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HomeMy WebLinkAboutGunnuk Creek Appendix EINSIDE PASSAGE ELECTRIC COOPERATIVE RESOLUTION NO. 2013-8 INSIDE PASSAGE ELECTRIC COOPERATIVE, INC. August 30, 2013 ENTITLED: AUTHORIZING THE CEO/GENERAL MANAGER TO APPLY FOR GRANT FUNDING FOR KAKE HYDRO RECONNAISSANCE WHEREAS, Inside Passage Electric Cooperative, the City of Kake, and the Organized Village of Kake (OVK) have pursued the electric transmission intertie between Kake and Petersburg since about 2001, which would allow IPEC to purchase firm power from the Southeast Alaska Power Agency (SEAPA); and WHEREAS, the recent reinstatement of the "Roadless Rule" in the Tongass National Forest along with inflation and other factors has increased the current estimated cost of the intertie to $66 million from the 2009 estimate of about $46 million; and WHEREAS, grant funding is limited from the State's Renewable Energy Fund to $8 million per project, and efforts to secure funding by legislative appropriation or Federal funding so far have not yielded any construction funding for the project; and WHEREAS, SEAPA has indicated that it cannot provide firm power to Kake unless or until it develops another large hydro project, which will likely take at least 10 years, and that the most SEAPA could offer is power for up to six months per year; and WHEREAS, the CEO/General Manager has recommended that the community of Kake and the IPEC Board consider "Plan B" solutions to reduce power costs to Kake in case the Kake- Petersburg Intertie does not come to fruition; and WHEREAS, the State Renewable Energy Fund has grant funding available for hydro reconnaissance, and the next round of grants is due September 24, 2013; and WHEREAS, the USDA Rural Utilities Service has a round of grants due September 3, 2013 for its High Energy Cost Grant Program; and WHEREAS, OVK has employed a local man, Adam Davis, to assist with stream gauging and hydro reconnaissance for the Gunnuk Creek watershed, which exists within eight miles of the community of Kake and currently provides the community's drinking water. NOW, THEREFORE, BE IT RESOLVED, that the IPEC Board of Directors authorizes the CEO/General Manager to apply for grant funding for the Kake hydro reconnaissance with the goal of reducing electric rates to the community. PASSED, APPROVED AND ADOPTED by a vote of 5 Yeas, Nays, and Absent this 30th day of August, 2013. P.O. Box 210149 Auke Bay, Alaska 99821 (907) 789.3196 Fax (907) 790-8517 Inside Passage Electric Cooperative Resolution 2013-8 Kake Hydro Reconnaissance August 30, 2013 Ric d e rge, Pre ent/C a ATTEST: f Wilbur Brown, ecretary/Treasurer