HomeMy WebLinkAboutWrangell AEA Grant
Renewable Energy Fund Round 5
Grant Application
AEA 12-001 Application Page 1 of 10 7/1/2011
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
City & Borough of Wrangell/Wrangell Municipal Light & Power
Type of Entity: Local Government Fiscal Year End June 30, 2012
Tax ID # 926000144 Tax Status: For-profit or X non-profit ( check one)
Mailing Address
PO Box 531 Wrangell, AK 99929
Physical Address
205 Brueger Wrangell, AK 99929
Telephone
907-874-2381
Fax
907-874-3952
Email
tdrooney@wrangell.com
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Steven Henson
Title
Electrical Superintendent
Mailing Address
PO Box 531 Wrangell, AK 99929
Telephone
907-874-3602
Fax
907-874-3614
Email
linedept@gci.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
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.
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 2 of 10 7/1//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)
Wrangell Electrical Capacitor Bank
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.
Trident Seafood’s Processing Plant located at 641 Shake’s Street Wrangell, AK.
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 X Transmission of Renewable Energy
Geothermal, including Heat Pumps Small Natural Gas
Heat Recovery from existing sources Hydrokinetic
Solar Storage of Renewable
X Other (Describe) Voltage Delivery Stabilizer
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Reconnaissance X Design and Permitting
Feasibility X Construction and Commissioning
Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
The City & Borough of Wrangell in conjunction with Trident Seafood’s proposes to purchase
and install a capacitor bank that will offset fish processing reactive power demands and voltage
instability over the Tyee Transmission System.
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.)
Installing a capacitor bank has become necessary to correct voltage delivery issues in Wrangell
(See Attachment D). The bank will reduce reactive power issues and allow for a greater level of
reserve capacity on both Tyee Hydro Facility Machines and the Tyee Transmission System
Lines. This reserve capacity may be used for greater system stability or to expand existing loads
to outlying communities such as Kake and Metlakatla.
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 3 of 10 7/1//2011
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.
A preliminary estimate (See Attachment H) received shows this project is estimated to cost
between $51,973 and $81,973 dollars.
$24,985 will be designated for the Engineering and Design phase and will be funded from the
grant.
Between $20,000 and $50,000 dollars will be assigned for purchasing required equipment and
will also be funded from the proposed grant.
Approximately $6988 dollars will be used for installation of the capacitor bank and will be
funded by Trident Seafood’s as “in-kind” funding.
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. $74,985.00
2.7.2 Other Funds to be provided (Project match) $6,988.00
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $81,973.00
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)
$81,973.00
2.7.5 Estimated Direct Financial Benefit (Savings) $N/A
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.)
System Stability
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.
Steven Henson, Electrical Superintendent
Wrangell Municipal Light & Power
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 4 of 10 7/1//2011
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.)
The proposed schedule timeframe for this project is as follows~
Phase 1 Engineering/Design Immediately following grant award estimated
to take approximately 4-8 weeks
Phase 2 Purchase/Installation Capacitor
Bank
Will be initiated as soon as the design phase is
completed
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.)
Key milestones for this project include the following~
After notification is received that the grant
has been awarded
Issue Request For Proposal (RFP) for
Engineering/Design
Immediately following RFP period Engineering/Design Phase
Immediately following Engineering/Design
Phase
Construction Phase including purchasing and
installing capacitor bank
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 & Borough of Wrangell will be working with Trident Seafood’s through all phases of
this project. Steven Henson, Electrical Superintend, will be the contact person for the City &
Borough of Wrangell. Stephen Arbor, Maintenance Engineer, will be the contact person for
Trident Seafood’s.
City and Borough of Wrangell charter dictates that all large purchases must go through a formal
Request For Proposal or bid process for award. For this project we anticipate issuing an RFP for
the cost of the Engineering and Designing Phase. Until the award of the RFP is made key
personnel and partnerships will not be known.
An RFP will also be issued for the purchase of any and all equipment needed to complete this
project.
Renewable Energy Fund
Grant Application Round 5
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3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
Throughout the life of the project, the Project Manager will provide written and monthly updates
to AEA which will include at a minimum:
- Expenditures to date;
- Percent complete; and
- Narrative on progress including any scheduled changes.
In addition to the monthly progress reports, communications on project status will also be
provided verbally with the AEA Project Manager on an informal basis through emails and phone
conversations.
3.6 Project Risk
Discuss potential problems and how you would address them.
No foreseeable risks related to this project need to be addressed
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.
Wrangell’s hydroelectric energy is provided by the Southeast Alaska Power Agency (SEAPA) via
the Tyee Hydro Facility and Tyee Transmission System. SEAPA’s Tyee facility also supplies
energy to the communities of Ketchikan and Petersburg.
As a result of increased fish processing activities in Wrangell, Trident Seafood’s is in urgent need
of a capacitor bank that will assist in controlling reactive power demands and help regulate
voltage levels over the entire Transmission System (See Attachment D).
Not installing the capacitor bank will continue to cause voltage delivery problems, increase
reactive power demands, and reduce reserve capacity on the Tyee Facility and Transmission
System.
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 6 of 10 7/1//2011
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.
SEAPA provides hydroelectric power to Petersburg, Wrangell and Ketchikan via the Tyee Lake
Hydroelectric Project (See Attachment E) and the Swan Lake Hydroelectric Project.
Transmission lines between Tyee/Swan/Petersburg/Wrangell/Ketchikan consist of both overhead
and underwater cables (See Attachment F).
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.
Currently Wrangell uses hydroelectric power supplied from the Tyee Lake Hydroelectric Facility.
Lack of a capacitor bank in Wrangell has resulted in voltage delivery problems in Wrangell as
well as decreasing reserve capacity at the hydro facility. Installing a capacitor bank will create
voltage stability and increase reserve capacity. This reserve capacity may be used for greater
system stability or to expand existing loads to outlying communities such as Kake and Metlakatla.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Installing a capacitor bank will create voltage stability for current customers. This project will
also increase reserve capacity at the hydro facility. This reserve capacity may be used for greater
system stability for current customers or enable expansion to outlying communities such as Kake
and Metlakatla.
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
This project will add a capacitor bank to the existing system that will assist in stabilizing the
system.
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 7 of 10 7/1//2011
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.
No Land Ownership or Access issues are expected as a result of this project
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
No permits will be required for this project
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
No environmental or land issues will need to be addressed as a result of this project
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 Attachment C-Grant Budget Form
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 8 of 10 7/1//2011
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 they serve.)
No O&M costs anticipated for this project
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
Not Applicable
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
See Attachment B- Cost Worksheet
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
The benefits from this project include-
Regulating voltage delivery issues to Wrangell Electrical Customers
Reducing the amount of reactive or magnetizing current on the Transmission System
Increase the amount of reserve capacity at the Tyee Hydro Facility
Renewable Energy Fund
Grant Application Round 5
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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
Following any maintenance requirements Wrangell Municipal Light & Power will maintain and
conduct any repairs required on the Capacitor Bank.
SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS
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.
Preliminary cost estimates and discussion of time frame were completed prior to applying for this
grant. Once approved Wrangell Municipal Light & Power will expedite the RFP process and
work towards purchasing and installing the capacitor bank.
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.
See Attachment A- Resolution Wrangell Borough Assembly
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
See Attachment C~ Grant Budget
Renewable Energy Fund
Grant Application Round 5
AEA12-001 Grant Application Page 10 of 10 7/1//2011
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.
E. An electronic version of the entire application on CD per RFA Section 1.7.
F. Authorized Signers Form.
G. Governing Body Resolution or other formal action taken by the applicant’s
governing body or management per RFA Section 1.4 that:
- Commits the organization to provide the matching resources for project at the
match amounts indicated in the application.
- Authorizes the individual who signs the application has the authority to
commit the organization to the obligations under the grant.
- Provides as point of contact to represent the applicant for purposes of this
application.
- Certifies the applicant is in compliance with applicable federal, state, and local,
laws including existing credit and federal tax obligations.
H. CERTIFICATION
The undersigned certifies that this application for a renewable energy grant is truthful
and correct, and that the applicant is in compliance with, and will continue to comply
with, all federal and state laws including existing credit and federal tax obligations and
that they can indeed commit the entity to these obligations.
Print Name Timothy Rooney
Signature
Title Wrangell Borough Manager
Date August 24, 2011
C:\Users\Dispatch\Documents\Trident Grant INFO\AEA Grant Application Data\AEA Grant page 11.doc
Grant Documents Authorized Signers
Please clearly print or type all sections of this form.
Community/Grantee Name:
City & Borough of Wrangell
Regular Election is held: October 4, 2011 Date: August 24, 2011
Authorized Grant Signer(s):
Printed Name Title Term Signature
Steven Henson Electrical
Superintendent
Jeff Jabusch Finance Director
I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name Title Term Signature
Timothy Rooney Borough Manager
Grantee Contact Information:
Mailing Address: PO Box 531 Wrangell, AK 99929
Phone Number: (907) 874-2381
Fax Number: (907) 874-3952
E-mail Address: tmrooney@wrangell.com
Fiscal Year End: June 30, 2012
Entity Type (For-profit or non-profit status): Non-Profit
Federal Tax ID #: 926000144
Please submit an updated form whenever there is a change to the above information.
Please return the original completed form to:
Alaska Energy Authority
813 W. Northern Lights Blvd.
Anchorage, AK 99503
Attn: Butch White, Grants Administrator
Attachment B
Project 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.
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
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]
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh]
ii. Heat [MMBtu]
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood [cords, green tons, dry tons]
iv. Other
4. Project Cost
a) Total capital cost of new system $51,973.00-$81,973.00
b) Development cost $24,985.00
c) Annual O&M cost of new system
d) Annual fuel cost
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity
ii. Heat
iii. Transportation
b) Current price of displaced fuel
c) Other economic benefits
d) Alaska public benefits
6. Power Purchase/Sales Price
a) Price for power purchase/sale
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio
Payback (years)
Attachme nt C
Grant Budget Form
Renewable Energy Fund Grant Round V Grant Budget Form 7-1-11
Milestone or Task Anticipated
Completion Date
RE- Fund
Grant Funds
Grantee Matching
Funds
Source of Matching
Funds:
Cash/In-kind/Federal
Grants/Other State
Grants/Other
TOTALS
(List milestones based on phase and type of project.
See Attached Milestone list. )
$ $ $
Engineering/Design Phase $24,985.00 $ Grant Money $24,985.00
Equipment Procurement $20,000-50,000 $ Grant Money $50,000.00
Instillation/Construction $ $6,988 In-Kind funds $6,988.00
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$
TOTALS $44,985-$74,985 $6,988.00 $51,973.00-
$81,973.00
Budget Categories:
Direct Labor & Benefits $ $6,988 In Kind $
Travel & Per Diem $ $ $
Equipment $ $ $
Materials & Supplies $ $ $
Contractual Services $24,985.00 $ Grant $24,985.00
Construction Services $20,000-50,000 $ Grant $20,000.00-
50,000.00
Other $ $ $
TOTALS $ $ $51,973.00-
$81,973.00
Applications should include a separate worksheet for each project phase (Reconnaissance, Feasibility, Design and Permitting, and Construction)-
Add additional pages as needed
Attachment C
Renewable Energy Fund Grant Round V Grant Budget Form 7-1-11
Project Milestones that should be addressed in Budget Proposal
Reconnaissance Feasibility Design and Permitting Construction
1. Project scoping and
contractor solicitation.
2. Resource identification and
analysis
3. Land use, permitting, and
environmental analysis
4. Preliminary design analysis
and cost
5. Cost of energy and market
analysis
6. Simple economic analysis
7. Final report and
recommendations
1. Project scoping and contractor
solicitation.
2. Detailed energy resource
analysis
3. Identification of land and
regulatory issues,
4. Permitting and environmental
analysis
5. Detailed analysis of existing
and future energy costs and
markets
6. Assessment of alternatives
7. Conceptual design analysis
and cost estimate
8. Detailed economic and
financial analysis
9, Conceptual business and
operations plans
10. Final report and
recommendations
1. Project scoping and contractor
solicitation for planning and
design
2. Permit applications (as
needed)
3. Final environmental
assessment and mitigation
plans (as needed)
4. Resolution of land use, right of
way issues
5. Permit approvals
6. Final system design
7. Engineers cost estimate
8. Updated economic and
financial analysis
9. Negotiated power sales
agreements with approved
rates
10. Final business and operational
plan
1. Confirmation that all design
and feasibility requirements
are complete.
2. Completion of bid documents
3. Contractor/vendor selection
and award
4. Construction Phases –
Each project will have unique
construction phases, limitations,
and schedule constraints which
should be identified by the
grantee
5. Integration and testing
6. Decommissioning old
systems
7. Final Acceptance,
Commissioning and Start-up
8. Operations Reporting
Attachme nt D
SEAPA Letter
11990000 11sstt AAvveennuuee,, SSuuiittee 331188
KKeettcchhiikkaann,, AAllaasskkaa 9999990011
PPhh:: ((990077)) 222288--22228811 ●● FFaaxx:: ((990077)) 222255--22228877
wwwwww..sseeaappaahhyyddrroo..oorrgg
August 18, 2011
Wrangell Municipal Light & Power
Attention Mr. Steve Henson, Superintendent
Re: Requested Explanation of SEAPA Voltage Control Actions
and the need for a Capacitor Bank in Wrangell
Good Afternoon Mr. Henson;
This letter is our concurrence that a capacitor bank to offset fish processing reactive demands in
Wrangell is urgently needed. Our seasonal voltage delivery problems of 2011 will degrade further with
the additional loads resulting from processing plant expansions before the 2012 cannery season (500
hp additional over 2011). As you know from our weekly scheduling calls, late summer voltage delivered
to your substation is nearing the point where we would be out of compliance with our 95% target of
69kV. In case you should pass this letter on as reference, I will add the technical data to support your
position that a capacitor bank is urgently needed and also add an explanation of our voltage delivery
methodology.
SEAPA Voltage Delivery Methodology
SEAPA controls voltage at our delivery points with an automated excitation system at Tyee. We set a
target buss voltage for the Tyee machines such that system voltage stays within 2% to 3% of nominal
voltage for several hours even though line loads and electrical demands rise and fall during this period.
When Swan Lake is operating, an automated control system adjusts Swan unit excitation to augment
the Tyee effort. When voltage sags in Wrangell our problem is that raising voltage at Tyee also raises
voltage in Petersburg and Ketchikan. Ketchikan is generally not affected adversely as both the units at
Swan Lake and KPU’s incremental capacitor banks can be used to offset the raise voltage commands
originating from Tyee. While both Ketchikan and Petersburg can offset reactive loads with capacitor
banks (reduce capacitors in service as voltage rises), Wrangell is the only City on the system without
capacitive voltage support equipment.
Two Issues:
1- Our underwater cables present a large capacitive load when unloaded. Line energization
requires a reactor to balance this capacitive load. As our lines become loaded, our reactive load moves
from capacitive to neutral and then to inductive. The higher the line current the more our “internal”
capacitance from the cables is offset, and the less we need the fixed reactor located in the Wrangell
Switchyard. The reactor was designed as a static value resource (no variability) and taking it out of
SEAPA Capacitor Request for Wrangell Distribution
8/18/2011
service under loaded conditions would cause large voltage transients that our system was not designed
to withstand. In the winter, when our loads are primarily resistive, we do not have delivery problems;
but in the summer the additional load from inductive processing machines, and the inductive load of the
reactor couple; at these times we observe a lower delivery voltage to your customers.
2- Tyee unit excitation was replaced with digital controls and increased PT capability such that
115% of rating (12.5 MVA p.u.) can be supplied on a machine name-plate basis. Additionally, the units
were rewound and the cooling water system was refurbished in 2010. The machines were fully re-
commissioned at 12.5 MVA, .9 PF. We could further boost voltage at the Tyee buss in the summer
months but SEAPA prefers not to continuously operate above the rating. Heat developed above the
100% rating for short periods is acceptable (line transients) but for longer durations the heat load will
result in accelerated rotor insulation deterioration when the machine is over-excited (boosting voltage).
Also, continuously operating above the rating means there is less reserve capacity for transient events.
If a transient event occurs (sudden application of load) and the unit is loaded above 100% rating, then
excitation limitation or excitation over-loading is more likely to occur. This means the machine would
automatically reduce output during the very time when it should be increasing output to cover the
transient event. The two reasons stated above mean another solution other than increasing reactive
production at Tyee is required for increased reactive loads at Wrangell fish processing locations.
SEAPA Capacitor Request for Wrangell Distribution
8/18/2011
Technical Data
Tables below itemize the differences in winter and summer load for the SEAPA system. Even though
over-all load is reduced from winter operations to summer operations, the active power peak on the
Tyee machines remains the same at nearly 10 MW per machine. The reason for high summer loading
at Tyee is that optimal loading to conserve water dictates that Tyee machines carry the SEAPA load up
to 20 MW. After the load reaches 20 MW , a Swan Lake machine is started and the generation at Tyee
is reduced. Even though load has been reduced at this point on the Tyee machines, the unit loading
remains efficient because Tyee has an automated nozzle selection system. In the summer, an
elevated reactive demand (from fish processing) is added to the real power demand on the generator;
thus Tyee must supply 10 MW and the increased reactive load. During these periods, Tyee could be
operated as high as 14.5 KV, but this would leave our system without reserves for transient voltage
events. If the Tyee loading were reduced during ramp hours, Swan Lake would operate more often and
the setting on the Swan Lake machines would be outside efficient operating zones for longer periods of
the loading cycle. Operating Swan Lake in this manner such that Tyee could provide more reactive
capability would over time consume more water. In the end, Swan would consume the reservoir
storage faster for a given water cycle with the net result being longer periods of diesel generation in
Ketchikan. Apportioning payment for the diesel generation would be problematic. Additionally, the tie
lines between Swan and Wrangell make voltage support from Swan for reactive in Wrangell impractical.
Finally, providing reactive from Tyee for fish processing increases the loads on the tie lines in the form
of increased reactive or magnetizing current; this practice has been proven by the electrical industry to
be less efficient than countering reactive loads locally with capacitors. Local capacitance removes the
need for reactive current passing over the transmission system. Please refer to the attachment:
Wrangell Cap Bank Application_SEAPA Operational Data.docx for 24 hour winter and summer loadings
on Swan Lake and Tyee Lake.
SEAPA Operational values for 2011 Winter and Summer loads
Peak Avg
MW MWa
Thursday, February 24, 2011 36.1 30.3
Saturday, July 30, 2011 24.4 20.5
Max Volt Min Volt Reactive Max Volt Min Volt Reactive
Peak Avg Max Peak Avg Max
MW MWa kV kV MVAR MW MWa kV kV MVAR
Thursday, February 24, 2011 19.9 17.4 14.0 13.8 3.0 18.0 12.9 14.0 13.8 0.9
Saturday, July 30, 2011 19.6 13.4 14.3 14.2 4.9 13.4 7.1 14.2 14.0 0.6
Plant Power
Swan Lake Powerplant
Plant Power
SEAPA Loads
Tyee Powerplant
Resistive
Resistive and Inductive
Load Type
SEAPA Capacitor Request for Wrangell Distribution
8/18/2011
Summary:
Placing a staged or incremental capacitor bank near the processing loads will reduce the amount of
reactive or magnetizing current on the transmission system. This is will reduce the amount of reactive
required at Tyee during the summer and allow for a greater level of reserve capacity both on the
machines and also on the lines. This reserve capacity will come into use as our system is called upon
to either expand for our existing loads, or this reserve capacity could be used for greater system
stability and loads necessary if the system is extended to outlying communities such as Kake and
Metlakatla. The methodology of placing capacitor banks is a proven cost effective measure as
demonstrated by the installations in Ketchikan and Petersburg.
References:
Attachment 1 – System map
Attachment 2- System single line
Attachment 3- Operational data in graphical form
Sincerely;
Eric Wolfe
SEAPA Director of Special Projects
(907) 230-1424
Attachme nt E
Tyee System Information
Attachme nt F
Tyee System Map
Attachme nt G
EPS Letter
SEAPA Operational Data Cap Bank Proposal
Attachments
SEAPA Power Demand Comparison- winter and summer, 2011
Please note the automatic scaling differences between the graphs.
SEAPA Operational Data Cap Bank Proposal
Attachments
SEAPA Power Demand Comparison- winter and summer, 2011
Unit Loading for four SEAPA Machines T1, T2- Tyee Unit #1, #2: S1,S2-Swan Unit #1,#2
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
0:001:002:003:004:005:006:007:008:009:0010:0011:0012:0013:0014:0015:0016:0017:0018:0019:0020:0021:0022:0023:000:00SEAPA Unit Generation (MW)Thursday, February 24, 2011
S1 S2 T1 T2
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
0:001:002:003:004:005:006:007:008:009:0010:0011:0012:0013:0014:0015:0016:0017:0018:0019:0020:0021:0022:0023:000:00SEAPA Unit Generation (MW)Saturday, July 30, 2011
S1 S2 T1 T2
SEAPA Operational Data Cap Bank Proposal
Attachments
SEAPA Reactive Demand Comparison- winter and summer, 2011,
T1,T2- Tyee Unit #1,#2 S1,S2- Swan Lake Unit #1,#2
Note scaling difference between graphs, reactive 67% greater during the fish processing season
-0.5
0
0.5
1
1.5
2
0:001:002:003:004:005:006:007:008:009:0010:0011:0012:0013:0014:0015:0016:0017:0018:0019:0020:0021:0022:0023:000:00SEAPA Unit Reactance (MVAR)Thursday, February 24, 2011
S1 S2 T1 T2
-0.5
0
0.5
1
1.5
2
2.5
3
0:001:002:003:004:005:006:007:008:009:0010:0011:0012:0013:0014:0015:0016:0017:0018:0019:0020:0021:0022:0023:000:00SEAPA Unit Reactance (MVAR)Saturday, July 30, 2011
S1 S2 T1 T2
SEAPA Operational Data Cap Bank Proposal
Attachments
SEAPA Unit Voltage Comparison-winter and summer 2011
13
13.25
13.5
13.75
14
14.25
14.5
14.75
15
0:001:002:003:004:005:006:007:008:009:0010:0011:0012:0013:0014:0015:0016:0017:0018:0019:0020:0021:0022:0023:000:00Unit Voltage (kV)Thursday, February 24, 2011
S1 S2 T1 T2
13
13.25
13.5
13.75
14
14.25
14.5
14.75
15
0:001:002:003:004:005:006:007:008:009:0010:0011:0012:0013:0014:0015:0016:0017:0018:0019:0020:0021:0022:0023:000:00Unit Voltage (kV)Saturday, July 30, 2011
S1 S2 T1 T2
Attachme nt H
EPS Cost Estimate
WWW.EPSINC.COM
PHONE (907) 789-2474 2213 JORDAN AVE., JUNEAU, ALASKA 99801 FAX (907) 789-4939
Steve Henson August 22, 2011
Electrical Superintendent
Wrangell Municipal Light & Power
Subject: VAR/Power Factor Correction of Distribution System Feeder to Seafood Plant
Steve:
This letter outlines our proposal to provide design services to correct the power factor problems
currently hindering the efficient delivery of power to the local seafood plant and the neighboring
customers. Though this problem can solved at the high voltage distribution (12.47/7.2 kV) side
of the plant loads it is recommended that this problem be addressed at the low voltage (480V)
customer equipment as this will provide the most cost effective and technically sounds means of
power factor correction. The scope of work, deliverables, and estimate are outlined below. It’s
expected that there will only be a need for one preliminary site visit from two EPS
representatives with the assistance of one WML&P representative or seafood plant personnel.
An additional site visit would also be expected by one EPS representative to provide final
project inspection services. Work can commence within 4 weeks of receipt of the Notice to
Proceed or Purchase Order. The final deliverables can be expected to be submitted to WML&P
within 8 weeks of commencement. The construction time schedule is not yet known but would
be provided upon design completion.
Scope of Work
1. One site visit to gather information (equipment reviews, information gathering,
measurements, metering data collections, etc.).
2. Assemble a complete construction set of drawings for WML&P or Seafood Plant to construct
the project from.
3. Major equipment procurement assistance.
4. Prepare construction cost estimate.
5. One site visit for final inspection, commissioning, testing services.
Deliverables
1. Complete set of construction ready drawings (One-Lines, schematics, details, Bill of
Materials, Layouts, Elevations).
2. Construction Cost Estimate (Rough Order Magnitude Estimate Range is $20,000 to
$50,000).
3. Construction Schedule
4. Final inspection trip report, test reports, and punch list.
WWW.EPSINC.COM
PHONE (907) 789-2474 2213 JORDAN AVE., JUNEAU, ALASKA 99801 FAX (907) 789-4939
Task Description Labor (Hours) Expenses Qty Subtotal
Engr III Engr VII Engr X
Preliminary Site Visit Data/Information
Gathering Compilation (travel, lodging,
subsistence)
20 20 $1,800 1 $6,740
Drawing Package Preparation 60 4 2 1 $7,366
Materials Specifications 4 16 2 1 $2,986
Cost Estimate and Schedule Preparations 2 2 1 $608
Major Equipment Procurement
Assistance (Quote gathering, quote
review for specification compliance, etc.)
4 1 1 $721
Final Inspection Trip, reports, punch list 36 4 $900 1 $6,564
Grand Total ==> $24.985
Notes
1. This estimate is valid through December 31, 2011.
2. The Exclusions listed below can be included with the Scope and Costs presented upon
request.
Assumptions
1. Wrangell seafood plant will utilize its own work forces to accomplish the work thus eliminating
the need for bid document preparation.
2. WML&P will provide Agency/Contract Administration and Coordination.
3. Accurate as-built drawings are readily available and will be delivered to EPS in electronic
AutoCAD format.
Exclusions
1. Bid ready documentation preparation.
2. Construction of the project.
3. Materials procurement or procurement assistance (except for Major Equipment as noted).
4. As-built services, related drawing preparation, and a condition/code survey of the facility
except as it will affect the work and goals of this project.
5. Hard copy as-built drawing to electronic format conversions.
If you have questions or require additional information, feel free to contact me at 523-3102 or
egeorge@epsinc.com.
Thank you,
Earl George, PE