HomeMy WebLinkAboutKatchikan Whitman Lake Grant Application4
Renewable Energy Fund Round IV
Grant Application
AEA 11-005 Application Page 1 of 35 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 35 7/21/2010
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
City of Ketchikan dba Ketchikan Public Utilities
Type of Entity:
Municipal Utility
Mailing Address
1065 Fair Street
Ketchikan, AK 99901
Physical Address
1065 Fair Street
Ketchikan, AK 99901
Telephone
(907) 225-5505
Fax
(907) 247-0755
Email
mikek@city.ketchikan.ak.us
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Mike Kline
Title
Electric Division Manager
Mailing Address
1065 Fair Street
Ketchikan, AK 99901
Telephone
(907) 228-5447
Fax
(907) 247-0755
Email
mikek@city.ketchikan.ak.us
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
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
X A local government, or
A governmental entity (which includes tribal councils and housing authorities);
Yes
1.2.2. Attached to this application is formal approval and endorsement for its project by
its board of directors, executive management, or other governing authority. If the
applicant is a collaborative grouping, a formal approval from each participant’s
governing authority is necessary. (Indicate Yes or No in the box )
Yes
1.2.3. As an applicant, we have administrative and financial management systems and
follow procurement standards that comply with the standards set forth in the grant
agreement.
Yes
1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached
grant form. (Any exceptions should be clearly noted and submitted with the
application.)
Yes
1.2.5 We intend to own and operate any project that may be constructed with grant
funds for the benefit of the general public.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 3 of 35 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)
Whitman Lake 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.
The proposed Whitman Lake Project is located four miles east of Ketchikan, Alaska, within the
Whitman Creek and Achilles Creek watersheds. As a hydroelectric project, it will benefit
residents of the Ketchikan Gateway Borough and the municipalities connected by the Southeast
Alaska Power Agency (SEAPA) transmission line. As a water supply system for the Southern
Southeast Regional Aquaculture Association (SSRAA) Whitman Lake Hatchery, it will provide a
significant economic benefit for the commercial fishing, seafood processing and sportfishing
industries of the Southern Southeast Alaska region.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind Biomass or Biofuels
X Hydro, including run of river Transmission of Renewable Energy
Geothermal, including Heat Pumps Small Natural Gas
Heat Recovery from existing sources Hydrokinetic
Solar Storage of Renewable
Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Reconnaissance Design and Permitting
Feasibility X Construction and Commissioning
Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
The proposed Whitman Lake Project will install 4.6 MW of hydropower generating capacity at an
existing dam, supporting near-term capacity demand increases in the Ketchikan area and
displacing diesel generation as the existing Tyee Lake (SEAPA) resource becomes fully utilized.
It will also replace the aging water supply system of the SSRAA Whitman Lake Hatchery,
providing increased water quantity, reliability and redundancy to a facility that is critical to the
region’s commercial fishing, seafood processing and sportfishing industries..
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 4 of 35 7/21/2010
2.5 PROJECT BENEFIT
Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel
costs, lower energy costs, etc.)
Ketchikan’s Next Renewable Resource
Ketchikan Public Utilities’ (KPU’s) long-time mission has been to provide affordable renewable
energy to the communities of Ketchikan and Saxman. With an average annual rainfall of over
150 inches, water is Ketchikan’s most abundant resource. The Ketchikan Lakes watershed was
first developed for hydropower in 1903. As Ketchikan grew and demand increased, the
Ketchikan Lakes hydroelectric project was expanded, and was followed by the Beaver Falls
(1947), Silvis (1975) and Swan Lake (1984) projects. For many decades, hydropower supplied
nearly all of Ketchikan’s electric needs.
A new transmission line was completed in 2009, connecting Ketchikan to the Southeast Alaska
Power Agency (SEAPA)-owned Tyee Lake project near Wrangell. The output of the Swan Lake
and Tyee Lake projects are now shared among the communities of Ketchikan, Petersburg and
Wrangell.
However, last year SEAPA estimated that Tyee Lake energy will be fully utilized by 2015. This
prediction was based on an assumed 5% load growth in the three communities (June 2009). In
June 2009, SEAPA predicted that in 2010, Tyee Lake would have an excess 42,600,000 kW-hr
available for future load growth. However, in June 2010, the energy forecast was modified to
31,400,000 kW-hr.
While Ketchikan’s track record with hydropower is one of the longest in Alaska, we again find
ourselves facing an impending energy shortfall. In 1997, anticipating this need for additional
energy, the City of Ketchikan identified Whitman Lake as Ketchikan’s next source of renewable
power and began the process of obtaining the required permits and licenses. On March 17,
2009, KPU was issued a license by the Federal Energy Regulatory Commission (FERC) to
construct and operate the Whitman Lake Project.
KPU must begin construction by February 2013 or surrender its FERC license. If the Whitman
Lake Project is not constructed, it will be a significant lost opportunity for Southeast Alaska.
There are no other projects that may be added to the SEAPA interconnected system that are
licensed and as near to shovel-ready as the Whitman Lake Project. The environmental studies,
permitting and licensing process for Whitman took 12 years. Even after identification of the next
FERC jurisdictional resource, it will be at least ten years before it would be operational.
Ketchikan’s and SEAPA’s available renewable energy resources will be exceeded before that
time.
While KPU fully supports the creation of an Integrated Resource Plan (IRP) for Southeast
Alaska, Ketchikan cannot wait for completion of the IRP before moving ahead with construction
of the Whitman Lake Project. If construction does not begin by February 2013, Ketchikan loses
its FERC license, many years of planning, and a valuable renewable energy resource for
Southeast Alaska.
The alternative to construction of the Whitman Lake Project is increased operation of KPU’s
diesel generators. Not only are the emissions harmful to the environment, but the cost of diesel
generation is likely to remain high in comparison with hydroelectric generation. In addition, new
National Emissions Standards for Hazardous Air Pollutants issued by the Environmental
Protection Agency (EPA) in 2010 (40 CFR Part 63 Subpart ZZZZ) have the potential to greatly
increase the cost of diesel generation.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 5 of 35 7/21/2010
Economic and Regional Benefits
The Whitman Lake Project will help attract new economic development to Southeast Alaska,
serving as an energy resource not only to Ketchikan, but to the other interconnected
communities in Southeast Alaska. By displacing an estimated 1,100,000 gallons of diesel fuel
per year, which equates to $3,000,000 at a price of $2.70 per gallon, it will improve the quality of
life for Alaskans facing high energy costs from diesel generation. The Whitman Lake Project
will provide increased capacity to support the estimated 3-4% load growth that Ketchikan is
experiencing and will enhance electrical system stability.
But, because of its unique connection to the Southern Southeast Regional Aquaculture
Association (SSRAA) Whitman Lake Hatchery, the benefits of the Whitman Lake Project extend
much farther.
The Whitman Lake Hatchery is a major regional salmon production facility that also serves as a
central incubation facility for other SSRAA hatcheries. A not for profit corporation whose
mission is to enhance regional common property salmon fisheries, SSRAA has a significant
economic impact on Southern Southeast Alaska’s commercial fishing, seafood processing and
sportfishing industries. According to a 2008 report by the McDowell Group, in 2007, the
economic impacts of SSRAA operations and production were
Total Output Employment Labor Income
Commercial harvest of SSRAA salmon $8 million 110 $3.6 million
Seafood processing of SSRAA salmon 30 million 215 4.9 million
Sport harvest of SSRAA salmon 3 million 45 1.0 million
SSRAA operations 5 million 50 1.9 million
Total economic output from SSRAA activity $46 million 420 $11.5 million
The Whitman Lake Hatchery was constructed in 1978 on a shoestring budget. At that time,
some of the hatchery infrastructure, such as the water supply pipeline, was salvaged from other
locations and reused. The SSRAA water supply pipeline is now in fair to poor condition and its
long-term reliability is suspect. The system also lacks redundancy. A failure of the water supply
system would be catastrophic to the Whitman Lake Hatchery, the fishing industry and the
economy of Southern Southeast Alaska.
The Whitman Lake hydroelectric project will replace and improve the SSRAA facilities that
comprise the current system of water delivery from the reservoir to the hatchery, including new
intakes, valves, and replacement of the existing pipeline with an improved and redundant
system. These changes will provide a higher degree of reliability and longevity of water supply
for the hatchery. Construction of the Whitman Lake Project will help SSRAA to continue to fulfill
its mission of enhancing salmon fisheries, supporting $46 million in economic output and over
400 jobs in Southeast Alaska.
Summary of Benefits
In summary, the financial and public benefits of the Whitman Lake Project will include:
• Estimated annual displacement of approximately 1,100,000 gallons of diesel fuel, which
equates to over $3,000,000 per year at today’s price of $2.81 per gallon.
• New water supply infrastructure for the SSRAA Whitman Lake Hatchery. SSRAA’s
financial contribution to the fisheries and economy Southern Southeast Alaska region
was estimated to be $46 million annually and 420 jobs (McDowell Group, 2008).
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 6 of 35 7/21/2010
• Enhanced electrical system stability and reliability at the southern end of the
interconnected grid, augmenting the spinning reserve and allowing the SEAPA-
connected communities to better ride through system disturbances and reducing costs
associated with power outages.
• Increased capacity to support new construction and customer conversions from oil to
electric heat.
• Reduced reliance on diesel fuel to generate electric power, resulting in less greenhouse
gas emissions.
• A more steady and predictable source of water for the Ketchikan Gateway Borough’s
Mountain Point Water Utility through improved water management in the Whitman Creek
watershed.
• Enhanced fish habitat through release of water to Whitman Creek.
• Availability of low-cost power to attract new economic development to the borough.
• New jobs created during construction.
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 four phases of the Whitman Lake Project are listed in the table below. Phase I and II
studies have been completed by KPU at a cost of $1,070,000. Phase III Final Design and
Permitting began in 2008 and is approximately 50% complete. KPU received a $1,300,000
Renewable Energy Fund grant for final design and is providing a $280,000 match.
Phase IV Construction and Project Startup is estimated to cost $16,500,000. KPU is seeking a
Renewable Energy Fund Round IV grant in the amount of $2,000,000 and will provide a match
and/or other funding for the remainder.
Phase Description Schedule Cost
Estimate
Funds
Requested
I Reconnaissance Studies Completed $470,000 Funded
II Licensing and Feasibility Studies Completed $600,000 Funded
III Final Design and Permitting 11/2008 – 6/2011 $1,580,000 Funded
IV Construction and Project Startup 7/2011 – 10/2013 $16,500,000 $2,000,000
Total $19,150,000 $2,000,000
2.7 COST AND BENEFIT SUMARY
Include a summary of grant request and your project’s total costs and benefits below.
Grant Costs
(Summary of funds requested)
2.7.1 Grant Funds Requested in this application. $2,000,000
2.7.2 Other Funds to be provided (Project match) $14,500,000
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $16,500,000
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 7 of 35 7/21/2010
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)
$19,150,000
2.7.5 Estimated Direct Financial Benefit (Savings) $3,000,000/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
(Section 5.)
$46,000,000/year
(Regional economic
benefit of SSRAA,
McDowell Group, 2008)
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 8 of 35 7/21/2010
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.
KPU will provide project management for the Whitman Lake Project. KPU does not expect or
request project management assistance from the AEA or another government entity.
Project Managers:
Mike Kline, P.E., Electric Division Manager
Ketchikan Public Utilities
1065 Fair Street
Ketchikan, Alaska 99901
(907) 228-5447
mikek@city.ketchikan.ak.us
Jennifer Holstrom, P.E., Senior Project Engineer
Ketchikan Public Utilities
2930 Tongass Avenue
Ketchikan, Alaska 99901
(907) 228-4733
jenniferh@city.ketchikan.ak.us
Reference:
Karl R. Amylon, General Manager
Ketchikan Public Utilities
334 Front Street
Ketchikan, Alaska 99901
(907) 228-5603
karla@city.ketchikan.ak.us
KPU has contracted with Hatch Acres Corporation for project management, engineering
services and regulatory assistance associated with Phase III - Final Design and Permitting. The
Hatch Acres project manager for the Whitman Lake Project is Mr. A. Richard Griffith.
Please see Attachment A for resumes of the project managers, consultants and key staff.
KPU intends to contract for construction management services or hire a construction manager,
who will report to the KPU Project Manager for more general oversight.
KPU will also employ an Environmental Compliance Monitor (ECM) to be on site during project
construction. The ECM will report to the KPU Project Manager and will provide monthly
progress reports to KPU, which will be submitted with the quarterly reports to the AEA.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 9 of 35 7/21/2010
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.)
Activity 12341234123412341234123 4
Reconnaissance Studies
Licensing & Feasibility
St udies
Fi nal Design
Construction & Startup 201320082006201220092010201120051997-2007
Project Schedule
All reconnaissance and feasibility studies have been completed. KPU has applied for all
necessary resource and land use permits and was issued a FERC license for the Whitman Lake
Project on March 17, 2009.
Final design is well underway and is expected to be completed by January 1, 2011. Following
approval of the design drawings and specifications, and completion of the bid documents,
contractors/vendors will be selected and contracts awarded by May 1, 2011.
Construction is expected to start on July 1, 2011 with start-up of the hydroelectric project in
December 2012. A summary of important dates is presented below:
• Whitman Dam access road completed: October 2011
• Conduit system completed: June 2012
• Achilles diversion completed: August 2012
• Powerhouse completed: October 2012
• Hydroelectric startup: December 2012
• Hatchery improvements completed: September 2013
A detailed preliminary construction schedule is attached as Figure 3-1 (see page 28).
Construction Phasing
Construction of the Whitman Lake Project will be accomplished under three contracts:
Phase 1 – Equipment Procurement (July 2011 - August 2012)
• Manufacturing and delivery of equipment with long lead times, such as
turbines, generators, transformers and large valves.
Phase 2 – Uplands Work (July 2011 – June 2012)
• Hatchery laydown area cleared; Whitman Dam access road surveyed,
cleared, constructed; Achilles Diversion access road surveyed, cleared and
constructed; penstock alignment cleared and surveyed; powerhouse area
cleared and surveyed.
• New intakes constructed at Whitman Dam; Achilles Diversion and pipeline
installed; new penstocks installed; hatchery head tank and valve house
completed
Phase 3 – Powerhouse (September 2011 – October 2012)
• Powerhouse, tailrace and switchyard constructed
• Major equipment installed in powerhouse: turbines, generators and
transformers
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 10 of 35 7/21/2010
Replacement of the Whitman Lake Hatchery piping, degassing and oxygenation system (which
are not dual hydro/hatchery facilities) will be performed under a separate contract from May
2013 to September 2013.
Please refer to the attached preliminary construction schedule for a more detailed breakdown of
tasks and sequencing.
Any modifications to the final design during construction will be accomplished through a change
order process. The KPU Project Manager and Hatch Acres design engineers will review
modifications or proposed changes, which will also be provided to the FERC Portland Regional
Office.
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.)
The table below lists milestones associated with construction of the Whitman Lake Project. Also
see Attachment C Grant Budget Form.
Milestones Activities/Description Expected
Completion Date
Confirmation that all design
and feasibility documents are
complete
Final review of design drawings and
specifications, review and approval by the
FERC Portland Regional Office
January 2011 (not
included in grant
request)
Completion of bid documents Approved drawings and specifications are
assembled; KPU’s standard conditions are
incorporated; bid package is ready to
advertise.
January 2011 (not
included in grant
request)
Contract/vendor selection and
award
Bid proposals will be reviewed. Contractor/
vendor selection and contract award will be in
accordance with the procedures set forth in the
Ketchikan Municipal Code.
May 2011 (not
included in grant
request)
Construction Phase 1 –
Equipment Procurement
Large equipment with long lead times is
ordered, manufactured and delivered to the
project site: turbines, generators, transformers
and large valves.
August 2012
Construction Phase 2 –
Uplands Work
• Hatchery laydown area cleared; Whitman
Dam access road surveyed, cleared,
constructed; Achilles Diversion access
road surveyed, cleared and constructed;
penstock alignment cleared and surveyed;
powerhouse area cleared and surveyed.
• New intakes at Whitman Dam installed;
Achilles Diversion and pipeline installed;
new penstocks installed; hatchery
headtank and valvehouse completed
November 2011
June 2012
Construction Phase 3 –
Powerhouse
Powerhouse, tailrace and switchyard
completed, except installation of major
equipment
January 2012
Integration and testing The project is performance tested November 2012
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 11 of 35 7/21/2010
Final acceptance,
commissioning and start-up
Start-up tests are performed; project is
commissioned and turned over to KPU
December 2012
Decommissioning old systems
(hatchery water supply)
Replacement of hatchery supply piping,
degassing and oxygenation system completed
September 2013
Operations reporting Ongoing task of license compliance
management
July 2011 –
December 2012
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.
Construction/Procurement Contracts:
Construction of the Whitman Lake Project will be performed under three contracts:
• Construction Phase 1 – Equipment Procurement
• Construction Phase 2 – Uplands Work
• Construction Phase 3 – Powerhouse
Contractor and vendor selection will be carried out in accordance with the procedures set forth
in Chapter 3.12 of the Ketchikan Municipal Code (Attachment G). Contractors are required to
furnish a payment and performance bond for any contract with a value greater than $50,000,
and to adhere to state and federal prevailing wage requirements for public construction
contracts.
Existing Engineering Support Contract:
Design and bid documents will be produced by Hatch Acres Corporation, KPU’s contractor for
Phase III of the Whitman Lake Project. Hatch Acres will subcontract the field work necessary to
complete project design and regulatory activities.
Resumes of the Hatch Acres consultant team that provides engineering support to KPU are
provided in Attachment A. The consultant team includes:
• A. Richard Griffith, P.E., Project Manager
• Keith Moen, P.E., Project Sponsor
• Carl Mannheim, P.E., Project Engineer
• Nan Nalder, Senior Advisor
• Heidi Wahto, Regulatory Specialist
Existing Contracts:
• KPU with Hatch Acres
• Hatch Acres with GeoEngineers, Inc.
• Hatch Acres with R&M Consultants, Inc. - Anchorage
• Hatch Acres with Northern Land Use Research, Inc.
• Hatch Acres with R&M Engineering Ketchikan, Inc.
• Hatch Acres with R2 Resource Consultants, Inc.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 12 of 35 7/21/2010
Partnerships or Commitments:
The following entities are signatories of a Settlement Agreement (February 2008) associated
with the FERC licensing process:
• Alaska Department of Natural Resources, Division of Mining, Land & Water, Water
Resources Section (ADNR Water Resources)
• Southern Southeast Regional Aquaculture Association (SSRAA)
• U.S. Forest Service, Tongass National Forest, Ketchikan District
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
KPU intends to contract for construction management services or hire a construction manager,
and will also assign an internal project manager for more general oversight. KPU will require
monthly progress reports from the contractor(s) and will submit quarterly reports to the AEA in
accordance with the requirements of the Grant Agreement.
As a requirement of the FERC license, KPU will employ an Environmental Compliance Monitor
(ECM) to be on site during project construction. The ECM’s duties include observing
construction activities, reporting violations, maintaining daily field notes and providing regular
reports. The ECM will be the main point of contact concerning matters of compliance, site
conditions and inspections. The ECM will provide monthly progress reports to KPU, which will
be submitted with the quarterly reports to the AEA.
If required by the grant or requested by the AEA, KPU will submit to the AEA its final project
report including as-built specifications and drawings, final budget and schedule.
If required by the grant or requested by the AEA, KPU will submit periodic operation and
maintenance reports, including actual O&M, fuel and equipment costs; O&M measures and
schedule; energy output; project availability; and efficiency;
3.6 Project Risk
Discuss potential problems and how you would address them.
Potential Problems Solutions to Problems
Rising equipment costs Equipment costs can vary greatly with market conditions.
Therefore, equipment costs are conservatively estimated
and based on Hatch Acres’ long experience in hydropower
construction and monitoring of equipment costs on projects
similar to Whitman Lake.
Lead time on major equipment Similar to costs, lead times for major equipment also vary
greatly with market conditions. Therefore, equipment lead
times are conservatively estimated based on Hatch Acres’
long experience in hydropower construction, and by
monitoring lead times on projects similar to Whitman Lake.
Inclement weather The construction schedule is estimated based on
assumptions of periods of bad weather and shut down of
work. Weather conditions will be monitored and the
schedule adjusted accordingly.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 13 of 35 7/21/2010
SECTION 4 – PROJECT DESCRIPTION AND TASKS
• Tell us what the project is and how you will meet the requirements outlined in Section 2 of
the RFA.
• The level of information will vary according to phase(s) of the project you propose to
undertake with grant funds.
• If you are applying for grant funding for more than one phase of a project provide a
plan and grant budget form for completion of each phase.
• If some work has already been completed on your project and you are requesting funding for
an advanced phase, submit information sufficient to demonstrate that the preceding phases
are satisfied and funding for an advanced phase is warranted.
4.1 Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available.
Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be
available for the market to be served by your project.
The total generating capacity of the Whitman Lake Project is 4.6 MW, with 16,000,000 kWh of
electricity produced in an average year. Compared with other available alternatives (diesel
generation), construction of the Whitman Lake Project has the following pros and cons:
Pros:
• KPU has been issued a FERC license to construct the Whitman Lake Project. This
licensing process took more than 10 years, and the licensing and permitting of any
alternative energy project is expected to take approximately 10-15 years.
• Construction of the Whitman Lake Project includes much-needed improvements to the
SSRAA-owned Whitman Lake Hatchery, and will provide increased water quantity,
reliability and redundancy to a facility that is critical to the region’s economy.
• The Whitman Lake Project provides increased capacity to meet increasing demand.
(Power transmitted from Tyee Lake does via the recently-completed Swan-Tyee Intertie
does not provide Ketchikan with additional capacity.)
• The Whitman Lake Project utilizes existing infrastructure (Whitman Dam) which was
previously used for hydropower generation from 1908 through 1957.
• A very short (1,500 feet) transmission distance to connect to KPU’s existing system.
• The project uses established technology.
• Compared with diesel generation, the Whitman Lake Project will decrease Ketchikan’s
dependence on imported diesel fuel, displace approximately 1,100,000 gallons annually,
and reduce greenhouse gas emissions.
• Hydroelectric power is not subject to fluctuations of cost, as is diesel generation.
• The cost of diesel generation is likely to rise significantly with the new EPA National
Emissions Standards for Hazardous Air Pollutants issued in 2010 (40 CFR Part 63
Subpart ZZZZ)
• The Whitman Lake Project would ensure a more steady and predictable source of water
for the Ketchikan Gateway Borough’s Mountain Point Water Utility through improved
water management in the Whitman Creek watershed.
Cons:
• The Whitman Lake Project requires capital costs for construction compared with
continued use of Ketchikan’s existing diesel generation plant.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 14 of 35 7/21/2010
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.
KPU has historically operated as an islanded energy system, meaning that all of the power
distributed by KPU has been generated and consumed locally. A new transmission line
connecting Ketchikan to the Southeast Alaska Power Agency (SEAPA)-owned Tyee project near
Wrangell was completed in late 2009. The new transmission system connects the existing Swan
Lake and Tyee Lake projects, the output of which is shared between the communities of
Ketchikan, Petersburg and Wrangell. However, as the energy produced by Swan Lake is first
dedicated to Ketchikan, the energy produced by Tyee Lake is first dedicated to Petersburg and
Wrangell.
KPU systems operations, generation dispatch and system restoration are controlled via SCADA
from the operations center at KPU’s Bailey Power Plant.
KPU owns three hydroelectric power plants and has also operated the Swan Lake hydroelectric
project, which is owned by SEAPA. The Bailey Power Plant contains four diesel generators
which supplement generation when there is insufficient hydroelectric power available, to provide
emergency power in the event of a transmission loss, and to provide capacity for peak loads.
Existing Electric Generation Resources
Type Year
Installed
Nominal
Capacity
(MW)
Peak
Efficiency*
Average
Generation**
(MWh)
KPU-Owned Hydro
Ketchikan Plant 4.2 22,500
Ketchikan Unit 3 Francis 1923 1.4 93%
Ketchikan Unit 4 Francis 1938 1.4 94%
Ketchikan Unit 5 Francis 1957 1.4 90%
Silvis Plant Francis 1967 2.1 95% 12,800
Beaver Falls Plant 5 43,400
Beaver Falls Unit 1 Pelton 1946 (1904) 1 80%
Beaver Falls Unit 3 Pelton 1954 2 85%
Beaver Falls Unit 4 Pelton 1954 2 85%
SEAPA-Owned Hydro
Swan Lake Plant 22.5 79,300
Swan Lake Unit 1 Francis 1983 11.25
Swan Lake Unit 2 Francis 1983 11.25
Tyee Lake Plant*** ***
Tyee Lake Unit 1 Pelton 1984 11.25
Tyee Lake Unit 2 Pelton 1984 11.25
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 15 of 35 7/21/2010
Type Year
Installed
Nominal
Capacity
(MW)
Peak
Efficiency*
Average
Generation**
(MWh)
KPU-Owned Diesel
Bailey Power Plant 23
Bailey Unit 1 Diesel 1969 3.5
Bailey Unit 2 Diesel 1969 3.5
Bailey Unit 3 Diesel 1976 5.5
Bailey Unit 4 Diesel 1998 10.5
North Point Higgins 3.2
CAT 1 Diesel 2005 1.6
CAT 2 Diesel 2005 1.6
* Turbine efficiency only. Combined turbine and generator efficiency is approximately 5% less.
** Average generation from 2003-2008
*** Interconnected with Petersburg & Wrangell who have first call on all available energy from Project.
The Swan Lake Hydroelectric Project is a remote (accessible only by boat or plane) facility
connected to the rest of the system via a 30-mile 115 kV line that terminates at KPU’s Bailey
Substation where it is stepped down to 34.5 kV. The 34.5 kV sub-transmission circuit feeds six
substations that step down to the distribution voltage of 12.47 kV. The rest of the KPU-owned
hydro plants operate at various locations along the 34.5 kV circuit.
The Swan Lake and Tyee projects are connected via a 57-mile 115 kV transmission line (Swan-
Tyee Intertie). The Tyee Project is owned by the Southeast Alaska Power Agency (SEAPA) and
primarily serves the towns of Wrangell and Petersburg.
It is important to note that the Swan-Tyee Intertie does not necessarily provide more capacity to
KPU. The power sales agreements within SEAPA provide that Wrangell and Petersburg have
the first call on the output from the Tyee Lake Project. Considering the requirements of Wrangell
and Petersburg, there is not much additional capacity available from the intertie. Also, the
capacity of the convection-cooled transformers at the Bailey Substation is 25 MW. (KPU
recently installed improved transformer cooling, increasing capacity from nameplate 20.4 MW.)
Apart from capacity issues, the rapid rate of conversions from oil heat to electric heat leads to
the conclusion that Tyee power may be fully utilized by Wrangell and Petersburg before 2015
under average hydrologic conditions (2010 SEAPA estimate).
KPU is developing the hydropower potential at Whitman Lake to augment KPU’s resources to
help support significant capacity demand increases anticipated in the short term and continuous
load growth over time.
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.
Existing generation resources are described in Section 4.2.1.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 16 of 35 7/21/2010
Development of the Whitman Lake Project will have a positive impact on KPU’s existing energy
infrastructure and resources. It will reduce Ketchikan’s dependence on diesel generation,
increase system stability, provide emergency power in the event of a transmission loss, and add
flexibility to the management of existing hydroelectric projects. It will also provide energy, and
capacity to the interconnected Southeast communities, as well as spinning reserve to help the
communities to better ride through system disturbances and reduce costs associated with power
outages.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Existing Energy Market
KPU generates or buys are resells all of the electricity consumed in the City of Ketchikan and the
Ketchikan Gateway Borough. Sales and generation data for the years 2000 to 2009 are
summarized below. Monthly sales display consistent seasonal patterns over the years.
Residential sales are markedly lower in the summer, particularly August and September; they
peak in December and January. The seasonal pattern for non-residential sales is less well
defined, displaying only slightly lower consumption in the summer and slightly higher in the
winter.
Residential Non-Residential Total Net Peak
Customers Consumption Customers Consumption Consumption Generation Demand
2000 5,602 56,769,397 1,581 102,791,027 159,560,424 166,375,424 28,100
2001 5,622 58,007,912 1,598 100,749,313 158,757,225 166,133,715 27,400
2002 5,625 56,913,013 1,546 87,355,584 144,268,597 151,502,672 26,300
2003 5,622 56,723,524 1,556 88,397,684 145,121,208 153,472,585 25,900
2004 5,603 57,332,811 1,558 88,063,078 145,395,889 150,586,782 27,600
2005 5,616 56,815,618 1,586 88,428,512 145,244,130 153,306,333 27,000
2006 5,652 59,870,257 1,599 92,289,675 152,159,932 159,543,140 28,900
2007 5,677 62,275,248 1,626 92,527,557 154,802,805 159,728,689 29,000
2008 5,731 65,977,138 1,615 93,363,129 159,340,267 166,969,117 30,400
2009 5,736 66,565,425 1,583 91,581,241 158,298,262 167,349,082 30,500
2010* 5,791 35,632,047 1,642 46,045,466 81,677,513 81,930,956 -
* 2010 data is through June
The graph below depicts the seasonal consumption patterns for Ketchikan.
Ketchikan - Seasonal Sales Patterns
Residential Sales
Non-Residential SalesTotal Sales
0%
2%
4%
6%
8%
10%
12%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 17 of 35 7/21/2010
Ketchikan’s Need for Additional Capacity
Demand on KPU’s electrical system is increasing as oil heat is converted to electric heat and as
new development occurs. Figure 4-1 (see page 28) contains a list of new loads added since
2008 and known loads that are projected to be added through 2013. The list shows that, in the
past two heating seasons (2008-2010), 1,881 kVA has been added to KPU’s system. This is the
level at which services are installed, which is slightly above the expected peak. An additional
4,573 kVA is projected to be added in the next two heating seasons (2010-2012), including 1000
kVA from a new community pool.
The chart below illustrates how these new loads could push peak demand to and above the 38
MW maximum combined hydro capacity of KPU and SEAPA. In 2011/2012, peak demand is
expected to approach 35 MW. By 2012/2013, planned heating conversions by the Ketchikan
Gateway Borough School District will add 4.6 MW, pushing peak demand to 39.6 MW. At
present, KPU would be able to meet the shortfall only by diesel generation.
27.8 27.2
29.1 29.2 30.4 30.5 32.0
35.0
0
5
10
15
20
25
30
35
40
2004 2005 2006 2007 2008 2009 2010/11
Heating
Season
2011/12
Heating
SeasonMWPeakNew Load
2009 Peak +
1.5 MVA (MW)
new load
identified for
2010-2011
winter
heating
season.
Residential
conversions
not identified.
2009 Peak +
1.5 MVA (MW)
new load
identified for
2010-2011 +
3.0 new load
for 2011-2012
winter
heating
seasons.
Residential
conversions
not identied.
KPU and SEAPA Hydro Capacity 38 MW
HDD=7588HDD=7740HDD=7629HDD=7797
HDD=6975HDD=7043
(HDD = Annual Heating Degree Days)
It is expected that the Whitman Lake Project will come on-line in 2013, just in time to meet
Ketchikan’s capacity shortfall. The hydrology of Whitman Lake fits KPU’s capacity needs well,
with excess water available to support peak demands during the winter heating season.
Ketchikan’s Need for Additional Generation
Over the past two years, Ketchikan has experienced an estimated load growth of 3% to 4% per
year. Figure 4-2 (see page 28) presents graphs of system loads normalized by heating-degree-
days, for four representative sets of heating-degree-days. These indicate a rate of increase
ranging from 3.3% for days with a heating-degree-day index of 33 to 6.6% for days with a
heating-degree-day index of 26.
In June 2009, SEAPA predicted that energy from the Tyee Lake and Swan Lake projects will be
fully subscribed by 2015 (SEAPA Board Meeting, Petersburg, Alaska). According to SEAPA,
“the significance of the energy analysis is not that the STI system will crash into blackness in
2015…[it] means KPU will burn diesel… Why KPU? Because Petersburg and Wrangell have the
rights to the dedicated output of Tyee, and Tyee supplies the energy, deemed additional
dedicated which meets KPU’s load growth above the Swan dedicated amounts.”
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 18 of 35 7/21/2010
This prediction was based on the expectation of 5% load growth in the communities of
Ketchikan, Wrangell and Petersburg. However, more recent SEAPA data from 2010 shows that
demand has increased at an even greater rate than anticipated. In June 2009, SEAPA predicted
that in 2010, Tyee Lake would have an excess 42,600,000 kW-hr available for future load
growth. However, in June 2010, the actual energy available was only 31,400,000 kW-hr.
Timeline for the Whitman Lake Project vs. Other Alternatives
KPU has been issued a FERC license to construct the Whitman Lake Project and must begin
construction by February 2013 or surrender its FERC license. If the Whitman Lake Project is not
constructed, it will be a significant lost opportunity for Southeast Alaska.
There are no other projects that may be added to the SEAPA interconnected system that are
licensed and as near to shovel-ready as the Whitman Lake Project. The environmental studies,
permitting and licensing process for Whitman took 12 years. Even after identification of the next
FERC jurisdictional resource, it will be at least ten years before another project would be
operational. Ketchikan’s and SEAPA’s available renewable energy resources will be exceeded
before that time.
While KPU fully supports the creation of an Integrated Resource Plan (IRP) for Southeast
Alaska, Ketchikan cannot wait for completion of the IRP before moving ahead with construction
of the Whitman Lake Project. If construction does not begin by February 2013, Ketchikan loses
its FERC license, many years of planning, and a valuable renewable energy resource for
Southeast Alaska.
Expanded Energy Market
Locate throughout Southeast Alaska, but not yet interconnected to the region’s renewable
energy resources are communities comprising an estimated additional 56.65 MW of potential
regional interconnected load. These communities are dependent on diesel fuel to provide firm
power, as a backup source in some and as primary in others.
Project Impact on Energy Customers
• Reduce reliance on diesel generated power, reducing energy cost for customers
• Increase system stability
• Increase capacity for new economic development
• Improve local environmental conditions by reducing greenhouse gas emissions
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
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 19 of 35 7/21/2010
The Whitman Lake Project will develop hydroelectric power by utilizing an existing dam. New
construction includes a powerhouse with two Francis turbine/generator units, penstocks, intake,
creek diversion with pipeline, tailrace, valve house, head tank, access roads, pressurized water
supply line to hatchery, switchyard, and a transmission line.
Optimum installed capacity 4.6 MW (3.9 MW Unit 1, 700 kW Unit 2)
Anticipated capacity factor Unit 1 = 0.3, Unit 2 = 0.7
Anticipated annual generation 16,000,000 kWh
Anticipated barriers None
Basic integration concept Electric power from Whitman Lake will be integrated
with KPU’s existing resources to serve current and
future loads, both locally and in the Southeast Alaska
region.
Delivery methods Electric power from the Whitman Lake Powerhouse will
be transmitted overland via a 1,500-foot-long 34.5 kV
transmission line to an existing transmission line.
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 Whitman Lake Project boundary encompasses approximately 180 acres, the majority of
which (172.3 acres) is federal land managed by the U.S. Forest Service (USFS). The project
also involves 0.24 acres of federal land managed by the Bureau of Land Management (BLM),
and an easement of 4 acres on land owned or managed by the Alaska Department of Natural
Resources (ADNR). KPU has an agreement with the Alaska Mental Health Trust to purchase
3.67 acres of Mental Health Trust land.
• ADNR land (U.S.S 3385 Lot 107 & State Community Grant Property): KPU has obtained
an easement (ADL 107151).
• BLM land (U.S.S. 3385 Lot 106): KPU has submitted an application for easement.
• USFS land: KPU has submitted an application for Special Use Authorization. Roadless
area construction has been approved by the Secretary of Agriculture (5/13/2010).
• Alaska Mental Health Trust land (U.S.S. 3385 Lot 112): KPU is purchasing this
property.
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
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 20 of 35 7/21/2010
Permits/Approvals Received
• FERC License, Project No. 11841, issued March 2009
• Easement AS 38.05.850
• Water Rights – LAS#23222 and LAS#23223
• DNR Land Easement, ADL#107151
• USACE Nation Wide Permit No. 17, Hydropower Projects
• POA-1998-1027, Whitman Lake, Ketchikan Public Utilities
• Title 16 Fish Habitat Permit FH08-VII-0027
• USFS secretarial approval to construct in roadless area (August 2010)
Permits Pending
• USFS Special Use Authorization (application submitted June 2010, expected issuance
Fall 2010)
• FERC-Portland Regional Office design approval and authorization to construct
No barriers are foreseen.
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
As a requirement of the FERC licensing process, KPU prepared a Draft Environmental
Assessment (DEA) for the Whitman Lake Project in accordance with the Federal Power Act and
the National Environmental Protection Act. FERC subsequently issued a Final Environmental
Assessment (FEA) on July 2, 2008, prior to issuing a license for the Whitman Lake Project on
March 17, 2009. The environmental issues that are identified in the EA, FEA and addressed in
the project license are summarized below.
Threatened or Endangered Species
None in vicinity of the project
Habitat Issues
• Whitman Lake. Whitman Lake water will continue to be delivered to the Whitman Lake
Hatchery. Changes in reservoir management will not adversely affect the Dolly Varden in
Deer Creek, the only significant tributary to Whitman Lake.
• Whitman Creek. Whitman Creek to its confluence with Achilles Creek is currently
dewatered approximately 35% of the time; however, under terms of a Settlement
Agreement (February 2008), KPU will release an instream flow into Whitman Creek to
enhance fish habitat.
• Achilles Creek. Under terms of the Settlement Agreement, KPU will release an instream
flow to Achilles Creek and implement a Terrestrial Species Connectivity Plan that has
been developed for wildlife crossings along the Achilles Creek pipeline.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 21 of 35 7/21/2010
• KPU has developed a Nesting Survey Plan. The plan addresses surveying for newly
constructed marbled murrelet, goshawk, and bald eagle nests prior to construction, as
well as reporting, agency consultation and contingency measures for protection of avian
species during project construction. A survey conducted in May 2010 did not identify
signs of these birds within the project area.
Wetlands and other protected areas
KPU provided a Jurisdictional Wetlands Deliniation Report to the US Army Corps of Engineers
(USACE) and will work with the USACE to avoid the identified wetlands.
Archaeological and historic resources
KPU has developed and is implementing a Historic Properties Management Plan for the
Whitman Lake Project. KPU has conducted a HABS/HAER for a shed potentially eligible for the
National Register of Historic Places. During construction, KPU will avoid disturbing the area
occupied by the shed.
Land development constraints
There are no identified constraints. The Whitman Lake Project has received approval from the
Secretary of Agriculture for construction in a designated roadless area, and will occupy National
Forest Service lands under the terms and conditions of a Special Use Authorization issued by
the USFS.
Telecommunications interference
Not applicable
Aviation considerations
Not applicable
Visual, aesthetics impacts
KPU will comply with terms and conditions of its easement for use of State lands, and the
Special Use Authorization for use of National Forest System lands. KPU has developed in
consultation with state and federal agencies, and will implement, a Scenery Management Plan
and Vegetation Management Plan.
No potential barriers are identified at present.
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
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 22 of 35 7/21/2010
Total project cost: $19,150,000
Cost for this phase $16,500,000
Requested grant funding: $ 2,000,000
Applicant matching funds: $14,500,000
Identification of other funding sources: In the event that other grants are not available, it is
expected that KPU will issue municipal bonds or seek other funding options to support the
$14,500,000 matching funds.
Projected capital cost: On the basis that municipal bonds are issued to fund the local match, the
addition of financing costs to the total project cost results in an estimate capital cost of
$22,310,000.
Projected development costs: $ 2, 650,000
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.)
Operating and Maintenance (O&M) costs for the Project are estimated to be $416,000, based on
costs for other KPU-owned hydroelectric facilities. Items included in the overall O&M cost are
equipment maintenance, administrative labor, insurance and interim replacements.
KPU is not requesting grant funding for O&M costs, which will be funded through electric rates.
4.4.3 Power Purchase/Sale
The power purchase/sale information should include the following:
• Identification of potential power buyer(s)/customer(s)
• Potential power purchase/sales price - at a minimum indicate a price range
• Proposed rate of return from grant-funded project
Identification of potential power buyer(s)/customer(s)
In 2009, KPU supplied power to 7,319 customers in the City of Ketchikan and Ketchikan
Gateway Borough. Power from the Whitman Lake Project will help meet the demand of current
and future customers.
Potential power purchase/sales price
KPU proposes to sell power to its ratepayers under the rates approved by the City Council and
published in the Ketchikan Municipal Code. Current 2010 electric rates are:
• 9.58 cents/kWh residential
• 8.97 cents/kWh commercial
• 8.31 cents/kWh industrial
In addition to the rates listed above, a diesel energy surcharge is applied to recover the cost of
fuel when diesel generation is required to meet demand or peak loads.
KPU estimates the first year cost of power to be $0.11/kWh.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 23 of 35 7/21/2010
Proposed rate of return from grant-funded project
KPU is a municipal utility and does not earn a rate of return from any of its projects.
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.
See the Cost Worksheet at Attachment 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 annual fuel displacement (gal and $) over the lifetime of the project: Generation
from the Whitman Lake Project will displace approximately 1,000,000 gallons/year of diesel fuel
generation or over $3,000,000/year at the current price of $2.81/gallon. Diesel generation will be
required to meet an expected 6 MW peak load shortfall in the hydro system due to new
construction and anticipated oil-to-electric heat conversions. Without additional hydro capacity, it
is expected that yearly diesel consumption will continue to increase.
Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price,
RCA tariff, or cost based rate): None
Potential additional annual incentives (i.e. tax credits): KPU does not propose to apply for
additional annual incentives.
Potential additional annual revenue streams (i.e. green tag sales or other renewable
energy subsidies or programs that might be available): Not applicable
Non-economic public benefits to Alaskans over the lifetime of the project
• Replacement of the aging water supply system of the SSRAA Whitman Lake Hatchery,
providing increased water quantity, reliability and redundancy to a facility that is critical to
regional commercial and sport fishing.
• Increased capacity to support new construction and customer conversions from oil to
electric heat.
• Reduced reliance on diesel fuel to generate electric power, resulting in less greenhouse
gas emissions.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 24 of 35 7/21/2010
• Enhanced electrical system stability and reliability, reducing power outages.
• A more steady and predictable source of water for the Ketchikan Gateway Borough’s
Mountain Point Water Utility through improved water management in the Whitman Creek
watershed.
• Enhanced fish habitat through release of water to Whitman Creek.
• Availability of low-cost power to attract new economic development to the borough.
• New jobs created during construction.
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
Business structure: Ketchikan Public Utilities (KPU) was created in 1932 when the City of
Ketchikan purchased the Citizen’s Light and Power Company, which had delivered power to
Ketchikan since 1903. KPU is a municipally-owned public utility that provides municipal water
supply and telecommunications services as well as electricity. A copy of the Ketchikan Municipal
Code, Title 11, Public Utilities, Chapter 11.04 General Provisions is attached to this application
(Attachment G).
KPU will be the sole owner and operator of the Whitman Lake Project. It will be integrated into
the KPU Electric Division maintenance and operations program for its existing facilities.
O&M financing: KPU will fund the estimated $416,000 annual O&M costs for the Whitman Lake
Project through electric rates. Items included in the overall O&M cost for the project include
equipment maintenance, administrative labor, insurance and interim replacements.
Operational issues: The Whitman Lake Project will be operated in a coordinated fashion with
the Whitman Lake Hatchery to provide a year-round, reliable, temperature-controlled water
supply to the hatchery. In order to accomplish this, Unit 2 (700 kW) will be operated for the
primary purpose of supplying water to the hatchery. Unit 1 (3,900 kW) will be operated with the
primary purpose of generating power.
Operational costs and on-going support for back-up or existing systems: O&M costs of the
project are estimated to be $416,000 annually. Items included in this cost are equipment
maintenance, administrative labor, insurance and interim replacements. There are no additional
costs associated with back-up or existing systems. The existing KPU system will continue to
include back-up diesel generation.
Reporting commitment: KPU is committed to reporting the savings and many benefits from this
low-cost, clean, renewable resource as a requirement of this Grant Approval and as a showcase
renewable energy project. KPU will submit periodic operation and maintenance reports, including
actual O&M, fuel and equipment costs; O&M measures and schedule; energy output; project
availability; and efficiency;
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 25 of 35 7/21/2010
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.
Project accomplishments and construction readiness
All reconnaissance and feasibility studies have been completed. KPU has applied for necessary
resource and land use permits and was issued a FERC license for the Whitman Lake Project on
March 17, 2009.
Final design is well underway and is expected to be completed by January 1, 2011. Following
approval of the design drawings and specifications, and completion of the bid documents, it is
expected that contractors/vendors will be selected and contracts awarded by May 1, 2011.
KPU intends to order major equipment (turbines, generators, valves, etc.) and begin to uplands
work (clearing, road construction, pipeline installation, intake construction, diversion construction,
etc.) in July 2011.
Previous grant awards
KPU received an AEA Round I grant for $1,300,000 (Whitman Lake Hydroelectric Construction,
reconnaissance). KPU is submitting reports as required by the Grant Agreement executed on
10/13/2009, grant agreement number 2195441.
SECTION 8– LOCAL SUPORT
Discuss what local support or possible opposition there may be regarding your project. Include
letters of support from the community that would benefit from this project.
See Attachment D, which contains letters demonstrating local support for the Whitman Lake
Project from the following community organizations:
• Ketchikan Gateway Borough
• KGB School District
• Southern Southeast Regional Aquaculture Association
• OceansAlaska Marine Science Center
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
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 26 of 35 7/21/2010
From 1997 through July 2010, KPU has expended $1,953,873 to accomplish Phases I through
III of the Whitman Lake Project (reconnaissance to design). It is expected that $2,650,000 will
be spent through January 1, 2011 to complete final design. Of this amount, $1,300,000 is
funded by a Renewable Energy Fund Round I grant. The remaining $1,350,000 is supported
out of KPU operating revenue.
The total construction cost of Phase IV Construction is estimated to be $16,500,000. In this
application, KPU requests grant funding in the amount of $2,000,000. Other state grants and/or
municipal bonds will fund the remaining $14,500,000.
The Total Project Cost of the Whitman Lake Project (Phases I through IV) is estimated at
$16,500,000 + $2,650,000 = $19,150,000.
Lacking grant funding from other sources, it is expected that KPU will issue municipal bonds to
raise the funds necessary to support a local match of $14,500,000. On this basis, the addition
of the financing costs to the Total Project Cost results in an estimated Total Capital Cost of
$22,310,000.
An estimate of budget costs by milestones is provided on the Grant Budget Form in
Attachment C.
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 28 of 35 7/21/2010
Application Figures and Tables
Figure 2-1: Project Location Map
Figure 3-1: Detailed Construction Schedule
Figure 4-1: Known Load Growth
Figure 4-2: Load Growth by HDD
IDTask NameDurationStartFinish1CONSTRUCTION857 daysMon 5/10/10Tue 9/3/132Nesting survey10 daysMon 5/10/10Fri 5/21/103Agency notification and consultation of nesting survey results10 daysMon 5/24/10Fri 6/4/104Equipment Procurement Contract290 daysFri 7/1/11Thu 8/9/125Submittals40 daysFri 7/1/11Thu 8/25/116Manufacture embedded parts90 daysFri 7/15/11Thu 11/17/117Manufacture remaining parts280 daysFri 7/15/11Thu 8/9/128Construction & Installation Contract390 daysFri 7/1/11Thu 12/27/129Valve procurement80 daysFri 7/1/11Thu 10/20/1110Pipe procurement80 daysFri 7/1/11Thu 10/20/1111Mobilize5 daysMon 7/18/11Fri 7/22/1112Offices and shops5 daysMon 7/25/11Fri 7/29/1113Powerhouse and Headtank (January - December)319 daysMon 8/1/11Thu 10/18/1214Site survey5 daysMon 8/1/11Fri 8/5/1115PH excavation and dewatering10 daysMon 9/5/11Fri 9/16/1116Foundation - Phase 120 daysMon 9/19/11Fri 10/14/1117Structural framing and crane runway20 daysMon 10/17/11Fri 11/11/1118Siding, roofing, architectural treatments20 daysMon 11/14/11Fri 12/9/1119Station services (mechanical & electrical)20 daysMon 12/12/11Fri 1/6/1220Hatchery headtank and valve house45 daysFri 8/26/11Thu 10/27/1121Foundation w T/G embedments - Phase 2 10 daysFri 11/18/11Thu 12/1/1122Tailrace construction30 daysFri 12/2/11Thu 1/12/1223Equipment installation50 daysFri 8/10/12Thu 10/18/1224Access Roads and Laydown Areas70 daysMon 8/1/11Fri 11/4/1125Hatchery laydown area construction20 daysMon 8/8/11Fri 9/2/1126Survey Whitman Dam access road10 daysMon 8/1/11Fri 8/12/1127Survey Achilles access road5 daysMon 8/15/11Fri 8/19/1128Whitman Dam access road clearing and grubbing20 daysMon 8/15/11Fri 9/9/1129Whitman Dam access road and laydown area20 daysMon 9/12/11Fri 10/7/1130Achilles Diversion access road clearing and grubbing10 daysMon 9/12/11Fri 9/23/1131Achilles Diversion access road and laydown area20 daysMon 10/10/11Fri 11/4/1132Pipelines114 daysMon 8/1/11Thu 1/5/1233Survey penstock alignment10 daysMon 8/1/11Fri 8/12/1134Penstock alignment clearing20 daysMon 8/15/11Fri 9/9/1135Site preparation at dam (access, safety, etc)5 daysMon 8/8/11Fri 8/12/1136Unit 1 intake installation10 daysMon 8/15/11Fri 8/26/113748", 30", and 12" pipelines installation, incl. bypasses to headtank50 daysFri 10/21/11Thu 12/29/1138Pipeline pressure tests5 daysFri 12/30/11Thu 1/5/1239Connection to Existing Pipelines (June)21 daysFri 6/1/12Fri 6/29/1240Connect new piping to existing piping20 daysFri 6/1/12Thu 6/28/1241Complete connection1 dayFri 6/29/12Fri 6/29/1242Unit 2 and Deep Intake (June)20 daysFri 6/1/12Thu 6/28/1243Replace existing variable elevation intake10 daysFri 6/1/12Thu 6/14/1244Replace deep water intake15 daysFri 6/1/12Thu 6/21/1245Replace dam valve house piping (see assumptions)10 daysFri 6/1/12Thu 6/14/1246Replace dam valve house10 daysFri 6/15/12Thu 6/28/1247Achilles Diversion25 daysMon 7/2/12Fri 8/3/1248Achilles diversion conduit clearing5 daysMon 7/2/12Fri 7/6/1249Achilles diversion15 daysMon 7/2/12Fri 7/20/1250Achilles diversion conduit10 daysMon 7/23/12Fri 8/3/1251Testing and Close-out50 daysFri 10/19/12Thu 12/27/1252Equipment testing15 daysFri 10/19/12Thu 11/8/1253Whitman Creek streamgage10 daysFri 11/9/12Thu 11/22/1254Cleanup and demobilization10 daysFri 11/23/12Thu 12/6/1255Close-out15 daysFri 12/7/12Thu 12/27/1256Project Startup0 daysThu 12/27/12Thu 12/27/1257Hatchery Improvements90 daysWed 5/1/13Tue 9/3/13JunJulAugSepOctNovDecJanFebMarAprMayJunJulAugSepOctNovDecJanFebMarQtr 3, 2011Qtr 4, 2011Qtr 1, 2012Qtr 2, 2012Qtr 3, 2012Qtr 4, 2012Qtr 1, 2013TaskCritical TaskProgressMilestoneSummaryRolled Up TaskRolled Up Critical TaskRolled Up MilestoneRolled Up ProgressSplitExternal TasksProject SummaryGroup By SummaryDeadlineWhitman Lake Hydroelectric ProjectFigure 3-1. Detailed Construction ScheduleConstruction Schedule (2010-09-07).mpp Page 1 of 1 Notes:1) Hatchery improvement project is not included
Known Load Growth 2008-2013
2008-2009 Winter AMHS Maintenance 75
Heating Season - 826kVA Berth 3 (Seasonal) Winter Peak 400
Cedar Point 21 Jefferson Way 104
Cedar Point 25 Jefferson Way 172
Tongass Marine Store 75
2009-2010 Winter Evergreen Terrace 215
Heating Season - 1,055 kVA Channel Electric Bldg 75
Harbormaster Condos 100
KGB Maintenance Facility 25
KPU Water UV Plant 200
Rhineco Inc 150
Smart Construction 30
STG Vol Fire Dept 40
White Cliff Building 220
2010-2011 Winter MUTTC Cape Fox 35
Heating Season - 1,548 kVA AK Rainforest Bunkhouse 150
AMHS Admin Ops 38
Eddystone Rock & Readymix 225
Forest Service Warehouse 300
KIC Elder Housing 300
Opportunity House 150
Schoenbar Park Apts 350
2011-2012 Winter KGB Pool (in addition to Rec Center)1000
Heating Season - 3,025 kVA*KGB Whitman Booster Station 100
KIC A&T Facility 225
Northland - Stedman St 300
Northland - Tongass Ave 300
Pioneer Heights 300
Saxman Elder Housing 300
Saxman Water Treatment 100
School, Fawn Mountain 400
OceansAlaska (Phase I) *No Data Yet
2012-2013 Winter Schools, All Others (2012)4,600
Heating Season - 4,600 kVA*AMHS Admin & Yard - Ward Cove *No Data Yet
ASD Facility *No Data Yet
Emerald Forest Subdivision (Phase II)*No Data Yet
New City Fire Station *No Data Yet
New City Library *No Data Yet
OceansAlaska (Phase II)*No Data Yet
Note: demand kW and peak kVA are considered as singular unit
8/24/2010
Figure 4-1
Figure 4-2
Two-Year Load Growth
Representative Heating Degree Days
Two-Year Load Growth
Heating Degree Days: 26
6.6% rate of increase
400
420
440
460
480
500
520
540
560
580
Jan-08Jun-08Dec-08Jun-09Dec-09Jun-10Kilowatt-Hours
Two-Year Load Growth
Heating Degree Days: 29
4.8% rate of increase
400
420
440
460
480
500
520
540
560
580
600
Jan-08Jun-08Dec-08Jun-09Dec-09Jun-10Kilowatt-Hours
Two-Year Load Growth
Heating Degree Days: 31
3.8% rate of increase
400
420
440
460
480
500
520
540
560
580
600
Jan-08Jun-08Dec-08Jun-09Dec-09Jun-10Kilowatt-Hours
Two-Year Load Growth
Heating Degree Days: 33
3.3% rate of increase
400
420
440
460
480
500
520
540
560
580
600
1-Jan-0829-Jun-0826-Dec-0824-Jun-0921-Dec-0919-Jun-10Kilowatt-Hours
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 29 of 35 7/21/2010
ATTACHMENT A
Resumes
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 30 of 35 7/21/2010
ATTACHMENT 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. 700 kW at 0.7 capacity factor
3,900 kW at 0.3 capacity factor
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 Railbelt 1 grid, leave this section blank)
i. Number of generators/boilers/other Hydroelectric generators: 9
Internal combustion engines (diesel): 6
ii. Rated capacity of generators/boilers/other KPU system
• Ketchikan (hydro): 3 units @1,400 kW =
4.2 MW total
• Beaver Falls (hydro): 1 unit @ 1,000 kW
+ 2 units @ 2,000 kW = 5 MW total
• Silvis (hydro): 1 unit @ 2,100 kW
• Bailey (diesel): 2 units @ 3.5 MW + I unit
@ 5.45 MW + 1 unit @ 10.5 MW = 22.95
MW total
• North Point Higgins (diesel): 2 units
@1.6 MW = 3.2 MW total
SEAPA (interconnected w/Wrangell & Petersburg)
• Swan Lake (hydro): 2 units @11.25 MW =
22.5 MW total
• Tyee Lake (hydro): 2 units @11.25 MW =
22.5 MW total
iii. Generator/boilers/other type KPU owns and operates both hydroelectric and
internal combustion diesel generators.
iv. Age of generators/boilers/other Ketchikan (hydro): Unit 3 (installed 1923, rebuilt
1952), Unit 4 (1938), Unit 5 (1957)
Beaver Falls (hydro): Unit 1 (manufactured 1904,
rebuilt and installed 1947), Units 3 & 4 (1954)
Silvis (hydro): 1968
Bailey (diesel): Units 1 & 2 (1969), Unit 3 (1976),
Unit 4 (1998)
Swan Lake (hydro): Units 1 & 2 (1983)
Tyee Lake (hydro): Units 1 & 2 (1984)
v. Efficiency of generators/boilers/other The peak efficiency of the hydro turbines is about
85% for Units 3&4 at Beaver Falls, 95% for Silvis
and 90-94% for the units at Ketchikan
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
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $3.64 million (2009, for KPU-owned facilities)
ii. Annual O&M cost for non-labor $8.17 million (2009, for KPU-owned facilities)
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] 167,300,000 kWh (2009)
167,000,000 kWh (2008)
159,700,000 kWh (2007)
159,500,000 kWh (2006)
153,300,000 kWh (2005)
ii. Fuel usage
Diesel [gal] 899,437 gal (2009)
1,181,113 gal (2008)
174,783 gal (2007)
121,529 gal (2006)
87,645 gal (2005)
Other N/A
iii. Peak Load 30,500 kW (2009)
iv. Average Load 19,100 kW
v. Minimum Load 10,500 kW
vi. Efficiency Approx. 92%
vii. Future trends Winter peak load = 39,600 kW by 2013; 4-5% load growth
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] 75%
ii. Electricity [kWh] 14%
iii. Propane [gal or MMBtu] 5%
iv. Coal [tons or MMBtu] 0%
v. Wood [cords, green tons, dry tons] 2%
vi. Other 4%
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]
New hydropower facility with an installed capacity of 4.6
MW and average annual generation of 16,000,000 kWh
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 183,000,000 kWh
ii. Heat [MMBtu] N/A
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu] 5%
ii. Coal [tons or MMBtu] 0%
iii. Wood [cords, green tons, dry tons] 2%
Renewable Energy Fund Round 4
Project Cost/Benefit Worksheet
RFA AEA11-005 Application Cost Worksheet Page 3 7-21-10
iv. Other 4%
4. Project Cost
a) Total capital cost of new system $19,150,000
b) Development cost $2,650,000
c) Annual O&M cost of new system $416,000
d) Annual fuel cost N/A
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity 16,000,000 kWh / 14.5 kWh/gallon = 1,103,000 gallons/year
ii. Heat N/A
iii. Transportation N/A
b) Current price of displaced fuel 1,103,000 x $2.81/gallon = $3,099,430
c) Other economic benefits The improved reliability of the SSRAA hatchery water
supply will reduce the risk of losing the estimated
$46,000,000 annual economic value and 420 jobs that
SSRAA activity supports
d) Alaska public benefits
6. Power Purchase/Sales Price
a) Price for power purchase/sale First year project power cost is expected to be $0.11
per kWh.
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 1.6
Payback (years) $19,150,000 / ($3,099,430 - $416,000) = 7 years
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 31 of 35 7/21/2010
ATTACHMENT C
Grant Budget Form
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 Confirmation that all design and feasibility documents are complete 1/1/2011 Completion of bid documents 1/1/2011 Contract/vendor selection and award 5/1/2011 Construction Phase 1 – Equipment Procurement August 2012 $0 $4,520,000 Other State Grants and/or Municipal Bonds $4,520,000 Construction Phase 2 – Uplands Work June 2012 $2,000,000 $3,980,000 Other State Grants and/or Municipal Bonds $ 5,980,000 Construction Phase 3 – Powerhouse January 2012 $0 $3,390,000 Other State Grants and/or Municipal Bonds $3,390,000 Integration and Testing November 2012 $0 $1,030,000 Other State Grants and/or Municipal Bonds $1,030,000 Decommissioning old systems (hatchery) September 2013 $0 $1,330,000 Other State Grants and/or Municipal Bonds $1,330,000 Final acceptance, commissioning and start-up December 2012 $0 $200,000 Other State Grants and/or Municipal Bonds $200,000 Operations reporting July 2011 through December 2012 $0 $50,000 Other State Grants and/or Municipal Bonds $50,000 TOTALS $2,000,000$14,500,000 $16,500,000Budget Categories: Direct Labor & Benefits $50,000 In-Kind $50,000 Travel & Per Diem Equipment $8,570,000 Other State Grants and/or Municipal Bonds $8,570,000 Materials & Supplies Contractual Services $430,000 Other State Grants and/or Municipal Bonds $430,000 Construction Services $2,000,000 $5,370,000 Other State Grants and/or Municipal Bonds $7,370,000 Other $80,000 Other State Grants and/or Municipal Bonds $80,000 TOTALS $2,000,000$14,500,000 $16,500,000Applications should include a separate worksheet for each project phase (Reconnaissance, Feasibility, Design and Permitting, and Construction)- Add additional pages as needed
Renewable Energy Fund Grant Round IV Grant Budget Form 7-21-10 Project Milestones that should be addressed in Budget Proposal Reconnaissance Feasibility Design and Permitting Construction 1. Project scoping and contractor solicitation. 2. Resource identification and analysis 3. Land use, permitting, and environmental analysis 5. Preliminary design analysis and cost 4. Cost of energy and market analysis 5. Simple economic analysis 6. Final report and recommendations 1. Project scoping and contractor solicitation. 2. Detailed energy resource analysis 3. Identification of land and regulatory issues, 4. Permitting and environmental analysis 5. Detailed analysis of existing and future energy costs and markets 6. Assessment of alternatives 7. Conceptual design analysis and cost estimate 8. Detailed economic and financial analysis 9, Conceptual business and operations plans 10. Final report and recommendations 1. Project scoping and contractor solicitation for planning and design 2. Permit applications (as needed) 3. Final environmental assessment and mitigation plans (as needed) 4. Resolution of land use, right of way issues 5. Permit approvals 6. Final system design 7. Engineers cost estimate 8. Updated economic and financial analysis 9. Negotiated power sales agreements with approved rates 10. Final business and operational plan 1. Confirmation that all design and feasibility requirements are complete. 2. Completion of bid documents 3. Contractor/vendor selection and award 4. Construction Phases – Each project will have unique construction phases, limitations, and schedule constraints which should be identified by the grantee 5. Integration and testing 6. Decommissioning old systems 7. Final Acceptance, Commissioning and Start-up 8. Operations Reporting
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 32 of 35 7/21/2010
ATTACHMENT D
Letters of Support
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 33 of 35 7/21/2010
ATTACHMENT E
Authorized Signers Form
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 34 of 35 7/21/2010
ATTACHMENT F
Ketchikan City Council Resolution
Renewable Energy Fund
Grant Application Round IV
AEA11-005 Grant Application Page 35 of 35 7/21/2010
ATTACHMENT G
Ketchikan Municipal Code
Chapter 3.12 – Purchases and Sales
Chapter 11.04 – Public Utilities General Provisions
-------------
As to the authority of the city manager to contract for the purchase and sale of needed supplies, material and equipment,
see Charter §5-16, §5-17 and §5-19.
Chapter 3.12 Page 1 Ketchikan 8/2009
Title 3
REVENUE AND FINANCE
Chapter 3.12
PURCHASES AND SALES
Sections:
3.12.010 Contractual services defined.
3.12.012 Public improvement defined.
3.12.020 City manager or authorized personnel to make purchases.
3.12.030 When prior approval by the council is required.
3.12.035 Purchase of public improvements - when competitive bidding or quotations
are required.
3.12.040 Purchases of supplies, materials, equipment or services -- when competitive
bidding or quotations are required.
3.12.041 Awarding of competitive bids.
3.12.042 Competitive bid appeals process.
3.12.043 Competitive sealed proposals.
3.12.050 Purchasing--When competitive bidding or quotations are not required.
3.12.051 Professional service contracts.
3.12.055 Acquisition of real property, leases, easements and permits.
3.12.060 Sale or other disposition of real property or interest therein.
3.12.070 Sale or other disposition of personal property, or interest therein.
3.12.010 Contractual services defined. "Contractual services," for the purpose of this
chapter, means services performed for the city by persons not in the employment of the city, and
may include the use of equipment or the furnishing of commodities in connection with said services
under express or implied contract. Contractual services include travel; freight; express, parcel post,
postage; telephone; telegraph; utilities; rents; printing and binding; repairs, alterations, and
maintenance of buildings, equipment, streets and bridges, and other physical facilities of the city;
and other services performed for the city by persons not in the employment of the city. (Ord. 822 §l(part),
1975)
3.12.012 Public improvement defined. "Public improvement," as used in this Chapter,
means the erection, building, construction, placement, creation or expulsion of an improvement to
land. (Ord. 822 §l(part), 1975)
3.12.020 City manager or authorized personnel to make purchases. All purchases of
supplies, materials, equipment, and contractual services for the offices, departments, and agencies of
the city government, shall be made by the city manager or by other city personnel in accordance
with purchase authorization issued by the city manager. (Ord. 822 §l(part), 1975)
Chapter 3.12 Page 2 Ketchikan 8/2009
3.12.030 When prior approval by the council is required. Every contract for, or purchase
of, supplies, materials, equipment, contractual services, or public improvements for more than fifty
thousand dollars shall require the prior approval by motion or resolution of the council; and under
no circumstances may such contract or purchase be made without first obtaining the approval of the
council. (Ord.1151, §l, 1988: Ord. 822 §l(part), 1975)
3.12.035 Purchases of public improvements - when competitive bidding or quotations
are required. (a) Purchases of or contracts for public improvements with a cost of $5,000 or less
may be made on the open market without competitive bidding quotations, or solicitations, provided
that such purchases or contracts are for budgeted items or items previously approved by the council.
(b) Purchases of or contracts for public improvements with a cost in excess of $5,000,
but not more than $50,000, shall, at the option of the purchasing authority, be awarded either by
solicitation for written quotations made to at least three contractors or through the competitive
bidding or proposal process described in section 3.12.040(c), section 3.12.041, section 3.12.042, and
section 3.12.043.
(c) Except as provided in (d) below, purchases of or contracts for public improvements
with a cost in excess of $50,000 shall be awarded through the competitive bidding or proposal
process described in section 3.12.040(c), section 3.12.041, section 3.12.042, and section 3.12.043.
(d) Purchases of or contracts for public improvements may be awarded without notice
and without competitive bidding or proposals:
(1) When the public improvement can only be provided by a single contractor;
(2) When the public improvement can be purchased from another unit of
government at a price or rate determined by government authority;
(3) When the public improvement is purchased from a public utility;
(4) When the public improvements should be purchased from a specific
contractor in order to prevent incompatibility with previously purchased supplies, materials,
equipment or public improvements. For purposes of this subparagraph, the term "incompatibility"
is defined as: (A) the inability to interconnect, combine, interchange, or join, or (B) that which
causes substantial duplication in maintenance, expertise, or training or in the stocking of parts,
materials, supplies or replacements. Any purchase which is to be excluded from competitive
bidding by the authority of this subparagraph must be first approved by the council.
(5) When the public improvements are required on an emergency basis,
provided, however, that to the extent practical under the conditions of the emergency, the council
shall declare the emergency;
(6) When it is advantageous to the city to enter into a contract with a person,
firm or corporation for the same public improvement under substantially the same terms as such
person, firm or corporation is providing another municipal or state government, or the United States,
where such public improvements are being provided the other unit of government on the basis of
competitive bidding, or pursuant to a contract with or through such other government unit so that
the benefit of the competitive bidding accrues to the city;
(7) When competitive bidding has been followed, but only one, or no bids are
received, or all bids are rejected. In such a case, after council approval, the manager may proceed to
have the public improvements constructed without further competitive bidding;
(8) When additional public improvements beyond the scope of an existing
contract can be obtained by change order to the contract provided, however, that the existing
contract was awarded through the competitive bidding process, that the change order for each
additional public improvement does not exceed fifteen percent of the original bid price, and that the
council approves the change order;
Chapter 3.12 Page 3 Ketchikan 8/2009
(9) Notwithstanding any provision of this chapter, the council may also exempt
any particular purchase from competitive bidding or other requirements by a non-emergency
ordinance adopted pursuant to and as provided for in sections 5-16 and 5-17 of the city charter. (Ord.
1632, §1, 2009: Ord. 1291 §2, 1994)
3.12.040 Purchases of supplies, materials, equipment or services -- when competitive
bidding or quotations are required. (a) Purchases of, or contracts for, supplies, materials, equip-
ment, or contractual services, with a cost of ten thousand dollars or less in a single transaction may
be made on the open market without competitive bidding, quotations, or solicitations, provided that
such purchases or contracts are for budgeted items or items previously approved by the council.
(b) Except as otherwise provided in section 3.12.043 or section 3.12.050, purchases of
or contracts for supplies, materials, equipment, or contractual services, with a cost in excess of ten
thousand dollars but not more than fifty thousand dollars in a single transaction shall, at the option
of the city's purchasing authority, be made in the open market by written quotation or through the
competitive bidding process set out in subsection (c) of this section, section 3.12.041 and section
3.12.042, the competitive sealed proposals process set out in section 3.12.043 or the professional
services process set out in section 3.12.050. The city's purchasing authority shall solicit quotations
or offers from at least three persons, firms or corporations.
(c) Contracts over fifty thousand dollars.
(1) Except as otherwise provided in section 3.12.043 or section 3.12.050, before
any purchase of, or contract for, supplies, materials, equipment, or contractual services is made,
when the cost thereof is estimated to exceed fifty thousand dollars, the city purchasing authority
shall submit specifications and invitations to bid to at least three persons, firms, or corporations
dealing in and able to supply the same, or to a lesser number if there are not three dealing in and
able to supply the same. The purchasing authority shall also publish notice of the proposed purchase
and invitations to bid in a newspaper of general circulation within the city.
(2) When there are at least three persons, firms, or corporations that qualify as
local, as defined in subsection (c)(4) of this section, the purchasing authority is not required to, but
may submit invitations to bid to non-local persons, firms, or corporations. The purchasing authority
shall, however, submit invitations to bid to non-local persons, firms, or corporations when the
purchasing authority determines such action is necessary to secure bids or to create competitive
conditions, or when such action may result in a savings for the city.
(3) All bids shall be sealed and shall be opened in public at a time and place
designated in the notice inviting bids. Information which would reveal the number of bids received
and the identity of bidders shall not be released until after the time for submission of bids has
passed. The purchasing authority may repeatedly reject any and all bids, may proceed under
subsection 3.12.050(10) or may call for new bids as in the first instance, except that as an additional
requirement each of the bidders whose bids were rejected shall be timely notified of a call for new
bids and of the changes, if any, in the specifications or other requirements for such new bids.
(4) Local Bidder Preference Award. (A) Unless contrary to federal or state law
or regulation, a contract or purchase for supplies, materials, equipment or contractual services the
amount of which is less than two hundred thousand dollars shall be awarded to a local bidder where
the bid by such local bidder is in all material respects comparable to the lowest responsible non-
local bid if the amount bid by such local bidder does not exceed the lowest responsible non-local bid
by more than:
(i) Ten percent (10%) of the amount bid by the lowest responsible non-
local bidder if that non-local bidder’s bid is $100,000 or less;
Chapter 3.12 Page 4 Ketchikan 8/2009
(ii) Seven percent (7%) of the amount bid by the lowest responsible non-
local bidder or $10,000, whichever is less, if that non-local bidder’s bid is greater than $100,000 but
less than or equal to $200,000.
No local bidder preference will be allowed if the lowest responsible non-local bidder’s bid
exceeds $200,000. The council may by motion adopted prior to bid opening exempt any contract or
purchase from the local bidder preference set forth in the preceding sentence.
(B) "Local bidder," for purposes of the preceding paragraph means a
person who:
( i) Holds a current Alaska business license;
(ii) Submits a bid for goods or services under the name appearing
on the person's current Alaska business license;
(iii) Has maintained a place of business within the boundaries of
the Ketchikan Gateway Borough for a period of six months immediately preceding the date of the
bid; and
(iv) Is not delinquent in the payment of any taxes, charges or
assessments owing to the city of Ketchikan or the Ketchikan Gateway Borough on account of that
business.
(C) The manager may require such documentation or verification by the
person claiming to be a local bidder as is deemed necessary to establish the requirements of (B)
above. (Ord. 1632, §2, 2009: Ord. 1379 §1 & 2, 1997: Ord. 1296 §1, 1994: Ord. 1291 §3, 1994: Ord. 1255 §1, 1993: Ord. 1241 §1, 1992: Ord. 1053
§l, 1985: Ord. 1048 §l, 1984: Ord. 1031 §l, 1984: Ord. 956 §l, 1981: Ord. 886 §2, 1977: Ord. 822 §l (part), 1975)
3.12.041 Awarding of competitive bids. (a) All requests for bids or proposals shall
include clear and precise discussion of the specific evaluation factors to be used in awarding bids.
(b) All requests for bids or proposals shall be as detailed as possible without preventing
qualified bidders or proposers from submitting bids or proposals. Individual brand names will not be
specified in requests for bids or proposals unless no functionally equivalent products exist.
(c) All purchases that are competitively bid under Section 3.12.040 shall be awarded to
the responsive bidder whose bid or proposal is determined to be most advantageous to the city,
taking into consideration price and other evaluation factors as set out in the request for bid or
request for proposal. (Ord. 1184, §l, 1990)
3.12.042 Appeals process. (a) Unless it is decided to reject all bids or proposals, all
bidders or proponents under the competitive bidding or competitive sealed proposal procedures of
this chapter will be given a notice of intent to award the bid or proposal. The notice shall identify
the bidder or proponent whose bid or proposal is recommended for award, shall contain information
relating to all submitted bids or proposals, and shall inform the bidder or proponent of the appeals
process set forth in this section.
(b) Any bidder or proponent which has any objection to the recommended award of bid
or proposal and which claims to be the lowest responsible bidder or more qualified proponent shall
file a written notification of appeal with the city clerk. The notification of appeal shall specifically
state all of the reasons for the appeal, the specific action requested by the bidder or proponent, the
specific parts of the bid or proposal or bid or proposal documents on which the appeal is based, the
reasons the bidder or proponent claims to be the lowest responsible bidder or most qualified
proponent, and all statements, documents and other relevant materials which the bidder or
proponent will submit in support of its appeal. The notification of appeal shall be filed with the city
clerk by either:
(1) 5:00 p.m. on the Thursday one week prior to the city council meeting where
the bid or proposal is to be awarded; or
Chapter 3.12 Page 5 Ketchikan 8/2009
(2) within five calendar days from the date the notice of intent to award was
delivered to the bidder or proponent which filed the notification of appeal, whichever is earlier. In
no event, however, shall a bidder or proponent have less than two weekdays from the time it
receives the notice of intent to award until the time it is required to have filed a notification of
appeal. Not later than two days before the city council meeting where the bid or proposal is to be
awarded, the city clerk shall notify all other bidders or proponents of the appeal and of their right to
contest the appeal.
(c) The council shall hear the appeal and any responses or information from other
bidders or proponents. The council may then, without further opportunity for appeal, award the
contract to any bidder or proponent.
(d) A bidder or proponent which objects to the notice of intent to award a bid or
proposal, but which fails to timely and completely file a notification of appeal with the city clerk
shall have no right to appeal or contest the award of bid or proposal, and shall have no claim or
cause of action relating to the bid or proposal process, the bid or proposal documents and specifi-
cations, the bids or proposals themselves, or the award. A bidder or proponent which has submitted
the bid or proposal recommended for award but which does not respond to a notification of appeal
by either submitting a written response to each of the reasons for appeal or by presenting such
response at the council meeting when the appeal is heard, shall have no right to appeal or contest the
award of bid or proposal, and shall have no claim or cause of action relating to the bid or proposal
process, the bid or proposal documents and specifications, the bids or proposals themselves or the
award. The council may, in its discretion, consider any objection whether or not a complete or
timely notification of appeal or response has been filed or presented but any such consideration shall
be final and not subject to appeal, contest, claim or cause of action.
(e) The council or the manager may at any time exempt any award of bid or proposal
from all or any part of the appeals process set forth in this section provided that all bidders or
proponents are timely notified in writing of the exemption, the reasons for exempting the particular
award, the process which will be used in awarding a bid or proposal, the time at which any
objection to the award may be made, and the time at which an award of bid or proposal may be
made. (Ord. 1632, §3, 2009: Ord. 1291 §4, 1994: Ord. 1184, §2, 1990)
3.12.043 Competitive sealed proposals. (a) Subject to any prior approval by the council
under section 3.12.030, if the manager determines that use of competitive sealed bidding or other
procurement process under this chapter is not practicable, the city may procure supplies, materials,
equipment, public improvements, or contractual services by competitive sealed proposals under this
section.
(b) The manager shall solicit competitive sealed proposals by issuing a request for
proposals. The request for proposals shall state, or incorporate by reference, all specifications and
contractual terms and conditions to which a proposal must respond, and shall state the factors to be
considered in evaluating proposals and the relative importance of those factors. Public notice of a
requested for proposals shall be published in a newspaper of general circulation within the city
together with such other public notice as the manager may deem appropriate.
(c) Sealed proposals shall be designated as such on an outer envelope and shall be
submitted by mail or in person at the place and no later than the time specified in the request for
proposals. Proposals not submitted at the place or within the time so specified shall not be opened or
considered.
(d) Proposals shall be received at the time and place designated in the request for
proposals, and shall be opened so as to avoid disclosing their contents to competing proponents
during the process of negotiation. Proposals, tabulations, and evaluations thereof shall be open to
Chapter 3.12 Page 6 Ketchikan 8/2009
public inspection only after the issuance of a notice of intent to award the contract. Unless all
proposals are rejected, the manager shall issue a notice of intent to award the contract.
(e) In the manner provided in the request for proposals, the manager may negotiate with
those responsible proponents whose proposals are determined by the manager to be reasonably
responsive to the request for proposals. Negotiations shall be used to clarify and assure full
understanding of the requirements of the request for proposals. The manager may permit proponents
to revise their proposals after submission and prior to award to obtain best and final offers.
Proponents deemed eligible for negotiations shall be treated equally regarding any opportunity to
discuss and revise proposals. In conducting negotiations or requesting revisions, neither the
manager nor any other city officer or employee shall disclose any information derived from
proposals of competing proponents.
(f) If fair and reasonable compensation, contract requirements, and contract documents
can be agreed upon with the most qualified proponent, the contract shall be awarded to that
proponent.
(g) If fair and reasonable compensation, contract requirements, and contract documents
cannot be agreed upon with the most qualified proponent, the manager shall advise the proponent of
the termination of negotiations. If the proposals were submitted by one or more other proponents
determined to be qualified, negotiations may be conducted with such other proponents in the order
of their respective rankings. The contract may be awarded to the proponent then determined to be
most advantageous to the city.
(h) Awards shall be made by written notice to the proponent whose final proposal is
determined to be most advantageous to the city. No criteria other than those set forth in the request
for proposals may be used in proposal evaluation. If the manager determines that it is in the best
interest of the city to do so, the city may reject all proposals. (Ord. 1632, §4, 2009)
3.12.050 Purchasing--When competitive bidding or quotations are not required. (a)
The following may be purchased or contracted for without competitive bidding or soliciting quota-
tions:
(1) Supplies, materials, equipment, contractual services, the cost of which does
not exceed ten thousand dollars in a single transaction;
(2) Supplies, materials, equipment or contractual services which can be
furnished only by a single dealer, which have a uniform price wherever purchased or which are
telecommunications supplies, materials, or equipment purchased by KPU for retail sale or lease;
(3) Supplies, materials, equipment or contractual services purchased from
another unit of government at a price or rate determined by governmental authority;
(4) Supplies, materials, equipment or contractual services purchased from a
public utility at a price or rate determined by governmental authority;
(5) Contractual services of a professional nature, such as engineering,
architectural, legal, medical or consulting services;
(6) Supplies, materials, equipment or contractual services which should be
purchased from a specific source in order to prevent incompatibility with previously purchased
supplies, materials, equipment or contractual services. For purpose of this subparagraph, the term
"incompatibility" is defined as:
(A) the inability to interconnect, combine, interchange, or join; or
(B) that which causes substantial duplication in maintenance, expertise or
training or in the stocking of parts, materials, supplies or replacements. Any purchase which is to be
excluded from competitive bidding by the authority of this subparagraph which exceeds ten
thousand dollars, must first be approved by the council;
Chapter 3.12 Page 7 Ketchikan 8/2009
(7) Supplies, materials, equipment or contractual services which are required on
an emergency basis, provided, however, that to the extent practical under the conditions of the
emergency, the council shall declare an emergency.
(8) Placement or purchase of insurance;
(9) When it is advantageous to the city to enter into a contract with a person,
firm or corporation for the same supplies or services under substantially the same terms as such
person, firm or corporation is providing another municipal or state government, or the united States,
where such supplies or services are being provided the other government unit on the basis of formal
bids, price quotations or other competitive proposal procedure or pursuant to a contract with or
through such other government unit so that the benefit of the price quotation or other competitive
proposal accrues to the city;
(10) When competitive bidding has been followed, but only one, or no bids or
quotations, are received, or the bids or quotations are rejected. In such a case, after council approval,
the manager may proceed to have the supplies, materials, or equipment purchased, the services
performed or the public improvements constructed without further competitive bidding or
quotation;
(11) The purchase of used vehicles or equipment when such purchase has been
determined by the manager to be in the best interest of the city;
(12) The purchase of new equipment to be used at or in connection with the
Ketchikan Shipyard, when and under such terms and conditions as the council, in its sole judgment,
deems advantageous to the city;
(13) Notwithstanding any provision in this chapter, the council may also exempt
any particular purchase from competitive bidding or other requirements by a non-emergency
ordinance adopted pursuant to and as provided for in Sections 5-16 and 5-17 of the city charter. (Ord.
1291 §5-8, 1994: Ord. 1104 §1-3, 1987; Ord. 1103 §l, 1987; Ord. 822 §l(part), 1975)
3.12.051 Professional service contracts. (a) Definitions.
(1) Professional services as used in this section shall mean professional,
technical or consultant services that are predominantly intellectual in character and that:
(A) Include analysis, evaluation, prediction, planning or
recommendations, and
(B) Result in the production of a report, plan, drawings, or the
completion of a task.
Examples of professional service contractors include, but are not limited to:
accountants, architects, appraisers, engineers, land surveyors, financial consultants, attorneys,
planning consultants, economists, computer programmers and system analysts, insurance
consultants and risk analysts, insurance providers, and other specialized consultants.
(2) Request for proposals means a written solicitation for contract proposals by
prospective contractors that sets out the nature of the services to be performed or product to be
secured with sufficient information for a qualified prospective contractor to prepare a responsive
contract proposal for consideration and evaluation by the city.
(b) Professional service contracts generally; contract authority.
(1) The manager may award and sign, without prior approval of the council, any
contract for professional services if adequate funding is budgeted, except as provided in this subsec-
tion.
(2) Any proposed professional service contracts with an estimated cost in excess
of fifty thousand dollars shall be awarded by the council.
(3) The manager shall utilize a selection committee including the manager or
manager's designee, a department head, members of the American Society of Civil Engineers,
Chapter 3.12 Page 8 Ketchikan 8/2009
American Society of Mechanical Engineers, American Institute of Architecture and/or other
professional organizations and interested citizens as the manager deems appropriate to evaluate
proposals and select -the best qualified professional services contractor to provide the required
service. All meetings of selection committees shall be open to the public.
(c) Solicitation of proposals.
(1) When the city proposes to enter into a contract for professional services, it
shall:
(A) Publish a public notice soliciting proposals for the proposed
professional services contract at least two times in a newspaper of general circulation in the city and
post notice in such other location as the manager deems appropriate. The first notice shall be
published not less than twenty-one days before the deadline for submittal of proposals as announced
in the public notice and the second notice shall be published not less than seven days thereafter. The
notice shall include:
(1) A brief description of the proposed
project for which the city is seeking professional services;
(2) The procedure by which a person or firm interested in the
professional services contract may make a proposal to the city for consideration for the contract; and
(3) The deadline for submittals.
(2) The provisions of this section do not apply if:
(A) The manager demonstrates to the council that there is a single source
of the expertise or knowledge required, or that one person or firm can clearly perform the required
tasks more satisfactorily because of the person's or firm's prior work;
(B) The manager makes a determination that public necessity will not
permit delay incident to the procedures otherwise required by this section; or
(C) The service is to be provided by another government agency; or
(D) The estimated cost of the contract does not exceed fifty thousand
dollars.
(3) In addition to other criteria set forth in the request for proposals, the
following selection factors shall be considered by the city when it evaluates the proposals received:
(A) Specialized experience and technical competence of the person or
firm (including a joint venture or association) with the type of service required;
(B) Capacity of the person or firm to perform the work including any
specialized services, within the time limitations;
(C) Character, integrity, reputation, judgment, experience and efficiency
of the person or firm;
(D) Past record and performance on contracts with the city or other
governmental agencies and private industry with respect to such factors as control of costs, quality
of work and ability to meet schedules;
(E) Familiarity with the details of the project;
(F) Degree of local employment to be provided by the person or firm in
the performance of the contract by the person or firm; and
(G) Estimated cost of services.
(d) Professional services contract terms. Contracts may be lump sum, cost plus a fixed
fee, unit price, cost times a multiplier, or on such other terms as are deemed appropriate to the
project involved. (Ord. 1291 §9, 1994: Ord. 1186, §l, 1990)
3.12.055 Acquisition of real property, leases, easements and permits. (a) No real
property may be acquired by the city without first being specifically approved by the council. No
lease, easement or permit to use land may be acquired by the city for a payment in excess of five
Chapter 3.12 Page 9 Ketchikan 8/2009
thousand dollars without first being specifically approved by the council. The manager is
authorized to acquire from budgeted funds and without further council approval, leases, easements
or permits priced at less than the amount set forth above. For the purposes of this section the term
"price" means the cash paid to the seller plus the value of goods and services provided to the seller
which:
(1) Are given in consideration for the lease, easement or permit; and
(2) were not otherwise needed by the city at any time for its use of the lease,
permit or easement.
The provisions of this section shall not apply to land exchanges under section 3.12.060. (Ord.
1266 §1, 1993)
3.12.060 Sale or other disposition of real property or interest therein. (a) No real
property, or interest therein, of any value may be sold, leased, exchanged or otherwise disposed of
until the council has declared by motion or resolution that the real property, or interest therein, is
surplus, or unneeded, or that the transaction is otherwise in the best interest of the city.
(b) Except as otherwise provided in this chapter, the manager may sell, lease, exchange
or otherwise dispose of real property, or an interest therein, only after appraisal of the fair market
value thereof by a qualified appraiser obtained by the city, and the price shall be not less than the
fair market value plus the cost of the appraisal plus survey, platting, recording and other costs to the
city attendant to the transaction.
(c) Except when the disposition is otherwise exempt from competitive bidding, the
proposed disposition of real property, or interest therein, shall be advertised in a newspaper of
general circulation in the city to advise prospective buyers of the proposed disposition and to
provide an opportunity to submit such bids. All bids shall be sealed and shall be opened in public at
a designated time and place, except when the sale is by auction. The manager may repeatedly reject
all bids and advertise or give notice again. If a responsive bid at the minimum price set forth in
paragraph (b) is not received, the city manager may, within one year from the date bids were to be
opened, dispose of the property at such minimum price without further advertisement, bidding or
authorization. After one year from the date bids were to be opened, the city manager may dispose
of such property without further advertising, bidding or authorization if the price for the property is
not less than the fair market value as determined by an appraisal performed within one year prior to
the date of disposal by a qualified appraiser plus the costs of appraisal, survey, platting, recording
and other costs to the city attendant to the transaction.
(d) The manager, after council approval by motion or resolution, may sell, lease,
exchange or otherwise dispose of the following real property, or an interest therein, without giving
an opportunity for competitive bidding, subject to compliance with the provisions of section 5-17 of
the city charter:
(1) Real property, or an interest therein, to be exchanged for other real property,
or an interest therein, which is determined by an appraisal prepared by a qualified appraiser obtained
by the city to be at least equal in value to the city property or the interest therein that is to be
exchanged, or if the city's property is determined to be greater in value, if the difference is made up
in cash to the city. The person receiving the city property or interest to be exchanged shall pay the
cost of the appraisal, plus survey, platting, recording and all other costs to the city attendant to the
transaction;
(2) Sale, lease, donation, exchange or other transfer of real property, or an
interest therein, to or with another municipality, a state, or the United States, when and under such
terms and conditions as the council, in its sole judgment, deems advantageous to the city;
(3) Parcels of real property that are substandard in size or configuration under
existing zoning, which may be disposed of by sale or exchange to the legal owner of adjoining
Chapter 3.12 Page 10 Ketchikan 8/2009
property, with such adjoining parcel to be then replatted to incorporate therein such substandard
parcel sold or exchanged; provided, however, that the sale price or exchange value shall be at least
equal to the fair market value of the city property or interest therein transferred, which may be
determined by using the current assessed value of the property, or a comparable portion of such
property, as established by the Ketchikan Gateway Borough assessor, plus survey, platting,
recording and other costs to the city attendant to the transaction;
(4) Easements may be released to the legal owner of the servient property when
and under such terms and conditions as the council, in its sole judgment, deems advantageous to the
city.
(e) Notwithstanding any other provision herein, a sale, lease or other disposal of real
property, or interest therein, the value of which is more than thirty thousand dollars, must meet and
comply with all of the requirements of section 5-17 of the city charter.
(f) Real property sold, traded, or exchanged shall be conveyed by the city without
warranty.
(g) Notwithstanding any provision in this chapter, the council may also exempt any
particular contract, sale, lease, exchange, disposal or other transaction from competitive bidding or
other requirements by a non-emergency ordinance adopted pursuant to and as provided for in
sections 5-16 and 5-17 of the city Charter. (Ord. 1209, §1, 1991: Ord. 1142, §l, 1988: Ord. 1103, §3, 1987)
3.12.070 Sale or other disposition of personal property, or interest therein. (a) The
manager may sell or otherwise dispose of any surplus, obsolete or unneeded supplies, materials,
equipment or other personal property with a value of two thousand dollars or less, by giving notice
of each proposed disposition in such manner as he deems reasonable and appropriate; provided,
however, the manager shall not be required to give notice if the cost of giving notice exceeds the
value of the supplies, materials, equipment or other personal property.
(b) No supplies, materials, equipment or other personal property of a value of more than
two thousand dollars other than scrap metal may be sold or otherwise disposed of until the council
has declared, by motion or resolution, such property surplus, obsolete, unneeded, or that the
transaction is otherwise in the best interest of the city. (Ord. 1610, §1, 2008)
(c) Except as provided in subsection (a) of this section, or when the disposition is
otherwise exempt from competitive bidding, the proposed disposition of personal property, or
interest therein, shall be advertised in a newspaper of general circulation in the city to advise
prospective buyers of the proposed disposition and to provide an opportunity to submit such bids.
All bids shall be sealed and shall be opened in public at a designated time and place, except when
the sale is by auction. The manager may repeatedly reject all bids and advertise or give notice again.
(d) Personal property, or an interest therein, may, subject to the provisions of section 5-
17 of the city charter, be sold or otherwise disposed of without competitive bidding as follows:
(1) Supplies, materials, equipment or other personal property, or any interest
therein, may be sold or otherwise disposed of by the manager when the total value thereof, as
estimated by the manager, does not exceed collectively two thousand dollars.
(2) The manager may sell, lease, donate, exchange or otherwise dispose of
personal property, or an interest therein, to or with another municipality, a state or the United States
when and under such terms and conditions as the council, in its sole judgment, deems advantageous
to the city.
(e) Notwithstanding any other provision in this chapter, the council may also exempt
any particular contract, sale, lease, exchange, disposal or other transaction from competitive bidding
or other requirements by a nonemergency ordinance adopted pursuant to and as provided for in Sec-
tions 5-16 and 5-17 of the city Charter. (Ord. 1103 §5, 1987)
Chapter 11.04 Page 1 Ketchikan 7/2009
Title 11
PUBLIC UTILITIES
Chapter 11.04
GENERAL PROVISIONS1
Sections:
11.04.010 Rates and other provisions.
11.04.020 Written contracts for electric utility service.
11.04.030 Application for utility service.
11.04.040 Deposits.
11.04.050 Rendering and payment of bills.
11.04.060 Delinquent bills.
11.04.070 Complaint and billing disputes.
11.04.080 Pretermination procedures and disconnection of service.
11.04.090 Theft or diversion.
11.04.100 Resale of service.
11.04.110 Increase in rate to compensate for taxes.
11.04.120 Interruption of service and nonliability.
11.04.130 Inspections.
11.04.140 Rules regarding telecommunications service only.
11.04.150 Description of service.
11.04.160 Substandard conditions and service refusal.
11.04.170 Protective devices on premises.
11.04.180 Power factor.
11.04.190 Interference and equipment to limit voltage and current fluctuation.
11.04.200 Increased use of electricity.
11.04.210 Meter installation and metering.
11.04.220 Meter tests.
11.04.230 Requirements for relocation, replacement or service upgrades of
KPU facilities.
11.04.240 Fluoridation of city water.
11.04.010 Rates and other provisions. (a) The rates, terms, provisions and conditions
specified herein for and regarding electric power, water, and telecommunications service apply to
customers located, or to be located on, the electric, water, and telephone lines or systems of KPU
and are subject to change at any time. Complete schedules of all rates in effect shall be filed and
maintained at all times in the utilities business office and shall be available for public inspection
during regular business hours.
(b) In the event more than one rate schedule is applicable to any class of service, KPU
will call such fact to the attention of the applicant at the time application for utility service is made,
explain the several schedules, and the applicant shall designate which rate schedule is desired. The
1 For the electric, telecommunications, and water departments, see section 2.32.010. As
regards to accounting for the electric, water, and telecommunications systems, see the city
charter, section 8-1.
Chapter 11.04 Page 2 Ketchikan 7/2009
rate schedule so designated by the customer shall remain applicable until the customer gives written
notice specifying that another available rate schedule is desired, except as such schedule may
thereafter be modified or abolished by KPU. Customer changes in rate schedules shall not be
allowed more than once in any twelve-month period without the express approval of the utilities
manager. In the event a customer desires to receive utility service under a different schedule than
that under which service is currently being provided the different rate schedule shall not become
applicable until after the next regular meter reading following the date written notice by the
customer to change the schedule is received by KPU.
(c) In the event new, additional, or modified rates or rate schedules are adopted, KPU
will take such measures as may be practicable to advise the customers who may be affected by such
new, additional, or modified rates or rate schedules that such rates have become effective. Such
notice of change of rates will include, but is not limited to, customer publications, local media, and
direct mailing.
(d) All rates are based on delivery of utility service to one location of one customer
unless otherwise stated in the rate schedule. Service for less than twelve months may be classified as
temporary and special arrangements required.
(e) The right is reserved by KPU to modify, with the approval of the city council, the
approved rates and/or regulations, when such modifications are deemed necessary, beneficial, and in
the public interest. Such modifications shall be for a specific reason and for a specified time period
and shall not to be construed as a substitute for, or an abrogation of the regular and generally applied
rates and/or regulations except during the specified period during which such modifications are to
be effective. (Ord. 1065 §3(part), 1985).
11.04.020 Written contracts for electric utility service. Notwithstanding the provisions of
Section 11.04.010, electric utility service provided to a single customer which is expected to be in
excess of one thousand two hundred kilowatts of peak demand, or five hundred thousand kilowatt
hours of energy per month, or other service requiring special expenditure, planning, or accommo-
dation by KPU, shall be provided pursuant to a written contract between the customer and KPU.
The terms and conditions of such contracts shall specify the rate schedule to be applied, and may
include, in addition to the provisions set forth in the applicable rate schedule, such additional
matters as the minimum and maximum term of service, minimum and maximum purchases, the
periods of notice required to be given prior to receiving or discontinuing service, and such other
terms, conditions and provisions as are deemed to be in the best interest of KPU (Ord. 1065 §3(part), 1985).
11.04.030 Application for utility service. (a) Each applicant for utility service shall
be required to complete and sign an application for utility service on a form provided by KPU.
(b) The application referred to in (a) above, and any information included thereon, shall
be used by KPU and the city finance department for the management and administration of the
customer's administrative account, financial accounting, recovery of payment for utility services,
and the city's own credit records and for no other purpose except as may otherwise be required by
law. (Ord. 1065 §3(part), 1985)
11.04.046 Deposits. (a) Prior to providing any utility services KPU may require a
security deposit from each applicant. In lieu of a security deposit, KPU may accept a credit card,
provided the credit card expires no sooner than 12 months from the date of application for service.
The customer’s credit card shall be charged a refundable security deposit should the customer fail to
pay his KPU bill by the due date during the first 12 months of service. The customer’s credit card
number shall also be retained by KPU during the first 12 months of service and will be charged for
any remaining balance due, should the customer terminate service within the first 12 months of
Chapter 11.04 Page 3 Ketchikan 7/2009
service and fail to pay the final bill by the bill due date. Should the customer be unable to provide a
credit card, KPU may accept in lieu of a security deposit a letter issued by the applicant's last
previous utility not more than six months prior to the date of the application under consideration by
KPU stating that the applicant was a customer of such utility within six months of the date of the
letter and that at all times during the last six months of service the customer's utility service account
was current and at no time delinquent in payment. If an applicant for service posts a security deposit
and thereafter submits a letter of good credit standing to KPU and such letter is accepted by KPU,
the security deposit will be refunded if the customer's KPU utility account has not been delinquent.
If the customer's account has been in good standing and not delinquent during each of the
immediately preceding twelve months the security deposit will be refunded. If, after acceptance of a
good credit standing letter, or at any other time, a customer's account becomes delinquent, KPU
may, as a condition of continuing utility service, require the customer to make the security deposits
required herein.
(b) Minimum deposit: The minimum security deposit shall be as follows:
(1) Electric service $ 50.00
(2) Telecommunications service $ 50.00
(3) Water service (required only if applicant
is not also receiving, or applying for,
electrical or telecommunications service) $ 25.00
(c) Additional or new security deposits may be required when accounts become delinquent,
or conditions otherwise warrant, as determined by KPU. KPU shall be the sole judge in determining
the need for additional security deposits and the amount of such additional deposit. KPU reserves
the right to refuse to provide new services, and to terminate existing services, in the event security
deposits are not made as herein provided.
(d) The security deposits provided for herein shall accrue simple interest at the rate of five
percent per annum, which shall be credited to the customer's account. When utility services are
discontinued the security deposit, and any accrued interest, shall be applied first to any due and
unpaid amount of the customer's account, and the balance, if any, refunded by issuing a check to the
customer. Endorsement of the check shall be deemed to constitute an acknowledgement by the
customer of the receipt of the refund of the security deposit and to the release of KPU from Any and
all further claims regarding the deposit. (Ord. 1532 §3, 2005: Ord. 1123 §l, 1987: Ord. 1065 §3(part), 1985).
11.04.050 Rendering and payment of bills. (a) Bills for utility service shall be based on
meter registrations and be rendered monthly, or as may be required for opening or closing billings,
or as otherwise provided under applicable rate and tariff schedules.
(b) Reading of meters:
(1) Meters will be read as nearly as possible at regular monthly intervals. For billing
purposes each meter upon the customer's premises will be considered and billed separately and
readings from two or more meters will not be combined.
(2) Meter readings may be estimated a maximum of two consecutive months;
provided however, for remote areas, such as Gravina and Pennock Islands, meter readings may be
estimated for a maximum of three consecutive months. When estimates are made, the bill shall
clearly identify that the readings are estimated. In the event KPU access to a meter is denied or is
otherwise not provided, or made readily available, thereby requiring that the readings be estimated,
the customer will be given a notice after the second estimate that access must be provided or service
will be discontinued (see Section 11.04.210, meter installations for additional information).
Nonpayment of an estimated bill shall be treated the same as any other delinquency.
(c) Bills for utility services shall be mailed to the customer at the address shown on the
KPU records and are due and payable not later than twenty-five days after the billing date shown on
Chapter 11.04 Page 4 Ketchikan 7/2009
the bill. Such bills are the first notice to the customer that the amount shown is due and payable and
the bill shall become delinquent if not paid within twenty-five days after the billing date. Payment
shall be made at the KPU office or by mail. If a letter containing valid payment is postmarked
within twenty-five days after the billing date, the payment will be deemed to have been received by
KPU within the current period and will not be considered delinquent. (Ord. 1065 §3(part), 1985)
11.04.060 Delinquent bills. Bills not paid within twenty-five days after the date of the
billing are delinquent and subject to late payment charges. The late payment charge shall be five
percent of the amount of the delinquency. Accounts which are not on a special credit arrangement
will receive a past due (delinquent) notice incorporated into the bill for the following month. Failure
to receive mail is not a valid reason for nonpayment of the bill. Upon receipt of the delinquent
notice the customer shall either pay the amount due or make acceptable payment arrangements with
the city finance department. Failure to promptly pay the delinquent bill or make and comply with
the terms of acceptable credit arrangements for payment will initiate action to disconnect the utility.
(Ord. 1065 §3(part), 1985)
11.04.070 Complaint and billing disputes. Except as provided in (c) below, any person
that feels they have not been accorded fair and equitable treatment, or that disputes the accuracy of a
utility billing, may request and obtain a review of the matter pursuant to the procedure provided for
in paragraph (a) below if the complaint relates to the accuracy of a utility billing, or pursuant to the
procedure provided for in paragraph (b) below as to another type of utility complaint. A complaint
will be reviewed only if the person submits the complaint and follows the procedures provided for
herein.
(a) Billing Complaint. The procedure for reviewing a complaint regarding a billing shall
be as follows:
(1) Step 1. The complainant requests an informal conference with the city
finance department. Upon receipt of the request, a finance department employee shall be designated
to schedule and conduct an informal conference with the complainant. The complainant may be
accompanied to, and assisted at, the informal conference by a representative. The complainant shall
state their complaint and present any documents and arguments in support of their position. The
finance department employee assigned to the case shall review the matter with the complainant and
shall have the authority to make adjustments to the billing amount as necessary to assure the billing
is correct.
(2) Step 2. If the complaint is not resolved at Step 1, the complainant may
appeal the Step 1 decision to the city director of finance for further review by filing a written request
therefore not later than five days after the complainant is advised of the Step 1 decision. Upon
receipt of a timely request for a hearing the director of finance shall meet with the complainant,
review the matter, and advise the complainant of the decision.
(3) Step 3. If the dispute is not resolved at Step 2, the complainant may appeal
the matter to the utilities manager by filing a written request for a hearing with the utilities manager
not later than five days after the date the complainant is advised of the Step 2 decision. The utilities
manager shall review the matter and advise the complainant in writing of the decision and the
reasons therefore. The decision of the utilities manager shall be final.
(4) Step 4. If the decision of the utilities manager is to uphold any portion of the
billing, that portion of the billing that is upheld shall become due and shall be payable as determined
and specified by the utilities manager in his decision. In the event the portion of the billing that is
upheld is not paid as required, KPU shall proceed in the manner provided for delinquent utility bills.
Chapter 11.04 Page 5 Ketchikan 7/2009
(b) Complaints not Involving Billing. Except as provided in (c) below, a customer or
other person that has a complaint which is not a billing dispute reviewable under (a) above, may
submit the complaint for review pursuant to the following procedure:
(1) Step 1. The complaint may be made to an employee of KPU who shall either
attempt to resolve the complaint or refer the matter to another employee of KPU that is responsible
for the type of service, problem, or issue that is involved.
(2) Step 2. If the complaint is not resolved pursuant to Step 1 the employee shall
refer the matter to the head of the department that is responsible for the utility service or issue
involved, who shall meet with the complainant and make every reasonable effort to resolve the
matter.
(3) Step 3. If the complaint is not resolved at Step 2, the complainant shall have
the right to file a written request for a hearing before the utilities manager not later than five days
after the date of the decision by the department head. If the complainant files a timely request for a
hearing before the utilities manager, the complainant shall be advised of the date, time and location
of the hearing and of the right to bring documents and witnesses to assist in the presentation of the
complaint. The complainant shall also be advised that reasonably available KPU records relating to
the complaint, and KPU personnel with relevant information, will be brought to the hearing if
requested.
(4) Step 4. The hearing before the utilities manager shall be informal. The
hearing need not be recorded and the formal rules of evidence and other formal legal procedures
shall not apply. The complainant shall state their complaint with particularity and present any
documents, witnesses or other evidence and arguments in support of their position and may examine
any documents and witnesses presented by KPU. At the conclusion of the hearing, the utilities
manager shall render a written decision setting forth the reasons for the decision. The decision of the
utilities manager shall be final.
(c) If the grievance, dispute or complaint is a KPU personnel matter subject to the city
personnel rules or a collective bargaining agreement, or if there is some other specific procedure
that has been adopted or is made applicable for the review of the complaint or dispute, the
provisions of such personnel rules, collective bargaining agreement or other procedure shall be
applicable and govern such review and the matter shall not be reviewable or subject to the review
provisions of this section. (Ord. 1065 §3(part), 1985)
11.04.080 Pretermination procedures and disconnection of service. (a) In the event
utility bills are not paid as required, or any rules, regulations, standards, codes or other applicable
provisions are not complied with or are violated, the service may be terminated and the utility
disconnected. The pretermination and disconnect procedures shall be as hereinafter provided.
(b) Nonpayment of Bills. KPU shall take the following actions prior to disconnection of
utility service for nonpayment of bills:
(1) A past due notice shall be incorporated into the customer's normal billing
each time an account is delinquent. This notice shall inform the customer that the account is past
due and that the utility service is subject to being disconnected if the billing is not paid within seven
days after the date of such past due notice.
(2) If the account is not paid within seven days after the date of the past due
notice provided for in (1) above, a disconnect notice will be sent to the customer.
(3) The disconnect notice referred to in (2) above shall state that unless payment
is received within ten days after the date printed on the disconnect notice service will be
disconnected.
(4) A customer's electrical service will not be disconnected on a day when
KPU's offices are closed or on the day preceding a day when such offices are closed.
Chapter 11.04 Page 6 Ketchikan 7/2009
(5) Provisions for utility service reconnection:
(A) Utility service may be reconnected upon payment of the account
balance in full and the payment of any additional security deposit that may be required.
(B) Where scheduling, does not permit normal service reconnection on
the same day as requested, the customer may elect to pay an after-hours charge for obtaining
reconnection of service that day or service will be reconnected on the next available business day.
(6) Electric utility service will not be disconnected for nonpayment of bills in the
following situations:
(A) Life support equipment is used and is dependent on that utility
service for the operation of the apparatus;
(B) The customer presents evidence that establishes that such termination
will seriously affect the health or safety of the customer or of a member of the customer's household
provided the customer has made prior credit arrangements with KPU;
(C) The customer has made prior credit arrangements for payment and is
complying with the terms of such credit arrangement. Credit payment arrangements must specify
the payment dates, payment amount, and review dates. The credit arrangement shall be a
commitment by the customer to pay the delinquent portion of the bill on a specified date, or in equal
payments over a specified period of time that is agreeable with the credit personnel of the finance
department. If payments are not being made as agreed, service shall be subject to disconnection;
(D) For delinquency in the payment of utility service rendered to a prior
customer at the same premises where service is currently being provided, except in the instance
where the prior delinquent customer continues to reside on the premises.
(7) Exceptions to the provisions of this section regarding the manner, sequence,
or time for payment or disconnections of utility service may be granted by the city director of
finance or by the utilities manager.
(c) Violations of Rules and Regulations. KPU shall have the right to disconnect any
utility service that is found not to be in compliance with, or is in violation of, any rules, regulations,
standards or codes. Prior to disconnection the customer shall be given written notice of the nature of
the noncompliance or violation and advised that the utility service will be terminated if the violation
or noncompliance is not corrected within the time period that is specified in the notice. Unless a
different notice period is provided for in this title the period allowed for bringing the condition into
compliance, or to correct the violation, shall be not less than thirty days.
Such violations shall include, but are not limited to, the following:
(1) Failure of the customer to provide KPU with access to KPU metering or
other equipment, or to the property;
(2) The customer fails to comply with all applicable rules, regulations, standards
and codes, which pertain to the safe construction, operation and maintenance of utility facilities;
(3) Meter tampering;
(4) The customer impairs or interferes with utility service to others;
(5) The customer's equipment, use or intended use, of utility service is
determined to be substandard.
(d) Disconnection of utility service as provided in this section shall be deferred during
the time the grounds or basis for disconnection is being reviewed or appealed pursuant to the
provisions of Section 11.04.070.
(e) When the condition that resulted in the disconnection of service is corrected, KPU
will, upon payment of all required charges relating to reconnection, restore utility service.
(f) Notwithstanding any other provision provided for herein, KPU reserves the right to
disconnect utility service without notice under the following conditions:
(1) Theft or diversion of utility service;
Chapter 11.04 Page 7 Ketchikan 7/2009
(2) Existence of an immediate hazard which threatens the health or safety of the
customer, another person, the general public, or KPU personnel, equipment or facilities. (Ord. 1065 §3
(part), 1985)
11.04.090 Theft or diversion. (a) Tampering with meters or other facilities of KPU or theft
or division of utility services is a violation of KPU rules and regulations and also a criminal offense
under Alaska law. Theft or diversion of utility service shall constitute just cause for KPU to
disconnect service. In the event utility service is disconnected as provided herein, the amount of
estimated lost revenue, damage to KPU property, disconnect and reconnect charges, and any other
costs or expenses incurred to KPU as a result of such tampering, including such damages as are
provided for in AS 42.20.030, shall be determined and such amount shall be paid in full before the
utility service is restored. (Ord. 1065 §3(part), 1985)
11.04.100 Resale of service. No person shall resell or redistribute any electric energy,
water, or telecommunications service furnished by KPU unless specifically authorized in advance
by written agreement with KPU. (Ord. 1532 §3, 2005: Ord. 1065 §3(part), 1985)
11.04.110 Increase in rate to compensate for taxes. Utility service rates contained in this
title are subject to proportional increases to compensate for any gross revenue, kilowatt-hour, or
other form of tax imposed by any municipal, state, or federal taxing authority. (Ord. 1065 §3 (part), 1985)
11.04.120 Interruption of service and nonliability. (a) KPU will exercise reasonable
diligence and care to deliver a continuous and adequate supply of electric, water and
telecommunications services to customers, but cannot, and does not, warrant or guarantee such level
or quality of service will be provided and KPU, the city, and their officers and employees, shall not,
except as to allowance of a credit for an outage or interruption of service as provided in (b) below,
be liable for any claim, loss, injury, or damage which may be caused by reason of an outage,
shortage, fluctuation, or interruption in service, and such outages, shortages, fluctuations, or
interruptions shall not constitute a breach of any express or implied contract or warranty or
otherwise impose any liability on KPU, the city, or their officers or employees.
(b) KPU shall only be responsible for the effects of any outage or interruption of
telecommunications, electric, or water service to the extent of the amount billed for the affected
utility services during the period the utility service was interrupted or out of service. A prorated
credit on the utility bill will be allowed for the period after such utility service interruption, shortage
or outage has been reported to KPU to the time the utility service is restored, except that no credit
shall be given if the utility service interruption, shortage or outage is less than forty-eight hours in
duration. In no event shall credit be allowed where the cause of the interruption, shortage or outage
can be traced to the fault of the customer, the premises, or to equipment or facilities that are not
owned or maintained by KPU. (Ord. 1532 §3, 2005)
(c) KPU shall have the right to temporarily suspend delivery of utility service whenever
KPU finds such necessary for the making of repairs or improvements to its systems; provided,
however, whenever practical, and time permitting, reasonable prior notice shall be given in the
newspaper or other advertising media to the customers. The repairs or improvements will be
prosecuted with reasonable diligence and, insofar as is reasonably feasible, at such times as will
cause the least inconvenience to customers.
(d) Nothing in this chapter shall be construed as placing upon KPU, the city, or their
officers, employees and agents any responsibility for the maintenance, inspection or repair of any of
the customer's wiring, current consuming devices, communications equipment, plumbing, or any
other customer equipment or facilities; and KPU, the city, and their officers, employees and agents
Chapter 11.04 Page 8 Ketchikan 7/2009
shall not be held liable for any claim, loss, damage or injury to persons, property or equipment
resulting from any defects in the customer's installations or equipment, or for any damage or injury
to any person or property arising from use of the service on the premises of the customer. (Ord. 1065
§3(part), 1985)
11.04.130 Inspections. (a) KPU shall be provided full, unobstructed, and free access at all
reasonable times during the day to all parts of all buildings and property supplied with utility service
for the purpose of inspection of utility lines, pipes, wires, conduits, fixtures, or other equipment or
facilities. KPU reserves the right to close off all lines, pipes, wires, conduits, fixtures, and other
equipment of facilities found to be not in compliance with all rules, regulations, standards, and
codes, and service will not be resumed until satisfactory repairs and corrections have been made.
(b) Written permission from KPU shall be obtained prior to attachment of any
equipment, device, materials, or facilities of any nature or description to KPU owned or operated
facilities. (Ord. 1065 §3(part), 1985)
11.04.140 Rules regarding telecommunications service only. (a) The rules and
requirements specified in this section are in addition to any other applicable KPU rules and regu-
lations.
(b) Local and long distance telecommunications service is available to the general
public through facilities owned and operated by KPU. Charges for this service shall be as provided
in Chapter 11.12.
(c) Telecommunications and other utility service is provided for the exclusive use of the
customer only. The customer assumes sole responsibility for the use of this service by any and all
persons.
(d) Equipment and facilities furnished by KPU shall remain the property of KPU- KPU
retains the right to install, maintain, inspect, sell and remove the equipment and facilities as
conditions dictate.
(e) Customers shall not disconnect or remove, or permit others to disconnect or remove,
any apparatus owned by KPU without the prior consent of KPU.
(f) Upon discontinuation of telecommunications service, the customer will be billed the
actual replacement cost of each piece of telecommunications apparatus missing, damaged or
destroyed.
(g) The customer shall have no property right in the telephone number. KPU reserves
the right to change telephone numbers as deemed necessary.
(h) KPU's obligation to furnish telecommunications service is based upon, and limited
by KPU's ability to procure and retain suitable facilities and rights for the construction and mainte-
nance of the necessary circuits.
(i) KPU may suspend any utility service and remove KPU's equipment from the
customer's premises if use of the service is conducted or is exercised in such manner as to impair or
interfere with service of others.
(j) All network signaling and switching equipment will be furnished, installed and
maintained by KPU.
(k) Customer provided equipment:
(1) No customer provided equipment shall be attached or connected to any
facilities furnished by KPU except upon the express prior written approval of KPU.
(2) Customer provided equipment and communication systems may be used
with the facilities furnished by KPU, however it shall be the customers responsibility to insure that
all such equipment and systems are constructed, maintained and operated in such manner as to work
satisfactorily and be compatible with the facilities provided by KPU.
Chapter 11.04 Page 9 Ketchikan 7/2009
(3) Any adverse effect on any equipment provided by the customer caused by a
change in KPU's telephone operating characteristics shall be the responsibility of the customer and
shall be corrected or remedied at no cost or expense to KPU.
(4) Upon notification from KPU that the customer's equipment or system is
causing interference or other problems, the customer shall immediately make such changes as are
necessary to remove, prevent, or otherwise remedy the interference or problem. When a service
difficulty or trouble report results from customer provided equipment the customer shall be
responsible for payment to KPU for the cost of all of the time and materials expended by KPU in
correcting the situation.
(5) Customer provided equipment which, in the opinion of KPU, serves a
location unsuitable or inaccessible will be connected by the means of a protected device furnished
by KPU and paid for by the customer.
(6) Where the use of any customer provided equipment involves direct
connection to facilities furnished by KPU such connection shall be made through a connection
device furnished, installed and maintained by KPU. (Ord. 1532 §3, 2005: Ord. 1471 §1, 2003: Ord. 1065 §3 (part), 1985)
11.04.150 Description of service. (a) General. Service installations may be either overhead
or underground, however, a combined electric/telecommunications installation shall be installed
either totally overhead or totally underground and may not be a combination of the two without the
prior approval of KPU. KPU service installations will normally be overhead installations. All
approved underground service installations shall be constructed and installed as required and
described in paragraph (i), underground service connections of this section.
(b) Character of Electric Service. The character of electric service available at a
particular location may be ascertained by inquiry at the KPU office. Alternating current service of
60-cycle frequency, conforming to standard practices of the industry, will be supplied. Voltages
referred to in this title and other official documents of KPU are nominal voltages. KPU will
endeavor to operate and maintain its electrical energy within reasonable limits, but does not warrant
or guarantee the same.
(c) KPU Electric Voltage Standards. Standards of electric voltage shall be as follows:
(1) Secondary voltages - 120/240 single phase, 120/208 wye, 120/240 delta,
and 480 delta three phase or other standard secondary voltages may be available with prior
approval by KPU;
(2) Primary voltages - 4160/2400 and 12470/7200 grounded wye, three phase;
(3) Transmission voltages - 34,500 volts and above. KPU may elect to supply a
customer from lines of transmission voltages.
(d) Single Phase Service. No single-phase motor larger than five horsepower, or
single-phase air conditioner or heat pump with a capacity in excess of one hundred thousand BTU
or thirty kW Demand or other load of fifteen kW or more may be connected without the prior
approval of KPU.
(e) Three Phase Four Wire Service. KPU may limit the size of the largest motor that
may be operated on its system. The customer may be required to provide acceptable space to KPU
on the customer's premises to accommodate the installation of KPU's facilities.
(f) Special Facilities. Special facilities are considered to any existing, enlarged or new
facilities that are installed and/or used by KPU at the customer's request that are in addition to the
standard facilities KPU would normally install or use and represent additional costs to KPU. Instal-
lation of special facilities will be made by KPU under the following conditions provided KPU
determines that the type of special facilities are acceptable and agrees to the installation:
(1) The applicant for special facilities is also an applicant for permanent electric
service, or is a customer receiving permanent electric service at the same location;
Chapter 11.04 Page 10 Ketchikan 7/2009
(2) The applicant executes a contract providing for repayment of KPU's cost of
installation of the special facilities;
(3) The provisions of Chapter 11.06, utility line extensions, if applicable, are
complied with.
(g) Miscellaneous Service Entrance Equipment.
(1) The customer shall furnish the following equipment: service switches,
connectors, fuses, meter housings, service termination equipment, weatherheads, wireways and
similar devices that are required in accomplishing the connection of service to the load side of the
customer's metering point.
(2) The equipment referred to in (1) above, and the installation, shall comply
with all applicable rules, regulations, codes and standards which pertain to the safe construction and
operation of utility facilities. Such facilities shall be the property of, and shall be maintained in a
safe and operable condition at the times by the customer. The customer shall provide a suitable
means for KPU to place its meter and meter seals on covers of service enclosures and instrument
transformer enclosures.
(h) Overhead Service Connections.
(1) KPU will furnish and install an overhead service to the nearest practical
point of attachment on the customer's building or other delivery point, such point to be approved by
KPU prior to construction. The customer shall provide to KPU all necessary rights-of-way or utility
easements required to provide the service connection.
(2) Whenever any clearance between the service conductors and the ground, or
any object, becomes impaired as a result of actions of the customer and does not comply with all
applicable rules, regulations, codes and standards, the customer shall, at the customer's expense,
provide a new and approved support for termination of KPU's service wires. Such support shall be
in a location approved by KPU prior to commencement of construction. The customer shall also
provide all service entrance conductors and equipment necessitated by the change of location.
(i) Underground Service Connections.
(1) Where KPU maintains an underground distribution system, individual
service connections (service lateral) will be underground, using the shortest practicable route to a
customer's service entrance and shall be in a location satisfactory to KPU. All installations and
construction shall be in accordance with all applicable rules, regulations, codes and standards.
(2) Where KPU owns and maintains on the customer's property either a
distribution junction box, manhole, transformer, enclosure, service lateral, or other utility equipment
or facility, the customer shall provide, at no cost or expense to KPU, all necessary rights-of-way or
utility easements on such forms as is approved by KPU.
(3) Where the customer installs, owns, and maintains a conduit system in which
KPU will install its cables, the specifications of such conduit system and related enclosures shall be
subject to the prior approval of KPU.
(4) Whenever KPU's underground distribution system is not complete to the
point where the service lateral is to be connected to the distribution system, the system may be
extended in accordance with, and shall be subject to, the provisions of Chapter 11.06, utility line
extensions.
(j) Primary Service Installations (600 Volts or More).
(1) Wherever KPU's overhead or underground primary voltage is not completed
to the point where service can be connected, the system shall be extended in accordance with, and
subject to, the provisions of Chapter 11.06, utility line extensions.
(2) Whenever a transformer installation is required on the customer's premises
the customer shall furnish, install, own and maintain a suitable foundation or enclosure for
equipment and any conduit or duct necessary within the customer's building. The customer shall
Chapter 11.04 Page 11 Ketchikan 7/2009
also supply the necessary conduit or duct and provide a suitable location and route for KPU's
primary and/or secondary conductors up to the building.
(3) Whenever the primary cable terminates inside the customer's building, the
customer shall furnish, install, own, and maintain that portion of the conduit or duct that is located
inside of the outer building line.
(k) Additional Telecommunications and Water Service Installations Requirements.
(1) Telecommunications. The requirements and responsibilities regarding new
telecommunications service installations are the same as described in paragraphs (g)(1) and (h)(1),
(h)(2), (h)(3) and (h)(4) of this section and the following additional provisions and requirements:
(A) At the customer's request, KPU will furnish, and will own and
maintain the necessary customer termination, test facilities and customer premises equipment as
required for service. The customer may be required to install protective equipment that complies
with all applicable rules, regulations, codes and standards which pertain to the safe construction and
operation of utility facilities.
(B) Equipment furnished by the customer shall be registered with and be
approved by the Federal Communications Commission, and also be registered with KPU, and shall
be customer premise equipment only (i.e., basic and complex phone systems, PBX'S, answer and
record devices, alarm equipment, house wiring and jacks or blocks). Such equipment shall be the
property of the customer and the customer shall have the sole responsibility to maintain all such
equipment at no cost or expense to KPU. The customer shall provide a suitable means for KPU to
place its closure or seal on service entrances which protect access.
(2) Water. In addition to the provision of (h)(1) of this section the following
provisions and requirements shall apply to new water service installations:
(A) New water service installations. The customer shall be responsible
for installing new water service facilities from the point of connection with KPU's water main. All
such facilities, whether or not located on the customer’s property, shall conform to all applicable
KPU standards including standards for protection of facilities from freezing and contamination and
standards governing the size, design and specifications for water service facilities. The customer
shall be responsible for assuring that all facilities, including those on customer’s property, have been
inspected and approved by KPU. The customer shall also be responsible for replacing all such
facilities. Water service may be denied by KPU until the facilities have been inspected and
approved by KPU.
(B) Maintenance of new water service facilities. Except as provided in
subsection (D), KPU shall maintain new water service facilities from the point of connection to
KPU’s water main corp stop to and including the property curb stop valve provided that:
(i) The new water service facilities meet KPU standards and
have been inspected and approved by KPU; and
(ii) Ownership of those new water service facilities has been
conveyed to and accepted by KPU. The customer shall own and be responsible for maintaining
all facilities located downstream from the property curb stop valve and all facilities that do not
conform to KPU standards or that have not been inspected and approved by KPU. If no property
curb stop valve exists, then KPU shall establish some other practical demarcation.
(C) Maintenance of existing water service facilities. The customer
shall be responsible, at its cost, for any maintenance and replacement of existing water service
facilities downstream from the corp stop valve unless:
(i) KPU determines that such facilities comply with its most
current applicable standards; and
(ii) Ownership of the facilities has been conveyed to and
accepted by KPU.
Chapter 11.04 Page 12 Ketchikan 7/2009
Except as provided in subsection (D), existing water service facilities which meet the
requirements of both (i) and (ii) above will be maintained by KPU from the point of connection
to KPU’s water main corp stop to and including the property curb stop valve. If no such property
curb stop valve exists, then KPU in its sole judgment shall establish some other demarcation.
The customer will in all cases be responsible for maintaining all water service facilities
downstream from the property curb stop valve or other demarcation and will be responsible for
replacement of water service facilities.
(D) Maintenance of oversized water service facilities. Customers
whose water service lines equal or exceed two inches in diameter shall be responsible, at their
cost, to maintain and replace such lines and other water service facilities from the KPU water
main to and including all customer premise facilities attached to such lines.
(E) Thawing or water service facilities. The customer shall, at its cost,
thaw all water service facilities downstream from and including the point of connection with
KPU’s main. The customer shall be responsible for any damage arising from or related to its
thawing of water service facilities. Thawing of water service facilities is not a maintenance
function of KPU.
(F) Other valves located in public rights-of-way. Sprinkler system
valves at the main, and all other valves located in public rights-of-way, shall be the property of
KPU and shall be operated by KPU water division personnel only.
(G) Definitions. For purposes of this subsection, the following definitions
apply: “New water service facilities” include all water lines, pipes, valves and connections
connected to KPU’s main water lines after the effective date of this ordinance but shall not
include extensions of the water mains by KPU or under KPU’s authority. “Existing water service
facilities” are those water lines, pipes, valves and connections which were connected to KPU’s
main water lines on or prior to the effective date of this ordinance. A property curb stop valve is
that valve located underground, or suspended beneath the street, at or near the customer’s
property line. Valves which are attached to building or are within buildings are not property curb
stop valves unless otherwise determined by KPU. A corp stop valve is that underground or
suspended valve which is immediately adjacent to the water main. (Ord. 1532 §3, 2005: Ord. 1377 §1, 1997;
Ord. 1065 §3(part), 1985)
11.04.160 Substandard conditions and service refusal. In addition to disconnection
because of an immediate hazard to health or safety, nonpayment of bills, or other reasons as
provided in this title, KPU shall have the right to disconnect utility service, or to refuse to
connect a utility service, if KPU gives the customer notice of the existence of an unsafe or
substandard condition and the condition is not corrected and brought into compliance with all
applicable rules, regulations, codes and standards pertaining to the safe construction and
operation of utility facilities within the time specified by KPU. KPU shall have no responsibility
for inspecting or repairing the customer's wiring or any other utility equipment, or any part
thereof, and does not assume any liability or responsibility whatsoever therefore. (Ord. 1065 §3(part),
1985)
11.04.170 Protective devices on premises. Protective devices shall be installed by the
customer whenever KPU deems it necessary to protect the property of KPU, the customer, other
persons or the general public. No motor rated in excess of seven and one-half horsepower may
be installed for "across-the-line" starting without the approval of KPU. (Ord. 1065 §3 (part), 1985)
11.04.180 Power factor. In the event KPU determines that a customer's average power
factor is below .85 and KPU gives after written notice to install corrective equipment and the
Chapter 11.04 Page 13 Ketchikan 7/2009
customer fails to do so, KPU may proceed to take corrective action and charge the customer for
the cost of labor, materials and installation of the equipment necessary to improve the power
factor above .90. (Ord. 1065 §3(part), 1985)
11.04.190 Interference and equipment to limit voltage and current fluctuation.
Customers who operate any equipment that causes voltage fluctuations, or where the use of electric
current is intermittent or subject to fluctuations, may be required to provide corrective measures
which will reasonably limit such fluctuations. KPU reserves the right to refuse to supply service
which KPU determines may seriously impair the service to others if a customer continues to use
such equipment or apparatus after written notification from KPU. (Ord. 1065 §3 (part), 1985)
11.04.200 Increased use of electricity. A customer shall give KPU written notice
before making any additions to the customer connected load that may impair the quality of service
rendered by KPU. (Ord. 1065 §3(part), 1985)
11.04.210 Meter installation and metering. (a) Meter Installations.
(1) All KPU meters shall be installed, sealed and removed only by KPU. No
such seal shall be broken except by a representative of KPU or by a duly licensed electrician with
the advance permission of KPU.
(2) Meters shall be located on the outside of buildings or other delivery point as
determined by KPU. In the case of temporary, or mobile home installations, the meter locations
shall be on a secondary pole or meter pedestal unless otherwise approved in advance by KPU. New
service entrance locations on the customer's premises shall be approved by KPU prior to installa-
tion. Meters shall be placed in such manner and location as to be readily accessible for inspection,
reading and testing. It shall be the responsibility of the customer to maintain a clear space of not less
than thirty inches in front of the meter. Meters shall not be located over gas meters or other
grounded objects or in hazardous locations. Meter sockets must be installed in a true vertical plane
six feet above the ground plus or minus six inches. Sockets for potential transformer meter installa-
tions shall not be equipped with circuit closing devices.
(3) If an existing meter is or becomes inaccessible for inspection, reading or
testing, the customer shall, at no cost or expense to KPU, provide a new and approved location for
the meter in order to comply with (2) above. Failure to comply with the such requirements shall
constitute cause for disconnection of utility service.
(4) Buildings with multiple meters shall have the meters located at one central
point unless otherwise specified and approved by KPU. Each meter location shall be clearly marked
by the building owner to indicate the load it serves.
(5) KPU will own, wire and maintain the necessary instrumentation
transformers and meters. The customer shall be required to install the necessary instrumentation
transformers to KPU's specifications.
(b) Metering.
(1) Each premises, including such areas as trailer spaces, apartments, dwellings,
etc., shall be metered and billed separately by KPU. The owner of the premises shall install
individual service entrance equipment with sufficient capacity for the proposed installation,
including provisions for attachments of KPU's service conductors, and for installation of KPU's
meter except as may be otherwise approved by the utilities manager.
(2) At the owner's request, and at KPU's option, conversion may be made from
master metering to individual metering. All service entrance equipment must be at least 100 Amp
and shall be subject to approval by KPU. Replacement o: existing service entrance equipment must
be with 200 Amp equipment.
Chapter 11.04 Page 14 Ketchikan 7/2009
(3) Upon conversion from master metering to individual metering, all secondary
and/or service equipment to the service entrance shall, upon approval of KPU, become the property
of KPU which shall thereafter be responsible for maintenance thereof. (Ord. 1065 §3(part), 1985)
11.04.220 Meter tests. (a) KPU will make tests and inspections of its meters as are
necessary to insure a high standard of accuracy. A meter will not be placed in service or allowed to
remain in service which has an error in registration in excess of two percent under normal operating
conditions.
(b) A customer may, upon giving KPU not less than five working days prior written
notice, require KPU to test the customer's meter with the following actions to be taken by KPU:
(1) If a meter for residential service is found to be not registering or is
registering less than seventy-five percent of the actual consumption under normal operating
conditions, KPU may render an adjusted average billing to recover for the underbilling for a
period-not to exceed the three immediately preceding months.
(2) If a meter for commercial service is found to under-register greater than two
percent of the actual consumption under normal operating conditions, KPU may render an adjusted
billing to recover for underbilling for a period not to exceed the three immediately preceding
months.
(3) If a meter is found to over-register greater than two percent under normal
operating conditions, the customer's past billings will be adjusted to provide a credit for a
overbilling for a period not to exceed the six immediately preceding months.
(4) If a meter is found to register within the two percent tolerance referred to in
(a) above, a charge of fifty dollars for the testing shall be paid to KPU by the customer.
(5) A report, stating the name of the customer requesting the test, the date of the
test request, the date of the test, and the result of the test shall be provided to the customer within a
reasonable time after completion of the test. (Ord. 1065 §3 (part), 1985)
11.04.230 Requirements for relocation, replacement or service upgrades of KPU
facilities. Subject to availability of load, materials and scheduling, utility services can be relocated,
replaced or upgraded subject to the following provisions:
(a) KPU will replace its existing facilities if an increase in a customer's load requires
such upgrading of service capacity, and the customer pays all of the costs associated therewith.
(b) Upon compliance with, and subject to all of the terms, conditions and provisions of
(c) below, KPU will, upon request, perform and accomplish the following relocation, replacement
or service upgrades:
(1) Requests for three phase service. KPU will install three phase electrical
service provided three phase distribution service is currently available in the requested area. In all
other instances the provisions of Chapter 11.06, Utility Line Extensions, shall be applicable.
(2) Replacement of overhead with underground facilities. The customer is
required to provide all trenching for any replacement of overhead with underground facilities.
(3) Relocation of customer's service entrance point. Relocation of a customer's
service entrance point will be made with only the appropriate service connect fee charged provided
no secondary distribution pole or other equipment is required. Where underground service is
presently provided, service drop relocations shall not be made without special approval from the
utilities manager.
(4) Requests for relocation of KPU existing facilities. All requests for relocation
of KPU existing facilities shall be submitted in writing to the utilities manager.
(c) Conditions. Performance by KPU of any of the relocation, replacement or service
upgrade activities referred to in (a) and (b) above shall be subject to all of the following conditions:
Chapter 11.04 Page 15 Ketchikan 7/2009
(1) The request is approved by KPU and is based on sound engineering
practices;
(2) All necessary easements and rights-of-way are granted to KPU on such form
as is provided or approved by KPU;
(3) The person requesting the relocation, replacement, or service upgrade
obtains the approval of, and makes arrangements for, the transfer or relocation of any equipment
owned by any other person or utility that will, or may be affected thereby;
(4) Except as provided in (5) below, the person making the request pays in
advance the total cost and expense to be incurred by KPU, including KPU overhead, less the
salvage value of any KPU facilities that are to be removed. (Ord. 1568, §1, 2007: Ord. 1065 §3(part), 1985)
(5) KPU may agree to pay or waive all or part of the cost amount due under (4)
above for relocating existing KPU facilities if the utility manager or designee determines that the
existing KPU facilities are inappropriately placed. The determination of the amount KPU may
waive or pay and the appropriateness of the placement of the existing KPU facilities shall be made
in the discretion of the utility manager or designee. The utility manager shall periodically report the
amounts paid or waived under this subsection to the City Council. (Ord. 1568, §2, 2007)
11.04.240 Fluoridation of city water. The city of Ketchikan shall not engage in the
practice of fluoridating its domestic drinking water. (Initiative Ord. 1220 §1, 1991)