HomeMy WebLinkAboutHaines Boro Excursion Inlet Hydro APP FinalRenewable Energy Fund Round IV
Grant Application
AEA 11-005
Haines Borough Excursion Inlet Hydro Project
Reconnaissance and Feasibility
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 2 of 26 7/21/2010
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Haines Borough
Type of Entity: home rule borough (municipality)
Mailing Address
PO Box 1209
Haines, AK 99827
Physical Address
103 Third Avenue South
Telephone
907-766-2231
Fax
907-766-2716
Email
bmaynard@haines.ak.us
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Brad A. Maynard
Title
Director of Public Facilities
Mailing Address
PO Box 1209
Haines, AK 99827
Telephone
907-766-2257
Fax
907-766-2716
Email
bmaynard@haines.ak.us
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 a pplication is formal approval and endorsement for its project by
its board of directors, executive managem ent, or other governing authority. If the
applicant is a collaborative grouping, a fo rmal approval from each part icipant’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 exce ptions shou ld be clearly noted an d submitted with the
application.)
Yes
1.2.5 We i ntend to own and operate any proj ect that ma y be constructed with grant
funds for the benefit of the general public.
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SECTION 2 – PROJECT SUMMARY
Overview
The Haines Borough encompasses an area of approximately 2,620 square miles, or almost
1.7 million acres. It is bounded on the North and East by Canada and the Skagway
Borough, to the South by the City and Borough of Juneau and Icy Straits, and to the West
by Glacier Bay National Park and Preserve. Nearly 120 miles long and 80 miles at its widest,
the Borough is the northern boundary of the Southeast Alaska region (see Figure 1).
Figure 1. Haines Borough Location
In 2002 Borough residents voted to consolidate the first-class City of Haines and the third-
class Haines Borough into a home rule borough, adding area wide planning, platting, and
land use regulation to the responsibilities of the local government. Excursion Inlet (see
Figure 2) is a community located in the extreme SW region of the borough. It is not an
organized community, but has been home to a significant fish processing industry for many
years.
Excursion Inlet
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A large part of the economic base of the Haines Borough is the fishery in the region, valued
in the round at $60,000,000 annually. The bulk of the Haines gillnetting fleet -62 permits-
sells to Ocean Beauty Seafoods. The facility is currently operating under the license of
Ocean Beauty Seafoods, Inc. In FY10 the Haines Borough received $278,700 in raw fish
tax, an estimated 95% of that generated in Excursion Inlet. Over the previous decade,
FY00-09, the borough received $1,640,000 in raw fish tax. In addition to the seafood
industry, the community of Excursion Inlet includes 119 parcels of land owned by 84 unique
owners.
Figure 2 – Excursion Inlet (photo courtesy of Ocean Beauty Seafoods)
Like most of Alaska’s remote communities, Excursion Inlet, including Ocean Beauty
Seafood’s plant, is entirely dependent on diesel fuel imported into the area for heat and
power. The steady rise of fuel costs, in logistics, transportation, and power generation, and
the cost of maintaining diesel generators in Excursion Inlet make the development of
renewable energy resources a sound investment for the Haines Borough. This project
would support the study of conditions that might encourage the further development of
hydropower generation infrastructure in Excursion Inlet.
Project Background
Since the 1970’s AEA and SE Conference have explored the potential for hydroelectric
development in the southeastern region of Alaska. Studies include:
• Regional Inventory and Reconnaissance Study for Small Hydropower Sites in
Southeast Alaska, October 1979, Department of the Army, Alaska District, Corps of
Engineers
• Southeast Alaska Hydropower, Robert Rutherford Associates, 1977
• Southeast Alaska Electrical Intertie Plan, ACRES International for SE Conference,
1988
• Southeast Alaska Intertie Study, Phase 2 , D Hittle & Associates for SE Conference,
2005
The AEA studies identified two creeks at Excursion Inlet as potentially feasible hydroelectric
sites. These creeks are North Excursion Inlet Creek and South Excursion Inlet Creek.
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According to the reports, the two projects would have installed capacities of 2.0 MW and 1.1
MW, respectively, and generate a total of 4,180 MWh annually.
Project Description
AEA Renewable Energy Fund grant guidelines require a multi-phase approach to project
development. The Borough is requesting funds for the first two phases in this application:
Reconnaissance and Feasibility/Conceptual Design Studies. The tasks for this project are
described in Section 2.4 of the grant application instructions.
Project Team
The Borough has identified a project team composed of two engineering firms, Electric
Power Systems, Inc. and EES Consulting, as qualified and capable of performing the tasks
outlined in the grant requirements (Section 2.4 of the grant application instructions). These
companies will be the Project Team and have prepared task lists, cost estimates and
background materials in support of this grant application.
2.1 Project Title – (Provide a 4 to 5 word title for your project)
Excursion Inlet Hydro Project - Phases I & II
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 Excursion Inlet Hydro Project is located on Excursion Inlet in the community of the same
name in southeastern Alaska (See Figure 3). Excursion Inlet is strategically located in Icy
Straits, the water body at the extreme southwest of the Haines Borough. The community is
composed of 84 land owners including Wards Cove Packing Company, dba Ocean Beauty
Seafoods, and several commercial sport fishing lodges. The industry and most residences are
seasonal. The valuation of the community in FY10 was $12,300,000.
Figure 3. Excursion Inlet Hydro Project Location
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2.3 PROJ ECT TYPE
Put X in boxes as appropriate
2.3.1 Renew able 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 Design and Permitting
X Feasibility Construction and Commissioning
Conceptual Design
2.4 PROJ ECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
The application requests funding for the following studies to be performed on the proposed
hydroelectric projects at Excursion Inlet:
Phase I Reconnaissance Study, including the following tasks
• Project scoping
• Resource identification and analysis
• Land use, permitting and environmental analysis
• Preliminary design analysis and cost estimates
• Cost of energy and market analysis
• Simple economic analysis
• Final report and recommendations
Assuming the Reconnaissance Study is favorable, a Phase II Feasibility Study would be
carried out, including the following tasks
• Project scoping
• Detailed energy resource analysis
• Identification of land and regulatory issues
• Permitting and environmental analysis
• Detail analysis of existing and future energy costs and markets
• Assessment of alternatives
• Conceptual design analysis and cost estimate
• Conceptual business and operations plan
• Final report and recommendations
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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.)
This project has multiple benefits, most tied to Ocean Beauty Seafood’s (OB) ability to
operate successfully during an extended season at Excursion Inlet. The financial benefits
are the result of lower operating costs and increased capacity.
During the shoulder seasons - March to April and September - the plant cannot operate at
full capacity and the diesel power generators operate inefficiently. OB cannot operate
profitably; this year OB closed Excursion Inlet on September 1, despite the fact that there
was an ongoing coho fishery. The shoulder seasons present opportunity for new markets.
With lower power generation costs, OB could expand into the herring and crab markets, and
increase its halibut poundage. The fall season presents black cod in addition to coho; value-
added repackaging of salmon frozen during the peak season is also a shoulder season
activity. Lower power generation costs would result in a longer profitable operating season,
which would benefit the fishing fleet by providing a buyer in new markets, would benefit
employees by providing income, would benefit the municipality and benefit the state with
increased raw fish tax.
OB currently buys from 27 trollers, 38 seiners and 62 gillnetters, the majority residing in the
region. Historically, when the plant is stressed from operating at peak capacity, OB will limit
the amount of product it can purchase, and the fleet has no market. The net total increase in
available power by the use of hydropower with diesel backup will increase plant capacity.
This has potential to increase the OB fleet by providing additional markets. Increased fish
product landed at Ocean Beauty Seafoods translates into increased raw fish tax revenue for
the Haines Borough. Providing this clean power would lower overall pollution and CO2
levels, further allowing OB to increase capacity.
An indirect benefit is increased community service to the borough. OB’s plant provides
garbage, fuel, freight, and airport maintenance to the region, but they can do so only when
processing at a high level of output. The longer they operate in a season, the greater their
ability is to provide these services to the community.
Additionally, the availability of hydropower in Excursion Inlet will improve the quality of life for
residents by alleviating the need to purchase, operate and maintain stand-alone diesel or
alternative energy generators. There are 119 parcels and 84 distinct land owners in
Excursion Inlet. The Haines Borough has selected additional lands in Excursion Inlet, and
when titled, intends to sell them. The possibility that the Excursion Inlet community will grow
is real; low cost energy encourages development and growth.
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.
The Haines Borough requests funding for the two phases of study proposed in this Grant
Application. For Phase I Reconnaissance Study a total of $103,593 is budgeted. The Haines
Borough intends to provide $10,000 matching funds in Phase I of the project and requests
that this grant cover the remaining amount of $93,593. The Phase I study will make an initial
determination practicality of developing one or both of the hydroelectric projects. Assuming
that the outcome of Phase I is positive, then more detailed studies of the project will be
performed in Phase II Feasibility Study.
For Phase II, a total of $223,536 is required. The Borough requests that the Grant cover all
of the Phase II costs.
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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. $317,130.00
2.7.2 Other Funds to be provided (Project match) $10,000.00
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $327,130.00
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)
$15,500,000
2.7.5 Estimated Direct Financial Benefit (Savings) $17,500,000 (NPV)
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.)
$
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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 man ager(s). If the applicant does n ot have a proje ct 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.
Mr. Brad Maynard, Haines Borough Director of Public Facilities, will be the Program
Manager and responsible for managing the project for the Grantee. Mr. Maynard’s contact
information is provided in Section 1, above.
The Borough has engaged a project team to assist the borough in preparing this application
and support the development and implementation of the studies identified. This project
team is composed of Electric Power Systems, Inc. and EES Consulting, With the approval of
this grant request, the Borough will be responsible for successful completion of the projects
within the scope, schedule, and budgets defined in the grant agreements. It is envisioned
that the Borough will retain the EPS/EES team to provide the engineering and professional
services necessary to complete the project phases identified in this application. This team
will work closely with the Haines Borough and AEA to develop the detailed scoping
documents, project plans, schedules and specifications for procurement of the resources
needed.
EPS is an Alaska Company specializing in electric power planning and implementation of
infrastructure projects related to utilities. EPS staff offers a wide range of experience and
education in the area of power system operation, engineering, and administration. Unlike
many in our field of expertise, EPS provides a full range of services, from planning studies,
design, construction, and start-up/commissioning to periodic testing and maintenance.
EES Consulting is a professional services corporation headquartered in Kirkland, WA. EES
has professional engineers registered in the State of Alaska with extensive experience in
designing, licensing and permitting, and managing the construction of hydropower projects
as well as scoping and implementing environmental resource studies and conducting
agency consultation.
.
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 for both phases is shown below in Figure 4.
Renewable Energy Fund Round IV Grant Application AEA 11-005 Application Page 10 of 26 7/21/2010 Figure 4. Schedule for Excursion Inlet Hydro Project Phases I and II
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3.3 Project Milestones
Define key t asks and decision points in your p roject 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.)
Project milestones for Phase I Reconnaissance Study will require a combination of field
work and office work. Key tasks and deliverables are defined as milestones for project
completion:
• Project scoping and contractual matters – This task will include formalizing contracts
with EPS and EES to perform the required studies. Once under contract the project team
will review all prior studies, collect other available data needed and finalize schedules.
• Resource identification and analysis – This task will include review of existing
mapping and topography of the two watersheds. A preliminary review of the hydrology of
North and South Excursion Inlet Creeks will be performed. Recommendations for
additional topographic and hydrologic work will be developed.
• Land ownership, land use, permitting and environmental analysis – This task will
include establishing certainty in site ownership and potential ROW issues, review of
present and future land uses of the project watersheds. A high-level review of permits
that would be required for the construction of a hydroelectric project will be prepared. A
preliminary review of potential environmental issues will be performed (included
threatened and endangered species).
• Preliminary Design analysis and Cost – This task will include a preliminary
arrangement of the two hydroelectric projects. It is envisioned that a site visit will be
made to understand site constraints, and topography and refine project features
(diversion dam, penstock and powerhouse locations). Project arrangement plans and
profile drawings will be developed. A preliminary cost estimate for project development
and construction will be prepared. As a part of this work average annual energy will be
estimated.
• Cost of energy and market analysis – Based on the estimated project development
cost, the cost of power will be developed. Discussions will be held with OB, residents and
commercial users concerning the cost of power to confirm their interest in power
purchase.
• Simple economic analysis – A simple payback period will be calculated based on the
amount of and value of diesel fuel displaced and the estimated project development cost.
• Final report and recommendations – A report that documents the above tasks will be
prepared. A list of recommendations will be included in the report, based on the results of
the study.
Project milestones for Phase II Feasibility Study will require a combination of field work and
office work. It is envisioned that this work will only proceed if the results of the Phase I
reconnaissance study are favorable. Key tasks and deliverables are defined as milestones
for project completion:
• Project scoping – This will be the kickoff for this phase of work.
• Detailed energy resource analysis – Based on the project configuration and hydrology
of the applicable stream(s), average annual energy production will be estimated. For the
feasibility phase analysis it is expected that a hydrologic record for a similar stream in
Alaska will be selected and corrected by drainage area. The monthly energy production
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for the hydroelectric projects will be compared to the Excursion Inlet community needs.
As a part of the work, stream gauges will be installed at the two streams to begin
collecting flow data.
• Identification of land and regulatory issues – Issues regarding land use, and
regulatory issues will be further developed in this phase of study. Land acquisition for the
projects will be identified and acquisition costs estimated. Regulatory issues associated
with operation of an electric utility will be identified and costs estimated.
• Permitting and environmental analysis – Cost estimates will be prepared for
acquisition of necessary permits to allow the construction and operation of hydroelectric
project(s). Initial scoping of environmental issues (expected to be primarily aquatic
resources, but terrestrial resources will also be reviewed) will be made with the involved
regulatory agencies. It is expected that the major issues will be associated with aquatic
resources and will be related to minimum flows and fish passage requirements.
Terrestrial issues associated with project impacts will also be investigated. A site visit to
assess these issues will be budgeted for this phase of work.
• Detailed analysis of existing and future energy costs and markets – Existing energy
uses and energy production from the proposed projects will be reviewed to determine
how well the proposed projects can meet the needs of the fishing fleet, commercial
interests and residents in the community. Possibilities for growth of the community and
Ocean Beauty Seafood’s facility will be made to determine what role the projects can play
in meeting those needs.
• Assessment of alternatives – Alternatives to construction of hydroelectric projects will
be reviewed. Alternatives may include wind power, tidal power, or interconnection to a
regional grid (SE Intertie).
• Conceptual design analysis and cost estimate – A conceptual design for each
hydroelectric project will be developed. A project plan; profile along the water conveyance
system; a plan of the diversion dam and intake; a powerhouse plan and a single-line
diagram will be developed. As a part of the design analysis it is expected that a site visit
will be required, and the site plan topographic information will be refined. A cost estimate
for each project will be developed.
• Detailed economic and financial analysis – Based on the project development cost
estimated energy sales will be estimated and projected over time. An estimate of the
operating costs for the projects will be made. Sources of funding for project development
will be reviewed and cost of capital estimated. A financial model will be developed to
determine the projects’ ability to cover operating costs and service debt.
• Conceptual business and operations plan – A business plan will be developed to
address the structure for developing the projects and the plan for project operations. This
task will require specialized consultation due to political and regulatory realities, given
that Excursion Inlet is not within an ARC service area; the Haines Borough, as a home
rule borough, has options for delivering services within service areas.
• Final report and recommendations – A final report will be developed to document the
results of the study. Included in the report will be recommendations for further project
development if merited.
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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 a ny 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.
A team approach will be employed to implement and manage this project. The team will
consist of The Haines Borough , Electric Power Systems, Inc., EES Consulting and the AEA
grant manager. Each of the tasks described in this application requires specialized
knowledge and skills that must be obtained from private sector consultants and service
providers engaged in or highly familiar with hydropower resource development. Electric
Power Systems (EPS) and EES Consulting (EES) are highly qualified to perform the work
described in this grant application. Both companies are familiar with hydroelectric and utility
power systems, and both have performed work on AEA grant-funded projects. EES will be
the prime contractor for this project; EPS will be sub-contracted to perform the tasks related
to the powerhouse, control systems, and transmission lines. EES Consulting will perform
the other tasks related to the studies, including hydroelectric project design, construction
cost estimates, energy production studies, economic and financial analysis, regulatory
consultation, permitting and environmental studies and analysis.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
Mr. Maynard will be the project manager and primary point of contact for communications
with AEA and the grant manager. This will ensure an effective, continuous flow of
communication throughout the project. The project team will use a suite of project
management tools including web-based communications and reporting, task and milestone
tracking, work breakdown structure, scheduling, document control, budget control and risk
management. The project manager will coordinate with the AEA grant manager to develop
a schedule of reports. At a minimum, the borough will conduct monthly status tele-
conferences and web-based distribution of reports on scope, schedule, budget and
unresolved issues. Troubleshooting reports and teleconferences will be scheduled on an
as-needed basis.
3.6 Project Risk
Discuss potential problems and how you would address them.
Potential risk for this project centers on site conditions. Field work is required for project
development and investigation, stream gauging, environmental review and permitting
requirements. Some of these activities can be impeded or delayed by weather conditions. The
project team is familiar with contingency requirements for site work in remote locations and will
effectively manage the project schedule to avoid disruptions or delays. Potential risks
associated with development of the hydroelectric projects will be identified as a result of the
studies.
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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 informatio n 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 o f 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 p roposed energy resource vs. other alternatives that ma y be
available for the market to be served by your project.
The 1979 report “Regional Inventory and Reconnaissance Study of Small Hydropower Sites in
Southeast Alaska” performed by CH2M Hill identified North and South Excursion Creek as
potential hydroelectric project sites. The potential resource includes two streams near Excursion
Inlet. Either one or both of these streams could be used for hydroelectric energy generation.
Alternative generation resources include wind and interconnection to a regional grid. Based on
available wind resource maps Excursion Inlet does not appear to have a wind resource that is
economic. The SE Intertie has been under study for a long time. The cost to interconnect
locations such as Excursion Inlet appears to be cost prohibitive.
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 inform ation about
the number, size, age, efficiency, and type of generation.
Excursion Inlet is a remote community in the southwestern part of the Haines Borough. Ocean
Beauty Seafood’s fish processing plant is the primary employer and only significant fish
processor in the region. During the summer, the facility employs 400 people and supports a
varied fleet of 127 boats that depend on the plant for maintenance, fuel delivery and ice. Ocean
Beauty Seafood provides all power to the community. Their facility is presently operating strictly
on diesel fuel for boilers and electricity generation. The electrical power system consists of five
diesel generators: three 600KW D398, one 275KW D353, and one 1100KW 3516. These
generators are over 20 years old, and are about half as efficient as the current generation of
diesel generators. The minimum operating power needs are approximately 800 kW with average
operating needs at around 1,600kw. The maximum demand is roughly 2,100 kW. Based on
current generator capacities, other than during peak demands, the facility is not able to efficiently
match power needs to its generator capacities. Residents and small businesses provide their
own power with diesel or gas-fired generators up to 20kW.
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.
During an average year, Ocean Beauty Seafoods consumes approximately 300,000 gallons of
diesel to produce 3,900,000 KWH/yr. During the larger seasons of the early 2000s these
numbers were typically doubled. Currently, energy use in Excursion Inlet is highly seasonal, as
Ocean Beauty Seafoods is operating its facility from June through September. The rest of the
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year energy needs are limited to energy for their facility caretaker staff.
As previously noted, it is expected that energy from a hydroelectric resource would have a
substantially lower cost. Lower cost power would allow Ocean Beauty Seafoods to extend its
operating season, thereby opening new markets in herring, crab, halibut, coho, black cod and
value-added repackaged salmon products.
The Excursion Inlet community consists of 119 parcels, with Ocean Beauty Seafoods having the
single greatest impact on resource use. Three sport fish lodges and residents generate their
own power with small generators. The project will address the needs and methods of distributing
electrical service to the community, thereby reducing total community fossil fuel consumption
and corresponding carbon footprint.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
For 2010, Ocean Beauty Seafoods paid $2.75 per gallon for diesel, including transportation and
storage. It is reasonable to assume that as the economy recovers that world demand will drive
these prices higher over time.
Ocean Beauty Seafoods’ variable O&M costs have been estimated at $0.02 per kWh. Most of
the generators installed there are very old and inefficient. It is likely that in the next 5 years they
will need to replace the older engine-generator sets. Given the estimated efficiency of the units
(13 kWh/gal), and fuel cost in 2010, the estimated total cost of power produced in 2010 is on the
order of $0.30 per kWh. Obviously, this will escalate over time with fuel price. Note that in 2003
the diesel fuel price in Excursion Inlet was $1.10 per gallon.
While presently Ocean Beauty Seafood is the largest significant energy user, the Borough
anticipates a market for energy to residential and light commercial interests developing over
time.
The proposed hydroelectric projects have the potential to displace significant amounts of diesel-
fueled generation.
4.3 Proposed System
Include information necessary to d escribe the system you are intending to devel op and add ress
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
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Table 1 summarizes the project information from the 1979 report.
Table 1 Hydroelectric Sites for Excursion Inlet
Site Name S. Excursion Inlet Creek N. Excursion Inlet Creek
Drainage Area (Sq. Miles) 14.3 13.6
Mean Annual Flow (CFS) 118 117
2-year, 7-day low flow (CFS) 4.3 4.1
Net Head (feet) 200 110
Full Gate Flow (CFS) 140 140
Rated Capacity (kW) 2,020 1,110
Dam
Type Rockfill Concrete Diversion
Size 5’ high x 40’ long 5’ x 70’
Flume
Length 5,300’ 6,000’
Diameter 5’ 5’
Penstock
Length 1,650’ 700’
Diameter 4.5’ 4.5’
Transmission
Length (mile) 1.5 1.5
Voltage (kV) 15 15
Costs
Construction $6,000,0 00 $5,400,000
Annual Operations $65,000 $36,000
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Figure 5 is a project plan for the two projects, taken from the 1979 report.
Figure 5 – Project Plan
The report notes that both North and South Excursion Inlet Creek have anadromous fish
present, including sockeye and coho salmon (S. Excursion Inlet Creek) and pink and chum
salmon (N. Excursion Inlet Creek).
According to the study the two projects could have a total installed capacity of approximately 3
MW and generate an annual average of 3,800,000 kWh. This represents a plant capacity factor
of 15%. It is not known how this information was developed in the study, nor how the installed
capacity was selected.
A review of streamflow data from other streams in Southeast Alaska indicates that runoff is
highly seasonal. Streamflow data from Montana Creek, Auke Bay (near Juneau) was reviewed.
The USGS and USFS maintain this gage (15052800) and the drainage area (14.1 sq. miles)
and average annual flow (100 cfs) is very similar to that reported for the two Excursion Inlet
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 18 of 26 7/21/2010
Creeks. Figure 6 provides a graph of average monthly flows, a median year flows, a dry year
and a wet year flows for Montana Creek.
Figure 6 – Monthly Flows Montana Creek
0
50
100
150
200
250
January February March April May June July August September October November DecemberFlow (cfs)Month
Montana Creek Monthly Flows
Average Year 1985 2007 1971
Based the hydrology patterns seen from Montana Creek, the average monthly flows line up with
the local needs at Excursion Inlet (peak demands from May through September. Average
monthly flows suggest that energy production could displace the majority of diesel generation
used by the community and its fish processing industry.
The Phase I Reconnaissance Study will look in greater detail at the hydrology and review plant
installed capacity. If economics appear reasonable for one or both of the projects, further
hydrologic investigation will be carried out in the Phase II Feasibility Study.
Barriers to project development will include anadromous fish concerns. Additional research will
be performed in the Reconnaissance Phase to assess the magnitude of the issue. Major
concerns with protection of these species include minimum flows below a diversion facility and
the need for both upstream and downstream fish passage.
Interconnection of the powerhouse(s) to the electrical distribution system will be reviewed as
part of the study work. Both powerhouses are located a short distance (1.5 miles) from the
community. It is expected that transmission will be relatively inexpensive. Interconnection will
likely require consideration to coordinate diesel generation and hydroelectric generation. At a
minimum, the diesel generation facilities will need to be maintained for backup power and to
augment hydro production during low-flow periods.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 19 of 26 7/21/2010
4.3.2 Land Ownership
Identify potential land ownership issues, includ ing whether site owners have agree d to the proj ect
or how you intend to approach land ownership and access issues.
Lounsbury & Associates, Inc. of Wasilla, AK is currently finalizing a major survey of state lands
the borough selected under entitlement. We know that the penstock site on South Excursion
Inlet Creek is on federal lands.
Land records will be reviewed and the owner(s) of the project lands will be identified. If the
project is located on land owned by others, then the Borough would need to either acquire the
some or all of the necessary land, or to obtain easements or rights of way. If any part of the
project is on USDA Forest Service land, then a Special Use Permit would be required, and they
would have mandatory conditioning authority if a FERC license were required.
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
Applicable permits for the construction of a hydroelectric project or projects at the Excursion
Inlet site(s) may include:
1. Water rights and/or Instream Flow certificate – Alaska Department of Natural Resources
(DNR), Division of Mining, Land, and Water.(In Alaska, federal reserved water rights may be
involved if the project water source is on federal land.)
2. Instream Flow reservation – may be required as protective measure for preservation of fish
habitat
3. Land ownership, easements or rights of way, USFS Special Use Permit
4. FERC License, or Alaska DNR, Division of Mining, Land and Water, Dam Safety and
Construction Unit (DSCU) Certificate of Approval to Construct A Dam and Certificate of
Approval to Operate A Dam
5. Fish Habitat Permit – Alaska Department of Fish and Game (ADFG)
6. Water Quality certification – must meet state standards administered by the Department of
Environmental Conservation (DEC), Division of Water
7. Coastal Management Program project consistency determination
8. Local construction permits, if applicable
9. Army Corps of Engineers Section 404 Permit for developments within ordinary high water of
navigable rivers and/or wetlands of navigable rivers
This list of permits will be reviewed and updated as part of the Reconnaissance and Feasibility
Study tasks.
Permitting Timeline
FERC has primary jurisdiction over construction of most U.S. hydropower projects. However, FERC
has agreed that some small projects in Alaska are non-jurisdictional. For example, the Nushagak
Cooperative in Dillingham, Alaska was able to obtain a declaration of non-jurisdiction because its
proposed project would not be connected to an inter-state grid; would not be located on federal
lands, and is located on a non-navigable river. If a FERC license is required, for a small project
may be possible to obtain a FERC license within a year after the formal initiation of the licensing
process, if the environmental issues can be resolved expeditiously with the resource agencies as
the process moves along. However, significant information needs are identified, and depending on
the number and the nature of studies required, the permitting process could take much longer.
Phase I work should clarify the likely timeframe for permitting.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 20 of 26 7/21/2010
If the project(s) were determined not to be within FERC’s jurisdiction, the State of Alaska would
approve the construction and operation. The timeframe for state permitting would be explored
with the agency in the initial phases of the project, but it is anticipated that timing would again
depend upon the complexity of the resource issues that are identified.
Potential Barriers
Potential barriers to obtaining the permits needed to construct a project(s) at Excursion Inlet
include:
fish habitat/instream flows
anadromous fish distribution in both creeks (for example, sockeye salmon spawn in Neva
Lake, which connects to S. Excursion Inlet Creek via Neva Creek, about 0.6 miles upstream
from its confluence with Excursion Inlet)
sediment routing at the diversion structures
water quantity and quality issues associated with the diverting of streamflow for the
proposed projects
other environmental issues not currently known
The two streams identified for potential projects are known to have anadromous fish present. If
low instream flows during summer months are likely to adversely affect the anadromous fish
that use the streams, this may present a significant challenge for development of one or both
sites.
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
• Telecommu nications interference
• Aviation considerations
• Visual, aesthetics impacts
• Identify and discuss other potential barriers
Anadromous fish are known to be present in the two streams identified for these project
locations. The project(s) would involve diverting water from these streams, so clearly impacts
on fish habitat would need to be assessed and a Fish Habitat Permit would be required.
Threatened and endangered species lists will be reviewed to determine which, if any listed
species are present. Further assessment of existing information regarding fish presence,
wildlife, habitat, wetlands, archaeological and historical resources and other environmental
issues and constraints will be gathered in the Phase I and II investigations.
Archaeological and historical resources typically require consultation at the federal and/or state
levels depending upon the licensing or permitting processes that are involved. Phase I will
investigate the land development issues and determine if any constraints exist. Phase II will
assess what, visual and aesthetic issues may be of concern and the level of study that will be
required. Telecommunications and aviation issues will be given consideration in Phase I,
although they are not believed to present concerns for this project.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 21 of 26 7/21/2010
4.4 Proposed New System Costs and Projected Revenues
(Total Estimated Costs and Projected Revenues)
The level of cost inform ation provided will vary according t o the phase of funding requested and
any previous work the applicant may have do ne on the project. Applicants must reference the
source of their cost data. For example: Appl icant’s Records or An alysis, Industry Standa rds,
Consultant or Manufacturer’s estimates.
4.4.1 Project Development Cost
Provide detailed proje ct cost information based on your cu rrent knowledge and un derstanding 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
Project construction cost estimates would be developed as part of the studies. Recent projects
in Alaska have ranged in cost from $3,000 to $10,000 per kilowatt of installed capacity. Table 2
lists some recent projects and their statistics. The 1979 estimated cost for the two projects was
$11,400,000 for a total installed capacity of 3,110 kW. This equates to $3,670 per kW.
Table 2. Costs of Recently Developed Alaska Projects
Project Capacity (kW) Generation (MWh) Cost (Millions) Cost per kW
Falls Creek 800 2,160 $8.5 $10,625
Kasidaya Creek 3,000 11,900 $10 $3,333
Lake Dorothy 14,300 74,500 $60 $4,195
Excursion Inlet construction will benefit from its proximity to Juneau. Nonetheless, construction
of two projects simultaneously is complicated, especially with a short construction season and
the need for a construction camp. These projects will benefit from very short transmission lines
and construction taking place at altitudes below 500 feet. It is reasonable to assume the two
projects could be developed for approximately $15,500,000 (approximately $5000 per kW).
It is likely that the Borough could finance some portion of the development cost of the project by
grant funds and the balance could be obtained through Bonds or other municipal financing.
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 co sts are not eligible for grant funds h owever grantees are r equired to meet
ongoing reporting requirements for the purpose of reporting impacts of projects on the communities
they serve.)
Hydroelectric operating and maintenance costs vary widely. These projects should be relatively
inexpensive to operate. O&M costs will be likely on the order of $300,000 annually covering
insurance, labor, management, supplies, etc. This O&M cost does not include debt service.
It is expected that debt and O&M costs would be funded through the sales of electricity to the
community and Ocean Beauty Seafood. Estimates of Operation and Maintenance costs will be
developed during Task 2.8: Economic and financial analysis.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 22 of 26 7/21/2010
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
As noted above, it is expected that electricity would be sold to the community. Residential uses,
while presently not significant, are expected to rise with the provision of services. The existing
industrial user, Ocean Beauty Seafoods, would be the primary purchaser in the summer
months.
Simple cost of power produced would be in the range of $0.25 per kWh, based on 30-year
financing and a total of $4,000,000 of grant funding. Of course once the project is paid off, cost
of power would drop dramatically. The levelized cost of power (assumed 50 year life) would be
on the order of $0.12 per kW.
Based on the spreadsheet analysis of diesel displaced by hydroelectric production, there will be
a respectable benefit/cost (B/C) ratio for the project. If the hydroelectric projects are able to
generate 3,000,000 kWh annually, they would displace 250,000 gallons of diesel fuel annually.
Based on the NPV of the value of the diesel displaced and the NPV of the development cost of
the project, the B/C ratio will be 1.16.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be consider ed 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.
AEA form Project Cost Worksheet attached.
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 Excursion Inlet proposed hydroelectric projects will show a substantial benefit to the Haines
Borough and the people of Alaska. Benefits include the following:
• Reduced dependence on fossil fuel. Project can be expected to displace 250,000 gallons of
fuel used by the existing diesel generators and 20,000 gallons of fuel used for heating each
year. Over a fifty-year project life the proposed project would have a net present value
benefit of $17.5 million and a net present value cost of $15 million.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 23 of 26 7/21/2010
• The hydroelectric project would reduce carbon emissions and pollution in the region.
• The project would provide electrical service to community residents, commercial and
industrial users at an attractive price. Affordable energy encourages community growth
and economic development.
• With stable electricity pricing, the industrial user may be able to expand its operations and
provide an expanded market for the regional fleet and additional jobs. One hundred twenty-
seven distinct permits currently produce in the area. With expanded and varied markets,
currently inactive permits could be activated, and permits fishing other regions could be
attracted to Excursion Inlet, thereby growing the industry and the economic benefits that
accrue, including tax revenues to the State of Alaska and the Haines Borough.
• The project is not being pursued to generate profit. Rates for electricity would be set to
recover costs (debt and O&M). A levelized rate of $0.13 per kWh is expected, based on
average production. An initial rate of $0.25 per kWh would likely be required to cover costs
during debt service on the project.
• The projects are small run-of-river hydroelectric facilities that would be designed to minimize
any aquatic resource impacts and displace fossil fuel generation. They may qualify to sell
green tags. Generally, for hydroelectric projects to sell green tags, they must be qualified as
“low impact hydro.” We would expect to qualify through the Low Impact Hydropower
Institute.
• The hydroelectric project will reduce fossil fuel consumption and accompanying emissions
pollution, thereby contributing to the reduction of Alaska’s overall carbon footprint.
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 business and operations plan will be developed as part of the feasibility study (See Task
2.9). Excursion Inlet is currently outside of a local utility ARC service area. To provide the best
operations scenario, the Borough will be looking at several options. One intriguing option could
be creation of a local energy service area governed by a local board. Other options include
variations on an agreement with a certified utility for operations and maintenance, a cooperative
agreement that includes Ocean Beauty Seafoods, or other viable option. Ocean Beauty
Seafoods will need to maintain backup power and swing load capabilities for their operation.
Backup power and infrastructure will be reviewed as part of the feasibility study. Maintenance
and operations will be financed through user fees. The operating costs and ongoing support for
existing systems will be considered during the development of an operations plan.
The Haines Borough is committed to energy sustainability and reducing energy costs Borough
wide. Currently the Borough tracks usage, savings and benefits of energy management.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 24 of 26 7/21/2010
SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS
Discuss what you have done to pr epare for this award and how quickly you intend to procee d
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 ha ve been able to
meet the requirements of previous grants.
Recently the Haines Borough Assembly and Borough staff visited Excursion Inlet on a fact
finding trip. In meetings with Ocean Beauty Seafoods and local residents, sustainable
hydropower was discussed as a high priority need for the community. The Borough has
contracted with two engineering firms to assist in preparing the grant application. Their project
schedule identifies a start date that will begin in July of 2011, which would be shortly after
grant award. We intend to complete both the reconnaissance and feasibility phase of the
project within a two-year time period.
SECTION 8– LOCAL SUPORT
Discuss what local sup port or possible oppo sition there may be regarding your project. Include
letters of support from the community that would benefit from this project.
The Borough has provided two letters demonstrating local support. Based on our contacts in
the community to date, we do not believe there is any opposition to the projects should they
prove feasible economically, and if environmental concerns are capable of satisfactory
resolution. We intend to consult with the community on an ongoing basis as the process of
studying and possibly developing these projects moves forward.
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 req uested in gr ant funds, a nd additional investments you will m ake as an
applicant.
Include an estimate of budget costs by milestones using the form – GrantBudget3.doc
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 25 of 26 7/21/2010
Provide a n arrative summary regarding funding sources a nd your fina ncial commitment to the
project.
The Grant Budget Form by task is attached. The applicant requests 100% funding of the
studies described in this application with the exception of $10,000 in matching funds that will
be provided in Phase I by the Borough.
Renewable Energy Fund Grant Round IV
Excursion Inlet Hydro Projects
Grant Budget Form: Phase 1 – Reconnaissance
Grant Budget Form: Phase 2 – Feasibility
Renewable Energy Fund Grant Round IV Grant Budget Form 9-14-10
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
Excursion Inlet Hydro Project Phase I -
Reconnaissance
$
1. Project scoping and contractor solicitation. 8/12/2011 $8,817 $0 $0 $8,817
2. Resource identification and analysis 9/12/2011 $0 $10,000 $0 $9,999
3. Land use, permitting, environmental analysis 9/12/2011 $14,265 $0 $0 $14,265
4. Preliminary design analysis/cost estimates 11/10/2011 $46,021 $0 $0 $46,021
5. Simple economic analysis 1/9/2012 $8,020 $0 $0 $8,020
6. Final report and recommendations 2/8/2012 $16,472 $0 $0 $16,472
$
$
$
$
TOTALS $93,593 $10,000 $103,593
Budget Categories:
Direct Labor & Benefits $80,575 $0 $80,575
Travel & Per Diem $5,634 $0 $5,634
Equipment $0 $0 $0
Materials & Supplies $350 $0 $350
Contractual Services $7,034 $10,000 $17,034
Construction Services $0 $0 $0
Other $0 $0 $0
TOTALS $93,593 $10.000 $103,593
Applications should include a separate worksheet for each project phase (Reconnaissance, Feasibility, Design and Permitting, and Construction)-
Add additional pages as needed
Renewable Energy Fund Grant Round IV Grant Budget Form 9-14-10
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
5. Preliminary design analysis
and cost
4. Cost of energy and market
analysis
5. Simple economic analysis
6. 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
Renewable Energy Fund Grant Round IV Grant Budget Form: Feasibility 9-14-10
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
Excursion Inlet Hydro Project Phase II -
Feasibility
$ $ $
1. Project scoping 03/15/12 $5,747 $ $5,747
2. Detailed energy resource analysis 03/15/13 $70,593 $ $70,593
3. Identification of land and regulatory issues 04/15/12 $7,762 $ $7,762
4. Permitting and environmental analysis 07/15/12 $34,996 $ $34,996
5. Detail analysis of existing and future energy
costs and markets
05/15/13 $7,781 $ $7,781
6. Assessment of alternatives 04/15/12 $12,100 $ $12,100
7. Conceptual design analysis and cost
estimate
10/15/12 $44,462 $ $44,462
8. Detailed economic and financial Analysis 05/15/13 $10,566 $ $10,566
9. Conceptual business and operations plan 06/15/13 $13,051 $ $13,051
10. Final report and recommendations 07/15/13 $16,479 $ $16,479
TOTALS $223,536 $223,536
Budget Categories:
Direct Labor & Benefits $175,260 $ $175,260
Travel & Per Diem $15,337 $ $15,337
Equipment $14,729 $ $14,729
Materials & Supplies $515 $ $515
Contractual Services $17,695 $ $17,695
Construction Services $0 $ $
Other $ $ $
TOTALS $223,536 $ $223,536
Applications should include a separate worksheet for each project phase (Reconnaissance, Feasibility, Design and Permitting, and Construction)-
Add additional pages as needed
Renewable Energy Fund Grant Round IV Grant Budget Form: Feasibility 9-14-10
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
5. Preliminary design analysis
and cost
4. Cost of energy and market
analysis
5. Simple economic analysis
6. 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
Renewable Energy Fund Grant Round IV
Excursion Inlet Hydro Projects
Project Cost/Benefit Worksheet
Renewable Energy Fund Round 4
Project Cost/Benefit Worksheet
RFA AEA11-005 Application Cost Worksheet Page 1 7-21-10
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. Hydro projects minimum average 3,000,000 kWh
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 5 diesel generators
ii. Rated capacity of generators/boilers/other 3,175 kW
iii. Generator/boilers/other type diesel
iv. Age of generators/boilers/other 20
v. Efficiency of generators/boilers/other 13 kWh/gal
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor Not separately broken out
ii. Annual O&M cost for non-labor Estimated at $0.02 per kWh
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] 3,900,000
ii. Fuel usage
Diesel [gal] 280,000 gal
Other
iii. Peak Load 2,100
iv. Average Load 1,600
v. Minimum Load 800
vi. Efficiency 13 kWh/gal
vii. Future trends
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] 20,000 gal
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 4
Project Cost/Benefit Worksheet
RFA AEA11-005 Application Cost Worksheet Page 2 7-21-10
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]
3,110 kW Hydro
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 3,000,000
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 hydro
4. Project Cost
a) Total capital cost of new system $15,500,000
b) Developme nt cost Included above
c) Annual O&M cost of new system $300,000
d) Annual fuel cost
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity 280,000 gallons
ii. Heat 20,000 gallons
iii. Transportation
b) Current price of displaced fuel $2.75
c) Other economic benefits Increased employment opportunity for the community
d) Alaska public benefits Increased tax revenues
6. Power Purchase/Sales Price
a) Price for power purchase/sale $0.15 to $0.25 per kWh range anticipated
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 1.15
Pay back (years) 30 years
Renewable Energy Fund Grant Round IV
Excursion Inlet Hydro Projects
Cost Spreadsheet by Task
Haines Borough - Excursion Inlet Hydro Updated 9/13/2010Task 1.1 Task 1.2 Task 1.3 Task 1.4 Task 1.5 Task 1.6 Task 2.1 Task 2.2 Task 2.3 Task 2.4 Task 2.5 Task 2.6 Task 2.7 Task 2.8 Task 2.9 Task 2.10LaborBilling Project Resource ID Land Use Prel Design Economic Final Project Energy Land & Permitting Energy Costs Alternatives Design Economic Business FinalTotalTotalNameRate Scoping and analysis & Enviro Cost est. Analysis Report Scoping Resources Regulatory & Enviro & Markets& Cost & Financial & Ops Plan ReportHoursCostDon Jarrett$175.00 8244 64 16 248244481660162424328 $57,400.00Scott Mahnken$175.00 840 64 0 16008004400016160 $28,000.00Eli Wilson$90.00 800 40 0 400000080004136 $12,240.00Lisa Fortney$120.00 8816 00 8001616000008 80$9,600.00Pete Rittmueller$140.00 88000 80182 00000008214$29,960.00Janet White$130.00 8816 00 1680162408002020144$18,720.00John Blum$175.00 0032 00 0800120000008168$29,400.00Anne Falcon$175.00 0000 24 808002424040248160 $28,000.00Rubin Jackson$120.00 000 40 0 0000000100000140 $16,800.00Nic Truscott$75.00 00000 00120 00000000120$9,000.00Stream gauging technician $50.00 00000 006000000000 60$3,000.00Dennis Shult$120.00 00000 000040000000 40$4,800.00Haines Project Management$70.004 2216142 18341114256 $3,920.00Haines Project Clerk$45.001 240641 10380018241 $1,845.00Lounsbury Surveying$175.0012618 $3,150.00$0.00Total Hours535686 224 47 9227396 5821044532815880 1001865Task Labor Cost$6,965$8,250$12,720$31,920$7,340$13,380$4,025$43,195$7,710$31,885$6,240$8,810$36,770$9,915$11,640$15,070$255,835.0Expenses:Computers $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Equipment purch/rent $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $14,300.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $14,300.00Postage/shipping $50.00 $0.00 $0.00 $0.00 $0.00 $40.00 $50.00 $500.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $640.00Reproduction $50.00 $0.00 $0.00 $100.00 $0.00 $100.00 $50.00 $0.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $0.00 $650.00Travel $0.00 $0.00 $1,500.00 $3,000.00 $0.00 $0.00 $0.00 $9,800.00 $0.00 $2,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $16,300.00Film/misc/gage matl $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Excursion Inlet Travel $970.00 $1,670.00 $970.00$3,610.00Sub-Total Expenses: $100 $0 $1,500 $4,070 $0 $140 $100 $26,270 $50 $3,020 $50 $50 $50 $50 $50 $0$35,500.00Expense Mark-up 3% $3.00 $0.00 $45.00 $122.10 $0.00 $4.20 $3.00 $788.10 $1.50 $90.60 $1.50 $1.50 $1.50 $1.50 $1.50 $0.00$1,065.00Total Expenses $103 $0 $1,545 $4,192 $0 $144 $103 $27,058 $52 $3,111 $52 $52 $52 $52 $52 $0 $36,565.00Subcontracts:EPS:David Buss $165.00 8 8 0 40 4 12 8 2 0 0 8 16 32 2 8 6 154 $25,410.00Earl George $145.00 4 4 0 40 0 12 4 0 0 0 2 8 24 4 0 4 106 $15,370.00Admin $63.00 2 2 0 0 0 2 0 0 0 0002002 10$630.000 000000 000000000 0$0.00Expenses $1.00 0 0 0 500.00$ 0 0000000500.00$ 0001000 $1,000.00Sub-Total Subcontracts$1,698.00 $1,698.00 $0.00 $9,620.00 $660.00 $2,862.00 $1,572.00 $330.00 $0.00 $0.00 $1,446.00 $3,144.00 $7,418.00 $582.00 $1,320.00 $1,368.00$33,718Sub. Mark-up (3%)$50.94 $50.94 $0.00 $288.60 $19.80 $85.86 $47.16 $9.90 $0.00 $0.00 $43.38 $94.32 $222.54 $17.46 $39.60 $41.04$1,012Total Subcontracts$1,749 $1,749 $0 $9,909 $680 $2,948 $1,619 $340 $0$0 $1,489 $3,238 $7,641 $599 $1,360 $1,409$34,730Task Totals$8,817 $9,999 $14,265 $46,021 $8,020 $16,472 $5,747 $70,593 $7,762 $34,996 $7,781 $12,100 $44,462 $10,566 $13,051 $16,479Grand Totals TOTAL FEE $327,130Reconnaissance $103,593Notes Feasibility $223,536Assumes one site visit for Jarrett, Mahnken and Blum during Reconnaissance phaseGrand Total $327,130Assumes Blum makes one trip for Agency meeting in Anchorage during feasibility studyEPS will take care of all electrical activities, including cost estimates for controls, transmission and coordination with the BoroughBorough responsible for transport to/from Excursion Inlet and housing during site visits.Surveying for Excursion Inlet Hydro Projects not included. Studies will rely on existing topographic mapping and site work.Hydrology work for Excursion Inlet includes 3 trips (first trip plus 2 additional) for rating curve development and training of local labor for assistance with gage data downloading. Costs are for one year of gage work.Hydrology work includes purchase of bubbler type stream gauge which will be installed permanently on both Creek, including gauge monitor, enclosure and accessoriesPhase I ReconnaissancePhase II Feasibility & Conceptual Design
Renewable Energy Fund Grant Round IV
Excursion Inlet Hydro Projects
Letters of Support
Jan Hill, Mayor, & Borough Assembly
Haines Borough
P.O. Box 1209
Haines, Alaska 99827
This letter is in responce to an inquiry by Deborah Schnabel
concerning local Rsident and Property Owner, responce to a Borough
Proposed Grant Application, to study a possible Hydroelectric
Generation Plant here at Excursion Inlet. I have talked to a number
of folks here, and via phone & email, listed below, concerning the
proposed Grant application, since receiving the inquiry.
There have been no negative responces to such a Grant
Application, and only one neutral responce. Most folks would
welcome such a study to be done, to give the community an
oppurtunity to see if such a project is feesable, and makes economic
sense.
There is one concern that was fairly common among the
respondents, and that was, “If such a project was to be built, there
should be a “Plan” for extending the Power produced to the local
Borough Subdivisions, in Excursion Inlet, Ak, in the long term scheme
of things.” Some responders would NOT support, a Cannery only,
project that leaves the local residents, without infrastructure
improvements, in the long term.
With the Long Term, Southeastern Intertie Power Grid being
proposed in the region, a connection to that Intertie, would make
excess power generated here, available for sale to other Users on
the Intertie, and revenue from such sales, used for maintainance of
the project, and to extend the local electrical infurstucture to the
Excursion Inlet, Ak subdivisions.
We would like to be kept informed as to the progress of the
Grant application, and any subsequent Study, when completed.
Sincerely.
BB rr uu cc ee ''ss TT rr aa dd ii nn gg PP oo ss tt
Excursion Inlet South
Excursion Inlet, Alaska 99850
FCC GROL #PG-13-10449 Naber CTRT #002984
FFL#9-92-110-01-3E-06797 Phone (907)771-4830
Internet bruce@btpost.net
DATE: 99 //11 00 //11 00
for, and in behalf of:
Chuck & Fay Elliott, Russel & Shelly Ables, Doug & Laura Vivian
John & Anita Crabill, Tom & Betsy Bear, Bruce & Debora Gordon
Adan & Haley DesRosiers, Jack Campbell, Matt Campbell, Wayne Lonn
MacDonald Franklin & Sons, Clyde & Kathy Shafer, Paul Dillon
Bob Newsome
BB rr uu cc ee ''ss TT rr aa dd ii nn gg PP oo ss tt
Excursion Inlet South
Excursion Inlet, Alaska 99850
FCC GROL #PG-13-10449 Naber CTRT #002984
FFL#9-92-110-01-3E-06797 Phone (907)771-4830
Internet bruce@btpost.net
DATE: 99 //11 00 //11 00
Renewable Energy Fund Grant Round IV
Excursion Inlet Hydro Projects
Project Staff Resumes
.