HomeMy WebLinkAboutGrant Application 5 IP Design Permit
Prepared by:
INDEPENDENCE POWER, LLC
1503 West 33rd Avenue, Suite 310
Anchorage, Alaska 99503
Tel: (907) 258-2420
Fax: (907) 258-2419
FOURTH OF JULY CREEK HYDROELECTRIC PROJECT
AEA-12-001 RENEWABLE ENERGY GRANT APPLICATION
ROUND 5 – FY 2013
AUGUST 26, 2011
Renewable Energy Fund Round 5
Grant Application
AEA 12-001 Application Page 1 of 29 7/1/2011
Application Forms and Instructions
The following forms and instructions are provided to assist you in preparing your application for
a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA)
and the forms are available online at: http://www.akenergyauthority.org
Grant Application
Form
GrantApp5.doc Application form in MS Word that includes an outline of
information required to submit a complete application.
Applicants should use the form to assure all information is
provided and attach additional information as required.
Application Cost
Worksheet
Costworksheet
5.doc
Summary of Cost information that should be addressed by
applicants in preparing their application.
Grant Budget
Form
GrantBudget5.
doc
A detailed grant budget that includes a breakdown of costs by
milestone and a summary of funds available and requested to
complete the work for which funds are being requested.
Grant Budget
Form Instructions
GrantBudgetIn
structions5.doc
Instructions for completing the above grant budget form.
Authorized
Signers Form
Authorized
signers
form5.doc
Form indicating who is authorized to sign the grant, finance
reports and progress reports and provides grantee information.
If you are applying for grants for more than one project, provide separate application
forms for each project.
Multiple phases 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 completion of each phase.
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 satisfied and funding for an advanced phase is warranted.
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.
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.
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 is 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
Grant Application Round 5
Fourth of July Creek Hydroelectric Project Design and Permitting
Independence Power, LLC
AEA12-001 Grant Application Page 2 of 14 8/26/2011
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Independence Power, LLC
Type of Entity: Fiscal Year End December 31
Alaska Limited Liability Corporation
Tax ID #26-4393105 Tax Status: X For-profit or non-profit ( check one)
Mailing Address
1503 West 33rd Avenue, Suite 310
Anchorage, AK 99503
Physical Address
SAME
Telephone
907-258-2420
x202
Fax
907-258-2419
Email
dave@polarconsult.net
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
David Ausman
Title
Project Manager
Mailing Address
1503 West 33rd Avenue, Suite 310
Anchorage, AK 99503
Telephone
907-258-2420
x202
Fax
907-258-2419
Email
dave@polarconsult.net
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
X 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);
Yes
1.2.2. Attached to this application is formal approval and endorsement for its project by
its 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 Yes or No in the box )
Yes
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.
Yes
1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached
grant form. (Any exceptions should be clearly noted and submitted with the
application.)
Yes
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.
Renewable Energy Fund
Grant Application Round 5
Fourth of July Creek Hydroelectric Project Design and Permitting
Independence Power, LLC
AEA12-001 Grant Application Page 3 of 14 8/26/2011
SECTION 2 – PROJECT SUMMARY
This is intended to be no more than a 1-2 page overview of your project.
2.1 Project Title – (Provide a 4 to 5 word title for your project)
Fourth of July Creek Hydroelectric Project Design and Permitting
2.2 Project Location –
Include the physical location of your project and name(s) of the community or communities that will
benefit from your project.
The project is located on Fourth of July Creek near Seward, Alaska. The project and
appurtenances would occupy portions of Sections 7, 8, 9, 16, 17, 18 of Township 1S, Range 1E,
Seward Meridian (USGS quad map Seward D7SE). The project powerhouse would be located at
approximately 6005'24" N, 14916'41" W.
The project would most directly benefit Seward, Alaska, and surrounding communities. More
generally, the project would benefit railbelt communities.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind Biomass or Biofuels
X Hydro, including run of river Transmission of Renewable Energy
Geothermal, including Heat Pumps Small Natural Gas
Heat Recovery from existing sources Hydrokinetic
Solar Storage of Renewable
Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Reconnaissance X Design and Permitting
Feasibility Construction and Commissioning
Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
The Fourth of July Creek Hydroelectric Project is a low-impact run-of-river renewable energy
project proposed near Seward, Alaska. The project would be located east of the Spring Creek
Correctional Facility and Fourth of July Creek Industrial Park, across Resurrection Bay from the
City of Seward. The project is anticipated to have an installed capacity of 5.4 MW and provide an
estimated 21,700 MWh of energy annually. The project would supply approximately 1/3rd of
Seward Electric System's annual energy requirements.
This proposed project phase (design and permitting) is contingent upon the favorable outcome of a
feasibility study that is scheduled to start in September 2011. In the event the feasibility study
determines that the project is not viable, Independence Power, LLC (IP) intends to withdraw this
application from consideration.
Renewable Energy Fund
Grant Application Round 5
Fourth of July Creek Hydroelectric Project Design and Permitting
Independence Power, LLC
AEA12-001 Grant Application Page 4 of 14 8/26/2011
2.5 PROJECT BENEFIT
Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel
costs, lower energy costs, etc.)
This project would provide the following financial benefits:
Item Value
Displaced Fuel (Cook Inlet Natural Gas / Diesel Fuel)
Est. Annual Value of Displaced Fuel ($ / year) $1.68 million
Estimated Present Value of Displaced Fuel (50 years) $43.0 million
Increased SES / CEA Grid Efficiency
Estimated Annual Value of Grid Efficiency $66,300
Estimated Present Value of Grid Efficiency (50 years) $1.7 million
Environmental Attributes
Estimated Annual Value of Environmental Attributes $200,000
Estimated Present Value of EAs (50 years) $3.9 million
Capacity
Estimated Present Value of Capacity $1.6 million
TOTAL ESTIMATED PROJECT BENEFITS $50.2 million
The project would provide the following public benefits:
1. Local jobs and economic activity from project construction and operations.
2. Improved reliability and stability of the local power grid.
3. Increased diversity of energy sources in Seward and on the railbelt.
4. Reduced demand for Cook Inlet natural gas.
5. Additional local capacity to enable SES to take on new industrial loads, such as furnishing
shore power to cruise ships.
6. Opportunity for educational curriculum with AVTEC.
2.6 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source
of other contributions to the project.
IP requests FY11 grant funds to complete the design and permitting phase of the project. The total
budget for this phase is $1,790,000. IP requests $1,521,000 in grant funds, and will provide the
remaining $269,000 as cash and/or in-kind services.
2.7 COST AND BENEFIT SUMARY
Include a summary of grant request and your project’s total costs and benefits below.
Grant Costs
(Summary of funds requested)
2.7.1 Grant Funds Requested in this application. $1,521,000
2.7.2 Other Funds to be provided (Project match) $269,000
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $1,790,000
Renewable Energy Fund
Grant Application Round 5
Fourth of July Creek Hydroelectric Project Design and Permitting
Independence Power, LLC
AEA12-001 Grant Application Page 5 of 14 8/26/2011
Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get to a fully
operational project)
2.7.4 Total Project Cost (Summary from Cost Worksheet
including estimates through construction)
$16,700,000
2.7.5 Estimated Direct Financial Benefit (Savings) $42,000,000
2.7.6 Other Public Benefit (If you can calculate the benefit in
terms of dollars please provide that number here and
explain how you calculated that number in your application
(Section 5.)
See Narrative
Renewable Energy Fund
Grant Application Round 5
Fourth of July Creek Hydroelectric Project Design and Permitting
Independence Power, LLC
AEA12-001 Grant Application Page 6 of 14 8/26/2011
SECTION 3 – PROJECT MANAGEMENT PLAN
Describe who will be responsible for managing the project and provide a plan for successfully
completing the project within the scope, schedule and budget proposed in the application.
3.1 Project Manager
Tell us who will be managing the project for the Grantee and include contact information, a
resume and references for the manager(s). 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.
The Project Manager is David Ausman, PE. Mr. Ausman has experience evaluating,
designing, permitting, and operating hydroelectric projects similar to the proposed project
in southcentral Alaska. Resumes and references are included in Attachment A.
No project management assistance from AEA or other government entities is expected for this
project.
3.2 Project Schedule
Include a schedule for the proposed work that will be funded by this grant. (You may include a
chart or table attachment with a summary of dates below.)
IP completed a reconnaissance study and initial feasibility assessment of the project in
2009. A full feasibility study is scheduled to be completed by August 2012. Design and
permitting would begin upon completion of the feasibility study and require 28 months to
complete. Final completion of the design and issuance of project permits is scheduled for
December 2014.
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them. The
Milestones must also be included on your budget worksheet to demonstrate how you propose to
manage the project cash flow. (See Section 2 of the RFA or the Budget Form.)
Milestone Scheduled Completion
1. Contractor Solicitations August 2012
Permit Applications 2010 (already completed)
2. Technical and Environmental Field Studies October 2013
3. Final Environmental Assessment / Documents November 2013
4. Secure Land Rights (ROWs, leases) March 2014
5. Receive Project Permits May 2014
6. Final Project Design August 2014
7. Engineer’s Cost Estimate September 2014
8. Final Economic and Financial Analysis October 2014
9. Final Power Sales Contract December 2014
10. Final Business and Operational Plan December 2014
Renewable Energy Fund
Grant Application Round 5
Fourth of July Creek Hydroelectric Project Design and Permitting
Independence Power, LLC
AEA12-001 Grant Application Page 7 of 14 8/26/2011
3.4 Project Resources
Describe the personnel, contractors, equipment, and services you will use to accomplish the
project. Include any partnerships or commitments with other entities you have or anticipate will
be needed to complete your project. Describe any existing contracts and the selection process
you may use for major equipment purchases or contracts. Include brief resumes and references
for known, key personnel, contractors, and suppliers as an attachment to your application.
IP's members are all professional civil engineers with extensive experience in designing,
constructing, and operating small run-of-river hydroelectric projects in Alaska, such as the
Fourth of July project. IP will manage and/or conduct all pre-construction activities, such
as the feasibility study, conceptual design and final design. Some activities may be
completed by appropriately qualified entities under subcontract to IP.
In the construction phase of the project, IP will retain bids from multiple
vendors/contractors for construction and major equipment supply. IP will select
vendors/contractors based upon the best interests of the project.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
IP will keep AEA apprised of pre-construction project status by issuing quarterly project
status reports that conform with AEA’s standard reporting templates. The reports will
include a brief (1 page) report including a narrative of current project status, activities in
the current quarter, problems encountered, and anticipated activities in the following
quarter. The report will also include a budget status summary.
As warranted, IP may also advise the AEA grant manager of upcoming events such as field
visits on an as-needed basis.
3.6 Project Risk
Discuss potential problems and how you would address them.
Major project risk items that IP has identified to date are listed and discussed below:
1) Resource Hydrology. Fourth of July Creek has a significant bed load, and is prone
to frequent flooding. The intake structure will be designed to reliably handle
frequent flooding and high-volume sediment transport. IP has already collected
one year of discharge data for Fourth of July Creek, capturing one significant flood
event in July 2009. This hydrology data will enable IP to better characterize flood
hazards and appropriate design parameters for the project. Review of the project
site and available information indicates this risk can be addressed by proper project
design.
2) Overall project cost and economic feasibility. IP will develop a project cost estimate
as part of the feasibility study. The feasibility-phase field investigations will allow
preparation of a detailed cost estimate to evaluate project cost and economic
feasibility.
3) Permit Risk. Initial consultations and permit application review with resource agencies
have not identified any resource issues that may jeopardize project viability.
Renewable Energy Fund
Grant Application Round 5
Fourth of July Creek Hydroelectric Project Design and Permitting
Independence Power, LLC
AEA12-001 Grant Application Page 8 of 14 8/26/2011
SECTION 4 – PROJECT DESCRIPTION AND TASKS
Tell us what the project is and how you will meet the requirements outlined in Section 2 of
the RFA.
The level of information will vary according to phase(s) of the project you propose
to undertake with grant funds.
If you are applying for grant funding for more than one phase of a project provide a
plan and grant budget form for completion of each phase.
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 satisfied and funding for an advanced phase is warranted.
4.1 Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available.
Discuss 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.
The proposed energy resource is a run-of-river hydropower resource located along Fourth
of July Creek near Seward. Development of the resource would consist of:
An intake structure, which may include a dam up to 40 feet tall, located on Fourth of
July Creek at an elevation of about 750 feet (dam spillway elevation of 790 feet),
which is at the head of a prominent canyon located about three river-miles from
tidewater;
A 6,100 foot long, 48-inch diameter penstock to convey 120 cubic feet per second (cfs)
of water;
A powerhouse with 5.4 MW of installed generating capacity located at an elevation of
about 120 feet, located near the outlet of the same canyon;
A tailrace to return project waters to Fourth of July Creek;
A transmission line to connect the powerhouse to the City of Seward’s electrical
system;
Access roads and trails; and
Appurtenant facilities.
Based on one year of hydrology data on Fourth of July Creek and analysis of long term
hydrology data for adjacent basins, the resource is estimated to provide approximately
21,700 megawatt-hours (MWh) of energy in a typical water year. This equates to roughly
1/3rd of the Seward Electric System (SES)’s annual energy requirements. Power output
from the project calculated from 2008-09 hydrology and expected hydrology based on
hydrology data for nearby basins are presented in the figure below.
Alternative energy resources available to this market include all alternatives available to the
railbelt energy grid, which principally include: natural gas, diesel/oil, coal, storage hydro,
run-of-river hydro, hydrokinetic, wind, geothermal, and tidal. Many of these resources are
not in the immediate Seward vicinity. Currently, local generation in Seward is limited to
diesel generation. There is a small hydro project just west of town that is not operational.
Overall, this project is competitive with other renewable and nonrenewable generation
options available to the railbelt.
Renewable Energy Fund
Grant Application Round 5
Fourth of July Creek Hydroelectric Project Design and Permitting
Independence Power, LLC
AEA12-001 Grant Application Page 9 of 14 8/26/2011
0
1,000
2,000
3,000
4,000
5,000
6,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
DateDaily Average Power Generation (kW)Expected Power Generation
(From Hydrology Model)
Expected Power Generation
(From 2008-09 Discharge Data)
Expected Fourth of July Creek Power Generation
4.2 Existing Energy System
4.2.1 Basic configuration of Existing Energy System
Briefly discuss the basic configuration of the existing energy system. Include information about
the number, size, age, efficiency, and type of generation.
The project would be connected to the SES grid, which is interconnected with the railbelt
energy grid. Seward has diesel generators located in town to provide firm capacity for the
town during episodes when the transmission line is down or CEA interrupts service to SES.
4.2.2 Existing Energy Resources Used
Briefly discuss your understanding of the existing energy resources. Include a brief discussion of
any impact the project may have on existing energy infrastructure and resources.
Under normal operating conditions, SES purchases wholesale power from Chugach Electric
Association (CEA) and through CEA the Alaska Energy Authority (AEA, Bradley Lake
Hydroelectric Plant). Seward receives one percent of the output from Bradley Lake, and
the balance of its power is normally provided by CEA. SES' supply contract with CEA
allows CEA to interrupt service under certain conditions. When energy is not provided by
CEA, SES relies 100% on local diesel generation.
The project would not significantly impact existing energy infrastructure. The project
would interconnect with the SES grid at a point where that system is capable of receiving
the full project output. This project is expected to improve voltage and frequency stability
Renewable Energy Fund
Grant Application Round 5
Fourth of July Creek Hydroelectric Project Design and Permitting
Independence Power, LLC
AEA12-001 Grant Application Page 10 of 14 8/26/2011
on the SES system.
Under normal operating conditions, the project would offset natural gas-fired generation in
the Cook Inlet basin. This would incrementally reduce the demand for Cook Inlet natural
gas, extending the life of the Cook Inlet gas fields. This would directly benefit the residents
of the railbelt, which rely on that gas supply for affordable electricity and heating
requirements. The volume of natural gas offset by this project is a significant benefit to the
public.
When the transmission line to CEA is out of service (outage), this project would displace
diesel fuel burned by SES's diesel generators. During the summer months, this project
could serve approximately 30 to 50% of SES average system load. During the winter
months, the project could serve approximately 5 to 20% of SES average system load. The
actual load that could be served would depend on the size of the system load, installed
project capacity, and water availability at the time of the outage.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
The existing energy market is the six railbelt utilities, SES, CEA, Homer Electric
Association (HEA), Matanuska Electric Association (MEA), Municipal Light & Power
(MLP), and Golden Valley Electric Association (GVEA). SES is the logical customer for the
electrical output of this project. Sale to other railbelt utilities is possible, but would need to
consider (1) wheeling costs over SES, CEA, and other transmission lines, (2) capacity
limitations on certain transmission lines within the railbelt grid, and (3) transmission
interruptions.
Renewable Energy Fund
Grant Application Round 5
Fourth of July Creek Hydroelectric Project Design and Permitting
Independence Power, LLC
AEA12-001 Grant Application Page 11 of 14 8/26/2011
4.3 Proposed System
Include information necessary to describe the system you are intending to develop and address
potential system design, land ownership, permits, and environmental issues.
4.3.1 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
Basic integration concept
Delivery methods
Technical parameters of the Fourth of July Creek Project are summarized and discussed
below.
Parameter Value
Intake Elevation (ft) 790'
Powerhouse Elevation (ft) 120'
Gross Head (ft) 670'
Net Head (ft) 636'
Penstock Length (ft)
and diameter (inches)
6,100’ of
48” pipe
Design Flow (cfs) 120
Installed Capacity (kW) 5,400 kW
Plant Capacity Factor 47%
Minimum Annual Output (kW) 240 kW
Net Annual Energy Generation (kWh) 21,700,000 kWh
Transmission Length (mi) 2 miles
Intake structure. The intake structure will be located at about the 750’ elevation on
Fourth of July Creek. The structure will be 40 feet tall and will divert water from the
creek up to the design flow of 120 cfs. Water will pass through a settling basin,
screens, and other apparatus to remove deleterious materials from the water and
discharge clean water to the penstock. Filtered materials would be returned to the
creek below the intake structure. The intake structure will be designed to handle the
significant bed loads and frequent flooding characteristic of Fourth of July Creek.
Penstock. The penstock will be approximately 48 inches in diameter, and will convey
water from the intake 6,100 feet to the powerhouse. The penstock will be constructed
above ground, partially buried, or fully buried depending on geotechnical conditions
along the penstock route. Power and communications between the intake and
powerhouse will be co-located with the penstock. The penstock alignment will
generally serve as the access route to the intake for construction, maintenance and
operations.
Renewable Energy Fund
Grant Application Round 5
Fourth of July Creek Hydroelectric Project Design and Permitting
Independence Power, LLC
AEA12-001 Grant Application Page 12 of 14 8/26/2011
Powerhouse. The powerhouse will accommodate the turbines, generators, switchgear,
controls, and associated equipment for the project. It will be located at an elevation of
approximately 120 feet near Fourth of July Creek.
Generation equipment. The project would have two 2.7 MW two-jet pelton turbines.
Each turbine would drive a synchronous generator.
Tailrace. Water from the powerhouse will be discharged via a short tailrace back into
Fourth of July Creek.
Transmission Line. Power generated by the project will be transmitted via a new
transmission line approximately two miles to SES’s existing substation at the
intersection of Nash Road and Jellison Avenue. The point of interconnection with the
SES system will be at the end of this transmission line.
Access. Access to the project will be via approximately one mile of new unpaved road
extending east from either the Correctional Center or City Quarry.
The project will have an installed capacity of 5.4 MW. The installed capacity may be adjusted
as additional hydrology data is collected and project feasibility studies are completed. Final
installed capacity will depend largely on the outcome of hydrology studies, final gross head,
economic evaluation to optimize project cost and resource utilization, and efficiency of the
selected turbine-generator package.
Based on existing hydrology information, a 5.4 MW project on Fourth of July Creek will have
a capacity factor of 0.47.
4.3.2 Land Ownership
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.
The project intake, penstock, and powerhouse are all located entirely on state lands. Most of
the access road and transmission line would be located on land owned by the City of Seward.
IP has filed applications with the Alaska Department of Natural Resources for land easements
for the linear features of the project (access roads, power line, penstock), and land leases for
the powerhouse and intake locations. IP has held informal discussions with the Seward City
Manager regarding an access agreement for the project, and does not anticipate that the
access agreement will be problematic. Formal discussions for the access agreement would be
advanced as part of the feasibility study.
Renewable Energy Fund
Grant Application Round 5
Fourth of July Creek Hydroelectric Project Design and Permitting
Independence Power, LLC
AEA12-001 Grant Application Page 13 of 14 8/26/2011
4.3.3 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 discussion of potential barriers
The following permits and approvals have been identified as being required for this project:
Water Use Permit / Water Rights (ADNR)
Land Lease/easement (ADNR)
Fish Habitat Permit (ADFG)
Corps of Engineers wetlands permit
Alaska Coastal Management Program Consistency Review (ACMP)
Utility certification or exemption (RCA)
Finding of non-jurisdiction (FERC)
Archeological consultation (SHPO)
Permit applications for key permits have been submitted by IP.
4.3.4 Environmental
Address 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 discuss other potential barriers
Compatibility of the project with environmental considerations has been reviewed. Key initial
findings are summarized below.
Fish Habitat. The project is located above fish habitat as designated on the Atlas of
Waters Important to the Rearing and Spawning of Anadromous Fishes. ADFG has
not yet made a fish habitat determination on this project, but IP's site
reconnaissance indicates that the project is unlikely to have any adverse impact on
anadromous fish habitat. IP is working with ADFG to schedule a site visit to the
project.
Threatened or Endangered Species. U.S. Fish and Wildlife Service and National
Marine Fisheries Service were contacted as part of completing the Coastal Project
Questionnaire. Neither agency has designated the project vicinity as critical
habitat for threatened or endangered species.
Renewable Energy Fund
Grant Application Round 5
Fourth of July Creek Hydroelectric Project Design and Permitting
Independence Power, LLC
AEA12-001 Grant Application Page 14 of 14 8/26/2011
Aesthetics. The project will have negligible if any adverse aesthetic impact. The
project’s most visible feature will be roads and power lines, which are common
sights in the general vicinity. The project is located in a part of Seward that is used
for industrial and institutional (correctional facility) purposes. The project would
be mostly located in an undeveloped area in the mountains east of the state prison.
The project would not be visible from the city of Seward or from Resurrection Bay.
The project would be visible from the air in the project’s immediate vicinity.
The project is not expected to fill a significant area of wetlands. The project would
be permitted either under a nationwide permit #17 or an individual permit.
No archeological or cultural resources are known to be in the project vicinity.
SHPO will be consulted as part of the feasibility study.
Land development constraints. None known.
Telecommunications Interference. None known.
Aviation Considerations. None known.
4.4 Proposed New System Costs and Projected Revenues
(Total Estimated Costs and Projected Revenues)
The level of cost information provided will vary according to the phase of funding requested and
any previous work the applicant may have done on the project. Applicants must reference the
source of their cost data. For example: Applicants Records or Analysis, Industry Standards,
Consultant or Manufacturer’s estimates.
4.4.1 Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of
the project. Cost information should include the following:
Total anticipated project cost, and cost for this phase
Requested grant funding
Applicant matching funds – loans, capital contributions, in-kind
Identification of other funding sources
Projected capital cost of proposed renewable energy system
Projected development cost of proposed renewable energy system
IP has prepared an opinion of probable cost for the project of $16.7 million, or $3,100 per kW
of installed capacity.
4.4.2 Project Operating and Maintenance Costs
Include anticipated O&M costs for new facilities constructed and how these would be funded by the
applicant.
(Note: Operational costs are not eligible for grant funds however grantees are required to meet
ongoing reporting requirements for the purpose of reporting impacts of projects on the communities
Renewable Energy Fund
Grant Application Round 5
Fourth of July Creek Hydroelectric Project Design and Permitting
Independence Power, LLC
AEA12-001 Grant Application Page 15 of 14 8/26/2011
they serve.)
Project operation and maintenance costs are projected to be approximately $300,000
annually. A detailed financial management plan would be part of the business plan that
would be developed in the design phase of the project.
No grant funding is requested for operations and maintenance costs.
4.4.3 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
The projected energy costs in AEA’s 2011 energy model and spreadsheet using the mid-range
EIA energy forecasts for the southern railbelt are used as estimated power purchase rates.
These start at $9.0 cents/kWh in 2014.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered in
evaluating the project.
The Cost Worksheet is attached at the end of this application. Projections and calculations
are performed using AEA’s current project evaluation spreadsheet.
SECTION 5– PROJECT BENEFIT
Explain the economic and public 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:
Potential annual fuel displacement (gal and $) over the lifetime of the evaluated renewable
energy project
Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price,
RCA tariff, or cost based rate)
Potential additional annual incentives (i.e. tax credits)
Potential additional annual revenue streams (i.e. green tag sales or other renewable energy
subsidies or programs that might be available)
Discuss the non-economic public benefits to Alaskans over the lifetime of the project
Financial benefits
1. Avoided fuel costs. The project will predominately displace energy generated by
burning Cook Inlet natural gas. Using an assumed long term railbelt average turbine
heat rate of 8,500 btu/kWh and long term natural gas cost of $9.00 per MCF, the
financial benefit of avoided natural gas costs is estimated at $1,650,000 annually.
SES is assumed to rely on diesel generation for an average of one week per year for the
long term. This is due to transmission outages and/or CEA interruptions. At a diesel
Renewable Energy Fund
Grant Application Round 5
Fourth of July Creek Hydroelectric Project Design and Permitting
Independence Power, LLC
AEA12-001 Grant Application Page 16 of 14 8/26/2011
generation efficiency of 14 kWh per gallon and fuel cost of $3.50 per gallon, the
avoided diesel costs are $23,100 annually.
The total avoided fuel cost is $1,673,100 annually.
2. Increased railbelt grid efficiency. CEA tariff filings with the RCA indicate that CEA's
system losses for energy delivered to SES are about 3%. Local generation near Seward
will displace these losses. Additionally, losses on the SES system for energy purchased
from CEA are estimated at 1.5%. Comparable losses for energy delivered from the
Fourth of July Creek project are estimated at 0.5%, for an estimated 1% net gain in
efficiency on the SES system. The estimated total net gain in railbelt grid efficiency is
4.0%. Using the same assumptions in (1) above, this is worth $66,300 annually.
3. Environmental Attributes. The environmental attributes of this low-impact,
renewable, and sustainable energy resource can be marketed to generate additional
revenue. Markets for environmental attributes remain uncertain, subject to expected
federal or state environmental legislation that may impose new regulations upon these
markets. The environmental attributes from the project are valued at $0.009 per kWh,
or $200,000 annually.
4. Capacity. The project will provide 5,400 kW of additional capacity to the SES system.
At an installed cost of $300 per kW for diesel generation, this capacity is estimated to
be worth $1,620,000. Prorated over the project's 50-year life, this capacity has an
equivalent annual value of $13,500.
Other Benefits
1. A significant portion of the project funding will go towards hiring local residents and
businesses to perform the work, thus boosting the local economy.
2. The project will help to improve reliability and stability of the local power grid.
3. The project will increase the diversity of fuel sources in the Seward vicinity, as well as
on the railbelt energy grid.
4. Reduced demand for Cook Inlet natural gas. This project will offset natural-gas fired
power generation, reducing natural gas consumption and incrementally extending the
life of the existing Cook Inlet gas fields, to the benefit of the substantial population that
relies upon these gas fields for electricity and heating needs.
5. The project's summertime capacity and energy may be helpful in enabling SES to
provide shore power for cruise ships when in port, and would reduce air quality
impacts from cruise ships that self-generate electricity while in port.
6. The project will present an opportunity for the Alaska Vocational Technical Center
(AVTEC) to develop a curriculum around hydroelectric power. This would benefit
AVTEC, the City of Seward, and the state at large, by developing a workforce that is
proficient in the special skills required to build, operate, maintain, and repair
hydroelectric systems.
SECTION 6– SUSTAINABILITY
Renewable Energy Fund
Grant Application Round 5
Fourth of July Creek Hydroelectric Project Design and Permitting
Independence Power, LLC
AEA12-001 Grant Application Page 17 of 14 8/26/2011
Discuss your plan for operating the completed project so that it will be sustainable.
Include at a minimum:
Proposed business structure(s) and concepts that may be considered.
How you propose to finance the maintenance and operations for the life of the project
Identification of operational issues that could arise.
A description of operational costs including on-going support for any back-up or existing
systems that may be require to continue operation
Commitment to reporting the savings and benefits
Over 100 years of experience in Alaska have proven hydroelectric projects to be the most
sustainable power generation technology and investment available. No other generation
technology has come close to having the historical longevity and the future potential of
hydroelectric projects. Once the hurdle of the initial capital cost is overcome, the projects
are successfully maintained and renewed by all classes of communities in Alaska.
This project will be operated by IP. IP's members have the experience, capability, and
willingness to operate the project for the long term. Also, IP will explore potential
economies or synergies that may be possible by partnering or working with the City of
Seward's electric and public works utilities to reduce operating costs for the project.
Annual O,M,R & R costs for the project will be funded by project revenues. In the design
phase, a financial management plan will be developed to project long term cash flow
requirements for project operations. This plan may include the following elements:
An operating fund to pay for routine operating, maintenance, repair and replacement
costs on a sustainable basis from annual project revenues. The operating fund may be
designed to provide adequate cash reserves for annual cash flow fluctuations and also
for low water years and other causes of revenue volatility.
Dedicated sinking fund(s) for certain large infrequent expenses, such as turbine
overhauls.
Contingency funds, lines of credit, and/or insurance policies to cover expenses from
infrequent events, such as floods or natural disasters.
IP commits to reporting savings and benefits from the project for the project's economic life,
or shorter period as desired by the Alaska Energy Authority and its successor agencies.
SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS
Discuss what you have done to prepare for this award and how quickly you intend to proceed
Renewable Energy Fund
Grant Application Round 5
Fourth of July Creek Hydroelectric Project Design and Permitting
Independence Power, LLC
AEA12-001 Grant Application Page 18 of 14 8/26/2011
with work once your grant is approved.
Tell us what you may have already accomplished on the project to date and identify other grants
that may have been previously awarded for this project and the degree you have been able to
meet the requirements of previous grants.
IP has already demonstrated its commitment to this project by completing a reconnaissance
study and initial feasibility assessment for the project, which will be issued in November
2009. These studies were funded mostly by IP, with a grant from State of Alaska under the
Renewable Energy Grant Program. IP will continue to advance the project so its benefits
may be enjoyed by the current and future residents of Seward and the railbelt population
generally.
IP is in compliance with existing grants.
SECTION 8– LOCAL SUPORT
Discuss what local support or possible opposition there may be regarding your project. Include
letters of support from the community that would benefit from this project.
IP has actively engaged with the local government and community in Seward to educate
them about the project. IP has given several presentations to the Ports and Commerce
Advisory Board (PACAB) and Seward City Council, and has also met with the City's
elected officials and key administration personnel on a number of occasions to discuss the
project. Seward officials and PACAB members have all expressed an interest in the
project, and are very interested to learn more about the project's details and probable costs.
Additionally, IP has kept Chugach Electric Association, Inc. (CEA) informed about the
project. As a potential customer for all or part of the project's output, CEA remains
interested in the project's continued progress.
The Seward Chamber of Commerce passed a resolution supporting continued study of the
Fourth of July Creek project. The resolution is attached.
SECTION 9 – GRANT BUDGET
Tell us how much you want in grant funds Include any investments to date and funding sources,
Renewable Energy Fund
Grant Application Round 5
Fourth of July Creek Hydroelectric Project Design and Permitting
Independence Power, LLC
AEA12-001 Grant Application Page 19 of 14 8/26/2011
how much is being requested in grant funds, and additional investments you will make as an
applicant.
Include an estimate of budget costs by milestones using the form – GrantBudget5.doc
When the design and permitting phase of this project begins in August 2012, IP will have
invested over $100,000 in the project, combined with over $180,000 in state funds under the
Renewable Energy Grant Program.
IP is requesting $1,521,000 in FY 2013 grant funds to complete the design and permitting
phase of the project. IP will provide $269,000 in matching funds as cash and in-kind
services.
As demonstrated in the recently completed reconnaissance phase, IP is committed to
advancing this project in an efficient and expeditious manner, and will cover additional
costs that IP considers necessary or appropriate to advance the project.
The Grant Budget Form is attached to this application.
Renewable Energy Fund Round 5
Grant Application
AEA 12-001 Application 8/26/2011
ATTACHMENT A – CONTACT INFORMATION AND RESUMES
REPRESENTATIVE HYDROELECTRIC PROJECTS
polarconsult alaska, inc.
OOLLAARRCCOONNSSUULLTT AALLAASSKKAA,, IINNCC.., has extensive experience designing, permitting, constructing and
operating hydroelectric plants in Alaska. Our design professionals have been involved in hydro
in Alaska since 1966, and collectively have over 95 years of exper ience in the field.
SSEELLEECCTTEEDD HHYYDDRROO PPRROOJJEECCTTSS BBYY PPOOLLAARRCCOONNSSUULLTT EENNGGIINNEEEERRSS
P
Project Design
Capacity
Type of
Project Location Services Rendered
Mc Roberts
Creek 100 kW Run of River Palmer, AK Design, Permitting, Construction, Operation,
Owner.
Roy's Creek /
Crooked Creek 80 kW Run of River Elfin Cove, AK Reconnaissance and Feasibility Study,
Preliminary Design, FERC Permitting.
Knutson Creek 125 kW Run of River Pedro Bay, AK Reconnaissance Study.
Fourth of July
Creek 5,400 kW Run of River Seward, AK Reconnaissance and Feasibility Study, Owner.
Fishhook Creek 2,000 kW Run of River Hatcher Pass, AK Reconnaissance and Feasibility Study,
Permitting, Design, Construction, Owner.
Indian River 125 kW Run of River Tenakee Springs, AK Feasibility Study, Preliminary Design,
Permitting.
Glacier Fork 80,000 kW Storage Knik, AK Reconnaissance and feasibility study.
Indian Creek 60 kW Storage Chignik, AK Permitting, FERC Relicense.
Larsen Bay 475 kW Run of River Larsen Bay, AK Design, Permitting.
Old Harbor 500 kW Run of River Old Harbor, AK Feasibility Study, Design, FERC Permitting.
O’Brien Creek /
5 Mile Creek 400 kW Run of River Chitna, AK Feasibility Study, Preliminary Design.
Lace River 4,950 kW Storage Near of
Juneau, AK Preliminary Design, FERC Permitting.
Chuniisax
Creek 280 kW Storage Atka, AK Feasibility Study, Preliminary Design,
Permitting.
Angoon 600 kW Storage Angoon, AK Feasibility Study, Preliminary Design.
IINNDDIIAANN CCRREEEEKK HHYYDDRROO FFEERRCC LLIICCEENNSSIINNGG
PPOOLLAARRCCOONNSSUULLTT managed the FERC licensing process for
the owner of Indian Creek Hydro, a 60-kW installation
located in Chignik, Alaska. The multi-year FERC
licensing process required significant effort and
coordination relating to the development of the
Environmental Assessment. Key activities included:
Ø NEPA scoping meetings,
Ø Stream gauging and fish surveys,
Ø Geomorphological surveys of Indian Creek, and
Ø Preparation of License Application and EA.
REPRESENTATIVE HYDROELECTRIC PROJECTS
MMccRROOBBEERRTTSS CCRREEEEKK HHYYDDRROO
PPOOLLAARRCCOONNSSUULLTT principals designed, built, own
and operate the McRoberts Creek Hydro, located
near Palmer, Alaska. The 100-kW run-of-river
project has delivered power to the Matanuska
Electric Association grid since 1991.
The McRoberts Project is an excellent example
of renewable energy systems benefiting Alaskan
communities. The project has improved
recreational access to the Matanuska Peak area,
operates in harmony with the environment, and
provides renewable energy to local homes and
businesses.
OO’’BBRRIIEENN CCRREEEEKK HHYYDDRROO
PPOOLLAARRCCOONNSSUULLTT completed a conceptual design for
the Alaska Energy Authority to evaluate a run-of-
river hydroplant on O’Brien Creek to serve the
communit y of Chitina, Alaska on the Copper River.
Key activities included:
Ø Paper study to define project parameters,
Ø Handling and analysis of large LIDAR data set
to finalize a conceptual design,
Ø Field reconnaissance to evaluate intake
locations and penstock corridors, and
Ø Preliminary project cost estimate.
CCHHUUNNIIIISSAAXX CCRREEEEKK HHYYDDRROO
PPOOLLAARRCCOONNSSUULLTT designed and permitted a 280-kW run-of -river
hydro plant to offset costly diesel-electric power for the village of
Atka in the Aleutian Islands. Key project features include:
Ø A small concrete dam,
Ø 1,000-foot HDPE penstock, and
Ø Cross-flow turbine.
The project, to be completed in 2010, is expected to significantly
reduce power rates in the village.
polarconsult alaska, inc.
energy systems – environmental services – engineering design
1503 West 33rd Avenue, Suite 310 tel: 907.258.2420
Anchorage, Alaska 99503 fax: 907.258.2419
Internet Website: http://www.polarconsult.net
REPRESENTATIVE PROJECTS - HYDROELECTRIC
1
RECENT POLARCONSULT PROJECTS & PROJECT REFERENCES
Polarconsult has extensive experience working on all aspects of hydroelectric development.
From reconnaissance, feasibility, permitting, design, construction, inspection, operation,
maintenance, monitoring, and retrofitting, Polarconsult’s professional staff understands all
aspects of hydroelectric projects. Engineering budgets for past and current projects range from
tens of thousands to over a million dollars.
Polarconsult principals designed, built, own and operate the McRobert’s Creek Hydro, located
near Palmer, Alaska. The many lessons learned from owning and operating our own
hydroelectric project translates into valuable experience that pays off immensely for other
projects. One of the biggest obstacles to proper operation of a hydroelectric facility is intake
design. After numerous refinements, Polarconsult has designed and constructed an intake for the
McRobert’s project that operates automatically and virtually maintenance free even when
subjected to the onslaught of debris brought about by floods and seasonal changes.
Another successful project, located in Pelican, Alaska, involved designing a steel support system
for an aging timber crib dam. Limited by helicopter access and narrow construction windows,
the location required a design that not only withstood the large forces of floods but needed to be
light enough and simple enough to be airlifted and quickly put into permanent place. Accurate
surveying, 3-D design, and close coordination with the project owner all resulted in a unique and
successful solution without an extravagant budget.
The experience and knowledge that Polarconsult’s professionals bring to a project are
exemplified by our work on the Kasidaya Creek hydroelectric project. Brought in by Alaska
Power and Telephone due to excessive costs on a tunnel and intake for a project that was in the
midst of construction, Polarconsult spent half a day in the field at the project site and provided
valuable insight and advice that changed the course of the construction to reduce project costs
and maintenance. Polarconsult’s recommendations to provide an access route up the creek to the
intake site were ultimately adopted into the now completed project.
All of Polarconsult’s core professionals have been involved in the numerous engineering
challenges surrounding hydroelectric projects for many years. Any one of our professional
engineers is more than capable of successfully identifying all the issues in a hydroelectric project
and using our comprehensive background and knowledge to forge solutions that aren’t narrowly
focused or short sighted.
SELECTED PROJECT PROFILES
Project: Pelican Dam Reinforcement and Penstock Design
Client: Pelican Seafoods
Reference Contact: Tom Whitmarsh, Pelican Seafoods, 907-735-2204
Engineering Budget: $175,000
Description
The Pelican Hydroelectric Power Plant was first constructed around 1946 to supply water and
power to the Pelican Seafoods Cannery constructed around the same time. A Dam Safety Review
determined that there was potential for failure of the existing timber crib dam during flood stages.
A field investigation was conducted to prepare an as-built of the existing timber crib dam, intake
structure, timber flume, wood stave penstock, and power plant. A unique design was arrived at to
shore up the existing dam to be stable under flood stages, and upgrade the existing intake to cut
down head losses.
REPRESENTATIVE PROJECTS - HYDROELECTRIC
2
Additionally, Polarconsult recently completed a design for replacement of the original flume,
surge tank, and elevated penstock. The design includes a new surge tank, new penstock, and
modifications to the intake and dam wing walls.
Project: Chignik Relicense
Client: Trident Seafoods
Reference Contact: Mike Duckworth, Trident Seafoods, 206-617-6612
Engineering Budget: $150,000
Description
Included in a Federal Energy Regulatory Commission (FERC) License are significant efforts and
coordination relating to the development of the Environmental Assessment. Activities include:
• National Environmental Protection Act (NEPA) scoping meetings
• Stream Gauging
• Fish Surveys
• Geomorphological surveys of Indian River including fish habitat analysis
• Dissemination of all data and correspondence through the development of a Project web
page and through traditional hard copy to over 50 particpants
The entire relicensing process was completed under the “applicant prepared EA” process in less
than 2 years (typically licensing time is 3 to 5 years).
Project: Larsen Bay Hydroelectric
Client: CRW Engineering Group, LLC
Reference Contact: Lenny Landis, AEA, 440-9320
Engineering Budget: $16,000
Description
Performed original design of 475 kW project with a gross head of 665 feet and a flow of 11 cfs.
Subsequent work included site inspection and analysis of existing hydroelectric system with
recommendations for upgrades to existing intake and penstock, addition of drainage diversion to
increase water flow to plant for increased power production, and consulting on controls upgrades
to interconnect hydro plant to community diesel generation plant.
The work activities also included the following:
• Analysis of hydrologic data to determine maximum potential power output on a monthly
basis
• Development of a parts list and the performance of ultrasonic thickness testing of the
penstock in the powerhouse
• Inspection of cracked turbine blades for hydroelectric plant
• Recommendations for repair of turbine as appropriate to the City and AEA
Project: Atka Hydro
Client: Alaska Energy Authority and CRW Engineering Group, LLC.
Reference Contact: Julie Dirks, City of Atka, 907-581-6226
Engineering Budget: $200,000
Description
Designed the 270 kW hydroelectric facility in Atka that is currently under construction.
Activities include the following:
• Topographic surveying to layout project features and tie into known monuments
• Development of legal descriptions based on survey data and final design for necessary
easements
REPRESENTATIVE PROJECTS - HYDROELECTRIC
3
• Investigation and description of anadromous fish affected by and in the project area
(including fish habitat assessments and setting of fish traps to capture and identify
species)
• Design of 1,060 feet of 30-inch diameter High Density Polyethylene Pipe (HDPE)
penstock
• Design of a cable stayed bridge spanning 100 feet
• Design of the 7.2/12.4 kV electrical cable connecting to the existing system
• Design of the powerhouse
• Specification of the turbine and generator
• Design of the 13-foot-high impoundment dam
Project: Fishhook Hydroelectric Project
Client: Fishhook Renewable Energy, LLC
Engineering Budget: $125,000
Description
Currently in the permitting phase, this project includes completion of a feasibility study,
permitting, and design of 2.0 MW run-of-river hydroelectric plant located on Fishhook Creek in
Hatcher Pass, Alaska. Performed surveying utilizing RTK GPS equipment and developed cost
estimates and a feasibility study by the fall of 2006.
Project: Kasidaya (Otter) Creek Intake
Client: Alaska Power & Telephone Company
Reference Contact: Vern Neitzer, AP&T, 907-983-2202
Engineering Budget: $15,000
Description
Site Inspection and project review. Provided a brief letter report to assist AP&T in seeking a
lower cost alternative for the intake and penstock tunnel that were in the original design. Project
was well into construction at the time. Made recommendations on an alternative for a dam,
intake configurations, access routes, and permitting actions. AP&T ultimately reconfigured the
original design based on our recommendations.
Project: Lace Hydro
Client: Lace River Hydro
Reference Contact: Bob Grimm, AP&T, 360-531-0320
Engineering Budget: $800,000
Description
Currently in the FERC licensing phase, this project involves feasibility investigation, FERC
permitting, and design of a 5 MW hydroplant in southeast Alaska. The Project intake is located
at an unnamed lake that would be used for storage. The lake has a surface area of approximately
384 acres. The dam intake is located at an elevation of 3,180 feet. From the intake, there would
be 7,600 feet of 21-inch diameter steel pipe leading to the powerhouse. The net hydraulic head is
3,000 feet. The project flow is estimated to be approximately 27 cfs. The total estimated energy
production of this project is 34,164,000 Kilowatt hours. Power transmission would consist of 5
miles of 14.4/24.9 kV buried cable and 7.1 miles of overhead transmission lines.
Project: McRobert's Creek Hydroelectric Project
Client: Earle Ausman, Enerdyne
Engineering Budget: $60,000
Description
REPRESENTATIVE PROJECTS - HYDROELECTRIC
4
McRobert's Creek Hydroelectric Plant is an excellent example of how cost effective a small
hydroelectric plant in Alaska can be. McRobert's Creek is located three miles to the east of
Palmer and is fed by the rock glaciers that lay below Matanuska Peak. The mountainous and
rugged terrain required PCA to use non-conventional construction techniques to complete the
project. Due to the terrain it was not feasible or environmentally desirable to build a road to the
power plant. The project was completed in an environmentally sound and aesthetically pleasing
manner. Hikers and horseback riders now use the trail for access to Matanuska Peak. The "run
of the river" facility consists of a rock gabion diversion to funnel the water into a 4,200-foot,
twelve-inch-diameter polyethylene pipeline. A 7,000-gallon storage tank is used to regulate the
system so that a large dam and associated reservoir are not necessary. Other physical features
include 8,800 feet of phone line, 4,600 feet of 7,200 kVA power cable, 8,600 feet of access trail,
and a 12-foot by 12-foot concrete block powerhouse. The plant operates at 445 feet of gross head
and runs year round delivering 100 kW to the Matanuska Electric Authority grid. The plant was
designed and built by Polarconsult at a cost of $2,000 per kW. Polarconsult President Earle
Ausman is the owner of the facility.
Project: Southfork Hydro Plant
Client: South Fork Construction
Reference Contact: Phyllis Janke, South Fork Construction, 694-4351
Engineering Budget: $80,000
Description
Currently under construction and permitting, this project involves feasibility, design, and
permitting of a 1.2 MW hydroplant on the south fork of Eagle River.
The South Fork Hydro project is a run-of-river plant with a capacity of 1,200 kW. Scheduled to
be completed in 2009, the project will use water from the South Fork of Eagle River which drains
a 26-square-mile area. The project will divert 53 cfs from the South Fork. The elevation of the
intake pool is 1,180 feet and the elevation of the draft tube pool where the turbines discharge is
803 feet for a gross head of 377 feet. The pipe will be 32-inch, SDR 32.5 high density
polyethylene pipe (HDPE). About 3,175 feet from the intake, the pipe will change to SDR 26.
This HDPE pipe continues for the next 175 feet where it transitions to 300 feet of 30-inch steel
pipe. There will be four 300 kW turbine-generator sets. One turbine will be a Pelton wheel with
4 jets which will turn at 1200 rpm. The turbine will drive a 300 kW induction generator. This
unit will be used to operate at all of the intermediate flows as it is an excellent partial load device.
The other 3 units will be pump-turbines which are centrifugal pumps run as turbines. They will
be vertical assemblies and will turn at 1800 rpm.
REPRESENTATIVE PROJECTS - HYDROELECTRIC
5
SELECTED PROJECT LIST
In addition to the projects listed under Selected Project Profiles, Polarconsult has performed
numerous feasibility studies and designs as the following list indicates.
Job Name Client Year
Knutson Creek Hydro Feasibility Study Pedro Bay Tribal Council 2009-10
Packer’s Creek Hydro Design and Permitting Chignik Lagoon Power Utility 2009-10
Burro Creek Hydro Study Burro Creek Holdings, LLC 2009-10
Old Harbor FERC Licensing Alaska Village Electric Cooperative, Inc. 2009-10
Indian River Hydro Feasibility Study, Conceptual
Design and Permitting City of Tenakee Springs 2009-10
Elfin Cove Reconnaissance and Feasibility Study Community of Elfin Cove 2009-10
Pedro Bay Reconnaissance Study Pedro Bay Tribal Council 2009
Pelican Hydroelectric Upgrade Design Alaska Energy & Engineering, Inc. 2008-10
Fourth of July Creek Reconnaissance Study Independence Power, LLC 2008
Glacier Fork Hydro Reconnaissance Study Glacier Fork Hydro, LLC 2008
Pelican Hydroelectric Retrofit Alaska Energy Authority 2007
Archangel Creek Hydro Jill Reese Investments & Brokerage 2007
O'Brien Creek Reconnaissance Survey Alaska Energy Authority 2007
Fishhook Hydroelectric Project Fishhook Renewable Energy, LLC 2007
Allison Lake Hydro Project Green Power Development, LLC 2007
Atka Hydro Cost Estimate Alaska Energy Authority 2007
Chitina Conceptual Design Alaska Energy Authority 2006
Kasidaya (Otter) Creek Intake Alaska Power & Telephone Company 2006
Larsen Bay Alaska Energy Authority 2006
Chuniisax Hydro Phase 3 Alaska Energy Authority 2006
Chignik Bay Scoping Field Trip Alaska Energy Authority 2005
Atka Hydro Design Changes and Inspection Alaska Energy Authority 2005
Larsen Bay Turbine Repair City of Larsen Bay 2005
Old Harbor Archiving Alaska Village Electric Cooperative, Inc. 2005
Chignik Dam Inspection Norquest Seafoods Inc 2004
Larsen Bay Hydroelectric Upgrade Alaska Energy Authority 2004
Chignik Stream Gauge Installation Alaska Energy Authority 2004
Atka Revisions Alaska Energy Authority 2004
Chignik Relicense Trident Seafoods 2003
Atka Hydro Design City of Atka 2003
Old Harbor Project Review Alaska Energy Authority 2002
Atka Hydro F&G City of Atka 2002
Scammon Stream Gauging Alaska Village Electric Cooperative, Inc. 2002
Old Harbor - Alternate Powerhouse Location Alaska Village Electric Cooperative, Inc. 2002
Old Harbor Project Comparison Alaska Village Electric Cooperative, Inc. 2001
Pelican Penstock Design Pelican Seafoods 2001
Old Harbor Hydro Project - Design Alaska Village Electric Cooperative, Inc. 2000
Old Harbor Hydro Project - FERC Licensing Alaska Village Electric Cooperative, Inc. 1999
Chignik Dam Survey Norquest Seafoods Inc 1999
Southfork Hydro Plant South Fork Construction 1998
REPRESENTATIVE PROJECTS - HYDROELECTRIC
6
Job Name Client Year
Lace Hydro Lace River Hydro, LLC 1997
Atka Hydro Investigation City of Atka 1996
Chignik Lagoon Hydro Study Chignik Lagoon 1995
Old Harbor Hydropower Feasibility Study Alaska Village Electric Cooperative, Inc. 1995
Terror Lake desander Tango Construction Co 1994
Tenakee Springs/Indian River Hydro City of Tenakee Springs 1993
Pelican Seafoods Hydroelectric Renovation Pelican Seafoods 1993
Angoon Hydroelectric Investigation Alaska Energy Authority 1992
Humpback Creek Hydroelectric Cordova Electric 1992
Snyder Falls Hydroelectric Study Earl Ellis & Associates 1990
McRobert’s Creek Hydroelectric Project Earle Ausman 1990
Larsen Bay Hydroelectric Plant City of Larsen Bay 1990
Snettisham Hydroelectric Project US Army Corps of Engineers, Alaska District 1989
Chitina Micro Hydro Project Chitina Village Council 1989
Burnett Inlet Hydroelectric Plant Design Alaska Aquaculture 1988
Ouzinkie Hydroelectric Plant City of Ouzinkie 1986
In addition, Polarconsult’s project team has extensive experience with design and force account
construction of many types of rural projects in addition to hydro. These include utility design
and construction management of water, sewer, and electrical projects. Much of this work was
performed for the City of St. Paul, and our experience extends to many other communities
throughout Alaska as well. It is important to emphasize that most of the work is performed by
force account using local labor and other resources.
Polarconsult believes it is important to have people build their own projects so they can operate
and repair them. It is also important to make them economical and keep the maximum amount of
money in the community.
KEY HYDROELECTRIC PERSONNEL
1
KEY POLARCONSULT PERSONNEL
The proposed project staff is presented below. Each member of the project staff has the
capability of working on all phases of the project including pre-design, design, and construction.
In addition, each the project staff has hands-on construction experience that is valuable during
the design and construction phases of a hydroelectric facility.
Each of the project staff holds professional licenses in Alaska and reside in Anchorage.
David Ausman, P.E., Civil Engineer, CE-8843. Mr. Ausman will act as the project manager
and primary point of contact for this project. The responsibilities for this position include having
a broad understanding of all activities conducted under this contract; coordinating the project and
reporting activities directly with the client; assigning team members to complete the work items;
managing the project budget and accounting; and working directly on all phases required to
complete the project. Mr. Ausman will also manage any subcontractors associated with this
contract.
Mr. Ausman has been working with Polarconsult for 20 years and has a broad range of
experience in the construction, environmental, and project management fields of engineering.
For the past several years, Mr. Ausman has managed energy projects associated with the AIDEA
/AEA term contracts with CRW and LCMF. His relevant hydroelectric experience includes
scoping of numerous projects throughout Alaska, design of structures and control systems,
construction management, environmental permitting, agency coordination, power plant
operation, and regulatory compliance.
For the past 15 years, Mr. Ausman has operated and maintained the McRoberts Creek
Hydroelectric Plant. As a result, he is familiar with the design considerations required for
successful long-term operation of these facilities. Mr. Ausman performed as construction
manager on this project. Other projects that Mr. Ausman has been involved with include
O’Brien Creek, Snyder Falls, Allison Creek, Lake 3160, Archangel Creek, Fishhook Creek, Old
Harbor, Larson Bay, Chuniisax Creek, Ouzinkie, Pelican, Kasidaya Creek, and Akutan.
Mr. Ausman also holds an API 653 Certification for inspection of large fuel systems.
References: Bret Coburn, CEO, R&M Consultants, 907- 522-1707
Kendall Gee, PE, Project Manager, DOWL Engineers, 907- 522-3403
James Smith, PE, Project Manager, Clarus Technologies, 907- 529-6703
Earle V. Ausman, P.E., R.L.S., Civil Engineer, CE-1393 & LS-3320. Mr. Ausman will act as
a senior technical advisor and design engineer on this contract. Mr. Ausman was the project
manager for Polarconsult’s 1993 study of this hydro project, and his experience and familiarity
with the community and hydro site will be valuable on this project. The responsibilities of Mr.
Ausman’s advisory position include the initial project scoping, pre-design planning, economic
analysis, evaluation of the technical and regulatory approach, and recommendations regarding
operational considerations. Mr. Ausman’s design responsibilities include assistance with a wide
variety of technical design issues with which he is familiar.
Mr. Ausman has studied, worked on and investigated more Alaskan hydroplants than any other
engineer in Alaska. Mr. Ausman has worked on and designed large and small
KEY HYDROELECTRIC PERSONNEL
2
pipelines for water, oil and gas. He has also designed canals, tunnels, lake taps, dams and
intakes, and large and small hydroplants. He has visited over 50 small hydroelectric plants and a
number of very large ones, including the world’s largest. In addition to being a civil engineer, he
has also worked as an electrical engineer both for interior, NEC, and transmission systems. This
has included both AC and DC systems, and conductors that are elevated, buried and submarine.
He will use this knowledge to determine the most favorable means and configurations for the
those projects to be designed and constructed under this term contract. He also has operational
experience and has acquired knowledge over the decades about unique Alaskan conditions and
hydro operations. Mr. Ausman’s experience in visiting and talking to operators of many
different hydroelectric plants has provided him a great insight into what is possible and practical.
This is especially important for plants of the size that AEA will be interested in. Mr. Ausman
has observed that large hydro thinking and experience applied to small hydro results in overly
costly systems. He has observed closely the reasons why BC Hydro and the Corps of Engineers
no longer design and build small plants as the result of the large project methods being far too
costly. Mr. Ausman keeps his skill current by regularly attending international hydroelectric
conferences and reading trade publications.
References: Lenny Landis, Ex Project Manager Alaska Energy Authority, 269-4684
Bob Grimm, Alaska Power and Telephone, 800-982-0136
Brent Petrie, Alaska Village Electrical Cooperative, 561-1818
Michael Dahl, P.E., Civil Engineer, CE-8480. Mr. Dahl will act as the senior construction
specialist and design engineer. The responsibilities of Mr. Dahl’s position include construction
cost evaluation; construction methodology; for preliminary phases and civil and structural design
during construction phase work.
Mr. Dahl has over 20 years of design and construction experience on a wide variety of projects in
Alaska and has been licensed in the State of Alaska as a professional engineer for the past 14
years. He has a diverse and comprehensive engineering background with technical and practical
experience in hydroelectric power plant design, civil site design, subdivision development, water
and sewer utility design, building and foundation design, surveying, electric distribution and
building construction, facility operations, and project management. His recent relevant
experience includes design of the Pelican Hydroelectric Facility upgrade that included a new
intake, penstock, surge tank, access road and dam upgrade; Inspection and review of Kasidaya
Creek Hydro intake for AP&T with recommendations for revisions to design and location for
better operation and constructability; Design engineer for expansion of the 39 acre National
Cemetery at Fort Richardson Alaska including 1 mile of new roads, facility irrigation system and
water well, new distribution and services and new committal shelter; Design and project
management for ocean outfalls and pumping systems for new fish processing plants in False Pass
and Nelson Lagoon; and Design of Pelican Hydroelectric timber crib dam structural upgrade to
meet State Office of Dam Safety factor-of-safety requirements.
Mr. Dahl was the project manager and engineer in charge of the above noted projects, which
were all successfully completed. He provided cost estimating, construction methodology and
design on these projects.
Mr. Dahl has worked at Polarconsult Alaska, Inc. since 1986 and has been a resident of Alaska
since 1960.
KEY HYDROELECTRIC PERSONNEL
3
References: Linda Snow, City Manager, City of Saint Paul, 907-546-3113.
Darlene Dorough, President, Yellowknife Construction, 677-7944
Everette Anderson, APICDA, (206) 369-5952
Joel D. Groves, P.E., Civil Engineer, CE-10944. Mr. Groves has 10 years of experience in
civil engineering, and has worked as a civil engineer for Polarconsult for over 7 years. Raised in
Anchorage, Mr. Groves started with Polarconsult as an engineering technician in 1995. Mr.
Groves has worked on a variety of civil projects in rural Alaska, including scoping, permitting,
design and construction engineering for a variety of stormwater, wastewater, water supply,
hydroelectric, and other civil infrastructure projects. He is familiar with the logistics and unique
considerations of construction projects in rural Alaska.
Mr. Groves has experience on the following hydroelectric projects in Alaska:
• Indian River Hydro, Tenakee Springs: Feasibility Study, Conceptual Design, and
Permitting.
• Roy’s Creek, Crooked Creek, and Jim’s Lake, Elfin Cove: Reconnaissance and
Feasibility Studies.
• Knutson Creek, Pedro Bay: Reconnaissance and Feasibility Studies.
• Burro Creek, Skagway: Feasibility Study.
• Indian Creek Hydro, Chignik: FERC licensing, inspections, and stream gauging.
• Pelican Hydro, Pelican: Inspection, design.
• McRoberts Creek Hydro, Palmer: Inspection, design, maintenance and operations.
• O'Brien Creek Hydro, Chitina: Feasibility.
• Allison Lake Hydro, Valdez: Scoping, reconnaissance, feasibility, FERC licensing, state
and federal agency coordination.
• Fishhook Creek Hydro, Palmer: Scoping, reconnaissance, feasibility, cost estimating,
local and state permitting.
• Lake 3160, Juneau: Scoping, FERC licensing.
Mr. Groves also has experience in commercial and residential design and construction, including
structural, mechanical systems, and energy efficiency analysis. Mr. Groves has a master's degree
in engineering from Harvey Mudd College.
References:
Myron Melovidov, Mayor & Director of Public Works, City of St. Paul (907) 546-3170
John R. Merculief, Ports Director/Former City Manager, City of St. Paul (907) 546-3110
Mike Wilson, Director of Projects, Coastal Villages Region Fund, Inc. (907) 278-5151
KEY HYDROELECTRIC PERSONNEL
4
Proposed Subcontractors and subcontractor’s staff
Polarconsult has established long-term relationships with the following subcontractors and has
worked with them many times in the past. Each of the subcontractors holds licenses in Alaska
and resides in Anchorage.
Mark Davis, Registered Land Surveyor, S-7338, Slana Surveyors. Mr. Davis will act as the
registered project land surveyor. Mr. Davis’s responsibilities include cadastral land surveys;
specialized cadastral survey techniques and technology; construction surveying and stakeout; site
control; and other survey activities.
Mr. Davis has over 20 years of experience surveying in rural Alaska. Mr. Davis has extensive
experience with cadastral land surveys and specialized cadastral survey techniques and
technology. He also has extensive experience with construction surveying, including
subdivisions, building and utility stakeout, site control, and other survey activities.
Jim Munter, Certified Ground-Water Professional 252, JA Munter Consulting, Inc. Mr.
Munter will act as the project hydrologist and advisor. Mr. Munter’s responsibilities include
review of the hydrological findings of the team; assistance with the regulatory entities; and
coordination with the environmental permitting processes related to hydrology.
Mr. Munter has over 25 years of experience with hydrogeological investigations and
reconnaissance throughout the state of Alaska. Mr. Munter has worked on reconnaissance
studies and field evaluations for water supply systems, wastewater and stormwater disposal
systems, environmental remediation projects, construction groundwater investigations and
dewatering systems, and other activities relating to groundwater management issues associated
with utility, residential, commercial, and industrial developments. Mr. Munter has extensive
experience with regulatory entities and project environmental permitting processes.
Stan Hintze, PE, Electrical Engineer, EE-5269, Independent Consultant. Mr. Hintze will
act as the senior electrical engineer. Mr. Hintze’s responsibilities will include primary
distribution, building electrical, and power plant electrical design. Mr. Hintze has over 40 years
experience in the electrical design of primary distribution, building electrical, and power plant
electrical design throughout Alaska, Washington and Idaho. He has become an expert in remote
electrical building and distribution systems.
Robert Jernstrom, PE, Mechanical Engineer, ME-6731, Jernstrom Engineering. Mr.
Jernstrom will act as the senior mechanical engineer.
Mr. Jernstrom has over twenty-one years of consulting experience, ranging from large
commercial / industrial / institutional projects to specialized laboratory applications. He is
skilled in state-of-the-art design practices, producing bid documents, writing specifications,
contracts, and is an experienced construction manager.
Kyle Brennan, PE, Geologist , CE-11122, Shannon & Wilson Inc. Mr. Brennan will act as
the project geological engineer.
Mr. Brennan holds a masters in geological engineering and has had eight years experience
performing geological and geotechnical engineering related work. Mr. Brennan joined Shannon
KEY HYDROELECTRIC PERSONNEL
5
& Wilson Inc. in May 2000 as a Geotechnical Engineer. Since joining Shannon & Wilson, his
responsibilities have included technical writing, and engineering support and project
management for geotechnical jobs including shallow and deep foundation design applied to a
variety of both on and off-shore facilities and roadway/railway construction and rehabilitation.
William Thompson, PE, Control Design Expert. Thomson Turbine Governors Ltd. Mr.
Thompson will act as the control engineer.
Mr. Thompson has designed Controls and Governors at hundreds of sites all over the world.
Many of these projects are in Alaska and Canada. He understands all aspects of control design
and construction. Mr. Thompson designed the schematics for a multi-role process controller,
supervised the physical implementation, and printed circuit board development. He also
provided the utility engineering required for a 170 kilovolt, 80 megawatt transmission and sub-
transmission system.
BERING PACIFIC ENGINEERING
8309 Sand Lake Rd dan@bpealaska.com
Anchorage, AK 99502 (907)-223-0678
Founded in 2009 by Daniel Hertrich, a registered Professional Engineer in
Alaska since 1997,Bering Pacific Engineering provides civil and structural
engineering services. Mr. Hertrich's experience as an Alaskan engineer since
1993 enables Bering Pacific Engineering to provide quality service to clients in
need of the following professional engineering services:
Hydroelectric Engineering
FERC permitting and compliance
Hydrology and feasibility studies including stream flow
measurement and data collection
Pipeline design and performance analysis
Project design, operation, inspection, and maintenance support
Civil Engineering
Project management and inspection
Permitting and compliance
Surveying, surface modeling, 3D grading plans and utility design
Structural Engineering
Concrete, steel, wood, and aluminum design
Design of bridges, dams, buildings and foundations, truss and
frame design, retrofits, structural inspections, and code analysis
Structural analysis including finite element modeling
Bering Pacific Engineering is familiar with all aspects of project development
from initial scoping to conceptual designs, feasibility, grant writing, project
planning and design, contracting, construction management, operation, and
monitoring efforts.Bering Pacific Engineering's capabilities include collecting
and analyzing hydrology data, performing surveys and working with dense
remote sensing data sets, holding community and stakeholder meetings,
inspecting projects, and working in the best interest of the client.Bering
Pacific Engineering knows how to focus limited resources to get projects done
without compromising on quality.
Contact Daniel Hertrich to discuss how Bering Pacific Engineering may be
able assist with your projects.
Renewable Energy Fund
Grant Application Round 5
Fourth of July Creek Hydroelectric Project Design and Permitting
Independence Power, LLC
AEA12-001 Grant Application 8/26/2011
ATTACHMENT B – COST WORKSHEET
Renewable Energy Fund Round 5
Project Cost/Benefit Worksheet
RFA AEA12-001 Application Cost Worksheet Page 1 7-1-11
Please note that some fields might not be applicable for all technologies or all project
phases. The level of information detail varies according to phase requirements.
1. Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability. 120 cfs at 47% availability = 21.7 GWh of net
energy output for average water year.
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
2. 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 On railbelt, NA.
ii. Rated capacity of generators/boilers/other
iii. Generator/boilers/other type
iv. Age of generators/boilers/other
v. Efficiency of generators/boilers/other
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor
ii. Annual O&M cost for non-labor
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]
ii. Fuel usage
Diesel [gal]
Other
iii. Peak Load
iv. Average Load
v. Minimum Load
vi. Efficiency
vii. Future trends
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.
Renewable Energy Fund Round 5
Project Cost/Benefit Worksheet
RFA AEA12-001 Application Cost Worksheet Page 2 7-1-11
3. 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]
5.4 MW of installed capacity Run-of-river hydroelectric
installation. 47% capacity factor
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 21,700,000 kWh per year
ii. Heat [MMBtu]
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu] NA
ii. Coal [tons or MMBtu] NA
iii. Wood [cords, green tons, dry tons] NA
iv. Other NA
4. Project Cost
a) Total capital cost of new system $14,700,000
b) Development cost $ 2,000,000
c) Annual O&M cost of new system $ 300,000
d) Annual fuel cost $0
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity 21,700,000 kWh/year
ii. Heat NA
iii. Transportation NA
b) Current price of displaced fuel $0.09 per kWh
Per 2011 AEA forecasts for southern railbelt
c) Other economic benefits Included in future fuel cost projections
d) Alaska public benefits $42,000,000 (per AEA model)
6. Power Purchase/Sales Price
a) Price for power purchase/sale AEA 2011 model for southern railbelt. ($0.09 per kWh in 2014)
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio With 50 year life, $42M / $13.2M = 3.18
Payback (years) $16.7M / $2.0 M = 8.4 years
Renewable Energy Fund
Grant Application Round 5
Fourth of July Creek Hydroelectric Project Design and Permitting
Independence Power, LLC
AEA12-001 Grant Application 8/26/2011
ATTACHMENT C – GRANT BUDGET FORM
Renewable Energy Fund Grant Round V Grant Budget Form 8/26/2011
Fourth of July Hydroelectric Project Design and Permitting
Independence Power, LLC
RE- Fund Grantee
Matching Source of Matching Funds:
Grant Funds Funds
Cash/In-kind/Federal
Grants/Other State
Grants/Other
#1 Project Administration and Management, Contractor Solicitations August 2012 $60,000 $15,000 Cash and in-kind services $75,000
#2 Technical and Environmental Field Studies October 2013 $325,000 $50,000 Cash and in-kind services $375,000
#3 Final Environmental Assessment / Documents November 2013 $130,000 $20,000 Cash and in-kind services $150,000
#4 Secure Land Rights (ROWs, leases) March 2014 $85,000 $15,000 Cash and in-kind services $100,000
#5 Receive Project Permits May 2014 $47,000 $8,000 Cash and in-kind services $55,000
#6 Final Project Design August 2014 $745,000 $130,000 Cash and in-kind services $875,000
#7 Engineer's Cost Estimate September 2014 $20,000 $5,000 Cash and in-kind services $25,000
#8 Final Economic and Financial Analysis October 2014 $32,000 $8,000 Cash and in-kind services $40,000
#9 Final Power Sales Contract December 2014 $32,000 $8,000 Cash and in-kind services $40,000
#10 Final Business and Operational Plan December 2014 $45,000 $10,000 Cash and in-kind services $55,000
TOTALS $1,521,000 $269,000 $1,790,000
Direct Labor & Benefits $0 $94,150 In-Kind Services $94,150
Travel & Per Diem $0 $0 $0
Equipment $0 $0 $0
Materials & Supplies $0 $0 $0
Contractual Services $1,521,000 $174,850 Cash $1,695,850
Construction Services $0 $0 $0
Other $0 $0 $0
TOTALS $1,521,000 $269,000 $1,790,000
TOTALS
Budget Categories:
Milestone or Task
Anticipated
Completion
Date
Renewable Energy Fund
Grant Application Round 5
Fourth of July Creek Hydroelectric Project Design and Permitting
Independence Power, LLC
AEA12-001 Grant Application 8/26/2011
ATTACHMENT D – LOCAL SUPPORT
Date: October 22, 2009
Action: Passed
Vote: Unanimous
SEWARD CHAMBER OF COMMERCE, CVB
BOARD OF DIRECTORS
RESOLUTION 2009-02
A RESOLUTION TO SUPPORT CONTINUED STUDY OF THE LOW-IMPACT
RUN_OF_RIVER HYROELECTRIC FACILITY PROPOSED AT FOURTH OF JULY
CREEK.
WHEREAS, Independence Power, LLC, and Alaska corporation based in Anchorage and owned
by Alaskans, has proposed to construct a low-impact run-of-river hydroelectric facility on Fourth
of July Creek within the City of Seward; and
WHEREAS, Independence Power, LLC believes, based upon available information, that the
hydroelectric project would not negatively affect: 1. fish habitat in Fourth of July Creek; 2. public
drinking water supplies in the Fourth of July Creek vicinity; 3. aesthetics in the project vicinity;
or 4. flood hazards to existing developments in the Fourth of July Creek area; and
WHEREAS, Independence Power, LLC believes, based upon available information, that the
hydroelectric project would have an installed capacity of 4.0. to 5.0 megawatts, and produce
17,000 to 23,000 megawatt-hours of energy annually; equal to about 1/3rd of the community’s
current annual electrical energy needs; and
WHEREAS, the hydroelectric project would provide local renewable energy to the Seward
vicinity, reducing long-term energy costs, improving long-term price stability, and increasing
reliability of electrical service to the commity.
NOW THEREFORE, BE IT RESOLVED BY THE SEWARD CHAMBER OF
COMMERCE/CVB BOARD OF DIRECTORS, that:
The Seward Chamber of Commerce endorses and supports the continued study of the proposed
hydroelectric project on Fourth of July Creek, and recognizes that the project has potential to
provide numerous direct and indirect long-term benefits to the City of Seward and the railbelt
population generally.
PASSED AND APPROVED BY THE SEWARD CHAMBER OF COMMERCE/CVB
BOARD OF DIRECTORS THIS 22d DAY OF OCTOBER, 2009.
__________________________
President
ATTEST:
_________________________
Renewable Energy Fund
Grant Application Round 5
Fourth of July Creek Hydroelectric Project Design and Permitting
Independence Power, LLC
AEA12-001 Grant Application 8/26/2011
ATTACHMENT E – ELECTRONIC COPY OF APPLICATION
Renewable Energy Fund
Grant Application Round 5
Fourth of July Creek Hydroelectric Project Design and Permitting
Independence Power, LLC
AEA12-001 Grant Application 8/26/2011
ATTACHMENT F – AUTHORIZED SIGNERS FORM
Renewable Energy Fund
Grant Application Round 5
Fourth of July Creek Hydroelectric Project Design and Permitting
Independence Power, LLC
AEA12-001 Grant Application 8/26/2011
ATTACHMENT G – GOVERNING BODY RESOLUTION AUTHORIZING APPLICATION
NOTE: THIS RESOLUTION IS ON THE AGENDA FOR THE SEPTEMBER 2011 MEETING OF THE
MEMBERS OF INDEPENDENCE POWER, LLC.
A SIGNED COPY OF THE RESOLUTION WILL BE PROVIDED TO AEA WHEN AVAILABLE
INDEPENDENCE POWER, LLC
RESOLUTION 2011-XX
AUTHORIZATION FOR AEA GRANT APPLICATION
WHEREAS, Independence Power, LLC (IP) desires assistance in funding the study, design,
development, and construction of a hydroelectric project on Fourth of July Creek, near Seward,
Alaska; and
WHEREAS, the Alaska Energy Authority (AEA) is accepting grant applications for the fiscal year
2013 funding round of the Renewable Energy Grant Program, due on August 26, 2011; and
WHEREAS, IP qualifies to receive funding from the Grants.
NOW THEREFORE, the Members of IP agree and affirm the following:
1. The Members commit to providing the matching resources for the project as specified
in the grant application, and
2. The Members hereby authorize David Ausman to sign the grant application, and to
commit IP to the obligations under the grant,
3. The Members designate David Ausman as the point of contact to represent IP for
purposes of the grant application,
4. The Members certify that IP is in compliance with applicable federal, state and local
laws including existing credit and federal tax obligations.
_________________________________________________ ________________________
David Ausman Date
__________________________________________ ________________________
Earle Ausman Date
__________________________________________ ________________________
Michael Dahl Date
__________________________________________ ________________________
Joel Groves Date
__________________________________________ ________________________
Daniel Hertrich Date
Page 1 of 1
Renewable Energy Fund
Grant Application Round 5
Fourth of July Creek Hydroelectric Project Design and Permitting
Independence Power, LLC
AEA12-001 Grant Application 8/26/2011
ATTACHMENT I – MAPS AND SUPPLEMENTAL INFORMATION