, generators, penstocks, transformers, pumps, hydrogeneration operations, engineering and designs, national electric codes, construction standards and practices, project construction and project management. Vern Neitzer: B.S. General Engineering (w/ Nuclear Option), 1972 He is the chief engineer responsible for identifying, recommending and implementing additions, improvements and maintenance for the following service areas: Skagway, Tok, Craig, Hydaburg, Bettles, Tanacross, Tetlin, Mentasta, Chistochina, Dry Creek, Dot Lake, Coffman Cove, Hollis, Naukati, Whale Pass, Meyers Chuck. His experience also includes hydroelectric project feasibility studies, permitting, Sizes design, construction, operation and maintenance engineering. John Klontz: B.S. Civil Engineering, 1968 He is responsible for hydroelectric development and project manager for hydroelectric projects. Is also responsible for the preliminary licensing process, applications, securing construction, environmental and compliance permits from federal and state governmental agencies. He makes sure studies are completed and communicates with FERC and other federal and state agencies requesting information, review, comments and approvals of plans and license article requirements. His experience includes engineering designs, construction standards and practices, project construction, permitting, environmental concerns and issues, federal rules and regulations. Bingham Engineering has provided a project engineer with the following experience: J. Trae Stokes: B.S. Civil Engineering His experience includes supervising eight phases of construction, coordinating inspection scheduling, personnel, and evaluation of field conditions and subsequent design ee changes, all related to hydroelectric projects. Has working experience with concrete testing, with metals and welds, p. 2 SECTION III ATTACHMENT 1 pipe and pipe pressure testing and rock anchor installation and pullout testing. Various Contractors And Their Responsibilities: Bingham Engineering, of Salt Lake City, Utah was contracted to complete a project field survey and perform the civil design engineering. The civil design work include the siphon intake, penstock, vacuum pump house, by-pass valves and powerhouse. Bingham Engineering is a multi-disciplinary consulting engineering firm. The company was formed in 1973 and has shown a steady growth with a staff of up to seventy. A large part of Bingham Engineering's work during the past twelve years has been feasibility, licensing, environmental studies, design, and construction management of hydropower facilities. (See Attachment | for resume) Kvaerner Hydro Power Inc. of San Francisco, Ca. was contracted to provide 1- 720 rpm horizontal shaft 2-jet Pelton turbine, Kvaerner Electro-hydraulic turbine governor and 1-spherical valve and spare parts. Kvaerner Hydro Power Inc. is a member of the Kvaerner Group. Originating 150 years ago, the Kvaerner Group is the largest mechanical engineering organization in Norway with over 17,000 employees spread over more than 50 member companies world wide. These companies cover a wide variety of activities, ranging from oil and gas to fish processing and environmental protection as well as shipping and shipbuilding. All the companies forming the Kvaerner Group are headed by the publicly owned holding company Kvaerner a.s which is quoted on the Oslo, Stockholm and London Stock Exchanges. Liberty Pipe Company, Great Falls, Montana was contracted to provide steel pipe and valves for the projects's penstock and bypass. Whitewater Engineering Corporation, of Bellingham, Wa. was contracted to complete construction of the project. The construction work will include powerhouse civil foundation, penstock, siphon intake, vacuum house, by- pass and substation yard. Whitewater Engineering Corporation moved recently from Alaska to Bellingham, Wa. to serve the Pacific Northwest. Whitewater Engineering specializes in design, construction, and project management of a wide variety of construction projects including technical, environmental, economic and regulatory issues. (See Attachment II for resume) SECTION IV Economic Conditions on Prince of Wales Island Economic History of Industrial Development The site of the first significant industry on Prince of Wales Island, was at Klawock. In 1863, a salmon saltery was established and in 1878, Alaska's first salmon cannery was constructed at Klawock. Over the past 100 years most of the growth on the Island has been resource dependent and therefore subject to the cycles of the resource industries. The seafood industry was the leading industry on Prince of Wales until the 1950's when the industry suffered a dramatic decline due to a 50% reduction in salmon runs. Until the 1950's, fish traps accounted for over two-thirds of the total salmon harvest in the Southeast. These highly efficient tools overtaxed the resource, and were finally outlawed in 1959. Improved resource management and aquaculture development have bolstered the salmon resource in the Southeast since then, but cycles in price and run strength still characterize the industry. Mining came to the Island not long after the first cannery. Over the years there has been successful mines of copper, marble, uranium and plutonium group minerals. Both industrial minerals and metallic minerals are the target of significant exploration and prospect evaluation efforts in the Prince of Wales Island area. (McDowell Group, 1993) The timber industry has had a significant impact on the economy of the Island providing many jobs and increasing the population. However, the timber industry continues to fluctuate depending upon the harvest contracts with the U.S. Forest Service and market fluctuations. Sealaska Corporation is the largest private timber owner on Prince of Wales Island and has helped to stimulate the timber industry by logging large tracts of its timber resource. Population Profile Total population on Prince of Wales Island tends to vary from season to season. In the summer, a large number of persons come into the area for seasonal work in logging camps, fish processing plants and on fishing boats. Other year-round residents of the area may leave to go to other locations in Alaska or outside for employment. Though the number may vary from year to year, total population has often increased during the summer months by as much as 30 percent over the year-round level in recent years. (Alaska Power Authority, 1982) According to the Census, the total population of Prince of Wales Island was 4,652 in April, 1990. The population of the Island increased by over 80% between 1980 and 1990. The Island's natural rate of population increase appears to be approximately 1.5% based on the average annual rate of increase from 1900 to 1980. Population growth averaged 6.5% between 1980 and 1990. Timber harvest on Native corporation lands, tourism growth, and spending by state government spurred this population growth. The community of Craig experienced the most growth between 1980 and p.l ih SECTION IV 1990, gaining over 700 residents and more than doubling the population. It should be noted that the City of Craig's estimated population (computed for State revenue sharing purposes) is 1,535, as of November, 1990. The City of Craig's October, 1991 population estimate was 1,637. In any case, the community has grown dramatically over the last decade, causing considerable strain on public services. The population of Klawock, Prince of Wales second largest community, also more than doubled between 1980 and 1990. The Census found a total population of 722 in Klawock. Local officials estimate that the population is now approximately 850 residents. The population of Prince of Wales Island in 1990 was approximately 74% White, 25% Native and 1% Other. Over the last ten years, these proportions have shifted slightly, from 27.8% Native in 1980 to 24.5% Native in 1990. Between 1980 and 1990, the Native population of Prince of Wales has grown at an annual rate of 5.3%. The non-Native population increased at an annual rate of 6.9% during the same ten year period. These growth rates suggest that the boom in Prince of Wales Island economy during the 1980s affected both the Native and the non-Native populations. The natural population growth rate (births over deaths) would be about 1.5% to 2%, assuming stable economic conditions. The 5.3% growth rate for the 1980 to 1990 period indicates that fewer Natives were leaving the Island to search for work, and that in fact Natives from other parts of the Southeast were moving to the Island. The shareholder hiring policies of the Native corporations with assets on the Island probably accounts for most of this in- migration. (McDowell Group, 1993) Craig, Klawock, Hydaburg and Thorne Bay all have plans to increase the availability of housing. In Craig, Shaan-Seet is considering developing lots east of town; these will likely be for Shaan-Seet (a Native American corporation) shareholders only. Also in Craig, Tlingit and Haida Housing Authority is in the midst of completing 20 units (10 single unit houses; 5 duplexes) of low income housing. Klawock is developing 220 new residential lots in the Mary Jackson subdivision. Thorne Bay has fourteen recently developed residential lots for sale; all fourteen lots are connected to the municipal water and sewer systems. (Cheshire & Hacskaylo, 1994) The City of Coffman Cove obtained bonds for roads and sewer for a 40 lot subdivision in that area. (McDowell Group, 1993) Clearly, there are changes afoot on Prince of Wales Island. For one, a housing infrastructure is being developed to accommodate employment related to the Klawock sawmill, cannery, mall and the other forms of employment that are related to them (fishermen, loggers, truckers, sales clerks, etc.). Also, there is an effort to create housing for the people coming to the Island to live and to attract future residents. The Alaska Department of Labor (ADOL) has prepared ten-year population projections for all of Alaska's boroughs and census areas. ADOL has defined low, middle and high case projections. The middle case is simply a projection of the population growth trend set during the 1980s. The high and low cases are based on in and out migration levels set one-standard deviation above or below the mean census area in and out of the decade. p.2 SECTION IV ADOL has prepared a ten-year projection for the Prince of Wales Island/Outer Ketchikan Area. The middle case for the census area is a 3.82% annual increase. This would result in a population increase from 6,278 in 1990 to 9,246 in 2000. If this growth rate is applied to Prince of Wales Island only, the Island's population increase from 4,562 to 6,637, would show a 45% increase. (See Section V, Load Forcast) Again, this is simply a projection of past trends into the future. No adjustment is made to account for changing economic conditions. ADOL's low case is a growth rate of 3.28%. Oddly enough, the high case growth rate is 3.7%, lower than the middle case. The State of Alaska has used other growth rates for Prince of Wales in transportation planning projects. For example, the Alaska Department of Transportation and Public Facilities (DOT&PF) used a growth rate of 2% for the years 1990 and 2010 in forecasting demand for airport facilities. (McDowell Group, 1993) In the Economic Profile, it mentions that many of the new jobs, in the Craig/Klawock area, were related to having hired teachers for the schools. This supports the fact that there has been a significant increase in year round residents of the Island. Economic Profile The economic base of Prince of Wales Island today is a mix of forest products, seafood harvesting and processing, tourism and government. These are the industries that funnel new money into the Island's economy. Other industries and businesses, such as the retail and service sectors, are considered part of the support sector because they re-circulate money already in the local economy. Support sector development is important because more development may mean less leakage. Leakage occurs when goods and service consumed locally are purchased outside the local area. (McDowell Group, 1993) Forest Products The forest products industry is an important industry on Prince of Wales Island. In 1990, logging and sawmilling directly accounted for over one-third of all personal income earned by the residents of Prince of Wales Island. Logging by Ketchikan Pulp Company (KPC), logging by Native corporations, sawmilling, transportation and construction related to the logging industry and U.S. Forest Service employment related to logging directly and indirectly account for two-thirds to three-quarters of the Island's economy. (McDowell Group, 1993) Employment in the timber industry peaked in 1990. Since then there has been a gradual decline to levels of 1987. In 1987, annual average manufacturing employment in Craig/Klawock was only 136 jobs. By 1990 it was 324 jobs. By 1993 it had fallen back to 121 jobs. This decline can be directly attributed to the re-opening and closing of the sawmill at Klawock and to the rapid rise and decline of the Native timber harvest in and around both Craig and Klawock. Hydaburg experienced a similar roller coaster ride. p.3 SECTION IV Total employment in Hydaburg, most of which was involved with the local timber harvest, went from 274 jobs (Fourth Quarter, 1987 - Third Quarter, 1988) to 75 jobs (Fourth Quarter, 1992 - Third Quarter, 1993). Despite reductions in the National Forest timber harvest that has occurred primarily on the north end of the Island, the employment on the north end of Prince of Wales has remained relatively stable. There was a difference of only fifty jobs between the peak in 1990-91 and the low in 1992-93. (Cheshire & Hacskaylo, 1994) Commercial Fishing Commercial fishing is shielded from the big swings in employment that occurred in the timber industry. The Commercial Fisheries Limited Entry program sets a limit on the number of boats and fishermen allowed to participate in a fishery. As a result, even though the size of the harvest and the price of the fish may rise and fall dramatically from year to year, the number of people participating in most of the area fisheries does not. Consequently, Prince of Wale's fishing employment has remained fairly constant during the last seven years. (Cheshire & Hacskaylo, 1994) Seafood Processing Presently, fish processing is carried out in Ketchikan for both sides of Prince of Wales Island. The volume of fish harvested on the west coast of Prince of Wales can support both a cold storage and a cannery. In 1993, there were more than twenty-three million pounds of "money fish" (salmon other than pink salmon), shellfish and bottomfish harvested on the west coast of Prince of Wales along with fifty-five million pounds of pink salmon. Processors are finding the world seafood market becoming increasingly competitive. Salmon, today, has to compete on quality and freshness rather than just price and availability. This gives the processor an incentive to process and ship salmon as quickly as possible. To date, what has been lacking on Prince of Wales is enough fresh water for processing the fish. The communities of Craig and Klawock have both been working to improve their fresh water capacity to enable a seafood processor to establish a facility in either of these communities. (Cheshire & Hacskaylo, 1994) Other impacts are the need for enough power (BBL Hydro Project would fill this need), transportation (Klawock now has a new regional airport, which could play a major roll in the seafood industry), and housing which is being addressed. Tourism The visitor industry on Prince of Wales Island, though not entirely new, is a fairly recent phenomenon. The Island offers a variety of visitor opportunities including scenic values, cultural features, a road network and a newly discovered network of caves. (McDowell Group, 1993) Most of the tourists, out-of-state visitors to Prince of Wales, are sport p.4 SECTION IV fisherman (est. 4,000 in 1992) who fly into their lodge, fish and fly out without having any contact with Prince of Wales apart from their lodge and their fishing. Relatively few tourists enter Prince of Wales by way of the Alaska Marine Highway System (AMHS) ferries. Of the 22,599 passengers who disembarked from the AMHS ferry at Hollis in 1993, 879 (3.9%) began their trip from farther away than Ketchikan or Metlakatla. (Cheshire & Hacskaylo, 1994) However, further evidence of the growing visitor interest in the area is found among the increase in use of the AMHS between Hollis and Ketchikan. While a significant portion of this growth is due to the expanded residential population, some of the growth can be attributed to visitors of the Island as well. (McDowell Group, 1993) The development of visitor accommodations has been gradual, but in the past five years growth has accelerated to keep up with the apparent increasing demand for fishing experiences. Government Government sector employment has grown to become an important component of the Prince of Wales Island economy. Government employment is second only to the forest products industry in terms of importance to the Island's economy. (McDowell Group, 1993) Total government (federal, state, and local) employment on Prince of Wales increased from an annual average of 295 jobs in 1987 to 433 jobs in 1993: an annual average increase of 6.6%. State employment remained virtually unchanged, but federal employment, primarily Forest Service employment, rose by 47 jobs: 37 jobs in Thorne Bay and 10 jobs in Craig. Most of the increase in government employment on the Island came in local government jobs which includes local school district employment. In Craig/Klawock, local government employment increased by 78 jobs; in Thorne Bay it rose by 10 jobs. Most of the increase in the Craig/Klawock area can be attributed to growth in the local school districts. In Thorne Bay the growth is a reflection of the expanding role of the City of Thorne Bay in managing its own utilities. (Cheshire & Hacskaylo, 1994) Economic Outlook Forest Products Industry Outlook The economic impact of the forest products industry on Prince of Wales is expected to decline over the next ten years and then stabilize. The value- added portion of the industry (sawmilling) will probably continue to experience cycles of expansion and contraction (in response to market cycles). Further development is not likely given the independent sale schedule (with the last sale in 1999). In the longer term, development of value added manufacturing will depend largely on the volume of timber made available to independents after expiration of the long term contracts. Until the contract with KPC expires, there will be a serious constraint on the volume of timber that can be made available to independents. (McDowell Group, 1993) The Native holdings on Prince of Wales are primarily divided between local Native corporations and Sealaska, which is a regional Native corporation. p.5 SECTION IV The local Native corporations have significantly depleted their timber reserves whereas the regional corporation, Sealaska, has managed their timber reserves differently. Sealaska maintains that they have five to ten years of timber remaining to harvest. The Tongass National Forest has significant reserves of timber on Prince of Wales Island to last for many years. What will determine how much of this will be harvested and when is dictated by the federal government and the world timber market. The Forest Service states that the harvest levels wili remain the same after the contracts end in the next ten years. With the closing of some of the lower 48 states forests to logging (ie: spotted owl habitat), Alaska may experience an increase in sales, depending on market fluctuations. The Klawock sawmill will be opening by the end of 1994. They plan to have 30-35 employees, which will create about the same number of jobs elsewhere to cut and truck the timber to the mill. Though they will mill some of the high quality timber into lumber, most of their efforts will be towards the woodchip industry. It is estimated that the amount of timber needed for woodchip production, could be endlessly supplied from the Tongass National Forest, based upon the forests rate of growth. Seafood Industry Outlook Commercial Fishing: The two components of the seafood industry (commercial fishing and seafood processing) have differing development potential. Participation in the commercial fishing industry is constrained by the limited entry form of management, in the case of salmon, and the newly imposed quota system in the halibut and blackcod fisheries. Approximately 270 Prince of Wales Island residents currently hold commercial fisheries permits. Participation in commercial fishing is limited by resource constraints and management programs. Therefore changes in economic impact of fishing overall will be somewhat limited. It will be possible to continue to increase the economic benefit of the fishing industry on Prince of Wales Island by providing more of the goods and services consumed by commercial fishermen. This effort is underway with such projects as Craig's North Cove Harbor expansion and other marine improvements including amenities such as showers and restrooms, improved lighting and electrical systems on the docks and the new floating bridge section for net repair. Changes in the level of economic impact of commercial fishing will occur primarily as a result of changing market conditions. As in the past, fish prices (and therefore fishermen's earnings) will rise and fall in response to market conditions. (McDowell Group, 1993) Seafood Processing: Prince of Wales Island area certainly has the resource base necessary to expand the volume of seafood processing that occurs on the Island. There are specific things they can do to encourage seafood processing activity. Access to markets is one of the most important factors of seafood processing business development. Prince of Wales Island will make a major step forward p.6 SECTION IV with instrumentation of the Klawock airport. The 5,000 foot runway is capable of handling large aircraft, including 737 jets. The instrumentation may be installed in the next year or two. Public and private entities on Prince of Wales Island are actively seeking development in the seafood processing industry (this is an important consideration in forecasting the outlook for the industry). For example, Klawock Heenya, in joint Venture with the Tribal Council, is renovating the old cannery to house a variety of businesses related to the seafood and fish products industries. (McDowell Group, 1993) The Federal Government gave a grant to a coalition in the Native community to refurbish the original cannery (1878). The Bureau of Indian Affairs (BIA) gave a grant to the City of Klawock to improve its freshwater supply in order to sustain the canneries needs. Federal grants have set up a similar fish processing plant in the small community of Kake on an island north of Prince | of Wales Island. Klawock is also putting in cold storage. The Native coalition estimates the cannery will begin operations in early 1995. Tourism Industry Outlook Prince of Wales Island has the potential to become a popular visitor destination in Southeast Alaska for residents and visitors alike. Existing infrastructure on the island includes an extensive road system (gravel), an airport which now serves small aircraft, limited ferry service, limited commercial transportation, small boat harbors, thirteen fishing lodges, three motels, three bed and breakfasts, a limited trail system and a few ground tour opportunities. The visitor industry on the Island has the potential to increase up to six-fold in the next five to ten years, if adequate infrastructure development takes place. Some necessary development is starting to occur, such as airport improvements in Klawock and the cave and trail system. Other developments, such as improved ferry service remain to be seen. Infrastructure development plans suggest growth opportunities for the visitor industry on the Island. (McDowell Group, 1993) Mining Industry Outlook The outlook for mining development on Prince of Wales Island is very positive. The Island has a long history of mining activity and the area has been the target of intense exploration activity in recent years. Sealaska is the largest holder of mineral rights on the Island. In addition to significant high-grade limestone deposits, Sealaska has identified a number of exploration targets which include many copper mines that include minor gold and silver. Other mining companies are also aggressively pursuing mineral rights on the Island with prospects for mining copper, zinc, gold, silver, uranium and rare earth elements. Ultimately, market forces will drive mine development on Prince of Wales. As the U.S. and other international economies recover from the recession, base metal prices are expected to rise from their current low prices, by historical standards. The combination of a well developed road network, access to tide water, p.7 SECTION IV significant private land holdings with mineral development potential, and significant public lands available to mineral entry all bode well for future : mining industry activity on Prince of Wales Island. This industry is very likely to play a role in economic development of the Island over the next twenty years. (McDowell Group, 1993) R.W. Beck and Associates completed a load forecast for AP&T’s Craig and Klawock Service Area in October 1992. This study was done for and at the request of the State of Alaska in support of the state’s effort to mediate issues between Sealaska Corporation and AP&T. The study was filed with FERC and accepted by Sealaska. Subsquently, a 50 year lease was completed between Sealaska and AP&T and all issues resolved. BBL Hydro will produce approximately 23,100 MWh of electric energy per year based on the historical rainfall amounts. The lake is used as a storage device similar to a reservior so that all of the annual rainfall can be used. Attached are two exhibits from the report - the history of the energy sales from 1980 to 1991 on Table A-1 and the projection of the energy sales from 1992 to 2012 for Medium Case Load Forecast on Table B-1. The third page attached is the statistics for the actual results from 1992 through September of 1994 and a revised forecast for 1995. A comparison is as follows: (All amounts are MWh or Megawatt hours of sales) Year R.W. Beck Revised for Study Actual (Table A-1) (Page 3 attached) 1988 7,850 1989 8,464 1990 9,434 % of 19091 10,120 Study (Table A-2) 1992 «17,797 11,166 94.7% 1903 «12,464 11,816 94.8% 1994 «= 12,998 13,366 102.8% 19958 =: 113, 537 14,629 108.1% Conclusion: The 1992 study demonstrated the favorable economic results for BBL Hydro. The updated results of the electric sales indicates that the study was conservative for 1994 and future years. The lower costs and therefore lower electric rates should therefore be available sooner than the study projected. Based on the capacity of the project as discussed above of 23,100 MWh, AP&T would be using 68% of the capacity of BBL Hydro when it comes on line in 1995. At that level, there is an additional 7,500 MWh of available energy to be sold. HOWARD GARNER, REVISED 29-Sep-94 qseoer0g peoyT pezepdpa A NOILOGS APT-4 16-Oct-92 0626 AM CALENDAR EAB 1980 1981 1982 1963 1984 1985 1986 1987 1968 1989 1990 1901 1980-01: 1960-85: 1985-91: Black Bear Lake 609,505 1,000,621 1,208,100 1,244,399 1,428,993 1,581,479 2,132,106 2.326.769 2,568,665 2,743,300 3,030,175 3.039,733 OM 714,016 811,964 674359 1,463 865 1,950,508 2,168,704 1,970,293 1,991,855 2325377 2,485,027 2.877.248 3.250,556 GROWTH RATES: Gov 400 262 574,931 664,571 619,000 748,524 828,397 721811 730216 809,420 924,764 1,031,675 1,102,960 AP&T CRAIG/ KLAWOCK TABLE A-1 HISTORICAL OPERATING RESULTS RETAIL, SALES 2.022.783 2,387,796 2,785,080 3.327.264 4,437,115 4,578,580 4824,210 5,048,640 5,733,462 6,159,001 6,939,008 7,402,249 BES 2M GOV 550,365 640,548 804,771 946,816 1,137,401 1,249,957 1,363,641 1,485,874 1,550,278 660,495 720,988 758,793 755.233 757,553 735,298 716,161 718,770 695,681 396,813 324,328 315.230 333,101 319,528 49,496 60,114 77872 77,999 1,556,673 1,604 B62 1,878,794 2.035.150 2,214,482 2,004,753 2,139,916 2.282.516 2,523,958 R. W. Beck and Associates AP&T SYSTEM AP&aT SYSTEM UNE AP&aT ENERGY Pagetol6 APaT LOSSES AS% AP&T PEAK DEMAND =LOAD SALES OWNUSE LOSSES REQUIREMENTS OFROTS kW FACTOR 2,022,783 2,387,736 2,765,030 3,327,264 4,137,115 4,578,580 4 824,210 5,048,840 7 850,262 8,464,291 9,433,608 10,120,249 101,346 127,064 129,558 143,613 156,791 165,449 152,952 161,782 179,943 189,560 215,997 194,930 202,735 199,882 271,222 303,958 155,003 235,011 216878 231,838 333,605 411,460 437,225 453,781 2,326,864 2,714,682 3,165,810 3,774,835 4,448,909 4.979.040 5,194,040 5,442,460 836,900 9,065,320 10,087,120 10,768,960 Average: 1986-91 6™% 74% 66% B1i% 35% 47% 4.2% 4% 4.0% 45% 43% 42% 425% NA NA NA NA NA NA 675 BK 800 63.5% 1,020 55.7% 960 «618% 1,050 2% 1,600 7% 1880 55.0% 2,020 57.0% 2,040 603% Average: 588% WS-1580-DA1-AB APT-1 16-Oct-92 01:56 PM a __ENEAGY SALES AND REQUIREMENTS (VM) EG AWK CALENDAR BES 3.278.755 3,428,650 3,619,797 3.817.240 3,941,503 3,880,720 4,044,253 4.193.479 4348211 4,508,652 4,675,013 4BA7 S12 5.026377 5211841 5,404,148 5,603,552 5.810.313 6,024,703 6,247,003 6,477,506 6,716,515 MEDIUM CASE SQM 3,915,515 4,104,134 4233967 4357 883 4,505,528 4581579 4.097,05 4,202,131 4,900,197 5.016.608 5,131,299 5,246,466 5364467 8,485,373 5,000,256 5,736,188 5808246 5,999,505 6,136,046 6.275.949 6,419,208 Gov 1,517,334 1,719,197 1.762.177 1,808,232 1851388 1,997,672 2.158365 2211 £04 2.285 ,600 220,095 237,151 2,435,003 2.494.286 2,555,005 2.617.287 2,681,078 2,746,448 2.813.496 2,862,062 2.952.427 3.024.513 AP&T CRAIG /KLAWOCK TABLE B-1 PROJECTED OPERATING RESULTS BETAIL 8,711,605 9.251.981 9,615,941 9,981,354 10.208,419 10,450,971 10,901,254 11,207,444 11,523,007 11,848,244 12,183,462 12,528,961 12,885,130 13.282.249 13,630,601 14,020,818 14,423,007 14837644 15,265,131 15,705,882 16,160,328 BETAIL SALES FOR RESALE BES OM GOV SALES = CIHREA) 1,613,209 1,700,812 1,810,375 1,924,790 2,003,776 1,989,074 2,080,914 2,164,821 2,284,008 2,387,761 2,496,194 2,609,551 2,728,056 2,851,943 2,981,456 3,116,850 3,258,392 3,408,362 3,561,052 3,722,767 3,801,825 1,083,093 1,123,491 1,166,726 1,207 264 1,257,272 1,225,667 1,262,231 1,293,787 1,326,132 1,359,285 1,390,267 1,428,009 1,463,802 1,500,397 1,537,907 1,576,354 1,615,763 1,856,157 1,607,561 1,740,000 1,783,500 92,949 95,273 97,655 100,096 102,598 105,163 107,792 110,487 113,249 116,081 118,963 121,957 125,008 128,191 131334 134,618 137,983 141,433 144,969 148,593 152,308 2,799,252 2.919.576 3,074,756 3.232.158 3,363,646 3.319.904 3,459,938 3,589,095 3,723,419 3,863,127 4,008,444 4,158,608 4316864 4,490,471 4,650,697 4827822 $5,012,138 5,203,952 5,403,582 5.611.360 5,827,633 3,079,177 3,211,534 3,382,232 3,555,374 3,700,010 3,651,895 3,805,931 3,948,005 4,095,761 4,249,439 4,409,288 4,575,568 4,748,550 4928518 5,115,766 5,310,604 5513352 8,724,347 5.943.940 6.172.496 64103968 APaT SYSTEM AP&T SYSTEM UNE APaT ENERGY APaT UNE LOSSES AS% Page tos APaT PEAK DEMAND LOAD SALES QWNUSE LOSSES REQUIREMENTS OFROTS th) FACTOR 11,790,782 12,463,515 12,998,173 13,536,728 13,996,429 14,111,865 14,707,185 15,155,449 15,618,760 16,097,684 16,592,751 * 17,104,549 17,633,680 18,180,767 18,746,457 19,331,422 19,936,359 20,561,991 21,209,071 21878378 (22,570,722 235,816 249.270 258,963 270,735 279,969 262.237 294,144 303,109 312375 321,954 331,855 342,001 352,674 363,615 374,929 386,628 398,727 411240 424,181 437,568 451,414 555,587 587.266 612,479 637 856 650,612 064,957 683,009 714,131 735,963 758,530 761,857 805,974 630,906 656.685 863,341 910,905 939,410 968,800 990,380 1,030,918 1,083,542 12,582,184 13,300,071 13,870,616 14,445,319 14,938,010 15,050,059 15,694,337 16,172,680 16,687,107 17,178,167 17,708,463 18,252,614 18,817,260 19,401,068 20,004,727 20,628,955 21,274,495 21,942,121 22,692,633 23,346 B64 45% 45% 45% 45% 45% 45% 45% 45% 45% 45% 45% 45% 45% 45% 45% 45% 45% 45% 45% 45% 45% 2394 600% 2530 60.0% 2.699 60.0% 2,748 60.0% 2.842 60.0% 2.865 60.0% 2986 60.0% 3,077 60.0% 371 60.0% 3.268 60.0% 3369 860.0% 3,473 60.0% 3.580 60.0% 3.601 60.0% 3800 60.0% 3,925 60.0% 4.048 60.0% 4175 60.0% 4306 60.0% 4442 60.0% 4583 60.0% Black Beer Lake R. W. Beck and Associates WS. 1560-DAI-AB ( SS CRAIG/KLAWOCK KWH STATISTICS FOR 1994 COMPARED TO 1993 AND PRIOR TOTALS BY MONTH: 1994 RESIDENTIAL JAN 314,930 FEB 293,780 MAR 323,600 APR 276,064 MAY 259,023 JUN 270,087 TOTAL = 1,737,484 JUL 255,531 AUG 242,119 SEP 280,410 ocT 255,966 NOV 289,689 DEC 338,914 ANNU 3,400,113 -15.6% -1.8% 16.4% 5.4% 4.7% 12.1% 0.4% 18.2% 4.3% 18.2% 3.0% 3.0% 3.0% 3.8% COMMERCIAL 338,771 332,571 360,079 340,205 367,924 384,664 2,124,214 475,971 536,402 437,848 332,599 350,083 377,805 4,634,922 4.2% 4.9% 24.1% 5.9% 12.9% 10.4% 8.6% 19.4% 8.5% 9.9% 8.0% 8.0% 8.0% 9.6% GOVERNMENT 123,497 116,967 120,479 102,152 95,132 101,679 659,906 90,663 106,684 123,572 102,786 118,880 132,204 1,334,694 18.5% 9.3% 4.0% 15.3% 0.8% 20.5% 5.4% 20.1% 25.0% 41.9% 3.0% 3.0% 3.0% 3.6% RESALE 279,900 273,000 291,000 246,600 270,588 349,024 1,710,112 361,800 346,079 369,384 374,900 401,900 432,500 3,996,675 11.7% 0.5% 16.7% 8.4% 14.3% 50.5% 8.3% 75.0% 56.1% 62.4% 59.6% 53.5% 47.9% 32.2% TOTAL 1,057,098 1,016,318 1,095,158 965,021 992,667 1,105,454 6,231,716 1,183,965 1,231,284 1,211,214 1,066,251 1,160,551 1,281,422 13,366,404 1995 ESTIMATE USING PLUS 140,000 KWH IN KLAWOCK FOR THE FIRST FIVE MONTHS AND A 4% GROWTH ABOVE THE 1994 BASE: % CH 3,536,118 4.0% 4,820,318 4.0% HOWARD GARNER, REVISED 29-Sep-94 1,388,082 4.0% 4,884,542 22.2% 14,629,060 9.4) % CHG 11.6% 0.3% 17.3% -3.8% 9.6% 22.0% 4.5% 32.0% 19.1% 27.5% 19.6% 18.1% 16.5% 13.1% ACTUAL DATA TO SEPTEMBER 1994 AND ESTIMATE FOR BALANCE % CHG JAN FEB MAR APR MAY JUN TOTAL JUL AUG SEP ocT NOV DEC ANNUA % CHG 1991 1993 RESIDENTIAL COMMERCIA GOVERNMEN RESALE TOTAL 373,007 353,726 151,472 317,040 1,195,245 299,107 317,066 129,019 274,320 1,019,512 278,102 290,152 115,867 249,300 933,421 291,929 321,192 120,597 269,100 ‘1,002,818 247,386 325,780 95,905 236,700 905,771 240,931 348,565 84,359 231,900 905,755 1,730,462 1,956,481 697,219 1,578,360 5,962,522 216,231 398,507 75,486 206,700 896,924 232,108 494,236 85,357 221,700 ‘1,033,401 237,156 398,339 87,111 227,400 950,006 248,511 307,962 99,792 234,900 891,165 281,251 324,151 115,417 261,900 982,719 329,043 349,819 128,353 292,500 ‘1,099,715 3,274,762 4,220,495 ‘1,288,735 «3,023,460 _—‘11,816,452 3.4% 14.8% 6.6% 3.1% 5.8% 1992 RESIDENTIAL COMMERCIA GOVERNMEN RESALE TOTAL 311,610 284,022 105,234 275,400 976,266 293,811 270,021 115,309 243,000 922,141 265,598 258,817 113,846 243,000 881,261 270,179 259,667 102,957 248,400 881,203 247,519 272,498 119,939 232,200 872,158 234,632 310,981 95,252 216,000 856,865 1,623,349 1,656,006 652,537 1,458,000 5,389,892 233,305 364,738 93,590 223,200 914,923 236,173 442,905 96,603 230,400 ‘1,006,081 260,218 377,006 125,131 245,360 ‘1,007,715 251,762 287,281 133,152 241,280 913,475 283,723 291,184 151,174 263,720 989,801 279,241 265,847 127,308 271,800 944,196 3,167,233 3,685,595 ‘1,379,495 —-2,933,760 11,166,083 4.2% 13.1% 25.1% 7.0% 10.3% 3,039,733 3,259,556 1,102,960 2,718,000 10,120,249 SECTION VI Alaska Power & Telephone Company Financial Profile The following financial results over the last five years demonstrate the success of the company's growth strategy. (Thousands of dollars, except per share amounts and statistics) 1993 1992 1991 1990 1989 Revenue 9,928 8,650 7,208 6,004 5,346 Expenses 7,729 6,735 5,508 4,530 4,063 Net Income After Tax 1,539 1,278 1,104 958 811 Eamings Per Share 1.72 1.51 1.31 Tat 0.96 Net Plant & Equipment 13,925 12,190 10,217 7,678 6,532 Total Assets 18,648 16,106 12,954 10,119 8,497 Debt 6,961 6,658 5,479 3,572 1,856 Equity 8,091 6,190 4,872 3,818 6,532 Ratios ROE 17.89% 17.75% 17.83% 16.70% . 16.83% Equity/Total Capital 53.52% 48.43% 47.66% 53.03% 72.20% Net Income/Revenue 15.50% 14.77% 15.32% 15.96% 15.17% The reduction in equity from 1989 to 1990 was the result of an implementation of a leveraged ESOP. The company loaned cash to the plan in order to purchase the stock. The company took a note receivable collateralized by company stock. In accordance with GAAP, the debt incurred by the company was treated as a contra equity account. The above ratios are adjusted to reflect the addition of the contra equity account. The above financial information shows an approximately 15 percent increase in total revenue each year. After tax net income has also averaged 15 percent of total revenues during the five year period. The increase in revenues is from the addition of new service territories and from an increase in usage in existing service areas. AP&T STATUS OF LINES OF CREDIT AS OF 9/30/94 LONG TERM DEBT IS PRIMARILY THE 15 YEAR COBANK NOTE SECURING TELEPHONE ASSETS FOR $6 MILLION WHICH HAS BEEN PAID DOWN TO $5.7 MILLION. SEAFIRST U.S. BANK RTFC TOTAL BALANCE AT 1/1/94 300,000 0 0 300,000 NET BORROWED IN 1994 1,300,000 1,000,000 Q 2,300,000 BALANCE AT 9/30/94 1,600,000 __ 1,000,000 0 2,600,000 LINE OF CREDIT 3,000,000 1,000,000 41,000,000 5,000,000 AVAIL LINE OF CREDIT 1,400,000 0 1,000,000 2,400,000 PER ATTACHED FORECAST: 1994 NEW DEBT 3,979,000 1995 NEW DEBT 6,171,000 TOTAL LINES NEEDED FOR THE END OF 1995 10,450,000 HOWARD GARNER, 04-Oct-94 SAY _ 12,000,000 ALASKA POWER & TELEPHONE CO. SSUME: BEGIN HYDRO CONST IN 1994. START KWH SALES IN 1995. (THOUSANDS OF DOLLORS, EXCEPT PER SHARE AMOUNTS AND STATISTICS) ESTIMATE ESTIMATE _ ESTIMATE 1996 1995 8,570 8,009 4,692 4,426 13,262 12,436 7% 12% 5,999 6,247 70% 78% 2,815 2,656 60% 60% 1,250 1,100 0 (500) Q Q 1,250 600 9% 5% 10,064 9,503 76% 76% 1,891 1,692 14% 14% 3,198 2,933 24% 24% 1,087 997 8% 8% 2,111 1,936 16% 16% 2.29 2.10 HOWARD GARNER, 04-Oct-94 1994 6,917 4,176 11,093 12% 5,741 83% 2,422 58% 550 (400) (24) 126 1% 8,289 75% 1,331 12% 2,804 25% 953 9% 1,851 17% 2.00 STATEMENTS OF INCOME: REVENUES: EXPENSES: ELECTRIC PHONE TOTAL % INCREASE ELECTRIC % OF REVENUES PHONE % OF REVENUES Gross Interest Expense Interest Capitalized Interest Income from ESOP INTEREST EXPENSE % OF REVENUES TOTAL EXPENSES % OF REVENUES MEMO: DEPRECIATION INCLUDED IN ABOVE EXPENSES % OF REVENUES INCOME BEFORE TAXES % OF REVENUES INCOME TAXES % OF REVENUES NET INCOME % OF REVENUES NET INCOME PER COMMON SHARE ACTUAL 1993 5,834 4,094 9,928 15% 5,078 87% 2,403 59% 492 (158) (86) 248 2% 7,729 78% 1,213 12% 2,199 22% 7% 1,539 16% 1.72 ACTUAL 1992 5,494 3,156 8,650 20% 4,396 80% 2,072 66% (15) 272 3% 6,735 78% 1,086 13% 1,915 22% 637 7% 1,278 15% 1.51 ALASKA POWER & TELEPHONE CO. SSUME: BEGIN HYDRO CONST IN 1994. START KWH SALES IN 1995. (THOUSANDS OF DOLLORS, EXCEPT PER SHARE AMOUNTS AND STATISTICS) ESTIMATE ESTIMATE _ ESTIMATE ACTUAL ___ ACTUAL 1996 1995 1994 1993 1992 PER COMMON SHARE: 0.57 0.50 0.48 CASH DIVIDENDS 0.45 0.36 14.46 12.74 11.14 BOOK VALUE AT END OF YEAR 9.62 8.52 FINANCIAL CONDITION INFORMATION: 28,927 27,480 19,833 PROPERTY & EQUIPMENT, NET 13,925 12,190 3,339 9,339 7,239 PLANT ADDITIONS 2,948 3,059 33,650 32,203 24,556 TOTAL ASSETS 18,648 16,106 13,070 11,495 10,020 COMMON STOCKHOLDER’S EQUITY 8,091 6,190 16,984 W7it2 10,940 DEBT AT YEAR END 6,961 6,658 30,054 28,607 20,960 TOTAL EQUITY AND DEBT 15,052 12,848 43% 40% 48% PERCENT OF EQUITY 54% 48% 57% 60% 52% PERCENT OF DEBT 416% 52% USE OF NET INCOME: 536 460 432 CASH DIVIDENDS PAID 390 303 1,575 1,476 1,419 NET INCOME REINVESTED 1,149 975 CASH FLOW: 0 0 510 INCREASE IN EQUITY FROM THE ESOP 498 312 NOTE REDUCTION 3,466 3,168 3,260 TOTAL INTERNAL FUNDS TO INVEST 2,860 2,373 (127) 6,171 3,979 TOTAL NET DEBT FUNDS TO BORROW 88 686 HOWARD GARNER, 04-Oct-94 Section VII FINANCIAL PROJECTIONS OF BBL HYDRO, INC. The next page entitled "Work Order Analysis" is the detail project budget for the construction of BBL Hydro. This has been prepared on the same basis as it will be booked which includes the GAAP and FERC accounting requirements for the capitalization of overhead and AFUDC. The next two pages are the detail providing for the estimates of the AFUDC amounts. Those pages also provide an estimate of the timing of the cash flow by month by analyzing the investment at the end of each period. In summary, AP&T will have spent $1.45 million in 1993 and prior, $3.4 million in 1994 and $6.2 million in 1995 for BBL Hydro. This information is also tied into the financial projections of AP&T consolidated financial results presented in the prior section. The profit and loss results of BBL Hydro, Inc. will be based upon a rate case to be filed with the APUC in 1994. This case will provide for a power supply contract between AP&T and BBL. These results will be based upon a full rate of return on the investment in BBL. Howard Garner, October 3, 1994 BLACK BEAR HYDRO INC. 3 WORK ORDER ANALYSIS BBLSTAT.WK1 WORK TOTAL ORDER TITLE BUDGET BB Preliminary Survey Costs 1,168,085 BB318 Turbine 691,000 BB326 Generator 384,000 BB327 Switchgear 455,000 GENERATION TOTAL 1,530,000 BB307 Power House Foundation 300,000 BB329 Power House Structure 100,000 BB308 Penstock 250,000 BB309__ Siphon Intake BB310 Vacuum House BB315 Land 25,000 BB312 Roads 150,000 BB321 Equipment BB328 Civil Construction — Whitewater 2,900,000 CIVIL CONSTRUCTION TOTAL 3,725,000 BB304 Klawock Substation : 202,000 BB305___ Black Bear Substation 150,000 BB306_ Craig Substation 120,000 SUBSTATION TOTAL 472,000 BB311 Airport Overbuild 85,000 BB322 Access Road to Powerhouse 250,000 BB323__ Big Salt Road Transmission 350,000 BB324 Klawock Overbuild Transmission 80,000 BB325_ Klawock to Craig Rebuild 50,000 TRANSMISSION TOTAL 815,000 BB314 Engineering — AP&T 100,000 BB330 Engineering — Bingham 400,000 BB331 Engineering — Other ENGINEERING TOTAL 500,000 BBL HYDRO INC. CONSTRUCTION 8,210,085 BB320 Radio Communications 15,000 BB403_— Fiber Optics 405,000 COMMUNICATIONS TOTAL 420,000 BB301 Wildlife Studies 57,000 BB302 Agency Compliance 34,000 BB303 Permitting 40,000 BB313 Water Monitoring 10,000 BB316 FERC Articles 25,000 BB317 FERC Compliance 35,000 REGULATORY TOTAL 201,000 BB319 Project Management 65,000 BB401_ Bond Finance 300,000 BB402 A.F.U.D.C. 800,000 BB404_ General and Administrative 600,000 GENERAL AND ADMIN TOTAL 1,765,000 GRAND TOTAL 10,596,085 CONTINGENCY (4%) 403,915 GRAND TOTAL 11,000,000 AFUDC CALCULATIONS FOR YEAR ENDED 12/31/94 (ACTUAL TO 8/31/94 AND ESTIMATE FOR REMAINING MONTHS) ACCOUNTING POLICY: APPLIES TO ALL PROJECTS OF MORE THAN ONE YEAR DURATION. USE THE BEGINNING OF THE MONTH INVESTMENT PLUS END OF THE MONTH DIVIDED BY TWO FOR AVERAGE -TIMES AFUDC RATE TIMES 1/12 (FOR 1 MONTH). RESULT TO APPROXIMATE A THIRTEEN MONTH AVERAGE. AP&T BBL HYDRO, INC.: INVESTMENT AVERAGE RATE AFUDC BEG OF YEAR 1,450,718 JAN 1,518,590 1,484,654 11.31% 13,993 FEB 1,602,258 1,560,424 11.31% 14,707 MAR 1,682,659 1,642,459 11.31% 15,480 APR 2,165,245 1,923,952 11.31% 18,133 MAY 2,289,044 2,227,145 11.31% 20,991 JUN 2,805,320 2,547,182 11.31% 24,007 JUL 3,120,384 2,962,852 11.31% 27,925 AUG 3,567,142 3,343,763 11.31% 31,515 SEP 3,900,000 3,733,571 11.31% 35,189 OCT 4,200,000 4,050,000 11.31% 38,171 NOV 4,500,000 4,350,000 11.31% 40,999 DEC 4,800,000 4,650,000 11.31% 43,826 TOTAL 324,936 GOAT LAKE PROJECT: INVESTMENT AVERAGE RATE AFUDC BEG OF YEAR 505,200 JAN 530,103 517,652 11.31% 4,879 FEB 554,490 542,297 11.31% 5,111 MAR 583,594 569,042 11.31% §,363 APR 605,367 594,481 11.31% 5,603 MAY 623,842 614,605 11.31% 5,793 JUN 691,931 657,887 11.31% 6,201 JUL 710,202 701,067 11.31% 6,608 AUG 717,955 714,079 11.31% 6,730 SEP 726,000 721,978 11.31% 6,805 OCT 735,000 730,500 11.31% 6,885 NOV 745,000 740,000 11.31% 6,975 DEC 760,000 752,500 11.31% 7,092 TOTAL 74,045 TOTAL AFUDC RETURN REDUCE BY MONTH: PORTION INTEREST JAN 18,872 13,229 5,643 FEB 19,818 13,892 5,926 MAR 20,843 14,611 6,232 APR 23,736 16,639 7,097 MAY 26,784 18,776 8,008 JUN 30,208 21,176 9,032 JUL 34,533 24,208 10,325 AUG 38,245 26,810 11,435 SEP 41,994 29,438 12,556 OCT 45,056 31,584 13,472 NOV 47,974 33,630 14,344 DEC 50,918 35,694 15,224 398,981 279,686 119,295 TOTAL 11.31% = 7.93% 3.38% AFUDC ESTIMATE FOR YEAR ENDED 12/31/95 ACCOUNTING POLICY: APPLIES TO ALL PROJECTS OF MORE THAN ONE YEAR DURATION. AP&T USE THE BEGINNING OF THE MONTH INVESTMENT PLUS END OF THE MONTH DIVIDED BY TWO FOR AVERAGE -TIMES AFUDC RATE TIMES 1/12 (FOR 1 MONTH). RESULT TO APPROXIMATE A THIRTEEN MONTH AVERAGE. BBL HYDRO, INC.: INVESTMENT AVERAGE RATE AFUDC BEG OF YEAR 4,800,000 JAN 5,500,000 5,150,000 11.06% 47,466 FEB 6,000,000 5,750,000 11.06% 52,996 MAR 6,500,000 6,250,000 11.06% 57,604 APR 7,000,000 6,750,000 11.06% 62,213 MAY 8,000,000 7,500,000 11.06% 69,125 JUN 9,000,000 8,500,000 11.06% 78,342 JUL 10,000,000 9,500,000 11.06% 87,558 TOTAL 455,304 GOAT LAKE PROJECT: INVESTMENT AVERAGE RATE AFUDC BEG OF YEAR 760,000 JAN 770,000 765,000 11.06% 7,051 FEB 780,000 775,000 11.06% 7,143 MAR 800,000 790,000 11.06% 7,281 APR 820,000 810,000 11.06% 7,466 MAY 840,000 830,000 11.06% 7,650 JUN 860,000 850,000 11.06% 7,834 JUL 880,000 870,000 11.06% 8,019 AUG 900,000 890,000 11.06% 8,203 SEP 930,000 915,000 11.06% 8,433 OCT 960,000 945,000 11.06% 8,710 NOV 990,000 975,000 11.06% 8,986 DEC 1,020,000 1,005,000 11.06% 9,263 TOTAL 96,039 TOTAL AFUDC RETURN REDUCE BY MONTH: PORTION INTEREST JAN 54,517 38,216 16,301 FEB 60,139 42,157 17,982 MAR 64,885 45,484 19,401 APR 69,679 48,845 20,834 MAY 76,775 53,819 22,956 JUN 86,176 60,409 25,767 JUL 95,577 66,999 28,578 AUG 8,203 5,750 2,453 SEP 8,433 5,912 2,521 OCT 8,710 6,106 2,604 NOV 8,986 6,299 2,687 DEC 9,263 6,493 2,770 551,343 386,491 164,852 TOTAL 11.06% = 6.96% 4.10% 62.90% 37.10% Section VIII BBL HYDRO, INC. RISK ASSESSMENT This presentation is a discussion of the potential risks of failure for the hydroelectric project of BBL Hydro on Prince of Wales Island. This discussion will focus on four areas - construction, sales, operations and regulatory. Sources of the information are the internal resources of AP&T, the Parent company, and its consultants. CONSTRUCTION: 1. Will the project work when it is completed and produce the electricity according to its design? There is no risk that the project will not work. This is a very simple process of letting the water that is falling down a 1,500 foot hill flow through a steel pipe and turn a turbine. This has been done thousands of times throughout the world and there are hundreds of small installations such as at BBL. The process is relatively far along on the manufacture of the equipment and at the construction site. Kvaerner in Norway is under contract to ship the turbine by 1/15/95. This is one of the most significant items and Kvaerner is a world wide leader in manufacturing small hydro turbines. Kvaerner has just notified us (at 9/28/94) that the manufacture is almost complete and requested permission to ship early at 11/1/94. The other primary equipment needs are the generator, station transformers and the switchgear. Ideal has the contract to build the generator which they manufacture about 5 to 10 per year. Ideal is the only domestic manufacturer and has a firm shipping date of 1/15/95 and they are currently on schedule. Transformers have been ordered from AAB and they are available on a three month lead time. Phoenix Controls of Seattle is making up the switchgear and they have requested to be allowed to ship by 12/31 or sooner to get the machine into this year's business. The construction on site is being done by Whitewater Engineering under the close supervision of key AP&T Personnel. The work of laying and welding the pipe, pouring concrete and the other on site assembly is on schedule as of 10/1/94, and completion is expected by 7/1/95. In summary, this is a simple process of getting the water to flow through the turbine which transfers the energy to the generator to produce electricity. Adequate safeguards have Page 1 Howard Garner, October 3, 1994. BBL HYDRO, INC. RISK ASSESSMENT been built into the design and construction to ensure that the system will work as expected. The potential worst case would consist of delays of a few weeks. 2. This sounds too good. Are there any significant issues with construction? At this point in time, a major issue is price or the total cost of the project. Each of the significant suppliers or contractors are under contract which defines the items, the price and the delivery schedule. Quality control is happening to ensure satisfactory performance at the right time. The costs are final for most of the equipment and materials including the pipe (already delivered to the site), turbine, generator, transformers, switchgear, etc. The civil construction is under contract with a guaranteed maximum price of $3,500,000 from Whitewater. Any cost overruns above that amount will mean that Whitewater will lose its profit and other benefits of the job. There is a target amount of $3,150,000 with Whitewater to receive 50% of any costs under $3,500,000 down to the target price (this provides a potential additional profit to Whitewater of $175,000). At 10/1/94, Whitewater's work is about 30% complete and they are on track to come in at or below the target amount of $3,150,000 (this would result in total cost paid to Whitewater of $3,325,000). 3. What are the timing issues of construction? Will the project be completed to come on line by the middle of 1995? The equipment suppliers and contractors discussed above are on schedule at this time. Other factors which could affect the timing include weather, regulatory agencies, delivery problems of barge companies, or the completion of the transmission line to deliver the power. Weather seems to be a small potential problem which might result in delays of a few days. There is a planned shutdown of outside activity during the three months beginning 12/1/94. BBL at about 1,800 feet elevation does freeze up during the winter, however other work can continue at sea level. This area is described as a maritime climate with almost constant rain and fog during the winter months. There are several regulatory agencies which influence the Page 2 Howard Garner, October 3, 1994. BBL HYDRO, INC. RISK ASSESSMENT project. All of these are actively managed by the company to insure that the needs of the agencies are met on a timely basis. FERC is the key agency which provides review and approvals throughout the construction. Environmental issues are reviewed by several state agencies covering water quality, soil erosion, wildlife, job safety, etc. The Alaska Public Utilities Commission (APUC) approves the power supply contract of BBL and the eventual rates to the electric customers of AP&T. There are numerous issues which may arise in regard to the various regulatory agencies. Company management is constantly involved to make sure that their needs are met. For example, our President, Bob Grimm, went to Washington, D.C. in August to get a resolution of a dispute between the national and regional offices and staff of FERC. He was successful in obtaining a timely resolution so the project could continue to be on schedule. This is just one example of management's dedication to maintaining our schedule. Delivery of key components to the island is not a problem with weekly barges from Seattle. Minor delays of a few days may be experienced due to weather or storms. AP&T has had numerous shipments over the past and we have experienced no losses of equipment or materials. The transmission line work is being done by AP&T personnel with the work broken down into the following major phases: 1. Work was completed in September 1994 for the overbuild of the T-HREA system in Klawock for the 34.5 KV line with rehanging of the T-H distribution onto the new taller poles. 2. Two miles of overbuild onto the existing distribution line from Klawock to the Craig/Klawock regional airport was also completed in 1994 for the hanging of the 34.5 KV transmission line. 3. Work scheduled for the fall of 1994 includes the construction of four miles of line from the BBL powerhouse along the access road out to the Big Salt highway. 4. The next project is to upgrade the Craig/Klawock 24.9 KV transmission line to handle 34.5 KV transmission. Work can begin after some nearby logging is completed to replace the insulators and wire on this line. This will be completed during the first quarter of 1995 for the four miles from Klawock to the site of what will be the Craig Page 3 Howard Garner, October 3, 1994. BBL HYDRO, INC. RISK ASSESSMENT substation. The two miles from that substation into Craig will remain as is and will be part of the 12.5 KV distribution line in Craig. 5. Construction of the substations in Craig and Klawock will be ready to begin this fall after building permits and local approvals are completed. This work will be contracted out to local contractors for site preparation, fencing and any concrete work. As the transformers arrive in 1995, they will be placed in position at each of the sites. 6. The last piece of the line work to be done will be the seven miles from the regional airport along the Big Salt highway to the turnoff to BBL. The highway department is scheduling major work in future years on this road including realignment and other improvements. We have a preliminary layout of the changes and will have a final layout before the end of 1994 from DOT. This work will take place during the first and second quarters of 1995. The substation and line construction is an important part of the BBL project. The AP&T equipment and personnel are adequate to do the work. If needed, additional equipment can be rented on a short term basis to assist in the work. Outside personnel are hired as independent contractors to do tree removal and clearing. Also, other AP&T experienced linemen are available in Skagway, Tok and Port Townsend to assist in the work if needed to keep the project on schedule. SALES: 1. Why is this a good investment for AP&T? Will the lenders be protected by using BBL as collateral? The description of the island economy in Section IV reveals an active and growing economy. Population and electric growth over the past five years has averaged more than 15% per year. These rates will slow down in the future, however, the economy is substantial enough now to fully support the investment in BBL Hydro. AP&T reviewed our proposed plans with the APUC six years ago in regard to BBL. At that time the APUC agreed with the company that this investment was prudent and should be allowed to be recovered from the rate payers. Avoiding the alternative higher diesel costs will mean substantial Page 4 Howard Garner, October 3, 1994. BBL HYDRO, INC. RISK ASSESSMENT savings to the rate payers over the life of the project. 2. What sales are required out of the project to insure adequate cash flow for principal and interest payments? The updated load forecast is discussed and reviewed in Section V of this report. The R.W. Beck Economic Study & Load Forecast was completed in October 1992 and filed with FERC. The updated load forecast shows that the electric sales are ahead of the R.W. Beck projection based on the medium case forecast (by 3% for 1994 and as much as 8% for 1995). For rates, the company will ask the APUC for approval of maintaining the current retail rates to customers for the first five years of the project. After five years, there will be a net savings due to the project which will mean lower rates to the consumers. This approach will provide a win-win-win situation. Lower rates for rate payers, full return on investment for the company and full return of interest and principal payments to the lender for the project. In summary, the electric sales are expected to continue to reflect the underlying economy which is strong and growing. With stable or decreasing prices, electric demand will go up as it becomes cheaper than alternative energy sources. OPERATIONS 1. What changes from estimates in the license application or economic studies have been found during construction? The actual conditions will result in improved operating conditions. The average available water supply has not been revised and we continue to use 28 cfs (cubic feet per second for every hour of every day of the year). The head or the fall of the water is 1,476 feet which is about 2% better than the original estimate of 1,440 feet. The turbine is a higher efficiency unit than previously estimated. The manufacturer of the turbine has guaranteed its output at 1,476 feet of head to be 3,078 kw at 28 cfs. The result of all of this is that BBL will be able to sell about 26 million kw annually from the project after allowing for transmission line losses and shutdown time for maintenance. This is a increase of about 3 million kw from Page 5 Howard Garner, October 3, 1994. BBL HYDRO, INC. RISK ASSESSMENT the original estimates. This additional capacity will not Provide an economic benefit until there is enough load growth to fully use the potential of BBL. However, these improvements reflect the conservative nature of the original estimates. 2. What maintenance is required during operations? Will the system be able to be on line most of the time? These types of hydro systems have demonstrated remarkable reliability and performance at other locations. There is no known maintenance to be performed other than visual inspections to look for possible problems. As a practical matter, the only part which can go out under normal conditions is the bearings. This system is not being left to be run by inexperienced people. An automated control system tied to the switchgear will be operated from the Craig control center by qualified operators. A key component of the system is a fiber optic link direct from the control center to BBL powerhouse which allows computerized interface and programs to assist the operating personnel. There is a radio backup in case the line is broken or interrupted. We expect the system to be on line 99% of the time. Planned shut downs for two to four days a year are expected to allow for visual inspection and maintenance. During shut down, the back up diesel generators will be used which will be good for that equipment to be fully loaded. 3. What if abnormal conditions do happen? Does this go off line for months at a time? BBL has invested in key spare parts to prevent an extended outage. A major problem can be repaired within one day by our local people including replacement of bearing liners, turbine spare parts or even a spare transformer. Major problems with the transmission line have occurred during the past seven years on the line from Craig to Klawock. However, the outages have been repaired by our crews within a relatively few hours. There has been no significant outages over the past four years. We expect to be able to maintain the new transmission line with few interruptions. The only known major event to throw the system off line for Page 6 Howard Garner, October 3, 1994. aA ON 0 ‘| BBL HYDRO, INC. RISK ASSESSMENT an extended period would be a break in the penstock due to an earthquake or some other major event. The diesel back up system is ready to provide electric power while crews and equipment are brought in to repair the damage. Worst case would be an interruption of two to four months. The related costs of the interruption could be charged to the local rate payers. 4. What are the operating costs? Anything significant? The only variable cost is a per kw charge to be paid to Sealaska Corporation for rental of the underlying land rights. This starts at 0.5 cent per kw and works it way to one cent per kw when sales reach maturity. Other operating costs are for a portion of the cost of our existing employees to perform the maintenance and operation of the system. There are no other significant incremental costs. REGULATORY 1. Are there any issues with federal or state agencies other than those discussed above? The previous discussion has reviewed the construction and rate making aspects of the project with the regulators. One other issue is a final recreational plan for the public. As part of the license, AP&T agreed to make improvements at the USFS cabin at BBL. Other recreational improvements for the public will be needed, however the final plan is awaiting agreement between USFS and Sealaska Corporation. The costs for this work will not be material and they are included in the estimate to complete. 2. Is there any chance that the project would lose money due to some future action of the regulators? There is protection in the law for the company as a public utility to make prudent investments to serve the needs of its customers. We have demonstrated to the APUC and FERC that BBL is a prudent investment. Therefore, there are legal safeguards to prevent any loss on the project. In fact, the company is legally protected in earnings a reasonable return on its investment. Page 7 Howard Garner, October 3, 1994. ATTACHMENT | AN INTRODUCTION TO BINGHAM ENGINEERING PROFILE OF THE FIRM Bingham Engineering is a multi-disciplinary consulting engineering firm based in Salt Lake City, Utah. Its professionals include civil engineers (with specialties in hydrology, water resources, utility, structural, hydraulics, transportation, and environmental engineering areas), geotechnical engineers, geologists, land planners, landscape architects, surveyors, designers, and environmental scientists. The company was formed in 1973 and has shown steady growth with a staff of up to seventy. The firm is unique being the only intermountain based firm providing complete civil, geotechnical, environmental, planning, and landscape architectural services. An enviable track record of involvement in some of the most complex and challenging projects undertaken in the Western United States attests to the high level of engineering performance that has become our hallmark. Although the firm has the capabilities to manage large complex projects, we regard all sizes of projects as important and deserving of the best work we can perform. Our professionals and support personnel are our most important asset and remain client and service oriented. Performance and the individual client relationship remains the key to past and future successes. The principals and staff engineers of the firm of Palmer-Wilding joined Bingham Engineering in August 1989 and added to our expertise in water resources engineering with their recent experience in numerous flood control and water resource projects. Similarly, the Utah office of PRC Engineering joined Bingham Engineering in 1987. The senior staff of that PRC office remain with Bingham Engineering and strengthen the firm in the area of geotechnical engineering and environmental studies and permitting. Following the itemized list of the broad range of services provided by Bingham Engineering is a summary of qualifications and a profile of past project experience in the selected disciplines of hydropower, water resources, geotechnical, and environmental engineering. 99998-788 Page 1 Bingham Engineering SERVICES The multi-disciplinary staff at Bingham Engineering can provide special studies with a narrow focus of expertise or a broad scope of complementing services, whichever better meets a clients needs. In any case, our specialists and staff engineers carry out their assignments with the highest levels of professionalism, competency, and sincere interest in the work. Major disciplines and typical assignments for which Bingham Engineering has notable expertise include the following: * HYDROPOWER ENGINEERING * GEOTECHNICAL Feasibility & Licensing Environmental Studies Field Investigations Subsurface Investigations Materials Testing Earth Structures Model Studies Slope Stability Design and Construction Documents Foundation Analysis Construction Management Groundwater Hydrology Performance Analysis Geology * WATER RESOURCES * MUNICIPAL SOLID WASTE LANDFILLS Surface and Groundwater Landfill Siting and Design Development Operational Plans System Simulation and Modeling Groundwater Monitoring Water Rights Landfill Closure Dams and Reservoirs Irrigation and Drainage *« SURVEYING Hydraulic Structures ALTA and Boundary Surveys Hydrology — Topographic Surveys Construction Staking * CIVIL Special Requirements and Techniques Water Supply and Distribution Wastewater Collection and Treatment * ENVIRONMENTAL & HAZARDOUS Planning and Platting Hydrology, Grading and Drainage Utilities Transportation & Traffic Engineering Structural Design * PLANNING & LANDSCAPE ARCHITECTURE Public Participation and Input WASTE Site Assessments & Audits Environmental Impact Studies Site Characterization Reports Permitting and Regulation Compliance Monitoring and Surveillance Plans Closure and Remediation Designs, Plans, and Specifications Processes * CONSTRUCTION SERVICES Site and Environmental Analysis Conceptual and Master Planning Park and Recreational Planning Street and Park Beautification Land Use Studies Planting, Irrigation and Grading Design Models and Renderings 99998-788 Page 2 Bidding and Award Process Construction Management Cost Control and Monitoring Construction Staking Inspection Materials Testing QA and QC Services Bingham Engineering a gue he ua eee, eee ae = = QUALIFICATIONS HYDROPOWER STUDIES, LICENSING, & DESIGN A large part of Bingham Engineering’s work during the past twelve years has been feasibility, licensing, environmental studies, design, and construction management of hydropower facilities. We are proud of our approach of cost effective design. Great efforts are taken to design hydroelectric facilities which maximize energy production and which are economical to construct and maintain. Our approach and design efforts have frequently resulted in turning an infeasible project as studied by other firms or agencies into a feasible and profitable project for our clients. Bingham Engineering has performed feasibility studies on hundreds of potential hydroelectric projects. licensing, design, or construction management by Bingham Engineering. Project ©HNAHAWNA 10. 17. 12. 13. 14. 15. 16. 17. 18. 19. 20. ei; 22. 23. 24. 25. 26. 27. 28. Lake Creek Strawberry Water Users Big Sand Wash Ephraim City Pigeon Cove Low Line Littlewood Felt Nephi City Echo Dam Joes Valley East Canyon Moon Lake Lost Creek Gunlock Mill Creek Stone Creek Shellrock Creek White River Dam Dietrich Drop Teton Mill Lower Wailua River Hanalei West Rosebud North Willow (Ohs) Carter Ranch Swift Creek Pineview 99998-788 Location Heber City, Utah Spanish Fork, Utah Altamont, Utah Ephraim, Utah ' Twin Falls, Idaho Twin Falls, ldaho Carey, Idaho Tetonia, Idaho Nephi, Utah Coalville, Utah Orangeville, Utah Morgan, Utah Duchesne, Utah Henefer, Utah St. George, Utah Reedsport, Oregon Estacada, Oregon Estacada, Oregon Bonanza, Utah Shoshone, Idaho Teton, Idaho Kauai, Hawaii Kauai, Hawaii Redlodge, Montana Pony, Montana Butte, Montana Afton, Wyoming Huntsville, Utah Page 3 Size (kw) 1,750 3,400 1,600 800 2,400 8,000 3,000 7,500 900 4,500 3,000 2,000 4,700 500 300 10,500 12,000 2,800 12,000 5,000 400 6,600 6,000 3,100 400 300 1,300 1,800 Listed below are hydroelectric projects which resulted in Services F,L,D,CM F,L,D,CM F,L,D,CM F,L,D,CM F,L,D,CM F,L,D,CM F,L,D,CM F,L,D,CM F,L,D,CM F,L,D,CM FL FL FL FL F,L,D,CM F,L,D F,L,D,CM FL F F,L,D,CM D,CM F,L,D FL FL D,CM D,CM F, L,D D,CM Bingham Engineering ee oe ee oe he he Project Location Size Services (kw) 29. Smith Creek Bonners Ferry, Idaho 25,000 Ft 30. Black Creek North Bend, Washington 3,700 F,L,D 31. Proctor Creek Index, Washington 1,700 FL 32. Duffey Creek Index, Washington 2,900 FL 33. Martin Creek Snohomish, Washington 6,300 FL 34, Helena Creek Darrington, Washington 3,500 FL 35. Burn Creek Snohomish, Washington 2,900 F,L 36. Lincoln Bypass Shoshone, Idaho 1,960 BE 37. Tensleep Worland, Wyoming 4,300 FL 38. Woodruff Narrows Evanston, Wyoming 2,500 F,L 39. Lime Creek Darrington, Washington 5,000 F,L 40. Tenas Creek Darrington, Washington 5,000 FL 41. Barclay Creek Holford, Washington 4,000 FL 42. Silver Creek Galena, Washington 2,000 FL 43. Miller River Grotto, Washington 4,650 FL 44. Piute Reservoir Marysville, Utah 300 FL 45. Porcupine Dam Avon, Utah 400 FL 46. Island Park Island Park, Idaho 4,800 F,L,D,CM 47. Mad Creek Ardenvoir Washington 5,000 FL 48. Upper Rapid Index, Washington 1,600 FL 49. Macal River (Vaca) Belize, Central America 18,000 F,D 50. Lower Rapid Index, Washington 4,000 FC 51. Wisconsin Creek Sheridan, Montana 450 D,CM 52. Nicholson Howe, Idaho 450 D,CM 53. Starved Rock Peru, Illinois 10,000 D 54. Upper Wailua River Kauai, Hawaii 2,250 F,D 55. Marseilles Dam Marseilles, Illinois 9,400 F,D 56. Whitmore/Murray City Alta, Utah 5,000 - F,D 57. Rio Bobos Guatemala, C.A. 8,500 F,R 58. Calligan Creek North Bend, Washington 5,400 D Legend: F - Feasibility L - License or Exemption Application D - Design , oe a oe ee oe oe oe ee CM - Construction Management R - Design Review Shown on the accompanying exhibits are data sheets for a few of our completed projects or projects under construction. 99998-788 Page 4 Bingham Engineering mn lmrlUMl el lll lO WATER RESOURCES HYDROLOGY General In almost every water related and land development project our engineers have utilized and furthered their technical skills in hydrology and hydraulics. Our hydrologists are proficient in the use of the Corps of Engineers library of computer programs from the Hydrologic Engineering Center as well as other urban, SCS, and in-house hydrology and hydraulic programs. All of our dam, hydroelectric, and flood contro! projects have required streamflow analysis or hydrometerological methods to predict design floods and water supply. Flood Hydrology Simulation The following are typical of the dozens of flood hydrology studies we have performed: Black Creek Hydroelectric Project near North Bend, Washington MX Base - Flood Hydrology - Beaver and Iron Counties, Utah Provo River Flood Inundation Study - Wasatch County, Utah Stone Creek Hydroelectric Project near Estacada, Oregon Mill Creek Hydroelectric Project near Reedsport, Oregon Kennecott - Bingham Canyon - Salt Lake County, Utah Reservoir Flood Routing/Spillway Sizing 99998-788 White River Dam near Vernal, Utah Little Dell Dam in Parleys Canyon, Utah Gunlock Dam near St. George, Utah Bulloch Dam near Zions Park, Utah Swift Creek Dam Near Afton, Wyoming Homestead Mining Project near Sagauch, Colorado Mayflower/UDOT Detention Basin - Wasatch County, Utah Ferron Dam - Emery County, Utah Kents Lake Dam - Beaver County, Utah Lasal Rese:voir - Grand County, Utah Baker Ranch Dam - Piute County, Utah LaPoint Dam - Uintah County, Utah Newfoundland Dike - Tooele County, Utah Kennecott's Smelter & Kessler Canyon - Salt Lake County, Utah Mill Creek Dam - Cache County, Utah Avon Dam - Cache County, Utah Page 10 Bingham Engineering River Flood Hydraulics % . Provo River Flood Inundation Study - Wasatch County, Utah . Little Cottonwood Creek Flood Study - Salt Lake County, Utah ° Jordan River Flood Studies - Sait Lake County, Utah ° Conk Irrigation Lawsuit - Analysis of Sevier River - Millard County, Utah ° C-7 Canal Flood Analysis - Salt Lake County, Utah DAMS AND RESERVOIRS Dam and reservoir engineering has been a large part of the services provided by ~ Bingham Engineering. The expertise required for reservoir planning and dam design includes most of the specialties of civil and geotechnical engineering. Our experience includes numerous dam projects for private, state, county, and municipal owners. Dam and reservoir functions have included storage, hydropower regulation and headwater control, flood control, and sediment and contaminated water containment. Our services have included total project planning for new reservoirs to rehabilitation of older or condemned dams. The following is a partial list of project experience of by the present staff at Bingham Engineering. In addition, our geotechnical group is providing all quality assurance and quality control testing of the Corps of Engineers’ Little Dell Dam Project east of Salt Lake City. en a ee | | ee Dam Design or Rehabilitation and Construction . Lower Gunlock Dam, Washington Co., Utah. 130 feet high. Design of spillway, outlet and foundation; preparation of plans and specifications; construction inspection during various phases of outlet and embankment construction. ° Newfoundland Dike, Tooele County, Utah; Containment Dike of West Pond (Bonneville Evaporation Basin) of the West Desert Pumping Plan. Included 7.5 mile long dike, spillway and outlet control structure. 7 Hooper Draw, Davis County, Utah, flood control reservoir. : Mayflower Detention Basin, Wasatch County, Utah. Major detention basin to contain flood waters and sediment. Designed and constructed for the Utah Department of Transportation. ee ee ee ee ° Witts Lake, Wasatch County, Utah. Irrigation and hydropower headwater reservoir. Work involved rehabilitation and raising of condemned dam. * Porcupine Dam, Cache Co., Utah. 163 feet high. Re-design and construction inspection of spillway and outlet works. Grouting of embankment and left abutment. Earthwork inspection of upper 25 feet of embankment. 99998-788 Page 11 Bingham Engineering w, Bt BB wt wet ti ow = @& 99998-788 Settlement Canyon Dam, Tooele, Co., Utah. 100 feet high. Design of spillway and outlet works; construction inspection of portions of embankment, spillway and outlet. Design and construction of outlet modifications after 1983-84 floods. Pinery Dam, Douglas Co., Colorado. 45 feet high. Design of ail phases of project including embankment, outlet and spillway. Periodic inspection of earthwork and outlet construction. Barton Creek Debris Dam, Davis Co., Utah. 115 feet high. Design and construction and dam embankment. Stone Creek Debris Dam, Davis Co., Utah. 85 feet high. Design and construction of dam embankment. Sevier Bridge Dam, Juab Co., Utah. Design and reconstruction of reinforced concrete gated spillway. Woodruff Narrows Dam Enlargement, Uintah Co., Wyoming. Construction inspection of outlet works and portions of embankment spillway. Also provided SCUBA inspection services and clearing of trash rack. Neponset Dam, Rich Co., Utah. Design and construction of new 36 inch diameter outlet with toe drains and new embankment section. : Heiner Creek Dam. Summit co., Utah. 30 feet high. Design and construction inspection of enlargement including embankment, spillway & outlet. Kents Lake Dam, 38 feet high earthfill dam in Beaver Co., Utah. General plan, embankment raising and reconstruction, and reconstruction of spillway and outlet works. Kessler Canyon Flood Control Project, Salt Lake Co., Utah. Enlargement of spillways and embankments for 3 flood detention structures for Kennecott Copper Corp. Largest Structure 100 feet high. Smith and Morehouse Dam, 85 feet high earthfill dam in Summit Co., Utah. All phases including foundation, embankment, outlet and spillway. Lapoint Dam, Uintah County, Utah. Complete planning, investigation, design, and construction management of off-channel dam and reservoir. Spanish Fork Peaking Reservoir, Utah County, Utah. Small reservoir to enable peaking of Strawberry Water Users’ hydro plant in Spanish Fork. Piute Dam, Piute County, Utah. Rehabilitation and remediation of embankment and spillway deficiencies. Involved detailed field investigations, materials testing, stability analyses, designs and construction of remedial features. Page 12 Bingham Engineering ee “ ' ae Nei eee Feasibility & Preliminary Design with Geotechnical Investigations 99998-788 Warner Valley Dam, Washington Co., Utah. 210 feet high earthfill dam. White River Dam, Uintah Co., Utah. 125 foot earthfill dam, 100,000 acre-foot reservoir for mine, industrial and irrigation water supply. Homestake Mining Co., Saguache Co., Colorado. 78 foot earthfill dam for mine wastewater treatment. Lower Wailua Dam, Kuai, Hawaii. Roller compacted concrete dam on the Wailua River for hydropower impoundment and diversion dam. Cainville Dam, Lower Fremont River, Wayne Co., Utah. 165 feet high earthfill dam and hydro power plant. Recapture Dam, San Juan Co., Utah. 130 feet high earthfill dam. Corn Creek Dam, Millard Co., Utah 38 foot high off stream earthfill dam. Avon Dam, Cache Co., Utah. 200+ foot high dam impounding 30,000 acre- foot reservoir. Mill Creek Dam, Cache Co., Utah. 200+ foot high dam impounding 30,000 acre-foot reservoir. Great Salt Lake Diking Project, Tooele County Lower Crouse Dam, Uintah Co., Utah. 65 foot high earthfill. Mat Warner Dam, Uintah Co., Utah. 30 foot high earthfill dam. Calder Dam, Uintah Co., Utah. 50 foot high earthfill dam. Crouse Dam, Daggett Co., Utah 27 foot high earthfill dam. Lampo Dam, Box Elder Co., Utah. 55 foot high earthfill dam. Honeyville Dam, Box Elder Co., Utah. 85 foot high earthfill dam. Hobbs Creek Dam, Davis Co., Utah. 90 foot high earthfill dam, liquefaction analysis of embankment and foundation. Hatchtown Dam, Garfield Co., Utah, 82 foot high earthfill dam with hydropower. East Promontory Project, Box Elder County, Utah. Embankment, canals, and pumping plant for 334,000 acre-foot reservoir. Page 13 Bingham, Engineering eat, wel Be eH 2 f= EBT ft wt 2 SB De we we . West Bay Expansion Project, Box Elder County, Utah. Dike embankments, canals, and pumping plants for ponds totaling 90,000 acre-feet of storage. ° Little Dell Reservoir, Salt Lake County, Utah. 210 foot high dam and 20,700 acre-foot reservoir. Design and studies for Salt Lake County Flood Control, Salt Lake City Public Utilities, and Metropolitan Water District of Salt Lake City. ° Kennecott Tailwater Reservoir, Salt Lake County, Utah. Earthfill enbankments and lined reservoir for contaminated runoff and groundwater. ° Ferron Reservoir, Sanpete County, Utah. Rehabilitation of existing dam and structures. . Bulloch Dam, Kane County, Utah. Feasibility studies for several dam sites on the East Fork of the Virgin River. Included detailed investigations, preliminary designs and cost estimates. HYDRAULICS AND WATER CONVEYANCE Bingham Engineering projects have included diversion dams, flood retention and detention reservoirs, water conveyance pipelines, canal design and rehabilitation, pumping stations, dams and storage reservoirs, control works, penstocks, spillways, channel improvements, storm water control and detention facilities. | Bingham Engineering maintains close professional relationships with several well known experts in the field of hydrology, hydraulics and computer and laboratory modeling. We have a working relationship with professors and individual consultants which results in the most efficient and effective completion of work for our clients. When appropriate, we utilize the Water Research Laboratory and instruction water lab at Utah State University for hydraulic modeling. Modeling has included numerous intake structures, spillways and energy dissipation structures, and erosion contro! features. Bingham Engineering has completed feasibility studies, preliminary design, final design, or construction management on numerous canal and irrigation projects which include: . LaPoint Feeder Canal for Whiterocks Ouray Canal Company, Uintah County, Utah . Return Brine Canal for Utah Division of Water Resources, Tooele & Box Elder Counties, Utah ° Northpoint Canal Relocation for Northpoint Canal Company, Salt Lake City, Utah . Brighton Canal Repairs for Brighton Canal Company, Salt Lake City, Utah ° Strawberry Power Canal for Strawberry Water Users Association, Utah County, Utah ° Warner Valley Canal near St. George, Utah ° Kennecott/Bingham Canyon Diversion Canal near Copperton, Utah 99998-788 Page 14 Bingham Engineering 4 HE Fete ew EE KE we In addition we have designed improvements or modifications to the following canals as part of hydropower projects: * "C" Canal (Big Sand Wash Project), Duchesne County, Utah ° Low Line Canal, Jerome County, Idaho ° Milner-Gooding Canal (Dietrich Project), Lincoin County, Idaho : Drainage Canals and Wasteways (Pigeon Cove Project) Twin Falls County, Idaho ° Briggs Canal (Teton Mill Project), Madison County, Idaho ° Hurricane Canal Replacement near LaVerkin, Utah Bingham Engineering hydraulic engineers have experience in performing state-of-the-art analyses for unusual conditions such as wind setup on a shallow 40-mile long inland lake, riprap requirements for wave action on a lake of dense brine, a 20-mile long diked channel designed for flood flows of 10,000 cfs, and numerous spillways for flows up to 80,000 cfs. Our hydraulic and structural engineers have designed numerous pumping stations. These stations have range in size and capacity, with several industrial pumping systems in the 400 to 600-Hp range. Other pumping plants for irrigation have ranged up to 5,900 Hp for the 13,000-acre Ouray Indian Irrigation Project. Bingham Engineering has a track record of numerous successful pipeline projects. The water conveyance pipeline projects total more than 125 miles in length and include planning, design, and construction management. Recently completed projects include the 144-inch diameter penstock for the Dietrich Drop hydro project in Idaho, the twin 60- inch diameter diversion pipeline for the Strawberry Water Users in Utah, the 60-and 72- inch penstocks on the Echo project for Bountiful City, the 60 to 96-inch penstocks for the Felt hydroelectric project in Idaho, the 60-inch diameter Parley’s Conduit for Salt Lake City, the 144-inch diameter Low Line Canal diversion in Idaho, and the 75-inch diameter Ogden River Water Users’ pipeline project. IRRIGATION AND DRAINAGE Bingham Engineering has planned, designed, and/or constructed numerous irrigation projects which include the following: * South Jordan Secondary Water System Preliminary design of South Jordan City’s secondary water system master plan with cost estimate and plan of action. The majority of the master plan call for a pressurized system with diversions from various canals. Bingham Engineering has completed design and construction management on implemented portions of system. The system will serve a population of 12,000 (1989) and area of 16 square miles. 99998-788 Page 15 Bingham Engineering eel ll sl elie t * Lampton Farms Secondary Water System, South Jordan, Utah Responsible for the design and construction management of a pressurized secondary irrigation system for a 100 plus lot subdivision. An in-line pump station was designed to provide adequate pressure to sprinkle. * Elberta Farms Water System, Cedar Valley, Utah Conducted alternative piping and pump sizing evaluations with preliminary design of pressurized irrigation system for 4,000 plus acres. The plans included a pump station on Utah Lake with additional booster pumps to maintain pressure throughout the system. * Fields Financial / Riverview Ranch, Woodland, Utah Design of an earth-filled dam and storage reservoir, pumping and distribution system for irrigation of 160 acres. Design included coordination with Dam Safety for the State of Utah, water rights and construction layout and management. ¢ Fairview, Utah For Birch Creek Irrigation Company, a 2,550-acre sprinkler irrigation system including regulation and desilting ponds. * Wayne Co., Utah Design of 165 foot high earthfill dam with hydro-power plant, pump station and 5,400 acres of newly irrigated land. * White River Indian Irrigation Project, Uintah County, Utah Irrigation of 12,000 acres of newly irrigated Indian lands, with water from the proposed White River Dam. Approximately 80% of the land would be sprinkle irrigated. * Liberty Irrigation Project, Liberty, Utah For Liberty Irrigation Company, a pressure sprinkler irrigation system was designed to irrigate 1,500 acres. * Cedar Creek Irrigation Project, Spring City, Utah For Cedar Creek Irrigation Co. Pressure sprinkler irrigation system for 600 acres. This system with the Liberty, Utah system included 21 miles of pressure mains and distribution pipelines ranging from 3" to 24". ¢ Huntsville, Utah For Huntsville Waterworks Corporation. This recently constructed pressure irrigation system delivers water from the South Fork of the Ogden River to the Town of Huntsville, Utah. The system consists of a diversion structure, 8 acre ft holding pond and a gravity fed pressure irrigation system serving each lot in the Town and also the State Park at Pine View reservoir. The project includes approximately 3 miles of 18 and 24 inch pipe and 8 miles of pipe ranging in size from 3 inches to 15 inches. 99998-788 Page 16 Bingham Engineering Be ee ee lt ee 7 * Settlement Canyon Pressure Irrigation Project, Tooele, Utah This pressure irrigation system serves approximately 2/3 of Tooele City and adjacent lands with pressurized irrigation water stored in Settlement Canyon Reservoir. Pipe sizes range from 24 inch to 4 inch. i Silver Springs Pressure Irrigation Project, Summit County, Utah This pressurized irrigation system serving the Community of Silver Springs in Summit County, Utah utilizes spring runoff water stored in two reservoirs to serve outside water needs for approximately 800 residential lots. The irrigation water is pumped directly from the lakes into the irrigation distribution system. Stansbury Park Pressure Irrigation Project, Stansbury Park, Utah The Stansbury Park Pressure irrigation system pumps directly from a man made lake into a pressurized distribution system which irrigates the Golf course and public “green belt" areas. 99998-788 Page 17 Bingham Engineering _— ae ee es ie HYDROGEOLOGY Hydrogeology combines the expertise of water resources, geology, porous media flow, geotechnical engineering, contaminant transport, chemistry, and well design and construction knowledge. Bingham Engineering routinely provides hydrogeologic services for environmental and water development projects. Bingham Engineering personnel have detailed knowledge and experience of subsurface soil, bedrock and groundwater conditions. They are experienced in the development of work plans for environmental and water development projects. Bingham Engineering has performed numerous hydrogeologic projects which typically include the design, location, construction, development and sampling of monitor and/or production wells. Bingham personnel understand the State and Federal guidelines and regulations governing monitoring wells. Additionally, our staff has performed numerous groundwater modeling Studies. Typical projects have included one or more of the following types of studies: ° Groundwater investigations ° Groundwater analysis and modelling © Groundwater sampling and analysis . Water quality studies . Installation of monitor well networks ° Design and construction of production wells Project services have varied from detailed regional groundwater studies to individual shallow monitoring wells. We have investigated, designed, supervised construction, and test pumped wells for shallow dewatering purposes to wells over 3,000 feet deep for industrial water supply uses. One of Bingham Engineering's wells in the Navajo Sandstone in southern Utah holds the world’s record for well screen. 99998-788 Page 18 Bingham Engineering I! GEOTECHNICAL ENGINEERING General Bingham Engineering has maintained expertise in geotechnical engineering for more than 15 years. Since most of our industrial, commercial, and water projects involve soils, foundations, and geological considerations, we have found that we could best serve our clients with in-house geotechnical personnel. Our geotechnical engineers and geologists work closely with our structural engineers and other professionals. We can perform all required field exploration, sampling, mapping, laboratory testing, = monitoring as well as geotechnical analysis and design. The coordinated working relationship between our civil engineers and geotechnical professionals results in efficient and cost-effective studies and designs. This combination also is conducive to “fast track" design schedules. Bingham Engineering also maintains a 2500-square-foot materials testing laboratory for soils, rock, concrete, asphalt and other specialized testing. In addition we currently maintain two field soils labs. Typical of the geotechnical services provided by Bingham Engineering are: ° Soils and foundation investigations for commercial and industrial sites ° Dam investigation, design and construction ° Groundwater studies 2 Investigation and design, planning, development and closure of tailings dams ° Design using geosynthetics ° Seepage and slope stability evaluations . Construction inspection and testing services ° Design of leach water collection system f° Complete soils testing laboratory Subsurface Investigations As indicated in the dam experience section, we typically conduct all geotechnical investigations for our dam and reservoir projects. Bingham Engineering has coordinated all logistics, equipment and technical effort for all types of exploration and drilling including helicopter supported work at inaccessible sites, barge drilling in lakes, and geophysical surveys. Bingham Engineering has also performed hundreds of gectechnica! investigations involving exploration, soil testing, analysis, foundation recommendations, and foundation design for industrial and commercial projects. Our analyses have resulted in all types of foundations including spread footings, mats, end bearing and friction piles, drilled piers (caissons), and hybrid combinations. Projects for which soils and foundation investigations have been completed and which are typical of our geotechnical assignments include: Hydroelectric and Pipeline Projects: ° Island Park Hydro, Idaho. Included drilling on reservoir ice to determine sediment thickness and nature and foundation conditions for intake, penstock, 99998-788 Page 19 Bingham Engineering powerhouse, and aeration basin. Bingham Engineering provided all equipment and personnel. Pineview Hydro Project, Ogden Canyon, Utah. Subsurface investigations for powerplant and penstock performed for Bountiful City Light & Power. Black Creek Hydro Project, near North Bend, Washington. Subsurface investigation for diversion dam, pipeline/penstock, bridge, and powerplant. Required helicopter transportable equipment for most drill holes due to steep, rugged terrain. Ogden Canyon/Pineview Aqueduct, Utah. Performed for Ogden River Water Users, we have completed subsurface investigations for three stretches of 75" steel pipeline replacing old wood stave pipe. Subsurface investigations included drill holes, backhoe trenches, and hand excavated test pits where access by heavy equipment was not possible. Calligan Creek Hydroelectric Project, North Bend, Washington. Subsurface investigations for diversion dam, penstock, and powerhouse. Borings, core holes, test pits, and geophysical (seismic refraction) surveys were used to collect subsurface data. Dams and Reservoirs: See listing of dams and reservoirs above for experience with earth, rock, and concrete dams. 99998-788 Page 20 Bingham Engineering a Oa mm em oh ENVIRONMENTAL SERVICES Bingham Engineering has experienced personnel available to perform environmental studies in the areas of water quality, air quality, solid and hazardous waste. Our Staff is knowledgeable concerning federal, state and local environmental regulations including compliance and training requirements for Worker/Community Right-to-Know. Additionally, the environmental scientists and professionals of Bingham Engineering have completed the OSHA 40-hour safety training and have performed numerous field studies and environmental assessments. Clients in both government and industry have relied on Bingham Engineering's knowledge and experience for the development and implementation of environmental compliance programs, including: Bingham Engineering maintains an environmental services group with a staff of environmental scientists, geologists, and civil, geotechnical and chemical engineers. This group provides expertise in environmental assessments, audits, monitoring, and site evaluations. Bingham Engineering can also assist in securing permits and achieving environmental compliance as well as offer the professional capabilities and experience which make our firm specifically qualified to provide these services to our Clients. Summarized below are typical environmental services which we provide: . Groundwater monitoring plans and studies ° NPDES permitting and compliance testing and reporting ° Air Quality permit applications S Worker Right-to-Know training . RCRA annual compliance training ° RCRA permit applications 2 Solid and hazardous waste facility design ce Closure of RCRA, CERCLA and low-level radioactive sites . Proposed Subtitle D solid waste compliance studies ° Environmental documentation including environmental site assessments, site characterization reports, and environmental impact statements . Environmental permit application and responses to notices of deficiencies ° Site characterization and assessment activities including RCRA and CERCLA- related requirements 99998-788 Page 21 Bingham Engineering 99998-788 Sa e@a es eameeme & Closure plans and hazardous material removal Environmental impact statements and assessments (EIS & EA) Following is selected project experience typical of some of our assignments. All referenced experience is that of our current staff. Hazardous Waste Facility Syro Stee! Company Centerville, Utah Weber County Landfill Monitoring Weber County, Utah Client: Browning Ferris Industries Surface Water Management Plan Bingham Canyon, Salt Lake County, Utah Client: Kennecott Utah Copper Prospector Square CERCLA Assessment Park City, Utah Client: Park City Municipal Corporation Groundwater Monitoring System and Runoff Containment (for facility closure) Chevron Chemical Plant, Salt Lake County, Utah Client: Chevron Chemical Company Hazardous Waste Incinerator Tooele County, utah Client: Voltec Waste Management, Inc. NPDES and RCRA Environmental Assessment at Eastman-Christensen Facility Salt Lake City, Utah Client: Eastman-Christensen Corporation Meadow Crossing Environmental Assessment Woods Cross, Utah Client: M&K Development, Bountiful, Utah Eaton-Kenway Facility Environmental Audit Bountiful, Utah Client: Eaton-Kenway, Salt Lake City, Utah Bonneville Center Environmental Audit Salt Lake City, Utah Client: Diversified Properties, Orange, California Personnel Training for RCRA Compliance Page 22 Bingham Engineering aa le 2 £@e ew m@ tm ot Dugway Proving Grounds, Dugway, Utah Client: U.S. Army and El Dorado Engineering ° Sharon Steel CERCLA Remedial Action Alternatives Salt Lake City, Utah Client: Bonneville Associates, Salt Lake City, Utah ° Level | Environmental Survey - State of Utah Purchases Salt Lake City, Utah Client: State of Utah Division of Facilities Construction & Management ° Tailing Removal, Consolidation Plan, and Emergency Action Plan Wasatch County, Utah (Jordanelle Reservoir) Client: U.S. Bureau of Reclamation and Utah Department of Transportation Bingham Engineering is currently involved in several environmentally sensitive projects ranging from fishery enhancement, to wetlands mitigation, to hazardous waste monitoring and removal. Some of this work has included the major Jordanelle Dam and Reservoir Project. Our personnel have worked closely with Utah Wildlife Resource personnel, other state wildlife agencies, and the U.S. Fish and Wildlife Service to enhance fishery habitat on several water resource development projects. Our staff of experienced and qualified environmental engineers, planners, and scientists can not only correctly identify environmental concerns of proposed hydraulic structures but can offer alternative solutions to mitigate or often improve the design of the proposed facility to enhance its impact on the environment. The FERC licensing process involves detailed environmental studies of which we have completed many in the last ten years. SURVEYING Bingham Engineering maintains a full-service surveying group, with modern field equipment and computer software and plotter capability. We routinely perform topo, boundary, ALTA, and construction surveying. Our field equipment includes Topcon, HP, and Nikon one- and two-second total stations with data collectors, HP and Topcon 20- and 5-second total stations, theodolites, automatic levels, and other support equipment. Bingham Engineering has provided surveying services in all western states, from Alaska to Central America and from Colorado to Hawaii. We routinely perform boundary surveys including ALTA surveys, topographic and location surveys, ground contro! for aerial surveys, monument controls, sedimentation surveys in reservoirs, and construction surveying. We have developed special surveying instruments for use when unconventional techniques were required. When asked to survey crane rails for a large overhead crane above open hearth furnaces (toxic fumes, high temperatures, and a high voltage rail immediately adjacent), we built a remote control vehicle which carried a remote controlled reflector prism and traveled on the rails to allow for positioning and accurate surveys at any location along the rails. We have also built special probing equipment of sediment surveys. 99998-788 Page 23 Bingham Engineering II ATTACHMENT 1 Whitewater Engineering Corporation Company Profile Whitewater Engineering Corporation is located in downtown Bellingham, Washington. The company recently moved from Alaska to Bellingham to design and construct hydroelectric power projects in the Pacific Northwest. Whitewater Engineering Corporation specializes in design, construction, and project management of a wide variety of construction projects including technical, — environmental, economic and regulatory issues. We offer the efficiency, responsiveness and personal attention of a small engineering and construction firm backed by the knowledge and experience of a large team of professional industry experts. Our success has been built on an efficient team of experts that have an in-depth knowledge of all phases of project management, construction, and design. It is our = objective to provide top qualified professionals with a pool of knowledge enabling Whitewater Engineering Corporation to complete all phases of any hydroelectric _ power project. Each job assignment is managed by an experienced project manager who is responsible for work, planning, quality control, schedule and budget. Under a single contract, Whitewater Engineering Corporation provides its hydroelectric power clients with a single source of specialized personnel on a flexible, as needed basis. WHITEWATER ENGINEERING CORPORATION 1050 LARRABEE AVE. » SUITE 104-707 ¢ BELLINGHAM, WA 98225 ~ PH (206) 733-3008 * FAX (206) 733-3056 SS Thom A. Fischer, P.E. Project Manager / Engineer RESUME LICENSES AND EDUCATION Professional Engineer, State of Alaska No. CE-6793 1985 Professional Engineer, State of California No. C 34632 1982 Professional Engineer, State of Washington No. 28871 1992 Contractors License, State of Alaska No. AA 8873 Contractors License, State of Washington No. WHITEEC087M0 California Polytechnic State University, San Luis Obispo, California 1974 - 1979 Bachelor of Science in Transportation Engineering / Civil Engineering University of Alaska, Anchorage, Alaska Arctic Engineering WORK EXPERIENCE Whitewater Engineering Corp., Bellingham, Washington Position: President 1991 - Present Owned and managed a construction and engineering firm, developing a wide variety of projects that include subdivisions, roadways, commercial and industrial projects. Provides conceptual design, economic analysis, construction and inspection of projects in their entirety. Current projects include: e Project Engineer of Power Creek Hydroelectric Project, Power Creek, Alaska Project budget approximately $ 10,000,000.00. e Project Engineer of Swamp Creek Hydroelectric Project, Swamp Creek, Washington Project Budget approximately $7,200,000,00. e Project Engineer of Ruth Creek Hydroelectric Project, Ruth Creek, Washington Project Budget approximately $ 6,500,000,.00. Thom A. Fischer......2 WORK EXPERIENCE cont'd Whitewater Engineering Constructors, Anchorage, Alaska Position: Owner 1980-1991 Owned and managed small engineering consulting firm, designed and built residential subdivisions, single family homes, commercial buildings and industrial projects. ” Humpback Creek Hydroelectric Project in Cordova, Alaska. Project Manager with responsibilities encompassing re-design, construction management, inspection, and economic planning for project owner, Cordova Electric Cooperative. Project budget approximately $ 6,500,000.00. 1990 - 1992 Project manager, subcontracting for Gill and Jones Trading Company LTD., on scrap iron cleanup project for Canadian oil companies operating in the Beaufort Sea. Responsible for the startup through completion on cutting up and loading 5,000 tons of scrap iron onto a 520 foot ship, the SS Alaska. This includes repairing, testing, and recertifying the ship, obtaining heavy equipment and supplies, hiring approximately forty cutters and welders, coordinating all logistics, and getting the ship underway for it's sail to Korea. The project was essentially completed by the first of October. During October, Gill and Jones Trading Company LTD. also subcontracted to Whitewater Engineering Constructors to disconnect and load six 2,500 KW generators in Fairbanks and ship them to Seattle. Project budget approximately $ 1,250,000,00. 7/89 - 11/89 Project manager, subcontracting for ANT Construction, Inc., for construction management for Maintenance Warehouse Corporate Offices, San Diego, California. Project budget approximately $ 300,000.00. Project manager, subcontracting for ANT Construction, Inc., for construction management for a Maintenance Warehouse, Inc., warehouse in Schaumberg, Illinois. Project budget approximately $ 120,000.00. Project manager and project engineer for the design, construction and development of Sky Harbor Estates residential subdivision in Anchorage, Alaska. Work included platting, planning, soil investigation, excavation and dirt work, through construction inspection. Thom A. Fischer......3 WORK EXPERIENCE cont'd Contracting Engineers and Associates, Anchorage, Alaska Position: Head Design Engineer 10/80 - 4/83 Responsible for the design of urban highways, rural highways, subdivisions, water, sewer, and soils investigations, Work included platting, planning, design, soils and site investigation, and construction inspection. Projects included: e East Northern Lights Boulevard, Anchorage, Alaska, Project budget approximately $ 15,000,000.00. Lake Otis to Muldoon Phases I and I Mile 36 to 50 Seward Highway Peck and Cherry design and inspection Birchwood / Chugiak Community Council Roads Buddy Subdivision Rinner Ranch Alicia Estates Subdivision Dora II and Dorothy Subdivisions. Northland Maintenance Company, Fairbanks, Alaska Position: Engineer in charge of Design and Construction 9/79 - 12/79 Engineer in charge of design and construction of 400 man temporary construction camp at Pump Station No. 7 for the Alyeska Pipeline Service Company. Includes design and construction of the oil, water, and sewer systems, building layouts, water wells and water treatment plant. Project budget approximately $ 4,000,000.00. Pullman Power Products, Diablo Canyon Nuclear Power Plant, Avila Beach, California. Position: Design Engineer 4/78 - 8/78 Responsible for the design engineering for the pipe supports at the Diablo Canyon Nuclear Power Plant. Granite - Ball - Groves JVT., Shaver Lake, California Position: Engineer under Mechanical Superintendent 6/77 - 9/77 One out of five engineers who started construction of the Helms Creek Hydroelectric Project. This is a 1212 MW pump storage project. Responsibilities included Thom A. Fischer......4 WORK EXPERIENCE cont'd mechanical engineer - material takeoff, ordering material, work with mechanical superintendent on building the two 250 man camps and a 300 unit trailer park for project personnel. Project budget approximately $ 1,000,000,000.00. REFERENCES Jim Roberts, General Manager Cordova Electric Cooperative, Inc. P.O. Box 20 Cordova, Alaska 99574 (907) 424-5555 Scott Hattenburg, Civil Engineer LCMF Limited 139 E, 51st Street, Suite B Anchorage, Alaska 99503-7205 (907) 562-1830 Kalvin Gill Gill and Jones Trading Company, LTD. 33556 Timberwood Avenue Mission, British Columbia, Canada V2V 6J2 (604) 826-5817 Don Ruef, Project Manager Alaska Energy Authority 701 East Tudor Road Anchorage, Alaska 99519 (907) 561-7877 TOTAL P.18