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HomeMy WebLinkAboutHaines-Skagway Submarine Cable Informational Packet 1997HAINES/SKAGWAY SUBMARINE CABLE INFORMATIONAL PACKET | Upper Lynn Canal o | Goat Lake Hydro | Natl Historic Park | | Alaska Chilkat Bald Eagle Preserve jukwan ao Klukwan Ir Seven Mile T-Line Gap {© 1996 DeLorme t Atlas USA hag 10.00 ue Sep 23 15:16 1997 Major Connector =—" National Boundary | Scale 1:500,000 (at center) Major Forest Road Population Center ' 10 Miles umm State Route Land Ferry HSS water 10 KM Point of Interest (umm Zipcode Boundary Small Town a Sd & Park/Reservation ° Locale FINAL REPORT Bathymetry & Side Scan Sonar Cable Route Survey for Pirelli- Jacobson Inc. and Alaska Power and Telephone DATE: 6 June 1997 CRA-NW Job# : 97010 Location:Haines to Skagway CABLE ROUTE SURVEY CRA-NW was selected to perform a side scan survey and bathymetric survey of the Goat Lake Hydro Project of Alaska Power and Telephone for Pirelli-Jacobson. This is a cable route project spanning from Haines to Skagway, Alaska. In addition an intermediate landing site at Otter Creek located approximately three to four miles south of Skagway was incorporated for future tie ins. The survey took place from 21 April 1997 thru 28 April 1997. Mobilization and demobilization took place outside of this work window. The data was collected and preliminary products were created and delivered for the client’s viewing and comments. After several iterations a final product of plan and profile with contours plus side scan sonar charts was agreed upon and delivered on 6 June 1997 to Pirelli-Jacobson in Seattle, WA. BATHYMETRIC SURVEY Methodology: The bathymetry data was collected using a state-of-the-art bathymetry system. The Innerspace 440/441 single beam dual frequency system is capable of collecting data both in shallow and deep water environments. This system is coupled with a DGPS positioning system via a computer using CRA-NW’s software designed especially for this real-time acquisition. Data was collected moving parallel with shore centering between land masses to place the cable in the middle and the deepest part of the channels. As the most important part of this survey is to develop a route and then determine cable length all baythmetry data was reduced for tides to give the highest vertical accuracy. The vertical control was provided by using tidal transfers with predicted tide tables. In addition all three landing sites (Haines, Kasidaya, Skagway) a land survey was done to give a full data set for a complete cable route design. This data was done using DGPS and a Lasertrak with a computer to give a full 3-D line length calculations. The land and marine data sets were merged and imported into an AutoCAD software package to generate final chart products. Equipment: A. Innerspace 440/441 depth sounder (single transducer). B. Trimble DSM-Pro GPS with USCG correctors. C. CRA-NW navigation software (HP based). D. M/V Thunderbird (hired from Tyee Maritime in Sitka, AK.) SIDE SCAN _ SONAR SURVEY Methodology: The side scan sonar survey was performed in conjunction with the batymetric survey. The survey was performed utilizing the same navigation system and vessel as used for the bathymetry survey. The side scan sonar system used for the survey was a Klein digital slant correction system, model 595. The side scan sonar was integrated with an "ISIS" data processing system allowing for real time geocoding of the digital data from the side scan sonar sensor as it was towed along the bottom. The bottom features were displayed both on the side scan sonar recorder and on the data processor's PC monitor. The digital data was stored on optical disk for archive and generating a digital strip chart. During the field data collection the side scan sonar was towed along 100 meter track lines with the sonar scanning at a 200 meter swath. Using this configuration, a 200 percent overlap of side scan sonar coverage of each line was accomplished. Upon completion of the survey a digital strip chart of the surveyed area was prepared. The digital strip chart includes geocoded imagery of the water bottom features and can be quickly recovered from the archive data. Equipment: A. Klein 595 side scan sonar. B. Triton ISIS digital monitoring logging system. C. Klein 100khz. PROJECT LIMITATIONS: This survey has proved to be one of the most challenging for our team in recent years due to the isolation and remoteness of the survey area. The area in question for study contained very deep water depths, up to 1500', with some very steep channels. This caused considerable need for monitoring the bathymetry data so as to ensure proper bottom tracking. In additional the side scan sonar fish was towed at layout lengths of up to 2500’. The high mountains was initially a concern on the quality of GPS satellite signals reception. But the full GPS satellite constellation is in place and the survey encountered no problems with signals at any time.. FIELD ACTIVITY: April 18-20, 1997- Mobilization. April 21-22, 1997- Scouting landings. April 22-28, 1997- Field surveying. April 29, 1997- Demobilization. May 6 23, 1997- Editing and processing first rendition of charts. June 6, 1997- Final delivery of product. HORIZONTAL CONTROL: Trimble DSM-Pro with USCG correctors working in the NAD-83 ellipsoid on the UTM zone # 8 projection using meters. TIDE DATA: Predicted tides was generated using ‘Tides & Currents’ software from Nautical Software Inc. on six minute intervals for importing into the data editor. reco JACOBSON, INC. 5355 - 28TH AVE. NW. * SEATTLE, WA 98107 * (206) 782-1618 October 27, 1997 Alaska Power & Telephone 191 Otto Street P.O. Box 3222 Port Townsend, WA 98368-0922 Re: Haines - Skagway 35kV Submarine Cable Dear Bob, As per your request find attached a copy of the Cable Installation Agreement and the additional order for two splice kits. As you know, we have sent to Mr. Neitzer on October 2, 1997, the cable arrangements in the vaults. Please inform if you would require the armor clamps and or any other supporting material for the cable in the vaults or if you prefer to provide by yourself. As to now, these items are still pending. “Dy yours, Pietro Mondini Vice President Pirelli Jacobson, Inc. PM/sk F:\USERS\SUSAN\MSOFFICE\WORD\LETTERS\1027APT.DOC Alaska Power & Telaphone Company 191 Otto Street- PO Box 3222 Port Townsend, Wa 98368-0922 Alaska Power & 800-982-0136 ext.120 eee _Telephone Co. bobapt@olympus.net ax To: Pietro From: Bob Grimm Pirelli Jacobson Fax: 206-789-2851 Pages: (Click here and type # of pages] Phone: [Click here and type phone number] Date: May 30, 1997 Re: [Click here and type subject of fax] cc: [Click here and type name] X Urgent O ForReview (0 PleaseComment OC Please Reply O Please Recycle @ Comments: Please order the splice kits for the submarine cable and fibre. | am looking forward to reviewing the marine survey and vault designs. Please provide a quote for the Armor Clamps. Thanks. (ob Bob Grimm FACSIMILE ee A ee a ee Date: May 29, 1997 Fax Reference Number: PJI-9273-P’ To: ALASKA POWER & TELEPHONE Attn: MR. BOB GRIMM From: PIETRO MONDINI Pages (including this cover): 1 If you have any problems with this transmission, please call us at (206) 782-1618 / fax (206) 789-2851 RE: HAINES - SKAGWAY PROJECT Dear Bob, Following our fax 9267-PM dated May 27, the cost for two submarine repair splice kits for power and fib optic joint is 66,500 U.S.D. Please inform your decision ASAP. Best regards, Uy piled des Pietro Mondini PM/sk S355 28th Avenue N.W.***Seattle, WA 98107°**U.SA. CABLE INSTALLATION AGREEMENT THIS CABLE INSTALLATION AGREEMENT, dated as of March 26 1997, is entered into by and between Alaska Power & Telephone Company, located in Port Townsend, Washington (“APT”) and Pirelli Jacobson, Inc., located in Seattle, Washington, USA (“PJT’). The parties hereby agree as follows: 1. Work to be Performed. Subject to the terms and provisions of the Terms and Conditions attached hereto as Exhibit A and incorporated herein by reference, PJI shall install certain submarine cable between Skagway, Alaska and Haines, Alaska, and perform other services as specified (collectively, the “Work”) as described in the PJI offer letters dated October 22, 1996 and February 4, 1997 (revised February 10, 1997) and all technical information and specifications attached thereto, all of which are attached hereto as Exhibit B and incorporated herein by reference (together with all attachments thereto, the “Offer Letters”). In addition, PJI will conduct the necessary marine route survey (the “Survey”) in accordance with PJI’s letter dated January 31, 1997, attached hereto as Exhibit C and incorporated herein by reference (the “Survey Letter”) and the Kasidaya Creek Landing letter dated March 17, 1997. Purchase Price. In consideration of the Work performed by PJI, APT shall pay the following purchase prices: (a) Purchase price for cable $3,000,000 USD (b) Transportation of Cable $ 600,000 USD (c) Cable Installation $1,550,000 USD Kasidaya Creek Landing $ 110,000 USD Additional Costs. The prices listed above do not include: (a) Cable burial - Tidal or otherwise (b) Local & State sales taxes (c) Cable length in excess of 90,000 feet (d) Terminating of cables and any civil works (e) Permitting and Right-of-Way costs (f) Standby costs for delays caused by APT. Such delays could occur if APT prevents PJI from performing when equipment and personnel are already mobilized. In such events, a standby cost of $2,000.00 US per hour will be charged to APT. Any of the costs listed in this Section 3 shall be paid by APT in addition to the prices listed Section 2 hereof. 4. Terms of Payment. Payments shall be made in milestone payments as follows: (a) 5% of total contract price upon execution of this Agreement: (b) 5% of total contract price at completion of Survey and placement of cable order with manufacturer, plus cost of survey per 1/31/97 letter ($74,650.00) (c) 50% of total contract price at completion of cable factory tests; (d) 15% of total contract price at completion of cable loading at factory; and (e) 25% of total contract price, together with all additional costs and other amounts due, at final testing on site after completion of installation work. Payments shall be made within 10 days of receipt of invoice. 5: Cancellation Charges. APT agrees that, in the event that it cancels this Agreement after the cable order has been placed with the factory, it will pay a cancellation charge in accordance with the following schedule: Time After Order Cancellation Charge Within 1 calendar month 15% of cable price During second calendar month 40% of cable price During third calendar month 80% of cable price During fourth calendar month 95% of cable price After fourth calendar month 100% of cable price 6. Start of Installation Work. Start of the installation work on site shall occur no earlier than March 1, 1998, and is expected to be completed in approximately thirty (30) days. Oe Work Schedule. The parties shall agree to a work schedule, taking into consideration the expected production for the cable manufacturer. IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement as of the date first written above. Pirelli Jacobson, Inc. EXHIBIT A Exhibit A TERMS AND CONDITIONS These Terms and Conditions (“Terms”) shall apply to, and be a part of, that certain Cable Installation Agreement dated ___, 1997 by and between Alaska Power & Telephone Company (“APT") and Pirelli Jacobson, Inc. (“PJI") for the installation of submarine cable between Skagway, Alaska and Haines, Alaska (the “Agreement"). All future references herein to the Agreement shall be deemed to include these Terms and all other attachments, exhibits and schedules to the Agreement. All performance by the parties under the Agreement shall be subject to the provisions of these Terms. I. Scope of Work. A. PJI shall perform and successfully complete all Work required by this Agreement. PJ! shall perform the Work in a manner sufficient to satisfy all performance criteria set forth in the specifications attached to the Offer Letters in Exhibit B. and shall be solely responsible for all means, methods, techniques, sequences, procedures, and safety programs in connection with the performance of the Work. Il. Obligations Contingent. The obligations of PJ! set forth in the Agreement are conditioned upon, and shall be contingent upon the conditions stated in the Offer Letters. lll. Personnel. PJl shall provide personnel as described in the Agreement and the Offer Letters, who shall be competent and experienced personnel. IV. Additions, Deletions and Alterations. A. No additions to, deletions from, or alterations in the Work and no amendment or repeal of, and no substitution for any other terms, conditions, provisions or requirements of the Agreement shall be made unless agreed to in a writing signed by both parties. APT may make any additions to, deletions from or alterations in the Work at any time. If such a change is required, APT shall notify PJl of the desired change and PJI shall provide APT a written estimate of any cost or schedule modifications within 14 days. APT’s approval of such modification shall be indicated by a written change order. VII. VII. Equipment and Services Furnished. A. PJI shall furnish the equipment and services set forth in the Offer Letters. B. APT shall furnish any equipment and services set forth in the Actreeinent. and Offer Letters to be furnished by it. Performance and Schedule. PJI shall perform the Work in accordance with the work schedule to be agreed upon between the parties prior to commencement of the work (the “Work Schedule”), and shall maintain a labor force of sufficient size and competence to complete the Work in accordance with the Work Schedule. Price and Payment. The contract price to be paid by APT and PJI shall be as set forth in the Agreement, as such price may be adjusted through change orders (the “Contract Price”). Terms of payment of the Contract Price shall be as set forth in the Agreement. APT shall make payments upon receipt of an invoice from PJI. Final Acceptance and Final Payment. When PJI deems the Work complete, PJI shall give APT written notice of completion. APT shall determine whether it deems the Work complete, and shall give written notification of its determination. A. If APT deems the work complete, PJI shall be entitled to payment of the final payment described in the Agreement, together with any and all other moneys remaining due but unpaid to PJI. B. If APT deems the Work not be complete, APT shall state in writing to PJI which portions of the Work are unacceptable to APT. PJI shall correct such unacceptable portions or contest APT’s determination. In the event of a contest, the parties shall negotiate in good faith to reach a suitable compromise. Security. APT shall assist PJI in ensuring the security of all equipment and cable during the progress of the Work. Warranties. A. PJI warrants that (a) all work shall conform to the specifications and other requirements of the Agreement; and (b) all services provided by PJI shall be consistent with recognized and sound engineering, installation, construction and testing practices and procedures and shall conform with the standard of care typical in the industry. XI. Xil. XIll. XIV. B. If prior to the expiration of one (1) year after the date of final acceptance of the Work, APT notifies PJl in writing that any part of the Work fails to comply with warranties set forth in Section X.A, PJI shall, at its election, either (a) repair, replace or otherwise cure such nonconforming work, or (b) refund the amount of money paid by APT attributable to such noncomplying Work. Cc. THE WARRANTIES SET FORTH ABOVE ARE IN LIEU OF, AND P4Ji DISCLAIMS ANY AND ALL OTHER WARRANTIES, WRITTEN OR ORAL, STATUTORY OR AT COMMON LAW, EXPRESS OR IMPLIED, INCLUDING SPECIFICALLY BUT WITHOUT LIMITATION ANY IMPLIED WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE. UNDER NO CIRCUMSTANCES SHALL P4Jl BE LIABLE FOR ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL OR INDIRECT DAMAGES INCURRED BY APT OR ANYONE CLAIMING THROUGH APT. Eorce Majeure. Any delay or failure of either party in the performance of its required obligations under the Agreement shall be excused if and to the extent caused by fire, flood, windstorm, extreme adverse weather condition, explosion, riot, war, civil unrest, sabotage, act of God, strike, court injunction or order, federal, state or local law or regulation, or order by a regulatory agency, or other similar causes, but only to the extent that such events are beyond the reasonable control of the party affected, said party uses every reasonable effort to mitigate the effect of such event, and prompt written notice of such delay or suspension is given by such affected party to the other. In such event, the time for performing shall be extended for a periad of time reasonably necessary to overcome the effect of such delay. Advertising and Publicity. Neither party shall, without the written consent of the other party, make any public announcements about or advertise the existence of or the provisions of the Agreement. Applicable Law. The rights, obligations and remedies of the parties under the Agreement shall be interpreted and enforced in accordance with and governed by the laws of the State of Washington. Notice. Any notice, demand, offer, or other written instrument required or permitted to be given by the terms of the Agreement, including these Terms, shall be in writing signed by the party giving such notice and shall be deemed given when delivered by hand or upon confirmation of electronic transmission by facsimile to: XV. XVI. XVII. A. For Pui: Pirelli Jacobson, Inc. Attention: FAX #: B. For APT: Alaska Power & Telephone Company Attention: FAX #: Headings. Paragraph headings are for the convenience of the parties only and are not to be construed as part of these Terms or of the Agreement. Severability. In the event that any portion or part of the Agreement or these Terms is deemed invalid, against public policy, void, or otherwise unenforceable by a court of law, the parties shall negotiate in good faith an equitable adjustment in the affected provision; however, the validity and enforceability of the remaining portions thereof shall otherwise be fully enforceable. Entire Agreement. The Agreement, including these Terms and all other exhibits and attachments thereto, constitutes the entire Agreement between the parties regarding the subject matter hereof, and all previous representations are hereby superseded. No modification of any of the provisions of the Agreement shall be binding unless in writing and signed by a duly authorized representative of each party hereto. EXHIBIT B PiReeeee JACOBSON, INC. 5355 - 28TH AVE. NW. + SEATTLE, WA 98107 + (206) 782-1618 October 22, 1996 Mr. Robert Grim Alaska Power & Telephone P.O. Box 222 191 Otto Street Port Townsend, WA 98368 Re: Haines - Skagway 35kV Submarine Cable Dear Robert, As a follow up to our meeting last Friday, we are pleased to summanze our offer regarding the submarine cable link between Skagway and Haines. After several discussions with our people in Italy and taking into account your budgetary constraints, we are now offering you a slightly revised design configuration of the cable including the eight fibers within the interstices of the cable. The armor will be single layer without the HDPE covering as previously offered. The outer covering will be what is considered a standard submarine cable finish, ie: galvanized armor strands covered with a synthetic polypropilene yarn. Our offer is as follows: 90,000'.35kV - 3/C 3 x 185 M.M.? Copper Conductors E.P.R. Insulated single conductors with single wire armor including eight fiber strands within the interstices : Cable $3,000,000 ° Transportation $ 600,000 ° Installation $1,550,000 $5,150,000 USD Alaska Power & Telephone Mr. Robert Grim October 22, 1996 . Page Two Price does not include: ° Marine Survey’. - ° Permits ° Terminating of cable and any civil works - Cable burial - Tidal or otherwise : Cable length above 90,000" ° Local & State Sales Tax TERMS Cable Order by January 31, 1997. Payment within 7 months of date of order. Storage at no cost up to 6 months. Installation 10% Upon Signing 30% Upon cable delivery to U.S. 60% Upon successful high pot test after laying The cable will be manufactured in Southampton, U.K. taking advantage of the vertical layup machines minimizing the number of splices. Installation will be Spring / Summer 1998. Projects of this nature usually have a one year gestation period. In order to preserve the prices previously quoted, Italy has requested a commitment of about 18 months before the installation. This commitment will allow Italy to purchase materials and schedule the manufacturing to meet your time schedule without conflicts of other projects. We thank you for the opportunity to work with Alaska Power & Telephone on this project. Should you have any questions, please feel free to call. Sincerely yours, Whee JACOBSON, INC. 5355 - 28TH AVE. NW. * SEATTLE, WA 98107 + (206) 782-1618 February 4, 1997 Mr. Howard Garner Alaska Power & Telephone P.O. Box 222 Port Townsend, WA 98368 REVISED 02-10-97 Re: Haines - Skagway 35kV Submarine Cable Dear Howard, Following our meeting on January 30, 1997, find herebelow the answers to the pending points discussed during the meeting. 1- TECHNICAL See attached technical questionnaire that responds to all of your questions. 2- COMMERCIAL 2.1- We agree to use the unit rate of $15.00 foot to adjust our ex-works price for reductions in quantity by 15,000 feet max. 2.2- Payment Terms 10% (5%at the contract signature (Feb. 1997)) (5% at completion of survey and placement of cable order.) 50% At the completion of the cable factory tests (Nov. 1997) 15% At the completion of the cable loading at the factory (June 1998) 25% At the final test on site after installation work completion (September 1998) 2.3- Cancellation Charge We propose the following cancellation charge: Cancellation after factory order: Within month 1 15% of cable price up to the end of month 2 40% of cable price up to the end of month 3 80% of cable price up to the end of month 4 95% of cable price month 5 on words 100% of cable price Alaska Power & Telephone February 4, 1997 REVISED 02-10-97 Page Two If you are in agreement with these terms, kindly sign below. Yours Faithfully, Howard Gamer Alaska Power & Telephone Pirelli Jacobson, Inc. BJ/sk cc: Mr. Bob Grimm attachments 10 PIRELLI ALASKA POWER & TELEPHONE Co. 04/02/97 HAINES-SKAGWAY CROSSING TECHNICAL QUESTIONNAIRE 1. TECHNICAL 1.1. Cable Tensile Load The maximum tensile load of 10000 kg has been calculated according with a formula developed by CIGRE Committee 21; the recommandation (still in a draft form) is relevant to high voltage cables (>60 kV) but can be extended to lower voltages, being this approach on the safety side. The formula to be used is the following: T=1.3*W*d+H where: Ww = weigth of cable in sea water (kg/m) d = maximum laying depth (m) H = bottom tension (kg), calculated as ; H= 0.2 * W*d (with a minimum of d=200 m) The extra tensile force due to the length of the catenary is taken into account by the tension on the bottom (H); in particular, if (H) is zero (no bottom tension) the catenary is the vertical line only and the relevant tension is T=W‘d. This can be easily derived from the theory of the catenaries. The factor 1.3 takes care of any additional tension caused by the laying and recovery forces and dynamic forces (i.e. ship-wave movements, etc.) during laying and recovery situations. The bottom tension (H) is intended to give a-proper safety margin to the laying angle to avoid kink formation during laying. Tension (T) is rounded upwards to the nearest 100 kg. In our case, we have: Ww = 14.5 (kg/m) d = 450 (m) H = 0.2 * W * d =1305 (kg) and, therefore, T=1.3*W*d+H = 9800 kg (declared 10000 kg) The above formula recommended by CIGRE is derived from the theory and well proven by the extensive experience of laying of submarine cables in many situations. The breaking force of the cable is higher than 50000 kg. PIRELLI ALASKA POWER & TELEPHONE Co. 04/02/97 HAINES-SKAGWAY CROSSING The single and three phase short circuit ampacity are calculated in the following hypotesis: ae - duration of s.c. = 1 sec - conductor initial temperature = 90 °C (max. operating temperature) - conductor final temperature = 250 °C - single phase current return in metallic screens and armour steel wires (bonded and earthed at both extremities). Results are the following: iIcc-3ph = 26.5 kA (1 sec) Icc-1ph = 26.5 kA (1 sec) 1.3. Technical Data Table A more detailed drawing and relevant technical data table are attached. PIRELLI ALASKA POWER & TELEPHONE Co. HAINES-SKAGWAY CROSSING 04/02/97 COMPOSITE CABLE TECHNICAL DATA TABLE SUBMARINE POWER CABLE (3 x185 mm?) Reference standard: IEC 228 and ICEA S-68-516 (where applicable) Type of cable (Pirelli's designation) | Voltage rating(U) Insulation level Conductor cross sectional area CONSTRUCTIONAL DATA CONDUCTOR Type: circular compacted strand (longitudinally sealed) Material: tinned copper wires Minimum number of wires (IEC 228, Table II, Class 2) Approximate overall diameter SEMI-CONDUCTING CONDUCTOR SHIELD Material: thermosetting extruded compound Indicative thickness INSULATION Material: EPR compound Minimum average thickness Minimum thickness at any point SEMI-CONDUCTING INSULATION SHIELD Material: thermosetting extruded compound Indicative thickness METALLIC SHIELD Material: tinned copper tapes Number of tapes Nominal thickness of each tape CABLE ASSEMBLY The three power cores as above are cabled with an optical unit, placed in one interstice and polypropylene fillers. Assembly will have R.H. lay. BEDDING Material: polypropylene yam Indicative thickness AGSH1OJFU ; kV % mm? mils/mm mils/mm mils/mm mils/mm mils/mm mils/mm mils/mm 634/- 31.5/€ 345/E 310.5 51.2/ 3.9/0. 125/3. PIRELLI ALASKA POWER & TELEPHONE Co. HAINES-SKAGWAY CROSSING 04/02/97 Material:galvanised steel wires nominal diameter of each wire Armour will have L.H. lay OVERALL SERVING Material: Polypropylene yarn Indicative thickness CABLE DIMENSIONS AND PARAMETERS (approx.): Overall diameter: weight of the cable in air: weight of the cable in water: Minimum Bending Radius (static) Minimum Bending Radius during lay Maximum tensile load (straight) Maximum tensile on MBR during lay Minimum coiling diameter CORE IDENTIFICATION Core identification will be provided by means of synthetic coloured strips (red, yellow, blue), placed under the core | metallic screens. MECHANICAL mils/mm mils/mm in/mm kg/m PIRELLI ALASKA POWER & TELEPHONE Co. 04/02/97 SOBNONAONYS °° HAINES-SKAGWAY CROSSING SUBMARINE COMPOSITE CABLE CROSS SECTIONAL AREA Not to scale Tinned Copper Conductor Semi-Conducting Conductor Shield EPR insulation Semi-Conducting Conductor Shield Metallic Shield Polypropylene Fillers Binder Tape Polypropylene Bedding Galvanised Steel Wire Armour Polypropylene Serving PIRELLI ALASKA POWER & TELEPHONE Co. 04/02/97 HAINES-SKAGWAY CROSSING CABLE TESTS General The tests hereunder specified will be carried out according to to IEC 228 and ICEA S-68-516, where applicable. Unless otherwise specified, the voltage will be applied between the conductor and the metallic screen. . The frequency of the alternating voltage used for the tests is 50 Hz. Tests on optical fibres are also mentioned. Electricat tests on manufacturing length before Jointing and armouring | Test [A.C. volta tage test for S minutes (kV) [D. C. electric resistance of conductor at 20 °C (max.) (Q/km) Capacitance (indicative value) (uF/km D.C. insulation resistance at 20 °C (min.) (MQxkm) Partial discharge test: extinction level (kV) Tests on finished cable Test D.C. voltage test for 15 minutes (k (') informative value because it is not possible to know the actual conductor temperature that can be very different along the shipping length. PIRELLI ALASKA POWER & TELEPHONE Co. HAINES-SKAGWAY CROSSING Colour Scheme (proposed) 04/02/97 red, white green, white black, white ellow, white Constructional Scheme Please refer to the attached drawing UNIT-4. Optical Fibres Characteristics GENERAL Optical fibres are in compliance with the following standards: ITU-T Rec.G652. For further details please refer to the attached Table 1. PIRELLI ALASKA POWER & TELEPHONE Co. 04/02/97 HAINES-SKAGWAY CROSSING INTERSTITIAL OPTICAL UNIT TECHNICAL DATA TABLE CABLE CHARACTERISTICS GENERAL Optical cable with slotted rod structure containing up to 20 optical fibres, fully filled optical core, welded copper sheath and extruded polyethylene sheath NUMBER OF FIBRES Cable equipped with 8 singlemode optical fibres CABLE STRUCTURE STAINLESS STEEL CENTRAL STRENGTH MEMBER Nominal diameter mm 0.95 OPTICAL STRUCTURE: Type: helicoidal slotted rod structure (S-Z) Number of slots n° 4 Nominal diameter mm 6.0 Number of fibres n° 12 GEL FILLER DESCRIPTION Siliconic filling compound (into each slot) + Hydrogen getter filling compound PROTECTIVE SYNTHETIC TAPES WATER PROTECTION BARRIER Material: longitudinally welded copper sheath Nominal thickness , mm 0.5 OUTER SHEATH Material: polyethylene sheath Nominal thickness mm 1.2 APPROXIMATE OVERALL CABLE DIMENSIONS Diameter mm 10.7 0.18 Weight in air kg/m | Luv, PIRELLI ALASKA POWER & TELEPHONE Co. HAINES-SKAGWAY CROSSING 04/02/97 INTERSTITIAL OPTICAL UNIT TECHNICAL DATA TABLE CABLE CHARACTERISTICS GENERAL NUMBER OF FIBRES Optical cable with slotted rod structure containing up to 20 optical fibres, fully filled optical core, welded copper sheath and extruded polyethylene sheath CABLE STRUCTURE STAINLESS STEEL CENTRAL STRENGTH MEMBER Nominal diameter OPTICAL STRUCTURE: Type: helicoidal slotted rod structure (S-Z) Number of slots Nominal diameter Number of fibres GEL FILLER DESCRIPTION Siliconic filling compound (into each slot) + Hydrogen getter filling compound PROTECTIVE SYNTHETIC TAPES WATER PROTECTION BARRIER Material: longitudinally welded copper sheath Nominal thickness OUTER SHEATH Material: polyethylene sheath Nominal thickness APPROXIMATE OVERALL CABLE DIMENSIONS Diameter Weight in air Cable equipped with 8 singlemode optical fibres = mm mm mm mm kg/m L Se eae 0.95 6.0 12 0.5 1.2 10.7 0.18 a PIRELLI ALASKA POWER & TELEPHONE Co. 04/02/97 HAINES-SKAGWAY CROSSING Colour Scheme (proposed) red, white green, white black, white ellow, white Constructional Scheme Please refer to the attached drawing UNIT-4. Optical Fibres Characteristics GENERAL Optical fibres are in compliance with the following standards: ITU-T Rec.G652. For further details please refer to the attached Table 1. EXHIBIT C irecu JACOBSON, INC. 5355 - 28TH AVE. NW. » SEATTLE, WA 98107 » (206) 782-1618 January 31, 1997 Mr. Robert Grimm Alaska Power & Telephone P.O. Box 222 Port Townsend, WA 98368 | Re: Wiarine Koute Survey for 35kV Submarine Cable between Skagway and Haines Dear Robert, In accordance with our discussions yesterday and with the phone call from Bob Berreth this moming, ‘we will start the survey work when weather permits. We will not start the survey work next week as planned, but will work with your people for the best weather window. As discussed, Mr. John Hoskins or myself will do the four land falls and the marine survey will start after that. We expect the marine survey to take approximately six days, weather permitting. I have enclosed the write up from our sub-contractor on the proposal and what is involved in equipment and manpower. At the conclusion of this survey, we will have a final route to each of the land falls, cable length & cable route corridor. This data will be displayed on disc as well as in report form for your permitting requirement. Should you have any questions, please contact me. ‘The total cost for the survey is $74,650.00. If this is in agreement with our understanding, kindly sign below and retum for our files. Sincerely yours, Preecou JACOBSON, INC. 5355 - 28TH AVE. NW. + SEATTLE, WA 98107 * (206) 782-1618 Alaska Power and Telephone, Inc. P.O. Box 222 Port Townsend, WA. 98368 March 17, 1997 Attn: Mr. Robert Grimm, President RE: Contract for 35 KV Submarine Cable Circuit, Haines, AK. to Skagway, AK.. Faxing our response to you on this date: Fax is as follows: 1) Our present offer includes installation of 90,000’ which is the Skagway Landing Site. In our negotiations we indicated that if you chose one of the other sites for landing, there would be no reduction in the cost of installation because there is no appreciable reduction in cost or time when reducing the cable length. The major portion of the cost with these projects are the mobilization and outfitting of the lay vessel, as well as the vessel transit cost from the factory to the project site. We have not priced a second landfall in our offer. In our meeting of January 30th, we understood that you had three (3) different cable landing sites that were being considered on the Skagway end. The determining factor as to which site would be selected was based upon the reduction in the length and reduced cost of cable for the two alternate sites. 2) The cost of freight is in excess of $ 600,000.00, as indicated in several of our previous faxes to you. This cost exceeded a breakeven for us. We offered AP&T the option of assuming this part of the project at cost back in September when the project was at $5,380,000. It became apparent in subsequent discussions that you were unable to accept any additional costs above that which had been quoted to you approximately one year earlier. Fortunately, we were able to consolidate two shipments, AP&T’s and a local project, to help defray the cost of the transportation. We are not in a position to comment on the freight costs to Skagway, since we are not aware of the details of the shipping arrangements. Please note that the cable cannot be shipped on a conventional freighter, or in containers. 3) We feel that all negotiations to date have been concluded and agreed to. The final length and subsequent cost of the cable will be determined after the marine survey has been completed and the final landing point has been determined. We have made committments to date for the marine survey, cable manufacture, and the vessel for laying and transport of the cable. We feel that it is inappropriate to reopen negotiations. Alaska Power & Telephone Page 2 In closing, I would like to address the per hour charge that is part of the contract. These charges are only to cover our costs in the event we are unable to commence the cable laying operations due to AP&T’s not having completed the necessary permitting, ROW acquistion(s), etc.. We do not anticipate this cost being charged to AP&T for any other reason. The cable technical data comments will follow under seperate cover. I will be leaving for New York on Wednesday and would appreciate your execution of the agreement prior to my departure. Sincerely, STAVE Or ALASKA 7 wren creme OFFICE OF THE GOVERNOR OFFICE OF MANAGEMENT AND BUDGET DIVISION OF GOVERNMENTAL COORDINATION s 3601 STREET, SUITE 370 oe P.O. BOX 110030 411 WEST 4THAVENUE, SUITE Dot ANCHORAGE, ALASKA 90503-5830 JUNEAU, ALASKA 99811-0030 ANCHORAGE, ALASKA 99501-2343 PH: (907) 280-7470/FAX: (907) 561-6134 PH: (907) 468-SSE2/FAX: (907) 465-3075 PH: (907) 271-4317/FAX: (907) 272-0800 September 30, 1997 Mr. Giea D. Martin Alaska Power & Telephone Company P.O. Box 222 Port Townsend, WA 98366 Dear Mr. Martin: SUBJECT: HAINES/SKAGWAY SUBMARINE CABLE STATE I.D. NO. AK 9709-1133 The Division of Governmental Coordination (DGC) received the coastal project questionnaire, applications, and supporting information you submitted for the State of Alaska's project consistency review. Included in that packet was a consistency certification submitted for our concurrence under Section 307(c3)(A) of the Federal Coastal Zone Management Act as per 15 CFR 930, Subpart D. The ACMP public notice will be made on 10/1/97. Appropriate materials have been distributed to participants in the Alaska Coastal Management Program for their review and comments. Review participants, milestones, and the associated permits are indicated on the enclosed project information sheet and distribution list. The enclosed project information sheet includes a State I.D. number; please refer to this number in any future reference to the project. Pursuant to AS 46.40.094 (d)(1), we have requested consistency review comments on the proposed project from state resource agencies, affected coastal resource districts, the public and any other interested parties. Consistency is determined by reviewing the project against standards of the ACMP and if applicable, policies of coastal district management plans. Persons with rights to file a petition seeking review by the Coastal Policy Cuuncil uf the proposed consistency determination (under AS 46.40.100 (b)(1)) must submit their comments by the appropriate deadline. The comment deadline is specified on the project information sheet. By a copy of this letter we are informing the U.S. Army Corps of Engineers and the U.S. Forest Service that the State's review has begun. Thank you for your cooperation in this review process. Sincerely, rraine Marshall Project Review Coordinator Enclosure ce: Clyde Madrey, COE, Anchorage Mark Jen, EPA, Anchorage Duane Petersen, FWS, Juneau Packet Distribution List o1-aasuy_ ‘Karen Mollander, USFS, Juneau Ranger District oe oles gon eiee ese a SYA OF ALASKA OFFICE OF THE GOVERNOR OFFICE OF MANAGEMENT AND BUDGET DIVISION OF GOVERNMENTAL COORDINATION CONTACTS DEC Dave Sturdevant ......... 465-5276 Fax: 465-5274 DFG Ben Kirkpatrick .......... 465-4288 465-4272 DNR Terry Rader ............ 465-3442 586-2954 DISTRICT: Tom Healy, Haines . . . . 766-2231 766-3179 Bob Ward ............. 983-2297 983-2151 COE Clyde Madrey........... (800) 478-2712 753-5567 PROJECT INFORMATION SHEET PROJECT TITLE: Haines/Skagway Submarine Cable STATE I.D. NUMBER: AK 9709-11JJ DGC CONTACT: Lorraine Marshall Phone: 465-8790 Fax: 465-3075 APPLICANT/PROPONENT: Alaska Power & Telephone AGENT: Glen Martin Phone: 360-385-1783 Fax: 360-385-5177 DIRECT FEDERAL ACTION: No , REVIEW TYPE: CONSISTENCY ACTIVITY TYPE: PUBLIC UTILITIES - ENERGY rROJECT LOCATION: District Plan Approved: Yes REVIEW SCHEDULE: 50 DAYS REVIEW MILESTONES: Day Ue acc sie ol ole a1 seas ele) oa ie) eee) IS eiele ciey Reviewer Request for Add’l Info on or before: ......... Comments Due To DGC on or before: .............. Proposed Consistency Determination Issued on or before: . . Final Consistency Determination Issued on or before: .... . PROJECT PREVIOUSLY REVIEWED UNDER STATE I.D. NO. AK — STATE APPROVALS (AGENCY, APPROVAL TYPE AND NUMBER): DNR_ RIGHT OF WAY PERMIT ADL FEDERAL APPROVALS (AGENCY, APPROVAL TYPE AND NUMBER): COE NATIONWIDE 12 (not subject to this review) D-970592 USFS SPECIAL USE PERMIT eral deadline 4/1/97 10/01/97 10/25/97 11/03/97 11/13/97 11/19/97 TONY KNOWLES, GOVERNOR 240 MAIN STREET, SurTE 500 P.O. Box 110030 JUNEAU, AK 99811 PACKET PUBLIC NOTICE Alaska Coastal Management Program ivisi Vv inati The following project is proposed in your area and is being reviewed for consistency with the Alaska Coastal Management Program. Your comments, particularly on the proposed project's consistency with the affected local coastal district management program, are requested. Your comments are required to preserve your rights to file a petition under Alaska Statute 46.40.100 asking the Coastal Policy Council to review the development of a proposed consistency determination. PROPOSED PROJECT & LOCATION: Installation of approximately 15 miles of submarine cable from Haines to Skagway. There will be three landfalls, one each at the ends and one at Kasidaya Creek, about 3 miles south of Skagway. APPLICANT/AGENT: Glen D. Martin, Alaska Power & Telephone Company PROJECT NUMBER: State ID # AK 9709-11JJ PROJECT NAME: Haines/Skagway Submarine Cable DEADLINE FOR WRITTEN COMMENTS: 11/3/97 FOR MORE INFORMATION OR TO SUBMIT COMMENTS CONTACT: | Division of Governmental Coordination Contact: Lorraine Marshall P.O. Box 110030 Phone: 465-8790 240 Main Street, Suite 500 Fax: 465-3075 Juneau, AK 99811-0030 Email: _ Lorraine_Marshall@gov.state.ak.us The State of Alaska, Division of Governmental Coordination, complies with Title II of the Americans with Disabilities Act of 1990. Individuals with disabilities who may need auxiliary aids, services, or special modifications to participate in this review may contact the number above. Dated at Juneau, AK on 9/30/97 Posted in Haines & Skagway on 10/1/97. fe. ALASKA POWER & TELEPHONE COMPANY P.O. BOX 222 © 191 OTTO STREET PORT TOWNSEND, WA 96368 (360) 388-1733 * (800) 962-0136 FAX (360) 385-5177 September 19, 1997 Terry Rader Land Officer Department of Natural Resources Division of Land Southeast Regional Office 400 Willoughby Ave., Suite 400 Juneau, AK. 99801-1724 Re: Haines to Skagway Submarine Cable Application for R/W/E Permit Dear Mr. Rader: Attached is an application for a R/W/E Permit for a submarine cable to interconnect the communities of Haines and Skagway through Taiya Inlet. This cable is expected to be installed in late July, 1998. However, preliminary work at the Kasidaya Creek site will need to start in April, 1998. This will involve placing protective sheathing in a trench for the cable to later be passed through. A more complete description is attached. Please note that we will require a permit by April, 1998 to excavate for the cable sheathing. The location of the Kasidaya Creek site is T28S, R59E, Section 35, W1/2, NW1/4. This is on Taiya Inlet, 3 miles south of Skagway. A complete description of the submarine cable project is attached with maps, diagrams and photographs of the cables location in relation to the projects terminuses. A bathymetric survey and a copy of the Coastal Zone Management Questionnaire are also attached. Lastly, photographs and a diagram of the vessel that will lay the cable are attached. The Army Corp of Engineers have issued a Nationwide Permit, #D-970592, for this project. We are presently also applying for a Coastal Zone Management Review and a Special-Use Permit from the U.S. Forest Service. Please contact either Bob Grimm or Glen Martin at 1-800-982-0136 if there is any additional information you require. Terry Rader, Land Officer-D? Haine .gway Submarine Cable September 19, 1997 Apyucation for DNR - R/W/E Sincerely, Ae > Prete Glen D. Martin Project Manager cc: Stan Selmer, AP&T-Skagway Enc. (as stated) STATE OF ALAS. « DEPARTMENT OF NATUF.. ...RESOURCES DIVISION OF LAND {| Northem Region [] Southcentral Region {Southeast Region ~ =. 700 Airport Way PO Box 107005 400 Willoughby, #400 Fairbanks, AK 99709 Anchorage, AK 99510-7005 Juneau, AK 99801 (907) 451-2705 (907) 762-2284 (907) 488-3400 APPLICATION FOR RIGHT-OF-WAY or EASEMENT (R/W/E) AS 38.05.850 . Non-refundable $100.00 Application Fee ADL # laska Power & Telephone Compan Applicant Name be ied By aay 222 Port Townsen 8368 Mailing Address Chty State Zip ( } (360) 385 -/733 92-oo2804ys Home Phone Work Phone SvgeeGyummieeeer Tax ID # ; Legal DescriptionLocation of = — In a = Municipality Skagway ¢ Haines ray Meridian CAM Township’ Range’ "5 *Sectiod T7858 T7048 78 Sedlon et A Rehr Township _, Range __, Section __ 1/4 __ 1/4, Section ___ 1/4 _ 1/4, eaaeh ecru shots s tea Tatal length of applied for RAW/E feet:_ 27,000 Total width of applied for RAW/E feet: _ 3 _wfes encompassed by RW/E: agproximase {43,580 square feet = 1 acre) Purpose of Right-of-Way/Easement, (e.g. Utility, Road, Bridge, Airstrip/Airport, Driveway, Trail, Drainage), and type of anticipated traffic, (e.g. plane, truck, heavy equipment): Explain Lrsta! lation of submarine cable. See attached descrjstion Maps and diagrams . Are you applying for a Public R/W/E? [ lyes fx no. Private R/W/E? [ ] yes 4 no (Annual Fee Required for private RAW) State briefly the standards and methods of construction: i.e., regulated standards, winter trail, dirt trail, gravel road, paved road, etc.; clearing by hand, clearing/construction by mechanical equipment (state type of equipment to be used, e.g. J.D. 350, 944 F.E. loader, hydro axe, D-8), or establish by use only. Thenching and back Pil in the. tidal zone. will take place. with a backhoe. itl be baraed tt te. trending the HDPE cable leeve will iL gill ed fil All material excavated .yy// be used +o hack fill. ‘ee 11 AAC 05.010 regarding tees for federal, state, and local government agencies Date Stamp: 102-112 (Rev. 2/94) ALASKA I WER & TELEPHONE CUMPANY VENDOR: 4239 ALASKA, STAT re . CHECK NO. 36322 ._ | INVOICE agme’ | INVOICE AMOUNT DISCOUNT TAKEN | NET CHECK AMOUNT 09717797 100 06 1060 96 : 100 09 Chie ov rail. 100 00 PERMIT [eneet was [rece are [wenn i ALASKA P pow tan TELEPHONE COMPANY CHECK NO. 3 6322 19,2 71259: }.. fi. (Dlaserwnsr manos PORT TOWNSEND BaANEH ( POAT TOWNSEND PAY ALASKA STATE OF | TO THE DEPT. OF NATURAL RESOURCES , ORDER OF 400. WILLOUGHBY |AVE., SUITE 49) JUNEAU, AK 9% @id1-1724 at wO3G32e" !WeeSOOOO eke 30629 2arue ALASKA POWER & TELEPHONE COMPANY P.O, BOX 222 © 191 OTTO STREET PORT TOWNSEND, WA 96368 (300) 386-1733 © (800) 982-0136 FAX (360) 386-6177 September 19, 1997 Karen R. Mollander District Ranger U.S. Forest Service Juneau Ranger District 8465 Old Dairy Road Juneau, AK. 99801 Re: Haines to Skagway Submarine Cable Application for Special-Use Permit Dear Ms. Mollander: Please consider this letter as an application for a Special-Use Permit for the installation of a cable splice vault at T28S, R59E, Section 35, W1/2, NW1/4. This is on Taiya Inlet, 3 miles south of Skagway, near Kasidaya Creek, within the Tongass National Forest. Construction of the cable splice vault would begin in April, 1998. Installation of the cable will not occur until late July, 1998. The Special-Use Permit will cover the cable splice vaults construction, and the portion of submarine cable that would be installed above the mean high- water of Taiya Inlet, approximately 50-100 feet. The splice vault will be approximately 96-inches by 50-inches and approximately 57-inches in height. A diagram of the splice vault is attached. Also attached is a diagram showing the cable HDPE sleeve through the tidal zone and the steel anchoring sleeve for above mean high tide. A complete description of the submarine cable project is attached with maps, diagrams and photographs of the cables location in relation to Kasidaya Creek. Methods of erosion and sedimentation control would depend upon the needs of the site. The area is primarily bedrock with a thin layer of topsoil. The area of excavation will be small. The cable splice vault will need a hole 4 feet deep by 8 feet in length. The cable splice vault will extend above the ground approximately 1 foot. Karen R. Mollander, USFS Submarine Cable Splice Vault September 19, 1997 Application for Special-Use Permit The Army Corp of Engineers have issued a Nationwide Permit, #D-970592, for this project. A submerged lands R/W/E permit has been applied for with the Department of Natural Resources and a Coastal Zone Management Questionnaire has been sent to the Department of Governmental Coordination for their review. Also attached are some photographs and a diagram of the ship that will lay the cable. Please contact either Bob Grimm or Glen Martin at 1-800-982-0136 if there is any additional information you require. Sincerely, MD Tot Glen D. Martin Project Manager cc: Stan Selmer, AP&T-Skagway Enc. (as stated) ALASKA POWER & TELEPHONE COMPANY P.O. BOX 222 © 191 OTTO STREET PORT TOWNSEND, WA 986368 (360) 386-1733 © (800) 982-0136 FAX (360) 386-6177 September 19, 1997 Lorraine Marshall Project Coordinator Office of the Governor Division of Governmental Coordination P.O. Box 110030 Juneau, AK. 99811-0030 Re: Haines to Skagway Submarine Cable Application for ACMP Review Dear Ms. Marshall: We are requesting that the Div. Of Governmental Coordination conduct an ACMP Review of the Haines/Skagway Submarine Cable Intertie Project. Attached is the Alaska Coastal Zone Management Questionnaire for the ACMP Review . In addition, the application for the DNR - R/W/E Permit is attached along with a complete description of the submarine cable project, maps, diagrams and photographs of the cables location in relation to the projects terminuses. This cable is expected to be installed in late July, 1998. However, preliminary work at the Kasidaya Creek site will need to start in April, 1998. This will involve placing protective sheathing in a trench for the cable to later pass through. A more complete description is attached. We are requesting from the DNR-Land Officer that they issue a permit by the April date. The Army Corp of Engineers have issued a Nationwide Permit, #D-970592, for this project and a Special-Use Permit from the U.S. Forest Service has also been applied for. Please contact either Bob Grimm or Glen Martin at 1-800-982-0136 if there is any additional information you require. Sincerely, be ryt Glen D. Martin Project Manager Lorraine Marshall, DGC Haines/Skagway Submarine Cable Project September 19, 1997 Request for an ACMP Review cc: Stan Selmer, AP&T-Skagway Enc. (as stated) Coastal Project Questionnaire and Certification Statement Please answer all questions. To avoid a delay in processing, please call the department if you answer “yes” to any of the questions related to that department. Maps and plan drawings must be included with your packet. An incomplete packet will be returned. @ APPLICANT INFORMATION 1. 1 2. Glen Mactin Project Manager Name of Applicant Contact Person P.0. ox 222 PO.Box 222 Address Address Town 368 ponsenQ 368 State” Zip Code City Zip Code Taco). 38S -/733 360-338-1733 Daytime Phone Daytime Phones 360-385 -7S3F Telecopy Number @ PROJECT INFORMATION Yes No Has this project ever been reviewed by the State of Alaska? .................04, O R Previous State I.D. Number: AK. Previous Project Name: Provide a brief description of your entire project and ALL associated facilities (access roads, caretaker facilities, waste disposal sites, etc.). Please use an extra sheet of paper if necessary. he rotect 3 ‘o yngstel, ? lat Pl, the attach roject ciptic assoc? eA Proposed starting date for project: Apeil 1998 Proposed ending date for project: August, $98 Attach a detailed description of the project and all associated facilities. Include a project timeline for completion of all major activities in the proposal, a site plan depicting all proposed actions, and any other supporting documentation that would facilitate review of the project. If yes, have you applied for or do you intend to apply for a U.S. Army Corps of Yes No Engineers (COE) permit? «0.0.1... cece ee erences - . 0 Date of submittal: _ July /5 1977 Have you applied for, or do you intend to apply for a U.S. Environmental Protection Agency National Pollution Discharge Elimination System permit? (Note: For information regarding the need for an NPDES permis, contact EPA at (907) 271-S083.) 6. cee eee eee ees 0 8 Date of submittal: Have you applied for or do you intend to apply for permits from any other federal MG OXY Draco ocean eae STao vars ev alioyer oder oy opahvaveiove oven sfenedetererocereiesainieieveTs Oo & 6 APPROVAL TYPE DaTE SUBMITTED. U.S. Focest Service Special-Use Permit September LINED. @ DEPARTMENT OF NATURAL RESOURCES (DNR) APPROVALS Note: In addition to State-owned uplands, the Sate owns almost all land below the ordinary high water line of navigable streams, rivers and lakes, and the mean high tide Ene seaward for three miles. Is the proposed project on State-owned land or will you need to cross State-owned land WOE! ROCESS eo sraig baie wr iin iw o.'5 WY lislio ro or osfanev's 5 0. siiontesleiiens 6.6. 0 sllelielerere ao s\eue 66 Is any portion of your project to be placed on State-owned land below the ordinary high water line of a stream, river, or lake, or the mean high water line of a salt- WAL OS, DOGY 2 ac wrrostort otra rior onrctse 1001-0 s oa eae ost one ow oxt- fo oto we oh op Sea ousuree nono otctlonstenen= Do you plan to construct an aquatic farm on State-owned land? .............0-0. Do you plan to dredge or otherwise excavate/remove materials on State-owned land? ... Location of dredging site if other than the project site. (describe): Township Range Section Meridian Do you plan to place fill or dredged material on State-owned land? .............. Location of fill disposal site if other than the project site. (describe): Township Range Section Meridian Source is oa: () suate Land (1) Federal Land =) Private Land © 1) Municipal Land Yes No & Oo & G QO & . & oO & oO 16, Based on your discussion with DNR, please complete the following: DNR Submerged Lands R/eVE Porm it Seotember /F, 1997 Have you paid the filing fees required for the DNR permits? ..............0000. & If you answered yes to any questions and are not applying for DNR permits, indicate reason below: Oa (DNR contact) told me on that no DNR approvals or permits were required on this project. Reason given by DNR: O b. Other:: @ DEPARTMENT OF FISH & GAME (DFG) APPROVALS i Will you be working in, or placing anything in, a stream, river or lake? (This includes work in running water or on ice, within the active flood plain, on islands, the face of Yes No the banks or the tidelands down to mean low tide.) 2.2.0... ccc cee eee eee eee eee 0 & Name of (] stream, (1 river, o¢ (1) take: Will you do any of the following? ................000005 eee eee 0 & Please indicate below: OO siBuild a dam, river training structure or Os A‘ltter or stabilize the banks? instream impoundment? Os Mine or dig in the beds or banks? O Use the water? O _soUse explosives? O Pump water out of the stream or lake? O _sBuild a bridge (including an ice bridge)? 0 Divert or alter the natural stream f=) Use the stream as a road (even when channel? frozen), or crossing the stream with Os Block or dam the stream (temporarily or tracked or wheeled vehicles, log- permanently)? dragging or excavation equipment (back- O Change the water flow or the water hoes, bulldozers, etc.)? channel? O__siInstall a culvert or other drainage O _siIntroduce silt, gravel, rock, petroleum structure? products, debris, chemicals, or other O Construct a weir? organic/inorganic waste of any type into oO Use an in-stream structure not the water? mentioned here? If yes, describe: Revised 12/92 Page 5 If your previous answer is yes, answer the following: Yes 1) 2) 3) 4) How deep is the bottom of the system to the top of the subsurface water table? How far is any part of the wastewater disposal system from the nearest surface water? Is the surrounding area inundated with water at any time of the year? .... O How big is the fill area to be used for the absorption system? (Questions 1 & 2 will be used by DEC to determine whether separation distances are being met; Questions 3 & 4 relate to the required size off the fill is wetlands are involved.) 3: Do you expect to request a mixing zone for your proposed project? (Y your wastewater O Ascharge will exceed Alaska water quality standards, you may apply for a mixing zone. [ff 30, please contact DEC to discuss information required under 18 AAC 70.032.) 4. Will the project result in either of the following: & Dredging in a wetland or other water body? B Placement of fill materials or a structure in a wetland or other waterbody? (Note: Your application for this activity to the Corps of Engineers also serves as your application to DEC.) : S; Do you plan to store or dispose of any type of solid waste at the project site? ......... 0 6. Will your project require the application of oil, pesticides, and/or any other broadcast chemicals to the surface of the land and/or the waters of the state?................ O ds 2. Will you have a facility that will generate air emissions from processing greater than five sons per hour of material? .. 2.1... eee cee eee eee 0 b. Will you have one or more units of fuel burning equipment, including flaring, with a heat inputrating of 50 million Bru per hour or more? ...........00.4. 0 ( 1) Will you have a facility containing incinerators with a total charging capacity of 1,000 pounds per hour or more? ...........02.000ee O 2) Do you incinerate sludge? .. 0.0.0... 00... ccc cece ee eee aes O d. Will you have any of the following processes: ........... 0.0000 eeeaee 0 ©) Asphalt plant ©) Petroleum refinery © Petroleum Contaminated Soils Cleanup O Coal preparation facility ©) Portland cement plant e. Will your facility use the following equipment?.................2-000. & Revised 12/92 ©) diesel internal combustion engines? (Toul capacity equal to or greater than 1,750 kilowams or total rated brake specific horsepower greater than 2350 bhp) © gas fired boilers (Total heat input rating of 100 million Bru per hour) © oil fired boilers (Total heat input rating of 65 million Bru per hour) © combustion turbines (total rated power output of 8,000 Hp) Page 7 & 2 WW & Certification Statement The information contained herein is true and complete to the best of my knowledge. I certify that the proposed activity complies with, and will be conducted in a manner consistent with, the Alaska Coastal os 77/ 7° Date Note: Federal agencies conducting an activity that will affect the coastal zone are required to submit a federal consistency determination, per 15 CFR 930, Subpart C, rather than this certification statement. This certification statement will not be complete until all required State and federal authorization requests have been submitted to the appropriate agencies. ™ = To complete your packet, please attach your State permit applications and copies of your federal permit applications to this questionnaire. INTERIM COASTAL ZONE BOUNDARIES CF ALASKA WO ON STATE An PRTATE LW MOT SO WO 4 AQOPTED LOG, COAST. PLA Devieas 19/02 Pase 9 SKAGWAY TO HAINES SUBMARINE CABLE CROSSING PROJECT LOCATION The proposed submarine cable crossing from Skagway to Haines is located in Southeast Alaska at the head of Lynn Canal, in the Taiya and Chilkoot Inlet’s, as in Figure 1. The USGS location is as follows: 728S, R59E, Sections 35, 34, 27, 23, 22, 15, 14; 7T29S, R59E, Sections 36, 25, 24; T29S, R60E, Sections 31, 30, 19, 18, 7, 6, 5; T3O0S, R59E, Sections 14, 13, 12, 11, 10, 1; T30S, R6OE, Sections 18, 7, 6. The project will cross from the Skagway City Limits into the Haines Borough. Both Skagway and Haines are terminuses of the Southeast Alaska Marine Highway System. This area is typified by rugged mountains, steep-walled valleys and glacial rivers, numerous glaciers, and ice-fields. Due to the high volume of freshwater and silt from the Taiya, Skagway, Chilkoot, Chilkat, and Katzehin Rivers and the deep, steep-sided nature of Taiya Inlet, the Inlet is not very productive.' The Taiya Inlet consists of steep sides with mountains and glaciers in excess of 6,000 feet above sea level. The maximum water depth, along Taiya Inlet, is approximately 1,470 feet and it is in this deep channel that the cable will be laid. At the Skagway end of Taiya Inlet, the cable would be laid along hard bottom and some alluvial fill. The cable will rest on bedrock at the Kasidaya Creek landing. The remainder of the cable will rest on a sediment covered seabed, until the cable reaches Haines where it will cross a gravel beach. PROJECT DESCRIPT! With the Goat Lake Hydroelectric Project (near Skagway) expected to complete its construction in November, 1997 and the community of Haines presently generating power with diesel generators, the Applicant would like to connect both communities to share the power generating capacity of the hydro project. To do this, with the least amount of environmental impact (i.e. submarine cable verses overhead transmission line) the Applicant proposes the interconnection of these two communities via a submarine cable, as in Figure 2. The submarine cable will be about 15 miles long, operated at 35 kilovolts, at 3 phase, alternating current. There will be three landfalls, one each at the ends and one at Kasidaya Creek, about 3 miles south of Skagway. "Skagway Coastal Management Program, Prepared by the City of Skagway, June 1, 1994. Page | The submarine cable would leave Skagway from the rock jetty on the south side of the Skagway River, where the ore terminal is located, as in Figures 3 & 4. The cable would begin adjacent to the ore terminal on this jetty. The cable would descend into the Taiya Inlet and proceed along a relatively smooth seabed. The cable would ascend to Kasidaya Creek on the east side of Taiya Inlet to connect with a splice-vault, as in Figures 5-8. The splice- vault is for tying into a future hydro project presently under a FERC preliminary permit No. 11588. The cable will then descend from the splice- vault back into Taiya Inlet and proceed to Haines. The slope at the Haines end of the cable will be approximately 45°. The cable will landfall along the south side of Lutak Inlet, tying into the present transmission system, as in Figures 9 & 10. The proposed submarine cable is expected to be laid July, 1998 using a single ship to lay approximately 87,000 feet of cable in one pass along Taiya Inlet. Depending upon the weather, it is expected to take acne 1 week to lay the cable. Attached is the bathymetric survey for the submarine cable. The best route is indicated along with the elevations. The submarine cable will leave Skagway from municipal/private land, cross into DNR tide lands and then into DNR submerged lands, NE %, NW %, Section 14. The cable will continue through DNR submerged lands until it ascends to Kasidaya Creek where it will cross DNR tide lands and enter in USFS managed lands (Tongass National Forest) to the cable splice-vault, W 4%, NW %, Section 35. After the cable leaves the splice-vault, it will again pass through DNR tide lands and DNR submerged lands until the cable lands at Lutak Inlet, near Haines, SE %, SW %, Section 10, mile 4.4 of the Lutak Highway. At Lutak Inlet, the cable will again cross DNR tide lands and then onto DOT right-of-way to interconnect with our present transmission system. Though this cable alignment is preliminary, the location shown in the bathymetric survey is very close. During the cable installation the latitude and longitude will be taken to provide an accurate map of the cables location. Trenching for the cable would be required at both ends (Skagway and Haines) and at the Kasidaya Creek landing, to protect the cable from anchors, fishing, and forces of nature. The cable will not cross any streams or any significant aquatic beds of harvestable foods. The cable will not pose any significant threat to the environment, will not harm aquatic life or pose a threat or hindrance to navigation within the Taiya Inlet or Chilkoot Inlet. Page 2 Attached are two Figures showing the cable landing structures and anchors for the two ends of the cable and the Kasidaya Creek landing, respectively. In addition, a detail of the cable anchor sleeve and the splice vault is included. Trenching for the cable landings will not be longer than 200 feet. The Applicant will use a small excavator and backhoe to trench for the cable. The cable will be protected in an HDPE pipe from below the minimum low tide elevation to above the mean high tide elevation. The cable will then have a steel anchor sleeve to protect the cable while crossing land above high tide to the splice vault. The steel anchor sleeve will consist of several 4 foot high by 4 foot wide by 1-inch thick steel plates attached to an 8-inch steel pipe. Trenching will take place during low tides for the area. Excavated material will be backfilled over the cable and its protective conduits. The Skagway and Haines ends of the cable will have the anchor sleeve placed at the time of the cable laying. The Kasidaya Creek anchor sleeve will be placed prior to the cable laying. Page 3 FIGURE 1: PROJECT VICINITY MAP PROJECT LOCATION . gly ye 5 STATION 2 e85¢ a8 - ges afuy Oy oe zx ES agen. xongrtet Se 2S= fgsiz Sgza~ a0 ss Brake Peas c2g22 sSzeis S232 ao-~ oo” Sueee 6° Es® , FIGURE 4 FIGURE 5 FIGURE 5: CABLE LANDING AT KASIDAYA CREEK SCALE: IN FEET MSTATION 194474: Sprayed ‘x’ on elevated rock at Y=6585458.86, X=480641.13 KASIDAYA CREEK T28S, RSOE, Sec. 35, Ww 1/2, NW 1/4 WU LULL LULU LULL UVa LULA MSTATION 19+474 TIDAL ZONE ———— ROCK 2 > 8 & “ WU LULL Muar VU VU VU WU VU VU We 0 TIDAL ZONE © Ww x a 9 LL “IGURE 7 ‘SUBMARINE camg LANDING SITE a a = ow Zc go < a $2 a wi ZS ca 33 =: a > a” IDAYA CREEK 9 = e Ss 4 a o aKa Bice? p MANS Description of surveyed point for Haines Cable Landing: 12" spike located at Y=6571283.51, X=474014.83 This fs approximately 108.3' from telephone pole #490 250 and 51.9" from an unmarked telephone pole heading toward the ferry terminal, Station 00 + 000. Located in T30S, R59E, Section 10, SE 1/4, SW 1/4. HL HN Toa I iT Te = 5 oS + S re) F ie ri 7} SEC LIONS e tad AERA AXE AYORO FRO 3 “SUBMARINE CABLE se SS 2om iw. SEATILE, WA. 00107 (208) 7U2-0000 S PROFILE VIEW Peat nie oc bes a INE CABLE ROUTE KASIDAYA CREEK SZarne wa 0107 (208) 7e2-1010 Henke, MEO |S=- [ba = Swe Lae Sense choy belles ater, AN SAH SS ies Ste RIE UBMARINE CABLE ROUT, Gm NG af Steel Rew fey Buse Cabieg 2m WO for Fiber cable, . STA 26¢011 Geticn) Skagway STA Ct0 CAPPREE) KAVES BNO CALE AlOR” ; CARE AncHeR SLEEVE | AweHon PLATES dens’. — ENO PPE BElow mw TOE EL — SBMARWE CABLE He ca IH HnT. | I Fremecrass “$ecrevALIZAS = oO- Fiberophe fadistul STA A474 Caretes) WE I é iy zove vf / i, 7) \ tock RNG ReceweR ow BVO or ¢* Cure SUBMARINE CABLE ANCHOR SLEEVE (DETAIL) a wonce: eS EAET Ti il aio wala alan aan anion len aeons | Consent ter ten retention ond ves of the cennman lo guted ie pemsed cine then Nore Fivengens, int Only on ihe nations wad (Om écouean ord af of cartentn wt be hubs be aiigl eaefimes. Wie Gememect & cul to be fugresuend in whete a tn pad fet merfactere © preeumunert bun estruns ether Wen Mesdiy Pmginsn, tne. wither the nelben penmtasion of Monde Fineryines, ro ths 1s ast aq Sample at —— AS [ides Arent ones will be usel <i. SSG QQ 0 EE E>°”"o\ NORDIC FIBERGLASS, INC. ae ae MN 56762 = 2S aw | Ayre | Tesce Phase | Taree Passe Sectionalixing Cablact | Cabiect ND-450 oF percr/ot 712 s¢:et cel atmerw SUBMARINE CABLE TRANSPORT & DEPLOYMENT VESSEL oa; t SUBMARINE CABLE TRANSPORT & DEPLOYMENT VESSEL VESSEL CHARACTERISTICS I R E ul L I * Power coble 580 mt in 490d x 20°1d x II high JACOBSON. INC * 4 point mooring system ( remotely controlled ) OFFSHORE CABLE LAYING VESSEL * On deck coble laying equipment © approx. 258mt 267 x SI x 16° 8/27/97 NUS , Ww wu ove DEPARTMENT OF THE ARMY US. ARMY ENGINEER OfSTRICT, ALASKA P.O. BOX 808 ANCHORAGE, ALASKA 99506-0698 mr AUGUST 2 5 1997 ATTENTION OF: Regulatory Branch East Section D-970592 Mr. Bob Grimm Alaska Power and Telephone Company Post Office Box 3222 Port Townsent, Washington 98368-0922 Dear Mr. Grimm: This is in response to your letter of request dated July 15, 1997, concerning your proposal to install a submarine cable along the bottom of the Taiya Inlet. The project would be located between Skagway and Haines, Alaska. A Department of the Army nationwide permit (NWP) has been issued pursuant to December 13, 1996, Federal Register, Final Notice of Issuance, Reissuance, and Modification of Nationwide Permits (61 FR 65874), which authorizes: 12. Utility Line Discharges. Discharges of dredged or fill material associated with excavation, backfill or bedding for utility lines, including outfall and intake structures, provided there is no change in preconstruction contours. A “utility line" is defined as any pipe or pipeline for the transportation of any gaseous, liquid, liquefiable, or slurry substance, for any purpose, and any cable, line, or wire for the transmission for any purpose of electrical energy, telephone and telegraph messages, and radio and television communication. The term "utility line" does not include activities which drain a water of the United States, such as drainage tile; however, it does apply to pipes conveying drainage from another area. This NWP authorizes mechanized landclearing necessary for the installation of utility lines, including overhead utility lines, provided the cleared area is kept to the minimum necessary and preconstruction contours are maintained. However, access roads, temporary or permanent, or foundations associated with overhead utility lines are not authorized by this NWP. Material resulting from trench excavation may be temporarily sidecast (up to three months) into waters of the United States, provided that the material is not placed in such a manner that it is dispersed by currents or other forces. The DE may extend the period of temporary side-casting not to exceed a total of 180 days, where appropriate. The area of waters of the United States that is disturbed must be limited to the minimum necessary to construct the utility line. In wetlands, the top 6" to 12" of the trench should generally be backfilled with topsoil from the trench. Excess material must be removed to upland areas immediately upon completion of construction. Any exposed slopes and stream banks must be stabilized immediately upon completion of the utility line. (See 33 CFR Part 322). Notification: The permittee must notify the district engineer in accordance with the “Notification” general condition, if any of the following criteria are met: a) Mechanized landclearing in a forrested wetland; b) A Section 10 permit is required for the utility line; c) The utility line in waters of the United States exceeds 500 feet; or, d) The utility line is placed within a jurisdictional area (i.e., a water of the United States), and it runs parallel toa streambed that is within that jurisdictional area. (Sections 10 and 404) We consider the notification of the district engineer for this proposal satisfied by the submission of your letter dated July 15, 1997. Please note that the Corps of Engineers has completed General Condition 13, Notification, on your behalf. The proposed work may be done under the authority of the above NWP provided it conforms to the general conditions shown on Enclosure 1 and to the regional conditions, which have been established for various NWPs in Alaska, listed below. Regional Conditions C, and G apply to NWP #12. Regional Condition C: A plan employing the techniques listed below shall be implemented to avoid or minimize disturbance to wetland vegetation and to re-establish such vegetation when disturbance cannot be avoided. Areas disturbed during project construction must be revegetated as soon as possible, preferably in the same growing season as the disturbance. Erosion .protection shall be provided and remain in place until the soil is permanently stabilized. Avoidance and minimization techniques may vary with site conditions and include, but are not limited to, the following: e Planning construction access and scheduling work to avoid or minimize damage to wetland vegetation. e Operating equipment in bog or emergent wetlands on frozen ground to minimize destruction of the natural vegetative mat. e Using crane matting or suitable geotextile material to protect vegetation from damage by heavy equipment. Revegetation techniques may vary with site conditions and include, but are not limited to the following: e Seeding, planting, replacement of reserved ground cover, and/or fertilizing of re-contoured ground to promote re-establishment of natural plant communities. Species to be used for seeding and planting should follow this order of preference: 1) species native to the site; 2) species native to the area; 3) species native to the state; and 4) non-native species. Note: non-native species should be used only when the use of native species is not available. e In peat wetlands, systematically removing the natural vegetative mat (with root masses intact) prior to construction, storing it in a manner to retain viability (usually frozen or hydrated), then replacing it after re-contouring the ground following construction, with final contours within one foot of adjacent undisturbed vegetative cover after one growing season and one freeze/thaw cycle. For minor utility projects where no imported bedding or backfill material is used (e.g., “plowed in” cables or small utility lines installed with ditch- witches), simple restoration to pre-work contours and appropriate revegetation (see above) shall suffice. Regional Condition G: For utility lines in peat soils, specific measures must be included in the project description to ensure that excavation will not disrupt the integrity of the subject wetland hydrology. Such measures might include horizontal ditch/trench blocks or vertical backfill blocks to address and minimize out migration of groundwater, either as subsurface drainage from adjacent wetlands or to prevent utility line bedding from acting as a conduit channel for groundwater. Attached with the general conditions on Enclosure 1 is a list of other required State, Federal and local authorizations the State of Alaska would like to emphasize. Please note General Condition 14 in Enclosure 1, which reads: “Every permittee who has received a nationwide permit verification from the Corps will submit a signed certification regarding the completed work and any required mitigation.” Enclosure 2 is the form you need to send us once your project is complete. This NWP verification will be valid for two years from the date of this letter, unless the NWP authorization is modified, reissued, or revoked. In an effort to determine the level of customer satisfaction with the services provided to you, the Regulatory Branch asks that you take a few moments to provide us with any constructive comments you feel are appropriate by filling out the enclosed questionnaire. Our interest is to see how we can continue to improve our service to you, our customer, and how best to achieve these improvements. Additional comments may be provided through the use of an oral exit interview, which is available to you upon request. Your efforts and interest in evaluating the regulatory program are much appreciated. Nothing in this letter shall be construed as excusing you from compliance with other Federal, State, or local statutes, ordinances, or regulations which may affect this work. Please contact Mr. Clyde Madrey at the letterhead address, at (907) 753-2712, toll-free from within Alaska at (800) 478-2712, or by FAX at (907) 753-5567, if you have additional questions. Sincerely, ot Randy Steen Unit Coordinator Enclosures Enclosure 2 iar US Army Corps of Engineers Alaska District Permit Number: D-970592 Name of Permittee: Alaska Power and Telephone Company Date of Issuance: AUGUST 2 5 997 Upon completion of the activity authorized by this permit and any mitigation required by the permit, sign this certification and return it to the following address: U.S. Army Corps of Engineers Alaska District Regulatory Branch Post Office Box 898 Anchorage, Alaska 99506-0898 Please note that your permitted activity is subject to a compliance inspection by an U.S. Army Corps of Engineers representative. If you fail to comply with this permit you are subject to permit suspension, modification, or revocation. I hereby certify that the work authorized by the above referenced permit has been completed in accordance with the terms and conditions of the said permit, and required mitigation was completed in accordance with the permit conditions. Signature of Permittee Date NS & GO-< ae CASIUAYECR J M 3 ) b . ALASHA PO! ER A Mal SR MARINE C. AT LAR , , ew) il] y) ite : TTL eee as Sine ) 1 NER 8 LEP NG Re Ae IRGC RUE PLAN & PROFILE VIEW : SECTION El Be | ERA ew ey We ia MEAS — => GOAT LAI MAS a ae a SVT rid PON CLG & PROFILE, VIEW STIONS EX AF AA ie MIA REGIONAL CONDITIONS REGIONAL CONDITION A: In fresh or marine waters, no pentachlorophenol preservatives may be used on wooden structures. In fresh waters, no creosote may be used on wooden structures. In fresh and marine waters, any preservative on wooden structures must be applied by pressure injection. This Regional Condition applies to all NWPs which may include wooden structures. REGIONAL CONDITION B:. 1) Small, seasonal docks authorized under NWP 11 shall: a) not extend more than 50 feet waterward of the ordinary high water ‘mark or mean high water mark, or exceed more than® 2s-. ppercent of the width of bas the waterbody, whichever is less; and - b) waterward of the ordinary high water mark, have a total surface area. of no greater than 400 square feet. tte The definition of a "small, séasonal dock" is superseded in the area covered by the Kenai River Comprehensive Management Plan (KRCMP), which recommends other, smaller sizes for floating docks. Numbers of docks per lineal footage of river front for properties under single ownership or common management, are also subject to specific criteria defined in the KRCMP. 2) Floating houses are specifically excluded-from this NWP. A "floating: x house” is defined as a building constructed on top of a floating platform, -:-- and includes floating camps and floating lodges. This definition does not include vessels as defined in U.S. Coast Guard regulations. This Regional Condition applies to NWP 11. REGIONAL CONDITION C: A plan employing the techniques listed below shall be implemented to avoid or minimize disturbance to wetland vegetation and to re-establish such vegetation whén disturbance cannot be avoided. Areas disturbed during project construction must be revegetated as soon as possible, preferably in the same growing season as the disturbance. Erosion protection shall be provided and remain in place until the soil is permanently Stabilized. This plan shall be submitted to the Corps for those NWPs requiring 2 PCN (i.e., - _NWPs 6, 12, 14, 19, 23, 33, and 35). Avoidance wad minimization techniques may vary with site conditions ae include, but are not limited to, the following: e Planning construction eccess and scheduling work to avoid or minimize damage to wetland vegetation. 4 2 Operating equipment in bog or emergent wetlands on frozen ground to minimize destruction of the natural vegetative mat. Os Regional Condition C (Continued): e Using crane matting or suitable geotextile material tc protect vegetation from damage by heavy equipment. Revegetation techniques may vary with site conditions ang include, but are not limited to the following: e ‘Seeding, planting, replacement of reserved ground cover, and/or “" fertilizing of re-contoured ground to promote re-estadlishment of natural plant communities. Species to be used for seeding and planting should follow this order of preference: 1) species native to the site; 2) species native to the area; 3) species native to the state; and 4) non-native species. Note: non-native species should be used only when the use of native species is not available. ¢ In peat wetlands, systematically removing the natural vegetative mat (with root masses intact) prior to construction, storing it in a manner to retain viability (usually frozen or hydrated), then replacing it... after re-contouring the ground following construction, with final contours within one foot of adjacent undisturbed vegetative cover after one growing season and one freeze/thaw cycle. For minor utility projects where no imported bedding or backfill material is used (e.g., “plowed in” cables or smali utility lines installed with ditch- witches), simple restoration to pre-work contours and appropriate revegetation (see above) shall suffice. ; This Regional Condition applies to the following NWPs: 3, 6, 12, 14, 19, 23, 33 and 35. REGIONAL CONDITION D: The following geographic areas are excluded from coverage by NWPs listed below: : 1) Areas designated as wetlands in the Anchorage Wetlands Management Plan (AWMP), 10-year revision (March 1996). 2) Areas designated as "A" or "B" wetlands in the Juneau tietlands Management Plan. . 3) Areas in the Northwest Arctic Borough designated as one of the following: Designated Important Resource Areas and Sensitive Use Areas in the district Coastal Management Program. 4) Areas near Hydaburg designated as any of the six Areas Meriting Special Attention (AMSAS) of the district Coastal Management Program. 5) . Areas within and designated -as “high value” wetlands in the Homer Wetlands Study Report: Final version (February 1989). 6) Areas under COE jurisdiction that lie within the plen csoundaries of the Kenai River Comprehensive Mahagement Plan (KRCMP). a 7) Areas under COE jurisdiction within 100 feet of the ordinary high water mark of waters specified by the Commissioner of the Alaska Department of Fish and Game in the Catalog of Waters Important for the Spawning, Rearing or Migration of Anadromous Fishes and depicted in the associated map atlases. All parts of this Regional Condition apply to NWPs 14, 18, 26, 29, and 31. Only parts 1-6 apply to NWPs 12 and 23. (Note: If ADOT/PF demonstrates, to the satisfaction of the Corps, pre-coordination with *- the agencies and affected coastal districts, then NWP 23 may be used with conditions that are incorporated in the noted plans and in-any regional general permits for the area, within: 1) “C” designated wetlands as described in the AWMP (#1 above), and 2) areas within the plan boundary of the KRCMP (#6 above).) REGIONAL CONDITION E: Project limits of authorized sites shall be clearly identified in the... field prior to clearing and construction to ensure that impacts to waters of --the U.S. are avoided beyond project footprints .(e.g., staking, flagging, silt - fencing, use of buoys, existing footprint for maintenance activities, etc.). : This Regional Condition applies to NWP’s 3, 12,.14, 15, 18, 19, 7239-265 = - 29, 33, and 36. . . REGIONAL CONDITION F: Prospective permittees must notify the District Engineer (DE) in accordancé with the “notification” requirements described in General Condition 13 for the following NWPs: : eee This Regional Condition applies to NWP’s 5, 6, 77 12, 13, 14, 17, 18, 19, 21, 23, 26, 27, 29, 31, 32, 33, 35, 36, 37, and 38. REGIONAL CONDITION G: For utility lines in peat soils, specific measures must be included in the project description to ensure that excavation will not disrupt the integrity of the subject wetland hydrology. Such measures might include horizontal ditch/trench blocks or vertical backfill blocks to address and minimize out migration of groundwater, either as subsurface drainage from adjacent wetlands or to prevent utility line bedding from acting as a conduit channel for groundwater. This Regional Condition applies to NWP 12. NATIONWIDE PERMIT GENERAL CONDITIONS The following general conditions must be followed in order for any authorization b a NWP to be valid: y 1. Navigation. No activity may cause more than a minimal adverse effect on navigation. 2. Proper maintenance. Any structure or fill authorized shall be properly maintained, including maintenance to ensure public safety. 3. Erosion and siltation controls. Appropriate erosion and siltation controls must be used and maintained in effective operating condition during construction, and al) exposed soil and other fills, as well as any work below the ordinary high water mark or high tide line, must be permanently stabilized at the earliest practicable date. 4. Aquatic life movements. No activity may substantially disrupt the movement of those species of aquatic life indigenous to the waterbody, including those species which normally migrate through the area, unless the activity’s primary purpose is to impound water. 5. Equipment. Heavy equipment working in wetlands must be placed on mane, or other measures must be taken to minimize soil disturbance. : 6. Regional and case by case conditions. The activity must comply with any regional conditions which may have been added by the Division Engineer (see 33 CFR 330.4(e)) and with any case specific conditions added by the Corps or by the state or tribe in its section 401 water quality certification. 7. Wild and Scenic Rivers. No activity may occur in a component of the National Wild and Scenic River System; or in a river officially designated by Congress as a2 "study river” for possible inclusion in the system, while the river is in an official study status; unless the appropriate Federal agency, with direct.management responsibility for such river, has determined in writing that the proposed activity will not adversely effect the Wild and Scenic River designation, or study status. Information on Wild and Scenic Rivers may be obtained from the appropriate Federal land management agency in the area (e.g., National Park Service, U.S. Forest Service, Bureau of Land Management,: U.S. Fish and Wildlife Service.) 8. Tribal rights. No activity or its operation may impair reserved tribal rights, including, but not limited to, reserved water rights and treaty fishing and huntirs rights. 9. Water quality certification. In certain states, an individual Section 401 water quality certification must be obtained or waived (see 33 CFR 330.4(c)). 10. Coastal zone management. In certain states, an individual state coastal zon=- Management consistency concurrence must be obtained or waived (see Section 330.4 (d)). : 11. Endangered Species. (2) No activity is authorized under any NWP which is likely to jeopardize the continued existence of a threatened or endangered species or 2 species proposed for such designation, as identified under the Federal Endangered Species Act, or which is likely to destroy or adversely modify the critical 7 , (b) Contents of Notification: The notification must be in writing and include the following information: (1) Name, address, and telephone number of the prospective permittee; . (2) Location of the proposed project; ~ (3)° Brief description of the proposed project; the project's = . purpose; direct and indirect adverse environmental effects the project would cause; any other NWP(s), regional general permit(s) or individual permit(s) used or intended to be used to authorize any part of the proposed project or any related activity; and (4) For NWPs 14, 18, 21, 26, 29, 34, and 38, the PCN must also - include a delineation of affected special equakte sites, including wetlands [see paragraph 13(f)); : to °(S) For NWP 21 - Surface Coal Mining Activities, the PCN must -....: include an OSM or state approved mitigation plan. (6) For NWP 29 - Single-Family Housing, -the PCN must also include: : a : (i) Any past use of this NWP by the individual permittee -- and/or the permittee’s spouse; (ii) A statement that the single-family housing activity is for a personal residence of the permittee; (iii) A description of the entire parcel, including its size, and a delineation of wetlands. For the purpose of this NWP, parcels of land measuring 0.5 acre or less will not require a formal on-site delineation. However, the applicant shall provide an indication of where the wetlands are and the amount of wetlands that exists on the property. For parcels greater than 0.5 acre in size, 2 formal wetland delineation must be prepared.in accordance with the current method required by the Corps. [See paragraph 13(f)]; (iv) A written description of all land (including, if available, legal descriptions) owned by the prospective permittee and/or the prospective permittee's spouse, within a one mile radius of the parcel, in any form of ownership (including any land owned as a partner, corporation, joint tenant, co-tenant, or as a tenant-by- the-entirety) and any land on which a purchase and sale agreement or other contract for sale or purchase has been executed; “+ (7) For NWP 31 - Maintenance of Existing Flood Control Projects, the ‘prospective permittee must either notify the District ‘Engineer with 2 PCN prior to each maintenance activity or submit a five year (or less) maintenance plan. In addition, the PCN must include éi: of the following: (i) Sufficient baseline information so es a iden approved channél depths and configurations and ex:sti facilities. Minor deviations are authorized, ae approved flood control protection or drainage is =: increased; -9- (4) For NWP 14, 21, 26 (between 1 and 3 acres cf impact), 29, 33, 37, and 38. The District Engineer will, upon receipt of a notification, provide immediately, e.g., facsimile transmission. overnight mail or other expeditious manner, a copy to the appropriate offices of the Fish and Wildlife Service, State natural resource or water quality agency, EPA, State Historic Preservation Officer (SHPO), and, if appropriate, the National Marine Fisheries Service. With the excepzion of NWP 37, these agencies will then have 5 calendar days from the date the material is transmitted, to telephone or fax the District Engineer notice that . they intend to provide substantive, site-specific coments. If so contacted by an agency, the District Engineer will wait an additional 10 calendar days (16 calendar days. for NWP 26 PCNs) before making a decision on the notification. The District Engineer will fully consider agency comments received within the specified time frane, but will provide no response to the resource agency. The District Engineer will indicate in the administrative record associated with each notification that the resource agencies’ concerns were considered. Applicants are encouraged to provide the Corps multiple copies of notifications to - . expedite agency notification. as ee (ii) Optional Agency Coordination. For NWPs 5, 7, 12, 13, 17, 18, 27, 31, and 34, where a Regional Administrator of EPA, a Regional ‘Director of USFWS, or a Regional Director of NMFS has formally requested general notification from the District Engineer for the activities covered by any of these NWPs, the Corps will provide the requesting agency with notification on the particular NWPS. However, where the agencies have a record of not generally submitting substantive comments on activities covered by any of these NWPS, the Corps district may discontinue providing notification to those regional agency offices. The District Engineer will coordinate with the resources agencies to identify which activities involving a PCN that the agencies will provide substantive comments to the Corps. The District Engineer may also request comments from the agencies on a case by case besis when the District Engineer determines that such comments would essist the Corps in reaching a decision whether effects are more than minimal either individually or cumulatively. (iii) Optional Agency Coordination, 401 Denial. for NWP 26 only, where the state has denied its 401 water quality certification for activities with less than 1 acre of wetland impact, the EPA regional administrator may request agency coordination of PCNs between 1/3 and 1 acre. The request may only include acreage I imitations within the 1/3 to 1 acre range for which the state has denied water quality certification. In cases where the EPA has requested coordination of : projects as described here, the Corps will forward the PCN to EPA only. The PCN will then be forwarded to the Fish and Wildlife Service and the National Marine Fisheries Service by EPA under agreements among those agencies. . Any agency receiving the PCN will be bound by the EPA timeframes for providing comments to the Corps. (f£) Wetlends Delineations: Wetland delineations ru accordance with the current method required by the Cerps. prepared In 25 see paragraph (b) (€) (III) for parcels less than 6.5 eécres ir. The permittee may ask the Corps to delineate the special aqu There may be some delay if the Corps.does the delineation. Furtherr 30-day period (45 days for NWP 26f will not start until the wetle been completed and submitted to the Corps, where eppropriecz:. iineation has -ll- OTHER REQUIRED STATE, FEDERAL, AND LOCAL AUTHORIZATIONS As stated at 33 CFR 330.4(a): “It is important to remember that the nationwide permits (NWPs) only authorize activities from the perspective of .-2 Corps of Engineers regulatory authorities and that other Federal, State, vse local permits, approvals, or authorizations may also be required.” Accordingly, 33 CFR 330(b)(2) specifies: “NWPs do not obviate the need to obtain other Federal, State, or local authorizations required by law.” Although any and/or all of the NWPs may require other authorizations, the State of Alaska would like to emphasize the following potential requirements: NWPs 1-23, 25-33, and 35-38: Work in a designated anadromous fish stream or other fish-bearing waters is subject to authorization fron the Alaska Department of Fish and Game. Placement of cross-channel structure, drainage structures, or diversions in streams that contain either anadromous or resident fish is subject to authorization from the Alaska Department of Fish and Game. NwP_6: Survey activities are subject to surface management regulations of the Alaska Department of Natural Resources and/or the Minerals Management Service and those mitigating measures pertaining to State and Federal oil and gas lease sales. NWPs 1, 3, 6, 7, 11-15, 18-20, 25, 30, 31, 33, 35, and 36-38: Work in legislatively-designated State refuges, sanctuaries, or critical habitat areas is subject to authorization from the Alaska Department of Fish and Game. NWP 7: The applicant must obtain a “Non-domestic Wastewater Discharge Plan Approval,” or waiver of approval, from the Alaska Department of Environmental Conservation prior to construction of a stormwéter outfall. NWP 11: A small, seasonal dock may require a fish habitat permit from the Alaska Department of Fish and Game and/or a lease agreement from the Alaska Department of Natural Resources. NWP 12: Timing, siting, road access, design, and construction methods of utility lines are subject to authorizations of Federal and State agencies with regulatory responsibility for such projects. NWPs 13, 18, and 26: Placement of fill on State-owned land is subject to authorization from the State. NWPs 3, 18, 19, 29, and 31: Many areas of the state are covered by Federal Emergency Management Agency (FEMA)-approved floodplain. regulations, local land-use plans and regulations, and other ordinances and regulations related to development. These restrictions must be adhered to in the development of a residence on a fill permitted by a NWP. All NWPs within the Kenai Peninsula Borough Coastal District: Dredging or filling within areas defined as floodplains by the Federal Em Management Agency (FEMA), and within the 50-foot setback froz. River is subject to local regulations. 7 -14- the Kenai River and tributaries within the Kenai Peninsula Borough Coastal Districts: Kenai Peninsula Borough permits/approvals, as well as a fish habitat permit from the Alaska Department of Fish and Game and a park use permit from the Department of Natural Resources, may be necessary for your activity. Please contact the Kenai River Center at 260-4882. All NWPs within the Matanuska-Susitna Coastal District: Within the 75-foot shoreline setback, all areas not occupied by allowed development must minimize disturbance of natural vegetation. STATE POLICY REGARDING EROSION AND SILTATION CONTROLS In addition to authorization requirements, activities authorized by Nationwide Permits must meet State water quality Standards. Nationwide Permit General Condition #3 provides for Erosion and Siltation Controls. In regard to these issues, the State of Alaska presents the following advisory information: NWPs 3-7, 12-23, 25-27, 29-34, and 36-38: The Alaska Water Quality Standards, 18 AAC 70, establish strict limits on the amount of sediment: and turbidity that may be introduced into fresh and marine waters, including wetlands. Because activities authorizéd by Section 404 Nationwide Permits usually involve excavation and/or placement of fill; there is considerable potential for the generation of sediment and turbidity. In concert with the requirements of Nationwide Permit General Condition 3, Erosion and Siltation Controls, the Alaska Department of Environmental Conservation policy is as follows. Silt and sediment from excavation and fill activities should not enter wetlands or waterbodies outside the project footprint. Where practicable, fill material should be free from fine material that is subject to erosion and suspension. Excavation and fill activities should be conducted to . prevent, minimize, and contain the erosion and suspension of fine material that could be carried off-site by surface runoff. If suspended material is evident outside the project footprint, appropriate control measures should be applied. These measures may include slope stabilization; filter fabric fences, straw bales, or other barriers; fiber matting; settling ponds; drainage control; trenches and water bars; waterproof covers over material piles and exposed soils; avoiding activity during heavy precipitation; revegetation; and other measures. . *15 Haines- Skagway 35kv submarine Cable Project Timeline Schedule ~ (0 | Task Name Notes | Start | Finish a 19 | a 3 oT 17 [ 24 = L7 rath ok Ls a 19 | 26 | = 1 | PROJECT TIMELINE 1i4days| 4/17/96 | 9/6/98 AO a ater ce RRNA RRR TT TR EG 2 Cable load and trans B4days| 4/17/98 | 7110/88 ARI RRL ONIN oY 3 Vessel mob,trans.Shampto | 30days| 4/17/98 S698 ESERIES 4 “| Cableload, hampton | 4days|_ s/17/98] S/21/98 a 5 Vessel transit to Panama 27 days| 21/98 amet Ene 6 Vessel transit to Seatile Zdays| 618/98) 7/10/08 i 7 Cable Installation 30days| 70s] averse 8 Vessel mob.Seattie 7days| 7Horse| 7/16/98 i . | Trans. to Skagway Sdays| 7/17/98] 7/22/98 10 Cable installation 7days| 7/23/98] cae) 4 Testing 3days| 7/30/08! © BNN8 12 [ Vesset retumn Seatte 4 Sdays| 708] eae 43 Vessel demob. Seattle t 3days 8/4/98 846/98 Figure I, rev.2 5 UPPER LYNN CANAL REGIONAL POWER SUPPLY REVIEW ALASKA POWER & TELEPHONE CO. April 1997 RW HECK Conceptual Major Milestones: 1. Construction of Goat Lake Hydropower Project (1997). 2. Interconnection of Haines and Skagway load centers (1998). 3. Development of supplemental run-of-river hydropower at Otter Creek (2002) or sooner. 4. Interconnection of Klukwan and Chilkat Valley load centers into network (2003). 5. Once interconnected load reaches 40,000 MW-HR/YR the development of additional energy storage will be needed. The Upper Chilkoot Lake hydro power site, another suitable site or pumped storage will need to be implemented by about 2028. 6. Supplement renewable energy resources with suitable run-of-river projects as needed. February 5, 1997 Mr. Robert S. Grimm Alaska Power & Telephone Co. 191 Otto Street P.O. Box 222 Port Townsend, WA 98368 Dear Bob: Subject: Upper Lynn Canal Regional Power System Planning Review Transmittal of Professional Service Agreement Please find enclosed two copies of a Professional Services Agreement (PSA) for the subject study. The PSA references my letter to you dated January 30, 1997, and incorporates our standard terms and conditions. If the PSA is acceptable please sign both copies and return one to me. The basic data you sent arrived this afternoon so we can begin reviewing it shortly. Thank you for the opportunity to assist AP&T in its planning effort. If you have any questions or need additional information, please call me at (206) 727-4418. Very truly yours, R. W. BECK, INC. L. Heberling Executive Engineer JLH:kK1 Enclosures PROFESSIONAL SERVICES AGREEMENT RWB 201R PROJECT NO. 11-00249-10101 CLIENT NO. 1580 DATE: February 5, 1997 CLIENT NAME: Alaska Power & Telephone Co. ADDRESS: 191 Otto Street; P.O. Box 222 Port Townsend, WA 98368 PROJECT: Upper Lynn Canal Regional Power System Planning Review PART | - Scope of Services R. W. Beck, Inc. (Consultant) will provide services to Alaska Power & Telephone Co. (Client) related to the analysis of power supply alternatives as outlined in Consultant’s proposal dated January 30, 1997. PART II - Schedule: Draft results of the analysis to be submitted by February 28, 1997. PART Ill - Compensation Upon submission of monthly invoices, Client shall pay Consultant an amount equal to the actual hours of services furnished multiplied by Consultant’s current hourly salary costs and a factor of 3.31. In addition, Client shall reimburse Consultant monthly at cost plus 10% for services of any subconsultant and at cost or then current rates for all expenses incurred under this Agreement. Such expenses shall include, but are not limited to, postage, fax, telephone, computer services, printing, reproduction, binding, reasonable travel and living expenses for personnel, and other direct expenses related to services furnished, all at applicable rates as of the date of invoice. On the basis of the scope of services outlined in this Agreement, the total amount to be paid by Client shall not exceed a maximum of $10,000 without prior authorization of Client. Consultant’s hourly rates allow for basic salary and employee benefits such as life, accident, disability and medical insurance, sick leave, holiday and vacation pay, social security, workers compensation, unemployment compensation and pension retirement contributions. PART IV - Commercial Terms and Conditions See attached RWB203R. PART V - Special Provisions: None. Approved for Alaska Power & Telephone Approved for R. W. Beck, Inc. By: Title? . By: . PART IV - COMMERCIAL TERMS AND CONDITIONS RWB-203R 1. Independent Contractor: In the performance of services hereunder, Consultant is an independent con- tractor and shall not be considered an employee of Client. Unless specifically identified otherwise in the Scope of Services, services performed by Consultant under this Agreement are solely for the benefit of Cilent. Nothing contained in this Agreement shall create any duties on the part of Consultant toward any person not a party to this Agreement. 2. Standard of Care: The standard of care applicable to Consultant's services will be the degree of skill and diligence normally practiced by professional engineers or consultants performing same or similar services. No other warranty or guarantee, expressed or implied, is made with respect to the services fumished under this Agreement and ail implied warranties are hereby disclaimed. 3. Scope and Schedule Changes: The proposed fees constitute Consultant's estimate of the effort and charges required to complete the Scope of Services as Consultant understands it to be defined. Services not expressly set forth in this Agreement are excluded from the scope. If any change alters the Scope of Services or affects sched- ule or Consultant’s costs hereunder, Consultant shall promptly notify Client of the situation and Consultant's schedule and compensation shall be equitably adjusted. lf Consultant is delayed in performing its services here- under by any act of war, force majeure, or other Circumstance beyond its control, the schedule of performance shail be extended for the number of days as the occurrence delays performance and compensation limits under the Agreement shall be equitably adjusted, if necessary, to compensate Consultant for any additional costs due to the delay. 4. Financing Charges for Late Payments: If Client fails to pay undisputed invoiced amounts within 30 days after delivery of invoice, additional charges shall become due and payable at a rate of 1-1/2 percent per month (or the maximum percentage allowed by law, whichever is lower) on the unpaid amounts. Any financing charges due from Client on past due invoices are outside any maximum billing amounts established for this Agreement and shall not be included in calculating the maximum. All payments shall first be credited against any accrued interest. If Client fails to pay undisputed invoiced amounts within 60 days after delivery of invoice, Consultant, at its sole discretion, may suspend work hereunder without incurring any liability or waiving any right established hereunder or by law. 5. Consultant Insurance: Consultant shall maintain workers’ compensation insurance and employer's liability, professional liability, commercial general liability (bodily injury and property damage), and comprehensive auto- mobile fiability (bodily injury and property damage) insurance, with each policy having maximum limits of not less than $1,000,000. Upon request, Consultant will provide insurance certificates to the Client. 6. Indemnification: Following operation of applicable rights of contribution, Consultant agrees to indemnify and hold harmless Client and its officers, employees, and partners from and against any and all loss, damage, claim, or liability (including without limitation, reasonable attomeys’ fees) by any third party to the extent arising out of Consultant's negligent acts, errors, or omissions, including claims made by employees of Consultant. Consultant explicitly and expressly waives any right it has to immunity under applicable industrial insurance laws with respect to any action against Client and agrees to assume liability for actions brought by its own employees against Client as provided above. Following operation of applicable rights of contribution, Client agrees to indemnify and hold harmless Consultant and its directors, officers, employees, and subcontractors from and against any and all loss, damage, claim, or liability (including, without limitation, reasonable attomey’s fees) by any third party to the extent arising out of Client's negligent acts, errors, or omissions including claims made by employees of Client. Client explicitly and expressly waives any right it has to immunity under applicable industrial insurance laws with respect to any action against Consultant and agrees to assume liability for actions brought by its own employees against Consultant as provided above. 7. Limitation of Liability: The total aggregate liability of the Consultant to the Client for any and all claims, whether caused by negligence, errors, omissions, strict liability, breach of contract or contribution, or indemnity claims based on third party claims, shall not exceed proceeds of insurance required to be maintained under this Agreement. 8. Consequential Damages: Consultant and its subcontractors shall not be liable to Client for any interest, loss of anticipated revenues, eamings, profits, increased expense of operations, loss by reason of shutdown or non-operation due to late completion or otherwise, or for any consequential damages. 9. Termination: Either party may terminate this Agree- ment at any time by giving seven (7) days’ written notice to the other party. In the event of termination, Client shall pay Consultant for all services rendered to the date of termination plus reasonable expenses for winding down the services. RWB-203R Ss ess 10. Reuse of Work Products: All documents, including nd other data prepared by Consultant under this Agreement (“Work Products") are instruments of service and are and shall remain the property of Consultant. Consuttant may, at its sole discretion, copyright any of the Work Products; provided that copyrighting will not restrict Ciient’s right to use the Work Products as provided in this Agreement. The Work Products shall not be used for Purposes other than those set forth in this Agreement without the prior written approval of Consultant. ff software is intended or expected to be developed under this Agreement, a software license agreement acceptable to Consuttant shall be executed by Client. 11._Information Provided by Others: Client shall provide to Consultant in a timely manner any information Consultant indicates is needed to perform the services hereunder. Consultant may rely on the accuracy of information provided by Client and its representatives. 12. Opinions of Cost: Consultant does not control the cost of labor, materials, equipment, or services furnished by others, nor does it control pricing factors used by others to accommodate inflation, competitive bidding, or market conditions. Consultant estimates of operation expenses and construction costs represent its best Judgment as an experienced and qualified professional engineer and are not a guarantee of cost. 13. Dispute Resolution: Any dispute or action under this Agreement valued at less than $200,000 (exclusive of interest and costs) shall be mediated by a professional mediator. If mediation does not settle the dispute, it shall be subject to arbitration under the rules goveming commercial arbitration as promulgated by the American Arbitration Association. In any action to enforce or interpret this Agreement, the prevailing party shall be entitled to recover, as part of its judgment, reasonable attorneys’ fees and associated necessary costs. 14. Miscellaneous: (a) This Agreement is binding upon and will inure to the benefit of the Client and the Consultant and their respec- tive successors and assigns. Neither party may assign its rights or obligations hereunder without the prior written consent of the other party. (b) If any provision of this Agreement is invalid or unen- forceable, the remainder of this Agreement shall continue in full force and effect and the provision declared invalid or unenforceable will continue as to other circumstances. (c) This Agreement shall be governed by, and construed in accordance with, the laws of the State of Washington. (d) This Agreement may not be amended except by written amendment signed by both parties. END PART IV 203R.D0C 2 1/896 UPPER LYNN CANAL REGIONAL POWER SUPPLY REVIEW ALASKA POWER & TELEPHONE CO. April 1997 a ae UPPER LYNN CANAL REGIONAL POWER SUPPLY REVIEW TABLE OF CONTENTS Page HINT RODUGTION ciccrcosteccccecseesessccucassecsecssesecnseesseassessessossasenasevesresearescvesscesseestcrereree 1 POWER SUPPLY REQUIREMENTS AND RESOURCEG.......cscssscsssssessescessessssssseseese 1 RESOURCE SCENARIOS AND ANALYTICAL ASSUMPTION G........cccccssesscesescsseseese 3 SUMMARY/OFIRESUETS ccccccsssecsescsseosvcccereccsocseestseosesersseceecessreacecotrcaseeseuevelasecerenere! 4 aT Copyright 1997, R. W. Beck. All rights reserved. UPPER LYNN CANAL REGIONAL POWER SUPPLY REVIEW INTRODUCTION The Alaska Power & Telephone Co. (AP&T) is presently pursuing development of the Goat Lake hydroelectric project near Skagway, Alaska, a community in which AP&T is the supplier of electric service. AP&T has recently acquired Haines Light & Power (HLP) which supplies electric service to the community of Haines, located approximately 16 miles south of Skagway on Lynn Canal. The energy generation capability of the Goat Lake project will exceed the immediate net energy needs of Skagway alone and AP&T is considering the possibility of constructing a transmission interconnection between Skagway and Haines to provide power to Haines from the Goat Lake project as well. AP&T anticipates that the Chilkat Valley and Klukwan could eventually be electrically interconnected with Haines and Skagway to form a regional power supply system. Power supply resources could then be developed in the future to serve the regional power supply system. As part of its planning process, AP&T requested that R. W. Beck, Inc. provide a limited review of the costs and benefits associated with the proposed regional power supply system. This report provides an overview of the study and summarizes the results. The analysis included both an annual power supply analysis, which evaluates capacity and energy requirements for each of the load centers, and an economic analysis, which calculates the annual comparable cost of power for the region as a whole and for Skagway and HLP individually. The results of the economic analysis are presented as the cumulative present value of annual power supply costs over both 20-year and 50-year periods. Although the cumulative present value was calculated for a 50-year period, no load growth or inflation was applied after the first 20 years. The annual comparable power cost is also provided for the power supply scenarios with and without interconnection. POWER SUPPLY REQUIREMENTS AND RESOURCES Energy requirements in Skagway are projected by AP&T to be 10,370 MWh in 1997 and are projected to increase at an average annual rate of 1.4% through 2017. Peak demand is projected to be 2,390 kW in 1997. Total installed generating capacity in Skagway includes 1,000 kW of hydroelectric capacity and 5,010 kW of diesel capacity. Average annual hydroelectric energy generation capability is 4,000 MWh although hydroelectric generation in 1996 was 2,562 MWh. Energy requirements not supplied with hydroelectric generation are supplied with diesel generation. The generating reserve requirement in Skagway is assumed to be 1,250 kW based on the capacity of the largest single diesel generating unit. UPPER LYNN CANAL REGIONAL POWER Supply REVIEW Energy requirements for HLP are projected to be 12,710 MWh in 1997 and are projected to increase at an average annual rate of 2.0% through 2017. Peak demand is projected to be 2,420 MWh in 1997. HLP’s installed generation plant includes 300 kW of hydroelectric capacity and 7,465 kW of diesel capacity. The average annual hydroelectric energy generation capability is 1,000 MWh. The generating reserve requirement for HLP is assumed to be 2,865 kW based on the capacity of the largest single generating unit. The combined power requirements for Chilkat Valley and Klukwan for 1997 are projected to be 620 kW peak demand and 2,870 MWh total energy requirement. The generating reserve for these two small load centers combined is assumed to be 400 kW. In addition to the Goat Lake hydroelectric project, HLP has investigated the possibility of developing the Upper Chilkoot hydroelectric project to serve HLP. Without regional interconnection, these two projects would provide power to Skagway and Haines independently. With regional interconnection, AP&T indicates that it would also potentially develop the Otter Creek hydroelectric project in the Skagway area. The new hydroelectric projects would be used to provide energy generation to offset diesel generation. The following table shows the generating capability and estimated capital and annual operating costs for the new hydroelectric projects as provided by AP&T. Generating Annual Energy Estimated Estimated Annual Capacity Generation Capital Cost Operating Cost (kW) (MWh) (1997 $000) (1997 $000) Goat Lake 4,000 17,000 9,500 85 Upper Chilkoot 6,200 23,000 18,900 126 Otter Creek 6,200 23,000 5,300 85 For the Interconnection scenario, AP&T has indicated that a submarine cable would be installed between Skagway and HLP. The total estimated cost of the cable including installation is $5,400,000 as provided by AP&T. An overhead transmission line would be built to interconnect HLP, Chilkat Valley and Klukwan costing an estimated $1,600,000. Annual operation and maintenance (O&M) expense for the two transmission systems is expected to be relatively moderate, $15,000 per year for the interconnection between Skagway and HLP and $10,000 per year for the line connecting HLP, Chilkat Valley and Klukwan. ALASKA POWER & TELEPHONE R. W. Beck Page 2 UPPER LYNN CANAL REGIONAL POWER SupPLy REVIEW RESOURCE SCENARIOS AND ANALYTICAL ASSUMPTIONS The analysis included two resource scenarios which were defined with the on-line years for major projects as follows: Case 1 Case 2 No Interconnection Regional Interconnection Goat Lake 1998 1998 Otter Creek = 2002 Upper Chilkoot 1998 - Skagway / HLP Cable ~ HLP / Chilkat T-Line - The “No Interconnection” scenario assumed that all of the load centers would remain independent of each other and that the Goat Lake and Upper Chilkoot projects would be constructed to serve Skagway and HLP, respectively. For Case 2, the “Interconnection” scenario, Goat Lake and Otter Creek would be constructed to serve regional power supply needs. The timing of the new resources as shown in the previous table was provided by AP&T based on estimated construction lead times and estimated power supply requirements. For the Interconnection case, the output of the Goat Lake project was allocated firstly to the needs of Skagway, secondly to HLP and lastly to Chilkat Valley/Klukwan. The primary assumptions used for the analysis are summarized as follows: = General inflation of 3% per year. m= The interest rate for capital investments is 11.2%. This is the rate used to determine the annual capital payment for the new resource additions and is reflective of AP&T’s weighted cost of capital. = The discount rate for present value calculations is 11.2% reflecting the cost of capital to AP&T. = Debt repayment period for hydroelectric and transmission projects is 30 years. = Debt repayment period for new diesel projects is 20 years. = Diesel fuel costs in 1997 are $0.87, $0.85 and $0.85 for Skagway, HLP and Chilkat Valley/Klukwan, respectively. = Diesel fuel is escalated at the general rate of inflation plus an additional 0.5% per year. This rate of increase is tied to projections developed by the State of Alaska Department of Revenue in late 1995. ALASKA POWER & TELEPHONE R. W. Beck Page 3 UppPeR LYNN CANAL REGIONAL POWER SupPLy REVIEW = Diesel generation efficiency in kWh per gallon is 14.3, 13.6 and 13.0 for Skagway, HLP and Chilkat Valley/Klukwan, respectively. m Variable O&M costs for diesel generation in cents per kWh (1997 cost levels) are 2.12, 1.18 and 2.00 for Skagway, HLP and Chilkat Valley/Klukwan, respectively. These costs are assumed to increase annually at the rate of general inflation. m The cost of new diesel generating capacity, if needed, is $450 per kW for . standby units and $550 per kW for prime units, as provided by AP&T. = With interconnections, the surplus hydro available in Skagway is transmitted to Haines and eventually to Klukwan and Chilkat Valley as needed. a With interconnections, transmission losses between Skagway and HLP are 2.5% of power transmitted. Losses between HLP and Chilkat Valley/Klukwan are 3.0%. = Medium load forecasts for each of the communities have been used to define power requirements. = No evaluation of potential seasonal variation between power requirements and hydroelectric generation has been conducted. It is assumed that the full annual average energy generation capability of the hydro projects is usable if net annual loads are large enough. m= The costs of depreciation and fixed O&M for the existing diesel generating plants in all load centers are not included because these costs would not change with the alternative interconnection scenarios. m Annual O&M and depreciation costs for the existing Dewey Lakes hydro plant in Skagway, $27,000 and $19,000, respectively, are included. Annual O&M costs are assumed to increase at the rate of general inflation whereas depreciation expenses are assumed to remain constant. SUMMARY OF RESULTS The results of the analysis are shown in the detailed tables included at the end of this report. Table 1-A shows the results for Case 1, the “No Interconnection” case, and Table 2-A shows the results for Case 2, the “Interconnection” scenario. For each of these tables there are several pages showing the Loads and Resources in each load center (Skagway, HLP and Chilkat Valley/Klukwan) and the Economic Analysis showing the computation of comparable annual power costs for the region’s power supply resources. The Loads and Resources analysis and the Economic Analysis were conducted for a 20-year period, 1997 through 2016. As can be seen in the Loads and Resources tables, no new diesel generation capacity is projected to be needed through the duration of the analysis period. Existing capacity, with the new hydroelectric resources, is sufficient to supply all power supply requirements including generating reserves. Without regional ALASKA POWER & TELEPHONE R. W. Beck Page 4 UPPER LYNN CANAL REGIONAL POWER SupPLy REVIEW interconnection, there would be a surplus of hydroelectric energy generation capability in Skagway of approximately 9,410 MWh in 1998, the first year of Goat Lake operation. There would also be a significant amount of surplus energy generation capability for HLP if the Upper Chilkoot project were constructed to serve HLP alone. With the interconnection between Skagway and HLP, the Upper Chilkoot project would not be built and energy from the Goat Lake project surplus to Skagway’s needs would be used by HLP to offset diesel generation. With the interconnection between Skagway and HLP, the annual energy genera- tion of the Goat Lake project could be fully utilized. The cumulative present value of total regional annual power costs for the 20-year period 1997 through 2016 is $30,309,000 and $22,194,000 for Case 1 and Case 2, respectively. For the 50-year period, the cumulative present value is $34,262,000 and $25,257,000 for Case 1 and Case 2, respectively. This indicates that there is significant advantage in pursuing the Interconnection scenario. In addition to the total regional power cost, the cumulative present value of power costs for Skagway and HLP were calculated. For the purpose of these independent load center power costs, it was assumed that for the Interconnection scenario, Goat Lake, Otter Creek and the new transmission lines would be devel- oped as regional resources. The costs of these regional resources would be accounted for separately by AP&T and would be recovered through the sales of power to each community. The derivation of the annual costs of power from this “regional power pool” are shown for Case 2 in Table 2-A(5). For Skagway and HLP alone, another scenario was established for comparison purposes. This third scenario, Case 3, assumed that only diesel generation from existing generating units would be used to supply the power supply requirements of Skagway and HLP net of existing hydroelectric resources. No regional interconnection was assumed for Case 3. It should be noted that the diesel case did not include costs that may be incurred in the future to replace existing diesel generators. Although existing diesel capacity is estimated to be sufficient to supply all power supply requirements over the analysis period, it may be necessary to replace some of the existing units if diesel generation is to be relied upon for base generation in the future. The following table summarizes the cumulative present value for the various scenarios included in the analysis. As can be seen, the Interconnection scenario, Case 2, provides the lowest cumulative net present value for Skagway and HLP individually. Case 2 also provides approximately the same cost of power as the diesel case for the region as a whole. The diesel case, Case 3, is provided for reference, however, and does not reflect the cost and benefits related to the Goat Lake project which is presently under construction. ALASKA POWER & TELEPHONE R. W. Beck Page 5 UPPER LYNN CANAL REGIONAL POWER SuPPLY REVIEW CUMULATIVE NET PRESENT VALUE OF COMPARABLE POWER SUPPLY COSTS FOR ALTERNATIVE POWER SUPPLY SCENARIOS 50 Years (1997-2046) ($000) Case 1 Case 2 Case 3 No Regional Diesel Interconnections Interconnections Generation $34,262 Regional Total $25,257 Skagway $11,668 $9,325 $10,065 Haines L&P $21,407 $13,538 $13,845 Figure 1 shows that on an annual basis the comparable cost of power is lower in all years for the Interconnection scenario (Case2) than for the Non- Interconnection scenario (Case 1). Although there may be adjustments to the input assumptions that would vary the results, it appears that the Interconnection scenario will provide the lowest long-term power supply for the region. Figure 1 UPPER LYNN CANAL REGIONAL POWER SUPPLY ANALYSIS Comparable Cost of Power Supply (cents per kWh) = Regional Interconnection ““™"Skagway w/Goat Lake ““®=™ Haines w/Upper Chilkoot ALASKA POWER & TELEPHONE R. W. Beck Page 6 Case Title Title Subheading Title Subheading LOAD / RESOURCE ASSUMPTIONS Skagway Load Forecast (M,L,H) Skagway Reserve Minimum (KW) Goat Lake On-Line Year Goat Lake Capacity (KW) Goat Lake Energy (MWh) Otter Creek On-Line Year Otter Creek Capacity (KW) Otter Creek Energy (MWh) HLP Load Forecast (M,L,H) HLP Reserve Minimum (KW) Upper Chilkoot On-Line Year Upper Chilkoot Capacity (KW) Upper Chilkoot Energy (MWh) Klukwan Load Forecast (M,L,H) Klukwan Reserve Minimum (KW) Chilkat Valley Load Forecast (M,L,H) Chilkat Reserve Minimum (KW) Skagway/HLP Interconnect Year Skagway/HLP Trans. Losses HLP/Klukwar/Chilkat Interconnect Year HLP/Klukwar/Chilkat Trans. Losses Maximum Annual Diesel Cap. Factor New Diesel Capacity Standby Units (KW) Prime Units (KW) Diesel Station Service Hydro Station Service R.W. Beck Case 1 (No Interconnections) Medium Load Growth Table 1-A 11.2% Cost of Capital ECONOMIC ANALYSIS ASSUMPTIONS M Inflation Rate 3.00% 1,250 Interest Rate 11.20% 1998 Discount Rate 11.20% 4,000 Fuel Cost (97$/gal) 17,000 Skagway 0.87 2050 Haines 0.85 6,200 KlukwaryChilkat 0.85 23,000 Real Fuel Escalation 0.50% M Diesel O&M (97¢/kWh) 2,865 Skagway 2.12 1998 Haines 1.18 6,200 Klukwar/Chilkat 2.00 23,000 Heat Rate (kWh/gal) M Skagway 14.3 400 Haines 13.6 M Klukwar/Chilkat 13.0 400 Disesel O&M Fixed -New - 2050 Diesel Cap. (97$/kW) 2.5% Standby Units 450 2050 Prime Units 550 3.0% Diesel Repay Years 20 Hydro/int. Repay Years 30 70.0% 1,800 1,200 3.00% 2.20% Upper Lynn Canal Regional Power Supply Review Case Assumptions FINANCIAL ANALYSIS ASSUMPTIONS Inflation Rate 3.00% Interest Rate 7.50% Discount Rate 7.50% Diesel Repay Years 20 Hydro Repay Years 30 NEW RESOURCE COSTS “Tiydro Capital Cost 978000) Goat Lake 9,500 Upper Chilkoot 18,900 Otter Creek 5,300 Hydro Annual O&M (97$000) Goat Lake 85 Upper Chilkoot 126 Otter Creek 85 Transmission Capital Cost (97$000) Skagway-Haines 5,400 Haines-Klukwan-Chilkat 1,600 Transmission Annual O&M (97$000) Skagway-Haines 15 Haines-Klukwan-Chilkat 10 3/27/97 Case 1 (No Interconnections) Medium Load Growth 11.2% Cost of Capital SKAGWAY Capacity Requirements (KW) Capacity Resources (KW) Existing Hydro Diesel New Diesel Goat Lake Otter Creek Other Additions Total Resources Reserve Capacity (KW) Reserve Requirement (KW) Capacity Surplus (Deficit) (KW) Energy Requirements (MWh) Energy Resources (MWh) Existing Hydro Diesel Goat Lake Otter Creek Other Additions Total Energy Resources Maximum Diesel Generation Surplus Hydro Available R.W. Beck Table 1-A (1) Page 1 of 2 Upper Lynn Canal Regional Power Supply Review Loads and Resources (997A 998 et 999 2 OOO M2 OO TM :2 OO 220033 InNs2004 NNN N-2 O05 I 2 OOG wi illir2 007; 2390 MMe?! 40 MME?) A902: S40 MED! SSOMMMED;6 SOM 2471 OM 2+740 Ml 257.70) 2,800) Ilill2}830 1000) )!);1,0003)})I/-15000)1)))-1 000) I)\1000 lI), O00 })II)s1,000))})!)/;1,000}))||)|;1600)))!)|/'1.000)})|||/-1,000 SHOT OHMS OF OMS, O10 MMS OF Oy MMS; O10 MMS; OL OMMES! O10) MMMSOT ONS: O1 ON O1 Oil 51010 0 0 0 0 0 0 0 0 0 0 0 (© })))||'4000)))))))4;000))))|'4;000))))))/'4/000)))))))'4;000))))))):4:000)))|)|'4,000) ||) 4;000))))||4,000))||)|4;000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0) 0 Oo 6,010 10,010 10,010 10,010 10,010 10,010 10,010 10,010 ~—-10,010 ‘10,010 10,010 356207, 572.0 NNN 72520 Nl, 420) Ii llitz 420) N72 360M MN 3OO NI Z+270 Iililiz4240 Mill 7720 Olli 791 80 1,250 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 2337.0 M3! 5 ZO MMS) 520 IMIS y47 OMS )420 MMS! 36 OMS SOO His 270M: 3)240 lll 24 O11 80 10,370 10,590 10,820 11,050 11,290 11,530 11,780 11,910 12,040 12,170 12,300 37000 |\\||/3;000) )))!/'3}000)!|/|'3/000)) \!/\/3;000))!|'3, 0001))))||3}000) |!|/!'3;000)))!!\'3;000))))||/-3}000!) ))||3;000 7,370 ) 0 0 0 0 0 0 0 0 0 © 17,000 17,000 17,000 17,000 17,000 17,000 17,000 17,000 17,000 17,000 0 0 0 0 0 0 0) 0 0 0 0 ) 0 0 0) 0 0 0} 0 0 0 oO 10,370 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 30,720 30,720 30,720 30,720 30,720 30,720 30,720 30,720 30,720 30,720 -—-30,720 ON 947 ON 9,1 BONN 8,950) 8) 7:1 OF MN!4 70) MN 8220) NN/'81090)IlI7, 960) Illl7/8 30 7/700) Case 1 (No Interconnections) Medium Load Growth 11.2% Cost of Capital SKAGWAY Capacity Requirements (KW) Capacity Resources (KW) Existing Hydro Diesel New Diesel Goat Lake Otter Creek Other Additions Total Resources Reserve Capacity (KW) Reserve Requirement (KW) Capacity Surplus (Deficit) (KW) Energy Requirements (MWh) Energy Resources (MWh) Existing Hydro Diesel Goat Lake Otter Creek Other Additions Total Energy Resources Maximum Diesel Generation Surplus Hydro Available R.W. Beck Table 1-A (1) Page 2 of 2 Upper Lynn Canal Regional Power Supply Review Loads and Resources 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2,860 2,890 2,920 2,950 2,980 3,010 3,040 3,070 3,100 3,130 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 5,010 5,010 5,010 5,010 5,010 5,010 5,010 5,010 5,010 5,010 0 0 0 0 0 0 0 0 0 0 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 0 0 0 0 0 0 oO 0 0 0 oO 0 0 0 0 0 0 0) 0 0 10,010 10,010 10,010 10,010 10,010 10,010 10,010 10,010 10,010 10,010 7,150 7,120 7,090 7,060 7,030 7,000 6,970 6,940 6,910 6,880 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 3,150 37120) 3,090 3,060 3,030 3,000 2,970 2,940 2,910 2,880 12,430 12,560 12,700 12,840 12,980 13,120 13,260 13,400 13,540 13,690 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 0 0 0 0 0 0 0 0 0 0 17,000 = 17,000 17,000 17,000 17,000 17,000 17,000 17,000 17,000 17,000 0 0 0 0 0 0 0 0 0 0 0 0) 0 0 0 0 0 0 0 0 20,000 20,000 20,000 20,000 20,000 20,000 20,000 ~—~-20,000~—-20,000 ~—-.20,000 30,720 30,720 30,720 30,720 30,720 30,720 30,720 30,720 30,720 ~—- 30,720 7,570 7,440 7,300 7,160 7,020 6,880 6,740 6,600 6,460 6,310 3/27/97 Case 1 (No Interconnections) Medium Load Growth 11.2% Cost of Capital HAINES LIGHT & POWER Capacity Requirements (KW) Capacity Resources (KW) Existing Hydro Diesel New Diesel Upper Chilkoot Other Additions Total Resources Reserve Capacity (KW) Reserve Requirement (KW) Capacity Surplus (Deficit) (KW) Energy Requirements (MWh) Energy Resources (MWh) Existing Hydro Diesel Upper Chilkoot Regional Hydro Other Additions Total Energy Resources Maximum Diesel Generation Surplus Hydro Available R.W. Beck Table 1-A (2) Page 1 of 2 Upper Lynn Canal Regional Power Supply Review Loads and Resources 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2,420 2,480 2,550 2,600 2,640 2,690 2,740 2,780 2,830 2,890 2,940 300 300 300 300 300 300 300 300 300 300 300 7,465 7,465 7,465 7,465 7,465 7,465 7,465 7,465 7,465 7,465 7,465 0 0 0 0 0 0 0 0 0 0 0 0 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 0 0 0 0 0) OUNNALO 0 0 0 0 7,765 13,965 13,965 13,965 13,965 13,965 13,965 13,965 13,965 13,965 13,965 5,345 11,485 11,415 11,365 11,325 11,275 11,225 11,185 11,135 11,075 11,025 2,865 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 2,480 5,285 5,215 5,165 5,125 5,075 5,025 4,985 4,935 4,875 4,825 12,710 13,030 13,400 13,700 13,900 14,150 14,430 14,650 14,900 15,190 15,470 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 11,710 0 0 0 0 0 0 0 0 0 0 0 23,000 23,000 23,000 23,000 23,000 23,000 += 23,000 = 23,000 =: 23,000 ~—-23,000 0 0 0 0 0. ty) 0 0 0 0 0 0 0 0 0 0) 0 0 0 0 0 0 12,710 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 45,780 45,780 45,780 45,780 45,780 45,780 45,780 45,780 45,780 45,780 45,780 0 10,970 10,600 10,300 10,100 9,850 9,570 9,350 9,100 8,810 8,530 | Case 1 (No Interconnections) Medium Load Growth 11.2% Cost of Capital HAINES LIGHT & POWER Capacity Requirements (KW) Capacity Resources (KW) Existing Hydro Diesel New Diesel Upper Chilkoot Other Additions Total Resources Reserve Capacity (KW) Reserve Requirement (KW) Capacity Surplus (Deficit) (KW) Energy Requirements (MWh) Energy Resources (MWh) Existing Hydro Diesel Upper Chilkoot Regional Hydro Other Additions Total Energy Resources Maximum Diesel Generation Surplus Hydro Available Table 1-A (2) Page 2 of 2 Upper Lynn Canal Regional Power Supply Review Loads and Resources 2008 2009-2010 2011. 2012_ 2013, ~— 201420152016 ~__—2017 2,990 3,040 3,090 3,150 3,210 3,280) 3,350» 3,420. 3,490 ~—3, 560 300 300 300 300 300 300 300 300 300 300 7,465 7,465 7,465 7,465 7,465 7,465 7,465 7,465 7,465 7,465 0 ) 0 0 0 0 0 0 0 0 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 0 0 0 0 0 0 0 0 oO oO 13,965 13,965 13,965 13,965 13,965 13,965 13,965 13,965 13,965 13,965 10,975 10,925 10,875 10,815 10,755 10,685 10,615 10,545 10,475 10,405 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 4,775 4,725 4,675 4,615 4,555. 4,485 4,415 4,345 4,275 4,205 15,720 15,990 16,270 16,570 16,900 17,250 17,630 18,020 18,420 18,830 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 0 0 0 0 0) 0 0 0 ) 0 23,000 23,000 23,000 23,000 23,000 = 23,000 23,000 23,000 23,000 ~—-23,000 0 0) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0) 0 24,000 24,000 24,000 —24,000—-24,000 24,000 24,000 24,000 24,000 24,000 45,780 45,780 45,780 45,780 45,780 45,780 45,780 45,780 45,780 45,780 8,280 8,010 7,730 7,430 7,100 6,750 6,370 5,980 5,580 5,170 3/27/97 Case 1 (No Interconnections) Medium Load Growth 11.2% Cost of Capital KLUKWAN/CHILKAT VALLEY Capacity Requirements (KW) Klukwan Chilkat Valley Total Capacity Resources (KW) Existing Hydro Diesel New Diesel Total Resources Reserve Capacity (KW) Reserve Requirement (KW) Capacity Surplus (Deficit) (KW) Energy Requirements (MWh) Klukwan Chilkat Valley Total Energy Resources (MWh) Existing Hydro Diesel Regional Hydro Other Additions Total Energy Resources Maximum Diesel Generation R.W. Beck Table 1-A (3) Page 1 of 2 Upper Lynn Canal Regional Power Supply Review Loads and Resources 19971998 1999 200020012002, 20032004 =~ 2005. 2006 ~———2007 260 260 270 270 270 270 280 280 280 290 290 360 370 380 390 400 420 430 440 450 460 480 620 630 650 660 670 690 710 720 730 750 770 0 0 0 0 0 0 0 0 0 0 0 1955 1,955 1,955 1,955 1,955 1,955 1,955. 1,955. «1,955. ‘1,955 _—*'1,955 0 0 0 0 0 0 0 oO 0 oO 0 1955 1,955 1,955 1,955 1,955 ‘1,955 —«*1,955~*+1,955.~+1,955.~-+1,955. 1,955 1,335 1,325. 1,305 1,295 1,285 1,265 1,245 1,235. 1,225. 1,205 ~—S—«1,185 800 800 800 800 800 800 800 800 800 800 800 535 525 505 495 485 465 445 435 425 405 385 980 990 1,000 1,010 1,020. 1,030 1,040 1,050 1,060 1,070 ~—«1,080 980 990 1,000 1,010 1,020 1,030 1,040 1,050 1,060 ~—-1,070~—«*1,080 1,890 __1,950__2,000__2,070__-2,130_ 2,200 2,280 2,330 2,390 2,440 ~—«2,500 2,870 2,940 3,000 3,080 3,150 3,230 «3,320 «3,380 ~~—-3,450. ~~ 3,510 3,580 0 0 0 0 0 0 0 0 0 0) 0 980 990 1,000 1,010 1,020 1,030 1,040 1,050 1,060~—-1,070_~—-1,080 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0) 0 0 oO 0 0 980 990 1,000 1,010 1,020 1,030—«*1,040 ‘1,050 1,060 1,070 1,080 11,990 11,990 11,990 11,990 11,990 11,990 11,990 11,990 11,990 11,990 11,990 3/27/97 Case 1 (No Interconnections) Medium Load Growth 11.2% Cost of Capital KLUKWAN/CHILKAT VALLEY Capacity Requirements (KW) Klukwan Chilkat Valley Total Capacity Resources (KW) Existing Hydro Diesel New Diesel Total Resources Reserve Capacity (KW) Reserve Requirement (KW) Capacity Surplus (Deficit) (KW) Energy Requirements (MWh) Klukwan Chilkat Valley Total Energy Resources (MWh) Existing Hydro Diesel Regional Hydro Other Additions Total Energy Resources Maximum Diesel Generation R.W. Beck 2008 290 490 780 0 7,955) 0 1,955 VAT7S 800 375 1,090 1,090 2,560 3,650 0 1,090 0 0 7,090 11,990 2009 290 500 790 0 1,955 i} 17955 1,165 800 365 1,100 1,100 2,630 3,730 0 1,100 0 0 1,100 11,990 2010 300 510 810 0 1,955 0 7,955 1,145 800 345 1,110 1,110 2,690 3,800 0 1,110 0 0 1,110 11,990 2011 300 530 830 0 1,955 0 1,955 1,125 800 325 1,120 1,120 2,760 3,880 0 1,120 0 0 1,120 11,990 Table 1-A (3) Upper Lynn Canal Regional Power Supply Review Loads and Resources 2012 300 540 840 0 1,955 0 1,955 1,115 800 315 1,130 1,130 2,840 3,970 0 1,130 0 0 1,130 11,990 2013 310 550 860 0 1,955 0 1,955 1,095 800 295 1,150 1,150 2,910 4,060 0 1,150 0 0 1,150 11,990 2014 310 570 880 0 1,955 0 1,955 1,075 800 275 1,160 1,160 2,990 4,150 0 1,160 0 0 1,160 11,990 2015 310 590 900 0 1,955 0 1,955 1,055 800 255 1,170 1,170 3,070 4,240 0 1,170 0 0 1,170 11,990 2016 310 610 920 0 1,955 ) 7955 1,035 800 235 1,180 1,180 3,150 4,330 0 1,180 0 } 1,180 11,990 Page 2 of 2 2017 310 630 940 0 1,955 0 1,955 1,015 800 215 1,190 1,190 3,230 4,420 0 1,190 0 0 1,190 11,990 3/27/97 Case 1 (No Interconnections) Medium Load Growth 11.2% Cost of Capital Inflation Factor Fuel Escalation Fuel Cost - Skagway ($/gallon) Fuel Cost - Haines ($/gallon) Fuel Cost - Klukwan ($/gallon) Diesel Costs Fuel Variable O&M Fixed O&M (New Units) Capital Cost (New Units) Total Diesel Costs Existing System Hydro O&M Existing System Hydro Depr. New Hydro Costs O&M Capital Costs Total New Hydro Costs Transmission Line Costs O&M Purchased Power Capital Recovery Total T-Line Costs Total Regional Power Cost Regional Energy Reqs. (MWh) Regional Cost of Power (¢/kWh) R.W. Beck 1997 1.000 1,000 0.870 0.850 0.850 $ 1,282 323 0 0 $ 1,605 $ 27 19 0 0 0 ooo $ 0 $ 1,651 25,950 6.4 1998 1.030 1.035 0.901 0.880 0.880 $ 69 21 oO 0 $ 90 $ 28 19 $ 217 3,418 Regional Economic Analysis 1999 1.061. 1.072 0.932 0.911 0.911 $ 72 $ 22 0 0 $ 94 $ $ 29 $ 19 $ 224 $ 3,418 2000 1.093 1.109 0.965 0.943 0.943 75 23 0 0 98 30 19 231 3,418 Table 1-A (4) Upper Lynn Canal Regional Power Supply Review ($000) 2001 1.126 1.148 0.999 0.976 0.976 $ 79 24 0 0 $ 103 $ 30 io $ 237 3,418 $ 0 $ 0 $ Oo $ 0 0 0 0 0 0 i} 0 0 $ 0 $ 0 $ 0 $ 0 $ 3,772 $ 3,784 $ 3,796 $ 3,807 26,560 27,220 27,830 28,340 14.2 13.9 13.6 13.4 Cumulative Net Present Value to Jan. 1997 20 Years (1997 through 2016) 30 Years (2017 - 2046) with no additional growth Total Cumulative Net Present Value 2002 ° T159 1.189 1.034 1.010 1.010 $ 82 25 0 0 $ 107 $ aT 19 $ 245 3,418 2003 1.194 1.230 1.070 1.046 1.046 $ 86 26 0 0 $ 112 $ 32 19) $ 252 3,418 2004 1.230 1.274 1.108 1.083 1.083 $ 90 27 0 0 $ 117 $ 33 19 $ 260 3,418 2005 1.267 1.318 1.147 021 1.121 $ 94 28 0 0 $ 122 $ 34 19 $ 267 3,418 Page 1 of 2 2006 2007 1.305 1.344 1.365 1.413 1.187 1.229 1.160 1.201 1.160 1.201 $ 98 $ 103 29 30 0 0 0 0 $ 127 $ 133 $ 35 $ 36 19 19 $ 275 $ 284 3,418 3,418 $ 3,635 $ 3,642 $ 3,649 $ 3,655 $ 3,663 $ 3,670 $ 3,678 $ 3,685 $ 3,693 $ 3,702 $ 0 $ 0 $ 0 $ Oo $ 0 $ 0 0 0 0 0 oO 0 0 0 0 0 0 oO $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 3,820 $ 3,833 $ 3,847 $ 3,860 $ 3,874 $ 3,890 28,910 29,530 29,940 30,390 30,870 31,350 13.2 13.0 12.8 12.7 12.6 12.4 $30,309 33953 $34,262 3/27/97 Case 1 (No Interconnections) Medium Load Growth 11.2% Cost of Capital Inflation Factor Fuel Escalation Fuel Cost - Skagway ($/gallon) Fuel Cost - Haines ($/gallon) Fuel Cost - Klukwan ($/gallon) Diesel Costs Fuel Variable O&M Fixed O&M (New Units) Capital Cost (New Units) Total Diesel Costs Existing System Hydro O&M Existing System Hydro Depr. New Hydro Costs O&M Capital Costs Total New Hydro Costs Transmission Line Costs O&M Purchased Power Capital Recovery Total T-Line Costs Total Regional Power Cost Regional Energy Reqs. (MWh) Regional Cost of Power (¢/kWh) R.W. Beck Table 1-A (4) Page 2 of 2 Upper Lynn Canal Regional Power Supply Review Economic Analysis ($000) 2008 2009-2010 _—s2011 2012, 2013, 201420152016 ~——2017 1.384 «1.426 1.469, 1.513, 1,558 = 1.605. 1.653 1.702, 1.754 1.806 1.462 1.514 1.567 1.622, 1.679 1.738 =—-1.799 1,862 -1.928 1.996 1.272 1.317, 1,363, 1.411 1.461 1.512, 1.565 1.620. 1.677. ‘1.736 1.2430 1.287 1.332, 1.379 1.427, 1.477, 1.529 1.583 (1.639 :1.696 1.243, 1.287, 1.332, 1.379 1.427, 1.477, 1.529 -'1.583-1.639——‘1.696 $ 107 $ 112 $ 117 $ 122 $ 128 $ 135 $ 141 $ 147 $ 153 $ 160 31 32 34 35 36 38 39 41 43 44 ) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0 oO. $ 138 $ 144 $ 151 $ 157 $ 164 $ 173 $ 180 $ 188 $ 196 $ 204 $ 37 $ 38 $ 40 $ 41 $ 42°$ 43 $ 45 $ 46 $ 47 $ 49 19 19 19 19 19 19 19 19 19 19 $ 292 $ 301 $ 310 $ 319 $ 329 $ 339 $ 349 $ 359 $ 370 $ 381 3,418 3,418 3,418 3,418 3,418 3,418 3,418 3,418 3,418 3,418 ooo $ 0 ooo $ 0 coc $ 0 ooo $ 0 ooo $ 0 $ 0 $ 0 $ 3,904 $ 3,920 $ 3,938 $ 3,954 $ 3,972 $ 3,992 $ 4,011 31,800 12.3 32,280 12.1 32,770 12.0 33,290 11.9 33,850 11.7 34,430 11.6 35,040 11.4 $ 0 $ a a a ae rer lee $ 3,710 $ 3,719 $ 3,728 $ 3,737 $ 3,747 $ 3,757 $ 3,767 $ 3,777 $ 3,788 $ 3,799 ojooo $ 4,030 $ 4,050 $ 4,071 35,660 ES, 36,290 11.2 36,940 11.0 3/27/97 Case 1 (No Interconnections) Table 1-A (4S) Page 1 of 2 Medium Load Growth Upper Lynn Canal Regional Power Supply Review 11.2% Cost of Capital Skagway Economic Analysis ($000) 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Inflation Factor 1.000 1.030 1.061 1.093 1.126 1.159 1.194 1.230 1.267 1.305 1.344 Fuel Escalation 1.000 1.035 1.072 1.109 1.148 1.189 1.230 1.274 1.318 1.365 1.413 Fuel Cost - Skagway ($/gallon) 0.870 0.901 0.932 0.965 0.999 1.034 1.070 1.108 1.147 12187. 1.229 Fuel Cost - Haines ($/gallon) 0.850 0.880 0.911 0.943 0.976 1.010 1.046 1.083 1.121 1.160 1.201 Fuel Cost - Klukwan ($/gallon) 0.850 0.880 0.911 0.943 0.976 1.010 1.046 1.083 1.121 1.160 1.201 Diesel Costs Fuel $ 462 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ oO Variable O&M 161 0 0 0 0 0 0 0 0 0 0 Fixed O&M (New Units) 0 0 0 0 0 0 0 0 0 0 0 Capital Cost (New Units) 0 0 0 0 0 0 0 0 0 0 0 Total Diesel Costs $ 623 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Existing System Hydro O&M $ 27 $ 28 $ 29 $ 30 $ 30 $ 31 $ 32 $ 33 $ 34 $ 35 $ 36 Existing System Hydro Depr. 19 19 19 19 19 19 19 19 19 19 19 New Hydro Costs O&M $ 0 $ 88 $ 90 $ 93 $ 96 $ 99 $ 101 $ 105 $ 108 $ 111 $ 114 Capital Costs 0 1,143 1,143 1,143 1,143 1,143 1,143 1,143 1,143 1,143 1,143 Total New Hydro Costs $ O $ 1,231 $ 1,233 $ 1,236 $ 1,239 $ 1,242 $ 1,244 $ 1,248 $ 1,251 $ 1,254 $ 1,257 Transmission Line Costs O&M $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ Oo $ 0 Purchased Power 0 0 0 0 0 0 0 0 0 0 0 Capital Recovery 0 0 0 0 0 0 0 0 0 0 0 Total T-Line Costs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Total Skagway Power Cost $ 669 $ 1,278 $ 1,281 $ 1,285 $ 1,288 $ 1,292 $ 1,295 $ 1,300 $ 1,304 $ 1,308 $ 1,312 Skagway Energy Reqs. (MWh) 10,370 10,590 10,820 11,050 11,290 11,530 11,780 11,910 12,040 12,170 12,300 Skagway Cost of Power (¢/kWh) 6.5 12.1 11.8 11.6 11.4 11.2 11.0 10.9 10.8 10.7 10.7 Diesel Cost of Generation (¢/kWh) 8.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Cumulative Net Present Value to Jan. 1997 20 Years (1997 through 2016) $10,343 30 Years (2017 - 2046) with no additional growth 1,325 Total Cumulative Net Present Value $11,668 R.W. Beck 3/28/97 Case 1 (No Interconnections) Table 1-A (4S) Page 2 of 2 Medium Load Growth Upper Lynn Canal Regional Power Supply Review 11.2% Cost of Capital Skagway Economic Analysis ($000) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Inflation Factor 1,384 1.426 1.469 1.513 1.558 1.605 1.653 1.702 1.754 1.806 Fuel Escalation 1.462 1.514 1.567 1.622 1.679 1.738 1.799 1.862 1.928 1.996 Fuel Cost - Skagway ($/gallon) 1.272) 1.317 1.363 1.411 1.461 1.512 1.565 1.620 1.677 1.736 Fuel Cost - Haines ($/gallon) 1.243 1.287 1.332 1.379 1.427 1.477 1.529 1.583 1.639 1.696 Fuel Cost - Klukwan ($/gallon) 1.243 1.287 1.332 1.379 1.427 1.477 1,529 1.583 1.639 1.696 Diesel Costs Fuel $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ oO Variable O&M 0 0 0 0 0 0 0 0 0 0 Fixed O&M (New Units) 0 0 0 0 oO Oo 0 0 0 oO Capital Cost (New Units) ) 0 0 0 0 0 0 0 ) 0 Total Diesel Costs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ o$ 0 Existing System Hydro O&M $ 37 $ 38 $ 40 $ 41 $ 42 $ 43 $ 45 $ 46 $ 47 $ 49 Existing System Hydro Depr. 19 19 19 19 19 19 19 19 19 19 New Hydro Costs O&M $ 118 $ 121 $ 125 $ 129 $ 132 $ 136 $ 140 $ 145 $ 149 $ 154 Capital Costs 1,143 1,143 1,143 1,143 1,143 1,143 1,143 1,143 1,143 1,143 Total New Hydro Costs $ 1,261 $ 1,264 $ 1,268 $ 1,272 $ 1,275 $ 1,279 $ 1,283 $ 1,288 $ 1,292 $ 1,297 Transmission Line Costs O&M $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Purchased Power 0 0 0 0 0 0 0 0 0 0 Capital Recovery 0 0 0 0 0 0 0 0 0 0 Total T-Line Costs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ Oo $ 0 Total Skagway Power Cost $ 1,317 $ 1,321 $ 1,327 $ 1,332 $ 1,336 $ 1,341 $ 1,347 $ 1,353 $ 1,358 $ 1,365 Skagway Energy Reqs. (MWh) 12,430 12,560 12,700 12,840 12,980 13,120 13,260 13,400 13,540 13,690 Skagway Cost of Power (¢/kWh) 10.6 10.5 10.4 10.4 10.3 10.2 10.2 10.1 10.0 10.0 Diesel Cost of Generation (¢/kWh) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 R.W. Beck 3/28/97 Case 1 (No Interconn ns) Medium Load Growth 11.2% Cost of Capital Inflation Factor Fuel Escalation Fuel Cost - Skagway ($/gallon) Fuel Cost - Haines ($/gallon) Fuel Cost - Klukwan ($/gallon) Diesel Costs Fuel Variable O&M Fixed O&M (New Units) Capital Cost (New Units) Total Diesel Costs New Hydro Costs O&M Capital Costs Total New Hydro Costs Transmission Line Costs O&M Purchased Power Capital Recovery Total T-Line Costs Total Haines Power Cost Haines Energy Reqs. (MWh) Haines Cost of Power (¢/kWh) R.W. Beck Table 1-A (4H) Page 1 of 2 Upper Lynn Canal Regional Power Supply Review Haines Economic Analysis ($000) 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 1.000 1.030 1.061 1.093 1.126 1.159 1.194 1.230 1.267 1.305 1.344 1.000 1.035 1.072 1.109 1.148 1.189 1.230 1.274 1.318 1.365 1.413 0.870 0.901 0.932 0.965 0.999 1.034 1.070 1.108 1.147 1.187 1.229 0.850 0.880 0.911 0.943 0.976 1.010 1.046 1.083 aet2n 1.160 1.201 0.850 0.880 0.911 0.943 0.976 1.010 1.046 1.083 1129 1.160 1.201 $ 754 $ Oo $ oO $ Oo $ 0 $ Oo $ Oo $ Oo $ Oo $ oO $ 0 142 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 896 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 130 $ 134 $ 138 $ 142 $ 146 $ 150 $ 155 $ 160 $ 164 $ 169 0 2,274 2,274 2,274 2,274 2,274 2,274 2,274 2,274 2,274 2,274 $ O $ 2,404 $ 2,408 $ 2,412 $ 2,416 $ 2,420 $ 2,424 $ 2,429 $ 2,434 $ 2,438 $ 2,443 $ 0 $ 0 $ 0 $ 0 $ 0 $ O $ 0 $ 0 $ 0 $ 0 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 } 0 0 0 0 0 0 0 0 $ 0 $ 0 $ 0 $ oO $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 896 $ 2,404 $ 2,408 $ 2,412 $ 2,416 $ 2,420 $ 2,424 $ 2,429 $ 2,434 $ 2,438 $ 2,443 12,710 13,030 13,400 13,700 13,900 14,150 14,430 14,650 14,900 15,190 15,470 7.0 18.4 18.0 17.6 17.4 Wal 16.8 16.6 16.3 16.1 15.8 Cumulative Net Present Value to Jan. 1997 20 Years (1997 through 2016) $18,977 30 Years (2017 - 2046) with no additional growth 2,430 Total Cumulative Net Present Value $21,407 Case 1 (No Interconnections) Medium Load Growth 11.2% Cost of Capital Inflation Factor Fuel Escalation Fuel Cost - Skagway ($/gallon) Fuel Cost - Haines ($/gallon) Fuel Cost - Klukwan ($/gallon) Diesel Costs Fuel Variable O&M Fixed O&M (New Units) Capital Cost (New Units) Total Diesel Costs New Hydro Costs O&M Capital Costs Total New Hydro Costs Transmission Line Costs O&M Purchased Power Capital Recovery Total T-Line Costs Total Haines Power Cost Haines Energy Reqs. (MWh) Haines Cost of Power (¢/kWh) R.W. Beck 2008 1.384 1.462 1.272 1.243 1.243 ojoooo $ 174 2,274 Table 1-A (4H) Upper Lynn Canal Regional Power Supply Review 2009 1.426 1.514 1.317 1,287 1.287 cjoooo $ 180 $ 2,274 2010 1.469 1.567 1.363 1.332 1.332 ojoooo 185 2,274 Haines Economic Analysis ($000) 2011 2012 2013 1.513. 1.558 1.605 1.622 1.679 1.738 1.411 1.461 1.512 1-379 1.427 1.477 1-379 1.427 1.477 $ 0 $ 0 $ 0 0 0 0 0 0 0 0 0 0 $ 0 $ 0 $ 0 $ 191 $ 196 $ 202 2,274 2,274 2,274 ea Page 2 of 2 2014 2015 2016 2017 1.653 1.702 1.754 1.806 15799 1.862 1.928 1.996 1.565 1.620 1.677 1.736 16529) 1.583 1.639 1.696 1.529 1.583 1.639 1.696 $ 0 $ oO $ Oo $ 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 0 $ 0 $ 0 $ 0 $ 208 $ 215 $ 221 $ 228 2,274 2,274 2,274 2,274 $ 2,448 $ 2,454 $ 2,459 $ 2,465 $ 2,470 $ 2,476 $ 2,482 $ 2,489 $ 2,495 $ 2,502 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 2,448 $ 2,454 $ 2,459 $ 2,465 $ 2,470 $ 2,476 $ 2,482 $ 2,489 $ 2,495 $ 2,502 15,720 15,990 16,270 16,570 16,900 17,250 17,630 18,020 18,420 18,830 15.6 15.3 153 14.9 14.6 14.4 14.1 13.8 13.5 13.3 3/28/97 Case Title Title Subheading Title Subheading LOAD / RESOURCE ASSUMPTIONS Skagway Load Forecast (M,L,H) Skagway Reserve Minimum (KW) Goat Lake On-Line Year Goat Lake Capacity (KW) Goat Lake Energy (MWh) Otter Creek On-Line Year Otter Creek Capacity (KW) Otter Creek Energy (MWh) HLP Load Forecast (M,L,H) HLP Reserve Minimum (KW) Upper Chilkoot On-Line Year Upper Chilkoot Capacity (KW) Upper Chilkoot Energy (MWh) Klukwan Load Forecast (M,L,H) Klukwan Reserve Minimum (KW) Chilkat Valley Load Forecast (M,L,H) Chilkat Reserve Minimum (KW) Skagway/HLP Interconnect Year Skagway/HLP Trans. Losses HLP/KlukwaryChilkat Interconnect Year HLP/Klukwar/Chilkat Trans, Losses Maximum Annual Diesel Cap. Factor New Diesel Capacity Standby Units (KW) Prime Units (KW) Diesel Station Service Hydro Statlon Service R.W. Beck Case 2 (With Interconnections) Medium Load Growth Table 2-A 11.2% Cost of Capital ECONOMIC ANALYSIS ASSUMPTIONS M Inflation Rate 3.00% 1,250 Interest Rate 11.20% 1998 Discount Rate 11.20% 4,000 Fuel Cost (97$/gal) 17,000 Skagway 0.87 2002 Haines 0.85 6,200 Klukwan/Chilkat 0.85 23,000 Real Fuel Escalation 0.50% M Diesel O&M (97¢/kWh) 2,865 Skagway 2.12 2050 Haines 1.18 6,200 Klukwar/Chilkat 2.00 23,000 Heat Rate (kWhygal) M Skagway 14.3 400 Haines 13.6 M Klukwan/Chilkat 13.0 400 Disesel O&M Fixed -New 1998 Diesel Cap. (97$/kW) 2.5% Standby Units 450 2003 Prime Units 550 3.0% Diesel Repay Years 20 Hydro/Iint. Repay Years 30 70.0% 1,800 1,200 3.00% 2.20% Upper Lynn Canal Regional Power Supply Review Case Assumptions FINANCIAL ANALYSIS ASSUMPTIONS Inflation Rate 3.00% Interest Rate 7.50% Discount Rate 7.50% Diesel Repay Years 20 Hydro Repay Years 30 NEW RESOURCE COSTS “Tiydro Capital Cost (978000) Goat Lake 9,500 Upper Chilkoot 18,900 Otter Creek 5,300 Hydro Annual O&M (97$000) Goat Lake 85 Upper Chilkoot 126 Otter Creek 85 Transmission Capital Cost (97$000) Skagway-Haines 5,400 Haines-Klukwan-Chilkat 1,600 Transmission Annual O&M (97$000) Skagway-Haines 15 Haines-Klukwan-Chilkat 10 3/27/97 Page 1 of 2 Case 2 (With Interconnections) Table 2-A (1) Medium Load Growth Upper Lynn Canal Regional Power Supply Review 11.2% Cost of Capital Loads and Resources 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 SKAGWAY Capacity Requirements (KW) 2,390 2,440 2,490 2,540 : 2,590 2,650 2,710 2,740 2,770 2,800 2,830 Capacity Resources (KW) Existing Hydro 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Diesel 5,010 5,010 5,010 5,010 5,010 5,010 5,010 5,010 5,010 5,010 5,010 New Diesel 0 0 0 0 0 0 0 0 0 0 0 Goat Lake 0 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 Otter Creek 0 0 10) 0 0 6,200 6,200 6,200 6,200 6,200 6,200 Other Additions 0 0 0 0 ) 0 Oo 0 ) oO Oo Total Resources 6,010 10,010 10,010 =10,010 10,010 16,210 16,210 16,210 16,210 16,210 16,210 Reserve Capacity (KW) 3,620 7,570 7,520 7,470 7,420 13,560 13,500 13,470 13,440 13,410 13,380 Reserve Requirement (KW) 1,250 4,000 4,000 4,000 4,000 6,200 6,200 6,200 6,200 6,200 6,200 Capacity Surplus (Deficit) (KW) 2,370 3,570 3,520 3,470 3,420 7,360 7,300 7,270 7,240 7,210 7,180 Energy Requirements (MWh) 10,370 10,590 10,820 11,050 11,290 11,530 11,780 11,910 12,040 12,170 12,300 Energy Resources (MWh) Existing Hydro 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 Diesel 7,370 0 0 0 0 0 0 0 0 0 0 Goat Lake 0 17,000 17,000 17,000 17,000 17,000 17,000 17,000 17,000 17,000 17,000 Otter Creek 0 0 0 0 O 23,000 23,000 23,000 23,000 23,000 23,000 Other Additions 0 0 0 0 0 0 0) 0 0 } Oo Total Energy Resources 10,370 20,000 20,000 20,000 20,000 43,000 43,000 43,000 43,000 43,000 43,000 Maximum Diesel Generation 30,720 30,720 30,720 30,720 30,720 30,720 30,720 30,720 30,720 30,720 30,720 Surplus Hydro Available 0 9,410 9,180 8,950 8,710 31,470 31,220 31,090 30,960 30,830 30,700 R.W. Beck 3/27/97 [Case 2 (With Interconnections) | Medium Load Growth 11.2% Cost of Capital SKAGWAY Capacity Requirements (KW) Capacity Resources (KW) Existing Hydro Diesel New Diesel Goat Lake Otter Creek Other Additions Total Resources Reserve Capacity (KW) Reserve Requirement (KW) Capacity Surplus (Deficit) (KW) Energy Requirements (MWh) Energy Resources (MWh) Existing Hydro Diesel Goat Lake Otter Creek Other Additions Total Energy Resources Maximum Diesel Generation Surplus Hydro Available R.W. Beck Table 2-A (1) Page 2 of 2 Upper Lynn Canal Regional Power Supply Review Loads and Resources 2008-2009 201020112012, 2013, 2014 20152016 2017 2,860 2,890 2,920 2,950 2,980 3,010 3,040 3,070 3,100 3,130 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 5,010 5,010 5,010 5,010 5,010 5,010 5,010 5,010 5,010 5,010 0 0 0 0 0 0 0 0 0 0 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 0 0 0 0 0 0 0 0 0 0 16,210 16,210 16,210 16,210 16,210 16,210 16,210 16,210 16,210 16,210 13,350 13,320 13,290 13,260 13,230 13,200 13,170 13,140 13,110 13,080 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 7,150 7,120 7,090 7,060 7,030 7,000 6,970 6,940 6,910 6,880 12,430 12,560 12,700 12,840 12,980 13,120 13,260 13,400 13,540 13,690 3,000 3,000» 3,000-= 3,000 = 3,000 = 3,000-=S 3,000 = 3,000 = 3,000 ~—_—d3,000 ty) 0 0 0 0 0 0 0 0 0 17,000 17,000 17,000 17,000 17,000 17,000 17,000 17,000 17,000 17,000 23,000 23,000 23,000 23,000 23,000» 23,000 23,000 23,000 23,000 ~—-23,000 0 0 0 0 0 0) 0 0 0 0) 43,000 43,000 43,000 43,000 43,000 «43,000 43,000 43,000 43,000 43,000 30,720 30,720 30,720 30,720 30,720 30,720 30,720 30,720 30,720 30,720 30,570 30,440 30,300 30,160 30,020 29,880 29,740 29,600 29,460 29,310 3/27/97 Case 2 (With Interconnections) Medium Load Growth 11.2% Cost of Capital HAINES LIGHT & POWER Capacity Requirements (KW) Capacity Resources (KW) Existing Hydro Diesel New Diesel Upper Chilkoot Other Additions Total Resources Reserve Capacity (KW) Reserve Requirement (KW) Capacity Surplus (Deficit) (KW) Energy Requirements (MWh) Energy Resources (MWh) Existing Hydro Diesel Upper Chilkoot Regional Hydro Other Additions Total Energy Resources Maximum Diesel Generation Surplus Hydro Available R.W. Beck Table 2-A (2) Page 1 of 2 Upper Lynn Canal Regional Power Supply Review Loads and Resources 19971998 1999-2000 2001_~——2002_—— 200320042005 2006_~——2007 2,420 2,480 2,550 2,600 2,640 2,690 2,740 2,780 2,830 2,890 2,940 300 300 300 300 300 300 300 300 300 300 300 7,465 7,465 7,465 7,465 7,465 7,465 7,465 7,465 7,465 7,465 7,465 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Oo 7,765 7,765 7,765 7,765 7,765 +«+7,765 ~+~«7,765+~=«7,765.~«7;,765 ~«7;,765.~«7, 765 5,345 5,285 5,215 «5,165 5,125. 5,075 «5,025. 4,985 4,935. 4,875 4,825 2,865 2,865 2,865 2,865 2,865 2,865 2,865 2,865 2,865 2,865 2,865 2,480 2,420 2,350 2,300 2,260 2,210 2,160 +2120 2,070 2,010 1,960 12,710 13,030 13,400 13,700 13,900 14,150 14,430 14,650 14,900 15,190 15,470 1,000 1,000 1,000 =1,000 1,000 = 1,000 = 1,000 1,000 = 1,000 ~— 1,000 ~_—1,000 11,710 2,860 3,450 3,970 4,410 0 0 0) 0) 0) 0 0 0 0 0 0 0 0) 0 0 0 0 0 9,170 8,950 8,730 8,490° 13,150 13,430 13,650 13,900 14,190 14,470 0 0) 0 0 0 0 0 0 0) 0) Oo 12,710 13,030 13,400 13,700-—-'13,900—-*14,150—«*14,430~—+*14,650.~+14,900 15,190 15,470 45,780 45,780 45,780 45,780 45,780 45,780 45,780 45,780 45,780 45,780 45,780 0 0 0 0 0 0 0 0 0 0 0 3/27/97 Case 2 (With Interconnections) "Table 2-A (2) Page 2 of 2 Medium Load Growth Upper Lynn Canal Regional Power Supply Review 11.2% Cost of Capital Loads and Resources 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 HAINES LIGHT & POWER Capacity Requirements (KW) 2,990 3,040 3,090 3,150 3,210 3,280 3,350 3,420 3,490 3,560 Capacity Resources (KW) Existing Hydro 300 300 300 300 300 300 300 300 300 300 Diesel 7,465 7,465 7,465 7,465 7,465 7,465 7,465 7,465 7,465 7,465 New Diesel 0 0 0 0 0 0 0 0 0 0 Upper Chilkoot 0 0 0 0 0 oO 0 0 0 0 Other Additions 0 0 0 0 0 0 0 oO oO 0 Total Resources 7,765 7,765 7,765 7,765 7,765 7,765 7,765 7,765 7,765 7,765 Reserve Capacity (KW) 4,775 4,725 4,675 4,615 4,555 4,485 4,415 4,345 4,275 4,205 Reserve Requirement (KW) 2,865 2,865 2,865 2,865 2,865 2,865 2,865 2,865 2,865 2,865 Capacity Surplus (Deficit) (KW) 1,910 1,860 1,810 1,750 1,690 1,620 1,550 1,480 1,410 1,340 Energy Requirements (MWh) 15,720 15,990 16,270 16,570 16,900 17,250 17,630 18,020 18,420 18,830 Energy Resources (MWh) Existing Hydro 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Diesel 0 0 0 0 0 0 0 0 0 0 Upper Chilkoot 0 0 0 0 0 0 0 0 0 0 Regional Hydro 14,720 14,990 15,270 15,570 15,900 16,250 16,630 17,020 17,420 17,830 Other Additions 0 0 0 0 0 0 0 0 0 oO Total Energy Resources 15,720 15,990 16,270 16,570 16,900 17,250 17,630 18,020 18,420 18,830 Maximum Diesel Generation 45,780 45,780 45,780 45,780 45,780 45,780 45,780 45,780 45,780 45,780 Surplus Hydro Available 0 0 0 0 0 0 0 0 0 0 R.W. Beck Case 2 (With Interconnections) Medium Load Growth 11.2% Cost of Capital KLUKWAN/CHILKAT VALLEY Capacity Requirements (KW) Klukwan Chilkat Valley Total Capacity Resources (KW) Existing Hydro Diesel New Diesel Total Resources Reserve Capacity (KW) Reserve Requirement (KW) Capacity Surplus (Deficit) (KW) Energy Requirements (MWh) Klukwan Chilkat Valley Total Energy Resources (MWh) Existing Hydro Diesel Regional Hydro Other Additions Total Energy Resources Maximum Diesel Generation R.W. Beck 1997 260 360 620 0 1,955 oO 1,955 7,335 800 535 980 980 1,890 2,870 10) 980 0 0 980 11,990 1998 260 370 630 0 1955) oO 1,955 1,325 800 525 990 990 1,950 2,940 0 990 0 0 990 11,990 1999 270 380 650 0 1,955 oO 1,955 1,305 800 505 1,000 1,000 2,000 3,000 0 1,000 0 0 1,000 11,990 2000 270 390 660 0 1,955 0 1,955 1,295 800 495 1,010 1,010 2,070 3,080 0 1,010 0 0 1,010 11,990 Table 2-A (3) Upper Lynn Canal Regional Power Supply Review Loads and Resources 2001 270 400 670 0 1,955 0 1/955 1,285 800 485 1,020 1,020 2,130 3,150 0 1,020 0 0 1,020 11,990 2002 270 420 690 0 1,955 0 1,955 1,265 800 465 1,030 1,030 2,200 3,230 0 1,030 0 0 1,030 11,990 2003 280 430 710 0 1,955 0 1,955 1,245 800 445 1,040 1,040 2,280 3,320 10) 0 3,320 0 3,320 11,990 2004 280 440 720 0 1,955 oO T7955 1,235 800 435 1,050 1,050 2,330 3,380 0 0 3,380 0 3,380 11,990 2005 280 450 730 0 17955 0 1,955 1,225 800 425 1,060 1,060 2,390 3,450 0 0 3,450 0 3,450 11,990 Page 1 of 2 2006 2007 290 290 460 480 750 770 0 0 1,955 1,955 0 0 1,955 1,955 1,205 1,185 800 800 405 385 1,070 1,080 1,070 1,080 2,440 2,500 3,510 3,580 Oo 0 0 0 3,510 3,580 0 i) 3,510 3,580 11,990 11,990 Case 2 (With Interconnections) Table 2-A (3) : Page 2 of 2 Medium Load Growth Upper Lynn Canal Regional Power Supply Review 11.2% Cost of Capital Loads and Resources 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 KLUKWAN/CHILKAT VALLEY Capacity Requirements (KW) Klukwan 290 290 300 300 300 310 310 310 310 310 Chilkat Valley 490 500 510 530 540 550 570 590 610 630 Total 780 790 810 830 840 860 880 900 920 940 Capacity Resources (KW) Existing Hydro _ 0 0 0 0 0 0 0 0 0 0 Diesel 1,985 1,955 1,955 1,955 1,955 1,955 1,955 1,955 1,955) 1,955 New Diesel 0 0 0 0 0 0 ) 0 0 oO Total Resources 1,955 1,955 1,955 1,955 1,955 1,955 1,955 7955 1,955 1,955 Reserve Capacity (KW) V7S 1,165 1,145 1,125 its 1,095 1,075 1,055 1,035 1,015 Reserve Requirement (KW) 800 800 800 800 800 800 800 800 800 800 Capacity Surplus (Deficit) (KW) 375 365 345 325 315 295 275) 285 235 215 Energy Requirements (MWh) 1,090 1,100 1,110 1,120 1,130 1,150 1,160 1,170 1,180 1,190 Klukwan 1,090 1,100 1,110 1,120 1,130 1,150 1,160 1,170 1,180 1,190 Chilkat Valley 2,560 2,630 2,690 2,760 2,840 2,910 2,990 3,070 3,150 3,230 Total 3,650 3,730 3,800 3,880 3,970 4,060 4,150 4,240 4,330 4,420 Energy Resources (MWh) . Existing Hydro 0 0 0 0 0 0 0 0 0 0 Diesel 0 0 0 0 0 0 0 0 0 0 Regional Hydro 3,650 3,730 3,800 3,880 3,970 4,060 4,150 4,240 4,330 4,420 Other Additions 0 0 0 0 0 () 0 0 (0) 0 Total Energy Resources 3,650 3,730 3,800 3,880 3,970 4,060 4,150 4,240 4,330 4,420 Maximum Diesel Generation 11,990 11,990 11,990 11,990 11,990 1 1,990 11,990 11,990 11,990 1 1,990 R.W. Beck 3/27/97 Case 2 (With Interconnections) Medium Load Growth 11.2% Cost of Capital Inflation Factor Fuel Escalation Fuel Cost - Skagway ($/gallon) Fuel Cost - Haines ($/gallon) Fuel Cost - Klukwan ($/gallon) Diesel Costs Fuel Variable O&M Fixed O&M (New Units) Capital Cost (New Units) Total Diesel Costs Existing System Hydro O&M Existing System Hydro Depr. New Hydro Costs O&M Capital Costs Total New Hydro Costs Transmission Line Costs O&M Purchased Power Capital Recovery Total T-Line Costs Total Regional Power Cost Regional Energy Reqs. (MWh) Regional Cost of Power (¢/kWh) R.W. Beck Table 2-A (4) Page 1 of 2 Upper Lynn Canal Regional Power Supply Review Regional Economic Analysis ($000) 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 1.000 1.030 1.061 1.093 1.126 1.159 1.194 1.230 1.267 1.305 1.344 1.000 1.035 1.072 1.109 1.148 1.189 1.230 1.274 1.318 1.365 1.413 0.870 0.901 0.932 0.965 0.999 1.034 1.070 1.108 1.147 1.187 1.229 0.850 0.880 0.911 0.943 0.976 1.010 1.046 1.083 V121 1.160 1.201 0.850 0.880 0.911 0.943 0.976 1.010 1.046 1.083 24 1.160 1.201 $ 1,282 $ 260 $ 310 $ 359 $ 405 $ 82 $ 0 $ 0 $ Oo $ O $ 0 323 a7 66 75 84 25 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O oO 0 0 0 0 0 0 0 0 0 0 0 $ 1,05 $ 317 $ 376 $ 434 $ 489 $ 107 $ 0 $ 0 $ 0 $ 0 $ 0 $ 27 $ 28 $ 29 $ 30 $ 30 $ 31 $ 32)| $ 33 $ 34 35 $ 36 19 19 19 19 19 19 19 19 19 19 19 $ 0 $ 88 §$ 90 $ 93 $ 96 $ 197 $ 203 $ 209 $ 215 $ 222 $ 228 0 1,143 1,143 1,143 1,143 1,861 1,861 1,861 1,861 1,861 1,861 $ O $ 1,231 $ 1,233 $ 1,236 $ 1,239 $ 2,058 $ 2,064 $ 2,070 $ 2,076 $ 2,083 $ 2,089 $ 0 $ 15 $ 16 $ 16 $ 17 $ 17 $ 30 $ 31 $ 32 $ 33 $ 34 0 0 0 0 0 0 0 0 0 0 0 0 650 650 650 650 650 873 873 873 873 873 $ O $ 665 $ 666 $ 666 $ 667 $ 667 $ 903 $ 904 $ 905 $ 906 $ 907 $ 1,651 $ 2,260 $ 2,323 $ 2,385 $ 2,444 $ 2,882 $ 3,018 $ 3,026 $ 3,034 $ 3,043 $ 3,051 25,950 26,560 27,220 27,830 28,340 28,910 29,530 29,940 30,390 30,870 31,350 6.4 8.5 8.5 8.6 8.6 10.0 10.2 10.1 10.0 9.9 97 Cumulative Net Present Value to Jan. 1997 20 Years (1997 through 2016) $22,194 30 Years (2017 - 2046) with no additional growth 3,063 Total Cumulative Net Present Value $25;257 3/27/97 Case 2 (With Interconnections) l Table 2-A (4) Page 2 of 2 Medium Load Growth Upper Lynn Canal Regional Power Supply Review 11.2% Cost of Capital Economic Analysis ($000) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Inflation Factor 1.384 1.426 1.469 513) 1.558 1.605 1.653 1.702 1.754 1.806 Fuel Escalation 1.462 1.514 1.567 1.622 1.679 1.738 1,799 1,862 1.928 1,996 Fuel Cost - Skagway ($/gallon) 1.272 1.317 1.363 1.411 1.461 1.512 1.565 1.620 1.677 1.736 Fuel Cost - Haines ($/gallon) 1.243 1.287 1.332 1.379 1.427 1.477 1.529 1.583 1.639 1.696 Fuel Cost - Klukwan ($/gallon) 1.243 1.287 1.332 1.379 1.427 1.477 1.529 1.583 1.639 1.696 Diesel Costs Fuel $ 0 '$ 0 $ Oo $ 0 $ 0 $ a 0 $ 0 $ 0) $ 0 Variable O&M 0 0 0 0 0 0 0 0 10) 0 Fixed O&M (New Units) 0 0 0 0 0 0 0 0 0 0 Capital Cost (New Units) 0 0 0 0 0 0 0 0 0 (0) Total Diesel Costs 0 crea ane ors san Lo Existing System Hydro O&M SMS SPSS MSH MOMS HATS AZ ES MAS HSMM AS SIMMS RS Ill lta zall il llllLag Existing System Hydro Depr. 19 19 19 19 19 19 19 19 19 19 New Hydro Costs O&M SPSS NOM 242 US M250 SMM EZS ZAMS ME ZG SS M273 IS IEP CUS IMZBONSINNh298 > x Capital Costs 1,861 1,861 1,861 1,861 1,861 1,861 1,861 1,861 1,861 1,861 Total New Hydro Costs S| 2;096)))|' $271.03; 1S) 2,01) Si 2 AS S26 S234 NSiaT42¢ 27150) 1$)/2,159) | '$)/2)168 Transmission Line Costs O&M $ 35 $ 36 $ S7IIS, 38 $ 39S 40 $ 41 $ ASS) 44 $ 45 Purchased Power 0 0 0 0 0 0 0 0 0 0 Capital Recovery 873 873 873 873 873 873 873 873 873 873 Total T-Line Costs CSM SM Oo MSM LOM S IMS AMS MS PSI 1 SIESTA SUT GIS INT $) 918 Total Regional Power Cost $ 3,060 $ 3,069 $ 3,080 $ 3,089 $ 3,099 $ 3,109 $ 3,120 $ 3,131 $ 3,142 §$ 3,154 Regional Energy Reqs. (MWh) 31,800 32,280 32,770 33,290 33,850 34,430 = 35,040 35,660 36,290 36,940 Regional Cost of Power (¢/kWh) 9.6 9.5 9.4 9.3 9.2 9.0 8.9 8.8 8.7 8.5 R.W. Beck 3/27/97 Case 2 (With Interconnections) Table 2-A (4S) Page 1 of 2 Medium Load Growth Upper Lynn Canal Regional Power Supply Review 11.2% Cost of Capital Skagway Economic Analysis ($000) 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Inflation Factor 1.000 1.030 1.061 1.093 1.126 1.159 1.194 1.230 1.267 1.305 1.344 Fuel Escalation 1.000 1.035 1.072 1.109 1.148 1.189 1.230 1.274 1.318 1.365 1.413 Fuel Cost - Skagway ($/gallon) 0.870 0.901 0.932 0.965 0.999 1.034 1.070 1.108 1.147 1.187 1.229) Fuel Cost - Haines ($/gallon) 0.850 0.880 0.911 0.943 0.976 1.010 1.046 1.083 1.5121 1.160 1.201 Fuel Cost - Klukwan ($/gallon) 0.850 0.880 0.911 0.943 0.976 1.010 1.046 1.083 1.121 1.160 1.201 Diesel Costs Fuel $ 462 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ Oo $ oO $ 0 Variable O&M 161 0 0 0 0 0 0 0 0 0 Oo Fixed O&M (New Units) 0 0 0 0 0 0 0 0 0 0 0 Capital Cost (New Units) Oo Oo 0 0 Oo Oo 0 0 0 0 0 Total Diesel Costs $ 623 $ 0 $ 0 $ 0 Oo $ oO $ 0 $ 0 $ 0 $ O $ 0 Existing System Hydro O&M $ 27 $ 28 $ 29 $ 30 30 §$ 31 $ 32 $ 33 $ 34 $ 35 $ 36 Existing System Hydro Depr. 19 19 19 19 19 19 19 19 19 19 19 New Hydro Costs O&M $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Capital Costs 0 0 0 0 0 0 0 0 0 0 0 Total New Hydro Costs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Transmission Line Costs O&M $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Purchased Power 0 859 886 912 942 1,072 1,020 1,022 1,021 1,020 1,019 Capital Recovery 0 0 0 0 0 0 0 0 0 ) oO Total T-Line Costs $ O $ 859 $ 886 $ 912 $ 942 $ 1,072 $ 1,020 $ 1,022 $ 1,021 $ 1,020 $ 1,019 Total Skagway Power Cost $ 669 $ 906 $ 934 $ 961 $ 991 $ 1,122 $ 1,071 $ 1,074 $ 1,074 $ 1,074 $ 1,074 Skagway Energy Reqs. (MWh) 10,370 10,590 10,820 11,050 11,290 11,530 11,780 11,910 12,040 12,170 12,300 Skagway Cost of Power (¢/kWh) 6.5 8.6 8.6 8.7 8.8 9.7 9.1 9.0 8.9 8.8 8.7 Diesel Cost of Generation (¢/kWh) 8.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Cumulative Net Present Value to Jan. 1997 20 Years (1997 through 2016) $ 8,287 30 Years (2017 - 2046) with no additional growth 1,038 Total Cumulative Net Present Value $ 9,325 / R.W. Beck 3/27/97 Case 2 (With Interconnections) Medium Load Growth 11.2% Cost of Capital Inflation Factor Fuel Escalation Fuel Cost - Skagway ($/gallon) Fuel Cost - Haines ($/gallon) Fuel Cost - Klukwan ($/gallon) Diesel Costs Fuel $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Variable O&M 0 0 0 0 0 0 0 0 0 0 Fixed O&M (New Units) 0 0 0 0 0 0 0 0 0 0 Capital Cost (New Units) 0 i} 0 0 ) 0 0 0 0 0 Total Diesel Costs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ oO $ 0 $ oO $ 0 Existing System Hydro O&M $ 37 $ 38 $ 40 $ 41 $ 42 $ #43 $ 45 $ 46 $ 47 $ 49 Existing System Hydro Depr. 19 19 19 19 19 19 19 19 19 19 New Hydro Costs ‘ O&M $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ Oo $ Oo $ 0 $ 0 Capital Costs 0 0 0 0 0 0 0 0 0 0 Total New Hydro Costs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Transmission Line Costs O&M Purchased Power Capital Recovery Total T-Line Costs Total Skagway Power Cost Skagway Energy Reqs. (MWh) Skagway Cost of Power (¢/kWh) Diesel Cost of Generation (¢/kWh) R.W. Beck Table 2-A (4S) Page 2 of 2 Upper Lynn Canal Regional Power Supply Review Skagway Economic Analysis ($000) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1.384 1.426 1.469 1.513 1.558 1.605 1.653 1.702 1.754 1.806 1.462 1.514 1.567 1.622 1.679 1.738 1.799 1.862 1.928 1.996 1.272 1.317 1.363 1.411 1.461 1.512 1.565 1.620 1.677 1.736 1.243 1.287 1.332 1.379 1.427 1.477 1.529 1.583 1.639 1.696 1.243 1.287 15332) 1.379 1.427 1.477 1529) 1.583 1.639 1.696 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 1,019 1,018 1,019 1,018 1,016 1,013 1,010 1,007 1,004 1,001 0 0 0 0 0 ) 0 oO 0 0 $ 1,019 $ 1,018 $ 1,019 $ 1,018 $ 1,016 $ 1,013 $ 1,010 $ 1,007 $ 1,004 $ 1,001 $ 1,075 $ 1,075 $ 1,078 $ 1,078 $ 1,077 $ 1,075 $ 1,074 $ 1,072 $ 1,070 $ 1,069 12,430 12,560 12,700 12,840 12,980 13,120 13,260 13,400 13,540 13,690 8.7 8.6 8.5 8.4 8.3 8.2 8.1 8.0 7.9) 7.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 3/27/97 Case 2 (With Interconnections) ; Table 2-A (4H) Page 1 of 2 Medium Load Growth Upper Lynn Canal Regional Power Supply Review 11.2% Cost of Capital Haines Economic Analysis ($000) 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Inflation Factor 1.000 1.030 1.061 1.093 1.126 1.159 1.194 1.230 1.267 1.305 1.344 Fuel Escalation 1.000 1.035 1.072 1.109 1.148 1.189 1.230 1.274 1.318 = 1.365 1.413 Fuel Cost - Skagway ($/gallon) 0.870 0.901 0.932 0.965 0.999 1.034 1.070 1.108 1.147 1.187 1.229 Fuel Cost - Haines ($/gallon) 0.850 0880 0.911 0.943 0.976 1.010 1.046 1.083 1.121 1.160 1.201 Fuel Cost - Klukwan ($/gallon) 0.850 0.880 0.911 0.943 0.976 1.010 1.046 1.083 T1243 1.160 1.201 Diesel Costs Fuel $ 754 $ 191 $ 238 $ 283 $ 326 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Variable O&M 142 36 44 53 60 0 0 0 0 0 0 Fixed O&M (New Units) 0 0 0 0 0 0 0 0 0 0 oO Capital Cost (New Units) 0 0 0 0 0 0 0 0 oO 0 0 Total Diesel Costs $ 896 $ 227 $ 282 $ 336 $ 386 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 New Hydro Costs O&M $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Capital Costs 0 0 0 0 0 0 0 0 i) 0 i) Total New Hydro Costs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Transmission Line Costs O&M $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Purchased Power 0 1,037 1,013 990 964 1,653 1,561 1,565 1,570 1,578 1,585 Capital Recovery 0 0 0 0 0 0 0 0 } 0 0 Total T-Line Costs $ O $ 1,037 $ 1,013 $ 990 $ 964 $ 1,653 $ 1,561 $ 1,565 $ 1,570 $ 1,578 $ 1,585 Total Haines Power Cost $ 896 $ 1,264 $ 1,295 $ 1,326 $ 1,350 $ 1,653 $ 1,561 $ 1,565 $ 1,570 $ 1,578 $ 1,585 Haines Energy Reqs. (MWh) , 12,710 13,030 13,400 13,700 13,900 14,150 14,430 14,650 14,900 15,190 15,470 Haines Cost of Power (¢/kWh) 7.0 9.7 9.7 9.7 9.7 11.7 10.8 10.7 10.5 10.4 10.2 Cumulative Net Present Value to Jan. 1997 20 Years (1997 through 2016) $11,916 30 Years (2017 - 2046) with no additional growth 1,622 Total Cumulative Net Present Value $13,538 R.W. Beck 3/27/97 Case 2 (With Interconnections) Table 2-A (4H) Page 2 of 2 Medium Load Growth Upper Lynn Canal Regional Power Supply Review 11.2% Cost of Capital Haines Economic Analysis ($000) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Inflation Factor 1.384 1.426 1.469 1.513. 1.558 1.605 1.653 1.702 1.754 1.806 Fuel Escalation 1.462 1.514 1.567 1.622 1.679 1.738 13799 1.862 1.928 1.996 Fuel Cost - Skagway ($/gallon) 1.272 1.317 1.363 1.411 1.461 1.512 1.565 1.620 1.677 1.736 Fuel Cost - Haines ($/gallon) 1.243 1.287 1.332 1.379 1.427 1.477 12529 1.583 1.639 1.696 Fuel Cost - Klukwan ($/gallon) 1.243 1.287 12332 1.379 1.427 1.477 1.529 1.583 1.639 1.696 Diesel Costs Fuel $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ Oo $ 0 $ 0 $ 0 Variable O&M 0 0 0 0 0 0 0 0 0 0 Fixed O&M (New Units) 0 0 0 0 0 Oo 0 0 0 0 Capital Cost (New Units) 0 0 0 0 0 0 0 0 oO oO Total Diesel Costs $ O08 OF O8$ O$ 0$ O0$ 0 $ 0 -$ 0 $7 O New Hydro Costs O&M $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ Oo $ 0 $ 0 Capital Costs 0 0 0 0 0 0 0 0 0 0 Total New Hydro Costs. = “$0 $ O08 08 0S 0 0% 0S O30 SO Transmission Line Costs O&M $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ O $ 0 $ 0 Purchased Power 1,591 1,597 1,603 1,610 1,618 1,627 1,637 1,648 1,659 1,670 Capital Recovery 0 oO 0 0 0 0 0 0 0 0 Total T-Line Costs $ 1,591 $ 1,597 $ 1,603 $ 1,610 $ 1,618 $ 1,627 $ 1,637 $ 1,648 $ 1,659 $ 1,670 Total Haines Power Cost $ 1,591 $ 1,597 $ 1,603 $ 1,610 $ 1,618 $ 1,627 $ 1,637 $ 1,648 $ 1,659 $ 1,670 Haines Energy Reqs. (MWh) 15,720 15,990 16,270 16,570 16,900 17,250 17,630 18,020 18,420 18,830 Haines Cost of Power (¢/kWh) 10.1 10.0 9.9 9.7 9.6 9.4 9.3 9.1 9.0 8.9 R.W. Beck 3/27/97 Case 2 (With Interconnections) Medium Load Growth 11.2% Cost of Capital Inflation Factor New Hydro Costs O&M Capital Costs Total New Hydro Costs Transmission Line Costs O&M Purchased Power Capital Recovery Total T-Line Costs Total Regional Power Cost Net Energy Requirements (MWh) Skagway Haines Chilkat Valley/Klukwan Total Regional Cost of Power (¢/kWh) R.W. Beck 1997 1.000 co co ojooo 0 0 0 0 0.0 Table 2-A (5) Upper Lynn Canal Regional Power Supply Review Cost of Regional Power Resources ($000) 1998 1999 2000 2001 2002 1.030 1.061 1.093 1.126 1.159 $ 88 $ 90 $ 93 $ 96 $ 197 1,143 1,143. «1,143. 1,143 1,861 $ 1,231 $ 1,233 $ 1,236 $ 1,239 $ 2,058 $ 15 $ 6 $ 6%$ #17 $ #17 0 0 0 0 0 650 650 650 650 650 $ 665 $ 666 $ 666 $ 667 $ 667 $ 1,896 $ 1,899 $ 1,902 $ 1,906 $ 2,725 7,590 7,820 8,050 8,290 8,530 9,170 8,950 8,730 8,490 13,150 0 0 0 0 0 16,760 16,770 16,780 16,780 21,680 11.3 11.3 11.3 11.4 12.6 2003-2004 ~——-2005 1.194 1.230 1.267 $ 203 $ 209 $ 215 1,861 1,861 ——‘1,861 $ 2,064 $ 2,070 $ 2,076 $ 30$ 31% 32 0 0 oO 873 873 873 $ 903 $ 904 $ 905 $ 2,967 $ 2,974 $ 2,981 8,780 8910 9,040 13,430 13,650 13,900 3,320 3,380 3,450 25,530 25,940 26,390 11.6 11.5 11.3 Page 1 of 2 2006 2007 1.305 1.344 $ 222 $ 228 1,861 ‘1,861 $ 2,083 $ 2,089 $ 33 $ 34 0 0 873 873 $ 906 $ 907 $ 2,989 $ 2,996 9,170 9,300 14,190 14,470 3,510 3,580 26,870 27,350 UAL 11.0 3/27/97 Case 2 (With Interconnectioi Table 2-A (5) Page 2 of 2 Medium Load Growth Upper Lynn Canal Regional Power Supply Review 11.2% Cost of Capital Cost of Regional Power Resources ($000) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Inflation Factor 1.384 1,426 1.469 1.513 1.558 1.605 1.653 1.702 1.754 1.806 New Hydro Costs O&M S|) 235) $1 || 242) $1) 1/250) 1S) 1) :2577 15 || 126511$ | 1\:2731)$1)\ 281)|| $ || 289) |'$'\):298 | I$) |).307 Capital Costs 1,861 1,861 1,861 1,861 1,861 1,861 1,861 1,861 1,861 1,861 Total New Hydro Costs $)125096 11S) 927103) S201 Si) 27118 1S! (2126) 11S) 2134) 5S) .2;1.42)| ks 25150) $) 27159! |S) 27168 Transmission Line Costs O&M $ 35171$ 36 $ 37, $ 38 §$ 39 $ 40 $ 41 $ 43 $ 44 $ 45 Purchased Power 0 0 0 0 0 0 0 0 0 0 Capital Recovery 873 873 873 873 873 873 873 873 873 873 Total T-Line Costs $ 908 $ 909 $ 910 $ 911 $ 912 $ 913 $ 914 $ 916 $ 917 $ 918 Total Regional Power Cost $ 3,004 $ 3,012 $ 3,021 $ 3,029 $ 3,038 $ 3,047 $ 3,056 $ 3,066 $ 3,076 $ 3,086 Net Energy Requirements (MWh) Skagway 9,430 9,560 9,700 9,840 9,980 10,120 10,260 10,400 10,540 10,690 Haines 14,720 14,990 15,270 15,570 15,900 16,250 16,630 17,020 17,420 17,830 Chilkat Valley/Klukwan 3,650 3,730 3,800 3,880 3,970 4,060 4,150 4,240 4,330 4,420 Total 27,800 28,280 28,770 29,290 29,850 30,430 31,040 31,660 32,290 32,940 Regional Cost of Power (¢/kWh) 10.8 10.7 10.5 10.3 10.2 10.0 9.8 9.7 9.5 9.4 R.W. Beck 3/27/97 Case Title Title Subheading Title Subheading LOAD / RESOURCE ASSUMPTIONS Skagway Load Forecast (M,L,H) Skagway Reserve Minimum (KW) Goat Lake On-Line Year Goat Lake Capacity (KW) Goat Lake Energy (MWh) Otter Creek On-Line Year Otter Creek Capacity (KW) Otter Creek Energy (MWh) HLP Load Forecast (M,L,H) HLP Reserve Minimum (KW) Upper Chilkoot On-Line Year Upper Chilkoot Capacity (KW) Upper Chilkoot Energy (MWh) Klukwan Load Forecast (M,L,H) Klukwan Reserve Minimum (KW) Chilkat Valley Load Forecast (M,L,H) Chilkat Reserve Minimum (KW) Skagway/HLP Interconnect Year Skagway/HLP Trans. Losses HLP/Klukwan/Chilkat Interconnect Year HLP/Klukwar/Chilkat Trans. Losses Maximum Annual Diesel Cap. Factor New Diesel Capacity Standby Units (KW) Prime Units (KW) Diesel Station Service Hydro Station Service R.W. Beck Case 3 (Diesel) Medium Load Growth 11.2% Cost of Capital M Inflation Rate 1,250 Interest Rate 2050 Discount Rate 4,000 Fuel Cost (97$/gal) 17,000 Skagway 2050 Haines 6,200 Klukwan/Chilkat 23,000 Real Fuel Escalation M Diesel O&M (97¢/kWh) 2,865 Skagway 2050 Haines 6,200 Klukwan/Chilkat 23,000 Heat Rate (kWh/gal) M Skagway 400 Haines M Klukwar/Chilkat 400 Disesel O&M Fixed -New 2050 Diesel Cap. (97$/kW) 2.5% Standby Units 2050 Prime Units 3.0% Diesel Repay Years Hydro/Int. Repay Years 70.0% 1,800 1,200 3.00% 2.20% Table 3-A ECONOMIC ANALYSIS ASSUMPTIONS 3,00% 11.20% 11.20% 0.87 0.85 0.85 0.50% 2.12 1.18 2.00 14.3 13.6 13.0 450 550 20 30 Upper Lynn Canal Regional Power Supply Review Case Assumptions Inflation Rate 3.00% Interest Rate 7.50% Discount Rate 7.50% Diesel Repay Years 20 Hydro Repay Years 30 NEW RESOURCE COSTS Hydro Capital Cost (97$000) Goat Lake 9,500 Upper Chilkoot 18,900 Otter Creek 5,300 Hydro Annual O&M (97$000) Goat Lake 85 Upper Chilkoot 126 Otter Creek 85 Transmission Capital Cost (97$000) Skagway-Haines 5,400 Halines-Klukwan-Chilkat 1,600 Transmission Annual O&M (97$000) Skagway-Haines 15 Haines-Klukwan-Chilkat 10 FINANCIAL ANALYSIS ASSUMPTIONS 3/27/97 Case 3 (Diesel) Medium Load Growth 11.2% Cost of Capital SKAGWAY Capacity Requirements (KW) Capacity Resources (KW) Existing Hydro Diesel New Diesel Goat Lake Otter Creek Other Additions Total Resources Reserve Capacity (KW) Reserve Requirement (KW) Capacity Surplus (Deficit) (KW) Energy Requirements (MWh) Energy Resources (MWh) Existing Hydro Diesel Goat Lake Otter Creek Other Additions Total Energy Resources Maximum Diesel Generation Surplus Hydro Available R.W. Beck 1997 2,390 1,000 5,010 0 0 0 0 6,010 3,620 1,250 2,370 10,370 3,000 7,370 0 0 0 10,370 30,720 1998 2,440 1,000 5,010 0 0 0 0 6,010 3,570 1,250 2,320 10,590 3,000 7,590 0 0 0 10,590 30,720 Table 3-A (1) Page 1 of 2 Upper Lynn Canal Regional Power Supply Review Loads and Resources 1999 2000 2001 2002 2003 2004 2005 2006 2007 2,490 2,540 2,590 2,650 2,710 2,740 2,770 2,800 2,830 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 5,010 5,010 5,010 5,010 5,010 5,010 5,010 5,010 ‘5,010 0 0 0 0 0) 0 0 0 0 0 0 0 0 0 0 0 0) 0 0 0 0) 0) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6,010 6,010 6,010 6,010 6,010 6,010 6,010 6,010 6,010 3,520 3,470 3,420 3,360 3,300) 3,270 3,240) 3,210 ~——3,180 1,250 1,250 1,250 1,250 1,250 1,250. 1,250. 1,250 ‘1,250 2,270 2,220 2,170 2,110 2,050 2,020 1,990 1,960 1,930 10,820 11,050 11,290 11,530 11,780 11,910 12,040 12,170 12,300 3,000 3,000 3,000 = 3,000 3,000 3,000-~— 3,000 -~— 3,000 ~—3,000 7,820 8,050 8,290 8530 8,780 8910 9,040 9,170 9,300 0 0 O 0 0 0 0) 0 0 0 0 0 0) 0 ty) 0 ) 0 ) 0 0 ) 0) 0) 0) 0 0) 10,820 11,050 11,290 11,530 11,780 11,910 12,040 12,170 ‘12,300 30,720 30,720 30,720 30,720 30,720 30,720 30,720 30,720 30,720 0 0 0 0 0 0 0 0 0 3/27/97 Case 3 (Diesel) Medium Load Growth 11.2% Cost of Capital SKAGWAY Capacity Requirements (KW) Capacity Resources (KW) Existing Hydro Diesel New Diesel Goat Lake Otter Creek Other Additions Total Resources Reserve Capacity (KW) Reserve Requirement (KW) Capacity Surplus (Deficit) (KW) Energy Requirements (MWh) Energy Resources (MWh) Existing Hydro Diesel Goat Lake Otter Creek Other Additions Total Energy Resources Maximum Diesel Generation Surplus Hydro Available R.W. Beck Table 3-A (1) Page 2 of 2 Upper Lynn Canal Regional Power Supply Review Loads and Resources 2008-2009, 2010 _~__—s2011 2012, 2013, 2014 20152016 ~——2017 2,860 2,890 2,920 2,950 2,980 3,010 3,040 3,070 3,100 3,130 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 = 1,000 5,010 5,010 5,010 5,010 5,010 5,010 5,010 5,010 5,010 5,010 0 0) 0 0 0 0 0) 0 0 0 0 0 0 0 0) 0 0 0 0 0 0 0 0 0 0) 0 0 0 0 0 ) 0) 0 0 0 0 0 0 0 0 6,010 6,010 6,010 «6,010 «6,010 «6,010 «6,010 «6, 010~—«6,010~—«6,010 3,150 3,120. 3,090 3,060 3,030» 3,000 Ss 2,970 2,940 ~—2,910 2,880 1,250 1,250 1,250. 1,250 1,250. 1,250. 1,250 1,250 1,250 ~—-1,250 1,900 1,870 1,840 1,810 1,780 1,750 1,720 1,690 1,660 —‘1,630 12,430 12,560 12,700 12,840 12,980 13,120 13,260 13,400 13,540 13,690 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 _ 3,000 : 9,430 9,560 9,700 9,840 9,980 10,120 10,260 10,400 10,540 10,690 0 0 0 0 0 0 0 0 0 0) 0 0 0 0 0 ) 0 0 0 0 ) 0 0 0 0 0 0) ) 0) 0 12,430 12,560 12,700 12,840 12,980 13,120 13,260 13,400 13,540 13,690 30,720 = 30,720 = 30,720 30,720 30,720 = 30,720 30,720 = 30,720 = 30,720 = 30,720 0) 0) 0 0) 0 0 0 0 0) 0 3/27/97 Case 3 (Diesel) Table 3-A (2) Page 1 of 2 Medium Load Growth Upper Lynn Canal Regional Power Supply Review 11.2% Cost of Capital Loads and Resources 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 HAINES LIGHT & POWER Capacity Requirements (KW) 2,420 2,480 2,550 2,600 2,640 2,690 2,740 2,780 2,830 2,890 2,940 Capacity Resources (KW) Existing Hydro 300 300 300 300 300 300 300 300 300 300 300 Diesel 7,465 7,465 7,465 7,465 7,465 7,465 7,465 7,465 7,465 7,465 7,465 New Diesel 0 0 0 0 0 0 0 0 0 0 0 Upper Chilkoot 0 0 0 0 0 0 0 0 0 0 0 Other Additions 0 0 0 0 0 0 0 0 0 0 0 Total Resources 7,765 7,765 7,765 7,765 7,765 7,765 7,765 7,765 7,765 7,765 7,765 Reserve Capacity (KW) 5,345 5,285 5,215 5,165 o7l25) 5,075 5,025 4,985 4,935 4,875 4,825 Reserve Requirement (KW) 2,865 2,865 2,865 2,865 2,865 2,865 2,865 2,865 2,865 2,865 2,865 Capacity Surplus (Deficit) (KW) 2,480 2,420 2,350 2,300 2,260 2,210 2,160 2,120 2,070 2,010 1,960 Energy Requirements (MWh) 12,710 =13,030 13,400 13,700 13,900 14,150 14,430 14,650 14,900 15,190 15,470 Energy Resources (MWh) Existing Hydro 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Diesel 11,710 12,030 12,400 12,700 12,900 13,150 13,430 13,650 13,900 14,190 14,470 Upper Chilkoot 0 0 0 0 0 0 0 0 0 0 0 Regional Hydro 0 0 0 0 0 0 0 0 0 0 0 Other Additions 0 0 0 0 0 0 0 0 0 0 0 Total Energy Resources 12,710 13,030 13,400 13,700 13,900 14,150 14,430 14,650 14,900 15,190 15,470 Maximum Diesel Generation 45,780 45,780 45,780 45,780 45,780 45,780 45,780 45,780 45,780 45,780 45,780 Surplus Hydro Available 0 0 0 0 0 0 0 0 0 0 0 R.W. Beck 3/27/97 Case 3 (Diesel) Table 3-A (2) Page 2 of 2 Medium Load Growth Upper Lynn Canal Regional Power Supply Review 11.2% Cost of Capital Loads and Resources 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 HAINES LIGHT & POWER Capacity Requirements (KW) 2,990 3,040 3,090 3,150 3,210 3,280 3,350 3,420 3,490 3,560 Capacity Resources (KW) : Existing Hydro 300 300 300 300 300 300 300 300 300 300 Diesel 7,465 7,465 7,465 7,465 7,465 7,465 7,465 7,465 7,465 7,465 New Diesel 0 0 0 0 0 0 0 0 0 0 Upper Chilkoot 0 0 0 0 0 0 0 0 0 0 Other Additions 0 0 0 0 0 0 0 0 0 0 Total Resources 7,765 7,165 7,765 7,765 7,765 7,765 7,765 7,765 7,765 7,765 Reserve Capacity (KW) 4,775 4,725 4,675 4,615 4,555 4,485 4,415 4,345 4,275 4,205 Reserve Requirement (KW) 2,865 2,865 2,865 2,865 2,865 2,865 2,865 2,865 2,865 2,865 Capacity Surplus (Deficit) (KW) 1,910 1,860 1,810 1,750 1,690 1,620 1,550 1,480 1,410 1,340 Energy Requirements (MWh) 15,720 15,990 16,270 16,570 16,900 17,250 17,630 18,020 18,420 18,830 Energy Resources (MWh) Existing Hydro 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Diesel 14,720 14,990 15,270 15,570 15,900 16,250 16,630 17,020 17,420 17,830 Upper Chilkoot 0 0 0 0 0 0 0 0 0 0 Regional Hydro 0 0 0 0 0 0 0 0 0 0 Other Additions 0 0 0 0 0 0 0 0 0 0 Total Energy Resources 15,720 15,990 16,270 16,570 16,900 17,250 17,630 18,020 18,420 18,830 Maximum Diesel Generation 45,780 45,780 45,780 45,780 45,780 45,780 45,780 45,780 45,780 45,780 Surplus Hydro Available 0 0) 0 0 0 0 0 0 0 0 R.W. Beck 3/27/97 Case 3 (Diesel) Table 3-A (3) Page 1 of 2 Medium Load Growth Upper Lynn Canal Regional Power Supply Review 11.2% Cost of Capital Loads and Resources 1997 1998 1999) 2000 2001 2002 2003 2004 2005 2006 2007 KLUKWAN/CHILKAT VALLEY Capacity Requirements (KW) Klukwan 260 260 270 270 270 270 280 280 280 290 290 Chilkat Valley 360 370 380 390 400 420 430 440 450 460 480 Total 620 630 650 660 670 690 710 720 730 750 770 Capacity Resources (KW) Existing Hydro 0 0 10} 0 0 0 0 0 0 0 0 Diesel 1,955 1,955 1,955 1,955 13955 1,955 1,955 1,955 1,955 1,955 1,955 New Diesel 0 0 0 0 0 0 0 0 0 0 0 Total Resources 1,955 1,955. 1,955) 7,955) 1/955 17955 17955) 1,955 1,955 1,955) 1,955 Reserve Capacity (KW) 17335) 1,325) 1,305 1,295 1,285 1,265 1,245 1,235 1,225 1,205 1,185 Reserve Requirement (KW) 800 800 800 800 800 800 800 800 800 800 800 Capacity Surplus (Deficit) (KW) 935) 525 505 495 485 465 445 435 425 405 385 Energy Requirements (MWh) 980 990 1,000 1,010 1,020 1,030 1,040 1,050 1,060 1,070 1,080 Klukwan 980 990 1,000 1,010 1,020 1,030 1,040 1,050 1,060 1,070 1,080 Chilkat Valley 1,890 1,950 2,000 2,070 2,130 2,200 2,280 2,330 2,390) 2,440 2,500 Total 2,870 2,940 3,000 3,080 3,150 3,230 3,320 3,380 3,450 3,510 3,580 Energy Resources (MWh) Existing Hydro 0 0 0 0 0 0 0 0 0 0 0 Diesel 980 990 1,000 1,010 1,020 1,030 1,040 1,050 1,060 1,070 1,080 Regional Hydro 0 0 0 0 0 0 0 0 0 0 0 Other Additions 0 0 i} 0 0 0 0 } } 0 0 Total Energy Resources 980 990 1,000 1,010 1,020 1,030 1,040 1,050 1,060 1,070 1,080 Maximum Diesel Generation 11,990 11,990 11,990 11,990 11,990 11,990 11,990 11,990 11,990 14 1,990 11,990 R.W. Beck Case 3 (Diesel) Medium Load Growth 11.2% Cost of Capital KLUKWAN/CHILKAT VALLEY Capacity Requirements (KW) Klukwan Chilkat Valley Total Capacity Resources (KW) Existing Hydro Diesel New Diesel Total Resources Reserve Capacity (KW) Reserve Requirement (KW) Capacity Surplus (Deficit) (KW) Energy Requirements (MWh) Klukwan Chilkat Valley Total Energy Resources (MWh) Existing Hydro Diesel Regional Hydro Other Additions Total Energy Resources Maximum Diesel Generation R.W. Beck 2008 290 490 780 0 1,955 0 1,955 1,175 800 375 1,090 1,090 2,560 3,650 0 1,090 0 0 1,090 11,990 2009 290 500 790 0 1,955 0 1,955 1,165 800 365 1,100 1,100 2,630 3,730 0 1,100 0 0 1,100 11,990 2010 300 510 810 0 1,955 0) 1,955 1,145 800 345 1,110 1,110 2,690 3,800 0 1,110 0 0 1,110 11,990 2011 300 530 830 0 1,955 0 1,955 1,125 800 325 1,120 1,120 2,760 3,880 1) 1,120 0 0 1,120 11,990 Table 3-A (3) Upper Lynn Canal Regional Power Supply Review Loads and Resources 2012 300 540 840 0 1,955 0 15955) ds 800 315 1,130 1,130 2,840 3,970 0 1,130 0 0 1,130 11,990 2013 310 350) 860 0 1,955 0) 1,955 1,095 800 295 1,150 1,150 2,910 4,060 0 1,150 0 0 1,150 11,990 2014 310 570 880 0 1,955 0 1,955 1,075 800 275 1,160 1,160 2,990 4,150 0 1,160 0 0 1,160 11,990 2015 310 590 900 0 1,955 0 1,955 1,055 800 255 1,170 1,170 3,070 4,240 0 1,170 0 0 1,170 11,990 2016 310 610 920 oO 1,955 0 1,955 1,035 800 235 1,180 1,180 3,150 4,330 0 1,180 0 0 1,180 11,990 Page 2 of 2 2017 310 630 940 oO 1,955 0 1,955 1,015 800 215 1,190 1,190 3,230 4,420 0 1,190 0 0 1,190 11,990 Case 3 ( el) Table 3-A (4) Page 1 of 2 Medium Load Growth Upper Lynn Canal Regional Power Supply Review 11.2% Cost of Capital Regional Economic Analysis ($000) ——1997__1998_1999_2000__ 200120022003 200420052006 2007, Inflation Factor 1.000 1.030 1.061 1.093 1.126 1.159 1.194 1.230 1.267 1.305 1.344 Fuel Escalation 1.000 1.035 1.072 1.109 1.148 1.189 1.230 1.274 1.318 1.365 1.413 Fuel Cost - Skagway ($/gallon) 0.870 0.901 0.932 0.965 0.999 1.034 1.070 1.108 1.147 1.187 1229) Fuel Cost - Haines ($/gallon) 0.850 0.880 0.911 0.943 0.976 1.010 1.046 1.083 1.121 1.160 1.201 Fuel Cost - Klukwan ($/gallon) 0.850 0.880 0.911 0.943 0.976 1.010 1.046 1.083 Va 1.160 1.201 Diesel Costs Fuel $ 1,282 $ 1,363 $ 1,453 $ 1,542 $ 1,629 $ 1,724 $ 1,827 $ 1,920 $ 2,021 $ 2,129 $ 2,242 Variable O&M 323 342 363 383 404 426 449 470 492 515 539 Fixed O&M (New Units) 0 0 0 0 0 0 0 0 0 0 0 Capital Cost (New Units) (0) 0 3} 0 0 0 e} 0 0 0 0 Total Diesel Costs $ 1,605 $ 1,705 $ 1,816 $ 1,925 $ 2,033 $ 2,150 $ 2,276 $ 2,390 $ 2,513 $ 2,644 $ 2,781 Existing System Hydro O&M $ 27 $ 28 $ 29 $ 30 $ 30 §$ 31 $ 32 $ 33 $ 34 $ 35 $ 36 Existing System Hydro Depr. 19 19 19 19 19 19 19 19 19 19 19) New Hydro Costs O&M $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Capital Costs 0 0 0 0 0 0 0 0 0 0 0 Total New Hydro Costs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Transmission Line Costs O&M $ OFS 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ O $ oO $ 0 Purchased Power 0 0 0 0 0 0 0 0 0 0 0 Capital Recovery 0 0 0 0 0 0 0 0 0 0 0 Total T-Line Costs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Total Regional Power Cost $ 1,651 $ 1,752 $ 1,864 $ 1,974 $ 2,082 $ 2,200 $ 2,327 $ 2,442 $ 2,566 $ 2,698 $ 2,836 Regional Energy Reqs. (MWh) 25,950 26,560 27,220 27,830 28,340 28,910 29,530 29,940 30,390 30,870 31,350 Regional Cost of Power (¢/kWh) 6.4 6.6 6.8 Tan 7:3 7.6 7.9 8.2 8.4 8.7 9.0 Cumulative Net Present Value to Jan. 1997 20 Years (1997 through 2016) $20,514 30 Years (2017 - 2046) with no additional growth 4,576 Total Cumulative Net Present Value $25,089 R.W. Beck 3/27/97 Case 3 (Diesel) Medium Load Growth 11.2% Cost of Capital Inflation Factor Fuel Escalation Fuel Cost - Skagway ($/gallon) Fuel Cost - Haines ($/gallon) Fuel Cost - Klukwan ($/gallon) Diesel Costs Fuel Variable O&M Fixed O&M (New Units) Capital Cost (New Units) Total Diesel Costs Existing System Hydro O&M Existing System Hydro Depr. New Hydro Costs O&M Capital Costs Total New Hydro Costs Transmission Line Costs O&M Purchased Power Capital Recovery Total T-Line Costs Total Regional Power Cost Regional Energy Reqs. (MWh) Regional Cost of Power (¢/kWh) R.W. Beck Table 3-A (4) Page 2 of 2 Upper Lynn Canal Regional Power Supply Review Economic Analysis ($000) 200820092010 20112012, 2013, 2014 ~— 20152016 ~———2017 1.384 1.426 «1.469 1.513. 1.558 1.605. -1.653. 1.702, 1.754 1.806 1.462 1.514 1.567 1.622 1.679 1.738 1.799) 1.862 1.928 1.996 1.272, 1.317 1,363) 1.411 1.461 1.512, 1.565 1.620. 1.677. ‘1.736 1.243) 1.287, 1,332, 1.379 1.427, 1.477, 1.529 -1.583 1.639 —-1.696 1.243 1.287, 1.332, 1.379 1.427, 1.477, 1.529 1.583 1.639 ‘1.696 $ 2,357 $ 2,480 $ 2,610 $ 2,748 $ 2,896 $ 3,055 $ 3,223 $ 3,401 $ 3,588 $ 3,787 564 590 617 646 677 710 744 780 817 857 0 0 0 0 0 0 0 0) 0 0 0 0 0 0) 0) 0 0 0) 0 0 $ 2,921 $ 3,070 $ 3,227 $ 3,394 $ 3,573 $ 3,765 $ 3,967 $ 4,181 $ 4,405 $ 4,644 $ 37 $ 38 $ 40 $ 41 $ 42 $ 43 $ 45 $ 46 $ 47 $ 49 19 19 19 19 19 19 19 19 19 19 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 0 ) 0 0 0 ) 0 0 ) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ Oo $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 0 0 0 0 0 0 0 0 0 0) 0 0) 0 ) 0 0 ) 0) 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 2,977 $ 3,127 $ 3,286 $ 3,454 $ 3,634 $ 3,827 $ 4,031 $ 4,246 $ 4,471 $ 4,712 31,800 32,280 = 32,770 = 33,290 33,850 34,430 35,040 35,660 36,290 36,940 9.4 9.7 10.0 10.4 10.7 | 11.5 11.9 12.3 12.8 4/97/07 Case 3 (Diesel) Table 3-A (4S) Page 1 of 2 Medium Load Growth Upper Lynn Canal Regional Power Supply Review 11.2% Cost of Capital Skagway Economic Analysis ($000) 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Inflation Factor 1.000 1.030 1.061 1.093 1.126 VSS 1.194 1.230 1.267 7,305 1.344 Fuel Escalation 1.000 1.035 1.072 1.109 1.148 1.189 1.230 1.274 1.318 1.365 1.413 Fuel Cost - Skagway ($/gallon) 0.870 0.901 0.932 0.965 0.999 1.034 1.070 1.108 1.147 1.187 1.229 Fuel Cost - Haines ($/gallon) 0.850 0.880 0.911 0.943 0.976 1.010 1.046 1.083 1.121 1.160 1.201 Fuel Cost - Klukwan ($/gallon) 0.850 0.880 0.911 0.943 0.976 1.010 1.046 1.083 20 1.160 1.201 Diesel Costs Fuel $ 462 $ 492 $ 525 $ 560 $ 596 $ 635 $ 677 $ 711 $ 747 $ 784 $ 823 Variable O&M 161 171 181 192 204 216 229 239 250 261 273 Fixed O&M (New Units) 0 0 0 0 0 0 0 0 0 0 0 Capital Cost (New Units) 0 0 0 0 0 0 0 0 0 0 0 Total Diesel Costs $ 623 $ 663 $ 706 $ 752 $ 800 $ 851 $ 906 $ 950 $ 997 $ 1,045 $ 1,096 Existing System Hydro O&M $ 27 $ 28 $ 29 $ 30 $ 30 $ at § 32 $ 33 $ 34 $ 35! ES 36 Existing System Hydro Depr. 19 19 19 19 19 19 19 19 19 19 19 New Hydro Costs O&M $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Capital Costs 0 0 0 0 0 0 0 0 0 0 0 Total New Hydro Costs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Transmission Line Costs O&M $ 0 $ 0 $ 0 $ 0 $ Oo $ 0 $ O $ 0 $ 0 $ 0 $ 0 Purchased Power 0 0 0 0 0 0 0 0 0 0 0 Capital Recovery 0 0 0 0 0 0 0 0 0 0 0 Total T-Line Costs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Total Skagway Power Cost $ 669 $ 710 $ 754 $ 801 $ 849 $ 901 $ 957 $ 1,002 $ 1,050 $ 1,099 $ 1,151 Skagway Energy Reqs. (MWh) 10,370 10,590 10,820 11,050 11,290 11,530 11,780 11,910 12,040 12,170 12,300 Skagway Cost of Power (¢/kWh) 6.5 6.7 7.0 Tee 7.5 7.8 8.1 8.4 8.7 9.0 9.4 Diesel Cost of Generation (¢/kWh) 8.5 8.7 9.0 9.3 9.7 10.0 10.3 10.7 11.0 11.4 11.8 Cumulative Net Present Value to Jan. 1997 20 Years (1997 through 2016) $ 8,291 30 Years (2017 - 2046) with no additional growth 1,774 Total Cumulative Net Present Value $10,065 R.W. Beck Case 3 (Diesel) Table 3-A (4S) Medium Load Growth Upper Lynn Canal Regional Power Supply Review 11.2% Cost of Capital Skagway Economic Analysis ($000) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Inflation Factor 1.384 1.426 1.469 1.513, 1.558 1.605 1.653 1.702 1.754 1.806 Fuel Escalation 1.462 1.514 1.567 1.622 1.679 1.738 1.799 1.862 1.928 1.996 Fuel Cost - Skagway ($/gallon) 1.272 1.317 1.363 1.411 1.461 T5112 1.565 1.620 1.677 1.736 Fuel Cost - Haines ($/gallon) 1.243 1.287 ite332} 1-379) 1.427 1.477 1,529 1.583 1.639 1.696 Fuel Cost - Klukwan ($/gallon) 1.243 1.287 1.332 1.379) 1.427 1.477 13529) 1.583 1.639 1.696 Diesel Costs Fuel $ 864 $ 907 $ 952 $ 1,000 $ 1,050 $ 1,102 $ 1,157 $ 1,214 $ 1,273 $ 1,337 Variable O&M 285 298 31M 325 340 855 370 387 404 422 Fixed O&M (New Units) 0 0 0 0 0 0 0 0 0 0 Capital Cost (New Units) 0 0 0 0 0 0 0 0 0 0 Total Diesel Costs $ 1,149 $ 1,205 $ 1,263 $ 1,325 $ 1,390 $ 1,457 $ 1,527 $ 1,601 $ 1,677 $ 1,759 Existing System Hydro O&M $ 37 $ 38 $ 40 $ 41 $ 42 $ 43 $ 45 $ 46 §$ 47 $ 49 Existing System Hydro Depr. 19 19 19 19 19 19 19 19 19 19 New Hydro Costs O&M $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Capital Costs 0 0 0 0 0 0 0 0 0 0 Total New Hydro Costs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Transmission Line Costs O&M $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Purchased Power 0 0 0 0 0 0 0 0 0 0 Capital Recovery 0 0 0 0 0 0 0 0 0 0 Total T-Line Costs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Total Skagway Power Cost $ 1,205 $ 1,262 $ 1,322 $ 1,385 $ 1,451 $ 1,519 $ 1,591 $ 1,666 $ 1,743 $ 1,827 Skagway Energy Reqs. (MWh) 12,430 12,560 12,700 12,840 12,980 13,120 13,260 13,400 13,540 13,690 Skagway Cost of Power (¢/kWh) ON7 10.1 10.4 10.8 G2 11.6 12.0 12.4 12.9 13.3 Diesel Cost of Generation (¢/kWh) 02.2) 12.6 13.0 13:5 13.9 14.4 14.9 15.4 15:9 16.5 R.W. Beck Page 2 of 2 3/27/97 Table 3-A (4H) Page 1 of 2 Medium Load Growth Upper Lynn Canal Regional Power Supply Review 11.2% Cost of Capital Haines Economic Analysis ~ ($000) 1997: 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Inflation Factor 1.000 1.030 1.061 1.093 1.126 T3159 1.194 1.230 1.267 1.305 1.344 Fuel Escalation 1.000 1.035 1.072 1.109 1.148 1.189 1.230 1.274 1.318 13365 1.413 Fuel Cost - Skagway ($/gallon) 0.870 0.901 0.932 0.965 0.999 1.034 1.070 1.108 1.147 1.187 1.229 Fuel Cost - Haines ($/gallon) 0.850 0.880 0.911 0.943 0.976 1.010 1.046 1.083 20 1.160 1.201 Fuel Cost - Klukwan ($/gallon) 0.850 0.880 0.911 0.943 0.976 1.010 1.046 1.083 Ta 1.160 1.201 Diesel Costs Fuel $ 754 $ 802 $ 855 $ 907 $ 953 $ 1,006 $ 1,064 $ 1,119 $ 1,180 $ 1,247 $ 1,316 Variable O&M 142 151 160 169 176 185 195 204 214 225 236 Fixed O&M (New Units) 0 0 0 0 0) 0 0 0 ) 0 0 Capital Cost (New Units) oO: 0 0 0 0 0 0 0 0 0 0 Total Diesel Costs $ 896 $ 953 $ 1,015 $ 1,076 $ 1,129 $ 1,191 $ 1,259 $ 1,323 $ 1,394 $ 1,472 $ 1,552 New Hydro Costs O&M $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Capital Costs . 0 0 0 0 0 0 0 0 0 0 0 Total New Hydro Costs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Transmission Line Costs O&M $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ oO $ 0 $ 0 $ 0 Purchased Power 0 0 0 0 0 (0) 0 0 0 0 0 Capital Recovery 0 0 0 0 0 0 0 0 0 0 0 Total T-Line Costs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Total Haines Power Cost $ 896 $ 953 $ 1,015 $ 1,076 $ 1,129 $ 1,191 $ 1,259 $ 1,323 $ 1,394 $ 1,472 $ 1,552 Haines Energy Reqs. (MWh) 12,710 13,030 13,400 13,700 13,900 14,150 14,430 14,650 14,900 15,190 15,470 Haines Cost of Power (¢/kWh) 7.0 7.3 7.6 7.9 8.1 8.4 8.7 9.0 9.4 9.7 10.0 Cumulative Net Present Value to Jan. 1997 20 Years (1997 through 2016) $11,240 30 Years (2017 - 2046) with no additional growth 2,605 Total Cumulative Net Present Value $13,845 R.W. Beck 3/27/97 Case 3 (Diesel) Medium Load Growth 11.2% Cost of Capital Inflation Factor Fuel Escalation Fuel Cost - Skagway ($/gallon) Fuel Cost - Haines ($/gallon) Fuel Cost - Klukwan ($/gallon) Diesel Costs Fuel Variable O&M Fixed O&M (New Units) Capital Cost (New Units) Total Diesel Costs New Hydro Costs O&M Capital Costs Total New Hydro Costs Transmission Line Costs O&M Purchased Power Capital Recovery Total T-Line Costs Total Haines Power Cost Haines Energy Reqs. (MWh) Haines Cost of Power (¢/kWh) R.W. Beck Page 2 of 2 Table 3-A (4H) Upper Lynn Canal Regional Power Supply Review Haines Economic Analysis ($000) 2008 200920102011 2012-2013, 2014 20152016 2017 1.384 1,426 «1.469. -1.513. «1.558 1.605. 1.653. 1.702 1.754 1.806 1.462 1.514 1.567, 1.622. 1.679 1.738 = 1.799 1.862 1.928 1.996 1.272 1.317) 1.363) 1.411 1.461 1.512, 1.565 1.620. 1.677. ‘1.736 1.243, 1,287, 1.332. -1.379 1.427, 1.477, 1.529 1.583 1.639 1.696 1.243 1.287, 1.332, «14379 1.427, 1.477, 1.529. 1.583 1.639 1.696 $ 1,386 $ 1,461 $ 1,540 $ 1,626 $ 1,719 $ 1,818 $ 1,926 $ 2,040 $ 2,162 $ 2,291 248 260 273 286 301 317 334 352 371 391 0) 0) 0) 0 0 0 0 0 0 0 ) ) 0 0 0 0) 0 0 ) 0) $ 1,634 $ 1,721 $ 1,813 $ 1,912 $ 2,020 $ 2,135 $ 2,260 $ 2,392 $ 2,533 $ 2,682 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0) 0) 0 0 0) 0 0 0) 0) 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0o$ O$ O$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 0 0 0 ty) 0 0) 0) 0 0 0) 0 ) 0 0) 0 ) 0 0 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 1,634 $ 1,721 $ 1,813 $ 1,912 $ 2,020 $ 2,135 $ 2,260 $ 2,392 $ 2,533 $ 2,682 15,720 15,990 16,270 16,570 16,900 17,250 17,630 18,020 18,420 18,830 10.4 10.8 1.1 11.5 12.0 12.4 12.8 13.3 13.8 14.2 990s 169 4685 DIY ENERGY LI/UQ/97 Lbs tO P.001/003 A Fax From The Department of Community & Regional Affairs Division of Energy Mailing Address: Physical Address: 333 W. 4th Avenue, Suite 220 333 W. 4th Avenue, Suite 220 Anchorage, AK 99501-2341 Anchorage, AK 99501-2341 Main Telephone Number (907) 269-4500 Fax Number for Engineering: (907) 269-4685 Deliver Fax to: Fesey Kee Ks hype Company Name: USP Cc [MN ee! Company Address: Fax Phone #: Cog- S26- GEY4F Sender: Cc VI Sender's Phone # VO7-267- VG 3 - # of Pages Sent: Ss (Including this cover sheet) Date Fax Sent: uf [2 [az If you don't receive all of this fax, please call sender immediately!!! SPECIAL INSTRUCTIONS TO FAX RECIPIENT: Here ave copres of Diisteur capt veg ves submit +o the Governor's ofKce . Note Huet they ane not othe My apprved by +e G Wet VW yet : thanks fe py of the Reynalls Creek : = ama. We weld ty. pf cafiuve Wel Urn yee on firs. Pt 169 4685 DIY ENERGY VI/12/97 Ld: 10 P.002/003 Capital Budget Request Power Creek hydroelectric project — $5.0 million Approximately 90% of the electric power sold by Cordova Electric Cooperative is produced by diesel generators. Retail rates exceed 20 cents per kWh on average, roughly twice the level of rates in the Railbelt. The State pays about $700,000 per year through the Power Cost Equalization program to reduce this rate burden for eligible power consumers in Cordova. Several years ago Cordova Electric Cooperative widely solicited proposals for reducing the cost of power. The best offer in the utility’s judgment was submitted by Whitewater Engineering Co. which proposed to develop a hydroelectric project on Power Creek. An agreement was executed under which the developer would license, design, and build the project for $15 million, and upon completion of the project transfer ownership to Cordova Electric. Licensing and design efforts are well underway — a FERC license is anticipated by the end of 1997 and project construction could begin in spring 1998. Of the 20 million kWh presently supplied by the utility's diesel generators, Power Creek would displace 14 million. The expected reduction in the cost of power will depend on the structure of project financing. Thus far, $5 million has been obtained: a $1 million zero interest loan from the Division of Energy which has been drawn down to finance licensing and design, and $4 million in federal grant funds. This capital budget request seeks to add $5 million in State grant funds, which would bring the total amount obtained to $10 million. Cordova Electric Cooperative has committed to the Division that, in exchange for a $5 million grant to help finance Power Creek, it will forego any further PCE subsidies upon completion of the project. Assuming the State would otherwise continue to pay $700,000 per year to Cordova for PCE, the simple payback to the State would be about 7 years. The Division estimates that Power Creek would reduce average rates by about $.03 per kWh if the final $5 million in project financing were obtained in the form of a loan at 5% interest from the federal Rural Utilities Service. A savings of $.03 per kWh would lower the cost of power to the average residential customer in Cordova by about $180 per year. » 2 A EVERGT LU/12/97 Vhs 10 P.003/003 cx Capital Budget Request Reynolds Creek hydroelectric project — $2.0 million A hydroelectric project at Reynolds Creek, located about 10 miles east of Hydaburg on Prince of Wales island, has been considered for many years. Studies funded by the State include a 1991 report by HDR Engineering, Inc. entitled “Hydaburg Hydro Investigation” and a 1981 report by Harza Engineering Co. that considered Reynolds Creek as a possible alternative to the Black Bear Lake hydro project. Haida Corporation, the village corporation for Hydaburg, proposes to develop and own the Reynolds Creek project and plans to submit a FERC license application in November 1997. As presently defined, Reynolds Creek would be developed in two phases: upon completion of the first phase, the project would have 1.5 MW of capacity and 11,500 MWh per year of average annual energy. An optional second phase would bring the total project capacity to 5.0 MW. The estimated cost to complete the 1.5' MW first phase is $7.4 million. Federal grants totalling $3.0 million have been approved for the project. If this request for a $2.0 million State grant is also approved, the amount left to finance will be $2.4 million. If, for example, the average cost of capital for this remaining portion is 8%, the capital cost to be recovered from project revenues would be about $200,000 per year. Reynolds Creek is an economic development project that can make an important difference in the feasibiltty of mining and timber projects throughout the island. The key elements are favorable project financing and the continued extension of electrical transmission facilities to connect power consumers with sources of power supply. After providing Hydaburg with all of its power requirements, Reynolds Creek / Phase 1 would still have about 1.0 MW of capacity and 10,000 MWh per year of energy available for transmission to emerging industrial loads. A Prince of Wales Island Regional Energy Plan is now being prepared by HDR Engineering on behalf of Haida Corporation, Sealaska Corporation, and Alaska Power & Telephone Co., who are jointly funding the analysis. Sealaska Corporation is investing in new mine developments on the island and is evaluating additional mining prospects. Alaska Power & Telephone Co., which owns the recently completed Black Bear Lake hydro project, is the electric utility serving Hydaburg and is actively pursuing the extension of transmission lines throughout the area. Haida Corporation is working with these organizations to ensure that Reynolds Creek is developed in coordination with industrial loads that will need the power and transmission lines that will carry it.