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HomeMy WebLinkAboutCEC REF VIII Appendicies Crater Lake Reconnaissance Report 9/19/2014 Cordova Electric Cooperative - Clay Koplin, PE This report summarizes a preliminary feasibility assessment of Crater Lake near Cordova, Alaska for a community hydroelectric supply and water storage project. Crater Lake Reconnaissance Report Page 1 Table of Contents TABLE OF CONTENTS .................................................................................................................................. 1 INTRODUCTION ........................................................................................................................................... 2 REPORT ELEMENTS ...................................................................................................................................... 3 Proposed Energy Resource ................................................................................................................................................. 3 Existing Energy System ........................................................................................................................................................ 3 Proposed System Design ..................................................................................................................................................... 5 Proposed System Costs ........................................................................................................................................................ 5 Project Benefits ..................................................................................................................................................................... 7 Energy Purchase/Sale ......................................................................................................................................................... 8 Land Ownership .................................................................................................................................................................... 8 Permits .................................................................................................................................................................................... 8 Environmental ........................................................................................................................................................................ 9 Analysis and Recommendations ......................................................................................................................................... 9 APPENDIX ................................................................................................................................................. 10  Exhibit A – Crater Lake Site Map and Conceptual Plan View  Exhibit B – Crater Lake Watershed  Exhibit C – Crater Lake Energy Estimate  Exhibit D – CEC kW and kWh Peak Loads 2011-2014  Exhibit E – CEC Tariff Rates  Exhibit F - Photos Crater Lake Reconnaissance Report Page 2 Crater Lake Reconnaissance Report H Y D R O E L E C T R I C A N D W A T E R S T OR A G E P R E -F E A S IB I L I T Y I N T R O D U C T I O N NEED: Over the past decade the community of Cordova, Alaska has experienced a growing demand for electricity and water. The growth is not only contributed to Cordova often ranking in the top 10 seafood delivery ports in the US by both volume and dollar value but the associated businesses, infrastructure and employees as well as increased tourism and population rebound. In 2002, Cordova Electric Cooperative (CEC) completed construction of the 6,000 kW Power Creek Hydroelectric Project. In 2011, CEC completed reconstruction of the 1,250 kW Humpback Creek Hydroelectric Project. The peak electrical demands for Cordova now exceed 9,000 kW, and the annual electrical supply averages 65% hydroelectric and 35% diesel generation. Both hydro projects are run-of-river and cannot store excess water for winter use. The City of Cordova municipal water supply is similarly inadequate to provide peak and annual water use, often relying on an expensive pumping and filtering plant to deliver water from Eyak Lake. OPPORTUNITY: Crater Lake has been considered as a water and hydroelectric energy source for Cordova in various studies including an early 1960 design for dam storage (Summit Lake Hydro-Electric Plant, Stan Sporseen, PE, North Pacific Consultants, Portland, OR and Anchorage, AK). A more recent and comprehensive study was performed by Merrell & Associates/Black & Veatch – January 1980, “Cordova Water Supply Feasibility Study” of which CEC has a copy. As the City of Cordova contemplated an expansion or upgrade of an existing water catchment from the Crater Lake outflow at elevation 200’, CEC evaluated the watershed, elevation, and land ownership of the Crater Lake basin, and determined that a hydroelectric project on the site was likely feasible. On June 30th of 2014, the CEC Board of Directors approved a $100,000 internal reconnaissance study to determine the pre-feasibility of Crater Lake for hydroelectric and community water storage and supply. FINDINGS: This report documents the results of this study, and recommends a feasibility study to develop a cost-benefit analysis to determine whether or not the site warrants design and construction of a combined energy and water storage project. Crater Lake Reconnaissance Report Page 3 REPORT ELEMENTS P R O P O S E D E N E RG Y R E S O U R C E The proposed Crater Lake power and water project would consist of a small (20’ x 30’) concrete dam at elevation 1560’ , a 3800’ long steel penstock, and a tidewater power plant of 500 – 2000 kW; Appendix Exhibit A, Crater Lake Site Map and Conceptual Plan View. From a careful tracement of an ARCGIS topographic map of the Crater Lake basin, the watershed was identified as approximately 167 acres of drainage per Appendix Exhibit B, Crater Lake Watershed. Cordova averages 148” of annual rainfall (http://www.usclimatedata.com/climate/cordova/alaska/united-states/usak0061 ). The outflow elevation of Crater Lake is at 1560’ of elevation. From these parameters, with an estimated accuracy of +/- 10%, Crater Lake is estimated to produce 2,000,000 kWh annually, with an annual water resource of 540,000,000 gallons per Appendix C, Crater Lake Energy Estimate. The generation unit(s) can be sized to assist CEC with meeting up to 16% of peak (kW) demands, and 7% of annual (kWh) use to meet the growing demand for electricity in Cordova and offset up to 30% of existing use of diesel fuel. The City of Cordova presently delivers approximately 350,000,000 gallons of potable water to the community, of which Crater Lake could provide a more significant amount of annual water needs. E X I S T I N G E N E RG Y S Y S T EM BASIC CONFIGURATION: CEC currently operates three power generation facilities and over 70 miles of underground and submarine power lines serving 1500 meters in Cordova. The three power plants, Orca Power Plant (diesel), Humpback Creek Hydro Plant (HBC – hydro), and Power Creek Hydro Plant (PC – hydro) have the following generation assets as itemized in Table 1 Below: TABLE 1 – CEC ELECTRIC GENERATORS AND BOILERS Plant Generator Make/Model kW Rating Age (years) Efficiency (kWh/gal)* or cfs rating Operating Hours to Date Orca Plant (diesel) Electromotive Diesel (EMD) 710-20 4000 7 12-15.5 kWh/gal 8471 Orca Plant (diesel) Electromotive Diesel (EMD) 645-20 2500 36 12-14 kWh/gal 117839 Orca Plant (diesel) Fairbanks-Morse (FM) OP 38TD81/8 2400 30 12-13.5kWh/gal 75681 Orca Plant (diesel) Caterpillar 3516 1125 30* 13.5-15 kWh/gal 35726* Orca Plant (diesel) Caterpillar 3516 1125 30* 13.5-15 kWh/gal 40654* Orca Plant (diesel) Boiler #1 PV905A 0.394 MMBTU/hr 30 150000 estimated Orca Plant (diesel) Boiler #2 AFG 0.394 MMBTU/hr 30 150000 estimated HBC (hydro) Francis – Dependable Turbine 500 25 50 cfs 8056 ** HBC (hydro) Francis – Dependable Turbine 500 25 50 cfs 11490 ** HBC (hydro) Turgo – Dependable Turbines 250 25 25 cfs 20604 ** PC (hydro) Turgo - Gilkes 3000 15 160 cfs 38012 PC (hydro) Turgo - Gilkes 3000 15 160 cfs 44404 * 1984 vintage Cats were purchased used in 1999 with an additional assumed 60,000 hours of use at that time ** Since July 2011 operation following turbine and generator rebuilds Crater Lake Reconnaissance Report Page 4 E X I S T I N G E N E RG Y S Y S T E M ( C ON TI N U E D … . ) CAPITAL AND REPLACEMENT COSTS: Capital and replacement costs vary widely by project. CEC endeavors to insure plants at their replacement value, and current insured plant values are as follows: Orca Diesel Power Plant (tanks, building equipment, etc) . . . $ 15,284,105 Humpback Creek Hydro Project (building, intake, turbines, xfmr, etc.)* . . $ 23,886,000 Power Creek Hydro Project (building, intake, turbines, xfmr, etc.)* . . $ 19,063,500 *Note: Bridges at HBC and PC are excluded from insurance binders ANNUAL O&M COST AND SCHEDULE: Annual O&M costs, by plant, are as follows: TABLE 2 – 2013 GENERATION PLANT ANNUAL O & M COSTS PLANT OPERATIONS MAINTENANCE TOTAL Orca Diesel Power Plant $359,522 $602,609 $962,131 Humpback Creek Hydro $144,736 $30,595 $175,331 Power Creek Hydro $378,303 $251,242 $629,545 TOTAL $882,561 $884,446 $1,767,007 Annual O&M schedules are determined by engine hours per manufacturer’s recommendations for the diesel generators. In general, diesel plant maintenance is during late fall when system electrical loads are in the 3,000 – 4,000 kW range and hydro plants provide 100% of the system energy. The general O&M schedule for hydro maintenance is in April for Power Creek when the plant output is at an annual minimum and loss of diesel fuel savings is minimized. The general O&M schedule for Humpback Creek is June, when Power Creek can provide 100% of system power needs before peak demands increase in late June. ANNUAL FUEL CONSUMPTION AND FUEL PRICE: The three year average fuel consumption for 2011-2013 was 781,032 gallons, 827,976 gallons, and 711,526 gallons respectively. Average price per gallon for each year was $3.58 for 2011, $3.82 for 2012, and $3.58 for 2013. Fuel costs were $2,796,095 for 2011, $3,162,868 for 2012, and $2,547,263 for 2013. LOAD INFORMATION: CEC has a highly variable load and kWh use profile. In general, residential, street light, and general electrical service rate classes are reducing their consumption per meter each year, with a record low 414 kWh per month per meter residential use in 2013. For these rate classes, and the large power rate class, monthly use is fairly consistent throughout the year. The processor (industrial) rate class has had a dramatic increase in summer peak system demands during the months of June, July, and August, accompanied by a modest increase in kWh energy use. The greatest demands occur during July and August. CEC set a new record peak demand of 9,400 kW in August 2014, with record kWh sales of over 4,000,000 kWh for July 2014. Annual sales have increased from 25,000,000 kWh annually to 28,000,000 kWh in 2013. A summary of August 2011 – August 2014 kWh use and kW peak demands by month are included in the Appendix Exhibit D. Crater Lake Reconnaissance Report Page 5 PLANS FOR SYSTEM UPGRADES: In 2011, CEC converted the last overhead power distribution lines to underground. The Orca Power Plant was built in 1984, Humpback Creek was built in 1991 with significant rebuild in 2011, and Power Creek was built in 2002. The relatively new infrastructure is in good operating condition with decades of expected life. A new distribution feeder was built to accommodate load growth and concentration in the industrial core of Cordova. Including standard diesel plant engine rebuilds and regular replacements, CEC does not anticipate significant system upgrades except for a substation upgrade, additional hydro development, and conservation and efficiency initiatives to offset and, ultimately, eliminate diesel fuel use in Cordova. RESIDENTIAL AND COMMERCIAL RATES: See Appendix Exhibit E, CEC Tariff Rates. Note that 2013 bus cost of hydropower was only 16.9% of the bus cost of diesel power. AVOIDED COST OF ENERGY: The fuel cost of energy from diesel generation is the dominating avoided cost of power with a hydro plant. The estimated Crater Lake avoided fuel cost for diesel generation at the current fuel price is $527,246. However, the variable costs of diesel maintenance, lube oil, fuel and oil filters, engine rebuilds, and higher general O&M costs are all additional avoided costs. PRO P O S E D S Y S TE M D E S IG N The basic system design proposal for Crater Lake is a conventional dam-penstock-pelton wheel high head hydroelectric project. The first tier of value resides in a design that fully utilizes the available water to directly offset the use of diesel fuel and delivers it to the City of Cordova municipal water system after the energy has been extracted. A second layer of value could result from designing the project to control Cordova system frequency to liberate 500 kW of hydroelectric capacity at the Power Creek Project and optimize diesel plant efficiency by providing spinning reserve with Crater Lake. System frequency control and the complex dispatch of both energy and water to balance an electric utility and a water utility’s demands will require robust modeling and system analysis. For purposes of reconnaissance, the effort was directed at assessing the energy value of the Crater Lake project as a simple storage and delivery project to develop a reasonable cost-benefit analysis to determine whether a detailed feasibility study is warranted. The proposed design for these purposes is the dam, penstock, and turbine power plant configuration of Appendix Exhibit A. DAM: A small concrete dam would raise the lake elevation. The 22 acre surface of the lake could increase to approximately 28 acres or more, resulting in 400 acre-feet of storage, or approximately ¼ of the annual water resource or 500,000 kWh of storage. Field reconnaissance indicates there are additional opportunities to expand the storage volume of the lake by building a larger dam or drawing the lake down on a seasonal basis pending regulatory restrictions and other stakeholder constraints. The dam will be one of the two most significant cost elements of the project. PENSTOCK: A 3800’ (plan view, actual would be somewhat longer) penstock will present one of the greatest project challenges. The penstock can follow the stream canyon with multiple angles and thrust blocks where suitable ground support can be contrived. An alternate route would embed the penstock in a talus slope for avalanche protection and support and would limit the penstock route to several very slight bends for improved hydraulic performance and reduced thrust block requirements. Alternatives could include a lake tap option, a partial lake tap option, or other conveyance means. Crater Lake Reconnaissance Report Page 6 TURBINE: The 2.42 cfs average stream flow results in an average kW output of 236 kW. However, low winter flows and fall flood events result in widely varying stream flows which would likely result in water spilling if the generator is sized to 250 kW or less. A 750 kW Pelton wheel generator would allow for use as a summer peaking plant when the current 9,400 kW peak demands exceed the combined 7,250 kW of existing hydro capacity in Cordova. A 750 kW Pelton would allow a +/- 300 kW of spinning reserve operating range around a 375 kW operating midpoint for sudden system load fluctuations. POWER PLANT: The power plant would be pre-fabricated off site as a modular plant that could be installed on a custom foundation built in Cordova to accommodate it. The dam, penstock, and power plant could be designed to facilitate construction and installation by local contractors if capabilities and availability suit construction design and schedule. Local contractors can sometimes be more flexible and avoid costly mobilization, demobilization, and standby costs when weather or other delays occur. On the other hand, local contractors can lack skills or capabilities essential to the quality and execution of the project construction. P R O P O S E D S Y S TE M C O S T S Project costs, based on historical Cordova construction costs, are anticipated to range from $5,000,000 to $10,000,000 for the proposed conventional dam, penstock, and Pelton wheel design. Additional project cost for a second 750 kW Pelton wheel for peaking and associated increases in switchgear, plant footprint, and penstock size are anticipated to add an additional $1,000,000 to $3,000,000 to project cost. Frequency control for providing system spinning reserve and time error correction are estimated to add an additional $1,000,000 to $3,000,000 for modeling, design, custom switchgear and turbine-generator-flywheel design. Cost estimates to date have been more qualitative than quantitative, and have considered the following cost elements; FEASIBILITY STUDY: A feasibility study for a conventional hydro project is anticipated to cost between $50,000 and $75,000 based upon rough order of magnitude (ROM) estimates from 3 different engineering firms. The deliverables for the feasibility study will include conceptual (20%) design, and an engineering cost/benefit analysis including lifecycle costs and net present value. ENGINEERING DESIGN: Engineering and Design are anticipated to range from $500,000 (conventional) to $1,000,000 (integrated system frequency control) and include field engineering, 90% design, preparation of construction and bid documents and bid support. Project management, construction engineering, and geotechnical evaluation would not be included. GEOTECHNICAL EVALUATION: A geotechnical evaluation including a minimum of two bore holes, one either side of dam footprint and associated assessment report are estimated to cost $500,000. PERMITTING: CEC anticipates that the project will be determined a non-jurisdictional FERC project. CEC has solicited estimates for all necessary permits with the State of Alaska Office of Project Management and Permitting (OPMP), and has received a quote for all necessary permits, which are not expected to exceed $100,000. There is a State DNR Dam Safety Permitting Process with associated fees that are estimated to cost $31,000 for a $10,000,000 project. Crater Lake Reconnaissance Report Page 7 CONSTRUCTION: Construction is estimated to range in cost from $4,000,000 to $8,000,000 including concrete dam, steel penstock, power plant and tailrace. The design would favor methods and means conducive to local contractors to minimize mobilization, demobilization, and standby costs and utilize locally available batch plants and construction resources where appropriate. The construction is anticipated to be completed in one season. PROJECT MANAGEMENT: The intention for project management is to use a combination of contract owners’ field representation and project management, and CEC project management and accounting staff. Project Management is estimated to cost $200,000. TRANSMISSION LINE: The preferred project site is located within 300’ of existing Humpback Creek project transmission line which has capacity to deliver more than 2,000 kW of additional load. The power transformer, pad, transmission line, and connection switch would be installed by CEC line crew force account labor. Electrical transformer and distribution are estimated to cost less than $250,000. LAND LEASES AND PURCHASES: CEC anticipates land leases not to exceed $25,000 annually. O&M AND FUEL COSTS: This project is anticipated to provide a net reduction of O&M costs. The project is anticipated to reduce fuel use costs as presented in the “Benefits” section below. PROJECT FINANCING: CEC anticipates a blended project financing portfolio including City of Cordova cost share for water storage and conveyance (dam and penstock), state and federal grant funds and financing, conventional financing through CoBank and/or CFC, and/or financing by Chugach Alaska Corporation or other project stakeholders. P R O J E C T B E N E F IT S The Crater Lake Power and Water Project offers the opportunity to provide community benefits that far exceed the benefits of a conventional hydropower plant. The direct, indirect, and intangible benefits include:  Reduced operations and maintenance cost of diesel alternative  Reduced fuel cost and regulatory/permitting requirements for internal combustion plant  Stored community water supply to provide adequate annual and peak demands  Leverage 500kW of hydro from Power Creek project – 2,000,000 kWh of diesel base load offset  Improve CEC diesel plant efficiency from an average 13.6 kWh/gallon to 14.1 kWh/gallon or better  Improve water and energy security (with storage) for community or regional disasters  Provide local and tribal economic benefits through construction and lease agreements  Demonstrate hybrid diesel-hydro micro grid technology and demonstrate agile project management  Reduce environmental impacts and the risks of handling and storing diesel fuel  Reduce Nitrous Oxide, Sulfur Dioxide, Particulate, and Carbon Emissions by hundreds of tons per year FUEL DISPLACEMENT: At current diesel fuel average price of $3.58 per gallon and average diesel plant efficiency of 13.58 kWh/gallon, the project is anticipated to result in annual fuel savings of 147,275 gallons or $527,246 annually. Crater Lake Reconnaissance Report Page 8 ANNUAL REVENUE: Since fuel costs are passed through to customers of the CEC system, the customers are anticipated to appreciate a significant reduction in cost of power adjustment (COPA) for fuel. Base rates would increase, if necessary, to amortize debt service on the project, which would offset, to some extent, the fuel savings. INTANGIBLE BENEFITS: The past development of hydropower in Cordova has positioned electric energy to be more cost effective than diesel fuel. As a result, the Cordova commercial fish processing rate class has invested tens of millions of dollars in shore-based processing that has resulted in sharp increase in State of Alaska and City of Cordova raw fish tax revenues. Stored energy and water provide essential services for community health and security. The benefits of a new, large volume, shared-cost water supply opportunity for the City of Cordova may offset necessary maintenance and upgrades of aged infrastructure. E N E R G Y P U R C H A S E / S A L E The Crater Lake Power and Water Project would immediately sell all available power and water into the existing CEC and City of Cordova systems. The 2,000,000 kWh resource would be strategically dispatched to offset a portion of the 6,000,000 – 9,000,000 kWh of annual diesel generation. The extended benefits of the capabilities of a frequency-control spinning reserve could result in an additional 2,000,000 kWh of diesel offset through Power Creek base loading and diesel plant efficiency. CEC would be owner/operator/retail seller of all energy produced by Crater Lake Power and Water project. L A N D O W N E RS H I P Crater Lake is bisected by a property line with The Eyak Corporation owning the north side, and State of Alaska with City of Cordova reservation on the south side. The penstock route could cross The Eyak Corporation, State of Alaska, City of Cordova, and Private (Orca Adventure Lodge) lands to a power plant located on City of Cordova, Private, The Eyak Corporation lands or a combination thereof per Appendix Exhibit A. CEC has met early and often with land owners and has enthusiastic support for the project from all 4 of them. CEC has executed MOUs to develop the project with The City of Cordova, The Eyak Corporation, and The Native Village of Eyak. CEC has met with community members and businesses of various rate classes and has met with no direct resistance or disapproval of the project, though recreational access has been a frequent question or concern. Cordova is very supportive of hydroelectric projects in general, and a storage project to offset winter diesel use in particular. The success of CEC’s two existing hydro projects has contributed significantly to the strong community support for hydropower. P E R M I T S All permits necessary for the project have been identified, and long-lead permits have already been received or are pending including Alaska DNR water rights and FERC non-jurisdictional determination. Additional permits have been identified by OPMP with a quoted budgetary cost of $52,000 for OPMP coordination, application, and processing of permits necessary for the project. There is a demonstrated presence of breeding stocked Rainbow Trout in Crater Lake, and CEC is currently working with the local office of Alaska Department of Fish and Game to assess the resource and necessary considerations for hydro development. The permitting timeline is not anticipated to create a bottleneck for the project. CEC anticipates executing an MOU with OPMP within 12 months if feasibility proves favorable. There are no anticipated regulatory barriers. Crater Lake Reconnaissance Report Page 9 E N V I R O N M E N T A L There are few known environmental barriers to the development of the Crater Lake Power and Water project. Stocked Rainbow trout are a concern. A trail easement along the lakeshore would be inundated in places. Early discussions indicate that relocating the trail will not be unduly difficult to administer or execute. The project has an otherwise small footprint, with a small pipeline that may be partially or completely buried, a small height concrete dam, and underground power lines. A N A L Y S IS A N D R E C O M M E N D A T IO N S CEC anticipates that it will prove feasible to develop Crater Lake as a combined hydropower and water supply for the community of Cordova, and anticipates proceeding with a feasibility study to develop a conceptual design and a cost-benefits analysis. It is recommended that the feasibility study consider frequency control and the dispatch of water to the City of Cordova water supply to maximize the net present value of the project and replace aging infrastructure or costly diesel fuel-based energy generation or use at both utilities. Crater Lake Reconnaissance Report Page 10 APPENDIX ExhibitAExhibit ACrater Lake Reconnaissance ReportSitMdCtlPlViSite Map and Conceptual Plan ViewSeptember 16, 2014 CRATERLATESITEMAPCRATER LATE SITE MAPOrcaLodgePower HouseCORDOVA Orca LodgePenstockDamProject BoundaryCRATER LAKECITY CENTERExisting Transmission/USGSCORDOVAC5Water Supply             Line CorridorUSGS CORDOVA C‐5 QUADRANGLE EXHIBIT BCRATERLAKECRATERCRATER LAKEWATERSHEDCRATER LAKE WATERSHED~167ACRES~ 167 ACRES Crater Lake ROM Power Generation Estimate Values (units vary)Elevation 1560Precipitation (in) 148Watershed (acres) 167Annual Resource (Acre‐feet) ‐ 85% capture 1751Annual Resource (cubic feet) 76,261,218           Annual Resource (gallons) 570,473,566         Average Streamflow (Q, cfs) 2.418                      Humpback Creek Elevation 160Humpback Creek kW/cfs 10Crater Lake / Humpback Creek Ratio 9.75Crater Lake kW/cfs 97.5Crater Lake Average kW 235.78                   Annual Average kWh 2,065,408              Note: An independent assessment for ROM generation by an engineering firm estimated 2,250,000 kWh annual productionExhibit C ‐ Crater Lake Energy Estimate Date kWh Sold KW Peak Date kWh Sold KW PeakAug‐11 3,066,102  6758 Mar‐13 1,640,298    4658Sep‐11 2,068,692  4667 Apr‐13 2,032,306    4205Oct‐11 1,418,199  3518 May‐13 2,176,962    4495Nov‐11 1,628,132  4562 Jun‐13 2,629,938    6631Dec‐11 1,865,154  4056 Jul‐13 3,651,519    7840Jan‐12 1,946,941  2928 Aug‐13 3,783,163    8396Feb‐12 1,792,022  3884 Sep‐13 2,075,300    4750Mar‐12 1,795,815  4533 Oct‐13 1,586,898    3378Apr‐12 1,824,633  3731 Nov‐13 1,689,405    3828May‐12 2,048,301  4313 Dec‐13 1,703,060    3663Jun‐12 2,439,076  6598 Jan‐14 1,554,991    3662Jul‐12 3,522,358  7360 Feb‐14 1,474,237    3444Aug‐12 2,886,570  7153 Mar‐14 1,626,098    3496Sep‐12 2,036,470  5084 Apr‐14 1,783,648    4173Oct‐12 1,684,246  3393 May‐14 1,986,747    4436Nov‐12 1,789,609  3758 Jun‐14 2,823,285    7422Dec‐12 1,847,452  3781 Jul‐14 4,007,454    8942Jan‐13 1,841,637  2798 Aug‐14 3,219,165    9385Feb‐13 1,691,507  3895EXHIBIT DCEC kW and kWh PEAK LOADS 2011‐2014 EXHIBIT F – PHOTOS    Picture 1 Crater Lake Panoramic East End Facing West 11‐5‐13    Picture 2 Crater Lake Outflow/Dam Site 11‐5‐13                                                Picture 3 Crater Lake East End Facing West 5‐17‐14                                          Picture 4 Crater Lake Facing West Toward Outflow 5‐17‐14                                             Picture 5 Crater Creek City Water Catchment El 200 6‐10‐14                                             Picture 6 Crater Creek @ Tidewater ‐ note 10' drop from culvert 6‐10‐14                                                 Picture 7 Crater Lake Outflow Stream Gage/Dam Site 8‐23‐14                                               Picture 8 Crater Lake Outflow ‐ note deep channel and helicopter reference to picture 7 8‐23‐14                                                 Picture 9 Crater Lake approaching steep grade facing west 8‐23‐14                                                  Picture 10 Facing East toward lake outflow with back facing picture 9 8‐23‐14  Cordova Electric Cooperative Strategic Plan (2024) & Operating Plan (2014-2015) Adoption Date Our Vision Energy Independence for Cordova Barb\Word\Board\Strategic Plan Our Core Purpose Produce and Distribute Electricity Our Core Values Cooperative | Sustainable | Reliable| Accountable | Affordable | Responsible Ten-Year Goal (2024) The CEC is 90% hydro self-sufficient, able to sell 100% of hydro power through the grid. Vivid Description for Long-Term Goal:  Overall, meeting this goal translates to success in achieving several critical outcomes.  First, the CEC must be effectively meeting the needs of members (surveys).  CEC must strategically add hydro-based or alternative generation capacity to reduce energy costs (value/number).  Second, CEC will be focused on debt reduction of $260,000 more per year than current debt schedules. Within just a few years the financial health of CEC will improve substantially, foremost with respect to debt load. Debt target: $7,500,000 by 1/1/2024  Third, the CEC ’s human resources infrastructure must be able to ke ep up with shifting workforce demographics.  CEC and its many stakeholders will have successfully established, fostered and leveraged local, regional and statewide relationships, with the outcome being that CEC is a strong candidate for being tied into the statewide power grid. Mid-Term Goal (2018-2019) CEC to reduce existing debt to $12.5 million as of 1/1/19 from the current $17.5 million (as of 1/1/14) Vivid Description for Mid-Term Goal:  Meeting the goal is a function of focused external advocacy, and a strengthened ability of the CEC, through partnerships, to secure outside funding to decrease CEC’s debt and improve sustainability.  CEC to pay down $260,000 per year more than debt schedules require  It is important to execute internal fiscal policy by controlling operating expenses. By concentrating on internal management the CEC board is better able to grow the significant value CEC provides to the membership.  Debt reduction should not preclude CEC from pursuing capital projects in pursuit of the 2024 goal.  LNG as an alternative fuel to diesel; o Highlight mutual interest in LNG at the community & regional level o Cultivate State and Federal Government Relations to support LNG if feasible Short-Term Goals / Annual Operating Plan (2014) Goals:  Conduct a feasibility study for Crater Lake Hydro Project as a basis for a cooperative agreement with the City of Cordova (CEC)  Provide necessary support for development of Shepard Point Road  Develop a strategy for converting to LNG (Diesels)  Long-term strategy for Unit 7  No lost-time accidents (safety standard)  Establish a Long-term transition plan (personnel)  Conduct a follow-up survey of membership Cordova Electric Cooperative Strategic Plan (2024) & Operating Plan (2014-2015) Adoption Date Our Vision Energy Independence for Cordova Barb\Word\Board\Strategic Plan o Develop metrics that allow Board and CEO to determine CEC success and opportunities for improvement  Board and leadership staff instill a Culture of Evaluation and Performance in the Board- CEO partnership o Includes Annual Board Self-Assessment and a structured process for enabling the full board to effectively evaluate the CEO and provide solid direction  (some may move to mid-term)Implement Member Outreach Plan/Communication Strategy o Annual Meeting Communication o Member Appreciation Event During Summer 2014 o Revamp Energy Efficiency Program  Evaluate LNG to reduce diesel fuel use/member cost  Manage budget to eliminate short term debt by 4/2015 with 12/2014 as a “stretch” goal.  (some may move to mid-term goals) Have in place a formal, recognized Sustainable Energy Coalition for LNG economies of scale evaluation and development Crater Lake Firms Listing 1-7-13 Hydro & Municipal Water Capable Engineering Firms Listing December 2013 Heather Williams MWH Americas, Inc. 1835 S Bragaw St, Suite 350 Anchorage, AK 99508 907-266-1165 direct 907-248-8884 fax Kirby Gilbert MWH Americas, Inc. Kirby.gilbert@mwhglobal.com c.206-650-5406 Morton D. McMillen, P.E. Chief Engineer McMillen LLC 1401 Shoreline Drive Boise Idaho 83702 p 208.342.4214 x301 | c 208.830.1394 morton.mcmillen@mcmillen-llc.com John K. Magee, P.E., F.SAME Group Manager – Industrial Projects R&M CONSULTANTS, INC. | 9101 Vanguard Drive | Anchorage, Alaska 99507 907.646.9656 direct | 907.748.7781 mobile | 907.522.3403 fax jmagee@rmconsult.com (may partner with Hatch, a hydro firm) Ken Fonnesbeck Mead & Hunt Mobile: 425-417-4803 ken.fonnesbeck@meadhunt.com | www.meadhunt.com Jeremiah (Jay) L. Maher Senior Manager - Environmental and Regulatory Group Office: 207.416.1239 Cell: 724.674.6145 Jay.Maher@KleinschmidtUSA.com www.KleinschmidtUSA.com Paul Berkshire & Jaci Mellott Becky Morris Paul Berkshire, P.E. Project Lead/Senior Engineer HDR 2525 C St., Suite 305 Anchorage, AK 99503 D 907.360.1015 Jaci.Mellott@hdrinc.com Becky.Morris@hdrinc.com paul.berkshire@hdrinc.com hdrinc.com/follow-us Progress Report for AEA Grant HBC November10.docx  Progress Report for AEA Grant     Grantee: Cordova Electric Cooperative, Inc.    Project Name:  Humpback Creek Hydroelectric Construction    Grant #2195386    Period of Report: November 1, 2010 to November 30, 2010  Prepared:    December 7, 2010    Project Activities Completed:    November was a productive month, and while winter weather and low daylight hours impacted  productivity, progress was good, though Thanksgiving week and weekend consumed a week.   With the bentonite in the creek bed contained between the two sheet pile walls, the contractor  was able to fully clean and expose rock for geotechnical inspections and confirmation of the  grouting plan.  Rock along the tailrace was excavated, and electrical, tunnel walkway, and other  inside work advance significantly through the month.  Bridge modifications including adding  structural support, removing the suspension cable, and jacking and shimming the penstock to  the proper camber across the bridge were also completed this month.  Approximately 1/3 of  the new penstock supports were added to the penstock, but the concrete foundations will need  to be added next summer, along with the balance of supports.  This work will be accomplished  with the penstock full and the project in operation.  Penstock coating and dresser coupling  maintenance work will commence once the supports are in place next summer.    Please note attached pictures reflecting the activities outlined above.  They are taken from daily  reports and are in chronological order.  Daily reports are available upon request.      Based on current progress due the project is now scheduled to be in operation by January 2011.    Existing or Potential Problems:  There are currently no additional problems anticipated.  The creek bed has been exposed, and  all project activities, excavations, and foundation work are clearly defined.    Activities Targeted for Next Reporting Period:  December activities include pressure testing the grout holes, pressure grouting (curtain  grouting) the grout holes, forming and pouring the diversion dam structure.  High voltage  electrical and fiber options will be installed, and the majority (95%) of inside electrical work will  be completed.  Progress Report for AEA Grant HBC November10.docx    The Transformer Vault  Cleaning Rock at the Diversion Site – Note Hard Rock  Lyle Darbying External Sluice Ramp Pour    First Conduit Pulled to Power House (high voltage)  Closeup of Diversion Location  Another High Flow Event – 275 CFS  Progress Report for AEA Grant HBC November10.docx  Diversion Tunnel Handles High Flow Adequately  Tunnel Air Duct Ready For Pour  Lyle Patched and Smoothed Control Room  Debris Slab Nearly Completed  Forming the E+6 Wall for Dental Concrete in Creek  Transformer Vault Forms    Progress Report for AEA Grant HBC November10.docx  Electrical Conduits Complete in Tunnel  Manway Welded to Penstock – last steel piece  Pouring E‐Line Dental Concrete    E+6 Wall Ready to Pour  A‐Line Pilaster With a Hole for Vibrating  Pouring the Air Vent at C‐4    Progress Report for AEA Grant HBC November10.docx  Extreme Access Shimming the Penstock Across Bridge  Welding the High Voltage Junction Box Lower Portal  Forms and Bending Table in the Creek    “D” Line Upstream Edge of the Dam  Site Safety During Penstock Coating Work  8” HDPE to Carry Bentonite Water and Silt to Beach      Progress Report for AEA Grant HBC November10.docx    Diversion Dam Rebar, Note Straddles Hard Rock Seam  Heating the Roof for Waterproof Membrane  Intake Rebar Matrix Hugging the Rock  Lighting In the Control Room  Gary Insulating the Control Room  Rebar Mat Looking Left Toward E Line  Progress Report for AEA Grant HBC November10.docx  Intake Pour Between E and D lines  Control Room Insulation    Elevation 257 Slab  Tunnel Lighting Completed – On Temporary Power    Control Room Panel A    Intake After Thanksgiving Break