HomeMy WebLinkAboutOld Harbor AK Hydroelectric Permitting and Design App
Alaska Village Electric Cooperative
Application for Renewable Energy Fund Grant
Alaska Energy Authority
Old Harbor, Alaska
Hydroelectric Permitting and Design
October 8, 2008
Table of Contents
Grant Application 1
Resumes 2
Cost Worksheet 3
Grant Budget Form 4
Delegation of
Authority 5
Supplemental
Materials 6
Tab 1
Grant Application
RENEWABLE ENERGY FUND
GRANT APPLICATION
AEA 09-004 GRANT APPLICATION PAGE 1 OF 12 10/8/2008
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Alaska Village Electric Cooperative (AVEC)
Type of Entity:
Electric Cooperative / Public Utility
Mailing Address
4831 Eagle Street, Anchorage, AK 99503
Mailing Address
4831 Eagle Street, Anchorage, AK 99503
Telephone
907-565-5358
Telephone
907-565-5358
Telephone
907-565-5358
1.1 APPLICANT POINT OF CONTACT
Name
Brent Petrie
Name
Brent Petrie
Mailing Address
4831 Eagle Street, Anchorage, AK 99503
Alaska Village Electric Cooperative
(AVEC)
Alaska Village Electric Cooperative
(AVEC)
Alaska Village Electric Cooperative (AVEC)
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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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.
Hydropower Project - Phase I - Feasibility, Conceptual Design, and Permitting
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 Project is a 300 kW run of the river hydroelectric plant with a diversion structure, pipeline,
powerhouse, and electric line. The project involves collecting up to 7 cfs of water year round
from a tributary (Mountain Creek) of Barling Bay Creek and transporting it across a basin
boundary to Big Creek. The Project will be developed by Alaska Village Electric Cooperative,
Inc. (AVEC) and it will provide for most of the electrical needs of Old Harbor. AVEC will employ
consultants and contractors as needed to complete the Project. AVEC may utilize local or other
personnel for project maintenance.
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.
Phase I - Feasibility, Conceptual Design, and Permitting:
The first phase of the project is to perform a feasibility study for the alternate
powerhouse location that was identified during previous project permitting and design
work. This location was chosen to reduce the amount of high pressure pipeline and to
reduce post construction monitoring costs. A brief trip via helicopter to examine the
terrain is all that will be needed to determine whether the alternate powerhouse location
appears feasible.
A brief feasibility study will be performed following visual assessment of the alternate
powerhouse location. The study will use existing hydrology data, electrical load data,
and new cost estimates for construction to make a feasibility determination.
A conceptual project design will be done for permitting and consulting with interested
parties and agencies to determine areas of study. This will involve starting the FERC
process, installing a stream gage, selecting a project size, developing project maps and
descriptions, and attending meetings with agencies to discuss the project.
More detailed survey data will be collected once the initial scoping work is complete and
the FERC process is under way. Any studies that are required will also take place
during this phase. The FERC license application will be prepared and submitted. The
license application will contain an updated economic analysis of the project to validate
the viability of the project.
Construction costs for this project were estimated in 2002 to be about $3.5 million. With
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the licensing and engineering work, the total project cost is about $4.1 million.
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.
The primary benefit of the project is to significantly reduce Old Harbor's reliance on diesel fuel
for electrical generation. This will ensure a stable source of electrical power at a lower rate.
Secondary benefits include lower costs associated with diesel storage, less noise and
emissions, lower diesel maintenance costs, and future reductions in state power cost
equalization assistance.
In 2007, Old Harbor used about 54,000 gallons of fuel. The average price of fuel was
$2.56/gallon but current prices are approximately $4/gallon. At current prices, the project will
displace an estimated 95% of the fuel consumed. This equates to a savings of about $200,000
per year. Over the life of the project, 30 years, this savings has a present value of $4.0 million
using a net rate of 3% (5% discount, 2% inflation).
The added public benefit of the project, in addition to immediate fuel savings, is potentially using
the additional power available and marketing the renewable aspect of the project. A
conservative estimate of the present value of the excess power is about $2 million.
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.) $4,100,000
2.5.2 Grant Funds Requested in this application. $225,000
2.5.3 Other Funds to be provided (Project match) $25,000
2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $250,000
2.5.5 Estimated Benefit (Savings) $4,000,000
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).
$2,000,000
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.
Brent Petrie of AVEC will be responsible for managing the Project. Mr. Petrie primary
responsibilities will be the management, oversight, and auditing of engineering and other
consultants who will be performing the bulk of the work. Mr. Petrie has extensive experience
performing this type of work for AVEC. A resume is attached with this application.
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3.2 Project Schedule
Include a schedule for the proposed work that will be funded by this grant. (You may include a chart or
table attachment with a summary of dates below.)
Initial Feasibility will be completed in the early summer of 2009. Federal Energy Regulatory
Commission (FERC) licensing and other permitting will begin in early 2009 and will be
completed in about 2 to 3 years.
Project design will begin in the last year of permitting and will be completed shortly after
submittal of the license application.
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them.
• Determine the feasibility of the alternate powerhouse location.
• Perform an updated feasibility analysis.
• Initiate the FERC process, install a stream gage, and consult with agencies.
• Perform gps survey of alternate powerhouse site and pipe route.
• Perform field studies.
• Submit the license application.
• Obtain all permits.
3.4 Project Resources
Describe the personnel, contractors, equipment, and services you will use to accomplish the project.
Include any partnerships or commitments with other entities you have or anticipate will be needed to
complete your project. Describe any existing contracts and the selection process you may use for major
equipment purchases or contracts. Include brief resumes and references for known, key personnel,
contractors, and suppliers as an attachment to your application.
AVEC plans to contract with Polarconsult for this Project. Polarconsult has extensive
experience working on the Old Harbor hydroelectric project. Their past experience in Old
Harbor includes performing stream gaging and feasibility studies, obtaining a FERC license,
surveying, and project design. Daniel Hertrich will serve as Polarconsult's project manager. A
Polarconsult brochure and resume for Daniel Hertrich is attached.
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3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
Brent Petrie of AVEC will be the primary point of communications. He will coordinate all efforts
between the AEA and AVEC's consultants. AVEC will require such progress reports as needed
to track the progress of it's consultant. AVEC will also require backup for all invoices including
timesheets and receipts. AVEC will forward all information and any other required information
to the grant administrator.
3.6 Project Risk
Discuss potential problems and how you would address them.
The primary risk with this project is going to be cost overruns and whether the alternate
powerhouse location is feasible. The hydrology has been studied in the past as well as the
environmental impacts.
The risk during this phase is less as cost overruns are not as big a risk during the permitting
phase as they are during the construction phase.
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.
The Project will utilize water taken from the East Fork of Mountain Creek at an elevation of
approximately 840'. Stream gaging efforts by the State of Alaska Department of Natural
Resources water division from July 1993 to May 1996 and by Polarconsult from June 1998 to
August 2000 indicate that there is adequate water to meet Old Harbor's energy needs year
round. The median minimum streamflow observed in the spring was about 3 cfs. The project is
currently sized to utilize a maximum of 7 cfs although this may change after completion of the
feasibility analysis.
The powerhouse is located at an elevation of about 80'. This gives a net head of about 760' and
results in a 300 kW peak output. Minimum power spring will be about 140 kW. Clearly this
resource is able to provide a significant benefit to the community. The only drawback with this
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resource is the lower power output during the winter and spring. However, given the Old
Harbor's current peak load is about 100 kW, this is currently not an issue.
Wind is another potential energy resource in the area. Unfortunately, the FAA would not allow a
wind turbine near the airport so the only practical wind site is on Sitkalikak Island across the
water from Old Harbor. AVEC has installed a meteorological tower to assess this resource.
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.
Old Harbor currently meets all of its electrical energy demand through diesel generation. The
generators are relatively modern units with a relatively high net efficiency of 12.3 kWh/gallon in
2007.
The transmission and distribution system consists primarily of overhead lines operating at 7200
volts.
A new bulk fuel farm was installed towards the end of the previous development effort. This
enabled Old Harbor to receive lower cost shipments of fuel.
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.
Old Harbor relies exclusively on diesel fuel for their electrical and heating needs. The
hydroelectric project will practically eliminate the use of diesel fuel for electrical generation.
Additionally, the hydro project will have the potential to significantly cut the amount of heating
fuel used if the significant amount of excess energy from the hydro is utilized.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy customers.
The primary impact of this project will be the stabilization of energy rates. If a significant portion
of construction is eventually funded then the impact on the local energy market will be a
significant reduction in electrical rates.
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4.3 Proposed System
Include information necessary to describe the system you are intending to develop and address potential
system design, land ownership, permits, and environmental issues.
4.3.1 System Design
Provide the following information for the proposed renewable energy system:
• A description of renewable energy technology specific to project location
• Optimum installed capacity
• Anticipated capacity factor
• Anticipated annual generation
• Anticipated barriers
• Basic integration concept
• Delivery methods
The proposed project is a small run of river hydroelectric project. A small weir will impound
water to divert it through the intake structure where leaves and sediment will be filtered out. The
water will then enter the pipeline which consists of HDPE in the upper section. Steel pipe will be
used in the downhill section to handle the higher pressures. The pipeline diameter is mostly 12".
Utilizing 7 cfs of water with the gross head of 760' will result in an installed capacity of about 300
kW although the feasibility study will determine the most appropriate size for the community
based on current and future electrical loading considerations. At a 300 kW size, annual
generation would be 2,000,000 kWh representing a capacity factor of 77%. In 2007 Old Harbor
sold 667,000 kWh.
Extensive feasibility, permitting, and FERC licensing in the past confirmed this project as a
feasible alternative to diesel fuel. However, the two factors that suspended the project
development, which continue to represent a risk to the project development, are the cost of
diesel fuel and the monitoring conditions imposed on the project by regulators. The cost of
diesel, delivered in Old Harbor, dropped to less than $1.00 per gallon. Secondly, the monitoring
requirements effectively negated all benefits, especially at the low cost of diesel fuel.
Once completed, this project will easily integrate into the diesel generation system. The
hydroelectric project, with its output generally exceeding all needs, will be the prime generation
asset and will be controlled by an electronic governing system allowing for rapid changes in the
output.
The following map shows the basic configuration of the Project.
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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 intake, pipeline, and powerhouse, and portions of the transmission line are located
on US Fish and Wildlife Service, Kodiak National Wildlife Refuge land. Additionally, the pipeline,
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powerhouse, and portions of the transmission line are located on an Exxon Valdez Conservation
Easement. Portions of the transmission line are also located on Old Harbor Native Corporation
land and City of Old Harbor land.
Past permitting work basically secured easements from all parties for a slightly different project
on these lands.
4.3.3 Permits
Provide the following informationas 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
Federal Energy Regulatory Commission (FERC) - Hydropower Project License
Originally issued December 12, 2000, the permit expired 4 years later because
construction did not begin. Barriers to construction were primarily altered economics due
to very low diesel fuel costs and high monitoring costs imposed on AVEC. A new license
from FERC should be readily obtainable. The change in location for the powerhouse
should eliminate the need for extensive post construction monitoring.
US Army Corps of Engineers (USACE) - Wetlands Permit
Project was permitted under a nationwide previously.
National Marine Fisheries Service (NMFS) - Essential Fish Habitat Permit
The previous FERC process met the requirements of the Essential Fish Habitat permit.
No problems are anticipated.
US Fish and Wildlife Service (USFWS) - Right of Way Permit
The USFWS right of way permit was essentially complete. The USFWS will have a
significant role in the development of this project. Past approval by the agency and
recent discussions with the real estate department indicate that a new permit is
obtainable for the alternate project which will should have less overall impacts.
State of Alaska, Department of Environmental Conservation - Water Quality Certificate
State of Alaska, Division of Mining, Land, and Water - Water Rights Permit
Additional stream gaging will likely be required by DNR thus the request for stream
gaging funding immediately following the update of the project feasibility.
State of Alaska, Office of Habitat Management and Permitting - Consistency and Coastal
Review
State of Alaska, Alaska Department of Fish and Game - Anadromous Fish Passage Permit
The discharge of 12 cfs in the small Lagoon creek raised concerns about whether habitat
fish enhancement would occur. Monitoring was requested to verify the impacts.
Discharging a lower quantity of water into the much larger Big Creek effectively
eliminates measurable impacts associated with the additional water. ADF&G also agreed
that the withdrawal from Mountain Creek posed no significant impacts. Future permitting
issues are not likely.
State of Alaska, State Historic Preservation Office - Cultural Resources Authorizations
A survey along the new project footprint will be required to assess the potential for
disturbing cultural resources.
State of Alaska, Department of Transportation - Utility and Road permits
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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
The extensive environmental work performed in preparation of the previous FERC
Environmental Assessment (EA) is still valid. The only major issues of concern are discussed
previously. The EA is available from the FERC website under the project number P-11690.
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
The current state of project development dictates that only a simple cost estimate is able to be
made. After investigation of the alternate powerhouse site a more comprehensive estimate will
be made as part of the Feasibility study. The following table details the major project items and
the estimated costs.
Materials Est. Cost
Pipe $ 400,000
Turbine $ 200,000
Controls $ 100,000
Intake $ 100,000
Powehouse $ 150,000
Access Road $ 250,000
Transmission $ 150,000
Labor $ 400,000
Equipment $ 350,000
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Shipping $ 250,000
Subtotal $ 2,350,000
Contingency (25%) $ 575,000
Profit/Overhead (25%) $ 575,000
Permitting $ 250,000
Design and Inspection $ 250,000
Administrative $ 100,000
Total $ 4,100,000
AVEC is asking for State grant funding for Permitting and Feasibility work for fiscal year 2009.
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
Because the hydroelectric project will practically displace all diesel generation the operations and
maintenance costs for the electric utility should decrease. The hydroelectric project will certainly
not require the major overhaul and rebuilding expenses associated with the diesel plant.
However, there may be some monitoring and troubleshooting costs during the first years of the
hydroelectric operation. For this reason, AVEC is assuming that the entire maintenance budget
will simply be applied to the hydroelectric project. Thus, rates will not be affected by the project.
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
Because AVEC, the local utility, will own and operate the project there won't be a requirement for
a power purchase agreement. AVEC may be required to obtain bonds or other financing to build
the project. The savings in fuel costs from the displaced diesel operations would fund the
necessary financing.
4.4.4 Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered in
evaluating the project.
Attached is a completed cost worksheet for the project.
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.
AVEC will utilize existing personnel and procedures for operation and maintenance of the
project. AVEC, as an electric cooperative responsible for power generation in 53 villages
throughout Alaska, has a proven track record and the resources to sustain this development.
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4.4.6 Analysis and Recommendations
Provide information about the economic analysis and the proposed project. Discuss your recommendation
for additional project development work.
The project has the potential to stabilize, or with construction grant assistance, reduce power
generation rates in the community of Old Harbor. With the utilization of the excess power the
hydroelectric project is the best opportunity for the community of Old Harbor to maintain and
improve their economic status and stimulate the potential for future improvements and growth.
With the reduction in reliance on diesel generation Old Harbor will be an asset to the State.
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 primary benefit of the project is to significantly reduce Old Harbor's reliance on diesel fuel for
electrical generation. This will ensure a stable source of electrical power at a lower rate.
Secondary benefits include lower costs associated with diesel storage, less noise and emissions,
lower diesel maintenance costs, and future reductions in state power cost equalization
assistance.
In 2007, Old Harbor used about 54,000 gallons of fuel. The average price of fuel was
$2.56/gallon but current prices are approximately $4/gallon. At current prices, the project will
displace an estimated 95% of the fuel consumed. This equates to a savings of about $200,000
per year. Over the life of the project, 30 years, this savings has a present value of $4.0 million
using a net rate of 3% (5% discount, 2% inflation).
The added public benefit of the project, in addition to immediate fuel savings, is potentially using
the additional power available and marketing the renewable aspect of the project. A
conservative estimate of the present value of the excess power is about $2 million.
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
The grant budget is attached.
Tab 2
Resumes
REPRESENTATIVE HYDROELECTRIC PROJECTS
polarconsult alaska, inc.
OOLLAARRCCOONNSSUULLTT AALLAASSKKAA,, IINNCC.., has extensive experience designing, permitting, constructing and
operating hydroelectric plants in Alaska. Our design professionals have been involved in hydro
in Alaska since 1966, and collectively have over 90 years of experience in the field.
SSEELLEECCTTEEDD HHYYDDRROO PPRROOJJEECCTTSS BBYY PPOOLLAARRCCOONNSSUULLTT
P
Project Design
Capacity
Type of
Project Location Services Rendered
Allison Lake 4,950 kW Storage Valdez, AK Design, FERC Permitting, Owner.
Mc Roberts
Creek 100 kW Run of River Palmer, AK Design, Permitting, Construction,
Operation, Owner.
Indian Creek 60 kW Storage Chignik, AK Permitting, FERC Relicense.
Larsen Bay 475 kW Run of River Larsen Bay, AK Design, Permitting.
Old Harbor 500 kW Run of River Old Harbor, AK Design, State and FERC Permitting.
O’Brien
Creek 400 kW Run of River Chitna, AK Feasibility Study, Preliminary Design.
Lace River 4,950 kW Storage North of
Juneau, AK Preliminary Design, FERC Permitting.
Chuniisax
Creek 280 kW Run of River Atka, AK Feasibility Study, Preliminary Design,
Permitting.
Angoon 600 kW Storage Angoon, AK Feasibility Study, Preliminary Design.
Indian River 125 kW Run of River Tenakee Springs,
AK Feasibility Study, Preliminary Design.
IINNDDIIAANN CCRREEEEKK HHYYDDRROO FFEERRCC LLIICCEENNSSIINNGG
PPOOLLAARRCCOONNSSUULLTT managed the FERC licensing process for
the owner of Indian Creek Hydro, a 60-kW installation
located in Chignik, Alaska. The multi-year FERC
licensing process required significant effort and
coordination relating to the development of the
Environmental Assessment. Key activities included:
Ø NEPA scoping meetings,
Ø Stream gauging and fish surveys,
Ø Geomorphological surveys of Indian Creek, and
Ø Preparation of License Application and EA.
Through innovative techniques and efficient use of the applicant prepared EA process, Polarconsult was able
to minimize licensing costs and reduce the time to complete the licensing process by over fifty percent.
REPRESENTATIVE HYDROELECTRIC PROJECTS
MMccRROOBBEERRTTSS CCRREEEEKK HHYYDDRROO
PPOOLLAARRCCOONNSSUULLTT principals designed, built, own
and operate the McRoberts Creek Hydro, located
near Palmer, Alaska. The 100-kW run-of-river
project delivers power to the Matanuska Electric
Association grid.
The McRoberts Project is an excellent example
of renewable energy systems benefiting Alaskan
communities. The project has improved
recreational access to the Matanuska Peak area,
operates in harmony with the environment, and
provides renewable energy to local homes and
businesses.
OO’’BBRRIIEENN CCRREEEEKK HHYYDDRROO
PPOOLLAARRCCOONNSSUULLTT completed a conceptual design for
the Alaska Energy Authority to evaluate a run-of-
river hydroplant on O’Brien Creek to serve the
community of Chitina, Alaska on the Copper River.
Key activities included:
Ø Paper study to define project parameters,
Ø Handling and analysis of large LIDAR data set
to finalize a conceptual design,
Ø Field reconnaissance to evaluate intake
locations and penstock corridors, and
Ø Preliminary project cost estimate.
CCHHUUNNIIIISSAAXX CCRREEEEKK HHYYDDRROO
PPOOLLAARRCCOONNSSUULLTT designed and permitted a 280-kW run-of -river
hydro plant to offset costly diesel-electric power for the village of
Atka in the Aleutian Islands. Key project features include:
Ø A small concrete dam,
Ø 1,000-foot HDPE penstock, and
Ø francis turbine.
The project, to be completed in 2006, is expected to significantly
reduce power rates in the village.
polarconsult alaska, inc.
energy systems – environmental services – engineering design
1503 West 33rd Avenue, Suite 310 tel: 907.258.2420
Anchorage, Alaska 99503 fax: 907.258.2419
Internet Website: http://www.polarconsult.net
Tab 3
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. 84%
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 1 grid, leave this section blank)
i. Number of generators/boilers/other Three diesel generators
ii. Rated capacity of generators/boilers/other 235,235, and 236
iii. Generator/boilers/other type Caterpillar and Detroit Diesel
iv. Age of generators/boilers/other 2005, 1990, and 2005
v. Efficiency of generators/boilers/other 13.52 KWH generated per gallon in 2007
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor Diesel plant operations costs less fuel is about $146,480 per
year in 2007
ii. Annual O&M cost for non-labor
c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the
Railbelt grid, leave this section blank)
i. Electricity [kWh] 723,717 kwh in calendar 2007
ii. Fuel usage
Diesel [gal] 53,512
Other
iii. Peak Load 138 KW
iv. Average Load 83 KW
v. Minimum Load About 40KW
vi. Efficiency 13.52 KWh generated per gallon
vii. Future trends
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] Not applicable
1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden
Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage
Municipal Light and Power.
RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 1
Renewable Energy Fund
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 300 kW
b) Annual renewable electricity generation
i. Diesel [gal or MMBtu]
ii. Electricity [kWh] 2,200,000
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 $4,100,000
b) Development cost $500,000
c) Annual O&M cost of new system No change
d) Annual fuel cost 0
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity 54,000 gallons
ii. Heat
iii. Transportation
b) Price of displaced fuel
c) Other economic benefits
d) Amount of Alaska public benefits
6. Power Purchase/Sales Price
a) Price for power purchase/sale
RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 2
Renewable Energy Fund
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio
Payback
RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 3
Tab 4
Grant Budget Form
Alaska Energy Authority ‐ Renewable Energy FundOld Harbor BUDGET INFORMATIONBUDGET SUMMARY:Milestone or TaskFederal Funds State FundsLocal Match Funds (Cash)Local Match Funds (In‐Kind)Other FundsTOTALS1. Alternative Powerhouse Feasibility$15,000.00 $15,000.002. Feasibility/ Conceptual Design $25,000.00 $25,000.003. Initiate FERC, Stream Gage, Consultation $45,000.00 $25,000.00 $70,000.004. Collect GPS Survey Data $25,000.00 $25,000.005. Preform Field Studies $40,000.00 $40,000.006. Submit License Application $50,000.00 $50,000.007. Obtain Other Permits $25,000.00 $25,000.00TOTALS $225,000.00 $0.00 $250,000.00Milestone # or Task #BUDGET CATAGORIES:1234567TOTALSDirect Labor and Benefits $2,000.00 $2,500.00 $7,000.00 $2,500.00 $4,000.00 $5,000.00 $2,500.00 $25,500.00Travel, Meals, or Per Diem $8,000.00$8,000.00Equipment $500.00$500.00Supplies $500.00$500.00Contractual Services $4,000.00 $22,500.00 $63,000.00 $22,500.00 $36,000.00 $45,000.00 $22,500.00 $215,500.00Construction Services$0.00Other Direct Costs$0.00TOTAL DIRECT CHARGES $15,000.00 $25,000.00 $70,000.00 $25,000.00 $40,000.00 $50,000.00 $25,000.00 $250,000.00RFA AEA09-004 Budget Form
Tab 5
Delegation of Authority
Tab 6
Supplemental Materials
• Old Harbor Hydroelectric Project
Permit Application
POLARCONSULT ALASKA, INC. OLD HARBOR PRELIMINARY PERMIT APPLICATION
JULY 14, 2008
LIST OF POTENTIALLY AFFECTED ENTITIES AND INTERESTED PARTIES
Director
Alaska Department of
Environmental Conservation
555 Cordova Street
Anchorage, AK 99501
Statewide Hydropower Coordinator
Alaska Department of Fish and
Game
333 Raspberry Road
Anchorage, AK 99518-1599
Project Review Coordinator
Alaska Department of Natural
Resources
550 W. 7th Avenue, Suite 1660
Anchorage, AK 99501-3568
Chief, Water Resources Section
Alaska Department of Natural
Resources
550 W 7th Ave, #1020
Anchorage, AK 99501-3577
State Director
Bureau of Land Management
222 West 7th Avenue, #13
Anchorage, AK 99513-7599
Director, Alaska Operations Office
Environmental Protection Agency
222 West 7th Ave. #19
Anchorage, AK 99513-7588
Secretary
Federal Energy Regulatory
Commission
8888 First Street, N.E.
Washington, DC 20426
Project Coordinator
National Marine Fisheries Service
222 W. 7th Ave., Suite 43
Anchorage, AK 99513-7577
Project Coordinator
National Oceanic and Atmospheric
Administration
PO Box 21109
Juneau, AK 99802
Office of the Solicitor, Alaska
Region
4230 University Drive, Suite 300
Anchorage, AK 99508
Regulatory Branch/Permits
US Army Corps of Engineers
2204 3rd Street
Elmendorf AFB, AK 99506
Regional Director
US Bureau of Indian Affairs
PO Box 25520
Juneau , AK 99802
Regional Environmental Officer
US Department of the Interior
1689 C St Ste 119
Anchorage , AK 99501-5126
Project Coordinator
US Fish and Wildlife Service
1011 East Tudor Rd
Anchorage, AK 99503
ADEC Exxon Valdez Trustee
Council
645 G Street
Anchorage, AK 99501
Alaska Department of Natural
Resources
550 West 7th Ave, #1310
Anchorage, AK 99501-3565
Brent Petrie
Alaska Village Electric
Cooperative, Inc.
4831 Eagle Street
Anchorage, AK 99503-7497
City of Old Harbor
P.O. Box 109
Old Harbor, AK 99643
Portland Regional Office
Federal Energy Regulatory
Commission
101 SW Main Street Suite 905
Portland, OR 97204
Kodiak Area Native Association
3449 E Rezonoff Dr
Kodiak, AK 99615
Kodiak Island Borough
710 Mill Bay Road
Kodiak, AK 99615
Koniag Incorporated
4300 B St Suite 407
Anchorage, AK 99503
Old Harbor Native Corporation
P.O. Box 71
Old Harbor, AK 99643
Old Harbor Tribal Council
P.O. Box 15
Old Harbor, AK 99643
The Conservation Fund
9850 Hiland Road
Eagle River, AK 99577
POLARCONSULT ALASKA, INC. OLD HARBOR PRELIMINARY PERMIT APPLICATION
JULY 14, 2008
BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION
APPLICAT ION FOR PRELIMINARY PERMIT
(1) Alaska Village Electric Cooperative, herein after called the “Applicant”, applies
to the Federal Energy Regulatory Commission for a preliminary permit for the
proposed Old Harbor Hydro, a water power project as described in the attached
exhibits. This application is made in order that the Applicant may secure and
maintain priority of application for a license for the project under Part I of the
Federal Power Act while obtaining the data and performing the acts required to
determine the feasibility of the project and to support an application for a license.
(2) The location of the proposed project is:
State or Territory: Alaska
County: Kodiak Island Borough
Township or nearby town: City of Old Harbor
Stream or other body of water: East fork of Mountain Creek
(3) The exact name, business address, and telephone number of the applicant are:
ALASKA VILLAGE ELECTRIC COOPERATIVE
4831 Eagle Street
Anchorage, Alaska 99503
(907) 565-5358
The exact name and business address of each person authorized to act as agent for
the applicant in this application is:
Brent Petrie
Alaska Village Electric Cooperative
4831 Eagle Street
Anchorage, Alaska 99503
Daniel Hertrich
Polarconsult Alaska, Inc.
1503 W 33rd Ave, #310
Anchorage, AK 99503
(4) The Applicant is a domestic corporation and is not claiming preference under
section 7(a).
(5) The proposed term of the requested permit is 36 months.
(6) Currently there is no existing dam or other project facility.
POLARCONSULT ALASKA, INC. OLD HARBOR PRELIMINARY PERMIT APPLICATION
JULY 14, 2008
EXHIBIT 1 - PROJECT DESCRIPTION
The Project is located near the community of Old Harbor, Alaska. Old Harbor is on the
southeastern coast of Kodiak Island and is approximately 70 miles southwest of the City
of Kodiak and 320 miles southwest of Anchorage. Old Harbor is accessible by small
aircraft and boats.
The Project intake is located at latitude north 57d14'48.7" and longitude west
153d20'38.6" on the east fork of Mountain Creek. The Powerhouse is located at latitude
north 57d14'43.5" and longitude west 153d19'2.6" near Big Creek. The Project is within
the Kodiak Island Borough, on Kodiak National Wildlife Refuge, Old Harbor Native
Corporation, and City of Old Harbor lands.
The Project is a 300 kW run of the river hydroelectric plant with a diversion structure,
pipeline, powerhouse, and electric line. The project involves collecting up to 7 cfs of
water year round from a tributary (Mountain Creek) of Barling Bay Creek and
transporting it across a basin boundary to Big Creek.
The proposed design consists of a 30' wide x 4' tall concrete diversion structure at the
intake site at an elevation of 840 feet above mean sea level. The intake structure will
incorporate a bypass gate for flushing accumulations of sand and gravel. Water will flow
through a trash rack directly into the desanding structure.
The desander will have screens to catch leaves and other suspended debris. The screens
will be flushed by opening a gate that will allow water to drain from the desander. This
gate will also flush out accumulated gravel and sand. The desander will be made of
concrete, wood, steel, or other similar construction materials.
The water will then flow through 2000' of 16" HDPE pipe, 2000' of 14" HDPE pipe, and
finally another 2200' of 12" steel pipe for a total penstock length of 6200'.
The powerhouse, located at an elevation of about 80' will consist of a concrete footing
and slab for anchoring the turbine and pipeline and a 25'x30' wood or metal building.
The building will house the 300 kW impulse turbine, generator, and switchgear. The
tailrace will discharge into a lake or small channel where the project waters will meander
a distance of about a 1/4 mile before entering Big Creek.
A transformer will increase the system voltage for transmission to the electrical grid. The
10,700' long buried transmission line will parallel the access road. The road will be
designed to support standard vehicle traffic for inspection and maintenance of the
powerhouse. A separate trail will be used to access the project intake. The intake access
trail will only support small four wheeler traffic and tracked construction equipment.
With a gross head of 760' the 300 kW project is expected to produce about 2.2 GWh of
electricity each year.
Power from the project will be used entirely by the city of Old Harbor. Currently the City
of Old Harbor obtains its electricity solely through the use of diesel fuel-burning
generators, providing the city with 670,000 kWh of power each year. The hydropower
project will largely supplant the need to operate these fossil fuel generators.
POLARCONSULT ALASKA, INC. OLD HARBOR PRELIMINARY PERMIT APPLICATION
JULY 14, 2008
The status of the lands that the project occupies by legal entity and quarter-quarter section
are as follows:
Township Range Section Portion OWNERSHIP
T 34 S R 26 W 12 NE 1/4 KNWR
T 34 S R 25 W 7 Entire Section KNWR
T 34 S R 25 W 17 NW 1/4 KNWR
T 34 S R 25 W 17 SW 1/4 OHNC
T 34 S R 25 W 18 N 1/2 KNWR
T 34 S R 25 W 20 NW 1/4 OHNC and COH
All sections in Seward Meridian
KNWR = Kodiak National Wildlife Refuge
OHNC = Old Harbor Native Corporation
COH = City of Old Harbor
The project in its final form will occupy 54 acres of U.S. Lands, based upon 100 foot
rights of way along the pipeline, trail, and transmission routes.
EXHIBIT 2 - DESCRIPTION OF PROPOSED STUDIES
Past studies include feasibility studies and the Environmental Assessment that was
prepared as part of the original license (P-11690) issued on December 12, 2000.
Past studies include investigations into the fishery resource at the mouth of Mountain
Creek, archeological investigations, mammal surveys, bird surveys including the
potential for impacts to threatened and endangered species, economic analysis, and
partial project design work including extensive surveying along the proposed intake
access trail.
Studies anticipated for this form of the project include the following:
· Collection of lidar or other survey of the project area for feasibility and design.
· Investigation of the environmental impacts of discharging tailrace waters into Big
Creek and surrounding area.
· Perform archeological investigations along the new project footprint.
Studies will be performed during the fall of 2008 and/or during 2009. Studies will be
completed by the end of 2009.
No new roads will be required to perform the studies but access of the project lands and
surrounding area will be required. This is likely to include travel by foot, four wheeler,
and helicopter.
Access requirements for the field studies will be minimal. Disturbances will be to a very
small portion of the environment and with no lasting impacts. No impacts to cultural
resources will occur during the field studies.
Costs to complete the proposed studies and the license application are estimated to be
$50,000 to $130,000. AVEC is an electric cooperative that manages several dozen
utilities and has the resources to complete all of the study work required. The issuance of
the past license is a testament to this fact.
POLARCONSULT ALASKA, INC. OLD HARBOR PRELIMINARY PERMIT APPLICATION
JULY 14, 2008
EXHIBIT 3
Project Maps
Figure 1 – Vicinity Map
Figure 2 – Project Map