HomeMy WebLinkAboutFivemile Creek Hydro REF IX Application & Supporting DocsRenewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 1 of 32 7/8/14
Application Forms and Instructions
This instruction page and the following grant application constitutes the Grant Application Form for
Round VIII of the Renewable Energy Fund. A separate application form is available for projects
with a primary purpose of producing heat (see 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
Request for Applications (RFA) and both application forms is available online at:
http://www.akenergyauthority.org/Programs/Renewable-Energy-Fund/Rounds#round9.
· If you need technical assistance filling out this application, please contact Shawn Calfa, the
Alaska Energy Authority Grants Administrator at (907) 771-3031 or at scalfa@aidea.org.
· 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.
· 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 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, 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
IX 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.
REMINDER:
· Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials
submitted to the Authority 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.
Renewable Energy Fund Round IX
Grant Application - Standard Form
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· 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 the Authority. 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.
Renewable Energy Fund Round IX
Grant Application - Standard Form
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SECTION 1 – APPLICANT INFORMATION
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)
Chitina Electric Inc. (CEI)
Type of Entity: Fiscal Year End:
Native Corporation Rural Utility 2015
Tax ID #
Tax Status: ☒☒☒☒ For-profit ☐☐☐☐ Non-profit ☐☐☐☐ Government (check one)
Date of last financial statement audit:
Mailing Address: Physical Address:
Chitina Electric Inc.
P.O. Box 88
Chitina, AK 99566
Telephone: Fax: Email:
(907) 823-2220 (907) 823-2202 mnfinn@cvinternet.net
1.1 Applicant Point of Contact / Grants Manager
Name: Martin Finnesand Title: President/General Manager
Mailing Address:
P.O. Box 88
Chitina, AK 99566
Telephone: Fax: Email:
(907) 823-2223 (907) 822-4006 mnfinn@cvinternet.net
1.1.1 APPLICANT SIGNATORY AUTHORITY CONTACT INFORMATION
Name: Martin Finnesand Title: President/General Manager
Mailing Address:
P.O. Box 88
Chitina, AK 99566
Telephone: Fax: Email:
(907) 823-2223 (907) 822-4006 mnfinn@cvinternet.net
1.1.2 Applicant Alternate Points of Contact
Name Telephone: Fax: Email:
Harry Billum (907) 823-2220 (907) 823-2202 N/A
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Grant Application - Standard Form
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1.2 Applicant Minimum Requirements
Please check as appropriate. If applicants do not meet the minimum requirements, the application
will be rejected.
1.2.1 Applicant Type
☒☒☒☒ An electric utility holding a certificate of public convenience and necessity under AS 42.05, or
☐☐☐☐ An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
☐☐☐☐ A local government, or
☐☐☐☐ A governmental entity (which includes tribal councils and housing authorities)
1.2 APPLICANT MINIMUM REQUIREMENTS (continued)
Please check as appropriate.
☒☒☒☒ 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 necessary. (Indicate by checking the box)
☒☒☒☒ 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 by checking the box)
☒☒☒☒ 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
http://www.akenergyauthority.org/Programs/Renewable-Energy-Fund/Rounds#round9. (Any
exceptions should be clearly noted and submitted with the application.) (Indicate by
checking the box)
☒☒☒☒ 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)
Renewable Energy Fund Round IX
Grant Application - Standard Form
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SECTION 2 – PROJECT SUMMARY
2.1 Project Title
Provide a 4 to 7 word title for your project. Type in the space below.
Fivemile Creek Hydroelectric Project
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 Google 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 at 907-771-3031.
The project is located on Fivemile Creek, which crosses the Edgerton Highway at mile 28,
approximately 5 miles north of Chitina, adjacent to the Chitina Airport. The project area is shown
on USGS quad map Valdez C-2. Latitude 61°34’56.14’’ N, Longitude 144°26’11.34’’
2.2.2 Community benefiting – Name(s) of the community or communities that will be the
beneficiaries of the project.
The community of Chitina will benefit from the project. The project will provide clean, lower cost
energy to residents, local businesses and public facilities. In addition, through the use of
dispatchable load heaters / boilers, the project will provide significant reductions in heating fuel
consumption at the community hall, HUD housing complex, hotel and ADOT facilities at the Chitina
Airport.
2.3 Project Type
Please check as appropriate.
2.3.1 Renewable Resource Type
☐☐☐☐ Wind ☐☐☐☐ Biomass or Biofuels (excluding heat-only)
☒☒☒☒ Hydro, Including Run of River ☐☐☐☐ Hydrokinetic
☐☐☐☐ Geothermal, Excluding Heat Pumps ☒☒☒☒ Transmission of Renewable Energy
☐☐☐☐ Solar Photovoltaic ☐☐☐☐ Storage of Renewable
☐☐☐☐ Other (Describe) ☐☐☐☐ Small Natural Gas
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
☐☐☐☐ Reconnaissance ☐☐☐☐ Final Design and Permitting
☐☐☐☐ Feasibility and Conceptual Design ☒☒☒☒ Construction
Renewable Energy Fund Round IX
Grant Application - Standard Form
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2.4 Project Description
Provide a brief one paragraph description of the proposed project.
The proposed Fivemile Creek Hydroelectric Project consists of the following major components:
1. Creek diversion/intake structure – The proposed diversion / intake structure would divert a
portion of the flow from Fivemile Creek into a pipeline (penstock) and would also create a
small impoundment that would provide freeze protection.
2. Penstock – The proposed penstock will transport water from the intake structure to the
turbine powerhouse. The penstock will be buried, and will consist of HDPE pipe (lower
pressure reach) and welded steel pipe (high pressure reach). The pipe will range from 12-
20 inches in diameter and will be roughly 10,400 feet long. The purpose of the penstock is
to pressurize and deliver the water from the creek to the hydro turbine power plant.
3. Diversion Access Road – An access road will be constructed between the existing jeep trail
and the proposed diversion / intake structure location. This road will be approximately
2,850 feet long and will provide access for construction and maintenance of the diversion /
intake structure.
4. Turbine Building – The turbine building will house a 300 to 400 kW pelton wheel turbine /
generator and controls. The building foundation will include a tailrace that will return water
from the penstock to the creek.
5. Electrical Intertie – An existing 4-mile long overhead transmission line will connect the
turbine power plant step up transformer to the community grid. The transmission line was
constructed utilizing federal grant funds in 2008.
6. Diesel Integration – The proposed hydro switchgear will be linked to the community’s
existing diesel powerhouse controls. The diesel plant will function primarily as a backup
system after the hydro is constructed.
7. Heat Recovery – An electric boiler will be installed in the existing diesel module and
connected to the existing hydronic heat recovery system currently utilized to heat the clinic
building and the aboveground storage tank used to store diesel fuel for the diesel plant.
The boiler will provide a dual purpose; provide frequency control during operation of the
hydro turbine, and allow for continued utilization of the existing heat recovery system
infrastructure.
8. Excess energy utilization – During most times of the year, excess water flow will be
available to produce electricity above and beyond the community’s electric demand. During
these times, the excess energy will be available for beneficial use. As currently envisioned,
the excess energy will be used for space heating during winter months via electric boilers
installed in various community buildings, residential living facilities, and commercial
facilities. In the summer, when flow in Fivemile Creek is higher, there will be considerable
excess energy available for commercial and industrial uses such as ice making, sawmill
operation, etc. The excess energy will be provided on a “dispatchable” basis and therefore
will be sold at a lower rate. The excess energy will “displace” diesel fuel currently utilized
for space heating, and will provide inexpensive power for commercial development while
also providing an additional revenue stream for the utility.
2.5 Scope of Work
Provide a 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.
The current request is for Phase IV (construction, commissioning, operation and Reporting)
including all tasks related to advertising, bidding, material procurement, freight, construction,
construction management, grant management, contract administration, startup and commissioning
and reporting. As currently envisioned the project will be constructed using a “design-build” model.
Utilizing the remaining funds from previous REF awards, the current 65% design drawings and
specifications will be used to prepare design-build project documents.
Renewable Energy Fund Round IX
Grant Application - Standard Form
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Chitina Electric is also pursuing funding from other sources. CEI intends to apply for the next round
of the USDA High Energy Grant Program. Also, CEI is investigating the possibility of a low interest
loan to fund a portion of the project through the USDA Electric Infrastructure Loan Program and/or
the AEA Power Project Loan Fund.
SECTION 3 – Project Management, Development, and Operation
3.1 Schedule and Milestones
Criteria: Stage 2-1.A: The proposed schedule is clear, realistic, and described in adequate detail.
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 in 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 of your proposed project. Add additional rows as needed.
Milestones Tasks
Start
Date
End
Date Deliverables
Grant Application
Submit REF Round IX
9/15/15
Schedule Assumes full
funding of project
AEA Evaluation /
Recommendations
9/15/15 1/30/16
Finalize Permitting with Key
Agencies (ADOT, ADF&G,
etc.)
After project is funded
and firm construction
schedule is established,
CEI will submit final
permit applications to the
various agencies for
approval. The cost of
final permitting will be
funded using remaining
funds from previous REF
grant awards. 2/1/16 3/15/16
Final permitting decisions
from these key agencies.
Note that this task will be
completed using funds
from a previous REF
award.
Prepare Design / Build Bid
Documents
· Prepare design/build
bid documents based
on current (65%
level) plans.
· Develop performance
based project
specifications
· Incorporate any
necessary revisions
based upon final
permitting efforts. 2/1/16 5/1/16
Design/Build Bid Package
Note that this task will be
completed using
previously Awarded REF
Funding
Receive REF IX Funding · Finalize grant
agreement. 2/1/16 2/1/17
Bid Project / Contractor
Selection
· Advertise – The
project will be
advertised in
appropriate business
circulars in Alaska
and the Pacific 2/15/17 3/15/17
Executed Construction
Contract
Renewable Energy Fund Round IX
Grant Application - Standard Form
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Northwest (the Plans
Room, AE Plans,
Seattle Journal of
Commerce, etc).
· Award Project – The
project will be
awarded t the
contractor that
provides the lowest
responsive and
responsible bid.
· Execute Construction
Contract
Construction · Value Engineering -
The successful design
build contractor will
prepare final design
drawings based upon
the concept drawings
and performance
specification included
in the bid documents.
· Submittal Review -
Contractor will
submit required
submittals for review
by the owner’s
representative.
· Procurement –
Contractor will
procure all necessary
materials.
· On Site Construction
Activities
· Integration and
Testing
· Operation and
Maintenance Manual
Preparation,
· As Built / Record
Drawings 4/1/17 10/31/18
Final Design with Value
Engineering
Approved submittals.
As-built documents.
Operation and
Maintenance Manual.
Final Acceptance,
Commissioning, and Startup
The contractor will be
required to provide
operator training at
startup. 11/1/18 12/1/18
Operations Reporting Reports will be provided
to AEA as required by the
grant conditions.
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Grant Application - Standard Form
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3.2 Budget
Criteria: Stage 2-1.B: The cost estimates for project development, operation, maintenance, fuel,
and other project items meet industry standards or are otherwise justified.
3.2.1 Budget Overview
Describe your financial commitment to the project. List the amount of funds needed for project
completion and the anticipated nature and sources of funds. Consider all project phases, including
future phases not covered in this funding request.
Residents and commercial businesses in Chitina are subject to high energy costs which vary
dramatically due to fluctuations in the world oil market. Chitina Electric is fully aware of the negative
impacts of fossil fuel-based energy and is financially committed to the proposed hydroelectric
project. However, CEI is a small utility and does not have the financial resources to pursue a
project of this magnitude without grant assistance. At this time CEI intends to pursue several
grants in addition to the Renewable Energy Fund, including:
· USDA High Energy Cost Grant Program – CEI will apply for the next available USDA
HEGP.
· Indian Community Development Block Grant (ICDBG, HUD) – The local corporation is
currently utilizing ICDBG grant funds to upgrade community housing. The community
housing project is expected to be completed within the next year. Afterwards, the
Corporation intends to apply for a new ICDBG grant in support of the proposed
hydroelectric project.
· USDA Community Facilities Grant Program – CEI will submit an application for the 2016
Community Facilities Grant Program.
3.2.2 Budget Forms
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, III. 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 project. 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 at 907-771-3031 or by emailing the Grants
Administrator, Shawn Calfa, at scalfa@aidea.org.
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 10 of 32 7/8/14
Milestone or Task
RE- Fund
Grant
Funds
Grantee
Matching
Funds
Source of Matching
Funds:
Cash/In-kind/Federal
Grants/Other State
Grants/Other
TOTALS
CONSTRUCTION
(List milestones based on phase
and type of project. See sections
2.3 thru 2.6 of the RFA )
$ $ $
Prepare Business Operating Plan $ 20,000 $
$ 20,000 (Covered by
previous REF
awards)
Finalize Permitting $30,000 $
$ 30,000 (Covered by
previous REF
awards)
Prepare Design / Build Bid
Documents $50,000 $
$ 50,000 (Covered by
previous REF
awards)
Construction $3,000,000 $2,500,000 Future Federal Grants $ 5,550,000
Bidding, CM/CA, $300,000 $ $ 350,000
Operations Reporting $0 $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $3,500,000 $ $ 6,000,000
Budget Categories:
Direct Labor & Benefits $ $ $
Travel & Per Diem $50,000 $ $ 50,000
Equipment $ 300,000 $ $ 300,000
Materials & Supplies $ 2,000,000 $ 1,500,000 $ 3,500,000
Contractual Services $ 150,000 $ 250,000 $ 400,000
Construction Services $ 850,000 $ 750,000 $ 1,600,000
Other $ 150,000 $ $ 150,000
TOTALS $3,500,000 $ $ 6,000,000
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3.2.3 Cost Justification
Indicate the source(s) of the cost estimates used for the project budget.
The project construction cost estimate was prepared by CRWE Engineering Group, LLC. The cost
is based upon 65% level design drawings and input from multiple contractors with experience in
applicable fields.
3.2.4 Funding Sources
Indicate the funding sources for the phase(s) of the project applied for in this funding request.
Grant funds requested in this application $3,400,000
Funds from previous REF grant awards $100,000
In-kind match to be provided $ 2,500,000
Total costs for project phase(s) covered in application (sum of above) $6,000,000
3.2.5 Total Project Costs
Indicate the anticipated total cost by phase of the project (including all funding sources). Use
actual costs for completed phases.
Reconnaissance $
Feasibility and Conceptual Design $277,000
(completed)
Final Design and Permitting $303,000
(Completed)
Construction $6,000,000
Total Project Costs (sum of above) $6,580,000
3.2.6 Operating and Maintenance Costs
O&M costs can be estimated in two ways for the standard application. Most proposed RE 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.
Options O&M Impact of proposed RE project
Option 1: Diesel generation ON
For projects that do not result in shutting down
diesel generation there is assumed to be no
impact on the base case O&M. Please indicate
the estimated annual O&M cost associated with
the proposed renewable project.
$
Option 2: Diesel generation OFF
For projects that will result in shutting down
diesel generation please estimate:
1. Annual non-fuel savings of shutting off
diesel generation
2. Estimated hours that diesel generation
will be off per year.
3. Annual O&M costs associated with the
proposed renewable project.
1. $61,000 (Includes $15,000 in
materials/contract services and $46,000 in
labor)
2. Hours diesel OFF/year: 7,800 hours
3. $51,000 (Includes $5,000 in
materials/contract services and $46,000 in
labor)
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Grant Application - Standard Form
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3.3 Project Communications
Criteria: Stage 2-1.C: The applicant’s communications plan, including monitoring and reporting, is
described in adequate detail.
Describe how you plan to monitor the project and keep the Authority informed of the status.
The project will be managed by a combination of Owner (Chitina Electric Inc) and CRW
Engineering Group staff. CRW will act as the owner’s representative and provide technical
assistance on an as-needed basis. Project accounting services will be provided by Clear Idea
Accounting and Consulting (CIAC). CIAC also provides accounting services to Chitina Native
Corporation and Chitina Electric Inc. The following methods will be implemented to insure
seamless communication between the project team:
· A weekly project status meeting / teleconference including representatives from the
successful design / build firm, CEI, and CRW Engineering Group.
· During construction, a CEI employee will be designated as the Onsite Project
Representative (OPR). The OPR will observe the contractor, prepare daily reports
documenting contractor activities, and facilitate communication between the Contractor and
the project management team.
· During construction, the Owners Representative (CRW) will make periodic site inspections
to monitor the progress and quality of the work.
· A project status report will be submitted to the AEA on a quarterly basis. The report will
summarize work completed during the reporting period and work planned for the upcoming
period. The report will also identify any anticipated challenges and proposed solutions or
mitigation measures, and provide a budget summary.
3.4 Operational Logistics
Criteria: Stage 2-1.D: Logistical, business, and financial arrangements for operating and
maintaining the project throughout its lifetime and selling energy from the completed project are
reasonable and described in adequate detail.
Describe the anticipated logistical, business, and financial arrangements for operating and
maintaining the project throughout its lifetime and selling energy from the completed project.
The proposed project will be owned and operated by Chitina Electric, Inc., a subsidiary of Chitina
Native Corporation which has been serving the community for over 30 years. CEI’s existing
management structure and administrative department will remain in place. The overall operation of
the utility will change little as a result of this project. The Utility will continue to operate and
maintain its facilities, and bill its customers for services provided. It is anticipated that operation
and maintenance efforts will increase initially while CEI’s staff familiarize themselves with the
Hydro plant. However, once startup is completed, the Hydro plant should require about the same
level of maintenance as the existing diesel system. The diesel system will need to be exercised on
a regular basis to insure it is ready for backup service. Similarly, during periods of low water when
the diesel plant is carrying the load, the Hydro will need to be maintained in a ready condition.
Operation, maintenance and management requirements will be addressed in detail in the project
Business Plan. The Plan will provide an organizational structure to help the Utility transition to
Hydro power. In addition to the business plan, administrative and operator training will be
provided on an as-needed basis as part of the startup services.
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CEI will monitor, record and report savings and benefits afforded by the proposed hydro plant. The
hydro plant will be equipped with an advanced SCADA system. The system will be programmed to
record and provide reports of whatever parameters are necessary. The information will be
available in real time over the internet, similar to the community’s existing diesel plant.
SECTION 4 – QUALIFICATIONS AND EXPERIENCE
4.1 Project Team
Criteria: Stage 2-2.A: The Applicant, partners, and/or contractors have sufficient knowledge and
experience to successfully complete and operate the project. If the applicant has not yet chosen a
contractor to complete the work, qualifications and experience points will be based on the
applicant’s capacity to successfully select contractors and manage complex contracts.
Criteria: Stage 2-2.B: The project team has staffing, time, and other resources to successfully
complete and operate the project.
Criteria: Stage 2-2.C: The project team is able to understand and address technical, economic, and
environmental barriers to successful project completion and operation.
Criteria: Stage 2-2.D: The project team has positive past grant experience.
4.1.1 Project Manager
Indicate who will be managing the project for the Grantee and include contact information, and a
resume. In the electronic submittal, please submit resumes as separate PDFs if the applicant
would like those excluded from the web posting of this application. 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.
Mr. Martin Finnesand,
President, Chitina Electric Inc.
Tel: (907) 823-2223
Cell: (907) 259-3587
Email: mnfinn@cvinternet.net
4.1.2 Expertise and Resources
Describe the project team including the applicant, partners, and contractors. Provide sufficient
detail for reviewers to evaluate:
• the extent to which the team has sufficient knowledge and experience to successfully
complete and operate the project;
• whether the project team has staffing, time, and other resources to successfully complete
and operate the project;
• how well the project team is able to understand and address technical, economic, and
environmental barriers to successful project completion and operation.
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. Include brief resumes for known key personnel and contractors 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
Chitina Electric, Inc. (CEI)
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Martin Finnesand, (CEI President), will be the project manager and primary contact from CEI. He
has over 25 years of experience in his position with CEI and is very familiar with past and present
construction projects in the community. CEI has administered the local utility since its inception in
1981. Utility personnel have attended AVTEC training and are certified as powerhouse operators;
they also have hydro operations training. It is the intent that the local operators will be involved
with QA/QC during construction of the proposed hydro facility to enhance their understanding of
system operation and maintenance requirements. The construction contractor will also be required
to provide formal training to the operators on the new system during startup operations.
Owner’s Representative / Engineering Consultants
CRW Engineering Group will act as the owner’s representative and technical advisor for this
project. CRW is a multi-disciplinary engineering firm that’s been in business in Alaska for over 30
years. CRW has 65 employees (including 35 engineers) and provides engineering design and
construction management services in the fields of civil, electrical, mechanical, structural and
environmental engineering, and maintains surveying and procurement departments. CRW utilizes
state of the art engineering tools including the latest versions of CAD and engineering design
software. CRW has completed design and construction management services for hundreds of
millions worth of projects throughout Alaska, including rural and municipal utilities, bulk fuel
facilities, power generation and distribution facilities, vertical construction, highway and traffic
system upgrades, etc. CRW has also completed business operating plans for over 30 bulk fuel
and power system upgrade projects throughout the state. When necessary, CRW has access to
specialty sub consultants such as Golder Associates (geotechnical engineering), Gray Stassel
Engineering (SCADA systems and controls), Clifton Laboratories (hydrology and hydraulic
transient analysis), Solstice Alaska Consulting, Inc. (hydro permitting specialists), and Rick Elliot,
Land Consultant (site control).
Resumes for specific project personnel are attached.
4.1.3 Project Accountant(s)
Indicate who will be performing the accounting of this project for the grantee and include a resume.
In the electronic submittal, please submit resumes as separate PDFs if the applicant would like
those excluded from the web posting of this application. If the applicant does not have a project
accountant indicate how you intend to solicit financial accounting support.
Financial accounting will be handled by Ms. Elena Begojevic, owner of Clear Idea Accounting and
Consulting Inc. Ms. Begojevic’s resume is attached.
4.1.4 Financial Accounting System
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 Renewable Energy Fund Grant Program.
Accounting controls will consist of a multi-tiered system of checks and balances. Pay requests
from the design build contractor will be received by the owner’s representative and will undergo a
detailed review based on the contractor’s daily reports, inputs from the onsite project
representative, and requirements of the grant agreement and construction contract. Discrepancies
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will be resolved prior to forwarding the pay request to the Owner for approval. Approved pay
requests will be forwarded to the owner and then to the project accounting firm for processing. All
reviewers (owner’s representative, Owner, and accounting professional) will be fully aware of the
grant conditions governing appropriate charges.
Invoices generated by the Owner’s representative (CRW) will be reviewed by the owner and the
accounting professional prior to being submitted to AEA for payment. Invoices generated by the
Owner will be reviewed by the accounting professional prior to submittal to the AEA. Any
discrepancies will be corrected prior to submitting the invoice to AEA for payment.
All invoices will be reviewed in this manner, minimizing the chances for inappropriate charges
against the project grant.
4.2 Local Workforce
Criteria: Stage 2-2.E: The project uses local labor and trains a local labor workforce.
Describe how the project will use local labor or train a local labor workforce.
The design/build project documents developed during this project phase will include requirements
for utilization of local labor and provisions for on the job training opportunities. Consideration will
also be given to dedicating a portion of the project grant funds for employing local workers on the
job. The final approach for incorporating local labor into the project will depend upon the level of
funding received and other factors.
The project will also require that the successful contractor provide operator training during project
startup.
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SECTION 5 – TECHNICAL FEASIBILITY
5.1 Resource Availability
Criteria: Stage 2-3.A: The renewable energy resource is available on a sustainable basis, and
project permits and other authorizations can reasonably be obtained.
5.1.1 Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available, including average
resource availability on an annual basis. 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.
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.
The project Conceptual Design Report (CDR) completed in January 2012 provides a detailed
description of Fivemile Creek resource as well as the results of regional hydrologic studies,
economic feasibility analysis, and a discussion of / comparison with other alternatives considered.
Hard copies of the CDR were provided to AEA as part of previous REF applications (REF rounds
IV and V); an electronic copy is attached to this application. Additional hardcopies can be provided
upon request.
A brief summary of the resource analysis findings are provided below:
Using a 300 kW impulse turbine: Annual generating capacity is estimated at 2,070,000 kWH. This
is sufficient to meet the community electrical demand, displace approximately 20,000 gallons of
heating oil use in the winter and providing over 800,000 kWH of excess energy during the summer
months that will be utilized for future commercial / industrial growth.
Using a 400 kW impulse turbine would provide approximately 270,000 kWH of additional excess
energy in the summer months. Winter energy production would be similar to the 300 kW turbine
due to flow limitations.
5.1.2 Permits
Provide the following information as it may relate to permitting and how you intend to address
outstanding permit issues.
· List of applicable permits
· Anticipated permitting timeline
· Identify and describe potential barriers
A list of project related permits and their current status is provided below:
· Federal Energy Regulatory Commission (FERC) – A determination of no FERC license
required has been issued for this project
· Review by the State Historic Preservation Office – In August 2014 Cultural Resource
Consultants, LLC. completed a review of the Alaska Heritage Resources Survey. No
known historic properties were noted to exist within the proposed project’s “area of potential
affect.” Once construction funding is in place, a letter stating the results of the literature
review will be sent to SHPO, requesting a finding of No Historic Properties Affected.
· ADOT Right of Way Permit – A draft utility permit application was submitted to ADOT in
2014. The utility permit must be issued within 12 months of construction, so final permitting
will commence once funding is acquired and the construction schedule is better defined.
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· United States Army Corps of Engineers – The ACOE has determined that the project will be
covered under Nationwide Permit 17, for Hydro Projects. A pre-construction notification
must be submitted prior to beginning construction. The ACOE requested that the
preconstruction notification be submitted once the design drawings are 95% complete.
· Federal Aviation Administration (FAA) – FAA has issued a Determination of No Hazard to
Air Navigation for the project.
· Alaska Department of Fish and Game (ADF&G) Habitat Permit – ADF&G has reviewed the
preliminary drawings. A fish habitat permit will be required, but ADF&G anticipates that the
permit will be issued quickly upon receiving final design drawings. There are no apparent
habitat concerns above the Edgerton Highway and downstream concerns will be mitigated
if water is returned to the creek bed immediately downstream of the Edgerton Highway
culver crossing.
· ADNR water rights – An application for water rights has been submitted to ADNR. Based
on the ADNR website, previous water rights have not been granted in the area surrounding
the proposed project.
· Alaska Dam Safety Engineer Review – The proposed diversion structure does not meet the
physical definition of a regulated dam as described in AS 46.17.900(3), namely the
diversion structure: A) will not impound 50 acre feet or more water, and B) does not have a
height in excess of 20-ft. However, the diversion will need to undergo hazard classification
analysis. Due to the low height and very small containment volume of the proposed
structure, it is unlikely that the dam will be regulated by the State. Once the diversion
structure design is finalized, the engineer will submit an application for jurisdictional
determination for the diversion structure to the office of the State Dam Safety Engineer for
review.
5.2 Project Site
Criteria: Stage 2-3.B: A site is available and suitable for the proposed energy system.
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.
Land required for the development of the proposed improvements is owned by Chitina Native
Corporation, and will be provided to the utility as an in-kind contribution to the project. The utility,
Chitina Electric Inc, is owned by the Chitina Native Corporation and donation of the land is
considered a benefit to the community and Corporation stakeholders.
5.3 Project Risk
Criteria: Stage 2-3.C: Project technical and environmental risks are reasonable.
5.3.1 Technical Risk
Describe potential technical risks and how you would address them.
As with any remote project, there are some potential risks associated with construction of the
proposed hydroelectric facility. The goal of the project team is to minimize the potential risks via
thorough planning, proper field investigations, and realistic design assumptions. The following
potential risks have been addressed:
1. Access Road Alignment – During early planning stages, there was a concern that the
proposed access road to the intake was not feasible due to terrain features. Over the 2014
season, project participants proved that the road alignment is feasible through onsite
survey, substantial tree and brush clearing, and onsite constructability review by a
seasoned road contractor.
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2. Penstock Grade – There were early concerns that the proposed penstock could not
“escape the canyon,” while maintaining a positive downhill grade. Field efforts in 2014
proved that it is possible to keep a positive grade, with no need for a siphon or other less
reliable approaches.
3. Bedrock Depth – Prior to the summer of 2014, the bedrock depth at the diversion site, along
the access road, and penstock alignment was unknown. A Ground Penetrating Radar
study has provided bedrock depth data, which is critical to developing a realistic cost
estimate.
4. Seepage – The proposed intake / diversion site is underlain by loose deposits to a depth of
30+ feet. The material should provide a stable foundation for the proposed intake/diversion
structure. However, some seepage is expected. In warm months the seepage will not
affect the facility output. However, during cold, winter months with low stream flow the
seepage could affect the ability of the facility to meet community power demands. If this
becomes an issue, seepage control measures could be implemented.
It is not possible to eliminate all risks associated with a project of this type. However, with proper
planning, field studies, and diligent design it is possible to mitigate most concerns. The project
team has worked hard to address major concerns identified to date and to account for their costs in
the construction cost estimate.
5.3.2 Environmental Risk
Explain whether the following environmental and land use issues apply, and if so how they will be
addressed:
· 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
· Threatened or endangered species – United States Fish and Wildlife Service (USFWS)
has determined that there are no threatened or endangered species within the extents of
the project.
· Habitat Issues – Any new utility lines will be designed with raptor concerns in mind.
USFWS identifies no critical habitats within the project area. The State of Alaska
Department of Fish and Game (ADF&G) does not list Fivemile Creek as an anadromous
stream. Formal consultation with ADF&G has been initiated. No apparent habitat concerns
exist above the Edgerton Highway. ADF&G has indicated that fish habitat concerns
downstream of the highway could likely be mitigated by returning water to the creek as
close to the Edgerton Highway culvert outfall as possible. A fish habitat permit will be
required prior to beginning construction, but ADF&G does not anticipate any additional
mitigation measure requirements. ADF&G has requested that a formal application for a
habitat permit wait until the design is at 95% completion level.
· Wetlands and other protected areas – Research into USFWS National Wetlands
Inventory does not show any wetlands within the project area; wetlands are not anticipated
to be an issue for the Fivemile Creek project. The ACOE has verified that work within the
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streambed will be covered by Nationwide Permit 17 for hydroelectric facilities. A pre-
construction notification will need to be submitted to the ACOE prior to beginning
construction activities within the streambed.
· Archaeological and historical resources – Based on a preliminary review of the Alaska
Heritage Resource Survey (AHRS), completed by Cultural Resource Consultants, LLC, no
significant historical properties are within the project area. A letter will be submitted to the
State Historic Preservation Officer, citing the literature review and requesting a finding of
“No Historic Properties Affected.”
· Land development constraints – With the exception of the ADOT ROW (Edgerton
Highway), the project involves lands owned by the Chitina Native Corporation. The
Corporation plans to provide these lands as an in-kind contribution; there are no zoning
restrictions on the affected lands. In order to cross the Edgerton Highway ADOT will need
to issue a utility permit. Negotiations for the proposed crossing are ongoing.
· Telecommunications Interference – There are no anticipated telecommunication
conflicts.
· Aviation considerations – FAA has issued a Determination of No Hazard to Air Navigation
for the project.
· Visual, aesthetics impacts – Given that the majority of the proposed facilities will be
buried (penstock) and/or hidden within wooded areas (stream diversion structure, access
road), visual impacts are not anticipated to be an issue for this project. Note that the
proposed turbine house will be situated adjacent to the existing diesel plant. Noise, odor,
and aesthetic impacts of the turbine building will be less significant than the existing diesel
plant.
5.4 Existing and Proposed Energy System
Criteria: Stage 2-3.D: The proposed energy system can reliably produce and deliver energy as
planned.
5.4.1 Basic Configuration of Existing Energy System
Describe the basic configuration of the existing energy system. Include information about the
number, size, age, efficiency, and type of generation.
CEI’s existing diesel power plant was constructed in 2008 and energized in September, 2009. The
project, which replaced the community’s aged, non-code compliant diesel power plant, was funded
through the Denali Commission and managed by the Alaska Energy Authority. The facility consists
of a pre-engineered, modular metal structure (15’x42’) founded on concrete strip footings. The
structure contains three diesel gensets, including one 54kW and two 117 kW units, and paralleling
switchgear. The power plant SCADA system reports typical generation efficiencies of around
12.2kW-h per gallon of diesel consumed. Power is generated at 480 volts AC and stepped up to
7.2/12.47 kV, using a pad mount transformer. A 4-mile overhead, 3-phase transmission line
connects the power plant to the community power grid; the intertie was designed to provide a tie-in
point for the proposed hydroelectric plant.
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Existing Energy Generation and Usage
a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank)
i. Number of generators/boilers/other
ii. Rated capacity of generators/boilers/other
iii. Generator/boilers/other type
iv. Age of generators/boilers/other
v. Efficiency of generators/boilers/other
vi. Is there operational heat recovery? (Y/N) If yes
estimated annual displaced heating fuel (gallons)
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $46,000 (2013 CEI Financial Statement)
ii. Annual O&M cost for non-labor $237,500 (2013 CEI Financial Statement)
c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the
Railbelt grid, leave this section blank)
i. Electricity [kWh] 528,903 kWh (Average of FY 2012-2014 PCE Figures)
ii. Fuel usage
Diesel [gal] 43,253 gal (Average of FY 2012-2014 PCE Figures)
Other
iii. Peak Load 90 kW
iv. Average Load 65 kW
v. Minimum Load 42 kW
vi. Efficiency 12.2 kWh per gallon of diesel fuel
vii. Future trends Average load is increasing at around 2.5% per year
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu]
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric
Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power.
i. 3
ii. 117kW, 117kW, 54 kW
iii. Diesel Power Generation
iv. 7 years
v. 12.2 kWh per gallon of diesel fuel
vi. Yes, there is an existing heat recovery system
that heats the clinic. Estimated fuel
displacement of around 2,000 gallons annually.
Diesel plant is currently heated via waste heat
from the gen sets.
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5.4.2 Future Trends
Describe the anticipated energy demand in the community over the life of the project.
Based on the previous 10 years of PCE data, the community’s average load is increasing at
around 2.5% per year. For the purposes of this grant application, the average community load is
assumed to grow at 2.5% per year over the life of the project.
5.4.3 Impact on Rates
Briefly explain what if any effect your project will have on electrical rates in the proposed benefit
area over the life of the project. For PCE eligible communities, please describe the expected
impact would be for both pre and post PCE.
The proposed project will reduce the pre-PCE cost of power generation by an amount
approximately equivalent to the value of displaced diesel. For example, if the proposed hydro
reduces the amount of diesel consumed by 45,000 gallons per year and the purchase price for
diesel is $4.33/gallon, the operating cost for the utility will be decreased by 45,000 gallons x
$4.33/gal = $195,000. If the utility sells 528,000 kW-h of electricity during the same year, the cost
of each kW-h will be reduced by approximately $195,000 / 528,000 kW-h = $0.37 per kW-h. This
would correspond to a dramatic reduction in energy costs for commercial (non-PCE eligible)
customers (+/- 40% reduction). The reduction in fuel costs would also reduce the utility’s calculated
PCE level (for PCE eligible power sales) and ultimately reduce the cost to PCE-eligible consumers
as well, by around 10%.
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
· Optimum installed capacity
· Anticipated capacity factor
· Anticipated annual generation
· Anticipated barriers
· Integration plan
· Delivery methods
System Design – Primary working components of the proposed Fivemile Creek Hydro Project
Include:
1. a concrete diversion/intake structure,
2. 10,400 LF of buried penstock,
3. a turbine building housing a 300 to 400 kW Pelton Wheel Turbine
4. a 4-mile overhead electrical intertie to connect the generation equipment to the
community’s existing grid (this portion of the project was constructed in 2008).
5. An electric boiler (frequency control unit) connected to the existing clinic hydronic heat
recovery system.
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6. Dispatchable electric heating elements for utilizing excess energy at various community
facilities.
Note that the current (65%) design drawings show several features that have been eliminated from
the design to reduce costs. The features removed from the design include: an automated gate at
the diversion/intake structure, grouting/seepage control measures at the diversion, and insulated
arctic pipe for the penstock. These details will be removed from the design drawings during
preparation of the design / build bid package.
The diversion/intake structure will incorporate a manual gate to flush sediment buildup. The pool
created by the diversion will project the intake from freezing. Communication and low voltage
power lines will be extended to the intake location to provide SCADA controls. The intake will be
accessible via a proposed 12-ft wide road.
The proposed penstock will consist of a combination of High Density Polyethylene (HDPE) and
steel pipe sections; the diameter of the pipeline will range from 20 to 12 inches. The pipeline will
be buried. The design of the pipeline addresses thrust restraint, air release/vacuum concerns,
water hammer effects, etc. The penstock will terminate at a hydroelectric powerhouse situated
adjacent to the community’s existing diesel powerhouse. The turbine building will include a pelton
turbine, generator, and necessary controls. Water from the turbine tailrace will be directed back
into Fivemile Creek, below the Edgerton Highway culvert. The facility will operate under
approximately 950 feet of static head.
Optimum Installed Capacity – Turbine selection was based on a review of historic community
demands, as well as extensive hydraulic and hydrologic modeling. The preliminary turbine
selection (300 kW) provides good generation efficiency at expected design loads over the life of
the project, while providing excess capacity during periods of high flow to power expected heating
and future commercial loads. During the value engineering process, a larger turbine (400 kW) will
be considered, as the difference in installed cost between the units would be minimal.
Anticipated Capacity Factor – Estimating the capacity factor for the proposed hydro plant will
depend on a number of factors, and is heavily influenced by the availability and utilization of
excess energy from year to year. For this discussion, we assume that the capacity factor is
defined as the ratio of the actual output of the power plant to its potential output if operating at
nameplate capacity over one year. For the initial years of operation, it is assumed that the hydro
plant will meet the community load 90% of the time (10% diesel on time for maintenance,
troubleshooting, etc). Further, it is assumed that the dispatchable load heaters displace
approximately 20,000 gallons of heating fuel, and that initial commercial loads can utilize up to
50,000 KWH of excess energy produced during the summer. Based on these assumptions, and a
turbine nameplate capacity of 300 kW, the estimated capacity factor would be around 44%. Note
that the factor will increase over time as community demand increases. For example, if the
community and commercial demands grow at 2.5% per year, the estimated capacity factor in the
year 2025 is 56%, and in the year 2035 is 72%.
Anticipated Annual Generation – As noted above, it is estimated that the proposed hydro plant
will supply the full community demand 90% of the time during a typical year and displace 20,000
gallons of heating fuel in the first year via dispatchable heating elements. Further, it is assumed
that commercial demand will utilize 50,000 KWH of excess summertime generation in the first year
of operation. Based on PCE data, the current annual electric demand is around 530,000 kW-h
(90% of this amount is 480,000 kW-h). Further, assuming that a gallon of heating oil is equivalent
to 30 kW-h of end user heat, the dispatchable electric heaters will deliver around 600,000 kW-h of
energy. Based on this accounting, the total anticipated generation from the hydro plant during the
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first year of operation will be approximately 480,000 kW-h + 600,000 kW-h + 50,000 kW-h = 1.13
MW-h of energy. The annual generation is expected to increase with population and industrial
growth in the community. For example, in the year 2025 the plant is expected to generate 1.3 MW-
h, and in the year 2035 nearly 1.5 MW-h. Of course, if a larger turbine is selected during the
design build process, the amount of excess energy available for commercial ventures during the
summer months will increase proportionately.
Potential Barriers – The project team has taken great care in identifying and addressing potential
challenges or “fatal flaws” throughout the initial design process. Field investigations, to date,
include multi-year stream gauging, LIDAR aerial contour generation, ground survey, penstock
alignment clearing, geophysical survey (ground penetrating radar), constructability review, and fish
habitat assessment and gap analysis. At this time, design and construction of the proposed
facilities appears feasible.
Delivery Method – The hydro plant will generate power at 480 volts, and transformers adjacent to
the plant will step the voltage up to 7.2/12.47 kV. Power from the hydro plant will be transmitted to
the community’s electrical grid via an existing 4-mile long, 3-phase, overhead power line.
Proposed System Design Capacity and Fuel Usage
(Include any projections for continued use of non-renewable fuels)
a) Proposed renewable capacity (Wind,
Hydro, Biomass, other)
[kW or MMBtu/hr]
300 to 400 kW Hydro
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] First year: 1,130 kW-h, Year 20: 1,500,000 kW-h
ii. Heat [MMBtu]
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood or pellets [cords, green tons,
dry tons]
iv. Other
d) i. Estimate number of hours renewable
will allow powerhouse to turn diesel engines
off (fill in as applicable)
90% of time = 7,884 hours/year
5.4.5 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.
CEI understands the grant requirement, and the importance, of providing the AEA with
Performance / O&M Reports for 10-years after construction. The proposed improvements will
include a sophisticated SCADA system that will provide for real time monitoring and reporting on a
myriad of operational parameters. The information will be available in real time over the internet,
similar to the communities existing diesel plant. This system will provide CEI and AEA with nearly
unlimited monitoring and reporting capabilities.
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SECTION 6 – ECONOMIC FEASIBILITY AND BENEFITS
6.1 Economic Feasibility
Criteria: Stage 2-4.A: The project is shown to be economically feasible (net positive savings in fuel,
operation and maintenance, and capital costs over the life of the proposed project).
6.1.1 Economic Benefit
Explain the economic benefits of your project. Include direct cost savings, and how the people of
Alaska will benefit from the project. The benefits information should include the following:
· Anticipated annual and lifetime fuel displacement (gallons and dollars)
· Anticipated annual and lifetime revenue (based on i.e. a Proposed Power Purchase Agreement
price, RCA tariff, or cost based rate)
· 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)
The economic model used by AEA is available at
http://www.akenergyauthority.org/Programs/Renewable-Energy-Fund/Rounds#round9. 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.
In addition to providing a clean, renewable source of energy for Chitina, the proposed hydropower
project will provide substantial cost savings for the community over the life of the project as
described below:
Diesel Generation Fuel Displacement
During the first year of operation, it is estimated that the hydropower plant will displace roughly
41,000 gallons of diesel fuel that would have been used for diesel generation, equating to
$162,000. Assuming that the community will continue its current growth trend, the diesel
generation avoidance over the lifetime of the project will equate to roughly 3,800,000 gallons,
which, based on predicted diesel prices in the ACEP model, would save the utility roughly
$8,500,000 (2015 dollars).
PCE Level Reduction
The proposed project will substantially decrease the utility’s operating costs, primarily as a result of
the diesel displacement described above. As a result, the utility will be able to produce less
expensive power, effectively decreasing CEI’s calculated PCE level. The lower PCE level will save
the state of Alaska hundreds of thousands of dollars in annual subsidies and also lower the
residential rate that customers pay.
Additional Revenue Streams
For most of the project life, it is anticipated that the utility will generate a surplus of energy during
the summer months that will be made available to commercial users at a discounted rate.
Calculations for the life of the project show that these sales could result in revenue of roughly
$1,900,000 (NPV). See attached “Project Benefit” spreadsheet for additional information.
During winter months, proposed dispatchable heaters at various community buildings will utilize
available surplus energy from the hydro plant to displace heating fuel. It is estimated that the
project will displace over $1,500,000 (2015 dollars) worth of heating fuel over the life of the project.
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6.1.2 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
· Proposed rate of return from grant-funded project
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.
The existing and future CEI consumers will remain the potential power buyers for the proposed
hydro generation that will replace/supplement the existing diesel generation. CEI also intends to
pursue interruptible electric heating sales. Due to the effects of the Power Cost Equalization
Program (PCE), consumers may not see large reductions to their effective rates (the current
effective residential rate is $0.32/kW-h). However, electricity generation costs and commercial
rates will decrease sharply, providing a more sustainable electric utility and reducing the level of
PCE funding required (effectively saving the State of Alaska money). A future business plan will
assess the impact on electrical rates in more detail.
Based on the most recent fuel purchase records ($4.33 per gallon) and the total estimated diesel
avoidance attributable to the project (approximately 60,000 gallons per year), the simple payback
period for the estimated capital construction cost is around 23 years. A more sophisticated
analysis is presented in the attached economic analysis spreadsheet. The current benefit/cost
ratio for the project is estimated to be 2.8.
6.1.3 Public Benefit for Projects with Private Sector Sales
For projects that include sales of power to private sector businesses (sawmills, cruise ships, mines,
etc.), please provide a brief description of the direct and indirect public benefits derived from the
project as well as the private sector benefits and complete the table below. See section 1.6 in the
Request for Applications for more information.
The proposed project, assuming a 300 kw turbine is installed, will provide approximately 765,000
kW-h annually of equivalent excess energy between May and September of each year. This
energy will be available for purchase by current and future commercial entities in and around
Chitina. The excess energy will be sold by the utility at a reduced rate, providing opportunities for
growing current commercial customers and encouraging new commercial enterprises in the
community. See the attached economic spreadsheet for additional information on this subject.
Renewable energy resource availability (kWh per month) Average
113,000kW-h
per month
(May-Sept.)
Estimated sales (kWh) 50,000 kW-H
(year 1), 2.5%
annual growth
in sales.
Revenue for displacing diesel generation for use at private sector businesses ($) $1,900,000
(life of project)
Estimated sales (kWh) 4,700,000 kWh
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Revenue for displacing diesel generation for use by the Alaskan public ($) N/A
6.2 Financing Plan
Criteria: Stage 2-4.B: The project has an adequate financing plan for completion of the grant-
funded phase and has considered options for financing subsequent phases of the project.
6.2.1 Additional Funds
Identify the source and amount of all additional funds needed to complete the work in the phase(s)
for which REF funding is being applied in this application. Indicate whether these 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.
To date, CEI has received $580,000 in funding through the REF program for planning and design
of the proposed hydro project. Our current (REF Round IX) application requests funding for
constructing the proposed improvements (estimated construction cost of $6,000,000). It is our
understanding that the REF program can provide a maximum of $4 million in funding for a single
project. Given funding received to date, CEI’s current grant application requests $3,500,000 for
construction. To demonstrate its commitment to the project, CEI intends to generate the additional
$2.5 million required for construction through federal grants. CEI is actively pursuing grants
through the following federal programs:
·ICDBG – Indian Community Development Block Grant Program
·CDBG – Community Development Block Grant Program
·USDA – High Energy Cost Grants
·USDA – Community Facilities Direct Loan & Grant Program
·USDA – Rural Energy for America
·DOE – Department of Energy Tribal Clean Energy and Energy Efficiency Funding
6.2.2 Financing opportunities/limitations
If the proposed project includes final design or construction phases, what are your opportunities
and/or limitations to fund this project with a loan, bonds, or other financing options?
There are a number of low-interest loan opportunities from federal and state agencies. However,
CEI is a relatively small utility and the addition of substantial debt burden could endanger the
financial sustainability of the utility. CEI is actively researching the possibility of utilizing federal
loan programs available through USDA, DOE, and the state of Alaska. A final decision on the
ability to take on debt will depend upon the terms and financial options available.
6.2.3 Cost Overruns
Describe the plan to cover potential cost increases or shortfalls in funding.
The current construction cost estimate includes a 20% contingency intended to cover unanticipated
project related costs.
6.2.4 Subsequent Phases
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 27 of 32 7/8/14
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.
No subsequent phases beyond the construction phase.
6.3 Other Public Benefit
Criteria: Stage 3-4.C: Other benefits to the Alaska public are demonstrated. Avoided costs alone
will not be presumed to be in the best interest of the public.
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
Expected non-economic benefits to the community of Chitina include:
- The project is expected to spur commercial and industrial growth in the community over time,
making the community more sustainable.
- The expected increases in commercial business will result in a direct, long term increase in jobs.
- The project will provide on the job training resulting in a more competent and employable local
workforce.
- The project will reduce the handling of diesel fuel and lubricants in the community, reducing the
possibility of a spill, which could contaminate the Copper River and cause significant downstream
economic impacts.
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 28 of 32 7/8/14
SECTION 7 – SUSTAINABILITY
Describe your plan for operating the completed project so that it will be sustainable throughout its
economic life.
Include at a minimum:
· Capability of the Applicant to demonstrate the capacity, both administratively and financially, to
provide for the long-term operation and maintenance of the proposed project
· Is the Applicant current on all loans and required reporting to state and federal agencies?
· Likelihood of the resource being available over the life of the project
· Likelihood of a sufficient market for energy produced over the life of the project
The proposed project will be owned and operated by Chitina Electric, Inc., a subsidiary of Chitina
Native Corporation which has been serving the community for over 30 years. CEI’s existing
management structure and administrative department will remain in place. The overall operation of
the utility will change little as a result of this project. The Utility will continue to operate and
maintain its facilities, and bill its customers for services provided. Once startup is completed, the
Hydro plant should require little, if any more maintenance than the existing diesel system. The
diesel system will need to be exercised on a regular basis to insure it is ready for backup service.
Similarly, during periods of low water when the diesel plant is carrying the load, the Hydro will need
to be maintained in ready condition.
Operation, maintenance and management requirements will be addressed in detail in the project
Business Plan. The Plan will provide an organizational structure to help the Utility transition to
Hydro power. In addition to the business plan, administrative and operator training will be provided
on an as-needed basis as part of the startup services.
CEI will monitor, record, and report savings and benefits afforded by the proposed hydro plant.
The hydro plant will be equipped with an advanced SCADA system. The system will be
programmed to record and provide reports for whatever parameters are necessary. The
information will be available in real time over the internet, similar to the community’s existing diesel
plant.
SECTION 8 – PROJECT READINESS
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
CEI is prepared to move swiftly once additional grant moneys are in place. The project
management team is already assembled and ready to go. A preliminary schedule for proceeding
with the project is provided in Section 3.1. Immediately upon receiving grant approval, the project
team will begin preparing the design/build bid documents and firming up remaining permit
approvals. Site control for the proposed facilities is secure, with the exception of the Edgerton
Highway crossing. Concurrent with preparation of the design build documents, the project team
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 29 of 32 7/8/14
will vigorously pursue a final utility permit for the highway crossing. Having construction funding in
place will assist with the negotiating process with ADOT. Procurement of materials will be the
responsibility of the selected design/build contractor. The time required for procurement is built
into the preliminary schedule shown in section 3.1.
SECTION 9 – LOCAL SUPPORT AND OPPOSITION
Describe local support and opposition, known or anticipated, for the project. Include letters,
resolutions, or other documentation of local support from the community that would benefit from
this project. The Documentation of support must be dated within one year of the RFA date of July
8, 2015.
The proposed project is fully supported by the residents and local businesses (consumers), the
utility (owner/operator), and the local Corporation (land owner). Please see the grant application
cover letter submitted by the CEI President, Mr. Martin Finnesand, in support of the project and the
attached resolutions in support of the project
The utility has offered to provide free use of its limited spread of heavy equipment for the project,
and the utility manager is donating his time as needed for project coordination. In addition, the
Corporation has agreed to donate the necessary land for the project. The Corporation has also
purchased two commercial grade ice makers as a means to use surplus hydro power during
summer months. The residents of Chitina are excited about the potential project; the idea of
powering their community with clean, renewable energy has invigorated the community.
SECTION 10 – COMPLIANCE WITH OTHER AWARDS
Identify other grants that may have been previously awarded to the Applicant by the Authority 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 requests.
The project has received funding through REF rounds II and IV. The funds from these previous
awards have been utilized to plan and prepare 65% design drawings for the project. The funds
remaining from these grant awards will be utilized to prepare the design/build bid documents,
complete a business plan, and complete remaining permitting efforts. The project team has
diligently reported progress on the project to AEA and has quickly responded to information
requests.
SECTION 11 – LIST OF SUPPORTING DOCUMENTATION FOR PRIOR PHASES
In the space below please provide a list additional documents attached to support completion of
prior phases.
CDR
65% Design Drawings
Permit Correspondence
Renewable Energy Fund Round IX
Grant Application - Standard Form
AEA 15003 Page 30 of 32 7/8/14
SECTION 12 – LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION
In the space below please provide a list of additional information submitted for consideration.
Fivemile Creek Hydro Project
Renewable Energy Fund, Round IX Grant Application
List of Attachments
1. Project Team Resumes – 16 Pages
2. Chitina Electric Inc. Resolution to Support Project & Pursue Additional Funding – 1 Page
3. Letters of Support for Project: - 9 Pages
a. Chitina Native Corporation
b. Chitina Traditional Indian Village Council
c. Copper River Basin Regional Housing Authority
d. Alaska DOT & PF Building Maintenance Manager
e. Wrangell St. Elias National Park
f. Gilpatrick’s Hotel Chitina, Inc.
g. Spirit Mountain Artworks
h. Taral Enterprises, LLC.
i. Hem Charters
4. Permitting Documents – 21 Pages
a. ADNR Water Rights Application
b. ADOT - Utility Permit Application
c. FAA Permit
d. FERC – Finding of No License Required
e. ADF&G
5. Fivemile Creek Hydro Project 65% Construction Drawings – 34 Pages
Chitina Electric Inc. Resolution to Support Project &
Pursue Additional Funding
Letters of Support for Project
September 10, 2015
To whom it may concern:
The Chitina Native Corporation is pleased to provide this letter of support for the construction of the
Five-mile Creek Hydroelectric project as designed and spearheaded by Chitina Electric, Inc. This project
would not only provide energy security and stabilize Chitina’s electric rates but it will also provide the
possibility of reduced heat and hot water for the Wrangell View Store facility.
This project will result in substantial cost savings to the community and support the community’s effort
to increase economic wellbeing. Reduced and stabilized energy cost will help our local businesses and
our community organizations.
Sincerely,
M. Anne Thomas
M. Anne Thomas
President
Chitina Native Corporation
Good afternoon.
As the Building Maintenance Manager for the State of Alaska - Department of Transportation & Public
Facilities, I oversee operation and maintenance of the State’s Chitina Maintenance Station. After
evaluating the concept proposed by AEA for a Chitina Electric hydro-electric project to provide thermal
energy (heat) to Chitina Maintenance Station, I support the project.
Should the project move forward and become a reality, DOT&PF will seriously consider a contract to
utilize thermal energy from the utility long term. The commitment to contract will be based upon two
factors:
1. Cost to convert station heating systems to utilize the waste heat stream.
2. Recurring operational cost of the waste heat.
In general, the conversion cost must be reasonable. The recurring operational cost must be competitive
with the current heating oil system.
DOT&PF is always evaluating new technologies and potential efficiencies. The hydro-electric project
appears to be a step forward for clean, affordable, reliable power in the Chitina area. I hope that
DOT&PF can benefit from this technology project.
Steve Meierotto
Building Maintenance Manager
Alaska DOT&PF
2301 Peger Road
Fairbanks, AK 99709
907 451-2203
Gilpatrick’s Hotel Chitina, Inc
907-823-2244
Susan Gilpatrick 907-255-2020
www.hotelchitina.com info@hotelchitina.com
Re: Letter of Support for the Five-mile Hydroelectric project
To all that this concerns:
All of us at Gilpatrick’s Hotel Chitina, Inc would like to voice our support for the Five-mile
Creek Hydroelectric project as designed and spearheaded by Chitina Electric.
This community’s needs for stable and cost effective energy are dire and rising rapidly each
year. Chitina continues to grow with more buildings and businesses. These businesses need to
have affordable energy to survive and grow so that they can provide jobs and affordable
products and services to not only its residents but the countless visitor’s each year.
Stable and affordable energy would definitely factor into more growth for Gilpatrick’s Hotel
Chitina, Inc and in turn the community. Current power costs are somewhat crippling and a
deterrent to growth.
Thank you for your consideration of this important project,
Susan Gilpatrick
Gilpatrick’s Hotel Chitina, inc
September 11, 2015
To whom it may concern:
As the owner of Spirit Mountain Artworks in Chitina, Alaska since
1978, I would like to express my support for the establishment of a hydro-
electric system for the town. Such a development would add greatly to the
sustainability of our community, giving us year-round power, independent of
the outside grid and fossil fuels. Assuming that it would also lead to a
reduction in power costs, it could add substantially to the viability of local
businesses. Having a reliable source of power independent of the
fluctuations of fossil fuel costs will give us the ability to project our power
expenses well into the future. Perhaps more importantly, it will benefit the
environment by reducing our carbon emissions.
Sincerely
Art Koeninger, owner
SPIRIT MOUNTAIN ARTWORKS
P.O. BOX 22, Chitina, AK 99566
(907) 823-2222
Permitting Documents
139 FERC ¶ 62,088
UNITED STATES OF AMERICA
FEDERAL ENERGY REGULATORY COMMISSION
Chitina Electric, Inc.Docket No. DI12-1-000
ORDER FINDING LICENSING NOT REQUIRED
(May 3, 2012)
1.On November 22, 2011, Chitina Electric, Inc. filed a Declaration of Intention (DI)
concerning the proposed Fivemile Creek Hydroelectric Project (project), which will be
located on Fivemile Creek, near the town of Chitina, Alaska, at T. 3 S., R. 5 E., secs. 23,
24, 25, 26, 27, and 28, Copper River Meridian.
PROJECT DESCRIPTION
2.The proposed run-of-river Fivemile Creek Hydroelectric Project will consist of:
(1) an approximately 6–foot-high diversion structure on Fivemile Creek diverting water
into a 10,000-foot-long, 12-inch-diameter steel penstock; (2) a proposed 20-foot wide,
40-foot-long powerhouse, containing a 300-kW pelton wheel turbine and electrical
generating equipment; (3) a tailrace from the powerhouse to Fivemile Creek; and
(4) appurtenant facilities. The power will be used to replace diesel generators used in the
town of Chitina.
PUBLIC NOTICE
3.Notice of the DI was published on December 16, 2011. Protests, comments,
and/or motions to intervene were to be filed by January 23, 2012. On January 23, 2012,
the Department of Fish and Game, State of Alaska, filed a motion to intervene with
comments. The comments reflect concerns about the placement of the tailrace and its
effect on fish habitat below the Edgerton Highway. The comments also cited concerns
about the effect of the proposed project on easements used for recreation. The comments
do not provide sufficient information relating to the jurisdictional requirements for
licensing. No other protests, comments, or motions to intervene have been received.
20120503-3036 FERC PDF (Unofficial) 05/03/2012
Docket No. DI12-1-000 - 2 -
JURISDICTION
4.Pursuant to Section 23(b)(1) of the Federal Power Act (FPA), 16 U.S.C. § 817(1),
a non-federal hydroelectric project must (unless it has a still-valid pre-1920 federal
permit) be licensed if it:
is located on a navigable water of the United States;
occupies lands of the United States;
utilizes surplus water or waterpower from a government dam; or
is located on a stream over which Congress has Commerce Clause
jurisdiction, is constructed or modified on or after August 26, 1935,
and affects the interests of interstate or foreign commerce.
DISCUSSION
5.Based on available information it does not appear that the proposed project would
be located on a navigable water of the United States. It will not occupy any public lands
or reservations of the United States, and will not use surplus water or waterpower from a
Federal government dam. The proposed project would be constructed after August 26,
1935, and would use water from a Commerce Clause stream,1 but would not affect
interstate commerce because it would not be connected to the interstate grid. Therefore,
the project does not require licensing under Section 23(b)(1) of the FPA.
CONCLUSION
6.Consequently, Section 23(b)(1) of the FPA does not require licensing of the
proposed Fivemile Creek Hydroelectric Project. If evidence sufficient to require
licensing is found in the future, section 23(b)(1) would require licensing. Under section
4(g) of the FPA, the project owner could then be required to apply for a license.
The Director orders:
(A) Section 23(b)(1) of the Federal Power Act does not require licensing of the
proposed Fivemile Creek Hydroelectric Project. This order is issued without prejudice to
any future determination upon new or additional evidence that licensing is required.
1 For purposes of FPA section 23(b)(1), Commerce Clause streams are the
headwaters and tributaries of navigable waters of the United States. See FPC v. Union
Electric Co., 381 U.S. 90, 94-96 (1965). Fivemile Creek is tributary to the Copper River,
a navigable water of the United States [40 FERC ¶ 62,172].
20120503-3036 FERC PDF (Unofficial) 05/03/2012
Docket No. DI12-1-000 - 3 -
(B) This order constitutes final agency action. Any party may file a request
for rehearing of this order within 30 days from the date of its issuance, as provided in
section 313(a) of the FPA, 16 U.S.C. § 825l (2006), and the Commission’s regulations at
18 C.F.R. § 385.713 (2011). The filing of a request for rehearing does not operate as a
stay of the effective date of this order, or of any other date specified in this order. The
licensee’s failure to file a request for rehearing shall constitute acceptance of this order.
Charles K. Cover, P.E.
Chief, Project Review Branch
Division of Hydropower Administration
and Compliance
20120503-3036 FERC PDF (Unofficial) 05/03/2012
DEPARTMENT OF FISH AND GAME
DIVISION OF SPORT FISH
SEAN PARNELL, GOVERNOR
Research and Technical Services
333 Raspberry Road
Anchorage, Alaska 99518-1565
PHONE: (907) 267-2312
FAX: (907) 267-2422
January 23, 2012
Ms. Kimberly Bose, Secretary
Federal Energy Regulatory Commission
888 First Street
Washington D.C. 20426
Subject: DI112-1-000
Five Mile Creek Hydroelectric Project- Chitina Electric Inc.
Dear Ms. Bose:
Attached are department comments and currently identified issues relative to the above
referenced Declaration of Intent (DI). The department only became aware of the filing of the DI
and notice by FERC of the comment period on Thursday, January 12, 2012. We requested and
received information from the applicant on Friday, January 13, 2012.
As part of the filing of the DI, the applicant asks for a waiver of FERC regulations. Based on the
waiver request, the filing also appears to be a request for a jurisdictional determination. The
following comments as presented are based on very rapid coordination and turnaround within
our department and may be subject to modification when additional information becomes
available.
Thank you for consideration of our comments and concerns.
Sincerely,
/s/ Monte D. Miller
Monte Miller
Statewide Hydropower Coordinator
Alaska Department of Fish and Game
Division of Sport Fish/RTS
333 Raspberry Road
Anchorage, Alaska 99518-1565
e-copy: K. Meehleis, CRW Engineering Group, LLC
J. Durst, ADF&G, Habitat-Fairbanks
M. Sommerville, Sport Fish-Glennallen
R. Schwanke, Wildlife Conservation-Glennallen
DI 112-1-000
Fivemile Creek Hydroelectric Project
Chitina Electric Inc.
Filed By: CRW Engineering Group, LLC (CRW)
Alaska Department of Fish and Game Comments
January 23, 2012
General Statement
The proposed Fivemile Creek hydroelectric project appears to be a relatively low impact and
potentially beneficial project to the community of Chitina. The project features located above
the Edgerton Highway are in a steep gradient area with no identified fish resources (based on
limited study work by ABR in 2011). ADF&G agrees with the initial assessment of the habitat
availability above the Edgerton Highway. In limited sampling by ABR, Dolly Varden were
captured by minnow trap at a location below the Edgerton Highway. The extent of salmon use
of Fivemile Creek below the Edgerton Highway culvert barrier remains unknown. Factors
affecting trapping success may include method, timing of trapping and site selection (roe baited
traps are not effective on some species and effort may have been after outmigration occurred).
Specific Comments and Issues
1. In the CRW cover letter, the second bullet states that “Fivemile Creek is a steep, shallow,
mountainous, un-navagable waterway.” This statement is correct in areas from the headwaters
to the Edgerton Highway. However, the area below the Edgerton Highway is dissimilar in
gradient and habitat to the rest of the stream.
The filing by CRW describes the area below the Edgerton Highway as follows: “Fivemile Creek,
as its name implies, flows for ~5 miles, the last 2,500 feet emerging from a culvert which crosses
under the Edgerton Highway at milepost 23.4.” ABR stated “the powerhouse tailrace would
reintroduce diverted water back into the creek ~1,500 feet from its mouth at the Copper River
(PCA 2008).” This apparent placement of the tailrace is the only reference to an actual location
of the tailrace in this filing and would result in a 40% loss of habitat below the Edgerton
Highway.
The ABR Aquatic Resources Data Gap Analysis included in Appendix D of the CRW filing also
references a personal communication from ADF&G, Division of Sport Fish Area Management
Biologist (AMB) Mark Summerville stating the possibility of juvenile salmonids utilizing the
habitat below the Edgerton Highway. I received a personal communication on January 20, 2012
from James Durst, ADF&G Habitat Division AMB stating that Mark Summerville has seen
Chinook salmon fry in Fivemile Creek below the Edgerton Highway. Consequently, the
recommendation made by James Durst is:
“To avoid and minimize project effects on the rearing habitat downstream of the culvert, the
project tailrace should be placed as near as possible to the culvert outlet.”
Since there has been limited aquatic survey work completed in Fivemile Creek, below the
Edgerton Highway, ADF&G would welcome a focused study of this area to determine use and
subsequent impact which would result from this project.
2. The location of the diversion, penstock and project boundary are of potential concern to
ADF&G, Division of Wildlife Conservation AMB Rebecca Schwanke as identified in an e-mail
sent to James Durst on January 13, 2012.
“There is a well-known and well used trail that runs up the north side of Fivemile Creek, EIN 7
(Copper River Basin Easement Atlas; Valdez C2). This trail is used by many people for all
purposes including hunting, trapping, and wildlife viewing. The trail and the proposed project
are within the Tonsina Controlled Use Area, which limits hunters to non-motorized
transportation between July 26 and September 30. Many hunters in particular rely on this trail
to access higher elevation hunting areas on foot/bicycle during fall months, while hunters and
trappers rely on the trail for snowmachine access during the winter. I would like to make sure
ADF&G formally recognizes the current use and importance of this easement throughout this
process. I do not want to see this project somehow interfere with this legal easement and access
route as it is the only one in the northeast portion of the Tonsina Controlled Use Area.”
It is unknown what impact this project could have on this access trail and ADF&G would request
the applicant address this issue.
Fivemile Creek Hydro Project 65% Construction Drawings
RUSSIA
ANCHORAGE
NOME
KOTZEBUE
BARROW
JUNEAU
FAIRBANKS
CANADA
KODIAK
BETHEL
UNALASKA
CHITINA, ALASKA
65% DESIGN DRAWINGS
FIVEMILE CREEK HYDROELECTRIC PROJECT
SEPTEMBER 2014
CHITINA