HomeMy WebLinkAboutHoonah HR-REF-Final.Application
Renewable Energy Fund Round IV
Grant Application
AEA 11-005 Application Page 1 of 19 7/21/2010
Application Forms and Instructions
The following forms and instructions are provided to assist you in preparing your application for
a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA)
and the forms are available online at: http://www.akenergyauthority.org/RE_Fund-IV.html
Grant Application
Form
GrantApp4.doc Application form in MS Word that includes an outline
of information required to submit a complete
application. Applicants should use the form to assure
all information is provided and attach additional
information as required.
Application Cost
Worksheet
Costworksheet4.doc Summary of Cost information that should be
addressed by applicants in preparing their application.
Grant Budget Form GrantBudget4.doc A detailed grant budget that includes a breakdown of
costs by milestone and a summary of funds available
and requested to complete the work for which funds
are being requested.
Grant Budget Form
Instructions
GrantBudgetInstructions4.pdf Instructions for completing the above grant budget
form.
• If you are applying for grants for more than one project, provide separate application
forms for each project.
• Multiple phases for the same project may be submitted as one application.
• If you are applying for grant funding for more than one phase of a project, provide
milestones and grant budget for completion of each phase.
• If some work has already been completed on your project and you are requesting
funding for an advanced phase, submit information sufficient to demonstrate that the
preceding phases are satisfied and funding for an advanced phase is warranted.
• If you have additional information or reports you would like the Authority to consider in
reviewing your application, either provide an electronic version of the document with
your submission or reference a web link where it can be downloaded or reviewed.
REMINDER:
• Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials
submitted to the Authority may be subject to disclosure requirements under the act if no
statutory exemptions apply.
• All applications received will be posted on the Authority web site after final
recommendations are made to the legislature.
• In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or
proprietary company data be kept confidential subject to review and approval by the
Authority. If you want information is to be kept confidential the applicant must:
o Request the information be kept confidential.
o Clearly identify the information that is the trade secret or proprietary in their
application.
o Receive concurrence from the Authority that the information will be kept
confidential. If the Authority determines it is not confidential it will be treated as a
public record in accordance with AS 40.25 or returned to the applicant upon
request.
Renewable Energy Fund Round IV
Grant Application
AEA 11-005 Application Page 1 of 17 7/21/2010
Application Forms and Instructions
The following forms and instructions are provided to assist you in preparing your application for
a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA)
and the forms are available online at: http://www.akenergyauthority.org/RE_Fund-IV.html
Grant Application
Form
GrantApp4.doc Application form in MS Word that includes an outline
of information required to submit a complete
application. Applicants should use the form to assure
all information is provided and attach additional
information as required.
Application Cost
Worksheet
Costworksheet4.doc Summary of Cost information that should be
addressed by applicants in preparing their application.
Grant Budget Form GrantBudget4.doc A detailed grant budget that includes a breakdown of
costs by milestone and a summary of funds available
and requested to complete the work for which funds
are being requested.
Grant Budget Form
Instructions
GrantBudgetInstructions4.pdf Instructions for completing the above grant budget
form.
• If you are applying for grants for more than one project, provide separate application
forms for each project.
• Multiple phases for the same project may be submitted as one application.
• If you are applying for grant funding for more than one phase of a project, provide
milestones and grant budget for completion of each phase.
• If some work has already been completed on your project and you are requesting
funding for an advanced phase, submit information sufficient to demonstrate that the
preceding phases are satisfied and funding for an advanced phase is warranted.
• If you have additional information or reports you would like the Authority to consider in
reviewing your application, either provide an electronic version of the document with
your submission or reference a web link where it can be downloaded or reviewed.
REMINDER:
• Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials
submitted to the Authority may be subject to disclosure requirements under the act if no
statutory exemptions apply.
• All applications received will be posted on the Authority web site after final
recommendations are made to the legislature.
• In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or
proprietary company data be kept confidential subject to review and approval by the
Authority. If you want information is to be kept confidential the applicant must:
o Request the information be kept confidential.
o Clearly identify the information that is the trade secret or proprietary in their
application.
o Receive concurrence from the Authority that the information will be kept
confidential. If the Authority determines it is not confidential it will be treated as a
public record in accordance with AS 40.25 or returned to the applicant upon
request.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 2 of 17 7/21/2010
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Inside Passage Electric Cooperative, Inc. (IPEC)
Type of Entity:
Non-profit electric cooperative.
Mailing Address
P.O. Box 210149, Juneau, Alaska, 99821
Physical Address
Auke Bay, Alaska
Telephone
907-789-3196
Fax
907-790-8517
Email
jmitchell@alaska.com
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Jodi Mitchell
Peter Bibb
Title
Manager/CEO
Operations Manager
Mailing Address
PO Box 210149, Auke Bay, AK 99821
Telephone
907-789-3196 Ext. 24
Fax
907-790-8517
Email
jmitchell@alaska.com
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
X An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
--- An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
--- A local government, or
--- 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 IV
AEA11-005 Grant Application Page 3 of 17 7/21/2010
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)
Hoonah Heat Recovery Project
2.2 Project Location –
Include the physical location of your project and name(s) of the community or communities that will
benefit from your project.
Hoonah is a Tlingit community located on the northeast shore of Chichagof Island, 40 air miles
west of Juneau. Hoonah's maritime climate is characterized by cool summers and mild winters.
Hoonah is the largest Tlingit village in Alaska. Commercial fishing and logging have supported
the population, and most residents maintain a subsistence lifestyle. The City of Hoonah was
incorporated in 1946 and has a population of 823 (2008).
The proposed heat recovery project will be located within the community of Hoonah, and will
serve the Hoonah City Schools facilities, Clinic, Fire Hall, and Senior Center.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind Biomass or Biofuels
Hydro, including run of river Transmission of Renewable Energy
Geothermal, including Heat Pumps Small Natural Gas
X Heat Recovery from existing sources Hydrokinetic
Solar Storage of Renewable
Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Reconnaissance Design and Permitting
Feasibility X Construction and Commissioning
Conceptual Design
The IPEC Hoonah power plant is an existing facility in operation prior to August 20, 2008. The
proposed heat recovery project is a new project that has not been constructed.
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
IPEC proposes to construct a heat recovery project in the community of Hoonah. The Project
will recover available jacket water heat from IPEC-Hoonah diesel generation that is currently
being rejected to the atmosphere via radiators and reduce annual diesel heating fuel
consumption of nearby community buildings by over 55,000-gallons/year.
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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.)
Financial/economic benefits
The heat recovery project, in conjunction with new high efficiency electronically controlled
gensets, will result in a reduction in diesel fuel consumption for both space heating and power
generation upwards of 75,000 gallons of diesel fuel annually (55,000-gallons of space heat and
20,000-gallons of genset diesel fuel). The economic benefit of this fuel reduction is $225,000
per year, at a delivered fuel cost of $3.00/gallon. This economic benefit will be allocated
between the end-users and IPEC via the Heat Sales Agreement, resulting in a win-win situation
– decreased operating costs to the end-user and additional revenue to IPEC.
This renewable energy project will also decrease future capital costs of fuel system upgrades to
replace aging, non-code compliant fuel systems, as reliable heat recovery will reduce the need
for on-site fuel storage capacity.
Other benefits to Alaskan public
Additional benefits include a reduction in carbon footprint, NOx, and Particulate Matter
emissions achieved by eliminating the equivalent of 75,000 gallons of diesel exhaust pollutant,
as well as local economic development during the constructions phases of the project.
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 estimated cost of construction is $1,005,000. Of this amount, IPEC has secured funding
and is able to provide matching funds as a contribution in aid of construction in the amount of
$530,000. The balance requested for this project from the Renewable Energy Grant Fund is
$475,000 (refer to Appendix C).
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. $ 475,000
2.7.2 Other Funds to be provided (Project match) $ 530,000
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $1,005,000
Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get to a fully
operational project)
2.7.4 Total Project Cost (Summary from Cost Worksheet
including estimates through construction)
$1,005,000
2.7.5 Estimated Direct Financial Benefit (Savings) $ >$225,000 / year
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
$
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 5 of 17 7/21/2010
(Section 5.)
For estimated project costs and benefits refer to the attached Hoonah Energy Projects Concept
Design Report (Selected sections of the report are located in Appendix F – Technical Data):
Refer to Appendix B of CDR for Construction Cost Estimates.
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.
IPEC will be the single point of contact and will execute all grant responsibilities. AE&E will
provide all design, permitting, system integration, and construction management. IPEC
requests that AEA provide grant management assistance to support using the modified force
account construction approach.
Peter Bibb, IPEC Operations Manager, is the Grant Manager. He is the single point of contact
with AEA and will execute all grant contractual and administrative responsibilities. Mr. Bibb has
19 years of experience in the electric power generation field. He is skilled in tracking grants,
communications, and in his ability to deal smoothly and professionally with executive officers,
upper management, employees, vendors, and customers in day-to-day and occasionally
adverse situations.
Brian C. Gray, P.E., AE&E vice president and Chief Engineer, will serve as the Project
Manager. He will work with the Grant Manager to commit essential engineering disciplines to
ensure a successful project. He will establish specific man hour and reimbursable budgets, and
schedule the necessary technical staff. He will track specific contractual deliverables against the
schedule to ensure adequate resources are available to meet critical milestones. He will analyze
all relevant issues such as available shipping options, permitting and site control issues, and
procurement requirements. Drawing on the expertise of our team, he will assign specific project
tasks to responsible team members. Mr. Gray will oversee all technical work and coordinate the
efforts of our team to ensure the efficient and cost effective production of project designs. He
will develop a realistic project schedule to address critical issues in proper sequence to
minimize cost and maximize construction resources.
Mr. Gray will be directly responsible for the quality of all work produced by our team. He will
oversee and review all critical tasks and provide input and support on all significant design
issues. He will ensure that design review comments from the Authority and IPEC are adequately
addressed and incorporated into final design documents, and he will manage the logistics of
construction support. His working relationship with Authority staff and IPEC dates to the early
1990s. As vice president of AE&E, Mr. Gray has the authority to assign the technical personnel
and resources necessary to successfully complete this project.
Renewable Energy Fund
Grant Application Round IV
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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.)
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2011/2012
GRANT AWARD X
PROCUREMENT & MOBILIZATION X----------------X
PHASE IV CONSTRUCTION X---------------------X
START-UP & COMMISSIONING X
OPERATIONS REPORTING
(ONGOING) X---
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.)
Project milestones (see above table for details of components and dates) include:
• Final Design and NEPA Permitting
o Final design and NEPA project level permitting (Phase III) for the RPSU and heat
recovery project is scheduled for completion by winter 2011. This effort is fully
funded.
• Site Control & Heat Sales Agreements
o Heat Sales agreements and utility permits for routing the arctic pipe between the
power plant and end-users is scheduled to be in place by spring 2011.
IPEC is taking an aggressive approach to ensure that all design, permitting, site control and
heat sales agreements are in place prior to the Rural Energy Fund grant award.
• Grant Award – August 2011.
• Procurement and Mobilization – Materials will be procured and ready to mobilize to
Hoonah by winter of fall 2011.
• Phase IV Construction – Construction will start upon arrival of materials, and when the
ground is sufficiently thawed to perform the arctic pipe trenching. Estimated start date is
the first week of spring 2012.
• Start-up and Commissioning – the heat recovery system will be ready for start-up and
commissioning by fall 2012.
• Operations Reporting – the project will comply with all REF reporting requirements
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 RPSU and heat recovery project will be constructed using the modified-force account
method, and AEA will manage the project on behalf of IPEC. AEA has selected the engineering
firm Alaska Energy and Engineering, Inc. for design, permitting, construction management, and
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Grant Application Round IV
AEA11-005 Grant Application Page 7 of 17 7/21/2010
system integration. The Project will be constructed using primarily utility and local force account
labor. An experienced superintendent will perform and oversee local labor and specialty trades.
Locally available contractors will be used for the earthwork and electric line extension. All major
purchases and construction contracts will be in accordance with AEA procurement policies.
Alaska Energy & Engineering, Inc.
John Dickerson, EIT, AE&E, will be the lead Design Engineer/Construction Manager. He
has more than 25 years of Alaska construction, engineering, project management, and business
management experience. For the past twelve years, he has served as project engineer for the
design and construction of over $50-million worth of rural power system and fuel storage
projects in Alaska communities. Responsibilities have included site investigations, design,
drafting, cost estimation, procurement, logistics, and construction management. As a design
engineer, Mr. Dickerson has prepared construction documents for heating, ventilation,
plumbing, refrigeration, fuel storage and ASME B31.3 process piping systems for a range of
commercial and industrial facilities. He has developed a long working relationship with the
community of Hoonah and IPEC as well as the Authority.
Steven J. Stassel, P.E., AE&E president, will accomplish the Environmental Permitting. He
has more than 21 years of engineering experience, including rural Alaska energy projects in
more than 125 communities. He has been responsible for permitting and fulfilling all regulatory
and environmental compliance requirements (Wetlands, Flood Mitigation, Coastal Zone, NEPA
Environmental review) and state and federal agency coordination. He has successfully
permitted more than 40 energy-related projects in rural Alaska.
IPEC’s proposed Project organization chart (below) introduces and identifies key members of
our team and shows the lines of authority. Each engineering discipline is led by a professional
engineer registered in the State of Alaska. All engineering documents will be stamped by Alaska
registered engineers.
Refer to Appendix A for resumes of key personnel.
Project Organization Chart
Grant Manager
Peter Bibb
IPEC
Project Manager
Brian Gray
A.E.& E.
AEA Project
Manager
David Lockard
Design/CM
John Dickerson
AE&E
Permitting
Steve Stassel
AE&E
Procurement /
Expediting
Cody Carpenter
AE&E
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Grant Application Round IV
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3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
Alaska Energy and Engineering is in communication with AEA staff on virtually a daily basis.
The Authority Project Manager will be kept up to date on the project status by periodic email
and/or verbal status reports, in addition to written quarterly reports. Periodic reports will provide
general information regarding project status and any unforeseen circumstances that need to be
resolved. Support will be provided to the AEA Project Manager to complete quarterly reports
with specific information on project completion status vs. project schedule; project labor reports
– including hours, rates and costs; and current project expenditures relative to budgeted project
costs.
In addition to regular email updates and quarterly reports, we propose to keep the City of
Hoonah and involved agencies updated. Possible information briefings include:
• an initial kickoff briefing of the detailed project implementation plan,
• a review at completion of final design and permitting,
• and a final briefing of all project results.
AE&E has provided design and construction support services on over 80 energy infrastructure-
related projects throughout Alaska over the past 15-years. AE&E’s long-term working
relationship with the Authority assures well-tested monitoring methods and seamless channels
of communication.
3.6 Project Risk
Discuss potential problems and how you would address them.
There is always an element of risk in any rural Alaska construction project; however, the risk
associated with this project is minimal. Heat recovery is a mature and reliable form of energy
conservation. AE&E has designed and successfully implemented heat recovery projects in over
30 rural Alaska communities. The depth and breadth of AE&Es experience assures that this
project will be brought to a successful completion.
IPEC understands the potential risks associated with this project, but seeks to realize the benefit
of reduced diesel fuel consumption by utilizing the existing readily available heat recovery
source.
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.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 9 of 17 7/21/2010
Recovered heat is derived from diesel fuel that has already been purchased and consumed to
generate electricity. This project will result in a combined diesel fuel savings of 75,000 gallons
per year. Effective use of recovered waste heat is imperative to the efficient operation of a utility,
and leading factor in the long term sustainability of small rural electric utilities. It is essential to
first maximize use of recovered heat prior to looking to other renewable sources of heat, such as
biomass and wood. If available diesel engine heat is not put to beneficial use, it is “wasted” to the
atmosphere via radiators.
The City of Hoonah is also evaluating the implementation of a biomass project using locally
available wood fuel. Use of wood heat can be an economically viable substitute to diesel-fueled
space heat, especially in areas of rural Alaska where wood is plentiful and diesel is expensive.
However, the use of waste heat from a product already consumed (diesel) reduces the utility’s
carbon footprint and emissions of NOx and Particulate Matters -- to a much greater extent than
by introducing wood burning into the heating equation.
Should a biomass project be deemed feasible, IPEC will coordinate and work with the City of
Hoonah to effectively integrate a future wood biomass space heating project to maximize the
benefit to Hoonah.
The Alaska Energy Authority/Alaska Industrial Development and Export Authority Rural Alaska
Energy Plan (April 2004), and previously released Screening Report of Alaska Rural Energy Plan
(April 2001), evaluated a dozen alternative energy technologies. Diesel generation
efficiency/heat recovery, end-use efficiency, and wind energy were identified as alternative
energy technologies warranting further evaluation.
According to the Wind Energy Resource Atlas of the United States the community of Hoonah is
located within a class 3 wind regime and is not a viable candidate for a wind energy program
using currently available technologies. There are no other identified available energy sources;
such as solid fuel, natural gas, or geothermal that are currently viable at Hoonah.
Pros of Project:
Help fulfill IPEC’s long-term renewable energy initiatives.
Excellent project payback
Heat Recovery O&M costs are minimal
Reduced dependence on diesel fuel and potential for fuel spills
Reduced emissions and air pollution
Help stabilize electric rates
Produce jobs and help provide a sustainable economy for local people and businesses
Cons of Project:
Effective utilization of recovered heat may make a wood biomass heating project
infeasible
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.
Existing Diesel Power plant
The IPEC Hoonah power plant was built in 1977 and partially renovated after a fire in 1990.
Generation equipment consists of three diesel generator sets (gensets) with a total generation
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capacity of 2,465 kW. The generation system is a 4160-volt wye three-phase system. All
generators are equipped with KATO generators and operate at 1200 RPM.
• Unit #1 is a 1976 vintage CAT D398PC rated at 610 kW
• Unit #2 is a 1997 vintage CAT 3512 rated at 1,000 kW
• Unit #3 is a 1991 vintage CAT 3512 rated at 855 kW
Power is distributed throughout the community via 7.2/12.47 kVA overhead three-phase
distribution system. The power plant produces 14.25 kWh per gallon of diesel. The average cost
per gallon of diesel fuel during 2009 is $2.51 per gallon.
The May 2009 Concept Design Report includes recommendations and cost estimates for the
replacement of the existing diesel power plant, installation of generation heat recovery, and
minor upgrades to the existing distribution system. Refer to Appendix F – Technical Data for the
a description of the planned improvements.
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.
Fuel is delivered via barge to Hoonah year round and stored in bulk at the Hoonah Trading
Company (HTC) tank farm. Fuel is delivered by truck to IPEC daily and to local businesses and
residents as needed.
IPEC has recently received an RUS High Energy Cost Grant to replace their oldest diesel
generator with a new 3512C, to increase the plant’s reliability and efficiency.
The displacement of diesel heating fuel with recovered heat will reduce the total fuel throughout
the Hoonah Trading Company (HTC) fuel terminal. Although this project will result in reduced
fuel sales for HTC, the net benefit realized by this project will benefit the entire community.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
The combined heating fuel consumption of the Hoonah City Schools Complex, Clinic, Fire Hall,
Senior Center and Senior Apartments is 60,000 gallons/year.
IPEC currently consumes about 350,000-gallons of diesel fuel annually to generate about
5,000,000 kWh/year, at an average annual efficiency of 14.1 kWh/gallon. Installation of fuel
efficient electronically controlled gensets is estimated to improve the fuel efficiency to 15
kWh/gallon, which will reduce fuel consumption for power generation by about 21,000-
gallons/year.
Using jacket water heat recovery, the IPEC power plant has the capacity to provide the
equivalent of about 57,000-gallons of recovered heat annually for use as space heat to the
above facilities. This equates to roughly 95% of the space heating needs of these facilities. The
combined fuel savings due to the improved fuel efficiency of the power plant and recovered heat
is more than 75,000 gallons of diesel fuel annually.
At a fuel price of $3.00/gallon the combined savings equate to $225,000 annually. With
increasing global demand for diesel fuel and dwindling supplies, the long term outlook is for
higher diesel fuel prices – which will further increase project savings.
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Grant Application Round IV
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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
An assessment was made of the capital, operating and maintenance costs, as well as fuel
efficiency and available heat, for various sized gensets of different manufacturers in comparison
with the existing IPEC generation equipment. The evaluation revealed that a CAT 3456, rated at
476 kW prime, has the best fuel efficiency and provides the lowest overall lifecycle cost.
The average electric load of Hoonah is 325 kW, so the expected capacity factor will be in excess
of 70% utilization. Annual delivered heat from the jacket water is the equivalent of 57,000 gallons
of diesel fuel. There are no anticipated barriers, other than available funding. The heat will be
distributed via underground preinsulated arctic pipe routed within road rights-of-ways and
existing utility easements.
Refer to Appendix F for Technical Data.
4.3.2 Land Ownership
Identify potential land ownership issues, including whether site owners have agreed to the
project or how you intend to approach land ownership and access issues.
The power plant is located on property owned by the City of Hoonah and leased to IPEC. The
end-user properties are believed to be owned by the respective end-users. The arctic piping will
be routed mostly within existing road rights-of-ways and utility easements.
Each end-user will enter into a heat sales agreement with IPEC prior to construction. The heat
sales agreement defines the terms and cost of service, as well as provides right-of-access for
IPEC to construct and operate the heat recovery system.
Outstanding site control issues will be investigated and resolved prior to construction.
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
Required construction permits include:
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• Fire Marshal Review (RPSU & Heat Recovery)
• City of Hoonah Building permit
It is anticipated that these permits will be in hand no later than Spring 2011.
Refer to Section 4.3.4 for NEPA related project permit requirements.
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
Environmental Considerations
There are no listed Threatened or Endangered species known within the project area.
There are no known archaeological or historic resources in the immediate area of the proposed
project. Telecommunications, aviation, and visual impacts are not anticipated.
AE&E has provided NEPA project level environmental permitting on over 40 energy related
projects throughout Alaska during the past 15 years. Our understanding of the NEPA process
and potential environmental impacts of our projects allows us to mitigate possible negative
affects early in the design stage. Environmental permitting for the heat recovery project is
anticipated to be completed by December 2010.
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
The cost information provided in this application is based on AE&E’s 15-years of successfully
designing and constructing energy related projects throughout Alaska. Our construction
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 13 of 17 7/21/2010
management experience keeps us current on ever increasing construction costs.
There is no development cost associated with heat recovery as it is a mature, commercially
available technology. Detailed estimated project costs are included in Appendix F.
Requested Grant Funding, Phase IV Construction: $475,000
Applicant Matching Funds: $530,000
$530,000 has been secured from the Denali Commission for this heat recovery project, as part of
the RPSU Upgrade project, and will be used as Match for Final Design, Permitting and
Construction.
Project Capital Costs: $1,005,000
4.4.2 Project Operating and Maintenance Costs
Include anticipated O&M costs for new facilities constructed and how these would be funded by
the applicant.
(Note: Operational costs are not eligible for grant funds however grantees are required to meet
ongoing reporting requirements for the purpose of reporting impacts of projects on the
communities they serve.)
The operating and maintenance costs for a heat recovery system are relatively minimal. The only
moving parts associated with the district heating system are the circulating pumps.
Due to power plant cooling system improvements that will be implemented as part of this heat
recovery project, there will be a decrease in power plant pumping energy, which will result in a
net reduction in station service electric consumption.
This Application does not include a request for funding for Operating and Maintenance Costs.
IPEC will be the owner of the heat recovery system. IPEC is a sustainable electric utility that is
economically regulated by the Regulatory Commission of Alaska. IPEC will use its utility staff
and assets to maintain, operate, and sustain the heat recovery system.
A Business Operating Plan is currently being developed to accurately quantify operating and
maintenance, and renewal and replacement costs for the new power plant and heat recovery
facilities.
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
IPEC is the certificated electric utility for Hoonah and will also be the project grantee and
operator; therefore, a power purchase agreement is not required.
IPEC will secure Heat Sales agreements with each end-user prior to start of construction. The
targeted recipients of the recovered heat include the Hoonah City Schools and City facilities.
Anticipated cost for recovered heat is between 50% and 70% of avoided fuel cost.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 14 of 17 7/21/2010
4.4.4 Project Cost Worksheet
Complete the cost worksheet form, which provides summary information that will be considered
in evaluating the project.
Download the form, complete it, and submit it as an attachment. Document any conditions or
sources your numbers are based on here.
Refer to attached Cost Worksheet and cost estimate in Appendix B.
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
Potential Fuel Displacement
The estimated annual fuel displacement from the heat recovery project is 57 ,000 gallons/year.
This equates to approximately 1.7-millions gallons over a thirty-year anticipated useful life of the
project.
Anticipated Annual revenue
The estimated revenue to IPEC based on 50% of the avoided fuel cost to the end-users, based
on a retail fuel cost of $3.00/gallon, is $85,500/year. IPEC is economically regulated by the
Regulatory Commission of Alaska. As such, electric rates and revenue charges are subject to
the RCA review and approval.
Potential additional annual incentives and revenue streams:
Unknown at this time
Non-economic Public Benefits to Alaskans
Help fulfill IPECs long-term renewable energy initiatives.
Utilize an existing available energy resource
Demonstrate IPEC commitment to efficiently utilizing existing energy resources
Reduced dependence on diesel fuel and potential for fuel spills
Reduced emissions and air pollution
There are no known tax credits or other subsidies for a project of this type.
Non-economic benefits to Alaskans include the reduction in diesel exhaust emissions realized by
burning 1.7-million gallons less of diesel fuel over a thirty-year period, as well as the improved
sustainability of the IPEC Utility.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 15 of 17 7/21/2010
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
IPEC will own and operate the heat recovery facility. IPEC owns, operates, and maintains electric
utilities in five small rural communities, several of which utilize generation heat recovery. As a
member owned cooperative, IPEC is a non-profit entity focused on delivering reliable, low cost
electric energy.
The Project will operate at the same level of detail and consistency as all IPEC power plant
operations. As discussed in Section 4.4.2, a Business Operating Plan will be prepared for the
project that identifies long term operations and maintenance, as well as renewable and
replacement costs for the useful life of the project.
IPEC has a proven record of operating and maintaining sound power plant operations and electric
distribution systems.
IPEC will commit to monitoring and reporting the Project savings and benefits as required by the
REF grant funding, and to demonstrate the viability of this renewable project.
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.
IPEC has consulted with the Alaska Energy Authority and AE&E to further refine the project
elements and identify the steps needed to move project development forward.
Activities accomplished to date:
A Concept Design Report for the proposed Project identifying the scope and estimated
cost has been completed
Site control issues investigated and identified
Generation equipment optimized and selected for improved heat recovery
An as-built survey of the project site has been completed
Design drawings have been advanced to 65%
A draft Heat Sales agreement ahs been developed
Subject to available funding, this project will be ready to advance to construction beginning in fall
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 16 of 17 7/21/2010
2011.
SECTION 8– LOCAL SUPORT
Discuss what local support or possible opposition there may be regarding your project. Include
letters of support from the community that would benefit from this project.
The City of Hoonah and Hoonah City Schools supports the development of recovered heat in
Hoonah. IPEC has worked cooperatively with the City to further refine and define this Project.
The community of Hoonah is eager to develop an available energy resource that will reduce
dependency on diesel fuel, and help reduce and stabilize long term electric rates.
Refer to letters of support from the City of Hoonah and Hoonah City Schools District included in
Appendix E.
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 – GrantBudget3.doc
Total estimated project cost for the heat recovery project is $1,005,000.
The grant request for Phase IV is $475,000.
IPEC will provide match in the amount of $530,000 from a Denali Commission Grant for
construction of the RPSU and heat recovery project.
Refer to Grant Budget worksheet in Appendix C
APPENDIX A
PROJECT RESUMES
Peter A. Bibb, IPEC
Brian C. Gray, AE&E
Steven J. Stassel, AE&E
John T. Dickerson, AE&E
APPENDIX B
COST 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. 57,000-gallons/year
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
2. Existing Energy Generation and Usage
a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank)
i. Number of generators/boilers/other 3 gensets
ii. Rated capacity of generators/boilers/other 610 Kw, 855 Kw, 1000 Kw
iii. Generator/boilers/other type CAT 398, CAT 3512, CAT 3512B
iv. Age of generators/boilers/other 32, 18, 12 years
v. Efficiency of generators/boilers/other 14.1 kWh/gallon
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $98,825
ii. Annual O&M cost for non-labor $1,085,066
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] 4,916,496 (avg FY08&09)
ii. Fuel usage
Diesel [gal] 352,026 (avg FY08&09)
Other
iii. Peak Load 900 Kw
iv. Average Load 567 Kw
v. Minimum Load 450+/- Kw
vi. Efficiency 14.1 kwh per gallon of diesel consumed
vii. Future trends Improved fuel efficiency to 15 kWh/gallon
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] n/a
ii. Electricity [kWh] n/a
iii. Propane [gal or MMBtu] n/a
iv. Coal [tons or MMBtu] n/a
v. Wood [cords, green tons, dry tons] n/a
vi. Other n/a
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]
N/A
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh]
ii. Heat [MMBtu] 107,000-gallon – Available Recovered Heat
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 $1,005,000
b) Development cost N/A
c) Annual O&M cost of new system Net Reduction – Will be defined in Business Plan
d) Annual fuel cost N/A
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity
ii. Heat 57,000-gallon – Heat Recovery
iii. Transportation
b) Current price of displaced fuel $3.00/gallon (average)
c) Other economic benefits rate stabilization, lower operating (heating) costs
d) Alaska public benefits reduce CO2 emissions, reduced chance of fuel spills
6. Power Purchase/Sales Price
a) Price for power purchase/sale 50% to 70% of avoided fuel cost
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio Not calculated
Payback (years) Approx. 6-years with fuel at $3.00/gallon
APPENDIX C
GRANT BUDGET
Renewable Energy Fund Grant Round IV Grant Budget Form 7-21-10 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 (List milestones based on phase and type of project. See Attached Milestone list. ) $ $ $ Phase IV Construction (All Milestones) Summer 2012 $475,000 $530,000 DC Funds $1,005,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ Budget Categories: Direct Labor & Benefits $--------- $154,200 $154,200 Travel & Per Diem $--------- $10,000 $10,000 Equipment $--------- $-------- $--------- Materials & Supplies $459,500 $-------- $459,500 Contractual Services $--------- $100,000 $100,000 Construction Services $--------- $120,000 $120,000 Other $15,500 $145,800 $161,300 TOTALS $475,000 $530,000 $1,005,000 Applications should include a separate worksheet for each project phase (Reconnaissance, Feasibility, Design and Permitting, and Construction)- Add additional pages as needed
ALASKA ENERGY ANDENGINEERINGHOONAH ENERGY PROJECTSDIESEL POWER PLANT COST ESTIMATE SUMMARY MAY 29, 2009CONCEPT DESIGN REPORTPOWER GENERATION UPGRADES $1,776,800MISCELLANEOUS $15,400OVERHEAD $146,858FREIGHT $95,880CONSTRUCTION SUB-TOTAL $2,034,938DESIGN AND CONSTRUCTION ADMIN. $200,000CONSTRUCTION MANAGEMENT $200,000PROJECT SUB-TOTAL $2,434,938CONTINGENCY $365,241 15 %TOTAL PROJECT COST (ROUNDED) $2,800,000TOTAL INSTALLED KW CAPACITY3,100 kWCOST PER KW OF INSTALLED CAPACITY $903B-1
ALASKA ENERGY ANDENGINEERINGHOONAH ENERGY PROJECTSDIESEL HEAT RECOVERY SYSTEM COST ESTIMATE SUMMARY MAY 29, 2009CONCEPT DESIGN REPORTHEAT RECOVERY SYSTEM $494,200MISCELLANEOUS $101,900OVERHEAD $89,723FREIGHT $21,340CONSTRUCTION SUB-TOTAL $707,163DESIGN AND CONSTRUCTION ADMIN. $40,000CONSTRUCTION MANAGEMENT $40,000PROJECT SUB-TOTAL $787,163CONTINGENCY $118,074 15 %TOTAL PROJECT COST (ROUNDED) $905,000B-4
ALASKA ENERGY ANDENGINEERINGHOONAH ENERGY PROJECTSDIESEL HEAT RECOVERY SYSTEM COST ESTIMATEMAY 29, 2009CONCEPT DESIGN REPORTITEM QUAN UNIT UNIT MATLUNIT LAB LAB LABORCONTRFREIGHT TOTALUNIT TOTAL COST COST HRS HRS RATE COST COST COST COST WT WT(#)HEAT RECOVERY SYSTEMArctic Pipe & Fittings 6,500 ft. $45 $292,500 0.20 1300 $80 $104,000 $396,500 10 65,000PP Expansion Tank 1 lump $3,000 $3,000 10 10 $80 $800 $3,800 600 600PP Heat Exchanger 1 ea. $15,000 $15,000 80 80 $80 $6,400 $21,400 5,000 5,000PP HR Pumps, Piping & Devices 1 lump $15,000 $15,000 40 40 $80 $3,200 $18,200 800 800PP BTU Meter 1 ea. $4,500 $4,500 10 10 $80 $800 $5,300 100 100Secondary HX's, Piping & Devices 5 ea. $5,000 $25,000 60 300 $80 $24,000 $49,000 100 500MISCELLANEOUSContract Repair & Repave Roads 1 lump $0 $0 0 0 $80 $0 $75,000 $75,000 0 0Signs & Valve Tags 1 lump $2,000 $2,000 30 30 $80 $2,400 $4,400 100 100Misc Hardware 1 lump $5,000 $5,000 0 0 $80 $0 $5,000 500 500Misc Tools & Safety Gear 1 lump $7,500 $7,500 0 0 $80 $0 $7,500 500 500Welding Rod, Gases, Etc. 1 lump $10,000 $10,000 0 0 $80 $0 $10,000 2500 2500OVERHEADAudit Grants 1 lump $6,000 $6,000ROW Legal Work 1 lump $5,000 $5,000 0Construction Insurance 1 lump $1,513 $1,513 0CM Prof. Liability Insurance 1 lump $4,450 $4,450 0Heavy Equip Rent 1 lump $20,000 $20,000 0Skid Steer Rent 2 mo. $4,000 $4,000 0Pickup Rent 2 mo. $1,200 $1,200 0Welder/Compr/Misc Tool Rent 1 lump $20,000 $20,000 0Project Diesel Fuel/Gasoline 1 lump $5,000 $5,000 0Commission/Train Operators 20 hr 1 20 $90 $1,800 $1,800Superintendent Overhd Off-Site 40 hr 1 40 $90 $3,600 $3,600Superintendent Overhd On-Site 40 hr 1 40 $90 $3,600 $3,600Crew Travel Time 40 hr 1 40 $90 $3,600 $3,600Crew Airfares 4 trips $3,600 $3,600Crew Per Diem 80 mn.dy $3,360 $3,360Housing Rent 2 mo. $3,000 $3,000B-5
ALASKA ENERGY ANDENGINEERINGHOONAH ENERGY PROJECTSDIESEL HEAT RECOVERY SYSTEM COST ESTIMATEMAY 29, 2009CONCEPT DESIGN REPORTITEM QUAN UNIT UNIT MATLUNIT LAB LAB LABORCONTRFREIGHT TOTALUNIT TOTAL COST COST HRS HRS RATE COST COST COST COST WT WT(#)FREIGHT75,600Barge Freight Seattle-Hoonah 75600 lb. $0.15 $11,340 $11,340Misc Small Freight & Gold Streaks 1 lump $10,000 $10,000 $10,000CONSTRUCTION SUB-TOTAL $379,500 1,910 $154,200 $152,123 $21,340 $707,163Engineering (Design & CCA) 1 lump $40,000 $40,000Construction Management 1 lump $40,000 $40,000PROJECT SUB-TOTAL $379,500 $154,200 $232,123 $21,340 $787,163Contingency15 %$118,074TOTAL PROJECT COST$905,237B-6
ALASKA ENERGY ANDENGINEERINGHOONAH ENERGY PROJECTSEXCESS HYDRO ENERGY RECOVERY SYSTEM COST ESTIMATE SUMMARY MAY 29, 2009CONCEPT DESIGN REPORTELECTRIC BOILERS, EQUIPMENT & INSTALLATION $45,000CONTROLS $15,000OVERHEAD $5,000FREIGHT $2,000CONSTRUCTION SUB-TOTAL $67,000DESIGN AND CONSTRUCTION ADMIN. $10,000CONSTRUCTION MANAGEMENT $10,000PROJECT SUB-TOTAL $87,000CONTINGENCY $13,050 15 %TOTAL PROJECT COST (ROUNDED) $100,000Notes: 1. Assumes 2012 construction B-10
APPENDIX D
ELECTRONIC COPY OF APPLICATION
(REFER TO ENCLOSED DISC)
APPENDIX E
RESOLUTION & SUPPORTING LETTERS
Grant Documents Authorized Signers
Inside Passage Electric Cooperative (IPEC) Authorizing Resolution
City of Hoonah letter of support
Hoonah City School District letter of support
PEe
INSIDE:PASSAGE:E:leCTRIC COOPE:RATIVE:
Resolution 2008-8
Inside Passage Electric Coopcrative Inc.
September 12,2008
ENTITLED:2008-8 AUTHORIZING THE CEO/GENERAL MANAGER TO
APPLY FOR GRANT FUNDING UNDER THE RENEWABLE
ENERGY FUND AND ENDORSING THE APPLlCATlON OF SAID
FUNDING UNDER RFA AEA-09-004
WHEREAS,Alaska Statute AS 42.45.045 established the Renewable Energy Gram
Recommendation Program;and
WHEREAS,under this program,the Alaska Energy Authority (AEA)is soliciting
competitive applications from qualified applicants in order to make recommendations to the
Alaska State Legislature for funding of renewable energy projects;
NOW THEREFORE BE IT RESOLVED THAT,the Board of Commissioners of
Inside Passage Electric Cooperative,Incorporated hereby authorizes this application for project
funding at the match amounts as indicated in the application;and authorizes Jodi Mitchell the
CEO/General Manager to serve as the point of contact to represent the applicant for purposes of
the grant application;and states that Inside Passage Electric Cooperative is compliant with all
federal,state,and local laws including existing credit and federal tax obligations.
PASSED,APPROVED AND ADOPTED by a vote of ~Yeas,.e--Nays and
.f)'Absent this 12th day of September,2008.
ATTEST:
ilbur Brown,Secretary/Treasurer
P.O.Box 210149 Auke Bay,Aldska 99821 (907)789-3196 fax (907)790-8517
APPENDIX F
TECHNICAL DATA
Concept Design Report (CDR) Hoonah Energy Projects: Selected
Data
CONCEPT DESIGN REPORT AND
CONSTRUCTION COST ESTIMATE
FOR ENERGY PROJECTS
IN THE COMMUNITY OF:
HOONAH
PREPARED FOR:
STATE OF ALASKA
ALASKA ENERGY AUTHORITY/
RURAL ENERGY GROUP
PREPARED BY:
Alaska Energy and Engineering, Inc.
Mailing Address - P.O. Box 111405
Anchorage, AK 99511-1405
(907) 349-0100
349-8001 FAX
May 29, 2009
Hoonah Energy Projects May 29, 2009
Concept Design Report Alaska Energy and Engineering
i
EXECUTIVE SUMMARY
This report has been prepared by Alaska Energy and Engineering, Inc. (AE&E)
for the Alaska Energy Authority / Rural Energy Group (AEA/REG). The purpose
of this study is to provide a concept design and construction cost estimate for the
following potential local energy projects for the community of Hoonah:
• Diesel Power Plant Replacement.
• Three Potential Hydroelectric Generation Projects.
• Diesel Generation Heat Recovery System.
• Excess Hydroelectric Energy Recovery
Participants in the project include the City of Hoonah and the Inside Passage
Electric Cooperative (IPEC).
On Thursday October 19 and 20, 2006, David Lockard of the Alaska Energy
Authority / Rural Energy Group (AEA/REG) and John Dickerson of Alaska
Energy and Engineering (AE&E) traveled to Hoonah. The purpose of this site
visit was to meet with local officials as well as representatives of local and
regional organizations to identify and discuss potential energy infrastructure
projects within the community as well as to gather reconnaissance level
information for preparation of a Conceptual Design Report (CDR) for any
identified energy infrastructure projects.
The IPEC (originally THREA) power plant was constructed in 1977 and was
partially renovated after a fire in 1990. Existing generator No. 1 is an antiquated
Caterpillar model 398. Generators No. 2 and 3 are Caterpillar model 3512's with
approximately 75,000 total hours each. The interior walls are covered with
painted plywood up to a height of 8' with vinyl-encased fiberglass batt insulation
exposed above the plywood and across the ceiling. The exterior metal siding is
in fair condition but the exterior paint is in very poor condition and is peeling
badly. The area around the plant is poorly drained and the plant is prone to
flooding, especially during spring breakup.
A new power plant is proposed to be constructed on a raised gravel pad next to
the existing power plant. The new power plant will include two new generators,
one existing low-hour generator, one existing high-hour generator in good
condition (3,100kW total), state of the art automatic start/stop/paralleling
switchgear, remote radiators with variable speed control, a fire suppression
system, critical grade exhaust silencers and all required engine coolant piping
and ventilation equipment.
Three potential hydroelectric generation facilities are identified, one on Gartina
Creek, one on Water Supply Creek as well as one that is located on both Gartina
Creek and Water Supply Creeks (Combined G&WS Hydro). The proposed site
locations are all in close proximity to each other and are all located within four
miles of the community of Hoonah on or near existing gravel logging roads.
Each proposed hydroelectric facility includes: diversion structure(s); penstock(s);
hydroelectric power house(s); programmable automatic start/stop/paralleling
switchgear; approximately four miles of 12.5kV three-phase overhead
transmission line with fiber optic communication cable; and access roads to the
power house(s) and diversion structure(s).
The proposed generation heat recovery project would deliver recovered
generation heat to the swimming pool/gymnasium, school classroom building,
fire hall, senior center, senior apartments, and clinic, offsetting as much as
57,000 gallons of space heating diesel fuel annually. The project would include
a total of approximately 6,500 feet of buried 4” diameter arctic pipe as well as
heat exchangers, pumps and associated equipment located in the power plant
and the six identified community buildings.
Hoonah Energy Projects May 29, 2009
Concept Design Report Alaska Energy and Engineering
ii
The proposed excess hydroelectric energy recovery system would capture
otherwise wasted hydroelectric potential by using an electric boiler to add heat to
the diesel heat recovery system during times when excess hydroelectric potential
is available.
The proposed power plant and heat recovery system project schedule calls for
design and permitting to be completed by November 2009 and for construction to
occur between April and November 2010, with the new power plant fully
functional by December 2010.
The proposed hydroelectric facility and transmission line project schedule calls
for design and permitting to be completed by July 2011 and for construction to
occur between March and November 2012, with the hydroelectric facility fully
functional by December 2012.
Separate cost estimates have been prepared for the Power Plant Replacement
and Diesel Generation Heat Recovery System as well as each of the three
potential Hydroelectric Generation projects and the Excess Hydroelectric Energy
Recovery System. The estimated total project cost including all design,
supervision, inspection, permitting, with a 15% to 25% contingency for each
component is:
• $2,791,000 Power Plant Replacement (3,100kW @ $900/kW)
• $905,000 Generation Heat Recovery System
• $4,710,000 Gartina Creek Hydroelectric Project (600kW)
• $4,078,000 Water Supply Creek Hydroelectric Project (600kW)
• $8,645,000 Combined G&WS Hydroelectric Project (1,300kW)
• $100,000 Excess Hydroelectric Energy Recovery System
The following table summarizes the avoided fuel costs and simple payback
periods for the potential hydroelectric projects with and without energy recovery:
AVOIDED FUEL COST & SIMPLE PAY BACK OF POTENTIAL PROJECTS
Project Project
Cost
Annual
Avoided
Fuel,
Gallons
Annual
Value of
Avoided
Fuel,
$/Year (1)
Simple
Pay
Back
Period
Fuel
Cost
Avoided
Over 30
Years
Excess Hydro ER $.10M 12,500 $62,000 1.6 yrs $1.88M
Diesel HR $.91M 57,000 $285,000 3.2 yrs $8.55M
Gartina Hydro $4.71M 130,000 $650,000 7.3 yrs $19.5M
Gartina Hydro w/
Diesel HR $5.61M 176,000 $881,000 6.4 yrs $26.4M
Water Supply
Hydro $4.08M 134,000 $670,000 6.1 yrs $20.1M
Water Supply
Hydro w/ Diesel HR $4.98M 180,000 $900,000 5.5 yrs $27.0M
Combined Hydro $8.65M 215,000 $1,075,000 8.0 yrs $32.2M
Combined Hydro w/
Diesel HR &
Excess Hydro ER
$9.65M 257,000 $1,285,000 7.5 yrs $38.5M
1) Assume a future fuel cost of $5.00/Gallon
Hoonah Energy Projects May 29, 2009
Concept Design Report Alaska Energy and Engineering
iii
INDEX
Executive Summary......................................................................................Page i
Index .........................................................................................................Page iii
Acronyms and Abbreviations .......................................................................Page v
1.0 Introduction .......................................................................................... Page 1
1.1 Program Overview.........................................................................Page 1
1.2 Community Description ................................................................. Page 2
1.3 Site Investigation ........................................................................... Page 3
1.4 Code Analysis & Deficiencies ........................................................ Page 3
2.0 Existing Facilities..................................................................................Page 4
2.1 Power Plant................................................................................... Page 4
2.2 Power Distribution .........................................................................Page 5
3.0 Community Power Demand ................................................................. Page 5
3.1 Estimated Future Load Growth ...................................................... Page 5
3.2 Alternative Energy/Efficiency Improvements .................................Page 5
4.0 Proposed Energy Infrastructure Project Descriptions...........................Page 6
4.1 Diesel Power Plant Replacement .................................................. Page 6
4.1.1 Generator Selection ................................................................ Page 7
4.1.2 Switchgear & SCADA .............................................................. Page 8
4.1.3 Power Plant Fuel System ........................................................ Page 9
4.2 Three Potential Hydroelectric Projects ..........................................Page 9
4.2.1 Gartina Creek.........................................................................Page 10
4.2.2 Water Supply Creek...............................................................Page 11
4.2.3 Combined Gartina and Water Supply .....................................Page 11
4.2.4 Hydroelectric Power Utilization ...............................................Page 12
4.2.5 Permitting...............................................................................Page 12
4.3 Heat Recovery System.................................................................Page 14
5.0 Site Selection & Control ......................................................................Page 15
5.1 Power Plant Site...........................................................................Page 15
5.2 Hydroelectric Project Area ............................................................Page 15
5.3 Hydroelectric Intertie Route ..........................................................Page 15
5.4 Heat Recovery Pipeline Route ......................................................Page 16
5.5 Site Control ...................................................................................Page 16
6.0 Permitting and Spill Response ............................................................Page 16
6.1 Environmental Assessment..........................................................Page 16
6.2 Fire Code......................................................................................Page 17
6.3 Spill Response..............................................................................Page 17
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6.4 Air Quality Permit..........................................................................Page 17
6.5 Hydroelectric Project Permitting ...................................................Page 17
7.0 Construction Plan................................................................................Page 18
7.1 Local Job Skills .............................................................................Page 19
7.2 Local Equipment...........................................................................Page 19
7.3 Material Sources...........................................................................Page 19
8.0 Schedule .............................................................................................Page 19
8.1 Power Plant Replacement & Heat Recovery System Schedule ..Page 20
8.2 Hydroelectric Project Schedule.....................................................Page 20
9.0 Cost Estimate......................................................................................Page 20
Concept Design Drawings.....................................................................Appendix A
Construction Cost Estimates.................................................................Appendix B
Site Control Documents ......................................................................Appendix C
Electrical Load Data............................................................................. Appendix D
2007 Hydroelectric Analysis and Revised Cost Estimate
by HDR Inc............................................................................................Appendix E
2002 Reconnaissance of Three Potential Hydro Sites
Near Hoonah by HydroWest Group LLC ...............................................Appendix F
Supplement to June 2002 Hydroelectric Study By AP&T.....................Appendix G
Hoonah Energy Recovery Worksheet and Graphs.............................. Appendix H
Community Correspondence .................................................................Appendix I
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ACRONYMS AND ABBREVIATIONS
ADCCED AK Department of Commerce, Community and Econ. Development
ADEC Alaska Department of Environmental Conservation
AEA/REG Alaska Energy Authority/Rural Energy Group
AIDEA Alaska Industrial Development and Export Authority
CDR Conceptual Design Report
COE U. S. Army Corps of Engineers
DC Denali Commission
DOT (Alaska) Department of Transportation and Public Facilities
EPA U.S. Environmental Protection Agency
F Degrees Fahrenheit
FERC Federal Energy Regulatory Commission
GPM Gallons Per Minute
HUD Housing and Urban Development
IBC International Building Code
ICDBG Indian Community Development Block Grant
IFC International Fire Code
NEC National Electric Code
NFPA National Fire Protection Association
NFS Non-frost susceptible
RPSU Rural Power System Upgrade
SHPO State Historic Preservation office
SPCC Spill Prevention Control and Countermeasures
USCG United States Coast Guard
USCOE United States Army Corps of Engineers
USS United States Survey
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1.0 INTRODUCTION
This report has been prepared by Alaska Energy and Engineering, Inc. (AE&E)
for the Alaska Energy Authority / Rural Energy Group (AEA/REG). The purpose
of this study is to provide a concept design and construction cost estimate for the
following potential local energy projects for the community of Hoonah:
• Diesel power plant replacement.
• Four potential hydroelectric generation projects.
• Generation heat recovery system.
Participants in the project include the City of Hoonah and the Inside Passage
Electric Cooperative (IPEC).
1.1 Program Overview
The Alaska Energy Authority (AEA), Rural Energy Group is pursuing grant funds
to upgrade rural bulk fuel tank farms and electric power systems. All project
components are dependent on available funding. Following is a brief outline of
the program:
• Most of the funds are federal and provided through the Denali Commission
(DC). Other federal funding may be available from HUD (ICDBG) and the
Environmental Protection Agency (EPA). Additional funds may be available
from the State of Alaska, USDA, and loan financing.
• In order to receive grant funds, each community must demonstrate that the
proposed facility will be sustainable by accepting a business plan. The
business plan shall describe who will own the facility, and how it will be
operated, maintained and replaced.
• New energy projects are funded, designed, and constructed in three phases:
Phase 1, Conceptual Design; Phase 2, Design Completion; and Phase 3,
Construction.
• During Phase 1, Conceptual Design, staff from AEA will visit a community,
discuss the program, and work with residents and the local government to
select sites for the new facilities.
• At the completion of Phase 1 Conceptual Design, the community will be
requested to review and approve the location, capacity, and basic
configuration of the facilities as well as a draft business plan.
• During Phase 2, Design Completion, the design for the new energy projects
will be completed. An environmental assessment will be prepared and site
control documented. A business plan will be prepared for signing.
• Each community will be requested to provide “in kind” contributions as
available.
• Project may include local hire and construction trade training programs,
subject to Denali Commission funding.
• If the Denali Commission approves the business plan it will be circulated for
signature and construction procurement will start.
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• Ineligible Projects: Funding is not available through AEA for buildings,
propane facilities, fuel tank trucks or trailers, fuel to fill the tank farm,
operation & maintenance costs, or residential tank upgrades. Loans for fuel
tank trucks and trailers may be available through USDA.
• Training Available: AEA has several training programs available for
communities.
1.2 Community Description
Hoonah is located on the northeast coast of Chichagof Island, 40 air miles west
of Juneau. It lies at approximately 58.11° North Latitude and -135.44° West
Longitude. (Sec. 28, T043S, R061E, Copper River Meridian.) The area
encompasses 6.6 sq. miles of land and 2.1 sq. miles of water. Hoonah's
maritime climate is characterized by cool summers and mild winters. Summer
temperatures average 52 to 63; winter temperatures average from 26 to 39.
Temperature extremes have been recorded from -25 to 87. Annual precipitation
averages 100 inches, with 71 inches of snowfall. The population was estimated
at 861 residents in 2005. Local governments include a first class city and an IRA
council. Hoonah is located in the Sitka Recording District, the Hoonah City
School District, and the Sealaska Regional Native Corporation but is not within
an organized borough.
LOCATION MAP
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1.3 Site Investigation
On Thursday October 19 and 20, 2006, David Lockard of the Alaska Energy
Authority / Rural Energy Group (AEA/REG) and John Dickerson of Alaska
Energy and Engineering (AE&E) traveled to Hoonah. The purpose of this site
visit was to meet with local officials as well as representatives of local and
regional organizations to identify and discuss potential energy infrastructure
projects within the community as well as to gather reconnaissance level
information for preparation of a Conceptual Design Report (CDR) for any
identified energy infrastructure projects.
In addition to the field investigations, available information was obtained and
analyzed from the following sources:
• Gartina Creek Project Reconnaissance Report, Harza Engineering, 1979
• Concept Review Report, Gartina Creek Hydroelectric Project, HDR, 1998
• Reconnaissance of Three Potential Hydroelectric Sites Near Hoonah Alaska,
Hydro West Group, LLC, 2002
• Gartina Creek Hydrology & Power spreadsheet, AP&T, 2002
• Comprehensive Renewable Energy Feasibility Study for Sealaska
Corporation, Springtyme Company, LLC, 2005
• Hoonah Power Cost Equalization (PCE) fuel use data, FY2005-2007
• Hoonah Power Plant SCADA system data, IPEC, 2005-2007
• AEA Rural Utility Circuit Rider Field Trip Report
• Other relevant data.
Additional information and input was obtained from the following individuals:
• Windy Skaflestad, Mayor, City of Hoonah 945-3633
• David Richards, Administrator, City of Hoonah 945-3663
• Jan Supler, Vice President Retail Operations, Wards Cove (206) 323-3200
• Steve Brown, General Manager, Hoonah Trading 945-3211
• Tim McLeod, General Manager, AEL&P 463-6317
• Corry Hildenbrand, Energy Resource Developer, AEL&P 463-6317
• Jody Mitchell, General Manager, IPEC 789-3196
• Keith Berggren, Generation Manager, IPEC 789-3196
• Peter Bibb, Distribution Manager, IPEC 789-3196
• Bob Butera, P.E., HDR 644-2000
• Larry Coupe, P.E., AP&T (360) 385-1733
1.4 Code Analysis & Deficiencies
The following is a summary of existing power plant code analysis and
deficiencies observed during the site investigations.
• Poor site drainage at existing power plant building causing seasonal flooding.
• Antiquated / inefficient diesel genset #1 – expensive to maintain and operate.
• Extremely high hours on gensets #2 & #3 – due for replacement soon.
• Manual paralleling switchgear only.
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• Exposed interior vinyl-encased fiberglass batt insulation absorbs oil vapors, is
difficult to clean and is a potential fire hazard.
• No operational fire suppression system
• Power plant building previously incurred severe fire damage
The concept design for all energy projects have been prepared to meet current
code and regulatory requirements, which include:
• The 2006 Edition of the International Building Code (IBC).
• The 2006 Edition of the International Fire Code (IFC) and currently adopted
Alaska State Fire Marshal Fire and Safety Regulations.
• The 2006 Edition of the National Electrical Code (NEC).
• The 2006 Edition of the National Electrical Safety Code (NESC).
• 40 CFR, Part 112.1-12, U.S. Environmental Protection Agency Spill
Prevention Requirements
2.0 EXISTING FACILITIES
The existing power plant and electrical distribution system were visually
examined to determine suitability for re-use. The following paragraphs
summarize findings for the community.
2.1 Power Plant
The IPEC (originally THREA) power plant was constructed in 1977 and was
partially renovated after a fire in 1990. It is located on the eastern edge of town
at the intersection of Gartina Highway and White Alice Site Road. The building is
a 40'Wx100'L metal-sided, pre-engineered steel frame structure that houses
three generators, an office and a warehouse. The interior walls are covered with
painted plywood up to a height of 8' with vinyl-encased fiberglass batt insulation
exposed above and across the ceiling. The exterior metal siding is in fair
condition but the exterior paint is in very poor condition and is peeling badly. The
concrete foundation, steel frame members and horizontal steel girts appear to be
in fair condition. According to the operator, the finish grade around the plant
does not drain well and the plant is prone to flooding, especially during spring
breakup. Previous attempts at grading the site to improve drainage have been
thwarted by the shallow bedrock associated with the rock quarry bottom on which
the plant was built.
There are three Caterpillar generators currently installed in the power plant. Unit
#1 is a model 398 with a capacity of 600kW at 1,200RPM. The 398 is an
antiquated pre-combustion design with poor fuel economy and increasingly
difficult availability of parts. This unit is used for emergency backup only and is
slated for replacement. Unit #2 is a model 3512 with a prime capacity of
1,100kW at 1,200RPM. Unit #3 is a model 3512 with a prime capacity of 855kW
at 1,200RPM. Units #2 and #3 each have approximately 75,000 total engine
hours.
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Engine cooling is with three remote radiators located outside at the front of the
power plant. Each generator is on a stand-alone cooling system with one
radiator. There is currently no generation heat recovery equipment installed.
Station service is provided by a metered 480V three phase load center as well as
an un-metered 120/208V three phase load center. The 5kV manual paralleling
switchgear was installed new in 1990 after a fire in the power plant damaged the
existing switchgear and one of the generators. The switchgear includes a
section for each of the three generators and a feeder/station service section.
2.2 Power Distribution
Power generation is currently at 4160V 3-phase and distribution is at
7200/12.47kV 3-phase. There are two separate community feeders with a
750kVA bank of pole-mounted transformers feeding the community grid to the
east of the power plant and a 750kVA pad-mount step-up transformer feeding the
community grid to the west of the power plant. The transformers and main
community feeder pole are located within the fenced area adjacent to the power
plant. These transformers appear to be original equipment with visible surface
rust and are probably due for replacement. Overall, the community overhead
distribution system is in good condition and no other distribution deficiencies
were identified.
3.0 COMMUNITY POWER DEMAND
Power consumption data was obtained from the Power Cost Equalization (PCE)
program and from the IPEC SCADA system for fiscal years 2005 through 2007.
Graphs are included in Appendix D. During these years total annual generation
ranged between 5.1 and 5.5 million kWhrs with an average annual load of
between 607kW and 628kW. Annual fuel consumption averaged 366,000
gallons. According to the SCADA data daily peak demand in FY 2007 ranged
from a low of 832kW to a high of 920kW. Daily minimum (nighttime) loads in FY
2007 ranged between 340kW and 460kW. Monthly and peak data were not
available for FY 2008 from either source. According to available PCE data, total
annual generation for FY 2008 was 5.0 million kWhrs.
3.1 Estimated Future Load Growth
It is important to evaluate the impact of planned infrastructure improvement
projects on an existing power generation system. New construction and other
community improvements can adversely impact the adequacy of existing
facilities.
Steady growth in Hoonah's summer peak loads and annual generation are likely
over time due to expected increases in tourism, a planned new subdivision
development and possible increases in the local wood processing industry. It is
possible that annual generation requirements could grow to over 6,000,000kWH
and peak demand loads could reach 1,000kW within five years.
3.2 Alternative Energy / Efficiency Improvements
Careful sizing and selection of new generators with advanced technology in
conjunction with the installation of new fully automatic paralleling switchgear and
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a continuous off-line engine preheat system will maximize the fuel efficiency of
the new diesel power plant.
An analysis of four potential hydroelectric projects is included in Section 4.2.
Analysis of a potential energy recovery/district heating project is included in
Section 4.3.
Used motor oil from a variety of sources including the power plant is currently
used for space heating at the City shop building.
The Alaska Energy Authority/Alaska Industrial Development and Export Authority
published a draft Rural Alaska Energy Plan dated December 31, 2002 as a
follow-up report to the previously released Screening Report of Alaska Rural
Energy Plan dated April 2001. The Screening Report evaluated a dozen
alternative energy technologies other than diesel engine heat recovery. Only
wind energy was identified as alternative energy technology warranting further
evaluation in the draft Rural Alaska Energy Plan. According to the Wind Energy
Resource Atlas of the United States the community of Hoonah is located within a
class 3 wind regime and is not a viable candidate for a wind energy program
using currently available technologies.
There are no other known practical energy sources, such as solid fuel or natural
gas, currently available at Hoonah. At this time, it appears that supplemental
hydroelectric generation, generation heat recovery and possibly additional end-
use conservation are the only viable fuel-saving technologies available for
Hoonah.
4.0 PROPOSED ENERGY INFRASTRUCTURE PROJECT DESCRIPTIONS
The following proposed facility descriptions are separated into three sections:
• Section 4.1, "Diesel Power Plant Replacement" describes the proposed
construction of a new IPEC diesel power plant including a new building new
and refurbished generation equipment, switchgear, and controls.
• Section 4.2, "Potential Hydroelectric Projects", describes three potential local
hydroelectric projects located near Hoonah. It also describes a potential
excess hydroelectric energy recovery system.
• Section 4.3, "Diesel Generation Heat Recovery System", describes a potential
generation heat recovery project serving the school complex and other
community buildings.
4.1 Diesel Power Plant Replacement
Historically, the IPEC power plant has been the sole source of power generation
for Hoonah and it will likely continue to be the prime power source even if
hydroelectric or other alternative energy projects are developed.
Due to the age, condition and drainage issues of the existing building as well as
the total hours on the existing generators and equipment, the power plant should
be replaced. Keeping the existing plant on-line during construction of the new
plant will provide power to the community and will eliminate the project cost of
providing temporary power during construction. The new power plant building
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will be a pre-engineered metal building with concrete slab-on-grade foundation
co-located on the same lot and approximately 50 feet southwest of the existing
power plant. The operator’s room, switchgear room, and bathroom will be
located in the north end of the building. Radiators will be located on the west
side of the building beneath a covered area. An area site plan, power plant floor
plan and typical section are provided in Appendix A.
The following proposed items will modernize the power plant and the reliability,
fire prevention/protection, noise control, and operations of the electric utility:
• Provide new electronically controlled diesel-generating units.
• Provide new automatic paralleling switchgear and SCADA system with load
sharing/control capabilities for possible integration of hydroelectric generation.
• Provide critical grade silencers on all generators.
• Provide sound-insulated air intake and exhaust fan ducting.
• Provide new radiators with variable speed motor controls.
• Provide heat recovery / engine cooling system.
• Provide redundant generator cooling systems to enhance plant reliability.
• Provide fire suppression system.
• Provide sound insulated control room.
A new code compliant 12,000-gallon double wall day tank with overfill protection
was installed in 2007 and will be used at the new plant.
4.1.1 Generator Selection
IPEC was recently notified that the have been awarded an RUS grant of
approximately $735,000 for purchase of a new generator for the Hoonah power
plant. It is our recommendation to apply these funds to the installation of a new
Caterpillar 3512C generator. If funding is available for spring 2010 construction it
would be most cost effective to install this unit directly into the new IPEC Hoonah
power plant. These grant funds could be considered a like-kind contribution by
IPEC to the RPSU project.
Proper sizing and selection of the diesel generators is critical to meet the electric
loads while minimizing fuel consumption. To meet the anticipated future electric
demands and to optimize the use of future hydroelectric power (if constructed),
the new diesel power plant will be equipped with four diesel generators.
Based on the projected loads the following generating units have been selected:
• Unit No. 1: 550 kW, Caterpillar C18 Marine (new)
• Unit No. 2: 550 kW, Caterpillar C18 Marine (new)
• Unit No. 3: 1000 kW, Caterpillar 3512C (new RUS funded unit)
• Unit No. 4: 1000 kW, Caterpillar 3512 (best unit from old power plant)
Benefits of this new generator combination include:
• Provides adequate capacity to meet current and future peak loads.
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• Units #1 or #2 will operate efficiently for nighttime loads as well as operating
efficiently in parallel with potential future hydroelectric.
• Units #1 and #2 in parallel will meet present and near future peak loads.
• Units #1 and #2 produce recoverable heat due to wet manifolds.
• Units #2 or #3 are both capable of independently meeting the present and
near term peak load.
• Any combination of generators can be operated in parallel to meet high future
peak loads.
• Commonality of parts between units.
4.1.2 Switchgear & SCADA
The switchgear will be metal-clad switchgear with draw-out vacuum circuit
breakers consisting of six separate 36” wide sections. There will be one section
for each of the four generating units. The upper compartment will house the
generator controls and relays and the lower compartment will house the vacuum
breaker. There will be one separate section for the two feeders with the feeder
breakers “stacked”. There will also be one separate master section with the
master controls and metering.
The new switchgear will provide automatic paralleling and load control of the four
generating units. The load control system will monitor the electrical demand on
the generators and provide automatic selection of the most efficient generating
unit or combination of generating units to meet the demand. The switchgear will
automatically start the most suitable engine, bring it up to speed, automatically
synchronize the unit, and close the engine circuit breaker. When a unit is taken
off line, either for maintenance or due to a reduction in electric load, the
switchgear will automatically remove the unit from the bus and allow the engine
to cool down before shutdown. Generator controls and relaying will provide
complete protection and monitoring of each engine and generator.
The new switchgear controls and distribution connection will be designed for
incorporation and communication with any future alternative energy sources.
IPEC has recently standardized on a common utility supervisory control and data
acquisition (SCADA) system for all of its facilities. The new switchgear will
include the IPEC standard SCADA system for generation and distribution
monitoring. A desktop PC will be provided in the new plant operator’s office to
allow operator access and control of the different systems.
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4.1.3 Power Plant Fuel System
Based on historic fuel use and estimated future electric loads, it is proposed that
the power plant fuel storage system provide a nominal 7-day fuel supply based
on the following:
HOONAH POWER FUEL CONSUMPTION
Current Average Daily Use for Peak Month in Gallons (1) 1,200
Current Peak 7 Day Use in Gallons (1) 8,400
Approximate Net Usable Capacity of 12,000 Gallon Day Tank (2) 10,000
(1) From Hoonah Power FY07 PCE data – peak month August.
(2) 90% Maximum Fill, 12" Minimum Fuel Level.
The existing 12,000-gallon double wall day tank, piping and appurtenances,
installed new in summer 2007, will be reused for the new power plant. The day
tank is a shop built double wall, horizontal, welded steel tank built and labeled in
accordance with UL 142 and equipped with steel saddles and skids. The tank is
equipped to comply with EPA requirements for redundant overfill protection for
alternative secondary containment systems, and is equipped with a fill limiter,
clock gauge, gauge hatch, pressure vacuum whistle vent, and emergency
venting. The tank is top filled and equipped with a ground-level quick connect
and spill catch basin. The tank will be truck filled from the Wards Cove tank farm
typically once per week.
All piping will be schedule 80 steel. Each isolated section of piping will be
provided with pressure relieving devices to account for thermal expansion of
product caused by temperature fluctuations. Provisions for movement of the
piping caused by thermal expansion and contraction will be included. All valves
will be steel body industrial grade valves intended for use with fuels.
The new power plant, tanks, and piping will be enclosed within a chain link fence
with barbed wire top. Two each three foot wide man gates will be provided for
ingress and egress.
4.2 Potential Hydroelectric Projects
In June, 2002, Larry Coupe, P.E. of HydroWest Group, LLC, a subsidiary of
AP&T, published a report titled "Reconnaissance of Three Potential Hydroelectric
Sites Near Hoonah, Alaska". This report was commissioned by the City of
Hoonah and is included in Appendix F of this report. It was preceded by a
previous study titled "Gartina Creek Project - A Reconnaissance Report"
performed in 1979 by Harza Engineering for the Alaska Power Authority. A
review and update of the 1979 report titled "Concept Review Report, Gartina
Creek Hydroelectric Project" was performed in 1998 by HDR for the City of
Hoonah. The three hydroelectric prospects included in the 2002 HydroWest
report are identified as Gartina Creek, Water Supply Creek and Elephant Falls.
Water Supply Creek and Elephant Falls are both tributaries of Gartina Creek. All
flow data for these three drainages is transposed from the stream gage records
of the Kadashan River drainage near Tenakee which is very similar in geology,
precipitation, orientation and elevation to the three Hoonah sites.
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All available data regarding these potential hydroelectric projects, including the
mentioned reports, was forwarded to hydroelectric generation specialist Bob
Butera, P.E. at HDR, Inc. Mr. Butera was tasked with analyzing the information
along with available stream data and providing a cursory opinion on the
feasibility, constructability and reliability for each of the proposed projects. He
was also tasked with providing an updated and inflation adjusted cursory
budgetary cost estimate for the hydroelectric projects. The HDR, Inc. analyses
and revised 2009 cost estimates are included in Appendix E of this report.
After analyzing the reconnaissance studies and the HDR report, another potential
hydroelectric project was identified. The new project is a combination of Gartina
and Water Supply projects described in the 2002 HydroWest report with
additional modifications. Larry Coupe of AP&T performed an analysis and cost
estimate of this potential project in May, 2009. His report titled “Supplement to
the June 2002 Hydroelectric Study” is included in Appendix G of this report.
The following sections contain a cursory description of the three potential
hydroelectric projects identified as the most feasible and cost effective to
construct.
The Elephant Falls site mentioned in the HydroWest report is not being
considered for development at this time primarily due to the fact that it is located
in the Tongass National Forest. This would require a land swap with the federal
government and necessitate FERC licensing, both of which would add delay and
cost to the project.
4.2.1 Gartina Creek
The Gartina Creek project as described in the 2002 HydroWest report consists of
the following components:
• A fifteen feet high concrete and rockfill diversion dam.
• A concrete intake structure and sluiceway
• A 54-inch diameter steel pipeline approximately 200 feet long from the intake
structure to the powerhouse.
• A 20'x20'x25' high two level reinforced concrete powerhouse
• A single turbine with 600kW three-phase generator.
• Programmable automatic paralleling switchgear with remote control and
unattended operation capability.
• A pad-mount disconnect switch and step-up transformer bank adjacent to the
powerhouse.
• Approximately four miles of 12.5kV three-phase overhead transmission line to
an interconnection near the Hoonah airport.
• An approximately 0.3 mile long access road to the intake structure and
powerhouse from an existing Forest Service road.
• The Gartina Creek site is estimated to have an average annual flow of around
66 CFS, a maximum divertible flow of 140 CFS and a net head of 61 feet.
Using a flow-duration method, the maximum potential annual generation of
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this site was estimated in the HydroWest report to be 1,880,000kWH. The
estimated construction cost for the Gartina Creek site is $5.63 million based
on 2012 construction.
See “Hoonah Hydroelectric Study Review”, Appendix E and “2002
Reconnaissance of Three Potential Hydro Sites Near Hoonah”, Appendix F for a
more detailed analysis of this potential hydroelectric project.
4.2.2 Water Supply Creek
The Water Supply Creek project as described in the 2002 HydroWest report
consists of the following components:
• An eight feet high concrete and rockfill diversion dam.
• A concrete intake and sluiceway
• A 5,500 feet long combination 24" diameter HDPE and 20" diameter steel
pipeline from the intake structure to the powerhouse.
• A 20'x40'x15' high single story pre-engineered metal building powerhouse.
• A single turbine with 600kW three-phase generator.
• Programmable automatic paralleling switchgear with remote control and
unattended operation capability.
• A pad-mount disconnect switch and step-up transformer bank adjacent to the
powerhouse.
• Approximately four miles of 12.5kV three-phase overhead transmission line to
an interconnection near the Hoonah airport.
• An approximately 0.25 mile long access road to the intake structure and
powerhouse from an existing Forest Service road.
• The Water Supply Creek site is estimated to have an average annual flow of
around 9 CFS, a maximum divertible flow of 20 CFS and a net head of 400
feet. Using a flow-duration method, the maximum potential annual generation
of this site was estimated in the HydroWest report to be 1,820,000kWH. The
estimated construction cost for the Water Supply Creek site is $4.83 million
based on 2012 construction.
See “Hoonah Hydroelectric Study Review”, Appendix E and “2002
Reconnaissance of Three Potential Hydro Site Near Hoonah”, Appendix F for a
more detailed analysis of this potential hydroelectric project.
4.2.3 Combined Gartina Creek and Water Supply Creek
The Combined Gartina Creek and Water Supply Creek (Combined G&WS)
project as described in the Supplement to the June 2002 Hydroelectric Study
consists of the following components:
• The diversion dam and intake structure for Water Supply Creek as previously
described.
• The pipeline/penstock for Water Supply creek as previously described except
extended 3,200 feet to the Gartina Creek powerhouse.
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• The diversion dam and intake structure for Gartina Creek as previously
described.
• The penstock for Gartina Creek as previously described except downsized to
48” diameter.
• The powerhouse for Gartina Creek as previously described except enlarged
to house the turbine and control system for Water Supply Creek.
• An Ossberger-type impulse turbine for Gartina Creek as previously described
except down-sized to 500kW.
• A twin-jet Pelton unit for Water Supply Creek as previously described except
increased to a capacity of approximately 800kW.
• The rock weir and diffuser tailrace as previously described for Gartina Creek.
• The substation and transmission line as previously described for Gartina
Creek except upgraded for the increased generating capacity.
• Access roads as previously described for Gartina Creek and Water Supply
Creek except for the elimination of the Water Supply powerhouse access
road.
• A 13kW energy recovery turbine at the City water tap on the Water Supply
penstock.
• The Gartina component is estimated to have an average annual flow of
around 55 CFS, a maximum divertible flow of 120 CFS, a net head of 61 feet
and annual potential generation of 1,758,000kWhrs. The Water Supply
component is estimated to have an average annual flow of around 9 CFS, a
maximum divertible flow of 20 CFS, a net head of 581 feet (to be verified) and
annual potential generation of 2,476,000kWhrs. The maximum potential
annual generation of the combined G&WS project was estimated to be
4,344,000kWH, including 110,000kWhrs from the city water connection
energy recovery turbine. The estimated construction cost for the combined
G&WS project is $8.95 million based on 2012 construction.
See “Supplement to June 2002 Study”, Appendix G and “2002 Reconnaissance
of Three Potential Hydro Site Near Hoonah”, Appendix F for a more detailed
analysis of this potential hydroelectric project.
4.2.4 Hydroelectric Power Utilization
The design output for proposed hydroelectric installations must be compared to
actual community demand curves in order to determine the percent of potential
hydroelectric power that can be utilized. Community load profile data from the
IPEC power plant SCADA system was provided to AP&T in order to make this
determination for the various proposed projects. The design hydroelectric output
was compared against actual demand curves at 1% incremental values (10,000
comparisons per month). See “Supplement to the June 2002 Hydroelectric
Study”, Appendix G for a more complete description of the methodology used.
The comparison of design output to community load profile verified the
assumptions in the 2002 report that virtually all of the potential generation from
Hoonah Energy Projects June 1, 2009
Concept Design Report Alaska Energy and Engineering
13
either Gartina Creek (1,880,000kWhrs) or Water Supply Creek (1,820,000kWhrs)
would be utilized if only one of these projects were constructed.
The combined Gartina & Water Supply design output was also incrementally
compared to the community demand curves. The result of that comparison
shows an annual utilization of 3,009,000kWhrs or 71.7% of the 4,334,000kWhr
total potential generation. This leaves an un-used annual excess hydroelectric
capacity of approximately 1,331,000kWhrs.
A portion of the excess hydroelectric generation potential can be utilized to offset
heating fuel use by installing an electric boiler in the power house and feeding the
electrically heated water into the proposed diesel heat recovery system (see
Section 4.3 below). The boiler would be controlled by the switchgear PLC and
would come on only when excess hydroelectric generation was available. An
analysis of excess hydroelectric energy recovery in conjunction with the
combined Gartina & Water Supply project was conducted as part of the Hoonah
Energy Recovery Worksheet, Appendix H. This analysis assumes that the
swimming pool/gymnasium, high school, elementary school, fire hall, senior
center, senior apartments, and clinic are connected to the proposed diesel
generation heat recovery system. This electric boiler installation also enables
enhanced control of the hydroelectric system during transfers of load from
hydroelectric to diesel generation.
The following table summarizes hydroelectric utilization and excess hydroelectric
energy recovery for the proposed projects:
HYDROELECTRIC UTILIZATION & EXCESS HYDRO ENERGY RECOVERY
Potential
Annual
Hydroelectric
Generation,
kWH
Hydroelectric
Generation
Utilized
Annually,
kWH
Heating Fuel
Offset By
Excess Hydro
Energy
Recovery,
Gallons/Yr
Percent of
Annual Diesel
Generation
Offset Annually
(1)
Gartina Creek 1,820,000 1,820,000 0 34.5%
Water Supply
Creek 1,880,000 1,880,000 0 35.7%
Combined
G&WS 4,344,000 3,009,000 0 57.1%
Combined
G&WS With
Excess
Hydroelectric
Energy
Recovery
4,344,000 3,514,000 12,000 ---
(1) Assuming Average Annual Community Generation of 5,270,000kWhrs
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Concept Design Report Alaska Energy and Engineering
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4.2.5 Permitting
The HydroWest report addresses permitting issues for each of these sites. The
Gartina Creek and Water Supply Creek projects would fall under the State of
Alaska small hydroelectric project exemption from Federal Energy Regulatory
Commission (FERC) jurisdiction.
The HydroWest report also addresses environmental issues for each of these
sites. The primary environmental concern is the possible impact on anadromous
and resident fish populations due to reduced in-stream flows between the intake
structure and the power house. Because Water Supply Creek is located above
Gartina Falls, no anadromous fish will be present and only resident fish
populations are of concern. The bypassed reach of stream for the Gartina Creek
project does include salmon pools at the base of the falls. This could result in
increased bypass flow requirements or significant increases in construction
costs.
4.3 Diesel Generation Heat Recovery
An analysis of available diesel heat recovery was conducted for the various
proposed projects as part of the Hoonah Energy Recovery Worksheet, Appendix
H. The proposed diesel heat recovery project consists of the following
components:
• Heat recovery supply and return buried arctic pipe (approximately 6,500 feet
total of 4” diameter piping) located along Douglas Drive between the IPEC
power plant and the school complex.
• Heating connections to the swimming pool/gymnasium, school classroom
building, fire hall, senior center, senior apartments, and clinic. These six
public facilities use approximately 60,000 gallons of diesel annually for space
and water heating
• Six port heat exchanger, pumps and associated equipment in power plant.
• Recovered heat BTU meter in the power plant.
• Individual heat exchangers and associated equipment in each of the six
identified facilities’ boiler rooms.
• Alarms for loss of flow, loss of pressure, and no load/backfeed condition with
annunciation in the power plant switchgear.
An overall area site plan showing the proposed heat recovery pipeline routing is
provided in Appendix A. Appendix H, Graph 1 shows the estimated annual and
monthly heating fuel saved by including diesel heat recovery in the various
proposed projects.
The following table lists the estimated diesel heat recovery heating fuel offsets
when coupled with the various proposed power generation projects:
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Concept Design Report Alaska Energy and Engineering
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DIESEL HEAT RECOVERY
Heating Fuel
Saved,
Gallons/Yr
Diesel Heat Recovery With No Hydro Installation 57,000
Diesel Heat Recovery with Gartina Creek Hydro
Installation 46,000
Diesel Heat Recovery with Water Supply Creek
Hydro Installation 46,000
Diesel Heat Recovery with Combined G&WS
Hydro Installation 30,000
5.0 SITE SELECTION & CONTROL
Work for this project will be performed in four general areas: (1) The “Power
Plant Site”; (2) The "Hydroelectric Project Area"; (3) The “Hydroelectric Intertie
Route”; and (4) The “Heat Recovery Pipeline Route”. There are no known flood
hazards at any of these locations.
5.1 Power Plant Site
The proposed new power plant site is within a potion of Lot 2, U.S. Survey No.
4539, near the existing power plant as shown in Appendix A, Sheet M3. The new
power plant will be located approximately where the old abandoned IPEC tank
farm currently sits. The abandoned tank farm will be demolished by others prior
to the start of this project. The site will be leveled prior to construction of the
power plant building. It is unknown if an environmental site assessment of the
site will be required. See Appendix A, Sheet M3
5.2 Hydroelectric Project Area
All three identified potential hydroelectric projects, including drainages, access
roads, diversion dams and pipelines are located within an area encompassed by
Sections 11, 12, 13 & 14 of Township 44 South, Range 61 East, Copper River
Meridian. The proposed power house locations are all between three and four
miles from the center of Hoonah. See Appendix A, Sheet M1 and Appendix F,
Figures 1 & 3.
5.3 Hydroelectric Intertie Route
The proposed overhead transmission intertie will be routed cross country along
existing logging roads within Sections 34 and 35, Township 43 South, Range 61
East and Sections 2 and 11, Township 44 South, Range 61 East from the end of
the existing overhead distribution system near the airport to the powerhouse
sites. See Appendix A, Sheet M1 and Appendix F, Figures 1 & 3.
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5.4 Heat Recovery Pipeline Route
The proposed generation heat recovery pipeline mains are routed within the
Douglas Drive and Hemlock Drive road right-of-ways. Branch pipelines to the
senior housing complex and the clinic are within Lots 3 and 4 of Hillside
Subdivision. The branch pipeline to the fire hall is within Lot 3 of U.S. Survey
4539. Branch pipelines to the school building and gymnasium/pool complex are
within the school reserve parcel and Lot 9 of US Survey 736. See Appendix A,
Sheet M2
5.5 Site Control
A sight control opinion letter was written on February 18, 2008. A copy of the
letter is included in Appendix C.
The proposed new power plant site is vested in the City of Hoonah with a long
tern lease to IPEC and a sublease of a portion of the site to the State of Alaska,
Department of Military Affairs.
According to the HydroWest report, the proposed hydroelectric project(s) area is
vested in the Seaalaska Corporation.
Ownership of the hydroelectric intertie route is currently unknown but it is
expected that the City of Hoonah, the State of Alaska Department of
Transportation and the Seaalaska Corporation are among the vested owners.
The City of Hoonah has jurisdiction over the Douglas Drive and Hemlock Drive
dedicated rights of way for the entire route of the buried heat recovery pipeline.
The fire hall and clinic sites are vested in the City of Hoonah. The senior housing
complex appears to be vested in the Tlingit-Haida Regional Housing Authority but
further research will be required. The school/pool/gymnasium complex appears
to be vested in the Presbytery of Alaska but further research will be required.
6.0 PERMITTING AND SPILL RESPONSE
The proposed projects are subject to regulations of both State and Federal
agencies including the Alaska Coastal Management Program, the Alaska
Department of Environmental Conservation (ADEC), the Division of Fire
Prevention, and the U.S. Environmental Protection Agency.
6.1 Environmental Assessment
An Environmental Assessment (EA) will be completed prior to construction of the
proposed projects. An EA is required for all projects that are federally funded or
require a federal permit (such as a Corps of Engineers Wetlands Permit). The
EA determines whether there is a significant impact to the environment caused
by the project. As part of the EA, a Coastal Zone Management Project
Questionnaire will be completed and submitted to the Alaska Coastal
Management Program. The Coastal Zone Management Project Questionnaire
helps to identify state or federal permits that may be required.
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6.2 Fire Code
A Plan Review permit from the State Fire Marshal is required for the proposed
diesel and hydroelectric power plant projects. Final stamped design drawings will
be submitted to the Fire Marshal for review prior to construction. Plans will be
reviewed for conformance with the International Fire Code and related codes
including the International Building Code and the National Electrical Code. The
review process can take anywhere between 3 weeks to 6 months.
6.3 Spill Response
Because the power plant day tank has oil storage tanks in excess of 1,320
gallons it is subject to U.S. Environmental Protection Agency regulations. The
Spill Prevention Control and Countermeasures (SPCC) plan will be reviewed and
updated as required as part of this project.
6.4 Air Quality Permit
The existing plant operates under a Title V permit. A Title V permit is required for
facilities with potential to emit >250tpy of hazardous air contaminants (NOx) and
for Prevention of Significant Deterioration (PSD) facilities.
The existing Hoonah power plant consumes more than 330,000-gallons but less
than 825,000-gallons of diesel fuel annually, and therefore, does not emit
>250tpy of NOx. As such, the Hoonah plant does not need to operate under a
Title V permit. DEC has a General Permit that is intended for facilities that emit
between 100 and 250tpy annually.
The new power plant should be permitted as a GPA facility rather than a Title V
facility. A GPA permit is less costly than a Title V permit and the operational
requirements are less intrusive.
The following actions are recommended:
• Continue to operate the existing power plant under the existing Title V
permit.
• Apply for a Title I construction permit for the new power plant.
• Apply for a GPA Operating Permit for the new plant.
• Once the new plant is online and operational, and the old plant
decommissioned, IPEC will notify DEC of the "shut down" and the existing
Title V permit will be rescinded.
6.5 Hydroelectric Project Permitting
In addition to the EA requirements listed above, the hydroelectric portion of this
project will require the following separate permits/review process if built:
• Alaska Department of Natural Resources
o Water Rights Permit
o Fish Habitat Permit
o Coastal Zone Management Consistency Review
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• Federal Energy Regulatory Commission (FERC) license or waiver
• Site control permits and/or easements for access to the site(s) and for
electric transmission line right of way.
7.0 CONSTRUCTION PLAN
The AEA/REG has a history of administering similar projects on a "modified"
force-account basis. Force-account construction involves the owner or grantee
acting as the employer and utilizing primarily local labor. This method tends to
achieve a higher percentage of local hire and is strongly supported by many
communities and funding agencies. The highly technical nature of power
generation and distribution projects requires a limited number of workers with
specific experience and expertise to be brought in for the project when not
available locally. All work must be supervised and managed by a superintendent
with extensive experience in the construction of rural power generation and
distribution systems. All specialty work, such as pipe welding and electrical
installation must be performed by skilled craftsmen with appropriate certifications.
An experienced construction manager will be required to recruit the necessary
skilled labor, coordinate the construction team, and oversee procurement and
project logistics. The design engineer will provide quality control through
communication with the construction manager and periodic on-site inspections.
The nature of the projects identified will allow most of the projects to be
constructed independently from the other. The power plant, generation heat
recovery system and hydroelectric projects are separate and will not necessarily
need to be constructed using the same construction management teams.
Because it will replace the existing power plant, the new power plant can be fully
completed, tested and energized with minimal impact to the existing power
system.
There are at least two options for shipping project construction materials and
equipment into Angoon:
• Hoonah is on the Alaska Marine Highway (AMH) ferry system. Roll-on, roll-
off containers not exceeding 40 feet in length and 13 feet 6 inches in height
can be delivered by the ferry and off-loaded at the ferry dock. However, this
option would require the project to procure the rolling stock and to pay full fair
for the return leg of any empty trailers.
• Alaska Marine Lines provides seasonal containerized freight service direct
from Seattle to Hoonah. Freight is off-loaded with a large fork lift at the
marine industrial center in the vicinity of the ferry dock. The cost estimate
and the project schedule have been developed on this basis. Containers are
available in 20, 24 and 40 foot lengths. Transporting the freight from the
marine industrial center to the construction site is the responsibility of the
project. IPEC has a tilt-bed winch trailer that would be available to the
project.
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7.1 Local Job Skills
The City was not able to provide information regarding the availability of specialty
skilled labor in Hoonah. Due to the relatively large population of this community
it is likely that there are a number of local residents with specialty skills and
general labor experience in various types of construction. It should be assumed
that at a minimum a project superintendent, a pipe welder/mechanical foreman, a
journeyman electrician, and a journeyman lineman will need to be brought into
Hoonah for this project.
7.2 Local Equipment
The City was not able to provide an inventory of locally available heavy
equipment. Calls to local contractors confirmed that there is a considerable
amount of heavy equipment in the community, including several 200 class
excavators, small and medium sized dozers, a 25-ton track crane and 10 yard
dump trucks. It is likely that a skid steer loader is the only piece of equipment
that will need to be imported into Hoonah.
Prior to the start of construction, an experienced fleet service mechanic will need
to go through the equipment with a local mechanic to ensure the equipment is in
proper operating condition.
7.3 Material Sources
Gravel will be required for pad development and finish grading at the proposed
diesel and hydroelectric power plant sites, for access roads to the hydroelectric
sites, for bedding material for heat recovery arctic pipe and for concrete
aggregate. There are stockpiles of blast material available in Hoonah. A small
screen is available locally that is capable of producing relatively small quantities
of structural fill as well as 1” minus gravel for arctic pipe bedding and finish
grading. No concrete aggregate is available in large quantities locally and will
need to be purchased in one yard super sacks and delivered to Hoonah by barge
from Seattle or Juneau.
8.0 SCHEDULE
The proposed project schedule is separated into two sections: Section 8.1,
"Power Plant Replacement and Diesel Heat Recovery System Schedule"; and
Section 8.2, "Hydroelectric Project Schedule". The schedules have been set to
take advantage of the best seasonal weather for most work. All schedules are
contingent on timely approval of the plan by all project participants and funding
agencies.
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8.1 Power Plant Replacement and Diesel Heat Recovery System Schedule
The following schedule has been developed on the basis of performing the majority
of the work on the power plant replacement and generation heat recovery project
during Spring/Summer 2010. This schedule is contingent on approval of the plan by
the project participants as well as on funding availability.
• June-Nov 2009: Design, permitting, and site control.
• Nov 2009 -Feb 2010: Order building, generators, switchgear, radiators, etc...
• April 2010: Mobilization.
• May-Dec 2010: Project construction.
• Jan 2011: Project completion, power plant commissioning & operator training.
• Feb 2011: O&M manuals and project close out.
8.2 Hydroelectric Project Schedule
The following schedule has been developed on the basis of performing the majority
of the work for the hydroelectric project during early spring through summer 2012.
This schedule assumes only one of the three potential hydroelectric projects is
funded and is contingent on timely approval of the plan by the project participants as
well as on funding availability.
• June 2009-July 2011: Stream gauging, design, permitting, and site control.
• Aug 2011: Order turbine, switchgear, building materials, etc.
• Feb 2012: Project mobilization, startup.
• Mar-Nov 2012: Project construction.
• Dec 2012: Project completion, commissioning & operator training.
• Jan 2013: O&M manuals and project close out.
9.0 COST ESTIMATE
The construction cost estimates have been developed based on a "modified"
force-account approach utilizing a combination of local labor, certified craftsmen,
and specialty sub-contractors under the direction of an experienced construction
manager. Labor rates are based on Title 36 equivalent wages for certified
specialty labor and prevailing local force-account wage rates for general labor
and equipment operation.
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Concept Design Report Alaska Energy and Engineering
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Detailed cost estimates are included in Appendix B. Separate estimates have
been prepared for the Power Plant Replacement, Heat Recovery System and
each of the three potential hydroelectric projects. The estimated total project
cost including all design, supervision, inspection, permitting, and a 15%
contingency (power plant and heat recovery projects) or 25% to 33% contingency
(hydroelectric projects) is:
• $2,791,000 Power Plant Replacement (3,100kW @ $900/kW)
• $905,000 Diesel Generation Heat Recovery System
• $4,710,000 Gartina Creek Hydroelectric Project (600kW)
• $4,078,000 Water Supply Creek Hydroelectric Project (600kW)
• $8,645,000 Combined G & WS Hydroelectric Project (1,300kW)
• $100,000 Excess Hydroelectric Energy Recovery System
It is assumed that the operation and maintenance costs of hydroelectric power
generation and energy recovery systems will be comparable to that for diesel
generation. Therefore, the various project costs need to be compared to the
primary benefit, which is the avoided fuel cost. The following table summarizes
the avoided fuel costs and simple payback periods for the potential hydroelectric
projects with and without energy recovery:
AVOIDED FUEL COST & SIMPLE PAY BACK OF POTENTIAL PROJECTS
Project Project
Cost
Annual
Avoided
Fuel,
Gallons
Annual
Value of
Avoided
Fuel,
$/Year (1)
Simple
Pay
Back
Period
Fuel
Cost
Avoided
Over 30
Years
Excess Hydro ER $.10M 12,500 $62,000 1.6 yrs $1.88M
Diesel HR $.91M 57,000 $285,000 3.2 yrs $8.55M
Gartina Hydro $4.71M 130,000 $650,000 7.3 yrs $19.5M
Gartina Hydro w/
Diesel HR $5.61M 176,000 $881,000 6.4 yrs $26.4M
Water Supply
Hydro $4.08M 134,000 $670,000 6.1 yrs $20.1M
Water Supply
Hydro w/ Diesel HR $4.98M 180,000 $900,000 5.5 yrs $27.0M
Combined Hydro $8.65M 215,000 $1,075,000 8.0 yrs $32.2M
Combined Hydro w/
DHR & EHER $9.65M 257,000 $1,285,000 7.5 yrs $38.5M
1) Based on an assumed future fuel cost of $5.00/Gallon
APPENDIX A
CONCEPT DESIGN DRAWINGS
APPENDIX B
CONSTRUCTION COST ESTIMATES
ALASKA ENERGY ANDENGINEERINGHOONAH ENERGY PROJECTSDIESEL POWER PLANT COST ESTIMATE SUMMARY MAY 29, 2009CONCEPT DESIGN REPORTPOWER GENERATION UPGRADES $1,776,800MISCELLANEOUS $15,400OVERHEAD $146,858FREIGHT $95,880CONSTRUCTION SUB-TOTAL $2,034,938DESIGN AND CONSTRUCTION ADMIN. $200,000CONSTRUCTION MANAGEMENT $200,000PROJECT SUB-TOTAL $2,434,938CONTINGENCY $365,241 15 %TOTAL PROJECT COST (ROUNDED) $2,800,000TOTAL INSTALLED KW CAPACITY3,100 kWCOST PER KW OF INSTALLED CAPACITY $903B-1
ALASKA ENERGY ANDENGINEERINGHOONAH ENERGY PROJECTSDIESEL HEAT RECOVERY SYSTEM COST ESTIMATE SUMMARY MAY 29, 2009CONCEPT DESIGN REPORTHEAT RECOVERY SYSTEM $494,200MISCELLANEOUS $101,900OVERHEAD $89,723FREIGHT $21,340CONSTRUCTION SUB-TOTAL $707,163DESIGN AND CONSTRUCTION ADMIN. $40,000CONSTRUCTION MANAGEMENT $40,000PROJECT SUB-TOTAL $787,163CONTINGENCY $118,074 15 %TOTAL PROJECT COST (ROUNDED) $905,000B-4
ALASKA ENERGY ANDENGINEERINGHOONAH ENERGY PROJECTSDIESEL HEAT RECOVERY SYSTEM COST ESTIMATEMAY 29, 2009CONCEPT DESIGN REPORTITEM QUAN UNIT UNIT MATLUNIT LAB LAB LABORCONTRFREIGHT TOTALUNIT TOTAL COST COST HRS HRS RATE COST COST COST COST WT WT(#)HEAT RECOVERY SYSTEMArctic Pipe & Fittings 6,500 ft. $45 $292,500 0.20 1300 $80 $104,000 $396,500 10 65,000PP Expansion Tank 1 lump $3,000 $3,000 10 10 $80 $800 $3,800 600 600PP Heat Exchanger 1 ea. $15,000 $15,000 80 80 $80 $6,400 $21,400 5,000 5,000PP HR Pumps, Piping & Devices 1 lump $15,000 $15,000 40 40 $80 $3,200 $18,200 800 800PP BTU Meter 1 ea. $4,500 $4,500 10 10 $80 $800 $5,300 100 100Secondary HX's, Piping & Devices 5 ea. $5,000 $25,000 60 300 $80 $24,000 $49,000 100 500MISCELLANEOUSContract Repair & Repave Roads 1 lump $0 $0 0 0 $80 $0 $75,000 $75,000 0 0Signs & Valve Tags 1 lump $2,000 $2,000 30 30 $80 $2,400 $4,400 100 100Misc Hardware 1 lump $5,000 $5,000 0 0 $80 $0 $5,000 500 500Misc Tools & Safety Gear 1 lump $7,500 $7,500 0 0 $80 $0 $7,500 500 500Welding Rod, Gases, Etc. 1 lump $10,000 $10,000 0 0 $80 $0 $10,000 2500 2500OVERHEADAudit Grants 1 lump $6,000 $6,000ROW Legal Work 1 lump $5,000 $5,000 0Construction Insurance 1 lump $1,513 $1,513 0CM Prof. Liability Insurance 1 lump $4,450 $4,450 0Heavy Equip Rent 1 lump $20,000 $20,000 0Skid Steer Rent 2 mo. $4,000 $4,000 0Pickup Rent 2 mo. $1,200 $1,200 0Welder/Compr/Misc Tool Rent 1 lump $20,000 $20,000 0Project Diesel Fuel/Gasoline 1 lump $5,000 $5,000 0Commission/Train Operators 20 hr 1 20 $90 $1,800 $1,800Superintendent Overhd Off-Site 40 hr 1 40 $90 $3,600 $3,600Superintendent Overhd On-Site 40 hr 1 40 $90 $3,600 $3,600Crew Travel Time 40 hr 1 40 $90 $3,600 $3,600Crew Airfares 4 trips $3,600 $3,600Crew Per Diem 80 mn.dy $3,360 $3,360Housing Rent 2 mo. $3,000 $3,000B-5
ALASKA ENERGY ANDENGINEERINGHOONAH ENERGY PROJECTSDIESEL HEAT RECOVERY SYSTEM COST ESTIMATEMAY 29, 2009CONCEPT DESIGN REPORTITEM QUAN UNIT UNIT MATLUNIT LAB LAB LABORCONTRFREIGHT TOTALUNIT TOTAL COST COST HRS HRS RATE COST COST COST COST WT WT(#)FREIGHT75,600Barge Freight Seattle-Hoonah 75600 lb. $0.15 $11,340 $11,340Misc Small Freight & Gold Streaks 1 lump $10,000 $10,000 $10,000CONSTRUCTION SUB-TOTAL $379,500 1,910 $154,200 $152,123 $21,340 $707,163Engineering (Design & CCA) 1 lump $40,000 $40,000Construction Management 1 lump $40,000 $40,000PROJECT SUB-TOTAL $379,500 $154,200 $232,123 $21,340 $787,163Contingency15 %$118,074TOTAL PROJECT COST$905,237B-6
ALASKA ENERGY ANDENGINEERINGHOONAH ENERGY PROJECTSEXCESS HYDRO ENERGY RECOVERY SYSTEM COST ESTIMATE SUMMARY MAY 29, 2009CONCEPT DESIGN REPORTELECTRIC BOILERS, EQUIPMENT & INSTALLATION $45,000CONTROLS $15,000OVERHEAD $5,000FREIGHT $2,000CONSTRUCTION SUB-TOTAL $67,000DESIGN AND CONSTRUCTION ADMIN. $10,000CONSTRUCTION MANAGEMENT $10,000PROJECT SUB-TOTAL $87,000CONTINGENCY $13,050 15 %TOTAL PROJECT COST (ROUNDED) $100,000Notes: 1. Assumes 2012 construction B-10
APPENDIX D
ELECTRICAL LOAD DATA
HOONAH PCE DATA
Community
Fisc
Month
Fisc
Year Month
KWH
Gen
Fuel
Used
Avg Load
(kW)
Peak Load
(kW)
Efficiency
(kWH/Gal
Hoonah 1 2005 Jul 431,510 29,613 580 852 14.6
Hoonah 2 2005 Aug 443,879 30,904 597 824 14.4
Hoonah 3 2005 Sep 458,899 31,698 637 864 14.5
Hoonah 4 2005 Oct 418,215 28,976 562 820 14.4
Hoonah 5 2005 Nov 474,663 32,163 659 856 14.8
Hoonah 6 2005 Dec 443,462 30,080 596 900 14.7
Hoonah 7 2005 Jan 509,111 37,191 684 892 13.7
Hoonah 8 2005 Feb 443,292 28,562 660 864 15.5
Hoonah 9 2005 Mar 435,346 27,689 585 780 15.7
Hoonah 10 2005 Apr 430,065 26,805 597 812 16.0
Hoonah 11 2005 May 415,703 29,295 559 760 14.2
Hoonah 12 2005 Jun 414,147 28,712 575 800 14.4
ANNUAL TOTALS / AVERAGES 5318292 361688 607 835 14.7
Hoonah 1 2006 Jul 398,400 27,697 535 824 14.4
Hoonah 2 2006 Aug 462,325 31,378 621 848 14.7
Hoonah 3 2006 Sep 426,332 29,277 592 880 14.6
Hoonah 4 2006 Oct 449,975 28,112 605 776 16.0
Hoonah 5 2006 Nov 418,601 31,694 581 840 13.2
Hoonah 6 2006 Dec 424,994 29,126 571 832 14.6
Hoonah 7 2006 Jan 433,294 29,834 582 820 14.5
Hoonah 8 2006 Feb 444,085 30,063 661 868 14.8
Hoonah 9 2006 Mar 421,673 29,040 567 880 14.5
Hoonah 10 2006 Apr 434,842 30,189 604 740 14.4
Hoonah 11 2006 May 393,336 26,959 529 780 14.6
Hoonah 12 2006 Jun 396,675 32,277 551 800 12.3
ANNUAL TOTALS / AVERAGES 5104532 355646 583 824 14.4
Hoonah 1 2007 Jul 392,585 27,065 528 884 14.5
Hoonah 2 2007 Aug 530,755 36,045 713 900 14.7
Hoonah 3 2007 Sep 476,422 34,966 662 944 13.6
Hoonah 4 2007 Oct 472,728 33,067 635 832 14.3
Hoonah 5 2007 Nov 466,555 31,813 648 920 14.7
Hoonah 6 2007 Dec 483,615 31,399 650 860 15.4
Hoonah 7 2007 Jan 457,170 34,274 614 860 13.3
Hoonah 8 2007 Feb 423,287 28,510 630 876 14.8
Hoonah 9 2007 Mar 474,803 34,546 638 864 13.7
Hoonah 10 2007 Apr 454,991 30,333 632 796 15.0
Hoonah 11 2007 May 422,790 28,609 568 844 14.8
Hoonah 12 2007 Jun 444,061 29,543 617 832 15.0
ANNUAL TOTALS / AVERAGES 5499762 380170 628 868 14.5
D-1
D-2Hoonah Monthly kWH Generated 0100,000200,000300,000400,000500,000600,000Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May JunMonthkWH Generated200520062007
D-3Hoonah Peak kW Load01002003004005006007008009001000Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May JunMonthkW200520062007
D-4Hoonah Average kW Load0100200300400500600700800Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May JunMonthkW200520062007
D-5Hoonah Annual kWH Generated01,000,0002,000,0003,000,0004,000,0005,000,0006,000,0002005 2006 2007YearkWH
APPENDIX H
HOONAH ENERGY RECOVERY WORKSHEET AND GRAPHS
HOONAH ENERGY RECOVERY WORK SHEET ====================================== =========Analysis of Diesel HR (No Hydro Installation) ANNUAL FUEL SAVINGS:Annual O&M cost:0$/year. [ =============================================]Cost Estimate$ [ Diesel HR, Gallons:56936]Fuel heat value:138000Btu/gall. [ =============================================]Fuel cost0.00$/gallonFuel cost escal.0/yearPower increase0/yearDiscount rate0/yearGEN DATA: Jacket Water OnlySYSTEM LOSS DATA: Heat rate at kw-load above0 2800Btu/kwhConstant losses:Heat rate at kw-load above114 2800Btu/kwh Plant piping:15000Btu/hr. Piping main insulated, branch piping & flexes bareHeat rate at kw-load above152 2800Btu/kwh Buried Arctic piping:195000Btu/hr.(6500' of 4" @ 0.25)*(170F-50F)Heat rate at kw-load above176 2800Btu/kwhGenset Eng. Preheat:20000Btu/hr. Pre-heat 2 offline enginesHeat rate at kw-load above205 2800Btu/kwhTotal constant:230000Btu/hr.Heat rate at kw-load above255 2800Btu/kwhHeat rate at kw-load above375 2800Btu/kwhVariable losses:Heat rate at kw-load above465 2800Btu/kwh Radiators/Exter Pipe100Btu/hr.xFAmot normally closed, 1/2" normally open bypassHeat rate at kw-load above400 2800Btu/kwh Plant Heating:75Btu/hr.xFControl only, gen room heated by running engineHeat rate at kw-load above4502200Btu/kwhOther0Btu/hr.xFHeat rate at kw-load above5002200Btu/kwhGENERATION DATA:WEATHER DATA: NOTES:Kwh/month:HDD/Month: HonnahJanuary498,0001108February438,000944March433,000961April420,000756May410,000531June397,000330July436,000249August428,000242September455,000423October428,000695November416,000933December447,00010365206000 8208BUILDING DATA:Fuel use, Non- BoilergallonsSeasonalSeasonalEfficiency Building in use, 1=yes, 0=noOPER.HDDBuildings35600 2800 75%111110011111107630Pool14400 7200 75%111111101111117967H-1