HomeMy WebLinkAboutThomas Bay COA Grant App Round 5MALASKA Renewable Energy Fund Round 5
-:`ENERGYAUTHORITY Grant Application
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
GrantApp5.doc
Application form in MS Word that includes an outline of
Form
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
Costworksheet
Summary of Cost information that should be addressed by
Worksheet
5.doc
applicants in preparing their application.
Grant Budget
GrantBudget5.
A detailed grant budget that includes a breakdown of costs by
Form
doc
milestone and a summary of funds available and requested to
complete the work for which funds are being requested.
Grant Budget
GrantBudgetln
Instructions for completing the above grant budget form.
Form Instructions
structions5.doc
Authorized
Authorized
Form indicating who is authorized to sign the grant, finance
Signers Form
signers
reports and progress reports and provides grantee information.
form5.doc
• 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.
AEA 12-001 Application Page 1 of 22 7/1/2011
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Renewable Energy Fund
Grant Application Round 5
SECTION 1 —APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
City of Angoon, Alaska
Type of Entity: Fiscal Year End (CHECK) June 30
Municipality
Tax ID # 92-0037785 Tax Status: For -profit or ._x—non-profit ( check one)
Mailing Address Physical Address
P.O. Box 189 Angoon, AK 99820
Angoon, Alaska
Telephone Fax Email
907-988-3653 907-788-3821 Alcihoward99ayahoo.com
1.1 APPLICANT POINT OF CONTACT I GRANTS MANAGER
Name
Title
Albert Howard
Mayor
Mailing Address
P.O. Box 189 Angoon, AK 99820
Telephone
Fax
Email
907-788-3653
907-788-3821
alclhoward99@yahoo.com
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
An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
X
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.
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MOW-iENERGYAUTHORITY Grant Application Round 5
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)
Reconnaissance Study of Thomas Bay Public Projects
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 Projects are located adjacent to the Canadian Frontier and are centrally located in
Southeast Alaska near the communities of Petersburg, Kake and Angoon, Alaska. Upon
integration with the SEAPA owned Swan Tyee line and the construction of the planned Kake to
Petersburg intertie, all of these communities to include Ketchikan will benefit either directly
through new direct resource or load balancing which would eliminate the need for diesel
generation in any connected community. Further, additional communities connected to the
eventual Southeast Intertie will benefit over the life of these projects. Additional analysis
completed during this phase of the project would more completely describe the extent to which
communities and economic opportunities in Southeast Alaska will benefit from this project to
potentially include energy resources to Prince of Wales and other areas suited . for mining or
industrial development.
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)
X
Reconnaissance
Feasibility
X
Design and Permitting
Construction and Commissioning
Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
reconnaissance atucty of l tiomas Bay Hydrological Resources
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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.)
Ketchikan Public Utilities and other regional utilities have insufficient hydropower capacity and
need additional supply. The region has significant untapped economic potential that requires low
cost power to become feasible. The publicly owned Thomas Bay projects (Ruth and Scenery)
are listed on the Southeast Integrated Resource Plan (SE IRP) preliminary list of priority projects
dated July 20, 2011 and are clearly two of the important remaining undeveloped hydropower
projects in the region both in terms of production and storage potential. These two projects
represent approximately 13% of the region's energy potential on a combined basis
(200,000/1,494,680) per the preliminary list attached.
The combined output of both projects will produce 200 GWh. These projects, through
economies of scale, produce direct and indirect benefits.
1. Reduce the need for diesel generated direct and backup power on the Swan Tyee
connected grid.
2. Provide necessary supply of renewable energy to firm developing wind tidal and
hydrokinetic power projects in the region. Firming these intermittent sources of power
provides financial and transmission system stability and security.
3. These projects provide long term planning flexibility and industrial opportunities for
seafood processing in Wrangell and Petersburg as well as the shipbuilding in Ketchikan,
mining activities in Prince of Wales Island that includes providing energy for the
upcoming and important part of the Rare Earth Elements supply chain — a matter of
National Security and Defense importance.
4. Combining hatchery operations (hatcheries need water and low cost power) with these
projects has the potential of increasing local charter and commercial fishing income for
communities with established businesses and fishing fleets such as Petersburg, Kake and
Wrangell. More fish and hatchery operations increases the overall market potential for
tourism related charters.
Reduce need for depending on diesel generation of energy in favor of clean renewable energy
consistent with the Governor's goal of 50% renewable by 2025.
Reliability
Hydropower power producing technology is tried and reliable. Lake tap and run of river projects
such as those available in the Thomas Bay area are amongst the most reliable and
environmentally benign methods to generate power in the region.
Lower and more stable Energy Costs over the long term
While initially capital intensive, hydropower over the longer term has an ability to lower and
stabilize energy costs especially for those communities that are currently completely dependent
on diesel production. Any of these communities, such as Kake, that will be connected to the
future Southeast Intertie directly by transmission lines or economically, by a postage stamp (such
as Angoon or Hoonah) have the potential to benefit from these Thomas Bay publicly owned
resources.
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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.
Total funds needed for this project is $2,400,000 for the initial reconnaissance and development
of these regionally beneficial projects. Given the State's previous ownership and the nature of
the current ownership of the SEAPA grid we are asking for this project to be fully funded by the
Alaska Renewable Energy Grant Fund to further the renewable energy benefits for SEAPA and
non SEAPA communities alike (the Public).
Given the lack of market to this resource it is very difficult to acquire financing for this phase of
a project and government assistance is needed at the initial reconnaissance and development
stage. However, if the project is financially viable with the advent of oil to electric conversions,
Ketchikan shipyard expansion and mining and mine milling developments, there is great
potential the further development could be found on a private or AIDEA based loan program.
The experience could be used to leverage funding not only for follow-on stages of this project,
but also other drainage studies involving multiple resources in Southeast Alaska.
This project has a number of go/no-go points including the completion of fieldwork, data
collection from various stream gauges and offers the possibility of matching funding in later
stages as knowledge is gained. These decision points assist in limiting unnecessary spending of
grant funds.
A total development cost of the resource at Thomas Bay has yet to be determined. Previous
studies as mentioned above put the two potential projects at 50 MW.
This proposed reconnaissance study would be needed to help estimate possible development
costs.
The transmission line costs would be dependent on routing and possible construction of roads
and interties planned between the communities
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.
$2,400,000
2.7.2 Other Funds to be provided (Project match)
$0
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2)
$2,400,000
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 $2,400,000
including estimates through construction)
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2.7.5 Estimated Direct Financial Benefit (Savings) $Significant benefits
2.7.6 Other Public Benefit (If you can calculate the benefit in $Significant benefits
terms of dollars please provide that number here and
explain how you calculated that number in your application
(Section 5.)
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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.
Type in your answer here and follow same format for rest of the application.
The City of Angoon has contracted with Kootznoowoo Inc. Angoon ANCSA village corporation,
for development management services for the Ruth and Scenery Lake Hydroelectric Project.
The project management team will hire competent and qualified businesses and contractors to
perform the regulatory permitting and license application for our FERC license. Included is a
resume and background support for Peter Naoroz, President and General Manager.
The applicant will assemble as Project Team headed up by Peter Naoroz and it is anticipated that
a representative of SEAPA will be requested to participate in team meetings and of course the
AEA would have a seat at the table to assure that maximum public benefit was fully considered
in the review of the data and assumptions as well as the analysis prepared by project experts and
technicians as the projects moves forward.
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.)
Phase I Reconnaissance 2nd Qtr 2012 through 2nd Qtr 2013
1. Project scoping and contractor solicitation
2. Resource identification and analysis
Field Work
Install Operated Stream Gauges
3. Land use, permitting and environ analysis
4. Preliminary design analysis and costing
5. Analysis of regional needs and cost of power
6.Preliminary economic analysis
7. Final Report & Recommendations
Later phases not funded by the grant include the following:
Phase II Licensing & Feasibility
2nd Qtr 2013 (preliminary Permit Application) through 4th Qtr 2014 (License Application)
Phase III Final Design 2nd Qtr 2015 through 1st Qtr 2016
Phase IV Construction & Startup 2nd Qtr 2016 through 1 st Qtr 2018
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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.)
FEASIBILITY ACTIONS
Develop Scoping Document and Study
Installing Stream Gauges.
Initiate communications protocol with all agencies.
Monitor Stream Gauges
Analyze hydrology and utility economics of the region with the goal of better matching
renewable resources to consumer needs, patterns and changes, firming power, increasing grid
reliability and minimizing the use of diesel assets for non routine emergencies only.
Initiate regional power sales agreements and regional participation.
Integrating information and providing results to the public
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.
The City of Angoon will use Kootznoowoo Inc. as its Development Manager for this project.
Kootznoowoo Inc. will assist the City of Angoon in managing the project in a financially prudent
manner based on their successful corporate management's project development experience.
Funds will be accounted for and contracts will have audit provisions assuring that the fiduciary
aspects associated with State of Alaska funding are met.
Kootznoowoo Inc. has relationships with experienced Alaskan based environmental science
companies that will be used to perform initial stream gages and feasibility and reconnaissance
activities as well as topographical and hydrological analysis.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
Primary contacts:
Mayor Albert Howard
City of Angoon
PO Box 189
Angoon, AK 99820
Phone 907-788-3653
e-mail: alclhoward99@yahoo.com
Peter Naoroz
General Man
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Kootznoowoo Inc.
8615 Old Dairy Road
Juneau, AK 99801
907-790-2992
e-mail: peter@kootznoowoo.com
The project team will develop a monthly reporting system to AEA and the public of activities
and present a Draft and Final report to the public with the assistance of the AEA in order to
maximize public benefits and understanding.
3.6 Project Risk
Discuss potential problems and how you would address them.
The primary risk to the project is feasibility. The City of Angoon will address this risk by
conservatively performing the initial reconnaissance and feasibility of the project to
incrementally develop the project with the time to listen well and education the public about the
costs and benefits of these public projects in order to enlist regional and statewide support.
Environmental and Permitting risk is present as studies required by federal and state agencies
that will need to be initiated and completed to submit a FERC license application that is issued
with minor or no restrictions. The Environmental and Permitting risk is in part mitigated by the
timely issuance of AEA funding to execute work schedule.
Political risk can be eliminated by encouraging communities to join together and support each
other n finding regional solutions by developing these projects for regional benefits.
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 Scenery Lake Hydroelectric Project as proposed consists of a powerhouse containing two to
four new generating units having a total installed capacity of 30 megawatts that would have an
estimated average annual generation of 130 gigawatt-hours.
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Usable Stored Capacity
Operational Draw -down
Elevation Drop
Average Annual Flow
Power Conduit (diameter/length)
Installed Capacity
Turbine Type / Number
Estimated Average Annual Energy
Estimated Capital Cost
18,000 of
30 ft
950 ft
245 cfs
8-ft / 13,000-ft
30 M W
Francis / 2-4
130 GWh
90 - 100 million
The Ruth Lake Hydroelectric Project as proposed consists of a powerhouse containing two to four
(depending on market and water flows) generating units having a total installed capacity of is
thought to be 20 megawatts that would have an according to the AEA preliminary list is estimated
to have an average generation of 70 gigawatt-hours.
These projects combined have an annual generation of 200 GWh.
1sabl Stored Capacity
1perational Draw -down
leVatiDnDrop
Average Ann ua.I Flow
Power Conduit (diameter/length)
Installed Capacity
Turbirke Type / Dumber
Estimated Average ,annual Enerp
Estimated Capital Cyst
17,000 of
100 ft
1490 1Ft
I5-1111-ft / 12, -ft
20 MW
Impulse / 2
70 GWh
- 100 million
These projects, nearly 200 gigawatt —hours, and along with other Potential Thomas Bay Energy
Resources, create economies of scale that will stabilize electrical power prices in Southeast
Alaska for the foreseeable future and therefore should be of great beneficial concern to the State
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of Alaska. All together both public and private projects in comprise 40% of the potential new
energy production in the region.
Revenues generated from our projects will decrease Angoon's dependence on State of Alaska
PCE subsidies and community revenue sharing that will become increasingly difficult as the
State's oil money potentially runs out. These projects represent forward energy planning that is a
solution to the shared goal of reducing PCE and diesel dependency over the long term for not
only Angoon, but all PCE based communities in Southeast Alaska that share the postage stamp
rate from the Inside Passage Electrical Cooperative.
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.
Thomas Bay resources are an important component of the Southeast Intertie System authorized
by Congress in S.2439 & PL 106-51 land more fully described in the Southeast Conference
Report 97-01. All is fairly described at the following site available through the AEA:
http://www.akenergyauthority.org/PDF%20files/SE%2OConference%2OFinal%2ORei)ort Acres J
an%2098.pdf
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.
The 2005 Angoon annual electric generation was approximately 2,021,000 kWh (source CHP
center). This electrical generation is entirely borne from the burning of diesel. However, more
disturbing is that there is no use of electricity for space heating in Angoon due to the high cost of
electricity. Therefore over 95% of the energy usage for space heating for homes and businesses is
produced through diesel fired generated heat. Approximately 5% of the homes use firewood or
are supplemented with firewood.
The CBJ Greenhouse Gas Emission study released in March 2009 reveals that Juneau is 81 %
dependent on diesel in its total non -transportation use of energy. Naturally, Angoon does not
have hydropower so it is 100% diesel dependent. However if we convert the BTU requirements
for Angoon using an 86% CCHRC figure, we fmd that Angoon would convert its diesel usage to
electrical usage if the price of electricity provided the economic incentive to convert to lower cost
electrical heat. Theoretically, (based on the 2005 number of 2,021,000 kWh IPEC figure) the
community of Angoon would need 14,435,714 kWh (2,021,000/(1-86%) if it completely
converted its home heating and diesel fuel usage to electrical generation from low cost methods.
Note CCHRC (Cold Climate Housing Research Center denotes in their 2009 Alaska housing
assessment that Sealaska Region villages are 86% diesel dependent for home heating fuel.
Theoretically, the community of Angoon currently needs the equivalent of 14,435 MWh for its
current needs. This usage fails to incorporate the price elasticity of demand in which energy
usage, demand, and growth rates will occur with the advent of low cost power to the community
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of Angoon.
The power provider in Kake, Angoon, and Hoonah would be able to completely idle their
expensive diesel generation capacity to a stand by status reducing the cost of operating existing
infrastructure. The advent and intertie connections to Ruth and Scenery would change the power
provider business model in that it would become a cheaper, more efficient, non PCE subsidized
utility (over time). The power provider would need to build and expand its distribution system in
each community because lower cost power and would likely create unprecedented power demand
in converting home heat fuel from diesel to less expensive hydropower electricity which, in turn
would justify line upgrades and line expansion to new areas and rural land allotments in these
communities.
Petersburg, Wrangell, and Ketchikan use an assortment of hydropower and diesel back up assets.
The infusion of these projects capacity into the SEAPA grid systems of Ketchikan Public
Utilities, Wrangell Municipal Power and Light and Petersburg Municipal Power and Light will
not only eliminate millions of dollars of diesel expenditures, but will also assist these utilities in
future planning that could eliminate the need for additional diesel generation purchases that are
currently being suggested (IRP meeting in Sitka discussion about purchasing diesel futures to as a
hedge to price spikes)
This project will beneficially impact the diesel back up infrastructure of these communities
because the advent of this project power will idle these assets so diesel is never burned again in
these communities except in the case of rare power line failures.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
The community of Angoon has the highest unemployment rate of 87% (source TANF program,
Central Council of Tlingit and Haida Indians of Alaska) and the lowest per capita income in
Southeast Alaska. The per capita income for Angoon was $11, 357. About 27% of families and
27.9% of the Angoon population is below the poverty line (source US Census Bureau Fact finder
for Angoon, Alaska). Alaska ranks number one in energy use per capita. According to the Cold
Climate Housing Research Center 2009 Alaska Housing Assessment, the average Sealaska
household (of which Angoon belongs) consumes $6,072 of energy per year. From these statistics
over one half of the average household per capita income of Angoon residents is spent on energy.
The impact of this project to bring low cost hydropower to the community of Angoon and energy
customers is profound since energy customers are making decisions to either heat their homes or
feed their household. This project will take a period to permit, license and construct. An
investment in this project is needed now in order to save the community energy customers for the
long term and to provide economic development with low cost power so that the economy of
Angoon can be rebuilt and jobs provided.
The power provider currently sells electricity in a non -subsidized rate at over 52.5 cents per kWh.
This dramatic reduction in electrical rate that would put the City of Angoon on par with larger
predominantly white urban hydropower connected communities of Southeast Alaska would result
in direct out of pocket annual savings to Angoon ratepayers of over $850,000 annually (using
Angoon 2005 kWh IPEC production figures). Angoon has a population of roughly 470 people so
the beneficial economic impact would be $1,808 in savings per Angoon resident annually!
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($850,000 savings/ 470 Angoon residents = $1808.51 annual prorated energy savings per
resident). This annual savings will significantly impact the livelihood and disposable income in a
community with one of the lowest per capita incomes in Alaska.
Similar savings are replicated in Hoonah and Kake dramatically increasing the standard of living
and providing a beneficial increase in the non -energy disposable income for these rural Southeast
Alaska residents.
The impact on Ketchikan, Petersburg and Wrangell would be to eliminate the need for diesel back
up in these communities for the foreseeable future. Developing mines on the Prince of Wales
Island will require loads and capacity that is not currently available in Southern Southeast Alaska.
Each of the several mines being developed could require 6-8 megawatts of power depending on
their mill requirements. It is a known fact that the lower the cost of electricity, the longer a mine
life can last through lower mine life operating costs.
The job benefits from lower electricity cannot be understated. Currently the high cost of
electricity retards seafood processing development, tourism and trade in the PCE based
communities. The opportunity for resource development jobs in potential mining areas and the
Ketchikan Ship yard is retarded through the lack of low cost hydropower capacity that these
projects would help achieve.
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
The proposed project includes an analysis of two hydropower projects first identified in the early
1900's and listed in the 1924 and 1947 Water Power Studies conducted by the federal
government. Our intended design it to meet the criteria set forward by the Low Impact
Hydropower Institute in order for the project to be certified.
accordingly.
The Scenery project will consist of
(1) a 15-foot-high concrete dam with a spillway impounding Scenery Lake; (2) a lake tap or
siphon with fish screen; (3) a 13,000-foot-long by 8-foot-diameter buried steel penstock; (4) a
powerhouse containing two to four new generating units having a total installed capacity of 30
megawatts; (5) a 7-mile-long, 69-kilovolt (kV) and a 22-mile-long, 138-kV transmission line; and
(6) appurtenant facilities. The proposed Scenery Lake Project would have an average annual
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generation of 130 gigawatt-hours.
The City of Angoon filed and was awarded a Federal Energy Regulatory Corrunission preliminary
permit on Scenery Lake Hydroelectric Project (FERC Project No. 13365-000) on Oct 2, 2009.
Optimum installed capacity — 30 MW
Anticipated plant factor — 50%
Anticipated annual generation — 130 GWh
The Ruth project will consist of:
(1) a proposed 170-foot-high concrete arched dam at the exit of the natural Ruth Lake; (2)
the existing 130-acre Ruth Lake (at a current surface elevation of 1,350 feet above mean
sea level (msl)) that would be impounded by the proposed dam to provide an estimated
storage capacity of 17,000 acre-feet at a surface elevation of about 1,520 feet msl; (3) a
proposed 12,600-foot-long, 6- to 12-foot-diameter combination bored tunnel and steel
penstock; (4) a proposed powerhouse containing three generating units and having a total
installed capacity of 20 megawatts (MW); (5) a proposed tailrace channel up to 600 feet
long; (6) a proposed 20-mile-long, 138-kilovolt (W) transmission line; (7) a proposed
2.8-mile-long access road; and (8) appurtenant facilities.
The City of Angoon filed and was awarded a Federal Energy Regulatory Commission preliminary
permit on Scenery Lake Hydroelectric Project (FERC Project No. 13366-000) on November 5,
2009.
Optimum installed capacity- 20 MW
Anticipated plant factor — 50%
Anticipated annual generation- 70 GWh
The City of Angoon will consider teaming up with regional non-profit hatcheries to increase
sport, charter and commercially caught species at both projects.
Anticipated development barriers include the funding and construction of a transmission line
from Thomas Bay to the proposed Kake to Petersburg Intertie that will potentially traverse the
Northern side of Kupreanof Island. The Thomas Bay to Petersburg Intertie (TBKP) will be
developed simultaneously with the City of Angoon, Kootznoowoo, AEA, City of Kake, IPEC and
the City of Petersburg to synergize efforts between the communities. These projects do not
anticipate issues related the recent roadless ruling that cannot be resolved in the regulatory
process.
Basic integration concept — Electric power from these projects would be integrated to the regional
utilities and would provide direct energy for Kake. Power would be delivered to Petersburg
Municipal Power and Lights system by a distribution segment. Project power would flow on
SEAPA publicly financed Swan Tyee Intertie that is rated for 138 kV but is only currently used at
69 kV. Studies would need to be conducted to determine how best to "fully utilize" this line for
the maximum benefit for the region.
Delivery methods - Electric power from the project would be transmitted by overland and
submarine transmission segments to the Scow Bay Substation on Mitkof Island. Power would be
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aenverect to FMYL's system by a distribution segment and to other southern Southeast Alaska
utilities by the interconnected transmission system operated by the Southeast Alaska Power
Agency (SEAPA) comprised of PMPL (Petersburg), WMLP (Wrangell), & KPU (Ketchikan).
Basic Integration concept. Scenery Lake will become integrated into the growing components of
the Southeast Intertie. A connection point in Petersburg is approximately 17 miles, but a
connection point that ties into the proposed Kake to Petersburg Intertie with a proposed Thomas
Bay to Kake Petersburg (TBKP) is significantly shorter and more cost effective if this route is
selected through the NEPA process.
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 land in which the project is situated is entirely on US Forest Service administered land. The
land is not in a wilderness designation and hydropower development is a permitted use in the land
designation claimed by our project. Both projects are afforded protection that is incumbent on
Power Site Classification sites. Scenery Lake is documented and its 2000 acre project boundary is
sanctioned with a December 2, 1929 Public Land Order #387C identified as Power Site
Classification 244.
There are no land ownership and access issues impacting our ability to permit, license, construct
and operate a municipal owned federally licensed hydropower project at Scenery Lake and Ruth
Lake. The project land ownership/control issue will be awarded to the City of Angoon upon
successful completion of the FERC licensing process.
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 City of Angoon will obtain a Special Use Permit from the US Forest Service to conduct its
regulatory requirements.
The City of Angoon will obtain a Research Fisheries Permit from the ADFG to conduct fisheries
related research. These permits take a few weeks to process.
Right of way for roads, transmission lines and infrastructure will take place after the award of the
license for these projects and cannot be withheld from the City of Angoon under the Federal
Power Act. Both projects are recognized under the Tongass Land Management Plan and are
situated in land use designations that permit the construction and operation of federal hydropower
projects.
The City of Angoon will conduct consultations with Tribes, federal and state agencies during the
pre -filing development of the Application for License.
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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
The City of Angoon will conduct consultations with Tribes, federal and state agencies during the
pre -filing development of the Application for License as required under the National
Environmental Protection Act (NEPA)..
Affected agencies will submit recommended terms and conditions for inclusion in any License
issued by the FERC. • Threatened or Endangered species — Angoon will consult with ADF&G,
FWS, NMFS & USFS, conduct required studies to identify any species of concern in Alaska
and/or Federal sensitive species, and implement measures to avoid and/or protect any species
during construction and Project operation.
Habitat issues — Angoon will consult with ADF&G, FWS, NMFS & USFS regarding aquatic and
terrestrial species and habitat use within the Project area, conduct required studies, and implement
measures to protect habitat of concern during construction and Project operation.
• Wetlands and other protected areas -Angoon will consult with the USAGE, ADF&G, and the
FWS and conduct an on -site wetland delineation to identify wetland acreage, types, and
functional assessments within the proposed Project boundary and consult with the agencies
regarding any potential effects of constructing and operating the Project.
• Archaeological and historical resources - Angoon will conduct consultations and studies; and
prepare reports required to address Section 106 of the National Historic Preservation Act. Angoon
will consult with tribes that have historical use in Thomas Bay.
Land development constraints — Angoon will consult with the BLM regarding any mineral
claims; consult with agencies and the public regarding any effects on recreational use; consult
with private land -owners, and consult with the USFS regarding the Land Use Designation for
National Forest Lands that would be occupied by the Project. Measures addressing land use will
be incorporated in easements and the USFS Special Use Authorization.
• Telecommunications interference — Not applicable
• Aviation considerations — Not applicable
• Visual, aesthetics impacts — Angoon will consult with the USFS and other federal/state agencies
as well as with local stakeholders, conduct studies and develop management plans to protect the
visual and aesthetic resources at Scenery Lake
• Identify and discuss other potential barriers — none identified at present
Under FERC licensing regulations, environmental issues must be identified and addressed in the
framework of a list of Stakeholders including state and federal resource agencies, interest groups,
the public and affected tribes and Native Corporations. Issue identification, impact analysis and
mitigation planning represent major components of a major project such as Scenery Lake.
Through the required resource consultation process, Angoon will address environmental and land
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use issues including, but not limited to, the following:
Fish and aquatic resources;
Wildlife and botanical resources, including wetlands and sensitive plants;
Water use and quality;
Cultural resources;
Recreation resources;
Aesthetics;
Threatened and endangered species;
Subsistence resources;
Land use and ownership.
Among potential barriers in the environmental area are FERC regulations which afford significant
authority by the US Forest Service to condition any eventual FERC license. Angoon will work
closely throughout the development process with USFS to develop conditions acceptable to
USFS, the City and FERC.
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
See attached spreadsheets for total anticipated project costs — these will need to be updated as
new information becomes available.
The costs for this Phase 1 is $2,400,000
Post Phase I costs are unknown. It is anticipated that total all in preconstruction, permitting and
construction costs will be in excess of $198,000,000
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 the v serve.)
It is premature to determine specific O&M costs for the project at this time. The City of Angoon
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anticipates that the O&M costs of these projects will be approximately $300,000 annually.
The City of Angoon does not anticipate requesting grant funding for any O&M costs for these
new facilities. O&M costs will be funded through the electric sales.
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
Identification of customers is unequivocal. The pool of potential customers is any interconnected
utility or industrial user that is on full time or intermittent diesel generation.
The expected power price range for power from these project is in the 7-11 cents per kWh for
Scenery and 9-13 cents per kWh for Ruth. These are lower than other hydropower rates that are
significantly smaller because these smaller projects have similar high development and
construction costs, but produce less power on a per MW basis.
The City of Angoon would like to achieve a usual and customary rate of return that is prevalent
and comparable with other public utilities.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
Download the form, complete it, and submit it as an attachment. Document any conditions or
sources your numbers are based on here.
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
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Attached Cost Benefit worksheet has been previously submitted and it is acknowledged that it is
speculative at best. However additional spreadsheets are included comparing the potential cost of
Ruth and Scenery to other regional costs and that analysis shows the projects are very competitive
and favorable. This recon study will assist in better positioning the resource for maximum utility
and regional benefit.
SECTION 6— SUSTAINABILITY
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
The City of Angoon has entered into a development management agreement with Kootznoowoo Inc. who will
assist the management and development these hydropower
The City of Angoon will own and operate its projects as a municipality owned hydropower generation facility
as its business structure.
The City of Angoon proposes to finance the operations and maintenance of the project through the revenue
stream generated. Angoon intends to fully utilize the resource consistent with the Alaska Constitution (see
Article 8 - Natural Resources) and the applicant intends to use the proceeds of this application to maximize and
document the value of the available resource. It intends for this analysis to become a future model for AEA
and others in better understanding the value of the Natural Resources of Alaska and the Nation. Angoon plans
to sell excess power to meet full utilization of the resources first locally and within the region and is making
arrangements with its project developer to maximize those resources for local economic development and use
consistent with good stewardship.
The City of Angoon will achieve economies of scale for its projects for transmission line O&M, substation
O&M, and shared infrastructure by the prorated share of these costs that would otherwise be borne by one
project. These economies of scale result in lower delivered electrical rates to Alaska consumers and our
community.
Specific operational costs will be determined throughout the FERC process due to changes of plan and
conditions that might evolve through the process.
As a municipality owned hydropower facility, the City of Angoon is committed to reporting the savings and
benefits derived from its municipally owned projects.
SECTION 7 — READINESS & COMPLIANCE WITH OTHER GRANTS
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Discuss what you have done to prepare for this award and how quickly you intend to proceed
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.
The City of Angoon has worked diligently to secure agreements to file our municipal FERC
Preliminary Permit application and maintained these permits by providing timely reports and
producing progress. The City of Angoon has responsibly secured site control through the FERC
preliminary permit process before engaging in fund raising and grant activities. The City of
Angoon has worked closely with interested parties in preparing this grant application and will
proceed with this project with or without State funding although its chances of success are
exponentially increased by AEA participation.
To date, we have conducted our initial internal feasibility and are now ready to move to validating
our feasibility through this grant process and continuing our permitting effort.
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.
The City of Angoon enjoys the support of its community to include the Angoon Community
Association, a federally recognized tribe. The ACA has entered into a memorandum of
understanding with Kootznoowoo, Inc. and almost all of its council members attended a Special
Meeting of the City Council in a show of support for moving Ruth and Scenery Lake to
completion on August 23, 2011 (transcript will be available). Angoon and its people would be
the primary beneficiary of this energy generation and is hopeful by working closely with AEA
and other communities through this particular grant will garner the support the entire Southeast
region to include all current and future connected communities which will benefit.
The City of Angoon has the local support of all ANB camps of Southeast Alaska as illustrated by
the Grand Camp Alaska Native Brotherhood and Sisterhood 2009 resolutions supporting our
projects. The ANB and ANS represent 26,000 Native Alaskans in Southeast Alaska. These
specific resolutions are: Resolution #28-09 Support for Angoon's Renewable Energy
Developments that specifically support the City of Angoon's development of Scenery and Ruth
Lakes; Resolution #33-09 Title: Support for Native participation in building, constructing and
management of Energy Infrastructure in Southeast Alaska. This resolution specifically supports
the City of Angoon's development of Scenery and Ruth Lakes.
The City of Angoon has the local support of the Central Council of Tlingit and Haida Indians of
Alaska. Resolution TA/09-46 Title Renewable Energy and Alternative Fuels for our
Communities. This resolution specifically endorses the City of Angoon's development of
Scenery Lake.
The City of Angoon has the local support from the City and Borough of Wrangell. The City and
Borough of Wrangell has passed a resolution supporting the City of Angoon's development and
construction of Scenery Lake. The City and Borough of Wrangell is the closest organized Alaska
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Borough to the project. Resolution 06-09-1160. Resolution of the Assembly of the City and
Borough of Wrangell, Alaska supporting the City of Angoon, Alaska in obtaining their FERC
Permit and ongoing hydropower project. Scenery Lake.
SECTION 9 — GRANT BUDGET
Tell us how much you want in grant funds Include any investments to date and funding sources,
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
The City of Angoon is using a proven FERC licensing milestone and timeline developed by
experienced those who have successfully applied for license. Our milestone chart is therefore a
little bit different from the Grant Budget1doc which is generic for all types of generation
projects.
To date, the City of Angoon has received approximately $200,000 of services provided in -kind
to the City of Angoon from private sources including Kootznoowoo, Inc. who have been recently
retained to assist the Applicant to move these projects forward. Kootznoowoo, Inc. has
substantial economic interest in the region as a result of the ANCSA and the amendments by
ANILCA including lands with valuable economic prospects in need of energy resources. The
feasibility, initial concept and FERC preliminary permit have been secured. In order to execute
this project to FERC license, the City of Angoon is requesting the cost effective $2,400,000 with
no additional match at this time. The in -kind and high likelihood of additional downstream
match of funds is likely once this reconnaissance phase is over and the resources are better
understood in the context of the regional benefits. Future matches may be made from City of
Angoon resources, federally matching resources, other community resources, utility participation
resources and private resources. The City of Angoon reserves the right to maximize its match
with cooperative communities and entities but has sent letters to Wrangell and made it clear that
the City of Angoon welcomes other community participation for mutual benefit and long term
energy security for all of Southeast Alaska that 200 potential GWh from this project can provide.
SECTION 10 —ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
A. Contact information, resumes of Applicant's Project Manager, key staff, partners,
consultants, and suppliers per application form Section 3.1 and 3.4. Applicants
are asked to separate resumes submitted with applications, if the individuals do
not want their resumes posted.
B. Cost Worksheet per application form Section 4.4.4.
C. Grant Budget Form per application form Section 9.
D. Letters demonstrating local support per application form Section 8.
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Grant Documents Authorized Signers
Please clearly print or type all sections of this form
Community/Grantee Name: City of Angoon
Regular Election is held: Yes - June Date: 8/25/11
Authorized Grant Sianer(s):
Printed Name
Title
Term
Signature
Albert Howard
Mayor, City of
Angoon
Y
I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name
Title
Term
Signature
Albert Howard
Mayor, City of
Y
Angoon
Grantee Contact Information:
Mailing Address:
PO Box 189, Angoon, AK 99801
Phone Number:
907.788.3653
Fax Number:
E-mail Address:
907.788.3821
Alclhoward992yahoo.com
Fiscal Year End:
06/30/12
Entity Type (For -profit or non-profit status):
Municipality
Federal Tax ID #:
92-0037785
Please submit an updated form whenever there is a change to the above information.
Please return the original completed form to:
Alaska Energy Authority du
813 W. Northern Lights Blvd. 4K:) ALASM
C:\Users\thealaskan\AppData\Local\Microsoft\Windows\Temporary Interns , ,.,,.ENERGY AUTHORITY
Angoon Auth Grant Doc Signer.doc