Loading...
HomeMy WebLinkAboutMiddle Kuskokwim Regional Energy Project 2003Middle Kuskokwim Regional Energy Project Arctic Ocean arctic circle Zene,, Fairbanks Pacific Ocean Prepared by: Alaska Energy Authority / Rural Energy Group 813 West Northern Lights Boulevard Anchorage, Alaska 99503 Phone: (907) 269-3000 Fax: (907) 269-3044 November 2003 MIDDLE KUSKOKWIM REGIONAL ENERGY PROJECT PROJECT SUMMARY The Middle Kuskokwim Regional Energy Project (MKREP) involves construction of 25 facilities including powerhouses, bulk fuel storage, power transmission lines and heat recovery systems in the small, economically distressed, rural villages of the Middle Kuskokwim region of Alaska (see Table 1). This project is an opportunity to realize significant cost savings due to economies of scale and to reduce the overall energy cost in the region. By combining a group of small village projects into a regional project, the Denali Commission, and its partner agency the Alaska Energy Authority (AEA), an entity of the State of Alaska, stand to take advantage of significant cost savings through combined repetitive design and construction methods, transportation and logistics, and equipment use. Table 1- Distribution of Facilities Ba 4 A A & 3 e x ¢ 4 a § > § 2 = s 3 g ~ ) g a 3 FS ci = a 2 S co 3 ° § 0 Oo 4 n N BR = H School Tank Farm(s) 2 1 1 1 1 1 1 8 Powerhouses 1 1 1 1 1 5 Powerhouse Tanks 1 1 1 1 1 5 Village Tank Farms 1 1 1 1 4 Omer) UNO Oe 3 Total 2 4 4 2 3 4 5 1 25 These efficiencies will translate into a shorter, more efficient construction process (over one season) and will reduce construction and project administrative costs. Traditionally, small villages have great difficulty economically justifying upgrade projects because of their small size and lack of local resources. This regional project provides these small, disadvantaged communities with the best hope of addressing health and safety concerns with respect to their powerhouses, distribution and fuel storage systems. And finally, this project will ensure the long term sustainability of the capital assets by providing the participating villages with new, lower maintenance, high energy efficient systems. This will reduce overall energy and operations and maintenance costs and promote regional economic stability and growth potential through reliable power. Page 1 of 9 NOTES: TOPOGRAPHY MAPPING FROM ALL TOPOMAPS: ALASKA iGAGE CD-ROM. AERIAL PHOTOGRAPHY BY AEROMAP U.S. AND PROVIDED BY THE STATE OF ALASKA DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT. Z cc 2 PROPOSED» SCHOOL. at Jeet e7e Takotna PROPOSED POWERHOUSE ANO= FUEL: STORAGE (907) 277-2120 www.hdalaska.com ea oe AND FUEL STORAGE APPROXIMATE DISTANCE BETWEEEN MAPS IS 63 MILES HATTENBURG DILLEY & LINNELL Engineering Consultants + ENGINEERING + EARTH SCIENCE + PROJECT MANAGEMENT + PLANNING 19:22 by kk 1, 11/07/03 at 1_H_X7700 103, MIDDLE KUSKOKWIM RIVER REGION, ALASKA MIDDLE KUSKOKWIM ENERGY PROJECT ~00_B001 POWERHOUSE a) aye dle H:\jobs\03-028 Middle Kuskokwim Energy Project\cod\ drawings\03028_00_G103, 1 XREF: 03026_ LAYOUT: 61.03 VIEW: G10_F_00800, G10_H_L5000, G10_H_x7700, G103_H_L5000, MIDDLE KUSKOKWIM REGIONAL ENERGY PROJECT Villages -- The MKREP includes seven villages along 250 miles of the Kuskokwim River including Aniak, Chuathbaluk, Crooked Creek, Red Devil, Sleetmute, Stony River and Takotna. These villages rely mainly on river transportation due to the absence of roads within and to the region and the high cost of air transportation, which is beyond the economic reach of nearly all residents. In the winter, which lasts up to 6 months, snow machine travel between communities is the sole means of ground transportation and annually fuel, supplies, and the majority of food are delivered by river barge. Existing Facilities -- The regions’ powerhouses and bulk fuel systems are in very poor condition (see Photos, Appendix A) and power is unreliable with frequent blackouts. The powerhouses are inefficient, have numerous code deficiencies and experience high operating and maintenance costs; while the fuel systems are not code compliant and experience leaks in tanks, piping, and fittings. Additionally, the tank foundations are not structurally sound and the entire region is prone to flooding, which poses a threat to communities and the environment. In the event of flooding or other natural disaster, catastrophic failure will occur. Facility owners have been threatened with, or have previously received, significant fines from the Coast Guard due to code violations, thereby increasing the owners’ costs of operations and threatening the residents’ fuel supply. Because State and Federal Governments are ultimately responsible for responding to incidents that threaten residents’ life, health and safety, including restoring power due to failures and responding to oil spills, the existing power systems and fuel facilities are significant liabilities due to the financial inability of local communities to effect significant equipment upgrades or to clean up major fuel spills. Page 3 of 9 MIDDLE KUSKOKWIM REGIONAL ENERGY PROJECT Flooding -- All seven villages are located on the edge of or within the flood plains of the Kuskokwim and Takotna Rivers and portions of the villages are subject to flooding and ice damage from ice jams during spring breakup. Most of villages’ energy facilities are not constructed above the 100-year flood elevation and spring flooding has displaced tanks and piping and frequently damaged powerhouse equipment, which resulted in power outages and environmental damage. The new powerhouses and fuel facilities will be relocated and placed on steel pilings to raise them above the 100-year flood level. Life, Health, and Safety -- Upgrading community energy facilities will have a significant positive impact on the health and safety of the region’s residents. Four of the school tank farms are located close to playgrounds and are unsecured by fencing. Tampering and vandalism can cause significant environmental damage and elevated health risks from fuel contamination. In six villages, water is obtained from wells that could be contaminated in the event of a significant fuel spill. New code-compliant fuel storage tanks will be located in more secure locations and will be provided with modern safety devices to reduce hazardous exposures to residents, (particularly children), and the environment. The new energy facilities will be constructed to recognized safety standards, including the Rural Utility Service (USDA/RUS), National Electrical Code (NEC/NESO), International Building Code, and the International Fire Code. In winter, many villagers transport heating fuel in drums on the river using snow machines and sleds. In Alaska, lives are lost each year in rural communities from villagers falling through thin ice. With the recent warmer winters, the exposure to thin ice in the fall and spring has increased significantly. The environmental hazards of a fuel spill on the river ice are also a major concern. For example, the Stony River bulk fuel retail sales system has been out of service for many years and Stony River residents travel down river on the ice to Sleetmute to buy heating fuel because there is no safe and reliable fuel storage available in their village. Energy Cost Reduction -- New powerhouses will improve energy efficiency. The newer generator engines reduce fuel consumption, noise, emissions, and operations and maintenance costs. Remote monitoring and control will provide "cleaner" more reliable Page 4 of 9 MIDDLE KUSKOKWIM REGIONAL ENERGY PROJECT electricity at a lower cost. Heat recovery systems to community buildings will reduce the villages’ overall fuel expenses. A small portion of the recovered heat will be used to heat storage tanks for No. 2 diesel fuel and reduce the amount of the more expensive Arctic Grade No.1 diesel fuel currently used for power production. No. 2 diesel is less refined and therefore less expensive. It also has a higher energy content than No. 1 diesel and can produce more electrical energy per gallon of fuel. Energy facility operating costs will also be lowered by co-locating powerhouses and fuel storage and by consolidating power systems with a distribution tie-line. Population Growth -- The Middle Kuskokwim region is comprised of small villages, most having a population of around 100. The exception is the village of Aniak, which is a regional transportation hub and has a population of approximately 500. Over the last 20 years the population in the smaller villages have been stable, while increasing in the larger villages of Crooked Creek, Chuathbaluk, and Aniak. Aniak has experienced significant growth in the last 20 years because of its position as the regional transportation hub (river barge and air freight). Overall population in the region has grown approximately 30% since 1980. Participants -- The local participating entities include: Kuspuk School District, Middle Kuskokwim Electric Cooperative, City of Chuathbaluk, Thomas Trading Post (native owned), Stony River Traditional Council, Iditarod Area School District, and the Takotna Community Association. The participants have been actively cooperating with AEA in the planning of this project and support the AEA's efforts in developing this regional project for implementation in the 2004 construction season. Sustainability -- Denali Commission approved economic business plans are currently under development and will be in place for the following participants: Middle Kuskokwim Electric Cooperative, City of Chuathbaluk, Thomas Trading Post, and the Takotna Community Association. As part of the business plans, each participant is obligated to perform necessary operations and maintenance activities and to establish a long term set-aside fund for the purpose of recapitalizing the facilities, as needed, over time. MKEC, the primary power cooperative within the region, will require system-wide upgrades and replacements to eliminate its existing high liability facilities and maximize the cooperative’s long-term Page 5 of 9 MIDDLE KUSKOKWIM REGIONAL ENERGY PROJECT economic sustainability. By addressing all of the power generation and distribution needs at one time this project will enable MKEC to significantly reduce their current operating and maintenance costs, produce power more efficiently and ultimately to reduce power costs to regional residents. PROJECT APPROACH Design-Build -- This project utilizes a “design-build” approach with one firm performing both the engineering and construction management functions. We estimate there will be substantial savings by executing the work as follows: 1. Perform the work as a “design-build” project, Combine the 25 smaller projects into one construction program, Construct all the projects in the 2004 construction season, and ea Use consolidated, standardized procurement packages. Performing the project as a “design-build” will allow the engineering and construction team leaders to coordinate the efficient design of building systems, foundation systems, tanks, piping and controls. As an example, one of the areas for major savings will be to establish one suitable foundation type for all power plants and tanks. By involving the construction management directly in the design process, we will be able improve constructability, which improves productivity during construction and lowers costs. Logistics -- Multi-project support and freight activities will optimize transportation efficiency, as compared to using separate transport to each village using commercial barge and air carriers. The careful coordination of transportation using one leased tug and barge will significantly reduce the travel expenses for mobilization and demobilization of personnel and equipment. By combining logistical efforts it is estimated that the project will realize a cost savings of approximately $500,000 per village as compared to traditional village-by - village project construction methods. Therefore, this savings, combined with the efficiencies gained using the “design-build” approach, will result in approximately a 30% reduction in the overall project cost. Page 6 of 9 MIDDLE KUSKOKWIM REGIONAL ENERGY PROJECT PROJECT SCOPE Powerhouses to replace the existing MKEC and TCA facilities will be of the standard metal frame/metal deck AEA prototype used throughout the State. Foundations will use steel piling or post-and-pad steel foundations depending on flooding conditions, soil type and local permafrost conditions. The standardized foundation will be site adapted to the prototype powerhouse to elevate the floors above the 100-year flood elevation. The total energy capacity proposed in this project will meet the projected 10-year needs based on annual fuel barge arrivals and nominal growth rates. The total fuel capacity for MKREP is currently estimated at approximately 500,000 gallons. The total proposed powerhouse generation capacity for the five MKEC villages and Takotna is estimated to be approximately 1 megawatt. Planned Improvements -- The improvements include five new power plants, new fuel tanks and piping, and an 8-mile power transmission line with a river crossing, and power distribution upgrades in three villages (see Table 1). Waste heat will be recovered by three of the new power plants to reduce heating costs to public facilities in three villages. The following summarizes the tanks and power-generating equipment proposed for each community: Page 7 of 9 MIDDLE KUSKOKWIM REGIONAL ENERGY PROJECT Alniak. New fuel systems for the elementary and high schools, including 66,000 gallons of heating fuel and gasoline storage. Chuathbaluk. Replace the MKEC powerhouse and provide fuel storage for power generation. Installed generator capacity will be 200 kW. New fuel storage and delivery piping to the school. New fuel tanks and sales system for the City of Chuathbaluk including 30,000 gallons of fuel storage. The MKEC and the City will share a site dedicated to this industrial use. Crooked Creek. Replace the MKEC powerhouse and provide fuel storage for power generation. Installed generator capacity will be 200 kW. The new MKEC power plant will provide recovered heat to the Village’s washeteria and clinic. New fuel storage and delivery piping to the school. New fuel tanks and sales system for Thomas Trading Post including 52,000 gallons of fuel storage. Red Devil. Power will be provided to Red Devil via a new 8-mile power transmission line from the village of Sleetmute and distribution system upgrades within the village. New fuel storage tanks and delivery piping to the school. S/eetmute. Replace the MKEC powerhouse and provide fuel storage. New power transmission line to cross the river to serve all residents of Sleetmute and connect to the new distribution line to Red Devil. Installed generator capacity will be 295 kW. New fuel tanks and delivery piping to the school. Stony River. Replace MKEC powerhouse and provide fuel storage for power generation. Installed generator capacity will be 150 kW. The new power plant will provide recovered heat to the Village’s washeteria and clinic. New fuel tanks and delivery piping to the school. New fuel tanks and sales system for the Stony River Traditional Council including 12,000 gallons of fuel storage. Takotna. Replace TCA powerhouse and provide fuel storage for power generation. Installed generator capacity will be 210 kW. The new power plant will provide recovered heat to the school building. New fuel tanks and delivery piping to the school. New fuel storage for the Takotna Community Association. Page 8 of 9 MIDDLE KUSKOKWIM REGIONAL ENERGY PROJECT Schedule -- If construction funding is secured by January 15, 2004, this project can be substantially completed by October 31, 2004 with final completion planned for December 31, 2004. Delays in program funding will delay the project approximately one year. Procurement should begin by January 31, 2004 in order to allow time to procure, fabricate and ship materials. Because of the logistics, field construction should begin on or before June 1, 2004. A summary of anticipated milestones dates are: Design Complete....cssiesscsssesssesssessseessesesseessesssssssecssneesseesse January 15, 2004 Furnding Secured ...cecssescsssesssssessessssesssesssessseessesssesseessneesss January 15, 2004 Procurement Begins.....ssecssessecsnersneessecsneecsessseesneenneesss January 31, 2004 Shop Fabrication Begins ......csscsssesseeseeseeseesesseesseeseesseese February 15, 2004 Field Work Beginss.......cssecssecsessesseesseesseesseseesseeseeseesseeseesseeseesaees June 1, 2004 Substantial Completion ........cccscessesseesseesseesseeesseenseesseeess October 31, 2004 Final Completion.......c.ccccscessssecseesseesseseseessseessessseesseeess December 31, 2004 Project Cost Estimate -- The total project estimate is $13.5 million. ‘This includes, construction and AEA project administration and inspection. Design costs are not included as they are funded separately by AEA. The budget assumes that construction will occur in all seven villages in the same season to take advantage of share fixed costs, streamlined construction and economies of scale. Table 2 — Project Cost Estimate Description Estimated Cost Construction Management $ 504,045 Contractor Supplied Labor 1,925,100 Local Labor 512,325 Small Procurement (Materials under $5,000) 1,347,570 Materials over $5000 4,535,370 Subcontracts 2,937,330 Equipment Rental 1,102,275 Subtotal Construction $12,864,015 Contingency (5.0%) 643,200 Total Project Cost $ 13,507,216 Page 9 of 9 MIDDLE KUSKOKWIM REGIONAL ENERGY PROJECT APPENDIX A PHOTOS Aniak Photo 1 KSD bulk fuel tank. 1957 ex-military storage tank uses threaded fittings and is only 60% filled at any given time. Spill containment liner is compromised. Photo 2 KSD gasoline tanks and dispenser. Tanks are single-walled and lack any secondary containment. Photo 3 Exterior view of MKEC Powerhouse. Note the lack of foundation, poor structural integrity of the building, and inadequate security. Photo 4 Exterior view of MKEC Powerhouse. Note temporary wooden construction, inadequate ventilation system (fan), and lighting and overall substandard construction. Chuathbaluk Photo 5 Exterior view of MKEC powerhouse. Note unstable wood foundation, various building penetrations, and temporary ventilation system. Photo 6 MKEC fuel tanks. Note lack of secondary containment, lack of foundation, precarious distribution piping and compromised security features. Chuathbaluk Photo 7 KSD fuel tanks. Note the close proximity of the fuel tanks to the school’s play ground. Crooked Creek Photo 8 Interior view of MKEC powerhouse. Note generators resting on gravel floor and fluid (diesel?) ponding around base. Photo 9 MKEC fuel storage tanks. Note the wood foundations, lack of secondary containment and spray foam insulating the fuel lines. Crooked Creek Photo 10 Exterior view of MKEC powerhouse. The wood framed powerhouse is located along the banks of the Kuskokwim River and subject to annual flooding. Photo 11 Interior view of powerhouse. Note the dirt floor, lack of foundation and wooden construction. Building originally was a vehicle maintenance shop. Crooked Creek Photo 12 Exterior view of KSD fuel tanks. Tanks are located on a slope above the school. Retaining wall is failing to stop tanks from migrating down hill. Pea (are) .. Photo 13 Thomas Trading Post fuel tanks. The Post is the sole retailer of fuel in the village. Tanks are located along the banks of the Kuskokwim River and subject to annual flooding. Photo 14 Exterior view of MKEC powerhouse. Note wood cribbing foundation in an attempt to raise building above flood plain. It is still several feet short of goal. Photo 15 KSD fuel storage tanks. Note lack of adequate secondary containment, pumping system (wood box) and security fencing. Sleetmute Photo 16 Exterior view of MKEC powerhouse and fuel tanks. Note tilt of tanks implies compromised foundation, powerhouse is undersized and poorly vented. -hoto 17 Interior view of MKEC powerhouse. Note lack of space for maintenance or expansion. Generators are inefficient air cooled units. Stony River Photo 18 Exterior view of MKEC Powerhouse. Note the lack of foundation, and poor structural integrity of the building. The floor is below the 100 year flood level. Photo 19 MKEC Powerhouse fuel tanks. Note the wood foundation system. Again the site is below the 100 year flood level. Photo 20 Interior of the MKEC Powerhouse. The generator room is undersized and has no room for expansion or maintenance. Photo 21 Stony River Traditional Council Tank Farm. The facility is below the 100 year flood level, lacks an impermeable liner and is generally in very poor condition. Photo 22 Interior view of TCA powerhouse. Generators are inefficient air cooled. Distribution system is low voltage (480 volts, single phase) and non-code compliant. Exterior view of the TCA powerhouse. Note the wooden building and slab on grade construction. Photo 24 Existing TCA fuel tanks. Tanks are non-code compliant and provide insufficient capacity for the village. Spill containment liner is compromised. Photo 25 TCA tank and dispenser. Dispenser is used for all village equipment and needs. Obviously a deficient system.