HomeMy WebLinkAboutREF Walker Lake Hydro Feasibility ApplicationRenewable Energy Fund Round 6
Grant Application
Application Forms and Instructions
This instruction page and the following grant application constitutes the Grant Application Form
for Round 6 of the Renewable Energy Fund . An electronic version of the Request for
Applications (RFA) and this form are available online at:
http ://www .akenergyauthority.org/RE Fund-6 .html
• If you need technical assistance filling out this application , please contact Shawn Calfa,
the Alaska Energy Authority Grant Administrator at (907) 771-3031 or at
scalfa@aidea.org .
• If you are applying for grants for more than one project, provide separate application
form s for each project.
• Multiple phases for the sa me project may be s ubmitted as one application.
• If you are applying for grant fund ing for more than one phase of a project , provide
milestones and grant budget for each phase of the project.
• In order to ensure that grants provide sufficient benefit to the public, AEA may limit
recommendations for grants to preliminary development phases in accordance with 3
ACC 1 07.605(1 ).
• If some work has already been completed on your project and you are requesting
funding for an advanced phase , submit information sufficient to demonstrate that the
preceding phases are satisfied and funding for an advanced phase is warranted .
• If you have additional information or reports you would like th e 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 s ubject 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 .2 5 or returned to the applicant upon
request.
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Grant Application
SECTION 1-APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting prop osa l)
Tlingit-Haida Regional Electric Authority
Type of Entity: Political subdivision of the State of Alaska Fiscal Year End 12/31/12
Tax ID # 92-0065936 Tax Status: __ For-profit or _lL_non-profit ( check one)
Mailing Address Physical Address
PO Box 210149 12480 Mendenhall Loop Road
Auke Bay, AK 99821 Juneau, AK 99801
Telephone Fax Email
907-789-907-790-8517 jmitchell@alaska.com
3196
1.1 APPLICANT POINT OF CONTACT I GRANTS MANAGER
Name Title
Jodi Mitchell CEO/General Manager
Peter Bibb Operations Manager
Mai l i ng Address
PO Box 210149, Auke Bay, AK 99821
Telephone Fax Email
907-789 -
3196 ext. 35
907-790-8517 jmitchell@alaska.com
1 .2 APPLICANT MINIMUM REQUIREMENTS
Please ch eck as appropriate. If you do not to meet the minimum applicant requirem ents, 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
A local government, or
X 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
or its board of directors, ex ecutive management, or other governing authority. If the
No applicant is a collabo rative 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 system s and
or follow procurement standards that comply with the standards set forth in the grant
No agreement.
Yes 1.2.4 If awarded the grant, we can comply with all terms and conditions of the attached
or grant form . (Any exceptions should be clearly noted and submitted with the
No application .)
Yes 1.2 .5 We intend to own and operate any project that may be constructed with grant
or funds for the benefit of the general public. If no please describe the nature of the
No project and who will be the primary beneficiaries.
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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)
Walker Lake Hyd ro Feasibil ity Project
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 in the subsections below.
Walker Lake is located approximate ly 30 mi les inland on the Chilkat side of the peninsula that
separates the Chilkoot and Chi lkat Rivers at the head of Lynn Canal. The service area includes
the Chilkat Valley from 10 Mile Haines Highway to the US-Canada border and Klukwan . These
two areas current ly re ce ive electric service from In side Passage Electric Cooperative (IPEC).
2.2.1 Location of Project -Latitude and longitude, street address, or community name.
Latitude and longitude coordinates may be obtained from Google Maps by finding you project's location on th e map
and then right clicking with the mouse and selecting "What is here? The coordinates will be displayed in the Google
search window above the map in a format as follows: 61 . 195676.-149.898663. If you would like assistance obtaining
this information please contact AEA at 907-771-3031.
The project is located on USGS maps shown on both Skagway B-3 and B-4 located in the
Copper Riv er Meridian shown by the aliquot parts in the following Table:
Township Range Sections
28 s 54 E 36 s~
28 s 55 E 26 SE ~of the S ~
28 s 55 E 27 s~
28 s 55 E 33 SW ~of the S ~
28 s 55 E 34
29 s 55 E 1 N ~of the S ~
29 s 55 E 1 N ~
29 s 55 E 2 N ~
29 s 55 E 3 N ~
29 s 55 E 4 N ~
29 s 56 E 6 NE ~of theN ~
Pl ease refer to Appendix A Map of Walker Lake Hydro Project
2.2.2 Community benefiting-Name(s) of the community or communities that will be the
beneficiaries of the project.
The Chilkat Valley from 1 0 Mi le Haines Highway to the US-Canada Border a nd Klu kwan.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind Biomass or Biofue ls
X Hydro , including run of river T ransmission of Renewable Energy
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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)
Pre-Construction Construction
X Reconnaissance Design and Permitting
X Feasibility Construction and Commissioning
X Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
Tlingit-Haida Regional Electrical Authority (THREA) is applying for funding to conduct feasibility,
design , and obtain a FERC license for the Walker Lake Hydro Project. THREA filed a
preliminary FERC permit application on June 11 , 2012 since it has municipal preference.
THREA proposes to work with Inside Passage Electric Cooperative (IPEC) the certificated utility
for the service area of Klukwan and the Chilkat Valley in order to provide the lowest cost power
for the benefit of IPEC's members/customers . The proposed project includes constructing two
small dams at Walker Lake; intake and reservoir outlet works; a 24" penstock of approximately
12,000 feet in length ; a powerhouse with installed capacity of approximately 1 MW; a tailrace of
approximately 50' length; and a 12.4 KV underground transmission line of approximately 4 miles
in length interconnecting with the existing transmission system of IPEC. The existing lake is at
an elevation of 1,180 MSL and drains into Walker Creek and the Little Salmon River.
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2.5 PROJECT BENEFIT
Briefly discuss the financial and public benefits that will re sult from this proje ct, (such as reduced fuel
costs, lower energy costs, etc.)
THREA alo ng wi th IPEC plan to deve lop the Walker Lake hydro project to displace the ever
in creasin g amount of diesel generated e lectri city IPEC purchases from AP&T at a marginal
wholesale rate of $.3357 per kWh . As IPEC and AP&T's loads continue to grow with in the
connected grid , including Haines and Skagway, IPEC's s hare of diesel generated electricity will
continue to increase until another project is brought online . Between 2010 and 2011, IPEC's
kWh purchased from AP&T increased from 722,868 to 759 ,960. During that sa me period,
IPEC 's share of diesel generated kWh grew from 1% to 2 .7% of the total purchased . During
th is same period , the cost of diesel generated electricity rose from $.1956 to $.3357 per kWh .
This did not include A P& T's charges for its facilities, customers or line losses .
IPEC generated 56 % of its energy for the Chilkat Valley including Klukwan from its 10 Mile
hydro pla nt. The remaining 44% (1 ,044,360 kWh) is purchased from AP&T. IPEC seeks to
displace th e power it purchases from AP& T with a lower cost alternative. The average
whole sa le rate paid in 2011 was $.1273, up from $.1247 paid in 2010 due to increasi ng fuel
costs. IPEC has a power sales agreement with AP&T which expires in 2017. IPEC plan s to
buy power from THREA's Walker Lake project rather than renew ing its contra ct w ith AP&T.
THREA's target rate for wholesa le power to IPEC is $.07 per kWh resulting in a savings of
$.0573 per kWh f rom current rates .
2.6 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds n e ede d, the anticip a ted sources o f funds, a nd the nature and source
of other contribution s to the project.
Engineering ..................................................... $21 0,000
Site Reconnaissance & Initia l Data Gathering ......... $60 ,000
Regulatory Assistance ....................................... $155,000
Environmental Surveys ...................................... $265,000
Total Project Cost. ...................................... $690 ,000
Less T HREA Cash Mat ch ......................... ($50 .000)
Grant Application Amount. ................... $640,000
(Pl ease refer to A ppendix B Kleinschmidt proposal page 11 Estim ated Cost Summary)
2 .7 COST AND BENEFIT SUMARY
Include a summary of grant reque s t and your project's total costs and benefits below.
Grant Costs
(Summary of funds requested)
2.7.1 Grant Funds Requested in this application. $640,000
2.7.2 Cash match to be provided $50,000
2.7.3 In-kind match to be provided $
2.7.4 Other grant applications not yet approved $
2.7.5 Total Grant Costs (sum of 2.7.1 through 2.7.3) $690,000
work to date and future cost estimate s to
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operation al project)
2.7 .6 Total Project Cost (Summary from Cost Worksheet $690,000
including estimates through construction)
2.7 .7 Estimated Di rect Financial Benefit (Savings) $43,546 annually (759,960
kWh purchased from
AP& T in 2011 x $.0573
savings per kWh)
2.7.8 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.)
SECTION 3-PROJECT MANAGEMENT PLAN
Describe who will be respon sible 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 appli ca nt does not have a project manager
in dicate how you intend to so licit project management support. If t he a ppli cant expects project
management assistance from AEA o r another government entity, state that in this section.
THREA is the single point of contact and will execute all grant, contractual and administrative
responsibilities. Once grant funding is approved and a g rant ag re ement signed, THR EA has
received a proposa l from Kleinschmitdt (please see Appendix B) out of Gresham, Oregon for
the initial feasibility and permitting stage of the proje ct. Peter Bibb, IPE C Operations Manager
will be the point of contact working with the se lected engi n eering fi rm during the feasibility p hase
of the Walke r Lake Project. Mr. Bibb has 21 years experience in the electrica l power generation
field and has significant experience with g rant tracki ng along with working with contracto rs,
engineers, administrative personnel, a nd management. Please see attached Appendix C for
Mr. Bibb 's resume .
Pl fill t fl "d db 1 ease 1 ou onnprov1 e eow. y ou m ay a dd dd"f a 110na d d rows as nee e .
Start End
Milestones Tasks Date Date
Preliminary Engineering Study Topographic mappin g, geotechn ica l
investigation 07/13 09/13
Study Scoping Stream gauging, agency consultation 08/13 07/15
Engineering Design , selecti on, an d refinement 09/13 01/14
Preliminary FERC App li cation Development 04/14 06/14
Environmental Surveys 10/1 3 01 /16
Preliminary Engineerin g Design 04/14 11 /14
FERC License Application Development 12/14 06/1 5
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(Please refer to Appendix B Klein schmidt proposal page 1 0)
3.3 Project Resources
Describe the personnel, contractors , accounting or bookkeeping personnel or firms, equipment,
and services you will use to accomplish the project. Include any partners hips 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 reference s for known , key personnel , contractors , and
suppliers as an attachment to your application.
THREA has teamed with the engineering firm of Kleinschmidt out of Gresham, Oregon for
feasibility, design, and permitting of the Walker Lake hydro project. Kleinschmits 's 137
professional , technical , and administrative staff is focused primarily on hydroelectric energy
project engineering, regulatory and support services. Their firm is known nationally for being a
leader in environmental and licensing expertise in addition to the engineering skills they have.
This experience has led to more than 70 hydropower licenses . Kleinschmidt's experien ce
includes but is not limited to :
• Feasibility Studies
• FERC Licensing
• Permitting
• Fish Protection Plans
• Stream Flow Studies
• Endangered Species Surveys and Habitat Conservation
• Dam Design
• Flow Modeling
• 0 & M Assessments
• Stakeholder Issue Identification and Facilitation
THREA will utilize IPEC staff for grant administration, specifically Peter Bibb will be the Project
Manager working with Kleinschmidt with oversight from Jodi Mitchell , IPEC's CEO/General
Manager. IPEC will provide accounting and clerical staff as needed. Please see Appendix C
for Ms. Mitchell's resume.
3.4 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
Please provide an alternative contact person and their contact information.
THREA's Project Manager will keep in close contact with Kleinschmidt to stay abreast of
progress on the project. Monthly reports will be made to the CEO/General Manager of IPEC or
more frequently when milestones are completed. In turn, IPEC will keep the THREA Board of
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Commissioner's informed of progress on the project formerly at its board meetings and via e-
mail as information becomes available. Quarterly reports to AEA will be made on the status of
the project.
3.5 Project Risk
Discuss potential problems and how you would address them.
Tlingit-Haida Regional Electri cal Authority (THREA) is a non-profit political subdivision of the
State of Alaska under Alaska Statute, Title 18 , Chapter 57. THREA was organized in the mid
1970's and formed by T ling it-Haida Central Council, a Federally recognized Alaska Native Tribe,
to build infrastructure and provide electricity to several small primarily Alaska Native villages
including Hoonah , Kake , and Angoon. In the 1990's, THREA expanded into the Chilkat Valley
including Klukwan service area north of Haines , Alaska .
In 2004 , THREA's Board of Commissioners elected to restructure the utility to a member-owned
cooperative, and renamed itse lf to Inside Passage Electric Cooperative (IPEC). IPEC assumed
all assets , liabilities (including RUS long-term debt), equities, contracts, employees , operations,
and service areas of THREA. IPEC has successfully operated as a cooperative since then .
Unfortunately, when THREA restructured as an electric cooperat ive it unknowingly set aside its
"m un icipal preference" priority with respect to FERC preliminary permit applications .
In 2011, IPEC s ubmitted a grant application to the State of Alaska Renewable Energy Fund,
seeking funding for feasibility studies and FERC licensing assistance for the Walker Lake hydro
project since it lies within the boundaries of IPEC 's service area. Unfortunately the project was
not funded due in part to lack of clear priority with respect to hydro development in the upper
Lynn Canal region . Subseq uently , the Southeast Integrated Resource Plan (SIRP) draft
f indings were release to the public. Walker Lake was listed on the "Refined Screened Potential
Hydro Project List ". IPEC asked AEA for reconsideration but had missed the deadline for
appeal.
In January 2012, IPEC discovered that a priva te Ind e pendent Power Producer had applied for a
preliminary FERC permit for W alker Lake and planned to develop the project.
To protect its interests, in May of 2012, IPEC asked the Executive Council of the Central
Council Tlingit and Haida Indian Tribes of Alaska to re-authorize Tlingit-Haida Regional
Electrical Authority which they did . The Executive Council appointed the current IPEC Board of
Directors as Commissioners of THREA serving three year terms. On June 11, 2012, THREA
filed a competing preliminary permit application to FERC to develop a hydro project at Walker
Lake located in IPEC 's service area to serve the Chilkat Valley including Klukwan . THREA has
municipal preference priority with respect to preliminary permit applications to FERC.THREA
fully expects to be awarded the preliminary permit. Please refer to Appendix D for the
preliminary permit application THREA filed with FERC .
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