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HomeMy WebLinkAboutAPPLICATION - REF Round 15 Grant App 5Dec2022 IPECRenewable Energy Fund Round 15 Grant Application -Standard Form Application Forms and Instructions ALASKA ENERGY AUTHORITY This instruction page and the following grant application constitutes the Grant Application Form for Round 15 of the Renewable Energy Fund (REF). A separate application form is available for projects with a primary purpose of producing heat (see Request for Applications (RFA) Section 1.5). This is the standard form for all other projects, including projects that will produce heat and electricity. An electronic version of the RFA and both application forms is available online at: https://www.akenerqyauthority .org/What-We-Do/Grants-Loans/Renewable-Enerqy-Fund/2022- REF-App lication . What follows are some basic information and instructions for this application: • If you are applying for grants for more than one project, provide separate application forms for each project. • Multiple phases (e.g. final design, construction) for the same project may be submitted as one application. • If you are applying for grant funding for more than one phase of a project, provide milestones and grant budget for each phase of the project (see Sections 3.1 and 3.2.2). • In order to ensure that grants provide sufficient benefit to the public, AEA may limit recommendations for grants to preliminary development phases in accordance with 3 Alaska Administrative Code (ACC) 107.605(1 ). • If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are completed and funding for an advanced phase is warranted. Supporting documentation may include, but is not limited to, reports, conceptual or final designs, models, photos, maps, proof of site control, utility agreements, business and operation plans, power sale agreements, relevant data sets, and other materials. Please provide a list of supporting documents in Section 11 of this application and attach the documents to your application. • If you have additional information or reports you would like the Authority to consider in reviewing your application, either provide an electronic version of the document with your submission or reference a web link where it can be downloaded or reviewed. Please provide a list of additional information; including any web links, in Section 12 of this application and attach the documents to your application. For guidance on application best practices please refer to the resource-specific Best Practices Checklists; links to the checklists can be found in the appendices list at the end of the accompanying REF Round 15 RFA. • In the Sections below, please enter responses in the spaces provided. You may add additional rows or space to the form to provide sufficient space for the information, or attach additional sheets if needed. • If you need assistance with your application, please contact AEA's Grants Coordinator by email at grants@akenerqyauthoritv.org or by phone at (907) 771-3081. AEA23046 Page 1 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form REMINDER: ALASKA ENERGY AUTHORITY • AEA is subject to the Public Records Act AS 40.25, and materials submitted to AEA may be subject to disclosure requirements under the act if no statutory exemptions apply. • All applications received will be posted on the Authority web site after final recommendations are made to the legislature. Please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application. • In accordance with 3 AAC 107.630 {b) Applicants may request trade secrets or proprietary company data be kept confidential subject to review and approval by AEA. If you want information to be kept confidential the applicant must: o Request the information be kept confidential. o Clearly identify the information that is the trade secret or proprietary in their application. o Receive concurrence from the Authority that the information will be kept confidential. If the Authority determines it is not confidential, it will be treated as a public record in accordance with AS 40.25 or returned to the applicant upon request. AEA23046 Page 2 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form SECTION 1 -APPLICANT INFORMATION ALASKA ENERGY AUTHORITY Please specify the legal grantee that will own, operate, and maintain the project upon completion. [ Name (Name of utility, IPP, local government, or other government entity) [Inside Passage Electric Cooperative Tax ID #43-1964262 Date of last financial statement audit: March 2022 Mailing Address: Phy sical Address: P.O. Box 120149 12480 Mendenhall Loo p Road Auke Ba y, AK 99821-0149 Juneau, AK 99801 Telephone: Fax: Email: (907) 723-0364 (907 ) 790-8517 JMitchell @ lnsidePassa geEiectric.org 1 1.1 Applicant Point of Contact I Grants Coordinator Name: Title: Jodi Mitchell, Chief Executive Officer Mailing Address: P.O. Box 210149 Auke Bay, AK 99821-0149 Telep hone: Fax: Email: _(907 ) 723-0364 (907 ) 790-8517 JMitchell @ lnsidePassageEiectric.org 1.1.1 Applicant Signatory Authority Contact Information Name: Jodi Mitchell Title: Chief Executive Officer/General Manager Mailing Address: P.O. Box 210149 Auke Bay, AK 99821-0149 Telephone: Fax: Email: (907 ) 723-0364 (907 ) 790-8517 J Mitchell @ I nsidePassa geEiectric. org 1.1.2 Applicant Alternate Points of Contact Name Telephone: Fax: Email: Brandon Shaw, (907) 723-8441 (907) 790-BShaw@lnsidePassageEiectric.org O perations Mana ger 8517 Roxanne Drake-(907) 364-3022 (907) 790-RDrake@lnsidePassageEiectric.org Burkhart, Controller 8517 AEA23046 Page 3 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form ALASKA ENERGY AUTHORITY 1.2 Applicant Minimum Requirements Please check as appropriate. If applicants do not meet the minimum requirements, the application will be rejected. 1 1.2.1 Applicant Type 181 An electric utility holding a certificate of public convenience and necessity under AS 42.05 CPCN #_240, or D An independent power producer in accordance with 3 AAC 107.695 (a) (1) CPCN # , or D A local government, or D A governmental entity (which includes tribal councils and housing authorities) Add". 1t1ona mm1mum re q uirements 181 1.2.2 Attached to this application is formal approval and endorsement for the project by the applicant's board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant's governing authority is necessa ry . (Indicate y es b y checkin g the box) To be p rovided in January 181 1.2.3 As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement (Section 3 of the RFA). (Indicate yes by checking the box) 181 1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as identified in the Standard Grant Agreement template at htt gs://www.akenergyauthori tv.org /What-We-Do/Grants-Loans/Renewable-Energy:- Fund/2022-REF-Agg lication (Any exceptions should be clearly noted and submitted with the application.) (Indicate yes by checking the box) 181 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. If no please describe the nature of the project and who will be the primary beneficiaries. (Indicate yes by checking the box) AEA23046 Page 4 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form I SECTION 2 -PROJECT SUMMARY 2.1 Project Title ALASKA ENERGY AUTHORITY Provide a 4 to 7 word title for your project. Type in the space below. Water Supply Creek Hydro Construction-Hoonah, AK I 2.2 Project Location 2.2.1 Location of Project -Latitude and longitude (preferred), street address, or community name. Latitude and longitude coordinates may be obtained from Gooqle Maps by finding you project's location on the map and then right clicking with the mouse and selecting "What is here? The coordinates will be displayed in the Google search window above the map in a format as follows: 61.195676.-149.898663. If you would like assistance obtaining this information, please contact AEA 's Grants Coordinator by email at grants@akenergyauthoritv.org or by phone at (907) 771- 3081. Latitude I I Lon g itude l [Other description of location] Please see construction design drawings and figure 1, page 1 of the study Conceptual Design Report attached to this grant application. The project is located near Hoonah, AK, and near the Gartina Falls Hydro Project completed August 2015. 2.2.2 Community benefiting-Name(s) of the community or communities that will be the beneficiaries of the project. Hoonah, Kake, Klukwan, Angoon, and the Chilkat Valley will all benefit from reduced fuel costs and rates. IPEC maintains a "postage-stamp" rate for all of its member-consumers whereby all communities benefit from cost reductions. The project is near Hoonah, AK, and adjacent to IPEC's existing Gartina Falls hydro project and distribution lines. 2.3 Project Type Please check as appropriate. J 2.3.1 Renewable Resource Type D Wind D Biomass or Biofuels (excluding heat-only) ~ Hydro, Including Run of River D Hydrokinetic D Geothermal, Excluding Heat Pumps D Transmission of Renewable Energy D Solar Photovoltaic D Storage of Renewable i o Other (Describe) D Small Natural Gas 1 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre-Construction Construction D Reconnaissance D Final Design and Permitting AEA23046 Page 5 of37 10/04/2022 I I I I I I I Renewable Energy Fund Round 15 Grant Application -Standard Form D Feasibility and Conceptual Design 2.4 Project Description Construction Provide a brief, one-paragraph description of the proposed project. ALASKA ENERGY AUTHORITY IPEC is requesting $3,538,526 in grant funding to construct a run of river hydro project at Water Supply Creek near Hoonah. This will be the second hydro project for Hoonah, and will reduce the community's dependence on diesel-electric generation. This project, combined with the Gartina Falls hydro project completed in 2015, will produce about 50% of Hoonah's electric requirements with clean, renewable energy. 2.5 Scope of Work Provide a short narrative for the scope of work detailing the tasks to be performed under this funding request. This should include work paid for by grant funds and matching funds or performed as in-kind match. IPEC plans to use the grant funds to hire contractors to construct the Water Supply Creek Hydro project (WSCH). The total estimated cost of the project, which includes a healthy contingency due to inflation, is $10,392,000. IPEC plans to apply for grant funding for the remaining $6,853,474 from the federal government under the Inflation Reduction Act. Several sources will soon become available, including direct pay incentives of up to 60% of project costs. The funding from the REF is very important, as there are cost-share requirements for some of the federal funding sources IPEC will apply for, including from the Office of Indian Energy (grant application due early February 2023). Furthermore, the Rural Utilities Service will be providing "forgivable" loans, although this may not have been announced yet. Another potential federal funding source is the Department of Energy Water Power Technology Office, with whom IPEC's CEO met with in October 2022 in Washington DC. 2.6 Previous REF Applications for the Project See Section 1.15 of the RFA for the maximum Qer Qroject cumulative grant award amount Round Title of application Application Did you Amount of REF Submitted #,if known receive a grant awarded g rant? Y/N ($) 13 Water Supply Creek Hydro Final Yes $461,474 Desi g n -Hoonah, AK AEA23046 Page 6 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form SECTION 3 -Project Management, Development, and O peration I 3.1 Schedule and Milestones ALASKA ENERGY AUTHORITY Please fill out the schedule below (or attach a similar sheet) for the work covered by this funding request. Be sure to identify key tasks and decision points, including go/no go decisions, in your project along with estimated start and end dates for each of the milestones and tasks. Please clearly identify the beginning and ending of all phases (1. Reconnaissance, II. Feasibility and Conceptual Design, Ill. Final Design and Permitting, and IV. Construction) of your proposed project. See the RFA, Sections 2.3-2.6 for the recommended milestones for each phase. Add additional rows as needed. Task Start End # Milestones Tasks Date Date Deliverables 1 Turbine Order, construct & Turbine installed & tested. install Turbine 8/23 12/25 2 Switchgear Order, construct, & Switchgear installed & tested. install Switchgear 8/23 12/25 3 Reservoirs, dams & Intake Access & Access road to intake, intake waterways Construction construction, penstock 2/24 12/25 installation. 4 Powerhouse Powerhouse access & Access to powerhouse site & construction 2/25 12/25 completion of powerhouse. 5 Line Extension Line extension and Completion of line extension interconnection of and fiber optic comms comms. 2125 12/25 interconnection. AEA23046 Page 7 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form 1 3.2 Budg et 3.2.1 Funding Sources ALASKA ENERGY AUTHORITY Indicate the funding sources for the phase(s) of the project applied for in this funding request. Grant funds re q uested in this a pplication $3,538,526 Cash match to be provideda to be provided from federal grant sources which IPEC will $6,853,474 apply for through the Inflation Reduction Act including the Office of Indian Energy, the DOE direct pay Incentives, and the Rural Utility Service 's forgivable loan program In-kind match to be p rovideda $ Energy efficiency match p rovidedb $ Total costs for project phase(s) covered in application (sum of $10,392,000 above) Describe your financial commitment to the project and the source(s) of match. Indicate whether these matching funds are secured or pending future approvals. Describe the impact, if any, that the timing of additional funds would have on the ability to proceed with the grant. At least three sources of federal funds will match the State REF funding, and it is critical to receive the REF grant to comply with federal grant match requirements . The funding sources are 1. The direct pay incentives offered through the Department of Energy of up to 60% per project, 2. Grant funding from the Office of Indian Energy (grant application due February 2023), and the Rural Utility Service's forgivable loan program. All of these sources will be applied for in the next few months. It cannot be overstated how important the REF funding will be to meet federal match requirements. IPEC also has access to low interest loans through the National Rural Utilities Cooperative Finance Corporation (CFC), but loans reduce the rate benefits to IPEC's ratepayers, and thus, will only be used as bridge funding as necessary. a Attach documentation for proof (see Section 1. 18 of the Request for Applications) b See Section 8. 2 of this application and Section 1. 18 of the RFA for requirements for Energy Efficiency Match. 3.2.2 Cost Overruns Describe the plan to cover potential cost increases or shortfalls in funding . IPEC has the ability to apply for low interest loans through CFC, as it has for the last two hydro projects (Gartina Falls and Gunnuk Creek). 3.2.3 Total Project Costs Indicate the anticipated total cost by phase of the project (including all funding sources). Use actual costs for completed phases. Indicate if the costs were actual or estimated . Reconnaissance-completed A p ril 2011 [Actual/Estimated] $ Feasibility and Conceptual Design -completed [Actual/Estimated] $47,625 December 2019 by HDR with ANTHC grant and IPEC Final Design and Permitting -currently underway [Actual/Estimated} $536,474 and to be com p lete b y March 2023 Construction [Actual/Estimated] $10,392,000 Total Proj ect Costs (sum of above) Estimated $10,976,099 Metering/Tracking Equipment [not included in project Estimated $ cost] I 3.2.4 Funding Subsequent Phases AEA23046 Page 8 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form ALASKA ENERGY AUTHORITY If subsequent phases are required beyond the phases being applied for in this application, describe the anticipated sources of funding and the likelihood of receipt of those funds. • State and/or federal grants • Loans, bonds, or other financing options • Additional incentives (i.e. tax credits) • Additional revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) AEA23046 Page 9 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form 3.2.3 Budget Forms ALASKA ENERGY AUTHORITY Applications MUST include a separate worksheet for each project phase that was identified in Section 2.3.2 of this application-I. Reconnaissance, II. Feasibility and Conceptual Design, Ill. Final Design and Permitting, and IV. Construction . Please use the tables provided below to detail your proposed project's total budget. Be sure to use one table for each phase of your pro ject. and delete any unnecessary tables. The milestones and tasks should match those listed in 3.1 above. If you have any question regarding how to prepare these tables or if you need assistance preparing the application please feel free to contact AEA 's Grants Coordinator by email at grants@akenergvauthority.org or by phone at (907) 771-3081. Phase 1 -Reconnaissance Source of Matchin g Anticipated Grantee Funds: RE-Fund Cash/In-Milestone or Task Completion Grant Funds Matching kind/Federal TOTALS Date Funds Grants/Other State GranD/Other (List milestones based on phase and type of project. See $ $ $ Sections 2. 3 thru 2. 6 of the RFA ) N/A-this phase complete $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ $ $ Budget Cate gories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Su pplies $ $ $ Contractual Services $ $ $ Construction Services $ $ $ Other $ $ $ TOTALS $ $ $ AEA23046 Page 10 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form Phase 2 -F easlbll!f;}t_ and Conce_ptual Design Source of Matching Anticipated Grantee Funds: RE-Fund Cashnn-Milestone or Task Completion Grant Funds Matching kind/Federal Date Funds Grants/Other State Grants/Other (List milestones based on phase and type of project. $ $ See Sections 2.3 thru 2.6 of the RFA ) $ $ N/A-this phase com plete $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ $ Budg et Categories: Direct Labor & Benefits $ $ Travel & Per Diem $ $ ~q ui !)ment $ $ Materials & Su pp lies $ $ Contractual Services $ $ Construction Services $ $ Other $ $ TOTALS $ $ AEA23046 Page 11 of37 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ ALASKA ENERGY AUTHORITY TOTALS 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form Phas e 3 -Fi nal Design and Pe nn lttln~ Anticipated Grantee RE-Fund Milestone or Task Completion Grant Funds Matching Date Funds (List milestones based on phase and type of project. $ $ See Sections 2.3 thru 2.6 of the RFA ) $ $ N/A-this phase underway and estimated to be complete March 2023. Preliminary drawings, conceptual design $ $ report dated 10/17/2022 , and cost estimate are included with this a pplication. $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ $ Bud get Categories: Direct Labor & Benefits $ $ Travel & Per Diem $ $ Eq ui p ment $ $ Materials & Su pp lies $ $ Contractual Services $ $ Construction Services $ $ Other $ $ TOTALS $ $ AEA23046 Page 12 of37 Source of Matching Funds: CasMn- kind/Federal Grants/Other State Granta/Other $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ ALASKA ENERGY AUTHORITY TOTALS 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form Ph ase 4-Construction Anticipated Grantee RE-Fund Milestone or Task Completion Grant funds Matching Date Funds Land & Land Rights 12/31/2025 $15,323 $29,677 Powerhouse 12/31/2025 $326,885 $633,115 Reservoirs, Dams & 12/31/2025 $1,065,340 $2,062,780 Waterways Turbines and Generators 12/31/2025 $257,081 $497,919 Accessory Electrical 12/31/2025 $119,176 $230,824 Eaui oment Roads and Brid ges 12/31/2021 $68,101 $131,899 Station Equi pment 12/31/2025 $314,967 $610,033 Line Extension 12/31/2021 $88,532 $171,468 Communications 12/31/2025 $35,553 $69,447 Contingency for Geotech and 12/31/2025 $1,145,417 $2,218,463 inflation Construction Management, 12/31/2021 $102,151 $197,849 Overhead and Permitting $ $ TOTALS $3,538,526 $6,853,474 Buda et Categories: Direct Labor & Benefits $86 050 $163,950 Travel & Per Diem $17,075 $32,925 Eauioment $434,600 $840,400 Materials & Supp lies $36 ,100 $68,900 Contractual Services $256,623 $498,377 Construction Services $1 ,562,661 $3,030,459 Other $1 ,145,417 $2,218,463 TOTALS $3,538,526 $6,853,474 AEA23046 Page 13 of37 Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other ALASKA ENERGY AUTHORITY TOTALS $45,000 $960,000 $3,128,120 $755,000 $350,000 $200,000 $925,000 $260,000 $105,000 $3,363,880 $300,000 $ $10,392,180 $250,000 $50,000 $1 ,275 ,000 $105,000 $755,000 $4,593 ,120 $3,363,880 $10,392,000 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form 3.2.4 Cost Justification ALASKA ENERGY AUTHORITY Indicate the source(s) of the cost estimates used for the project budget, including costs for future phases not included in this application. Cost estimates were provided by HDR-Aiaska and IPEC staff (see detailed cost estimate on final page of the final two pages of the CDR dated 1 0/17/2022). It cannot be overstated how critical REF funding is for the WSCH project. There are several upcoming federal grant programs through the Inflation Reduction Act, some of which require cost share/match. For example, the Office of Indian Energy has a grant due February 9, 2023 which requires a 20% cost share. I 3.3 Project Communications 3.3.1 Project Progress Reporting Describe how you plan to monitor the progress of the project and keep AEA informed of the status. Who will be responsible for tracking the progress? What tools and methods will be used to track progress? IPEC has over 17 years of experience in project progress reporting. IPEC's operations manager has a form he completes with each site visit during construction. These reports are routinely shared with the Alaska Energy Authority, and include pictures as well as next steps, and foreseen issues to be resolved, etc. I 3.3.2 Financial Reporting Describe the controls that will be utilized to ensure that only costs that are reasonable, ordinary and necessary will be allocated to this project. Also discuss the controls in place that will ensure that no expenses for overhead, or any other unallowable costs will be requested for reimbursement from the REF Grant Program. The only costs IPEC will seek grant reimbursement for will be direct costs of construction. IPEC will pay for its own labor, legal and travel costs to assist in the construction process. IPEC's accounting team is very experienced in grant administration . AEA23046 Page 14 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form I SECTION 4-QUALIFICATIONS AND EXPERIENCE 4.1 Project Team ALASKA ENERGY AUTHORITY Include resumes for known key personnel and contractors, including all functions below, as an attachment to your application. In the electronic submittal, please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application. 4.1.1 Project Manager Indicate who will be managing the project for the Grantee and include contact information. If the applicant does not have a project manager indicate how you intend to solicit project management support. If the applicant expects project management assistance from AEA or another government entity, state that in this section. Brandon Shaw, IPEC's operations manager, will be the project manager for the project. Brandon is very experienced. He oversaw both the Gartina Falls Hydro (along with HDR, completed August 2015), and the Gunnuk Creek Hydro construction (completed October 2020). Brandon's contact information is included in section 1.1.2 4.1.2 Project Accountant Indicate who will be performing the accounting of this project for the grantee. If the applicant does not have a project accountant indicate how you intend to solicit financial accounting support. Roxanne Drake-Burkhart, IPEC's controller, will perform the grant accounting for the project. Roxanne has decades of experience, and performed grant accounting for both the Gartina Falls and Gunnuk Creek hydro projects. Jodi Mitchell, IPEC's chief executive officer/general manager, will oversee grant accounting and supervision of the operations manager. I 4.1.3 Expertise and Resources Describe the project team including the applicant, partners, and contractors. For each member of the project team, indicate: • the milestones/tasks in 3.1 they will be responsible for; • the knowledge, skills, and experience that will be used to successfully deliver the tasks; • how time and other resource conflicts will be managed to successfully complete the task. If contractors have not been selected to complete the work, provide reviewers with sufficient detail to understand the applicant's capacity to successfully select contractors and manage complex contracts. See resumes included with this application. Construction contractors have not been selected pending grant construction funding. However, IPEC has experience in hiring hydro project construction contractors as we did so for both the Gartina Falls and Gunnuk Creek hydro projects. IPEC will ask for bids, and will work with HDR to select experienced and reputable contractors to complete the project. 4.2 Local Workforce Describe how the project will use local labor or train a local labor workforce. AEA23046 Page 15 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form ALASKA ENERGY AUTHORITY IPEC will hire the local labor force as needed. IPEC hired several locals during construction of both the Gartina Falls and Gunnuk Creek hydro projects. IPEC will require contractors to hire local employees to the extent possible. AEA23046 Page 16 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form I SECTION 5-TECHNICAL FEASIBILITY I 5.1 .. Resource Availability 5.1.1 Assessment of Proposed Energy Resource ALASKA ENERGY AUTHORITY Describe the potential extent/amount of the energy resource that is available, including average resource availability on an annual basis. For pre-construction applications, describe the resource to the extent known. For design and permitting or construction projects , please provide feasibility documents, design documents, and permitting documents (if applicable) as attachments to this application (See Section 11 ). Likelihood of the resource being available over the life of the project. See the "Resource Assessment" section of the appropriate Best Practice Checklist for additional guidance. The feasibility conceptual design report produced by HDR-Aiaska in included with this application as an appendix. IPEC has a signed letter of intent to lease the land from Sealaska Corporation, the landowner, for the life of the project including potential for extensions. 5.1.2 Alternatives to Proposed Energy Resource Describe the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. IPEC has looked into alternatives to diesel and hydro. Studies have been prepared for alternatives including wind power, and geothermal energy from the head of Tenakee Inlet. However, these alternatives were proven infeasible or too expensive in comparison to WSCH. The wind is not strong or steady enough according to the wind map, and the geothermal project is financially infeasible due to the high cost (study completed 2011 ). The only other feasible alternative is to continue producing power from diesel-electric generation, which is expensive and polluting. 5.1.3 Permits Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues. See the "Environmental and Permitting Risks" section of the appropriate Best Practice Checklist for additional guidance. • List of applicable permits • Anticipated permitting timeline • Identify and describe potential barriers including potential permit timing issues, public opposition that may result in difficulty obtaining permits, and other permitting barriers FERC has determined the project is not under their jurisdiction ADF&G Title 16 Permit is underway. Estimated completion date mid-2023 Water Rights Permit submitted, but probably won't be issued until project completion Army Corp 404 permit -submitted SWPPP permits to be filed by contractor before construction begins 5.2 Project Site Describe the availability of the site and its suitability for the proposed energy system. Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend to approach land ownership and access issues. See the "Site control" section of the appropriate Best Practice Checklist for additional guidance . IPEC has a signed letter of intent to lease the land from Sea Iaska Corporation, the landowner, for the life of the project including potential for extensions (copy included with this application). AEA23046 Page 17 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form I 5.3 Project Technical & Environmental Risk 5.3.1 Technical Risk Describe potential technical risks and how you would address them. • Which tasks are expected to be most challenging? • How will the project team reduce the risk of these tasks? • What internal controls will be put in place to limit and deal with technical risks? ALASKA ENERGY AUTHORITY See the "Common Planning Risks" section of the appropriate Best Practice Checklist for additional guidance. As noted in the HDR Feasibility study of the WSCH, the only risks identified center around fisheries issues (see page 7 of the December 2019 study), and permitting issues. The final design, currently underway and nearly complete, will help de-risk the project. No problems with permitting are anticipated. 5.3.2 Environmental Risk Explain whether the following environmental and land use issues apply, and if so which project team members will be involved and how the issues will be addressed. See the "Environmental and Permitting Risks" section of the appropriate Best Practice Checklist for additional guidance. • Threatened or endangered species • Habitat issues • Wetlands and other protected areas • Archaeological and historical resources • Land development constraints • Telecommunications interference • Aviation considerations • Visual, aesthetics impacts • Identify and describe other potential barriers The only environmental issue to be addressed is fish habitat, which is typical of small run of river hydro projects. There are known to be small resident Dolly Varden fish in Water Supply Creek. HDR is very familiar with designing hydro projects that maintain an adequate bypass reach to protect resident fish. The final design, underway, is addressing fish habitat. 5.4 Technical Feasibility of Proposed Energy System In this section you will describe and give details of the existing and proposed systems. The information for existing system will be used as the baseline the proposal is compared to and also used to make sure that proposed system can be integrated. Only complete sections applicable to your proposal. If your proposal only generates electricity, you can remove the sections for thermal (heat) generation. 5.4.1 Basic Operation of Existing Energy System Describe the basic operation of the existing energy system including: description of control system; spinning reserve needs and variability in generation (any high loads brought on quickly); and current voltage, frequency, and outage issues across system. See the "Understanding the Existing System" section of the appropriate Best Practice Checklist for additional guidance. IPEC is the certificated electric provider for Hoonah. IPEC owns, operates and maintains the Hoonah generation and distribution system. Hoonah is a growing community of approximately 800 people. AEA23046 Page 18 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form ALASKA ENERGY AUTHORITY A mixture of hydro and diesel generation provide 100% of Hoonah's electric requirements. IPEC's system is designed for the diesels to supplement the hydro output. When hydro output is low or decreasing, the controls start up another diesel engine. IPEC has spinning reserves, but the percentage varies depending on the amount of hydro output. For example, if the load is 600 kW and the hydro is carrying 425 kW, so that leaves 175 kW for the diesels to provide. The smallest engine is 455 kW, so in that case we could have about 60% spinning reserve. When the hydro is not producing much power, this changes . IPEC can easily mix and match engines to meet the electric demand. Outages are rare and well within acceptable limits. Please see Form 12 worksheets for Hoonah for more detailed generation information (included with this application). 5.4.2 Existing Energy Generation Infrastructure and Production In the following tables, only fill in areas below applicable to your project. You can remove extra tables. If you have the data below in other formats, you can attach them to the application (see Section 11 ). 5.4.2.1 Existing Power Generation Units Include for each unit include: resource/fuel, make/model, design capacity (kW), minimum operational load (kW), RPM, electronic/mechanical fuel injection, make/model of genset controllers, hours on genset Unit 1: Caterp illar 3512 DITA, diesel, 1000 kW, installed July 1997 Unit 2: Caterp illar 3512C DITA, diesel, 1000 kW, installed Februa ry_2012 Unit 3: Caterpillar 3456 DITA, diesel, 455 kW, installed July 2012 Unit 4: Caterpillar 3456 DITA, diesel, 455 kW, installed July 2012 Unit 5: Gartina Falls run of river hydro, 475 kW, installed August 2015 Unit 6: Is there operational heat recovery? (Y/N) If yes estimated annual displaced heating fuel (gallons) 5.4.2.2 Existing Distribution System Yes. Uncertain. Hoonah Indian Association is working on installing a biomass heat loop to help reduce effects of less heat recovery from diesel dis placement, if an y. Describe the basic elements of the distribution system . Include the capacity of the step-up transformer at the powerhouse, the distribution voltage(s) across the community, any transmission voltages, and other elements that will be affected by the proposed project. IPEC's Hoonah distribution system is made up of two powerhouses. IPEC's diesel plant contains four diesel generators (two 455 kW generators and two 1 MW generators). IPEC's Gartina Falls Hydro plant is powered by a Canyon Hydro crossflow turbine with a generator rated at 475 kW. From the diesel plant, there are two feeders delivering power to the community of Hoonah -Feeder 1 and Feeder 2. The feeders are energized by two 750 kVA 4160 Volt to 12,470 volt step-up transformers. IPEC's distribution system operates at 12,470/7,200 volts. IPEC's Gartina Falls hydro project is connected to Feeder 1 with a 500 kVA 480 volt to 12,470 step- up transformer. IPEC's distribution system operates at 12,470/7200 volts. IPEC doesn't have any AEA23046 Page 19 of37 10/04/2022 I I I Renewable Energy Fund Round 15 Grant Application -Standard Form ALASKA ENERGY AUTHORITY transmission lines due to the compact size of our system. All the power is transmitted at distribution voltage levels. Since the Water Supply Creek Hydro project is only about 2/3 mile from IPEC's existing distribution system, it will be a short distribution line extension to connect to IPEC's electric grid. 5.4.2.3 Existing Thermal Generation Units (if app licable to } our project• Generation Resource/ Design Make Model Average Year Hours unit Fuel type capacity annual Installed (MMBtu/hr) efficiency Hoonah #1 Diesel 1000 kW Caterpillar 3512 14.67 July Will DITA kWh/gal 1997 provide -Hoonah #2 Diesel 1000 kW Caterpillar 3512C 14.67 Feb Will DITA kWh/gal 2012 provide Hoonah #3 Diesel 455kW Caterpillar 3456 14.67 July Will DITA kWh/gal 2012 provide Hoonah#4 Diesel 455kW Caterpillar 3456 14.67 July Will DITA kWh/gal 2012 provide -- 5.4.2.4 O&M and replacement costs for Power Generation Thermal Generation existing units i. Annual O&M cost for labor $129,831 ii. Annual O&M cost for non-labor $869,301 iii. Replacement schedule and cost for existing units 5.4.2.5 Annual Electricity Production and Fuel Consumption (Existing System) Use most recent year. Replace the section (Type 1), (Type 2), and (Type 3) with generation sources Month Generati Generatio Gene ratio Fuel Fuel Pea Minimu 2021 on n (Type 2) n (Type 3) Consumptio Consumptio k m Load (kWh) (kWh) (kWh) n n Loa Gartina Diesel (Diesel-[Other] d Falls Gallons) Hydro January 145980 284156 18883 633 February 66841 583 375294 25001 March 33241 386611 25855 645 April 32231 402230 26572 610 May 249257 117348 8626 625 June 280597 111455 8105 594 July 163525 199929 13955 606 Aug ust 65299 367002 24621 596 Septembe 100435 325910 22379 608 r 1- October 153461 274283 18545 634 November 121807 306500 21036 740 AEA23046 Page 20 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form December 75584 361876 Total 1488258 3512594 25669 239247 5.4.2.6 Annual Heating Fuel Consumption (Existing System) ALASKA ENERGY AUTHORITY 749 Use most recent year. Include only if your project affects the recovered heat off the diesel genset or will include electric heat loads. Only include heat loads affected by the project. See notes regarding existing waste heat system. It may be affected, but the Hoonah Indian Association is pursuing development of a biomass heat loop that could take over IPEC's waste heat system. Month Diesel Electricity Propane Coal Wood Other (Gallons) (Gallons) (Tons) (Cords, green tons, dry tons} January February March April May June July August September October November December Total 5.4.3 Future Trends Describe the anticipated energy demand in the community, or whatever will be affected by the project, over the life of the project. Explain how the forecast was developed and provide year by year forecasts. As appropriate, include expected changes to energy demand, peak load, seasonal variations, etc. that will affect the project. Hoonah is a growing community, with increased electric demand during the summer tourism season . Huna Totem Corporation, the owner/operator of the Icy Strait Point tourism destination and ANCSA village corporation for Hoonah, recently added two gondola rides to its tourism assets, as well as a large new cruise ship dock. The community population swells to 1200 people or more during the tourism season to fill jobs at the Icy Strait Point tourism destination. During the tourism season, electric demand grows to over 1 MW, but during the off-season it settles around 600 kW. Please note the demand numbers above were measured in 2021, when the tourism industry was struggling with the Covid-19 pandemic. In 2022, Hoonah's tour season began mid-April and didn't stop until October 19, 2022. Housing is an issue the community of Hoonah is dealing with. As new housing units are constructed there will be an uptick in electric requirements . The Water Supply Creek hydro project is needed to reduce diesel fuel consumption and rates to Hoonah's businesses to help them be more sustainable into the future. Recent fuel prices have been AEA23046 Page 21 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form ALASKA ENERGY AUTHORITY as high as $6 per gallon in Kake. In 2021, IPEC's average fuel price was $2.77 per gallon. Even today, IPEC is paying close to $5 per gallon, nearly double the price in 2021. IPEC's other communities, Angoon, Kake, Klukwan, and the Chilkat Valley, stand to benefit also from reduced diesel-consumption. IPEC operates under a "postage-stamp" rate, whereby all communities pay the same rates. Therefore, any cost reductions benefit all the communities. IPEC doesn't have a load forecast, but in general our sales have increased a small amount due to growth in Hoonah, and due to heat pump usage throughout our communities. In general, IPEC's demand peaks during the winter months of November through February, but in Hoonah there is larger demand during the cruise ship season from mid-April through mid-October. 5.4.4 Proposed System Design Provide the following information for the proposed renewable energy system: • A description of renewable energy technology specific to project location • The total proposed capacity and a description of how the capacity was determined • Integration plan , including upgrades needed to existing system(s) to integrate renewable energy system : Include a description of the controls, storage, secondary loads, distribution upgrades that will be included in the project • Civil infrastructure that will be completed as part of the project-buildings, roads, etc. • Include what backup and/or supplemental system will be in place See the "Proposed System Design" section of the appropriate Best Practice Checklist for additional guidance. Please see the Conceptual Design Report prepared by HDR-Aiaska included with this application for details. 5.4.4.1 Pro posed Power Generation Units Unit# Resource/ Design Make Model Expected Expected Expected Fuel type capacity capacity life Availability (kW ) factor (years ) 6 Hydro 350 kW Pelton 2-jet .46 50 Some horizontal production axis 335 Da ysNear - AEA 23046 Page 22 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form Generation Resource/ Design Make unit Fuel type capacity (MMBtu/hr) 5.4.5 Basic Operation of Proposed Energy System Model Expected Average annual efficiency ALASKA ENERGY AUTHORITY Expected life • To the best extent possible, describe how the proposed energy system will operate: When will the system operate, how will the system integrate with the existing system, how will the control systems be used, etc. • When and how will the backup system(s) be expected to be used See the "Proposed System Design" section of the appropriate Best Practice Checklist for additional guidance. Please see Conceptual Design Report dated October 17, 2022. Also, please see Water Supply Creek business plan March 2022. Both of these documents are included with this application. The Water Supply Creek Hydro system will operate in a run of river basis. IPEC's existing controls are designed to accommodate hydro power and supplement with diesel generation as needed. Controls will be in place to fine-tune this practice for hydropower maximization from the WSCH and Gartina Falls. The final design includes details of what is necessary to accommodate the additional hydropower. Much of the infrastructure is already in place. 15.4.3.1 Expected Capacity Factor 46% I 5.4.5.2 Annual Electrici t~ Production and Fuel Consumption (Proposed Sy stem) Month Generation Generation Generation Fuel Fuel Secondary Storage Water (Type 2) {Type 3) Consumption Consumption load (kWh) Supply (kWh) (kWh) (Diesel-(Other] (kWh) Creek Gallons) Hydro kWh January 90,000 February 75,000 March 90,000 A p ril 140,000 -I"- May 200,000 AEA23046 Page 23 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form June 140,000 July 62,000 Au gust 61,000 September 140,000 October 175,000 November 125,000 December 110,000 Total 1,408,000 5.4.5.3 Annual Heatin g Fuel Consumption (Proposed System Month Diesel Electricity Propane Coal (Gallons) (Gallons) (Tons) January February March April May June Jul y Au_g ust September October November December Total Wood (Cords, green tons, d ry tons ) 5.4.6 Proposed System Operating and Maintenance (O&M) Costs ALASKA ENERGY AUTHORITY Other O&M costs can be estimated in two ways for the standard application. Most proposed renewable energy projects will fall under Option 1 because the new resource will not allow for diesel generation to be turned off. Some projects may allow for diesel generation to be turned off for periods of time; these projects should choose Option 2 for estimating O&M. Option 1: Diesel generation ON For projects that do not result in shutting_ down $ diesel g eneration there is assumed to be no There will be times with diesels-off when the impact on the base case O&M. Please indicate WSCH is online, along with the neighboring the estimated annual O&M cost associated with project, Gartina Falls Hydro. IPEC's experience the proposed renewable project. with hydro operations indicates there is little cost im pact. O ption 2: Diesel generation OFF For projects that will result in shuttin g_ down diesel g eneration please estimate: 1. Annual non-fuel savings of shutting off 1. $150,000 diesel generation 2. Estimated hours that diesel generation 2. Hours diesel OFF/year: see CDR Report will be off per year. dated October 17, 2022 AEA23046 Page 24 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form 3. Annual O&M costs associated with the proposed renewable project. 5.4.7 Fuel Costs 3. $10,000 ALASKA ENERGY AUTHORITY Estimate annual cost for all applicable fuel(s) needed to run the proposed system (Year 1 of operation)-no new fuel costs are expected with the WSCH project Diesel Electricity Propane Coal Wood Other (Gallons) (Gallons) (Tons) Unit cost ($) Annual Units Total Annual cost ($) 5.5 Performance and O&M Reporting For construction projects only 5.5.1 Metering Equipment Please provide a short narrative, and cost estimate, identifying the metering equipment that will be used to comply with the operations reporting requirement identified in Section 3.15 of the Request for Applications. IPEC has existing SCADA and other metering, which has been recently upgraded. IPEC is very capable of operating and maintaining, and reporting data required for grant and State of Alaska emissions compliance. IPEC already provides regular reports on the Gartina Falls Hydro project, as well as the Gunnuk Creek Hydro Project for Kake. Since metering equipment has been recently upgraded, costs to comply with operations reporting requirements will be minimal. In general, IPEC's existing labor force will provide data collection and will not require additional personnel. 5.5.2 O&M reporting Please provide a short narrative about the methods that will be used to gather and store reliable operations and maintenance data, including costs, to comply with the operations reporting requirement identified in Section 3.15 of the Request for Applications Please see 5.5.1 above . If further information is required please let us know. l SECTION 6-ECONOMIC FEASIBILITY AND BENEFITS I 6.1 Economic Feasibility I 6.1.1 Economic Benefit Annual Lifetime Anticipated Diesel Fuel Displaced for Power 84,000 4,200,000 Generation (g allons ) Anticipated Fuel Displaced for Heat (g allons ) Total Fuel disp laced (g allons ) 84,000 4,200,000 AEA23046 Page 25 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form Anticipated Diesel Fuel Displaced for Power $372,960 Generation ($) most recent fuel price is $4.45/gallon, but we paid $6/gallon in June. Avera ge fuel p rice 2022=$4.44/gallon Anticipated Fuel Displaced for Heat ($) Anticipated Power Generation O&M Cost $100,000 Savin gs (overhaul savin gs estimate ) Anticipated Thermal Generation O&M Cost Savin gs Total Other costs savings (taxes, insurance, etc.) Total Fuel, O&M, and Other Cost Savings $472,960 6.1.2 Economic Benefit ALASKA ENERGY AUTHORITY $18,648,000 $5,000,000 $23,648,000 assuming fuel price remains at $4.44 per gallon over the lifetime of the pro j ect Explain the economic benefits of your project. Include direct cost savings and other economic benefits, and how the people of Alaska will benefit from the project. Note that additional revenue sources (such as tax credits or green tags) to pay for operations and/or financing, will not be included as economic benefits of the project. Where appropriate, describe the anticipated energy cost in the community, or whatever will be affected by the project, over the life of the project. Explain how the forecast was developed and provide year-by-year forecasts The economic model used by AEA is available at https://www.akenergyauthori ty.org/What-We- Do/Grants-Loans/Renewable-Energy-Fund/2022-REF-App lication . This economic model may be used by applicants but is not required. The final benefit/cost ratio used will be derived from the AEA model to ensure a level playing field for all applicants. If used, please submit the model with the application. The Water Supply Creek Hydro project is in final design, with final reports due by March 2023. However, a Conceptual Design Report is included with this application which indicates very significant benefits to Hoonah, and IPEC's other communities by reducing and stabilizing rates due to reduced diesel dependence. Diesel prices are at an all-time high. IPEC paid $6 per gallon for diesel in June at both Hoonah and Kake, which is more than double the $2.77 per gallon paid for diesel in in 2021. High fuel prices make hydro projects more and more beneficial, by reducing and stabilizing the cost of electricity. The WSCH will bring Hoonah's electric generation to 50 -60% renewable, an increment of about 25%, depending on the amount of annual rain. Since Hoonah's electric requirements have increased over the past several years, this is a moving target. IPEC has looked at other options for renewable electric generation, but run of river hydro is the best option. During construction IPEC will hire local laborers to help construct the project, thereby providing jobs for locals . Once the project is online it will reduce diesel consumption by about 84,000 gallons per year depending on the amount of annual rainfall. IPEC plans to seek REF and federal grant funding to AEA23046 Page 26 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form ALASKA ENERGY AUTHORITY build the project. The project will reduce C02 emissions, electric rates to I PEG's members, and will reduce the Power Cost Equalization (PCE) subsidy paid by the State of Alaska, thereby saving the State money. Although PCE savings to the State don't reduce rates to PCE-eligible ratepayers, rates to businesses, the economic drivers of the community, will benefit from reduced and stabilized electric rates. Hoonah is growing its tourism industry, and lower rates will help the local businesses to be more profitable and sustainable. lower and stable rates will encourage economic growth in Hoonah, and I PEG's other communities. 6.1.3 Economic Risks Discuss potential issues that could make the project uneconomic to operate and how the project team will address the issues. Factors may include: • low prices for diesel and/or heating oil • Other projects developed in community • Reductions in expected energy demand: Is there a risk of an insufficient market for energy produced over the life of the project. • Deferred and/or inadequate facility maintenance • Other factors IPEC has experienced diesel fuel costs as high as $6 per gallon in 2022. In 2021, I PEG's average diesel fuel price was $2.77 per gallon. Even if fuel prices were at the 2021 average, the WSCH project would provide rate benefits to I PEG's member-consumers. There are no other community-wide energy projects scheduled for development at this time. The Hoonah Indian Association is working on a biomass heat loop, but it will not provide lower cost electricity. Hoonah's population has been stable to growing, then ballooning during the summer tourist season . Even if demand dropped significantly IPEC expects it would still have to supplement hydro with diesel even after WSCH is constructed and put online. Hoonah's population has been steady to growing for at least the past two decades. IPEC is well-equipped with several decades of successful operations and maintenance experience with its generation and distribution systems. This will not change. No other factors are anticipated to provide significant economic risks to IPEC or the WSCH project. AEA23046 Page 27 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form 6.1.4 Public Benefit for Projects with Direct Private Sector Sales ALASKA ENERGY AUTHORITY For projects that include direct sales of power to private sector businesses (sawmills, cruise ships, mines, etc.), please provide a brief description of the direct and indirect public benefits derived from the project as well as the private sector benefits and complete the table below. See Section 1.6 in the Request for Applications for more information. N/A. The WSCH will provide benefits to the entire community of Hoonah, as well as to IPEC's other service areas by reduced fuel and diesel maintenance costs and cleaner air. Renewable energy_ resource availability (kWh per month) Estimated direct sales to private sector businesses (kWh ) Revenue for dis p lacin g diesel generation for use at p rivate sector businesses ($) Estimated sales for use by the Alaskan public (kWh ) Revenue for dis p lacin g diesel generation for use by the Alaskan p ublic ($) 6.2 Other Public Benefit Describe the non-economic public benefits to Alaskans over the lifetime of the project. For the purpose of evaluating this criterion, public benefits are those benefits that would be considered unique to a given project and not generic to any renewable resource. For example, decreased greenhouse gas emission, stable pricing of fuel source, won't be considered under this category. Some examples of other public benefits include: • The project will result in developing infrastructure (roads, trails, pipes, power lines, etc.) that can be used for other purposes • The project will result in a direct long-term increase in jobs (operating, supplying fuel, etc.) • The project will solve other problems for the community (waste disposal, food security, etc.) • The project will generate useful information that could be used by the public in other parts of the state • The project will promote or sustain long-term commercial economic development for the community Hoonah is in the process of building a new water treatment plant to accommodate the growing tourism/visitor industry. The WSCH project will help by providing lower electric rates for the new plant, as well as additional housing and other infrastructure in the community. AEA23046 Page 28 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form SECTION 7-SUSTAINABILITY ALASKA ENERGY AUTHORITY Describe your plan for operating the completed project so that it will be sustainable throughout its economic life. At a minimum for construction projects, a business and operations plan should be attached and the applicant should describe how it will be im ple mented. See Section 11. 7 .1.1 Operation and Maintenance Demonstrate the capacity to provide for the long-term operation and maintenance of the proposed project for its expected life • Provide examples of success with similar or related long-term operations • Describe the key personnel that will be available for operating and maintaining the infrastructure. • Describe the training plan for existing and future employees to become proficient at operating and maintaining the proposed system. • Describe the systems that will be used to track necessary supplies • Describe the system will be used to ensure that scheduled maintenance is performed IPEC has been generating and providing electricity to its communities since 1977. IPEC has decades of demonstrated experience in operating and maintaining its generation and distribution systems, including its three hydro plants, over the four separate micro-grids it serves (Angoon, Hoonah, Kake, and the Klukwan/Chilkat Valley). Key personnel are Jodi Mitchell, IPEC's chief executive officer/general manager, employed by IPEC since 1993; Brandon Shaw, IPEC's operations manager employed by IPEC since 2012; Marcus Moulton, IPEC's generation supervisor/mechanic, employed by IPEC since 2015; and Roxanne Drake-Burkhart, IPEC's controller, employed by IPEC since 1995. We have a very talented team who go above and beyond every day to make IPEC a successful entity. IPEC regularly provides training to its employees to be sure they are successful, competent, and confident with their duties. IPEC regularly orders and obtains necessary supplies for oil changes, overhauls, distribution supplies including transformers and meters, and other supplies necessary to provide stable, reliable electric service at the lowest responsible cost. Furthermore, IPEC maintains impeccable records on its generation units to be sure maintenance is conducted at manufacturer- recommended hourly intervals. Several of IPEC's diesel units have operated many years beyond their estimated useful life due to IPEC's careful maintenance programs. 7.1.2 Financial Sustainability • Describe the process used (or propose to use) to account for operational and capital costs. • Describe how rates are determined (or will be determined). What process is required to set rates? • Describe how you ensure that revenue is collected. • If you will not be selling energy, explain how you will ensure that the completed project will be financially sustainable for its useful life. IPEC has accounting systems in place to collect costs and data. IPEC undergoes annual financial and state single audits regularly, and has never been out of compliance with grant reporting or financial audits. Rates are determined using the RCA's recommended Simplified Rate Filing (SRF) worksheets, although IPEC is no longer regulated by the RCA IPEC uses the SRF model to update rates on a AEA23046 Page 29 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form ALASKA ENERGY AUTHORITY semiannual basis, then presents the results to its member-elected board of directors for approval. Using this procedure, IPEC's rates are adjusted up or down accordingly with SRF results. IPEC's main goal is to maintain adequate margins to satisfy its lenders, while keeping rates as low as we responsibly can. The SRF procedure, as well as IPEC's quarterly Cost of Power (COPA) filings, ensure that IPEC charges enough in rates to cover costs of service, while allowing for rate reductions when costs go down. IPEC also regularly complies with Power Cost Equalization (PCE) regulations and billing, and is known to be well-versed in its procedures. 7 .1.2.1 Revenue Sources Briefly explain what if any effect your project will have on electrical rates in the proposed benefit area over the life of the project. If there is expected to be multiple rates for electricity, such as a separate rate for intermittent heat, explain what the rates will be and how they will be determined Collect sufficient revenue to cover operational and capital costs • What is the expected cost-based rate (as consistent with RFA requirements) • If you expect to have multiple rate classes, such as excess electricity for heat, explain what those rates are expected to be and how those rates account for the costs of delivering the energy (see AEA's white paper on excess electricity for heat). • Annual customer revenue sufficient to cover costs • Additional incentives (i.e. tax credits) • Additional revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) Please see answer to 7.1.2 above. IPEC's rates necessarily follow costs of service to be sure rates cover IPEC's costs with margins adequate to satisfy its lenders (USDA-Rural Utilities Service, and the National Rural Utilities Cooperative Finance Corporation, or NRUCFC). IPEC cannot predict what cost savings will be realized since there are too many variables to give an adequate prediction. However, annual fuel cost savings from the WSCH project will more than justify the costs of the project as long as it is constructed primarily with grant funds. 7 .1.2.2 Power Purchase/Sale The power purchase/sale information should include the following: • Identification of potential power buyer(s}/customer(s} • Potential power purchase/sales price -at a minimum indicate a price range (consistent with the Section 3.16 of the RFA) Identify the potential power buyer(s)/customer(s} and anticipated power purchase/sales price range. Indicate the proposed rate of return from the grant-funded project. Include letters of support or power purchase agreement from identified customers. IPEC will sell power generated from the WSCH project to its already established member- consumer base in its certificated service area at Hoonah. Costs of power generation will depend on how much grant funding is awarded for the project. Additional operation and maintenance costs from the WSCH project are expected to be minimal, resulting in significant cost and rate savings to IPEC's consumer base . Letters of support are provided with this application. AEA23046 Page 30 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form I SECTION 8-PROJECT READINESS 8.1 Project Preparation ALASKA ENERGY AUTHORITY Describe what you have done to prepare for this award and how quickly you intend to proceed with work once your grant is approved. Specifically address your progress towards or readiness to begin, at a minimum, the following: • The phase(s) that must be completed prior to beginning the phase(s) proposed in this application • The phase(s) proposed in this application • Obtaining all necessary permits • Securing land access and use for the project • Procuring all necessary equipment and materials Refer to the RFA and/or the pre-requisite checklists for the required activities and deliverables for each project phase. Please describe below and attach any required documentation. WSCH Reconnaissance Study, completed in 2011 in conjunction with the Gartina Falls hydro study (Gartina Falls hydro completed August 2015). WSCH Feasibility Study including conceptual design report completed December 2019. WSCH Conceptual Design Report completed October 17, 2022 included with this application. IPEC has obtained a letter of intent to lease from Sea Iaska Corporation, the land-owner, which is included with this application. The WSCH final design is underway, expected to be completed March 2023. Project drawings are included with this application. Permits are listed with timelines in section 5.1.3 of this application. As stated earlier, IPEC has decades of experience in obtaining necessary equipment, and hiring contractors to complete the work. We will comply with all requirements for the grant. 8.2 Demand-or Supply-Side Efficiency Upgrades If you have invested in energy efficiency projects that will have a positive impact on the proposed project, and have chosen to not include them in the economic analysis, applicants should provide as much documentation as possible including: 1. Explain how it will improve the success of the RE project 2. Energy efficiency pre and post audit reports, or other appropriate analysis, 3. Invoices for work completed, 4. Photos of the work performed, and/or 5. Any other available verification such as scopes of work, technical drawings, and payroll for work completed internally. IPEC implemented a residential heat-pump/EV rate for its consumers back in July 2021. It has been a great success, with at least 75 of IPEC's members enrolling in the program whereby they pay a lower rate for the 751 51 kWh and above to maximize the PCE subsidy while enjoying a lower rate for residential heat. IPEC buys diesel for a lower price than our consumers through negotiated wholesale contracts. Additional hydropower on IPEC's systems helps all our consumers, since the power is not AEA23046 Page 31 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form ALASKA ENERGY AUTHORITY generated only by diesel. We are excited to be able to provide the heat pump/EV rate to our members to help reduce their heating costs. We don't have any EVs on our system yet, but have had at least one inquiry. Furthermore, the Tlingit-Haida Regional Housing Authority has installed a few EV charging stations at residences, so we hope this idea takes off in the near future. Most of IPEC's communities are very isolated with few roads, so EVs make sense in our communities. The more power we sell the cheaper it is for all our members. SECTION 9-LOCAL SUPPORT AND OPPO SITION Describe local support and opposition, known or anticipated, for the project. lncludelettera. resolutions, or o t her documentation of local support from the community that would benefit from this project. Provide letters of support, memorandum of understandings, cooperative agreem ents between the applicant, the utility, local government and project partners. The documentation of support must be d ated within one year of the RFA date of October 4, 2022. Please note that letters of su pport from legislators will not count toward this criterion. The community of Hoonah is excited to have the WSCH added to their energy generation mix. We are including letters of support from the City of Hoonah, and Huna Totem Corporation Also, we are including letters of support from Southeast Conference, the Alaska Center for Energy and Power, and from the Southeast Alaska Conservation Council (SEACC). All of these entities have partnered and supported IPEC's efforts to develop clean, renewable, affordable energy to IPEC's communities. There is no known opposition to the project. SECTION 10 -COMPLIANCE WITH OTHER A WARDS Identify other grants that may have been previously awarded to the Applicant by A EA for this or any other project. Describe the degree you have been able to meet the requirements of previous grants including project deadlines, reporting, and information req uests. IPEC is 100% compliant with previously awarded grants not only from AEA. but from the USDA High Energy Cost Grant program. Projects funded by grants from AEA include the Gartina Falls Hydro project, the Gunnuk Creek Hydro project, and the Tenakee Inlet geothermal reconnaissance study. IPEC's team was given a letter from AEA telling us we are a low-risk grant reporter after the Gartina Falls project, but we continue to provide detailed compliance and accounting reports, regardless. SECTION 11-LIST OF SUPPORTING DOCUMENTATION FOR PRIOR PHASES In the space below, please provide a list of additional documents attached to support completion of prior phases. Resumes for key individuals to see the project construction through to completion. IPEC's Form 12 worksheet for Hoonah's diesel generation, 2021. Sealaska's letter of intent to lease the Water Supply Creek land to IPEC for hydro construction and generation purposes. AEA23046 Page 32 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form ALASKA ENERGY AUTHORITY IPEC's board resolution 2020-3 authorizing application and administration of grant funds by IPEC's CEO. IPEC will not have another board meeting until January 2023 if an updated board resolution is required. HDR Design Criteria Report, WSCH dated 12/22/2021. HDR Conceptual Design Report and Drawings, dated 10/17/2022. Water Supply Creek business plan. SECTION 12 -LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDE RATION In the space below. please provide a list of additional i{)formation submitted for consideration. Letter of Support from the City of Hoonah, SEACC, ACEP, Huna Totem Corporation, and Southeast Conference. AEA23046 Page 33 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form If SECTION 13-AUTHORIZED SIGNERS FORM Community/Grantee Name: Inside Passage Electric Coop erative ALASKA ENERGY AUTHORITY Regular Election is held: Ma y /June of each year [ Date: December 5, 2022 ] Authorized Grant Signer(s): Printed Name Title Term Signature Jodi Mitchell Chief Executive Contract, '!J(k~ Officer/General Manager hired by IPEC Board Brandon Shaw Operations Manager At will, Out of the office today ongoing but has been a signer in the past. Roxanne Drake-Burkhart Controller Jerry Medina Administrative Officer I authorize the above person(s) to sign Grant Documents: Must be authorized by the hig hest ranking organization/community /municipal official) Printed Name Title Term Signature See IPEC Board Larry Beck, Board 3 year See signed resolution Resolution 2020-3 Chair/President and its staggered Secretary/Treasurer terms Christo pher Hatch j Grantee Contact Information: Mailing Address: P.O. Box 210149 Auke Bay, AK 99821-0149 Phone Number: Jodi Mitchell (907) 723-0364 Brandon Shaw (907) 364-3033 or (907) 723- 8441 Roxanne Drake-Burkhart (907) 364-3022 Fax Number: (907) 790-8517 Email Address: JMitchell @ lnsidePassa geEiectric.orq Federal Tax ID #: AEA23046 Page 34 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form ALASKA ENERGY AUTHORITY I 43-1964262 I Please submit an u p dated form whenever there is a change to the above information. I AEA23046 Page 35 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form SECTION 14-ADDITIONAL DOCUMENTATION AND CERTIFICATION ALASKA ENERGY AUTHORITY SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Contact information and resumes of Applicant's Project Manager, Project Accountant(s), key staff, partners, consultants, and suppliers per application form Section 3.1, 3.4 and 3.6. Applicants are asked to provide resumes submitted with applications in separate electronic documents if the individuals do not want their resumes posted to the project web site. B. Letters or resolutions demonstrating local support per application form Section 9. C. For projects involving heat: Most recent invoice demonstrating the cost of heating fuel for the building(s) impacted by the project. D. Governing Body Resolution or other formal action taken by the applicant's governing body or management per RFA Section 1.4 that: • Commits the organization to provide the matching resources for project at the match amounts indicated in the application. • Authorizes the individual who signs the application has the authority to commit the organization to the obligations under the grant. • Provides as point of contact to represent the applicant for purposes of this application. • Certifies the applicant is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations. E. An electronic version of the entire application on CD or other electronic media, per RFA Section 1. 7. F. CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations and that they can indeed commit the entity to these obligations. Print Name Jodi Mitchell Signature ~~~ Title ~ef Executive Officer/General Manager AEA23046 Page 36 of37 10/04/2022 Renewable Energy Fund Round 15 Grant Application -Standard Form I Date I December 5, 2022 AEA23046 Page 37 of37 ALASKA ENERGY AUTHORITY 10/04/2022 INSIDE PASSAGE ELECTRIC COOPERATIVE Business and Operating Plan for Water Supply Creek Hydro, Hoonah, Alaska March, 2022 Overview Inside Passage Electric Cooperative (IPEC) is a non-profit, member-owned and governed electric utility serving the small, primarily Alaska Native communities of Angoon, Hoonah, Kake, Klukwan, and the Chilkat Valley in the rainforests of rural southeast Alaska. IPEC generates and provides electric power to about 1,400 member-consumers over four separate micro-grids. IPEC is reliant on expensive, polluting diesel fuel for electric generation. IPEC prepared an energy plan in 2009 to reduce and stabilize electric rates to its consumers. The cost of diesel fuel is notoriously volatile, with prices per gallon ranging from $2.02 only two years ago, up to $4.89 per gallon most recently. IPEC obtains fuel through negotiated contracts with fuel suppliers in order to secure the best prices possible . Our fuel prices are based on a margin above Seattle OPIS. We purchase fuel from Petro Marine for Angoon and Kake, and from Hoonah Trading for Hoonah. Klukwan and the Chilkat Valley are 100% hydro from IPEC's existing hydro project at 10 Mile Haines Highway, and from power purchased from Alaska Power & Telephone from its hydro projects near Skagway, Alaska. IPEC's board and management realized early on that it has little control over the amount of electric sales, but that it can reduce and stabilize electric rates through hydroelectric generation. As fuel prices rise, so must IPEC's rates to cover the increased costs of fuel. This has led to volatility in IPEC's electric rates, and is a large deterrent to economic development in our communities. For example, how can the local grocery story price a gallon of milk, not knowing how much it will have to pay for the electricity it needs to refrigerate and store the milk before sale? How can a restaurant price its meals? With the recent huge spikes in fuel prices IPEC and its member-consumers are bracing for another period of high fuel costs and rates, and we've been in this precarious situation many times. Fortunately, we have a long-term solution-hydroelectric energy. IPEC's energy plan identified several potential hydroelectric projects inside its service territory. For Hoonah, we identified the Gartina Falls project, and the Water Supply Creek project. The Gartina Falls hydro project was developed and put online in August 2015. For Angoon, we support and are committed to working with Kootznoowoo, Inc. (the Alaska Native Clail)1s Settlement Act (ANCSA) village corporation for Angoon) to develop the Thayer Creek Hydro project, which is currently in the final engineering design stage. For Kake, IPEC identified the Gunnuk Creek hydroelectric project, and we developed and brought it online late October 2020. The two hydro projects IPEC developed have saved a lot of fuel and costs for IPEC's members. IPEC has enjoyed success in reducing diesel fuel consumption from the two projects it has built so far. The Gartina Falls hydro project has saved over 548,000 gallons of diesel, resulting in fuel savings (based on IPEC's weighted average cost offuel for Hoonah) of nearly $1.3 million since it was brought online in August 2015. The Gunnuk Creek hydro project in Kake has saved about 80,000 gallons of fuel and about $190,000 since it was brought online October 2020. The Gunnuk Creek project is still being maximized, and will produce more in the future once the filter screens are replaced this summer. But most importantly, there are times we are able to turn off the diesels in Kake during times of heavy rain and snow melt. It goes without saying that the savings to members increase with the amount of diesel fuel displaced, and with higher diesel prices. The main point of this business and operating plan is the Water Supply Creek (WSC) hydro project for Hoonah. IPEC proposes to construct a run-of-river project using water supplied from the creek to increase the amount of renewable hydroelectric power for Hoonah. The Gartina Falls project provides about 30% of Hoonah's electric power requirements, and we anticipate the WSC project will provide a similar amount. Most notably, the WSC coupled with the Gartina project will allow for times IPEC can turn off its diesel generators at night, and during times of heavy rain. IPEC plans to incorporate the WSC into its existing generation mix, and provide another increment of up to 30% of Hoonah's energy requirements from a renewable resource. The two projects combined will provide an estimated 60% of Hoonah's current electric requirements, with the remaining 40% provided by diesel generation. The current estimated cost of the project is $6.2 million. Please see attached information for specific estimated costs. The Project As noted in IPEC's grant application for final design of the WSC project, IPEC proposes to construct a 300 kW hydroelectric project at Water Supply Creek (WSC). The project consists of a diversion structure at elevation 760 that will raise the water surface approximately 10 feet. The diversion structure will consist of a concrete core wall with grouted riprap embankments, with a concrete intake structure and sluiceway on the right abutment of the diversion structure. The water flow diverted to the power plant will first enter the sluiceway, and then be drawn through a track rack into a bell mouth pipe entrance. A combination steel and high-density polyethylene (HOPE) penstock will convey water from the intake structure to the powerhouse. The initial 560 feet of penstock will be 18" diameter steel pipe and will be located on a bench cut into the hillside or supported on concrete piers in an alignment roughly parallel to the stream and at a slight down gradient from the intake. At approximately sta. 5+60 the penstock will transition to 20" diameter HOPE pipe and will be buried to the powerhouse. The majority of the HOPE pipeline will be buried next to the existing access road. A powerhouse will be built approximately 24' by 40' and 15' high . A horizontal axis 2-jet Pelton turbine and synchronous generator having a rated capacity of 300 kW will be installed in the powerhouse. A 12.5 kV transmission line approximately 3,400 feet will be installed to transmit the power from the powerhouse to an interconnection point near the Gartina Falls access road . Clearing and refurbishment of the existing timber harvest road and approximately 600 feet of new access road will be constructed to connect to the intake structure. Approximately 130 feet of new access road will be constructed to connect to the powerhouse. Project layout drawings and detailed project information has been provided previously. Estimated Costs of Construction and Sources of Funds Please see construction cost estimates provided with this business and operating plan. IPEC and HDR estimate the cost of construction to be approximately $6.1 million. IPEC plans to apply for additional grants from the Alaska Energy Authority, the Denali Commission, the Department of Energy Office of Indian Energy, and the United States Department of Agriculture High Energy Cost Grant program. There may be additional sources of grant funds available under the federal Bipartisan Infrastructure Bill, and we are exploring opportunities. Furthermore, IPEC has borrowing capacity to cover cost-overruns if necessary. However, borrowing frustrates efforts to reduce energy costs and rates to IPEC's consumers. We must avoid borrowing to the extent possible. Operation of the WSC Project IPEC will incorporate the WSC project into its existing Hoonah grid, as it has with the Gartina Falls and Gunnuk Creek hydro projects. IPEC operates on a non-profit basis and seeks only to cover the costs of service with a lender-required margin in order to keep electric rates as low as it responsibly can. The WSC, at a capacity of 300 kW, is estimated to provide about 1,325 MWh for the community of Hoonah, at a plant factor of .51, which is very similar to the Gartina Falls project. We estimate the project to be shut down for about 21 days per year due to low water. The output of the WSC will vary seasonally, and from month to month. Between 2016 and 2021, the Gartina Falls project in Hoonah has saved an average of 81,897 gallons of diesel per year, with a range of 49,845 gallons in 2018 (a dry year, where the project was down for a while until replacement parts could be obtained) to 104,026 gallons in 2021 (a wet year). Since it was brought online, the Gartina Falls project has saved $1,298,000 in fuel costs between August 2015 and March 2022. Fuel cost savings are passed on the IPEC's member- consumers through a reduced fuel surcharge, which is updated and blessed by the Regulatory Commission of Alaska (RCA) quarterly for Power Cost Equalization compliance purposes. IPEC charges rates to member-consumers on a "postage-stamp" rate basis, whereby it charges the same rates regardless of the location served. Thus, fuel cost savings through hydroelectric generation benefit all four micro-grids. This allows an "all for one, one for all" operation, whereby each community benefits equally from any and all hydroelectric generation or other efficiency project undertaken by IPEC. We are stronger together, and this allows better optimization of efforts to reduce costs since all stand to benefit. The community of Hoonah has been growing quickly. There is a growing tourism industry, which allows greater employment and economic development opportunities for its citizens. However, IPEC's other communities are more stagnant, and most cannot sustain a restaurant for citizens and visitors. It is IPEC's hope that lower cost and stabilized costs of electric service will incite economic development in all of its micro-grids. Angoon and Kake are working on tourism opportunities, and IPEC hopes to support these efforts through reduced and stabilized electric rates. The more power we sell, the greater IPEC's economies of scale through the spreading of its fixed costs over more kWh sales. IPEC's rates are developed by two factors-fixed costs and variable costs. The variable portion is a mixed cost of fuel and purchased power. Fixed costs are a summation of all other costs in providing service to its members over its four micro-grids including diesel-generator maintenance (overhauls, oil changes, labor, and repair, for example), costs of billing, administration, interest expense, depreciation of plant assets, governance, insurance on plant assets, accounting, audit, and legal expense, and all other costs necessary to provide service to its member consumers. Although IPEC isn't regulated by the RCA, we still use the Simplified Rate Filing (SRF) plan to determine member rates to be sure we charge a reasonable and just amount for electric service, and that we cover all costs of electric service. The cost of fuel and purchased power combined determine the cost of power adjustment (also known as the COPA, or fuel surcharge), and a filing is made every quarter with the RCA to determine and approve the calculation. IPEC purchases approximately 40% of its electric requirements for the Chilkat Valley/Kiukwan micro-grid from the neighboring utility, Alaska Power & Telephone, who currently charges IPEC about $.23/kWh. IPEC calculates the fuel surcharge every quarter based on kWh sales and costs of fuel and purchased power. Since costs and sales vary each quarter, this is a necessary component of IPEC's rates and it follows the regulations and compliance factors for Power Cost Equalization (PCE) subsidies for ratepayers, as required. The fuel surcharge allows IPEC to recover the varying costs of fuel and purchased power through its rates. IPEC's fuel surcharge has varied widely due to changes in diesel fuel prices, ranging from about $.11 in prior years to $.21 most recently. The most recent fuel surcharge was calculated using existing fuel and purchased power costs for the quarter ended 12/31/2021. However, fuel prices have surged upward the first quarter of 2022, with fuel prices as high as $4.89 per gallon in Hoonah. The highest prices before that were about $4.25 per gallon over a decade ago. Unfortunately, we expect the next fuel surcharge calculation to surge upward due to rising fuel prices. This is a scary situation for IPEC's member- consumers, and IPEC thus IPEC is working hard to displace diesel through hydroelectric generation. In 2019, IPEC calculated operation and maintenance expenses for its existing hydro projects at $.065/kWh. This is much lower than the current fuel surcharge of $.21, and the gap will widen once the next COPA is calculated. This is the primary reason why IPEC has been pursuing development of small hydroelectric facilities-water is still free and doesn't vary in price. The more hydro IPEC has on its system, the less variability in its rates. It also must be emphasized that about 50% of sales to IPEC's member-consumers aren't eligible for the PCE subsidy. These are businesses, churches, and schools, the economic drivers of the communities IPEC serves. Higher rates will no doubt depress already depressed economies in IPEC's communities. Economic Analysis and Estimated Rate Impacts It is difficult to pinpoint rate impacts of the WSC hydro on IPEC's system since IPEC's rates vary widely with the cost of diesel fuel. In general, the higher the price of fuel, the greater the rate benefits to IPEC's member-consumers. The assumptions herein assume the project is 100% grant funded. If borrowing is required there are less rate savings due to interest and depreciation expenses that would not otherwise be borne in IPEC's rates. It must be noted that IPEC had to borrow $3 million to cover cost overruns for the Gartina Falls hydro project, and about $2 million for the Gunnuk Creek project. All of the overruns were due to unforeseen circumstances including price increases for steel pipe, additional costs due to short construction seasons, higher contractor prices between estimates and actual construction due to inflation, unanticipated costs of rock and dirt removal, and COVID-19 construction interruptions. IPEC strives to build hydro assets with 100% grant funding, but had to borrow to finish these two projects. Back in 2008 IPEC's fuel surcharge was $.2624 per kWh sold when fuel prices topped out at about $4.25 per gallon. Now that fuel prices are up to $4.89 per gallon most recently, the projected cost and rate savings from the WSC project are growing quickly. For simplicity's sake, if we consider the 2019 estimated $.065/kWh cost of hydro power versus diesel back in 2008, the difference is a whopping $.1974 per kWh. Since this is based on $4.25 per gallon diesel compared to the most recent $4.89 in Hoonah, the differential gap will be even greater. IPEC's Gartina Falls hydro project provides about 30% of Hoonah's electric requirements on average (the community is growing-the percentage was about 33% in 201S). We estimate the WSC project will provide about another 30% of Hoonah's electric requirements, and will allow for periods when diesels can be turned off. Hoonah's 2021 annual electric sales were 4,600,411 kWh, about 30% or 1,380,000 of which were generated by the Gartina Falls hydro project. Doing simple math based on factors known today, the project would've saved IPEC's member-consumers $272,436 in fuel costs in 2022 if it were online in 2008 at a fuel price of $4.2S per gallon (fuel surcharge differential: ($.1974-$.0621) x .3 x 4,600,411 kWh= $272,436). Since current fuel prices for IPEC in Hoonah are $4.89 per gallon, this is a conservative estimate of fuel savings based on factors known today. It must be noted that hydro projects are very long-lived in comparison to other renewable energy technologies. For example, Alaska Electric Light & Power, Juneau's electric provider, has a couple of projects that are greater than 120 years old and still provide power to the community. IPEC builds its hydro projects to last. We believe our projects will have comparable lives with proper maintenance. Most hydro projects are estimated to last at least SO years. Thus, fuel cost savings over at least SO years from the WSC project must be taken into account when estimating the savings to IPEC's member- consumers. Furthermore, IPEC has an excellent plant maintenance record. We maintain our hydro assets very well, and our expertise is growing with additional hydro plant assets on our system. Other Benefits of the WSC Project • Reduced C02 emissions from less diesel-electric consumption. Each gallon of diesel burned results in 22.4 pounds of carbon into our pristine southeast Alaska air. Doing the math using the average fuel savings from the neighboring Gartina Falls project of 81,897 gallons, the annual C02 reduction would be about 1,834,000 pounds. • Opportunities for increased beneficial electrification. IPEC implemented a new heat pump electric rate for its members using heat pumps. However, we must limit the number of them in order to avoid blackouts during the defrost cycle. More renewable energy on IPEC's system should lead to greater heat pump usage. • Less risk of oil spills due to reduced diesel consumption. • IPEC strives to always hire local during construction. Good jobs are hard to find in IPEC's communities, so we usually have several local hiring options. • Reduced diesel consumption will lead to less electric rate volatility for IPEC's members. Diesel fuel prices vary widely from year to year, and decade to decade. Less volatility will be a stabilizing force for local businesses since they will be able to budget their electric expenses with more certainty. • Hydroelectric projects are long lived assets. The recommended useful life of a project is estimated at SO years, which is at least double that of a diesel plant, and maybe five times that of a wind tower. Also, IPEC has a good reputation of taking care of its plant assets, many lasting far longer than the expected useful life. Conclusions Based on our review and analysis presented herein and our experience with other hydroelectric projects similar to WSC, we offer the following conclusions: 1. The project will generate sufficient hydroelectric energy to displace at least 81,897 gallons of diesel fuel per year in Hoonah. At the current diesel price in Hoonah that results in fuel cost savings of about $400,476 per year. This savings will be offset some from incremental costs of hydro project maintenance, but will result in a net cost savings to IPEC's member-consumers. 2. IPEC has years of experience in constructing, operating and maintaining hydroelectric plant. IPEC can easily incorporate the WSC into its generation mix. IPEC will operate the WSC on a not for profit basis, as it does all of its plant assets. 3. IPEC intends to pay for construction of the WSC project entirely with grant funds. IPEC will pursue grant funding from the REF, the USDA HECG, and/or other grant programs. If the project experiences cost overruns, IPEC has the ability to borrow if necessary. 4. As IPEC's costs go down, so does its rates. Cost savings are amplified during times of high diesel prices. Reduced electric rates lead to savings to the State of Alaska through reduced Power Cost Equalization subsidies. 5. Additional renewable energy may lead to increased usage of electric heat pumps by IPEC's member-consumers. IPEC implemented a new heat pump rate to encourage them. 6. In addition to lower electric rates, additional benefits of the project include reduced carbon emissions, reduced fuel spill risk, local hire during construction of the project, and less rate volatility. 7. The WSC, like similar hydroelectric projects in southeast Alaska and in the US, is expected to provide power to Hoonah for generations to come. Hydro projects are very long-lived, lasting at least 50 years but could be for twice that or more with good maintenance. IPEC has a stellar history of maintaining its plant assets to make them last as long as possible. IPEC INSIDE PASSAGE ELECTRIC COOPERATIVE RESOLUTION NO. 2020..:3 INSIDE PASSAGE ELECTRIC COOPERATIVE, INC. September 23, 2020 · ENTITLED: AUTHORIZING THE CEO/GENERAL MANAGER TO APPLY FOR GRANT FUNDING FOR WATER SUPPLY <:;REEK HYDRO FINAl.. DESIGN WHEREAS, Inside Passage Electric Cooperative ("IPEC"), the City of Hoonah, and the Hoonah Indian Association (IDA) support additional hydroelectric power in addition to the existing · Gartina Falls Hydro project to pr.ovide for reduced electric rates, rcdu<;ed carbon emis~ions, and rate stability for IPEC's member-consumers; and WHEREAS, the construction of the Gartina Falls Hydroelectric project in 2015. has re9uced diesel fuel consumption with clean, renewable energy at reduced electric rates for'tPEC's · member-consumers; and WHEREAS, grant funding is limited froin the State's Renewable Energy Fund in favor of lower c.ost projects including project final design; and WHEREAS, IPEC has already co~issioned studies of the Water Supply Creek potential including reconnaiSsance, feasibility and conceptual design, bringing the project to th'e final design stage; and · · WHEREAS, HDR Engineering indicates that potentia~ hydropower is available from Water Supply Creek and can use the same transmission line currently serving the Gartina Falls Hydroe~ectric pr~ject, which was completed and put online in August, 20 15; and · WHEREAS, the conclusions from -the reconnaissance, and the feasibility/conceptual design studies of the Water Supply Creek Hydro project's potential indicate that the project can provide economic and environmental benefits to IPEC's member-consumers by reducing the portion of Hoonah's electric load served by fossil-fuel diesel generation by approximately 30%; and WHEREAS, the State Renewable Energy Fund has grant funding available for hydro project final design, and the next round of grants is due September 28, 2020; and · WHEREAS, HDR-Alaska, the same finn that developed both the reconnaissance and feasibility/conceptual design studies has provided an estimate of costs to prepare the final design of the Water Supply Creek hydro project for ari estimated cost of$461,474, following which the project will be advanced to "shovel-ready," NOW, THEREFORE, BE IT RESOLVED, that the IPEC Board of Directors authorizes the CEO/General Manager to apply for grant'funding in the ainount of$461,474 for the Water Supply Creek Hydro final design with the goal of reducing electric rates and reducing carbon emissions to the environinertt. P.O. Box 210149 Auke Bay, Alaska 99821 (907) 789-3196 Fax (907) 790-8517 Inside Passage Electric Cooperative Resolution 2020-3 Authorization for CEO to Apply for State of Alaska Renewable Energy Grant Funds for Water Supply Creek-Hoonah fmal design September 23,2020 PASSED, APPROVED AND ADOPTED by a vote of _!1_veas, _Q_Nays, and _l_Absent this 23rd day of September, 2020. ~~ Larry B Prestdent/Chair AITEST: ~t/-1;& Christopher Hatch, Secretary/Treasurer VALUES IN ACTION SEAIASKA September 24, 2020 Ms. Jodi Mitchell, Chief Executive Officer Inside Passage Electric Cooperative 12480 Mendenhall Loop Road Juneau, Alaska 99801 jmi tchell @inside passa geelectric.org Re: Letter of Intent -Hoonah Ground Lease for Water Supply Creek Hydroelectric Project Dear Ms. Jodi Mitchell: This Letter of Intent ("LOI") is submitted on behalf of Sealaska Corporation ("Sealaska") to establish a framework by which Sealaska will lease land to the Inside Passage Electric Cooperative ("IPEC") for the Water Supply Creek Hydroelectric Project (the "Project") near Hoonah, Alaska. This LOI is intended to reflect the discussions between Sealaska and IPEC between September 14 -24, 2020, but does not constitute a legally binding agreement. Rather, it is the parties' commitment to work together in good faith to negotiate a proposed ground lease by which all remaining terms and conditions pertaining to a lease of Sealaska's land for the Project shall be resolved. The final terms and conditions of the proposed lease will be set forth in a comprehensive ground lease agreement to be executed by the parties on or before the closing date. The contemplated terms and conditions for the proposed lease are as follows: 1. Sealaska will lease to IPEC and IPEC will lease from Sealaska the land depicted on the attached exhibit A, at and around the area on exhibit A labeled "Water Supply Creek Hydro Project" (the "Premises") to have the legal right to use and access the Premises for the Project infrastructure, transmission, distribution, and roads, and all other uses and accesses that are necessary for the Project. Sealaska provides the attached exhibit B describing the interim conveyance of the Premises to Sealaska under the Alaska Natives Claims Settlement Act. Exhibits A and B are a part of and incorporated into this LOI. 2. Sealaska and IPEC will sign a ground lease agreement providing the comprehensive terms and conditions of this proposed transaction. 3. The term of the ground lease will be for fifty (50) years. 4. The parties agree to negotiate the terms and conditions of compensation and rental rate for the ground lease prior to the Closing Date. 5. IPEC will be responsible for retaining all federal, state and municipal permits and permissions regarding use of the Premises for the Project, and will be responsible for resolving any land ownership disputes between or necessary permits and leases from federal, state and municipal entities, local landowners, adjoining landowners, and other entities. Sea Iaska • One Sealaska Plaza, Su ite 400, Juneau, Alaska 99801-1276 • Tel. 907.586.1512 • Fa x: 907.586.2304 6. Sealaska will confirm that there are no liens or encumbrances on the Premises for purpose of the Project, provide horizontal and vertical control basis and monuments for the Premises, and a complete legal description and plat references for the Premises. 7. Selaska will confirm proof of ownership of Premises by title report, or whatever mechanism is reasonably necessary for IPEC to retain funding for Project. 8. The parties shall use their respective best efforts to complete the documentation of the transaction contemplated herein on or before November 30, 2020, and closing shall be November 30, 2020, and shall be effective as of such date. 9. IPEC will indemnify and hold harmless Sealaska from any and all claims, actions, suits, damages, or other liabilities arising from or relating to any action or inaction occurring at the Premises after the Closing Date. Unless such claims, actions, suits, damages, or other liabilities are created by Sealaska. 10. IPEC will retain all necessary insurances to comply with the terms and conditions of paragraph 9 herein and protect Sealaska from all liabilities and harm arising from or relating to any action or inaction occurring at the Premises after the Closing Date. 11. IPEC at IPEC's sole expense shall comply with all applicable local, state and federal laws a regulations and requirements affecting the Premises, the breach of which might result in any penalty on Sealaska or forfeiture of Sealaska's title to the Premises. IPEC shall likewise observe and comply with the requirements of all policies of public liability, fire and other policies of insurance at any time in force with respect to the Premises. IPEC shall not commit, or allow to be committed, any waste, destruction or nuisance on or to the Premises. 12. IPEC shall permit Sealaska and the agent, representative or employee(s) of Sealaska to enter into and upon the Premises at all reasonable times during usual business hours for the purpose of inspecting the same, or for the purpose of posting notices of nonresponsibility for alterations, additions, or repairs, without any rebate of rent and without any liability to IPEC for any loss of occupation or quiet enjoyment of the Premises thereby occasioned. 13. IPEC may not encumber the Premises without the written consent and approval of the Sealaska Chief Executive Officer. 14. IPEC shall pay and discharge as they become due, promptly and before delinquency, all taxes, assessments and municipal liens which may be levied, assessed, charged or imposed or which may become a lien or charge on or against the Premises referred to in exhibit A and any building or buildings or any other improvements now or hereafter thereon, or on or against IPEC's estate hereby created which may be a subject of taxation, during the entire term of the lease contemplated hereby. Letter of Intent Page 2 of 3 15. IPEC, upon Sealaska's written approval of plans or specifications, shall have the right to make such alterations, improvements, and changes to the Premises or any improvements, building or utilities which may from time to time be on the Premises as IPEC may deem necessary. The parties will negotiate terms and conditions regarding IPEC's responsibilities regarding repair, replacement and maintenance of improvements, removal of dangerous conditions, and condition and ownership of improvements at the end of lease. 16. These terms of this LOI are available only to IPEC. 17. Sealaska hereby covenants and agrees that Sealaska shall not market or engage in discussions regarding the sale or lease of the Premises with any parties other than IPEC until December 31, 2020, following the execution of this LOI. 18. Each party agrees to bear its own costs associated with the transaction contemplated hereby. 19. This LOI , the ground lease, and any other transaction documentation shall be governed by the laws of the state of Alaska, without regard for principles of conflict oflaws. Each party irrevocably consents to and submits itself exclusively to the jurisdiction of the courts in the First Judicial District of Alaska at juneau for the purpose of any suit, action or other judicial proceeding arising out of or connected with the performance of this LOI and the transaction documentation. 20. The obligations of IPEC and Sealaska to consummate the transaction contemplated by this LOI is subject to a mutually agreeable ground lease agreement being finalized and executed on or before November 30, 2020. Sealaska shall be responsible for drafting the initial draft of the ground lease agreement. 21. This LOI supersedes all previous proposals and offers and is valid for acceptance until the close of business on September 28, 2020. Sealaska will prepare a proposed draft of the ground lease agreement by October 9, 2020, consistent with what we have described in this LOI, for your consideration and review, with the intent that it will be completed and executed by the end of November. If these terms are agreeable to IPEC, please indicate your approval by signing in the space below, and we will proceed as stated above. Sincerely, Sealaska Corporation ~~ Anthony Mall ott, Chief Executive Officer Approved and agreed as of September___. 2020. Inside Passage Electric Cooperative Jodi Mitchell, Chief Executive Officer Letter of Intent Page 3 of3 Jfoonaft }lrea -}l:NCS}l £and 19 zo •. ' 3D 21 Jl )1 ® r · s;~~:~f e I i@) I ~ I ~~-~· _. ~ .. ~ -~~· ~ J ~ .. i ~~ .QJ ILegend -""SI1111m1 ~S..!I .. skaltnda Roads Rol!da by Type -Highw.y -Pttmar~~nt -SIMcuhulll -... \,.,,. £!}1 I ~:~ (to) I (ii) I hZi _.J VsiAiMf.~.fi "ft5il.,.b • P..WW11£'.d,)I~i~~'l r ~l ,;.;b /-{\1 ~ I A II -HoNH< o•H ---·TrJII Q -·-·~· if'·~··- Q -~· I· ~~ti!tiit~iim!-\td$in 'II!IE~f~.zal1 1~ I I I I I I , I ' p 1-;';) :(;'1. @ 10 21 II 29 ~-==·-G> -e 21 @ 30 LOI -Exhibit A, Page 1 of 1 1 ... ~ ,-I ~ ·· .. · AA-14015 INTERlM CONVEYANCE WHEREAS Sealaska Corporation is entitled to a conveyance pursuant to Sees. l4(h)(S) and 22(i) of the Alaska Uative Claims Settlement,.Act of December 18, 1971, 43 U.S.C. 1601. 1613(h)(8), :621(j), of the surface and subsurface estates in the following-described lands: Copper River Mer~ dian, A l as·ka T. 44 S., R., 61 E., unsurveyed. Sec. 1, Nln: Sees. 2 ana 3 ; Sec. 4 (fractional): Sec. 5 (fractional). £~: Sec. 8, excluding U.S. Survey No. 1353 and U.S. Survey No. 1354; Sees. 9, 10 and 11: Sees. 14 to 17, inclusive; Sec. 18, ~; Sec. 19·, E'hNE'A: Sees. 20 to 23, inclusi~e~ Sec • 26 , Nth, E:ASW1..4, WlhSE'~; Sec. 27, Wn: Sec. 28, i'M; Sees. 29 and 32. Coirtaining approximately 1i,sa1 acres 'Excluded from tne above-described lands are the .submerged lands. if any, up to the ordinary high water mark, beneath rivers 3 chains wide (198 feet) and wider and lakes 50 acres and larger. which are meanderable according to the 1973 Bureau of Land Management Manual of Surveying Instructions, as "modified by Departmental regulation 43 CFR 2650.5-l. Excluded from the above-described lands herein conveyed are lands covered by tidal waters up to the line of mean high tide. The actual limits of tidal influence for those water bodies, if any, will be determined at the time of survey. Interim Conveyance No. 1 3 61 Date _____ o_cr_s __ l98_7 -------- 57("1 12-. ~~~: LOI -Exhibit 8, Page 1 of 6 2 NOW KNOW YE, that there is, therefore, granted by the UNITED STATES OF AMERICA. unto the above-named corporation the surface and subsurface estates in the lands above described; TO HAVE ~TI TO HOLD the said estates with all the rights, privileges. immunities. and appurtenances, of whatsoever nature, thereunto belonging, unto the said corporation, its successors and assigns , forever. EXCEPTING AND RESERVING TO THE UNITED STATES from the lands so granted: Pursuant to Sec. 17(b) of the Alaska Native Claims Settlement Act of December 18, 1971, 43 U.S.C. 1601, 1516(b). the following public easements, referenced by easement identification number (EIN) on the easement map attached to this document, are reserved to the United States. All easements are subject to applicable Federal. State, or mWlicipal corporation regulat-ion. The following is a listing of uses allowed for each type of easement. Any uses which are not specifically listed are prohibited. 25 Foot Trail-The uses allowed on a twenty-five (25} foot wide trail easement are: travel by foot, dogsleds. animals. snowmobiles. two-and three-wheel vehicles. and small all-terrain vehicles (ATVs) (less than 3.000 lbs. Gross Vehicle Weight (CVW)). 60 Foot Road -The uses allowed on a sixty (60) foot wide road easement are: travel by foot, dogsleds. animals. snowmobiles, two-and three-wheel vehicles. small and large all-terrain vehicles (ATVs), track vehicles. four-wheel drive vehicles. automobiles and trucks. 100 foot Exis~in g /Pro p osed Road -The uses allowed on a one hundred (100} foot wide road easement are: travel by foot , dogsleds. animals. snowmobiles. two-and three-wheel vehicles. small and large all-terrain vehicles. four-wheel drive vehicles. automobiles and trucks. If. after the road has been constructed and a lesser width is sufficient to accommodate the road. the easement shall be reduced to a lesser width and the uses allowed will be those listed above for a sixty (60) foot wide road easement. a. (EIN 2 G C5) An easement sixty (60} feet in width for an existing road linking the Whitestone -Logging Camp and EIN 5 Gin Sec. 4. T . 44 S .. R. 61 E .. Copper River Meridian. The uses allowed are those listed above for a sixty (60) foot wide road easement. Interim Conveyance No. 1 361 Date OCT 9 1987 ------------------~~------------------ 2 LOI -Exhibit B, Page 2 of 6 3 b. (EIN 5 G) An easement one hundred (100) feet in width for an existing road which enters the selection in Sec. 2. T. ~4 S .. R. 61 E .. Copper River .\ieridian. and extends southerly through Sec . 32. T. ~4 S .. R. 61 E., Copper River Meridian. The uses allowed are those listed above for a one hundred (100] foot wide existing/proposed road easement. c . (EIN 6 G} An easement sixty (60) feet in width for an existing road from Hoonah which branches easterly from EIN 5 Gin Se~. 2, T. 44 S .• R-. 61 E., Copper River \feridian. and continues southeasterly to public land in Sec. 6, T. 44 S .. R. 62 ~-. Copper River Meridian. The uses allowed are those listed above for a sixty {SO) foot wide road easement. d . (EIN 9 G) An easement twenty-five (25) feet in width for an existing trail from .\H. 3ether in Sec. 5, T. H S., R. 61 E., Copper River .\{eridian. easterly to E:IN 14 G. The uses al'lowed are those listed above for a twenty-five (25) foot wide trail easement. e. (ErN 14 G) An easement sixty (60) feet in width for an existing road from EIN 5 Gin Sec. 8, T. 44 S .. R. 61 E .. Copper Rive~ Meridian, northerly to the marine coastline on the southern boundary ofT. 43 S .. R. 61 E .. Copper River ~eridian. The uses allowed are those listed above for a sixty (60} foot wide road easement. f. (EIN 16 G) An easement one hundred (100) feet in width for an existing road from E:IN' 6 G in Sec. 1, T. 44 S .. R. 61 E .. Copper River Meridian, southerly and easterly to public land in Sec . 19, T. 44 S .. R. 62 E .. Copper River Meridian . The uses allowed are those listed above for a one hundred {100} foot wide eXi5ting/proposed road easement . THE GRANT OF THE A.BOVE-OESCRlBED LUfOS IS SUBJEct TO: 1 . Issuance of a patent after approval and filing by the Bureau of Land ~anagement of the official plat of survey confirming the boundary description and acreage of the lands hereinabove granted; 2. Valid existing rights therein. if any, including but not limited to those created by any tease (including a lease issued under Sec. 6(g) of the Alaska Statehood Act of July 7, 1958. 48 U.S.C. Ch. 2, Sec. 6(g)), contract, permit, right-of-way. or easement. and the right of the lessee. contractee. permittee. or grantee to the complete enjoyment of all rights. p(ivileges. and benefits thereby [ n ter im Conveyance No. 1 3 61 Date ______ a_cr_9 __ 19_8_7 ______ _ 3 LOI-Exhibit B, Page 3 of 6 4 granted to him . Further. pursuant to Sec. l7(b)(2) of the Alaska Native Claims Settlement Act of December 18. 1971 (ANCSA), .!3 U.S.C. 1601, 1616(b)(2), any valid existing right recognized by ANCSA shall continue to have whatever right of access as is now provided for under existing law: and 3 . The following third-party interests, created and identified by the U.S Forest Serv·ice. as provided by Sec. 14{g) of the Alaska Native Claims Settlement Act of December 18, 1971, 43 U.S.C. 1601, 1613(g): ~ a. Timber Sale Contract. 12-11-010-1545. as modified. awarded to the ,Uaska Lumber--and Pulp Company, Inc. (now Alaska Putp Corporation) on January 25, 1956: b . Road Right-of-Way Construction and Use (Cost Share) Agreement between Huna Totem Corporation and the United States of America. dated June 10. 1982; (1) An easement, dated September 10. 1982. granted to Huna Totem Corporation for the following roads: (a} fOR 8570, located in Sees. 4 and 5. T. H S., R. 61 E .. Copper River Meridian. Alaska: (b) FOR 8502. located in the NEJA, Sec. 2. T. -t4 S .• R. 61 E., Copper River ~eridian. Alaska; (c) fOR 8502. located in Sees. 2. 3 and 4, T. 44 S., R. 51 E .. Copper River Meridian. Alaska; (d) fOR 8530. located Ln Sees. l and 2. T. -44 S., R. 61 E., Copper River Meridian. Alaska; (e) FOR 8530. located in Sec-1. T . 44 S .. R. 61 E., Copper River Meridian. Alaska: c. United-States Department of AgriculttJre. (USDA), forest Service-Huna Totem Road ~aintenance Agreement, as amended. between Huna Totem Corporation and the United States of America, executed January 25, 1984; d. ~emorandum of Agreement between Sealaska Corporation, Juneau. Alaska . and USDA, forest Service. Tongass National forest. Sitka. Alaska. executed June 10, 1982. a copy of which is recorded in the Sitka Recording District in book 56, pages 812-819; [nterim Conveyance No. 1 361 Datf! OCT S 1987 .. "" LOI -Exhibit B, Page 4 of 6 5 e . Special Use Permit issued to the Alaska Lumber and Pulp Company. Inc. (now Alaska Pulp Corporation} on August li. 1982. as amended. for a logging camp located in Sec. 4. T. 44 S .. R. 61 E.. Copper River Meridian. Alaska; • . Specia! Use Permit authorizing construction. operation. and maintenance of a water supply system including the water intake structure. pipeline, access road and gate issued by USDA, forest Service, to the City of Hoonah on March 26. 1984,~iocated in Sees. 2 and 11, T. 44 $ .. R. 61 E., Copper River Meridian. Alaska. g. Special 'use Permit i.ssued to the Alaska Lumber and Pulp Company, Inc. on July 18, 1982. for a Class D Road. located in Sec. ~. T. 44 S., R. 61 E. Copper River Meridian, Alaska. IN WITNESS WHEREOf. ~he undersigned authorized officer of ·the Bureau of Lami Managemem nas. in the name of the United States. set his hand. and caused the seal of the Bureau to be hereunto affixed. on this 9th day of October. 19S;7, in Anchorage, Alaska. UNITED STATES Of AMERICA /8/ TERRY R. HASSETT Terry R. Hassett Chief, Branch af KCS Adjudication Interim Conveyance No . 1361 Date ocr 9 $87 5 LOI -Exhibit B, Page 5 of 6 6 ' :.=t~rrta tnte 0A""'Uf1' OF ~\.41: I}(T'U.IOIII ~-.,--:_______ -~-·•..:. __ , ____ _ f • ...•• .. , ~ \ ·- ·-.J,r.ul__ ......... -., ... . .. - 1'..--0 ... ·~~./ (. .. I i" .• !. ·---. 0 ; ~0 ; 0. 0 0 0 -_:... ~--- 0 ... ~. 0 0 0 0 a-6 ··-··-···· 0-~ 0 " 0 0 ~- 0 0 ci'. ..,..,...,.,...---=--""'='-----~-,,..-'---'---··-·-.:._~.Ti--··-~.~ .•. ~ .• ~.-i,~"'-·------~~--~-~---.,--'-·-·--.!...a--ii ~ •. ~ HOONAH VILLAGE .. ~~ :~1w ~ REGIONAl SELECTIONS) '' .- -!IEAL.t.:u:.r. 14 (~) (8) SELECTI()II Acolr<.•t••tl vf D.c. 1], l~'Jii· •.-••••rrn otiiiiGfl1l "~'~~l• ,..,t,•b~ ICIP0!1111t110n 11\<0'1' b*' I•U •hen ... ,'jE..-.•J oA to .&L.,..:ioi'A ~ ...... ~"" lL F ,.,,T, -,.,-.,,. LOI-Exhibit B, Pal3ti 1 Form 12 for Hoonah 2021 SECTION A: Operation Hours section of FORM12 is calculated by : Hoonah I 3,6131 3,512,5 I Unit In On Gross BTU No Size No Service Standb y Generation pe r kWh 1 1,050 q 1 12 8,748 5 2 1,000 38 2 1 ,376 7,384 552 3/4 475 201 3/4 7,372 1,388 2,956 Total: ---=2.:..:,5.=2.:..5 ___ ......::..::..:.....==2=3=9 8,760 17 ,520 3,513 9,440 Avg. BTU: 138,750 (# hasn"tchgd in years) Station Service: Total BTU 33,161 Net Generation: 9,651 Total Delivery Cost: 671,110 s/equal547 .100 Station Service % of Gross: Section C: Factors & Maximum Demand Load Factor%: total kWh generated in svc X demand X 1 00 3,512,594 3,512,594 = 8,760 1 749 1= 6,561,240 get the demand from Brandon's peak demand sheet summary for year Plant Factor %: total kWh generated 3,512,594 = 3,512,594 = hrs in svc X installed capacity X 1 00 8,760 2525-22,119,000 Running Plant Capacity Factor %: total kWh generated gross capacity in KW rating X hrs oper. + KW rating x hrs . oper . +etc.) X 100 1. Number of employees Full -Time (Include Superindendent): 2 . Number of employees Part-Time : 3. Total employee hours worked: 4. Operation Plant Payroll: 5. Maintenance Plant Payroll: 6. Other Accounts Plant Payroll: WO: 107.202 & 184.10x 15 Min. Gross Max. Demand (KW): Indicated Gross Max. Demand (KW): 1 Operation, Supervison & Engineering 2 Fuel, Oil 3 Fuel , Gas 4 Fuel, Other 5 Energy for Compressed Air 6 Fuel sub-total: (2 thru 5) 7 Generation Expense 8 Misc . Other Power Gen. Expense 9 Rents 10 Non-fuel sub-total (1 + 7 thru 9) 11 Operation Expenses (6 + 10) 12 Maintenance Supervision & Engineering 13 Maintenance of Structures 14 Maintenance of Generating Electric Plant SECTION D: 15 Maintenance of Misc. Other Power Gen . Plant 16 Maintenance Expenses ( 12 thru 15) 17 Total Production Expenses ( 11 and 16) 18 Depreciation 19 Interest 20 Total fixed costs (18 + 19) 21 Power Cost (17 + 20) 546 547 .1 547 .2 547.3 547.4 547 548 549 550 551 552 553 554 403.4 427 SECTION B: N/A N/A N/A N/A 8,760 = 3,512,594 = 9,198,000 1 3 2,834 $66,242 .64 $ 9,119 .59 $ 4,053.78 (leave answer as zero) Mills/Net $/10 6 BTU 0.00 195.32 72.09 267.41 15.15 282.56 32 .23 314.79 20.24 0.00 0.00 20.24 C:\Users\Jodi\AppData\Locai\Microsoft\Windows\INetCache\Content.Outlook\XLKP8NQF\2021 forms.xlsx Prepared by Roxanne Hoonah 12/5/2022 2:33PM 0.5354 100 53.53552 0.158804 100 15.88044 0.381887 100 38.18867 749 0 City of Hoonah P.O. Box 360 Hoonah, AK 99829 (907) 945-3663 Fax (907) 945-3445 December l, 2022 Alaska Energy Authority Renewable Energy Fund 813 W. Northern Lights Blvd. Anchorage, AK 99503 Re: Support for Water Supply Creek Hydro Project To Whom It May Concern: I am pleased to express my organization's support for Inside Passage Electric Cooperative's application to the Alaska Renewable Energy Fund for a grant to advance the Water Supply Creek Hydro project near Hoonah, Alaska. It is our understanding that the grant, if awarded, will be used along with other grants to construct the project. Hoonah, although hard-hit by the coronavirus pandemic, continues to grow its tourism industry. There is new construction going on for new buildings, and tourism infrastructure. Hoonah is in need of lower cost, clean energy now and into the future. The addition of the Water Supply Creek hydro to the existing Gartina Falls hydro will bring Hoonah to at least 60% renewable energy. Also, it will reduce the amount of diesel generation necessary to carry Hoonah's electric load, thereby reducing rates and rate variability due to diesel prices . Sincerely, ~~ Mayor of Hoonah Huna Totem Corporation December 1, 2022 Mr. Morgan Neff Interim Chief Executive Officer Alaska Energy Authority Renewable Energy Fund 813 W. Northern Lights Blvd. Anchorage, AK 99503 Dear Morgan: WOOSH-JEE-fEN • PUUJNG TOG£THER We write today to support Inside Passage Electric Cooperative's (IPEC) ongoing effort to implement their long-range goal to develop renewable energy and meet the goal of reducing energy costs to Alaskans -especially those in rural villages such as Hoonah. We believe IPEC's application to the Alaska Renewable Energy Fund for a grant to advance the Water Supply Creek Hydro project near Hoonah meets that strategic goal. We understand that the grant, if awarded, will be used along with other grants to construct the project. The State's participation in funding this project is especially critical for use as a portion of the required 20% match requirement by the Office of Indian Energy. Hoonah was hard-hit by the coronavirus pandemic but continues to grow our tourism industry. Huna Totem Corporation (HTC) has invested in a new dock, new uplands, new gondola's, and significant associated infrastructure to continue to grow as a premier cruise ship destination. Lower cost, clean energy now and into the future is vital to support continued investment and growth. The addition of the Water Supply Creek hydro to the existing Gartina Falls hydro will bring Hoonah to at least 60% renewable energy. Also, it will reduce the amount of diesel generation necessary to carry Hoonah's electric load, thereby reducing rates and rate variability due to diesel prices. · As the local village native corporation, we thank you in advance for considering this application and providing the fullest support possible. 9301 Glacier Hwy Suite 200 Juneau, AK 99801 Phone{907)789-8500 Fax (907) 789-1896 December 1, 2022 Alaska Energy Authority Renewable Energy Fund 813 W. Northern Lights Blvd. Anchorage, AK 99503 Re: Support for Water Supply Creek Hydro Project To Whom It May Concern: On behalf of the Alaska Center for Energy and Power, I am pleased to express support for Inside Passage Electric Cooperative's application to the Alaska Renewable Energy Fund for a grant to advance the Water Supply Creek Hydro project near Hoonah, Alaska. It is our understanding that the grant, if awarded, will be used along with other grants to construct the project. This grant could also provide important matching support for Federal grant applications, such as the Clean Energy Technology Deployment On Tribal Lands by the Department of Indian Energy. Hoonah, although hard-hit by the coronavirus pandemic, continues to grow its tourism industry. There is new construction going on for new buildings, and tourism infrastructure. Hoonah is in need of lower cost, clean energy now and into the future. The addition ofthe Water Supply Creek hydro to the existing Gartina Falls hydro will bring Hoonah to at least 60% renewable energy. Also, it will reduce the amount of diesel generation necessary to carry Hoonah's electric load, thereby reducing rates and rate variability due to diesel prices. Sincerely, Jeremy Kasper, PhD Interim Director Alaska Center for Energy and Power jlkasper@alaska.edu Alaska Center for Energy and Power • University of Alaska Fairbanks • 1764 Tanana Loop-ELIF Suite 404 P.O. Box 755910 • Fairbanks, Alaska 99775-5910 • Tel: (907) 474-5402 • Fax: (907) 474-5475 UAF is an AA/EO employer and educational institution and prohibits illegal discrimination against any individual: www.alaska.edu/nondiscrimination. S OUTHEAS T CONFERENCE December 1, 2022 Alaska Energy Authority Renewable Energy Fund 813 W. Northern Lights Blvd. Anchorage, AK 99503 612 W. Willoughby Ave., Suite B P.O. Box 21989, Juneau, AK 99802 Phone (907) 586-4360 www .seconference.org Email info@seconference.org SOUTHEAST ALASKA REGIONAL DEVELOPMENT ORGANIZATION Re: Support for Water Supply Creek Hydro Project To Whom It May Concern: Southeast Conference continues to support Inside Passage Electric Cooperative's (IPEC) ongoing efforts to implement their long-range goal to develop renewable energy and displace diesel which will stabilize and meet the shared goals of reducing energy costs to Alaskans-especially those in our rural villages. IPEC's application to the Alaska Renewable Energy Fund for a grant to advance the Water Supply Creek Hydro project near Hoonah, Alaska meets that strategic goal for Hoonah and is a regional priority that is consistent with the Southeast Conference Comprehensive Economic Development Strategy. It is our understanding that the grant, if awarded, will be used along with other grants to construct the project. The State's participation in funding this project is especially critical for use as a portion of the required 20% match requirement by the Office of Indian Energy. Hoonah, although hard-hit by the coronavirus pandemic, continues to grow its tourism industry. There is new construction going on for new buildings, and tourism infrastructure. Hoonah needs lower cost, clean energy now and into the future. The addition of the Water Supply Creek hydro to the existing Gartina Falls hydro will bring Hoonah to at least 60% renewable energy. Also, it will reduce the amount of diesel generation necessary to carry Hoonah's electric load, thereby reducing rates and rate variability due to diesel prices. As the State of Alaska's Regional Economic Development Organization (ARDOR), we thank you in advance for considering this application and providing the fullest support possible. Sincerely, JraJJJ£ Robert Venables Executive Director December 1, 2022 Alaska Energy Authority Renewable Energy Fund 813 W. Northern Lights Blvd. Anchorage, AK 99503 Re: SEACC Supports the Water Supply Creek Hydro Project To Whom It May Concern: I am pleased to express Southeast Alaska Conservation Council's support for Inside Passage Electric Cooperative's application to the Alaska Renewable Energy Fund for a grant to advance the Water Supply Creek Hydro project near Hoonah, Alaska. This grant will provide critically necessary funds to unlock additional federal matching funds at an important juncture in the project's development. SEACC was founded in 1970 to protect the environment and natural resources of Southeast Alaska from over development and over extraction, and we currently represent over 8,000 supporters who care deeply about the conservation and sustainability of our region. Therefore, we do not support major development or construction projects lightly. But the Water Supply Creek hydro project does earn our support. The proposed site of the project is upstream of an pre-existing dam, meaning no additional harm to salmon. It is a relatively small project with minimal, if any, impacts on wildlife habitat. But when considering the impacts of climate change and the greenhouse gas emissions that will be avoided by this project, the Water Supply Creek hydro project actually becomes a net-positive for the environment. Just as importantly, it will help stabilize energy prices in the rural Alaska Native village of Hoonah. Hoonah, although hard-hit by the coronavirus pandemic, continues to grow its economy quickly, and Hoonah is in need of lower cost, clean energy now and into the future. The addition of the Water Supply Creek hydro to the existing Gartina Falls hydro will bring Hoonah to at least 60% renewable energy. The attendant reduction in diesel generation necessary to carry Hoonah's electric load will stabilize and eventually reduce rates. For these reasons we strongly support Inside Passage Electric Cooperatives application to be selected for funding this cycle. Sincerely, Matthew Jackson 907-821-1412 matt@seacc.org Climate Program Manager Southeast Alaska Conservation Council IPE:C INSIDr: PASSAG!:: !::l.KTRIC COOP!::RATIV!:: Inside Passage Electric Cooperative 12480 Mendenhall Loop Rd. Juneau, Alaska 99801 Prepared by: 1-)~ HDR Engineering, Inc. 2525 C Street, Suite 500 Anchorage, Alaska 99503 Design Criteria Report L "~ Water Supply Creek Hydroelectric Project r .I~ This page is intentionally left blank. December 22, 2021 Contents Design Criteria Report L ~~ Water Supply Creek Hydroelectric Project r .I~ 1 Introduction ........................................................................................................................ 1 1. 1 Purpose ........................................................ , .............................................................. 1 1.2 Project Team ............................................................................................................... 1 1.3 References .................................................................................................................. 1 2 General Design Criteria ...................................................................................................... 1 2.1 General Description of Facilities ................................................................................... 1 2.2 Materials ...................................................................................................................... 2 2.2.1 Unit Weights ......................................................................................................... 2 2.2.2 Concrete ............................................................................................................... 2 2.2.3 Reinforcement ...................................................................................................... 3 2.2.4 Earth and Rock ..................................................................................................... 3 2.2.5 Steel ...................................................................................................................... 3 2.2.6 Timber .................................................................................................................. 3 3 Diversions and Intakes ....................................................................................................... 4 3.1 Description of Facilities ................................................................................................ 4 3.2 Hydraulic Design Criteria ............................................................................................. 5 3.2.1 General Project Operation .................................................................................... 5 3.2.2 Design Maximum Water Surface Elevation ................. , ......................................... 5 3.2.3 Normal Maximum Water Surface Elevation ........................................................... 5 3.2.4 Design Flow .......................................................................................................... 5 3.2.5 Intake Submergence ............................................................................................. 5 3.2.6 Trash Rack Velocity .............................................................................................. 5 3.3 Structural Design Criteria-Diversion Structure ........................................................... 5 3.3.1 Loading ................................................................................................................. 5 3.3.2 Foundation Bearing Pressure ............................................................................... 6 3.3.3 Stability ................................................................................................................. 7 4 Pipeline .............................................................................................................................. 8 4.1 References .................................................................................................................. 8 4.2 General ........................................................................................................................ 8 4.2.1 Materials ............................................................................................................... 9 4.2.2 Joints .................................................................................................................... 9 4.2.3 Design Loads ........................................................................................................ 9 4.3 Thrust Restraint .......................................................................................................... 12 4.4 Pipeline Appurtenances .............................................................................................. 13 4.4.1 Pipeline Failure Detection System ....................................................................... 13 December 22, 2021 I i Design Criteria Report L '~ Water Supply Creek Hydroelectric Project r J ~ 5 Roads and Site Drainage .................................................................................................. 13 5.1 Introduction ................................................................................................................. 13 5.2 References ................................................................................................................. 13 5. 3 Access Roads ............................................................................................................. 13 5.4 Site Drainage .............................................................................................................. 14 5.4.1 Ditches ................................................................................................................. 14 5.4 .2 Culverts ............................................................................................................... 14 5.4.3 Peak Flow Rates .................................................................................................. 14 5.4.4 Conveyance Sizing .............................................................................................. 14 6 Powerhouse ...................................................................................................................... 15 6.1 Introduction ................................................................................................................. 15 6.2 References ................................................................................................................. 15 6.3 General Description of Facilities .................................................................................. 15 6.4 Turbine/Generator ....................................................................................................... 15 6.5 Plant Controls ............................................................................................................. 15 6.5.1 Load Controls ...................................................................................................... 15 6.5.2 Other Powerhouse Equipment ............................................................................. 16 6.6 Powerhouse Structure ................................................................................................ 16 6.6.1 General ................................................................................................................ 16 6.6.2 Earthquake Loads ................................................................................................ 16 6.6.3 Snow Loads ......................................................................................................... 17 6.6.4 Wind Loads .......................................................................................................... 17 7 Transmission Line ............................................................................................................. 17 7.1 lntroduction ................................................................................................................. 17 7.2 References ................................................................................................................. 17 7.3 General Description of Facilities .................................................................................. 17 December 22, 2021 I ii OF AASHTO ACI AISC AISI ASCE AWWA cfs fps FS h:v HOPE HDR Hz IBC kV kW pcf Project psf psi SCAD A Design Criteria Report L ~~ Water Supply Creek Hydroelectric Project r J ~ Acronyms and Abbreviations degrees Fahrenheit American Association of State Highway and Transportation Officials American Concrete Institute American Institute of Steel Construction American Iron and Steel Institute American Society of Civil Engineers American Water Works Association cubic feet per second feet per second factor of safety horizontal:vertical High Density Polyethylene HDR Engineering, Inc. hertz International Building Code kilovolt kilowatt pounds per cubic foot Water Supply Creek Hydroelectric Project pounds per square foot pounds per square inch Supervisory Control and Data Acquisition December 22, 2021 I iii Design Criteria Report L "~ Water Supply Creek Hydroelectric Project r J ~ This page is intentionally left blank. December 22, 2021 1 iv Design Criteria Report L ~~ Water Supply Creek Hydroelectric Project r J ~ 1 Introduction This document presents the design criteria to be used in preparing preliminary and final designs for the diversion and intake structures, penstock pipeline, powerhouse, transmission line, and access roads for the Water Supply Creek Hydroelectric Project (Project). Section 2 presents general design criteria to be used for these Project facilities. Sections 3, 4, and 5 present specific design criteria for the diversion and intake, pipeline, and roads and site drainage, respectively. These component-specific criteria should be worked in conjunction with the general criteria in Section 2. Design criteria for the powerhouse, powerhouse equipment, switchyard, and transmission line are covered in Sections 6 and 7. 1.1 Purpose The project is being designed as an addition to Inside Passage Electric Cooperative's (IPEC) existing generation system. 1.2 Project Team Civil design shall be performed by HDR Engineering. IPEC shall coordinate electrical engineering, surveying and equipment procurement. 1.3 References Design engineers should also refer to applicable information contained in the following documents: 1. U.S. Bureau of Reclamation, Design of Small Dams, third edition, 1987 2. U.S. Army Corps of Engineers, Hydraulic Design Criteria 2 General Design Criteria 2.1 General Description of Facilities The Project site is located approximately 5 miles southeast of Hoonah, Alaska. Water Supply Creek is a high-gradient stream that is a tributary to Gartina Creek. The Project consists of a small diversion and intake at approximately elevation 1 7 40 feet, a High Density Polyethylene (HOPE) and steel penstock pipeline, a powerhouse located at approximately elevation 380 feet, access roads, and a short overhead transmission line. The proposed Project will have a target installed capacity of 300-350 kilowatts (kW). The crest of the diversion will be at approximately elevation 750 feet. The diversion will consist of a fixed crest overflow section. The intake will consist of a small concrete box-type structure located on the right side of the diversion. The entrance to the intake will be protected by a 1 Elevations are report as Mean Sea Level unless noted otherwise. December 22, 2021 I 1 Design Criteria Report ~-~~ Water Supply Creek Hydroelectric Project 'J ~ sluiceway and trash rack. The sluiceway will be used to pass accumulated sediment during high-flow events. A small valve house will be located immediately downstream of the intake. The valve house will contain the penstock shutoff valve and operator, an intake drain, and level control and flow sensors. An approximately 4, 700-foot-long penstock will convey water from the intake to the powerhouse. The penstock will have an inside diameter of 20-24 inches, corresponding to a maximum flow rate of 12-14 cubic feet per second (cfs}. The pipeline will be buried and will be located next to the access road for most of its length. The upper portion of the pipeline will be HOPE, and the lower portion will be steel or HOPE. The powerhouse will be a small pre-engineered metal building on a concrete foundation. The powerhouse will contain one horizontal Pelton turbine/generator set, inlet piping, guard valve, switchgear, and controls. A short 12.5 kilovolt (kV} transmission line will connect the Project with the existing Gartina Falls hydroelectric project transmission system. The Project will operate in a run-of-river mode and will not have any usable storage. 2.2 Materials 2.2.1 Unit Weights The following standard unit weights in pounds per cubic foot (pcf} and pounds per square foot (psf} will be used, where applicable: Water, pcf 62.4 Steel, pcf 490 Concrete, pcf 150 Wood, pcf 25 Ice, pcf 60 Snow at intake area, psf 200 Snow at powerhouse site, psf 50 Backfill, pcf 125 2.2.2 Concrete The analysis and design of new reinforced concrete structures will follow the latest revision of American Concrete Institute (ACI} Code 318 and applicable sections of ACI 350. Reinforced concrete structures will be analyzed based on the theory of elastic frames, but design of a section will be carried out using the ultimate strength design method. Concrete used for the Project will achieve a minimum compressive strength of 4,000 pounds per square inch (psi} at 28 days. Lean concrete for pipe slurry bedding (if used} will have a minimum 1,000 psi compressive strength. Cement used for the Project will be Type I or Type Ill, conforming to ASTM C 150. December 22, 2021 I 2 2.2.3 Reinforcement Design Criteria Report L """' Water Supply Creek Hydroelectric Project r .I~ Reinforcement detailing will be performed in accordance with ACI's Manual of Standard Practice for Detailing Reinforced Concrete Structures. Reinforcement will conform to the requirements of ASTM A 615, Grade 60. 2.2.4 Earth and Rock Engineering properties for earth and rock, including allowable temporary and permanent excavated slopes as well as bearing capacities will be determined by a geotechnical investigation conducted prior to final design. 2.2.5 Steel Steel members will be designed in accordance with the Specification for the Design, Fabrication, and Erection of Structural Steel for Buildings, and the Manual of Steel Construction published by the American Institute of Steel Construction (AISC). Structural steel and miscellaneous steel will comply with the following ASTM requirements : Structural steel shapes, plates, and bars Structural steel tubing Aluminum members Bolts Grating Checkered plate Handrail Stainless steel A36 A500, Grade B 8209 A193, Grade 88 or better A36 or Aluminum A108 Grade 1016, 1018, 1019 A 120 Standard Weight A304 (ANSI 18 Cr 8 Ni) Exposed metal surfaces will be hot-dip galvanized or stainless, except for gates and valves. All exterior stairs and checkered plate will be hot-dip galvanized in accordance with ASTM A 123. All exposed bolts, nuts, and washers will be Type 304 stainless. Gates and valves inside the powerhouse will be painted; outside gates and valves will have a weather-resistant, factory- applied paint. 2.2.6 Timber Timber used for structural purposes will be treated West Coast Douglas fir, designed in accordance with the Uniform Building Code and American Institute of Timber Construction. December 22, 2021 1 3 Design Criteria Report L '-\~ Water Supply Creek Hydroelectric Project r J ~ 3 Diversions and Intakes This section presents the hydraulic, structural, and mechanical design criteria for the diversion and intake structures. 3.1 Description of Facilities Basic requirements of the diversion and intake structures are as follows: 1. Bedload is expected to accumulate behind the diversion structure. The intake will need to be kept clear of obstructions to maintain the designed hydraulic capacity. To help keep the intake free of obstruction, a sluiceway will be designed in front of the intake. Discharge through the sluiceway will be controlled by a conventional flat sluice gate designed for an unseating head. The gate will be capable of operating remotely, locally, and manually. Significant deposits may need to be removed using mechanical equipment. 2. A submerged steel trash rack with 2-inch vertical bar spacings will be installed to keep floating debris from entering the intake. Provision will be made for installation of pressure differential measuring instruments. 3. A butterfly valve will be installed to shut off flow to the pipeline and allow the pipeline to be drained. The valve will be capable of operating remotely, locally, and manually. Valve shafts and disc edges as well as other exposed hardware will be stainless steel. The valve will be inside a roofed intake box. An atmospheric air vent will be designed downstream of the shutoff gate and will have an air intake located at a snow-free area. 4. The diversion and intake facilities will be designed with future maintenance in mind. Principal maintenance tasks are expected to be: o Lubrication of motor operators o Removal of sediment deposits in intake o Removal of sediment deposits in the pool upstream of the diversion structure to maintain unrestricted flow to the intake o Removal of floating debris against trash racks o Winter shutdown of the Project prior to freeze-up o Startup of the Project following winter shutdown. 5. Project facilities will be designed against potential vandalism. For example, hinges will be concealed, bolts will be tacked down, and solid covers will be provided over openings in the intake deck. Occupational Safety and Health Administration standards will apply. Fencing will not be installed around the diversion/intake. 6. Sluiceway stoplogs will be designed to be made of timber. December 22, 2021 1 4 3.2 3.2.1 Hydraulic Design Criteria General Project Operation Design Criteria Report L ~~ Water Supply Creek Hydroelectric Project r ,./ ~ The Project will be operated in a run-of-river mode. Fluctuation of the water level of the pond behind the diversion will be kept to a minimum. 3.2.2 Design Maximum Water Surface Elevation The design maximum water surface elevation will be based on the 1 00-year instantaneous flood at the site . The height of the diversion structure will be set at the design maximum water surface elevation plus 2 feet. 3.2.3 Normal Maximum Water Surface Elevation Normal maximum water surface elevation of the diversion will be the crest elevation of the spillway, elevation 750 feet. 3.2.4 Design Flow The design flow will be 12-14 cfs. 3.2.5 Intake Submergence The intake invert will be set based on an article by J.L. Gordon (Water Power, April1970). The equation is: s = CVD0·5 Where: S = Elevation difference between minimum operating elevation and crown of intake, feet C = 0.3 for symmetrical approach flow, 0.4 for lateral approach flow V = Velocity of flow in pipeline, feet per second (fps) D = Diameter of pipeline, feet 3.2.6 Trash Rack Velocity Maximum flow velocity through the trash rack will not exceed 3 fps. The trash rack will be designed to withstand full differential pressure across the rack. 3.3 3.3.1 Structural Design Criteria -Diversion Structure Loading The diversion and intake structures will be designed to resist overturning and sliding in accordance with the American Society of Civil Engineers' (ASCE's) Engineering Guidelines for Hydroelectric Development. December 22, 2021 1 5 Hydrostatic Pressure Design Criteria Report L "~ Water Supply Creek Hydroelectric Project r .I~ Hydrostatic levels will be as determined by the hydraulic design criteria . Uplift Pressure Uplift will be assumed to act over 100 percent of the area of the intake structures, and to vary as a straight line from the maximum differential between headwater and tailwater. Earthquake Equivalent static earthquake inertia forces will be computed in accordance with the International Building Code (IBC) for the Project site. Vertical seismic loads are assumed to be zero. Ice and Snow The magnitude of pressure exerted by ice sheets against the diversion and intake structure will be assumed to be 5 kips per linear foot Silt For determining the pressure against structures caused by silt, the unit weight of silt will be 85 pcf for computing horizontal pressures and 120 pcf for computing vertical pressures. Earth Pressures Lateral earth pressures on retaining walls and other backfilled structures will be determined from the formula: Where: F = Horizontal earth pressure K = Coefficient of earth pressure Kactive =(to be determined) Kat rest = (to be determined) Kpassive = (to be determined) F = 0.5KwH 2 w = Unit weight of soil plus ground water, pcf H = Height of soil, feet Wind Load Design will be per IBC Chapter 16. 3.3.2 Foundation Bearing Pressure Design bearing pressures will be determined during geotechnical investigation. December 22, 2021 I 6 Design Criteria Report L ~~ Water Supply Creek Hydroelectric Project r J' 3.3.3 Stability Structures will be designed to meet Federal Energy Regulatory Commission-specified factors of safety as shown below for each of the following load cases: • Case 1: Normal Operating Condition o Pool elevation at spillway crest o Silt loading • Case II: Flooding Condition o 1 00-year flood level • Case Ill: Earthquake Condition o Same loads as Case I plus earthquake loads using static seismic coefficients • Case IV: Construction Condition o Construction completed with no water behind diversion structure o Earthquake forces applied as in Case Ill Overturning Structures will be considered safe against overturning for each load case if the vertical stress at the heel, without uplift, exceeds uplift pressure at that point. For the extreme loading conditions, the structure will be considered safe against overturning if the pressure at the toe is less than the allowable stress in the concrete, and if the foundation and the resultant is within the middle half of the foundation. Sliding For structures on soils, the factor of safety (FS) against sliding, defined as the ratio of friction resisting forces to horizontal driving forces, will be calculated by the formula: Where V = summation of all vertical forces H = summation of all horizontal forces v FS = (f)><R Minimum FS for various load conditions, and coefficients of friction (f) for various soil types are given below: Minimum Factor of Safety Case FS I 2.00 II 1.25 Ill IV 1.25 1.10 Coefficient of Sliding Friction Soil ill Clay 0.3 Sand 0.4 Gravel 0.5 December 22, 2021 1 7 Design Criteria Report L ~~ Water Supply Creek Hydroelectric Project r J ~ For structures on rock, stability against sliding will be determined by the shear-friction factor. Q _ CA+(W-U) tan <P -H Where: Q = Shear friction factor C = Cohesion value of concrete on rock, psf A= Area of base considered, square feet W= Sum of vertical forces (except uplift), pounds U = Uplift forces, pounds tan <l> = Coefficient of internal friction H = Sum of horizontal forces, pounds 4 Pipeline This section presents the design criteria to be used as the basis for preparing detailed design drawings, calculations, and specifications for the pipeline and thrust blocks . 4.1 References 1. ASTM, 03350 Standard Specification for Polyethylene Plastics Pipe and Fitting Materials 2. Plastic Pipe Institute 3. AISC, AISC Manual of Steel Construction. 4. American Association of State Highway and Transportation Officials (AASHTO), Standard Specification for Highway Bridges 5. American Water Works Association (AWWA), Steel Pipe Design and Installation M-11 6. American Iron and Steel Institute (AISI), Welded Steel Pipe, Steel Plate Engineering Data, Volume 3, 1983 7. AISI, Steel Pipelines and Tunnel Liners, Steel Plate Engineering Data, Volume 4, 1984 8. A lSI, Steel Plate Engineering Data, Buried Steel Pipelines, Volume 4, 1992 4.2 General The pipeline will extend from the intake to the powerhouse and will be approximately 4, 700 feet long . The pipeline will be HOPE and steel construction, and will be buried throughout its length. Burial is intended for protection of the pipe only , not for freeze protection. The size of the pipeline will be nominally 20-24 inches in inside diameter. Exterior and interior steel pipeline surfaces will be protected by a polyurethane coating system in accordance with AVWI/A C222, similar to the Lifelast Durashield 210 25 mil OFT system. December 22 , 2021 1 8 Design Criteria Report 1-·"~ Water Supply Creek Hydroelectric Project 'J ~ All attempts will be made to design the pipeline with a continuous downward profile to enable draining. If this is not possible, the pipeline will be equipped with drain valves and air/vacuum release valves, as necessary. 4.2.1 Materials HOPE pipe will be made from PE 4710 resin, with a standard grade HDB rating of 1,600 psi at 73 degrees Fahrenheit (°F). Steel pipeline material will conform to ASTM A 1018, having a minimum yield strength of 42 kips per square inch. 4.2.2 Joints HOPE pipe will have fused joints or flanged couplings. Steel pipe will be welded or have grooved-joint (e.g., Victaulic) fittings or flanged couplings. 4.2.3 Design Loads The pipeline will be designed to resist internal pressure, external trench and live loads, flotation, handling, one-half vacuum, water hammer loads, and hydrostatic testing to 125 percent of static head. Shell Stress Due to Internal Pressure Shell stress due to internal pressure is calculated using the following equation: Where: P = Internal pressure= vwh/144 in psi Yw = Unit weight of water, 62.4 pcf h = Static head of water, feet D = Pipeline diameter, inches S = Stress in the pipe wall, psi t =Shell thickness, inches External Loads S = PD/2t Steel pipe wall thickness will be determined by the Spangler deflection formula. Deflection is calculated using the following equation: tJ.x = D1 (KW r-3)/(EI + 0.061 E' r-3) Where: tJ.x = Maximum allowable horizontal deflection of pipe 01 = Deflection lag factor = 1. 0 December 22, 2021 I 9 Design Criteria Report L ~~ Water Supply Creek Hydroelectric Project r J ~ K = Bedding constant = 0.10 W = Soil plus live load on pipe, pounds per lineal inch of pipe r = Radius of pipe, inch E = Modulus of elasticity for pipe = 30,000,000 psi I = Moment of inertia of cross section of pipe wall, inch4/lineal inch of pipe wall t 3/12 (t =wall thickness, inches) E' =Modulus of soil= 700 psi (or as determined during soils investigation) Maximum allowable deflection for steel pipe will be 5.0 percent of pipeline diameter, and for HOPE pipe will be: • 6.0 percent of pipe diameter for DR 13.5 • 5.0 percent of pipe diameter for DR 11 • 4.0 percent of pipe diameter for DR 9 Soil Load Determination Soil load on the pipe will be determined by the soil prism theory using the formula: W= yHD/12 Where: W = Vertical soil load on pipe, pounds per inch y = Soil unit weight, pcf H = Height of fill over pipe, feet 0 = Outside diameter of pipe, feet Live Load Determination Live load on pipe will be checked for two cases: 1. AASHTO HS20-44 truckload as specified in AASHTO HB-12 Standard Specification for Highway Bridges on minimum earth cover with the pipe empty 2. A 15-ton wheel load (front end loader) on minimum earth cover with the pipe empty; assume the wheel footprint is 1 0 inches by 20 inches; maximum bearing pressures for a track-mounted hoe will also be investigated Minimum Handling Thickness Minimum handling thickness will be calculated as follows: 0 t= 288 December 22. 2021 I 10 Design Criteria Report L '-\~ Water Supply Creek Hydroelectric Project r J ~ Where: D = Pipeline inside diameter, inches t = Shell thickness, inches Buckling Buckling will be calculated in accordance with ANSI/AWWA C950-81. Allowable buckling pressure = qa The summation of external loads will be less than or equal to the allowable buckling pressure: we qa>yJ1w+Rwo+Pv we we qa;:::hw+Rwo+o Where: FS= 3.0 D = Diameter of pipe, inches Rw = Water buoyancy factor= 1 -.33 (hw/h) h = Height of ground surface above pipe, inches B' = 1/1 +4e<.o.asH) E = 30 x 1 06 psi I = rr/64 (Do 4 -D1 4) inch4 Do = Outside diameter, inches Di =Inside diameter, inches hw = Height of water above top of pipe, inches We = Vertical soil load on pipe, pounds per inch Pv = 7.35 psi Yw = Specific weight of water= 0.0361 pounds per cubic inch E' = 700 psi W = Live load on conduit, pounds per inch December 22 , 2021 1 11 Vacuum Design Criteria Report L '~ Water Supply Creek Hydroelectric Project r J ~ Vacuum loads will be equivalent to an internal pressure of one-half atmosphere (7.35 psi absolute). Flotation The pipeline will be stable for uplift with a FS 1.5 with the pipe completely empty and the surrounding soil fully saturated. Water Hammer The turbine and valves will be designed to limit maximum internal dynamic pressure rise due to water hammer to 20 percent above maximum static head. Temperature and Thermal Loads Thermal loads associated with expansion and contraction of any exposed pipeline will be calculated based on maximum and minimum air temperatures of 90°F and -50°F, respectively . 4.3 Thrust Restraint The pipeline will be designed to resist thrust loads on the pipe at bends by gravity and friction along the base. HDR will determine whether passive soil pressure can be used to help resist horizontal thrusts. The powerhouse thrust block will be designed to resist the load on the guard valve, and will be designed into the powerhouse foundation. Anchor rings will be designed for powerhouse thrust block to accept dead-end thrust. Hydrostatic thrust at bends will be calculated according to the following equation: T = 2yHA sin __/2 Where: T = Thrust force, kips y = Unit weight of water, 0.0624 kip per cubic foot H = Head on the pipeline centerline, feet A = Area of the pipe, square feet 11 = Deflection angle of bend, degrees Hydrodynamic thrust at bends will be calculated according to the following equation: T= 1.41pVQ(1-cos11)112 Where: T = Thrust force, pounds p = Density of water, 1.94 slug per cubic feet December 22, 2021 1 12 Design Criteria Report L """' Water Supply Creek Hydroelectric Project r J ~ V = Water velocity, feet per second Q = Flow rate, cubic feet per second Thrust blocks will be designed according to the following equation: Area required = (Total thrust)( 1. 5)/Horizontal bearing capacity of soil 4.4 4.4.1 Pipeline Appurtenances Pipeline Failure Detection System A pipeline failure detection system will be designed to close the intake valve in the event of a pipeline failure. Pipeline pressure will be monitored at the powerhouse; if it drops below a set level, the intake valve will close, and the system will shut down. 5 Roads and Site Drainage 5.1 Introduction This section presents design criteria for the Project access roads and site drainage. It covers the design of permanent access roads, service roads, creek crossings, and site drainage for the entire Project. 5.2 References 1. U.S. Department of Transportation, Federal Highway Administration, Hydraulic Design of Highway Culverts, September 1985 2. AASHTO, Geometric Design of Highways and Streets, 1984 5.3 Access Roads A permanent access road will be constructed from the existing road system to the intake site. Approximately the first mile will be an improvement of the existing logging road . At approximately elevation 710 feet, a new road will be constructed to the intake site. A second, short, access road will be constructed from the existing water intake to the powerhouse site. To the extent possible, access roads will be aligned to minimize cost and environmental impact. The access roads will be used for construction and maintenance, and the design speed limit will be no more than 20 miles per hour. The access roads will have a minimum 12-foot traveled way. Road width will be widened at horizontal curves to allow trucks delivering pipe to negotiate each curve. Every 2,000 feet, or at strategic locations, turnouts will be provided. Grades will be limited to a maximum 15 percent. Curves will have a minimum radius of 65 feet. Maximum excavation slopes will be 3/4H: 1 V (horizontal: vertical) in soil and 1 H:4V in rock, but those limits are subject to revision following results of the geotechnical investigations . Excavated slopes will be benched where the vertical depth of excavation exceeds 20 feet. Bin walls, gabions, or reinforced concrete will be installed December 22, 2021 I 13 Design Criteria Report L "-~ Water Supply Creek Hydroelectric Project r .,/ ~ to reduce backslope cuts where appropriate. Maximum fill slopes will be 1 1/2 H:1V. Drainage ditches and culverts will be installed to carry runoff from the roads. 5.4 5.4.1 Site Drainage Ditches Drainage ditches will have a minimum depth of 18 inches and a minimum slope of 2 percent. Runoff velocities will be limited to 3 fps where no armor protection of the ditch is provided. Appropriate armor protection will be designed where velocities exceed 3 fps. 5.4.2 Culverts Culverts will have a minimum diameter of 18 inches. The minimum depth of cover over culverts will be 12 inches. Culverts will have slopes of at least 2 percent. 5.4.3 Peak Flow Rates Flow rates produced by stormwater runoff from small drainage areas will be determined by the Rational Formula: Q=CIA Where: Q = Peak flow, cfs C = Runoff coefficient, 0.5 I= Rainfall intensity, 1.0 inch per hour (25-year, 1-hour) A = Drainage area, acres 5.4.4 Conveyance Sizing Drainage ditches will be sized for the calculated runoff flow rate for the area drained. Sizes will be determined by Manning's Equation: Where: Q = Flow rate, cfs n = 0.024 for ditches R = Hydraulic radius = AlP, feet A= Area of flow, square feet P = Wetted perimeter, feet S = Slope of ditch, feeUfeet December 22, 2021 I 14 Design Criteria Report L ~~ Water Supply Creek Hydroelectric Project r ..I~ Culverts will be sized and designed in accordance with Reference 1 (see Section 5.2). Manning's roughness coefficient for corrugated culverts will be 0.024. 6 Powerhouse 6.1 Introduction This section presents design criteria for the powerhouse and related powerhouse equipment. It covers the design of the powerhouse structure, turbine generator, auxiliary equipment, indoor switchgear, and controls. Layouts and designs developed with these criteria will be used to prepare construction cost estimates. 6.2 References 1. International Building Code 6.3 General Description of Facilities The powerhouse will be a prefabricated metal structure housing a Pelton turbine, generator, switchgear, and controls. The generating unit will be designed for fully automatic shutdown and for one-button start-up. The plant will also be designed with a Supervisory Control and Data Acquisition (SCADA) system that will allow remote monitoring of the plant. A light-duty monorail overhead crane will be provided for maintenance. Enough floor space will be provided inside the powerhouse to allow for disassembly of the turbine to perform a runner removal. 6.4 Turbine/Generator The turbine for this Project will be an impulse-type Pelton machine for controlling water hammer in the long pipeline, for ease of control, and for the ability to set the unit above tailwater. The synchronous generator output will be rated at 0.80 power factor, 480 volts AC, 60 hertz (Hz). The turbine unit will have a horizontal shaft. A nozzle and deflector position controller will be provided, either electrically or hydraulically operated. A speed governor will also be necessary when the unit is operating isolated from any other generating source. A flywheel may be necessary for control. 6.5 Plant Controls 6.5.1 Load Controls Three levels of load control will be provided. The first will be a programmable controller-based load control program that will maximize plant output based on available water. Water level signals from the intake will be used to open or close jets in response to availability of water. Line voltage and power factor will be controlled by a conventional exciter control. In this arrangement, the hydro plant would be synchronized to an energized transmission line and would follow transmission line voltage as controlled by the utility. December 22 , 2021 1 16 Design Criteria Report L ~~ Water Supply Creek Hydroelectric Project r .I~ The second level of load control would consist of level one with the addition of a "gate limiter." In this case, the maximum possible turbine output is limited by how far the jet(s) can open. Therefore, the machine can be set at one-half load, for example, and it will stay at this output as long as there is enough water to operate at this load. This "block loading" method of load control would be useful when the utility wants to control the power system from the diesel plant and not enough power is available from the hydro plant to carry the entire system. The final load control system would be used when the entire power system of the utility is being carried by the hydro plant. The Level One or Two system would be used to operate and load the turbine. Level Three would consist of a system that would control transmission line voltage and frequency by turning on and off a series of resistance heaters. If, for example, the utility was using 1 00 kW of power, but the turbine was generating 130 kW, line voltage would begin to rise. The Level Three controller senses this rise and begins to turn on heater coils to "waste" the excess power to control line voltage. The "load limiter'' feature of Level Two could be used to set turbine output just more than the highest expected load to minimize the amount of power that must be wasted. 6.5.2 Other Powerhouse Equipment Other powerhouse equipment that will be included in the design includes: • Monorail overhead crane • Cooling water system • Building heating and ventilation systems • Lighting • Switchgear, including metering, protective relays, synchronizing equipment, breakers, and transformers • Neutral grounding equipment • Communications equipment • Drainage and oily water separator 6.6 Powerhouse Structure 6.6.1 General The powerhouse will be a prefabricated metal structure with a poured concrete foundation. The foundation will be used to resist the thrust loads on the guard valve to the extent possible. The building will be approximately 25 by 25 feet. A 1 0-foot-wide overhead door will provide vehicle access to the structure. An open tailrace channel will convey water back to Water Supply Creek. 6.6.2 Earthquake Loads The building will be designed for seismic loads in accordance with ASCE 7, with a risk category of 1.0. December 22, 2021 1 16 Design Criteria Report l.:)~ Water Supply Creek Hydroelectric Project ~ ~ 6.6.3 Snow Loads The powerhouse will be designed to carry a basic roof snow load of 50 psf in addition to the dead load of the structure. 6.6.4 Wind Loads Design will be per IBC Chapter 16. 7 Transmission Line 7. 1 Introduction This section presents design criteria for the transmission line. It covers the design of outdoor switchgear and transformers at the powerhouse as well as utility power station ends of the line and communications lines. 7.2 References 1. International Conference of Building Officials, National Electrical Code 2. National Electrical Manufacturers Association Guidelines 7.3 General Description of Facilities The transmission line will be overhead from the powerhouse to the existing diesel plant. The line will be 12.5 kV, 3-phase, 60 Hz. A 480 volt to 12.5 kV transformer will be installed at the powerhouse. Kilowatt hour metering will be provided at the low voltage side of the powerhouse transformer. A communications cable will be buried along with the penstock to provide SCADA communications between the powerhouse and the intake. December 22, 2021 I 17 • Design Criteria Report L '~ Water Supply Creek Hydroelectric Project r .J~ This page is intentionally left blank. December 22, 2021 I 18 Prepared for: Inside Passage Electric Cooperative Prepared by: HDR Engineering Anchorage, Alaska Table of Contents Water Supply Creek Hydroelectric Project L ""'""" Conceptual Design Report r .J ~ 1. Introduction ....................................................................................................................... 1 2. Hydrology .......................................................................................................................... 2 3. Project Arrangement ........................................................................................................ 4 4. Energy Generation ............................................................................................................ 5 4.1 Assumptions ................................................................................................................ 5 4.2 Results ........................................................................................................................ 5 5. Cost Estimates .................................................................................................................. 6 5.1 Indirect Construction Costs ........... : .............................................................................. 7 5.2 Contingencies .............................................................................................................. 7 5.3 Results ........................................................................................................................ 7 List of Figures Figure 1. Vicinity Map ................................................................................................................. 1 Figure 2. Water Supply Creek Flow Duration Curve ................................................................... 3 Figure 3. Water Supply Creek Average Monthly Flow ................................................................ 3 Figure 4. Water Supply Creek Average Monthly Generation ...................................................... 6 List of Tables Table 1. Water Supply Creek Project Parameters ...................................................................... 5 Table 2. Energy Summary ......................................................................................................... 6 Table 3. Cost Estimate Summary ............................................................................................... 7 List of Appendices Appendix A: Supporting Documentation i I September 2022 1. Introduction Water Supply Creek Hydroelectric Project L "'""" Conceptual Design Report r J ~ HDR was retained by Inside Passage Electric Cooperative (IPEC) to perform design of a small hydroelectric project on Water Supply Creek near Hoonah, AK. The project is located about 5 miles south of Hoonah as shown in Figure 1. Figure 1. Vicinity Map 1 I September 2022 160 140 120 100 t5 '!:-80 0 w:::: 60 40 20 0 0 10 Water Supply Creek Hydroelectric Project L "", Conceptual Design Report r ,.1' Water Supply Creek Flow Duration Curve 20 30 40 50 60 70 80 90 100 Probability of Exceedance Figure 2. Water Supply Creek Flow Duration Curve 18.0 16.0 14.0 12.0 $.! (.) 10.0 ~ 8.0 0 w:::: 6.0 4.0 2.0 0.0 Water Supply Creek Average Monthly flow I I OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP Figure 3. Water Supply Creek Average Monthly Flow 3 I October 2022 Table 1. Water Supply Creek Project Parameters ITEM VALUE Headwater, ft Turbine centerline, ft Penstock len th, ft Access road, mi Transmission line, mi Net Head, ft Desi gn Flow, cfs Capacity-' kW Avg. Inflow, cfs Active Storage , AF t r 4. Energy Generation 750 386 4450 0.35 0.65 349 14 350 10 0 Water Supply Creek Hydroelectric Project L "'\"'"} Conceptual Design Report r J ' The energy generation for the projects was estimated using HDR's proprietary software "Hydroelectric Evaluation Program" (HEP). HEP has been specifically designed to model run- of-river operations. HEP uses tabulated daily flows, turbine and generator efficiencies, friction coefficients and physical parameters to simulate energy production through a period of record. Turbine and generator efficiencies are determined from tables. Output from HEP consists of effective capacity rating of the unit(s), simulated production in MWh, percent operating time and overall plant factor. 4.1 Assumptions The following are the key assumptions used in modeling energy production: • A continuous environmental flow release of 1 cubic foot per second (cfs) into the bypass reach between the intake and the tailrace. • Turbine and generator efficiencies based upon submittals from other similar projects. • The penstock size was assumed to 20" dia. x 0.25" steel and 24" dia. SDR 13.5 HOPE. These sizes were selected to limit head loss to 4% during maximum diversion to maximize installed capacity. • Losses totaling 3% for station service, transformer losses, transmission losses and scheduled downtime. 4.2 Results Using these assumptions and the project configuration described above, the estimated average annual energy generation for the project is shown below in Table 2 and Figure 4. This estimate 5 I October 2022 Water Supply Creek Hydroelectric Project L ""\""" Conceptual Design Report r J ~ address issues such as frequency control or power factor. To address these issues, the cost of a governing battery system has been included as part of project development. 5.1 Indirect Construction Costs Indirect construction costs associated with engineering, construction management, licensing, permitting and the Owner's internal costs were added to the direct construction cost estimate as either percentages or lump sum amounts. 5.2 Contingencies A contingency of 25% was added to the total of the direct and indirect construction costs to reflect the uncertainty of the layout and design that won't be resolved until later in the development process. An additional 25% contingency was added to reflect geotechnical uncertainty associated with the intake access road cut and uncertainty associated with inflation and material availability. 5.3 Results The results are shown in Table 3 below. A detailed estimate is included in Appendix A. Table 3. Cost Estimate Summary Direct Construction Costs =------ Cantin ency Eng ineering , Licensin Owners Administration Construction Mana ement Total Proj ect Costs $50,000 $100,000 $150,000 $10,400,000 7 I October 2022 WATER SUPPLY CREEK HYDROELECTRIC PROJECT OPINION OF PROBABLE COST Item I Quanti tv Unit Unit Cost Amount 330 LAND AND LAND RIGHTS .1 Land Rights -Generation Plant LS $ .2 Royalty on materials LS $ 5,000 $ 5,000 .3 Construction Surveying LS $ 40,000 $ 40,000 331 STRUCTURES AND IMPROVEMENTS .1 POWERHOUSE .1 Excavation 1400 CY $ 50 $ 70,000 .2 Concrete (structural) 100 CY $ 2,500 $ 250,000 .3 Concrete (mass) CY $ .4 Building LS $ 150,000 $ 150,000 .5 Misc. Metals LS $ 25,000 $ 25,000 .6 HVAC, Plumbing & Electrical LS $ 350,000 $ 350,000 .7 Grounding Grid LS $ 5,000 $ 5,000 .8 Overhead crane LS $ 85,000 $ 85,000 .9 Care of Water/Diversion LS $ 25,000 $ 25,000 332 RESERVOIRS, DAMS AND WATERWAYS .1 SITE WORK .1 Clearing ACRE $ 5,000 $ 5,000 .2 Drainage/Erosion Control LS $ 1,000 $ 1,000 .2 DAM AND SPILLWAY .1 Excavation LS $ 10,000 $ 10,000 .2 Care of Water/Diversion LS $ 25,000 $ 25,000 .3 Backfill CY $ .4 Concrete (structural) 30 CY $ 2,500 $ 75,000 .5 Concrete (mass) 170 CY $ 1,250 $ 212,500 .6 Rip rap 340 CY $ 50 $ 17,000 .3 INTAKE .1 Excavation LS $ 10,000 $ 10,000 .2 Care of Water/Diversion LS $ 40,000 $ 40,000 .3 Trash racks LS $ 2,500 $ 2,500 .4 Shutoff valve w/operator 1 LS $ 50,000 $ 50,000 .5 Concrete (structural) 50 CY $ 2,500 $ 125,000 .6 Concrete (mass) CY $ .7 Misc. Metals LS $ 40,000 $ 40,000 .8 Misc. electrical & mechanical LS $ 50,000 $ 50,000 .9 Valve House Building LS $ 15,000 $ 15,000 .10 MIF valve, piping & operator LS $ 10,000 $ 10,000 .4 SLUICEWAY .1 Excavation 1 LS $ 5,000 $ 5,000 .2 Concrete (structural) 30 CY $ 2,500 $ 75,000 .3 Gate w/operator LS $ 70,000 $ 70,000 .5 WATER CONDUCTORS AND ACCESSORIES .1 PENSTOCK .a Clearing LS $ 25,000 $ 25,000 .b Benching/excavation LS $ 1,400,000 $ 1,400,000 .c Slope stabilization/armor LS $ 50,000 $ 50,000 .d Penstock Material 20"x0.25" steel 134 LF $ 100 $ 13,400 24" SDR 13.5 HOPE 4316 LF $ 75 $ 323,700 Shipping 13 EA $ 5,000.00 $ 65,000 Couplings/special fabrications 1 LS $ 10,000 $ 300,000 Installation Steel 134 LF $ 50 $ 6,700 HOPE 4316 LF $ 20 $ 86,320 .e Thrust blocks 8 CY $ 2,500 $ 20,000 333 WATERWHEELS, TURBINES AND GENERATORS .1 Supply LS $ 650,000 $ 650,000 .2 Shut-<>ff valve 1 LS $ 50,000 $ 50,000 .3 Initial Installation & transport 1 LS $ 20,000 $ 20,000 .4 Final Installation 5 DAYS $ 3,000 $ 15,000 .5 Startup & testing 5 DAYS $ 4,000 $ 20,000 ~ I ~ ~ i • GENERAL WATER SUPPLY CREEK HYDROELECTRIC PROJECT GENERAL CONSTRUCTION ~ ......... ---- ......... ~ ''~ •.. ·,,..o .. •'-c::::::t:" PROJECT LOCATION MAP PROJECT AREA MAP DRAWING INDEX CIVIL CONTINUED G-001 PROJECT MAP & DRAWING INDEX C-31C PENSTOCK AND ACCESS ROAD, PLAN AND PROFILE, STA. 0+00 TO STA. 16+44 G-002 PROJECT SITE MAP C-321) ACCESS ROAD AND PENSTOCK. TYPICAL DETAILS AND SECTIONS C.S01 POWERHOUSE SITE PIAN CIVIL C-521 PCJIIVERHOUSE PlAN C-5.22 POWERHOUSE SECTIONS, SHEET 1 C·101 INTAKE SITE PLAN C-102 INTAKE PLAN C-111 INTAKE SECTIONS, SHEET 1 C·112 INTAKE SECTIONS, SHEET 2 35% DESIGN REVIEW 08/26/2022 ! --·--~cl ~)~ = 1 .IPEC . ~PROJECTMAP& " CHECKED BY ---DRAWING INDEX i DRAWN BY IN:S!De~elb::l"M:.~ ~ O<'>CNED WATER SUPPLY CREEK -~ CHE~~'S~~~ HYDROELECTRIC PROJECT FILENAME CHlOLdW9 SHEET 11 .su, ... ,., OESCR,Pno>< PROJECT , ..... 103>1000 HOONAH. ALASKA 1 sc.J AS-SHOWH r G-OO 1 l ~ I ~ I DIVERSION/INTAKE /- .r, J If----- / """ OESCR!PllOH PLAN ~ PROJECT ~~~. BERKSHIRE ~ m~ CHECKED BY -BY DE"""'" .,....., OiECK£1> BY PROJECT truMSERi iOJJlOOO EXISTI NG ACCESS ROA D 1 11-=~~1 WATER SUPPLY CREEK HYDROELECTRIC PROJECT HOONAH, AlASKA PROJECT SITE MAP rn~r I WSC-BIIM-TOPO.dw g L._ ______ r SCAU ,. _ 200· SHEET G-{)02 ~ s ~ ~ ~ " i I I I I ~ A._ 1-------~------' I ...-~ ~ ..-- ..--~ LEVEL ~ '-STA 0+00 TRANSMITIER I ~ INSTREAM FLOW RELEASE I I ! '~ !I ;c;;:,. 4 t 4 lfm k;l liii"'"', ' ' ~ I PROJECT "'""'"I'· BERKSHIRE ~-~GNEO ~I I ~)~ I I I C><i~~·~ . I WATER SUPPLy CREEK FILENAWE C-!02 .. , -: . . ::::: "I HYDROELECTRIC PROJECT SCAL£ AS-sHowN CHECKED 8Y : I HOONAH, ALASKA PROJECT NU1r119£R 10JJ1000 ISSUE CATE DESCRIPTION 'L------L------ 1/+"•t'-o" 114'••..- • IPEC I ~~~~ INTAKE PLAN -F -1 ~ 1- 1- 8 1- l ~ I • ~ ~ ~ ~ ! EL 753.5 EL 742.0 INTAKE CONTROL BUILDING SECnON SCALE: 1/4~•1'-0" 1'1:\ LI=W..I INTAKE CONTROL BUILDING El. 753.5 SECnON SCtJ..E: 1/4"•1'-0" 6\ U:!W 6" DIA GALVANIZED STEEL VENT PIPE kou..J I f'"' I/4'•Hr 35% DESIGN REVIEW 08/26/2022 ~~ PROJECT N-GER P. """'"''' ~ DESIGNED ~ DE~CNEO § CHECKED 0Y ~ """"' ar WATER SUPPLY CREEK ' I ~)~ ~GNEO HYDROELECTRIC PROJECT I OE~CIIEO HOONAH ALASKA § CHECI<EO 6V , -PROJECT N'Jt.IBER 10JJ1000 tSSUE o.t.TE OES CRIPnON INTAKE SECTIONS SHEET 1 SHEET C-111 ! i ~ i RIPRAP, DAM lREST ~ 1'-o· I ~~"~T~9-~·-o·· ~ )... u-i 1 rEEl ! ! ~i I ·--·-'· 35% DESIGN REVIEWOB/26/2022 I l ~ 3 -! --.JL_ ~~£:~~'~' "~::~:~~:~ I""' HOONAH , ALASKA SC.O.E AS SHOWN -~ C-112 / ....-/ 77 , 76 76 75 l ~ 75, I ~ 74 ~ " ~ d 73 I 72 72; 71 71 70 ! 1+00 ~--~ 2+00 ---- EXISTING GROUND~­SURfACE FINAL ACCESS ROAD GRADE ·1.00% ·1-~ PENSTOCK PROflL£ 3+00 4+00 5+00 ' ' ' ~-----------------~' --·--'\. ·--~::~-::_-:::::::.----·· /" ' ' ---~ f',f~ _./,---._, --...,_/''./'/'" --' , -I • ~ ~-=--~~~~---------~ ~J·~_(\ 88 ~~ ~~ it it 6+00 88 ~~ ~" ~~ H 2.00 PVI STA = 10+00.00 PLAN ~ PROFILE PVI E~E~ = 733.00 \ PVISTA=1D>OO.aa _/ PVI ELEY = 730.00 7+00 8+00 9+00 10+00 1 1+00 12+00 -775 -770 :·76!1 +760 .f.,., t 750 1745 li • ·740 ;= f 735 ~ +730 d ~ \ ~~~ +725 720 -715 705 13+00 14+00 15+00 Je+OO 17+00 \B+OO 19+00 ;c ----~---. ~ PROJECT t.j,f,NAG[R P. BERI<SHIRE I E)] ::~ I I i PE:C G I PENSTOCK AND ACCESS ROAD 5 ""'"'" BY PLAN AND PROFILE I """' BY --............ ~ STA. 0+00 TO STA. 18+44 -~ WATERSUPPLYCREEK ~ NED HYDROELECTRIC PROJECT J ''-""'"'I .,.,_, __ TOP<l.dog SHEET ' ~~ _I -_-:;:;,..,_ -~.~ I _,___ I c-3<0 STATION ~5% DESIGN REVIEW 08/26/2022 I ~ I 4" SURFACE COUR 2'-J' BOULDERS 0 6'-8' o.c. ~· 2'-3' BOULDERS 0 6'-8' o.c. il ~ EXISTING~ GROUND """ 16'-o" ROAD <f. PENSTOCK <f. I ROAD CUT SECTION WITH 24" HOPE PIPE SCALE: 1/.4" z l' -0" I I I EXISTING~ GROUND """ 16'-o" ROAD <f. I ALTERNATE ROAD CUT SECTION WITH 24" HOPE PIPE PENSTOCK <!. I PENSTOCK PROFILE ELEVATION 16'-0" / :>,.I ~~ +" SURFACE COURSE ROAD FILL SECTION WITH 24" HOPE PIPE SCALE' 1/4" • 1' -0" 24" 00 HOPE PIPEUNE PIPELINE WARNING RIBBON lYPE A MATERIAL, 1 2 " COVER ALL SlOES PENSTOCK T'IPICAL SECTION SCALE: 1/4" "' 1' -0~ 4" SAlVAGED ORGANICS. lYPICAL BOTH SIDES EXISTING GROUND j.g r_.d i j"" i ~""•· 'I' -' -v ~ ~i I _w _ _,_., 35% DESIGN REVIEWQS/26/2022 I a DESlCNED ~. L" ~ CH;.":': I i PEC I ACCESS ROAD AND PENSTOCK ~ r ~ ~ '""'" " """""""""'"""""' TYPICAL SECTIONS AND DETAILS ~ J -. ~-...;::"~ ·~·-,:'~=7.,'-=CT ~~-1•m 1~ '--HOONAH, Al.ASKA ' I SCALE: 1/<" "' t;-320 A t s ~ / .t'al•r Supply Cree%: -- .. ___ _ PENSTOCK I I I I ----_ ..... ,, \ \ 1\_ ~ El<!l PO\\tR I O~"';;ONMUNICA TONS .r AN(J <. / ro IN YAKE " I ' ~' -- ... __ ~--- -- wtWPOv.El!HOU~ ACCCSS RO•o "" ------- --... -....... .... ............... ... ·-·-.::0---------------------- CI<OSS•<: '•,, """ "-"'-"\;" "'-"-"'-'"-"--..::::,._ ------"<-.,_ "-.. -· ---.. -----------------------------------OVERHE~~0N~~~ONS ~~DG~TINA FAlLS J ~ POWERHOUSE ! ~~ § ~ PROJECTW<W:ERP BERKSKI..: 35% DESIGN REVIEW 08/26/2022 I ~ ~~G~ '-. OESICN£0 i ffi CKECKEO 8Y I I IPEC I J POWERHOUSE § ""'"" BT SITE ~ ""'""" ....,..,.......""""'"""""""' PLAN • """'" WATER SUPPL. Y CREEK ISSUE "'" OESCR""'ON .~:;;~: IOOZOOJ9 HYDROELECTRIC PROJECT I el£NAW E IW5C-Bou Nop .OWG I SHEET HOONAH, ALABKA """" >IS-SHOWN -I C-50 1 A i i ~ i j ( ~ ....__ 't TURBINE AN D PENSTOCK / SS XFMR 10'-0"W x 1 0 '-0~H ROLL-U P METAL DOO R l2'-0 " PLAN SCJrrU ; •1•"·•·-o• J'-O"W ll 6 '-.S"H UETAL DOOR 9 il -ffi bo ~ t j"" i ~i I -~-,--35% DESIGN REVIEWOS/26/2022 ~ .,...., I i ~)~ CHf:·:: I iPEc .R POWERHouse PLAN § 0Ro\WN8'1" --II ~ DESICNE O INIIIDC~~~ ~ OE'SIC NEo WATERSUPPLYCREEK ' : ----~..':-.~ HYDROELECTI<OCPRMCT I J -j ·~·~ .... HOONAH, ALASKA SCALE AS -S>+OWN I C-521 ! i ~ ~ ~ ' SECTION SCALE : T/4.•1'-0" EL. 402..5 PRE -ENGINEERED hiETAL BUILDING FF EL. 364.0 TAILRACE RETURN TO WATER SUPPLY CREEK I bL fi.'\ L.:..J kJ ~ i j"" I ~~ I -~-'-'" 35% DESIGN REVIEWOS/26/2022 I I ~: -; --~~L -~~~~f~ row;:~:~:"""'r HOONAH, AI.ASKA sc..u: AS '"""' -~ C-522 WATER SUPPLY CREEK HYDROELECTRIC PROJECT OPINION OF PROBABLE COST .... Unl Unit Cost -330 LAND AND LAND RIGKTS .1 Land RiQhts -Generation Plant lS .2 Roya.ltyonmateriala lS 5.000 5.000 .3 ConstructionSui"Je'r'ing lS oiO.OOO 40.000 331 STRUCTURES AND IMPROVEMENTS POWERHOUSE .1Excavation 1400 CY 50 70.000 .2 Concrete (structural) 100 CY 2.500 250.000 .3 Concrete (mass} CY .. ,_,., lS 150.000 150,000 .5 Misc. Meta15 lS 25.000 25.000 .6 HVAC, Pklfl'lbirlA & EJearical lS 350.000 350.000 .7 Groondinp Grid lS 5.000 5.000 .a Overhead crane lS as.tm 85.000 .SCareofWater~ lS 25.000 25.000 332 RESERVOIRS, DAMS AND WATERWAYS .1 SITE WORK .1 Clearing ACRE 5.000 5.000 .2 Drainage/Erosion Control LS 1.000. 1.000 .2 DAM AND SPILLWAY .1 ~ lS 10,(00 10,000 2 Care of Water/Diversion lS 25.tm 25.000 .3 a-u CY .4 Concrete(-30 CY 2.500 75.000 .5 Concrete (mass) 170 CY 1250 212.500 .6 """"" 340 CY 50 17,D:X> .3 INTAKE .1Ext:avation lS 10,000 10,000 .2 CareofWaterl'Diver$io LS 40.000 40.000 .3 Trash racks LS 2.500 2.500 A stuoff valve wi0Pel8tof 1 LS 50.000 50.000 .5 Concrete (strucb.l'al) 50 CY 2.500 125,000 .6 Concrete (man) CY .7 Misc. Metals lS 40.000 40.000 .8 Mi&c.electrical&mechanic:al lS 50.000 50.000 .9 Valve Hou8e Buildinp lS 15.000 15,000 .10 MIFvalve,pi~&OPEMaklr lS 10.000 10,000 .. SWICEWAY .1Excaval:ion 1 lS 5.000 5.000 .2 Concrete (struclural) 30 CY 2.500 75.000 .3 Gatew/cperator 1 LS 70,000 70.000 .5 WATER CONDUCTORS AND ACCESSORIES .1 PENSTOCK .a ClearinA LS 25.tm 25,000 .b~ LS 1,400,(1)0 1,400,000 .c Slope 6tabilizationla l5 50,000 50,000 .d Penstock M- 20'><025""""' 134 lF 100 13.<00 24• SOR 13.5 HOPE 4316 lF 75 323,700 ·-13 EA 5,000.00 65,000 ~fabrications 1 lS 10,000 300,000 -steel 134 LF 50 6,700 HOPE 4316 LF 20 86,320 .e Thrust blocks B CY 2.500 20.000 333 WATERWHEELS. TURBINES AND GENERATORS .1 """"' LS 650,1Dl 650,000 .2 ........ ..-LS 50,000 50.000 .3 lntiallnstallalion&transporl LS 20,000 20.000 .4 Final Installation DAYS 3,000 15,000 .5 Staltl..o&testin!l DAYS 4,000 20.000 33< ACCESSORY ELECTRICAL EQUIPMENT .1 .__, lS 200,000 200,000 .2 PLC Controls, Par'l8, Generator 'JVirino lS 150,000 150,000 335 MISC. POWER PLANT EQUIPMENT 336 ROADS, RAILROADS AND BRIDGES .1 _.,... lS 50,000 50.000 .2 -LS 75,000 150.000 350 lAND AND LAND RJGHTS land riahts • transmiuion line LS STRUCTURES AND IMPROVEMENTS 352 [TRANSMISSION FACIUTY) .1 Substation foundations lS .2 CD spill containment lS .3 Grounding grid lS 353 STA7lON EQUIPMENT .1 Generator step.up Transformer· 500 t<VA lS 85,000 85,000 2 """""""'" LS 25.000 75,000 .3 S~AI'Testors LS 5,000 15,000 .4 """""""',_, LS 750,000 750.000 356 OVERHEAD CONDUCTORS & DEVK::ES .1 OVerhel!ldTnll"'llmissianline 1.00 Ml • 250.000 250,000 .2 Buried Transmission liM Ml .3 ROWCiearinA 1.00 Ml 10,000 10.000 397 Commi.Dik:.uan and Control Equipment .1 Fiberoptieca.blll 1.0 LS 00,000 00,000 .2 '""""""" 2.0 EA 7,500 15,000 Tatal Olrwct:ConstructianCosts 6,728.120 """"-"" -3.364.060 -lkonsino • ....,....,,_ 50.000 Owner's Genenll Admirilidration & overhead 100,000 c..---150,000 ~ Hjplc:ontingenpcytorefiectQ&Qiechri&b&matefialinftation&~ ··-10.392,1&G Interest During ComtNction ""' 12 """""" TOial 10.392.000