HomeMy WebLinkAboutCooper Valley Intertie 1995Copper Valley Intertie
June 29, 1995
“Tecrrio i Topics
Overview General Manager
Chronology
State Loan
R W Beck Study
RFP
Discussion
Benefits
Limiting Factors
Recommendation
Slide 2
hugach'XS
lectric AN
Copper Valley Intertie
Sutton-Glennallen 138 kV Line
John S. Cooley
Manager, Planning
June 29, 1995
Slide 3
cere Chronology
e 12/92 Power supply feasibility
e 5/93 Legislature authorizes $35 million loan
e 12/93 Offer to be a resource to CVEA
e 3/94 Power supplier affirmation
e 7/94 DCRA determines line was feasible
e 9/94 Chugach proposal in response to RFP
e 2/95 Expanded proposal
e 3/95 Blue Ribbon Committee formed
e 4/95 Joint Chugach/CVEA board meeting
¢ 6/95 Closure of CVEA RFP process
Slide 4
“icncl State Loan
e CVEA has highest non-PCE rates
¢ Scaled down version of Northeast Intertie
e CVEA lobbied for interties
e Loan part of 1993 legislative interties
package
- $35 million
- 50 year term
- No interest payments
- Feasibility Study required
Slide 5
mecca §=6sR W Beck Study
e Economic Feasibility per State standards
- transfer payments ignored
e Multiple Load Forecasts
- Low, Medium-Low, Medium-High, High
e Alternate Resource Plans
- All Diesel, Intertie, Allison Lake, Silver
Lake, Coal
Slide 6
hugach’§ Ciena
Cumulative Present Value of System Costs
(millions)
oa) High Med-High Med-Low oY)
All Diesel
Intertie
Allison Lake
ico FP Process and
Proposals
* Requested 10 to 20 yr Power Supply Proposal
- for delivery at Sutton
e ML&P and Chugach responded
e Chugach Proposal
- Firm Power Requirements net of Solomon Gulch
- Negotiated 10-20 yr Contract
- Take-and-pay System sale delivered at Sutton
- Tariff rates approved by APUC
- 1998 estimated cost 4 cents per kWh
- Offer to negotiate additional benefits for CVEA
¢ CVEA closed out process
Slide 8
hugach(Sa lenis DiscussIONS
ASSOCIATION, INC.
Chugach staff has met with:
¢ Clayton Hurless, CVEA General Manager
¢ CVEA Board of Directors
¢ Chugach Board of Directors
e Valdez city officials
e Petro Star Refinery officials
e Alyeska Pipeline officials
e Blue Ribbon Panel
Slide 9
$ Millions Annual Benefit to Chugach SET Peg vay creer eS
m= CVEA pays 4% of Line Costs
mC VEA pays 20%, No RAMP |
zCV
Intertie cost based on State loan plus 12.6 $million RUS loan
Base Case Resource Option cents/kWh
Eee eer Integration
Evaluation of Power Supply Alternatives, R W Beck, June 1995
Relevant Factors and
Politics
¢ Benefits directly proportional to load
- Petro Star Refinery: purchase, self-generate,
co-generate?
- Alyeska Terminal: isolated, co-generate, purchase?
- Affect of low cost power on Copper Valley economy?
- TAPS: shutdown when? effect on economy?
¢ Governor reviewing loan authorization
- Blue Ribbon report in August
¢ Strength of CVEA commitment
e Sutton residents opposition to intertie
¢ Cost/Benefit sharing among Chugach/MEA/HEA/SES
Slide 12
musachyas Recommendation
¢ Demonstrate support for intertie
e Commence negotiating Power Sale
Arrangement with CVEA
- Firm, Requirements net of Solomon Gulch
- Pool cost of intertie with Chugach G&T
assets
- Participate in construction with CVEA
- Otherwise aid CVEA intertie activities as
necessary
e Ensure benefits accrue to Chugach customers
Slide 13