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HomeMy WebLinkAboutAlatna Reconnaissance Study Of Energy Requirements & Alternatives-Draft Report Alanta 1982VIL-A ea FILE COPY c. 2 ALASKA POWER AUTHORITY aii DRAFT REPORT Atkasook Brevig Mission Diomede Galena’ RECONNAISSANCE STUDY OF ENERGY REQUIREMENTS. AND ALTERNATIVES Golovin vee Gustavus Karluk Koyuk New Chenega March 1982 Ruby St. Michael Shageluk Shismaref Stebbins Teller Unalakleet Yakutat PR wach ve Alaska Power Aut 334 W. He Anchorage, Alaska 99501 ACRES AMERICAN INCORPORATED 1577 C Street, Suite 305 Anchorage, Alaska 99501 Telephone (907) 279-9631 DRAFT VILLAGE SPECIFIC REPORT A. ALATNA INQ A (SP DRAET ALATNA A- 1 A_- SUMMARY AND RECOMMENDATIONS Energy use and costs of energy alternatives for Alatna and Allakaket have been examined and the following conclusions are drawn: i Development of the hydroelectric potential at an unnamed creek 2 1/2 miles south of the villages would not be an economical venture within the planning period under consideration in this study. No alternatives to central diesel power are available to Alatna to reduce electricity costs. Because of the small air-cooled diesel used (3.8 kW) for power generation in this village, waste heat recovery for space heating is not viable. Potential for reduced electricity cost exists in Allakaket if the village and school district are combined into the same system. Benefits of waste heat recovery to the school would lower electricity costs to the village. Inclusion of Alatna in this system would be economically prohibitive because of the high cost of spanding the Koyukuk River. Substantial savings in wood use for space heating could be achieved for homeowners with an ambitious energy conservation program, including the widespread installation of more efficient heating stoves. Evaluation results for possible impacts on alternatives are summarized in Table 1 and Figure 1. INR A fe TP Lav aYy TABLE 1 COMPARATIVE ESTIMATED ELECTRICAL ENERGY PRICES FOR BASE CASE PLAN AND ALTERNATIVES nnn Sn UU aE UIE ggEIDE URIIENSERSSEEIE EE ERSEESEERESINEE Energy {a) Energy (b) Energy (c) Base Case Plan Alternative "A" Year Production Production Production Energy Price Energy Price MWh MWh MWh $/kWh $/kWh 1982 10 58 154 0.56 0.46 1983 ll 65 161 0.55 0.45 1984 12 al, 167 0.54 0.46 1985 14 80 176 0.53 0.45 1986 15 87 183 0.53 0.45 1987 17 98 194 0.55 0.45 1988 19 108 204 0.55 0.45 1989 21 110 206 0.57 0.46 1990 22 110 206 0.57 0.46 1991 22 115 211 0.57 0.47 1992 22 116 212 0.58 0.48 1993 22 120 216 0.59 0.49 1994 22 122 218 0.60 0.49 1995 23 126 222 0.61 0.50 1996 23 127 223 0.61 0.51 1997 23 131 227 0.62 0.51 1998 23 133 229 0.64 0.52 1999 24 138 234 0.65 0.52 2000 27 140 236 0.66 0.54 2001 27 142 238 0.67 0.55 (a) Alatna electrical energy forecast (b) Allakaket electrical energy forecast (city only) (c) Allakaket and school district electrical energy forecast LAVUG 2-V WNLVIV ALATNA A-3 . e ees 0.60 055 0.50 - 0.45 040 0.35 OIL AS USED AT 4=0.35 oO oO & 8S ‘ENERGY COST (/KWh) ENERGY COST ($/i0® BTU) D Oo Oo N ° OS” OIL AS USED AT n=0.65 a 0.10 P| | OIL AS DELIVERED a —s| WUUD AS USED AT n=0.35 = 0,05 WOOD AS| DELIVERED | 1980 1985 1990 1995 2000 8 6x38 8 3 10 ALATNA/ALLAKAKET -FIGURE | NRAET | DRAET ALATNA A- 4 B - DEMOGRAPHIC AND ECONOMIC CONDITIONS B.1 - Location Allakaket* is on the south bank and Alatna on the north bank of the Koyukuk River, about 45 miles southwest of Bettles in the Kanuti Flats. The communities are approximately 57 miles upriver from Hughes and 190 miles northwest of Fairbanks. B.2 - Population Date: 1960 1970 1980 1981 Population: 115 174 163 175 In 1981, there were 155 residents in Allakaket and 20 residents in Alatna. Most homes are log cabins with seven HUD homes in Allakaket and one HUD home in Alatna, for a total of 38 units in Allakaket and eight units in Alatna. B.3 - Economy Alatna and Allakaket are almost entirely subsistence economies, with trapping, hunting, fishing, and summer firefighting for BLM the main activities. Transfer payments also play a role. Most people have a garden and grow many of their own vegetables. A community solar food-producing greenhouse and canning facility was built in 1981. Most people cut their own wood for fuel and building materials. Residents of both villages are shareholders in K 'oyit' ots' ina, Ltd., (located in Huslia), incorporated in accordance with terms of the Alaska Native Claims Settlement Act. * Because Alatna and Allakaket are only 1/4 mile apart and because they are one municipality and share all services (except electric power generation), they are here considered jointly. INQ A [5 IP DR A [F T ALATNA A-5 B.4 - Government Alatna is unincorporated, and Allakaket is incorporated as a second class city with a mayor-city council form of government. Both villages have chiefs, and Allakaket has a city clerk and a health clinic. B.5 - Transportation Located on the Koyukuk River, Allakaket and Alatna are accessible by river going vessels. Residents use private boats for travel and fishing. In winter, residents use snowmachines for transportation. Wien Airlines flies to Allakaket from Fairbanks three times a week; Frontier Flying Service (Fairbanks) and Nenana Air also have regularly scheduled flights. Charter service is available to Allakaket. Alatna does not have an airstrip. Barge service has been discontinued, so all supplies are flown in. INT M [SIP DRAFT ALATNA A-6 C - COMMUNITY MEETING REPORT A community meeting was held in the school on the evening of November 23, 1981. The meeting was held in conjunction with the Allakaket-Alatna City Council meeting and approximately 17 people attended. In the meeting, and at other times during the site visit, alternatives to diesel power were discussed with the following conclusions: (1) The existing diesel generators are air-cooled and have little potential for useful waste heat recovery. (2) Wind potential in the region is insufficient for wind-powered generators. (3) Geothermal potential does not exist near the village. (4) Two potential hydroelectric sites are near the village as reported by Ott Water Engineers for the Corps of Engineers. One site is approximately 2 miles northwest of Alatna and the other is 1-1/2 miles south. (5) Wood potential exists, but the supply in the region would not support a wood gasification system. Residents travel up to 3 miles by snowmachine to haul in wood for space heating. Forest renewal is estimated to require 200 to 300 years. The residents of Alatna and Allakaket seemed most interested in the possibility of a small hydro project on the creek south of the village on the Allakaket side of the Koyukuk River. They requested that the reconnaissance study look further into the alternative. Some also commented that there is a fair amount of peat nearby and it should be examined as an alternative fuel for power generation. Residents also expressed concern about the rising cost of fuel, particularly as it affects the cost of travel by snowmachine. During winter, up to 2 barrels of oil are consumed per month for snowmachine travel. INT A [SIP DRAET re D - EXISTING POWER AND HEATING FACILITIES D.1 - Existing Power Facilities Alatna and Allakaket share all village services except power generation. Each village operates central power systems with single phase distribution (120/240 V for Alatna and 208/480 V for Allakaket). There is no metering system for either village with Alatna charging $40 per month and Allakaket charging $50 per month for power service. Alatna is presently served by a 3.8 kW, 1,800 rpm, air-cooled Lima diesel generator. There is no backup. The unit was installed when Alatna first received electric power about 1976. The unit was estimated to be running at almost peak capacity serving eight residences. Two freezers are the major loads in the community with the rest of the power used for lights. Electric energy use for Alatna and Allakaket is about 1,200 kWh per household. Operations and maintenance on the generator is performed voluntarily by three residents in the village. Plans are to replace the 3.8 kW diesel with a 8.8 Condec unit in 1982. A new structure (log cabin) was built to house the unit. Allakaket is served by two air-cooled units as follows: John Deere Diesel, 1,800 rpm, 30 kW Lister, 1,800 rpm, 30 kW Peak load for this system is approximately 12 kW. Major loads are freezers (used in the summer only) and lights. In addition to the central systems, the Allakaket school generates its own power. The school has five diesel units installed ranging in size from 30 kW to 100 kW for a total capacity of 370 kW. Each unit was a different model with and three manufacturers represented. At the time of the site visit, only the small unit was operational and was experiencing overloads, tripping the circuit breaker. The school generators serve the school building, safe water house, and two faculty residences. Peak load is about 35 kW with annual electric energy use about 96 MWh. Because of the poor condition of the existing power plant, the school has budgeted for a new system to be installed during the summer of 1982. The size of the new plant will depend on a decision now being weighed by the residents of Allakaket. The school proposed to the village an INR A [EP [D) R A [F T ALATNA A-8 arrangement whereby the city government buys power from the school and assumes responsibility for its distribution. Villagers have been hesitant to accept the plan for fear of higher electricity costs and reduced control over the operation. At the time of this writing, unit sizes had not been selected; but, given the electricity forecasts of this study, two 100 kW diesels should be sufficient to meet future demands to the end of the planning period with one unit in operation. If the village does not accept the plan, the school will probably select two smaller, more efficient units. INQ A (SP DRAFT ALATNA A-9 E - ENERGY BALANCE Table 2 presents an energy balance for the combined villages of Alatna and Allakaket. Figure 2 shows the general distribution of this energy to end users. TABLE 2 ENERGY USE PROFILE Tot al Heat Content (a) _ (c) 9 Type of Fuel Cost End Uses Quantity (10 Btu) (b) Wood Residential Space 552 Cords 9.38 Heating #1 Fuel Oi1 $2.39/gal Residential Space 25,200 gal 3.48 and Water Heating Electric Power 16,800 gal 2.32 Generation Gasoline $2.488/gal_ Transportation 20,000 gal 2.85 Propane Cooking 11,500 1b 0.22 Notes: (a) January 1982 landed bulk fuel costs. Source: Nenana Fuel Co. (b) Space heating includes energy used for domestic water heating. (c) Quantities of fuel are for the year 1981. Source: Nenana Fuel Co. INQ A [ETP eu $4 13d 42222 Lav adWy SCHOOL SPACE SYSTEM LOSSES (1.10) HEATING USEABLE HEAT . FUEL OIL (3.13) (2.03) (5.80) 5 - - SS SUMMIT Y SPACE NSTEM LGsor 2 (1! HEATING (035) USEABLE HEAT (0.23) ELECTRIC POWER SYSTEM LOSSES (1.92) GENERATION (2.32) USEABLE HEAT (0.40) ENERGY RESOURCES Or END USE RESIDENTIAL SYSTEM SPACE LOSSES HEATING (6.10) wood (9.38) USEABLE HEAT (3.28) GASOLINE (2.76) PROPANE (0.22) SD NOTE: (0.22) COOKING (0.22) 3 ALL UNITS IN 10 BTU/YR. ALATNA /ALLAKAKET ENERGY BALANCE (198!) ACRLD AWERICAN INCORPORATED LAV dG Ol-y YNLWIV DR A F T ALATNA A-11 F - ENERGY REQUIREMENTS FORECAST F.1 - Capital Projects Forecast Because Alatna and Allakaket are only 1/4 mile distant and because they are one municipality and share all services (except power generation), they are considered jointly in this population and economic activity forecast. F.1.1 - Scheduled Capital Projects None F.1.2 - Potential Developments None F.1.3 - Economic Forecast Alatna and Allakaket have subsistence economies with some trapping and firefighting. No economic development is expected. F.2 - Population Forecast Alatna and Allakaket declined in population from 1970 to 1980 by 0.6 percent. The annual growth rate from 1960 - 1980 was 1.7 percent. Residents expected no in-migration and no growth other than that from the natural birth and death rates. The population forecast table below was based on an annual growth rate of 1 percent starting from the 1981 population. 1960 1970 1980 1986 1991 1996 2001 Population 115 174 163 184 193 203 213 #Res idences NA 37 44 48 51 53 56 #Commercial NA NA 1 1 2 2 2 #Gov 't /Other NA NA 6 6 7 7 8 IMIR A [1 DR A E T ALATNA A-12 F.3 - Electrical Energy Forecast Current electrical energy use in Alatna and Allakaket is low relative to other villages visited in the reconnaissance study. Anticipation is that electric energy consumption will rise faster than projected population growth as residents acquire new appliances. To reflect this trend, per household consumption was increased 12 percent per year until 1988, and then 1 percent thereafter. Approximately 85 percent of the homes in any given year were assumed to receive electricity service. Consumption in the institutional and commercial sectors was projected to grow in proportion to the expanding sector. Peak load was forecast based on a load factor of 0.40 for residential and commercial sectors, while the school load was held constant over the planning period. With these assumptions, separate electrical energy forecasts were projected for Alatna and Allakaket. Table 3 presents the forecast for Allakaket. Figure 3 illustrates projected demand. F.4 - Thermal Energy Forecast A thermal energy forecast for electricity generation and space heating was projected for the combined villages of Alatna and Allakaket. Results of this forecast are shown in Figure 3 in terms of net heating requirements. An advantage of presenting net rather than gross heating needs is that the quantity of electricity required to displace oi] and wood dependent heating systems can readily be determined. Gross heating values can be estimated for the village by simply dividing the heating efficiency into the net heating requirement for any given year. For the cases of Alatna and Allakaket, where most heating is done with wood stoves, the heating efficiency is estimated at 35 percent. For the thermal energy forecast, existing homes were estimated to have an annual net space heating requirement of 71.4 x 106 Btu. Starting in 1986, it was assumed that retrofit energy conservation measures reduce home heating requirements by 10 percent. For new homes constructed starting in the same year and after, heating requirements were reduced 25 percent to reflect implementation of improved energy conserving home construction techniques, such as triple-glazed windows and double-walled homes. INR A (ET ei Va TABLE 3 VILLAGE ELECTRIC ENERGY USE FORECAST (a) Residential Schools Cb) Other Total. Year kW Mah kW Miah kW Mah” 1982 12 41 35 - 5 17 17 58 1983 13 47 35 - 5 18 18 65 1984 15 53) 35 - 5 18 20 dil 1985 17 61 35 - 5 19 22 80 1986 19 68 35 - 5 19 24 87 1987 22 78 35 = 6 20 31 98 | 1988 25 87 35 - 6 21 31 108 1989 25°. 88 35 = 6 22 31 110 1990 25 88 35 - 6 22 31 110 1991 26 92 35 - 7 23 33 115 1992 26 92 35 - 7 24 33 116 1993 27 96 35 - 7 24 34 120 1994 28 97 35 - 7 25 35 122 1995 29 100 35 = 7 26 36 126 1996 29 101 35 - 7 26 36 127 1997 30 104 35 - 8 27 38 131 1998 30 105 35 - 8 28 38 133 1999 31 109 35 - 8 29 39 138 2000 ol 110 35 - 9 30 40 140 2001 32 111 35 - 9 31 41 142 nl (a) Forecast for Allakaket Power System only. (b) School load is not onAllakaket system. (School annually uses 96 MWh and draws 35 kW from its own system.) LAIVUC WATWIW erewu oar ALIN (YMW) NOILGWASNOD ADYSNS oO O° OL, On 1.9). 30. 210 =O Se oO oS So -§ € 8 8 8-6 "eo. 84-8 VILLAGE ENERGY CONSUMPTION (MWh) VILLAGE PQ (M¥) ONVW30 1995 2000 1985 1930 1980 ALATNA /ALLAKAKET - FIGURE 3 NR A ET DR AET : ALATNA A-15 TABLE 4 NET THERMAL REQUIREMENTS (4) Electricity Residential Schools Other Total Year (io%Btu) (10° tu) (1o%Btu) _(10%Btu) —_—(10°Btu). 1982 0.54 _ 3.3 2.6 1.25 7.69 1983 0.56 3.4 2.6 1.25 7.81 1984 0.58 3.4 2.6 1.25 7.83 1985 0.61 3.4 2.6 1.25 7.86 1986 0.64 3.1 2.6 1.25 7.59 1987 0.68 3.1 2.6 1.43 7.81 1988 0.71 3.1 2.6 1.43 7.84 1989 7 0.720 | a2 2.6 1.43 7.95 1990 0.72 3.2 2.6 1.43 7.95 1991 0.74 3.2 2.6 1.60 8.14 1992 0.75 3.2 2.6 1.60 8.15 1993 0.76 3.3 2.6 1.60 8.26 1994 0.77 3.3 2.6 1.60 8.27 1995 0.78 3.4 2.6 1.60 8.38 1996 0.78 3.4 2.6 1.60 8.38 1997 0.80 3.4 2.6 1.60 8.40 1998 0.81 3.4 2.6 1.60 8.41 1999 0.82 3.5 2.6 1.78 8.70 2000 0.83 365) 2.6 1.78 8.71 2001 0.84 3.5 2.6 1.78 8.72 (a) Includes both Alatna and Alakaket INQ A (SIP D R A E T ALATNA A-16 G - VILLAGE TECHNOLOGY ASSESSMENT Table 5 presents the results of the preliminary evaluation of resources and technologies as applied to the community. Methods and criteria used in developing this table are covered in Section C of the main report. The results of this preliminary assessment were used as guidance in development of plans evaluated in the final stages of the study. INR A [SP DRAF TABLE 5 VILLAGE TECHNOLOGY ASSESSMENT ~ FOR TECHNICAL FACTORS COST FACTORS RESOURCE FACTORS TECHNOLOGY Electric 1. (Coal Fired Steam 4 bet 0 {|0 070 0 0 2. Wood Fired Steam 4 13 |20 0|;0 21.7 O | 22 3. Geothermal 1 1/1 0|;0 070 0 0 4. Diesel (base) 4 2) 2 Sui ze 2 1 193) ]) 2 5. Gas Turbine a Que 010 O}7 0 | 25 6. Hydroelectric 5} 1]1 fo ];2 |] 303 | 1 | -2 7. Wind 3 1) 1 Ong 3 10 1 4 8. Photovoltaic 3 2 2 0 |0 SF lie 2] 18 Heating 9. Diesel Waste Heat Recovery 6 10. Electric Resistance 7 11. Passive Solar 41 12. Wood 65} 1 13. Coal 6 14. Oil (base) 61] 2 Other 15. Coal Gasification 0 16. Wood Gasification - Diesel 16 17. Biogas 0 18. Waste Fired Boiler 0 19. Peat 0 20. Binary Cycle Generator 0 | 21. Conservation 100 | INR A (SP DR A E T ALATNA A-18 H - ENERGY PLAN DESCRIPTIONS The village of Alatna was somewhat unique from other villages studied in that it represented a small segment of people (11 percent) from the larger community of Allakaket located across the Kayukuk River (about 400 yards wide). The city council of Allakaket had representation from Alatna and from all indications both functioned as one village. As Alatna is the subject of this report a thorough analysis was first conducted specifically on them to identify alternatives to their present situation. Alatna currently has a central 3 kW diesel generator serving the eight residences. After thorough review it was concluded that there are no feasibile alternative technologies to their present situation. During this process an analysis of hydropower development was conducted in the hopes that sufficient potential was available to serve both segments of the community. Results showed there to be excessive costs in such an alternative. For the purpose of comparison, the results of this analysis will be included as Alternative "B". Likewise, wind and transmission from Allakaket were quickly eliminated an not feasible. The only available alternative to their present situation would be to consider relocating across the river nearer the large population of Al lakaket. In the interest of assisting the entire community of Allakaket/Alatna and because of an expressed request for assistance by the city council this study will analyze a base case for Allakaket and two alternatives. It is emphasized that for the reasons previously mentioned the Alatna segment of the community will not benefit from this analysis. H.1 - Base Case There will be continued development of the diesel based central utility presently serving Allakaket. The school district maintains a separate power system that serves the school building, safe water house, and two teacher residences. H.2 - Alternative "A" The school district will build a new power plant, locating it adjacent to the school using waste recaptured from the diesel generators for space heating. The school will also provide power to the City of Allakaket. INR A [5 4P DRAFT ALATNA A-19 H.3 - Alternative "B" - A’ run-of-the-stream hydropower will be built on a creek to the south providing energy to both communities. INQ A [TP La vad TABLE 6 COST OF DIESEL-GENERATED POWER (4) Diesel Fuel Total Energy Fuel Used Price Fixed Costs Total Energy Production (1,000 gal) ($/gal) Cost (1,000) Costs Cost Year ___ MWh Note 1 Note 2 1,000 Note 3 1,000 kWh 1982 58 8.3 2.39 19.8 12.9 See, 0.56 1983 65 9.3 2.45 22.8 12,9 35.7 0.55 1984 = 71 10.1 2.52 25.4 12.9 38.3 0.54 1985 80 11.4 2.58 29.4 12.9 42.3 0.53 1986 87 12.4 2.65 32.9 12.9 45.8 0.53 1987 98 14.0 eane 38.1 16.2 54.3 0.55 1988 108 15.4 2.79 43.0 16.2 59.2 0.55 1989 110 15.7 2.86 44,9 16.2 61st 0,56 1990 110 15.7 2.93 46.0 16.2 62.2 0.57 1991 115 16.4 3.01 49.4 16.2 65.6 0.57 1992 116 16.6 3.09 51.3 16.2 67.5 0.58 1993 120 17 OL Sele, 54.2 16.2 70.4 0.59 1994 122 17.4 3:29 56.6 16.2 72.8 0.60 1995 126 18.0 3.34 60.1 16.2 16.33 0.61 1996 127 18,1 3.42 61.9 16.2 78.1 0.61 1997 131 18.7 3,51 65.6 16.2 81.8 0.62 1998 133 19.0 3.60 68.4 16.2 84.6 0.64 1999 138 19.7 3.70 72.9 16.2 89.1 0.65 2000 140 20.0 aet9 75.8 16.2 92.0 0.66 2001 +~=—«2142 20.3 3.89 79.0 16.2 95.2 0.67 Note 1: Diesel fuel use is calculated at a consumption rate of 7 kWh produced per gallon of fuel used. Note 2: Diese) vel pease is expressed in terms of 1981 dollars, with prices escalated at 2.6 percent above general inflation, Note 3: Total annual fixed costs include funds for equipment amortization (calculated at 3%), a sinking fund for equipment overhaul and replacement, and general 0&M work. Note 4: Cost projection is for Allakaket power system only. LAIVAC YNLWIV _ 02-4 La Vad TABLE 7 ESTIMATED COSTS OF BASE CASE p(?) eee UUaEyEEnUnInEIISIEISIEISISSSSSSINESSSSDNSRS SEES SE Plan Component Diesel Total Anorti- Overhaul Annual Discounted Year zation Fund 0&M Fuel Costs Costs 1982 - 3.2 1.7 8 19.8 33 32 1983 3.2 ey 8 22.8 36 34 1984 3.2 1.7 8 25.4 38 35 1985 3.2 1.7 8 29.4 42 37 1986 Jue Liat 8 32.9 46 40 1987 . 5.4 2.8 8 38.1 54 45 1988 5.4 2.8 8 43.0 59 48 1989 5.4 2.8 8 44.9 61 48 1990 5.4 2.8 8 46.0 62 48 1991 5.4 2.8 8 49.4 66 49 1992 5.4 2.8 8 51.3 68 , 49 1993 5.4 2.8 8 54.2 70 49 1994 5.4 2.8 8 56.6 73 50 1995 5.4 2.8 8 60.1 76 50 1996 5.4 2.8 | 8 61.9 78 50 1997 5.4 2.8 8 65.6 82 51 1998 5.4 2.8 8 . 68.4 85 51 1999 5.4 2.8 8 72.9 89 52 2000 5.4 2.8 8 75.8 92 52 2001 5.4 2.8 8 79.0 95 53 Se ee ee All cost figures shown are in thousands of dollars. TOTAL: $ 923 (a) Annual cost projection is for Allakaket power system only. LAV dG VNLVTY Te -V DRAFT ALATNA A- 22 I - ENERGY PLAN EVALUATION I.1 - Base Case A I.1.1 - Economic Evaluation The present central utility system as described in Section D, consists of two 30 kW diesel generators. These units will be satisfactory until the year 1987, when projections show that the capacity will be exceeded. In keeping with the basic operating principle that full back-up capacity should be maintained, it is recommended that in 1987 both 30 kW units be retired and replaced by twwwo 50 kW units. These larger units should satisfy generating needs through the end of the planning period. Assumptions made for calculating future electricity costs and present value figures are as follows: 0 Utility planning is carried out as previously described. ° Diesel generators are valued at an installed cost of $800/kW, amortized at 3 percent annually over a 20 year operating life. oO Diesel generators are overhauled every 5 years at a cost of $100 kW, recovered over the same period as a sinking fund at 3 percent. oO General operations and maintenance costs are valued at $8,000 though these services are provided on a voluntary basis. 0 Electricity is produced at the fuel consumption rate of 8 kWh per gallon. oO Annual fuel cost is based on the January 1982 price of $2.39 per gallon with the real cost rising 2.6 percent annually to $3.89 by the year 2001 and remaining constant thereafter. Table 6 presents the summary of calculations yielding unit costs of electricity ($/kWh). Table 7 shows the annual cost breakdown and present worth calculations for this system. 1.1.2 - Social and Environmental Evaluation The environmental impact of continuing operation of the diesel generator is minor. With the powerhouse located in the center of the village, noise pollution may present some irritation. This is minor considering the small size of the units. involved. The engine lubricating oi] must be changed periodically and the waste oil NR A le 1 1.2 - | DRAFT ALATNA A-23 disposed of properly. In remote villages such as Allakaket and Alatna, this can be a significant problem. The large number of rusting oil drums and junked engines surrounding the powerhouse in Allakaket also suggests the problems of waste removal. An obvious benefit of the village central diesel system is the satisfaction villagers derive from operating their own plant. 1.1.3 - Technical Evaluation There are no technical barriers to the continued development of this system. A better foundation than logs, however, may be desirable for reduced vibration, prolonging machine life. Alternative Plan "A" 1.2.1 - Economic Evaluation In the fall of 1981, a proposal was made by the school to the city council of Allakaket offering to supply the village with electric power. At the time of this writing, the proposal had not been accepted. Alternative A evaluates the potential cost of power to the village if such a plan were to be placed into effect. For this plan it is assumed that a new power plant is built next to the school serving both the village and school district. Two 100 kW units are installed which satisfy demand forecast projections through the end of the planning period in 2001. A waste heat recovery system is also installed to supplement space heating for the school. Assumptions made for the economic analysis are the same as those for the base cases, with general O&M valued at $8,000 per year. The waste heat recovery system is valued at an installed price of $70,000 including two heat exchangers, 30 yards of supply and return piping, and miscellaneous costs. The system amortizes at 3 percent annually a 10 years. Annual O&M for the waste heat system is valued at 1,000. Table 8 presents the annual cost breakdown and present worth calculations for this system. The space heating fuel displacement benefits of this plan are shown in Table 9. Present value calculations are carried through the year 2001. DIR A IFT La vay TABLE 8 ESTIMATED COSTS OF ALTERNATIVE “A"(a) i Plan Component Waste Heat Diesel System Total Amorti- Overhaul Amorti- Annual Discounted Year zation Fund ORM Fue] zation _ O&M Costs Costs 1982 - 11 6 8 53 6 1 85 83 1983 11 6 8 56 6 1 88 83 1984 11 6 8 60 6 1 92 84 1985 11 6 8 65 6 1 97 86 1986 11 6 8 69 6 1 101 87 1987 ll 6 8 76 6 1 108 90 O 1988 11 6 8 81 6 1 113 92 So 1989 11 6 8 83 6 1 115 91 1990 11 6 8 85 6 1 117 90 > 1991 11 6 8 90 6 1 122 91 Tl 1992 ll 6 8 93 6 1 125 90 =| 1993 11 6 8 98 6 1 130 91 1994 11 6 8 101 6 1 133 91 1995 11 6 8 107 6 1 139 92 1996 11 6 8 109 6 1 141 91 1997 - 11 6 8 112 6 1 144 90 1998 11 6 8 119 6 1 151 91 1999 11 6 8 122 6 1 154 90 2000 11 6 8 129 6 1 161 92 - 2001 11 6 8 132 6 1 164 91 > = > ' NJ All cost figures shown are in thousands of dollars. TOTAL: $ 1,786 Total present worth of non-electrical benefits $343 Net present worth of Alternative "A": $1,443 ALATNA A- 25 TABLE 9 ESTIMATED NON-ELECTRICAL BENEFITS OF ALTERNATIVE "A" Benefits Total Space Heating Annual Discounted Year Fuel Displacement Benefits Benefits 1982 14 14 14 1983 15 15 14 1984 16: 16 15 1985 17 17 15 1986 18 18 16 1987 20 20 17 1988 21 21 ATi 1989 22 22 17 1990 22 22 17 1991 23 23 17 1992 24 24 17 1993 25 25 18 1994 26 26 18 1995 28 28 19 1996 28 28 18 1997 29 29 18 1998 31 31 19 1999 32 32 19 2000 34 34 19 2001 34 34 19 2002 through 2009 = 2 = All cost figures shown are in thousands of dollars. TOTAL: $ 343 DRAFT IDR A fe TP DRAFT ALATNA A-26 Electric energy costs per kWh of this plan are presented in Table 1 of the summary and findings. These costs include the fuel displacement benefit. The economic analysis suggests that the villagers of Allakaket could receive significant reduction in the cost of electrical energy with this plan. The present worth value of this plan is higher than Base Case B because the plans are not directly comparable in terms of capital investment required. 1.2.2 - Social and Environmental Evaluation Minor environmental gains can be achieved with waste heat recovery by displacing oi] that otherwise would be burned at the shcool for space heating. A social disbenefit to villagers would occur, however, if the village did accept the plan proposed by the school. Villagers would lose the satisfaction and pride that comes with operating and maintaining their own power system. They would also lose control over the prices charged for electricity. Experience has proven in some districts that schools are sometimes negligent in the general maintenance of their systems. Whether or not the Yukon-Koyuliah School District has a similar performance record is not known. 1.2.3 - Technical Evaluation In terms of sound energy management, waste heat recovery should be encouraged wherever practical. The technology is proven and is now being widely implemented throughout Alaska. The system at Allakaket would be cost effective, particularly if the load on the diesel generators could be increased by incorporating Allakaket into the system so that more waste heat is available for space heating to the school. 1.3 - Alternative Plan "B" In this alternative, potential hydro sites in the area of Alatna and Allakaket were reexamined for their economic feasibility. The more promising hydro site identified by Ott Water Engineers was an unnamed creek about 2 1/2 miles south of the villages. Ott Water concluded that the total 1981 project cost of an 82 kW development would be $3,554,000. (The 82 kW development was based on the 80 percentile mean flow of 11.4 cfs.) The energy is basically supplied from May to October only, since winter flows are minimal. Assuming the project cost is reasonable, at 3 percent interest the project annual cost would be $138,000, exclusive of O&M and replacement. INQ A [SIP DRAFT ALATNA A-27 An estimate of the monthly distribution of energy consumption by villages in the region indicates that 42 percent of the electrical energy generated is consumed from May to October. For the combined villages of Alatna and Allakaket in year 2001, for example, total electricity consumption was forecast as 265 MWh. Of this, only 111 MWh (or 42 percent) would be consumed when hydropower is available. Therefore, the estimated cost per kWh would be $1.24 which far exceeds the price that can be delivered by diesel powered systems over the planning period. Therefore, hydroelectric development is not recommended at this time for these villages. IN(Q AM [SP PROPERTY OF: Alaska Power Authority ~ 334 W..5th Ave. Anchorage, Alaska 99501