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A Community Profile Kake, AK 1973
ir rr : z “Ra Te . JULY 1973 KAKE LOCATION Kake is located on Kupreanof Island in the heart of Southeastern Alaska. By air, Kake is 1 hour from Juneau, 1 hour 45 minutes from Anchorage and Seattle. POPULATION Immediate Area 707 Within City Limits 551 TRANSPORTATION Rail: None Truck: None Air: Regular flights daily by Island Air in Peters- burg and Eagle Air in Sitka. Additional charter flights from Petersburg, Sitka and Juneau. Water: A Marine Ferry dock will be constructed in late 1973, providing modern water transpor- tation facilities to connect Kake to other South- eastern communities and the Pacific Northwest. Dock located in the middle of town provides a ramp and airplane float. ji Bus: Privately owned and operated school bus. CLIMATE* Average Temperature Period Min. Mean Max. January 22.4 27.6 32.9 July 47.9 55.8 63.6 Annual 35.3 42.1 48.8 Average Annual Precipitation.............. 106.3 inches *Complete weather records are not available for the immediate Kake area. Above figures are of nearby ‘Petersburg; however, Forest Service Weather data indicates slightly higher temperatures and less precipitation than Petersburg. INDUSTRY Kake’s economy is based primarily on the fish- ing and wood products industry. Estimated Employment Agriculture 0 Construction 68 Finance 0 Government * 12-15 Mining 0 Manu facturing/Processing 117 Service 3-5 Trade 20 Transportation, Comm. 10-12 Other 20-25 Total : 262 LABOR The labor force is comprised of the residents of the’ City of Kake and nearby logging camp. Skilled workers are available on a year-round basis. COMMUNITY FACILITIES Medical/Dental: PHS maintains clinic with a registered PHS Nurse. Doctor and dentist visits. Patients needing hospitalization are transported to Mt. Edgecumbe Hospital in Sitka. Number of Number of Number of Education: Classrooms Pupils Teachers Elementary 6 120 6 Jr. High 7* 26 = Sr. High 7* 34 9* Adult Ed. N/A 20 2 *Jr. and Sr. High School combine use of rooms and teachers. | Communications: Newspapers and radio stations from nearby communities. Town bulletin board and school newspaper for local information. Recreation: A movie theater and a rich seafood resource provides abundant clam digging, fishing for salmon during the summer and for halibut all year, General: Four church denominations repre- sented and public library located in new high school, HOUSING 1 bedroom apartment rental...........$150-up/month 2 bedroom apartment rental...........$200-up/month Available housing for sale Sidinn rent is limited. INDUSTRIAL SITES AVAILABLE Inside City Limits: Acreage Available: 6 acres in Industrial Park Size Lots Available: Depends on requirements of potential user. . Outside City Limits: None INDUSTRIAL UTILITIES AVAILABLE Water/Sewer: Water Supplier: City of Kake Source: City dam Size of Water Mains: 6-12 inches Maxjgyum Capacity for Industrial Use: 800 gallons/minute Method of Treatment: Aerification Both sewer and water lines transect Industrial Park. Electricity: Supplier: City.of Kake Rates: 100 kwh $.12 flat charge over 100 kwh $.07/kwh 1,000 $,75 flat charge over 2,500 kwh — $,05/kwh Power lines are adjacent to Industrial Park. Telephone: Supplier: Southeastern Telephone Company Rates: Business: N/A Residential: $7.00/month LOCAL GOVERNMENT City: Kake is a first-class city with a Mayor- Council form of government. Property Tax Valuation Real Property 5 mills $1,892,206 Personal Property 3 mills N/A City Sales Tax: 3% Police Department: 1 full-time officer and other patrolmen added as needed part-time. Fire Department: 22 volunteers Insurance Classification: 10 Tlingit G haida mdians of alaska y ante agen z : KAKE OVERALL ECONOMIC DEVELOPMENT PLAN © ANNUAL PROGRESS REPORT 1974 or TABLE OF CONTENTS Roster -- OEDP Committee Activity of Committee A Summary of Program Activities Major Changes in Area's Economy Changes in Long Range Goals Action Program for Current Year 2 en Ie 9! Page No. * shes Re idee sy KAKE OEDP Committee Members _ Joseph M. Kahklen _—Chairman School Superintendent, Native Louis Austin Member Fisherman, Native Lonnie Anderson Member School Principal, Non-Native Frank Gordon Member _ Mayor, Native Sasha Soboleff Member Native a. Captain Grundahl Member Salvation Army , Non-Native ‘ Charlie Jackson, Sr., Member Councilman, Native Activity of Committee The 1972 OEDP Committee had not met in two years. formed in April, 1974. -9- A new OEDP Committee was 2 a eg ‘ner Se eat nee ie A Summary of Program Activities ae Kake High School was completed with funding provided by EDA and the St e of Alaska. ($1,000,000.00) ! The Municipal Building was completed with funding provided by EDA ($2,000.00). The State Ferry Terminal was completed by the State. The upgrading of the float plane facility in Portage Bay was completed wf State funding. The Fire Hall was completed with funding by Mainstream. The tallest tctem pole in the world was erected. | A fire truck was obtained from Petersburg at no cost to the community. Land fill for the new ANB Hall was completed at a cost of $18,000. | Work on 20 new housing units is almost complete. NONE, Major Changes in the Area's Economy. ae emp mation Se nem ame Changes in Long Range Goals A. Twenty additional housing units are planned for construction in 1975. C.° A feasibility study has been completed by CEDC (Community Enterprise _ Development Corporation) for a cold storage plant next to the cannery with a new dock. Funding needs to be obtained. D. Under the Kake Tribal Corporation, in order to increase employment in the, City of Kake, development of a sawmill is being discussed. E. Land will be selected by the Village Corporation for a graveyard and funding sought to provide a road to the site, F. The committee has expressed an interest in developing fish hatcheries and related aquaculture. A feasibility study is being conducted by Central Council. G. Water, Sewer & Solid Waste. i vaste. During the past ten years, the City of Kake has been the recipient of substantial. input from federal agencies to upgrade their water and sewer systems. Funding has primarily been through the Indian Health Service (IHS) and the Economic Development Administration (EDA). The IHS constructed a sewage collection system and secondary ‘treatment plant in 1967-68. This was followed in 1969 by an IHS project for replace- ment of the entire water distribution system in the downtown area and providing equipment for solid waste collection and disposal. In 1971, EDA provided a loan-grant project for major rehabilitation of the water °«_ supply system consisting of a new water storage tank and water treatment building along with new transmission lines to town and the canneries. ‘ These projects have provided the basic physical facilities for Kake's water supply, sewage disposal, and solid waste disposal and have made a significant step in upgrading the quality of life in Kake, However, these steps have not resulted in as reliable community service as could be provided. The failure to meet desired goals may be attributed to several reasons. These include: : 1. The dependency of the water and sewer system's operation on the city's electrical power supply. The generation and distribution systems are currently over- loaded and unreliable. This resulted in poor service from the water supply system as well as the sewage pumping and treatment systems. ity WOO poe + oe me me the system. This wil] involve in-depth operator training, ¢ t-operational aspects of uidance in the city's developing and enforcing up-to-date utility system ordinances. Above all, an aware- ness and conscientious attitude toward utility service is required both by the city government and the consumers. With this will come improved servides. With this approach, growth and development can take Place based on supply, Sewage disposal and solid waste collection systems. reliable and safe water respect to past development of Public water and sewer facilities. When a need arose for a utility service monies, material, and ideas were Scraped together from any plan for the future, so that any system installed was not entirely sufficient or satis- Until this year, the City of Kake has lived with a water system which was not ‘initially installed as well as it might have been, has not been maintained the way it secondary treatment and was installed with the financial and professional assistance of the U.S. Public Health Service under PL 86-121, Also, the PHS has authorized a second project for Kake, the goal of which will be to improve, where necessary, water system in town, from the main line to the house fixtures, The two PHS projects will adequately provide for sewag e collection and disposal and for the domestic water distribution system in town. The last need left to be met, then, is for development of a safe, reliable water source and installation of an ade- quate transmission line from source to user. Current thinking is that the city's domestic water needs could be included in development of a water supply to meet oh rte me Kake is on the threshold of Significant and substantial growth, expansion, and development. But one of the very fundamental requirements which must be met before that growth and development can take Place is for safe and reliable water supply and _ Sewage disposal system. Action Program for Current Year Float plane facility needs repairing. Continuing efforts will be conducted to obtain the much needed breakwater to protect the boat harbor. The land for the industrial park has been surveyed and a freeze put on private development in the area. A deed is pending from BLM (Bureau of Land Management). Funding will be sought from EDA. I Kake High School has obtained equipment for an auto mechanics shop. The present _ Shop cannot accommodate the equipment. Enrollment is increasing so a larger shop is needed. At the same time, the school is investigating the feasibility of building a swimming pool. The construction of a road to Petersburg to facilitate natural resource development is considered essential as an economic necessity as well as to provide access to medical facilities. Funding will be sought through federal and state grants. Kake is investigating the transfer of the medical clinic from the State to the City, developing a more comprehensive health plan and the employment of paramedics. A study of recreation area and totem park possibilities is being completed as tourist attractions. Harbor facilities are scheduled for Kake in the "Smallcraft Harbor Program in Southeast Alaska." / 7 The jail flooring, bathroom facilities and cells must be renovated through revenue sharing. Investigation will be made into communication satellite funding. Land fill at site of new cold storage is being completed. An effort to obtain black-topping to ferry terminal will be initiated. - OPTIONAL FORM NO, 10 e Walo- 104 " “UNITED STATES GOVERNMENT Memorandum neta, mene ie TO : Southeast Superintendent Arn: September 15, 1971 FROM : Area Plant Management Officer sunjtcr: Status Report r\ conn, (Kane) rawr ny Mae ward : As the new Superintendent for Southeast Alaska, you will be interested in a a brief status report to familiarize your office with projects we are involved AES re, _ with in your area. Following each community listed below is a description of the project and our accomplishments. . : A. HOONAH - Electrical Distribution & Generation Rehabilitation ~ : On February 17, 1970, Don Anderson and Charles Guinn Jr., went to Hoonah at the request of Mayor Frank See through the Southeast Superintendent. Their purpose was to examine the City's existing electrical distribution system, the new powerhouse and new diesel electric sets, the new mutual help housing project needing power, and to consult with the Mayor about Plant Management providing engineering services to the City. a) They found !Noonah in direneed of (1) a completely new electrical distribution system, (2) improved generation facilities, and (3) immediate service to the 15 new homes which were (then) nearly completed. Since that time Plant Management has, with the help of Tom See and Dave Pearson from Mt. Edgecumbe, provided material and manpower and (1) completed an extension of the existing power lines and tied in the 15 new homes and (2) replaced transformers, insulators, tightened connections, and generally provided interim improvements (prior to an eventual new system) to minimize the overload situation and other dangerous conditions. We also requested PMEC's assistance and they undertook the task of designing (1) a completely new city-wide distribution system and (2) a new powerhouse installation. The latter design incorporated two 500 KW Sterling electric sets (previously acquired by Hoonah from surplus sources through Senator Gruening) and an addition to the powerhouse building. PMEC also provided itemized material lists and cost estimates to supplement the 27 sheets of design plans. The finished package reached our office, and subsequently the City of Hoonah, on February 4, 1971. The total. cost for the project, including material, labor, contingency and a location factor, was estimated at $432,113.00. : 7 ha This ended Plant Management's commitment to the City of Hoonah. Hoonah's problem now is money; according to Mayor Frank See, the city is not financially able to buy the necded material or to hire a private contractor. Mayor See has bcen soliciting both Federal and State agencics for assistance--either by way or an out-and-out grant or a long-term loan. To my knowledge, he has not been successful. — - Electrical Distribution & Generation Rehabilitation The City of Kake proposed to make application to a private agency for a loan to completely modernize and expand its distribution system and generation facilities. They did not (do not) have funds--to pay : a private engineering fimn to prepare apeliminary design, and, again through the Southeast Superintendent, we were requested to assist. PMEC has undertaken the new design, and in March, 1971, Mr. Lowell Peterson of PMEC and Charles Guinn Jr., of Juneau Plant Management traveled to. Kake to examine the City's existing distribution system and generation facilities, to determine the present and future power requirements and to gather other data pertinent to designing a modern, city-wide electrical system. When completed, the plans, along with detailed material lists and cost estimates, will be brought to our office and to the City of Kake for review. Tentatively, this will occur in mid-September, 1971. On February 11, 1971, Kake requested the use of two 100 KW diesel electric sets available from our Plant Management Area Service Center in Anchorage. These units were to provide prime power to their City until the new system is realized. Kake agreed to pay the freight on the units, but requested a mechanic to help with the installation, start-up and operator training. They also requested an electrician to properly hook-up the units to the local distribution system and to check them out for proper metering and ability to synchronize with the City's. plant and each other. Plant Management spent over $2000.00 moving the 2 units to our shop in Anchorage. They were inspected, tested under load, generally overhauled, painted, and shipped to Kake in early March. Subsequently, Ernie Schmitt and Walt Noden, our Area Electrician and mechanic, respectively, went to Kake and spent two weeks installing and checking out the units. Mr. Schmitt also spent some time balancing the city load; currently either unit will singly handle Kake's existing power requirements. Later in March, our office received a call from Mayor Carlson requesting a mechanic to repair a damaged starting engine and an electrician to adjust a hydraulic governor on one of the new 100 KW generators. We complied, and the problems were resived within a week. In April Charles Guinn Jr. again went to Kake at the Mayor's request. This time he was to assist in.designing a system which would incorporate into the cannery's low-voltage electrical generation facilities a new stand-by, 150 Kw, 2400 Volt generator. Ne came up with a Saget eames workable, low-cost pjan (which was what the Cannery wanted), and sent the conpleted design to Kake a few days after his return to Juneau. Subsequent conversation with Mayor Carlson dischsed that the design had been implemented and is working fine. C- KLANOCK ~ Survey of Electrical System At the request of Mr. Frank Peratrovich, President of the Klawock Cooperative Association, through the Southeast Superintendent, Charles Guinn Jr. of Juneau Plant Management visited Klawock on May 19, 1970, ; . cenhnag eet His purpose was twofold: first, to survey the existing electrical system and make recommendations for improvements, and second, to check into the feasibility of the city estavlishing its own pover system. Currently, the Czeanside Packing Co. ‘owned by The Klawock Cooperative Associat..on) fuxaishes power to city users; both the. city and the Cannery are interasted in having the City Own, Operate and maintain its own utility evystem. except for additons and minimal operational maintenance neth inghas been done to up-date the system. Shell~rot is evident on the poles and crossarms, downguys have loosened (possibly from the rotting of the deadmen), almost all primary anda secondary wire is too small for even the existing loads, much of its insullation is weathered and frayed, drops are undersized and deliver only 110 volts to the residences, and service entrances consist simply of two wires Yun through a hole in In short, the system has slowly deteriorated to a potentially dangerous level. According to Mr. Lars Nerland, cannery manager at Klawock, if a new village electrical systen is Yvealized, the cannery would be willing vo buy power from the village. They would, however, (and Mr, Nerland was quite emphatic about this), keep their existing facilities (including generation equipment, fuel storage tanks, etc.) intact for stand-by purposes. This means that, if the City of Klawock goes into the power business, they must: . Basa RE wera ijn eee ene Beals PAP REL D. 1. Instull a completely new distribution system. 2. Obtain their own generators, complete with control panels, switchgear, and other related equipment. 3. Build a powerhouse for the generation equipment. Possibly one of the deserted buildings might serve this purpose. ‘4, Obtain bulk oil storage tanks. 5. Hire a full-time trained operator to be in charge of plant operation. Perhaps he could also maintain the distribution system,.read kilowatt-hour meters, keep records, etc.. Details including distribution’ voltages, transformer and pole data, existing yeneration facilities, existing fue] storage, existing and future loads (for both summer and winter-with and without the cannery as a customer), etc., are covered in Charles Guinn's trip report on file in Plant Management's office. Copies were sent to the Southeast Superintendent, the Division of Credit and Finance, and the Division of Tribal Operations. Included was a cover memo by Mr. Don Anderson with suggestions to expedite action. KLUKWAN -~"Electrical Power Survey On July 1, 1970, our office was requested to assist Klukwan choose a diesel electric set to provide the village with prime power. Don Mitchell of PMEC (who was in the area) and Charles Guinn Jr. traveled to Klukwan in Early July and spent a day looking over Klukwan's existing system, making power estimates, consulting with local leaders on possible future loads, and drawing a plot plan of the existing distribution system. After returning to Juneau, Charles Guinn submitted a short report to the Southeast Superintendent outlining (1) Klukwan's existing and future power requirements, (2) reasons for buying a low voltage unit, (3) a list of 4 diesel electric sets which would fit Klukwan's needs, and (4) a brief cost comparison between two of the units under consideration. I believe that the Southeast Superintendent sent this information to Klukwan for any action they might want to take. (“le nad Claw ah vO ea Plant Management Officer EEE . yy STATE MOOG LA MYMEL G of ALASKA hide jis hi GMP PECEIVE oe SEP 11 1973 TO: | Albert P. Adams Tlingit-Haida Regional Housing Authority Director 525 Village Street pare + = September 7, Jiiabu, Alaska 99801 rere rrom: Gordon Jackson Le susJect: = Kake electrification Deputy Director“ I have received several telephone calls regarding the electricity in.the Pas, Conmunity of Kake. The comunity has had an electrical problem for years. The commumity has grown however the clectrical system remains the saie--very old and outdated. To alleviate or clininate the problea the Tlingit and Waida Central Council and Bureau of Indian Affairs screened generators fron Auchitka. ‘The generators will soon reach Seattle for an overhaul and will pr gecd to Alaska. However, the systcn will not be installed until next year. In the ineantiiae the new hish school recently opened. Because of the anount of current it requires, eloctricity usage in the town is linited during school hours. Already the flucuation in power caused several freezers to burn out and recently burned out the blower in the new high school, thus postponing the opening of school. T have suggested to Joo Kahklen, Superintendent of Schools to contact Charles Guinn of the Tlingit and Haida Nousing Authority to evaluate the present system and suggest how they can mke it throuch the winter. Obviously Charles Guinn suggestion will require money to implenent. T feel very strongly this is an emergency situation. If the cirrent.situation persists, the electricity will do an undetersained amount of danage. Sonething rust be done, and I think the Division of Rural Development Assistance should be involved. If you are worried about technical assistance I'm sure the Tlingit and Haida fousing Authority and Charles Guim would be happy to provide it. ce: Byron Mallott, Comissioner VRobert Loeshor, T § 1 lousing Authority Michell Mattin, Mayor, Kake Joe Kahklen, Supt. of Schools, Kake “On October 30, 1973, Dave Williams and I traveled to Kake MEMORAND u M DATE : November 26, 1973 4 ne TO : For The Record Cx id vv FROM : Charles J. Guinn’? SUBJECT: Kake Electrical hy nies at the request of Mr. Gerald Gray. The purpose of our trip was to provide the Village Council with whatever technical assistance they needed to alleviate (or at least minimize) their electrical generation and distribution problems. We were accompanied by Mr. Clark Boston of the Rural Develop- ment. Agency. A meeting held in Juneau on October 25, precipitated the trip. Present were: Mr. Al Adams of RDA, Mr. Jack Chenawitch and Mr. Al Widmark of Local Affairs, Mr. Marvin Kadake, power plant operator at Kake, Mr. Fred Sloan; BIA Area Plant Manage- ment Officer, Mr. Frank Gordon, Mayor of Kake, Mr. Ernie Hanger, State Representative from Petersburg and Mr. Dave Williams of the Tlingit & Haida Regional Housing Authority. Listed below, briefly and in no specific order are some of: the topics discussed relevant to Kake's electrical problems. 1. A 250 kw G.M. diesel-electric unit is available to the Village of Kake from the City of Petersburg for the price of $8,000. According to Mr. Kadake, this unit has been used as a stand-by to Petersburg's prime power plants, is in very good condition and should be ries ee with Kake's distribution system. 2. RDA would be receptive to a request from the Kake Village Council for monies to up-grade their electrical system. 'Kake already has a $5,000 RDA grant originally slated to be used to finish the village Fire hall. According to Mr. Al Adams, this money could be re-directed for use on the electrical system; in addition, the village should apply for whatever additional monies they will need to bite grade the system to at least last the winter. 3. The Bureau of Indian Affairs has, from Amchitka, 3 ea. 500 kw caterpillars, a power plant building, the associated switchgear, 2 ea. 12,000 gallon oil storage tanks, etc. in Seattle. These are scheduled to be shipped to Kake in the spring:of 1974. — Nees For The Record November 26, 1973 Page 2 Two years ago the Bureau also made available to Kake, a complete electrical generation and distribution design - including the. blue prints, the material lists and the cost estimates. This design was done by the Bureau's Plant Management Engineering Center at the request of the village council and was to be the first step ina program to completely replace Kake's existing system-:- Obtaining the money to purchase the material, pay the freight and begin construction has been the stumbling block to implementing this program. 4. To alleviate Kake's electrical delemma, a two phase approach should be taken: a. The existing system must be improved immediately so that Kake has adequate and reliable power for this coming winter. Gerald Gray advised the group that Charles Guinn and Dave Williams would be available the following week to travel to Kake and Petersburg to provide technical assistance. Al Adams committed one of his staff members, Mr. Clark Boston to accom-— pany them and to explain the RDA grant situation to the council. Long range plans to completely replace the existing distribution system and to incorporate the Amchitka plants into this new system should be initiated. Mr. Al Widmark of Local Affairs will act as coordinator and attempt to secure, from various sources, monies to implement this program. His agency will put together a comprehensive program outlining the necessary steps to be taken, the costs, the monies available, etc. Mr. Williams, Mr. Boston and I arrived in Kake on the morning of October 30, 1973. As previously noted, Kake's electrical problems are acute and immediate. Their distribution system is for the most part, 30 years old and badly in need of replacement. listed below aro some of the system's more general deficiencies: 1. 2. The poles are covered with shell rot. The wires are almost uniformly undersized. This has contributed to excessive voltage loss and to an extra non-productive load on the generators. For The Record November 26, 1973 Page 3 3. Cracked insulators, loose connections and corrosion infest the system. Many of the transformers are too small for the number of houses they serve. To my knowledge, the transformer oil has never been checked - much less replaced. Some of the secondary runs are much too long. “This also contributes to excessive voltage losses and, consequently to low voltage to the houses. The new high school was designed and wired single phase. Since Kake's generation facilities are three-phase, an unbalanced loading situation has resulted - an addi- tional strain on the system. ' ‘The village's maximum load (with the school's heat tapes on and the PHS water pump in operation) is about 200 kw more than the 150 kw caterpillar can handle. y Outlined below is a listing of the four existing generators at Kake, their operational status, and a brief résumé of work needed to. be done. 1 150 kw caterpillar Operational. Used for prime power. Cannot be synchronized with the waukeshas. Having some trouble with the voltage regulator - probably due to overloading. A new regulator is on order. Although the generator's UG-8 governor is equipped with a synchronous motor, no provisions has been made for its remote control at the panel. Consequently, the frequency must be adjusted manually at the generator. Needs new service cables, overhead in conduit, from the generator to the control panel. The voltage regulator control wires should also be re-run, also overhead in conduit, to the control panel. Included in this conduit should be the control wires from the governor so that the generator frequency can be controlled at the panel. 150 kw caterpillar Not operational. Broke down about a year ago. The necessary parts to repair this unit are on site. Kake plans to hire an N.C. Co. mechanic to install parts and make the unit operational. Also needed are (a) a new radiator, since the original was installed on the 150 kw above listed caterpillar, (b) new service cables from the generator to the control panel, (c) new control wires from the governor to the control panel, and (d) new voltage regulator control cables from the generater to the control panel. For The Record November 26, 1973 Page 4 125 kw Waukesha Operational (barely). Chtained from the BIA about 2 years ago on a "use-pe\mit") basis. Leaking oil quite badly. Not large dnougja to be adequately power the entire village.\ ' 125 kw Waukesha : , aces Not Operational. Also obtaijed from the BIA. Voltage regulator not working. Unit/was leaking oil when last used. Could be synchrcjized with the above listed 125 kw Waukesha when operati(nal. We met with the City Council at 1:30|PM and exchanged informa- tion. : La Briefly, the "plans of action] were: Dave Williams, Myself and*Mr} Marvin Kadake would go to Petersburg and examine. th} 250 kw G.M. diesel- electric set. If the unit c/ecked out o.k. and is compatible with Kake's existfng system, the village would purchase the unit and /ship it to Kake for installa- tion. The village would th7n (a) move the two 125 kw Waukeshas out. of the Poem cod building to make room for the newly purchased unit, fb) hire an N.C. Co. mechanic to repair the 150 kw caterpillar that is currently: not operational and (c) malie the necessary provisions to enable synchronization jof the two 150 kw caterpillars. If completed, this plan would result in the 250 kw generator being used fir prime power and the two 150 kw generators (300 kw) being used for stand-by power. | | The village council would write a letter to Al Adams, RDA, requesting permission to utilize their current $5,000 grant (originally intended to finish the fire hall) to up-grade their electrical system. They would also request additional monies for the same purpose. We were weatherbound in Kake overnight and arrived in Petersburg at We It 12 noon on October 31st. examined the 250 kw G.M. diesel-electric set and although found to be in quite good condition. The Petersburg power. plant superintendent, however, recommended that the unit undergo a . major overhaul - which would cost the village of Kake an additional $6,000. Mr. Kadake made arrangements for both the overhaul and the shipment of the unit to Kake. For The Record November 26, 1973 Page 5 Included in the generator package, incidently, are the control panel (complete with the necessary meters, a "Basler" voltage regulator and an oil circuit breaker), two 12 volt heavy-duty ; batteries, the exhaust manifolding, and the engine and generator manuals. / We also arranged (through Mr. Scougel, the city managér, and the power plant superintendent) for one of Petersburg's linemen to travel to Kake on November lst to (1) determine what material will be needed to install the new unit, and (2) to examine the existing system to determine if any major discrepencies exist which might hinder the new plant's installation and/or operation. Mr. Scougel also advised us that he would make available two men to install the unit once all the material is on site. Kake, of course, would have to foot the bill. Incidently, the distribution.voltage at Kake is 2400 volts, wye, while the unit at Petersburg generators 4160 volts, wye, or 2400 volts, delta. It is currently connected to generate 4160 volts, wye - however, if re-connected to generate 2400 volts, delta, will be compatable with the Kake system. Dave Williams and I left Petersburg at 2:30 PM and arrived: in Ketchikan at 4:15 PM on November lst. Basically, I fell that the trip was quite sucessful: the village of Kake is making arrangements to (1) purchase, overhaul, trans- port to Kake, and install the 250 kw diesel-electric set currently at Petersburg; RDA has given the village council permission to re-direct the use of their existing $5,000 grant towards up-grading their electrical system and has supplemented this grant by $5,000 - for a total of $10,000; the village is making arrangements with N.C. Co. for a mechanic to travel to Kake and (1) repair the 150 kw Caterpillar that is not operational, (2) make the provisions necessary to enable the two 150 kw units to be paralleled, and (3) re-run the service cables and control wires from the 150 kw units to their respective control panels; I am making up a material list (with costs) in conjunction with (2) and (3) above. I talked with Kake Mayor, Frank Gordon on November 21; he informed me that the 250 kw unit has been overhauled and tested, and that arrangements are now being made with Reed Brothers at Ketchikan to transport said unit (and associated material) to Kake. cc: Fred, Sloan, BIA Al Adams, RDA Frank Gordon, Mayor of Kake Al Widmark, Local Affairs | { Ce aw ] PrOrvolD’ PLAN ‘ELECTRIC SYSTEM IMPROVEMENT & EXPANSION: PROGRAM oe FOR CITY OF KAKE, ALASKA | PREPARED BY | | RALPH R. STEFANO & ASSOC R.W. BECK & ASSOC ~ CONSULTING ENGINEERS ANALYTICAL & CONS. ENGRS. ANCHORAGE, ALASKA SEATTLE, WASHINGTON geriite. | KALWEL IK. OLLWAING & NMOOUULLAL BO, LING. tg CONSULTING ENGINEERS kan. 704 2ND AVE, ANCHORAGE, ALASKA 99501 PH. 279-1461 Aprit 30, 1971. Mr. Phi tlip Carlson, Mayor City of Kake Kake, Alaska 99830 Subject: Proposed Plan, Electric System mprovement & Expansion Program Oear Mayor Carlson: The following report has been prepared for the City of Kake under the authorization of the City Council. The work represents a system study and provides a scheduled Improve- ment program to meet the power .requirements and proposed and planned - ' faci tities. Respectfully submitted, RALPH Re STEFANO & ASSOCIATES CONSULTING ENGINEERS aah, SEO ALS oa aS ne as beeen meets Enclosure a7 OUTLINE OF REPORT Proposed Plan for Electric System Improvement and Expansion Program for City of Kake, Alaska Section Page Number Section and Subsection Titles _ Number | Summary 2 Existing Electric Facilities General City of Kake Other Facilities 2 Power Requirements Existing Projected 4 Proposed Plan * General Long-Range System 1971-72 Construction Projected Capital Requirements 5 Earnings Present Projected Table |. Basic Data, Present Energy Use. Table 2. Estimated Present Power Requirements. Table 3, Projected Power Requirements. Table 4. Estimated Costs of Facilities to be Constructed Under the Proposed Plan, Figure |. Proposed Plan for Expansion of Electric System. = 2 a a a a “J Bre Proposed Plan for Electric System Improvement and Expansion Program for City of Kake, Alaska _ Introduction Two large bulldings, a new high school-and a post office, are planned for construction in the City of Kake during 1971. The City is also planning for an Industrial Park near the Keku Cannery, and the several existing canning and logging industries are planning to expand operations. The two bulldings will need electric service, and the indus- tries will either produce power or purchase power from the electric system. This report describes the existing electric system and sets forth a proposed plan for improving and expanding the system to meet the proposed power requirements with the long-range objective of providing reliable electric service at reasonable rates. Such service would help attract Industry to Kake. The proposed plan covers the facilities and construction schedule for a new power plant and extension of the distribution system. In developing the proposed plan, it was assumed that electric rates would be established which would be attractive to Industry, an efficient operating staff were avallable to ensure reliable electric service, and a promotional policy be established to increase energy usage per customer. |. SUMMARY The City of Kake Is Isolated geographically from other communities, the nearest of which is Petersburg, located about 40 air miles distant. The City's existing electric system, also isolated from any other system, serves residential, commercial and public uses. The condition of the distribution line appears to be adequate for the present system load. The power plant is a temporary facllity consisting of two diesel units housed in a small wood frame plywood and sheet metal shed. During 1971, a new high school and a Post Oftice Building are planned for construction which will add a load of about 140 kilowatts to the electric system. When the 140 kw is added to the present electric system, the projected peak demand for December 1971 would amount to about 275 kw. The present power plant capacity, which is the largest unit rated at 150 kw, cannot meet the projected 1971 peak demand. Several canning and logging Industries are potential customers for the electric system. Those industries would probably purchase power from the City electric system If the service were reliable and the electric rates were competitive with the industries! own cost of producing power. The present system power requirements were estimated from available information for energy usage. No information is available on energy used for public services such as street lighting, the City Hall and the Clinic. The future power requirements were projected to include the new customers for 197l.and the potential industrial customers and to provide the capabl lity for the electric system to serve increased customer usage and future customers at the. Industrial Park. \ The proposed Ne prepared to meet three basic objectives: 1 (1) Provide electric ao the new high school and Post Office Building In 1971; (2) Provide reliab!! electric service in 1972; and (3) Provide the f capability to serve the Indufsrial Park after 1972. The first objectiviwould include relocation of the existing 150 kw_ diesel generators to the Kek Le Power Plant; rebuilding about 2,700 feet foe ies elie ) 4 ae of the existing single-phase iid two-phase, and extending the distribution ba tine to the Keku Power Plant. The second objective would include replacement | of the 120/220-volt 200 kw genrator at the Keku Power Plant with a new 2400/ 4160-volt 200 kw generator; sp down transformer, and switchgear for parallel fy cy operation. The third object +2 would include extension of the distribution system to Clear Creek Logging |ompany and the proposed Land Plane Runway site fey on Hamilton Isiand. x The facilities which\tould be constructed to meet the first and second objectives would also mit the third objective. The long-range objective of the proposed plan |; the capability of the electric system to provide reliable service for th} residents of Kake, for local industry, and to attract new industries to thi Industrial Park. se The projected capital|requirements of the proposed plan are [Ree summarized as follows; | ( Power } Distribution Year Plant | System Total 1971 $199,000 | $25 ,600 $224,600 1972 126,000 39 900 165,900 { Totals $325,000 | $65 ,500 $390 ,500 From avallable information, tt would appear that present operating revenues of approximately $12,000 are about equal to present operating costs. Future earnings cannot be estimated at this time, since such earnings would aoe depend on electric rates, reliability of electric service and personnel a selected to operate the system. Based on our studies, as described herein, we are of the opinion that the proposed plan would meet the power requirements of the expected new electric customers and would enable the electric system to offer reliable electric service at reasonable cost to potential industrial customers. Reliable,reasonable-cost electric service would encourage new industry to locate in the area and would tend to improve the overall! economic condition of the area, at 9 CI Cy U1 r @ 2. EXISTING ELECTRIC FACILITIES eae General ae The existing electric system for the City of Kake includes generation and distribution facilities which serve residential, commercial and City services all located within the relatively compact area which comprises the inhabited part of the City limits. The Keku Cannery Company, operated by the Village of Kake, generates and distributes electric power for its own use. The Cannery's electric system is not connected to the City electric system. The Cannery is located about 3/4 mile south of the City of Kake. The Clear Creek Logging Company, located about 2=1/4 miles south of Kake, generates electric power for its own use. ‘The Company's electric facilities are not connected to the City's electric system. City as Kake The City's existing Siectric system serves 120 residential customers, five commercial customers, and City services including the City Hall, schools, community gymnasium, clinic and streetlighting. The distribution system consists of a single 2400/4160-volt wood pole line with appurtenant secondary service facilities installed along the length of the main street and extending south to about 3/4 mile from the Keku Cannery. Line construction Is three-phase north from the site of the present generating plant with part two-phase and single-phase extending south from that point, The distribution poles and fixtures vary in condition from old to new and include some modern facilities such as mercury=vapor lamps,"sky blue" transformers, and triplex service drops. Wood poles have been installed on both sides of the narrow street fora ya DP Dd 1’ LAL considerable distance with some of the poles utilized only for street= lighting, telephone circuits, and service drops. The existing electric power plant is a temporary facility which Is housed in a wood frame plywood and sheet metal shed near the center of the-City. The generating equipment consists of two 150 kw, 2,400-volt diesel generator units, and several switchboards. The two diesel units are not operated In parallel since synchronizing equipment is not available. The several switchboards which are not in use, are of older open=pipe frame construction and appear to have been used at one time for distribution feeder circuits. Other Facilities The Keku Cannery Company generates and distributes electric power for its own use as an isolated electric system. The Company's generation consists of four 100/220-volt, three-phase diese! units, one each 25 kw, 60 kw, 75 kw and 200 kw. At the present time, no synchronizing equi pment is available and the diesel units cannot be operated in parallel. The Company's facilities are located about 3/4 mile from the City's distribution : system. The Clear Creek Logging Company also generates and distributes electric power for its own use. The Company's generation amounts to 150 kw which is used for logging operations and a number of living units. The Clear Creek electric system is located about 2-3/4 miles south of the City dock. In addition, the Kupreanof Packing Company generates electric power for Its plant at 110/220-volts using a 15-kw diese! generator. \ 3. POWER REQUIREMENTS Existing Requirements The City's present electric system serves 120 residential customers, five commercial customers, a grade school, a high school, and various public services which are provided by the City. The public services include the community gymnasium, clinic, City Hall, street- lighting and a 50-hoursepower pump for the water system. Electric energy is furnished for public services without charge and no information is available for the amounts of energy used for such purposes. The Information which is available concerning present energy use Includes kilowatt-hours by months from July 1969 through May 1970 for the grade and high schools, an average residence, a best average residence and a random business. Table | summarizes the available basic data. Since complete historical data is not available, the present power requirements of the electric system were estimated from the available information for energy use and from the known and assumed characteristics of the connected load. Table 2 shows the estimated present power requirements of the electric system. The present annual electric system load is estimated at about 550,000 kilowatt-hours with an annual peak load of about 130 ki lowats occurring during the month of December. The following tabulation summarizes the estimated present system load: Estimated System Load for_1970 Residential . 288,000 kwh Commercial « os ees eee ees sse 65,000 Grade School «sss eee ee eevee 33,760 High Schoo | Cr ee er 9,940 D “oo Estimated System Load for 1970 City Hall, Gym, Clinic «se esses 25,000 kwh Streetlighting . «see see eeeae 39,400 Water Pumping « «se ese eae vee 65,000 Energy for Load s «ses eevee 526,100 kwh System Losses at 54 «see ese eee 27,700 Total Generation «esses seve 553,800 kwh Peak Demand (50% LeFs) oo oe we wo 126 kw The present average residential energy use Is about 200 kwh per month and consists primarily of Iighting load. A few residential! customers average about 500 kwh per month. The random average commercial energy use is about 1,000 kwh per month. Total residential and commercial loads were estimated by multiplying the number of customers by the average energy use per customer. Energy used at the City Hall, gymnasium and clinic is an estimated amount based on inspection of the size of the buildings and assuming a 35% load factor. Energy for streetlighting was computed by estimating the number of fixtures and assuming average lamp size of 150 watts and a 60% load factor. A 50=hoursepower pump for the City's water system pumps water into an elevated reservior. Operation of the pump is automatically controlled by reservoir water level, and no provisions are made to avoid pumping during peak system load hours. No information Is available on energy used for pumping. It Is assumed that the water pump operates at a 20% load factor. No information is available on system losses or annual load factor. Losses are assumed at 5% considering the relatively compact electric system, and an annual load factor of 50% appears to be reasonable considering the sizes of the two generating units and the estimated summer and winter load. Projacted Requirements In addition to the existing customers which are served by the aye a Se Oe la electric system, several new customers will need electric service in the ) cs 4 near future and several large power users are potential customers. New customers include proposed airport and ferry terminals, a now high school, and Post Office Building. The high school is planned to open its doors for the 1971-72 schoo! year which begins in September with an estimated electric power demand of 100 to 150 kilowatts. The Post Of fice . Building, also planned for construction during 1971, will need about 40 kilowatts of electric power. The proposed airport and ferry facilities will each need 150 kw. In 1972-73, the power requirements of these four new customers will be more than the electric load of the entire present electric system. The present generating equipment is not capable of serving these four new customers in addition to the power requirements of the present customers. Three large power users are potential customers of the electric system. The three are the Keku Cannery Company, Clear Creek Logging Company and Kupreanof Packing Company. At the present time each operates an isolated electric system and generates power for its own requirements. The Keku Cannery Company operates three diesel generators of 60, 75 and 200 kllowatts. No synchronizing equipment is available, and the Company expects its power requirements to exceed 200 kw for the 1971 season. The Company operates during the salmon season which lasts about two months in the summer. Since the Company must depend on its single 200 kw generator to operate its plant and has no backup power source avallable, the Company may want to purchase standby power from the City to enable its operations to continue If Its generation should fail. Also, since the Cannery would require power during the summer when the City's electric load is low, the City would be in a favorable position to furnish such seasonal power to the Cannery. The Cloar Creok Logging Company has at present installed a capacity of 150 kilowatts and serves 30 family units and Its logging operations. Clear Creek is planning for an additional 250 kw of generation in the near future. The Company has indicated that it would consider purchasing power from the City for logging operations if the price of such power was attractive. Another potential customer is the Kupreanof Packing Company which processes shrimp and cans crab in season. The Company needs 20 kw of additional power at the present time and has programmed for expansion to 50 kw. Timing for the expansion has not been established, The Company presently uses a 15 kw generator for its operations. The power requirements of the expected new customers and potential new customers are summarized in the following table: New Customers: KW High Schools esis es eevee e 100 Post Office Bullding « «6 eees 40 Total 140 Potential Customers: Keku Cannery Company « «6 « « « « « 200 Clear Creek Logging Company . .«. 250 Kupreanof Packing Company «6... _50 Total 500 Total New and Potential Customers ... 640 The proposed airport and ferry facllities power requirements have been tentatively established as 150 kw each. These two facilities are not expected to be in operation before 1972 and are not Included in power projections. covered in this report. The existing residential customers use an average of 200 ki lowatt- hours per month. This energy usage Is well below the 357 kilowatt-hours which corresponds to the amount of energy that a customer can use for the $3.00 “S= bees eee ee q betes ke minimum monthly charge under the present rate schedule, Thus, there Is con- siderable potential for growth in the use of electric energy by residential customers within the present rates. Also, as large power users are added to the electric system and system revenues are not solely dependent on residential sales, the residential electric rates can be reduced thereby further encour- aging use of electric energy by residential customers. While it is difficult to predict an amount for increased residential sales at the present time, an allowance for residential growth will be Included in the proposed plan for additional generation for the electric system. Since the electric energy required for public services is propor= tional to population and no significant changes in population are expected over the next several years, electric energy for public services is expected to remain at the present level, The power requirements were projected for a short-range period covering 1971 and 1972 and for a long-range period after 1972 considering estimated present power usage and based on the following assumptions: (1) The number of residential and commercial! customers within the City wil! be constant, (2) Average energy use per residential and commercial customer would increase, assuming a reduction In electric rates effective In 1972, as follows: Average Ki lowatt-Hours per Month per Customer Present Short Range Long 1970 O71 1972 Range Residential 200 200 300 . 500 Commercial 1,080 1,080 1,250 1,670 » co (3) A new generating plant is constructed for a reliable power supply which would be adequate to meet the power requirements of the local Industries. (4) An aggressive program Is initiated to sell power to local “industries at rates which are competitive with the cost of power produced by local Industry. (5) The Keku Cannery would operate for two months in the summer during the salmon season and expand the season to include halibut by an estimated 30 days. (6) The Clear Creek Logging Company would operate for twelve (12) months year year including the summer months. (7) The Kupreanot Packing Company would operate for two months FeECEECE Ss, in the summer. Table 3 shows the projected power requirements by type of customer and by Individual customer for the potential large power users. _ Fol lowing is a summary of the estimated and projected power requirements for the electric system. Energy Demand Load Kilowatt-Hours Kw (Month) Factor Present - 1970 « « « « » 553,800 126 (Dec) 50% Short Range - 1971 « « « 728,400 273 (Dec) 30% Short Range - 1972 4. « 2,053,000 636 (Jul) 37% Long Range s+ «+ # « « ©=©62,997,000 2,067 (Jul) 32% The projected system load factor Is low compared with many other electric systems. This is the result of the seasonal power requirements for the cannery and other industrial uses which amount to a large share of the total system ‘load, Also, these large summer seasonal power requirements would cause a summer peak power demand on the electric system. jo im a 4, _ PROPOSED PLAN General The projected power requirements show that additional electric fact ities are needed In 1971. A proposed plan for expanding the electric system was prepared which would serve both the immediate and long-range power requirements. The proposed plan considers three objectives: (1) Provide facilities to serve the new high school and Post Office Building in 1971; (2) Provide the capability for-reliable electric service for local industry in 1972; and ee ee (3) Provide for raliable power at reasonable cost for the Je Industrial Park after 1972, The first two objectives are short-range goals which are determined by specific power requirements. The third objective is a long-term position which would enable the City to encourage new industry to locate at the Industrial Park. The first objective is the result of an immediate need for additional electric facilities by September 1971, Firm capability of the existing tem- porary power plant Is 150 kw. Synchronizing equipment, which would permit parallel operation of the two units, Is not available, and thus the peak capacity of the plant is 150 kw. The projected power demand for December 1971 Is about 275 kw. If the two existing units could be paralleled, the plant capability at 300 kw would meet the projected power requirements for 197| without standby capability and system reliability. iu im os f heed foe heey ese es Sle me , “= )= ~, The second objective would upgrade the reliability of the electric service to a level suitable for the local canning and logging inauatrles: By selling electric power to such industrial customers, the electric system would gain the advantages of diversity between types of customers, greater’ utilization of installed electric equipment, and an additional source of operating revenues. At the present time, the electric system is almost com- pletely dependent on residential and a few commercial customers for its operating revenues. The long-range objective is the capability of the electric system to provide reliable service at reasonable cost for the Village of Kake, the existing canning and logging industries, for the proposed Industrial Park, and ferry terminal and airport facility. A reliable supply of electric power at a reasonable cost will help to make the proposed. Industrial Park attractive to pensshct ivan Industries. | The proposed plan was prepared by first developing an electric system which would satisfy the long-range objective, and then determining the interim steps to satisfy the short-range objectives. Figure | shows a diagram of the development of the long-range electric system. The proposed plan is summarized as follows: 1971 (1) - Install a new 2400/4160-volt 200 kw generator on the existing Keku Cannery ‘200 kw 120/240-volt diesel generator. (2) Construct a new power plant by rehabilitating and expanding the Keku Power Plant by relocating the existing 150 kw units. (3) Install a larger generating unit. (4) Install new syncronization and switchgear equipment for parallel operation and transformers. ‘w= bem 3 Smt fee er eee es ese / ven i 5 \ d "ke. (5) Extend the distribution line to the Keku Cannery Power Plant. (6) Rebulld part of the existing distribution line for three-phase. 1972 (7) Construct a distribution line to the Clear Creek Logging Company (assumes a contract for sale of power). (8) Install °a second generating unit. 1973 (9) Distribution system for the Industrial Park as required for new customers. (10) Install new generation required for airport and.ferry facilities. This proposed plan would provide the capability for serving new industrial customers at the Industrial Park by 1973, which is the long-range ‘ objective of the plan. Long-Range System The long-range objective of the proposed plan is to provide reliable electric service at reasonable cost for all electric power users In the vicinity of Kake. In developing the long-range electric system, it is assumed that all of the power users will purchase power from the electric system. The basis for this assumption is that a central power supplier can produce and furnish electric power for a large number of customers at a lower cost than if each customer attempted to produce power individually. The corollary assumption is that the City would sell power to its industrial customers -at rates which would be competitive with the customer's alternative cost of generating electric power. The long-range system, which is diagrammed In Figure |, is planned to serve the future electric requirements of the present customers, the local canning and logging industries, and provide the capability to serve future industries in the Industrial Park. The electric facitities for the long- range system were planned to meet the projected long-range power require- ments which are discussed In Section 3 of this report. Diesel-electric generating units are recommended for the new power plant. The projected long-range power requirements of the present customers plus the existing local canning and logging industries are estimated to be about 750 kw during the summer peak load period. In order for a steam~ electric generating unit to be competitive in cost with diesel units, the total system power requirement should be in the range of 1,500 to 3,000 kw so that the steam unit could be operated at a 70% to 80% plant factor. The . canning industry, which operates only a few months of the year, cannot provide a suitable load for a steam-electric power plant without steam distribution to Industrial Park users for process steam, refrigeration, heating, and residential © generation load. A steam-electric plant at the Industrial Park with steam extraction facillties could furnish steam for industrial processes. However, a steam-electric plant must be justified first on the basis of power generation, since the extracted steam is a by=product of electric power generation. Until such time as the electric power requirements are sufficient to justify a steam- electric plant, It would be necessary to obtain process steam from some other source, such as the existing boilers at the Keku Cannery Company. Consideration was given to used or second-hand diesel-electric generating units for the new power plant. The experience of other utilities, Including several in the State of Alaska, has demonstrated that serious and costly problems frequently appear with used equipment. Used diese] equipment which Is avallable for purchase usually has been in service for 20 or more years and Is in need of a complete overhaul. The City of Anchorage has two used 1,100 kw diesel units for sale on an'"as is, jiere is" basis. It Is understood that the Anchorage diesel units are of prid War I! vintage and are not in use at the present time. ‘Since Kake Is |in Isolated community and Is In need of a reliable power supply to seine lifiustrial customers, It is recommended that new diesel units, guaranteed by tj2 manufacturer be purchased for the electric system. It is also recommended t}3t no used or second-hand . switchgear or protective equipment be installed f(- the new power plant. The objective of the proposed plan is to provide relij»le electric service for all customers in the area of Kake and particularly. fo{ new and potential industrial customers. If the electric system cannot furnish |-eliable electric service because of old and worn equipment, industry may nit choose to locate at the proposed Industrial Park, 197t=72 Construction ‘ The first step of the proposed plan includes relocation of the existing 150 kw units to the Keku Cannery Plant, |the installation of a 2400/4160 volt 200 kw generator on the existing wit, Installation of syncronization equipment, transformer, rebut lding part of the existing distribution system for three-phase, and svharisiteg the distribution system to the new power plant. For 1971, a single diesel-slestric unit of 600 kw capacity wourd also be placed in service. The purpose of this first step is to meet the power requirements of the present customers, the new high school and the new Post Office Building for 1971. The second step, which would be accomplished during 1972, would include a second 600 kw diesel-electric unit and extensions of the dis- tribution system as necessary to serve industrial customers. The extensions would be contingent upon contracts for sale of power. For thls study it was s166 D assumed that a power contract would be negotiated with the. Clear Creek Logging Company. The purpose of the second step is to provide aie electric service at reasonable cost to the local canning and logging industries. For an isolated electric system, such as that which will serve Kake and vicinity, generation is available to meet the system peak a demand with the largest generating unit out of service. The second 600 kw bed - generating unit would provide the reliability of firm power for industry. Projected Capital Requirements The projected capital requirements of the proposed plan are summarized as follows: 1971 Power Plant, 600 kw Diesel Unit ss 6 «6 oo « « « $199,000 Je Distribution Extensions and Line Upgrade «+s « « « 25,600 7 : Total 1971, 6 6 6 «© « « $224,600 1972 Second 600 kw Diesel Unit ss oe ee ee 2 © ow « $126,000 Distribution Extension to Clear Creek s+ +e «4 « 30,900 Transformers, etc., for Industrial Customers « « « 9,000 Total 1972 $765,900 Total, 1971-72 Construction Program ss ss se «6 + $390 ,500 -The facilities which would be constructed under the proposed plan include 1,200 kw of diese! generation which would be sufficient to meet all the power requirements in the vicinity of Kake with a margin of about 200 kw for unexpected load growth or for future industrial needs. The distribution system would be capable of serving all present and forecasted power require- ments In the area. Future distribution feeders to the Industrial Park could be added for a minimum Investment in distribution facilities. -l7- 4 D 5. EARNINGS Present The present rate for electric service, which applies to residential and commercial customers, is 12 cents for the first 100.kwh per month and 7 cents for all over 100 kwh with a $3.00 minimum monthly billing. Service is furnished to City Hall, the Gymans i um and Clinic without charge. It is understood that gross annual revenues at the present time is approximately $12,000, . It is also understood that present operating costs consist of the es cost of diese! fuel and renumeration to a member of the Village who operates the power plant. The operator receives $100 per month plus free electric 5 service. The cost of fue! is 17.5 cents per gallon. The following is an estimate of the present annual cost of power production: Operator, $100 x 12 months « 4 se oe ew oe we wo wo ow $ 1,200 Fuel, 17.5¢/gal @16,000 Btu's/Kwh (Average) « « « « « « » 10,400 Total Operating Costs ss 1 1 eee eo oo wee wo 911,600 phe From available information, it would appear that present operating revenues are about equal to present operating costs with the result that earnings from operation of the electric system are both negligible and indeterminate. Projected Future .revenuas from the sale of electric service will depend on the rates which are established for electric service to Industrial customers in particular, and on the rate which Is applied to residential service. The electric rates will be the key to the success of the electric system. In order to sell electric power to Industrial customers, the rates for such {G0 service will need to be competitive with the cost to an Industrial customer for power generation by the customer. for residential customers, reduced electric rates would encourage greater use of electric service, which would result in increased revenues to the electric system since large amounts of electric energy can be produced at less cost per kilowatt-hour than smal | amounts of enargy. The subject of electric rates is of sufficient importance to warrant a ‘separate study. Future operating costs will include the cost of diesel fuel and labor and materials for the power plant and for the distribution system. The cost of diesel fuel and lube ol! can be- expected to be on the order of 1.75 mills per ki lowatt=hour and the cost of maintenance materials would be about $800 per year for each diese! unit. No det imate is included for the cost of labor for operating and maintaining the power plant and the distribution system since no plans are available for hiring operating personnel! or contracting labor. The present practice of hiring a member of the Village to operate the plant on a casual basis is not compatible with a rellable electric system. In summary, future earnings will depend on several factors which are indeterminate at the present time. Such factors include: (1) Establish- ment of progressive rate schedules; (2) Increased reliability of electric service; and (3) Permanent trained staff to operate the electric system. ee ee By a cpoecc " July 1969 August Scaiipslata r October November December January 1970 February March April May Kwh Grade School City of Kake, Alaska Bnrsic Data Kwh High School 146 1,643 1,017 950 1,380 1,186 1, 235 1,370 668 332 Present Energy Use Kwh Best Aver. Residence 313 367 554 626 653 534 431 590 611 533 365 Kwh Average Residence 230 150 170 200 220 300 200 160 "200 210 160 Kwh Random Business wy 899 1,019 1, 162 "991 1, 187 p BH iy 900 1, 234 i, 245 1, 020 Sef SCS eh yee tee he : City of Kake, Alaska : os Estimated Present Power Requirements 1969-70 ae Residential, Commercial and Schools: Estimated Estimated : Average Total Random Total Grade High Month Residential Residential Commercial Commercial School School Total on re Avg. x 120 . Ran, x 5 1969 July 230 27,600 1,200 6, 000. --- | --- 33,600 Aug. 150 18,000 . 900 4,500 --- 150 22,650 Sept. 170 ; 20, 400 1,020 5,100 4,060 1,640 i 31,200 Oct. 200 24,000. 1,060 "5,300 6,540 1,020 36, 860 Nov. 220 26, 400 990 Ti 4,950 3,410 - 950 - §35,:710- Dec. 300 36,000 1,090 5,450 6,670 1,380 49,500 1970 Jan, 200 24, 000 1,150 5,750 3,730 1,190 34, 670 Feb. 160 19,200 900 4,500 3, 740 1, 240 28, 680 ; Mar. 200 24,000 1,230 6, 150 5,610 1,370 37, 130 Apr.. 210 25,200 i 1,240 6,200 --- 670 32,070 May 160 19, 200 1,020 5, 100 ate 330. 24, 630° t June 200 24,000 1,200 6,000 --- --- 30, 000 Year 2,400 288,000 13,000 65,000 33,760 | 9, 940 396, 700 Public Services: i City Hall, Gymnasium and Clinic . 2. 2 6 0 6 2 ee ee we we ww tw 25,000 Streetlighting - 50 watts ea., 60% Load Factor . .. 1. e+ + ee ee eee 39, 400 Water Pumping - 50 hp. @ 20% Load Factor . . 2... 1 ee © © @ © oe © 65,000 ~ 2 OLB L Total System: H : i. wo Totaltidergysfort load! 674) 6.62 oie) lod) 6 6. eee el ee 526,100 kwh Systeni Losses,’ Estimated at'5%° 2 5 ois 6 0 6 ea Oe ae, oe 8) de 8 27, 700 5, Total Generation +s..0- «:"e. tae oo She ow 6k ee Oe ee 553, 800 kwh q System Peak Demand, Estimated at 50% Load Factor .... + + + + eee : 126 kw Annual Residential Commercial Schools - Public Services Subtotal New High School Post Office Building Keku Cannery Company Clear Creek Logging Company Kupreanof Packing Co. Other Industrial Total Load * Generation with 5% Losses Summer Month (June or July) Residential Commercial Schools Public Services Subtotal New High School Post Office Building Keku Cannery Company Clear Creek Logging Company Kupreanof Packing Company Other Industrial Total Load Generation with 5% Losses Winter Month (December) Residential Commercial Schools Public Services Subtotal New High School Post Office Building Keku Cannery Company Clear Creek Logging Company Kupreanof Packing Company Other Industrial Total Load Generation with 5% Losses my City of Kake, Alaska caries Projected Power Requirements Estimated Present Load Factor 1970 1971 1972 Long Range Kwh Kw Kwh Kw Kh Kw Kwh 288, 000 288, 000 432, 000 720,000 : 65,000 65, 000 75,000 100, 000 43,700 38, 000 38, 000 38, 000 129, 400 130, 000 130, 000 130, 000 50% 526, 100 521, 000 675, 000 988, 000 25% . 110, 000 219, 000 219, 000 35% 61, 000 122, 000 122, 000 8% 146,000 255, 600 35% 766, 500 1, 226, 400 8% 22,000 36, 400 -- 526, 100 120 692, 000 259 1, 950, 500 604 2, 847, 400 1,014 - 553, 800 126 728, 400 273 2,053, 100 636 2, 997, 200 1,067 24, 000 24,000 36, 000 60, 000 6,000 6, 000 6, 250 9, 200 0 0 0 ° 7,000 7,000 7,000 7,000 60% 37, 000 70 37, 000 70 49, 250 94 76, 200 174 -- 0 -- 0 -- 0 - 35% 10, 400 40 20, 800 40 20, 800 40 50% 73, 000 200 127, 800 350 35% 63, 900 250 102, 200 400 50% 7, 300 20 18,200 50 -- 37, 000 70 47, 400 110 214, 250 604 345, 200 1,018 -- 38, 900 4 49, 900 116 225, 500 636 363, 400 1,087 36, 000 36,000 54, 000 90, 000 5,450 5,450 8, 180 8, 400 8,050 6,670 6,670 12, 500 12, 500 12, 500 60% 62,000 120 60, 620 119 81, 350 155 117, 600 224 30% 22, 300 100 22, 300 100 22, 300 100 35% 10, 400 40 20, 800 40 - 20,800 40 35% 63, 900 250 102, 200 400 << ~ 62, 000 120 93, 320 259 188, 350 545 262, 900 Tes i 65, 300 126 98, 200 273 198, 300 574 276, 700 804 ESTIMATED COSTS OF FACILITIES TO Bl CONSTRUCTED UNDER THE PROPOSED PLAN Power Plant 1971 - 600-kw Diesel Unit ... 2. 2... Transportation . . 1... 2 «es Steel Building, Foundations ... Piping, Auxillary Equipment ce Switchgear . . 2 2 2 6 6 ewe Labor, Installand Wire ..... Totall971 . 2... 6. 2 2 2 1972 - 600-kw Diesel Unit .. .. 2...) Transportation . . «2.4 2 2 6 « Piping, Etc. oe 8 ee wt ene Labor, Install and Wire ..... Total ‘F972 . ss “ete © 0:6 Total Power Plant... ..... 22 eee Distribution 1971 - Rebuild 2,700' of 26: & 1 Line .. 3, 750' new line to Industrial Park Remote Labor Factor, 2x .... Subtotal ..... ee Overheads, 15% Material, 10% Labor .. 6 6 2 s+ 6 ee ee Gyubtotel . «sas cin Se Subsistence, 125 MD ...... Mobilization . 2. . «ec s+ 6 6 Totall971 . 2... we ew 1972 - New line to Clear Creek 1.5 mi. @$3.08 .... o| ele} lo 6| 40 Subsistence, 100 MD a) elle) tlle be Mobilization . . . « « « « «© «© « Subtotal . ..... 2... Transformers, etc. for Industrial Customers, 600 kva@$15... Total1972 ......2.e.. $114, 000 5,000 18, 000 12,000 25,000 25,000 © “$114, 000 5,000 3,000 4,000 $1, 967 2,407 $4,374 656 $5,030 -.« $199,000 « « $126,000 ‘. $325,000 Labor Total $2,678 $ 4,000 4,000 $13,356 1,334 $14,690 $19,720 alte e 1, 880 hn alice| ae 5,000 tle * $26, 600 « ee « $24, 400 el lel1e| 1 1,500 oe ee 5,000 o 8 es $30, 900 «. « $39,900 Existing Village load about 125 kw ' New High Projected long-range load about 375 kw School : Existing 2, 400/4, 160-volt : 2 Distribution Line Existing ao Existing single-phase and two-phase distribution line to be rebuilt for \d three-phase, 4,160 volts in 1971 \ New distribution line to . 23,750! ~~ new power plant in 1971 1-1/4 miles * “ ‘ ‘ - ‘“ N . \ . 7 Keku AY t© Cannery S 3 . New P. Pl ; : \ New distribution line . Re S de sted a a 7 \ a 49 Cldar Creek in 1972 in etre Of Propose . > (Depends on contract Industrial Park . \ for sale of power) ‘ ‘ Kupreanof \ Packing Co. ‘ / 50 kw \ \ \ 1-1/2 miles ; \ : N\ City of Kake, Alaska \ : \ PROPOSED PLAN FOR , SS EXPANSION OF ELECTRIC SYSTEM \ : \ N Ne A Clear Creek Logging Co. Ne 250 kw UPROAR HS . ” IN REPLY REFER TO: f YNEG United States Department of the Interior —%09700/412..02.02 BUREAU OF INDIAN AFFAIRS i se tf DIVISION OF PLANT MANAGEMENT \ Sor e'P.0. Box 25286 spurADINGs.y; DENVER FEDERAL CENTER ~ ee ae DENVER, COLORADO 80225 vis PLANT MANAGEMENT ENGINEERING CENTER Fes — AUG 17 1972 ates : i x : bree tt Memorandum Ni EES To: Area Director, Juneau Area From: Acting Chief, Plant Management Engineering Center Subject: Kake Electrical Distribution and Power Generating Station - PMEC No. 1929 eC ' Enclosed are four copies each of the following: ~ 1. Mechanical Drawing Sheets M-1 and M-2. 25 Architectural Drawing Sheet A-l. 3. Structural Seawiins Sheet S-1l. 4. Specifications. 5. Electrical Drawing Sheets E-l, E-2, E-3, E-4, E-5 and . E-6. : 6. Bill of Materials 7. Cost Estimates. 8. Specifications for Procurement of Generating Units and Switchgear. Further information will need to be gathered in order to establish the proper foundation from borings or pit investigation of tha soil conditions in the area where the building is to be constructed. This would cost approximately $1,000 additional expense over the . ; ” 4; Ceprrd old CF +o tena “ape a Ea ag ttt at CT IAG attached estimate. Also, the topography of the area where the building is to be located will need to be established before final foundation details can be completed. Such investigation may possibly be done locally or from the Area Office. If further assistance is desired, and if we have the capabilities, we shall be glad to furnish such help at your request. ClioiseMe fl whee ee Enclosures aE TOE As Peles onal aie ging? CM a * 2 - a ‘ BUREAU OF LNDIAN AFFALRS es DIVISION OF PLANT MANAGEMENT PLANT MANAGEMENT ENGINEERING CENTER i A/E SECTION YT" oe moncr_LafE AlASkA Ask _PMWO: [721 DATE: 2lT A | PERT SENT DATA: ce SHEET / or / FlacTr ical Cam orating Fe Distribtion —estiaten py SYSTEM © te ee SUuanmar” Estimete | _ CHECKED BY. | Tree UNIT Een UNIT TOTAL! NO. DESCRIPTION MATL. | QUAN. MATL. | MH.| MATL. FMEC-032 (Rev. 5-70) , & , s Leh Ben, oo y GENERATION AND DISTRIBUTION SYSTEM wee KAKE, ALASKA Q? ero DIVISION OF PLANT MANAGEMENT ! PLANT MANAGEMENT ENGINEERING CENTER : | } A/E SECTION PMwo: 12 pate: PUERY"SENT DATA: |g Ae : SHEET OF Methemecal. Counstvwction aucl Cree bin’ | ESTIMATED BY Assome. Force Acerca type Conshron. fr om pom 2 Trees : : sare PER UNIT TOTAL _NO. DESCRIPTION MATL. | QUAN. [MH. | MATL, MATL. | a "MEC-032 (Rev. 5-70) , & : « ft PROJECT: PLANT MANAGEMENT ENGINEERING CENTER MATERIAL LIST Kake Generating Plant PMWO:_-_ 1929 DATE PERTINENT DATA: Juneau Area SHEET___1 OF. 3:7 Prices are FOB Seattle - Freight has not been included, PREPARED BY ___R.E.T. ITEM QUAN UNIT [TOTAL No, DESCRIPTION UNIT |REQ'D|Ccost jcostT 01 500 KW Diesel Engine, (See Specifications) idk aoe 124,000 16000 Gallon Fuel Tank, Owens Corning 1216 MC | 02 with 2" side bottom drain, 4" fill and vent, 2" outlet and quick opening Manway, ea] 1 »850 275 Gallon Fuel oil day tanks with 3° long legs ea 03 and oo anges 2 60 120 Fuel transfer pump Blackmer X 1 1/4 A, 1/2 HP, ‘04 10 Gallon Per Minute at 30 PSI Optional depend "| | ing on Elevation of the Storage Tank) 100 100 Furnace, oil fired, upflow, Lennox 08D1-105 wit aes 05 Disch Plenum ‘or : 1 380 380 06 Furnace, oil fired, Counter flow, Lennox Sees | | 400 400 pecial Sub-base for Item 06 with two x 18 07 supply air grilles on front & left sides (No 0 08 6" Metal bestos type SS Chimney pipe #6s ength 1 20 20 09 6" Metal bestos Roof Support, #6S-RSP 20 20 10 6" Metal bestos Finishing Collar, #6S-FC 5 5 11° | 6" Metal bestos Round Top Roof Cap, #6S-CT 10.00) 10.00 12 6" Metal bestos Storm Collar, #6S-sc 2.00) 2.00 13 6" Metal bestos Roof Flashing, #6S-AF ea. 1 6.00 6.00 14 6" Galvanized smokepipe 26 gauge, 2' lengths henge] 8 | 1.50 12.00 15 7" Metalbestos Chimney pipe 30" length, #7S length 1 22.00) 22.00 16 7" Metalbestos Chimney pipe 18" length, #7s 14.00} 14.00 ITEM NO, | 17 18 19 20 21 22... 23 24 25 26 27 28 29 30 or $2 33 34 PLANT MANAGEMENT ENGINEERING CENTER MATERIAL LIST DESCRIPTION 7" Metal bestos Roof support, #7S-RSP ea, 1 |22.00 7" Metal bestos finishing collar, #7S-FC ea. 7" Metal bestos Round top roof cap, #7S-CT 7" Metal bestos storm collar, #7S-SC 7" Metal bestos roof flashing, #7S-AF 7" Metal bestos locking band, #78-LB 7" Galvanized steel 24 gauge, smokepipe, 2' length 6" Barometric Damper, field type R-C 7" Barometric Damper, field type R-C | 3/4" Copper Tubing, type "L" soft 3/4 x 3/8 Copper to copper reducing coupling. Oil filter with 3/8" female screwed connections Fusible brass handle oil valve, wards 81A 65335 Adapter 3/8" Copper to 3/8" Male pipe threads 3/8" Copper tubing, TYPE "L" soft Adapter, 3/8" Copper to 1/4" Male pipe thread 3/4" x 4" Nipple, Black steel threaded 3/4" Plug valves, screwed ends _PROJECT:__ Kake Generating Plant PMWO:__1929 =DATE : PERTINENT DATA: Juneau Area SHEET 2 OF 7 Prices are FOB Seattle - Freight has not been included. PREPARED BY R.E.T. - QUAN | UNIT [TOTAL 22.00 6.00 ea, 1__112.00]12.00_ ea. 2.00 ea. 1 8.00] 8.00 ea, 1 sedan 2.00 lengt 5 1.60] 8.00 ea. 1 4.00} 4.00 ea, 1 5.00{ 5.00 L.F.| 60 -67|40.00 fea. | 6 | 433] 2.00 eal 2 5.00/10.00 ea, 2 4.00] 8.00 ea, 2 -50} 1.00 L.F.} 5 40] 2.00 ea, 2 -50} 1.00 2 L700 PLANT MANAGEMENT ENGINEERING CENTER MATERIAL LIST -PROJECT:__ Kake Generating Plant PMWO:_ 1929 DATE PERTINENT DATA: Juneau Area , SHEET___3 OF 7 Prices are FOB Seattle - Freight has not a ae been included. PREPARED BY R.E.T. ; ——$—$$____ ITEM QUAN | UNIT [TOTAL NO. DESCRIPTION UNIT |REQ'D| Cost |cosT 35 Reducing elbow 1 1/4 X 3/4 Black Malleable Iron] ea, 1 1.00} 1.00 36 Tee 1 1/4 X 1 1/4 X 3/4, Black Malleable Iron 1.50} 3.00 37 Union 1 1/4" Black Malleable Iron ae] 10 1,90: 13.00 36_| reo 11/6 11/6 £1/2, Black natteabie tron | ea. | 2 | 1.50] 3.00 39 Elbows 1 1/4", Black Malleable Iron | ea. | 20 | -85]17.00 60 es. |__| 2.00[2.00 41 Elbows 3/4" Black Malleable Iron — : ea, 25 -24] 6.00 42 Check valves 3/4", Screwed ends 11.00} 66.00 43 Unions 3/4", Black Malleable Iron ea, 6 -67} 4.00 44 1 1/4" Plug valve ea, 4 6.50} 26.00 45 2" Plug valve 14.00] 14.00 ray 46 Adapter 2" Male threads to Filling Hose Connect = ea. | 1 |11.00! 11.00 47 1 1/4" Tee, Black Malleable Iron ea, 4 1.25] 5.00 be “8 ca. | 2 | 50] 1.00 49. Bushing 2" X_1"' double tapped ea, 2-4: 1.50)+:3.00 50 Bushing 2" X 1 1/4" ea. ue 1.00 2.00 aS 1" Elbow, Black Malleable Iron , ea, 5 .60}-.:. 3.00 52 1" Tee, Black Malleable Iron ea, 1 1.00} 1.00 PLANT MANAGEMENT ENGINEERING CENTER MATERIAL LIST PROJECT: Kake Generating Plant” : * PMWO: 1929 DATE PERTINENT DATA: Juneau Area - SHEET__ 4 OF. m7 Prices are FOB Seattle - Freight has not been included, , PREPARED BY _ R.E.T. Tee, 1" X 1" X 3/4" Black Malleable Iron lea. | Tee, 1" X 3/4" X 3/4", Black Malleable Iron lea. | 1 | 1,00] Pipe, 1 1/4" Black steel 20 feet lengths lea. | 3 | 12.00 Pipe, 1 1/4", Black Steel Plastic Coated 20! lengths pea [8 | 1 1/4" Couplings, Black Malleable Iron fea. | 10 | .20| | Pipe 2", nest stent, 20 cece tngtts ens | 2 foal [Pine 3/4" mack test, 20 fect tengo on, seal Liverrevenome fe pa tow Pipe spools for 4" cooling water lines ‘(See sg aoe pve 4" pipe saddle, Ellen Fig 50 Mae] ¥. bos.oe [2" poor rues, eiseades idan be Teo Exhaust Silencer support frame (See Drawings an: | 2 [350.01 | 2" catvanteed ach. 40 eect pipe 20° engena len] 2 | apg 65 68 oF] PROJECT: ITEM -NO. 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 PLANT MANAGEMENT ENGINEERING CENTER Juneau Area MATERIAL LIST Kake Generating Plant : : rier PERTINENT DATA: Prices are FOB Seattle - Freight has not been included. | icen Pig. 21, pipe rott for 12" pipe eupport_| ca. | 2 | toeeaded rod 1/2 sieen Fig. 73, 2. iengthe | oa | Bolts 1/4" X 1" with nuts and flat washers Water closet, siphon jet with seat and installat tion kit Lavatory with fittings faucets and Water Heater 20 gal., 1500 watt, with relief Plain end closet bend, 4 X 3 cast iron Sanitary Tee 3 X 3 X 3 cast iron : Sanitary Tee 3 X 3 X 2 cast iron Long radius 1/4 bend, cast iron 3" size Short Radius 1/4 bend, cast iron 2" size 3" P Slip Cast Iron Pipe 5' lengths extra heavy 2" Cast Lron Pipe , 3" ABS Plastic pipe type DWV, 10 feet lengths Sanitary Tee, 3 X 3 X 1 1/4 ABS Plastic Slip x ‘pop-up PREPARED BY__R.E.T. waste ‘ QUAN [UNIT [TOTAL UNIT | REQ'D/ Cost |cost jes. | 2 | pee ras fea. | 2 | 50] 1.00 1,00 1 feo] ea, 1 | 2.50] 5.00 43.00] 86.00 jes . iF ca, 6.00 . 1,00 -25; 1.00 65.00} 65.00 40.00} 40.00 7.00} 7.00 4.00 4.00} 4.00 3.00} 3.00 2.00} 2.00 8.00} 24.00 6.00] . 6.00 9.00} 18.00 3.00} 3.00 PLANT MANAGEMEN'T ENGINEERING CENTER MATERIAL LIST PROJECT:_Kake Generating Plant PMWO:1929 ‘DATE PERTINENT DATA: Juneau Area . SHEET. 6 OF 7 Prices are FOB Seattle - Freight has not been included, ' PREPARED BY R.EsT 89 Reducing spigot 2" spigot to "slip, AB 90 Flush Bushing 1 1/2" x 1 1/4", ABS Plastic | ea, | 1 1.00} 1.00 Through Wall short turn T-V Slip X Slip xX Slip 91 joint, ABS plastic ITEM : QUAN [UNIT [TOTAL ‘NO. DESCRIPTION UNIT | REQ'D|cost |cost Galvanized Roof Flashing with neoprene collar | 88 for 3" pipe ea 00 1.00} 1.00 engt | w ° So o 92 11/4" Plastic Pipe, ABS type DWV; 10 feet leng i 6.00 s3 1.50| 9.00 24 | saspter 3"snip 3" spigot, ass Plastic | en. | a | 2.00! 2.00 a5 | 1 1/6" eitow 90° ans plastic stip fsiip Lea, | 1 a,00/ 1.0 26 | 1” cate vaive colder en (ston ood vested lan, lal ooal ac 97 i" X_3/4" Reducer copper, solder ends bee ba 95 I sian wining coosss, solder iaie gy |g 99 1/2" Elbows copper, solder ends haga 2.00 100 4o'| 70] 28.00 101 | 1/2" wipe "10 nard copper cube ___[a.p.l aol asl a0 vo 102 | Tees, 3/4 X 3/4 X 1/2 Copper solder ends eat des 00 = io 2.00 le nm wn . ™N wn we ° ° °o 103 | Gate valve 1/2" Solder ends able 3 6.00 104. | Unions 1/2" Solder ends en ol oe 1,00 105 | Hose Faucet, Solder ends ead 3.00 PLANT MANAGEMENT ENGINEERING CENTER MATERIAL LIST EX X PROJECT::- yake Generating Plant: : : PMWO:_ 1929 DATE PERTINENT DATA: Juneau Area al SHEET. 7 OF ee Prices are FOB Seattle - Freight has not been included, PREPARED BY R.E.T. ITEM NO. 106 107 108 109 111 112 113 114 at5 116 117 nuts and washers Screws 3 a on ‘ 5" Round Galvanized steel duct est ee 5" Bg" xan 5" Perforated steel strap galvanized Pipe Clamps for 1 1/4" bolts and nuts and washers ea Pipe Clamps for 1" iron pipe with 1/4" X 1" bolts DESCRIPTION — iron pipe with 1/4" x 1" han, Round Side duct takeoffs Galvanized steel duct Round Galvanized steel duct gers elbow, 9 for duct Pipe Clamps for 3/4" iron pipe with 1/4" Bolts with expansion anchors Pipe Clamps for 3/4" copper tubing with wood 0 QUAN [UNIT [TOTAL UNIT | REQ'D|COST |COST ea. 12 08 x. 2.1/4 00 a 00 Roll} 1 4.00 4.00 EE a a GRAND TOTAL (ALL SHEETS) ------------ nn Se ee --- $133,268.00 IN REPLY REFER T¢ UNITED STATES DEPARTMENT oF THE INTERIOR BUREAU OF INDIAN AFFAIRS Juncau Arza Office P.O. Box 3-8000 Juneau, Alaska 99801 June 14, 1973 Mr. Bill Pinkerton City of Kake Box 234 Kake, Alaska 99830 Dear Mr, Pinkerton: AS you requested on your visit to our office last week, T am sending You a cost estimate for site Preparation, ‘foundation construction ang Pre-fab bui} ding erection for the Amchitka Powerhouse slated for Kake,. It does not include freight to Kake, generator satg installation, switchgear and ancillary equipment installati on, or connecting the Powerhouse to the existing City distribution system. At Present the entire 40' x 708 Structural-wood Structure, illustrateg on the attachod Photo-copy-reduetions, is Scheduled ty be dismantled at Anchitka, Alaska, in July 1973, ang to be shipped via Atomic Energy Commission barge to Seattle in August. Its reshipment. to Kake is un- Scheduled ‘bending 1974 FY funds ang Clectrical panel MOdi fication work in Seattle, but is anticipated in Septenber 1973, You are hereby encouraged to seek State or Private funding for the Powerhouse erection, Since at this time, the Bureau has no assurances of any funds for this Purpose. We are working through the Bureau's Indian Technical Assistance Center (ITac) in Denver, and current Washington Office reorganization Plans contemplate reducing ITac to half its size, , lf there is any thing we can furnish to assist in your application for erection funds do hot hesitate to call on us. Complete sets of exist~ ing Atomic Enoxgy Commission Plans can be Obtained in just a Short while, Sincerely yours, . Acting Area Plant Management Officer ode Amchitka Poverhouse Conereté requirements: 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 40° x 70' = 2600 sq. ft. 14' ht at caves, 19' at ridge ~8 ea wood arches (w pieces: 16 pieces total) “wall panels 10' x 7' (tor -) (3 x 6 tag) 14 bays x 2 panel. sections each - 28 ea End walls (3 x 6 t&q) [ say 10 bays x 2 panel sections each = 20 ea Roof (3 x 6 t&g) say 14 bays x 2 panel sections each = 28 ea Blocks 15'-6" x 6'-0" x 2'-0" x 5 aa = 34.4 cu. yd. Perimater wall 220' x 1'-0" x 1'=-0" = (220) 8.1 Arch pad 3'-0" x O'-9" x 3'-O" x 16 = (108) 4.0 O'-6" x 1'-0" x 1-0" x 16 = (8) 3 Slab 38' x 6S' x Q'-5" = ) 1085) 40.2 ramp 10' x 10'x 4 +9) ; 2) 6.5" = (54) 2.0 Porch 4'-2" x 6°-O" x O'-5" = (10.5) 0.4 Porch ftg. 16" x 2'=1" x O'--8" = (13..5) 0.4 Int. pads 1'=7" > 3'-0" x O'=4" x 6 = (10) 0.4 Rlec slots L'-0" x O'-4" x G2! = (21) 0.8 Lah. pole grout 2'~6" x 2'-6" x 7'-0" x 3 = (131) 4.9 5.3 Rad. pads 2'-0" » 4'-0" x 6'-0" x 3 = (144) Steel Requirements (1/2" - 0.663 lb/ft) 1) 2) 3) 4) G) ”) Ibs, Blocks: A Bolts 20 ca 1/2 dia. x 22" x 5 ea = V22.5 .2"% dia. pipe x 8" x.20 ea x 5 ea = (3.66 lb/ft) 244.0 5 sq. in. at 7.65 lb/ft pl 2-3/4 dia. x 3/16" x 20 ca x 5 ea = 26.5 Rebar #4 15' x 6 x 2 x« 5 ea = (900') i i 601.2 “G4 8! x 14x 2% 5 ea = (1120')" 748.2 Slab Reber #4 2' x 1979 sq. ft. = (3958') 2644.0 Corner reinf. $42 x 5' x 2x 24 = (460') 320.6 Yooting #7 » 4 ca » 240' = (960') at 2.04 : 1958.4 #4 x 4' » 460 = (1920') 1262.6 A-Bolt 1/2 dia. x 8" x SG oa = (37"') 24.7 Aven bikt: J72" pl x 5-3/8" x 6" 2 1G = 4 sg. Fr. at 20.4 81.6 S/O pd Wied) 72" 1 a5-3/G" % IGK= 25.9 aye, Ft. at 19.3 306.6 DJA" Oats At 12" & 1G an +: 82! tak Lob 40.0 bolts 1/72" dia. «x 6" x IG ca = 10" at .668 6.7 Arena ftus: i4 hoop 6' » 3:ca x 16 ca = 288! 192.4 #4 3'-O" x G x 16 ca = 228! 02 at Raw: 74 70' x 20 ca = 200' 133::6 #4 Gewels 2" x 30 ea = 20° 13.4 Slub jt. Jab 4 2 1-6" x» 90 = 135" Kake Powerhouse 3, 40' x 70' = 2800 sq. ft. Kake location factor 2.0 (L.F.) Site Prep. --By others. Conerete work 101 yds. | it $180 .00/ya 15,150 L.F.= 2.0 $30,300 .: Erection of Bldg. 2800 sq. ft. $1.25/sq. ft. $3 500 L.P.= 2.0 $7,000 Contingency 15% TOLAL June '73 $30 ,00% 7,000 __ 5590 . 42,690. | BUREAU OF INDIAN AFFAIRS Oo DIVISION OF PLANT MANAGEMENT ee PLANT MANAGEMENT ENGINEERING CENTER A A/E SECTION | he : : | PROJECT: PRELIMINARY COST ESTIMATE , ELECT. . PMWO: DATE: 08/09/72 | = ee PERT NENT DATA: SHEET. 1 OF 1 ESTIMATED BY__DDM KAKE, ALASKA “ New Power House & Electrical . > GHECKED BY Distribution System Job No. 1929 ITEM . : UNIT PER UNIT _NO, {. DESCRIPTION |_ MATL. QUAN. | MH. | MATL. 1 | switchgear Lot a — es 45,00 | 2 | Main Substation, 1000 KVA ioe [a | | nf 3 Power Plant Electric f | a eo 4 Distribution System a 33,020 ayes 049 | Line to crab cannery from new power power tf og jouse Line to log camp from crab cannery NOTE: Item 6 cost would be reduced approx. / | 50% if line could be 1 % SUB-TOTAL ee Al, 870 (293.440 | 15,000 A HEE ae wpes.000 FH = FREIGHT Lot cost for location | =e SUB-TOTAL | vm We ete! Bed tot sey oak: a yee Se sry 3. ee sae Westby TS eee ie : BUREAU OF INDIAN AFFAIRS | * DIVISION OF PLANT MANAGEMENT ae ; PLANT MANAGEMENT ENGINEERING CENTER a. Coa A/E SECTION Li . PROJECT:__ PRELIMINARY COST ESTIMATE, ELECT. ___PMWO: DATE:___.08/09/72 | PERT“NENT DATA: : : SHEET 1 OF. 1 | ESTIMATED BY__DDM KAKE, ALASKA oo - New Power House & Electrical : : ’ CHECKED BY Distribution System Job No. 1929 no. | DESCRIPTION 1 Switchgear k 2 Main Substation, 1000 KVA 3 Power Plant Electric 4 | Distribution System Line to crab cannery from new power NE nse age Line to log camp. from crab cannery NOTE: Item 6 cost would be reduced approx. 50% if line could be 1 @ SUB-TOTAL : FREIGHT af SUB-TOTAL | shos, 00 TOTAL:C iL. 3k mai inland cost for location | | | factor | eee FMEC-032 (Rev. 5-70) | , a — Be Pia Ee ev] CENTRAL COUNCIL! . thngit G hada moans of alaska Room 202 114 South Frenklin Street Juneau, Alaska 99801 586-2204 or 586-2206 sRENCE JACKSON PRESIDENT : September 4, 1972 Roland L. Marchand : Chief of Legistics , v - Support Branch ee Nevada Overations Office : Atomic Enargy Commission Las Vegas, NV 89114 . Dear Mr. Marchand: It is my.understanding. that you. have five diesel generators which you will be Gemobilizing. next spring and will be. releasing to. some area which has a need for these cater- pillar generators. We have ten villages in southeast Alas that hava electrical needs in which these diesel eof eee could be used. a) The comrinity of Kake is one of the communities that has more than likély the most uxgent need at this time. It houses probably one of the largest logging camps in south- _ @ast Alaska, which delivers logs to a Japanese Pulp Mill in ‘Sitka. The logging camo employs over 100 loggers in the woods. It has a population well over 200, and the camp is adjacent to the village of Kake. The children attend our schools, and the parents utilize the shopping centers in the villays. A new high school is presently under construction which will cost well over one million dollars. The present school system has presently twelve classrooms not counting the.addition of a new high school. It will be filled alnost ° to capacity on completion in late November or early December of 1972. The community owns its own salmon cannery. It has an estimated value with its fishing fleet of almost two million dollars. ‘The comaunity also has a privately owned dungeness crab cannery. ‘Between the crab cannery, the log- ging canp, and salmon cannary, approximately 400 people are mployed seasonally. ‘There are three grocery stores, one sporting goods stoxe, and one apartment building, plus approximately 180 homes within the village of Kake. % Martone Johnson, ith vice president, Hoonah Aaron Vs aceetiry, Crais Richard Kita, Treasurer, Petersburg ia . " ° : F OP et em ee ee Nem ee ae eNO watt al ada el aN on ‘that the community of Kake pur certainly be the conumnit system by the EDA. ae eptomber 4, 1972 The total need for Kake at this time, as far as kilowatts are’ concerned, is probably in the neighborhood of 1500 KW. It includes the iggging camps, crab cannerics, salmon can- nery, the school, and the businesses in the community. An additional thirty new homes are to be built early in 1973 and completed in late 1973 under a Turnkey III Housing Project. ‘he community is also planning the installation of an ind@ustrial park adjacent to the salmon cannery and will include a large dock, The vower plants end a cold storage will work in a tanduna with the cannery operation. The community's main stay as far as economy is concerned has been the fish industry. We have entered an era where the fishing industry has begun to take a.second position to a . logging industry in Alaska. The conmunity is made up of primarily Tlingit people Ee has plans from the Corp of Army engineers for a float harbor which will cost four million dollars to be constructéd as soon as Congress makes an appropriation. It is ny feeling that could use the diesel ganerators ‘that you will be makin available. It is my uhdeyecanciae the building is include we most certainly could use the building to house ie -cenene tors. At present a total electrical expansion plan is being drawn up -by PHAC through tha BIA in Denver, Colorado, and should be - completed very shortly. It is my understanding from talking with Mr. Don Anderson with the BIA that these generators would work beautifully for the Kake plant. I sinc erely hop you would be amenable to releasing these to the community of RREEE * In- 1971 and 1972 well over 1,5 million dollars was spent in installing one of the most sophisticated sewer and water systems in Xake by the Public Health Service and the water fn, Sincerely yours, Clarence J President 4’ x Whompson, Aron Directer, BIA Parson, BIA’ Gravel cc: kadake, Jake | tlingit & haida regional housing authority ROBERT W. LOESCHER Executive Oirector | February 4, 1974 Alaska Electric Light & Power Co. 134 Franklin Street Juneau, Alaska 99801 Atten: Hugh McCouley , Dear Mr. McCouley: The Tlingit-Haida Regional Housing Authority is involved with ) bullding Turnkey III houses for low-income families in South- } eastern Alaska. * As you are probably aware, many of the villages have a real power problem - inadequate generation facilities and substand- ard (and very old) distribution systems is putting it quite mildly. ‘ In order to provide adequate and reliable power to our houses, we are attempting to assist the villages up-grade both their Beneration facilities and their distribution systems. By neces- sity, we must minimize the cost and are currently exploring pos- sible sources for material. Mr. Guinn of this office, talked with you today and informed me that Alaska Electric Light & Power Co. has used transformers, 2400/4160 - 120/240 volts, ranging in size from 5 kva to 75 kva. We are very interested in obtaining these transformers and would like from your office a listing of the quantities, the kva's and the respective costs. 4 4 é t cANK SEE — Chairman, Hoonah CYRIL. GEORGE — Ist Vice Chairman, Angoon ROBERT SANDERSON — Treasurer, Hydaburg CAROLYN POWELL — Secretary, Yakutat BERTHA CAVANAUGH — Member at Large, Kake 625 VILLAGE STREET JUNEAU, ALASKA 99801 TELEPHONE (907) 506-2192 ~ Hugh McCouley Nic February 4, 1974 Page two We would also appreciate, Mr. McCouley, any other "low-cost" leads for material that you might pass on to us. Thank you. Sincerely, Robert W. Loescher Executive Director CJG:RWL:cmg ‘ ALASKA ELECTRIC LiCLiIT AND POWER Co. Chg 134 N. FRANKLIN STREET : h . JUNEAU, ALASKA 99801 (907) 566.2222 February 21, 1974 - : EGEIVE FEB 22 1974 . Tihaglt-Lalda Regional Beusszg Tire) 025 Village Stroct Mr. Robert Loescher dunoau, Alaska 99808 Executive Director 525 Village Street Juneau, Alaska 99801 Dear Mr. Loescher: We can understand your problem in trying to help in up-grading the generation and distribution system of the villages in Southeastern. I have made several trips to Hoonah on my own time, staked out some of their lines, ordered material. Also have given them advice by telephone at all hours of the day and night and agree with you on the needed work. We have all kinds of material including transformers from 5 to 100 Kva. These transformers sell for $5.00 per Kva and are equal to about 1/2 price. voatalf Our transformer stock changes from day to day as we also use out of this stock, but we always have some available. Last March we acquired all of the A. J. properties including the generating plants to substations with 2400 volt equipment that will be retired as time permits. This material is in good condition and would have plenty of capacity for your requirements. It would be.wise to take a look at what we have in the material line. I have not made any inquiry as to 2400 equipment but thede shoyld’ be as alot of it available as most utilities are retiring equipment of this voltage. If you have any requirements I'11 try and find it for you: If I can be of any help, kindly let me know. Very truly yours, , Hugh Macaulay Engineer HM: bks MEMORANDUM DATE ©: May*30, 1974 TO : Robert W. Loescher x0 ve FROM : Charles J. Guinn #7 SUBJECT: Purchase of Electrical Material for Kake Please authorize issuance of a purehase order number to Anixter- Pruzan so that they can finalize the material list and costs for the electrical material needed at Kake for our Turnkey III houses. : The preliminary total cost is $8,488; this figure might vary by a few dollars when the list is finalized. After they receive the P.O. number, Anixter-Pruzan will send us the new material list and cost for us to type up on our purchase order prior to payment. Talked with Mr. Clark Boston today, and he said that he would secure for Kake a $10,000 grant for the electrical project after the lst of July. Hopefully, we can use this money to pay for the material & Freight & look else where for the installation cost. CJG:cemg tlingit & haida regional housing authority ROBERT W. LOESCHER dune 7, 1974 Executive Director Southeastern Electric Co., Inc. 918 Water Street Ketchikan, Alaska 99901 “age. Attention: Mr. William Lattin Dear Mr. Lattin: Per our phone conversations, I am sending you a copy of the material list and the plot plan for our proposed distribution system for our 31 units of Turnkey III houses at Kake, Alaska. : We would like from you a price quote with the cost breakdown for your ; company to install the system; also, your estimate of the time required to ae do the job. As I mentioned, Bill, the material has been ordered and should be on site about the Ist of July. We would hope that the installation could commence : about July 8. : Also, I would appreciate hearing whether the Union has granted dispensation allowing Moore Construction to blast the pole holes. Since his outfit is on site and willing to do the job, this would expedite the project immensely . Thank you. Sincerely , TLINGIT-HAIDA REGIONAL HOUSING AUTHORITY Charles J. Guinn Senior Inspector encls. ~ ‘FRANK SEE — Chairman, Hoonah CYRIL GEORGE — Ist Vice Chairman, Angoon ROBERT SANDERSON — Treasurer, Hydaburg CAROLYN POWELL — Secretary, Yakutat BERTHA CAVANAUGH — Member at Large, Kake 525 VILLAGE STREET JUNEAU, ALASKA 99801 TELEPHONE (907) 566-2192 ELEctRICAL CONTRACTING 918 Warer Street , REFRIGERATION ~- SALES - SERVICE a” ie ee me: Moo Tlingit & Haida Regional June 13, 197) Housing Authority 525 Village Street Juneau, AK 99801 Mr. Charles J. Guinn: Receipt is acknowledged of your letter and plans for the distribution system for your 31 units of housing at Kake, Alaska. I have contacted our business agent and he will not allow Moore Construction Company men to blast the holes. The reason for this is that the I.B.E.W. has powdermen available to do this work. This causes no problem as we can blast the holes when we start, our proposal includes this work. Following is the breakdown of our proposal. 16 Rock Holes & poles in place @ $550 ea. $8,800. , 2 Primary Dead-end Units @ $185 ea. 370. 9 Primary Tangent Units @ $18 ea. 1,332. h Primary Corner Units @ $167 ea. 668. 7 Rock Anchor Units @ $168 ea. lpl7roé 1 Overhead Guy Unit 3. 6 Down Guy Units @ $9) ea. 5 a 31 Service Assembly at $48 ea. 1,488. 7 Secondary installation per span @ $110 ea. 770. Transformer Assembly @ $20 ea. 1,680. 5000 ft No. 2 Copper Primary @ .90/ft 4,500. Total Price of Proposal: $21,446. The above price is for labor and equipment rental. only. All material will be furnished by the owner as you show in your material list. I noticed you have no No. 2 Copper Conductor on this list. As copper is rather scarce, may I recommend you get your order in as soon as possible. ae ELECTRIC Co. Inc. " PHons 225-6678 ExectricaL CONTRACTING 918 Water Street ‘ : REFRIGERATION - SALES - Sravice Kercurkan, ALASKA 99901 Tlingit & Haida Regional Housing Authority June 13, 197) Page Two. ‘We will be able to start around the first of July and can Re epestyist “complete the work within forty-five days. As you mentioned, - you will provide board and room for tha crew at no cost to us. We anticipate having a five man crew to complete this job in the specified forty-five day time period. If the above quotation is satisfactory to you, please contact me as soon as possible and I will make the necessary arrange- ments to get men and equipment on the job when your material arrives, : Sincerely, fy? + a nr Aelia bis William Lattin President WL/sg ROBERT W. LOESCHER Executive Director June 24, 1974 City Electric Juneau, Alaska 99801 Attention: Mr. Doug Trapp Dear Mr. Trapp: I am sending you a copy of the material list and the plot plan for our proposed distribution system for our 31 units of Turnkey III houses at Kake, Alaska. ) If your company is interested, we would like your price quote . with the cost breakdown to install the System; also, your estimate of the time required to do the job. The material has been ordered and should be on site about the lst of July. We would hope that the installation could commence about July 8. Thank you. Sincerely, TLINGIT~HAIDA REGIONAL HOUSING AUTHORITY c Charles J. Guinn Senior Inspector Enclosure CJG:cmg RANK SEE — Chairman, Hoonah CYRIL GEORGE — Ist Vice Chairman, Angoon ROBERT SANDERSON — Treasurer, Hydaburg CAROLYN POWELL — Secretary, Yakutat BERTHA CAVANAUGH — Member at Large, Kake 528 VILLAGE STREET JUNEAU, ALASKA 99601 TELEPHONE (907) 586-2192 Brags MOORE CONSTRUCTION CO., INC. Office 320 Carlanna - Mail Box 1122 KETCHIKAN, ALASKA 99901 . CA 5-2925 : POSAL SUBMITTED TO 25 Village St. » STATE ANO ZIP CODE uneau, Alaska WITECT DATE June 5, 1974 DATE OF PLANS JOB PHONE Se 'e hereby submit specifications and estimates for: ttention: Mr. Charles Guinn We are pleased to submit the following firm bid for drilling And blasting approximately 21 Power poles in Kake, Alaska. 21 @ $150.00 = $3,150.00 ~ (Proposal withdrawn June 15, 1974) nn ee We Propuse hereby to furnish material an id labor — complete in accordance with above specifications, for the sum of: doll ca ‘ment to be made as follows: SAS ae ee) a a rial is guaranteed to be as specified. All work to be completed in a workmantike iner according to standard practices. Any alteration or deviation from above specifica. Authorized K + i Ki “~ § Involving extra costs will be executed only upon written orders, and will become an ‘Signature a charge over and above the estimate. All agreements contingent upon strkes, accidents ‘elays beyond our control. Owner to carry fire, tornado and other necessary insurance, Note: This Proposal may be workers are fully covered by Workmen's Compensation Insurance. wi ithdrawn by us if not accepted within__-____ gays, rreutsire nf Werseewcel _ tlingit & haida regional housing authority ROBERT W. LOESCHER Executive Director June 19, 1974 Moore Construction Co. Inc. P.O. Box 112 Ketchikan, Alaska 99901 Attn: Des Moore: Dear Mr. Moore: - Your bid of $150.00 per hole to drill and blast the power - pole holes for the electrical distribution system to our Turnkey III houses at Kake is hereby accepted. Please pro- ceed at your earliest possible convenience. Enclosed is the distribution plot plan showing the pole loca- tions. Wherever possible, the holes must be located on the a edge of the road ‘right-of-way or along the lot lines. The power poles are 40 ft., class 4, and have a butt diameter of about 13 inches. Since 7 \ v EY, Yoescrer Director cc: Mayor of Kake Moore Construction Co., Kake, Alaska Attn: Leo Gellings ~ RWL: rw \ FRANK SEE — Chairman, Hoonah CYRIL GEORGE — Ist Vice Chairman, Angoon ROBERT SANDERSON — Treasurer, Hydaburg CAROLYN POWELL — Secretary, Yakutat BERTHA CAVANAUGH — Member at Large, Kake 525: VILLAGE STREET JUNEAU, ALASKA 99801 TELEPHONE (907) 586-2192 © ang DATE : June 24, 1974 So TO : For the Record f Ne FROM: : Charles Guinn SUBJECT : Revised Estimated Cost and Time Frame to Extend Kake's Electrical Distribution System to serve the Turnkey III Housing Units MATERIAL i Poles, transformers, hardware fs wire, etc. $10,000 FREIGHT: 1,500 Cost to Blast 16 poles holes: $150/hole times 16 holes 2,400 UNION SCALE LABOR: Work to be done by Southeast Electric on a "time & material" basis. The cost will be $25/hour/man for all straight time and $50/hour/man for all double time. All time over 8 hour/ day will be double time. Eight hours on Saturdays will be time and one-half. (40 hrs + 12 hrs + 24 hrs) x 3men x $25/hr x 2 wks 11,400 REGULAR LABOR: Two men for 2 days @ 10 hrs/day @$6.00/hr. . 240 BACKHOE RENTAL: 10 hours @ $30.00/hr. 300 ROOM & BOARD Two men for 14 days @ $20/day 560 Memo for the Record Page 2 Re: Kake Electrical Distribution TRAVEL: Two round trips into Kake from Juneau 300 WIRE: - Already purchased and and stored in Juneau 2,600 TOTAL $29,300 If $20,000 RDA grant, $29,300 less $20,000 = $9,300. $9, 300/31 = $300/unit. TIME FRAME: May 29, 1974 - mat'l ordered. July 5, 1974 - mat'l arrived on site July 15, 1974 - Moore Construction to begin blasting pole holes. July 19, 1974 - Moore Construction done blasting pole holes. July 22, 1974- S.E. Electric to begin pole erection & primary line construction. August 3, 1974 - S.E. Electric done done with pole erection and primary line construction. APPROVED: Robert W. Loescher Executive Director CG: lg July 23, 1974 Southeastern Electric Co. Inc. 9 mi Glacier Hwy ; Juneau, Alaska 99801 Attention: Mr. Karl Niemt Dear Mr. Niemi: This authorizes your company to proceed immediately to install the electrical distribution system and service drops to the 31 units of Turnkey III Housing at Kake, Alaska. It fs understood that the Tlingit-Hatda Regfonal Housing Authority will pay for your cost for the project plus 15% overhead and 10% profit upon completion of the job and receipt of Southeastern Electric's cost invoices, The VG estes Regional Housing Authority will fidrnish camp facilities, transportation to and from Kake, a pick-up truck and a backhoe for your linemen. Mr. Charles Guinn of this office will coordinate the project, monitor the time and attendence and wil} conduct a final inspection, Sincerely, Robert W. Loescher Executive Director Signed Southeastern cLlec trfc RWL:CUGi rw . -_- Sia ELECTRIC Co. Inc. 918 Warsa Sraser 3 Reruazeation - Saiz - Seavice Kercwman, Atasxa 90001 September 4, 1974 Tlingit Haida Regional Housing Authority 525 Village Street Juneau, Alaska 99801 Gentlemen: Following is a breakdown of billing for electrical work on: . 3l_units of Turnkey Housing, Kake, Alaska: Total man hours on project: 863 * July 22nd through August 18th, 1974 Dlassification ‘ Hours Cost superintendant, Straight Time | 4 hrs 18.81 $ 75.24 Foreman Straight Time 120 hrs 17,25 2,070.00 Time & Half 16 hrs 25.87}; 414.00 Dowble Time 834; hre 34,50 — 2,850.75 Journeyman Straight Time 120 hrs 15,78 1,893.60 Time & Half 16 hrs 23.67 378.72 Double Time 834, hrs 31.56 2,635.26 Apprentice ; Third Period Straight Time 120 hrs 12.23 . 1,467.60 Time & Half 16 hrs 18,34} 293.52 Double Time 83 hrs 24.46 2,030.18 Groundman | Straight Time 108 hrs 13.40 1,447.20 | ‘Time & Half 16 hrs 20.10 321.60 Double Time 77 hrs 26.80 2,053.69 Total Labor Cost: $17,971.27 Plus 15% Overhead 2,695.69 $20,666.96 Plus 10% Profit 2,966.70 Aotal Labor Charge, this period: $22 ,.783.. 66 sol and Small Fquipment Rental 863 hrs 1,00 863.090 863.00 Ferry Ticket, Backhoe Juneau to Kake, #408134, copy enclosed 51.00 Total Billing Through August 18th, 1974: $23,647.66 TF YOU HAVE OMraTToNTs PET. rRER TQ eorAeT mite AmeTew oman var tlingit & haida regional housing authority ROBERT W. LOESCHER Executive Director ‘duly 16, 1974 Chris meee Inc. 2730 Westlake Ave. North Seattle, Washington 98109 Attn: Mr. Gordon L. Irvine RE: 160 Unit Turnkey III Housing Program in Southeast Alaska Subject: Electrical Distribution to the Turnkey III Units at Hoonah, Angoon and Kake. Dear Mr. Irvine: “*)\ Listed below”for your information is the time frame - both ; ' completed and scheduled - for construction of the electrical distribution systems to service ‘the Turnkey III houses at Hoonah, Angoon, and Kake. .Hoonah: June 30, 1974: System completed and houses on the line. Angoon: July 3, 1974; Construction began using a T-HRHA foreman and local labor. July 10, 1974: Power to first 13 houses. July 18, 1974: System completed and houses on the line, ; Kake: July 5, 1974: Material arrived on site. July 15, 1974: Moore Construction to begin blasting pole holes. July 19, 1974: Pole holes blasted and Cleared. July 22, 1974: Southeastern. Electric to begin pole erection and primary line construction. August 3, 1974: Pole erection and primary line construction completed, ~ ANK SEE — Chairman, Hoonah CYRIL GEORGE — Ist Vice Chairman, Angoon ROBERT SANDERSON — Treasurer, Hydaburg CAROLYN POWELL — Secretary, Yakutat BERTHA CAVANAUGH — Member at Large, Kake $25 VILLAGE STREET JUNEAU, ALASKA 99001 TELEPHONE (907) 596-2192 tlingit & haida regional housing authority ROBERT W. LOESCHER Executive Director August 22, 1974 City Council City of Kake Attention: Honorable Frank Gordon Dear Mayor Gordon: As you are probably aware, the Tlingit-Haida Regional Housing Authority is working with various communities and State and Federal agencies in an attempt to establish reliable electrical utility systems in a number of our ~ Southeast Alaskan villages. The major problem, of course, is money. One of the avenues we are exploring is the establishment of an REA (Rural Electrification Administra- tion) Co-operative in Southeast Alaska to serve communities such as yours. This Co-operative Would be similar to the Alaska Village Electrification Co-operative (AVEC), but with the advantages of power rates and more local involvement. . Kewe® We feel that if initial financing can be arranged through REA to (1) install new generation facilities and a new distribution system, (2) pay for training and administrative overhead, and (3) help finance the maintenance and operation costs for the first year, the venture would be financially sound and profitable. To determine whether the undertaking would be economically practical and financially feasible, we have requested REA to conduct a comprehensive power study in Hoonah, Kake, Klawock, Klukwan and Angoon, ~ FRANK SEE — Chairman, Hoonah CYRIL GEORGE — Ist Vice Chairman, Angoon ROBERT SANNFRSON — Treasurer, Hydaburg * CAROLYN POWELL — Secretary, Yakutat BERTHA CAVANAUGH — Member at Large, Kake 525 VILLAGE STREET JUNEAU, ALASKA 99801 TELEPHONE (907) 586-2192 BS oe City Council City of Kake ~2- August 22, 1974 To expedite their action and to enhance our chances of a favorable response, we ask that your City Council adopt the attached resolution and return it tous. We, in turn, will forward the resolutions to REA in Washington, D.C. The Authority will keep you posted as to our progress. An initial study has been done by our staff and has been forwarded to the Southeast Agency ~ Joe Wilson, for government printing. This will be advanced to you hopefully by September 15, 1974. If you have any questions, please call us immediately. sneerey , TLINGIT+HAIDA REGIONAL HOUSING AUTHORITY RWL: clm Attachment eye pe eee ce RESOLUTION NO. ENTITLED DEVELOPMENT OF A SOUTHEAST ALASKA ELECTRICAL COOPERATIVE WHEREAS, the City of Kake realizes that its existing generation and distribution systems are very inadequate and substandard and virtually not systems at all, and WHEREAS, the technical staff of the Tlingit-Haida Regional Housing Authority and the Bureau of Indian Affairs recommend completely new generation facilities and a new distribution system, and WHEREAS, a reliable electrical utility is vital and necessary, not only for everyday living, but for housing and industry development: and expansion, and WHEREAS, the City of Kake is not financially able to undertake an electrification project of this magnitude and scope, and WHEREAS, a Rural Electrification Administration sponsored co-operative could make reliable power a reality in rural Southeast Alaska, now " THEREFORE, BE IT RESOLVED, that the City of Kake hereby endorses the Tlingit and Haida Regional Housing Authority's efforts to establish an REA sponsored Rural Southeast Alaska Co-operative, and hereby respectfully requests the Rural Electrification Administration to conduct a feasibility study towards this end. a PASSED AND ADOPTED by a quorum of the City Council of Kake, Alaska, this day of a vote of yeas and nays. , 1974, by Mayor _ City of Kake (SEAL) City Clerk a eer \ “ UNITED STATES GOVERNMENT OPTIONAL FORM 110, 18 Wo10-108 Memorandum TO : Southeast Superintendent FROM : Area Plant.Management Officer subjtcr: Status Report ~ Noowan Kan, Kraworn CK wae ) As the new Superintendent for Southeast Alaska, you will be interested in a brief status report to familiarize your office with projects we are involved with in your area. Following each community listed below is a description of the project and our accomplishments. . ek Seemne A. HOONAH - Electrical Distribution & Generation Rehabilitation . On February 17, 1970, Don Anderson and Charles Guinn dJr., went to Hoonah at the request of Mayor Frank See through the Southeast Superintendent. Their purpose was to examine the City's existing electrical distribution system, the new powerhouse and new Giesel electric sets, the new mutual help housing project needing power, and to consult with the Mayor about Plant Management providing “*" engineering services to the City. @hey found Hoonah in direneed of (1) a completely new electrical distribution system, (2) improved generation facilities, and (3) immediate service to the 15 new homes which were (then) nearly completed. Since that time Plant Management has, with the help of Tom See and Dave Pearson from Mt. Edgecumbe, provided material and manpower and (1) completed an extension of the existing power lines and tied in the 15 new homes and (2) replaced transformers, insulators, tightened connections, and generally provided interim improvements (prior to an eventual new system) to minimize the overload situation and other dangerous conditions. We also requested PMEC's assistance and they undertook the. task of designing (1) a completely new city-wide distribution system and (2) a new powerhouse installation. The latter design incorporated two 500 KW Sterling electric sets (previously acquired by Hoonah from surplus sources through Senator Gruening) and an addition to the powerhouse building. PMEC also provided itemized material lists and cost, estimates to supplement the 27 sheets of design plans. The finished package reached our office, and subsequently the City of Hoonah, on February 4, 1971. The total. cost for the project, including material, labor, contingency and a locatien factor, was estimated at $432,113.00. This. ended Plant Management's comnitinent to the City of Hoonah. EY B. KAKE ~ Electrical Dis The City of for a loan to They dia not (do not) have funds to Pay 4 private cngineering firm to Prepare 2 reliminary design, and, again through the Southeast Superintendent, we were SE ae i ert esi Cc. new stand-by, 150 KW, 2400 Volt generator. He came up with a workable, low-cost plan (which was what the Canary wanted), and sent the completed design to Kake a fow days after his return to Juneau. Subsequent conversation with Mayox Carlson discbsed that the design had been implemented and is working fine. KLANOCK - Survey of Electrical System At the request of Mr. Frank Peratrovich, President of the Klawock Cooperative Association, through the Southeast Superintendent, Charles Guinn Jr. of Juneau Plant Management visited Klawock ‘on "May™194-- 1970. ‘ His purpose was twofold: first, to survey the existing electrical system and make recommendations for improvements, and second, to check into the feasibility of the city establishing its own power system, Currently, the Oceanside Packing Co. (owncd by The Klawock Cooperative Association) furnishes power to city users; both the city and the cannery are interested in having the City own, operate and ‘maintain its own utility system. “ee Without going into great detail, Mr. Guinn found that a completely new distribution system is necded. Reasons are as follows: The existing clectrical system was installed about 30 years ago, and except for additons and minimal Operational maintenance ncth inghas been done to up-date the system. Shell-rot is evident on the poles and crossarms, downguys have loosened (possibly from the rotting of the deadien), almost all primary and secondary wire is too small for even the existing loads, much of its insullation is weathered and frayed, transformers have corroded and show signs of overheating and leakage, service drops are undersized and deliver only 110 volts to the residences, and service entrances consist simply of two wires run through a hole in | a wall to a panel containing only individual circuit fuses. In short, the system has slowly deteriorated to a potentially dangerous level. According to Mr. Lars Nerland, cannery manager at Klawock, if a new village electrical system is realized, the cannery would be willing vo buy power from the village. They would, however, (and Mr. Nerland was quite emphatic about this), keep their existing facilities (including generation equipment, fuel storage tanks, etc.) intact for stand-by purposes. This means that, if the City of Klawock goes into the power business, thoy must: 7 D. 1. Install a completely new distribution system. 2. Obtain their own generators, complete with control panels, switchgear, and other related equipment. 3. Build a powerhouse for the generation equipment. Possibly one of the deserted buildings might serve this purpose. ‘4. Obtain bulk oil storage tanks. 5. Hire a full-time trained operator to be in charge of plant operation. Perhaps he could also maintain the distribution system, read. kilowatt-hour meters, keep records, etc.. — asi Details including distribution voltages, transformer and pole data, existing yeneration facilities, existing fue) storage, existing and future loads (for both summer and winter-with and without the cannery as a customer), etc., are covered in Charles Guinn's trip report on file in Plant Management's office. Copies were sent to the Southeast Superintendent, the Division of Credit and Finance, and the Division of Tribal Operations. Included was a cover memo by Mr. Don Anderson with suggestions to expedite action. Rr KhuKwan -"Electrical Power Survey — On July 1, 1970, our office was requested to assist Klukwan choose a diesel electric set to provide the village with prime power. Don Mitchell of PMEC (who was in the area) and Charles Guinn Jr. traveled to Klukwan in Early July and spent a day looking over Klukwan's. existing system, making power estimates, consulting with Jocal leaders on possible future loads, and drawing a plot plan of the existing distribution system. After returning to Juneau, Charles Guinn submitted a short report to the Southeast Superintendent outlining (1) Klukwan's existing and future power requirements, (2) reasons for buying a low voltage unit, (3) a list of 4 diesel electric sets which would fit Klukwan's needs, and (4) a brief cost comparison between two of the units under consideration. I believe that the Southeast Superintendent sent this information to Klukwan for any action they might want to take. Ord nerdd CC las Andes! @ Area Plant Management Officer g¢(/ 2 ft to OrTioNaAL FORM No, 19 MAY tena ebITION O34 Femn (4 CPR) H01-11.8 hart UNITED STATES SOVERNMENT Memorandum Native Agency Director Southeast Alaska Agency VO fg (ih mel Ai Spee eae 7 h G. Wilson Attachment & ' — By U.S. 5, avings Bonds Regularly on the Payroll §, 4vings Plan Lad Chilkat Indian Village Electrical Fuel $1,100 per m. x12 = Maintenance Haines power plant man each month @ $150.00 Operators Salary *2 hours a day @ $5.00 per hour Bookkeepers Salary 8 hrs. each month @ $3.00 per hour Electric Set Depreciation(2 plants. 10,000 ea. 7 yrs) Powerhouse & Distribution depreciation Repair & Upkeep of Powerhouse Materials for Upkeep of Distribution System Major Overhaul to Electrical Sets Repair & Upkeep to Switch gear & Accessories a tS $13,200.00 1,800.00" 3,650.00 1 RIS 288.00 3,856.00 1,500.00 250.00 250.00 1,200.00 250.00 $ 25,244.00 User Cost: Village - 32 homes Lad Dée Dick Hotch q sident Fad. we ff bo Gidet a AK oA iW \ oe BIA-§ Pass) @ $15 ea. per mo. x 12 mo. BIA School $1,624.00 per mo. x 12 Total cost Sipe repent S. rm 5 9 es 7 $ 5,760.00 19,484.00 $25,244.00 MET Erie, Aas « 4 KReus ws 4es (uN VAP teen w bs aoe ) i . : | i ele v fae + a i t ! i =: i Tere j oy a +— s s, m7 t pee fe ee ee eT eae Been goa Pre ees ie ae Lea cl aa nar. ~ y = os + ' ! a | cs Hi _] Ror I ik = aw FE ——--—- : + + + T t oe + ees ol fe. j_ i : t | — 4 a a amas Se ee | -€ ~ | | aw SN | | = a ; 1 al t t = : — t RS test BESS ro ; t y= Q ~ & => Z es. | 1 SSS i SS < — Wy ~ y _ 1 aa i ae RCO a” Bd 7) : tlingit & haida regional housing authority EN ROBERT W. LOESCHER Executive Director February 4, 1974 a 1 er RT Sie: Alaska Electric Light & Power Co. 134 Franklin Street Juneau, Alaska 99801 Atten: Hugh McCouley Dear Mr. McCouley: Sennen The Tlingit-Haida Regional Housing Authority is involved with building Turnkey III houses for low-income families in South- ~ eastern Alaska. As you are probably aware, many of the villages have a real power problem - inadequate generation facilities and substand- ard (and very old) distribution systems is putting it quite mildly. ‘In order to provide adequate and reliable power to our houses, we are attempting to assist the villages up-grade both their Generation facilities and their distribution systems. By neces- sity, we must minimize the cost and are currently exploring pos- sible sources for material. Mr. Guinn of this office, talked with you today and informed me that Alaska Electric Light & Power Co. has used transformers, 2400/4160 - 120/240 volts, ranging in size from 5 kva to 75 kva. We are very interested in obtaining these transformers and would like from your office a listing of the quantities, the kva's and the respective costs. "RANK SEE — Chairman, Hoonah CYRIL. GEORGE — Ist Vice Chairman, Angoon ROBERT SANDERSON — Treasurer, Hydaburg CAROLYN POWELL — Secretary, Yakutat BERTHA CAVANAUGH — Member at Large, Kake 625 VILLAGE STREET JUNEAU, ALASKA 99801 TELEPHONE (907) 586-2192 um’ Hugh McCouley ; February 4, 1974 Page two We would also appreciate, Mr. McCouley, any other leads for material that you might pass on to us. Thank you. Sincerely, Robert W. Loescher Executive Director CJG:RWL:cmg "low-cost"! ~ ames ALASKA ELECTRIC LIGHT AND POWER CO. 134 N. FRANKLIN STREET JUNEAU, ALASKA 99801 (907) 586.2222 February 21, 1974 ECEIVE FEB 22 1974 - Tikogt-Calds Regional Bourg Autiatte Mr. Robert Loescher 025 Village Stroot Executive Director dunaau, Alaska 99804 525 Village Street Juneau, Alaska 99801 Dear Mr. Loescher: We can understand your problem in trying to help in up-grading the generation and distribution system of the villages in Southeastern. I have made several trips to Hoonah'on my own time, staked out some of their lines, ordered material. Also have given them advice by telephone at all hours of the day and night and agree with you on the needed work. We have all kinds of material including transformers from 5 to =es""100 Kva. These transformers sell for $5.00 per Kva and are equal to about 1/2 price. + ihe shea a Our transformer stock changes from day to day as we also use out’ of this stock, but we always have some available. Last March we acquired all of the A. J. properties including the generating plants to substations with 2400 volt equipment that will be retired as time permits. This material is in good condition and would have plenty of capacity for your requirements. It would be. wise to take a look at. “TSastses-what we have in the material line. a I have not made any inquiry as to 2400 equipment but there shoyld’ be * alot of it available as most utilities are retiring equipment of this voltage. If you have any requirements I'll try and find it for you. If I can be of any help, kindly let me know. Very truly yours, Engineer HM: bks ROBERT W. LOESCHER Executive Director July 22, 1974 oA TT ETT: 2 City Council City of Klukwan Klukwan, Alaska 999827 Attn: Mayor Richard Hotch Dear Honorable Mayor Hotch: As you are aware, the Tlingit-Haida Regional Housing Au- pommrl thority will be building 23 new Turnkey III homes in your com- For the project to be successful, both from a construction and occupancy standpoint, a necessary requirement is to es- tablish electric power to and at the housing site. If, for financial or technical reasons, your community is un- able to construct such a distribution system, the Tlingit-Haida . Regional Housing Authority is Prepared to assist. We can ~ Provide the design, order the material, provide technical supervision during construction, and offer some financial assistance. We have talked with the Rural Development Assistance Division of the Department of Community and Regional Affairs and they are willing to provide your Community with a RDA grant to help purchase the material, pay for the freight, etc. Enclosed is a copy of the estimated cost to extend your sy- stem to serve your new homes. It itemizes the total cost of the project and shows which costs will be paid for with the RDA grant money and which will be paid for by the Tlingit- Haida Regional Housing Authority. Le \ c ovrected “RANK SEE — Chairman, Hoonah CYRIL GEORGE — Ist Vice Chairman, Angoon ROBERT SANDERSON — Treasurer, Hydaburg CAROLYN POWELL — Secretary, Yakutat BERTHA CAVANAUGH — Member at Large, Kake $25 VILLAGE STREET ~ JUNEAU, ALASKA 99801 TELEPHONE (907) 586-2192 ) % July 22, 1974 Mayor Hotch Page 2 Also enclosed is an RDA grant application form. We would appreciate it if your City Council: would meet, approve the proposal, provide the information and signatures where re- quired, and return the form to us. We will then submit i tne completed application form to RDA along with a distribu- etion design and material list. nreeerecerreangers 7: Mayor Hotch, time is very limited if we are to proceed this fall. We are doing everything possible to move the program ahead and would appreciate your prompt attention in the matter outlined above. Thanking you in advance. Sincerely, ~ essesteaese TLINGIT-HAIDA REGIONAL HOUSING AUTHORITY Robert W. Loescher Executive Director Encls. RWL:rw eX x Af. MEMORANDUM Date : June 27, 1974 To : For the Record s ; we From : Charles J. Guinn “Subject: Estimated Cost to Extend Klukwan's Electrical Distribution System to Serve the 23 Units of Turnkey III Phase II houses. Material: Poles, Transformers, Hardware, Wire $10,000 Etc.. Freight: . : . te 1,500 Union Scale Labor (Working 6 days/week 9 hours/day): Line Foreman: C’ Straight time - 15 days @ 8 hours/day @ $17.25/hour 2,070 Overtime: 3 days @ 8 hours/day plus 18 hours, all at $25.89/hour 1,605 Journeyman Lineman: Straight time - 15 days @ 8 hours/day @ $15.78/hour Overtime: 3 days @ 8 hours/day plus 18 hours, all at $23.67/hour 1,468 Regudar Labor: Ten (10) each for 18 days @ 9 hours/day @ $2.50/hour 4,050 Backhoe & Operator: Five (5) days @ 8 hours/day @ $30.00 hour 1,200 Per Diem: c Two (2) men for 21 days @ $30.00/day 960 “enmeseaarmeg ss Klukwan Electrical June 27, 1974 Page 2 Travel: Two (2) round trips into Klukwan $ 300 From Ketchikan or Juneau Total 25,047 “as Contingency: , 24505. ere 10% of 25,047 Grand Total: 27,552 tlingit € haida regional housing authority ROBERT W. LOESCHER Executive Director August 22, 1974 Village Council Village of Klukwan P. O. Box 496 Haines, Alaska 99827 Attention: . Dick Hotch, President Dear Mr. Hotch: a 3 re As you are probably aware, the Tlingit-Haida Regional Housing Authority is working with various communities and State and Federal agencies in an attempt to establish reliable electrical utility systems in a number of our Southeast Alaskan villages. The major problem, of course, is money. One of the avenues we are exploring is the establishment of an REA (Rural Electrification Administra- tion) Co-operative in Southeast Alaska to serve communities such as yours. This Co-operative would be similar to the Alaska Village Electrification Co-operative (AVEC), but with the advantages of power rates and more local involvement. N Lewes We feel that if initial financing can be arranged through REA to (1) install new generation facilities and a new distribution system, (2) pay for training and administrative overhead, and (3) help finance the maintenance and operation costs for the first year, the venture would be financially sound and profitable. To determine whether the undertaking would be economically practical and financially feasible, we have requested REA to conduct a comprehensive power study in Hoonah, Kake, Klawock, Klukwan and Angoon. owe * FRANK SEE — Chairman, Hoonah CYRIL GEORGE — Ist Vice Chairman, Angoon ROBERT SANNFRSON — Treasurer, Hydaburg ” CAROLYN POWELL — Secretary, Yakutat BERTHA CAVANAUGH — Member at Large, Kake §25 VILLAGE STREET JUNEAU, ALASKA 99601 TELEPHONE (907) 586-2192 Village Council Village of Klukwan —2- August 22,1974 | To expedite their action and to enhance our chances of a favorable response, we ask that your Village Council adopt the attached resolution and return it to us. We, in turn, will forward the resolutions to REA in Washington, D.C. The Authority will keep you posted as to our progress. An initial study has been done by our staff and has been forwarded to the Southeast Agency - Joe Wilson, for government printing. This will be advanced to you hopefully by September 15, 1974. - ween eeocrenante If you have any questions, please call us immediately. cageneih ; en REGIONAL HOUSING AUTHORITY ic t Robert W.Loeseher Executive Djrector RWL: elm Attachment RESOLUTION NO. —— ENTITLED DEVELOPMENT OF A SOUTHEAST ALASKA ELECTRICAL COOPERATIVE WHEREAS, the Village of Klukwan realizes that its existing: ~-evreme se: generation and distribution systems are very inadequate and substandard and virtually not systems at all, and WHEREAS, the technical staff of the Tlingit-Haida Regional Housing Authority and the Bureau of Indian Affairs recommend completely new generation facilities and a new distribution system, and WHEREAS, a reliable electrical utility is vital and necessary, - not only for everyday living, but for housing and industry development: and expansion, and WHEREAS, the Village of Klukwan is not financially able undertake an electrification proj éct of this magnitude and scope, and WHEREAS, a Rural Electrification Administration sponsored co-operative could make reliable power a reality in rural Southeast Alaska, now . THEREFORE, BE IT RESOLVED, that the Village of Klukwan hereby endorses the Tlingit and Haida Regional Housing Authority's efforts to establish an REA sponsored Rural Southeast Alaska Co-operative, and hereby respectfully requests the Rural Electrification Administration to conduct a feasibility study towards this end. PASSED AND ADOPTED by a quorum of the Village Council of Klukwan, Alaska, this day of » 1974, by a vote of yeas and : nays. President Village of Klukwan RET ROO NER G5 Clerk 4 IN REPLY REFER TOr UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF INDIAN AFFAIRS Juneau Area Office P. O. Box 3-8000 0B Juneau, Alaska 95801 October 2, 1972 Memorandum To: Commissioner of Indian Affairs Attention: Director, ITAP From: - Area Director Subject: Proposed Electrification Program - Alaska’ _It is encouraging to hear of your office's efforts on behalf of village electrification in Alaska through the Proposed Electri- fication Program (PEP) and we are pleased to hear that Mr. William Walkley has been made co-ordinator of this program. His previous experience in Alaska will be a valuable asset in establishing an ongoing program here. The needs are tremendous, and the obstacles to overcome are of comparable magnitude. a e For his, and your benefit, I would like to review in a brief ‘nar- rative, Attachment A, what our efforts have amounted to so far. We have been limited, of course, to only token funds, mininial staff technical assistance, sporadic availability of military excess prop~ erty, and high work load of our own and PMEC electrical engineers. Without assigned responsibility and funding in the area of electri- fication it is no wonder our results are meagre. We did feel, and * now know without a doubt that electrification is a key item in the future development of the villages of Alaska, and their economy. The electric utility is one area that so many other programs depend, such as: ‘ a) USPHS for power to PL-121 village water and sewer systems, and sewage treatment. : b) USPHS for village clinic’ construction and operation power, including radio facilities. . Page 2. c) HUD, ASHA, and BIA Housing for power to native housing projects for construction needs and light and heat to the homes when completed. d) Village school facilities for power to new expansion, : modernization and sewage treatment. e) Village public works projects for power to new facilities for construction and operation such as airport lighting, aircraft control and terminal facilities, ferry landings, Street lighting etc. £) Village rural development projects for power to construct . ,, and operate community public buildings. ae g) Economic Development Administration (EDA) for power to proposed commercial business ventures such as hotels, cafes, shops and offices. h) ANICA for power to new native stores for display cases, lighting, freezers, power equipment, heating etc. and for which they all profess no responsibility or solution. Lack of electrical power can be a great inhibitor of each and every proposed development in a village. We see PEP as an immediate remedy--in fact the only one in sight. Rural Electrification Administration (REA) deals in loans, primarily to large communities with existing systems, tax powers, and proven economic loan pay-back ability. Small villages are by and large ineligible, and need grant assistance to get set-up in modern utility services. They have no tax base, restricted-title Indian land, limited and seasonal employment, and meagre resources or economy. . The circumstances make this PEP program an ideal vehicle for the Bureau to serve Indian Peoples in a vital, basic way with long reaching effects. It should be an immediate adjunct to the Alaska Native Claims settlement Act, as an underlying support for the native development programs that will SueratRyty. be generated. _ I have attached as Attachment B, my estimate of what-we. could accom-_ plish the first year if money became available. Succeeding year's programs would be generated quickly once Pee and travel funds were available. I see the PEP program dividing itself naturally into phases, as follows: 1) Preliminary planning 2) Final design and estimating 3) Construction 4) Training aw ; Page 3, The first would involve visiting villages, determining necds, priority of needs, possible grouping of projects for shipping and construction; and time scheduling (tentatively) of all projects for funding and design sequencing purposes, The second phase consists of final design of powerhouse and distribution systems, development of material orders, con- struction drawings, and a close project cost-estimates. The third phase would have Indian Action Teams construct the electrical systems complete according to the construction drawings, test them out, and turn them over to the villages. : vse onpommments it | The last phase is not really last but goes along simultaneously with other phases. It provides training in phase one for engineering aids; in phase two for engineering aids and draftsmen; in phase three for linemen, electricians, mechanics, carpenters, equipment operators, etc. The last aspect to mention is training in utility management, accounting and bookkeeping, and repair and -maintenance of engines, generators, and distribution systems. This last aspect would be initiated with a project start to provide business and technical competency to run a utility system as soon as it is completed. . Please do your utmost to secure serious consideration for PEP funding for the 1974 fiscal year, if only on a planning and design basis. I feel it is urgent to get such a program as this underway immediately. : Please call on me if I can offer further information. Indeed the need cries out for itself. Area Director Pe eg ay —~q ee . October 2, 1972 Attachment A Narrative: Bureau Progress in Village Electrification: : (Note: the narrative is by location and relative priority of proposed PEP consideration--not by chronology of Bureau involvement.) I. Amnchitka powerhouse: We became involved too late in the AEC * (Atomic Energy Commission) deactivation of their project at Amchitka : to express a need for most of their excess generation equipment. We did-secure some dozen assorted small generators, plus a few transformers and reels of wire. We wrote on 8/10/72 (exhibit 1) asking for a "like- new" 2800 sq. ft. glue-lam-arch wooden powerhouse complete with,five....-». 500 KW diesel generators, panel boards and related accessories to be deactivated 7/1/73. AEC responded 8/31/72 (exhibit 2) granting it to the Bureau. We accepted 9/15/72 (exhibit 3) reaffirming our plans to make this package available to southeastern Alaska villages; Kake and Klawock. We propose to make this package available to ITAC, Denver, in the an- * ticipation that their execution of the PEP program could shoulder the $15,000 to $30,000 cost of crating, shipping and unloading in Seattle next summer. We further propose the package be split and re-erected at two southeastern Alaska villages: Kake and Klawock. 2. Kake (population 448 plus logging camp = 650): We helped Kake with a surplus-acquired 100 KW International Harvester UD24 diesel generator back in 1967. It was later lost in a powerhouse fire, We made two 100 KW Waukesha-Kato 6NKDB units available in February 1971 (memo of 2/11/71, exhibit 4) which supplement the city's 150 KW cat- erpillar unit in carrying the city's present load. PMEC electrical engineers Petersen and Mitchell visited Kake for design information, and completed plans for "Kake Electrical Generation and Distribution System" were received 8/29/72 (exhibit 5). _ We propose that half of the Amchitka powerhouse, above, be erected at Kake and PEP fund this and a complete new distribution system. The city is desperate for additional power especially for its new high school (exhibit 6) and its present distribution system is over 30 years old, undersized by present standards, badly deteriorated, and in need of extension into new areas. In short Kake needs a new powerhouse, (situated in its industrial park area) and complete replacement of its distribution system if it is to grow as a community and its economy improve. Our technical help and technician field trips have helped Kake on dozens of occasions, but have only succeeded in patching and shoring-up the ~ existing system to postpone collapse. (Additional data, exhibit 7.) re : : Page 2, 3. Klawock (population 213): Has been getting power through the years from the cannery Oceanside Packing Co., (see trip report 10/9/70, exhibit 8) who wishes out of the business. The city to assume its proper responsibility needs a complete powerhouse, and a completely up-graded distribution system to replace its inadequate, 30-year-old, existing system. We propose that PEP fund the erection of half the Amchitka power- house at Klawock, and design and construct a new, REA-standard, distribution system. We have been looking for light plants for Klawock (exhibit 9) but had found none suitable until the Amchitka™***~ package. 4. Hoonah (population 748): The Bureau has cooperated with the city of Hioonah on innumerable occasions over the years with tech- nical advice and technician Support to their electrical utility " System. As with the above two southcastern Alaska villages, Hoonah's system is about 30 years old, and needs complete replacement. One of our earliest surveys was done in 12/27/65 (exhibit 10); followed by a cost estimate for major rehabilitation on 5/25/66 (exhibit 11) based on a PMEC (Plant Management Engineering Center, Denver’ ) phase one preliminary design. In March, 1970, after a renewed interest in rehabilitation of the electrical-utility by the City, following the city's acquisition of two surplus 500kKIy Sterling-Viking generator sets, we made another survey of Hoonah (exhibit 12 and 13). This resulted in a request to PMEC to re-do their electical design, and include both the east and west end of town, and a powerhouse design utilizing the two 500 KW units and city building to become powerhouse (4/2/70 exhibit 14). These plans were completed by 2/4/71 and later revised to meet city phasing requirements on 11/15/71. Since then we have assisted Hoonah with small projects eliminating hazards from old distribution System, toward getting the new powerhouse connected to the existing distribution system, and toward connecting up the panels on the 500 KW units. To date the 500 KW units are not on the line, and no: funding source has been found by the city for major rehabilitation. This coming winter will be a critical one. The city's load is up. con- siderably over last winter, the new system voltage the city is proposing to use with the 500 KW units will not let the older, small units function as standby backup, and the 500 KW units have not been thoroughly tested, run-in and defects found and eliminated. The city seems forced by circun- stances, away from "planning", toward "reacting" to emergencies and coming out in the end a “day late and dollar short", ‘Page 3. 5S. Klukwan (population 103): Technical assistance to Klukwan has consisted of (1) occasional surplus diesel-electric sets, ie. 40 KW International UD18 recently, and a 100 KW International UD24 soon to arrive, (2) specifications and assistance in purchasing power poles, and (3) material list of electrical items needed for running power to the Bureau school. Proposed PEP work at Klukwan is for enlarging and/or replacing their powerhouse, assuring standby generation cquipment, con- necting to the Bureau school, and general modifications to their ee existing system to bring it fully up to code requirements. ~~” =e 6. Ouzinkie (population 160): Our first involvement with elec- trification at Ouzinkie was in June 1966 ‘(exhibit 15) when PMEC made a field trip there which resulted in a "Preliminary Design Study--Village Electrification". No construction resulted from these plans, and the. city system muddled along until late 1971 when their 75 KW Cat wore all the way out and quit. Mr. Guinn, electrical technician, visited the city, and again referred them to our earlier PMEC plans for a code-rated distribution system.’ (trip report, exhibit 16) We shipped Ouzinkie a replacement surplus 40 KW GMC light plant and the city struggled to scrape together material for repairs and extension of their distribution system. . (see city letter of 5/25/72, exhibit 17) At present the city still lacks the proper materials for upgrading their system and there is little we can do. Under the PEP program we propose a complete new dis- tribution system, new powerhouse and larger electric sets. 7. Kipnuk (population 325): The Kipnuk Village contacted and worked through our Bethel Agency (exhibit 18). We did cooperate to the extent of engineering design by PMEC (exhibits 19,20,21,22) and acquisition, repairs, and shipment of two 100 KW Waukesha 6NKDB diesel-electric sets to Bethel for Kipnuk. The situation is as to be expected when trying to lift yourself by your bootstraps. The $10,000 grant by the State Division of Rural Development Assistance, will not be repeated, and will not stretch to provide a $430,000 system (see estimate with exhibit 20) even with free village labor, surplus generators, and Bureau provided technical engineering assistance. The electrification project is started but it may take years to finish. The Bethel Agency Superintendent remains optimistic (exhibit 23) that the project can be trimmed and a stark, functional system energized soon. We propose: to complete the system, modify it up to REA standards and provide an adequate powerhouse for the Bureau provided surplus 100 KW units, with a third smaller plant provided for peaking and summer use. y \ Page 4 8. Newtok (population 114): Similar to Kipnuk, an engineering design has been completed for a distribution system, Nothing further has developed except our Bethel Agency's agreement to provide a light” plant, the design, and purchase power for the Bureau school (exhibit 24). We propose to provide a complete utility system here. 9. Akiachak (population 312): Akiachak school, PD&C project LEO2-057 was completed in December 1968, and had two 100 KW Cummins electric sets installed for a four classroom school with multi-purpose room and three staff quartcrs units. It was apparently designed with the Washington Office policy of 6/11/64 (exhibit 25) in mind, ie, to have adequate electrical power to serve the village. In the past four years, however, no means were found to distribute excess SChOO] 9s sgesnsonenian 2 ‘power to the village, and the Council is anxious to receive it. (see exhibit 26 and 27). Our responses earlier this month indicate our willingness to cooperate, but no clear way to come up with a system except through the PEP program being pursucd by our Washington Office. (exhibit 28 and 29), We are adamant that any excess power supplied by our school light plants to Akiachak village be over a good quality system to homes competently wired. We do not wish to contribute to electrical fires, electrocution deaths, or innumerable outages causing inconvenience to townspeople and deterioration of store and home frozen meats as soon as the system is dependaiupon, Under PEP, we propose a distribution system and house wiring only, using school.light plants and bulk tank facilities. : 10. Kwethluk (population 408): Under PEP we propose to review the existing high quality village elcctric system for a possible need of. expansion or upgrading. The Kwethluk system was designed by PMEC (exhibit 30) to REA standards and installation completed in December 1964, utilizing the village's 30 KW Cat and a Bureau surplus acquired 85 KW Cat. When the smaller plant is used, the village can meet only its own needs and the school must energize its-standby light plants © for school power. The village has furnished school power since 1964 but at too nominal a rate to both pick up deficiencies: (see exhibit 31) and provide an equipment amortization fund to replace generation equipment. They need a larger powerhouse; new, larger light plants; and bulk fuel facilities to put them on a firm foundation for the future. “11. Other locations requesting power: (exhibit 32) Note: Not in any priority order or definitive a. Chalkyitsik (population 130) (exhibit 33) b. Tanacross (population 84) c. Ruby (population 145) (exhibit 34) d. Koyukuk (population 134) (exhibit 34) e. Nikolai (population 112) Page 5. English Bay ° (population 58) (exhibit ‘35) Unalaska (population 178) Galena : (population 302) : Kokhanok (population 88) (exhibit 36) Veneti (population 112) (exhibit 33) Beaver (population 101) (exhibit 33) Arctic Village (population 85) (exhibit 33 §& 37) Clark's Point (population 95) Wainwright (population 312) Chistochina (population 60) (exhibit 38) : Nikolski (population 57) ; 8 see tepid: 3 Nightmute . (population 127) ‘ Mentasta (population 68) White Mountain (population 87) Lime Village . (population 25) Akhiok (population 115) (exhibit 39) Atmaut luak (population unknown) (exhibit 40) Larsen Bay . (population 109) (exhibit 41) Ambler (population 169) 12. Narrative Epilogue For further reference to earlier Juneau Area Office submittals to Washington for village electrification see the following: b. 3/17/65 MAGI Justifications for five villages at $276,000 6/23/67 village electric system specifications and cost estimates for generation only, with PMEC plant sizing for 23 villages. 2/23/72 village electrification estimates for 69 villages over 6 fiscal year period. Included design, construction, (materials, freight, labor) and operations for total of _ $24,460,000 Note: Alaska Village Electric Cooperative (AVEC) was established through REA loan funding and completed electrification of 44 villages between 9/15/68 and 12/30/71. Program stimulated by Bureau and loan guaranteed by Bureau power payments of $2,000 per month at all villages with Bureau schools, and State of Alaska payments of $2,400 per month at State schools. er J i : che : Qctober 2, 1972 Attachment B ‘Proposed First Year: PEP in Alaska 1. Assume funding on 7/1/73 for $3,997,000 2. ITAC staffing for "Proposed Electrification Program:"' PEP Director qd Asst. Directors-Design;Training;Force Acct; (3 Electrical Engineers (4 Mechanical Engineers (2 Draftsmen (6 Construction Superintendents (4 . Training Specialists (4 Administrative Officer § Clerical (8 Misc: Expediter, Inspector, Alaska Liaison Officer § Assistant (4 Administration, overhead and supplies (see note #1) 3. Project 1 : Amchitka Powerhouse transfer: each) each) each) each) each) each) each) each) each) Crating and packaging of powerhouse and related equipment on Amchitka by Holmes § Narver Freight: Amchitka to Seattle: 130 Ton by Air Force "Cool Barge" Offloading Seattle, division of powerhouse package, re-packing; freight Seattle to Kake § Klawock Northland Marine Barge Lines ; (see note #2) 4. Project 2: Kake Electrical System: Power Generation Facilities: Site preparation, excavation, concrete foundation, backfill Erection of 1/2 Amchitka powerhouse including new end wall, remodeling to half size, final painting. Installation of three 500 KW electric sets, panels, loadbanks, exhaust system complete with final testing and check-out Distribution Facilities: . Construction of system: including material purchase; freight; installation of poles; wire, transformers, meters, etc. per PMEC design;removal of old system; and final testing and system check-out. House wiring (approx 100 homes) by $ 30,000 75,000 80,000 40,000 50,000 80,000 50,000 45,000 200,000 $710,000 10,000 8,000 12,000 $~ 30,000 $ 10,000 20,000 24,000 415,000 43,000 Operation Costs for First Year: including salaries, fuel oil, Spare parts and office supplics 104,000 60 000 rier Page 2. Training Costs for Business management utility accounting, and equipment operation, maintenance and repair . $10,000 Project 2. Total $ 626,000 S$. Project #3: Klawock Electrical System Power Generation Facilities: Site preparation, excavation, concrete + rer eat nates, wei ate seve - foundation, backfill . $ 10,000 Erection of 1/2 Amchitka Powerhouse including new end wall, remodeling to half size, final painting. 18,000 Installation of two 500 KW electric sets, panels, load banks, exhaust system, complete with final testing and checkout. 20,000 Distribution Facilities: Design and construction of system, including material purchase; freight, installation of poles, wire, transformers, meters, etc. removal of old system; and final testing and system checkout. : 210,000 House wiring (approx. 45 homes) : 19,000 Operation costs for first year, including salaries, fuel oil, lube oil, spare parts, and office supplies 66,000 Training Costs for Business management utility accounting, and equipment operation, maintenance and repair 10,000 Project 3. Total $ 353,000 6. Project #4: Hoonah Electrical System : Power Generation Facilities: Modifications to city powerhouse raising electrical, mechanical, and safety aspects to code standards. Also provision of shortages: ie. tools, test equipment, spere parts and com- ponents, meter calibrations. $ 25,000 Distribution Facilities: Construction of systens, including material purchase, freight; installation of poles, wire, transformers, meters, etc. Per PMEC design; removal of old system; and final testing and system check-out 297,000 Page 3, Housewiring (141 homes) “ke ($< 615000 Operation costs for first year, including salaries, fuel oil, lube oil, spare parts, office supplies, and provision of utility truck and auger. 125,000 Training Costs for business management, utility accounting, and equipment operation, maintenance and repair. 15,000 Project 4, Total $ 523,000 : reer “ier, om Net Siar. Sea 7 7. Project 5: Klukwan Electrical System Power Generation Facilities Modifications to existing powerhouse including additional standby electric set, switchgear etc. and raising electrical, mechanical, and safety aspects to code standards : $ 15,000 Distribution Facilities: Modifications to existing distribution system to raise all aspects to code, including replacement of sub-standard poles, transformers, etc. . 40,000 House wiring (43 homes) , : 19,000 Connection of Bureau school to city electrical svstem 20,000 Operation cost for first year, including salaries, fuel oil, lube oil, spare parts, office supplies, etc. 42,000 Training costs for business management, utility accounting, and equipment operation, maintenance and repair 10,000 Project 5, total ¥$ 146,000 8. Project #6: Ouzinkie Electrical System Power Generation Facilities: : . Design and construct entirely new generation facilities with three 100 KW light plants, panels and switchgear $ 200,000 Distribution Facilities: Upgrade PMEC distribution design and construct entire new system including purchase of materials, freight; installation of poles, wire, transformers, meters, etc.; and system testing and check-out 116,000 4% . . . Page 4 House wiring (60 homes) ; $ 26,000 Fuel Storage Facilities Bulk tank farm, transfer pump, fill line day tank and transfer piping : 70,000 Operation costs for first year, including Salaries, 45,000 fuel oil, lube oil, Spare parts, tools and office supplies Training costs for business management, utility accounting and equipment operation, Maintenance and repair - 10 , O00 sain ter nyse : Total Project 6 $467,000 9. Project 7: Kipnuk Electrical System Power Generation Facilities: Design and construct adequate powerhouse for existing two 100 KW light plants. Includes purchase, freight and crection with necessary panels, switchgear, and accessories, $ 109,000 “Distribution Facilities: Construct system per PMEC design, including purchase freight of materials, not on hand . erections of poles, wire, transformers, meters etc. and system testing and checkout 137,000 House wiring (70 homes) . 30,000 Fuel Storage Facilities: Bulk tank farms, transfer pump, fill line, day tank and transfer piping 80,000 Operation costs for first year, including salaries fuel oil, lube oil,spare parts, tools, and office : supplies 51,000 Training costs for business Management, utility accounting, and quipment operation, maintenance : and repair 10,000 Total Project 7, “§ 417,000 Page S. eo 10. Project 8: Newtok Electrical System a Power Generation Facilities : Design and construct complete new powerhouse with ‘three 50 KW clectric sets, panels, switch gear, and related accessories. Includes purchase, freight, and erection with testing and check-out $ 175,000 Distribution’ Facilities : Construct system per PMEC design, including purchase, freight, and erection of poles, ee wires, transformers, meters, etc. and system me oa ye: testing check-out soe pit 0 000 3g zac i! House wiring (24 homes) : 11,000 Fuel Storage facilities Bulk tank farm, transfer pump, fill line, _day tanks, and transfer piping 35,000 Operation costs for first year, including salaries, fuel oil, lube oil, spare parts, tools, and office . supplies 41,000 HY Training Costs for business management, utility a. ; acounting and equipment operation, maintenance and repair . 10,000 Project 8 Total $ 335,000 11. Project 9: Akiachak Electrical System Power Generation Facilities © Modify Bureau school powerhouse to furnish village power with additional switchgear, material, metering, standby reserve - $ 35,000 Distribution Facilities: Design and construct complete system, including purchase, freight and erection of poles, wire, transformers, meters, etc. and system testing and check-out. 127,000 House wiring (60 homes) . : 27,000 Fuel storage facilitics: modify Bureau school tank farm with additional tanks * 20,000 7 Page 6, ‘ Operational costs fo fuel Oil, lube oil, Supplies, r first year, includin & Salaries Spare Parts, tools, and office $ 51,000 Training Costs fo utility accountin Maintenance and r r business man 8, and equi epair agement, pment Operation, 10,000 Project 9.Total $270,000 12. Project 10: Engineering Design This Project wil] include funds vase, Site investigation, for field travel for Juneau Arca Office, travel for Coordination with Regional Native (See Attachment A, item 1l, 24 Villages @ 5,00 0 each $120,000 13, Summary 7 ; Project 0 Staff and Over Head $ 710,000 1 Anchitka \ 30,000 2 Kake 626,000 3 Klawock 353,000 4 Hoonah ~ $23,000 5S Klukwan - 146,000 6 Ouzinkie 467,000 7 Kipnuk 417,000 8 Newtok 335,000 9 Akiachak 270,000 10 Design 120,000 _ $3,997,000 st hacmana tanned F.00 .. . te, oo + ‘14, Notes: —— (1) (2) Page 7. Staffing is predicated on a 5 or 6 year PEP program, getting started quickly and into full ‘swing, and illustrates first year size only. As designs are standardized and design is pushed ahead of construction, reductions can be made in engineering, while increases may occur © in Force Account construction supervision and inspection, for instance. If adequate staff cannot be quickly hired the funds can be used to re-imburse PD§&C or PMEC or contract A § E's © “}sersmmiicr tos. for engineering design. The Atomic Energy Commission recently advised of a change in delivery schedule from summer _ of 1973 to April 1973. Impact being; funds to support our committment for Project #1, will now have to be identified with 1973 FY and provided in order that AEC may be reimbursed for expenses identified under this project ($18,000*). . MEMORANDUM TO ‘ : For the Record FROM : Charles J. Guinn DATE : duly 25, 1974 SUBJECT: Summary of Electrical Conditions @ Hoonah, Kake, Klawock, Angoon and Klukwan I. Existing Generation/Distribution Systems II. Consumers - Existing and Projected III. Power Consumption - Existing and Projected IV. Conclusions V. Costs HOONAH ‘1. Existing Generation/Distribution Systems Generation Facilities ~ A. Two each 500 KW Sterling diesel-electric sets. ' Complete with switchgear and synchronizing panel. Housed in a metal building erected in the fall of woueaom a « 1971. Only one. unit is operational. Equipment obtained as government surplus in 1968. Difficult to obtain replacement parts. Generation voltage is 2400/4160 wye. B. One each 500 KW Caterpillar diesel-electric ‘set. No switchgear. Not in operation. Has been in crate outside power plant building since i its arrival in the fall of 1973. Hoonah does not Sa agnepMeeee: (sun ave the money to incorporate unit into existing. ©...» a a as 3 system. Unit is compatible with existing genera- volt tion switchgear. Is one of the five 500 KW units obtained from Amchitka in 1973. Distribution System Distribution voltage is 2400/4160 volts wye. Thirty years old. Has had minimal maintenance and/or up- grading over the years. Poles and crossarms are rotten. aa Downguys have loosened to the point of being ineffective. -_ Almost all primary and secondary wire is too small. Insu- . lation is weathered and frayed. Transformers have co- WY roded and show. signs of over-heating and leakage. Ser- vice drops are undersized and deliver only 110 volts. ) July 25, 1974 Summary of Electrical - lloonah Page 2 Il. Ill. “Crab Cannery -High School Most service entrances consist simply of two wires run through a hole in a wall to an outdated fuse box. Consumers Existing Projected (1976): Single Family Residences 215 250 Retail Stores 4 Churches ‘ coer Nave Rantala Roa E Cold Storage Plant Berry Packing Plant PHS Clinic Theater Community Building City Hall Elementary School Library Ferry Landing Oil Distributors ANB Hall Road Maintenance Shop Bar Liquor Store Apartment Building Post Office Airlines Office Restaurant Boat Harbor Motel & Restaurant (under const.) Hotel Telephone Exchange Warehouse (under const.) 21 Unit Elderly Persons Home Airport PHS Water & Sewer 4 saeatSt, } fs ] } 1 ] ] 1 1 ] 1 2 HCOO00OHH00 HH Sb BH HS Sy MH BS Ss ss tw ] 1 1 1 ] 3 1 1 2 1 1 2 1 ] ] 1 ] Power Consumption Average Maximum Existing 150 KW 225 KW Projected (1976)300 KW 450 KW _ July 25, 1974 Summary of Electrical - Hoonah Page 3 IV. Conclusions ' As a result of a request from Mayor Frank See in early 1970, the Plant Management Division of the Bureau of Indian Affairs in Juneau, Alaska con- ducted an electrical generation/distribution study .for Hoonah. They found the city: in desperate need wresing oH viwis of (1) a completely new city-wide distribution system and (2) improved generation facilities. (See Charles Guinn's memo dated 3/10/74). Subsequent to this study (see Mr. Don Anderson's letter dated 4/2/70), the B.I.A.'s Plant Management Engineering Center in Littleton, Colorado, designed for Hoonah (1) a completely new city-wide distribution system and (2) a new powerhouse installation. Included. were. 27 sheets of design plans, itemized material lists, and cost estimates. The total cost of the project, including material, labor, contingency and a location factor, was estimated at $432,113. Due to funding problems, only (2) above was ever attempted. Since B.I.A.'s study in 1970, the problems have compounded, and Hoonah needs, even more desperately, a completely new distribution system and improved genera- tion facilities. Costs PMEC's total cost estimate (see cost breakdown and material lists) for a completely new distribution system and generation facilities was $432,113. Since then a power house building has been built and two 500 KW diesel- electric sets installed. The 500 KW Caterpillar still needs to be incorporated into the system. The new cost estimate is as follows: Overhaul Generator $ 15,000 Transport Generator 2,000 Install Generator 8,000 New Distribution System 300,000 Inspection, Overhead, Contingency 32,500 Total 357,500 September 3, 1974 Summary of Electrical - Kiukwan Page 4 CHILKAT INDIAN VILLAGE - KLUKWAN II. Existing Generation/Distribution Systems Generation Facilities _ One each 75 KW Caterpillar, one each 100 KW Caterpillar," and one each 100 KW "Reddy Power" diesel-electric sets. The last unit is government surplus and has not been operational (or hooked into the system) for 2 1/2 years. No immediate plans to renovate. All units are housed in a delapidated wood shack with a dirt floor. None have synchronizing capability. Generation voltage is 120/208 volts wye. Distribution System 4 sca ralee Distribution voltage is 120/208 volts wye, the same as the generation voltage. Line loss is excessive due to distances. Service drops are undersized and deliver only 110 (or less) volts to consumers. Service entrances do not meet code requirements. Consumers Existing Projected (1976) Single Family Residences 35 58 Churches 1 1 Community Building 1 1 ANB Hall 1 1 City Office ] 1 B.I.A. Elementary School ] ] PHS Water & Sewer 1 ] Klukwan's industry potential is enormous. The village has title to approximately 900 acreas of land rich in iron ore deposits. Except for their immediate townsite, Klukwan has leased this land to U.S. Steel for development. It is anticipated that full-scale production will commence within 3 to 5 years. Pur- suant to the Native Land Claims Settlement Act of 1971, the Village formed Klukwan, Inc., a business corporation which will manage the development of Klukwan's surface and sub-surface resources. } u September 3, 1974 Summary of Electrical - Klukwan Page 5 Ill. “Iv. Power Consumption Average Maximum Existing 50 KW 70 KW Projected (1976) 96 KW 192 KW Ns iain LT a KT RS Conclusions As mentioned above, Klukwan's distribution voltage is 120/208 volts. This results in excessive line loss and, consequently, low voltage throughout the system. Needed is a completely new installation, designed and constructed for 2400/4160 volts, with step-up transformers at the powerhouse and step-down transformers as necessary , throughout the system. Also needed is a larger diesel-electric set (in the 150- 175 KW range), complete with synchronizing equipment and switchgear which will insure adequate power genera- ee when the 23 units of additional houses are completed in 1975. A new power house building is also needed. The existing structure cannot, by any stretch of the imagination, be considered adequate - especially with the introduction of a new and larger generator and additional switchgear. Costs - includes material, freight and installation. New Distribution System $ 70,000 New Diesel-Electric Set Complete w/Switchgear and Synchronizing Equipment 60,000 New Power House Building 45,000 Total $175,000 ni September 3, 1974 Summary of Electrical - Kake Page 6 KAKE I. Existing Generation/Distribution Systems Generation Facilities A. One each 150 KW Caterpillar diesel-electric set. Has been run almost continuously for approximately three years. It is connected to a surplus, outdated open pipe frame switchboard. Housed in a delapidated vec. we. WOOd Shack with a dirt floor. No synchronizing «equi p-=- ment. Generation voltage is 1385/2400 volts wye. B. One each 250 KW G.M. diesel-electric set. Used. Complete with panel-board and switchgear. Unit purchased from Petersburg in November, 1973, with the aid of an RDA grant. Was installed in May, 1974. No synchronizing panel. Is housed in same "power house" as "A" above. Generation voltage is 2400 volts delta. C. Two each 500 KW Caterpillar diesel-electric sets with related switchgear and synchronizing equipment. Acquired from Amchitka in 1973. Store in Seattle, Washington. No funds to overhaul and/or to ship to Kake. Generation voltage is 2400/4160 volts wye. Proposal is to use units.as prime power when new dis- tribution system and power house are built. Distribution System Distribution voltage is 2400 volts, either wye or delta depending on which generator is being used. Thirty-five years old. Has had minimal maintenance and/or up-grading over the years. Poles and crossarms are.rotten. Downguys have loosened to the point of being ineffective. Almost all primary and secondary wire is too small. Insulation is weathered and frayed. Transformers have corroded and show signs of over heating and leakage. Service drops are undersized and deliver only 110 volts. Most ser- vice entrances consist simply of two wires run through a hole in a wall to an outdated fuse box. II,. Consumers Existin Projected (1976 Single Family Residences 140 165 Retail Stores 3 4 Churches 4 4 September 3, 1974 Summary of Electrical - Kake Page 7 Cannery Logging Camp Elementary School High School Ferry Landing Liquor Store Restaurants PHS Clinic IV. Theater Telephone Exchange Boat Harbor PHS Water & Sewer Post Office Airport Hotel Apartment Community Center Gymnasium Cold Storage Plant Power Consumption Existing Generate Own Power Generate Own Power OM HM BHO HS Spy SS Spy oS Existing Projected - 1976 (w/cannery, logging camp, Turnkey III homes, etc. on line) Conclusions 800 KW eres aay Projected (1976) ? eee ceed eed ed et ceed ig) wed ed Sed AD eed wed ed ed ws ot Maximum overage 150 K 250 KW 1100 KW In 1971 at the request of the Kake City Council, a "Pro- posed Plan for Electric System Improvement and Expansion Program" was prepared for Kake by a consulting engineering firm headquartered in Anchorage, Alaska. sented a system study and The work repre- provided a scheduled improvement Program designed to meet the existing power requirements. and future proposed and planned facilities. The study was quite comprehensive, but the program was never implemented - again because of funding problems. At request of the City of Kake through the Southeast Superintendent, the Bureau of Indian Affairs Plant Management Engineering Center undertook the task of September 3,.1974 Summary of Electrical - Kake Page 8 designing for Kake a modern, city-wide distribution/genera- tion system. This design, complete with material lists and cost estimates, was completed and forwarded to Kake in August of 1972. The total cost for the project, in- cluding material, labor, freight, contingency and a location factor, was estimated at $821,000. Again, due to lack of funds, the project never materialized. ‘ sthce that time, with the addition'of a new high schodl, a new community building and 31 units of new housing coming on the line shortly (with 23 more to be complete in 1975), Kake's electrical problems have compounded. They,like Hoonah, are in desperate need of new generation facilities and a new distribution system. Costs . PMEC's total cost estimate (see the material lists and cost estimates) for a new distribution system and genera- tion facilities was $821,000. Since that time, Kake has acquired two 500 KW caterpillars and the related switchgear - all of which are stored in Seattle, Washington. The new cost estimate, utilizing this equipment, is as follows: Overhaul Generators $ 25,000° Transpart Generators & Switchgear 4,000 Erect Power House Building 100,000 New Distribution System 415,000 Install Generators & Switchgear 20,000 Inspection, Overhead & Contingency 56,400 Total 620,400 September 9, 1974 Summary of Electrical - Klawock Page 9 KLAWOCK I. Existing Generation/Distribution Systems Generation Facilities : A....Owned and operated by the Oceanside Packing Company‘ Cannery: O ne each 250 KW, one each 100 KW, one each 100 KW and one each 75 KW diesel-electric sets. Units can be synchronized. Housed in a metal power house building erected in 1973. Generation voltage is 120/208 volts wye. Distribution voltage for the cannery is 480 volts; for the village, 2400 volts wye. B.. Owned by the City of Klawock: Two each 500 KW Cater- pillar diesel-electric sets complete with related switchgear and synchronizing panels. Obtained from Amchitka in 1973. Both units and the switchgear have been overhauled and are in Klawock —- not in- stalled. Both units generate 2400/4160 volts wye. Plans are to incorporate these units and. their switch- gear into the existing cannery facility. oo gl ee re Schoo / has Own fover plaut (see OEDP Comm. PE~PEE Py. 10 under : Distribution System Very similar to the systems at Hoonah and Kake. Distribu- tion voltage is 2400 volts wye. Thirty-five years old. Has been added onto over the years with minimal maintenance and/or up-grading. Untreated native poles are being used _ and shell-rot is very evident on both the poles and the crossarms. Downguys have loosened to the point of being ineffective. Almost all primary and secondary wire is too small. Insulation is weathered and frayed. Transformers have corroded and show signs of over heating and leakage. Service drops are undersized ard deliver only 110 volts. Most service entrances consist simply of two wires run through a hole in a wall to an outdated fuse box. II. Consumers Existing Projected (1976) Single Family Residences 81 96 Retail Stores 2 2 Churches i x Cannery 1 2 Theater 1 1 Community Building 1 nl “we ' Septemb Summary Page 10 {II. Iv. er 9, 1974 of Electrical - Klawock Existing Projected (1976) Elementary School 1 i Road Maintenance Shop 1 x Post Office 1 2 Airlines Office 1 x Telephone Exchange i hae qemimtiiny earn 1 PHS Clinic 1 Z City Hall 1: 1, Saw Mill Generate Own Power 1 Boat Dock 1 1 PHS Water & Sewer 1 1 Airport No power 1 The City of Klawock is expanding quite rapidly. Already there are roads to Hollis. and Craig with plans to construct a road to Hydaburg. The State of Alaska Department of Highways maintains a shop in Klawock. This shop is being expanded and will ultimately serve all of Prince of Wales Island. The sawmill currently generates its own power, with a peak demand of 1900 KW. Plans are to intertie'the City's :proposed new system with the sawmill's so that they will be able to supplement each other. Possibly the sawmill could supply power to the City during the winter months when the Cannery's operation is at a minimum, and the City could supply power to the sawmill during its peak production periods. Power Consumption Average w/o Maximum w/o Aver. w/ Max.w/ Cannery Cannery Cannery Canner Existing 200 300 550 700 Projected — 1976 (w/o sawmill; w/Turnkey III homes, etc. on line 500 625 640 805 Conclusions To adequately serve the existing consumers, to provide the extra generating capacity needed to handle the 33 units of new Turnkey III houses, and to add the capability of supplementing the sawmill’s power-source, the city of Klawock must in- corporate the two 500 KW "Amchitka" generators and the related switchgear into the existing system. It is pro- posed that this equipment be installed in the cannery power house and become the prime power source for both the Cannery and the €ity. Septemb Summary Page 11 er 9, 1974 of Electrical - Klawock As outlined above and in Mr. Charles Guinn's memo dated October 14, 1970, Klawock needs a completely new distribution system. The Cannery, in co-operation with the City, is attempting to up-grade what is existing, but inadequate funding is stifling their efforts. AB EE A oy NET Costs New Distribution System $ 175,000 Install Generators & Switchgear 20,000 Inspection, Overhead & Contingency 19,500 Total $214,500 Shi are’ Septemb er 25, 1974 Summary of Electrical - Angoon Page 12 Saget St II. Existing Generation/Distribution Facilities - Owned and Operated by the Alaska Village Electric Cooperative, Inc. (AVEC) Generation Facilities One each 150 KW Allis Chalmers, one each 125 KW Allis Chalmers and. one each 50 KW Allis Chalmers. Complete with Switchgear and synchronizing panel. Houséd in a metal powerhouse. building erected under the AVEC programnd Me scnv the fall of 1969. Generation voltage is 120/208 volts wye. Distribution System Distribution voltage is 4160/7200 volts wye. Roughly 80% of the distribution wiring was installed under the AVEC program in 1969 and is buried. The remain- ing 20% is the remnants of a 35 year old overhead system and is in very poor condition - the same as the systems in Hoonah, Kake, and Klawock. The buried portion of the system - the AVEC installa- tion - is quite inadequate: in some instances the cable is “daylighted" or, at best, buried only three or four inches; also, insuffiecient "bedding" - or none at all - was used to protect the cable. As a result of these conditions, and others, line break-- ages and power outages are a common almost everyday occurance. AVEC pays the City of Angoon $260 monthly for "services rendered." This is turned over, as pay, to a local power plant operator/maintenance man. For this amount, the operator is expected to provide all maintenance and minor repair (and emergency) work on the generators, to repair any and all breaks in the cable and, in general, to keep the entire system operational. A very formidable task for $260/month. Consumers Existing Projected (1976) Single Family Residences 125 : 150 Retail Stores 2 2 Churches 2 2 Community Building 1 1 Elementary School ] 1 ANB Hall 1 1 ~ September 25, 1974 Summary of Electrical - Angoon Page 13 a Existing Projected (1976 Road Maintenance Shop ] ] Post Office ] ] Telephone Exchange 1 1 PHS Water & Sewer ] ] City Office 1 ] Motel 0 2 14 Unit Elderly Home 0 i Jail & Court House 0 1 City Library (under construction) 0 1 abn weoseexn Warehouse & Machine Shop : 0 eee | Ferry Terminal. 0 ] III. Power Consumption Average Maximum Existing (including 31 units of Turnkey III houses) : 75KW 1O00KW Projected - 1976 (including elderly home, 25 units of Turnkey III houses, two motels, etc.) 125KW 150KW IV. Conclusions rN : The residents of Angoon, and the City Council, are : quite dissatisfied with the existing "AVEC" operation. AVEC rates start at $.20/KWH and graduate downward, depending on the quantity of power consumed, to a low of $.90/KWH - almost 5 times the Alaskan average. x i The vast distance between Angoon and AVEC's headquarters Se. in Anchorage, Alaska coupled with AVEC's overwhelming work schedule in the northern part of the state make periodic inspection trips and/or work details by AVEC personnel to Angoon almost non-existent. For instance, only the smallest of the generators (the 50 KW unit) WaS operational for almost a year - from August to June 1974, The 125 KW unit has been inoperative for the last three months. Both despite repeated requests from Angoon to AVEC for assistance. The City of Angoon is a dynamic, progressive community: the residents are working to introduce new industry into the area, they are expanding their tourist trade, and they are educating their people. A‘total of 45 students from Angoon attended college last year. / September 25, 1974 Summary of Electrical - Angoon Page 14 AVEC's electricity. rates are tending to stifle these efforts: industry is not prepared to pay $.20/KWH for power; money that could be used by the people for food, housing, education, etc. is being paid to AVEC in the form of electricity bills. The City of Angoon would like to withdraw from the <e-ANEC program. eee ree The people feel - because of the vast distance between southeast and northern Alaska and the corresponding geographical and cost differences - that they are subsidizing AVEC's program up north. The people realize that to withdraw from AVEC and to attempt to establish and operate their own electric utility company would probably be cost prohibitive. By necessity, they would have to duplicate (by permanent employment or by intermittent hire) many of AVEC's personnel services - and bear the costs alone. The City does feel, however, that if Angoon were allowed to withdraw from AVEC and were to join a separately established REA sponsored cooperative for Southeast Alaska only, that lower rates and better service could and would be demonstrated. Costs See the feasibility study prepared by Mr. Adrian Simonson, REA's Field Representative for Alaska. DATE TO : For the Record FROM SUBJECT: MEMORANDUM October 3, 1974 Charles J. Guinn Southeast Alaskan Communities — COMMUNITY Juneau Ketchikan Sitka Craig & Hydaburg Hoonah UTILITY co. & RATES Monthly Electrical Rate Schedule for Various 7 Alaska Electric Light & Power First 180 kwh - $. Above 180 kwh - 05/kwh -028/kwh Ketchikan Public Utility First 250 kwh/mo Next 300 kwh/mo Next 600 kwh/mo Above 1150 kwh/mo Sitka Utilities First 100 kwh/mo Next 200 kwh/mo Next 300 kwh/mo Next 1000 kwh/mo Above 1600 kwh/mo - .0338/kwh -0281/kwh -0225/kwh -0338/kwh -050/kwh -040/kwh -030/kwh -016/kwh -030/kwh Alaska Power & Telephone First Next 40 kwh/mo - 60 kwh/mo - Above 100 kwh/mo - -11/kwh -09/kwh -07/kwh eae Rte stems Plus $.012 surcharge based on the increased cost of fuel. City of Hoonah Flat rate/kwh - -10/kwh ORY Monthly Electrical Rate October 3, 1974 Page -2- COMMUNITY UTILITY CO. & RATES Klawock . : Klawock Oceanside Packing Co. mses OFS Syed dinate tect bP First 50 kwh/mo - $.10/kwh “7s enor Above 50 kwh/mo - .08/kwh Klukwan Klukwan Village $15/month flat-rate / home Haines Haines Light & Power Co., Inc. First 50 kwh/mo - $.11/kwh Above 50 kwh/mo - .04/kwh Yakutat Yakutat Power, Inc. First 100 kwh/mo - .10/kwh Next 200 kwh/mo - .08/kwh Next 2,200 kwh/mo - °.07/kwh Next 7,500 kwh/mo - .065/kwh Next 20,000 kwh/mo - .06/kwh Above 30,000 kwh/mo - .05/kwh ANGOON ALASKA VILLAGE ELECTRIC CO-OPERATIVE, INC. First 75 kwh/mo - .20/kwh Next 225 kwh/mo —- .15/kwh Next 700 kwh/mo - .12/kwh Over. 1,000 kwh/mo - .09/kwh Minimum monthly billing: $15.00 : CJG: emg / MEMORANDUM DATE : October 7, 1974 TO : For the Record FROM : Charles J. Guinn SUBJECT: Delivered Diesel Fuel Cost/Gallon mR aM ec Posted Price of 10/4/74 w/Alaska MVF tax w/o Alaska MVF tax Angoon $.431 $.351 Kake t 431 -351 Hoonah 431 £352 Klawock (Craig) AZ -351 Klukwan (Haines) ~431 -351 Average Cost as of 9/23/74 AVEC - 47 villages in Northern Alaska; $.51612 not including Angoon Thus, for a community with a 500 kw Caterpiller diesel-electric set as the prime power source and with an average load of 250 kw for a year, the difference in fuel cost using the above quoted prices would be: 20 gal/hr. x 8760 hrs/yr x $.16512/gal $28,929.02/yr For an average load of 300 kw for a year: 24 gal/hr. x 8760 hrs/yr x $.16512/gal = $34,714. 83/yr For an average load at 400 kw for a year: 32 gal/hr. x 8760 hrs/yr x $.16512/gal = $46,286.44/yr MEMORANDUM DATE October 3, 1974 TO For the Record FROM Charles J. Guinn SUBJECT: Estimated First Year's Costs for a Rural Southeast: soos" Alaska Electric Cooperative 1. STAFFING AND OVERHEAD: Utility Manager (1 each) $ 35,000 Program Directors - Design, Construction & training (3 each) 90,000 Electrical Engineers (2 each) 50,000 Mechanical Engineers (2 each) 50,000 Draftsmen (2 each) 30,000 Construction Superintendents (2 each) 50,000 Administrative Officer (1 each) 15,000 Clerical. (3 each) 30,000 Misc: Finance Officer, accountants, expediter, Inspector, Laison Officer & assistant (7 each) 100,000 Employee Benefits 57,400 Management Systems Development 30,000 Office space, Utilities, Office Supplies & equipment, etc. 25,000 TOTAL FOR STAFFING & OVERHEAD: $562,400 2. . KAKE PROJECT Generation Facilities: Overhaul generators, transport generators and switchgear, construction of new power- house, installation of generators and switch- gear, final testing and check-out. 163,900: Distribution Facilities: Construction of system including poles, material purchase, freight, installation of poles, wire, transformers, etc., removal of old system, final testing & system check-out. 456,500 . House Wiring (approx. 100 homes) 50,000 a Estimated First Year's Cost October 3, 1974 Page 2 Operating Costs for First Year - including salaries, fuel 011, lube oil, spare parts and office supplies Training Costs - for business management, utility accounting and aaut pment operation, maintenance & repair 1 SD TOTAL FOR KAKE HOONAH PROJECT Generation Facilities: Overhaul and transport generator, install generator into existing system, final testing & checkout Distribution System: Construction of system including material purchase freight, installation of poles, wire, transformers, etc., removal of old system, final testing & system check-out House Wiring (approx. 150 homes): Operating Costs for First Year - including salaries, fuel oil, lube oil, spare parts and office supplies Training Costs - for business mamagement, utility accounting and equipment operation, maintenance & repair. TOTAL FOR HOONAH KLAWOCK PROJECT Generation Facilities: Installation of generators and switchgear, final testing and check-out Distribution Facilities: Construction of System including material purchase, freight, installation of poles, wire ‘transformers, etc., removal of old system, final testing and system check-out 124,800 ww. - 124.000 $807,200 27500 330,000 75,000 150,000 18,000 $600,500 22,000 192,500 Estimated First Year's Cost October 3, 1974 Page 3 House Wiring (approx. 50 houses) Operating Costs for First Year - including salaries, fuel oil, lube oil, spare parts and office supplies Training Costs - for business management, _ utility accounting and equipment operation, vemen awes “maintenance and repair TOTAL FOR KLAWOCK KLUKWAN PROJECT Generation Facilities: Purchase and installation of new generator and switchgear; construction of a new powerhouse; final testing and check-out Distribution Facilities: Construction of system including material purchase, freight, installation of poles, wire, transformers, etc., removal of old System, final testing and system check-out House Wiring (35 homes) Operating Costs for First Year - including salaries, fuel oil, lube oil, spare parts. Training Costs - for business management, utility accounting and equipment operation, maintenance and repair TOTAL FOR KLUKWAN ANGOON PROJECT Generation Facilities: Purchase and installation of two new generators in the 200 KW range Distribution Facilities: Improvement and up-grading of existing system; extention of system to service 25 units of new Turnkey III Homes 25,000 79,200 “12,000 $330,700 115,500 775000 17,500 50,400 12,000 $272,400 50,000 45,000 October 1, 1974 Estimated first year's cost Page 4 Operating Costs for First Year - including salaries, fuel oil, lube oil, spare parts, and office supplies Training Costs - “for business management, utility accounting and equipment operation, maintenance and repair TOTAL FOR ANGOON: ENGINEERING Funds for (1) field travel for site research, coordination with village councils, etc, and (2) per diem and expenses related to field data such as surveying, soil investigation, etc. CONTINGENCY 10% of total SUMMARY Staff and Overhead Kake Hoonah Klawock Klukwan Angoon Engineering Contingency TOTAL CONN SW hb $ 75,000 a ee 12,000 182,000 75,000 283,020 562,400 807,200 600,500 330,700 272,400 182,000 75,000 283,020 $3,113,220 a tlingit & haida regional housing authority ROBERT W. LOESCHER Executive Director July 11, 1974 Alaska Power Administration Pa oeenatipess: 4 “P.O. ‘Box 50 Juneau, Alaska 99801 Attn: Mr. James House Dear Mr. House: Thank you. for meeting with Mr. Charles Guinn and me to dis- cuss the electrification problems in rural Southeast Alaska. The information and suggestions forwarded by you and Mr. Robert Crouse will be very helpful in our efforts to remedy the situation. : an During our conversation, you mentioned that the Alaska Power Administration might assist our efforts by providing the following: 1. Information about, and contact with, existing successful power authorities and co-operatives. We would be interested in meeting with their repre- sentatives to have them advise us on pertinent state-enabling legislation, structural composition, electrical power authorities, etc. 2. Contact with Mr. Charles W. Fitch, Director of Western Area Electric, Rural Electrification Admin- istration, in Washington D.C., to advise him of the merits of a rural Southeast Alaska REA sponsored co-op. 3. Possible assistance in a study to determine the feasibility of an electrification project for rural Southeast Alaska. This might be accomplished by assigning "in-House" technicians to prepare a com- prehensive report on the subject. ( » RANK SEE — Chairman, Hoonah CYRIL GEORGE — Ist Vice Chairman, Angoon ROBERT SANDERSON — Treasurer, Hydaburg CAROLYN POWELL — Secretary, Yakutat BERTHA CAVANAUGH — Member at Large, Kake 825 VILLAGE STREET JUNEAU, ALASKA 9960! TELEPHONE (907) 586-2192 ROBERT W. LOESCHER Executive Director August 21, 1974 Alaska Village Electric Co-operative, Inc. 999 Tudor Road Anchorage, Alaska 99503 Attn: Mr. Lloyd Hodson, Manager Dear Mr. Hodson: As you are aware, the Tlingit-Haida Regional Housing Authority is working with various State and Federal agencies in an effort to establish reliable electrical power in a number of rural Southeast Alaskan communities. In pursuit of this goal, which incidently includes not only the installation of new generation and distribution facilities, but on-going personnel training and operation and maintenance: programs, we are éxploring the possibility of establishing a REA sponsored co-op, similar to AVEC, in Southeast Alaska. As the only REA sponsored co-op committed to a program of multiple village electrification in Alaska, AVEC;s assistance recommendations, and guidance would be very helpful to our project. We understand that AVEC is holding a board meeting on or about September 10, 1974. We would appreciate being able to meet with you and the board members at that time to explain our program and problems, to establish a good working relation- ship with AVEC and to gain AVEC's support to our project. RANK SEE — Chairman, Hoonah CYRIL GEORGE — Ist Vice Chairman, Angoon ROBERT SANDERSON — Treasurer, Hydabury ~’ CAROLYN POWELL — Secretary, Yakutat i BERTHA CAVANAUGH — Member at Large, Kake §25 VILLAGE STREET JUNEAU, ALASKA 99601 TELEPHONE (907) 586-2192 August 21, 1974 Mr. Lloyd Hodson, Manager Page 2 Thanking you in advance. Sincerely, TLINGIT-HAIDA REGIONAL HOUSING AUTHORITY Robert W. Loescher Executive Director cc: AVEC Board of virectors Southeast Agency - Joe Wilson Mr. Adrian A. Simonson Mr. Tom Heath» be oe Dee of. RWL:CG:rw JS 999 TUDOR RD., ANCHORAGE, ALASKA 99503 TELEPHONE 279-3548 September 16, 1974 Robert Loescher Executive Director Tlingit Haida Regional Housing Authority 525 Village Street Juneau, Alaska 99801 Dear Mr. Loescher: In accordance with recent correspondence and followup of your meeting with the A.V.E.C. Board, attached is a copy of a Resolution passed by the A.V.E.C. Board on September 10, 1974. Best Wishes, ALASKA VILLAGE ELECTRIC eneral Manager LMH/ma Encl. cep 19 BTA tte ga) WOU (tue see Se 901 june aieake KX == R RESOLUTION NO. ENTITLED: DEVELOPMENT OF A SOUTHEAST ALASKA ELECTRICAL COOPERATIVE WHEREAS, the Alaska Village Electric Cooperative, Inc. isa nonprofit Cooperative association established under the and by virture of the Electric and Telephone Cooperative Act of 1959 for the express purpose of providing electrical generation and service to the people of small and often remote village of the State of Alaska, and, WHEREAS, AVEC'S Electrification program was made possible through an “REA loan granted in 1968 and subsequent REA loans to date, and, WHEREAS, the Alaska Village Electric Cooperative was established and is being supported through the mutual cooperation of several state and federal agencies, and WHEREAS, AVEC is currently providing service to 48 villages in the . State of Alaska, only one of which is located in Southeast Alaska, and WHEREAS, the Tlingit & Haida Regional Housing Authority is working with various State and Federal agencies in an effort to electrify several rural Southeast Alaskan communities. THEREFORE, BE IT RESOLVED, that the Alaska Village Electric Cooperative, Inc. does hereby approve of and endorse the Authority's efforts to have a comprehensive study conducted in the villages in question to determine the feasibility of establishing a separate REA sponsored cooperative to serve rural Southeast Alaska. Passed and approved by the Board of Directors of the Alaska Village Electric Cooperative, Inc. this Ae. day of Sear , 1974, bya vote of yeas and nays. KM Ec Cl. President Alaska Village Electric Cooperative, Inc. Secretary yp 999 TUDOR RD., ANCHORAGE, ALASKA 99503 TELEPHONE 279-3548 September 16, 1974 Robert Loescher Executive Director Tlingit Haida Regional Housing Authority 525 Village Street Juneau, Alaska 99801 Dear Mr. Loescher: In accordance with recent correspondence and followup of your meeting with the A.V.E.C. Board, attached is a copy of a Resolution passed by the A.V.E.C. Board on September 10, 1974. Best Wishes, ALASKA VILLAGE ELECTRIC eneral Manager LMH/ma Encl. a’ RESOLUTION NO. ENTITLED: DEVELOPMENT OF A SOUTHEAST ALASKA ELECTRICAL COOPERATIVE WHEREAS, the Alaska Village Electric Cooperative, Inc. isa nonprofit Cooperative association established under the and by virture of the Electric and Telephone Cooperative Act of 1959 for the express purpose of providing electrical generation and service to the people of small and often remote village of the State of Alaska, and, WHEREAS, AVEC'S Electrification program was made possible: through an REA loan granted in 1968 and subsequent REA loans to date, and, WHEREAS, the Alaska Village Electric Cooperative was established and is being supported through the mutual cooperation of several state and federal agencies, and WHEREAS, AVEC is currently providing service to 48 villages in the State of Alaska, only one of which is located in Southeast Alaska, and WHEREAS, the Tlingit § Haida Regional Housing Authority is working with various State and Federal agencies in an effort to electrify several rural Southeast Alaskan communities. THEREFORE, BE IT RESOLVED, that the Alaska Village Electric Cooperative, Inc. does hereby approve of and endorse the Authority's efforts to havea. comprehensive study conducted in the villages in question to determine the feasibility of establishing a separate REA sponsored cooperative to serve rural Southeast Alaska. . Passed and approved by the Board of Directors of the Alaska Village Electric Cooperative, Inc. this “@“day of Sec% _, 1974, bya vote of yeas and _ nays. Y Cw oo - o President Alaska Village Electric Cooperative, Inc. ew oe Secretary RESOLUTION NO. ENTITLED: DEVELOPMENT OF A SOUTHEAST ALASKA ELECTRICAL COOPERATIVE WHEREAS, the Alaska Village Electrification Cooperative, Inc. is a non- profit cooperative association established under and by virture of the Electric and Telephone Cooperative.Act of 1959 for the express purpose of providing electrical generation and service to the people of small and often remote village of the State of Alaska, and, WHEREAS, AVEC's Electrification program was made possible through an REA loan granted in 1968 and subsequent REA loans to date, and, WHEREAS, the Alaska Village Electrification Cooperative was established and is being supported through the mutual cooperation of several state and federal agencies, and WHEREAS, AVEC is currently providing service to 48 villages in the State of Alaska, only one of which is located in Southeast Alaska, and WHEREAS, , AVEC's comprehensive expansion plan through 1982 does not include additional communities in Southeast Alaska, and, WHEREAS ,, the vast logistical and economic differences between Southeast Alaska and the remainder of the State make it unfeasible and impractical for AVEC to expand into Southeast Alaska and still assume adequate maintenance and operational services, and, WHEREAS, it is AVEC's opinion that an REA sponsored Electrical Cooperative established in and for Southeast Alaska, to serve the rural communities in that part of the State would be an economically feasible project, THEREFORE, BE IT RESOLVED, that this Alaska Village Electrification Cooperative, Inc. does hereby approve of and endorse efforts to establish and operate an REA sponsored rural Southeast Alaskan Electrification Cooperative. Passed and approved by the Board of Directors of the Alaska Electrification Cooperative, Inc. this day of , 1974, by a vote of yeas and nays. Manager AVEC Clerk cAlaska ‘Village Electric Co-operative, inc. 9 i ean 999 TUDOR RD.} ANCHORAGE? ALASKA 99503 “TELEPHONE-2/79-3948 September 23, 1974 Don Anderson, Plant Management Bureau of Indian Affairs P.O. Box 3-8000 Juneau, Alaska 99801 Dear Mr. Anderson: esolfe ROM In accordance with our recent conversation concerning |fhel|E Clause, the following information is supplied: = The Fuel Adjustment Clause has been necessitated by the very rapid QO and extraordinary increases in fuel cost during the past twelve month period. A great majority of the power generating utilities across the United States have had to apply Fuel Adjustment Clauses in order to keep from sinking into serious financial difficulties and inability to raise new loan money for future expansion. Alaska Village Electric Cooperative has just completed an analysis of fuel costs this year based on all invoices received to date which is over 90% of our fuel requirements for the year. The average delivered cost ® this year is 51.6156 cents per gallon. This contrasts with a 1973 delivered price of 35.4 cents per gallon. This represents an increase of approximately 46% in just one years time. Attached is a recent Tariff which was filed by Matanuska Electric Association which represents the basic method that the Alaska Public Utilities Commission has elected to use in controlling this rate application. As indicated in previous correspondence, AVEC charges and school minimums have been based on the reality of what the actual average consumption trends in schools have been versus what our actual costs with the actual usaye have been. The new $2835.00 minimum rate we established allowed for the fuel costs this year of approximately .38 cents a gallon delivered. As indicated in the January meeting in Don Anderson, Plant Management Bureau of Indian Affairs Seplember 23, 1974 Page 2 Juneau concerning the fate of AVEC and the concept as agreed to by the Alaska Public Utilities Commission at that time was that in the case of the State or BIA schools the Fuel Adjustement Clause would be worked’ out on a kilowatt hour basis and applied to the minimum and to all other AVEC consumers on a similar basis. The amount would be calculated based on the kilowatt hour consumption of the school and then added onto the minimum billing fuel cost as authorized by the Alaska Public Utility Commission. The APUC is in turn using general guides and accounting guidelines of the Federal Power Commission. The Rural Electricifation Administration, a branch of USDA, must also approve all AVEC rates in accordance with terms of the loan contract. The exact amount of this added charge will depend upon the overall final cost of our delivered fuel for consumption during the 1974-1975 season. Ite should approximate from 2.1 to 2.4 cents per kilowatt hour. Based on the first case analysis which would be based on the 2.4 cents per kilowatt hour times the 1,450,000 kilowatt hours that BIA schools are projected to use in the period from January 1, 1975 to June 30, 1975, the estimated charge would be in the order of $34,800.00. Allowing for some load growth or fuel price change, it would seem to be that a reasonable figure to’allow for in the contract budget would be $38,000.00 to cover the final six months of FY1975. As indicated in a conversation with Mr. Adrian Simonson, REA Field Operations Representative, this clause is essential for the continued health of AVEC in the rapidly inflating economy that we find ourselves in. AVEC does not intend at this time to place a Fuel Cost Adjustment charge on until absolutely required which in no case will probably be before the Ist of January, 1975 from current projections of consumption and expense trends. AVEC will delay placing this into effect as long as possible to remain fiscally sound because of the obvious adverse effect on our thousands of residential consumers who are struggling with severe inflation impacts in other areas. Don Anderson, Plant Management Bureau of tndian Affairs Seplember 23, 1974 Page 3 We would very much like to have BIA execute the contract as proposed in the letter of June 26, 1974 to Mr. Antioquia so that we can transmit this document to the Rural Electrification Administration in Washington, D.C. and expedite the finalizing of our new loan in excess of five million dollars. The State of Alaska has already signed the contract on the same basic cost and terms as submitted to BIA including the required Fuel Adjustment provision. We must start making commitments - for 1975 construction requirements very soon due to extended lead times and critical shipping situations that is facing all of us during the coming year. Wecan not make these commitments until we receive a firm commitment on the loan. Your assistance in this matter would be very much appreciated. Sincerely, ALASKA VILLAGE ELECTRIC COOPERATIVE, INC. d M. Hodson ' General Manager LMH/ma cc: Adrian Simonson, REA Field Operations Rep. wt od JUTE Cecemennee ss serene bo: eemmnmememmmesewememernneenme: «mp Sheet to, : State of Alanta MATANUSKA ELECTRIC ASSOCIATION, INC. Jublig Utilities Commission ELECTRIC RATE SCHEDULE B (Continued) COMMERCIAL AND: SMALL POWER’ SERVICE . - (Unalakleet ) FUEL COST RATE ADJUSTMENT A surcharge or credit may be applied to each: billing for service rendered under this Schedule to reflect increases or decreases in the cost of fuel compared to the weighted average cost of fuel purchased by Matanuska Electric Association, Inc., during the base period November 1, 1972, to November 1, 1973, and shall be calculated as follows: : : . Current fuel cost ' Base Period Fuel Cost : Surcharge _ (¢/gal. ) Lo (é/eal.) Cc. - C¢/KWI) ' Ave. No. of KWII Sold Per Gal. of Fuel Con- L—~. . 7 . sumed During Latest 12 months. JUN 9 1574 Yoritf Advice Ko, —sb Eftectiver Matanuska Blectric Association, Ine, Iscuad byt Va, ME, a General Manager ogee Titles by! » Wille HY gross on, Pv a am CAN MMR HIMES I KA VILLAGE ELECTRIC COOPERATIVE, IWC. RATES AND POLICIES — i AB a nenber. of the Alaska Village Electric Cooperative, you are @ part of one of the fastest growing organizations in Alaska. Your Cooperative ie supplying safe, dependable power to remote. areas of this State and will improve living conditions for thousands of TR pete BN, ye «~The Board of Directors of your Cooperative have adopted the following rates for electric energy used. These rates were effective September 15, 1968. u First 75 KWH used per month $20 per KWH i Next 225 KWH used per nonth fbi ag 415 per KWH "ext 100 KWH used per month’ ets 12 per KWH imsry rte on Over 000. KWH used per..month. ; 7 at, +09 per. KWH : as Minimum monthly billing © | . $15.00 per month pee For your convenience, the Cooperative has made arrangements for ‘| ; saa, to pay your power bills at Aacaed . naa SolLeoting. eben; Le 1%, I ei! will send all “. collections to Anchorage. This wil) save you the cost of a money order “each ‘sok, , an *"You may, if you prefer, make your payment directly to the Coop « es erative's office in Anchorage. Money should be sent in the form of _ a check or money order, but never in cash. -Please remember to enclose s the. billing stub to any payment. mailed to the Anchorage office. Map Loc. Rate ea ee eee No. Date Application for Membership In Alaska Village Electric Cooperative, Inc. The undersigned (hereinafter called the "Applicant"), hereby applies for membership in the corporation organized under the laws of the State of Alaska under the name of Alaska Village Electric Cooperative (hereinafter called the "Cooperative''), for the purpose of furnishing electric service, upon the following terms and conditions, 1, The Applicant will pay an amount not to exceed $5.00, which shall constitute the membership fee. The amount of said membership fee is set forth in Articles of Incorporation of the Cooperative, [ 2. The Applicant will, when electric service becomes available, take from the Cooperative electric service to be used on the premises described below and will _| pay therefore monthly at rates to be determined from time to time in accordance with the procedure specified in the bylaws of the Cooperative, it being expressly understocd that all amounts paid by the Applicant in excess of operating costs and expenses of the Cooperative are furnished by him as capital and he shall be credited with the capital so furnished as provided by the bylaws. 3. The Applicant will grant to the Cooperative a right-of-way easement to construct, operate and maintain an electric line or system on the land described on the reverse side hereof and in or upon all streets, roads or highways abutting said land. 4. The Applicant will comply with and be bound by the provisions of the charter and bylaws of the Cooperative, and such rules and regulations as may from time to time be adopted by the Cooperative. 5. The Applicant, by becoming a member, assumes no personal liability, or responsibility for any debts or liabilities of the Cooperative, and it is expressly understood that his private property is exempt from execution for any such debts or liabilities. The application is made in consideration of similar applications by others and is understood to be an agreement with such applicants. The acceptance of this application by the Cooperative shall constitute an agree- ment between the Applicant and the Cooperative, and shall continue in force for one year from the date service is made available by the Cooperative to the Applicant, and thereafter until cancelled by at least 30 days' written notice given by either party to the other. The Applicant agrees that any part of the amount paid by him pursuant to this application may be used for the development of an electric system. If the Coop- erative is unable to obtain a loan from the Rural Electrification Administration to finance the construction of such a system or is unable to proceed with its plans to serve the Applicant for any other reason, the Applicant and the Cooperative agree that the amount paid by the Applicant, less such amount as has been ex- pended for development expenses, either prior to or after incorporation, will be returned to the Applicant. : Witness Applicant The above application for membership accepted by the board of directors the day of , 19 Address ALASKA VILLAGE ELECTRIC COOPERATIVE, INC, Twp. Sec. By Cert. No. ~.... _.. Name oes ———— : Date Issued__ a Address __ : oe ; oN Date Cancelled SSeS Applicant Desires Service As Follows Type of Service ( ) Rural Residence ( ) Town Residence ( ) Rural Business ( ) Town Business eerie per eninge Location Town —- Post Office Address Township _________ Range Ss Section —— “~ Approximately Miles (_ ) North ( ) South ( ) East ( ) West of the town of Amt. of Cash Paid Herewith: $ _-oeooe > re eee Present Electric Service (If Any) Furnished by (Name of Company) —_ Voltage and Type of Service Furnished by (Location of Plant) VIIVICARL OF IRCOPE OE icoor ot Ce co vi s thac on the 2bth der of as US tha fo;: and ¢ RIC COOPEOAPIVE, it SaWAGHA VII filled in this office its Articles of Incorpo: non-profit cooperative ergenteed und ihe ls Etate of : j c na Coy 2004 CSORGE SARTO. LIED VOR RECORD ARTICLES. OF INCORPORATE Ob tation (ME STATE, OF ALASKA OF ALASKA VILLAGE ELECTRIC COOPERATIVE, I We, the undersigned, being natural person of the age of twenty-one years or more and citizens. of the United States of America and residents of the State of Alaska, do hereby associate ourselves together for the purpose of forming a non-profit coop- erative association under and by virtue of the Electric and \ifelephone Cooperative Act of 1959, Chapter 93, Session Laws of Alaska, 1959, A.S. 10.25.0110 - 650, and ail laws amendatory thereof and supplemental thereto, and do hereby adopt the foliow- ing articles of association: ARTICLE I The name of the Corporation is ALASKA VILLAGE ELECTRIC COOPERATIVE, INC. ARTICLE II The object or objects and purpose or purposes for which the Corporation is formed are: (a) To generate, manufacture, purchase, acquire and accumulate electric energy for its members and to transmit, distribute, furnish, sell, and dispose of such electric energy to its members and others, wheu practicable and permissible, and to construct, erect, purchase, lease as lessee and in any manner acquire, own, hold, maintain, operate, sell, dispose of, lease as lessor, exchange and mortgage plants, buildings, works, machinery, supplies, apparatus, equipment and electric transmission and distribution lines or systems necessary, convenient or useful for carrying out and “accomplishing any or all of the foregoing purposes; 26 1967 . noo (d) permitted by law, lo cell, mortgage, pledpe, hypothe cate and in any manner dispose of Cranchise, rights, privileges, Licenses, rights of way and casements necessary, useful or appropriate to accomplish .any or all of the purpoaes of the Corporation; To purchase, receive, lease as tessec, or in any other nanner acquire, own, hold, maintain, usc, convey, sell, lease as lessor, cxchange, mortgage,. pledge or other- wise dispose of any and all real and personal property or any interest therein necessary, useful or appro»oriate to cnable the Corporation to accomplish any or all of its purposes; To assist its members to wire their premises and install therein electrical and plumbing appliances, fixtures, machinery, supplies, apparatus and equipment of any and all kinds and character (including, without Limiting the generality of the foregoing, such as are applicable | to water supply and sewage disposal) and, in connection therewith and for such purposcs, to purchase, acquire, lease, sell, distribute, install and repair electrical \ and plumbing appliances, fixtures, machinery, supplies, apparatus and equiprent of any and ali kinds and char- acter (including, without limiting the generality of vf the foregoing, such as are applicable to water supply and sewaye disposal) and to receive, acquire, endorse, pledge, guarantee, hypothecate, transfer or otherwise dispose of notes and other evidences of indebtedness and all security therefor; -2- (e) To uorrow money, to make and issue bonds, notes and other evidences of indebledness, recured or unsecured, for money borrowed ér in payment for property acquired, or for any of the other objects or purposes of the Corporation; to secure the payment of such bonds, notes or other evidences of indebtedness by mortyaye or mortgages, or deed or decds of trust upon, or by the pledge of or other lien upon, any or all of the property, rights, privileges or permits of the Corporation, i | wheresoever situated, acquired or to be acquired; (f£) To do and perform, either for itseif or its members, any and all acts and things, and, to have and cxercise any and all powers, as may be neccssary or convenient to accomplish any or all of the foregoing purposes or as may be permitted, by the act under which the Corp- oration is formed. ARTICLE IIL Section 1. The Corporation is formed without any purpose of pecuniary profit to itself and shali have no capital stock. Section 2. Each member g$hall be entitled to one (1) vote and no more upon each matter submitted to a vote at a meeting a the iembers. At all meetings of the werbers at which a quCrun is present, all questions shall be decided by a vote of a ma jority lof the members voting thereon in person, except as otherwise ' pense by law and provided in the Bylaws. If a husband and wife hold a joint membership, they shall jointly be entitled to one (1) vote and no more upon each matter submitted to a vote nt a weeting of the members. ARTICLE IV Section 1. Except as limited elsewhere in these Articles or in the Bylaws of the corporation, the business and affairs of the corporation shall be vested in and managed and controlled by a Board of Directors; and the Officers of the corporation shall be a President, a Vice-President, a Treasurer, and a Secretary. The offices of Secretary and Treasurer may be heid by the same person, Section 2. The officers of the corporation shail be elected ‘jannualty, by and from the Board of Directors. When a perean ‘tholding any such office ceases to be a director, he shall cease to hold such office. Any officer may be removed from office and jhis successor elected in the manner prescribed in the Bylaws. Section 3. The number of directors of the corporation shaJ 1 be not less than five (5), each of whom shall be a wenber of the corporation or of another cooperative which is a member therecf. The Bylaws shail prescribe the nunber of directors, their qualifications other than those prescribed by law, the manner of holding meetings of the Board of Directors, and of electing successors to directors who shall resign, die or other- wise be incapable of acting. At each annual meeting of the Imembers , directors shall be elected by the henbers to fill the position of directors whose terms have expired or are expiring, to hold office during the term to which they are elected or until their successor shall have been elected and qgualificd. The Bylaws shall provide for the rethoval of directors from office and for the election of their successors. Section 4. The Bylaws may provide for the division of the territory served or to be served by this corporation into two or more districts for any purpose, including, without limitation, oo, Be et ia i igor TAGE WA te peta functioning of district deleyates, Such deflepates, who shall be members, may nominate and cleet directors. The Bylaws shall prescribe the boundaries of the districts or the manner of estab- lishing such boundaries, the manner of changing such boundaries, and the manner in which such district shall function. No menber at any district meeting and no district delegate at any meeting shall vote by proxy or by mail. Section 5. Directors shall not receive any salaries for their services as directors and, except in emergencies,’ shall - not receive any salaries for their service in any other capacity without the approval of the members. The bylaws way, however, prescribe a fixed fee for attendance at cach meeting of the \Board of Directors and may provide for reiwburgcment of actual expenses of attendance. ARTICLE V Section 1. Membership in the Corporation shall be evidenced by a certificate of membership which shali be in such form and shall contain such provisions as shall be determined by the board of directors not contrary to, or inconsistent with these articles of association or the bylaws of the Corporation. Such certificate shall be signed by the President and by the Secretary of the Corporation and the Corporate seal shall be affixed thereto. Section 2. No wembershiy certificates shail be issued for jtess than the membership fee fixed in the bylaws, nor until such penbership fee has been fully paid for in cazh, and such paynent has been deposited with the treasurer. - Section 3. In case of a lost, destroyed, or mutilated certificate, a new certificate may be issued therefor upon such terms and such indemnity to the Corporation as the board of idirectors may prescribe. Section 4. Bylaws may be adopted, amended or repealed by the affirmative vote of a majority of those members voting thereon at a meeting of the members. The noticctof such meeting shall ave contained a copy of the proposed adoptions, amendments or repeal. Section 5. .The Bylaws of the i apeene ion may define and fix pther duties and responsibilities of the members and prescribe lother terms and conditions upon which members shall be admitted to and retain membership in the corporation, make provisions for jannual and special meetings of members and directors and noticcs thereof, provide for methods of voting, quorum requirements, and any other matters relating to the internal organization and management of the corporation, provided that such provisions shall ‘not be inconsistent with these Articles of Incerporation or the laws of the State of Alaska. ARTICLE VI The tern of existence of the corporation chall be perpetual. ARTICLE VII The principal place of business of the corporation shall be at Anchorage , Alaska. ARTICLE VIII The corporation may amend, alter, change or repeal any provision contained in these Articles of Incorporation in the ‘wanner now or hereafter prescribed by law. ARTICLE IX The names and address of the incorporators who shall con- stitute the first board of directors are as follows: JABS HOEPEAN, Anchorage, Alaska ~ DIANE S. CARPENTER Stony River, Alaska WILLIAM LL. TLaNSLUY Kotzebue, Alaska DAVID Le Pi TERSON Auke Bay, Alaska MORRIS S. ‘THOb.PSON Juneau,, Alaska }N =| i>. | New Ka, “DIANE S > CARDT ERT des hen ai WILLIAM LT HEN LEY? IN WITNESS WHEREOF, i have hereunto, eg our hands in quadruplicate this pe & a of lee Le 43, 1967. Weis nt oR SS “MORTS Sy THWOr- STAT]: OF ALASKA ) ss. exetution thereof to be their free and voluntary act for the uses and purposes therein set forth. above last written. My i we ree eter 2 THIS CERTIFIES that on this Aa day of ME Zieh 1967, before we, the undersigned, a Notary Public in and for Alaska, duly com issioned and sworn as such, personally appeared JAMLS TOFFEE (AN, DIANE S. CARPENTER, WILLIAM El HENSLEY, PETERSON and LORRIS S. THOMPSON, known to me and to ne known to be the identical persons who executed the above and foregoing ARTICLES OF INCORPORATION, and they acknowledged to me the DAVID L. and deed WITNESS my hand and official seal the day and year herein- . he o' oabhedeel 1 he epee LiC in -and” £ mission expires: F Tas bow yeaa . . Wa sa es RO vED Ze a -)_ EFFECTIVE DATE; . Operative; ang WHEREAS it is desirable that an extension Policy be adopted : which Will provide that all members, both new and old, share equitably enefits of the Cooperative; . 1 dp tN ible ev The applicant agrees to take all of his electric energy require- ments from the Cooperative. The standard policy shall apply to permanent installations only, with the Cooperative judging which installations are to be con- sidered permanent. Each: applicant considered to be non-permanent will be required 1 Ce wah TY mictratatritteay 4 to sign a service contract for a term of 5-years and provide a deposit equal to 12 months sini. bills. The minimum bill to be calculated for each case.: This deposit is to be returned in full at the end of the 5-year service period providing that all requirements for gross revenue have been mat, II. LABOR PROVIDED BY THE APPLICANT SRRCR FROVIDED BY THE APPLICANT The applicant may have the option of. doing the trenching and es | filling for this extension, to help reduce the initial cost, under written agreement with the. Cooperative which shall set forth terms Yale: “and requirements of the Cooperative. . NEW SERVICES AFTER LINE CONSTRUCTION Whenever more than one consumer is connected to an extension to which a special minimum applies, the minimum will be adjusted to re- . £lect total consumers on the line and the individyal minimums shall - “be reasonably allocated. to the several customers garved from said , extension, IV. os ng Ai aplte — SERVICE CONTRACT Each applicant for service whose extension requires a mininun in excess of $15 will be required to sign a service contract for a term of S-years or any term appropriate to.his particular case as adjudged. by the Cooperative. LINE CONSTRUCTION phos , tet i > MEME NE RA Rade, This policy is predicated on construction being done after the frost level has receeded to 24 inches below ‘the ground ievel, and before the top 6 inches of the ground has re-frozen. Any applications for service that are not received in time. to permit construction during that period will not be considered until the following construction season. Temporary service will be considered by the Cooperative, however the applicant must pay all non-recoverable costs due to such installations. rr LABOR AGREEMENT THIS AGREEMENT, made and entered into. this day of >. ing dP . . & : AP » by and between ALASKA VILLAGE ELECTRIC COOPERATIVE, INC., a rural electric corporation with principal offices located at Anchorage ’ RIS hereinafter called the Compelgtixe » and the native village of » & fourth-class city, hereinafter called the Village, wi ad eee : : eat OR cb 8 te ; © needa WHEREAS, the Cooperative 4 is engaged, ina ‘statewide program of electri fying "qualified villages in rural Alaska under the programs of the Rural Electrification Administration; and the Village is one of such villages for which such a program has _ been found feasible, and; WHEREAS, one of the ancillary purposes of the program is to provide means of self-help for the people of the villages to the end that the electric fegila tips, oO when installed, will eventually be operated by personnel resident in the viitege, who shall be trained to perform the technical work required in operating such facilities. : . NOW, THEREFORE, it is agreed as follows: . 1. The Village will assume the responsibility of installing the electric " distribution facilities in the village, and will hire its own labor force and pay “its employees. for their work in the premises. 2. The Cooperative will cover all employees engaged in this work with insurance pursuant to the workmen's compensation laws of Alaska, and will also maintain in a responsible company or companies Public Liability and Property Damage Insurance in minimum sums of $100,000 - $300,000, oh 3.' The Village will perform the work. according to the instructions and Oe i ; Specifications to be furnished by the Cooperative, furnishing the necessary super-_ 2 . fn the end result required by the Cooperative for the electrical facility. The Village Ze will also see that the labor “sree owe its ae: in a be teria and efficient manner without undue interruption. ’ : h.. The Village will hold the Cooperative harmless from all. claims, if any, , arising as. a result of the construction and cert n of said facilities by _—— employees . required to be done by the village under this agreement, the Cooperative will pay 90% of the total: cost at the rate per. meter. set forth above. . pay the final 10% of the total sum The Cooperative will when the project is inspected and accepted by BS + the Leoperative's engineer, energised, and electric service becomes available for the The Cooperative will. furnish the necessary hand tools and implements to earry out the work, and the village shall have. the Pie of ee the ame to the Cooperative after the work is completed. 7. All work shall be done pursinat to the requirements of the National Electric Safety Code and plans. and specifications to be provided by the Cooperative. 8. This Agreement shall become effective only upon approval thereof in writing by the Administrator. ALASKA VILLAGE. ELECTRIC COOPERATIVE, INC. . By :: _ THE VILLAGE OF. . ; ae 1 ences v | ae Village ‘Electric Co-operative, inc. g) ater te: ter! TUDOR RD. » ANCHORAGE, ALASKA 99502 . ‘ TELEPHONE 279-3548 her . June 14, 1972 “Tor City Council, Chairman/Bresident. °°" ‘ RMON ta coy “Subject: Street Light Policy. Dear Madams, Sirs; Enclosed, find a policy which, we wish for you, and your council, to consider, to illuminate your, village along or on your main » routes. We and the Board feel ‘that much can be of benefit in res- pects” to sateny and individual needto members as well as sea 5 village. “The cost per lamp, 4§ economical in billing, and would at for: many reasons, increase activities during the winter months . Please discuss the advantages of this, policy, and «street lighting, and. should you pursue and/or need more informationor assistance regarding this, do not hesitate to write us. During our next sch- eduled visit to your community, we will be glad to further discuss or interpret the matter. Sincerely, . Mae with, . pe , Kenneth Paneok, Member Educ. “ ‘Education Programs Dept, % . protect ay "BOARS POLICY.NO. APPROVED: | EFFECTIVE DATE: January 13, 1972 tif + © SUBJECT: “ STREET LIGHT POLICY OF THE COOPERATIVE —— . “WHEREAS it is desirable that a street light policy be which wiil orovida that all members, both new and old, share eg in. the ressensibilities and benefits of the Cooperative; ALASKA VILLAGES ELECTRIC CCOPERATIVE, INC. . ‘WHEREAS it is necessary that a firm policy with respect to. the installation of straet light facilities be adcpted in orcer to u u NOW THEREFORE BE IT RESOLVED by the Board 07 Directors, of the Alaska Village Electric Cooperative, Inc. , that I, GENERAL PROVISIONS ~The Cooperative wishes to encourage the use of street lignts in the member villages. - : . Tf a Village wishes to obtain street lights, the Village Counc must apply in writing stating the number of lights they wisn . to obtain and details of ‘the location and type of building or "pole where the light is to be installed. Installations sroulg be limited to locations within 150 feet of existing 120° voli electrical source becausa@’ of voltage drop cansideraticns. The Cooperative office will reply stating the current cost to the Village for the materials and shipping costs for the con- plete installation from the nearest availadle electrical ser- ‘vice in the Village. A copy of the proposed ptandard in- stallation drawing will also be included. An agreement - che. investment of the present membership of the Coonera ti veswandunait’ : 1 stating the Village will be responsibie for the insteilation, . maintenance and payment of the established monthly charge for each light will also be forwarded. The Cooperative will ship to the Village Councj1 the number of Street lights requested upon receiot of . The executed agreement whereby tne Village agrees to install and maintain the lights, 2. Paymant in full for the cost of materials for each ' . street light installation. © : a { rene 4 he , pe a fe eee ad ‘ if; ne &. The streat light installations will be the property of the = 7 . Village, Boop, oy IIl.. INSTALLATION bee oe _&. Tae street lights wiil be instal ed. in ac cor gance with one of: ; the standard tyoes of installation drawings providad by : A.V.E.C. Engineering, with Villase resources. . Be 5. If, for any reason, the Villaga needs additional guidance Mice gf With the installation, this wii] be providad by. any Bi: Mse Ene Groningen sg staff? member during the next.visit. c. Tne Village plant operavor is to make the final connections ta the power source. ‘a. The maintenance responsipility, including pulb replacement, will be the rasponsibility of the Vitiage. “b. Gne spare bulb will be included with the. price of eacn | : original instaliation package. "RATES a. Tne standard street light instabiation wil] inciude a singie : 175 watt mercury vapor light with e photo cel} cone ot. The», Flat charge to the Village will be $120 per year for each street light, billed at the rate oF F'$}0 per month. The ser- vice will not be metered. VI.” EXISTING SERVICE a. All existing street light services wili be converted: to the terms of this policy at tne earliest feas{ple time. VII. EFFECTIVITY a. nis policy applies to all pending or future requests for strea * light service in A.V.E.C. iwember villages. b. This policy supersedes and replaces all pravious written or veroar agreements of any nature relating tq this suoject, OPERATING AGREEMENT AGREEMENT, made Cf Jer __, 196, between ALASKA VILLAGE ELECTRIC *!. COOPERATIVE, INC., an electric cooperative corporation (hereinafter called “AVEC"), '~ and the VILLAGE OF Poesoers » acity of the fourth class (hereinafter called the "Village"). . tS ah WHEREAS, AVEC is establishing or about to establish an electric generating ie ‘ meine so nee nna eE _ and distribution system in the Village under a long range plan whereby people of / > the Village will install the facilities and after training will operate the same feet. as employees of the Village, thereby promoting the economic welfare of the Village and providing jobs for the residents of the Village. WHEREAS, AVEC desires, and the Village is willing to furnish, cperation eee services upon the terms and conditions hereinafter set forth. Cc NOW, THEREFORE, in consideration of the mutual undertakings herein contained, 2 AVEC and the Village promise and agree as follows: Section 1. Qperation. ‘The Village shail operate the system of AVEC in accordance with policies established by AVEC and the usual standards of efficient operation, including, without limitation, monthly meter reading service. In «performing its duties hereunder, the Village shall comply with all applicable laws now or hereafter in force, and all franchiees or other governmental. authorizations “now or serentoat granted with respect to the system of AVEC, ‘Section 2. Utility Board. The City. Council of the Village will appoint a Utility Board whose function will be to supervise the operation of the system of AVEC. This Utility Board will consist of three 3) residents of the Village appointed by the City Council of the Village for three (3) year ane on ; staggered : basis. Initially one (1) member shall be appointed for one (1) year, another for . 2 end of their terms. A board member may be removed only by a majority vote of all «the members. of the City Council and with the written consent of AVEC. Vacancies "on the Utility Board shall be filled by the Village Council. Section 3.°: - Eployees. The Waster. shall employ and pay such number of persons , ‘Who ‘as employees of the Village, are: required to operate the. “aystem OF ‘AVEC under the supervision of the Utility Board. AVEC will provide the’ training for such employees but any work they seared spbidene will be done under the exclusive supervision of the Utility Board. Section 4. Hold Harmless. ‘The Village wil hold AVEC harmless from all claims, if any, arising as a result of the operation of the system of AVEC. : : Section 5.. Payments. AVEC shall pay. the Village monthly, two hundred sixty - dollars ($260) for services rendered hereunder aommencing on the date the construc— tion of facilities is completed, and the system of AVEC goes into operation. : Tis ‘date shall be. determined by AVEC. and prompt notice’ of such date shall be given to ‘the City Council of the Village. Section 6. Effectiveness and Term. Thig Agreement shall become effective JESSE Ee only upon approval thereof in writing:by the Administrator and shall,. from such | effective date continue in force for a period of twenty (20) years, with an irrevo- ‘cable option for AVEC to renew this franchise under the same yerms and conditions for » an additional twenty years. AVEC may, tiled dats a: wg ees in writing by the Administrator, terminate this Agreement at any time by giving he Village six (6) ‘moviths notice in writing of its desire to terminate this Agreemant. .. Section .7. Franchise. The Village sarees, upon request by AVEC, during © stele Katina Some» ~ ALASKA VILLAGE ELECTRIC COOPERATIVE, INC. oq Mile = resident A Rural Credit Program BUSINESS AND INDUSTRIAL LOANS two channels: or private organizations or individuals, FHA can guarantee loans to Private lenders, The applicant should apply for the loan through a private Jender. The agency contracts to reimburse the lender for 4 percentage of any loss sustained on such loans. Lenders are responsible for making and servicing the loans. (2) For public bodies FHA can Make and service the loan. These applicants apply directly to PHA, The ayency does not make loans in competition with regular, ¢oumercial lenders, : Farmers Cen iattatton is authorized to Provide credit through creed, sex, or national ortgin of the applicant or of individuals he may represent, and benefits that accrue from the loan must be available on this same basis, Who May Borrow? eu Any legal entity, including individuals, public and Private organizations, and federally recognized Indian tribal groups. # eet : Ai, The basic Purposes include developing or financing business or Within this framework, uses include, but are not limited to: ou Nyt, industry, increasing employment, and controlling or abating pollution. a : i, Financing business and industrial construction, conversion, acquisition and modernization. 2. Financing Purchase and development of land, easements, equip- ment, facilities, leases, machinery, supplies or materials, 4. Refinancing debts, when refinancing results in a sound loan and protects the government's interest, aaa SSS eer ore renee. st SV en nt 4 ompey ur chen oes ro " wy ay a \ What Is the Guarantee? # It is an assurance to Protect the investor, and may cover up to 90 percent of phe lender's losses, Ta Collateral Required? when considered with the ment, the soundness of the tnings, repayment of the loan will be reasonable assured. . Nit L aemianate y i i ee , Muse the Applicant Provide Equity? : : The appliceut wit) be required to Provide sufficient cash or other + assets to provide reasonable assurance of a successful project, ‘ What Is the Repayment Schedule? Finat naturity will not exceed: 1. 36 yaars for land, buildings and permanent fixtures; 1 > 1 - 15 years for machinery or equipment; ud ~ 3. 7 years. for working capital. What Will the Interest Rate Be? For guaranteed loans, the interest rate will be determined by the lender and the borrower. | »' consistent with the market rate.) For .private i entrepreneurs, the interest rate on loans made by Farmers Home Admin- istration will be compu ‘owing ns community facilities necessary for community development, the rate will be 5 Percent, Shae sea a TREY PREM ayer Sm | x wpe os ew yest : UNIIED SLALES DEYARIMENL OF AGRICULTURE ee FARMERS HOME ADMINISTRATION : (BUSINESS AND INDUSTRIAL LOANPIVISION APPLICANT'S GUIDE FOR PREPARATION OF PREAPPLICATION EMAL PREAPPLICATION Nencplication to includex’” (In letter form, with attachments) __— ~~ ~ seca. 1, Kind of business and location, “Provide sufficient information to fully describe the proposal and location. Objectives of the business project. Entrepreneur should clearly and concisely show what he intends to accomplish. , Expected markets for products and/or services, Include information pertaining to: present or expected volume and trends in purchases; price range paid or to be paid ! for acceptable products; reasons why the product or service would be considered by . | customers; and any commitments or contracts to purchase products or services. 4 Management. Detail the experience of management or Proposed management personnel. | 5 Raw materials. Detail availability in relation to point of use and sale of 6 7 9 10 11 12 13 14 LS finished product. Explain whether adequate to. fit the needs.of the project at reasonable cost. » Personnel, Show whether qualified personnel are available at site of project or whether they need to brought in. Detail by job types and experience. Utilities. Comment on availability and cost of water, waste disposal, power, fuel _ and communications, . : : Supporting services. Include information relating to warehousing, transportation, ‘ roads, repairs and maintenance, fire and police protection, Effect upon environment and protective measures to be provided. Include details on effect and needs of old facilities, and conformance of new facilities to © : laws and regulations relating to environment. Facilities needed. Include the needs for land, (cost and size); building (cost, type and number); equipment (cost, type, and number) and if available, provide sketch of plant or -facility. Budgetary planning. Detailed month to month budget plan from start of building to break-even point of operation, which is when the return from sales equals the monthly outgo payments, the reserves and depreciation. Fixed capital needed. Detail the total plant installation costs. Start-up capital needed. Detail the amounts of estimated expenses while plant is under construction. ‘Operating capital needed. This amount normally should be approximately one third of yearly fixed and direct costs. : . i Proposed financing. Detail the sources of funds and repayment schedule for all loans. ! Financial statements, profit and loss Statements, if available, for past three years ‘and any available feasibility or marketing studies will be included with preapplication, a WEES $ re v ee STI ¢ a Pro crege EE TINTS Ee rE Ee 1° Be. °. PS oy 3 yea ero TUS Tb Aa "FACILITIES , e aa ** FARMERS HOME ADMINISTRATION "eu Earmers'l ‘Home ‘Administration is authorized to: make ‘loans to'develop community facilities i t; Public’ use in rural-areas and towns of | ‘up. 'to.10,000° ‘people: ‘Any community eligible for redit . ialior cE : ee fora: ee the, Formers | Home’ gt e’available for public entities‘such as munici profit’ corporations ma ‘also! rec eee : 9, : ye BO Fae : x e @EPri rityqwill begiven to: municipal’ borrowers in’ ‘communities’ smaller than’5,500 ‘people t to x restors aldeteriorating water supply, improve, enlarge or ‘modify a water system or, an inadequate erge ‘facilities for:mor gieffi fer n managementia at ¥ J be ai needed funds from othe soure ‘at reasonable rates and term Have legal’ authority to borrow and repa 1 ans,’ ages ec operate and maintain the! ie ; SBei ali ge” sound, and able t rrganize. a nde Sn a assessments revenues ocs or-other satisfactory sources off my to pay for operation g the first de st estimates, Organizati fi * SEPTEMBER 1973 * WASHING TO} ‘ a ee ene aes eens f ape ? . Aa tlingit & haida regional housing authority ROBERT W. LOESCHER Executive Director A FRANK April 9, 1974 Charles W. Fitch Director Western Area Electric Rural Electrification Administration U.S. Dept. of Agriculture Washington, D.C. 20250 Dear Sir: The Tlingit-Haida Regional Housing Authority is a public. corporation primarily involved with building single family dwellings in Southeastern Alaska. We are also coordinating with the Bureau of Indian Affairs and other interested agencies in an attempt to assist three Alaskan villages to electrify their communities. These villages are Hoonah, Klawock and Kake. Some background information: the Bureau's Plant Management Engineering Center (PMEC) in Littleton, Colorado, has designed a generation/distribution system for Hoonah and Kake. The respective costs, including material, freight, labor, etc. are $578,000 and $335,000. The estimate for Klawock's proposed system is $153,000. The problem, of course, is money. We have been in touch with Mr. Adrian Simonson, REA's Operations field representative for Alaska, and he feels that the three communities might be eligible for REA loans. Incidently, all three villages have a school, a cannery, and local stores - all quite large power consumers. In addition, Kake has a logging camp, Klawock a sawmill and Hoonah a berry packing factory. SEE — Chairman, Hoonah CYRIL GEORGE — Ist Vice Chairman, Angoon ROBERT SANDERSON — Treasurer, Hydaburg CAROLYN POWELL — Secretary, Yakutat BERTHA CAVANAUGH — Member at Large, Kake 525 VILLAGE STREET JUNEAU, ALASKA 99801 TELEPHONE (907) 586-2192 Charles W. Fitch April 9, 1974 Page 2 Mr. Simonson informed us that he is planning a field trip to Angoon on April 24th.and will be in Juneau on the 23rd. We would like to meet with him so that he might explain REA's loan requirements, the application procedures, the establish- ment and running of REA Co-ops, etc. At this time, he could also examine the design plans and costs for Hoonah and Kake, apie re We would also like Mr. Simonson to travel to all three communities to determine first hand, whether the ventures are economically feasible. Our electrical engineer would be available to accom- pany him. Thank you. We will await your response. Sincer Rober i sescher Exec Director cc: Mayor of Hoonah Mayor of Angoon Mayor of Kake Mayor of Klawock Tlingit-Haida Central Council Southeast Agency, BIA RWL: cmg i ~ Le > * UNITED STATES DEPARTMENT OF AGRICULTURE RURAL ELECTRIFICATION ADMINISTRATION WASHINGTON, D.C. 20250 he . May 4 0 1974 a Mr. Robert w, Loescher ECEIVE |} Executive Director 74 ida R { yar ae ine way 148 . 325 Village Street is Haida Regional (susing Authority bin oe amte au, Alaska 99801 Tigi Het gael street mT Dear Mr. Loescher: Juneau, Alaska This is in is now established as an additional loans with fea Ci haast tee Cee 0 SP Mr. Robert W. Loescher 2 i We, therefore, recommend that you direct your request to Mr. Lloyd Hodson, Manager, Alaska Village Electric Cooperative, Inc., 999 East Tudor Road, i. Anchorage, Alaska 99502. We believe Mr. Hodson will be most cooperative wee in working with you in an effort to provide the service. < Sincerely, i Ay “qQ3. CHARLES W, FITCH Director ae » Western Area - Electric bohaat fe se oN Neg a i ae te TE ne Ps ST at bi IO Tate Ole DAL AS Le AT CHARLES W. FITCH DIRECTOR WESTERN AREA ELECTRIC RURAL ELECTRIFICATION ADMINISTRATION U.S. DEPARTMENT OF AGRICULTURE WASHINGTON, D.C, 20250 SOR I WOULD LIKE TO REPEAT MY REQUEST OUTLINED IN MY LETTER TO YOU DATED APRIL, 9,.1974 ASKING FOR A MEETING WITH YOUR MR. ADRIAN SIMONSON, REA'S OPERATION'S FIELD REPRESENTATIVE FOR ALASKA, TO REITERATE, THE PURPOSE OF THE CONTACT WOULD BE TWOFOLD: (1) TO CONDUCT A JOINT FIELD TRIP TO THE THREE SUBJECT SOUTHEAST ALASKAN COMMUNITIES TO DETERMINE WHETHER THEY ARE ELIGIBLE FOR REA LOANS AND (2) TO HAVE MR. SIMONSON EXPLAIN REA'S LOAN REQUIREMENTS, THE APPLICATION PROCEDURES, THE ESTABLISHMENT AND OPERATION OF REA CO-OPS., ETC. I UNDERSTAND THAT MR. SIMONSON IS IN WASHINGTON D.C. AT THIS TIME. PERHAPS HE COULD STOP IN JUNEAU TO MEET WITH ME ON HIS WAY BACK TO ANCHORAGE. IF THIS CAN BE ARRANGED, I WOULD APPRECIATE MR, SIMONSON'S ARRIVAL DATE SO THAT I CAN ARRANGE MY SCHEDULE TO CONFORM. ‘THANK YOU FOR THIS CONSIDERATION WE WILL AWAIT YOUR RESPONSE. SIGNED: - ROBERT W. LOESCHER EXECUTIVE DIRECTOR TLINGIT-HAIDA REGIONAL HOUSING AUTHORITY 525 VILLAGE STREET JUNEAU, ALASKA 99801 586-2192-492N CC: MAYOR OF KAKE " KLAWOCK " HOONAH CENTRAL COUNCIL atl aN ‘CATIONS, ING ‘PHONE: 585-6440 fe JUNEAU, ALASKA 99801 TE tL ear) fi ik i iyedS: EL 7 We ZCZC 15902 NL GOVT TDAU WASH DC/AFAS @5-15 basen EDT PIS ACTION ROBART W LOESCHER EXEC. DIR. TLINGIT-HAIDA REGIONAL Hf 64 HOUSING AUTHORITY 525 VILLAGE ST JUNEAU AK (PHONE ac 9@7 586-2192) GS. we Vea BT MR. SIMONSON RETURNED TO ANCHORAGE MAY 11, 1974. PLEASE REFER TO OUR LETTER OF MAY 18, 1974, CONCERNING REA LOAN TO SERVE VILLAGES OF HOONAH, KLAWOCK AND KAKE, ALASKA CHARLES W FITCH RURAL ELECTRIFICATION ADMIN MEGEIVE) MAY 10 1974 Thingit-Haida ae gional Housing Authority i 525 Village Street Juneau, Alaska 99801 tlingit & haida regional housing authority ROBERT W. LOESCHER Executive Director June 28, 1974 - i ‘ Charles W. Fitch, Director Western Area Electric Rural Electrification Administration U.S. Department of Agriculture Washington, D.C. 20250 Dear Mr. Fitch: On two occasions we have requested from your office technical assistance in establishing an R.E.A. sponsored Co-op to serve the smaller communities of Southeastern Alaska. ~) We asked for a joint field trip by your Operations Field Representative for Alaska and our Electrical Engineer to determine whether the undertaking would be feasible. We also asked for information explaining R.E.A.'s loan require- " ments and application procedures, and finally, assistance in the establishment and operation of a Southeast Alaska Electric Co-operative. In both instances you referred us to A.V.E,C., the Alaska Village Electric Co-operative, Inc. You mentioned that A.V.E.C. is now "...established as an R.E.A. borrower and is eligible for addi- tional loans with feasibility based on its operation as-a whole rather than on each village served." It was also your opinion that "...the most practical and economic method for providing electric service to these villages mentioned (Hoonah, Kake, and Klawock) is through this organization (AVEC). ® ~\ “ANK SEE — Chairman, Hoonah ~YRIL GEORGE — Ist Vice Chairman, Angoon ROBERT SANDERSON — Treasurer, Hydaburg CAROLYN POWELL — Secretary, Yakutat BERTHA CAVANAUGH — Member at Large, Kake $25 VILLAGE STREET JUNEAU, ALASKA 99801 TELEPHONE (907) 586-2192 Charles W. Fitch Page 2 June 28, 1974 We disagree. We feel that, because of the vast logistical and economic differences between Southeast: Alaska and the remainder of the State, a co-operative, similar to A.V.E.C., should be established for Southeast Alaska only. A.V.E.C., as you are aware, was established through an R.E.A. loan with the support of both Irederal and State of Alaska Agencies in 1968. Its purpose, as we understand, was to provide electric “service to the people of small and often remote villages of the State. who were not financially able to establish and operate their own electrical systems. To help insure economic feasibility, additional R.F.A. loans, and pay-back ability, the following rate conditions were necessary: 1. The project had to be subsidized by both Mederal . and State of Alaska agencies. ‘This was accomplished by means of an agreed upon fixéd monthly sum paid by the respective agencies to A.V.E.C. for electric power in each village where A.V.E.C. was established and either the BIA or the State had a school. The per month rate per school started at $1,200 per month in 1969 and was increased to $2,000 per month for the BIA and $2,400 per month for the State in 1971. The rate per month will be increased to $2,835 per month starting July 1, 1974. A.V.E.C.'s current proposal asks for subsequent minimum increases of 5% per year to a high of $4,188 per month on July 1, 1982. Ideally, to establish a "Program with Improved Reliability Potential," A.V.E.C. has requested $3,980 per month starting July 1, 1974 with subsequent increases of 5% per year to a high $5,880 per month on July 1, 1982. 2. The rates to individual consumers were set very high. They start at $.20 per KWH and graduate (depvending, on the kilowatt-hours consumed) to a low of ¢.09 per KWH. For an A.V.E.C. consumer, a given quantity of electricity, costs almost 5 times as much as the Alaskan average. j These rates, by necessity, are uniform throughout the A.V.E.C, system, i.e., the residents of Pt. Hope pay the same per KWII as those of Angoon - even though the overall costs, by virtue of logistics alone, are much less at Angoon than at Pt. Hope. Charles W. Fitch Page 3 June 28, 1974 A.V.E.C. 1s now providing electrical service to 48 Alaskan communities. Only one of these, however, is located in Southeast Alaska. We believe that the high monthly payments by the BIA ana the State of Alaska were, and are, justifiable and necessary to sustain A.V.E.C.'5 program and to keep the project. viable. “Wo do not’ feel, however, that Southeast Alaskan communities must join A.V.F.C. and be subjected to these same rates in order to realize reliable electric power. We believe that a Southeast Alaska Co-op, if established, could Justify lower rates and still insure financial Stability. Some of the logic behind this reasoning is as follows: 1. Year-around water transportation to all villages. This would provide substantially lower fuel and freight costs than are being experienced by AVEC. 2. Industry: All of the Southeast Alaskan Communities affected have one or more of the following: a fish cannery, a crab cannery, a packing plant, fish freezing facilities, a sawmill or a logging camp. This is quite different from most "AVEC" villages where industry, per ge, is virturally non-existant. In addition, each village has one or more retail stores and churches, a community building, either a hotel or a lodge, and a movic hall. All have water and sewer Systems and telephone service. 3. Transportation: All of the affected villages are within 1 1/2 hours flying time from Juneau. This would greatly reduce Overhead expenses such as travel time, per diem, etc. 4. Employment: Due to the industry in the communities the percentage of peuple employed is much higher than in most northern villages. For example, the percentage of employed persons in Kake is about 47.5%: for Klawock, about 80%. 5. Average Annual Income. The average annual income per family in Southeast Alaska ' villages is $7,500 - much higher than that up North. = Charles W. Fitch Page 4 June 28, 1974 6. Installation cost of the new generation and distribution systems: Two factors will help to keep this cost to a minimum: a.) overhead, rather than underground, systems can be installed, local yellow cedar poles are available. b.) see #1 above. 7. Technical Expertise and Experience Each community affected has men experienced in power generation and distribution. Each also has men with diesel-engine mechanical experience, A.V.E.C.'s current investment in equipment and facilities alone is approaching $7,000.000. They are currently asking for a new loan from R.E.A. of about $3,600,000. This money will be'used to construct and operate new power systems and to extend and improve existing systems. It is our understanding that the feasibility of the loan is dependent upon the proposed increased monthly schoo] payments and/or an increase jn rates to the individual consumers. A.V.E.C.'s comprehensive expansion plan (through 1982) does not include Southeast Alaska. Even if it did, the communities do not feel that they should have to subsidize, through high consumer rates, A.V.E.C.'s operation up North. We agree. As outlined above, we feel that a Southeast Alaska Co-op could, and would, charge lower rates and still demonstrate financial feasibility. ‘We are enclosing for your information the Community Profiles and Economic Development Plans for Hoonah, Kake, Klawock and Angoon. They indicate the existing conditions, the vast potential and the future expansion plans for each community. They also demonstrate the critical demand for reliable power to meet both present and future needs. Again we ask for the courtesy of a meeting with one of your representatives at his earliest possible convenience to at least discuss our proposal. We feel that, if established, the co-operative would be a financial success and would immeasurably benefit the residents of our communities. Thanking you for this consideration. Charles W. Fitch Pape 5 June 28, 1974 Sincerely, a TLINGITZHATD péoz0NAL HOUSING AUTHORITY Robert W Executiv Enclosures cc: BIA Area Director, Clarence Antioquia City of Hoonah City of Angoon City of Kake City of Klawock i Chilkat. Indtan Village Council - Klukwan U.S. Senator Ted Stevens | ilonorable William A. Egan, Sovernor of Alaska Comm. & Regional Affairs Commissioner Byron Mallott Tlingit-laida Central. Council Alaska Village Electric Co-op Alaska Power Administration, Juneau Southeast Agency, Joe Wilson CJG:RWL:i emg WILLIAM A. EGAN GOVERNOR ets STATE OF ALASKA OFFICE OF THE GOVERNOR JUNEAU July 17, 1974 Mr.. Robert W. Loescher Executive Director Tlingit and Haida Regional Housing Authority 525 Village Street Juneau, Alaska fo Dear 3 Thank you for sending me a copy of your letter to Mr. Charles Fitch. ; I am confident that the Rural Electrification Administration appreciates, as I do, receiving the recommendations of the Tlingit and Haida Regional Housing Authority. Warm regards. Sincerely, William A. Egan Governor a = por GALE W, MC GEE, WYO., CHAIRMAN JENNINGS RANDOLPH, W. VA. HIRAM L. FONG, HAWAID _Qitene =. Wnited States Denatfe FRANK E. MOSS, UTAH WILLIAM B. SAXBE, OHIO COMMITTEE ON POST OFFICE AND CIVIL SERVICE WASHINGTON, D.C. 20510 July 12, 1974 Mr. Robert WW. Loescher fen 4g Executive Director | Tlingit & Haida Regional Housing Authority 525 Village Street Juneau, Alaska 99801 Dear Bob: Thank you for sending me a copy of your June 28 letter to Charles Fitch, ‘Western Area Director of the Rural Electrification Administration. I appreciate your es courtesy in keeping me informed of the Housing Authority's : efforts to secure an REA sponsored co-op to serve the small > communities of Southeastern Alaska. I have asked ifr, Fitch to provide me with a copy of his answer to you. If it appears that we can be of some assistance, we will do what we can to help. With best wishes, i fol STEVENS Unjted States Senator a RECEIVED JUL 19 1974 tlingit-Haida Regional Housing Authority 525 Village Street Juneau, Alaska 99801 ) ara ~ 4 : ; & en < ‘ « . can ® - Bees ttl 3S ert E Rt at tee CMR a OE UIE a tet Ee Bee Ao oe Nowa UNITED STATES DEPARTMENT OF AGRICULTURE RURAL ELECTRIFICATION ADMINISTRATION WASHINGTON, D.C. 20230 | | Pp i es | Ely Tlingit & Haida Regional Housing Authority A YUL L9j 525 Village Street Magy 974 Juneau, Alaska 99801 ta 9, Dear Mr. Loescher: This is in response to your letter of June 28, 1974, concerning the estab- lishing of an REA sponsored organization to provide electric service to several villages in southeastern Alaska. As explained in our letter of May 10, 1974, the Alaska Village Electric Cooperative was established and supported through the mutual cooperation of several State and Federal agencies. We see no advantage to be gained by the creation of a second such organization. | From its beginning the REA concept has been to make electric service avail- able to persons in rural areas possible by providing loans for a system that would serve each individual in a service area at the same rate or cost as to others on the system so long as the borrower as a whole could maintain a feasible operation. Under this "area coverage" concept no individual would be penalized because of his location even though the cost to serve him was greater. The success of this approach can be judged by the increase in service to the rural areas in the country from approximately 10 percent to 99 percent with a loss in REA loan funds of less than one quarter of one percent, AVEC was created to serve the largest possible number of small isolated " villages in Alaska under this concept. We agree that some villages now being served as well as others not presently receiving service from an REA financed organization, may bear a larger proportionate share of the total cost to serve than do others because of their location, density or other factors. However, to exclude such villages from the AVEC organization could not only deny service to additional rural residents of Alaska but could jeopardize the financial stability of the existing organization. In addition, as previously indicated, our studies have shown that even the larger and more prosperous villages, which because of their location or economy, pay more for their electric service relative to the cost to serve as compared to the ones which pay less could not alone construct, operate and maintain a feasible electric system at a cost less than they now pay as @ member of AVEC. The reasons being that they would require the same CO. Mr, Robert W. Loescher 2 basic staffing and specialized services, such as engineering, accounting and legal, at comparable costs for such service although their investment and revenue base would be much smaller, station service...." we question whether or not the residents of these villages can qualify as RE Act beneficiaries regardless of the organization applying for a loan to serve them, Sincerely, CB bh, CHARLES W, FITCH Director Western Area ~- Electric WILLIAM A. EGAN GOVERNOR STATE OF ALASKA OFFICE OF THE GOVERNOR JUNEAU September 6, 1974 Mr. Robert W. Loescher Executive Director Tlingit-Haida Regional Housing Authority 525 Village Street Juneau, Alaska 99801 Dear Mr. Loescher: Thank you for sending me a copy of your letter dated August 22 concerning the efforts of the Tlingit- Haida Regional Housing Authority in attempting to assist Southeast Alaskan communities in their electrification endeavors. I hope, Bob, you will continue to keep me posted on this effort so I may lend personal assistance where it might help. Sincerely, (Yo William A.V&gan Governor yD ate August 22, 1974 Mr. David Hamil Administrator U.S. Department of Agriculture Rural Electrification Administration Washington, D.C. 20250 Dear Mr. Hamil: Pursuant to my conversation with Mr. Adrian Simonson and Mr. Thomas Heath in Anchorage, Alaska on August 6, 1974, the Tlingit-Haida Regional Housing Authority is respectfully requesting an audience with you in Washington, D.C. at your earliest possible convenience. As Mr. Heath explained to you, we have a problem: the Housing Authority (and various State and Federal agencics) is attempting to assist a number of rural Southeast Alaskan communities in their electri- fication endeavors. Desperately needed in each community are (1) new generation facilities and (2) a new distribution system from the ground up. We have approached REA for assistance, and have twice been advised to contact AVEC, the Alaska Village Electric Co-operative, Inc., for the service we require. (See enclosed correspondence.) Our arguments against this course of action remain the same as outlined in my June 28 letter to Mr. Charles W. Fitch: why must rural Southeast Alaska, in order to obtain a necessary and vital utility, be subjected to AVEC's rate structure, by-laws, and shaky financial predicament, when a separate REA sponsored Southeast Alaska Co-op, if established, could most likely justify lower rates and still demonstrate financial stability and payback ability. Mr. David Hamil, Administrator ~2- August 22, 1974 Lumping all of Alaska into one common category for any purpose is not practical. Comparing Northern Alaska with Southeast is lke comparing apples with oranges, or New York State with Florida. We have prepared a comprehensiva report, including background infor- mation, technical trip reports, economic profiles, T-HRHA, Alaska Power Administration and BIA involvement, designs, material lists, costs, REA and AVEC correspondence, etc. on the subject communities and would appreciate meeting with you to present our case. Thanking you in advance end hoping to hear from you soon. Sincerely ’ TLINGIT-HAIDA REGIONAL HOUSING AUTHORITY Robert W. Loescher Executive Director CJG: RWL: clm Enclosures ce: BIA Area Director, Clarence Antioquia City of Hoonah City of Angoon City of Kake City of Klawock Chilkat Indian Village Council - Klukwan U.S. Senator Ted Stevens Honorable Williom A. Egan, Governor of Alaska Commissioner Byron Mallott, Community & Regional Affairs Tiingit-Haida Central Council 4 Alaska Village Flectria Co-op / ' Alaska Power Administration, Juneau Joe Wilson, Southeast Agency Adrian Simonson - REA, Anchorage Thomas Heath - REA, Anchorage &) Mr. Robert W. Loescher 2 fapidly as it is economically feasible to do s0, believes more Alaska villages can be provided such service by channeling REA loans through AVEC, We are most willing to work with you and AVEC in an effort to provide electric service to the southeast Alaska village residents at the earliest possible time. We welcome the opportunity to discuss this entire matter with you and are agreeable to your proposed meeting. September 30, 1974, at 9:30 a.m., would be the earliest most convenient time for us. Please advise if this i is satisfactory and if not what date you can arrange to be in Washington. | Sincerely, DAVID A. HAMIL, Administrator <a enh ry. — b mn ae a roe bs | I; }. @ ee | 1 | ‘ a ee nn > a > j ‘ €i* " ; « he Sn EA oe tak aie Met Seat a Tt tie Ue ob RRS iat ed oo Anh haw et * : ‘ Re B as PER WARREN G. MAGNUSON, WASH., CHAIRMAN eesemess HORMIS- COTTON, NH, ‘ HARTKE, IND. JAMES &. PEARSON, KANS. rye PHILIP A. HART, MICH, RORERT P. GRIFFIN, MICH. i WOWARO W. GANNON, NEV. BAKER, JR., TRNN, rene one, ora =, Wited States Henate (> DAMIEL K. INOUYE, HAWAII WORN v. Tunney, CALIF. COMMITTEE ON COMMERCE ne “Rh WASHINGTON, D.C. 20510 i (PREDERICK J. LORDAN, STAFF DIRECTOR . reo (MICHAEL PERTSCHUK, CHIEF COUNSEL , Fs ag > September. 9, 1974 foe Mr. Robert W. Loescher bcstint ' Executive Director Fine “ome Dlingit-Haida Regional / ae Housing Authority Meas 525 Village street Pet Juneau, Alaska 99801 Dear Bob: ; I appreciate receiving a copy of your August 22nd letter to David Hamil requesting a meeting with him in Washington to discuss the possibility of establishing an REA co-op in a Southeastern Alaska. In this regard, I have written the enclosed letter to Mr. Hamil requesting that he schedule such a meeting with representatives of the Housing Authority. a I do hope this will be of some assistance in your efforts to arrange this meeting and appreciate the opportunity to be of some help. If we can be of any further assistance, please don't hesitate to let us know. . With best wishes, EVENS United States Senator Enclosure epee Soi + ae oe Pe PREP agent: NOTRE MIR ts TE Se SMe’ Gp AQT Et Tt regener soo 5 mmm t : : . Mr. David Hamil rl inews ) Administrator Hi . Rural Electrification Administration bone U. S.: Department of Ayriculture . trp ims, ascents eins: oranallaghington, D.C. 20250 Ae ow “Seniesa ie eA RS niet Dear Davet # I have been notified that the Tlingit-Haida Regional 3 Housing Authority has requested a meeting with you in Washington .», to discuss the iousing Authority's desire to assist a number id of rural southeast Alaskan communities sputeat waate aléotrigar 2 genanatiow and distribution: ‘systems. t.5, Vik ; ts teg ee sp me Spe ere eeemger oer Would” vary ‘much “appreciate:dtrtt “you: scsi oeoencen sie ee time in your very busy schedule to meet with members of the’ |. a Housing Authority in this regard, I am aware of the earlier Ke correspondence pataeen the Housing Authority and REA on this ah . subject and the positions taken by each party. I do, however, Pdi Mthink.dt would be beneficial’ for. all concerned if the Housing... 1)... .» +. Authority could be provided with an opportunity to Sisquas ‘this ae {y-1\ matter personally with you and Charles Fitch, | Petter 7 oe ae BE rican eke ris be8 ie f ad appreciate your continued concern for Alaska? s rural £60 electrification needs and do hope you will favorably consider fogs this request. With best wishes, Cordially, Py TED STEVENS g United States Senator OHM O-PASTORE, F.1, Nomes COTTON, HH, dANGH HARTKE, IND. JAMES B. PLARGON, KANG. wettur A. HART, MICH. ROSERT P. GRIFFIN, MICH. « MUIWARD W. CANNON, NEV, HOWARD H. BAKER, Jn., TENN, RUSSELL B. LONG, LA. MARLOW W. COOK, KY. ry FRANK £. MOSS, UTAH TED STEVENS, ALASKA IW D Senat ERNEST F. MOLLINGS, 3.c. J. GLENN BEALL, JR., MD. aifed fates eS —~_OAMIEL K. INOUYE, HAWAIT JON V. TUNNEY, CALIF. COMMITTEE ON COMMERCE ADLA! E. STEVENSON 111, WASHINGTON, D.C. 20510 September 18, 1974 Mr. Robert W. Loescher oe Executive Director Tlingit-Haida Regional Housing Authority 525 Village Street Juneau, Alaska 99801 Dear Bob: By the enclosed letter from Dave Hamil, I have. been = notified that a meeting with the Housing Authority and REA ae has been scheduled for September 30th. If we can be of any further assistance with regard o~ to this meeting or any other matter of concern to the Housing Authority, please let us know. With best wishes, Co lly, VENS ited States Senator Enclosure UNITED STATES DEPARTMENT OF AGRICULTURE RURAL ELECTRIFICATION ADMINISTRATION WASHINGTON, D.C. 20250 September 11, 1974 M& SEP 13 1974 + Honorable Ted Stevens United States Senate : .. Dear Ted: OEE pith Thanks for your letter of September 6 concerning the Tlingit~Haida Regional Housing Authority people meet- ing with me, ‘ ; We have scheduled a meeting for September 30--my ».- travel schedule is quite full right now. : ss T appreciate your interest; let me know if I can help Te a Ae at any time, - >. Sincerely, *4 *. David A, Hamil 4 Administrator * re, SA . Ne tctidis £2, “one ae Sa dettde Se ght pathic ‘aly Seagate WARS aa setha SAL Ee rare PTS ete Ui ae ay NY s eat eee tA orca Teak tlingit & haida regional housing authority ROBERT W. LOESCHER Executive Director October 1, 1974 The Honorable William Egan Governor of Alaska Pouch A Juneau, Alaska 99801 Attention: Warren Willey Commissioner Byron Mallot Regarding: AVEC and a separate REA Co-operative to serve Rural Southeast Alaska Dear Governor Egan: - Pursuant to your request for information, please find enclosed a copy of a resolution from Alaska Village Electric Co-operative, Inc.: regarding AVEC support and endorsement of the Housing — Authority's efforts to have a comprehensive study conducted in the villages of Hoonah, Kake, Angoon, Klawock, and Klukwan to determine the feasibility of establishing a separate REA sponsored Co-operative to serve rural Southeast Alaska. Last winter, the Tlingit-Haida Central Council, the Tlingit-Haida Housing Authority, the Bureau of Indian Affairs Area Office and Southeast Agency and the State Department of Community & Regional Affairs participated in a meeting to begin a method of action to up-grade the totally inadequate and substandard electrical genera- tion and distributions systems of the aforementioned villages. The direction we are taking today, stems out of the activities of those sessions and a subsequent study performed through the auspices of the Bureau of Indian Affairs and the efforts of the Housing Authority. FRANK SEE — Chairman, Hooneh CYRIL GEORGE — Ist Vice Chairman, Angoon ROBERT SANDERSON — Treasurer, Hydaburg CAROLYN POWELL — Secretary, Yekutat BERTHA CAVANAUGH — Member at Large, Kake 525 VILLAGE STREET JUNEAU, ALASKA 99601 TELEPHONE (907) 586-2192 Honorable William Egan October 1, 1974 Page -2- The resolution adopted by the Alaska Village Electric Co-operative, Inc. will allow the Housing Authority to now visit the United States Rural Electrification people in Washington, D.C. and present a case for the performance of a REA feasibility study for the participating communities. To this point, REA has taken the - position that AVEC is the only official rural borrower in the State and that the Tlingit-Haida villages have to go through AVEC in order to secure assistance of REA and any future funding. The Southeastern communities do not endorse this concept and feel that the AVEC system and philosophy and cost are not realistic in our region and that a better job can be done in forming a separate Co-operative to serve the residents of the area. As you might have read in the Alaska Empire edition of September 20, 1974, in a newsrelease announcing proposed National Budget cuts by President Ford, it was brought out that he is recommending that the total appropriation of over four hundred and fifty million dollars be deleted from REA as a part of national austerity program. It is our humble opinion that Alaska communities are probably the only areas of the nation that could qualify under the existing REA Act in the truest sense of the Law and that a full deletion of the . appropriation would adversly affect our communities and co-operatives to develop and establish viable electric systems throughout the State. Hopefully, our Senators and Congressmen would act to stop the President's action in deleting this appropriation from the National Budget since it will play an important role in funding sources over the next few years, not only to Southeast Alaska, but other areas of the State. Any support the Governor's office can give us in this regard would be greatly appreciated. Thanking you for this consideration. Sincerely, | TLINGI AYIDA REGIONAL HOUSING AUTHORITY Robert scher Executii rector oat emee Honorable William Egan October 1, 1974 Page -3- Enclosure ce: Central Council City of Hoonah City of Angoon City of Klawock City of Klukwan City of Kake REA - Mr. Hammil APA - Dan House Senator Ted Stevens Senator Mike Gravel Congressman Don Young 999 TUDOR RD., ANCHORAGE, ALASKA 99503 TELEPHONE 279-3548 September 16, 1974 Robert Loescher Executive Director Tlingit Haida Regional Housing Authority 525 Village Street Juneau, Alaska 99801 Dear Mr. Loescher: In accordance with recent correspondence and followup of your meeting with the A.V.E.C. Board, attached is a copy of a Resolution passed by the A.V.E.C. Board on September 10, 1974. Best Wishes, ALASKA VILLAGE ELECTRIC COOP) eneral Manager LMH/ma Enel... RESOLUTION NO, ENTITLED: DEVELOPMENT OF A SOUTHEAST ALASKA ELECTRICAL COOPERATIVE WHEREAS, the Alaska Village Electric Cooperative, Inc. isa nonprofit Cooperative association established under the and by virture of the Electric and Telephone Cooperative Act of 1959 for the express purpose of providing electrical generation and service to the People of small and often remote village of the State of Alaska, and, WHEREAS, AVEC'S Electrification program was made Possible through an ... REA loan granted in 1968 and subsequent REA loans to date, and, WHEREAS, the Alaska Village Electric Cooperative was established and is being supported through the mutual cooperation of several state and federal agencies, and WHEREAS, AVEC is currently providing service to 48 villages in the State of Alaska, only one of which is located in Southeast Alaska, and WHEREAS, the Tlingit & Haida Regional Housing Authority is working with various State and Federal agencies in an effort to electrify several rural Southeast Alaskan communities. THEREFORE, BE IT RESOLVED, that the Alaska Village Electric Cooperative, Inc. does hereby approve of and endorse the Authority's efforts to have a comprehensive study conducted in the villages in question to determine the feasibility of establishing a separate REA sponsored cooperative to serve rurai Southeast Alaska. Passed and approved by the Board of Directors of the Alaska Village Electric Cooperative, Inc. this Sa day of SeoX , 1974, bya vote of yeas and nays. President Alaska Village Electric Cooperative, Inc. Kp Secretary September 24, 1974 Senator Ted Stevens United States Senate Room 317 Old Senate Office Building Washington, D.C. 20510 Re: REA Funding Dear Senator Stevens: Thank you very much for your assistance in arranging a meeting with REA Director, Mr. Hamil in Washington, D.C. This has been something we have been working on for a long time and hopefully, we will be able to present our case about an REA Co-op in the feasibility study being accomplished by the REA administration for Southeastern Alaska, In the newspaper, The Daily Alaska Empire, Friday - September 20, 1974, we noticed in President Ford's news release regarding National Budget ‘keuet that he is proposing to eliminate totally the REA budget appropriation of four hundred and fifty million dollars. This action would almost totally pre- empt our involvement with the developing of our REA Co-op in our region. To ‘a large degree, there is argument that the current law is being over-extended in providing finances for existing systems throughout the United States, how- ever, as we have related before, we are of the opinion that Alaska is probably the only area of the nation where the REA Act could be properly employed to develop sub-standard and non-existent electrical generation and distribution systems. I would hope that, in your efforts, you might consider representing our viow, that appropriation should not be totally diminished. Agein, thank you for your assistance and we will drop by and visit you in Washington next month. Senator Ted Stevena Re: REA Funding Page 2 Sincerely , TLINGIT-HAIDA REGIONAL HOUSING AUTHORITY Robert W. Loeschar Executive Director ce: Loard of Commissioners, T-HRHA Tlingit-Haidu Central Council City of Kake City of Klawock City of Angoon City of Klukwan City of Hoonah RWL: lg : a , GALE W. MC OEE, wro. EDWARD W. BROOKE, 2 socom, —-Soaane bane see, Aenited Blates Senate a MEPERY BELLMON, OKLA, IASHINGTON, D.C. 20510 ‘THOMAS F. EAGLETON, MO, LAWTON ChaLes, FLA. ‘SAREE R. CALLOWAY October 4, 1974 ECEIVE \}) Mr. Robert W. Loescher Executive Director rey | 1974 Tlingit & Haida Regional COI Housing Authority seat (toackag, Ruliacily 525 Village Street sheets Magick GESTS Juneau, Alaska 99801 cas ViNE® ©" 9980) Juneau, Alaska Dear Bob: Thank you for your September 24th letter. Mr. Hamil has advised us that the meeting is scheduled for October 16th at 9:30 in the morning. I am going to be away from Washing- ton on that date, but I do hope you will drop by the office and visit with my staff. Recently, the iiouse Appropriations Committee approved the new Agriculture Appropriations bill. ‘The new bill author- izes $700 million in insured loans for the REA ‘electric pro- gram and $200 million for the telephone program for FY 1975. The original bill, vetoed by former President Nixon, called for $750 million for electric and $200 million for telephone insured loans. Representative Jamie Whitten in the Committee Report, a copy of which I have enclosed, pointed out that insured loans “are excluded by law (PL 93-32) from the budget totals." Although President Ford has called for a rescission of $456 inillion REA two percent loan funds, the newly passed Congressional Budget and Impoundment Act of 1974 requires that the President obtain Congressional approval for rescissions. Because the REA insured loan program does not fall under the ‘budget, it is doubtful that Congress will agree to this rescission. With best wishes, TEVENS United States Senator Enclosures July 11, 1974 Mr. James House Page 2 As you are aware, Mr. House, the situation is quite critical. We feel that an electrification project for rural Southeast Alaska communities is imperative; the question is how to best finance and administer such an undertaking. Any assistance you can give us will be appreciated. “Thanking you in advance. Sincerely, TLINGIF-HAIDA REGIONAL HOUSING AUTHORITY JAZ 7 ‘Sled >4 fy Robert” /oescher Executjye Director cc: S.E. ‘Agency - Joe Wilson B.I.A. Area Director - Clarence Antioquia City of Hoonah, Angoon, Kake, Klawock Central Council RWL: rw July 11, 1974 Mr. James House Page 2 As you are aware, Mr. House, the situation is quite critical. We feel that an electrification project for rural Southeast Alaska communities is imperative; the question is how to best finance and administer such an undertaking. Any assistance you can give us will be appreciated. “Thanking you in advance. cveineenin Sincerely, = Lp REGIONAL HOUSING AUTHORITY ae Execut pye'| Director cc: S.E. Agency - Joe Wilson B.I.A. Area Director - Clarence Antioquia City of Hoonah, Angoon, Keke, Klawock Central Council RWL: rw \ . } . Uplea States Department of the Interior ALASKA POWER ADMINISTRATION | P.O. BOX 50 JUNEAU, ALASKA 99801 IN REPLY REFER TO: July 19, 1974 700 Mr. Robert W. Loescher Executive Director Tlingit & Haida Regional Housing Authority , cee maton 525 Village Street » Juneau, Alaska 99801 Dear Bob: Ihave your July 11, 1974, letter requesting APA assistance in your efforts to solve power problems in several Southeast Alaska communities, and it was good to hear from you yesterday that you have made arrange- ments for your August 6, 1974, meeting in Anchorage with the REA ~~ representatives. [~~ Bob Cross and Mr. Guinn talked briefly today and Mr. Guinn suggested that we plan on getting together sometime after August 6 to explore further the ways that APA might help. I contacted Mr. Fitch by telephone on July 1 and went over the items we had discussed with you. We also sent him a copy of the current _ Alaska Power Survey studies. Sincerely yours, . V. House Administrator Save Energy and You Serve America! ann oa a SERVE = CON: - X pid widentes eee Sheth a he talline SE ee alt ra bento, tha bala sare BOARD POLICY NO. \ erreerive onre /?/ SECT: VELLAGE NOUSEMIRGIG HATERTAL POLICY OF THE COOPERATIVE ZREAS, the Cooperative has provided meanders with housewiring ine initial AVEC construction period, and eassary to enate AYEC me 2EAS, this practice is considered n2c: : ‘ * 5 aie bers <9 prepare for the establishing of electric service, and AS, it is necessary that a firm policy be eaacted to provide guidelines for the administration of this procedure; TT RESOLVED by the Board of Directors of the Alaska opative, fne., phat » A. The Cooperative wishes to encourage the use of safe practical housewiring isaterials by village members. B. Villages wisning to take advantage of this program must agree to enter into a houseviring agreement with the Cooperative. The agreemant will 1. provide that material not yet paid in full will be stored in a sare place and controlled by a competent parsons 2. make provision for payment in accordance with sections of this policy; and — Il. Ill. C. The be signed by the President and Secretary of the City Council, or if the agreement is with an individual, the contract shall b2 guaranteed by the City Council. City Council? will be provided with a list of materials to be orovided, and an estimate of the total costs. The co Cooperative will order the shipment of niaterials only. upon receipt of the signed agreement. MATERIAL CONTROL A. Custody of housewiring materials will be assigned to a re- sponsible person in the village. He will 1. 2. 3. PAYMENT, A. The inventory the materials upon arrival at tne village and provide AYEC with a receiving list; provide safe, weatherproof storage for the materials until all have been sold or purchased by the City; and sell, trade, or dispose of the materials. in the manner designated by the Council. ‘ village will pay for all materials received at cost, including freight as follows: 1/2 at the end of the first month following receipt 1/4 at the end of the second month following receipt 1/4 at the end of the third month following receipt repayment may be accelerated IV. Erraabie de ates Vv. VI. RESALE: A. “Vist. A. The materials custodian will handle the sale of materials in accordance with instructions provided by the City Council. Sufficient "mark-up" should: be allowed to permit the payment.. in full to the Cooperative. Excess profits should be placed in the City Treasury for disposal as the wonents may desig- nate. The Cooperative will provide a suggested resale price ; . : . . pan tempat, MATERIALS USED BY AVEC: Any housewiring materials used by the Cooperative for the wiring of homes occupied by welfare recipients or for other purposes, wil] be repurchased from the village at replace- ment cost (not at resale price). At’ the option of the vile lage, the Cooperative may replace the materials used in kind.- Any: such purchases will be carefully recorded by the va abes, and the AVEC Bons truction Coordinator, and the information . relayed promptly to AVEC's accounting office. EXCESS MATERIALS: This program is designed for villages under new or original construction only. Replacement orders of housewiring ma- terials by the village must be placed through a commercial supplier. The Cooperative will assist the village to place such orders, upon request, but in no way, should AVEC be. considered a guarantor or endorser in any such transaction. VIII. EFFECTIVITY: “A. This policy applics to all pending or future orders for: housewiring materials. : Be. This policy supersedes and replaces all previous written or verbal agreements of any nature relating to this subject. ra . : thay hee : ie ama > Sg: 5 . 4 é +\* ,* sy . india: Sse . ‘ . ; = Cs “ye * PURCHASE ORULK ALASKA VILLAGE ELECTRIC COOPERATIVE, ‘INC, : al March 2 azz MERC ROAD ANCHORAGE, ALASKA 99504 " ce ae = ‘ SHIPPING INSTRUCTIONS a ’ r a Ne oa ‘t 2. | General Electric Supply Company... WW “OO at ¢ 115 Whitney Road Sy “y 20. P.O, Box 1059 An ny er ~ Anchorage, AK 99501 ; oie taney Order For Materials. Subject To Terms And Conditions Specified On. Pied Side Page ] of 6: Pages i y my DESCRIPTION ee a PRICE 4 TOTAL ea. TL212 MU with TC125 Hub & Wireway Ground Inlet : 24.00; .. 720.00 ea. :, TQAL 2170 70A 2-pole main brk. : i / 7.38 °14.76 , ea. TLM 812S Load Center Bit cube Bec, ‘ey ssiscidedaghd losis, 14622 ea-|” °° "TQP 120° 20A 1-pole Brk. eke, ‘ : ’ 1..75 87.50 ce ‘eas < TQP 115 154 1-pole Brk be al Boa ae Ho i.75| -. 87.50 i ift. 1-1/4" Flex Steel Conduit SMa Latest (| 34.50/CF} ° 120.75... lea. T & B 257 1-1/4" Flex Connector - re ; - 85.00/C “42.50 ‘ leas|\.. Raco 2235 1-1/4" 2-hole strap. - 3.90/C 3.90 lea.|.. Blackburn 6258 5/8" x 8' Ground Rod. : 474.00/C] ° 142.20 i lea.|.°. Blackburn G5 5/8" Ground Rod. ‘ : : ies 47.15/C): 2: 14.15 / ift.| . #6 BSD Copper eae tM: , 94.87/MF|-" 28.46. aS ift.| ~; 12/2 with Ground Romex woh . | 59.90/MF} 449.25 of lea. . Scotch Lock Type R a : : 3.33/C : 16.65 a | lea.| °° Scotch Lock Type G : i ‘| -6,00/C 30.00 ‘ Jea.| «© - RACO 972 Ground Clips : : = 2.57/C | » 51.40 ‘ lea. RACO 153. 4/0 Box Romex Type . 30.44/C "45.66 lea. RACO 722 4/0 Box Cover w/!s" KO -7.60/C 11.40. lea. |... ./741X20GL Meter Socket 200Amp Ue, 4-Jaw 12.10 ew sOes Yeas |.’ RACO 670 Handy Box . 24.44/C 48.88 4 Sea, |” RACO 865 Switch Plate, 1 gang “liner MSG(C. | jx. S367 Sea. RACO 864 Recept. Plate, 1-gang | 7298/61, “29/310 | jea.:| \» ° GE 4050-1 Duplex Receptacles, 3-wire > _ 69.30/C 86.63 ' Sea. |* GE 5981-1 Single Pole Switch, 15A i 43.05/C ‘,oacee Jea. GE 5751-7 Keyless Recept. - Pull Chain 64.05/C 64.05 Sea. | : Progress P 5974 Outdoor Light ' . i 2.45 61.25 dea. T & B 3302 Romex Connectors, 1/2" ; . 10.70/C ‘21s 40 Jea.|-. | Viking #100 -P-1 Staples, Romex 5/8" x 1" (5, boxes) -2.72/C 15.23 | dea. |. #8 x 3/4" Flat head, screw . y 1.15/C 11.50 Dea. |. #4 x 1" Flat head screw : pyres 2.50/C -5.00 Prices quoted F.0.B. Seattle Dock, laid down, export packaged. bathe Export Packaging Charges to be Added:- (Important Note: Enclose at least one copy of export : packaging billing with your eran invoice.) . mie? : : , TOTAL —> | ~ ; WUNT NO. tion ee RCHASE ‘ORDER NO. must APPEAR ON ALL IN- ACES, PACKAGES ETC,’ NVOICE IN TRIPUCATE AND SEND AU CORRESPON- YENCE VIA AIRMAIL, >. LEASE acon THIS, Oe at TOS wi IHIPPING DATE. - ALASKA VILLAGE ELECTRIC COOPERATIVE, INC. «5 , Signoture pn mrt By ° ; . Tile ALASKA VILLAGE ELECTRIC COOPERATIVE, INC. UNDERGROUND DISTRIBUTION SPECIFICATIONS 1. DESIGN CRITERIA: A. D. J High voltage distribution (except Old Harbor shall be 12470 Grd Y/7200, single phase or three phase as specified for each village, Villages with three phase generation shall be de- signed to balance the phase currents. Only single phase trans- formers shall be used. No transformer shall be less than 25 KVA. Low voltage distribution shall be 120/240 volt single-phase, three wire grounded neutral. : Voltage at each residence may not vary more than 5% from 120 volt base. Consumption for voltage drop calculation shall be based on an average of 300 KWH/month. See REA Bulletin 45-2 (Demand Tables). Old Harbor is a three-phase 277/480 volt, 4-wire primary and 120/240 volt 3-wire secondary overhead system on 30' Class 6 poles, Grade B construction using 600 volt 2/0 aluminum quad- plex primary cable and 600 volt 2/0 aluminum triplex secondary and #2 aluminum 600 volt triplex service. All transformers shall have a fused cutout’: in each phase con- ductor. The design and installation must be in accordance with published REA Specifications for overhead systems. The final design must be AVEC approved for each village prior to contract award. “ Utilidor: 1. The minimum size of utilidor shall be a. Single primary cable - Mode A (2 x 4 & 2 x 8) b. Single secondary cable - Mode B (2 x 4 & 2 x 6) c. Single or double service cable ~ Mode C (2 x 4) d. Multiple primary, secon- dary cables - Mode F (2 x 4 & 2 x 10) e. All road crossings - Mode D (2 x 4, 2 x 6 & 2 x 10) 4s 2. Utilidor shall be staked to the ground every 10' with each stake 1l.- WIRE: A. alternating on opposite sides of the utilidor. The stakes shall be driven to a minimum depth of 30". The utilidor shall be elevated at least 2" above grade to allow the circulation of air underneath. All Utilidor lumber shall be kiln dried fir. All lumber splices shall be of overlapping construction. Construction will be continuous between pedestals and transformers. No common butt joints will be allowed. + ened ages 3 High Voltage Cable L. All high voltage cable shall be XLP cross linked polyethylene primary URD 15 KV grounded concentric wire neutral. The conductor shall be #2 AWG 4 strand aluminum with 175 mils of cross linked polyethylene and 30 mils of a conducting poly- ethylene layer with 10 #14 solid coated copper wires uniformly spaced around the cable as a concentric serve. B. Low Voltage Cable: L. All low voltage cable shall be XLP cross linked polyethylene URD 600 volt, triplexed assembly. U/L type use individual conductors. The two phase conductors and one neutral con- ductor shall be, cabled together into a triplexed assembly. The two phase conductors shall be aluminum with black type use insulation. The neutral conductor shall be aluminum with yellow type use insulation. All secondary conductors shall have 2 #4/0 aluminum phase conductors and 2 #2/0 aluminum neutral conductor. { All service conductors shall have 2 #2 aluminum phase con- ductors and 1 #4 aluminum neutral conductor. 111. EQUIPMENT: A. All equipment used must be listed in the REA Bulletin 43-5 "List of Materials Acceptable for Use On Systems of REA Electrification Borrowers" dated July 1971 and Supplement #1 dated January 1972, or any later supplement or revision of the same. Transformers:. (Except Old Harbor) All transformers shall be single phase, pad mount or mini pad cead front type rated 60 Hz, 12470 Grd Y/7200 primary side and 240/120 volt or 120/240 volt low side and equipped as follows: oe 1. 2 HV FSNA or equivalent load break bushings tied solid for loop feed operation. 2. Low voltage neutral bushing. 3. Parking stand bracket midway between high voltage bushings. 4. Low voltage 5/8" 11 thread stud bushings. 5. Two taps 24% above and below. 6. Secondary circuit breaker. 7. Transformer tank grounding lug. 8. Tamper proof enclosure. —_—— 9. Penta Head bolt kits. - 10. All equipment must be REA approved. No transformer shall be sized less than 25 KVA, Pedestals: Secondary power pedestals shall be above grade, tamper proof enclosures, a minimum of 10" x 10" x 46" with hot dipped galvanized a green painted finish, double thickness stake, re- movable front with hasp to accomodate padlock. Pedestal connectors shall be of the insulated type to accomodate 6 conductors from AWG #2 Al. Str. to #4/0 Al. Str. with a non- compression type of connection to allow connection and dis- connection of individual conductors without disturbing adjacent -connections. Transformer primary connectors shall be of the elbow load break type 15 KV 200 Amp. Transformer secondary connectors shall be of the insulated type with a capacity of 8 individual conductors per bushing with a wire range of #2 Al. Str. to #4/0 Al. Str. on the phase conductors and #4 Al. Str. to #2/0 Al. Str. on the neutral conductor. IV. INSTALLATION: A. Direct Burial: 1. All primary cables shall be buried a minimum of 30" below grade. All secondary and service cables shall be buried a minimum of 24" below grade. ; 2. All cables shall be laid very loose in trench to prevent line breakage due to contraction of conductors when the ground freezes. # Preferably backfill and material around cables should con- sist of loose well drained sand. If sand is not available backfill shall be clean earth free of rocks or forelgn objects. 4. Each cable trench shall be plainly marked with cable warning stakes protuding 48" above grade. 5. A 3" wide yellow plastic warning tape with metalic strip shall be buried in each cable trench 6" below grade. Utilidor: }. All utilidor shall be staked and elevated as described in Section 1-H. Elevation will be insured by presence of runners or scrap material underneath the utilidor for float. 2. Road crossings shall be covered by a minimum of 12" of clean earth fill. 3. The utilidor shall be nailed a minimum of Inail per foot, per side on the bottom and 1 nail per two feet, per side on the top plank. Pedestals: 2 1. All pedestals shall be supported by a double thickness steel stake driven no less than 3' in the ground. 2. Each pedestal shall be grounded from the pedestal can to an 8' x 5/8" copperweld ground rod with a #6 bare copper wire. 3. All conductor terminations shall be treated with a corrosion inhibitor such as fargoline. ‘ 4. All live conductors and connectors shall be properly insulated so no live parts are exposed when the pedestal cover is removed. Transformers: © 1. All transformers shall be mounted on a wooden pad fabricated with pentachiorphenol treated 4" x 12" timber. 2. All transformers shall be grounded at the tank grounding lug, the primary concentric neutral and the secondary neutral bushing to a 8' x 5/8" copperweld ground rod driven at each transformer. 3. Primary and secondary bushings shall be properly insulated so no live parts are exposed when the transformer lid is opened. E. Right-of-Way: All transformers, pedestals, primary and secondary cables shall be located withing the Right-of-Way assigned by the housing authority or within existing Rights-of-Way issued to AVEC by the land governing body within the Village. All above grade equip- ment shall be so installed as to present a minimum obstruction to normal foot and vehicular traffic. ar o AThe letter also serves 25 a cover for the enclosed iniors ~ Juneau, Alaska 93303 eee ns ce ne en ete ee nn ene om ee et - a Ri August 39, 1973 , - oo The Honorable William A. Es Governor; State of Alzska Pouch A » n re 2h. gar Governor Ecan: This letter Is a followue request for support ef Alasxe Vili Inc. and to advise the srabable events if additional State s RET s most compiex, cparatiz + t y the e fare yy process; constituents who « strongly a! fected hee eny adverse decis Ig A The time has come “to pe t AVEC on a workable financial Sasis and ‘pravent month by smonth uncertainty as to the future course, or survival. No other electric utility m ! approaching the scoce and coverage of AVEC is faced with such a very complex, yet continuing uncertain, planning process. While | know thi n ‘ the hands of administrative assistants ' of some of tna d ‘ i re peomienee that they choose to also routs } this fetter t isi f k ‘everyone on b tadlisned ar | facilities atone. Te ‘ : on } : po | failures and power out Why is AVEC coming to the Governor with this request, simultaneous with request to the SOS and BIA? tee tact ‘ ° a es he Sg Na Tae eee Ae A Ay gba the Ee ia PR SESE gh a ~ the Hon orable William A. Egan August 30, 1973 : Page Two The widespread impact this program has in Alaska on many other agencies and persons; ; ; The long range contract funding for purchase of school power, through the State Department of Education was critical and essential for initially borrowing the REA money and establishing the program in 1968; Adequate contract funding from SOS, as well as BIA, for school power - is vital for continuation of the program---by the same token large a- mounts of reliable electrical power are vital for the planned educational programs; To overcome certain misconceptions and any ill placed resistance to the oregram, which may emerge in the complex funding cycle, SOS origi- nated funding requests must survive; To request your unqualified support for the program as a vital ingredient in the longer range development of rural Alaska; To determine if the planned expansicn rate into new villages is satis— factory from an overall! State view since the emount of money required by AVEC, from the State, will increase in the future due to (a) increased number of villages served; (b) larger and more sophisticated schools served (area high schools as an example); (c) possible future pickup of BIA schools by the State; and (d) reflection of overall inflation of costs in line with the State and Nation; ~ : The budget impact Is largely on one agency (SOS) yet the overall issues at stake are broader than might be readily visualized and aggressively supported by any cne State Agency. "The impact of AVEC, in Alaska, is substantial from a financial, social, egal, and possible present, political standpoint. While the problems may be somewhat submerged at the potential impact is staggering if the program would be allowed to fail apart. To cite one example, the village people of Alaska, in AVEC villages, have invested well over $1 million to date, and the figure is growing daily, in electrical appliances, freezers, etc., just to be able to use electricity in their homes, with- out figuring housewiring, store inventories, etc. : ; e.. attacned two letters, to Morris Thompson, BIA Area Director, and Stanley Friese, Superintendent, State Operated Schools, clearly outline the problems, the heavy new load requirements, and the requests for support. The contents of the . aiid ‘ ie ae “yal yep the A eg BS RCL ae erate dt cl seal aM ges ath 82 Sy Py. Honorable William A. Egan . ES August 30, 1973 7 Page Three . . em ¥ : er agg two letters are similar, with some variation due to different building schecuies: i Itls extremely important that this support be arranged witnout further delay. — Eeriier request correspondence to your office, of February 13, 1973, outlined some of the crobdlems and requesi for the initial increase to the contract rate. The State agreed to the concept of the original contract in 1968, in order to get the pregrem started, and a modification was supported in 1971, to prevent failure. re % = There vas no problem or lack of commitment at that time, after presentation to the ¢ Governers and their staffs, ner any question concerning the authority to sign. The contract currently in effect calls for payment of $2400 per month, per school, which _was signsd and roved on May 1 AVEC would now be in bankruptcy and a nezvy Ilability to the State and/or Federal Government without the increased revenue Drovided by the State end BIA by the modifications of 1971. However, costs to AVEC continue to increase with fuel prices, the single largest item of cost, rising rapidly. padvec simely cannot survive in a high cost inflationary environment, with rapid ex- pansion needs, unless increased revenue is cdtained in step to match the program needs. As indicated, the current new REA loan reauest, in the amount of approximately $3.6 million, is dependent on the increased school revenue to demonstrate feasi- bility. No new village power systems can be constructed, or the many required ‘improvements to the existing syst2m cannot be completed, without this loan. If the State of Alaska believes that AVEC should not expand in any more communities, . beyond those already served, or ona different schedule than proposed, AVEC would like to know this for plenning purposes. This is very important information required for requesting loan money, keeping villages informed of future schedules, planning future revenues end expenses, and scheduling availability of fuel oil. One example of the planning precess problems AVEC is faced with is jong lead time on equipment. Transformers which are a vital component for distribution systems are now being quoted, by our suppliers, up to 60 weeks delivery after a firm order. The very limited and short shipping season throughout most of Interior and Western Alaska adds to the schedule problems. With the uncertainty facing AVEC, itis not possible to plan and order for the next construction season since the money may not be available to pay for the equipment---yet the need is definitely there, both in existing villages and hoped for expansion. 2 Why is AVEC asking the State and BIA for these power purchase contract adjusiments? Co ee ote, - a % ae oe £ “~ “ag } ' oe? ee eto test we RI Tae bia rat he: Phe Honorable William A. Eg2n August 30, 1973 ~Page Four 1. To operate the progrem, as it exists, at an acceptable standard of per- formance. 2. Torestore 10-year is ‘c2 feasibility and tharesy obtain required new REA loan monies to meet the real needs for expansion in existing vi:tages, and mocest exsan i v Villages. 3. To overcome th nflation which are only too evident to every- “* one in a fundin sgh 8. To prevant cc! f the Co-op and a resu!tent, probably h2avier load on ine stete/ Fs vernment. “ mH te @ s w The waiter villages are being built largely with outright ig factric power. A lettar of arch grants.’ lerce , 1973, From CMH Co7seu ineers ac is salf explanatory, concerning tne heavy new , for b ne AVEC served viilage, inuleto. a Another a « wo ufe Water facility at Alakanuk to oe built, in _sonjunc : eos: with a ant inciudes washers, dry2: hovers, “cena, ni sewage pumps, etc., ali of woaich ere dapencent en a sudstentie: c-antity quaiity and reliable electricity for proper cperations. Similar programs ere Starnes er already underway, in other AVEC viliages. The new scher!, ef course, is constructed with State money. The only major facility of ‘the devaiscrant package which must be built with lo2n money, where repayment feasibility must be demonstrated, is the electrical power generation and distribution. Any future &crrowing will only be possible if feasioility for repayment over the life of the ice is demonstrated. Itis interesting to noize that the Emmon2ak Deman- stratisn Project uses more power than eny other health facility yet. The fecitity alone has « eed averace of 7,195 KWH curing the first six montns of 1973, or as much © average scios! alone consumad two years ago. The new Siate Village Safe Water facilities planned in conjunction with tne regional hig? ‘comparaciz ts the Emmonak facility. The direct grant cost of these faciliti the Vi a Water Program, is $500,000 to $459,030 per villege Alakanux, as examples. Tne maximum AVEC has available for any fac less than 3229,000, with the everage nearer $100, Oud w hich wes borrows edi and must be repaid. oe i es % see 2 a wThe need grows with each new and larger school, naw water and sever s tem (PHS, op, or V5.2}, new house, nev! luach program, new business, and naw Pie Electricity in the villages must de treated with the same priority attention, and re- "source inout, or-the results of an unbalanced program will only be tco evident and Wie aid a Rd Str tea tscundt, Pre DEN EE oS Ct RR i oe a Re ~ Lo ts The Honorable William A. Egan August 30, 1973 Page Five not very far in the future. Many sower failures in mid-winter, at sudzero tempera- mo tures, shutdown of schools and sending students home, freezeup of waters and — sewers, overloads, brownouis or biackouts, outraged protests of people in tha com- munity to everyone on the distribution, to name a few probable events if reliable power is not continuously available. This, in all likelihood, would be followed by @ pericd of high cost recovery efforts when sufficient pressure builds up. AVEC must borrow all of the future money with the program as it is developing. There is no money left in the original loan that is not already spent or committed re ” for requirements through CY 1973. No money is available for expansion internally, cies or externally, unless AVEC obtains the loan. This is not the type of program that can be rapidly started or stopped because of many factors---land rights, training, ; equiomant lead time, logistics, complex funding, fuel availability and storage, to | name a few. The first time AVEC cannot order fuel tanks, transformers, diesel generators, to meet the substantial increased neads, the system will run inte troudie before the following summer, with all kinds of problems for everyone. This date is minear. | cannot, in conscience, centinue to sign required large purchase orders for major pieces of capital equipment when there may be no funds available for pay- ment. Once an electric utility hits that point, the end is only a matter of time. This ~ problem will not go away---it will only get bigger if there is further celay. : The two attached charts titled "AVEC Projection of Revenues and Expenses Pericd of 1973 to 1982" and "AVEC Two Projections of Possible Future Events" illustrate the problem. Without the contract rate increase, AVEC will be bloci.ed from obtaining the new loan money and other serious deterioration will follow, leading to painful . bankruptcy by 1975-76. — a ' The projection allows for centinuaticn of the current rate structure for the village residents and small emerging businesses throughout the period. The primary ° _ reason jor this is very important. One of the reasons for AVEC was to foster a : ‘ climate for nurturing economic development in the villages. The greatest opening ; -ever for this potential deveiopment will occur during the next ten years. AVEC rates are already relatively nigh compared with the 42 original States, or other parts of Alaska. As an example, according to latest available statistics of electric- } ity use, for 500 KWHR per month, the average bil! for the entire U. S. was $11.12 per month. The average bii! in Alaska for the same quantity was $15.50, or 40% higher then the rest of the average U. S.. For an AVEC consumer, the current bill for this cuantity of electricity is $72.75, or 466% higher than the Alaske average. ° % Without the contract changes, AVEC would have to consider a flat rate charge of some 24 cents per Kilowatt dcur. This would further increase the typical residen- tial charge by 30 to 50 percent and virtually eliminate any chance for new commercial business providing new jobs and future tax return. Obviously, we cannot, in fair- ness, propose any rate increase which would further subtract from the aspirations Rg ee ahi Be ; ; Sos Fn a a ge ue Shoda yeti a SO EMAL care Ret ee an gt bipe Honorab!2 William A. Egan £30, 1973 " 1s Six of the village people for economic davelopment, or discourage tha use of electric- ity 2t this ‘early stage in the strong efforts now underway to increase the standard of living. Further, any increase in AVEC residential rates would b2a sirike against - ény future housing programs. Ona of the roaddalocks in the recent proposed housing program for the villages was the nigh cost of utility service. itn progrzm can be a success. This nas been proven when a deteriorating and al- ost bankrupt program, in the fall of 1970, was turned around into the modest suc- cess enjoyed teday. Howaver, there should be no misconception---this program will not continue to succeed with the current inadequate funding base facing the Ceveloping realities of the worlc---inflation, fuel shortages, demands for expanded service, environmental protection investment, and tough competition, now and much tougher aneed, for a trained experienced Alaska work force. ANEC is requesting the seme increase and contract change from the State Operated. Schools ang the Bureau of indian Affairs. The average electrical consumption per chcol, of e22h agency, averaged very close to each other during the first half of this year. Both the BIA and SOS contracts are essential for continued success of AVIEe AVEC. Both the State and BIA are in continuing partnership with the native people of Alaska in their efforts to improve village life. ‘It is requested that the contract for purchase of powar, for the village schools, by the State of Alaska, be amended to include monthly sums as indicated in the letter to Mr. Friese, effective October 1, 1973. Your strong support throughout the funding/budgeting/contracting process is requested to overcome the very serious financial difficulties approaching for this vital Alaska village development program. Let me apologize for the length of his letter, but the message is important and vital, Very truly, ALASKA VILLAGE ELECTRIC COOPERATIVE, INC. G7 SELLE Lé6yd M. Hodson General Manager BA sn: witb - ce: Per Attached Distribution List _Enclosures 8. ore Seige patel NK, pe ere Nate Sale at RN ot Retlis ce ott Dac dena ene oa atin linn ae nies ie 77 te TRE 999 Tudor Road chorage, Alasxa $25 Dear Mr. Caican: Regaréing your suite ov capacity avail av2 79 naw three phas eit fe G atien ¢ =~ ise will have 30 F.Ven. z m= demand o The school itszi estinated maxi ™ have around 16: The total of these tro estizatec ¢ present capacity. ReVed. connect You are probably already avere of thase facts but ve felt conpelled to cake * you aware of these figures. * Thank you, once again, for your pre=pt end courteous attention. Sincerely, CREWS, MACINNES & HOFF AS Se in Wimiz co. (NAses { James R.. Pressley -- “i oy mre Y 2 You will notic2 the ¢ e220 herain end the loas a e220 are more current ac fte sevege treatment fa ® ec: Troy Jenkins; ? {L (OND op | go 23 gw f=% or Gi rperee at ame = pecwepe:s : . ‘e Ty on REVENUES ; M0. OF VILLAGES SERVED 13 = _ BZA Scnoarcs 26 . 26 27. : 238 el aN: Sea at act nat DORN A it ae! thaw Nel ttt Sao Ee tae tae AW Lars: SMUIIIQ 2° xe Ml Fares Tou eh jerks Lihat DR ats 3 eg haha hee Oe, ‘ * PTET at bee gh Bo mh - Y anne ht ‘4 ty, Last a) cee reek ind. * 2 at we ‘ae: RUE |tr: pavsriont - \WwILsacs TENTALTS 9 - ey PTT Sys “TST ised ca a e = : f “e apelet totes errs divee tebe he ef o7 a any} | ott mpi litpedgs Sl ypaxysod slay Tl ree eds : Tere HIisTe or c2 9 TW74ANaNn Pasi? PUR Canna ele se ceenin > E. x FaIN 30 AWAY 1590 YU GrunoL lySHL GIRS Y OL ALIDPIALI3IIF DAVAO, SLIAaNIF PL, BPA LITEM NOD ELE | : PMIATLID| UN SUID Dar ps tera K PEO 4 TAN eat fe seca se ee ae wo Vin oN ttt in ada co ae otal orooermuve, Lc. = aban oh ° ~. | . iil, liegt neers a Sie Alaska “Villige “ccctric | 999 TUDOR RD., ANCHORAGE, ALASKA 99303 TELEPHONE 279-3543 August 30, 1973 Mr. Stanley H. Friese, Superintendent Alaska State Operated Schools 650 International Airport Road Anchorage, Alaska 99502 Dear Mr. Friese: This letter is in followup to the original Alaska Village Electric Coaperative, Inc. letter dated February 13, 1973 requesting an increase in payment from SOS schools mito $2,700 per month, effective July 1, 1973. Following the recent freeze end - August 12, 1973, the new rates should go into effect October 1, 1973. Senator ackett also sent a letter to you and to Governor Egan, on February 6, 1973, on ~ the same subject. The problem is now reaching critical proportions. Please be advised that AVEC staff, in coordination with USDA Rural Electrification Administration representatives, have just comptated a detailed and updated analysis of anticipated future needs of the Cooperative in the areas of plant requirements, future revenues, and future expenses for the ten-year projectio.. period of CY 1973 through CY 1982. This analysis is the basis of a loan request to REA to meet con- struction requirements of the Cooperative over the next two years. Applicable in- formation from this study is included in the text of this letter following. AVEC currently serves 48 predominantly Indian, Eskimo, and Aleut communities throughout the State of Alaska, with a population approaching 14,000 people. A fist of communities currently served is attached. The project must grow internally. like any electric utility, to serve the expanding needs of the current consumers in the 48 villages, plus the program is planning to serve new communities at the rate of two new villages a year, with the exception of CY 1974. Three villages are pro- grammed to be added in CY 1974 and are all currently served by State Operated Schools, bringing the tota! to 51 villages by November 1, 1974. The new villages scheduled are Ambler, Russian Mission (Yukon), and. Manokotak, upon satisfactory > contract agreements with SOS. However, even these new villages cannot be built unti! contract rates are revised to allow feasible repayment of the naw REA loan money which is required for construction of complete systems. Gee Saat at aw r) ~Mr. Stanley H. Friese 4 August 30, 1973 ; Page Two The projection is based on adding two new villeges a year, from CY 1975 through © CY 1982, one village served by a BIA School, starting in the fall of CY 1975, and the other new village each year, through CY 1982, would be one currently served by State Operated Schools. For budget purposes, the following schedule would apply. SOS schools currently served by AVEC number 20 as of September, 1973. _ On September 1, 1974 (or when activated), add the six new regional high schools “at Kiana, Selawik, Noorvik, Alakanuk, Emmonak, and Mountain Village, bringing the total to 26. On November 1, 1974, add the new communities of Ambler, Russian Mission (Yukon), and Manokotak, bringing the total to 29. Ruby has tentatively been selecied by the Board as the new SOS served village to receive AVEC power, which should be activated on November 1, 1975, if this is acceptable to SOS. urchase power should be budgeted end available by November 1 of I new school served. Additional villages would be r to building. Thatis, the SOS served village 1976 would be selected and placed Money to p each yaar for each additiona selected by June 1, of the year pric —,to be cuilt and in operation by November 1, Beunder contract by June 1, 1975. * ARE ladged that, in all likelihood, AVEC cannot build new villages _ It should be acknow schedule, due to two main reasons, and one of faster than the current projected undetermined impact. ; % ¥ > 1. Capital - AVEC has been advised that OEO Grant money will nct be avail- able beyond April 30, 1974. *¥Fherefore, all money for new construction internally and in new villages must (a) be borrowed from REA, and (b) the small margins from operations which could develop with the new rate schedule will all be needed for immediate reinvestment in the new electrical facilities. The forecast assumes all margins will be so allocated for meeting internal growth needs. It should be noted that in order to borrow money from REA, a Cooperative must be able te show certain minimum mar- gins as projected. Margins are largely applied by Electric Coop2ratives for reinvestment to serve the expending electric needs in the country. The only other use is for redistribution to the consumers in proportion to their purchases if, and when, a Cooperative is financially strong and expansion demancs mederate. (This will not be the case with AVEC during the projected 10-year pericd.) “Ty 1# > ic eer Lik Py 2. Fuel - Absence of firm availability of fuel oil. AVEC has a supply con- = tract recently executed, which will guarantee supplies of adequate fuel oil for the next five years for the current villages, expected load growth in these villages, plus the projected needs of two new villages per year. ae oe a ad Pe: Stanley H. Friese August 30, 1973 - ~ Page Three ; kes : s ; nt? 3. Environment - Any severe interpretation of environmental pretection, or es safety laws, could have a restrictive impact on installation of new plants 2 due to higher construction or operating costs. The recent decision con- cerning introduction of potential air pollutants apgarently even cn a limited basis in "pristine" undeveloped areas could also be a factor of possible risk, or costly litigation. AVEC, being a non-governmental agency, { doing wide ranging utility development work, has substantial exposure to. - hes high cost litigation, fines, losses, or rework. ; The study shows the following are estimated capital needs of Alaska Village Electric Cooperative, Inc. over the coming ten year period. All numbers are in thousands of dollars: BALANCE SHEET « ITEMS 73 74 75 76 77 78 79 80 81 82 = Total Utility =Plant . Investment 6,977 °8,843 9,394 9,838 10,473 11,102 11,648 12,403 13,181 13,926 Net Utility Plant 6,262 7,955 8,070 8,137 8,282 8,433 8,470 8,679 8,872 8,976 Long Term Debt - REA 7,019 8,620 9,012 $,305 9,715 9,980 10,167 10,458 10,781 10,567 What is happening to cause AVEC to have these heavy new investments? The rapid increase in electrical load in many communities caused primarily by intreduction of new public facilities. AVEC must buy. larger and heavier diese! generator sets, more fuel tanks, heavier switchgear, larger transformers, heavier wire, and many other items making up an electrical system. The cost of these items is going up fast. We have noted price increases on certain items up to 20% over lest yeer, with increases of 10% common. Delivery times are getting longer and shipping costs are up. : Millions of dollars are being poured into new high schools, new relocatables, new ER kitchens, hot lunch facilities, new quarters, new wells, new PHS facilities, new * village safe water programs, new seasonal freezing plants, housing, etc. AVEC must be funded to respond to these needs or the results are going to be chaotic. A brief review of the capital expenditure programs of these cther facilities leads to +4, ath Re ty ia he treg wise te PY SEY ita as iN Guat oil Soe LE ae tt le oD ge lec eee anes “bi FY ‘Mr. Stanley H. Friese August 30, 1973 Page Four no other reasonable conclusicn than AVEC electrical power must be supported and funded in the same proportion. Anyone cen compare the annual capital expenditures that Chugach Electric, The City of Anchorage, Goiden Valley Electric, etc., to se2 how rapidly electric utilities must invest to keep up. Yet, the current load growth In the villages is even higher end mastiy caused by new public facilities installed .. by the Federal or State governments. AVEC is trying to keep up under the original loan and repayment concept even though most of the other new facilities are going in with direct eppropriations or grants. One of the largest single new impacts at present is the six new regional schools at Kiana, Noorvik, Selawik, Alekanu, Emmonak, and Mountain Village. AVEC was advised, in February, 1973, tnat the connected load of these schools would average approximately 145 KVA and estimated demand approximately 110 KVA.. This worked’ out to bring the expected schoc! consumption during the peak months to be at least “four times the current average of nzer 9,000 Kilowatt Hours per month. The peak ‘demand potential of these new facilities is extremely high for a remote village. They all use three phase power, requiring three new larger transformers at the power — plant and three new large transformers at the scheol. AVEC is planning to install large 250 KW, 1260 RPM, heavier duty Diesel Generator Sets and many more fuel tanks to meet the need, with the use of new loan funds. A total of 23 new and larger Diese! Generator Sets are scheduled for CY 1973 insta!lation alone, to meet growth needs in existing villages. = The load in many of these villages was such that a 100 KW set would readily support the load in the winter of 71-72. The total load in the winter of 74-75 is projected to be well over 200 KW, or more than double in three years. These new units are : larger, burn more fuel, parts are more expensive, insurance costs higher, all operating and maintenance costs are proportionally higher, plus inflation working _on everything. According to a later letter received July 18, 1973, from the Architect, the electrical load had expanded in the new school facilities in Alakanuk and Selawik to have en installed KVA rating of 269 KVA, or nearly double the figure provided five months earlier. This is how loads are growing \ith the naw regional schools: 4 \ ' f i i I | Est. Connected Electrical Load L ‘ 2 _— Letter of 2-5-73 - Letter of 7-18-73 Alakanuk 141 269 RRS “~ Emmonak a 150 - / . . 262 _— Kiana ge k i 14 . : 194 } } aT A soel ig SMa Boe tS aes ee ve ce AE Co ah , 3 ped . iors BE LAR Ra eet PN Me Tk Te i OA pene ce lee st ANE A eee ane Mr. Stanley H. Friese “™ August 30, 1973 Page Five x Est. Connected Electrical Load a Letter of 2-5-73 Letter of 7-18-73 a Mountain Village 150 262 Noorvik 141 194 Selawik 141 . 269 : . ise Boo he A typical school in CY 1971 was 25-50 KVA. od Another letter concerning the impact of new facilities, at Nulato, is a part of the fa letter to Governor Egan which is enclosed with this package. | The following is the listing of estimated operating revenues, expenses, and margins, or losses, under different revenue models. The graphs attached to the Governor be Egan letter show a projection of results at current rates and at minimum feasible ; eo The first, using revenues at current rates. be - CURRENT RATES - ALL FIGURES IN THOUSANDS OF DOLLARS : co ¢ ; Calendar : Year a3 74 75 76. «77 78 79 80 81 82 as ae oat — ~~ as ae oF er oe ee Operating ae bi F avenue 1969 2190. 2472 2635 2805 2983 3173 3380 3607 3851 q ‘ ia : fe Cost of Elec tric Service 2125 2493 2832 3138 3328 3690 4004 4357 4765 5240 Margin or | Loss (156) ( 303) ( 360) ( 503) ( 523) ( 707) ( 831) ( 977) (1158) (13389) ; ) Cumulative ; i Loss (459) ( 753) (1113) (1616) (2139) (2846) (3677) (4654) (5812) (7201) | ! Total Cash Flow Bankruptcy 75/76 Period For all practical purposes, there is little need to carry the above study beyond 1975 & because without the revenue; ‘ k 1. No new villages can be started. REA can make no new loans because fn , feasibility will fail. : x h, ss a . Bath est IES Cte HE ao pO Atte ace Resi rasa PEA hea ete ate Be Eats Dek ate at mY ~Mr. Stanley H. Friese August 30, 1973 Page Six 2. All available working capital must be saved for current operations in 1974 and expansion will stop to any new houses, public facilities, schools, etc. 3. Bankruptcy symptoms would be strongly evident in 1975. Cumulative deficits would be well over one million dollars. 4. Complete collapse by late 1975 or 1976 and the entire need will fail back on the Federal end/or State government. There is no way to. stop supplying alectrice! power to 14,000 people in 46 communities in Alaska without tne mest severe kind of repercussions from 2 political, moral, and legai standpoint. The next projection is based on the school contract rate minimum for both the BIA and State Schools revised per th2 following minimum feasible rate: e : Minimum Minimum Desirabte Rates for Program —~ Effective Feasible Rates for AVEC to with Improved Re- Date Rate be Competitive liability Potential |. Oct. 1, 1973 $2700/mo. . $3425/mo. $3790/mo. July 1, 1974 $2335/mo. $3596/mo. $3920/mo.. July 1, 1975 $2977/mo. $3776/mo. $4178/mo. - July 1, 1976 $3126/mo. $3964/mo. $4388/mo. July 1, 1977 $3282/mo. $4163/mo. $4606/mo. July 1, 1978 $3446/mo. $4371/mo. $4837/mo. July 1, 1979 $3618/mo. $4590/mo. $5076/mo. July 1, 1980 $37e9/mo. $4820/mo. $5333/mo. July 1, 1981 $3989/mo. $5060/mo. $5690/mo. July 1, 1982 $4183/mo. $5313/mo. $5880/mo. Rates are based on a 5% per year increase after This rate should al- Initial adjustment. Average power use by schools also projected to grow 5% per year. for field persennel during the pipetine effort and follow on construction pro- om grams. low AVEC to compste © te a Niki arte See see tt A ye ; mae . Sey aria gh oe ite fea ai rs ck ab Cwr. Stanley H. Friese Augusi 30, 1973 . ~ Page Seven . AT MINIMUM FEASIBLE RATES - ALL FIGURES IN THOUSANDS OF DOLLARS Calendar Year er ee a a a Operating Revenue 2114 2531 2931 .3211 3508 3827 4172 4550 4962 5407 Cost of Elec- tric Service 2125 2493 2832 3138 3328 3690 4004 4357 4765 5240 Margin or Loss (9) 38 99 73 180 137 168 193 197 167 All margins reinvested in Plant throughout period. Revenue calculations are based on uninterrupted payment by the State and BIA @mSchools, and no allowance is made for payment stopping curing possible outages. . The majority of AVEC expenses continue uninterrupted during outages. Any savings in fuel is more than made up by high costs of emergency reaction. The problem is---a certain revenue total is required to run this project at e minimum acceptable level. It would be possible to increase the school rate slightly and allow for outages which should run under 1% average for the system (unless catastrophic events such as complete destruction by fire, or sev@re Acts of God occur). However, the net cost would be essentially the samc and the problems of administration would be in- creased. A small variation in margins-would be the only effect in any case which, as noted, are all planned for badly needed investment in growing village electric systems. ir. The projections call for a year around billing for each school and billing for the new high schools, as separate facilities. No allowance is made for additional separate ’ high schools beyond the six presently in progress, since no definite schedule of placement or construction time is available. If overall revenue proves inadequate . for supplying the demand io these facilities, a separate charge would seem to be in order. : ‘Any delay or attempt to run this operation on a lesser basis will result in even higher cost in the future, plus a likely climatic political and legal turmoil dua to involvement of multiple agencies of the Federal and State government, 48 village governments, 7 regional Native associations, 2 boroughs, Public Utilities Commission, and con- tinuing an established service to thousands. Pa pemlicae Se es RA aa Ua lta he licks AY ae 3, me Slee? Sean lee balan ee oun Gh a = 7 gx ~ * oh. qe no ier ey a TH Er wee O — —cnernrone 7 ~ >) t Mr. Stanley H. Friese August 30, 1973 Page Eight esr ak ; By Past or present endeavors of the magnitude, coverage, and complexity required of ae AVEC in the villages have been undertaken by the Federal or State governments with | Sizeable supporting staff function backup and a considerably higher degree of fis- cal and legal immunity from the risk exposure in an undertaking of this type. But one exampie Is the tremendous amount of fuel that must be handled at all the iso- lated locations. AVEC has cver 250 fuel tanks, and stores and receives fuel at 45 bine Separate locations. The peak fuel inventory AVEC must store at some viliage fo- ! cations now exceeds 100,000 gallons with a year around average over 50,009 gailons ata single location. Over 120 Diesel Generator Sets are in the inventory. | believe there Is no nzed to say more about the potential exposure to environmental damage, fire, outages, etc. Yet, AVEC has censistently been undercapitalized in placing facilities in the past. The size of the engineering staff has never been of sufficient size to properly tackle the problems. , we eR * ¥ ‘a2 es The minimum feasible projection of costs will not permit AVEC to approach tha level ivi ora => of the utilities in more developed areas. This level of budget would basically pro- es si vide service at a level which should prevent untenable criticism of reliability and — excessive turmoil in staff retention. They will allow the program to continue at 4 — close to the seme level as now where some prodlems are cleveloping and more are Hy on the horizon. This does not represent the type of budget where desirable ac- on celerated headway can be made in reliability or design problems. Eas | believe this is the appropriate time that consideration be giver to placing AVEC aad in a position where the problems can be adequately handled. There would be no ae change in margins from the above under either of the following two alternate levels boa of operation since all revenue would flow straight through to indicated expense Pe needs. pees, \f there is a real desire to insure AVEC of an average quality operation, such as the ub -, Federal Government would run, then AVEC requires additionat revenue in the first year estimated amount of $400,000 above the bare minimum feasible rate request. ‘The rates under this level of operation are listed above under the column labled "Minimum Desirable Rates for AVEC to be Competitive". Competitive, in this case, meaning the ability to attract and hold the required work force. « The most severe needs above the bare minimum requirements in the projection are: > 1. The villages operators should receive more pay. The current loan agree- echied ment only allows payment of $260/month for the total village labor incre- Rae ment. The expense study allows increases to only $360/month starting oy o in CY 1978, continuing through CY 1982. This is an unrealistic low wage i 4 4 ' : I fe Patt lpia tte we =e rE 7 : - 7 Satake cae wield ES OE ale TN te ke CBT AE a ei hg ane ee ete at ied get FE Mr. Stanley H. Friese ™ August 30, 1973 i Page Nine eee ~ 2 Yet, tee Sb coe rane . + Ce ha 8 ~ + ¥ Bb we 1d gt Pepe bee ieee a age A os ; i, . ce ik NES RS a re RAN RT ae moa Rg BME ME et ee a GIN SS, eee PTA ee to obtain any reasonzble motivation, and stability. By increasing the pay- ment to $800/month, the attention, interest and quality of village operators could be increased. This level of pay would also remove one person or ene family in the village from a poverty level income. The added cost for this item would be slightly over $300,090 the first year, if started in CY 1874. Both the Siate and BIA pay their local maintenance men, in the villages, this much or more. This is only a fair and reasonable re- quest. | am afraid AVEC is going to suffer severely over the coming years unless adequate relief is forthcoming in this area. The Per Diem rates of AVEC in the villages are non-competitive with other Federal egencies, per current Civilian Personnel Bulletins. The 1973 Federal Per Diem rate is listed at up to $38.00 per day in villages. AVEC budget calls for a maximum of $20.00 per day, or little more than half as much. The State pays $30.00 per day. This causes severe difficutty in attempting to compete for qualified field personnel willing to continually travel under the demanding conditions of outlying arezs. The lower Per Diem is also combined with lower available salary budget ‘for field personnel. Together with the unstable financial climate and the demanding travel has caused high turnover while the large inventory cf engines, and many seperate systems, in reality, demands high experience to achieve any kind of field efficiency. Most other mechanics traveling in the field 75% or more of the time have the benefits of either guaranteed overtime with Defense contractors or construction contracts, or Federal or State career service incentives. The Federal government, State government, other more financially sound Electric Utilities, non-traveling jobs, cr lucrative seasonal construction jobs paying higher wages and Per Diem, have all been a steady drain on AVEC. In summary of the above, AVEC realistically needs to add $400,000 addi- tional per year, above the indicated minimum first year expense, merely to compete on an equal footing in the environment of Federal, State, De- fense, and high cost construction contracts in which the project operates ($300,000 of this vould be for the village operators). This would amount to an adjustment of an additional! $725 per month required per school, starting in October, or a rate of $3,425 per month, to be competitive in the labor market. The impact of the pipeline with the high need for die- sel mechanics 2t or2mium wages, and many other skill categories, may prove almost untensble for AVEC due to the fact that the Co-op is alreacy having serious difficulty competing for, and holding, required personnel. OE te #4 = ity { iper Mr. Stantey H. Friese ' | ~Aurgust 30, 1973 i i Page Ten ! Many village operators would also be tempted to leave, with the opportu nities for trainad Aleska minority group members, which a boom of this typa will foster. This prostem will be aggravated by the very low amount of money available to pay village operaters. Competition with 55, 79, or up to 84 hour work weeks, at Bacon Davis rates, and gross incomes ex- ceding $30,060 per year will be extramely tough since AVEC field work and living conditicns are alreedy tougher than aleng the pipelins route: ~ Ppa A first order operation such 2s right be typical ata defense system installation, wend winere there is insured full complisnce with rules and controlled reaction tol. G. type inspections, would readily require encther estimated $260,000 per year, above the $409,000 required, to merely be marginally competitive. The reguired rates under this level of cperation ere iisted above under the column labled "Raiss Program with Improved Retisditity Development". This would allow well controlled property control, more attention to safety, training, personnal, high conficence . logistic support, insurance risk manegement, analysis of data and trends, higher pequatity planning, higher quality fecitities maintenance, environmental clanni better coordination with other agencies, and shorter emergency reaction _~ There is more need for attention to providing for these kinds of conside program of this type, when pieced in a comparative frame cf how other agencies 2nd utilities are budgeted and how they can, and do, operate. iG One agency doing work in the same ara2s and general magnitude as AVEC has 23 En- gieers. This is the need estab!ished by them to do a proper job of planning, sur- veying, designing, monitoring field construction, and overcoming the unique provo- lems which develop in remota Arctic areas: AVEC is budgeted for a total of two En- gineers. One of the two Engineers recently left AVEC for a higher paying joo, with less stress and travel, at 2 neighboring utility. Also, there is no reasonable ques- tion they are financially sound and in business three years from now. This is too often the pattern and result of unbalanced resource input. it should again be noted by ail parties that (2) availability of fuel oil; (b) restrictions on surf2ca or air movements of materials, or AVEC personnel, caused by fus! availe- bility; (c) possible rigid cr new interpretations of clean air, er other oresant or future air, water, or noise colluticn control acts; (d) similar rigid or new interpretation of other new or existing laws in eraas of safety, etc., can all have an impact on cosis or the ability to build new siants. nis.time, are as follows and would like direct answers ee tt .to the following important questions: 7 1. Is the SOS willing to enter into a long range contract with AVEC, at feasi- ble rates, to insure the availability of REA lozn money for taking care of * Sei : Se ge RS eee Ft , han 7 Bh es BN eaten als Te GR tit ee ? y ~ ir. Staniey H. Friese ~ August 30, 1973 ji Page Eleven the growing neads in the 42 existing villeges? nm Is the SOS willing to ente e contract with AVEC to add three new SOS schosls in : six new high schoosts in CY 1974 and one maw SOS sc} rved vi a a year, starting in CY 1975 through CY 1982, 2 i tain REA loan monsy for constructien? Total SOS Villages to be served would be: Tota! No. of Event SOS Village Scnoals ! Fiscal Period Current Group of | Villages 29 . Through September 1, 1974 ga six new reciona! & High Schools at Kiana, Selewik, — WNoorvik, Alakanuk, Emmonax & Mountain Village 26 Sept. 1, 1874 to Nov. 1, 1974 Add Ambter, Russisn Mission (Yukon) § Manokotak 2S yi! Nov. 1, 1974 to Oct. 31, 1975 Add Ruby ; | 30 Nov. 1, 1975 to Oct. 31, 1978 (Add One Other Village 31 Nov. 1, 1976 to Oct. 31, 1977 Per Year by Mutual 32 Nov. 1, 1977 to Oct. 31, 1978 Selection Agreement) 33 Nov. 1,. 1978 to Oct. 31, 1978 34. Nov. 1, 1979 to Oct. 31, 1980 35 Nov. 1, 1980 to Oct. 31, 1981 36 Nov. 1, 1981 to Oct. 31, 1982 37 1882 On Subject te New Projec- tion to be Completed in 1982 If the SOS dces not wish to purchase power at feasible rates at any addi- tional naw villages, from AVEC, beyond the current 26 villages served (plus we are assuming the six new regional high schools will definitely be placed under centract), then AVEC must knew this also for planning ® future capital needs, for rejecting nev: village applications, planning 5 future revenucs and excenses, and scheduling availability of fuel oil. i In other words, AVEC nezads to know exactly how many villages the oo State will consider and when, if the above schecule is not acceptable. ht = 4 Ey th of pa ate oe LOA Me. Tae ce Care ae hero ee ater Shon sg ~- Mr. Stanley H. Friese August 30, 1973 Page Twelve 3. Acknowledgment of acceptance of a rate increase with one of the three schedules proposed, stating the level tne State is willing to support the pregram (a) barely feasible; (bo) competitive with similar agencies; (c) a level to provide for accelerated progress on reliability, safety, training, etc., as suggested above. / . ; (asia “4 “ky ~~w~: 4, Establishing a meeting at an early date with AVEC representatives to fina- . ‘igs lize the appropriate modification of the existing contract, or establish a » ee new contract to reflect ine degree of support tne State agrees to, under request items (1), (2), and (3) above. AVEC woutd like to hear from the State of Alaska as soon as possible concerning the — above. The support of the State in the past to help establish the program and assist during the critical period in 1976-71 is sincerely appreciated. The nead is even greater now due to the heavy impact AVEC has on the whole development program = rural native villages. Very truly, ALASKA VILLAGE ELECTRIC COOPERATIVE, INC. < OP gee AD ; ~Loyd M. Hodson : k ee General Manager ag LMH: wib F vi l | “4 cc: Per Attached Distribution List of August 30, 1973 i! Enclosures i k | es th IE na a iE is 2 xuste ——- le i KIS ck, Pe Se? ae My WR ok age FM Sa a ila we eS ae X Patent SS Aare ate Fee eS Larter eae se ele teeny dele tap oe i Uti RSF Ate, ALS. As of August, 19/3 Cc . 1973 No. Community Name Population (Est. ) ; Ges - Soe ae ee ' ™1,. Alakanuk ; 289 i ee Angoon 436 ‘ 3. Anvik 91 iiss 4, Chevak 422 Age nay. 5. Eek : 203 Vos 6. Elim : 190 — 7. Emmonak 479 ‘1 8. Gambell 406 ‘ 9; . Goodnews Bay 238 10. : Grayling 152 tt Holy Cross 217 12.0 Hooper Bay 534 13. Huslia 174 14, Kalskag , 133 15. Kaliag . 225 16. , Kasigluk 273 VW. 7 . Kiana 303 18. i Kivalina 205 “19. - Koyuk 133 a0. Lower Kalskag 200 seat Cn. Marshall 191 re 22. Mekoryuk 272 — tas Minto 124 ! a Mountain Village 457 | a New Stuyahok | 236 } ’ 26. Noatak : 320 hoe 27. Noorvik = —_ 504 . 28. Nulato 336 eS 29. Nunapitchuk {Akolmiut) "7 301 onl 30. : Old Harbor 316 | 31. Pilot Station 316 t 32. Pitkas Point : 77 4. 33. Point Hope . 421 7 34. Quinhagak 371 Ro 35. St. Marys ° 419 “t 36. St. Michael 226 I. 37. Savoonga : 397 1 38. * Scammon Bay 181 | o9< Selawik : 468 40. Shageluk 182 “at. Shaktoolik . 165 42. Shishmaref 291 43. Shungnak 180 44, - Stebbins : 252 7S. . : Togiak : 418 - 46. 2S Toksook Bay ale : 281 47, ~ pe ~. Tununak ee . = 299 ms. —— Wales : a 443 Were ea ri a Saad hel he enn —- ye soci Bcidesil ey 5 'c ok “hac ee es ti eo aes _AVEC BOARD OF DIRECTORS PRESIDENT - Lester Wilde - Mt. Village | VICE-PRESIDENT - Richard Nash - Kiana bi SECRETARY - Vincent Beans - Mt. Village TREASURER - Eugent Gusse - Kiana MEMBERS - Dan Johnson - Angoon Stanley Peters - Aniak « George Turnmire - Angoon 2 Nes-HIL KATE pSkigwa NOTE: Names and numbers are as listed in the A.PA. January 1968 Inventory tabulation. S7-SPEEL y SNETTISHAM (operational) \\ 5. (58-TEASE \ S9-SWEETHEART FAI LLS CR. \ \ ee Ons yg srscentry CR. >, eae BAY = RAGS STIKINE R. 4-GOAT ee yrangell~ ee V8 re pe Lendl he cup yy SY wee \ g LE DUC CTL. GRACE” snes th ae ' Gee Ketchixaa? i UNDEVELOPED pa eey lakatiog Jo AEH rok / RESOURCES OF V7 ERG ie SOUTHEAST ALASKA nm K* LOCATION SKETCH 8. SCALE NY OF ) Sh i Be DM & seeks a ey 40 MAS, Nee ae yg : sedi e eho: i FR Ee OE ~ 7S * rg 1 Ae or <2 * & q | SRT UR Be it ate ee Project Streen Streamflow hepry oe (Dam ie concrete unless noted) 1. Agashesbek (Igichek) 2. Misheguk (upper Canyon) 3. Mistukeok Robuk River Ins af. Junction Island Bevabesns Carle don Ste des GCerstle Berth Dew Johnsen Dam, Eerth Dikes Cathedral Bluffs Berth Den Way. ey: Leke Ilienne Tesieins Ingereel (Lackbuna Leke) 32. Crescent Leke Lake Perk of Crescent BR. 33. Chakachemne Chekechatna 2. 3. Coffee Belege 2. s 1 . > Yeats 37. Talachwlitne (Shell) 38. Skwentna (Hayes) Reconnaissance Ie=100° Feasibility 48. Denali Susices Re 9. Snow Seow 8. Million Deller 53. Cleave (Peninewla) 34, Weod Canyon Copper 2. Sourupasy : Bias i» Lake Cee 57. Speel Division, Smettichan Spee! River 58. Tease Creek Tease Cr. Dem, Earth Dike, Twane! Dan, Teneel, Pensteck Sweetheart Palle Creek Sweetheart Falls Cr. Dem, Tunnel, Peastock $0. _ Houghtes Fw Gi. Scenery Crook at e. 62. Thomas Bay (Cascade Creek) Cascade Cr. Peastbilicy 4 63, Stikine River Stikine R. Nene Den 20,000 ” 64. Goat Goat Cr. one As, Tyee Cr ze te ‘* Swan Leke (lower Swan Lake) Falls Cr. Makeoutef River Maksoue: I 1-100" eance 2 Dams, Tunnel, Pensteck * 2. 74, Deer Uenaned As Lemz00+ None Twanel, Pemateck 75. Takats Creek Takats Cre J Aemz00" sibility Dom, Tunnel, Pensteck 10.6 76. Green Lake Vodopad R. Ty is=toor Dem, Pensteck »” wores: 1/ Streamflow records ot of near site, 9/ Based om 75% lead Lecter. / “Eatimated from streamflow records for similar éreineges. 1O/ Based on 69.43 1 3/ = Eetimated from basin precipétation records ond judgment. ny a I=] mi. eape unless otherwise not. y Tigh ond Wildlife mitigation messy 3/ — Sub-Reconnaissance grade observation unless otherwise noted. T3/ Diversion ef Yukon-Tatye flow from Yukon Ri: > $/ Reservoir beld essentially full for operstion with upstream plants: 280,000 kW (2) Rampart 610,000 kW (3) Ruby 90,000 kw (4) 3/ = Rotimated reservoir yield after allowing 1,500 cfs release from Neotalingua Reserveir. 16/ Depertment of the Interior Alaske Naturel Resources and T/ Operated in conjunction with downstream storage. TS/ Rowse Document Mo. 435, 87th Congress, 24 Seasion, cost * Maksoutot ** Khvestof ites States ATMReT OF TRE IWTERies Ce POWER abelulsTRAtion Jewnary 1968 owed PRICED UrDReRLaCTAIC PoTeRTIALs deetinness power) ead lorger 1 . Benge Ie = Average a Cont inoue Tire a0 ree! ve Static Need Need hmnott Per Cent Copacity Cost Ji/ wr) (feet) (feet) (i000 ar) Regulation (2000 kt) (Del lare/Taat.kwy Remarks , acs ia 100 93 820 16 200 , 220062 199 cy & 10 1% 1,000 Merstion may reveal dike of right ebucment te have excess water Io , 700-100 166 100 70 613 e 1,200 Ravirestes oot Pee ee ’ “ 1,300 Ruploretion required to determine if foundanion waterisls are wtoquete. A Poujnoyle. 920 210 1,600 ie 1ae 3,800 u » “ ise 1,300 Surface recounstosance indicates deep pervious loft abutment weulé preclude 360-190 300 57,600 100 9/ 1,620 14,200 2,160 9 300 390-200 rt a 123 166 200 2100-2030 100 2,600 13/ 21,000 3,200 9/ 300 1 pipe 3 23.400 18 Lore S900 Lie Fs 120-115 116 14,609 100 16 1,370 33 1100 455-383 393 ie ” FY) 26 an 1,500 1200-1080 1,120 69s ” 2 630 ma 1,300 — ii a 1-3} Ite 5 * 399-300 a7 46 ” 179 a 900 942-020 793 2,460 100 1,600 ory 00 y 109 1,800 : 160 7 1,100 Wey te 1.000 100 26 20 4 1,000 . ating ) in 1,390 ( 23) 1,000 Sewentan-Yontna Syston, “ss 1 %” #0 H a 8 “ 1,100 1290 1,032 20 00 130 1,139 a 1,300 . wr ) tit WO] "appar Costtna River Project (308) : : 2,310 ) : : C.) 730-350 633 335 97 2 zz 63 1,000 8 =~ 38,000 - 220 1,927 “oo 1400 163 28,000 : 410 3,600 820 +300 900-905 930-26, 700 a 21,900 3,600 19/ 200 14/ Project would have extreme adverse effect on major commercial fishery. 325-223 ‘M3 ” a5 a 800 1080-986 1,036 110 73 4 70 6 1,400 684-543 #2 aso 100 6 123 a ‘toe H3e341 a 370 nm 4g 136 } 1.099 1499-1350 1,442 160 ” 166 ” 600 330-173 291 43,000 1,130 9,900 2,260 0 1098-1040 1,056 uaz 10 7 2 1,200 128s 1184 1,241 1675-1523, 1,600 63 HBB Ha} eo 630-396 622 126 ” ? “ 800 47 4 1 X 1 9 + oS I ea Trew Laks Grace Hafeet teparty ar 75 336 a a « 1,100 Sete from Lake Croce Project Report, Janwary 1968. ms ie 272 93 aa ur 00 Bete from Tekats Creek Project Repert, Jneuary 1968. 7 he 14 ” 3.5 nu Bete frem Tekats Crewk Project Report, January 1948. veznaes a 1” 07 un ” an Dene from Tokate Creek Project Report, January 1966. 400-290 333 ag a . 32 1,300 a, Fat downstresm sites, by the following ameunte: (1) Veedchepper kW (5) Unevaluated amounts in other resches of the Yukon River. Report June 1967. October 1965 prices ples eddttionsl powerplant and diversion costs for ples revisions. To Potential Thomas Bay Project % LAKE GRACE POWERHOUSE AN SWITCHYARD ‘ dt GRAVINA ISLAND UNITED STATES DEPARTMENT OF THE INTERIOR ALASKA POWER ADMINISTRATION LAKE GRACE PROJECT GENERAL PLAN SCALE IN MILES fe, SO gee Sate, s ie ath ; By ome 3 te Psp Bay Po ‘ PE Nd, 2 ne te SERIE OR ERR RG Sa we ep tht aa a LIS get ne Net 02° LAKE GRACE PROVE! LOCATION MAP Eityeten eae PPE hats TR ys ~ wea 15 KV. TRANSMISSION LINE i, a Sale se rites, - 4 Natural W.S> El. 430' i} S| “a Reservoir Normal \\4 UNITED STATES DEPARTMENT OF THE INTERIOR } ALASKA POWER ADMINISTRATION ee GRACE PROJECT PROJECT PLAN SCALE IN FEET AIOE TS 0! Seghertone Contour Interval- 200 Feet. Dotum- Mean Sea Level. SOURCE: LAKE GRACE PROJECT, ALASKA- JANUARY 1968 ade deg Ne cit e ae | a Sf. aa ee rs xe -$, a Ses ade. ne 3 zs | JJ ZSTAKATZ CR. GREEN LAKE LOCATION MAP . 3 a LAKE J GREEN LAKE POWERPLANT rae SWITCHYARD FE, 5 2 2 Fay EE oats } yore SITKA ) Ne SITKA { SUBSTATION i : ey ae MY x ll EASTERN. | o S MS e | TAKATZ CREE POWERPLANT A SWITCHYARD fe sy 1 B \ SL Sent OS ad yk UNITED STATES DEPARTMENT OF THE INTERIOR ALASKA POWER ADMINISTRATION TAKATZ GREEK AND GREEN LAKE PROJECTS GENERAL PLAN SCALE IN MILES SE A.PA—JUNE 1974 ae x Ma ws iS ete: ~ BSWITCHYARD TANT f TA, A fea BAY POWERPLANT Lie & SWITCHYARD \ aa . —s cau vigepe By. ee, WERK NS Mi. 1 : ee 345KVI supm {Cable -\ WRANGELL ar ee ware MITKOF ISLAND PETERSBURG =A ¢ ISLAND SUBSTATION { ETOLIN ISLAND PPO TARE TS eg BOE y vy weg UNITED STATES DEPARTMENT OF THE INTERIOR ALASKA POWER ADMINISTRATION GOAT CREEK AND THOMAS BAY PROJECTS GENERAL PLAN SCALE _IN MILES KUPREANOF ISLAND ERIE TS sya 10 Ss 20 APA -JUNE 1974 1 rere ore ere rm . | eT 3 beh 4 Sach eae le hele KUPREANOF “THOMAS BAY POWERPLANT & SWITCHYARD ZAREMBO ISLAND ISLAND GOAT CREEK POWERPLANT & SWITCHYARD TYEE CREEK POWERPLANT & SWITCHYARD, AY (38 Kv-4 Mi, LAKE GRACE “py: POWERPLANT SWITCHYARD SWAN LAKE POWERPLANT. SWITCHYARD US KV 18 Mi ANNETTE 'SLAND °, a 2° CPETERSBURG- WRANGELL- KETCHIKAN AREA LOCATION MAP SCALE IN MILES 30 A.RA.~ JUNE 1974 UNITED STATES DEPARTMENT OF THE INTERIOR ALASKA POWER ADMINISTRATION POWER POTENTIALS FOR THE PETERSBURG— WRANGELL- KETCHIKAN AREA GENERAL PLAN United States Department of the Interior ALASKA POWER ADMINISTRATION P.O. BOX 50 JUNEAU. ALASKA 89604 99802 brews IN REPLY REFER TO: October 2, 1974 we 700 “ Mr. Robert Pavitt Bess Director of Planning and Research Office of the Governor Pouch AD Juneau, AK 99801 Dear Bob: I appreciate your taking the time to attend the September 25 meeting . on the Southeast Alaska hydroelectric potentials. We prepared a very brief summary of the topics discussed and a copy is enclosed for your information. ie Sincerely yours, li oalee _ jv J. ee sa ' Administrato ? Enclosure cc: Commissioner Edmondson Mr. Fackler Mr. Wallington i. Mr. Bracken y -Mr. Guinn Mr. Reed Mr. Waring Colonel Debelius Mr. Williamson CONSERVE AMERICA'S a ae ? Save Energy and You Serve America! fe am RL ut 2. eerie FY Sach ES a SF a yee Teste a oe UNC et Tareas Me Yate Rt Ne ee APA September 1974 Meeting of September 25, 1974 on Southeast Alaska Hydroelectric Resources Room 839, Juneau Federal Building, 2:00 P.M. R. W. Beck and Associates had requested that APA set up an informal meeting primarily to discuss possible financing methods for developing hydro projects proposed by Southeast Alaska cities. This isa summary of of points discussed at the meeting. Those in attendance were: Richard H. McLemore - R. W. Beck & Associates James V. Williamson - R. W. Beck & Associates Wm. C. Fackler - Alaska Department of Natural Resources E. O. Bracken - Alaska Department of Economic Development Dale Wallington - Environmental Conservation Don Gotschall - Alaska Power Administration Cameron Edmondson - Department of Economic Development Charles J. Guinn - Tlingit & Haida Housing Gary Long - Alaska Power Administration Mike Miller - Legislator Mildred H. Banfield - Legislator Rick Reed - Alaska Department of Fish & Game J. V. House - Alaska Power Administration Bob Cross - Alaska Power Administration Kevin Waring - Department of Community and Regional Affairs Weldon A. Opp - Alaska District, Corps of Engineers Robert N. Parnell, Jr. - Alaska District, Corps of Engineers Bob Pavitt - Office of the Governor Mr. Williamson advised that his firm was representing Petersburg, Sitka, and Ketchikan and engaged in power analysis for the cities. The studies generally cover requirements through about 1990 and indicate that the hydro development would be the most attractive and economical sources of new power supply. There are serious problems in financing, and the cities will very likely propose state assistance in developing the projects . Alternate methods of assistance have been considered including: 1. A State Power Authority (several possible roles for such an authority), a” fastt add peal Mot pas? GUAR SE eR phir apts 3 Mein Hm ace oe yee NS Ma Biting NER ae EE al ie I TES ser ue Sine A ate le ) 2. State backing for municipal financing which would involve the State's maintaining a reserve to cover any shortfalls in revenues, and 3. The State acting as a lending agency to finance planning and construction of the projects under the concept of investing revenues from non-renewable resources in development of the renewable ones. This could involve extension of present state legislation for fisheries and timber development to in- clude water power. Discussions have been held on this in Ketchikan, Petersburg and Sitka. The cities are leaning strongly towards the third alternative, and pre- sentations of the concept are planned at the October meeting of the Southeast Alaska Conference and the Alaska Municipal League at its November meeting. Williamson summarized data from studies for the Ketchikan, Sitka and Petersburg-Wrangell areas. The Sitka area proposals involve first development of the Green Lake Project and then possible addition of a third unit at the Blue Lake Project and Takatz Creek Project. Planning for the Ketchikan area involves the Swan Lake and Lake Grace Projects . Petersburg is voting on a bond issue for expansion of its Blind Slough Project and longer range plans involve the Thomas Bay and Goat Creek Projects, including service to Wrangell. The studies indicate that the hydro resources could provide power requirements for the respective cities through 1990 and beyond and that costs would be considerably cheaper than if diesel power is used for the future requirements. Some data was also presented on the Terror Lake Project which is under consideration by the city of Kodiak. 40 be meh AS SRI PPT EN Me = Feehey nb eR Set SO AE Bx as tax Comparative data on size and costs for the projects are: «5 Average Installed Investment Mill Rate, Project Capacity ,.kw $ Millions Mills/kwh Goat Creek 15,000 28.4 32.7 Green Lake 15,000 23.8 28.4 Terror Lake 18,000 36.0 47.1 Swan Lake 15,000 32.0 34.6 Lake Grace 20,000 45.0 36.7 The costs generally assume on-line dates of around 1980 and include some allowance for future inflation. Williamson noted that project planning up through FPC licensing may run as much as $0.5 million for some of the projects. He also indicated views that because of reliabililty and cost considerations, regional interconnection would likely not be desirable until the individual areas had much irae loads and generating resources. In recapping his presentation, Mr. Williamson noted that the proposals from . the cities for State assistance would likely include planning funds and loan financing from revenues derived from non-renewable resources. He suggested the State would need to require good feasibility evaluation to assure that the projects are sound financially. A number of questions were directed to the Beck representatives on load growth assumption, alternative generation sources considered, and other matters. Bob Cross distributed APA materials including inventory summary in- formation, location sketches for the projects under discussion, and a recent study on the Lake Grace Project. Weldon Opp described the recently authorized Corps of Engineers study of Southeast Alaska Power potentials. Initial funding is provided in FY 1975, but not yet allocated. Plans involve reports for the Sitka, Ketchikan, and Petersburg-Wrangell areas, including some field work for projects that have not yet had field studies. Expect public meetings toward the end of FY 1975, completion of the studies in 1977, and total study costs of about $750,000. = ik The question was asked if Snettisham power could be clelivered South, and Mr. House responded that based on Snettisham transmission cost Lae experience, such a plan would be very expensive and that Juneau area byes loads would utilize the full output of Snettisham by about 1985, according ones to the latest load estimates. — Mr. House also gave a status report on the contract for temporary repairs to the Snettisham transmission line. ‘aw soe i Spe ge Sra PYG = et Pata a pat tN ate oy = i aE Bae Ab iy RTS ES RS eS git 4 SMe Sg Bes, f 999 TUDOR RD., ANCHORAGE, ALASKA 99503 TELEPHONE 279-3548 September 16, 1974 Robert Loescher Executive Director Tlingit Haida Regional Housing Authority 525 Village Street Juneau, Alaska 99801 Dear Mr. Loescher: J In accordance with recent correspondence and followup of your meeting with the A.V.E.C. Board, attached is a copy of a Resolution passed by the A.V.E.C. Board on September 10, 1974. Best Wishes, ALASKA VILLAGE ELECTRIC CooPr eneral Manager LMH/ma Encl. Wy “aay yous NAO! fi a ceo! wi $s ect vet eras WW.at® Sogo. A junen areal : RESOLUTION NO. las ENTITLED: DEVELOPMENT OF A SOUTHEAST ALASKA ELECTRICAL COOPERATIVE WHEREAS, the Alaska Village Electric Cooperative, Inc. isa nonprofit Cooperative association established under the and by virture of the Electric and Telephone Cooperative Act of 1959 for the express purpose of providing electrical generation and service to the People “of small and often remote village of the State of Alaska, and, WHEREAS, AVEC'S Electrification program was made possible through an .REA loan granted in 1968 and subsequent REA loans to date, and, WHEREAS, the Alaska Village Electric Cooperative was established and is being supported through the mutual cooperation of several state and federal agencies, and WHEREAS, AVEC is currently providing service to 48 villages in the State of Alaska, only one of which is located in Southeast Alaska, and WHEREAS, the Tlingit & Haida Regional Housing Authority is working with varioUs State and Federal agencies in an effort to electrify several rural Southeast Alaskan communities. : THEREFORE, BE IT RESOLVED, that the Alaska Village Electric Cooperative, Inc. does hereby approve of and endorse the Authority's efforts to havea, comprehensive study conducted in the villages in question to determine the feasibility of establishing a separate REA sponsored cooperative to serve rural Southeast Alaska. Passed and approved by the Board of Directors of the Alaska Village Electric Cooperative, Inc. this -@day of SGea% _, 1974, bya vote of yeas and nays. H vk Ect ¢ President Alaska Village Electric Cooperative, Inc. Kp fe Secretary x iY City of Angoon P. O. Box 187 Telephone Angoon, Alaska 99820 (907) 788-3433 October 2, 1974 Mr. Robert Loescher Executive Director Tlingit & Haida "Regional Housing Authority 525 Village Street Juneau, Alaska 99801 Dear Mr. Loescher: Enclosed is a resolution urging the release of Angoon from the operating agreement with Alaska Village Electric Cooperative, Inc. The City of Angoon, in response to the requests of its resi- dents, has been pushing this matter in a rather haphazard way for several years—haphazard because we have no money for legal services nor to finance an all-out push involving travel, etc. The situation with AVEC, while we appreciate their good inten- tions, is at the point where the system poses a hardship on an economy which has good future prospects but which at the moment is pretty grim. The disparity in prices between the majority of the member villages and Angoon, in Southeast Alaska, creates the only major inequity in the system in our opinion. There are other considerations involving time and distances from the source of operation and administration. These, plus the fact the villagers can see no promise of lower rates, and the growing need for economical power, leads. us to the strong conclusion a similar co-op involving only communi- ties in Southeast—and promoted by the organization which was successful in carrying out a housing project in spite of a Presidential "freeze" on housing funds nationwide and many other seemingly insurmountable problems—would receive our full support and cooperation. The City Council discussed this matter extensively the day, and just prior to the time your letter arrived in the mail. The City of Angoon is available to help in this matter in any way we can. Sincerely, RESOLUTION NO. ——— WHEREAS, the City of Angoon is a bonafide paying member of the Alaska Village Electrification Cooperative, Inc., and, WHEREAS, service, up-grading, expansion and operational maintenance by AVEC on the electrical utility system in Angoon is minimal and unacceptable, and, WHEREAS, the residents of Angoon find AVEC's power rates too high and burdensome and totally unacceptable, and, WHEREAS, it is proposed that an REA sponsored rural Southeast Alaska Cooperative be established to provide the much needed electrical service to small Southeast Alaskan communities, and, WHEREAS, the City of Angoon believes that lower rates and better service would be a reality if such a cooperative were established, * THEREFORE, BE IT RESOLVED, that the City of Angoon hereby endorses all efforts to establish such a cooperative and, furthermore, respectfully requests release from its Operating Agreement with AVEC when and if such a cooperative is established. ; PASSED AND ADOPTED by a quorum of the City Council of Angoon, Alaska, _this ae day of » 1974, by a vote of g yeas “and _nays. RESOLUTION NO, ')4~ “| oe ENTITLED DEVELOPMENT OF A SOUTHEAST , ALASKA ELECTRICAL COOPERATIVE WHEREAS, the City of Kake realizes that its existing generation and distribution systems are very inadequate and substandard and virtually not systems at all, and WHEREAS, the technical staff of the Tlingit-Haida Regional Housing Authority and the Bureau of Indian Affairs recommend completely new generation facilities and a new distribution system, and WHEREAS, a reliable electrical utility is vital and necessary 7 not only for everyday living, but for housing and industry development and expansion, and WHEREAS, the City of Kake is not financially able to undertake an electrification project of this magnitude and scope, and WHEREAS, a Rural Electrification Administration sponsored co-operative could make reliable power a reality in rural Southeast Alaska, now THEREFORE, BE IT RESOLVED » that the City of Kake hereby endorses the Tlingit and Haida Regional Housing Authority's efforts to establish an REA sponsored Rural Southeast Alaska Co-operative, and hereby respectfully requests the Rural Electrification Administration to conduct a feasibility study towards this end. PASSED AND ADOPTED by a quorum of the City Council of Kake, Alaska, this ayth, day of Suet , 1974, by a vote of 4 yeas and _ J nays. Mayor City of Kake (SEAL) Bu tl fs Cavanagh City Clerk RESOLUTION NO. /4%-S#7 ENTITLED DEVELOPMENT OF A SOUTHEAST ALASKA ELECTRICAL COOPERATIVE WHEREAS, the Village of Klukwan realizes that its existing generation and distribution systems are very inadequate and substandard and virtually not systems at all, and WHEREAS, the technical staff of the Tlingit-Haida Regional Housing Authority and the Bureau of Indian Affairs recommend completely new generation facilities and a new distribution system, and WHEREAS, a reliable electrical utility is vital and necessary, not only for everyday living, but for housing and industry development and expansion, and WHEREAS, the Village of Klukwan is not financially able undertake an electrification project of this magnitude and scope, and WHEREAS, a Rural Electrification Administration sponsored co-operative could make reliable power a reality in rural Southeast Alaska, now THEREFORE, BE IT RESOLVED, that the Village of Klukwan hereby endorses the Tlingit and Haida Regional Housing Authority's efforts to establish an REA sponsored Rural Southeast Alaska Co-operative, and hereby respectfully requests the Rural Electrification Administration to conduct a feasibility study towards this end. ~ Looe PASSED AND ae by a quorum of the han aa of Klukwan, Alaska, this A] day of ; » 1974, by a vote of fb - and tpn nays. av Lt ; é tf*.» President Village of Klukwan Amclrtiva Soo kw Cater pillars 500 Kw Cater PILLAR Amc HeTKA BALVIINSD MY 00G 73NY4 $ avabHaims and NI ZINOUHINAS, Amcketica Remote Rapiators Remote RaniATors Or TANKS 212,000 EAS Pawel Engine Extausts Bower House TRANS FoRMERS Hoonal Powe n ibuce 500 KW STERLING ¢ PANEL BOARDS Rapiator Hoo NAH METERS, Efe.- BEFORE INSTALLATION HoonAW $379g wWIme W7idyL Hoonat TYPICAL SER Vice ENTRANCE TYPICAL Seevice ENTRANCE Power Ouse < ATER PILLAR \50 kw SVRSMNYM MA ST] SNIAAS apo’ BSVEGHMING PANLSIXG KAKE aFNOH Bama KeaNke FINAN 449-39 YL 29077 (\ KRKE ATAU A, BRWNAIIGNYD YL TRPHIG KL KW Pay aNiating 25noL a2mMof FAN BANA PNILSIKD KiuKk WAY BsTrdagiW7 My 8 BUIMA Adazay MX Cal SAU MgadszLe7 MY SLEMH Gal 4 WITLHGEAR € PRWELING Kuukwan a1 aad TWEAIBGAL HKAAWO< Kk aSQOY BIMeg HYASNNY>D aI? Bs Hoy BaMmay Sctool Swit geae ae % ~y BION IS KLAWoek Tyeizac Power Pore