Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Southeast Intertie Conference May 4, 2005
__..*_ Southeast Conference ssid _ / P.O. Box 21989 Juneau Alaska 99802-1989 — Tel. (907) 463-3445 Fax (907) 463-5670 i May 4, 2005 7V Yor \ ye “oon Mr. Art Copoulos Project Manager II Alaska Energy Authority 813 W. Northern Lights Blvd. H Anchorage, AK 99503 Subject: Southeast Conference Grant #2195197/Southeast Intertie Planning and Organization Dear Mr. Copoulos, Attached are the following documents: 1. Southeast Conference invoice # 146 dated May 4, 2005 requesting reimbursement for the period January 1, 2005 through March 31, 2005. Grant Financial Report Southeast Conference Financial report. Summary of Activity for the period January 1, 2005 through March 31, 2005. Energy Committee Meeting Agenda — January 12, 2005 Energy Committee Meeting Agenda — February 3, 2005 Energy Committee Meeting Agenda — March 22, 2005 Southeast Conference Mid-Session Summit Agenda — March 22-24, 2005 Energy Committee Notes from January 12. 2005 meeting. 10. Energy Committee Notes from February 3, 2005 meeting 11. Energy Committee Notes from March 22, 2005 meeting. 12. Letter supporting the transfer of the electric utility to the City of Pelican. 13. Resolution supporting full funding of the PCE program 14. ‘Request for Review of Energy Projects and Proposals’ document 15. PowerPoint Presentation Slide — ‘Vision’ 16. PowerPoint Presentation Slides — Juneau to Hoonah Intertie Segment 17. PowerPoint Presentation Slides — Kake to Petersburg Intertie Segment 18. PowerPoint Presentation Slides — City of Pelican Electric Utility 19. PowerPoint Presentation Slides — Roles of SE Conference & KWETICO 20. PowerPoint Presentation Slides - AEA Energy Projects in Southeast Alaska OMBMNAARWN The Southeast Conference Energy Committee had a very busy first quarter of the year and we continue making progress on Intertie projects and well as other energy projects in Southeast. We had some excellent presentations at our Mid-Session Summit meetings in Juneau on March 22-24, 2005. Copies of the presentation slides are included in this report. | like to take this opportunity to thank David Lockard and the Alaska Energy Authority for their participation at these meetings. Please feel free to call me at your convenience if you have any questions or if additional information is required. Sincerely, Dave Carlson Southeast Conference Intertie Coordinator Grantee: Report Period: GRANT FINANCIAL REPORT State of Alaska Alaska Energy Authority Request for Reimbursement Southeast Conference 1/1/2005 — 3/31/2005 Reimbursement Requested: $ 29,119.53 Grant #: 2195197 Category in Grant} Amt.In Grant | Expenditures this | Expenditures to Balance Budget Agreement Period Date (B-D) Personnel $104,400.00) $15,295.54 $78,042.25 $26,357.75) \Travel $20,000.00; $2,109.39 $10,961.81 $9,038.19) Phone, Fax $6,000.00) $1,192.93 $4,974.47 $1,025.53 Supplies $4,800.00 $521.67 $1,633.81 $3,166.19 Other $24,800.00) $10,000.00) $30,705.00) -$5,905.00 Total $160,000.00 $29,119.53} $126,317.34) $33,682.66) Southeast Conference AEA Quarterly Report Jan - March 2005 Income 4100 - STATE REVENUE 4161 - AEA intertie Grant Reimburse Total 4100 - STATE REVENUE Total Income Expense 5000 - PERSONNEL 5010 - SEC Admin 5045 - Intertie Coordinator Total 5000 - PERSONNEL 5100 - TRAVEL AND TRAINING EXPENSE 5110 - Other Travel/Training Total 5100 - TRAVEL AND TRAINING EXPENSE 5200 - FACILITY EXPENSE 5220 - Telephone Total 5200 - FACILITY EXPENSE 5300 - SUPPLIES 5320 - Printing and Copying 5305 Supplies 5330 - Postage Total 5300 - SUPPLIES 5400 - EQUIPMENT 5420 - Software Total 5400 - EQUIPMENT 5500 - CONTRACTUAL 5510 - Contracted Services 5540 - Professional Services Total 5500 - CONTRACTUAL Total Expense 2005 January 1 - March 31 18,697.09 18,697.09 18,697.09 5,840.00 9,455.54 15,295.54 2,109.39 2,109.39 1,192.93 1,192.93 362.62 77.99 71.06 511.67 10.00 10.00 10,000.00 10,000.00 29,119.53 AEA billing Jan-March 05 Printed 5/3/2005 Southeast Conference Intertie Committee Activity Report January 1, 2005 to March 31, 2005 Grant #: 2195197 The following is a summary of activities during this reporting quarter: e Southeast Conference Energy Committee meetings were held on January 12, 2005. February 3, 2005 and March 22, 2005. The Southeast Conference Mid-Session Summit meeting was held on March 22 — 24, 2005 and the following presentations were made at the Energy Committee portion of the conference: = Juneau to Hoonah Intertie Segment Project Status Report = Kake to Petersburg Intertie Segment Project Status Report "Falls Creek Hydro Project in Gustavus * Respective roles of Southeast Conference and Kwaan Electric Transmission Intertie Cooperative, Inc. * City of Pelican’s proposed electric utility transfer/existing facilities » Alaska Energy Authority (David Lockard) presentation — ‘Small Energy Projects in Southeast Alaska The Denali Commission held a meeting in Juneau on January 28, 2005. At this meeting, the Commission approved funding for the Juneau to Greens Creek portion of the Juneau to Hoonah Intertie project. The funding amount was $12,000,000. Also at this meeting, the Swan lake — Lake Tyee project received a grant in the amount of $3,100,000. These were funds that Senator Stevens was able to include as ‘earmarks’ in the FY05 Federal Budget and were passed through the Denali Commission. The funding for the Juneau to Greens Creek Intertie segment will allow that project to proceed with submarine cable installation from Douglas Island to Admiralty Island and the construction of an overhead line from Hawk Inlet up to the Greens Creek mine. The Kake to Petersburg Intertie segment Planning Study is well underway. D. Hittle & Associates is the lead consultant conducting this study. Accomplishments during this reporting period include: = Develop detailed definitions of the segment lengths, construction conditions, marine crossings, and available road access for each of the six alternative routes = Preliminary screening-level cost estimates have been developed for the alternative routes. These cost estimates are based on a relatively detailed assessment of the required labor unites, materials, clearing, access roads, etc. = The route definition and screening-level cost estimates were presented to the Kake to Petersburg Steering Committee. As a result of this presentation and subsequent group discussion, the number of routes for continued evaluation was reduced to three including a route accessing the potential Woewodski Island mine project. = Detailed mapping has been completed = Plot-profile drawings showing the detailed layout for the Center- South route have been completed. These drawings are part of the output of the PLS-Cadd system analysis used to preliminarily design the transmission line, define material requirements and plot the route. * Load flow studies have been completed. These studies are being used to define various technical characteristics of the line alternatives and the interconnection facilities. = Written descriptions of the routes, line characteristics and other information are being prepared. = Basic data has been obtained from Inside Passage Electric Cooperative regarding historical and current power requirements and energy sales revenue in Kake. = A formal request was submitted to the Four Dam Pool with regard to factors involved in potential power purchases. Basic information has been received. = The economic analysis and assessment of permitting and environmental issues are currently underway. » Adraft report is due to Southeast Conference on May 6, 2005. The Kake to Petersburg Steering will then meet to review and consider the study results. It is the goal of the Steering Committee to select a ‘preferred route’. Preparations began for the Energy Committee’s annual trip to Washington, DC in early April to pursue funding for Intertie projects. Developed procedures for the Energy Committee’s role to assist, advise and support energy projects proposed by the region’s communities and utilities Other topics and issues considered by the Energy Committee can be found in the attached Energy Committee meeting notes. Southeast Conference Energy Committee Meeting Agenda January 12, 2005 — 10 am Southeast Conference Meeting Room 612 W. Willoughby, Juneau Call-in Number: 1-888-550-5602 Code: 8249 4332 1. Call to Order 2. Introduction of Committee Members & Guests - New members: Dick Levitt, Gustavus Electric Company, Gordy Wrobel, Elfin Cove 3. Approval & Amendment of Agenda 4. Presentation of 2004 Southeast Conference Energy Committee Annual Report 5. Federal Funding Status Report a. Funds for Juneau — Greens Creek & Swan — Tyee included in Omnibus Bill passed through Denali Commission b. Denali Commission meeting in Juneau — January 28, 2005 c. Denali Commission hearing in Juneau — January 26th 6. Project Status Reports a. Swan Lake to Lake Tyee Intertie Segment — Bob LeResche b. Juneau to Hoonah Intertie Segment — Corry Hildenbrand c. Kake to Petersburg Intertie Segment — Dave Carlson d. Falls Creek Hydro Project — Dick Levitt e. Thayer Creek Hydro Project —- Bob Hamilton f. Metlakatla to Walden Point Rd Transmission line g. Bradfield Canal Interconnection into BC — Robin Taylor 7. Consideration of a letter supporting a land trade - Falls Creek Hydro project 8. Presentation/discussion - other Energy projects/issues in Southeast 9. Discuss dates & appropriation requests for Washington, DC trip — Steve Silver (Steve Silver will call in around 11 am to discuss) a. Appropriation requests due to Sen. Steven’s office by March 31, 2004 b. Discuss schedule options, attendees & requests 10. Funding status for Intertie Coordinator position 11. Set priorities for 2005 — Energy Committee 12. Other meetings/issues a. Regulatory Commission of Alaska (RCA) will be meeting in Juneau — May 26, 2005. b. 5 MW licensing program update 13. Set next meeting date(s) a. Mid-Session Summitt — March 22 — 24, 2005 in Juneau - David Lockart, AEA will be present 14. Adjourn Southeast Conference Energy Committee Meeting Agenda February 3 —- 10 am Southeast Conference Meeting Room 612 W. Willoughby, Juneau Call-in Number: 1-888-550-5602 Code: 8249 4332 . Call to Order . Introduction of Committee Members & Guests . Approval & Amendment of Agenda . Washington, DC Trip a. Establish dates, meetings & attendees b. Appropriation requests . Intertie Coordinator Report a. Denali Commission meetings in Juneau on 1/26 & 1/28 b. Meetings with SE Legislators . Intertie & Energy Project Updates a. Intertie Project Updates b. City of Pelican — Energy Project Status report c. Elfin Cove d. Other . Mid-Session Summit (March 22-24, 2005) a. Discuss agenda & forum . Funding for Intertie Coordinator position . Adjourn Southeast Conference Energy Committee Meeting Agenda March 22, 2005 — 9:15 am Centennial Hall Convention Center — Juneau Call-in number: 1- 888-550-5602 Enter code: 8249 4332 The ‘formal’ portion of our meeting as part of the Mid-Session Summit will conclude at 10:30 am. We will reconvene into a break-out room to take care of remaining business. This meeting room will have teleconference capability. fe 2) 3. Call to Order — Opening Comments Introduction of Committee Members & Guests Amendment & Approval of Agenda Energy Project Status Reports/Updates (45 minutes) a. Juneau to Hoonah segment (Tim McLeod — AEL&P) b. Kake to Petersburg segment (Dave Carlson — Southeast Conference) c. Gustavus Electric — Falls Creek hydro project (Dick Levitt - Gustavus Electric) d. Pelican Energy Issue — (Mayor Patricia Phillips — Pelican) e. Alaska Energy Authority projects (David Lockard - AEA) (A short question & answer period will follow each presentation. Presenters will be available following the meeting to discuss these projects in greater detail) Roles/responsibilities of KWETICO & Southeast Conference (Dave Carlson) Approval — Letter of Support: Pelican/Kake Tribal utility transfer Consideration of Resolution supporting full funding for PCE program Process for obtaining Southeast Conference support for Energy Projects a. Southeast Alaska Energy Project Submittal Information Form b. Energy Committee/SEC Board — support for projects Comments to Denali Commission Resolutions: a. Required Match b. Competitive bidding 10. Trip to Washington, DC for meetings with delegation (April 5-7) 11. Adjourn SOUTHEAST CONFERENCE MID-SESSION SUMMIT March 22-24, 2005 Centennial Hall Convention Center-Juneau, AK Registration: $35 members, $50 non-members Forms, Info, Updates at www.seconference.org Tues March 22 Draft Agenda 9:00a Welcome SEC President Murray Walsh 9:15a Energy/Intertie Committee Small Energy Projects, David Lockard, Alaska Energy Authority/AIDEA Updates of Southeast Alaska Energy Projects 10:30a - Break — Sponsored by the Southeast AK Regional Health Consortium 10:45a Health & Social Services Committee Status Reports/Updates from Southeast Hospitals Noon - Lunch, on your own — 1:00p Environment Committee SEC Solid Waste Plan Update, Richard Smith, solid waste consultant What is happening with the Household Hazardous Waste Program? Steve Haavig Haines Solid Waste Solution — Tom Hall, Haines Sanitation Legislation: State Water Permit Authority — Dan Easton, ADEC Wood for Fuel on POW Island — Paul Coffey, NRCS 2:00p Tourism Committee Update: Cruise Ship Plans for Glacier Bay, Tomie Lee, National Park Service Panel: Cruise Ship Tax Initiative, moderated by Becky Hultberg, Office of Gov. Initiative Proponent, Joe Geldhof Northwest Cruiseship Assn., John Hansen Bills in the Alaska Legislature, Rep. Paul Seaton Others Invited Tourism Project Updates from around the Region 3:00p - Break — Sponsored by the City of Prince Rupert 3:15p Fisheries Committee Marketing & Branding, Gig Decker Ocean Policy, Heather Brandon, State of Alaska Fisheries Legislation, Sarah Gilbertson, ADF&G Watershed Councils — Salmon Restoration, Samia Savell, NRCS Fisheries Organization Updates- United Fishermen of Alaska, and others invited 4:15p Timber Committee Timber Projects Wrap-up - George Woodbury, timber coordinator University Land Transfer Program, Joe Beedle, University of Alaska Medium-Density-Fiberboard Plant Study — Len Guss, Consultant Timber Receipts Program — 5:15p Reception with Juneau Chamber at Alaskan Brewing Co. Departure Transportation to/from Centennial Hall provided Events and Food Sponsors Major Sponsors: USDA-Rural Development Coeur Alaska Juneau Chamber of Commerce Alaska Committee Other Sponsors: Alaska Airlines City of Wrangell SE AK Regional Health Consortium Alaska Marine Lines AK Permanent Capital Management City of Prince Rupert SOUTHEAST CONFERENCE MID-SESSION SUMMIT March 22-24, 2005 Centennial Hall Convention Center-Juneau, AK Registration: $35 members, $50 non-members Forms, Info, Updates at www.seconference.org Wed March 23 Draft Agenda 8:30a Welcome, Ax Dept. of Commerce, Comm. Edgar Blatchford 8:45a Economic Overview, SF Alaska Update, McDowell Group 9:15a DC Perspectives Rep. Don Young 9:45a - Break — Sponsored by the City of Wrangell, Site of 2005 Annual Meeting 10:00a Economic Development Committee Mining Updates: Kensington Mine, Rick Richins, Coeur Alaska Economic Inventory Grant Program Update All-Alaska Gas Route — Community Dividend, Bert Kottle, mayor of Valdez 11:00a Alaska’s Resources — Gov. Frank Murkowski, invited 11:30a Federal Perspectives — Trends & Outlook Denali Commission, Jeff Staser, chairman USDA Rural Development, Bill Allen Noon Luncheon Centennial Hall Sponsored by Coeur Alaska Tongass Forest Update/Timber Forrest Cole, Denny Bschor, USFS 1:00p Canadian Issues & Cross-Border Alliances Moderated by Herb Pond, Mayor of Prince Rupert Tulsequah Chief Mine — Terry Chandler, Redfern Fiberoptics and other Options for SE Alaska — Joe Bradley, Yukon Territorial Govt Yukon Natural Resources — Clint Ireland, Yukon Territorial Govt Cross-Border Alliances — Graham Kedgley, Northwest Corridor Dev. Corp. Yukon Association of Communities — Tom Paterson Update from Stewart, BC, Mayor Angela Brand-Danuser Report: US-Canadian Agreements, Jeannette James, State of Alaska Timeline for Canada-Alaska Railroad Connection, Len Ginnever, Prince George Bradfield Road, Terry Otness, City of Wrangell 2:45a - Break — Sponsored by Alaska Marine Lines 3:00p Transportation Committee (Comm. Mike Barton, invited) Roads, Bridges, Plans, and Funding — Updates from across the region Funding Issues - Gary Paxton, AK Dept of Transportation Sitka Access and Northern Panhandle Study - Andy Hughes, AK DOT Juneau Access- Road Access to the State Capital - Pat Kemp, AK DOT News from the Alaska Marine Highway — Robin Taylor, AMHS Update: Inter-Island Ferry Authority — Stu Vincent, IFA Marine Transportation Advisory Board — JC Conley, chair 5:00p Southeast Alaska Legislators’ Panel Q&A with our 8 legislators Senators Stedman, Kookesh, Elton (invited) Representatives Elkins, Wilson, Thomas, Kerttula, Weyhrauch (invited) 6:00p Reception-— sponsored by the AK Committee & Juneau Chamber In Centennial Hall Thurs March 24 8:00a Additional Meeting Time for Committees 9a-Noon Conference of Mayors, Conference of Chambers, SEC Board Noon Luncheon with Juneau Chamber of Commerce (Centennial Hall) Southeast Conference Energy Committee Meeting Notes January 12, 2005 Attending: J.C. Conley (Co-Chair) - Service Auto Jon Bolling (Co-Chair), City of Craig (via teleconference) Tim McLeod — Alaska Electric Light & Power Company Jodi Mitchell — Inside Passage Electric Cooperative Dick Olson — Thomas Bay Power Authority Vern Rauscher — Inside Passage Electric Authority Ted Smith — Mayor of Petersburg Robin Taylor — State of Alaska, DOT Dick Levitt - Gustavus Electric Company Gordon Jackson — Central Council, Tlinglit Haida Bob Hamilton — Kootznoowoo Corporation Pedr Turner — City of Gustavus David Lawrence — Baxter, Bruce & Sullivan Corry Hildenbrand — Alaska Electric Light & Power Larry Markley — Markley & Company Gary Williams — Organized Village of Kake Mayor Paul Reese — City of Kake Bob Grimm — Alaska Power & Telephone (via teleconference) Thom Fisher — Whitewater Engineering (via teleconference) Charlie Walls — City of Sitka (via teleconference) Mayor Patricia Phillips — City of Pelican (via teleconference) Steve Silver — Robertson, Monagle & Eastaugh, lobbyist for SEC (via teleconference) Commissioner Greg O’Clarary, State of Alaska, Commissioner of Labor Greg Mitchell, State Department of Labor Keith Perkins, USDA — Rural Development, Southeast Office Dave Carlson, Southeast Conference Intertie Coordinator Rollo Pool, Southeast Conference Executive Director Gordy Wrobel — Community of Elfin Cove The Meeting was called to order at 9:05 am by Co-Chair JC Conley Dave Carlson informed the Committee that Dick Levitt, Gustavus Electric Company and Gordy Wrobel, Elfin Cove were new members to Southeast Conference and the Energy Committee. The Agenda was approved without amendment. Presentation of 2004 Southeast Conference Energy Committee Annual Report: Dave Carlson reported that he had sent out, in draft form, the 2004 Southeast Conference Annual Report for review and comment. He asked that members review the report and submit comments by the end of the week so the report can be finalized and distributed. Federal Funding Status Report: Dave Carlson noted that Steve Silver will be calling in around 11 am to discuss this and other related issues on the agenda. Dave reported that Senator Stevens had included $13 million for the Juneau to Greens Creek portion of the Juneau to Hoonah Intertie segment and $3.2 million for the Swan-Tyee Intertie segment in the Omnibus Bill that Congress passed in December. These funds will be passed through the Denali Commission. Dave stated that he believes this is the largest amount of funds ever granted in any one year for Intertie projects in Southeast Alaska and that Senator Stevens and the entire Congressional delegation needs to be thanked for their support for the Intertie project. Dave reported that the Denali Commission will be holding their quarterly meeting in Juneau on January 28, 2005 in Centennial Hall. Dave said he had talked to Jeff Staser with the Denali Commission and approval for these grants would be on the agenda for this meeting. Carlson also reported that the Denali Commission would be holding a public hearing on January 26" and is ‘seeking constructive feedback from the public regarding Denali Commission activities’. The public meeting will be held at the Hangar on the Wharf Ballroom on Marine Way in Juneau and will run from 1 pm to 4 pm. Project Status Reports: Swan-Tyee Intertie: Carlson reported that no one from the Four Dam Pool was able to be present at this meeting. He said that the project had been shut down last Fall because available funds had been expended. He noted this is a difficult project to build because of geographical constraints and the project will need substantial additional funding to complete the project. Mayor Ted Smith who is an alternate representative to the Four Dam Pool Power Agency from Petersburg made some comments concerning the project. Juneau to Hoonah Intertie Segment: Corry Hildenbrand provided an update for this project. A pre-bid meeting with submarine cable manufacturing and installation firms was held yesterday (1/11/05). Bids from the firms are due by 1/21/05. The project budget will be tight but submarine cable installation from Douglas Island to Admiralty Island and a transmission line to the mine along the ‘B’ road is scheduled to take place this year. Kake to Petersburg Intertie Segment: Dave Carlson reported that the Kake to Petersburg Steering Committee met this morning (1/12/05) to review the maps prepared by Commonwealth Associates who is a sub-consultant to D. Hittle & Associates. Carlson showed the map to the Committee and explained some of the alternate routes shown. Carlson said the Steering Committee provided guidance to the consultants with respect to some of the alternate routes with some routes being removed from further consideration. Dave reported that the study is on schedule and within budget. Federal funding issues: Steve Silver called into the Committee meeting and explained the funding for the Intertie segments that will be ‘flowing’ through the Denali Commission. It was noted that the $16.2 million dollars for the Juneau to Hoonah and the Swan to Tyee segments would be subject to an automatic .8% rescission mandated by Congress and a 5% overhead charge by the Denali Commission. The Committee discussed whether to urge the Denali Commission to reduce or eliminate this reduction. Hildenbrand explained that this cut would have a detrimental effect on the project’s (Juneau to Greens Creek) budget and could likely result in having to go back to the Denali Commission or the Congressional delegation for more funds to complete the project. Silver explained that the FY/06 appropriation requests are due into Senator Steven’s office no later than March 31, 2005. He also recommended the Committee needs to set a date to travel to Washington, DC to present and explain the funding requests. It was decided that the trip should take place in early March and the dates of 3/1 to 3/3 and 3/8 to 3/10 were discussed. Carlson said he would send an email out to the group to get feedback which dates would work best for Committee members. Co-Chair Conley suggested the next Energy Committee be held February 3 in Juneau. The purpose of the meeting would be discuss and formulate the appropriation requests and determine who would be attending the Washington, DC meeting. Carlson will send out a meeting notification email and develop an agenda for the meeting. Project Status Reports (continued): Falls Creek Hydro in Gustavus: Dick Levitt with Gustavus Electric Company provided the Committee with an update on the Falls Creek Hydro project in Gustavus. The FERC license for the project has been received and Dick explained that the license requires a land trade between the Glacier National Park and the State of Alaska. Currently, a land trade under consideration involves State of Alaska lands near the Klondike Gold Rush National Historic Park near Skagway. Dick also explained that the Glacier Bay National Park had retained D. Hittle & Associates to undertake a study to determine the economic benefit of utilizing power from the Falls Creek hydro project. The Glacier Bay National Park currently has their own diesel generation plant to supply their power requirements. Levitt also explained that he is in the process of putting together a financing plan for the project which is required as a condition of the FERC license. Levitt said FERC did an excellent job responding to the comments made by the Sierra Club and others who had opposed the project. Thayer Creek Hydro Project near Angoon: Bob Hamilton with Kootznoowoo Corporation provided the Committee with a report on the Thayer Creek Hydro project near Angoon. Bob explained that this is a run-of-the-river project just north of Angoon and would displace, for the most part, current diesel generation in Angoon.. Public hearings were held in October in both Juneau and Angoon. The Forest Service is working on the Environmental Impact Statement (EIS) and this should be available for public comment in the Spring of 2005. The project cost (1999 estimates) is $8.1 million dollars. Metlakatla to Walden Point transmission line: Carlson reported that he had tried to contact Sol Atkinson who is the Walden Point Road Coordinator for the City of Metlakatla to get an update on the project but was unsuccessful. The military has been constructing a new road from Metlakatla to Walden Point as part of their training program for several years. Metlakatla apparently approached the military requesting they consider installing transmission line poles and conductor as a part of their training program and the military apparently agreed. The City of Metlakatla submitted a funding request to the Denali Commission and Dave Carlson drafted a letter of support which was approved by the Southeast Conference board of directors and sent to the Denali Commission in support of this funding request. Dave reported that he talked with Jeff Staser last week and he thought the request had been approved but would have to check it out. Metlakatla currently has surplus power available from its existing hydro facilities and this transmission line would bring it closer to tying into the Ketchikan system. Bradfield Road & Intertie: Robin Taylor from the State Department of Transportation gave the Committee an update on the Bradfield Road project and other energy projects, including transmission lines, that are under consideration or development in British Columbia. Taylor reported that BC Transmission Corporation is considering building a transmission line to Dease Lake. BC Transmission may also be considering an economic feasibility study of connecting to the Tyee Project. Robin noted that should the Telsequah Chief and Polaris mines would be developed near the border on the Taku River, it would leave a gap of only 35 miles to connect to the existing Snettisham transmission line system. Taylor added that private hydro project development such as Cascade Creek and Mahoney Lake could proceed with an interconnection into BC. Robin stressed the need to coordination with BC and prioritization of projects. The British Columbia government will be holding elections this Spring and things will be fairly quiet until after the elections. Commissioner of Labor, Greg O’Claray: Commissioner Greg O’Claray spoke to the Energy Committee requesting the utilities utilize local hire wherever possible and pay their contractors on time with respect to construction of current and planned Intertie segments. Commissioner O’Claray stated that Alaskan hire was a top priority for the current administration. Funding for Intertie Coordinator Position: Carlson reported on the current funding available from existing grants for the Intertie Coordinator position. JC Conley noted that he has had conversations with funding agencies regarding this position. The Committee felt that the Committee and Southeast Conference should pursue additional funding to keep the position funded and keep the momentum for the Intertie Project and other energy projects moving forward. Consideration of a letter supporting a land trade - Falls Creek Hydro project: Carlson passed out and explained a draft letter written in support of a land trade between Glacier Bay National Park lands and the State of Alaska lands which is a required condition of the FERC license granted to Gustavus Electric Company for the construction of the Falls Creek Hydro project. Mayor Ted Smith moved and Vern Rauscher seconded a motion to approve the letter, with a suggested amendment provided by Pedr Turner, and forward it to the Southeast Conference board of directors for their approval. Regulatory Commission of Alaska (RCA) will be meeting in Juneau — May 26, 2005: Carlson reported that RCA will be holding a meeting in Juneau on May 26". Dave noted that he has been urging RCA to come to Southeast for some time now to hear the concerns to take public testimony from concerned utilities, communities and ratepayers. Originally, the meeting had been planned for February but the RCA commissioners were not able to fit this into their schedules until May. Carlson will keep Committee members updated with respect to this meeting. State licensing of small hydro projects: Carlson reported that the RCA was continuing to hold stakeholder meetings as regulations are drafted to license and relicense hydro projects under 5 megawatts. This is pursuant to an amendment to the Federal Power Act that Senator Frank Murkowski was able to push through Congress several years ago allowing the State to develop regulations to take over the licensing/relicensing of these projects. Carlson added that only one utility has taken an active role in the stakeholder meetings and commended Alaska Power & Telephone for their involvement. The RCA will be holding two public hearings on the proposed regulations and one of these will be in Juneau. Carlson urged utility representatives to get involved as this process was moving along. Carlson also noted that most of these small hydro projects are in Southeast Alaska. Larry Markley, lobbyist for Alaska Power Association (APA), supported Carlson’s comments and said that APA has taken a position with respect to this process. Mid-Session Summit — March 22 — 24, 2005 in Juneau: The Southeast Conference mid-winter summit will be held in Juneau from March 22™ to the 24". The exact date and time for the Energy Committee meeting has not yet been set. Carlson reported that David Lockhart from the Alaska Energy Authority (AEA) will be present to update and interface with the Energy Committee with respect to projects AEA is presently working on in Southeast. The meeting adjourned at 1 pm. Southeast Conference Energy Committee Meeting Notes February 3, 2005 Attending: JC Conley — Service Auto, Ketchikan (Co-Chair) *Gary Williams, Organized Village of Kake “Bob LeResche, Four Dam Pool *Dick Levitt, Gustavus Electric Company *Dick Olson, Thomas Bay Power Authority *Mayor Patty Phillips, City of Pelican *Mayor Ted Smith, City of Petersburg *Mayor Windy Skaflestad, Mayor of Hoonah *Bob Grimm, Alaska Power & Telephone *Jerry Medina, City of Hoonah *Keith Perkins, USDA — Rural Development *Corry Hildenbrand, AEL&P *Thom Fisher, Whitewater Engineering Gordon Jackson, Central Council Robin Taylor, State DOT Terry Otness, City of Wrangell Vern Rauscher, IPEC Jodi Mitchell, IPEC Dave Carlson, Intertie Coordinator, Southeast Conference *Larry Markley, Lobbyist *Steve Silver, Lobbyist *Darron Scott, Four Dam Pool “* indicates attendance via teleconference JC Conley called the meeting to order at 10:00 am. The agenda was approved without amendment. Intertie Coordinator Report: Dave Carlson reported that he was in Juneau last week for the Denali Commission public hearing held on 1/26 and their quarterly meeting held on 1/28. The Commission approved the Intertie construction grants for the Juneau — Greens Creek segment and the Swan — Tyee segment. The Commission did not apply their standard 5% overhead deduct from these grants. Both grants were, however, subject to the .8% rescission deduct that applied to all federal funding for FY/05. Carlson reported that he used the Denali Commission public hearing on 1/26 to present the 2004 Energy Committee Annual Report. Dave said the report received favorable comments from Co-Chair Staser with respect to the Intertie Committee expanding its role to address all energy projects in Southeast Alaska. Carlson noted that the Denali Commission spent considerable time debating the merits of a resolution that would impose a 10% match requirement on all Denali Commission grants. The Commission did decide to postpone action until their next meeting and would be taking comments from the public and potential grant recipients. Carlson said he did talk with Al Ewing, Denali Commission Chief of Staff and offered some comments. Dave said he would be putting together some comments and would email them out to the Committee for consideration before they are submitted. Dave noted the Commission also discussed a resolution that would require a public bidding process for a percentage of Denali grants. Carlson will provide Committee members with a link to the Denali Commission webpage where information on these resolutions can be found. Carlson reported that copies of the 2004 Energy Committee Annual report were available for those members present and he would mail out copies to the remaining members as soon as possible. Carlson also met with most of the Southeast legislators while in Juneau and gave them copies of the annual report. The reception of positive and the report was favorable received. Washington, DC trip dates, appropriation requests and attendees: After discussion, it was determined that the dates of April 5-7 would work for the members who would be traveling to Washington, DC. Dave will work with Steve Silver and provide a list of attendees. Silver will coordinate the meetings with the delegation. Dave said he would like to brief the appropriate staffers prior to the meeting with the Senators and Congressman Young. It was agreed that the trip would be focused around the Intertie segments currently under development (Swan-Tyee, Juneau-Hoonah & Kake-Petersburg) and attendees would be the proponents from those segments. Appropriation requests are due by March 1, 2005. Conley requested that copies of the requests be sent to Carlson so he can consolidate the requests and put together presentation materials. Mid-Session Summit: Carlson noted that the Southeast Conference Mid-session summit meetings would be held during March 22-24 in Juneau. The Energy Committee formal meeting which will be attended by Southeast Conference general membership will occur in the morning of the 22"°. Dave proposed that the meeting be a ‘round-table’ with potential funding agencies present and energy project proponents be present to ‘tee’ up and explain their projects. Dave said he has talked to AEA and David Lockard will be present to present/explain the projects AEA is working on in Southeast. Dave will be in contact with USDA-RD and the Denali Commission to see if representatives can be present. This meeting should be well attended by legislators and staff. Carlson will be getting an email out to the group with a proposed agenda and meeting format with the next couple weeks. He urged Committee members to attend in person if at all possible. Intertie & Energy Project Updates: Bob LeResche, Four Dam Pool, reported that the project is presently ‘high-centered’ due to a lack of funding. The Four Dam Pool has a potential funding package to complete the project that includes $10 million from the Federal government and $30 million from the State. Robin Taylor, DOT, talked about recent events learned from his meetings in Vancouver. The mining industry is growing rapidly in British Columbia and the government is considering extending a transmission line to Dease Lake. That would open two potential corridors for tying into the transmission system in SE Alaska; one would be down the Taku River corridor and one at the Bradfield Canal where the Lake Tyee project is located. New mines are under development and power could flow from Southeast Alaska into BC to serve the mines. The City of Pelican/Kake Tribal Corp transfer of the electric utility was discussed. Both parties agree in concept to the transfer/sale and both entities have submitted requests for funding in Washington, DC. The City of Pelican has requested support from Southeast Conference and the Energy Committee. The Committee instructed Dave to prepare a draft letter of support and circulate it among the members. The format and process for submitting energy projects from the regions communities and utilities was discussed. Dave will work with Committee members on an Energy Project information form that the Committee can use in reviewing projects. Funding for the Intertie Coordinator position: JC explained that additional funding is needed to keep Dave’s position going. He asked the group if there was any objection by anyway to seek additional funding and there wasn't objection. JC said Dave would explore options with the Denali Commission and USDA-RD. Bob Grimm suggested that the title of the Intertie Coordinator position be changed to reflect the name and mission change of the Committee. Meeting was adjourned at 12:15 pm DRAFT Southeast Conference Energy Committee Meeting Notes March 22, 2005 Centennial Hall Convention Center — Juneau, AK Attending: J.C. Conley — Service Auto, Ketchikan (Co-Chair) Jon Bolling — City of Craig (Co-Chair) Bill Allen — State Director, USDA — Rural Development Tim McLeod — Alaska Electric Light & Power Dick Levitt - Gustavus Electric Company Vern Rauscher — Inside Passage Electric Cooperative Mayor Windy Skaflestad — City of Hoonah Jerry Medina — City of Hoonah Connie Hulbert — Alaska Electric Light & Power David Lawrence — Baxter, Bruce & Sullivan Gordy Wrobel - Elfin Cove Bob Grimm — Alaska Power & Telephone Duff Mitchell —- Kake Tribal Corporation Gordon Jackson — Central Council David Lockard — Alaska Energy Authority Larry Markley — Lobbyist Arlene Ditts Jackson — Central Council Mayor Patricia Phillips — City of Pelican Blaine Ashcroft — Ketchikan Chamber of Commerce The Energy Committee opened, as part of the Southeast Conference Mid-Session Summit, with presentations from Energy Committee members and the Alaska Energy Authority on energy and transmission project development in Southeast Alaska. The following is a list of the presenters and projects: Tim McLeod, Alaska Electric Light & Power — Juneau to Hoonah Intertie Segment Dave Carlson, Southeast Conference — Kake to Petersburg Intertie Segment Dick Levitt, Gustavus Electric Company — Falls Creek Hydro Project Mayor Patty Phillips, City of Pelican — Pelican Electric Energy Issues David Lockard, Alaska Energy Authority - Energy projects & tank farm projects in Southeast Alaska under development by AEA. f. Dave Carlson, Southeast Conference — Roles and responsibilities of Kwaan Electric Transmission Intertie Cooperative, Inc and Southeast Conference going forward. g@a0oo0n Following the formal presentations, the Energy Committee convened in a break- out room in Centennial Hall to conduct the business portion of the Energy Committee meeting. The meeting convened shortly after 10 am. The meeting was called to order by Co-Chair J.C. Conley. Bob Grimm moved and Jerry Medina seconded a motion approving a letter from Southeast Conference to the City of Pelican supporting the transfer of the electric utility from Kake Tribal Corporation to the City of Pelican and supporting requests for funding to accomplish the transfer and upgrade the existing utility plant. Motion passed unanimously. Letter will be forwarded to the Southeast Conference Board for final approval. Vern Rauscher moved and Bob Grimm seconded a motion approving a resolution supporting full funding of the Power Cost Equalization program. Motion passed unanimously. Resolution will be forwarded to the Southeast Conference Board for final approval. J.C. Conley moved and Mayor Skaflestad seconded a motion approving the ‘Request for Review of Energy Projects and Proposals’ document. The Energy Committee has expanded its mission to include all energy projects in Southeast Alaska. The Committee’s goal is to provide review and assistance to communities and/or utilities proposing energy projects in the region. The document lists the information about the project that is necessary for the Committee to conduct a review. Motion passed unanimously. Discussion continued on the Committee’s role of assisting, reviewing and supporting these energy projects. Committee members agreed that they would meet at least twice a year for the specific purpose of reviewing, advising and supporting proposed energy projects brought before the Committee. A motion was made and seconded (I didn’t catch the maker and second to the motion — anyone remember?) to send a letter to the Denali Commission with comments regarding their draft policy requiring a 10% local match contribution on all Denali Commission grants. Larry Markley, Bill Allen and Bob Grimm all provided suggestions with respect to the draft policy. Motion passed unanimously. It was also requested that Dave Carlson’s signature be added to the letter along with other Southeast Conference signers. A discussion took place about the status of the Intertie projects in Southeast Alaska and some committee members expressed frustration and concern about the Swan-Tyee project and lack of participation by the Four Dam Pool in the Energy Committee. There were views expressed that the Four Dam Pool has not been forthcoming with information on the status of the project and the need for additional funding. Jerry Medina moved and Vern Rauscher seconded a motion prioritizing the three projects under development as follows: Juneau to Hoonah — number 1; Kake to Petersburg — number 2; and Swan/Tyee — number 3. Considerable discussion followed. Motion failed on a tie vote. The meeting adjourned around 12:00 pm. * * * * . ,__ Southeast Conference sities _ P.O. Box 21989 Juneau Alaska 99802-1989 — Tel. (907) 463-3445 Fax (907) 463-5670 March 24, 2005 Mayor Patricia Phillips City of Pelican PO Box 737 Pelican, Alaska, 99832 Subject: Letter of support for the transfer of electrical utility ownership to the City of Pelican Dear Mayor Phillips, The Southeast Conference Energy Committee met on February 3, 2005 and again on March 22, 2005 to discuss the current electrical energy situation in Pelican and the steps the City of Pelican and Kake Tribal Corporation are taking in an effort to come up with a long-term energy solution for your community. The Pelican Utility District, a subsidiary of Kake Tribal Corporation, presently supplies electricity to the residents and consumers of Pelican. The City of Pelican and Kake Tribal Corporation have reached an agreement, in concept, whereby the Certificate of Public Convenience and Necessity and utility assets would be transferred to City of Pelican. The City of Pelican has been working with the Alaska Energy Authority to identify required improvements to the existing hydroelectric plant, auxiliary diesel generators and tank farms. Kake Tribal Corporation and the City of Pelican have submitted federal appropriation requests to transfer the utility and make necessary improvements to the existing plant. Southeast Conference supports the transfer of the electric utility from Kake Tribal Corporation to the City of Pelican and supports the requests for funding to accomplish the transfer of the utility and upgrade the existing utility plant. Sincerely, Rollo Pool Dave Carlson Executive Director Energy Coordinator (Unanimously approved by the Southeast Conference Energy Committee on March 22, 2005) * * * * . | ‘Southeast Conference jsiliee P.O. Box 21989 Juneau Alaska 99802-1989 — Tel. (907) 463-3445 Fax (907) 463-5670 A RESOLUTION BYTHE SOUTHEAST CONFERENCE SUPPORTING FULL FUNDING OF THE POWER COST EQUALIZATION (PCE) PROGRAM (Resolution 05- ) WHEREAS, Electricity is the single most important element of any community's infrastructure that supports life, health and safety, and without which no economic development or self-sufficiency can be obtained, and WHEREAS, Power Cost Equalization (PCE) is a vital program that makes it feasible for rural Alaskans to have access to affordable electric power and for rural communities to have access to affordable electric power for streetlights, water and sewer facilities and other essential infrastructure, and WHEREAS, The State of Alaska has established the PCE program but has not adequately funded the program. The current funding level is only 65%, and WHEREAS, At current utility costs, a sum greater than $21 to 25 million a year would be needed to adequately reduce the consumer cost of 30% of rural Alaska’s electricity to a level more than twice that in urban Alaska, and WHEREAS, Governor Frank Murkowski has proposed in his budget a line item of $20 million for PCE funding for the upcoming fiscal year, and WHEREAS, the State of Alaska is currently enjoying a budget surplus because of high oil prices it is only fair that part of the surplus be used to help offset the high energy costs in rural areas caused by the high oil prices. NOW THEREFORE, BE IT RESOLVED THAT: Southeast Conference and its Energy Committee support full funding of the PCE program, and additionally supports an increase in supplemental appropriations to fully fund the PCE program for the balance of this fiscal year. (The Energy Committee unanimously approved this resolution at the March 22, 2005 meeting in Juneau) Request for Review of Energy Projects and Proposals Southeast Conference Energy Committee The Southeast Conference Energy Committee provides a vehicle for communities and energy companies to work together on energy supply issues in Southeast Alaska. It provides a forum where energy problems and opportunities can be presented, discussed, and analyzed, and region-wide support can be gained for appropriate projects and initiatives that enhance the energy infrastructure of the region. The Energy Committee membership is comprised of utility and community leaders who together have a wealth of knowledge in the energy industry. One of its goals is to share this knowledge throughout the region and to assist and support worthwhile energy projects. The Committee therefore invites people with serious energy-related concerns or proposals to bring them to the Committee’s attention for its review and response. For the Energy Committee to consider involvement with a new project or proposal, it must first receive essential information. It requests that such information be provided as completely as possible in the following format electronically to dcarlson@seconference.org or in paper form to Dave Carlson, Southeast Conference Intertie Coordinator, PO Box 329, Petersburg, AK 99833, Heading: Name and location of project 1. Summary description of the project — type, size, purpose, cost. 2. Name of the project sponsors (utility/community/private), contractors, managers. 3. Detailed description of the intended impact of the project on energy users, the environment, the economy. How will this project benefit the consumer? Will this project displace diesel generation? How will the proposed project be funded - grants, rates, loans, etc.? Status report on progress to date with the project. Description of remaining work and target completion dates. Other relevant information may be included wherever it best fits in the discussion. Any concluding statements Pictures, maps and other visuals are encouraged to enhance the understanding of a project. OMNAOP If the sponsor of a project is seeking Southeast Conference support or endorsement for the project, the following additional information should be provided: 1. The name and identity of the person, community or utility seeking support. 2. Names of other persons and entities currently supporting the project. 3. The specific nature of support being requested — i.e., for funding requests, permitting/licensing, legislative lobbying, endorsement, technical, strategic, etc. Names of persons and organizations in opposition to project and their reasons. Explanation of the project’s regional benefits. Reasons why Southeast Conference and the Energy Committee should lend their support? Dates by which different aspects of support for the project is needed. Any other information or arguments which will assist the Committee and Southeast Conference in reviewing the project or proposal. ar N@ The Energy Committee meets as needed and at least quarterly. Contact Dave Carlson at (907) 772- 4269 for meeting dates. Absent special circumstances project information must be submitted at least two weeks prior to a meeting to allow circulation to Committee members. ¢ Our vision for Southeast Alaska is to reduce, to the maximum extent possible, the use of diesel as a primary fuel source for the generation of electricity. ¢ This will be accomplished through the utilization of the regions plentiful hydroelectric potential and the development of an interconnected transmission system to share these resources throughout the region. —ee= JGCH PROJECT - SUBMARINE CABLE ees JOCK PROJECT - OVERHEAD T-LINE — EXISTING OVERHEAD T-LINE & SUBMARINE CABLE == PROPOSED OVERHEAD T-LINE LAKE DOROTHY @ >=PROPOGED LAKE DOROTHY POWERPLANT @ START POINT OF JGCHI PRO ADMIRALTY ISLAND Project Construction Schedule (Segment 1) 2004 - COMPLETED All Permitting for Segment 1 Final engineering, design specifications and bid documentation for overhead line from Young Bay to Hawk Inlet. (4-1/2 miles of 69kV line) Final engineering of submarine cable termination yards Final engineering, bid specifications and documents for submarine cable from ND to YB. Overhead line construction from Young Bay to Hawk Inlet. Preliminary Civil preparation of submarine cable termination yards at North Douglas (ND) and Young Bay (YB). 2005 - COMPLETED e Received financial award from Denali Commission for 2005 Construction Activities e Signed contract for submarine cable installation between ND & YB e Completed Pre-Install ROV Inspection of Cable Route at ND subcable approach e Issued RFP for civil construction at ND and YB termination yards 2005 PLANNED ACTIVITIES Submarine cable installation from North Douglas to Young Bay. (9-1/2 miles) Installation of ND and YB submarine cable termination yards. Installation of the Hawk Inlet Ore Loading facilities Substation. Overhead line construction from Hawk Inlet to the Greens Creek Mine. (8-1/2 miles of 69kV line) Installation of Greens Creek Mine Substation Project Construction Schedule (Segment 2) (Work will be based on obtaining the necessary appropriations from the Federal Government. ) eA eat) e Building up of federal grant funds for construction of the submarine cables and overhead lines to Hoonah. geet] tT) e Bid specification and bid documents for submarine cable and overhead transmission line to Hoonah e Final permit authorization/acquisition for Segment 2 of project ~ 2009 e Construction/installation of submarine cable and overhead transmission line to Hoonah. Highlights from 2004 < Achievements and progress since startup in February ‘04 © Federal Funding $2,000,000 for Engineering , permitting and A-Road Line construction received from the Denali Commission © Permitting began 9/03 and all permits for line construction received 9/04 ¢> RFP for Line Design Issued 3/04 & Line design complete and Bid Specs for RFP for the Line Construction issued 7/04 “ Kwaan Electric Transmission Intertie Cooperative Formed 8/04 © Routing Survey for the Submarine Cable between N. Douglas and Young Bay performed 8/04 © Bids Received for A-Road Line Construction 8/04 € Construction Began with R.O.W. Clearing for A-Road 9/04 & Line Construction & YB Term. Yard Civil Completed 10/19/04 > RFP for Supply & Installation of Submarine Cable completed 12/15/04 & ND & YB Termination Yards Design & Spec. 85% complete in ‘04 '04 Photos (cont.) ae ap, le a ¢ 4 > et ee . a ao te Es Ae its a” _§ ¥ Local een nien Berea EeNente & ony Walker (yellow Beeps working with Contractor (white hardhat) on placement of Power Poles 04 Photos (cont.) Local contractor (Glacier State) Drilling into rock for anchor rods > ‘04 Photos Pole as framed, set and anchored. ‘04 Photos (cont.) re) Renn Kena State) Went fea menyl Prenat lan the termination yard at Young Bay a nies aes Local wildlife look on as construction takes place along their habitat More locals along the A Road. Project Photos - 2005 ‘05. Marking power pole location along Surveyor working in February ae ) O S 4°) od sue bo) oD) Eo a A= Nag fo) Se 1S) p23) a ra s<D) — fo) o) D a © el dt a © fe) % aa) Aust SHE cass i ek Ta AEL&P Representative, clearing snow around a stake for a power pole location after a winter storm covered the area. (B-Road Transmission a ¥ One of the local Blacktail Deer snacking on blueberry bushes as surveyors work on the other side of the B-road Here a local contractor is preparing the “missile” ROV that will be used for an underwater inspection of the submarine cable route. Pi <a = : 205 Photos ra t ae ss comms Here a local contractor is drilling and blasting for the submarine cable trench at North Douglas. Rae ee i oo 59 dae . SB are My sr | ae Ls Ray ge > ie i ORR eee Bt Bs os core + , Rue re S ates Cr aad ~~ ee eee ee Ea ae ae Be cael id eae ead 14) fo} 17) Ww Bis, ey) = fe) (aa < 4 — fo) Fa ~ 140) BS fe} i= a Wn id oe 14) D = ey) ae bo) 2 — fe) — O 4°) a oe (ox fe) 1) i 3) u © D oo o) He 2) i" 179) 5) i =) =) S) 0) qa Ww = i 0 O aaa ace. Sy & fo} oF) D (Omran 05 Photos (cont. ) Here the geologist inspecting the recently excavated test hole. —e: JOCH PROJECT - SUBMARINE CABLE ———— —- JSCH PROJECT - OVERHEAD T-LINE eee EXISTING OVERHEAD T-LINE & SUBMARINE CABLE —_ee= PROPOGED OVERHEAD T-LINE LAKE DOROTHY POWERPLANT ADMIRALTY ISLAND @ PROPOSED LAKE DOROTHY START POINT OF JGCHI PRO PROPOSED LAKE DOROTHY POWERPLANT Kake to Petersburg Intertie - Planning Study Kakee —Iet|rs Sere nl © ee tne Project Scope @ Alternative Route Assessment @ Develop Cost Estimates @ Update Load Forecasts & Power Production Costs @ Preferred Route Site Evaluation @ Electric Load Flow & Design Configuration @ Economic Analysis @ Permitting Strategies & Environ. Assessment Planning Study Milestones @ Contract awarded to D. Hittle & Associates in September, 2004 @ Commonwealth Associates & CH2MHill as subconsultants @ Field work conducted in Sept, 2004 @ Draft Report due May 1, 2005 @ Final Report — May 31, 2005 @ Presentation of Study Results - TBD Kake-Petersburg Steering Committee @ Mayor Ted Smith — Petersburg @ Mayor Paul Reese — Kake @ Vern Rauscher — IPEC @ Bob LeResche — Four Dam Pool @ Dick Olson — Thomas Bay Power Authority @ Gary Williams - OVK Steering Committee has met several times to ‘screen-out’ route alternatives ae of Kake-Petersburg Vicinity Field Investigation Pictures Petersburg AK : i Portion of the City of Kake Typical Forest Road on Kupreanof Island d Road issione Forest Service Decomm Proposed location of Wrangell Narrows crossing East side of Duncan Canal looking North Northern Route — Frederick Sound City of Pelican HAS AGREED IN CONCEPT TO PURSUE OWNERSHIP OF THE PELICAN SEAFOODS FUEL DOCK AND ITS BULK FUEL TANK FARM FACILITY AND THE CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY (#24) FROM THE PELICAN UTILITY DISTRICT, DIVISIONS OF KAKE TRIBAL CORPORATION. Bulk Fuel Tanks Cat pense! provides backup Power Hydroelectric bldg w/penstock — ater Source W ing k Drin Pelican Tom Whitmarsh, Chief Engineer 32 year resident of Pelican Pee ee et 3a "3 , = Respective Roles of KWETICO & Southeast Conference | = >= >. > > = : > | = a => [= 7 = a = - > > = = = = = => J > > =~ iad => > ad => = ad = = = >= => 2 > = a = > =~ Excerpt from Memorandum Of Understanding between KWETICO & SEC F. Although KWETICO is a separate legal entity with independent duties and responsibilities to its members, both Parties agree that there will be a need for ongoing cooperation and consultation between KWETICO, SEC, and the SEC Intertie Committee (or its successor committee) to ensure fulfillment of the mutual goals of both Parties and the objectives of the Southeast Alaska Intertie Project. In this respect, each of the Parties will have the following general roles, but will cooperate and consult with one another regarding issues of mutual importance: (1) SEC Roles. (a) Perform strategic planning and analysis regarding future Intertie Segments in Southeast Alaska, including analysis of electric generation resources and load requirements, engineering and permitting requirements, costs and benefits of interconnection between Southeast Alaska communities, and proposed prioritization of future Intertie Segments for incorporation into the KWETICO system; (b) Provide assistance and support in obtaining grant funding for future Intertie Segments to be incorporated into the KWETICO system; (c) Assist in the development and application of KWETICO’s “imminence” criteria and “economic feasibility” standards; and (d) Provide input to KWETICO regarding KWETICO planning issues that relate to economic development in Southeast Alaska, and participate on advisory committees established by KWETICO. (2) KWETICO Roles. (a) Cooperate and consult with SEC regarding existing and new Intertie Segments to be incorporated into the KWETICO system; (b) Plan, design, and construct new Intertie Segments that meet established criteria; (c) Acquire existing Intertie Segments that meet established criteria, if and to the extent that the current owner desires to divest itself of such segments; (d) Own, operate, maintain, and manage the Intertie Segments and telecommunications plant, facilities, and equipment collocated with the Intertie Segments; and (e) Provide electric transmission and ancillary services and telecommunications services through Intertie Segments owned and operated by KWETICO, and obtain the revenues necessary for operation and maintenance of the Intertie Segments. Simply Put..... e Southeast Conference will continue to provide strategic planning, segment prioritization, help obtain grant funding, and conduct initial analyses of future segments e KWETICO’s primary role is to own, operate, maintain and manage the Intertie segments e KWETICO’s membership is limited to users of system; SEC has broad membership from throughout the region ~*~ 2 => oe = > = _ = > ad = = - > => = 2 = = = => => = = => = The Alaska Energy Authority’s (AEA) Small Energy Projects in SE Alaska by David Lockard, P.E. Outline » AEA Programs Overview m AEA’s recent and planned projects in Southeast Alaska = Question and Answer Session (5 minutes) Alaska Energy Authority Mission Assist in the development of safe reliable, and efficient energy systems throughout Alaska, which are financially viable and environmentally sound AEA website: http://www.aidea.org/aea.htm = Description of programs = Forms and manuals to download = Conference/workshop proceedings = Regulations and statutes governing AEA = Contact info Alaska Rural Energy Plan, April 2004 (available on website) Volume |, Cover Page Volume |, Executive Summary Volume Il, Cover Page Volume II, Table of Contents and Abbreviations Volume Il, Section 1, New Efficient Diesel Generator System Volume Il, Section 1, Part 2, New Efficient Diesel Generator System Volume Il, Section 2, Cogeneration Systems Volume Il, Section 2, Part 2, Cogeneration Systems Volume Il, Section 3, Wind-Diesel Hybrid System Volume II, Section 3, Part 2, Wind-Diesel Hybrid System Volume Il, Section 3, Part 3, Wind-Diesel Hybrid System Volume II, Section 4, End Use Energy Efficiency Funding sources Denali Commission (primary source) EPA Dept of Agriculture- RUS State funds Dept of Education funds Community Development Block Grants Indian Community Dev. Block Grants Local in-kind match Local cash contribution AEA Funding in millions ($) since Denali Commission started (1999) Local Denali USDOE & cash Category Commission USDOD EPA State match Other Total Bulk fuel $76.2 $0.0 $7.2 $8.3 $5.9 $2.6 $100.2 Rural power systems $35.0 $0.0 $0.2 $0.8 $2.4 $0.1 $38.5 Alternative energy $18.7 $22.4 $0.0 $0.5 $45.1 $0.1 $86.8 Other $17.5 $1.8 $1.8 $9.8 $0.0 $3.9 $34.8 Totals: $147.4 $24.2 $9.2 $19.4 $53.4 $6.7 $260.3 AEA’s Bulk Fuel Upgrade Program = Projects are covered by Denali Commission guidelines = Projects are prioritized based on an assessment program and a deficiency list Completed 41 projects in last 4 years Approximately $85m spent Over 100 communities left to address Meets state and federal code and regulatory requirements Construction method is usually modified force account Construction trades and operator training are integral Off-loading new tanks from barge in Chignik Bay New Chignik Bay tanks Port Graham construction AEA’s Rural Power System Upgrade Program = Projects are covered by Denali Commission guidelines = Projects are prioritized based on an assessment program and a deficiency list = Completed 18 projects in last 4 years = Approximately $30m spent = Over 100 powerhouses and 4 distribution systems left to address = Meets state and federal code and regulatory requirements = Construction method is usually modified force account = Construction trades and operator training are integral Model energy project in Kokhanok = Community of 166 people on Lake Iliamna = Previously had two powerhouses: school and village = School and Council MOA to combine fuel storage and powerhouse = Commercial electric rates for school = Heat recovery for school Previous tank farm in Kokhanok Kokhanok Bulk Fuei Storage Assessment Report Site Assessment: 05/18/98 Kokhanok, Tank Farm 3 View of dike construction. Kokhanok, Tank Farm 3 Shack, dispensers and misc. New tank farm in Kokhanok A First fill-up at Kokhanok tank farm Stony River powerhouse eit» Inside Stony River powerhouse a let New powerhouse in Kokhanok Inside new Kokhanok powerhouse Day tank Custom built Relays instead of printed circuit boards Interfaces with used oil blender Float switches and alarm horn AEA training: construction = Heavy equipment operator = Certified pipe welder = Diesel mechanic apprentice AEA training: operator and clerk =» Bulk fuel operator =» Hydroelectric plant operator = Powerplant operator =» Advanced powerplant operator a Utility clerk AEA’S Alternative Energy Program = Hydroelectricity a Wind = Biomass = Transmission and distribution = Geothermal = Solar = Diesel generation efficiency = End-use efficiency = Fuel cells Power cost equalization program = Economic assistance to customers in rural areas of Alaska = Cost of electricity in rural Alaska is 3-5 times higher than in urban areas = 79,000 people live in eligible communities = $15.6m in disbursements in FY04 = More detail available on AEA website = Handouts available | MARK YOUR CALENDARS! Please join us for the Rural Energy Conference September 20-22, 2005 Valdez, Alaska Diesel Generation Alternative Energy Utility Management Energy Efficiency The Changing Face of Energy Funding Opportunities in Rural Alaska For more information, contact: ! Rural Energy Conference P. O. Box 755910 Fairbanks, AK 99775 r 4 Email: fyaetdl@uaf.edu www.uaf.edu/aetdl *Abstract Papers Due AIDEAVABIA tno UF June 1, 2005 oY LAR FAIRBANKS Climate change workshop = For engineers designing for rural Alaska conditions = Topics to include foundation design and site choice = Permafrost, flooding, erosion a» ANTHC, VSW, AVEC will also participate = In Anchorage in June 05 : ap SE Alaska project review = Angoon = Kake =m Tenakee Springs = POW Island = Pelican a» Skagway/Dyea = Elfin Cove = Sitka = Hoonah = Regional high = Gustavus resolution wind = Yakutat resource map = Angoon powerhouse upgrade and heat recovery project = Final design stage Tenakee Springs project = Final design completed, funding requested m #2 diesel- 27,000 gallons = #1 diesel- 22,000 gallons = Gasoline- 21,000 gallons = 3 new gensets- total capacity = 270kW = Programmable automatic paralleling switchgear = Upgrade single phase leg to three phase distribution system Tenakee Springs barge header ee Tenakee Springs tank farm Tenakee Springs tank farm valve Tenakee Springs switchgear Tenakee Springs project costs = Bulk fuel upgrade: $1.2m = Powerhouse upgrade: $1.1m = Distribution system upgrade: $70,000 Pelican energy project = Conceptual design started scope may include: = Tank farm upgrade = Hydro system repairs and improvements = Distribution system upgrade = New diesel power module ican tank farm Pel hydro penstock Pelican Pelican Seafoods powerplant Elfin Cove energy project = Conceptual design report funded, but not started yet = Possible powerhouse upgrade = Tank farm already completed by community = Possible hydro site 2 Elfin Cove tank farm Elfin Cove fuel pumphouse : Elfin Cove powerhouse Hoonah energy project = Tank farm conceptual design funded = Project delayed = Site visit planned shortly = IPEC received funding for diesel efficiency improvement (grant/loan) pees Be pee ee Gustavus energy project = Falls Creek hydro = $1m Denali Commission funding through AEA = $2.9m additional funding = Bulk fuel upgrade conceptual design report funded but not started Yakutat energy projects = School lighting retrofits completed ($27k) = Heat recovery system installed long ago = Powerhouse upgrade in design = Heat recovery system upgrade in design = Diesel efficiency grant in final stages ($500k, % local match) a Wind monitoring ongoing 2 POW bulk fuel projects = Point Baker tank farm in final design = No wind or hydro opportunities at Point Baker = Kasaan bulk fuel project in conceptual design POW automatic paralleling switchgear for AP&T sites = Hydaburg = Coffman Cove = Thorne Bay = $318k grant/$181k utility match 2 POW biomass project = AEA and the U.S. Forest Service are assisting the City of Craig and a number of other communities on Prince of Wales Island plan and develop modern, clean- burning boiler systems that use local sawmill wastes to heat schools and other community buildings 3 mmBtu/hr waste-fired sawmill in Montana POW grid extension model AEA sponsored the Institute of Social and Economic Research at UAA to prepare a grid extension model that will help AP&T and Prince of Wales Communities to assess costs and benefits of extending the power grid to communities on the north end of the island. Currently in draft. Distance Between Nodes o| 1 3] 4 Control Lake Oo FR 23 Junction 1[_16 Coffman Cove 2 24 Naukati 7 3 11 Neck Lake 4 17 5 a Porhouter meses | — 3-1 tt 35 POW South Fork hydro and intertie = AEA and its federal partners are supporting design and construction of the 2 MW South Fork hydro and an intertie project on the southern end of Prince of Wales Island (has connected Craig/Klawock-Black Bear Lake/S Fork Hydros with Hydaburg, Thorne Bay, Kasaan, Hollis). It should be complete by 12/05 Skagway-Dyea line extension = 2.9 miles a $450k a Working with DOT = Project delayed Sitka energy projects = Energy efficiency project at Sheldon Jackson recently completed (lighting, thermal measures, electrical upgrade) = Sitka diesel efficiency project completed AEA’s Wind Energy Program = Met tower loan program (application on website) = Wind resource data collection and analysis = Computer modeling using HOMER and HYBRID2, which were written by NREL a Wind turbine project development part of powerhouse upgrade program Khe id: Need to know the resource o 5 100 200 OO ChE A =a ee ta New map de) = _ Power Density at 50 meters NREL Class Wim2 100 - 200 sa + °° City /N/ Roads Glacier Lake/Reservoir ce aa County | Summary = AEA is working on energy projects in SE Alaska from Yakutat to Hydaburg = These projects range from high-efficiency lighting in schools to hydropower development and the PCE program = There is significant potential to benefit SE communities by taking full advantage of AEA projects, programs and resources Questions for audience =» ¥Howcan SE Alaska benefit most from the resources of AEA? m Which energy technologies are SE decision makers most interested in? a What opportunities are there to incorporate new hydro, tidal, wave, or wind projects into planned intertie development? =» Howis climate change affecting infrastructure design in SE Alaska?