HomeMy WebLinkAboutWhitman Lake Hydro KPU Grant Application 11-09-2009
Renewable Energy Fund Round 3
Grant Application
AEA 10-015 Application Page 1 of 31 10/7/2009
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-III.html
Grant Application
Form
GrantApp3.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
Costworksheet3
.doc
Summary of Cost information that should be addressed by
applicants in preparing their application.
Grant Budget
Form
GrantBudget3.d
oc
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
GrantBudgetInst
ructions3.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.
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Grant Application Round 3
AEA10-015 Grant Application Page 2 of 31 11/9/2009
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Ketchikan Public Utilities
Electric Division
Type of Entity:
Municipal Utility-Electric Division
Mailing Address
Ketchikan Public Utilities
Mike Kline
Electric Division
1065 Fair Street
Ketchikan, Alaska 99901
Physical Address
Ketchikan Public Utilities
Electric Division
1065 Fair Street
Ketchikan, Alaska 99901
Telephone
(907) 225-5505
Fax
907-247-0755
Email
mikek@city.ketchikan.ak.us
1.1 APPLICANT POINT OF CONTACT
Name
Mike Kline
Title
Electric Division Manager
Mailing Address
1065 Fair Street
Ketchikan, Alaska 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.
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SECTION 2 – PROJECT SUMMARY
This is intended to be no more than a 1-2 page overview of your project.
2.1 Project Title – (Provide a 4 to 5 word title for your project)
Whitman Lake Hydroelectric 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 Hydroelectric Project will be located on Whitman Creek near the
southeast end of Revillagigedo Island in southeastern Alaska, approximately 4 miles east of the
City of Ketchikan, within the Whitman Lake and Achilles Creek watersheds.
See Figure 2-1, Project Location Map for the Whitman Lake Hydroelectric Project.
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 Hydroelectric Project, FERC No. 11841 (Project) will be located
approximately four miles east of the City of Ketchikan, Alaska, and will be connected to the
existing Ketchikan Public Utilities (KPU) distribution system. KPU will install 4.6 MW of
hydropower generating capacity at the existing Whitman Lake Dam, providing a source of clean
renewable energy for customers in the Ketchikan Gateway Borough and displacing diesel
generation. The project will help support significant capacity demand increases anticipated in
the short term, as well as continuous load growth over time. The new facilities associated with
the Project will also benefit the existing Whitman Lake Hatchery by providing a continued supply
of temperature-controlled water.
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2.5 PROJECT BENEFIT
Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel
costs, lower energy costs, etc.)
Financial Benefits:
• Potential annual fuel displacement of approximately 1,100,000 gallons/year of diesel fuel
or $3,000,000/year of diesel costs at today’s price of $2.70 / gallon.
• Improvements to the existing Southern Southeast Regional Aquaculture Association
(SSRAA)-owned Whitman Lake Hatchery, which include enhanced reliability of water
supply to the Hatchery and physical improvements to water delivery system. Direct
benefits to SSRAA from the improvements to their facilities total up to $1,500,000
• Enhanced electrical system stability and reliability, reducing costs associated with power
outages
Public Benefits:
• Reduced reliance on diesel fuel to generate electric power, resulting in reductions to
greenhouse gas emissions
• Increased capacity to support customer conversion from oil heat to electric heat,
reducing heating costs and emissions
• A continual release of water to Whitman and Achilles Creeks, enhancing fish habitat
• A more steady and predictable source of water for the Ketchikan Gateway Borough’s
Mountain Point water utility through improved flow monitoring and water management in
the Whitman Creek watershed
• Direct and indirect benefits to the community through local jobs created during
construction
• Indirect benefits from the continued operation of the Whitman Lake Hatchery and the
fisheries it supports, estimated to total $47 million annually
• Availability of low-cost power to serve KPU customers and attract new economic
development to the borough
• Proposed recreation enhancements
• Management of historical properties within the Project boundary
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 Whitman Lake Hydroelectric Project is comprised of four phases, which 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 25% complete. KPU
received a $1,300,000 Renewable Energy Fund grant (Round I) for Phase III Final Design and
Permitting and is providing a local match in the amount of $280,000.
Phase IV Construction and Project Startup is estimated to cost $16,500,000. KPU is seeking a
Renewable Energy Fund grant in the amount of $2,000,000 and will provide a local match
and/or other funding of $14,500,000.
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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 – 11/2010 $1,580,000 Funded
IV Construction and Project Startup 11/2010 – 11/2012 $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
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 / yr
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.)
Incalculable
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SECTION 3 – PROJECT MANAGEMENT PLAN
Describe who will be responsible for managing the project and provide a plan for successfully
completing the project within the scope, schedule and budget proposed in the application.
3.1 Project Manager
Tell us who will be managing the project for the Grantee and include 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.
Project Managers:
Mike Kline, P.E., Electric Division Manager
Ketchikan Public Utilities
1065 Fair Street
Ketchikan, Alaska 99901
TEL: (907) 228-5447
E-mail: mikek@city.ketchikan.ak.us
Jennifer Holstrom, P.E., Senior Project Engineer
Ketchikan Public Utilities
2930 Tongass Avenue
Ketchikan, Alaska 99901
TEL: (907) 228-4733
E-mail: jenniferh@city.ketchikan.ak.us
Reference:
Karl R. Amylon, General Manager
Ketchikan Public Utilities
334 Front Street
Ketchikan, AK 99901
TEL: (907) 228-5603
FAX:(907) 225-5075
E-mail: karla@city.ketchikan.ak.us
KPU has contracted with Hatch Acres Corporation for project management, engineering
services and regulatory assistance required for Phase III Final Design and Permitting. Mr. A.
Richard Griffith is the Hatch Acres project manager for the Whitman Lake Hydroelectric Project.
See Attachment A for resumes of the KPU internal management team and Hatch Acres
consultant team.
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3.2 Project Schedule
Include a schedule for the proposed work that will be funded by this grant. (You may include a
chart or table attachment with a summary of dates below.)
Activity 1234123412341234123 4
Reconnaissance Studies
Licensing & Feasibility
Studies
Final Design
Construction & Startup 20082006201220092010201120051997-2007
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 provides detailed descriptions of the milestones associated with Phase IV –
Construction of the Whitman Lake Hydro Project. Also see Attachment C, Grant Budget Form.
Milestones Activities/Description
Expected
Milestone Date
Year 1 - Completion of Access Roads, Clearing,
and Surveying
Year 1 construction activities completed: 1)
Hatchery laydown area; 2) Whitman dam access
road surveyed, cleared, and constructed; 3)
Achilles Diversion access road surveyed, cleared,
and constructed; 4) penstock alignment surveyed
and cleared; 5) powerhouse area cleared and
surveyed
Oct 2010
Year 2 – Delivery of Major Equipment
Large equipment with potentially long lead times
are delivered to project site: turbines, generators,
transformers, and large valves
Sep 2011
Year 2 – Penstocks and Intakes Construction
Complete
New intakes at Whitman Dam installed; Achilles
Diversion and pipeline installed; new penstocks
installed; hatchery headtank and valvehouse
completed
Jul 2011
Year 2 – Powerhouse Construction Complete Powerhouse, tailrace, and switchyard completed,
except installation of major equipment Jun 2011
Year 2 – Equipment Installation Complete Major equipment installed in powerhouse:
turbines, generators, and transformers.Dec 2011
Year 2 - Integration and testing The project is performance tested Dec 2011
Year 2 - Final acceptance, commissioning and
start-up
Startup tests are performed, project is
commissioned and turned over to KPU Jan 2012
Operations Reporting Ongoing task of license compliance management
Jul 2010 thru Jan
2012
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3.4 Project Resources
Describe the personnel, contractors, equipment, and services you will use to accomplish the
project. Include any partnerships or commitments with other entities you have or anticipate will
be needed to complete your project. Describe 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.
KPU began working toward development of the Whitman Lake Hydroelectric Project in 1997 by
reviewing the feasibility of the project and initiating the Federal Energy Regulatory Commission
(FERC) licensing process. All activities associated with Phase I and Phase II of this project are
complete and were fully funded by KPU. Phase III design and permitting activities began in
2008 and are approximately 25% complete.
Construction/Procurement Contracts:
Phase IV – Construction of the Whitman Lake Hydroelectric Project will be performed under
three construction/procurement contracts: 1) site preparation, 2) equipment procurement, and 3)
general civil.
Contractor and vendor selection will be carried out in accordance with the procedures set forth
in Title 3 Revenue and Finance, Chapter 3.12 Purchases and Sales, of the Ketchikan Municipal
Code. Contractors are required to furnish a payment and performance bond for any contract
with a value greater than $50,000 and to adhere to the requirements of Davis Bacon. A copy of
Chapter 3.12 of the code is included in Attachment F. Prior to public notice of bidding, KPU will
provide copies of the plans and specifications to the AEA for review.
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 Hydroelectric Project. Hatch Acres will subcontract the field work
necessary to complete project design and regulatory activities.
The Hatch Acres consultant team that provides engineering support to KPU includes (resumes
in Attachment A):
• Richard Griffith, 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
KPU with Spiegel & McDiarmid
Hatch Acres with GeoEngineers Inc.
Hatch Acres with Herrera Environmental Consultants
Hatch Acres with Northern Land Use Research, Inc.
Hatch Acres with R&M Engineering-Ketchikan, Inc.
Hatch Acres with R2 Resource Consultants, Inc.
Partnerships or Commitments:
The following entities are signatories of a Settlement Agreement (Feb 2008) associated with the
FERC licensing process:
• Alaska Department of Fish & Game (ADF&G);
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• Alaska Department of Natural Resources, Division of Mining, Land & Water, Water
Resources Section (ADNR Water Resources);
• Southern Southeast Regional Aquaculture Association (SSRAA); and
• Ketchikan District, USFS, Tongass National Forest
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 Approval.
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, but are not limited
to, 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
construction compliance, site conditions and inspections. The ECM will provide monthly
progress reports to KPU to submit with the quarterly reports to the AEA.
3.6 Project Risk
Discuss potential problems and how you would address them.
Potential Problems Solutions to Problems
Rising diesel costs Closely monitor market escalation and factor
into total cost of project
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
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 monitoring of lead times on
projects similar to Whitman.
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
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SECTION 4 – PROJECT DESCRIPTION AND TASKS
• Tell us what the project is and how you will meet the requirements outlined in Section 2 of the
RFA.
• The level of 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.
KPU proposes to construct, own and operate the Whitman Lake Hydroelectric Project utilizing
water stored within Whitman Lake to generate power and to supply the Whitman Lake Hatchery
with water. Total generating capacity of this project will be 4.6 MW, with 16,000,000 kWh of
electricity produced in an average year.
KPU proposes to operate Unit 1 when reservoir levels are above El. 370 for the primary purpose
of generating power. Unit 1 will obtain water via a new screened intake and a 48-inch diameter
penstock. It will have a minimum hydraulic capacity of 60 cfs and a maximum hydraulic capacity
of 150 cfs. Flows discharged from Unit 1 will enter the project tailrace and be discharged into
Herring Cove.
KPU proposes to operate Unit 2 on a year-round basis for the primary purpose of supplying water
to the Whitman Lake Hatchery. Water will be delivered to Unit 2 via a 30-inch diameter penstock
from either of two intakes: a deep intake or a variable elevation near-surface intake (this
arrangement allows adjustment of water temperature). Once the reservoir level falls below El.
363, the pressure in the deep-water conduit drops below zero, causing the deep-water intake to
effectively function as a siphon. A vacuum pump connected to the high point of the deep water
intake conduit will ensure reliable operation of the siphon down to El. 343. Unit 2 will have a
minimum hydraulic capacity of 14 cfs and a maximum hydraulic capacity of 35 cfs.
Unit 2 will discharge to a 30-foot diameter head tank via a pressurized tailrace pipe. SSRAA will
control flows from the head tank for use at the Whitman Lake Hatchery. KPU will also construct
powerhouse bypass conduits with pressure-reducing valves, which will serve as a redundant
means of water delivery to the head tank in the event Unit 2 goes offline. Any overflow from the
head tank, or Unit 2 flow in excess of hatchery demand, will discharge into the project tailrace.
The FERC license requires that the Project release between 6 and 11 cfs (depending on the time
of year) from the reservoir into Whitman Creek during normal conditions. During dry conditions, a
Dry Conditions/Low Reservoir Protocol will be implemented. Once the reservoir level falls below
El. 363, instream flows may be reduced upon the agreement of a Reservoir Action Team
(composed of representatives from KPU, SSRAA, ADF&G, ADNR, and the USFS), or to between
2 to 7 cfs, depending upon the time of year, if consensus is not reached.
KPU began working towards development of the Whitman Lake Hydroelectric Project in 1997 by
initiating the FERC licensing process and performing project feasibility studies. KPU has
completed all activities associated with Phase I and Phase II of this project. Phase III is
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approximately 25% complete. Phase III includes activities associated with bid document
preparation and issuance and contractor/vendor selection and award. It is anticipated that the
final design and permitting work associated with Phase III will be completed by November 2010.
Pros and Cons of Whitman Lake Hydroelectric Project vs. Other Available Alternatives:
Pros:
• KPU has completed the FERC licensing process for the Whitman Lake Hydroelectric
Project, after more than 10 years of work pursuing a FERC license.
• Utilizes existing infrastructure (Whitman Dam) which was previously used for hydropower
generation (approximately 1908 through 1957)
• Smaller environmental footprint versus constructing infrastructure for another energy
source
• Very short transmission distance to connect to existing system (1,500 feet)
• Established technology
• Reduced greenhouse gas emissions in the region due to the replacement of diesel
generation with this clean renewable energy resource
• In 2008, KPU spent $4.5 million on diesel generation. The Whitman Lake Hydroelectric
Project will decrease Ketchikan’s dependence on imported diesel fuel and displace
approximately 1,100,000 gallons annually over the lifetime of the project.
• Diesel fuel is vulnerable to fluctuations of availability and cost
• Electric generation (from Whitman) provides increased capacity for the continued
conversion from oil heat to electric heat within the community
• Construction of the Whitman Project includes much-needed improvements to the SSRAA-
owned Whitman Lake Hatchery
• Improved flow monitoring and water management by KPU in the Whitman Creek
watershed will ensure a more steady and predictable source of water for the Ketchikan
Gateway Borough’s Mountain Power water utility
Cons:
• The Whitman Project requires capital costs for construction compared with continued use
of existing diesel plant
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 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 2009 and is currently undergoing testing and is expected to be fully operational
at the completion of the Whitman Project. The new transmission system will interconnect the
existing Swan Lake and Tyee Lake projects, the output of which will be shared between the
communities of Ketchikan, Petersburg and Wrangell.
System operations, generation dispatch, and system restoration are controlled from the
operations center at KPU’s Bailey Plant. A new SCADA system was implemented in 2004, as
well as a CertaLogic GIS used for system records and mapping/planning functions.
KPU owns three hydroelectric power plants and has operated the Swan Lake hydroelectric
project, which is owned by SEAPA (formerly the Four Dam Pool Power Agency). The Bailey
Power Plant contains four diesel generators to supplement generation when there is insufficient
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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
unit) 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
KPU-Owned Diesel
Bailey 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
* Turbine efficiency only. Combined turbine and generator efficiency is approx. 5% less.
** Average generation from 2003-2008
*** Interconnected with Petersburg & Wrangell that 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 sub-transmission circuit feeds 6
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 57-mile, 115 kV transmission line connecting Swan Lake with the Tyee Project (22.5 MW), is
complete and currently undergoing testing. The Tyee Project is owned by the Southeast Alaska
Power Agency (SEAPA, formerly the Four Dam Pool Power Agency) 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
nameplate capacity of the convection-cooled transformers at the Bailey Substation is 20.4 MW.
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With improved transformer cooling, this may be increased to 25 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 as soon as 2014
under average hydrologic conditions.
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
Development of the Whitman Lake Hydroelectric 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.
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 and 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 2008 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.
*2009 generation and peak demand is through September
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 1,628 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* 123,779,096 29,200
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 14 of 31 11/9/2009
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
*Seasonal sales patterns do not reflect projected electric heating conversions
Demand on KPU’s electrical system is increasing as oil heat is converted to electric heat. KPU
expects an additional 2 MW peak load in the short term for residential heating conversions. The
Ketchikan Gateway Borough School District has notified KPU of plans to convert to electric
boilers, adding as much as 6 MW of load to KPU’s system. This is a nearly 20% increase over
the 2008 cold weather peak load of 30.4 MW. Given the current configuration and constraints on
the system, this conversion alone will result in a potential peak load shortfall of 5 MW. At
present, KPU would be able to meet the shortfall only by generating with diesel.
27.8 27.2 29.1 29.2 30.4 29.2 29.2 29.2
0
5
10
15
20
25
30
35
40
45
2004 2005 2006 2007 2008 2009/10
Forecast
2010/11
Forecast
2011/12
ForecastMW
Peak New Load
2009 YTD
Base 29.2 +
2 megawatts
of heating
conversions
2009 YTD
Base 29.2
YTD + 4
megawatts
of heating
2009 YTD Base
29.2 + 6
megawatts of
heating
conversions
installed + 6
megawatts KSD
Current KPU and SEAPA Hydro
Capacity
(S O )
Current KPU and SEAPA Hydro Capacity 38
MW w/ improved transformer cooling
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Expanded Energy Market:
Located 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 backup 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
• Description of renewable energy technology specific to project location:
Development of hydroelectric power at the site utilizing an existing dam. New
construction includes a powerhouse with two Francis turbine/generators, penstocks, new
intake, creek diversion with pipeline, tailrace, valve house, head tank, access roads,
pressurized supply line, switchyard, and transmission line.
• Optimum installed capacity: 4.6 MW (3.9 MW Unit 1, 700 kW Unit 2)
• Anticipated capacity factor: Unit 1 = 0.29, Unit 2 = 0.94
• 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.
• Delivery methods: Electric power from Whitman Lake powerhouse would be
transmitted by overland transmission via a 1,500-foot-long 34.5 kilovolt 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.
Land ownership issues:
The Whitman Lake Hydroelectric Project boundary encompasses approximately 180 acres, the
majority of which (172.3 acres) is USFS land. The project also involves 0.24 acres of BLM land,
and an easement of 4 acres on ADNR-owned or managed lands. KPU has an agreement with
the Alaska Mental Health Trust to purchase 3.67 acres of Mental Health Trust land.
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Summary of land use:
• ADNR Easement – Lot 107 U.S.S. 3385 & State Community Grant Property - ADL
107151 – KPU has obtained easement
• USBLM – KPU is negotiating with the BLM for an easement or purchase of Lot 106
• Alaska Mental Health Trust Land – KPU will purchase Lot 112, U.S.S. 3385
• Tongass National Forest Land – KPU is preparing an application for a Special Use
Authorization.
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
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
• NWP No. 17, Hydropower Projects
• POA-1998-1027, Whitman Lake, Ketchikan Public Utilities
• Title 16 Fish Habitat Permit FH08-VII-0027
Permits Pending:
• USFS Special Use Authorization – submit Fall 2009, anticipated issuance Spring 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 Hydroelectric 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
Project on March 17, 2009. The environmental issues that are identified in the EA, FEA and
addressed in the Project License are summarized below.
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Threatened or Endangered Species:
None in vicinity of Project
Habitat issues:
• 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 to its confluence is currently dewatered approximately 35% of the
time; however, under terms of a Settlement Agreement (Feb 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 develop and implement a Terrestrial Species
Connectivity Plan for wildlife crossings along the Achilles Creek pipeline
• KPU will develop and implement a Nesting Survey Plan to include surveying for newly
constructed marbled murrelet, goshawk, and bald eagle nests prior to construction
and will implement reporting, agency consultation and contingency measures for
protection of avian species during project construction.
Wetlands And Other Protected Areas:
KPU provided a Jurisdictional Wetlands Delineation Report to the US Army Corps of Engineers
(USACE). KPU will work with USACE and landowners to avoid the identified wetlands. If
required, KPU will develop and implement a plan regarding future activities in the vicinity of the
jurisdictional wetlands.
Archaeological And Historical Resources
KPU will revise and implement its Historic Properties Management Plan and conduct a
HABS/HAER for the NRHP eligible shed. During construction, KPU will avoid disturbing the area
occupied by the NRHP eligible shed.
Land Development Constraints:
There are no identified constraints. KPU will occupy State-owned lands under the terms and
conditions of an Easement (ADL 107151), and National Forest 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 the above noted State easement for use of State
Lands, and the Special Use Authorization for use of National Forest Lands. KPU will develop
and implement a Scenery Management Plan in consultation with state and federal agencies.
KPU will develop and implement a Vegetation Management Plan in consultation with state and
federal agencies.
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
Renewable Energy Fund
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AEA10-015 Grant Application Page 18 of 31 11/9/2009
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
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 raise the funds
necessary to support the above referenced local match funds of $14,500,000.
Projected Capital Cost: On the basis that municipal bonds are issued to fund the local match
funds, the addition of financing costs to the Total Project Cost results in an estimated 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.)
Estimated Operating and Maintenance (O&M) costs for the Whitman Lake Hydroelectric Project
are estimated to be $416,000, based on costs for other KPU-owned hydroelectric facilities.
Items included in the overall O&M cost for the project includes 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)/Customers(S): In 2008, KPU supplied power to
7,346 customers in the City of Ketchikan and Ketchikan Gateway Borough. Power from the
Whitman Lake Hydroelectric Project will help meet the demand of current and future customers.
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AEA10-015 Grant Application Page 19 of 31 11/9/2009
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
2009 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.
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.
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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 Evaluated
Renewable Energy Project: Generation from the Project will displace approximately 1,000,000
gallons/year of diesel fuel generation or $3,000,000/year of diesel costs. Currently, an expected
6 MW peak load shortfall in the hydro system due to anticipated oil-to-electric heat conversions
in the short-term can only be made up with diesel generation and the yearly diesel consumption
will continue to increase.
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 Benefits To Alaskans Over The Lifetime Of The Project:
• Reduced reliance on diesel fuel to generate electric power, resulting in reductions to
greenhouse gas emissions
• Increased capacity to support customer conversion from oil heat to electric heat, reducing
heating costs and emissions
• Improved year-round temperature-controlled water supply for the Whitman Lake
Hatchery, which supports Southeast Alaska commercial and sport fishing.
• A more steady and predictable source of water for the Ketchikan Gateway Borough’s
Mountain Point water utility through improved flow monitoring and water management in
the Whitman Creek watershed
• A continual release of water to Whitman and Achilles Creeks, enhancing fish habitat
• Direct and indirect benefits to the community through local jobs created during
construction
• Proposed recreation enhancements
• Management of historical properties within the Project boundary
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SECTION 6– SUSTAINABILITY
Discuss your plan for operating the completed project so that it will be sustainable.
Include at a minimum:
• Proposed business structure(s) and concepts that may be considered.
• How you propose to finance the maintenance and operations for the life of the project
• Identification of operational issues that could arise.
• A description of operational costs including on-going support for any back-up or existing
systems that may be require to continue operation
• Commitment to reporting the savings and benefits
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 included in Attachment F.
KPU will be the owner and operator of the Whitman Lake Hydroelectric Project for the life of the
project. The Project 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
Project through electric rates. Items included in the overall O&M cost for the project includes
equipment maintenance, administrative labor, insurance and interim replacements.
Operational Issues: The Whitman 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, the 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: Operations and maintenance costs of the Project
are estimated to total $416,000 annually. Items included in the overall O&M cost for the project
includes 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 and new hydro resource.
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AEA10-015 Grant Application Page 22 of 31 11/9/2009
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:
In 1997, recognizing that Ketchikan would soon need to develop additional sources of power to
meet the needs of the community, KPU applied for, and received, a Preliminary Permit from the
Federal Energy Regulatory Commission (FERC) for the Whitman Lake Hydroelectric Project.
Following several years of consultation, study, and assessment, KPU filed a license application
in 2004. In March 2009, the FERC issued a license for Whitman Lake Hydroelectric Project.
KPU has contracted with Hatch Acres to complete final design and permitting. Draft bid
documents have been prepared for the initial site preparation contract and equipment
procurement, which will be ready to award in the third quarter of 2010.
Previous Grant Awards:
KPU received an AEA Round I grant for $1,300,000 million (Whitman Lake Hydroelectric
Construction, reconnaissance.) KPU will begin submitting reports as required by the Grant
Agreement executed on 10/13/2009, grant agreement number 2195441.
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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, letters demonstrating local support for the Whitman Lake Hydroelectric
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
Provide a narrative summary regarding funding sources and your financial commitment to the
project.
From 1997 through July 2010, KPU will have expended $2,650,000 to accomplish Phases I
though III, and to begin Phase IV activities in the development of the Whitman Project. The
development costs to-date has been supplemented by a $1,300,000 AEA Round I grant award.
The remainder has been supported out of KPU operating revenue.
The Total Construction Cost under Phase IV is expected to be $16,500,000. In this application,
KPU is requests grant funding in the amount of $2,000,000. Local match funds or other funding
options are anticipated to be $14,500,000.
The Total Project Cost of the 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 the above referenced local match funds 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.
The Grant Budget form is provided in Attachment C.
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Application Figures and Tables
Figure 2-1: Project Location Map
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ATTACHMENT A
Resumes
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ATTACHMENT B
Cost Worksheet
Renewable Energy Fund Round 3
Project Cost/Benefit Worksheet
RFA AEA10-015 Application Cost Worksheet Page 1 10-7-09
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 100% capacity factor
3,900 kW at 34% 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 Railbelt1 grid, leave this section blank)
i. Number of generators/boilers/other Hydroelectric generators: 9
Internal combustion engines (diesel): 3
ii. Rated capacity of generators/boilers/other
Ketchikan (hydro): 3 – 1,400 kW units (4.2 MW
total)
Beaver Falls (hydro): 1 –1,000 kW unit, 2 – 2,000
kW units (5 MW total)
Silvis (hydro): 1 – 2,100 kW unit (2.1 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
Bailey (diesel): 2 – 3.5 MW units, 1 – 5.45 MW
unit, 1 – 10.5 MW unit (22.95 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
Swan Lake (hydro): Units 1 & 2 (1983)
Tyee Lake (hydro): Units 1 & 2 (1984)
Bailey (diesel): Unit 1 (1969), Unit 3 (1976), Unit 4
(1998)
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 (KPU has
replaced turbines for increased efficiency).
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 3
Project Cost/Benefit Worksheet
RFA AEA10-015 Application Cost Worksheet Page 2 10-7-09
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $3.55 million (2008, for KPU-owned facilities)
ii. Annual O&M cost for non-labor $8.15 million (2008, 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] 167,000,000 kWh (2008)
159,700,000 kWh (2007)
159,500,000 kWh (2006)
153,300,000 kWh (2005)
ii. Fuel usage
Diesel [gal] 1,181,113 gal (2008)
174,783 gal (2007)
121,529 gal (2006)
87,645 gal (2005)
Other N/A
iii. Peak Load 30,400 kW (2008)
iv. Average Load 19,100 kW
v. Minimum Load 10,500 kW
vi. Efficiency Approx. 92%
vii. Future trends Winter peak load = 36,000 kW
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)
[kWh or MMBtu/hr]
New hydropower facility with an installed capacity of 4.6
MW with 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%
iv. Other 4%
Renewable Energy Fund Round 3
Project Cost/Benefit Worksheet
RFA AEA10-015 Application Cost Worksheet Page 3 10-7-09
4. Project Cost
a) Total project 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) Price of displaced fuel 1,103,000 x $2.70 / gallon = $2,978,000
c) Other economic benefits
The improved reliability of hatchery water supply will
reduce the probability of losing the estimated
$47,000,000 annual economic value that the
hatchery currently provides to Southeast Alaska.
d) Amount of 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 $19,150,000 / ($2,978,000 - $416,000) = 7½ years
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ATTACHMENT C
Grant Budget Form
Renewable Energy Fund Grant Round 3 Grant Budget Form 10-7-09 Phase IV – Construction 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 (See attached Milestone list) Year 1- Completion of Access Roads 10/31/2010 $500,000 $330,000 Other State Grants and/or Municipal Bonds $830,000 Year 2 – Delivery of Major Equipment 6/17/2011 $1,500,000 $3,020,000 Other State Grants and/or Municipal Bonds$4,520,000 Year 2 – Penstocks and Intakes Construction Complete 7/26/2011 $0$5,150,000 Other State Grants and/or Municipal Bonds$5,150,000 Year 2 – Powerhouse Construction Complete 6/7/2011 $0$3,390,000 Other State Grants and/or Municipal Bonds$3,390,000 Year 2 – Equipment Installation Complete 8/26/2011 $0$1,030,000 Other State Grants and/or Municipal Bonds$1,030,000 Year 2 – Hatchery Improvements Complete 9/16/2011 $0$1,330,000 Other State Grants and/or Municipal Bonds$1,330,000 Year 2 - Final acceptance, commissioning and start-up 10/7/2011 $0$200,000 Other State Grants and/or Municipal Bonds$200,000 Operations Reporting $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 $2,000,000 $6,570,000 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 $7,370,000 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
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ATTACHMENT D
Letters of Support
Renewable Energy Fund
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ATTACHMENT E
Ketchikan City Council Resolution
Renewable Energy Fund
Grant Application Round 3
AEA10-015 Grant Application Page 31 of 31 11/9/2009
ATTACHMENT F
Municipal Code sections 3.12, 11.4
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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)