HomeMy WebLinkAboutConnelly Lake Hydro App
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 1 of 18 9/2/2008
Application Forms and Instructions
The following forms and instructions are provided for 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.html
The following application forms are required to be submitted for a grant recommendation:
Grant Application
Form
GrantApp.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
Costworksheet.doc Summary of Cost information that should be addressed
by applicants in preparing their application.
Grant Budget
Form
GrantBudget.xls A detailed grant budget that includes a breakdown of
costs by task and a summary of funds available and
requested to complete the work for which funds are being
requested.
Grant Budget
Form Instructions
GrantBudgetInstr.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 a plan
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.
CONNELLY LAKE HYDRO PROJECT Renewable
Energy Fund
Grant Application
AEA 09-004 Grant Application Page 2 of 18 9/3/2008
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Alaska Power & Telephone Company
Type of Entity:
Utility
Mailing Address
P.O. Box 3222, Port Townsend, WA 98368
Physical Address
193 Otto Street, Port Townsend, WA 98368
Telephone
360-385-1733
Fax
360-385-7538
Email
glen.m@aptalaska.com
1.1 APPLICANT POINT OF CONTACT
Name
Glen Martin
Title
Resource Assessment and Permits
Mailing Address
Alaska Power & Telephone Company
P.O. Box 3222
Port Townsend, WA 98368
Telephone
360-385-1733
x122
Fax
360-385-7538
Email
glen.m@aptalaska.com
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
X An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
An independent power producer, or
A local government, or
A governmental entity (which includes tribal councils and housing authorities);
Yes 1.2.2. Attached to this application is formal approval and endorsement for its project by
its board of directors, executive management, or other governing authority. If 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.)
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Energy Fund
Grant Application
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SECTION 2 – PROJECT SUMMARY
Provide a brief 1-2 page overview of your project.
2.1 PROJECT TYPE
Describe the type of project you are proposing, (Reconnaissance; Resource Assessment/
Feasibility Analysis/Conceptual Design; Final Design and Permitting; and/or Construction) as
well as the kind of renewable energy you intend to use. Refer to Section 1.5 of RFA.
Alaska Power & Telephone Company (AP&T) proposes to conduct Phase II Resource
Assessment/Feasibility Analysis/Conceptual Design and Phase III Final Design and Permitting
for a hydroelectric project at Connelly Lake near Haines and Skagway, Alaska.
2.2 PROJECT DESCRIPTION
Provide a one paragraph description of your project. At a minimum include the project location,
communities to be served, and who will be involved in the grant project.
The Connelly Lake Hydroelectric Project (Project) will be located in Southeast Alaska,
approximately 14 miles northeast of the City of Haines and 10 miles southwest of the City of
Skagway. Connelly Lake (formerly known as Upper Chilkoot Lake) is an 85 acre alpine lake,
and drains into the Chilkoot River. The project will be on state and private land, including the
Haines State Forest and Chilkat Bald Eagle Preserve. The project facilities will include a dam
at the lake outlet, a penstock about 6,200 feet long, a 12.0 MW powerhouse with two generating
units, a 14-mile-long 34.5 kV transmission line and a 14-mile long access road. Final
dimensions and capacities of these facilities will be determined by optimization studies to be
conducted during Phase II. The Project will be developed by AP&T to provide additional
generation to its interconnected Haines and Skagway electrical systems.
2.3 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. Include a project cost summary that includes an estimated total cost
through construction.
The total cost of the Project is estimated to be $33,235,000, not including costs incurred by
Haines Light & Power Co. (HL&P) in the 1990s for a preliminary design of the project. No
reconnaissance level studies (i.e. Phase I) are necessary because of the previous HL&P work,
however, AP&T proposes to conduct additional resource assessment/feasibility
analysis/conceptual design studies (Phase II) to update and possibly revise the HL&P work.
Also during Phase II, AP&T will contract with various entities to conduct environmental studies
and data collection as necessary for obtaining state and federal permits. Note that AP&T
purchased HL&P in 1998, including assets associated with the Project.
If the Phase II studies indicate a feasible project can be developed as expected, AP&T will
immediately begin the Phase III work to obtain the necessary permits and final design.
AP&T request with this application grant funding of $988,000 which is 80% of the estimated
costs of Phases II and III. AP&T will provide $247,000 in matching funds (20% match) from its
normal operating funds. The total estimated costs for each phase, including construction, are
shown below:
• Phase II: Resource Assessment/Feasibility Analysis/Conceptual Design .....$535,000
• Phase III: Final Design and Permitting ........................................................$700,000
• Phase IV: Construction .............................................................................$32,000,000
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Grant Application
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2.4 PROJECT BENEFIT
Briefly discuss the financial benefits that will result from this project, including an estimate of economic
benefits(such as reduced fuel costs) and a description of other benefits to the Alaskan public.
This Project will provide additional hydroelectric generation to AP&T’s Upper Lynn Canal
(ULC) system, which includes Haines, Skagway, and other nearby communities. AP&T also
supplies power to Inland Passage Electric Cooperative from the ULC system. The Project will
be a long-term resource to offset diesel generation. Currently, diesel generation is necessary
during low water periods. Diesel generation during the last 8 years has averaged about 0.7
GWh, but was double that average amount during two of the years. Continuing load growth will
make diesel generation more frequent. The potential generation of a 12.0 MW project is
estimated to be 45 GWh, which should be sufficient to meet increasing loads for many years to
come, although generation during the early years of the Project’s life would likely be fairly
limited. To provide revenue in the early years of Project operation, AP&T will sell power during
the summer months to cruise ships docked at either Haines or Skagway. The estimated annual
load from supplying one ship is estimated to be 9,000 MWh, with a peak of 11 MW. AP&T
estimates that a power sales rate of $0.25/kWh will be attractive to the cruise lines, and that
revenue will be sufficient to offset AP&T’s debt service and O&M costs, assuming the
construction is 80% grant funded by the State. Any excess revenue could be assigned to the State
to offset the cost of the grant funding.
Another benefit of the Project would be an increase in reliability. Currently, the primary
hydroelectric generators in the ULC system are near Skagway, with only diesel generation and
two small run-of-river hydros located near Haines. If the submarine cable between Haines and
Skagway were to be damaged, nearly all generation for Haines would need to be from diesel
units. The Project will connect into the system near Haines, and so in the event of a submarine
cable outage Haines would still be fully supplied with hydro generation.
It should also be noted that the Project could supply power to new industrial loads if they
occurred. Currently, mineral explorations are being conducted in the Klukwan area, and there
is discussion that a mine on the order of the Greens Creek Mine near Juneau could be
developed.
2.5 PROJECT COST AND BENEFIT SUMARY
Include a summary of your project’s total costs and benefits below.
2.5.1 Total Project Cost
(Including estimates through construction.)
$33,235,000
2.5.2 Grant Funds Requested in this application. $988,000
2.5.3 Other Funds to be provided (Project match) $247,000
2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $1,235,000
2.5.5 Estimated Benefit (Savings) (Direct net benefits accruing to
AP&T over 50 year life, not discounted)
$172,907,000
2.5.6 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.)
(Direct net benefits accruing to the State over 50 year life, not
discounted)
$116,835,000
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Grant Application
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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.
Vern Neitzer, AP&T’s Chief Engineer, will be the Project Manager. Mr. Neitzer is located in Skagway
near the Project location, and has extensive experience in managing hydroelectric development. A
resume for Mr. Neitzer is included in Section 7 – Appendices.
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.)
A bar schedule of the expected design and construction sequence is provided in Section 7 –
Appendices. The following summarizes key activities and dates of the schedule.
Phase II: Resource Assessment/Feasibility Analysis/Conceptual Design:
Conceptual design/optimization............2009
Stream gage installation .......................2009
Environmental studies...........................2010
Geotechnical investigations..................2010
Phase III: Permitting and Final Design:
Permit application preparation ............2010
Permit application processing..............2011
Final design...........................................2011
Phase IV: Construction: 2012 –2014
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them.
The key tasks and decision points for Phases II and III are as follows:
• Selection of an installed capacity and optimum project arrangement by the end of 2009,
so that environmental and geotechnical studies to be conducted in 2010 can be focused
appropriately.
• Installation of stream gages by October 2009 to provide at least one full water year (Oct-
Sep) of data for analysis prior to applying for permits.
• Submittal of permit applications by the end of 2010 so that construction can be
authorized for 2012.
• Completion of final design by the end of 2011 so that construction can proceed in 2012.
3.4 Project Resources
Describe the personnel, contractors, equipment, and services you will use to accomplish the
project. Include any partnerships or commitments with other entities you have or anticipate will
be needed to complete your project. Describe any existing contracts and the selection process
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Grant Application
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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.
Key AP&T involved in the project development and their roles will be:
• Vern Neitzer, Project Manager
• Bob Berreth, Electrical Design
• Ben Beste, Mechanical Design
• Larry Coupe, Civil Design
• Glen Martin, Resource Assessment and Permits
Phase II: Resource Assessment/Feasibility Analysis/Conceptual Design
In this phase AP&T will conduct the environmental and engineering/conceptual design studies
listed below. Most of the environmental studies will be by contractors; the contractors listed
below are those AP&T has used on similar tasks. The actual contractors used may vary from
those shown, depending on workloads and proposed budgets.
• Wetlands delineation - - HDR Alaska Inc.
• Threatened and endangered plant species survey - - HDR Alaska Inc.
• Fish surveys - - Romey Associates, Inc.
• Water quality sampling - - Analytica Group, Inc.
• Cultural resource surveys - - Browne Research;
• Geotechnical investigations - - Phil Duoss, R&M Consultants
• Conceptual design - - AP&T staff engineers
• Feasibility analysis - - AP&T staff engineers
Phase III: Final Design & Permitting
AP&T expects to receive in 2009 a determination that the Federal Energy Regulatory
Commission will not have jurisdiction over the Project, since no federal lands or interstate
commerce will be affected by Project development. Therefore a FERC license will not be
required, and only the following permits will be acquired during Phase III:
• 404 permit (Corps of Engineers)
• Fish habitat permit (ADF&G)
• Land leases or easements (ADNR, private landowners)
• Coastal zone consistency review (ADNR)
• Water right (ADNR)
• SHPO review
AP&T permitting specialists will compile the environment information obtained in Phase II into
resource assessment documents as required by the various permitting agencies.
AP&T will prepare the final design documents in-house using its staff civil, mechanical, and
electrical engineers, who all have extensive experience in hydroelectric development. These
engineers designed AP&T’s South Fork Hydroelectric Project which entered service in 2005, as
well as AP&T’s Kasidaya Creek Hydroelectric Project which will enter service later in 2008.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
During Phases II and III, AP&T proposes to provide quarterly reports to AEA regarding the
status of the work and use of the grant funds. AP&T has provided similar reports to AEA and
other grant funding agencies in the past several years on other projects, and has established the
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Grant Application
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necessary procedures for producing the reports expeditiously.
3.6 Project Risk
Discuss potential problems and how you would address them.
Site Control – AP&T does not yet have development rights on land to be occupied by part of the
transmission line and access road. We are working with the private land owners to negotiate
leases, easements, or sales.
Seismic – Project components will be designed appropriately for seismic activity, since the
Project will be located in a moderate-risk seismic zone. Structures will be buried as much as
possible to minimize seismic impacts.
Underground Construction – The Project does not include a significant amount of underground
construction, which can be fraught with cost overrun potential. Geotechnical investigations will
be conducted at the dam and powerhouse areas to provide an adequate level of knowledge about
ground conditions at those sites.
Inclement Weather – Working conditions in the dam area are very harsh during the winter. The
proposed schedule assumes no work on the dam and upper portions of the penstock during the
December-March period.
Environmental Opposition – AP&T is aware that some Haines area resident may oppose Project
development, primarily because the proposed road could increase access into the Chilkoot
valley, and because of perceived impacts from the flow modifications that would occur in the
Chilkoot River because of Project operation. AP&T believes the environmental impacts will be
minor or can be prevented or adequately mitigated. AP&T will meet regularly with concerned
citizens to address any issues with the Project, with the intent of reaching a favorable concensus.
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Grant Application
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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 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 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.
Potential Energy Resource: HL&P’s investigations of the Project in the 1990s were for a
development to supply power only to Haines. They ultimately selected a preliminary design with
an installed capacity of 6 MW and a potential annual generation of 35 GWh.
AP&T believes the arrangement proposed by HL&P could be undersized with regard to the
available water resource and the current load conditions. With the HL&P arrangement, there
would be a large amount of water spilled during the summer months. AP&T believes that it may
be economical to utilize the spilled water, either by a larger installed capacity, a larger reservoir,
or both. AP&T estimates the largest practical reservoir would have a storage capacity of 9,000
acre-feet and a maximum water level at El 2325, which could support an installed capacity of 15
MW and an annual generation of about 50 GWh. AP&T proposes to conduct an economic sizing
of the project as part of its Phase II work. The Project construction cost indicated in this
application is based on an installed capacity of 12.0 MW.
Pros: This project provides enough storage and good head for a high capacity project that will
provide for future load growth in ULC for many years to come. This would eliminate diesel use
except for outages and possibly shutdown for maintenance of the hydro project. Other potential
hydro sites in the area have much less generation potential. AP&T is not aware of any feasible
wind, tidal, wave, geothermal or other renewable energy sites in the area.
Compared to diesel generation, the Project will have the following advantages:
• less expensive to operate than diesel (lower O&M);
• no need to purchase fuel;
• no air emissions;
• fewer hazardous substances;
• no particulate matter emissions;
• can come on-line after a power outage almost immediately, but diesel can’t;
• lower and more stable electric rates for customers
Cons: As with all hydroelectric projects, the initial cost of development is much higher than for
diesel generation. In addition, there may be environmental impacts associated with the Project,
such as the access and transmission route through a portion of the Chilkat Bald Eagle Preserve
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and minor modifications of the flow in the Chilkoot River.
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.
The existing ULC energy system configuration is as follows:
Unit Type Capacity, kW Efficiency, kWh/gal Age, years
Goat Lake Hydro (storage) 4,000 N.A. 11
Dewey Lakes Hydro (storage) 943 N.A. 106
Lutak Hydro (run of river)285 N.A. 9
10-Mile(1) Hydro (run of river)600 N.A. 8
Kasidaya Hydro (run of river)3,000 N.A. 0
Skagway #6 Diesel 855 14.69 22
Skagway #7 Diesel 1,100 14.80 12
Skagway #8 Diesel 500 14.89 17
Skagway #9 Diesel (refurbished)930 ? 0
Haines #1 Diesel 800 12.64 39
Haines #2 Diesel 1265 12.93 25
Haines #3 Diesel 1600 14.92 19
Haines #4 Diesel 2865 12.83 13
(1) AP&T purchased power from Southern Energy’s 10-Mile hydro project until 2002. Purchases resumed in 2008.
Haines and Skagway are interconnected by a 15-mile-long, 34.5-kV submarine cable with a
capacity of approximately 20 MW. Skagway and Dyea are connected by a 7.3-mile long 7.2-kV
distribution line, and Haines and the IPEC system are connected by a 10-mile long 12.47-kV
distribution line.
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.
Although the installed capacity of AP&T’s existing hydroelectric resources in the ULC system
are greater than the peak demand of the interconnected grid, diesel generation is required due to
water not being available for generation. Icing conditions also curtail hydro generation.
The generation in the ULC system since the beginning of 1998 is summarized in the following
table. Kasidaya Creek hydro will became operational in late 2008, and has an annual energy
potential of 12 GWh. AP&T began supplying power to the IPEC system in 2007.
Annual Generation, MWh
Year Goat Lake
Dewey
Lakes Lutak 10-Mile Diesel Total
1998 10,046 3,021 0 692 9,486 23,246
1999 17,159 3,511 0 861 2,237 23,768
2000 17,999 3,737 0 1,088 888 23,712
2001 18,457 3,267 0 837 669 23,230
2002 18,016 3,449 609 174 1,366 23,613
2003 18,711 3,439 583 0 284 23,017
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2004 18,563 3,391 827 0 761 23,541
2005 19,533 3,646 810 0 255 24,244
2006 22,151 3,438 479 0 89 26,159
2007 22,090 3,242 695 0 1,414 27,441
The Project will be fully incorporated with the other hydro resources so that the renewable
resources will be dispatched as an integrated system. It is expected that the Project will
eliminate essentially all diesel generation in the interconnected grid.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
The Project will be able to supply loads in any of the interconnected communities in the ULC
system, as well as IPEC loads in the Chilkat valley. Currently, it is sometimes necessary for
AP&T to use diesel generation to supplement the hydro generation, either due to low streamflows
or outages. Loads increases and expansion of the system have exacerbated this situation. When
diesel generation is required, electric rates increase and cause fluctuations in customer energy
bills that can be difficult to anticipate or adjust for. Adding more hydro capacity to the ULC grid
will alleviate fluctuating electric rates for customers.
If the Project is configured to provide shore power to cruise ships docked at Haines or Skagway,
the cruise lines would see there operating costs decrease, which would be beneficial for that
industry, which in turn would help the communities because the local economy is currently so
dependent on tourism.
The Project could provide in the near-term an incentive for additional economic development in
the Haines and Skagway areas because there would be a surplus of economical power available.
4.3 Proposed System
Include information necessary to describe the system you are intending to develop and address
potential system design, land ownership, permits, and environmental issues.
4.3.1 System Design
Provide the following information for the proposed renewable energy system:
• A description of renewable energy technology specific to project location
• Optimum installed capacity
• Anticipated capacity factor
• Anticipated annual generation
• Anticipated barriers
• Basic integration concept
• Delivery methods
Renewable energy technology specific to location – The Project will be a conventional
hydroelectric project. Hydroelectric technology is well developed, and provides most of the
renewable energy generated in the world in general, and Southeast Alaska in particular. The
Project will utilize the abundant rainfall and steep topography afforded by the Connelly Lake
basin to generate renewable energy. Other hydro sites may exist in the area but are much
smaller than the Project and would have significantly less energy potential. Tidal generating
technology may be applicable to the area but is considered too experimental and expensive to
compete with the Project. Wind, biomass, wave, and other renewable technologies are not
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suitable to the area.
Optimum installed capacity – The optimum installed capacity is estimated to be 6.0-15 MW. An
economic sizing of the installed capacity will be accomplished during the proposed Phase II
studies.
Anticipated capacity factor – The potential capacity factor is estimated to be from 38% (at 15
MW) to 67% (at 6.0 MW).
Anticipated annual generation – The potential annual generation is estimated to be from 35 GWh
(at 6.0 MW) to 50 GWh (at 15 MW).
Anticipated barriers – There are no known technological barriers to development of the Project.
Basic integration concept – The ULC system is already a hydro-based system with diesel backup.
Integrating another hydro project to the system will not present any difficulties. The run-of-river
hydros in the system (Lutak, Kasidaya) will be dispatched first, followed by storage hydros (Goat
Lake and Connelly Lake). Generally, the storage hydros will be dispatched based on their then-
current storage levels and operating characteristics. In addition, one or both of the storage
hydros will always be on-line to provide system stability.
Delivery methods – The Project will be interconnected to the ULC grid at Lutak Inlet by a 14-
mile long, 34.5 kV transmission line that is considered part of the Project and included in Project
costs.
4.3.2 Land Ownership
Identify potential land ownership issues, including whether site owners have agreed to the
project or how you intend to approach land ownership and access issues.
The project is primarily on State of Alaska Lands (Haines State Forestry land, Chilkat Bald Eagle
Preserve), with some small private landholdings along the access road/transmission line route. A
land lease has been applied for from DNR and from the Haines State Forest. Private land
owners are currently being negotiated with.
4.3.3 Permits
Provide the following information is it may relate to permitting and how you intend to address
outstanding permit issues.
• List of applicable permits
• Anticipated permitting timeline
• Identify and discussion of potential barriers
Applicable Permits:
• 404 permit (Corps of Engineers)
• Water right (ADNR),
• State land easement (ADNR)
• Coastal zone consistency review (ADNR-DCOM)
• Fish habitat permit (ADF&G)
• State Parks Permit?
• SHPO review.
Permitting Timeline: Permit applications will be filed with the various agencies in Phase III
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after completion of the necessary resource assessments in Phase II. We currently estimate that
permits applications will be filed in late 2010 and the permits will be received by fall 2011.
Potential Permitting Barriers: AP&T is not currently aware of any permitting issues that would
preclude development of the Project. Permitting barriers may become known as the Phase II and
Phase III work progresses.
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
Threatened and endangered species: AP&T is not aware of any threatened and endangered
species in the Project area. AP&T expects to conduct field studies during Phase II regarding
threatened and endangered species, but impacts are not anticipated.
Habitat Issues: Habitat surveys were conducted by ADF&G in the 1990’s for fish in Connelly
Lake and in the Chilkoot River near the lake outlet stream’s confluence with the river. No fish
were found in the lake or using the outlet stream. The Chilkoot River provides anadromous
rearing and spawning habitat, and fish surveys and analyses are planned during Phase II to
assess any impacts from varying flows due to the project; AP&T believes the impacts will be
minor because the flow fluctuations in the summer will be small compared to the natural flow in
the Chilkoot River. In the winter, the project will likely increase the natural flow of the Chilkoot
River, which could be beneficial. Wildlife surveys during Phase II will be conducted to assess the
current use of the area, particularly by mountain goats; significant impacts are not expected.
Wetlands: The Project will affect some wetlands, including Connelly Lake and possibly small
muskeg areas along the penstock route. However, no significant impacts are expected.
Archaeological Resources: Archeological surveys will be conducted during Phase II. No
significant impacts to archeological or cultural resources are expected.
Land Development Constraints: No land development constraints are known at this time. Lease
agreements with the state will specify any necessary mitigation requirements for the Project
features. AP&T would expect to provide gates on the access road to limit unauthorized access.
Telecommunications Interference: The 34.5 kV transmission line will not create interference with
telecommunications.
Aviation Considerations: The project does not pass by an airport and the wood poles will only be
about 45 feet in height, well below any flight pattern. The ROW for the transmission line is
bordered by forest on both sides, and trees in the area are generally at least as tall as the poles.
CONNELLY LAKE HYDRO PROJECT Renewable
Energy Fund
Grant Application
AEA 09-004 Grant Application Page 13 of 18 9/3/2008
Visual, Aesthetic Impacts: Wood poles will be placed approximately 300 feet apart. Much of the
route was cleared for a logging road (RS 2477) into the valley and can still be used after some
repairs and tree trimming. The area is not easily accessed so that the project would not be
visible from Chilkoot Lake or other publicly accessible areas. This project will not be in a
visually or aesthetically special viewshed.
Other Potential Barriers: No other potential barriers are known at this time.
4.4 Proposed New System Costs (Total Estimated Costs and proposed Revenues)
The level of cost information provided will vary according to the phase of funding requested and
any previous work the applicant may have done on the project. Applicants must reference the
source of their cost data. For example: Applicants Records or Analysis, Industry Standards,
Consultant or Manufacturer’s estimates.
4.4.1 Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of
the project. Cost information should include the following:
• Total anticipated project cost, and cost for this phase
• Requested grant funding
• Applicant matching funds – loans, capital contributions, in-kind
• Identification of other funding sources
• Projected capital cost of proposed renewable energy system
• Projected development cost of proposed renewable energy system
Anticipated Project costs:
Phase I...........................................$0
Phase II..............................$535,000
Phase III.............................$700,000
Phase IV........................$32,000,000
Total..............................$33,235,000
Requested Grant Funding: $988,000 (80% of total cost for Phase II and Phase III)
Applicant Matching Funds: $247,000 (20% of total cost for Phase II and Phase III)
Other Funding Sources: Other funding sources have not been identified at this time. AP&T will
provide the $247,000 in matching funds for Phase II and Phase III from its normal operating
funds.
Projected Capital Cost of Renewable Energy System: $32,000,000 (assumed to be the cost of
Phase IV Construction)
Projected Development Cost of Proposed Renewable Energy System: $1,235,000 (assumed to be
the sum of Phase I, II, and III costs).
These costs, in all phases listed below, reflect the applicant’s knowledge and experience at building
hydroelectric projects.
Phase II: Project Costs for Resource Assessment/Feasibility Analysis/Conceptual Design
CONNELLY LAKE HYDRO PROJECT Renewable
Energy Fund
Grant Application
AEA 09-004 Grant Application Page 14 of 18 9/3/2008
Conceptual Design and Optimization ....................................................... $125,000
Stream Gaging (Chilkoot River by USGS, Connelly Creek by AP&T) ....... $75,000
Geotechnical Investigations ...................................................................... $100,000
Fish Surveys & Analysis ............................................................................$125,000
Wildlife Surveys ............................................................................................$25,000
Botanical Survey ......................................................................................... $25,000
Wetland Survey .............................................................................................$20,000
Archaeological Survey .................................................................................$30,000
Water Quality Testing ................................................................................. $10,000
Total For Phase II: ................................................................................... $535,000
Phase III: Project Costs for Final Design & Permitting
Permit Applications and Processing ........................................................... $50,000
Stream Gaging (O&M for 2 years) ............................................................. $50,000
Penstock Alignment Survey ......................................................................... $50,000
Final Design Engineering ......................................................................... $550,000
Total For Phase III: .................................................................................$700,000
Phase IV: Project Costs for Construction
Construction Management ........................................................................ $500,000
Mobilization ........................................................................................... $1,000,000
Access Roads and Bridges ..................................................................... $1,500,000
Dam and Reservoir ................................................................................ $8,000,000
Penstock ................................................................................................. $9,000,000
Powerhouse ............................................................................................ $7,000,000
Transmission .......................................................................................... $5,000,000
Total For Phase IV: .............................................................................$32,000,000
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.
• Total anticipated project cost for this phase
• Requested grant funding
The O&M cost for the Project is estimated to be approximately $500,000 per year. AP&T is not
requesting grant funding for O&M costs.
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
AP&T is developing this project to supply power to AP&T’s ULC system customers and to cruise
lines that visit Haines and Skagway during the summer tourist season. AP&T expects that the
rates to its commercial and residential customers would not increase due to Project development.
AP&T projects that a sales price of $0.25/kWh would be attractive to the cruise lines and the
revenue from those sales would provide a positive net income to AP&T and the State.
4.4.4 Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
CONNELLY LAKE HYDRO PROJECT Renewable
Energy Fund
Grant Application
AEA 09-004 Grant Application Page 15 of 18 9/3/2008
in evaluating the project.
Please see the attached Cost Worksheet.
4.4.5 Business Plan
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.
AP&T provides all operation and maintenance on the existing ULC generation, transmission, and
distribution system to provide a high degree of reliability. The Project will be integrated into the
ULC system, and will be operated and maintained in a similar manner. With regular
maintenance, a conventional hydroelectric project should have a minimum life of 100 years.
4.4.6 Analysis and Recommendations
Provide information about the economic analysis and the proposed project. Discuss your
recommendation for additional project development work.
AP&T has prepared an economic analysis for the Project based on the following assumptions:
General Assumptions:
• Term of analysis 50 years (of Project life)
• General inflation rate 2.75%
• Discount rate 0% and 12%
• Interconnected annual generation (2007) 27,441 MWh
• Annual load growth rate 1.0%
Connelly Lake Assumptions:
• AEA grant funds (this application) $988,000
• Other grant funds (for construction) $25,600,000
• AP&T matching funds (this application) $247,000
• Total cost (capital and development costs) $32,235,000
• First year of operation 2015
• Annual O&M cost (2008) $500,000
• O&M escalation rate General inflation rate
• Generation at plant 45,000 MWh/yr maximum
Diesel Assumptions
• Cost of diesel fuel (2008) $3.00 (est.)
• Average efficiency 14.4 kWh/Gal
• Fuel escalation rate 3.75%
• Variable O&M cost (2008) $0.01/kWh
• O&M escalation rate General inflation rate
Power Sales Agreement Assumptions
• Initial sales rate $0.25/kWh (90% of diesel cost)
• Sales escalation rate 2.75%
• Municipality’s share of net revenue 50%
• State’s share of net revenue 50%
A copy of the economic analysis is provided in Section 7. The analysis shows the following:
Discount Rate (1) 0% 12%
Net Present Value of Connelly Lake
Costs to the AP&T (2) $78,715,000 $11,549,000
CONNELLY LAKE HYDRO PROJECT Renewable
Energy Fund
Grant Application
AEA 09-004 Grant Application Page 16 of 18 9/3/2008
Net Present Value of Net Revenue to
the AP&T (3) $172,907,000 $1,508,000
Benefit-Cost Ratio for the AP&T (4) 3.20 1.13
Net Present Value of Connelly Lake
Costs to the State (5) $26,588,000 $26,588,000
Net Present Value of Power Sales Net
Revenue to the State (6) $116,835,000 $11,995,000
Benefit-Cost Ratio for the State (7) 4.39 0.45
(1) Low and high discount rate values for comparison.
(2) Annualized capital cost plus O&M cost, discounted to 2015. Funds
annualized over 50 years at the indicated discount rate.
(3) 50% of annualized net revenue from power sales, discounted to 2015.
Funds annualized over 50 years at the indicated discount rate.
(4) B/C ratio =[(2)+(3)]/(2)
(5) Proposed grant funding amount for Phases II, III, and IV.
(6) 50% of annualized net revenue from power sales, discounted to 2015.
Funds annualized over 50 years at the indicated discount rate.
(7) B/C ratio =(6)/(5)
The analysis indicates sufficient potential for feasible development of the Project that will
decrease environmental impacts from cruise ship diesel emissions, reduce the cost of diesel
generation by the cruise lines, provide a source of revenue for the AP&T, and repay the
investment by the State. Other direct and indirect benefits may accrue as well. Therefore, we
recommend AEA provide the necessary funding for Phases II and III of Project development as
described in this application to evaluate the development in more detail and complete the design
and obtain the necessary permits.
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 avoided cost of ownership)
• Potential additional annual incentives (i.e. tax credits)
• Potential additional annual revenue streams (i.e. green tag sales or other renewable
energy subsidies or programs that might be available)
• Discuss the non-economic public benefits to Alaskans over the lifetime of the project
The people of Alaska will benefit from the Project development as follows:
Potential annual fuel displacement: The Project will displace about 650,000 gallons of diesel
fuel annually, which equates to a reduction of approximately 7,000 tons in emissions from the
combustion of fossil fuels. Over a 50 year period the Project could potentially save 38 million
gallons of diesel fuel.
CONNELLY LAKE HYDRO PROJECT Renewable
Energy Fund
Grant Application
AEA 09-004 Grant Application Page 17 of 18 9/3/2008
Anticipated annual revenue: AP&T would negotiate power purchase agreements with cruise
lines that would provide power to the cruise lines at a cost less than self-generation. This would
provide direct financial benefits to the cruise lines at no cost to them. AP&T would also
negotiate the PPA rates to provide a positive revenue stream that would be shared between the
AP&T and the State. Over the 50-year life of the Project, the savings could amount to as much
as $114,000,000 to the cruise lines, $173,000,000 to AP&T, and $117,000,000 to the State
(undiscounted).
Potential additional annual incentives: Not estimated.
Potential additional revenue streams : Not estimated.
Non-economic public benefits to Alaskans: The primary non-economic benefits of the Project are
the environmental benefits from reducing diesel generation by cruise ships while docked in
Skagway. These environmental benefits will maintain Haines and Skagway’s desirability as a
cruise ship destination, which will provide indirect economic benefits to the people of Alaska.
Other benefits: In the short term the local economy would benefit due to local hire for
construction labor, materials for construction, and lease or rental of equipment. In the long
term, there would be employment for O&M of the Project..
SECTION 6 – GRANT BUDGET
Tell us how much your total project costs. Include any investments to date and funding sources,
how much is requested in grant funds, and additional investments you will make as an
applicant.
Include an estimate of budget costs by tasks using the form - GrantBudget.xls
Total Project Costs: $33,235,000,000
Investments to date and funding sources: $0
Amount requested in grant funds: $988,000 (for Phase II & III work)
Additional investment by AP&T: AP&T will provide matching funds in the amount of $247,000
for Phase II and III work (20% match).
APPENDICES
TABLE OF CONTENTS
1. Certificate of Public Convenience & Necessity
2. Corporate Resolution
3. Project Maps
4. Project Schedule
5. Reconnaissance Information
6. Permit Applications and Coastal Zone Questionnaire
7. Photographs of Project Area
8. Project Area Land Ownership Maps
9. ULC Grid Infrastructure One-Line Diagrams
10. Resume’s
11. Cost Worksheet
12. Grant Budget Form
CERTIFICATE OF PUBLIC
CONVENIENCE & NECESSITY
CORPORATE RESOLUTION
PROJECT MAPS
PROJECT SCHEDULE
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4PHASE II: Resource Assessment, Feasibility Analysis, Conceptual DesignConceptual DesignStream GagingEnvironmental StudiesGeotechnical InvestigationsPHASE III: Final Design and PermittingPermit Application PreparationPermit Application ProcessingFinal DesignPHASE IV: ConstructionMobilizationAccess RoadDamPenstockGenerating Equipment ProcurementPowerhouseTransmission LineTesting and Start-Up2014CONNELLY LAKE HYDROELECTRIC PROJECTDESIGN AND CONSTRUCTION SCHEDULE2009 2010 2011 2012 2013
RECONNAISSANCE INFORMATION
PERMIT APPLICATIONS & COASTAL
ZONE QUESTIONNAIRE
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
CPQ Revised 8/15/2008 Page 1 of 18
Coastal Project Questionnaire and Certification Statement
The Coastal Project Questionnaire (CPQ) is a diagnostic tool that will identify the state and federal permit requirements for your
project that are subject to a consistency review. You must answer all questions. If you answer “Yes” to any of the questions, please
call that specific department for further instructions to avoid delay in processing your application. You can find an agency contact list
online at http://alaskacoast.state.ak.us/Contacts/PRCregcont.html.
A complete project packet includes accurate maps and plan drawings at scales large enough to show details, copies of your state and
federal permit applications, your answers to this questionnaire, and a complete consistency evaluation. DCOM will notify you within
21 days of receipt if the packet is incomplete and what information is still required.
For additional information or assistance, you may call or email the Juneau Project Review at (907) 465-2142, or the Anchorage Project
Review at (907) 269-7478. This CPQ document contains numerous hyperlinks (underlined text that has a connection to an internet web
page) and is best viewed on-line. Additional instructions are available at http://www.alaskacoast.state.ak.us/Projects/pcpq.html
APPLICANT INFORMATION
1. Alaska Power & Telephone Company
Name of Applicant
P.O. Box 3222
Address
Port Townsend, WA 98368
City/State/Zip
360-385-1733 x122
Daytime Phone
360-385-7538 glen.m@aptalaska.com
Fax Number E-mail Address
2.
Agent (or responsible party if other than applicant)
Address
City/State/Zip
Daytime Phone
Fax Number E-mail Address
PROJECT INFORMATION Yes No
1. This activity is a: new project modification or addition to an existing project
2. If this is a modification or an addition, do you currently have any State, federal or local approvals for this activity?
NOTE: Approval means any form of authorization. If "yes," please list below:
Approval Type Approval # Issuance Date Expiration Date
3. If this is a modification, was this original project reviewed for consistency with the Alaska Coastal Management
Program? .............................................................................................................................................................................
Previous ACMP I.D. Number: (example: AK 0706-05AA or ID2004-0505JJ)
Previous Project Name: Previous Project Applicant:
PROJECT DESCRIPTION
Attach a complete and detailed narrative description of your new project or of your modification/addition including ALL
associated facilities and changes to the current land or water use (if not already attached as part of an agency application).
Clearly delineate the project boundaries and all property owners, including owners of adjacent land, on the site plan. The
scale of the maps and plan drawings must be large enough to show pertinent details. Identify your proposed footprint or
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
CPQ Revised 8/15/2008 Page 2 of 18
disturbed area. If this project is a modification to an approved project, identify existing facilities and proposed changes on
the site plan.
Proposed starting date for project: 2011 Proposed ending date for project: 2013
PROJECT LOCATION and LAND OWNERSHIP Yes No
4. Describe/identify the project location on a map (Including nearest community, the name of the nearest land feature or
body of water, and other legal description such as a survey or lot number.).
Township T28S, T29S Range R58E Section see attachment for full list Meridian CRM
Latitude/Longitude / (specify Decimal Degrees or Degrees, Minutes, Seconds)
USGS Quad Map Skagway (B-2)
5. The project is located on: State land or water* Federal land Private land Municipal land
(Check all that apply) Mental Health Trust land University of Alaska land
Contact the applicable landowner(s) to obtain necessary authorization. State land ownership can be verified using
Alaska Mapper. *State land can be uplands, tidelands or submerged lands to 3 miles offshore.
6. Is the project within or associated with the Trans Alaska Pipeline corridor? ......................................................................
COASTAL DISTRICT Yes No
7. Is the project located in a coastal district? ..........................................................................................................................
If yes, identify the applicable coastal district(s) and contact them to ensure your project
conforms with district policies and zoning requirements. Coastal districts are a municipality or borough, home rule or
first class city, second class municipality with planning powers, or coastal resource service area. A coastal district is
a participant in the State's consistency review process. Early interaction with the district can benefit you significantly;
please contact the district representative listed on the contact list at
http://www.alaskacoast.state.ak.us/Contacts/PRCregcont.html
DEPARTMENT OF NATURAL RESOURCES (DNR) APPROVALS
DNR DIVISION OF MINING, LAND & WATER- LAND SECTION Yes No
1. Is the proposed project on State-owned land or water or will you need to cross State-owned land for access? (NOTE:
State land includes the land below the ordinary high water line of navigable streams, rivers and lakes, and in marine
waters, below the mean high tide line seaward for three miles. State land does not include Alaska Mental Health Trust
Land or University of Alaska Land.) ……………………………………………………………..………………………..
2. If you answered yes to the question above, indicate the person you contacted at the appropriate Division of Mining,
Land and Water regional office for information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? .....................................................................................................
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
DNR DIVISION OF MINING, LAND & WATER- MATERIALS SECTION Yes No
3. Do you plan to dredge or otherwise excavate or remove materials such as rock, sand, gravel, peat, or overburden from
any land regardless of ownership? ......................................................................................................................................
a) Location of excavation site if different than the project site:
Township Range Section Meridian
4. At any one site (regardless of land ownership), do you plan any of the following? ............................................................
Excavate five or more acres over a year’s time
Excavate 50,000 cubic yards or more of materials (rock, sand, gravel, soil, peat, overburden, etc.) over a year’s
time
Have a cumulative, un-reclaimed, excavated area of five or more acres
5. Do you plan to place fill or excavated material on State-owned land? ...............................................................................
a) Location of fill or material disposal site if different than the project site:
Township Range Section Meridian
6. If you answered yes to any question above, indicate the person you contacted at the appropriate Division of Mining,
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
CPQ Revised 8/15/2008 Page 3 of 18
Land and Water regional office for information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? ....... Is covered under the Land Easement Application.................
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
DNR DIVISION OF MINING, LAND & WATER- MINING SECTION Yes No
7. Do you plan to mine for locatable minerals such as silver, gold, or copper? .....................................................................
8. Do you plan to explore for or extract coal? ........................................................................................................................
9. If you answered yes to any question above, indicate the person you contacted at the appropriate Division of Mining,
Land and Water regional office for information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? ......................................................................................................
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
DNR DIVISION OF MINING, LAND & WATER- WATER SECTION Yes No
10. Will this project or development divert, impound, withdraw, or use any fresh water (regardless of land ownership)?
(NOTE: If you know of other water users who withdraw from the same source or any potential conflicts affecting this use
of water, contact the Water Section. If you are obtaining water exclusively from either an existing Public Water Supply or
from a rainwater catchment system, you are not required to contact the DNR Water Section regional office.) ......................
a) Check all points-of-withdrawal or water sources that apply:
Public Water system (name):
Stream or Lake (name): Connelly Lake
Well
Rain catchment system
Other:
b) Intended use(s) of water: Hydropower generation
c) Amount (maximum daily, not average, in gallons per day): 45 cfs
d) Is the point of water withdrawal on property you own? …………………………………………………………...........
11. Do you plan to build or alter a dam (regardless of land ownership)? ..................................................................................
12. If you answered yes to any question above, indicate the person you contacted at the appropriate Division of Mining,
Land and Water regional office for information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? .............................. LAS 14292; Priority already established........
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
DNR DIVISION OF FORESTRY Yes No
13. Does your operation meet both of the following criteria on any land, regardless of ownership?
a) The project will commercially harvest timber on 10 or more acres, or commercially harvest timber that intersects,
encompasses, or borders on surface waters, and
b) The project involves one or more of the following: site preparation, thinning, slash treatment, construction and
maintenance of roads associated with a commercial timber harvest, or any other activity leading to or connected to a
commercial timber harvest operation…………………………........................................................................................
14. If you answered yes to any question above, indicate the person you contacted at the appropriate Division of Forestry
regional office for information.
a) Name/date of Contact:
b) Is an application required for the proposed activity?..Project within Haines State Forest; HSF says they will handle
through DNR easement..................................
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
DNR DIVISION OF OIL & GAS Yes No
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
CPQ Revised 8/15/2008 Page 4 of 18
15. a) Will you be exploring for or producing oil and/or gas? ………………………………………………………………...
b) Will you conduct surface use activities on/within an oil and gas lease or unit? ……………………………………….
If yes, please specify:
16. Do you plan to drill a geothermal well (regardless of land ownership)? ………………………………………………….
17. If you answered yes to any question above, indicate the person you contacted at the appropriate Division of Oil & Gas
office for information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? …………………………………………………………………...
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
Visit the Division of Oil & Gas website for application forms and additional information.
DNR OFFICE OF HISTORY & ARCHAEOLOGY Yes No
18. Will you investigate, remove, or impact historical, archaeological or paleontological resources (anything over 50 years
old) on State-owned land? …………………………………………………………………………………………………
19. If you answered yes to the question above, indicate the person you contacted at the State Historic Preservation Office
for information.
a) Name/date of Contact:
DNR DIVISION OF GEOLOGICAL & GEOPHYSICAL SURVEYS Yes No
20. Is the proposed project located within a natural hazard area designated by a coastal district in the approved district
plan? (Refer to the district plan or contact the coastal district office.) …………………………………………………….
a) If “yes”, describe the measures you will take in the siting, design, construction, and operation of the proposed activity
to protect public safety, services, and the environment from potential damage caused by the designated natural
hazard(s) in the Natural Hazards portion of the attached Coastal Consistency Evaluation (11 AAC 112.210).
21. If you have contacted someone, please indicate the person you contacted at the Coastal District or the State for
information. The Division of Geological & Geophysical Survey may have additional information on hazards for the
area.
a) Name/date of Contact:
DNR DIVISION OF PARKS & OUTDOOR RECREATION Yes No
22. Is the proposed project located in a unit of the Alaska State Park System including navigable waters, tidelands or
submerged lands to three miles offshore? ………………………………………………………………………………….
23. If you answered yes to any question above, indicate the person you contacted at the appropriate DNR Division of Parks
& Recreation office for information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? ……………Project in Chilkoot Bald Eagle Preserve; they are
reviewing to determine what steps we should take next…………...
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
DNR APPROVALS
List the Department of Natural Resources permits or authorizations required for your project below:
Types of project approvals or permits needed. Date application submitted
DNR Land Use Permit 10/13/08
DNR Water Use Permit LAS 14292; priority has been
established;
DNR Div. of Forestry
DNR Div. of Parks & Outdoor Rec (Chilkoot Bald Eagle Preserve)
They are going to follow through
DNR easement process;
Parks is reviewing what steps to take;
DEPARTMENT OF FISH AND GAME (DFG) APPROVALS
Yes
No
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
CPQ Revised 8/15/2008 Page 5 of 18
1. Is your project located in a designated State Game Refuge, Critical Habitat Area or State Game Sanctuary? …………...
2. Does your project include construction/operation of a salmon hatchery? …………………………………………………
3. Does your project affect, or is it related to, a previously permitted salmon hatchery? ……………………………………
4. Does your project include construction of an aquatic farm? ………………………………………………………………
5. Will you work in, remove water or material from, or place anything in, a stream, river or lake? (NOTE: This includes
work or activities below the ordinary high water mark or on ice, in the active flood plain, on islands, in or on the face
of the banks, or, for streams entering or flowing through tidelands, above the level of mean lower low tide. If the
proposed project is located within a special flood hazard area, a municipal floodplain development permit may be
required. Contact the affected city or borough planning department for additional information and a floodplain
determination.) ……………………………………………………………………………………………………………..
a) If yes, name of waterbody: Connelly Lake
6. If you answered yes to any questions above, indicate the person you contacted at the appropriate Department of Fish
and Game office for information. (For projects involving Hatcheries or Aquatic Farms, please contact the Division of
Commercial Fisheries. Other projects should contact the Division of Habitat.)
a) Name/date of Contact:
b) Is an application required for the proposed activity? ………………………………………………………………….
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
DFG APPROVALS
List the Department of Fish and Game permits or authorizations required for your project below:
Types of project approvals or permits needed. Date application submitted
Habitat Permit 10/13/08
DEPARTMENT OF ENVIRONMENTAL CONSERVATION (DEC) APPROVALS
DEC DIVISION OF WATER Yes No
1 a) Will a discharge of non-domestic wastewater to lands, waters, or the subsurface of the state occur? (NOTE: Non-
domestic wastewater includes wastewater from commercial or industrial facilities, excavation projects, wastewater
from man-made containers or containment areas, or any other non-domestic wastewater disposal activities see 18
AAC 72.990 for definitions.) …………………………………………………………………………………………...
b) Will a discharge of domestic wastewater or septage to lands, waters or the subsurface of the state occur? (see 18 AAC
72.990 for definitions.) ……………………………………………………………………………………………..
c) Will the wastewater disposal activity require a mixing zone or zone of deposit to meet Water Quality Standards
(WQS)? (Many disposal activities require a mixing zone to meet WQS, contact DEC if unsure.) ……………………..
d) Will the project include a stormwater collection/discharge system? ……………………………………………………
e) Will the project include placing fill in wetlands? ……………………………………………………………………….
f) Is the surrounding area inundated with water at any time of the year? ………………………………………………….
g) Do you intend to construct, install, modify or use any part of a domestic or non-domestic wastewater treatment or
disposal system? …………………………………………………………………………………………………………
2. Does your project qualify for a general permit for wastewater? ...............................................................
3. If you answered yes to any questions above, indicate the person you contacted at the DEC-Division of Water for
information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? ………………see attached e-mail from DEC…………………...
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
CPQ Revised 8/15/2008 Page 6 of 18
DEC DIVISION OF ENVIRONMENTAL HEALTH Yes No
4 a) Will your project result in construction, modification, or operation of a facility for solid waste disposal? (NOTE:
Solid waste means drilling wastes, household garbage, refuse, sludge, construction or demolition wastes, industrial
solid waste, asbestos, and other discarded, abandoned, or unwanted solid or semi-solid material, whether or not
subject to decomposition, originating from any source. Disposal means placement of solid waste on land.) ……….
b) Will your project result in treatment of solid waste at the site? (Examples of treatment methods include, but are not
limited to: incineration, open burning, baling, and composting.) ………………………………………………………
c) Will your project result in storage or transfer of solid waste at the site? ……………………………………………….
d) Will the project result in storage of more than 50 tons of materials for reuse, recycling, or resource recovery? ………
e) Will any sewage solids or biosolids be disposed of or land-applied to the site? (NOTE: Sewage solids include wastes
that have been removed from a wastewater treatment plant system, such as a septic tank lagoon dredge, or
wastewater treatment sludge that contain no free liquids. Biosolids are the solid, semi- solid or liquid residues
produced during the treatment of domestic septage in a treatment works which are land applied for beneficial use.) ..
5. Will your project require application of oil, pesticides, and/or any other broadcast chemicals? ………………………….
6. Does your project qualify for a general permit for solid waste? ................................................................
7. If you answered yes to any question above, indicate the person you contacted at the DEC- Division of Environmental
Health for information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? …………………………………………………………………...
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
DEC DIVISION OF AIR QUALITY Yes No
8 a) Will you have an asphalt plant designed to process no less than five tons per hour of product? ………………………
b) Will you have a thermal remediation unit with a rated capacity of at least five tons per hours of untreated material? ..
c) Will you have a rock crusher with a rated capacity of at least five tons per hour? ……………………………………..
d) Will you have one or more incinerators with a cumulative rated capacity of 1,000 pounds or more per hour? ………..
e) Will you have a coal preparation plant? ………………………………………………………………………………...
f) Will you have a Port of Anchorage stationary source? ………………………………………………………………….
g) Will you have a facility with the potential to emit no less than 100 tons per year of any regulated air contaminant?.....
h) Will you have a facility with the potential to emit no less than 10 tons per year of any hazardous air contaminant or
25 tons per year of all hazardous air contaminants?........................................................................................................
i) Will you be constructing a new stationary source with a potential to emit greater than: ………………………………
15 tons per year (tpy) of PM-10
40 tpy of nitrogen oxides
40 tpy of sulfur dioxide
0.6 tpy of lead; or
100 tpy of CO within 10 km of a nonattainment area
j) Will you be commencing construction, or (if not already authorized under 18 AAC 50) relocating a portable oil and
gas operation? (answer “yes” unless you will comply with an existing operating permit developed for the portable oil
and gas operation at the permitted location; or you will operate as allowed under AS 46.14.275 without an operating
permit) ………………………………………………………………………………………………………....................
k) Will you be commencing construction or (if not already authorized under 18 AAC 50) relocating an emission unit
with a rated capacity of 10 million Btu or more per hour in a sulfur dioxide special protection area established under
18 AAC 50.025? …………………………………………………………………………………………………………
l) Will you be commencing a physical change to or a change in the method of construction of an existing stationary
source with a potential to emit an air pollutant greater than an amount listed in g) that will cause for that pollutant an
emission increase (calculated at your discretion) as either an increase in potential to emit that is greater than:
10 tpy of PM-10
10 tpy of sulfur dioxide
10 tpy of nitrogen oxides; or
100 tpy of CO within 10 km of a nonattainment area; or
actual emissions and a net emissions increase greater than:
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
CPQ Revised 8/15/2008 Page 7 of 18
10 tpy of PM-10
10 tpy of sulfur dioxide
10 tpy of nitrogen oxides; or
100 tpy of CO within 10 km of a nonattainment area
m) Will you be commencing construction or making a major modification of a Prevention of Significant Deterioration
stationary source under 18 AAC 50.306? ………………………………………………………………………………..
n) Will you be commencing construction or making a major modification of a nonattainment area major stationary
source under 18 AAC 50.311? …………………………………………………………………………………………...
o) Will you be commencing construction or reconstructing a major stationary source under 18 AAC 50.316, for
hazardous air pollutants? Definition of Regulated Air Pollutants can be found at
http://www.epa.gov/ttn/oarpg/t5/memoranda/rapdef.pdf ..................................................................................................
9. If you answered yes to any questions above, indicate the person you contacted at the DEC- Division of Air Quality for
information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? ……………………………………………………………………
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
DEC DIVISION OF SPILL PREVENTION AND RESPONSE Yes No
10 a) Will your project involve the operation of waterborne tank vessels or oil barges that carry crude or non crude oil as
bulk cargo, or the transfer of oil or other petroleum products to or from such a vessel or a pipeline system? ………….
b) Will your project require or include onshore or offshore oil facilities with an effective aggregate storage capacity of
greater than 5,000 barrels of crude oil or greater than 10,000 barrels of non-crude oil? ………………………………..
c) Will you operate facilities on land or water for exploration or production of hydrocarbons? ………………………….
11. If you answered yes to any questions above, indicate the person you contacted at the DEC-Division of Spill Prevention
and Response office for information.
a) Name/date of Contact:
b) Is a plan required for the proposed activity? ……………………………………………………………………
c) If “YES” then submit a signed copy of the completed Oil Discharge Prevention & Contingency Plan to the DCOM.
If “No”, explain why an application isn’t required. Explanation:
DEC APPROVALS
List the Department of Environmental Conservation permits or authorizations required for your project below:
Types of plan approvals or permits needed Date application submitted
FEDERAL APPROVALS
U.S. ARMY CORPS OF ENGINEERS (USACE) Yes No
1. Will you discharge dredged and/or fill material or perform dredging activities in waters of the U.S? Section 404 of the
Clean Water Act requires that a Department of the Army permit be obtained for the placement or discharge of dredged
and/or fill material into waters of the U.S., including wetlands (33 U.S.C. 1344). (Your application to the USACE would
also serve as application for DEC Water Quality Certification.) ………………………………….
2. Will you place fill or structures or perform work in waters of the U.S? Section 10 of the Rivers and Harbors Act of
1899 requires that a Department of the Army permit be obtained for structures or work in or affecting navigable waters
of the U.S. (33 U.S.C. 403) (Waters of the U.S. include marine waters subject to the ebb and flow of the tide, rivers,
streams, lakes tributaries, and wetlands. If you are not certain whether your proposed project is located within a
wetland, contact the USACE Regulatory Division to request a wetlands determination. For additional information
about the Regulatory Program, visit www.poa.usace.army.mil/reg) ………………………………………..
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
CPQ Revised 8/15/2008 Page 8 of 18
3. If you answered yes to the question above, indicate the person you contacted at the US Army Corps of Engineers for
information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? ……………………………………………………………………
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
BUREAU OF LAND MANAGEMENT (BLM) Yes No
4. Is the proposed project located on BLM land, or will you need to cross BLM land for access? ………………………….
5. If you answered yes to the question above, indicate the person you contacted at the Bureau of Land Management for
information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? ……………………………………………………………………
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
U.S. COAST GUARD (USCG) Yes No
6 a) Do you plan to construct a bridge or causeway over tidal (ocean) waters, or navigable rivers, streams or lakes? ……...
b) Does your project involve building an access to an island? …………………………………………………………….
c) Do you plan to site, construct, or operate a deepwater port? ……………………………………………………………
7. If you answered yes to any question above, indicate the person you contacted at the appropriate US Coast Guard office
for information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? ……………………………………………………………………
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
U.S. ENVIRONMENTAL PROTECTION AGENCY (EPA) Yes No
8 a) Will the proposed project have a discharge to any waters? ……………………………………………………………...
b) Will you dispose of sewage sludge? …………………………………………………………………………………….
c) Will construction of your project expose 1 or more acres of soil? (NOTE: This applies to the total amount of land
disturbed, even if disturbance is distributed over more than one season, and also applies to areas that are part of a
larger common plan of development or sale.) …………………………………………………………………………...
d) Is your project an industrial facility that will have stormwater discharge directly related to manufacturing, processing,
or raw materials storage areas at an industrial plant? If you answered yes to c) or d), your project may require an
NPDES Stormwater permit ………………………………………………………………………………………………
9. If you answered yes to any question above, indicate the person you contacted at the US Environmental Protection
Agency for information.
a) Name/date of Contact: 09/30/08; stated that we would just get the COE 404 Permit; COE will communicate with
them.
b) Is an application required for the proposed activity? ……………………………………………………………………
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
FEDERAL AVIATION ADMINISTRATION (FAA) Yes No
10 a) Is your project located within five miles of any public airport? ………………………………………………………
b) Will you have a waste discharge that is likely to decay within 5,000 feet of any public airport? ……………………
11. If you answered yes to the question above, indicate the person you contacted at the Federal Aviation Administration
for information.
a) Name/date of Contact:
FEDERAL ENERGY REGULATORY COMMISSION (FERC) Yes No
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
CPQ Revised 8/15/2008 Page 9 of 18
12 a) Does the project include any of the following: …………………………………………………………………………
1) a non-federal hydroelectric project on any navigable body of water
2) locating a hydro project on federal land (including transmission lines)
3) using surplus water from any federal government dam for a hydro project
b) Does the project include construction and operation, or abandonment of interstate natural gas pipeline facilities
under sections 7 (b) and (c) of the Natural Gas Act (NGA)? .....………………………………………………………
c) Does the project include construction and operation of natural gas or liquefied natural gas importation or exportation
facilities under section 3 of the NGA? .........................................................................................................
d) Does the project include construction for physical interconnection of electric transmission facilities under section
202 (b) of the FPA? ……………………………………………………………………………………………………
13. If you answered yes to any question above, indicate the person you contacted at the appropriate Federal Energy
Regulatory Commission office for information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? ……A jurisdictional determination was requested from FERC on
October 28, 2008………………………………………………………………
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
U.S. FOREST SERVICE (USFS) Yes No
14 a) Does the proposed project involve construction on USFS land? ………………………………………………………..
b) Does the proposed project involve the crossing of USFS land with a water line? ……………………………………...
c) The current list of Forest Service permits that require ACMP consistency review are online at
http://alaskacoast.state.ak.us/Clawhome/handbook/pdf/11_AAC_110.pdf in Article 4, 11 AAC 110.400, pages 28-30.
Does your proposed project include any of Forest Service authorizations found on pages 28-30 of the ACMP
Handbook? ………………………………………………………………………………………………………………
15. If you answered yes to any question above, indicate the person you contacted at United States Forest Service for
information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? ……………………………………………………………………
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
U.S. FISH AND WILDLIFE SERVICE (USFWS) Yes No
16 a) Is your proposed project on land managed by the USFWS? …………………………………………………………….
b) Does your project require a Right of Way from the USFWS under 50 C.F.R. 29 and 50 C.F.R 36? ..............................
17. If you answered yes to any question above, indicate the person you contacted at the US Fish and Wildlife Service for
information.
a) Name/date of Contact:
b) Is an application required for the proposed activity? ……………………………………………………………………
c) If “YES” then submit a signed copy of the completed application to the DCOM. If “No”, explain why an application
isn’t required. Explanation:
OTHER FEDERAL AGENCY APPROVALS Yes No
18 a) Other Federal agencies with authorizations reviewable under the Alaska Coastal Management Program are posted
online at http://alaskacoast.state.ak.us/Clawhome/handbook/pdf/11_AAC_110.pdf in Article 4, 11 AAC 110.400,
pages 28-30. Does your proposed project include any of the Federal agency authorizations found on pages 28-30 of
the ACMP Handbook? …………………………………………………………………………………………………...
b) If yes, which federal authorizations? COE permit
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
CPQ Revised 8/15/2008 Page 10 of 18
19. Have you applied for any other federal permits or authorizations? ………………………………………………………..
Agency Approval Type Date Submitted
COE permit 404 Certification or Individual Permit 11/03/08
FERC Jurisdictional Determination 10/28/08
Note: The Coastal Project Questionnaire (CPQ) identifies state and federal permits subject to a consistency review. You may
need additional permits from other agencies or the affected city and borough government to proceed with your activity. Attach
the documentation requested under the Project Description.
ACMP Consistency Evaluation & Certification Statement
Pursuant to 11 AAC 110.215 (a)(1)(c), the applicant shall submit an evaluation of how the proposed project is consistent with the
statewide standards at 11 AAC 112.200 - 11 AAC 112.990 and with the applicable district enforceable policies, sufficient to support
the consistency certification. Evaluate your project against each section of the state standards and applicable district enforceable
policies using the template below or by submitting a narrative description in letter or report form. District enforceable policies are
available on the ACMP website at http://www.alaskacoast.state.ak.us. Definitions of key terms can be found at: 11 AAC 110.990, 11
AAC 112.990 and 11 AAC 114.990.
If you need more space for an adequate explanation of any of the applicable standards, please attach additional pages to the end of this
document. Be sure to include references to the specific sections and subsections that you are evaluating.
STATEWIDE STANDARDS
11 AAC 112.200. Coastal Development
Standard:
(a) In planning for and approving development in or adjacent to coastal waters, districts and state agencies shall manage
coastal land and water uses in such a manner that those uses that are economically or physically dependent on a coastal
location are given higher priority when compared to uses that do not economically or physically require a coastal
location.
(b) Districts and state agencies shall give, in the following order, priority to
(1) water-dependent uses and activities;
(2) water-related uses and activities; and
(3) uses and activities that are neither water-dependent nor water-related for which there is no practicable inland
alternative to meet the public need for the use or activity.
(c) The placement of structures and the discharge of dredged or fill material into coastal water must, at a minimum,
comply with the standards contained in 33 CFR Parts 320 - 323, revised as of July 1, 2003.
Evaluation:
(a) How is your project economically or physically dependent on a coastal location? Why are you proposing to place
the project at the selected location? Connelly Lake offers a very good storage type of hydroelectric project and
these sites are only available at certain locations based on certain criteria, such as how much elevation change
there is between lake and powerhouse, fish in lake or not (in this case no fish), and how much storage can be
made at the lake by installing a dam and how far is it to market for the power, which isn’t all that far
considering that there is power out to the community of Lutak now, and an old road corridor exists (RS2477).
This project is not on the coast or shoreline, but is in land within the coastal district of Haines.
(b) Evaluation of development priority.
(1) How is the proposed project water-dependent? Explain.
(2) How is the proposed project water-related? Explain.
(3) If the proposed project is neither water-dependent nor water-related, please explain why there is not a practicable
inland alternative that meets the public need for the use or activity. Explain. This project is water dependant and
related because it is a hydroelectric project that is within a coastal district and because it is near the market for
power. This project will not impact coastal waters because it is well in land.
(c) DCOM defers to the United States Corps of Engineers (USACE) to interpret compliance with the referenced
standards. If you plan to discharge or fill waters of the US, have you applied to the Corps of Engineers for the
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
Consistency Evaluation 8/15/2008 Page 11 of 18
appropriate authorization?
We are planning on applying to the COE for a permit.
11 AAC 112.210. Natural hazard areas.
Standard:
(a) In addition to those identified in 11 AAC 112.990, the department, or a district in a district plan, may designate other
natural processes or adverse conditions that present a threat to life or property in the coastal area as natural hazards. Such
designations must provide the scientific basis for designating the natural process or adverse condition as a natural hazard
in the coastal area, along with supporting scientific evidence for the designation.
(b) Areas likely to be affected by the occurrence of a natural hazard may be designated as natural hazard areas by a state
agency or, under 11 AAC 114.250(b), by a district.
(c) Development in a natural hazard area may not be found consistent unless the applicant has taken appropriate
measures in the siting, design, construction, and operation of the proposed activity to protect public safety, services, and
the environment from potential damage caused by known natural hazards.
(d) For purposes of (c) of this section, "appropriate measures in the siting, design, construction, and operation of the
proposed activity" means those measures that, in the judgment of the coordinating agency, in consultation with the
department’s division of geological and geophysical surveys, the Department of Community and Economic Development
as state coordinating agency for the National Flood Insurance Program under 44 C.F.R. 60.25, and other local and state
agencies with expertise,
(1) satisfy relevant codes and safety standards; or
(2) in the absence of such codes and standards;
(A) the project plans are approved by an engineer who is registered in the state and has engineering experience
concerning the specific natural hazard; or
(B) the level of risk presented by the design of the project is low and appropriately addressed by the project plans.
Evaluation:
(a) Describe the natural hazards designated in the district plan as they affect this site.
(b) Describe how the proposed project is designed to accommodate the designated hazards. How will you use site design
and operate the proposed activity to protect public safety, services and the environment from potential damaged caused
by known natural hazards? No natural hazards are identified in the district plan that relate to this site.
(d)(1) Describe the measures you will take to meet relevant codes and safety standards in the siting, design, construction
and operation of the proposed activity.
(d)(2)(A) If your project is located in an area without codes and safety standards, how is your project engineered for the
specific natural hazard? Give the name of the appropriately qualified registered engineer who will approve the plans for
protecting public safety, services, and the environment from damage caused by hazards OR
(d)(2)(B) If the level of risk presented by the design of the project is low, how do the project plans and project design
address the potential natural hazard?
11 AAC 112.220. Coastal access.
Standard:
Districts and state agencies shall ensure that projects maintain and, where appropriate, increase public access to, from,
and along coastal water.
Evaluation:
Please explain how the proposed project will maintain and, where appropriate, increase public access to, from and along
coastal water. This project will not impact coastal waters as it is approximately 16 miles in land from Lutak
Inlet.
11 AAC 112.230. Energy facilities.
Standard:
(a) The siting and approval of major energy facilities by districts and state agencies must be based, to the extent
practicable, on the following standards:
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
Consistency Evaluation 8/15/2008 Page 12 of 18
(1) site facilities so as to minimize adverse environmental and social effects while satisfying industrial requirements;
(2) site facilities so as to be compatible with existing and subsequent adjacent uses and projected community needs;
(3) consolidate facilities;
(4) consider the concurrent use of facilities for public or economic reasons;
(5) cooperate with landowners, developers, and federal agencies in the development of facilities;
(6) select sites with sufficient acreage to allow for reasonable expansion of facilities;
(7) site facilities where existing infrastructure, including roads, docks, and airstrips, is capable of satisfying industrial
requirements;
(8) select harbors and shipping routes with least exposure to reefs, shoals, drift ice, and other obstructions;
(9) encourage the use of vessel traffic control and collision avoidance systems;
(10) select sites where development will require minimal site clearing, dredging, and construction;
(11) site facilities so as to minimize the probability, along shipping routes, of spills or other forms of contamination that
would affect fishing grounds, spawning grounds, and other biologically productive or vulnerable habitats, including
marine mammal rookeries and hauling out grounds and waterfowl nesting areas;
(12) site facilities so that design and construction of those facilities and support infrastructures in coastal areas will allow
for the free passage and movement of fish and wildlife with due consideration for historic migratory patterns;
(13) site facilities so that areas of particular scenic, recreational, environmental, or cultural value, identified in district
plans, will be protected;
(14) site facilities in areas of least biological productivity, diversity, and vulnerability and where effluents and spills can
be controlled or contained;
(15) site facilities where winds and air currents disperse airborne emissions that cannot be captured before escape into
the atmosphere;
(16) site facilities so that associated vessel operations or activities will not result in overcrowded harbors or interfere
with fishing operations and equipment.
(b) The uses authorized by the issuance of state and federal leases, easements, contracts, rights-of-way, or permits for
mineral and petroleum resource extraction are uses of state concern.
Evaluation:
(a) If this standard applies to your project, please describe in detail how the proposed project is designed to meet each
applicable section of this standard:
(1) Project is being sited to use an existing road corridor (RS2477) and to minimize clearing needed. One
such solution is to use an aerial tramway to move materials up the slope for placing the penstock and to
transport materials to the lake. Helicopters will also be used to transport materials and equipment to the
lake rather than build a road. Not constructing a road up to the lake will significantly reduce the
environmental impacts.
(2)
(3)
(4)
(5)
(6)
(7) Project will use the existing RS2477 corridor as an access route and transmission line route to limit
impacts to the environment.
(8)
(9)
(10)
(11)
(12)
(13)This project site will use the existing RS2477 ROW so as to limit scenic and environmental impacts along
the west side of Chilkoot Lake.
(14)
(15)
(16)
(b) List the authorizations for state and federal leases, easements, contracts, rights-of-way, water rights, or permits for
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
Consistency Evaluation 8/15/2008 Page 13 of 18
mineral and petroleum resource extraction you have applied for or received.
11 AAC 112.240. Utility routes and facilities.
Standard:
(a) Utility routes and facilities must be sited inland from beaches and shorelines unless
(1) the route or facility is water-dependent or water related; or
(2) no practicable inland alternative exists to meet the public need for the route or facility.
(b) Utility routes and facilities along the coast must avoid, minimize, or mitigate
(1) alterations in surface and ground water drainage patterns;
(2) disruption in known or reasonably foreseeable wildlife transit;
(3) blockage of existing or traditional access.
Evaluation:
(a) If the proposed utility route or facility is sited adjacent to beaches or shorelines, explain how the route or facility
is water dependent water related or why no practical inland alternative exits.
This project is not near beaches or shorelines.
(b) If the proposed utility route or facility is sited along the coast, explain how you will avoid, minimize or mitigate:
(1) alterations in surface and ground water drainage patterns;
(2) disruption in known or reasonably foreseeable wildlife transit;
(3) blockage of existing or traditional access.
11 AAC 112.250. Timber harvest and processing.
Standard:
AS 41.17 (Forest Resources and Practices Act) and the regulations adopted under that chapter with respect to the harvest
and processing of timber are incorporated into the program and constitute the components of the program with respect to
those purposes.
Evaluation:
Does your activity involve harvesting or processing of timber? Yes No X
If yes, please explain how your proposed project meets the standards of the State Forest Resources and Practices Act.
11 AAC 112.260. Sand and gravel extraction.
Standard:
Sand and gravel may be extracted from coastal waters, intertidal areas, barrier islands, and spits if there is no practicable
alternative to coastal extraction that will meet the public need for the sand or gravel.
Evaluation:
If your proposed project includes extracting sand or gravel from coastal waters, intertidal areas, barrier islands or spits,
please explain why there is no practicable alternative to coastal extraction that meets the public need for sand or gravel.
N/A
11 AAC 112.270. Subsistence.
Standard:
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
Consistency Evaluation 8/15/2008 Page 14 of 18
(a) A project within a subsistence use area designated by the department or under 11 AAC 114.250(g) must avoid or
minimize impacts to subsistence uses of coastal resources.
(b) For a project within a subsistence use area designated under 11 AAC 114.250(g), the applicant shall submit an
analysis or evaluation of reasonably foreseeable adverse impacts of the project on subsistence use as part of
(1) a consistency review packet submitted under 11 AAC 110.215; and
(2) a consistency evaluation under 15 C.F.R. 930.39, 15 C.F.R. 930.58, or 15 C.F.R. 930.76.
(c) Repealed 10/29//2004, Register 172.
(d) Except in nonsubsistence areas identified under AS 16.05.258, the department may, after consultation with the
appropriate district, federally recognized Indian tribes, Native corporations, and other appropriate persons or groups,
designate areas in which a subsistence use is an important use of coastal resources as demonstrated by local usage.
(e) For purposes of this section, "federally recognized Indian tribe," "local usage", and "Native corporation" have the
meanings given in 11 AAC 114.990.
Evaluation:
(a) Is your proposed project located within a subsistence use area designated by a coastal district?
Yes No X
If yes, please describe how the proposed project is designed to “avoid or minimize impacts to subsistence uses of coastal
resources:”
(b) If your project is located in a subsistence use area designated by the coastal district, provide an analysis or evaluation
of its reasonably foreseeable adverse impacts to the subsistence uses.
(c) No response required.
(d) If your project is not located in a designated subsistence use area, please describe any subsistence uses of coastal
resources within the project area. Please be advised that subsistence use areas may be designated by the department
during a review. There is subsistence use of fish resouces in Chilkoot Lake and Chilkoot River below Chilkoot
Lake.
(e) No response required.
11 AAC 112.280. Transportation routes and facilities.
Standard:
Transportation routes and facilities must avoid, minimize, or mitigate
(1) alterations in surface and ground water drainage patterns;
(2) disruption in known or reasonably foreseeable wildlife transit; and
(3) blockage of existing or traditional access.
Evaluation:
If your proposed project includes transportation routes or facilities, describe how it avoids, minimizes, or mitigates
(1) alterations in surface and ground water drainage patterns; The transportation route will be using the existing
RS2477 that will need some improvements such as new culverts, some bridges to cross streams, brushing, and
tree limbing to put the old road back into serviceable condition. Culverts and bridges will be used to avoid
and minimize impacts to fish species using creeks that cross through this road corridor. There should be no
alterations as these actions will be to replace existing and previously existing features.
(2) disruption in known or reasonably foreseeable wildlife transit; and These activities should not impact wildlife
transit other than to provide the occasional motorized disturbance from a maintenance vehicle passing through
to the project site.
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
Consistency Evaluation 8/15/2008 Page 15 of 18
(3) blockage of existing or traditional access. N/A
11 AAC 112.300. Habitats.
Standard:
(a) Habitats in the coastal area that are subject to the program are
(1) offshore areas;
(2) estuaries;
(3) wetlands;
(4) tideflats;
(5) rocky islands and sea cliffs;
(6) barrier islands and lagoons;
(7) exposed high-energy coasts;
(8) rivers, streams, and lakes and the active floodplains and riparian management areas of those rivers, streams, and
lakes; and
(9) important habitat.
(b) The following standards apply to the management of the habitats identified in (a) of this section:
(1) offshore areas must be managed to avoid, minimize, or mitigate significant adverse impacts to competing uses such
as commercial, recreational, or subsistence fishing, to the extent that those uses are determined to be in competition with
the proposed use;
(2) estuaries must be managed to avoid, minimize, or mitigate significant adverse impacts to
(A) adequate water flow and natural water circulation patterns; and
(B) competing uses such as commercial, recreational, or subsistence fishing, to the extent that those uses are determined
to be in competition with the proposed use;
(3) wetlands must be managed to avoid, minimize, or mitigate significant adverse impacts to water flow and natural
drainage patterns;
(4) tideflats must be managed to avoid, minimize, or mitigate significant adverse impacts to
(A) water flow and natural drainage patterns; and
(B) competing uses such as commercial, recreational, or subsistence uses, to the extent that those uses are determined to
be in competition with the proposed use;
(5) rocky islands and sea cliffs must be managed to
(A) avoid, minimize, or mitigate significant adverse impacts to habitat used by coastal species; and
(B) avoid the introduction of competing or destructive species and predators;
(6) barrier islands and lagoons must be managed to avoid, minimize, or mitigate significant adverse impacts (A) to flows
of sediments and water;
(B) from the alteration or redirection of wave energy or marine currents that would lead to the filling in of lagoons or the
erosion of barrier islands; and
(C) from activities that would decrease the use of barrier islands by coastal species, including polar bears and nesting
birds;
(7) exposed high-energy coasts must be managed to avoid, minimize, or mitigate significant adverse impacts
(A) to the mix and transport of sediments; and
(B) from redirection of transport processes and wave energy;
(8) rivers, streams, and lakes must be managed to avoid, minimize, or mitigate significant adverse impacts to
(A) natural water flow;
(B) active floodplains; and
(C) natural vegetation within riparian management areas; and
(9) important habitat
(A) designated under 11 AAC 114.250(h) must be managed for the special productivity of the habitat in accordance with
district enforceable policies adopted under 11 AAC 114.270(g); or
(B) identified under (c)(1)(B) or
(C) of this section must be managed to avoid, minimize, or mitigate significant adverse impacts to the special productivity
of the habitat.
(c) For purposes of this section,
(1) "important habitat" means habitats listed in (a)(1) – (8) of this section and other habitats in the coastal area that are
(A) designated under 11 AAC 114.250(h);
(B) identified by the department as a habitat
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
Consistency Evaluation 8/15/2008 Page 16 of 18
(i) the use of which has a direct and significant impact on coastal water; and
(ii) that is shown by written scientific evidence to be biologically and significantly productive; or
(C) identified as state game refuges, state game sanctuaries, state range areas, or fish and game critical habitat areas
under AS 16.20;
(2) "riparian management area" means the area along or around a waterbody within the following distances, measured
from the outermost extent of the ordinary high water mark of the waterbody:
(A) for the braided portions of a river or stream, 500 feet on either side of the waterbody;
(B) for split channel portions of a river or stream, 200 feet on either side of the waterbody;
(C) for single channel portions of a river or stream, 100 feet on either side of the waterbody;
(D) for a lake, 100 feet of the waterbody.
Evaluation:
(a) List the habitats from (a) above that are within your proposed project area or that could be affected by your proposed
project.
Wetlands, river, stream, lake, important habitat (Chilkoot Bald Eagle Preserve),
(b) Describe how the proposed project avoids, minimizes, or mitigates impacts to each of the identified habitat(s) in
section (a) above. Wetlands: this project will minimize impacts to wetlands by keeping the cleared ROW
corridor as narrow as possible, keep buffers between activity and wetlands when possible, and use effective
erosion & sedimentation control methods to prevent same. River, Stream, and Lake: this project will
minimize impacts to these features by keeping vegetation buffers between them and project activities, where
possible, and using erosion & sedimentation control methods to prevent and minimize impacts to these
waterbodies. Important Habitat: the site will be surveyed for bald eagle nests and the removal of trees and
clearing will be kept to a minimum. In addition, construction activity will be geared to avoid important eagle
breeding or rearing periods, as practical.
(c) No response required.
11 AAC 112.310. Air, land and water quality
Standard:
Not withstanding any other provision of this chapter, the statutes and regulations of the Department of Environmental
Conservation with respect to the protection of air, land, and water quality identified in AS 46.40.040(b) are incorporated
into the program and, as administered by that department, constitute the exclusive components of the program with
respect to those purposes.
Evaluation: No response required.
11 AAC 112.320. Historic, prehistoric, and archeological resources.
Standard:
(a) The department will designate areas of the coastal zone that are important to the study, understanding, or
illustration of national, state, or local history or prehistory, including natural processes.
(b) A project within an area designated under (a) of this section shall comply with the applicable requirements of
AS 41.35.010 – 41.35.240 and 11 AAC 16.010 – 11 AAC 16.900.
Evaluation:
(a) Have you contacted the State Historic Preservation Office (SHPO) to see if your project is in a designated area
of the coastal zone that is important to the study, understanding, or illustration of national, state, or local history or
prehistory, including natural processes?
Not yet, but plan to consult with them.
(b) If your project is within an area designated under (a) of this section, how will you comply with the applicable
requirements in the statutes and regulations listed in (b)?
We will consult with SHPO as to how they want to accomplish compliance.
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
Consistency Evaluation 8/15/2008 Page 17 of 18
Affected Coastal District Enforceable Policies
Evaluate each applicable district enforceable policy using a format similar to the one you completed above for the
State Standards. District enforceable policies are available at 6http://alaskacoast.state.ak.us/. If you need more space
for an adequate explanation of any of the applicable district enforceable policies, please attach additional pages to the end
of this document.
Applicable District Plan(s) Haines District Plan
Enforceable Policy: N/A
Evaluation:
Enforceable Policy:
Evaluation:
Enforceable Policy:
Evaluation:
Certification Statement
The information contained herein is true and complete to the best of my knowledge. I certify that the proposed
activity complies with, and will be conducted in a manner consistent with, the Alaska Coastal Management
Program.
_________________________________________________11/03/08__ ____________________________
Signature of Applicant or Agent Date
Note: Federal agencies conducting an activity that will affect the coastal zone are required to submit a federal
consistency determination, per 15 CFR 930, Subpart C, rather than this certification statement.
ACMP has developed a guide to assist federal agencies with this requirement. Contact ACMP to obtain a copy.
This certification statement will not be complete until all required State and federal authorization requests have
been submitted to the appropriate agencies.
State of Alaska, Department of Natural Resources, Division of Coastal & Ocean Management
Consistency Evaluation 8/15/2008 Page 18 of 18
Project Description: Please provide or attach a brief description of your project including the planned
work, any effects to coastal uses and resources and how your project is being designed to avoid, minimize
and mitigate those effects.
Please see the attached project description.
Project Area: Please provide or attach a map of your project location and your proposed work. (Including nearest
community, the name of the nearest land feature or body of water, and other legal description such as a survey or lot
number.)
Nearest Community: Lutak & Haines
Nearest Waterbody: Connelly Lake, Chilkoot River, Chilkoot Lake, Lutak Inlet
Legal Survey Description: Please see the attached maps.
BLANK PAGE
Glen Martin
From: Ashton, William S (DEC) [william.ashton@alaska.gov]
Sent: Thursday, October 30, 2008 12:47 PM
To: glen.m@aptalaska.com
Subject: RE: Connelly Lake Hydro
Page 1 of 2
10/30/2008
Yes, We use the COE individual permit Public Notice as our application to the 401 certificate.
From: Glen Martin [mailto:glen.m@aptalaska.com]
Sent: Thursday, October 30, 2008 7:50 AM
To: Ashton, William S (DEC)
Subject: RE: Connelly Lake Hydro
William,
Does your response below mean that even if FERC is not involved you would wait for COE to include you in their
permitting process?
Glen
From: Glen Martin [mailto:glen.m@aptalaska.com]
Sent: Wednesday, October 29, 2008 2:43 PM
To: 'Ashton, William S (DEC)'
Subject: RE: Connelly Lake Hydro
William,
This is likely not going to be a FERC project, which is why we filed for a jurisdictional determination. This project
doesn't fit the criteria FERC has for needing their license. We expect them to say this is a non-jurisdictional
project and they would not be involved.
Glen
From: Ashton, William S (DEC) [mailto:william.ashton@alaska.gov]
Sent: Wednesday, October 29, 2008 2:34 PM
To: glen.m@aptalaska.com
Subject: RE: Connelly Lake Hydro
Hi,
ADEC does not issue a 401 certificate for FERC permits. We do issue 401 certificates for Corps of Engineers 404
dredge and fill permits. ADEC does not have any specific permit requirements for FERC projects.
William Ashton
Ph 269‐6283
From: Glen Martin [mailto:glen.m@aptalaska.com]
Sent: Wednesday, October 29, 2008 1:13 PM
To: Ashton, William S (DEC)
Subject: Connelly Lake Hydro
William,
We are starting the permitting for the Connelly Lake Hydro project near Haines, Alaska. We are also seeking a
non-jurisdictional determination from FERC. What permit application do we need to fill out for DEC, or will you
have the Corp. of Engineers handle water quality?
Regards,
Glen
Glen D. Martin
Project Manager
Alaska Power & Telephone Co.
P.O. Box 3222
Port Townsend, WA 98368
(360) 385-1733 x122
Page 2 of 2
10/30/2008
BLANK PAGE
Glen Martin
From: Palmieri, Greg J (DNR) [greg.palmieri@alaska.gov]
Sent: Thursday, August 21, 2008 1:03 PM
To: glen.m@aptalaska.com
Subject: RE: ADL 107601: Connelly Lake Public Easement Application
Page 1 of 3
10/23/2008
Glen,
Reference the map I sent earlier; the property along the access RS2477 is owned by native allotee’s as well as
other individuals.
At the roads beginning from the south it passes through the Sam Dennis allotment (BLM # J10001) USS 974.
Just north of the lake, in section 4, the road passes through the old Reeve’s homestead which was subdivided
into 5 acre lots which are found on both sides of the road. In sections 34 and 35, the road passes through the
Eva L. Pardee allotment (BLM # AA6542). These are the three private owners that may impact development.
The RS2477 designation does not apply in the native allotments as they are settlement land returned from
Federal title to individuals at which point any federal rights were relinquished. The RS2477 does apply across all
remaining lands. I believe a right of way was designated for the existing road location in the subdivision of the
Reeves homestead.
Just a correction on the map in reference I created for you back in October. The township and range info is
incorrect. I used a template map and failed to check that before I sent it to you. There are two townships and
ranges covering the length of you project. Connelly Lake sits in 28s57e and the road passes through 29s58e to
the south. Sorry for the error.
From: Glen Martin [mailto:glen.m@aptalaska.com]
Sent: Wednesday, August 20, 2008 12:25 PM
To: Palmieri, Greg J (DNR)
Subject: RE: ADL 107601: Connelly Lake Public Easement Application
Greg,
Thanks again for the map of Chilkoot Lake and the surrounding land ownership. Regarding the RS2477 route, do
you know if any of the land ownership predates the creation of RS2477? From what I can understand, if RS2477
predates any land ownership, public access is guaranteed, or is that an inaccurate interpretation? Would you be
able to identify for me who the land owners are you mention below and show on the map?
Thanks,
Glen
Glen D. Martin
Project Manager
AP&T
(360) 385-1733 x122
From: Palmieri, Greg J (DNR) [mailto:greg.palmieri@alaska.gov]
Sent: Wednesday, October 24, 2007 4:12 PM
To: Glen Martin
Cc: Josephson, Roy M (DNR); Derr, Chiska C (DNR)
Subject: RE: ADL 107601: Connelly Lake Public Easement Application
Glen,
Your project area is within the Haines State Forest boundary and specifically management unit 8; identified in the
Haines State Forest Management plan which is available at the Division of Lands (or Forestry) office in Juneau for
your review. As you are aware, the project area also includes development in the Chilkat Bald Eagle Preserve.
Your permitting process should continue through the Lands office and we will review your application once the
agency comment period has begun.
The potentially complicated issue, as I see it, will be development access. You may have already considered this,
but here are a few facts that may be of interest.
z Legal road access does not currently exist due to private property holding at the junction of the Lutak
Road.
z The existing Chilkoot Lake Road, identified as a RS2477 route, is in poor condition requiring reconstruction
in many places with several stream crossings required.
z There are private property holdings adjacent to the current road location to the north of the lake between
your project area and the lake head.
Please see the attached map for a land status illustration.
From: Glen Martin [mailto:glen.m@aptalaska.com]
Sent: Wednesday, October 24, 2007 10:15 AM
To: Palmieri, Greg J (DNR)
Subject: RE: ADL 107601: Connelly Lake Public Easement Application
Greg,
Based on Chiska Derr’s e-mail below you evidently work for the Haines State Forest. It appears part of our
proposed project may be within Haines State Forest land, although I don’t have a map delineating the current land
ownership, which I would sure like to have. I have attached a map showing the project boundaries. This project,
the Connolly Lake Hydroelectric Project is not expected to be constructed for a number of years, but it is
important to get some of the permitting in place, particularly a lease of state land.
I would appreciate information on what we would need to do to lease land from the Haines State Forest if indeed
this project is within its boundary.
Regards,
Glen
Glen D. Martin
Project Manager
AP&T
(360) 385-1733 x122
From: Derr, Chiska C (DNR) [mailto:chiska.derr@alaska.gov]
Sent: Tuesday, October 23, 2007 11:38 AM
To: glen.m@aptalaska.com
Cc: Dugaqua, Alexandria R (DNR); Anderson, James W (DNR); Palmieri, Greg J (DNR); Eberhardt, Michael W
(DNR); Scott, Brady A (DNR)
Subject: ADL 107601: Connelly Lake Public Easement Application
Hello Glen,
I got your message asking about the status of the application you submitted in July for a hydro utility
easement near Haines, Alaska. I left a voice message yesterday, but Valerie DeLaune in our water section
Page 2 of 3
10/23/2008
said that sometimes you have problems with your voice mail?
I do have your application, but before we can process it I need:
-$100.00 application fee (I apologize if you already sent it however our records indicate we did not
receive it.)
-Completed Coastal Project Questionaire (CPQ). You can download a blank questionnaire at ACMP’s web
site: http://alaskacoast.state.ak.us/
Please note that I’ve assigned ADL 107601 to your casefile. Please use this number on subsequent
correspondence. I’ve also spoken with our water section, who have assigned water permit LAS 14292
several years ago. It would be helpful if you included that number with your CPQ as well.
Our preliminary research shows that there is a complex mixture of land ownerships and interests within
your project area. It appears you may also need to work with State Parks because of the Chilkat Bald Eagle
Preserve (Mike Eberhardt) and Haines State Forest (Roy Josephson or Greg Palmieri). I’m sending this
message to them as well.
I will be leaving this position soon; this Thursday 25 October is my last day. Please send the application fee
to us, the CPQ to the ACMP office (address is on questionnaire), and your case will be prioritized among our
remaining staff. Unfortunately we are extremely short staffed, so thanks for your patience and
understanding. Please call me if I can help with something in the next few days.
Chiska Derr
Land Adjudicator
Alaska Dept. of Natural Resources
Division of Mining, Land & Water
Southeast Regional Office
400 Willoughby Ave., 4th Floor
P.O. Box 111020
Juneau, Alaska 99801
phone: 907.465.3442
FAX: 907.586.2954
email: chiska.derr@alaska.gov
Page 3 of 3
10/23/2008
BLANK PAGE
October 28, 2008
Kimberly D. Bose
Office of Secretary
Federal Energy Regulatory Commission
888 First Street, N.E.
Washington, D.C. 20426
Re: Connelly Lake Hydro Project
Petition for Declaratory Order
Dear Ms. Bose:
We respectfully submit this original via the Commissions e-filing system of the following
Declaration of Intent and Petition for Declaratory order that the Connelly Lake Hydro
Project is not under the Federal Energy Regulatory Commission’s jurisdiction. The
Applicant believes, after reviewing Section 23(b) of the Federal Power Act, that none of
the criteria in Section 23(b) is met by this project. Therefore, this project should not be
under the Commission’s jurisdiction.
Respectfully Submitted,
Glen D. Martin
Project Manager
(360) 385-1733 x122
(360) 385-7538 fax
Enc. (as stated)
ALASKA POWER & TELEPHONE COMPANY
DECLARATION OF INTENT
FOR THE
CONNELLY LAKE HYDROELECTRIC PROJECT
Submitted to:
FEDERAL ENERGY REGULATORY COMMISSION
Washington, D.C.
OCTOBER 2008
DECLARATION OF INTENT
The location of the project:
State: Alaska
Town: N/A
Street: N/A
County: (Alaska does not have counties)
Stream: Connelly Lake
River Basin Name: Chilkoot River
Township, Range, and Meridian: T28S, R57E, and T29S, R58E, CRM
Applicant Info:
Alaska Power & Telephone Company (AP&T), an Alaska Corporation
193 Otto Street, P.O. Box 3222
Port Townsend, WA 98368
(360) 385-1733 x122
(360) 385-7538 FAX
glen.m@aptalaska.com
Local Electric Utility Company:
Alaska Power & Telephone Company (AP&T), an Alaska Corporation
P.O. Box 30
Haines, AK 99827-0030
(907) 766-6500
(907) 766-6505 FAX
Daniel Gonce (danny.g@aptalaska.com)
Petition for Declaratory Order-FERC Connelly Lake Hydro Project
October 2008 Page 2
PROJECT DESCRIPTION
This document is a declaration of intent to develop a 6.2 MW hydropower project at
Connelly Lake, which is approximately 14 miles northeast of Haines, Alaska, as shown
in Figure 1. The Project is located in Sections 22, 26, 27, 34, 35, and 36 withinT28S,
R57E and Sections 4, 5, 9, 10, 14, 15, 22, 23, 25, 26 within T29S, R58E (Copper River
Meridian). The Project will utilize the natural inflow to Connelly Lake.
The proposed project is located on lands not owned by the United States and is on a non-
navigable stream and other waterbody (lake). The project will provide hydroelectric
power to an area that is becoming more reliant upon diesel generation because of load
growth. The isolated area grid this project would intertie with is operated by AP&T, and
the communities on this grid that would benefit are Haines, Skagway, Klukwan, Lutak,
and Dyea. There would be no interconnection to an interstate power grid, as none exists.
AP&T, an Alaska Corporation, further petitions the Federal Energy Regulatory
Commission (FERC) for a Declaratory order that the proposed Connelly Lake
Hydropower Project is not within the Commission’s jurisdiction. The Applicant has
reviewed Section 23(b) of the Federal Power Act (FPA) to determine whether the project
falls within the stated jurisdictional criteria and believe that none of the four stated
jurisdictional criteria are met by the Connelly Lake Project.
1. PROJECT DESCRIPTlON
The Connelly Lake Hydroelectric Project is located in Southeast Alaska, approximately
14 miles northeast of the City of Haines and 10 miles southwest of the City of Skagway.
Connelly Lake (formerly Upper Chilkoot Lake) is 2280 feet above mean sea level,
connected by an unnamed stream to the Chilkoot River. The project is on state and
private land consisting of the Haines State Forest, Chilkat Bald Eagle Preserve, and some
private land. A 48-foot-high dam would be constructed at the lake outlet. A 6,188-foot-
long penstock would transport water to the powerhouse where one or two turbines would
make electricity at an installed capacity of 6,200 kW and hydraulic capacity of 45 cfs. A
tailrace would discharge this water directly into the Chilkoot River. A 14-mile-long, 34.5
kV transmission line and access road would use RS 2477 which is an old logging road for
access and to transport electricity to the Upper Lynn Canal (ULC) grid.
Project Features
The following description of project features is based on a preliminary evaluation of the
site. The sizes and types of project features are subject to modification as further
evaluations are made.
There will be a 48-foot-high rock fill dam located at the outlet of Connelly Lake, which
would raise the lake elevation from 2,280 to 2,312. The crest length would be
approximately 575 feet, the crest elevation would be approximately 2,318 feet, the crest
Petition for Declaratory Order-FERC Connelly Lake Hydro Project
October 2008 Page 3
width would be approximately 12 feet, and the base width would be approximately 100
feet. The dam would increase the size of the lake from 90 acres to 160 acres and provide
for an active storage capacity of 4,700 acre-feet between El 2280 and El 2312.
The intake would be situated on the left abutment of the dam, with the centerline at about
El 2,270 feet. The intake would be a free-standing concrete structure diverting flow into
a 48-inch-diameter conduit under the dam. An outlet works structure would be located at
the downstream end of the conduit, which would provide a transition to the penstock and
a branch to a 48-in discharge valve to provide for rapid drawdown of the reservoir. A
6,188-foot-long, 30-inch-diameter steel penstock would convey water from the
intake/outlet works to the powerhouse.
The powerhouse would be a prefabricated 40-foot by 60-foot metal building, located on
the east bank of the Chilkoot River at approximately 170 feet in elevation. The
powerhouse will be on a reinforced concrete foundation. The powerhouse will contain
one or two generating units with an installed capacity of 6,200 kW. Hydraulic capacity
would be approximately 45 cfs. A tailrace would be a riprap-lined excavated channel
extending a short distance from the powerhouse to the Chilkoot River to conduct
powerhouse discharges.
Access to the powerhouse area would be via an existing road (RS2477) previously used
for logging that crosses both state and private land as well as construction of
approximately 0.25 miles of new road and a bridge across the river. Access to the dam
and the penstock areas during construction would be by helicopter and the highline
system. A 14-mile-long, 34.5 kV, underground and overhead transmission line would
interconnect with Alaska Power & Telephone Company’s existing 34.5 kV transmission
system at Lutak inlet.
2. JURISDICTIONAL ANALYSIS
Section 23(b) of the Federal Power Act would require project licensing of the project
only if:
a. It is located on a “Navigable Water” of the United States:
b. It occupies lands of the United States:
c. It utilizes surplus water or water power from a government dam;
d. There was a “post-1935 construction” at the project and the project
affected the interest of interstate commerce.
The petitioner’s project does not meet any of these criteria.
Petition for Declaratory Order-FERC Connelly Lake Hydro Project
October 2008 Page 4
a. Navigability
Connelly Lake, an alpine lake, is not reachable via its outlet stream nor is the
Chilkoot River considered navigable. Connelly Lake’s outlet stream is a high
gradient cascade along most of its route, as seen in the photo below.
The Connelly Lake outlet stream is not considered navigable for any portion of its
length and therefore Connelly Lake is not considered navigable.
Photo of Connelly Lake outlet stream
Petition for Declaratory Order-FERC Connelly Lake Hydro Project
October 2008 Page 5
Approximate Location of Powerhouse
b. Land Status
The proposed project is located on State of Alaska land and private land. No
portion of the project is on Federal land. See the enclosed land status map.
c. Surplus Water from Government Dam
There are no government (Federal or State) dams near or above the project, nor
will the project use water from a government dam.
d. Affect on Interstate Commerce
The Connelly Lake Hydroelectric Project will generate and sell power to AP&T
which supplies power to communities in Upper Lynn Canal, which is north of
Juneau. This isolated grid supplies power to Skagway, Haines, and Klukwan in
the upper Chilkat River Valley. The project will not be connected to any
interstate power grid, because none exists. The project, not being on a navigable
stream, will have no effect on shipping or interstate commerce in any form. No
fish are known to use the lake or outlet stream and environmental protections will
Petition for Declaratory Order-FERC Connelly Lake Hydro Project
October 2008 Page 6
protect fish in the Chilkoot River. The project is within the applicants present
certificated service area.
3. CONCLUSION
In AP&T’s review of the applicable jurisdictional criteria found in Section 23(b) of the
Federal Power Act, there was no evidence found that the Connelly Lake Project meets
any one of these criteria. AP&T therefore requests that the Federal Energy Regulatory
Commission issue a Declaratory order finding that the project falls outside of the
Commission’s jurisdiction and does not require a license or permit under the Federal
Power Act.
The facts presented herein are true to the best knowledge of the Applicant.
Sincerely,
Project Manager
Enc. (as stated)
BLANK PAGE
CONNELLY LAKE HYDROELECTRIC PROJECT
PROJECT DESCRIPTION
Project Location
The Connelly Lake Project would be located in Southeast Alaska, approximately 14
miles northeast of the City of Haines and 10 miles southwest of the City of Skagway.
Stream or other body of water: Connelly Lake (formerly Upper Chilkoot Lake) at
elevation 2272 feet above mean sea level, connected by an unnamed stream to the
Chilkoot River.
Affected land: State of Alaska land in Sections 22, 26, 27, 34, 35, and 36 withinT28S,
R57E and Sections 4, 5, 9, 10, 14, 15, 22, 23, 25, 26 within T29S, R58E (Copper River
Meridian).
Project Features
The following description of project features is based on a preliminary evaluation of the
site. The sizes and types of project features are subject to modification as further
evaluations are made.
Dam, Intake and Spillway
There will be a 48-foot-high rock fill dam located at the outlet of Connelly Lake, which
would raise the lake elevation from 2,280 to 2,312. The crest length would be
approximately 575 feet, the crest elevation would be approximately 2,318 feet, the crest
width would be approximately 12 feet, and the base width would be approximately 100
feet. If suitable impervious material can be found in the reservoir area, the dam would
have an impervious core, otherwise, the upstream face would have a concrete or
membrane lining.
The dam would increase the size of the lake from 90 acres to 160 acres and provide for an
active storage capacity of 4,700 acre-feet between El 2280 and El 2312. The reservoir
would be drawn down in the winter and early spring, and refill in the late spring and early
summer. The spillway would be located on a bench cut into the right abutment, and
would have an ungated concrete crest approximately 100 feet long, with the crest
elevation at El 2,312.
The intake would be situated on the left abutment of the dam, with the centerline at about
El 2,270 feet. The intake would be a free-standing concrete structure diverting flow into
a 48-inch-diameter conduit under the dam. An outlet works structure would be located at
the downstream end of the conduit, which would provide a transition to the penstock and
a branch to a 48-in discharge valve to provide for rapid drawdown of the reservoir.
Penstock
A 6,188-foot-long, 30-inch-diameter steel penstock would convey water from the
intake/outlet works to the powerhouse. The penstock would be aligned with a minimum
of horizontal bends to allow construction with a highline system. The penstock would be
exposed and located within a cleared corridor about __ feet wide. The pipe would be
coated with an appropriate color to blend it into the vegetation as much as possible.
Powerhouse
The powerhouse would be a prefabricated 40-foot by 60-foot metal building, located on
the west bank of the Chilkoot River at approximately 170 feet in elevation. The
powerhouse will be on a reinforced concrete foundation. The powerhouse will contain
one or two generating units with an installed capacity of 6,200 kW. Hydraulic capacity
would be approximately 45 cfs.
Tailrace
A tailrace would be a riprap-lined excavated channel extending a short distance from the
powerhouse to the Chilkoot River to conduct powerhouse discharges.
Access
Access to the powerhouse area would be via an existing road previously used for logging
that crosses both state and private land as well as construction of approximately 0.25
miles of new road and a bridge across the river. Access to the dam and the penstock
areas during construction would be by helicopter and the highline system. Access to the
highline system and powerhouse site would be by road. Access during operation would
be by road and helicopter during operation.
Transmission Line and Substation
A 14-mile-long, 34.5 kV, underground and overhead transmission line would
interconnect with Alaska Power & Telephone Company’s existing 34.5 kV transmission
system at Lutak inlet.
Project Generation
The powerhouse will contain one or two generating units with an installed capacity of
6,200 kW. The peak load capacity would be approximately 6.2 MW. The average annual
generation would be about 35 GWh (potential).
Lands of the United States
There are no federal lands within the project boundary, only state and private. The
project would run through the Chilkoot Eagle Preserve and is also in Haines State Forest.
Project Description p. 2 Connelly Lake Hydroelectric Project
Proposed Market
Current electrical demand of the Haines and Skagway Boroughs are expected to increase
as more consumers are placed on the power grid. Although, sufficient hydro generation
presently exists, it is reaching its capacity, requiring the occasional use of diesel for peak
load and late in the winter. It is anticipated that a need for additional hydroelectric power
will occur within the next five years and this storage project will take us well into the
future. Permitting and construction of this project will take about five years to complete
if started now.
Project Maps
The proposed project location is identified on Figure 1: Project Location, as well as
project features and the boundary of the Chilkat Bald Eagle Preserve.
Environment
This project will be within the Haines State Forest, Chilkat Bald Eagle Preserve, and on
some private land along the access road / transmission line route. The Chilkoot River
above Chilkoot Lake has Coho, Sockeye, and Dolly Varden. Connelly Lake and its
outlet stream are above Chilkoot Lake and drain into the Chilkoot River. According to
ADF&G’s habitat maps, the outlet stream from Connelly Lake is not used by any fish.
ADF&G conducted fish surveys in 1995 in Connelly Lake, the outlet stream from
Connelly Lake, a stream approximately 0.25 miles south of the Connelly Lake outlet
stream from the river confluence, and seven other streams along the access road north of
Chilkoot Lake.
The fish studies were part of a cooperative agreement between ADF&G and Haines Light
and Power Company. ADF&G’s finding were:
1. Connelly Lake and its outlet stream do not appear to support fish populations;
2. The lower reaches of the stream approximately 0.25 miles south of the Connelly
Lake outlet stream confluence with the river provides rearing habitat for juvenile
coho and Dolly Varden; and,
3. Seven streams along the access road (north of Chilkoot Lake) support spawning
and/or rearing fish.
Permits
Although no permits have been acquired at this time, there is a water use reservation
number LAS14292 for AP&T from previous efforts to retain this site for hydro
development. Now we are going ahead with development and will acquire all permits
necessary to do so.
Project Description p. 3 Connelly Lake Hydroelectric Project
DNR LAND USE PERMIT
APPLICATION
DNR EASEMENT APPLICATION
102-112 (Rev. 10/01) 1
STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES
DIVISION OF MINING, LAND AND WATER
Northern Region
3700 Airport Way
Fairbanks, AK 99709
(907) 451-2740
Southcentral Region
550 W 7th Ave., Suite 900C
Anchorage, AK 99501-3577
(907) 269-8552
Southeast Region
400 Willoughby, #400
Juneau, AK 99801
(907) 465-3400
APPLICATION FOR EASEMENT
AS 38.05.850
Non-refundable application fee: $100* ADL #
(to be filled in by state)
Applicant’s Name Doing business as:
Mailing Address E-Mail:
City/State/Zip
Message Phone ( ) Work Phone ( ) Soc. Sec. # and/or Tax ID #
Is applicant a nonprofit cooperative association? [ ] yes [ ] no. If yes, are you applying for an exemption under AS
38.05.850(b)? [ ] yes [ ] no. If yes, please submit proof of nonprofit status (e.g. by-laws, articles of incorporation, tax statement).
Location of activity/Legal Description: Municipality , Meridian
Township , Range , Section , 1/4, 1/4
Township , Range , Section , 1/4, 1/4
(attach extra sheets as needed)
Total length of applied-for easement (feet): Total width of applied-for easement (feet):
Acres encompassed by easement: (43,560 square feet = 1 acre)
Specific purpose of easement (e.g. electric utility, fiber-optic conduit or cable, telecommunications tower, road, bridge,
airstrip/airport, driveway, trail, drainage), and type of anticipated traffic (e.g. plane, truck, heavy equipment): Explain
Are you applying for the Division of Mining, Land and Water to reserve a Public Easement? Yes No . Are you applying
to be granted a Private Easement? Yes No . (Note: Annual rental fee required for private easement)
*See 11 AAC 05.010 regarding fees for federal, state, and local government agencies Date Stamp:
ADF&G FISH HABITAT PERMIT
APPLICATION
FH#______________
(Office Use Only)
ALASKA DEPARTMENT OF FISH AND GAME
FISH HABITAT PERMIT APPLICATION
SPECIFIC INSTRUCTIONS
NOTE: Provide as much information as possible. If you need assistance, please contact the
nearest ADF&G Division of Habitat office. The ADF&G reserves the right to require
additional information for the proper protection of fish and game.
Step A: Provide your name, address, and telephone number and the name, address, and
telephone number of the contractor who will be doing the work, if known.
Step B: Describe the type of project (e.g., bridge, culvert, utility line placement, impoundment
structure, bank stabilization, channelization, low water crossing, log removal, etc.) and
the purpose of the project. A brief description of alternatives considered would be useful
but is not required. Attach additional sheets as necessary. Back to Form
Step C: 1. Name of the waterbody in or adjacent to which the project will occur.
2. For Anadromous Stream numbers, refer to the Atlas to the Catalog of Waters
Important for Spawning, Rearing or Migration of Anadromous Fishes.
3. a. Provide plans (or field sketch) showing the following as a minimum: access to
the site, plan view showing all project features and dimensions, or crossing/fording sites;
material removal plans should also include, at a minimum, the following: 50' contour
lines; nearby watercourses and lakes; location of facilities (i.e., screening, washing, and
crushing plants, and commercial and private buildings); aliquot parts identified in order
they are to be mined; site where fuel will be stored; a cross section view of the material
site showing current land and water elevations and bank slopes and final excavation
grades and slopes; and project expansion sites (scale no greater than 1 in. = 400 ft.)
b. Provide specifications, if available; and
c. Provide a current aerial photograph, if available. Back to Form
Step D: Indicate the time of year when project construction will occur. Is the project temporary or
permanent?
Step E: 1. Provide information if applicable on how you will divert the stream.
2. Indicate if channelization will occur.
3. Provide information, if applicable, on how you will alter or modify the banks of the
stream.
4. List all vehicles or equipment by type and size that will be used in the stream.
5. Provide information, if applicable, on what type and amount of material will be
removed from the floodplain, bed, stream, or lake.
6. Provide information, if applicable, on any material you will deposit in the floodplain,
stream, or lake.
July 2008
July 2008
-2-
7. Provide information, if applicable, on any blasting you intend to do in the floodplain,
stream, or lake.
8. Indicate if temporary fills will be required.
9. Indicate if ice bridges will be required.
Step F: What precautions will be taken to insure that fish and other aquatic organisms are
protected from adverse impacts? Outline plan for restoring, rehabilitating, or re-
vegetating the site if channel or bank alterations occur. What precautions will be taken to
maintain State Water Quality Standards? Back to Form
Step G: Provide the waterbody characteristics at the site of the project.
Step H: Provide available hydraulic information for the types of projects indicated. For information
on selecting a culvert size that will ensure fish passage, consult ADF&G permitters or
references available at Division of Habitat offices.
FH#______________
(Office Use Only)
GENERAL WATERWAY/WATERBODY APPLICATION
ALASKA DEPARTMENT OF FISH AND GAME
Division of Habitat
Office Locations
A. APPLICANT
1. Name:
2. Address (Mailing):
Email Address:
Telephone: Fax:
3. Project Coordinator/Contractor:
Name:
Address:
Email Address:
Telephone: Fax:
B. TYPE AND PURPOSE OF PROJECT:
C. LOCATION OF PROJECT SITE
1. Name of River, Stream, or Lake:
or Anadromous Stream No:
2. Legal Description: Township Range
Meridian Section USGS Quad Map
3. Plans, Specifications, and Aerial Photograph. See specific instructions
July 2008
-3-
July 2008
-4-
D. TIME FRAME FOR PROJECT: TO (mm/dd/yy)
E. CONSTRUCTION METHODS:
1. Will the stream be diverted? Yes No
How will the stream be diverted?
How long?
2. Will stream channelization occur? Yes No
3. Will the banks of the stream be altered or modified? Yes No
Describe:
4. List all tracked or wheeled equipment (type and size) that will be used in the stream
(in the water, on ice, or in the floodplain):
How long will equipment be in the stream?
5. a. Will material be removed from the floodplain, bed, stream, or lake? Yes No
Type:
Amount:
b. Will material be removed from below the water table? Yes No
If so, to what depth?
Is a pumping operation planned? Yes No
6. Will material (including spoils, debris, or overburden) be deposited in the floodplain,
stream, or lake? Yes No
If so, what type?
Amount:
Disposal site location(s):
7. Will blasting be performed? Yes No
Weight of charges:
Type of substrate:
8. Will temporary fills in the stream or lake be required during construction (e.g., for
construction traffic around construction site)? Yes No
9. Will ice bridges be required? Yes No
REHABILITATION PLAN
To construct the dam while protecting the environment by minimizing the potential for
sedimentation of the outlet creek, a cofferdam will be used to divert flow around the dam
construction until one side is complete, then the cofferdam would be moved to divert
flow through the just completed portion that will have an aperture (i.e. sluice gate or
other feature) to allow discharge from the lake while construction is completed on the
opposite portion. Rock as rip-rap or “super-size” sacks filled with sand will be used to
construct the cofferdam. Silt fencing and straw or hay bales would also be used as
needed along the outlet stream banks to keep soil from entering water during
construction. Top soils may be scrapped off the bedrock that will be flooded once the
lake is filled behind the dam. Soils would be used to revegetate the areas of construction,
which will stabilize exposed soils.
Construction of the powerhouse and tailrace will employ silt fencing and straw or hay
bales as methods to prevent runoff from entering the Chilkoot River. Vegetative buffers
will also be maintained as much as possible.
Construction of the penstock will mainly require minimal excavation as it will be on the
surface on anchors bolted to bedrock or on small concrete saddles. Silt fencing and straw
or hay bales will be used around each site, as needed, to contain any fines before they can
enter the outlet stream if construction is in the streams vicinity. Otherwise, vegetation
will act as a filter. Seeding of these sites that expose soil with annual grasses that are
allowed by the State will be used to stabilize any excavation after construction.
PHOTOGRAPHS OF PROJECT AREA
PROJECT AREA LAND OWNERSHIP
ULC GRID INFRASTRUCTURE
ONE-LINE DIAGRAMS
RESUME’S
COST WORKSHEET
Renewable Energy Fund
Application Cost Worksheet
Please note that some fields might not be applicable for all technologies or all project
phases. 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. 45 GWh maximum annual hydro generation
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
2. Existing Energy Generation
a) Basic configuration (if system is part of the railbelt grid, leave this section blank)
i. Number of generators/boilers/other There are presently seven hydro turbines. There
are presently eight diesel gensets, four in Skagway
and four in Haines.
ii. Rated capacity of generators/boilers/other Goat Lake Hydro generator rated at 4.0 MW
Dewey Lakes Hydro: No. 1 = 400 kW; No. 2 = 93
kW; No. 3 = 250 kW; No. 4 = 200 kW.
Lutak Hydro has one generator rated at 285 kW.
10-Mile Hydro rated at 600 kW.
Kasidaya Creek Hydro rated at 3.0 MW.
Skagway Diesel: No. 6 = 855 kW; No. 7 = 1100
kW; No. 8 = 500 kW; No. 9 = 930 kW.
Haines Diesel: No. 1 = 800 kW; No. 2 = 1265 kW;
No. 3 = 1600 kW; No. 4 = 2865 kW.
iii. Generator/boilers/other type Generators
iv. Age of generators/boilers/other Goat Lake Hydro = 1997
Dewey Lakes Hydro =
Lutak Hydro = 1999
Kasidaya Creek Hydro = new
v. Efficiency of generators/boilers/other
b) Annual O&M cost
i. Annual O&M cost for labor $125,000 approx.
ii. Annual O&M cost for non-labor $40,000 approx.
c) Annual electricity production and fuel usage (fill in as applicable)
i. Electricity [kWh] 27,441 MWh per year (2007)
ii. Fuel usage (if system is part of the Railbelt grid, leave this section blank
Diesel [gal] 25,327,595 gallons (2007)
Other
iii. Peak Load 4.9 MW
iv. Average Load 2.8 MW
RFA AEA 09-004 Application Cost Worksheet Page 1
Renewable Energy Fund
v. Minimum Load 1.5 MW
vi. Efficiency Varies
vii. Future trends Moderate growth
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu]
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
3. Proposed System Design
a) Installed capacity 12,000 kW
b) Annual renewable electricity generation
i. Diesel [gal or MMBtu]
ii. Electricity [kWh] 45,000,000 kWh max.
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
4. Project Cost
a) Total capital cost of new system $32,000,000 (est. cost of Phase IV)
b) Development cost $1,235,000 (est. cost of Phases I, II, and III)
c) Annual O&M cost of new system $500,000
d) Annual fuel cost $0
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity 650,000 gallons
ii. Heat
iii. Transportation
b) Price of displaced fuel $3.00/gallon est. current price for diesel fuel
c) Other economic benefits Estimated 50-year undiscounted economic benefits
RFA AEA 09-004 Application Cost Worksheet Page 2
Renewable Energy Fund
are:
• For AP&T - - $172,907,000
• For State - - $116,835,000
d) Amount of Alaska public benefits Economic benefits for AP&T and the State as indicated
above: Indirect benefits from reducing environmental
impacts and maintaining healthy tourist/cruise industry
6. Power Purchase/Sales Price
a) Price for power purchase/sale To be determined (approx. $0.25/kWh)
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio For AP&T, 3.20 with 80% grant funding of construction cost
For State, 4.39 with 80% grant funding of construction cost
Non-discounted values based on 50/50 sharing of net revenues
Payback Not calculated
RFA AEA 09-004 Application Cost Worksheet Page 3
Discount Rate 0.0% 12.0%
Net Present Value of Costs to AP&T without Connelly Lake
Diesel Fuel 131,019,000$ 1,031,000$
Variable O&M 3,768,000 31,000
Total 134,787,000$ 1,062,000$
Net Present Value of Costs to AP&T with Connelly Lake
Excluding Cruise Ship Sales
Connelly Lake
Depreciation 6,647,000$ 1,104,000$
Regulated Return 18,221,000$ 4,966,000$
O&M 53,847,000 5,479,000
Subtotal - Yerrick Creek 78,715,000$ 11,549,000$
Diesel
Fuel -$ -$
Variable O&M - -
Subtotal - Diesel -$ -$
Total 78,715,000$ 11,549,000$
Net Benefits 56,072,000$ (10,487,000)$
B/C 1.71 0.09
Net Present Value of Costs to AP&T with Connelly Lake
Including 50% of Cruise Ship Sales
50% of Cruise Ship Sales 116,835,000$ 11,995,000$
Total Net Benefits to AP&T 172,907,000$ 1,508,000$
B/C 3.20 1.13
Analysis for State of Alaska
Including 50% of Cruise Ship Sales
Project Cost 26,588,000$ 26,588,000$
50% of Cruise Ship Sales 116,835,000$ 11,995,000$
B/C 4.39 0.45
CONNELLY LAKE HYDROELECTRIC PROJECT
ECONOMIC ANALYSIS
SUMMARY OF COSTS AND BENEFITS
CONNELLY LAKE HYDROELECTRIC PROJECTECONOMIC ANALYSISGeneral Inflation 2.75% Goat Lake 22,000 MWh Max Energy 35,000 MWh Cruise Ship Annual Load 9000 MWhDiscount Rate 12.00% Dewey Lakes 3,500 MWh O&M (000) 500$ /yr Initial Power Sales Rate (2015) 0.25 $/kWhDiesel Generation Lutak 700 MWh AP&T Cost 6,647$ Sales Escalation Rate 2.75%Fuel Inflation 3.75% 10-Mile 900 MWh AP&T Rate 12.00%Efficiency (kWh/gal) 14.4 Kasidaya 12,000 MWh AEA Cost 26,588$ Var O&M ($/kWh) $0.01AEA Rate 12.00%Project Life 50 YearsRegulated Rate of Retu10.75%1.0% Commercial Residential Cruise Ship Total Existing Hydros Diesel Total Fuel O&M Total Existing HydrosConnelly Lake Diesel Total Fuel O&M Depreciation Regulated Return O&M200727,441 27,441 27,441 - - 20083.00 27,715 27,715 27,715 - - 2009 3.11 27,993 27,993 27,993 - - 2010 3.23 28,272 28,272 28,272 - - 2011 3.35 28,555 28,555 28,555 - - 2012 3.48 28,841 28,841 28,841 - - 2013 3.61 29,129 29,129 29,129 - - 2014 3.74 29,420 29,420 29,420 - - 1 2015 3.88 29,715 - 29,715 29,715 - - - - - 29,715 - - - - - 133$ 715$ 514$ 1,361$ (1,361)$ 0.250 2,250$ 889$ 2 2016 4.03 30,012 - 30,012 30,012 - - - - - 30,012 - - - - - 133$ 700 528$ 1,361$ (1,361)$ 0.257 2,312$ 951$ 3 2017 4.18 30,312 - 30,312 30,312 - - - - - 30,312 - - - - - 133$ 686 542$ 1,361$ (1,361)$ 0.264 2,375$ 1,014$ 4 2018 4.34 30,615 - 30,615 30,615 - - - - - 30,615 - - - - - 133$ 672 557$ 1,362$ (1,362)$ 0.271 2,441$ 1,079$ 5 2019 4.50 30,921 - 30,921 30,921 - - - - - 30,921 - - - - - 133$ 657 573$ 1,363$ (1,363)$ 0.279 2,508$ 1,145$ 6 2020 4.67 31,230 - 31,230 31,230 - - - - - 31,230 - - - - - 133$ 643 588$ 1,364$ (1,364)$ 0.286 2,577$ 1,212$ 7 2021 4.84 31,543 - 31,543 31,543 - - - - - 31,543 - - - - - 133$ 629 605$ 1,366$ (1,366)$ 0.294 2,648$ 1,281$ 8 2022 5.02 31,858 - 31,858 31,858 - - - - - 31,858 - - - - - 133$ 615 621$ 1,369$ (1,369)$ 0.302 2,721$ 1,352$ 9 2023 5.21 32,177 - 32,177 32,177 - - - - - 32,177 - - - - - 133$ 600 638$ 1,371$ (1,371)$ 0.311 2,795$ 1,424$ 10 2024 5.41 32,498 - 32,498 32,498 - - - - - 32,498 - - - - - 133$ 586 656$ 1,375$ (1,375)$ 0.319 2,872$ 1,498$ 11 2025 5.61 32,823 - 32,823 32,823 - - - - - 32,823 - - - - - 133$ 572 674$ 1,378$ (1,378)$ 0.328 2,951$ 1,573$ 12 2026 5.82 33,152 - 33,152 33,152 - - - - - 33,152 - - - - - 133$ 557 692$ 1,383$ (1,383)$ 0.337 3,032$ 1,650$ 13 2027 6.04 33,483 - 33,483 33,483 - - - - - 33,483 - - - - - 133$ 543 711$ 1,387$ (1,387)$ 0.346 3,116$ 1,728$ 14 2028 6.26 33,818 - 33,818 33,818 - - - - - 33,818 - - - - - 133$ 529 731$ 1,393$ (1,393)$ 0.356 3,201$ 1,809$ 15 2029 6.50 34,156 - 34,156 34,156 - - - - - 34,156 - - - - - 133$ 514 751$ 1,399$ (1,399)$ 0.365 3,289$ 1,891$ 16 2030 6.74 34,498 - 34,498 34,498 - - - - - 34,498 - - - - - 133$ 500 772$ 1,405$ (1,405)$ 0.376 3,380$ 1,975$ 17 2031 7.00 34,843 - 34,843 34,843 - - - - - 34,843 - - - - - 133$ 486 793$ 1,412$ (1,412)$ 0.386 3,473$ 2,061$ 18 2032 7.26 35,191 - 35,191 35,191 - - - - - 35,191 - - - - - 133$ 472 815$ 1,419$ (1,419)$ 0.396 3,568$ 2,149$ 19 2033 7.53 35,543 - 35,543 35,543 - - - - - 35,543 - - - - - 133$ 457 837$ 1,427$ (1,427)$ 0.407 3,667$ 2,239$ 20 2034 7.81 35,899 - 35,899 35,899 - - - - - 35,899 - - - - - 133$ 443 860$ 1,436$ (1,436)$ 0.419 3,767$ 2,331$ 21 2035 8.11 36,258 - 36,258 36,258 - - - - - 36,258 - - - - - 133$ 429 884$ 1,446$ (1,446)$ 0.430 3,871$ 2,425$ 22 2036 8.41 36,620 - 36,620 36,620 - - - - - 36,620 - - - - - 133$ 414 908$ 1,456$ (1,456)$ 0.442 3,977$ 2,522$ 23 2037 8.73 36,986 - 36,986 36,986 - - - - - 36,986 - - - - - 133$ 400 933$ 1,466$ (1,466)$ 0.454 4,087$ 2,621$ 24 2038 9.05 37,356 - 37,356 37,356 - - - - - 37,356 - - - - - 133$ 386 959$ 1,478$ (1,478)$ 0.467 4,199$ 2,722$ 25 2039 9.39 37,730 - 37,730 37,730 - - - - - 37,730 - - - - - 133$ 372 985$ 1,490$ (1,490)$ 0.479 4,315$ 2,825$ 26 2040 9.74 38,107 - 38,107 38,107 - - - - - 38,107 - - - - - 133$ 357 1,012$ 1,502$ (1,502)$ 0.493 4,433$ 2,931$ 27 2041 10.11 38,488 - 38,488 38,488 - - - - - 38,488 - - - - - 133$ 343 1,040$ 1,516$ (1,516)$ 0.506 4,555$ 3,039$ 28 2042 10.49 38,873 - 38,873 38,873 - - - - - 38,873 - - - - - 133$ 329 1,069$ 1,530$ (1,530)$ 0.520 4,680$ 3,150$ 29 2043 10.88 39,262 - 39,262 39,100 162 162 122 4 126 39,100 162 - 162 - - 133$ 314 1,098$ 1,545$ (1,419)$ 0.534 4,809$ 3,390$ 30 2044 11.29 39,654 - 39,654 39,100 554 554 435 15 449 39,100 554 - 554 - - 133$ 300 1,128$ 1,561$ (1,112)$ 0.549 4,941$ 3,829$ 31 2045 11.71 40,051 - 40,051 39,100 951 951 773 26 799 39,100 951 - 951 - - 133$ 286 1,159$ 1,578$ (779)$ 0.564 5,077$ 4,299$ 32 2046 12.15 40,451 - 40,451 39,100 1,351 1,351 1,140 38 1,178 39,100 1,351 - 1,351 - - 133$ 272 1,191$ 1,596$ (417)$ 0.580 5,217$ 4,800$ 33 2047 12.61 40,856 - 40,856 39,100 1,756 1,756 1,537 51 1,588 39,100 1,756 - 1,756 - - 133$ 257 1,224$ 1,614$ (26)$ 0.596 5,360$ 5,334$ 34 2048 13.08 41,264 - 41,264 39,100 2,164 2,164 1,966 64 2,030 39,100 2,164 - 2,164 - - 133$ 243 1,258$ 1,634$ 397$ 0.612 5,508$ 5,905$ 35 2049 13.57 41,677 - 41,677 39,100 2,577 2,577 2,429 78 2,507 39,100 2,577 - 2,577 - - 133$ 229 1,292$ 1,654$ 853$ 0.629 5,659$ 6,513$ 36 2050 14.08 42,094 - 42,094 39,100 2,994 2,994 2,927 94 3,021 39,100 2,994 - 2,994 - - 133$ 214 1,328$ 1,675$ 1,346$ 0.646 5,815$ 7,161$ 37 2051 14.61 42,515 - 42,515 39,100 3,415 3,415 3,464 110 3,574 39,100 3,415 - 3,415 - - 133$ 200 1,364$ 1,697$ 1,877$ 0.664 5,975$ 7,852$ 38 2052 15.16 42,940 - 42,940 39,100 3,840 3,840 4,042 127 4,168 39,100 3,840 - 3,840 - - 133$ 186 1,402$ 1,721$ 2,448$ 0.682 6,139$ 8,587$ 39 2053 15.72 43,369 - 43,369 39,100 4,269 4,269 4,662 145 4,807 39,100 4,269 - 4,269 - - 133$ 171 1,440$ 1,745$ 3,062$ 0.701 6,308$ 9,370$ 40 2054 16.31 43,803 - 43,803 39,100 4,703 4,703 5,328 164 5,492 39,100 4,703 - 4,703 - - 133$ 157 1,480$ 1,770$ 3,722$ 0.720 6,481$ 10,204$ 41 2055 16.93 44,241 - 44,241 39,100 5,141 5,141 6,043 184 6,227 39,100 5,141 - 5,141 - - 133$ 143 1,521$ 1,796$ 4,431$ 0.740 6,660$ 11,090$ 42 2056 17.56 44,684 - 44,684 39,100 5,584 5,584 6,809 205 7,015 39,100 5,584 - 5,584 - - 133$ 129 1,562$ 1,824$ 5,190$ 0.760 6,843$ 12,033$ 43 2057 18.22 45,130 - 45,130 39,100 6,030 6,030 7,630 228 7,858 39,100 6,030 - 6,030 - - 133$ 114 1,605$ 1,853$ 6,005$ 0.781 7,031$ 13,036$ 44 2058 18.90 45,582 - 45,582 39,100 6,482 6,482 8,508 252 8,760 39,100 6,482 - 6,482 - - 133$ 100 1,650$ 1,883$ 6,878$ 0.803 7,224$ 14,102$ 45 2059 19.61 46,037 - 46,037 39,100 6,937 6,937 9,448 277 9,725 39,100 6,937 - 6,937 - - 133$ 86 1,695$ 1,914$ 7,811$ 0.825 7,423$ 15,234$ 46 2060 20.35 46,498 - 46,498 39,100 7,398 7,398 10,453 303 10,756 39,100 7,398 - 7,398 - - 133$ 71 1,742$ 1,946$ 8,810$ 0.847 7,627$ 16,438$ 47 2060 21.11 46,963 - 46,963 39,100 7,863 7,863 11,527 322 11,849 39,100 7,863 - 7,863 - - 133$ 57 1,789$ 1,980$ 9,869$ 0.847 7,627$ 17,497$ 48 2060 21.90 47,432 - 47,432 39,100 8,332 8,332 12,673 342 13,015 39,100 8,332 - 8,332 - - 133$ 43 1,839$ 2,014$ 11,000$ 0.847 7,627$ 18,628$ 49 2060 22.72 47,907 - 47,907 39,100 8,807 8,807 13,897 361 14,258 39,100 8,807 - 8,807 - - 133$ 29 1,889$ 2,051$ 12,207$ 0.847 7,627$ 19,834$ 50 2060 23.58 48,386 - 48,386 39,100 9,286 9,286 15,202 381 15,583 39,100 9,286 - 9,286 - - 133$ 14 1,941$ 2,088$ 13,495$ 0.847 7,627$ 21,122$ 1,814,906 100,597 134,787 56,072$ 233,670$ 289,742$ Cruise Ship Sales Total Net BenefitConnelly LakeExisting HydrosGenerationGenerationCruise Ship Sales Rate, $/kWhConnelly LakeTotalNet Benefits Excluding Cruise Ship SalesWith Connelly LakeCostsDieselCostsDieselFuelCost($/gal)YearWithout Connelly LakeGeneralPower RequirementsYCYearLoad GrowthPage 1 of 1
GRANT BUDGET FORM
Alaska Energy Authority - Renewable Energy Fund
BUDGET SUMMARY:
Milestone or Task Federal Funds
State Funds
(This Grant)
Local Match
Funds
(Cash)
Local Match
Funds
(In-Kind)
Future Funds
(Source to be
Determined) TOTALS
Phase 1 - Reconnaissance
Phase 2 - Feasibility
Conceptual design $100,000 $25,000 $125,000
Stream gaging $60,000 $15,000 $75,000
Geotechnical investigations $80,000 $20,000 $100,000
Fish surveys & analysis $100,000 $25,000 $125,000
Wildlife surveys $20,000 $5,000 $25,000
Botanical survey $20,000 $5,000 $25,000
Wetland survey $16,000 $4,000 $20,000
Archaeological survey $24,000 $6,000 $30,000
Water quality testing $8,000 $2,000 $10,000
Phase 3 - Design and Permitting
Permit applications and processing $40,000 $10,000 $50,000
Stream gaging (operation)$40,000 $10,000 $50,000
Penstock alignment survey $40,000 $10,000 $50,000
Final design $440,000 $110,000 $550,000
Phase 4 - Construction
Construction management $500,000 $500,000
Mobilization $1,000,000 $1,000,000
Access road $1,500,000 $1,500,000
Dam and reservoir $8,000,000 $8,000,000
Penstock $9,000,000 $9,000,000
Powerhouse $7,000,000 $7,000,000
Transmission facilities $5,000,000 $5,000,000
Total $0 $988,000 $247,000 $0 $32,000,000 $33,235,000
BUDGET CATAGORIES:
Phase 1 -
Recon-
naissance
Phase 2 -
Assessment/
Feasibility
Phase 3 -
Design and
Permitting
Phase 4 -
Construction
TOTAL
(This Grant,
Phases II & III)
TOTAL
(All Phases)
Direct Labor and Benefits $125,000 $525,000 $5,000,000 $650,000 $5,650,000
Travel, Meals, or Per Diem $10,000 $25,000 $500,000 $35,000 $535,000
Equipment $0 $0 $8,500,000 $0 $8,500,000
Supplies $0 $0 $0 $0 $0
Contractual Services $400,000 $150,000 $9,000,000 $550,000 $9,550,000
Construction Services $0 $0 $9,000,000 $0 $9,000,000
Other Direct Costs $0 $0 $0 $0 $0
TOTAL DIRECT CHARGES $0 $535,000 $700,000 $32,000,000 $1,235,000 $33,235,000
MILESTONE or TASK
BUDGET INFORMATION
CONNELLY LAKE HYDROELECTRIC PROJECT
RFA AEA09-004 Budget Form