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HomeMy WebLinkAboutKake-Petersburg Intertie 2Main Office Phone.(907) 785-6460 Fac (907)785-6475 Email: Gunnukcreek@starband.net P.O. Box 523 • Kake, AK 99830 Kake Non Profit Fisheries CorpJGunnuk Creek Hatchery Resolution to Adopt the Strategic Economic Development Plan Resolution No. 2005 - 2 WHEREAS, the Community of Kake is experiencing serious, ongoing economic dislocation; and WHEREAS, this economic dislocation has forced people to leave Kake in search of jobs and income; and _ WHEREAS, the economic dislocation and population loss threatens the long4erm survival of the community and the Gunnuk Creek Hatchery; and WHEREAS, the KNFC Board of Directors determines that a strategic economic development plan is necessary to chart a strategy for the community and prioritize projects; and WHEREAS, the KNFC Board of Directors acknowledges that the Gunnuk Creek Hatcheries acceptance and participation in this plan is crucial to the overall success of the economic development plan; and WHEREAS, the KNFC Board of Directors sees the need to create a broad based oommitteato . oversee the preparation and implementation of the strategic economic development plan; and WHEREAS, the University of Oregon's Institute for Policy research and Innovation has worked with the community to prepare a draft strategic economic development plan; NOW, THEREFORE, BE 1T RESOLVED by the KNFC Board of Directors that: 1. The "Preliminary Strategic Economic Development Plan for Kake, Alaska" is hereby adopted as the economic development plan ofthe Kake Non Profit Fisheries Corp. 2. The "Strategic Economic Development Committee" formed to oversee the University of Oregon Planning work is hereby constituted as an official committee of the Kake Non Profit Fisheries Corp. It is charged with overseeing the implementation of the plan, with revising it as necessary, and with reporting regularly to the KNFC Board of Directors. 3. This resolution is effective immediately upon passage. Signature: ! ; Date: Chairman Signature: L,. Date: Secretary ' •l ` i i s i �� WWI, fir" � : � . ,C-' / f / KAKM ALASKA Resolution to Adont the Stmteeie Economic Development Plan WHEREAS, the community of Rake is experiencing serious ongoing economic dislocation; and WHEREAS, this economic dislocation has forced people to leave Kake in search of jobs and income; and WHEREAS, the eoo6omic dislocation and population loss threatens the long-term survival of the community; and WI-IEREAS,.the Kake Chamber of Commerce fully agrees with the determination that a strategic economic development plan is necessary to chart a strategy for the community and prioritize projects; and WHEREAS, the Kake Chamber of Commerce sees the need to create a broad based committee to oversee the preparation and implementation of the strategic economic development plan; and WHEREAS, the University of Oregon's Institute for Policy Research and kmovation has worked with the community to prepare a draft strategic economic development plan. NOW, THEREFORE,13B IT RESOLVED by the Kake Chamber of Commerce that;. 1) 1he "Preliminary Strategic Economic Development Plan for Kake, Alaska" is hereby adopted as the economic development plan of the Kake Chamber of Commerce_ 2) The "Strategic Economic Development Committee" formed to oversee the University of Oregon planning work is hereby constituted as an official committee ofthe Kake Chamber of Commerce. It is charged with overseeing the implementation of the plan, with revising it as necessary, and with reporting regularly to the Kake Chamber of Commerce. VA Ir.a_..._- IMMA . ,, KAKE TRIBAL CORPORATION ++ P.O. Box 263 Kake, AK 99830 (907) 785-3221 FAX (007) 785-6407 KAKE TRIBAL CORPORATION 05-21 Resolution to Adopt The Community Based Strategic Economic Development Plan WHEREAS, the community of Kake needs a community based economic development plan so that as a community we can regain control of our combined economic destiny; and WHEREAS, Kake Tribal Corporation has an economic and social interest in ensuring that it maximizes opportunity for the corporation and its shareholders; and WHEREAS, all economic and political entities of Kake have come to the realization that mutual cooperation and support for common objectives will accomplish more as a unified community; and WHEREAS, the City of Kake, the Organized Village of Kake, The Kake Chamber of Commerce, and the Kake Non -Profit Fisheries corporation all -support the Community Based Strategic Economic Development Plan; and WHEREAS, Kake Tribal Corporation has determined that the Community Based Strategic Economic Development plan supports and advocates for many projects and goals as outlined in our corporate strategic plan; WHEREAS, the document as written is a living document and will be updated periodically to take on current challenges and to support local economic growth opportunities; and WHEREAS, Kake Tribal Corporation has had a significant role in forming and determining the current Community Based Strategic Economic Development Plan; and WHEREAS, the University of Oregon's Institute for Policy research and Innovation has provided professional support and administration in assisting the community prepare a draft strategic economic development plan. NOW, THEREFORE, BE IT RESOLVED: 1) The "Preliminary Strategic Economic Development Plan for Kake, Alaska" is hereby supported by Kake Tribal Corporation to supplement its corporate Strategic Plan. 2) The "Strategic Economic Development Committee" will have a member of Kake Tribal Corporation and will work with other community members and the University of Oregon to plan and assist in the implementation of the plan, with revising it as necessary, and with reporting regularly to the Kake Tribal Corporation. 3) This resolution is effective immediately upon passage. DATED October 11, 2005 per phone poll of Board members. Passed Date rfand Corporate Seal Secretary Signature i THE WAY FORWARD: A PRELIMINARY STRATEGIC ECONOMIC DEVELOPMENT PLAN FOR KAKE, ALASKA IPRI Paper 05-003c - 01 a Table of Contents Introduction.....................................................................""........ 1 Purpose of the Plan Background of the Situation Demographic and Socioeconomic Data Important Previous Planning Efforts in Kake The Current Crisis:...................................................................... 5 The Community Responds............................................................... 6 A Vision of Kake in 2020............................................................... 8 Problems and Opportunities............................................................ 11 Kake's Assets Kake's Liabilities Goals and Strategies...................................................................... 12 APPENDIX: Recent Kake Accomplishments ........................................ 26 iii s, modernization of canning and preserving fish brought new attention to the region and both government and private industry began to invade and control interest in the plentiful resources that were seemingly there for the taking. By 1920, over 100 canneries were operating in Alaska — 24 hours a day, 7 days a week during the seasonal months. Annual production peaked at over 300 million pounds of salmon, bringing the Alaskan industry, which was owned and controlled by outside interests, to total dominance over the combined harvests of Canada and the Lower 48 states. The local labor force could not keep up with the growing demand for workers and therefore, enormous numbers of seasonal workers were imported from outside. For the Tlingit people of southeastern Alaska, many of whom were eventually settled in the village ofKake on Kupreanof Island, this global demand for their resources brought social and economic transformations that threatened the very foundations of their culture. The opportunity of seasonal work — which provided them with the wherewithal for some extra provisions for the winter months and made available new technologies such as electricity and canned foods — also brought confusion, distraction and regulation to their normal way of life. Tlingit involvement in the overpowering extractive commercial fishing industry together with the tug of outside influences have combined to anchor the roots that form the economic culture that exists today in Kake. m Organization of the Community The Organized Village of Kake OVK) is the contemporary Tribal government of the Kake Indians, with the Tribe dating back to time -immemorial as they inhabited and utilized the lands and waters surrounding up to a 40-50 mile radius around the current site of Kake. The Kake Indians had an established social and political structure that served the Tribe for thousands of years until expansion from Russia and the United States of America ultimately forced political change. Thus, with the Indian Reorganization Acts (IRA) of 1934 and as amended in 1936 for Alaska, the contemporary form of the Tribe's governmental structure was.adopted in 1948 and it now functions under its contemporary Constitution. The current Tribal government maintains its long-standing responsibility for the aforementioned territory as it advocates and protects the resources of its customary and traditional gathering areas and the overall well-being of its Tribal Citizens. OVK maintains sovereign status and a direct government -to -government relationship with the United States of America, while also providing many programs and services for its Citizens and overall community of Kake. In addition to the above Tribal government of OVK, the City of Kake was established by community leaders in the early 1900s, essentially In the aftermath of the forced re- settlement they decided to "assimilate" and formed a city government. The City government is structured under the State of Alaska and operates essential infrastructure services plus other typical municipal functions. i, The above have joined forces in current economic development planning for the community ofKake, including formal agreement in a Letter of Intent jointly signed in August 2004. Demographic and Socio-Economic Data a Population Kake is a Tlingit village of 682 residents (2003 Demographer). The population consists of nearly 75% American Indians, the remaining population being primarily White American at 24%. That is remarkably different than -the census picture of the State of Alaska as a whole, where approximately 74% of the population are White Americans, 20% are American Indian and rounded out with small Asian and Black American populations. The median age of residents in Kake is 32.2 years, which compares to the state median of 32.4-years. The per capita income in Kake is $17,411, considerably lower than the State average of $22,600. The median household income is $22,600, which is again significantly lower than the State median of $51,571. O Workforce The 2000 census numbers report that of the total potential workforce in Kake consists of 491 residents. Of that number, 49.5%were unemployed at the time. That number is staggering. Approximately 15% of the residents in Kake have a Bachelor degree or higher, that is much lower than the State average of 25%; however, the residents compare closely to the state numbers in high school education attainment at 85% to the State's 88%. ® Industry 32% of the employed population of Kake work for a government entity, 60% of the population are privately employed, and 6% are sole proprietors. The percentage of government employees is somewhat higher than the State percentage of 27%, which follows that the privately employed and self-employed numbers are lower than the State averages of65% and 8%respectively. The City, OVK,'School District, SEARHC, and Kake Tribal Corporation are the largest employers. The State of Alaska community profile for Kake list 29 current business licenses. The types of businesses include grocery stores and arcades; inns, resorts and coffee shop; fuel services, logging and construction companies; charter and marinas. Important Previous PIanning Efforts in Kake . 0 1984 City ofKake Comprehensive Policy Plan. In 1983 the City of Kake received a grant from the Alaska Department of Community and Regional Affairs to complete its district coastal management program and to develop 13 „ related matter, Kake has an existing oyster farm that, due to excessive transportation and energy cost, is financially marginal. The loss of jobs has been so great that the community estimates at least 150 working age residents have been forced to leave the Island from 2002 to 2005. The social impact to the young and elderly regarding such an exodus is obvious. A number of additional factors amplify this situation. First, largely because of the poor economy the City ofKake is operating with very little tax revenue. Although the current administration has brought the municipality back from the brink of financial insolvency, the strain of a cash starved entity shows in the condition of the community's roads, sewer system and solid waste facility. Second, the community is facing an emergency regarding its water supply. Recently a log plunged the dam that creates the reservoir supplying Kake and totally destroyed it. The community now depends on a pipeline from a small lake that barely meets the needs of the village and the fish processing. Any small additional strain on the system — a fire or a failure of the single pipe — could rapidly deplete Kake's water supply. The dam needs to be replaced, which would then allow the community to have a primary and secondary water source — i.e. redundancy in case one of the two might fail. Additionally, the dam is needed to provide water for the fish hatchery on Gunnuk Creek. Third, transportation and electricity costs are far too high in Kake to support and attract industry. The residential per KWH cost in Kake is nearly 400% higher than it is in Juneau and 600% higher for industrial usage, with no relief in sight. The current ferry system is too inefficient and unreliable even to supply basic goods and services to Kake, much less support an export -based economy that could sustain substantial job and wealth creation in Kake. Finally, without their rights to subsistence living, it is hard to imagine how the people of Kake can survive season to season. The enormous clear -cuts that have provided Kake with industry and jobs for the last 3 decades now threaten the habitat of the wildlife that Kake residents must have an abundance to live on. Forested lands in and around the community of Kake need to be restored. The Community Responds Many southeast communities struggle with issues similar to those ofKake. However, the leadership and people of Kake have taken the initiative to set a new direction for the community. They began by facing up to the difficult reality that they had no choice but to break down the barriers of communications between local factions and come together as one community to develop this Comprehensive Economic Development Strategy (CED.S). symbolic of the fact that their planning efforts and intentions were to ensure the future and best interest of Kake and Kake's children. At the end of this meeting all members of the CEDS Committee, acting on behalf of all of Kake's citizens, willingly and eagerly signed a Letter oflntent to Cooperate for the combined endeavor of economic development. The progress that these actions demonstrate suggests a level of community self- awareness and an internal evaluation process that have not existed before in Kake. They suggest that barriers to communication and cooperation have indeed been broken down. The community is now in better control of its economic future and has united to improve . the living conditions. in their village_ A Vision of Kake in 2020 In the year 2020 the village of Kake on the island of Kupreanof in southeast Alaska, looks remarkably unchanged from 15 years before when approached from a distance. Visitors arriving by water up the Keku Straits are enchanted by the community's quiet and peaceful character as it blankets the island shoreline. Kake's people, the majority of whom are Tlingit, have preserved their cultural values and historical sense of place. The Old Cannery — one of the few remaining historical landmarks of its kind — has been renovated to reflect the community's pride in the past. and control of its future. A Tlingit elder greets visitors arriving at the Cannery cruise ship dock by speaking in the Tlingit native language at the Chamber -of Commerce's visitor center. A Tlingit youth translates the elder's welcoming message to the visitors. A plethora of attractions capture visitors' attention. Outside the Cannery the air is filled with the aroma of inviting foods available from Cannery vendors — including traditional smoked and cooked fish and other Tlingit specialties. Various sounds provide evidence of the numerous small trade shops of artisans and island crafters working to produce their wares inside the complex of buildings. Visitors are treated to a tour of part of the Cannery that has been restored to its original function; wax models dressed in Tlingit fishery clothing stand at their work stations to process salmon. This display complements the Cannery's museum. Those who have enjoyed the previous day of sport fishing can have their catch canned right before their eyes at the small-scale canning service that is associated with the historical wax display. Other parts of the buildings encourage visitors to walk freely and shop while they watch the Tlingit crafters work on their products. Another, more secluded, section of the Cannery is home to those of Kake's elderly who are no longer able to live independently. Here the nationally recognized "Wellness" program administrated by OVK officials offers youth counseling that bonds young and old people to a satisfying consciousness of their civilization's past contributions, current worth, and future distinction. well -funded, strongly united, and involved with all business entities in the community. The Chamber's `Brand Kake" program helps market the community's numerous positive assets and high -quality products with pride to the outside world. Kake enjoys access to the regional electrical grid and by maintaining ownership of a good deal to the infrastructure has been able to hold down the KWH price. There are also several wind generators on the island that have helped Kake make the transition to the intertie and have attracted industry in the interim. The dam is restored with a small hydro unit that helps cover the cost of operations for itself and the fish hatchery. The fish hatchery is a major tourist attraction; it also has more water than it needs and lower electrical cost. The salmon are returning to Kake, the runs are growing, and egg incubation production is at an all time high. The Tongass National Forest is maintaining its lands with excellent stewardship and on Kake Tribal Corporation's lands replanting has replaced clear -cuts with ten-year stands. The main trail systems around Kake have been expanded and improved and are very useful to the people of Kake complementing the community -wide fitness program for better health. Visitors rent mountain bikes on a regular.basis to ride the trails. The City's new sewage treatment plant provides cleaner beaches and improved air quality, as well as allowing the community to offer incoming ships the service of disposing of their waste. . Students in Kake's school system achieve high marks on national tests. They participate in the annual "Kake Clean-up Day" and intern regularly with the Kake Vocational Training Center. Transportation to and from Kake is convenient and cheap for people, goods, and services. The road to Petersburg is complete and the CEDS committee has established strong local regulatory control over the use of the road. A major freight company has set up shop on Kake and is moving large shipping containers in and out of the community, creating more diversity by establishing Kake as a shipping hub for the region. Kake owns and operates its own ferry out of the new ferry terminal and ships people and cargo at will and on a regular timetable. Thus, from a distance Kake does -look very much the same village as 15 years ago. ' However, it has seized its economic independence and shaped the social invasions that come with progress, change and growth. The governments of Kake, private industry, and the people work together with sound direction and perseverance to ensure that the values they stand for and the irreplaceable cultural heritage they represent will remain . unadulterated for generations to come. 10 i+ Kake has both a municipal and a tribal government that are well in touch with the concerns and needs of the community. They have pulled together in joint efforts to capture the future opportunities of gaining access to the regional electric intertie and possible transportation improvements. Tapping into the intertie will give Kake the volume of electricity it needs to attract industry,. opening up a more effective and cost- efficient form of transportation will allow Kake to have better access to goods and services. 0 Kake's Liabilities Kake faces a few barriers in restoring itself to economic health. The community has a limited and relatively low skilled workforce. The lack of an industrial economic base and the isolation of the Island block certain opportunities. Transportation and electrical supply are not adequate to support economic growth in Kake, and their costs are too expensive. The CEDS committee regards improvement of these services as critical to the future of the community. However, connecting to the electrical inter -tie and upgrading the ferry service are longer term projects largely beyond the control of the community. Finally, Kake and other southeast native communities are threatened by a state movement to create boroughs and some federal movement towards "regionalization" of funding to . Indian Tribes in Alaska. These could cause Kake to lose a portion of local control over a variety of decisions regarding resource and land management as well as funding opportunities. It could leave them few options when decisions are made at higher government levels that may not be in Kake's best interest. Goals and Strategies The goals and strategies in this preliminary strategic economic development plan were developed by citizens participating in a community wide meeting and by the Kake CEDS Committee. During the months of June through October 2004, the leadership of Kake set out to develop a strategic plan. During August, the CEDS Committee met in a series of meetings to draft these goals and strategies based on input from the community and on a vision for the village in the year 2020. 0 Priorities ® Create local jobs that area good fit for local workers o Expand opportunities for local businesses 9 Support, protect, and strengthen Tlingit cultural values Conserve and restore natural resources 12 +a Objective 42: Visitor attractions Activity: Tribal House Priority: 2 Responsible party: OVK Collaborators: USFS, City, KTC, CC Resources required/source: Expected date of completion: Performance measure: Activity: Guide services, including "Island Excursions" and "six-pack" operations Priority: lb/2 Responsible party: Private industry Collaborators: Resources required/source: Expected date of completion: Performance measure: Activity: Boardwalk bear viewing platform, and fish trap Priority: lb/2 Responsible party: City, OVK Collaborators: USFS Resources required/source: $30K USFS Expected date of completion: Fall, 2005 Performance measure: Activity: Whale watching and other wildlife (e.g., eagles) Priority: la Responsible party: private industry Collaborators: KTC Resources required/source: Expected date of completion: Performance measure: Activity: stabilize/facelift world's tallest totem pole Priority: la Responsible party: City, OVK, private Collaborators: SEARHC Resources required/source: $100K Expected date of completion: 2008 14 ,t Activity: Upgrade Kake Fish Hatchery equipment Priority: 2 Responsible party: City Collaborators: IINPF Resources required/source: ?? Expected date of completion: long-term Performance measure: Activity: Reforestation of Kake Tribal lands Priority: la Responsible party: KTC Collaborators: OVK, USFS, AK Village Initiatives Resources required/source: grants Expected date of completion: ASAP Performance measure: Activity: Landscaping/beautification of community Priority: la Responsible. party: everybody Collaborators: City, OVK Resources required/source: grants and volunteerism Expected date of completion Performance measure Activity: Support the sustainability of Kake's Oyster Farm Priority: 25 Responsible party: Private industry Collaborators: Resources required/source: Expected date of completion: ' Performance measure: Objective #2: Maintain/restore environmental health Activity: Waste disposal site upgrade Priority: la Respbnsible party: City Collaborators: OVK Resources required/source: $750K Expected date of completion: 2010 Performance measure: 16 Objective #2: Kake Construction Company/Ventures Activity: Priority: la Responsible party: KTC and affiliates Collaborators: private industry Resources required/source: capital market source — outside investment and joint venture agreements Expected date of completion: 2006 Performance measure: Objective #3: Kake cold storage and other seafood processing Activity: Priority: la Responsible party: KTC/and M Collaborators: private industry Resources required/source: investment partner/operating partner Expected date of completion: possibly 2006 Performance measure: ' Objective #4: Kake Tribal developing businesses Activity: Priority: 2/3 Responsible party: KTC/KFI and other Kake Corporation affiliates Collaborators: private industry/SBA Resources required/source: obtain 8a status Expected date of completion: Performance measure: Objective #5: Develop a data center in Kake (see broadband under infrastructure) Activity: Priority: Responsible party: Kwaan Wireless Inc. Collaborators: OVK IU Performance measure Objective 42: Create a revolving loan fund/CQE (Community Quota Entity) Activity: Priority: 3 Responsible party: City Collaborators: Resources required/source: $2M Expected date of completion: end of 2005 Performance measure Objective #3: Create or maintain leadership and citizen's involvement to sustain open communication Activity: Set regular CEDS committee meeting times Priority: la Responsible party: CEDS Committee — City, OVK, CC, KTC, KSD Collaborators: Resources required/source: ongoing, staff and time Expected date of completion: Performance measure ' Activity: Create a tourism committee Priority: la Responsible party: CEDS Committee Collaborators: Resources required/source: ongoing, staff and time Expected date of completion: Performance measure: Activity: Reactivate Coastal Zone Management Committee Priority: la Responsible party: City, OVK Collaborators: CC, KTC, KSD Resources required/source: ongoing, staff and time Expected date of completion: Performance measure: o ,+ Resources required/source: $3M major maintenance/upgrade, $300K annual Head Start operations Expected date of completion: Performance measure: • Infrastructure Goal: modern, well -maintained infrastructure that serves local residents and businesses as well as supporting_ a comfortable experience for visitors Objective #1: Dam project Activity: Priority: la (highest priority) Responsible party: City Collaborators: Resources required/source: $6.9M Expected date of completion: Fall 06 Performance measure: Begin Spring 05 Objective #2: Electrical " Activity: Research and implement altematiee electricity generation Priority: 2 Responsible party: everybody Collaborators: Resources required/source: planning grants Expected date of completion: ongoing Performance measure: T Activity: Currently planned connection to inter tie Priority: 22 Responsible party: City, OVK Collaborators: Resources required/source: $23M special appropriations Expected date of completion: 2010 est. Performance Measure: 2/ Linking to the electrical inter -tie is of critical importance to Kake. It is given a priority of "2" only because the connection —which is estimated to be completed in 2010 — is out of the hands of the community. (See footnote 1, p. 13 for the meaning of the priorities in this plan.) 22 a+ Objective #7: Improve road resurfacing and construction Activity: general Priority: 2 Responsible party: City, OVK Collaborators: Resources required/source: Expected date of completion: Performance measure: Objective #S: Improve road resurfacing and construction Activity: Seal Point Road upgradelpaving project Priority: lb Responsible party: USFS Collaborators: City, OVK Resources required/source: $11M Expected date of completion: 2009 Performance measure: Summer 06 Objective 09: Build more boat slips and improve inner harbor upgrade/expansion Activity: Priority: 2 ' Responsible party: City Collaborators: Resources required/source: $500K Expected date of completion: 2007 Performance measure: Objective #10: Purchase a street sweeper Activity: Priority: 3 Responsible party: City Collaborators: Resources required/source: $15K Expected date of completion: Spring 2005 Performance measure: 24 ,4 Resources required/source: $50K (for objective #3 and #4) Expected date of completion: Performance measure Objective #4: Develop a community wide fitness program Activity: Priority: A Responsible party: City, OVK Collaborators: SEARHC Resources required/source: $50K (for objective #3 and #4) Expected date of completion: Performance measure: Objective #5: Build a bowling alley Activity: Priority: 3 Responsible party: private industry, City, OVK Collaborators: Resources required/source: OVK to search for grants Expected date of completion: Performance measure: ® Monitoring and Evaluation o Responsible parties will report their progress and problems to the CEDS regularly (at least quarterly). A Robert Adkins of the University of Oregon will continue to work with the CEDS Committee in three ways. He will provide staff support to turn this preliminary strategic economic development plan into a Comprehensive Economic - Development Strategy that has been approved by the Economic Development Administration. >> He will help develop performance measures which will provide the community; funding agencies, and investors with an objective view of Kake's overall progress and the progress of specific projects. >> He will conduct regular, systematic reviews of Kake's progress, to help the community make mid -course corrections and revise/update the CEDS as needed. o The CEDS will work with the University of Oregon to secure outside funding to support Adkins in these activities. M. Expected date of completion: Completed Performance measure: Project is completed 7) Activity: Girls and Boys Activity Center Responsible party: Organized Village of Kake Collaborators: City ofKake, Organized Village of Kake Resources required/source: Expected date of completion: Completed Performance measure: Project is completed 8) Activity: Temporary Dam for community water supply and Gunnuk Creek Hatchery water supply Responsible party: Kake Non -Profit Fisheries Corp., Organized Village of Kake - Collaborators: Organized Village of Kake, Kake Non -Profit Fisheries Corp. Resources required/source: $141K Expected date of completion: Completed March, 2001 Performance measure: Project is completed W ' OC 1 1 2003 BY: Southeast Alaska COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY 2oo8 Update MW z iy My, i* Prepared for United States Department of Commerce, Economic Development Administration Prepared by Janet Mehl for Southeast Conference and Central Council Tlingit and Haida Indian Tribes of Alaska Juneau, Alaska June 30, 2008 mil' m 0 n a K C a —u m m e � ° U s 0 � N C I O N 7, C N E g y rn N N d N 3 m _3 N dCD 0 3 b t (f U U y m a E �v. 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Kake - Petersburg Intertie Study i Final Report Table of Contents Kake - Petersburg Intertie Study Table of Contents Table of Contents List of Tables List of Figures Section 1— Introduction and Conclusions Introduction....................................................................................................................................1-1 StudyApproach.............................................................................................................................1-3 Status of Transmission Development in Southeast Alaska............................................................1-5 Conclusions...................................................................................................................................1-6 Section 2 — Transmission Line Routes and Technical Characteristics Introduction.................................................................................................................................... 2-1 Alternative Route Assessment....................................................... R t AI' t C 't i ................................................ 2-2 ou a ignmen rI er a............................................................... Field Evaluation of Alternative Routes .......................................... Initial Screening Assessment of Alternative Routes ..................... Technical Line Design Concepts for the KPTL ............................. SystemVoltage............................................................... Overhead Transmission Line Design Concepts ............... Conceptual Design ................................................ 2-2 ......I ............................. 2-3 .................................... 2-4 .................................... 2-7 .................................... 2-7 .................. I............... 2-10 .................................. 2-10 StructureType.........................................................................................2-10 PhysicalLoading......................................................................................2-10 Foundations and Structure Support.........................................................2-12 Electrical Clearances to Grade................................................................2-12 Conductor Selection................................................................................2-13 Right of Way Clearance........................................................................... 2-14 Access Road Construction Standards.....................................................2-14 Raptor (Eagle) Protection........................................................................ 2-15 SubstationConcepts...................................................................................................... 2-15 SubmarineCables..........................................................................................................2-17 Fiber Optic Communication Cable..................................................................................2-18 PowerFlow Analysis......................................................................................................2-19 DetailedRoute Evaluation...........................................................................................................2-20 KPTL Alternative Route Descriptions............................................................................. 2-21 Center -North Alternative....................................................................................2-22 Center -South Alternative................................................................................... 2-24 Woewodski Tap Alternative ............................................................................... 2-25 Northern Alternative........................................................................................... 2-26 Kake - Petersburg Intertie Study ii Final Report Table of Contents Section 3 — Permitting Requirements and Environmental Issues Overview Introduction......... .... ............................................................................................................... 3-1 NorthernRoute............................................................................................................................3-1 Center -North Alternative................................................................................................................3-2 Center -South Alternative............................................................................................................... 3-3 Environmental and Permitting Issues in Common ........................... .............................................. 3-4 National Environmental Policy Act Process...................................................................................3-4 Section 4 — Estimated Costs of Construction Introduction............................................................................................................................4-1 Section 5 — Example Project Development Schedule Introduction........................................ .................................................................................... 5-1 Permitting and Environmental Studies...........................................................................................5-1 Engineering Related Activities.......................................................................................................5-1 Selection of Project Team.................................................................................................5-1 AlignmentDefinition..........................................................................................................5-2 EngineeringSurvey..........................................................................................................5-2 PreliminaryEngineering...................................................................................................5-3 Geotechnical Investigations.............................................................................................. 5-4 FinalDesign......................................................................................................................5-4 Initiate Construction and Material Procurement Contracts................................................5-4 ConstructionActivities...................................................................................................................5-5 Total Project Development Schedule.............................................................................................5-5 Section 6 — Power Supply Evaluation and Economic Analysis PowerSupply Evaluation...............................................................................................................6-1 Overview..........................................................................................................................6-1 Power Requirements........................................................................................................ 6-2 Petersburg and Wrangell.....................................................................................6-3 Ketchikan............................................................................................................. 6-5 Kake.................................................................................................................... 6-6 Potential Woewodski Mining Facility............................................................. ....... 6-8 Availability of Hydroelectric Energy..................................................................................6-9 LakeTyee Project................................................................................................6-9 Potential New Hydroelectric Generation Facilities..........................................................6-11 Use of Oil -Fired Generating Facilities..................................................... ........................ 6-12 Economic Analysis of Interties.....................................................................................................6-12 Introduction and Assumptions........................................................................................6-12 Projected Cost of Existing Diesel Generation.................................................................6-14 KPTLAnnual Costs........................................................................................................6-16 Cost of Purchased Power...............................................................................................6-19 Estimated Savings with the KPTL...................................................................................6-19 Sensitivity of Results to Altemative Assumptions...........................................................6-21 Kake - Petersburg Intertie Study iii Final Report Table of Contents Section 7 — Other Factors Integration with Southeast Alaska Intertie System.........................................................................7-1 Integration with BC Hydro System.................................................................................................7-1 APPENDICES Appendix A Power Flow Analysis Appendix B KPTL Maps; BC Hydro System Map Appendix C Plan Profile Sheets for KPTL Appendix D Comments on Construction Cost from Doug Trapp Appendix E Assorted Photographs Appendix F IPEC-Kake Service Area — Historical Statistics Appendix G Detailed Analytical Tables Kake - Petersburg Intertie Study iv Final Report Table of Contents List of Tables Table 2-1 Preliminary Screening Level Cost Estimate of Alternative Routes ....... .... ..... ....... 2-6 Table 2-2 Comparative Cost of Construction at Alternative Voltages .................................. 2-8 Table 3-1 Comparable Land Use Designations and Affected Resources by Segment ........ 3-7 Table 3-2 Land Use Issues...............................................................................................3-10 Table 3-3 Summary of Agency Requirements and Associated Costs ................... ............ 3-13 Table 3-4 Estimated Costs of Technical Analyses in Support of NEPA Process . .... .......... 3-17 Table 3-5 Estimated Cost for NEPA Documentation Process ........................................... 3-21 Table 4-1 Estimated Right of Way Clearing and Road Construction Requirements ............ 4-2 Table 4-2 Estimated Comparable Costs of Development and Construction ........................4-3 Table 4-3 Estimated Cost of Project Development and Construction — Center -South .........4-4 Table 44 Estimated Cost of Project Development and Construction — Center -North .......... 4-6 Table 4-5 Estimated Cost of Project Development and Construction — Northern ... ............. 4-8 Table 4-6 Estimated Cost of Project Development and Construction — Southern Woe ..... 4-10 Table 4-7 Estimated Cost of Project Development and Construction —Woe. Tap., ........... 4-12 Table6-1 2003 Energy Loads............................................................................................. 6-3 Table 6-2 Petersburg and Wrangell — Projected Energy Requirements .............................. 6-5 Table 6-3 Ketchikan Public Utilities — Projected Energy Requirements ......... ...................... 6-6 Table 6-4 IPEC — Kake Service Area — Projected Energy Loads ........................................ 6-8 Table 6-5 Estimated Hydroelectric Energy Generation from the Lake Tyee Project.......... 6-10 Table 6-6 Projected Variable Cost of Power Production with Diesel Gen. — Kake.............6-15 Table 6-7 Projected Variable Cost of Power Production with Diesel Gen. — Woe. Mine.... 6-15 Table 6-8 Kake — Petersburg Intertie, Estimated Annual 0&M Costs................................6-17 Table 6-9 Estimated Annual KPTL Administrative Costs ...................................... ............. 6-18 Table 6-10 Projected Cost of Power and Savings with the Intertie — Kake .......................... 6-20 Table 6-11 Comparison of Savings using Alternative Assumptions ........................ ............. 6-22 List of Figures Figure1-1 Comparative Matrix.............................................................................................1-9 Figure 1-2 Southeast Alaska Intertie System......................................................................1-11 Figure 2-1 KPTL Routes (Six Alternatives).........................................................................2-5a Figure 2-2 Detailed Segment Lengths................................................................................ 2-5b Figure 2-3 69-kV Wood Pole Configuration......................................................................2-10a Figure 2-4 Typical Right -of -Way Clearance......................................................................2-14a Figure 2-5 Substation Configuration...................................................................................2-16 Figure 2-6 Submarine Cable Typical Cross-section.........................................................2-18a Figure 2-7 KPTL Routes (Four Alternatives) with Two Enlargements ................................. 2-28 Figure 3-1 NEPA Process Overview.....................................................................................3-5 Figure 3-2 Prolewy Point Management Unit Description.....................................................3-22 Figure 3-3 Land Use Designations and Wilderness on Kupreanof and Mitkof Islands .......3-23 Figure 3-4 Anadromous Streams and Coho Presence on Kupreanof and Mitkof Islands ... 3-24 Figure 3-5 General Areas of Potential ADF&G Concern.....................................................3-25 Figure 3-6 Old Growth Forest on Kupreanof and Mitkof Islands ......................................... 3-26 Figure 6-1 Annual Energy Sales in Kake by Customer Class ................................ ............... 6-7 Kake - Petersburg Intertie Study v Final Report Section 1 Introduction and Conclusions Introduction The Southeast Conference is continuing to evaluate the feasibility of constructing a transmission line between Kake and Petersburg (the "Kake — Petersburg Intertie" or "KPTL") to deliver surplus hydroelectric power to Kake and eliminate the total reliance upon diesel generation that currently exists. In September 2004, the Southeast Conference retained D. Hittle & Associates, Inc. (DHA) to conduct a study of the KPTL (the "KPTL Study") as a follow-on study to the Southeast Alaska Intertie Study prepared for the Southeast Conference in 2003 (the "2003 Intertie Study"). The 2003 Intertie Study provided an overview of a complete electrical transmission system in Southeast Alaska with emphasis on two initial transmission interconnection segments between: (1) Kake and Petersburg and, (2) Juneau, the Kennecott Mining Company — Greens Creek Mine (KMC-GC) on Admiralty Island and Hoonah. The 2003 Intertie Study identified two primary route alternatives for the KPTL, a northern route generally located on the north end of Kupreanof Island and a southern route that crosses the Wrangell Narrows near the Tonka log transfer facility and proceeds west across Duncan Canal. Both routes were expected to follow existing logging roads for the majority of their lengths, however, the southern route was preferred because of a generally more protected location, a shorter length, less scenic visual impact and a lower estimated cost of construction. The northern route of the KPTL was considered to be along a more likely route for a year round maintained road between Kake and Petersburg. Much has happened with regard to transmission development in Southeast Alaska since completion of the 2003 Intertie Study. The Southeast Conference has continued to pursue funding for the two initial transmission segments, Alaska Electric Light & Power (AEL&P) has undertaken additional studies, permitting and design of the Juneau — KMCGC segment of the Juneau — Hoonah transmission line, AEL&P has continued to pursue development of the Lake Dorothy hydroelectric project, the Kwaan Electric Transmission Intertie Cooperative (KWETICO) has been formed to own and operate the new transmission Interties and the Four Dam Pool Power Agency (FDPPA) has begun construction of the Swan — Tyee transmission line. With regard to the KPTL, a number of issues have been raised that will affect the potential routing and configuration of this line. Although most of these issues were known to some degree at the time of the 2003 Intertie Study, the potential impacts of recent developments have been more thoroughly assessed in this study in preparation of permitting and final design activities. Among these issues are: • Continued discussion and evaluation of a potential year -around road between Kake and Petersburg; • Potential mining developments on Woewodski Island and elsewhere in the general vicinity of Kake and Petersburg; Kake - Petersburg Intertie Study 1-1 Final Report Introduction and Conclusions • Recent experience of the FDPPA with regard to design modifications and construction of the Swan — Tyee transmission line as well as uncertainty in the timing of its completion; • Recent experience of AEL&P with regard to permitting and initiation of construction of the Juneau — KMCGC transmission line; • Changes in the financing covenants of the FDPPA that might affect the price of power sales from the Lake Tyee project to Inside Passage Electric Cooperative (IPEC), the electric utility that serves Kake; • Increases in the worldwide price of metals and the effect this may have on materials needed for new transmission lines; • Significant increases in oil prices that affect the cost of power production in Kake; • Reductions in power requirements in Kake due to the closure (potentially temporary) of a seafood processing facility; and • Specific requirements in the KWETICO bylaws that affect the feasibility evaluation of potential new transmission lines. The KPTL Study has considered all of these issues in providing a more detailed feasibility evaluation of the route alternatives and configuration of the KPTL than was provided in the 2003 Intertie Study. Further, the evaluation of another possible route alternative for the KPTL given the potential opportunity for future development of a major mining operation on Woewodski Island has been provided. The possibility of integrating a large mining load into the regional power grid could have a major positive impact on future development of power resources in Southeast Alaska. Evaluation of the estimated costs and benefits of a potential transmission interconnection with Woewodski Island is a critical component of the KPTL Study. The potential impact of a road between Kake and Petersburg has been factored in to the KPTL Study. One of the primary purposes of the KPTL Study is to provide the needed information for the Southeast Conference to identify the recommended route and configuration of the KPTL. On - site field reconnaissance and engineering assessments were provided to serve as the basis for establishing preliminary configuration specifications and updated, detailed cost estimates. Since certain regional developments, such as a mining facility on Woewodski Island, are potentially ten years off, it is necessary to forecast costs and benefits into the future to determine what alternative configurations of the KPTL can provide the greatest potential benefits to the businesses and residents of Southeast Alaska well into the future. To accomplish the objectives of the KPTL Study, the primary tasks undertaken have been to: (1) provide an updated assessment of the previously identified route alternatives for the KPTL; (2) evaluate other route alternatives as appropriate that can provide power supply to Woewodski Island and other locations in the area; (3) estimate the capital and operating costs associated with each alternative; (4) evaluate and define power supply requirements and regional generation capability in the region; Kake - Petersburg Intertie Study 1-2 Final Report Introduction and Conclusions (5) outline permitting and environmental issues associated with development of the KPTL; (6) evaluate load flows and electrical system configuration requirements to assure the reliable operation of the interconnected regional system; (7) estimate the costs of power to the interconnected load centers with and without the inclusion of each KPTL route alternative over a multi -year forecast period. For the purpose of the economic analysis included in Item 7, it has been assumed that KPTL construction costs will be funded with grants, pursuant to the plans of the Southeast Conference. Although the capital costs are expected to be mostly grant funded, the annual costs of operating and maintaining the KPTL as well as funding a reserve for long-term renewals and replacements is to be borne by the users of the KPTL. Because of the importance of the KPTL system to the general economic well-being of Southeast Alaska, it is very important that a wide representation of community, utility, tribal, government agency and other organizations have the opportunity to contribute to the KPTL Study. A significant amount of on -site field reconnaissance was conducted as part of this study during which time a number of community leaders, local and state planners, agency representatives, and local contractors were interviewed. Representatives of the mining interests on Woewodski Island were also interviewed. We have relied extensively upon the input from all of these sources in preparing the study. It should be noted that the economic analysis conducted as part of the KPTL Study looked only at the cost of power production in Kake by the proposed transmission system. The cost of power production is typically the most significant component of an electric utility's revenue requirement; however, there are other costs that figure significantly into the basis for electric rates that are charged to retail customers. Although the cost of power production may be reduced through alternative means of power supply, other costs may continue to keep retail rates at a high level. The State's Power Cost Equalization (PCE)l program also affects how much of the benefit of lower production costs ultimately reach the electric consumer. Aside from the estimation of power production costs, the KPTL Study has not attempted to evaluate retail electric rates in Kake or elsewhere in Southeast Alaska. Study Approach Although previous studies were reviewed and considered in the preparation of the KPTL Study, a significant amount of new work was conducted. During the field reconnaissance conducted in September 2004, all possible routes of the KPTL were considered. In this manner, a fresh look was taken at the route alternatives with no restrictions placed on the evaluation because of recommendations from previous studies. A completely revised estimate of the costs to construct ' The Power Cost Equalization (PCE) program subsidizes retail electric rates for residential customers and public facilities in qualifying communities. The funding of the PCE program is granted by the State legislature on an annual basis and no guarantees can be provided with regard to its continuation in the future. An endowment was created in 2002 to fund the PCE program using funds from the divestiture of the Four Dam Pool and other funds including a legislative appropriation of $100 million from the Constitutional Budget Reserve and funds from unused Intertie loans. Kake- Petersburg Intertie Study 1-3 Final Report Introduction and Conclusions the KPTL was also prepared as part of the KPTL Study. The six route altematives that were evaluated are summarized as follows: • Northern Alternative — (66.0 miles total length, one 3.1 mile marine crossing) Generally located at the north end of Kupreanof Island, previously defined as the Northern Alternative in the 2003 Intertie Study. For the most part, this route follows the most likely route of a permanent road between Kake and Petersburg as defined in the Southeast Alaska Transportation Plan (SATP) dated August 2004. • Center -North Alternative — (59.0 miles total length, one 0.6 mile long marine crossing) Connects to the existing Tyee transmission line south of Petersburg, crosses Wrangell Narrows, proceeds west across and then north on the Lindenberg Peninsula through the Petersburg Creek -Duncan Salt Chuck Wilderness where it intersects with the route of the Northern Alternative. Also referred to as the Wilderness Route. • Center -Center Alternative — (51.4 miles total length, two marine crossings totaling 5.5 miles) Originates at the same location near Petersburg as the Center -North route but continues northwest toward Kake across Duncan Canal rather than passing through the Wilderness area. • Center -South Alternative — (51.7 miles total length, two marine crossings totaling 1.6 miles) Similar to Center -Center route but crosses Duncan Canal at a point farther south on the canal. This route was defined in previous studies as the Southern Alternative and is also referred to as the Tonka-Duncan Canal route. • Southern Woewodski Alternative — (75.7 miles total length, two marine crossings totaling 1.5 miles) Connects to the existing Tyee transmission line near the south end of Mitkof Island, proceeds west along the south end of Mitkof Island, crosses Wrangell Narrows to Woewodski Island and continues west across Woewodski Island, crosses Duncan Canal to south Kupreanof Island and then proceeds northwest up the length of Kupreanof Island to Kake. Along much of its route on Kupreanof Island, the Southern Woewodski Altemative follows existing USFS roads. The SATP also identifies a permanent road route between Kake and Totem Bay on south Kupreanof Island along part of the length of this corridor. Woewodski Tap Alternative — (13.6 miles total length, one 0.9 mile long marine crossing) This alternative is an extension of the Center-South/Center/North route that proceeds from a point just west of Wrangell Narrows south on the Lindenberg Peninsula where it crosses to Woewodski Island. The Woewodski Tap would be constructed at a later time only if a mining facility were to be developed. In conducting the KPTL Study, significant new information was gathered from on -site investigations, routes were identified and diagrammed, previous studies were obtained and reviewed, data was obtained from material and service vendors, and discussions were held with a number of utility, community, and government representatives. The technical review included consideration of the line route, system configuration, design criteria, and cost and factored in the experience of several specialists familiar with road and transmission construction in Southeast Kake - Petersburg Intertie Study 1-4 Final Report Introduction and Conclusions Alaska. A detailed preliminary design of the KPTL system was developed using specialized computer design software. In conducting the economic analysis for the KPTL Study, terms and conditions of existing contracts and agreements have been acknowledged to assure that the analysis appropriately models the commercial environment in which the KPTL will operate. The question then becomes, is the KPTL economically justifiable from the perspective of IPEC and its ratepayerS2. Many transmission and power supply studies in the past have looked at economic viability from a regional or possibly even a "societal" basis. As previously indicated, it has been assumed that the KPTL will be grant funded and will have no capital recovery component associated with its future cost structure. This study has been prepared in association with two other firms. Commonwealth Associates, Inc. was responsible for the field reconnaissance, review of overhead transmission routes and cost estimates; and CH2M-Hill reviewed permitting requirements and the environmental documentation process and prepared an estimate of the cost and time to conduct the necessary environmental studies, complete the National Environmental Policy Act (NEPA) process, and obtain the necessary approvals and permits needed to construct the KPTL. D. Hittle & Associates had primary responsibility for the power supply and economic analyses and for overall coordination of the study effort. It should also be understood that the KPTL Study is a feasibility assessment. The technical information and cost estimates presented in this report are subject to change as more additional studies are conducted and more information is obtained. Actual design of the KPTL, if pursued in the future, will provide much more detailed specification of the system components, routes and configuration and allow for greater precision on estimating costs. The actual cost of constructing the KPTL, however, will be subject to a number of factors including market conditions at the time bids for material and construction services are requested. Status of Transmission Development in Southeast Alaska Since completion of the 2003 Intertie Study, there have been a number of developments with regard to transmission lines in Southeast Alaska. Ketchikan Public Utilities (KPU) transferred its ownership and management of the Swan — Tyee Intertie to the Four Dam Pool Power Agency (FDPPA) in 2004. Although approximately 18 miles of the right-of-way was cleared in 2002, nearly all of the clearing was completed in 2004 and initiation of structure foundation installation also began in 2004. In the fall of 2004, funding sources for the Swan-Tyee Intertie were depleted and the FDPPA stopped construction. No date has been provided as to when or if construction of the Swan-Tyee Intertie will be restarted. The Swan — Tyee line in total will be approximately 57 miles in length and entirely of overhead construction with no submarine crossings. It will be constructed for 138-kV nominal voltage but will be operated initially at 69- W. 2 KWETICO, as the future owner/operator of the KPTL will also need to determine economic justification, however, this justification will be based on the estimated impacts on IPEC's ratepayers, the ultimate end -users of the KPTL. ' This assumption has been provided by the Southeast Conference. Kake - Petersburg Intertie Study 1-5 Final Report Introduction and Conclusions Alaska Electric Light & Power (AELP) has undertaken the construction of the 69-kV Juneau — Greens Creek segment of the Juneau-Hoonah Intertie. This line will be owned by KWETICO but is being constructed and will be operated by AELP as the agent for KWETICO. Design and permitting of the line is complete and construction of the overhead portion of the line on Admiralty Island between Young Bay and Hawk Inlet was completed in 2004. The submarine cable between Douglas Island and Admiralty Island will be installed in August 2005. The substation at the mine and the section of overhead line between Hawk Inlet and the mine should also be completed later in 2005. Most of the grant funding requirement for this line has been secured. On the Canadian side of the border, it has been indicated that BC Hydro is considering the construction of a 110 mile -long 138-kV transmission line from Meziadin Junction (northeast of Stewart, B.C.) to a location near the proposed Forrest Kerr Hydroelectric Project on the Iskut River. This will bring the BC Hydro system to within approximately 25 miles of the Alaska border on the Bradfield Canal corridor. In the past, there have been studies conducted with regard to constructing transmission interconnections between British Columbia and Alaska. Proposals have been made by the State and others to construct a transmission line from Alaska to Canada in conjunction with a potential road along the Bradfield Canal. A transmission interconnection with BC Hydro could provide access to power markets outside Southeast Alaska for the output of regional hydroelectric generation. Elsewhere in Southeast Alaska, Alaska Power & Telephone (AP&T) will be completing the South Fork hydroelectric project on Prince of Wales Island during the summer of 2005. AP&T also indicated that it expects to begin construction activities on the Kasidaya Creek hydroelectric project near Skagway in the near future. This project will serve the interconnected service areas of Haines and Skagway. Gustavus Electric Company received its FERC license for the Falls Creek hydroelectric project near Gustavus and expects to begin construction in 2006. Preliminary scoping for the Thayer Lake hydroelectric project near Angoon has begun. As previously indicated, AEL&P is constructing the transmission line to Admiralty Island at the present time. AEL&P has received its FERC license for the Lake Dorothy hydroelectric project and expects to construct this project in the near future. Conclusions The following conclusions are offered with regard to the KPTL Study. Although these conclusions are offered at this point in the report, it is important to understand the assumptions and other factors described in subsequent sections of this report that contribute to the conclusions. 1. Six proposed routes for the KPTL have been identified and reviewed as part of this study. Two of these, the Northern and Center -South Alternative have been studied extensively in the past. The Center -South (old "Southern" route) Alternative has been the preferred alternative from a cost and constructability perspective in previous studies. The Center- Kake - Petersburg Intertie Study 1-6 Final Report Introduction and Conclusions South Alternative has also been selected as the preferred route by the Kake — Petersburg Intertie Steering Committee" as a result of the KPTL Study. (See Exhibit 1) 2. Forest Service roads exist along the majority of the length of most of the proposed routes. Construction of the KPTL adjacent to these roads, to the extent possible, should provide for lower costs of construction and maintenance. Single wood pole structures are preferred for placement along roads. 3. The recommended voltage for the KPTL is 69-kV. This voltage more than accommodates the Kake electrical requirement and will be sufficient if a connection is to be made at a later date to a mining facility on Woewodski Island. This voltage will also accommodate the estimated power loadings if a transmission interconnection between Kake and Sitka is eventually developed. 4. The recommended overhead conductor for the KPTL is 336 ACSR. Submarine cables should be 3-phase, copper 4/0 conductor bundled cables. A 24 strand fiber optic communication line is recommended to be included for the length of the KPTL and will be bundled in to the submarine cable. 5. The estimated costs of developing and constructing the KPTL, including all direct and indirect costs, range between $30.3 million for the Center -South Alternative and $42.3 million for the Southern Woewodski Alernative. The estimated cost to construct the Woewodski Tap Alternative, which would only be constructed in the future if a mining operation is developed on Woewodski Island, is $8.3 million. 6. Energy generation capability is projected to be available from the Four Dam Pool Power Agency's Lake Tyee hydroelectric project to sell to IPEC for use in Kake if the KPTL is constructed. It is also estimated that power would be available from the Lake Tyee Project to supply the majority of the assumed power supply needs of a potential mining facility on Woewodski Island. A power sales contract will need to be negotiated with the Four Dam Pool Power Agency if power is to be sold to either IPEC or a mining facility. 7. Assuming that construction and development costs of the KPTL is grant funded and that reasonable power supply contracts can be arranged, IPEC should be able to realize savings in its costs of power supply in Kake with the KPTL when compared to continued diesel -fueled power generation. 8. The annual costs to operate, maintain and administer the KPTL can be reasonably recovered through charges for transmission services or, bundled in with the delivered cost of power. 9. The estimated net present value in savings to IPEC over the 20 year period 2009-2028 with the KPTL is $1.3 million. If a mining operation on Woewodski Island is developed in the future (assumed to be 2012 for this study) the net present value savings to IPEC " Committee members were Dave Carlson, Southeast Conference; Gary Williams, Organized Village of Kake; Ted Smith, City of Petersburg; Bob LeResche, Four Dam Pool Power Agency; Dick Olson, Thomas Bay Power Authority; Paul Reese, City of Kake. Kake - Petersburg Intertie Study 1-7 Final Report Introduction and Conclusions would be $3.8 million due to the allocation of a portion of the KPTL operating costs to the mine. 10. With the Interties, IPEC may be able to offer economic incentive rates in Kake, with certain limitations, to encourage new commercial activity. The economic incentive rates could be tied to the cost of purchased power with a nominal margin. A comparative matrix of the characteristics, costs and other evaluation criteria is provided as Figure 1-1. A map of the Southeast Alaska Intertie system as it presently exists with proposed new lines, is provided in Figure 1-2. The route alternatives for the KPTL are shown in Figure 2- 1. 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This proposed transmission line segment will interconnect the City of Kake with the existing transmission line system serving Petersburg and Wrangell with Lake Tyee hydroelectric power. The Kake/Petersburg segment is part of the Southeast Alaska Intertie Project and will eventually be extended to Sitka. A Steering Committee was formed to oversee and guide the Planning Study which was awarded to D. Hittle & Associates. The Steering Committee included representatives from Kake and Petersburg, Inside Passage Electric Cooperative, the Thomas Bay Power Authority, and the Four Dam Pool Power Agency. One principle goal of the study was to identify and analyze the various route alternatives for the transmission line between Petersburg and Kake. The Steering Committee met several times during the study period to review and 'screen -out' various route alternatives. On July 18, 2005, the Steering Committee met and unanimously selected the 'Center -South' route as the 'Proposed Action' or preferred route for the transmission line between Kake and Petersburg. The Steering Committee acknowledged that an Environmental Impact Statement (EIS) will most likely be required for this project and other alternate routes considered in the Planning Study will be evaluated as part of this process. While the Planning Study specifically focused on the transmission line and alternate routes for the line, the Steering Committee also acknowledged the State of Alaska's future plans to interconnect the two communities with a road link. After a meeting with Forest Service and State of Alaska officials, the Steering Committee felt that these issues would be raised and addressed during the permitting process which could include either an Environmental Assessment (EA) or an Environmental Impact Statement (EIS). Kake to Petersburg Steering Committee members: Mayor Ted Smith — City of Petersburg Mayor Paul Reese — City of Kake Gary Williams — Organized Village of Kake Vern Rauscher — Inside Passage Electric Cooperative Bob LeResche — Four Dam Pool Power Agency Dick Olson — Thomas Bay Power Authority Section 2 Transmission Line Route Alternatives and Technical Characteristics Introduction The Petersburg - Kake transmission line ("KPTL") will interconnect the community of Kake on Kupreanof Island to the interconnected electric systems of Petersburg and Wrangell. Petersburg and Wrangell are connected to and purchase most of their respective power supplies from the Lake Tyee hydroelectric project owned by the FDPPA. The KPTL will be used to transmit surplus hydroelectric power purchased from the FDPPA to IPEC's electric system in Kake, thereby offsetting diesel generation in Kake. The KPTL has been studied in reasonable detail in the past, most recently in the 2003 Intertie Study and in 1996 with a feasibility study prepared by R.W. Beck for the State of Alaska, Department of Community Affairs, Division of Energy (the "1996 Feasibility Study"). The 1996 Feasibility Study was a follow-on to the 1987 Southeast Alaska Transmission Intertie Study prepared for the Alaska Power Authority by the Hama Engineering Company (the "1987 Intertie Study"). The 2003 Intertie Study, the 1987 Intertie Study and the 1996 Feasibility Study identified two primary routes for the line. One alternative route goes to the north of the Petersburg Creek — Duncan Salt Chuck Wilderness Area, while the other route goes to the south of the Wilderness Area. These two route alternatives were previously defined as the Southern and Northern route alternatives. In all three of the previous studies, the southern route alternative was preferred because of its shorter length, lower estimated construction cost and generally lesser expected environmental impact. The Northern route, although estimated to be more expensive to construct, was considered to follow the likely corridor of a year-round maintained road between Kake and Petersburg. With the possibility of a major mining operation on Woewodski Island, additional routes for the KPTL were considered that could facilitate power deliveries to a mine if it were to be developed. Further, the possibility of a route through the western most side of the Petersburg Creek -Duncan Salt Chuck Wilderness parallel to Duncan Canal, was also considered because of the generally easy topography that would simplify construction of a transmission line as well as a road. Each of the alternative routes was defined with regard to specific location, topography, availability of adjacent USFS roads, vegetation, marine crossings, and general construction requirements. A map of the routes was prepared that separated each route into multiple segments noted by identifying nodes. The lengths of each segment were then determined and used to establish a screening level cost estimate for each route. The screening level cost estimate was used by the Kake to Petersburg Intertie Steering Committee to identity the routes best suited for further review. This section of the report describes the basic criteria used in evaluating the various routes and the results of the screening level assessment. Kake - Petersburg Intertie Study 2-1 Final Report Transmission Line Routes and Technical Characteristics At the present time, the Four Dam Pool Power Agency is constructing a transmission line to interconnect Ketchikan's electric system with the Tyee-Wrangell-Petersburg (TWP) electric system. This new interconnection will provide Ketchikan with access to the surplus generation capability of the Lake Tyee hydroelectric project. Although Kake's power requirements from the Lake Tyee project will be subordinate to the requirements of Petersburg, Wrangell and Ketchikan, current forecasts indicate that sufficient energy should be available to supply Kake's load for several years in to the future. If the transmission interconnection to Ketchikan is completed, additional hydroelectric resources could be available to supply Kake's power requirements in the future. Alternative Route Assessment From the broad prospective our task was to evaluate potential routes for the KPTL including, but not limited to, the previously defined Northern Alternative and Southern Alternative from an overall cost and benefit perspective. With the possibility of a new mining operation on Woewodski Island, the potential for extending the KPTL to Woewodski Island is an important option in that it could provide significant opportunity in the future to sell surplus hydroelectric power available in Southeast Alaska to the mine. In the past, most mining operations in Alaska have been self -generators of electric power. The KPTL study must also evaluate the options for extending the transmission line to or though this potential mine location. Our detailed scope and mission was to take a "fresh" look at the terrain, availability of existing roads along the potential KPTL routes, and visit with the local contractors, residents of Kake, Petersburg, and govemment agencies such as the United States Forest Service (USFS) represented locally by the Petersburg District Ranger. In addition, and different from previous studies, the KPTL study was to also evaluate routes that could possibly extend the transmission line to or through the potential mine location on Woewodski Island (mine). Route Alignment Criteria General locations for the alternative routes were defined based on past studies, topography and other physical constraints. More specific criteria, as follows, were used to further refine the route locations. • Generally parallel existing roads where possible • Consider route location(s) where new service roads could be constructed • Avoid disruption to known fisheries, aviation, and marine traffic • Provide for submarine cable crossings that avoid dredging areas, commercial fishing areas, and major rock outcrops and are accessible to shore terminals • Maintain a minimum distance of 330 feet from known nesting areas of eagles. • Avoid and minimize impacts on scenic viewsheds • Avoid and minimize, where possible, known muskeg or other wetland areas • Maximize ground accessibility for maintenance purposes Kake - Petersburg Intertie Study 2-2 Final Report Transmission Line Routes and Technical Characteristics During the evaluation of the alternative routes, Don Koenigs, a local consultant with previous experience in logging and road building in the Tongass National Forest was included on our team. In addition, residents and officials of Kake were consulted as to Native traditions and traditional uses of the potentially affected land areas in and around Kake. Field Evaluation of Alternative Routes In September 2004, two Commonwealth Associates, Inc. (CAI) engineers, knowledgeable in transmission design and construction practices of Southeast Alaska spent one week in the field to gain first-hand information with regard to the general project vicinity. This field evaluation involved aerial reconnaissance of the area, driving USFS roads, meeting with local officials, and documenting various alternative routes. The process attempted to capture all reasonable routes that would be further studied and screened for viability. The CAI engineers were accompanied by a local consultant, Don Koenigs, and Dave Carlson, Southeast Conference Intertie Coordinator, during the field investigations. In addition to the aerial and ground reconnaissance, several meetings were held in Kake listening to the issues expressed by the Kake Village leaders, merchants, and utility personnel from IPEC. Time was also spent in Petersburg meeting with USFS personnel, Petersburg community leaders and officials, and the Superintendent of Petersburg Municipal Power & Light. Both fixed wing aircraft and a helicopter were chartered for four days to capture on video and digital camera ten potential routes. The helicopter was also used to land at certain locations not accessible by road. The engineering team spent two days driving the many logging roads out of Kake and another day driving roads accessible from Petersburg. Maps provided by the USFS proved to be essential in navigating the vast road network on Kupreanof Island. Our immediate observation was that the road system was in excellent condition and would provide a wide corridor to facilitate construction and maintenance of a transmission line. The existing road network appeared to be a valuable asset to build a power line. The vast road network also provided many choices to study and select the best right-of-way. Particular attention was given to the observation and study of proposed submarine cable locations. The initial study effort was to try and minimize marine crossings and if required to study their location and determine their use from a commercial fishing, sport fishing, types of commercial vessel traffic, tides, dredging activity, and depth of water. The majority of the land involved along the potential routes is federal land administered by the USFS. Some State land would also be crossed for certain alternative routes. Closer to Kake, the routes cross private property and tribal lands owned by the Village of Kake. Marine crossings are across bodies of water governed by the State. Kake - Petersburg Intertie Study 2-3 Final Report Transmission Line Routes and Technical Characteristics Initial Screening Assessment of Alternative Routes A wide area was investigated during the field survey. Following the field investigations, ten alternative routes were defined, as follows: 1. Northern 2. Center — South 3. Center — North 4. Center —Center 5. Center— Woewodski Tap 6. Southern — Woewodski 7. Upper Duncan Canal 8. Petersburg To Kake (Submarine Cable) 9. Petersburg Creek 10. Southern — Woewodski Tap (Submarine Cable) The ten alternative routes were documented on the December 23, 2004 map that was prepared and presented to the Kake to Petersburg Intertie Steering Committee in a meeting on January 12, 2005 for consideration. Two of these routes, Alternative 8 and Alternative 10, involved extensive lengths of submarine cable and were removed from further consideration due to expected higher costs. Alternative 9, along Petersburg Creek on Kupreanof Island, was considered impractical due to the sensitive environment in this area. Alternative 7 was also removed from consideration because it would involve a lengthy submarine cable in the northern region of Duncan Canal. As a result of these factors and the discussions conducted in the January meeting, the original ten alternative routes were reduced to six alternatives for further evaluation. The six KPTL alternatives are defined as follows: • Northern Alternative — (66.0 miles total length, one 3.1 mile marine crossing) Generally located at the north end of Kupreanof Island, previously defined as the Northern Alternative in the 2003 Intertie Study. For the most part, this route follows the route of a permanent road between Kake and Petersburg as defined in the Southeast Alaska Transportation Plan (SATP) dated August 2004. Center -North Alternative — (59.0 miles total length, one 0.6 mile long marine crossing) Connects to the existing Tyee transmission line south of Petersburg, crosses Wrangell Narrows, proceeds west across and then north on the Lindenberg Peninsula through the Petersburg Creek -Duncan Salt Chuck Wilderness where it intersects with the route of the Northern Alternative. The Center -North Alternative is also referred to as the Wilderness Route. • Center -Center Alternative — (51.4 miles total length, two marine crossings totaling 5.5 miles) Originates at the same location near Petersburg as the Center -North route but Kake - Petersburg Intertie Study 2-4 Final Report Transmission Line Routes and Technical Characteristics continues northwest toward Kake across Duncan Canal rather than passing through the Wilderness area. • Center -South Alternative — (51.7 miles total length, two marine crossings totaling 1.6 miles) Similar to Center -Center route but crosses Duncan Canal at a point farther south on the canal. This route was defined in previous studies as the Southern Alternative and is also referred to as the Tonka-Duncan Canal route. Southern Woewodski Alternative — (75.7 miles total length, two marine crossings totaling 1.5 miles) Connects to the existing Tyee transmission line near the south end of Mitkof Island, proceeds west along the south end of Mitkof Island, crosses Wrangell Narrows to Woewodski Island and continues west across Woewodski Island, crosses Duncan Canal to south Kupreanof Island and then proceeds northwest up the length of Kupreanof Island to Kake. Along much of its route on Kupreanof Island, the Southern Woewodski Alternative follows existing USFS roads. The SATP also identifies a permanent road between Kake and south Kupreanof Island along this corridor. Woewodski Tap Alternative — (13.6 miles total length, one 0.9 mile long marine crossing) This alternative is an extension of the Center-South/Center/North route that proceeds from a point just west of Wrangell Narrows south on the Lindenberg Peninsula where it crosses to Woewodski Island. The Woewodski Tap would be constructed at a later time only if a mining facility were to be developed. The cost estimate for the Woewodski Tap Alternative included in this report is based on the assumption that one of the Center routes is constructed first to establish the connection to the TWP transmission line and cross Wrangell Narrows. With the Northern Alternative, additional cost would be incurred to extend the Woewodski Tap to the TWP interconnection point. Each of the alternative routes was defined with regard to specific location, availability of adjacent USFS roads, length trough forested areas, length through muskeg areas, marine crossings, and general construction requirements. A map of the routes was prepared that separated each route into multiple segments noted by identifying nodes. The lengths of each segment were then determined and used to establish a screening level cost estimate for each route. The six routes are shown on the map in Figure 2-1. The detailed length of each segment of the six alternative routes is shown in Figure 2-2. As can be seen in Figure 2-2, the total lengths of the routes vary between 51.4 miles long for the Center -Center Alternative to 75.7 miles long for the Southern Woewodski Alternative. The Woewodski Tap Alternative is a much shorter length since it will only provide power to Woewodski Island from a tap point along the Center- South/Center/North Alternative. A "screening level" cost estimate of the six route alternatives was made for the purpose of determining the cost differential of the various routes under consideration. This estimate was not a detailed unit cost analysis but rather, was made using cost data from previous studies, data from Southeast Alaska utilities, regional power agencies, and local contractors. 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The "screening level" cost estimate used the same general cost estimating established comparable costs of the alternative routes using the same general The results of the screening level cost estimate are shown in Table 2-1, It should be noted that the screening level cost estimates do not include certain cost items, such as indirect costs, which when totaled in, would add significantly to the total estimated cost of the alternatives. Further, significant refinement has been made to the cost estimates since the time of the screening level estimate. TABLE 2-1 Kake - Petersburg Transmission Line PRELIMINARY Screening Level Cost Estimate of Alternative Routes' ($000) Route Alternative Northern Center -North Center- Center -South South Woewodski (Old "Northern") ("Wilderness") Center (Old "Southern") Woewodski Tap 2 Overhead Lines $ 16,354 $ 15,072 $ 12,307 $ 12,307 $ 18,980 $ 3,503 Marine Crossings 4,354 1,876 10,061 3,292 3,292 2,278 Right of Way Clearings 3,164 2,160 2,296 3,052 3,640 2,100 Road Construction 2,701 1,535 578 2,310 4,533 1,295 Helicopter Assistance 726 726 726 726 726 182 Total $ 27,298 $ 21,368 $ 25,968 $ 21,687 $ 31,170 $ 9,357 % Above Lowest Cost Alt. 28% 0% 22% 1% 46% Total Length (miles) 66.0 59.0 51.3 51.6 75.7 13.5 Screening level cost estimates exclude a number of items that could contribute significantly to the overall total cost of the KPTL. These excluded costs are expected to be relatively consistent among the alternatives. 2 The Woewodski Tap alternative is to be connected to the Center-South/Center/North alternative route at a point approximately three miles west of the origination of the KPTL line at the existing Tyee line. The Woewodski Tap is not in itself a comparable alternative for the KPTL. As can be seen in Table 2-1, the lowest cost alternative at the time of the screening assessment was the Center -North Alternative, although the Center -South Alternative has a total estimated cost that is almost as low. The other three alternatives are estimated to cost noticeably more, with the South Woewodski being the most costly. At a meeting with the Kake to Petersburg Intertie Steering Committee on February 25, 2005, the screening level cost estimates were presented and it was determined that the Center -Center and South Woewodski Alternatives would be removed from further consideration. Further, the Northern Alternative was noted to be significantly more costly but the Committee indicated that further cost evaluation of the Northern Route should be conducted because this route follows the route of the year-round road between Kake and Petersburg as identified in the State's SATP. As a result of the discussions during the February 25, 2005 meeting, the route alternatives for further evaluation were defined as: Kake - Petersburg Intertie Study 2-6 Final Report Transmission Line Routes and Technical Characteristics 1. Center —North Alternative (Wilderness Route) 2. Center— South Alternative 3. Woewodski Tap 4. Northern Alternative The further evaluation of these four alternative routes is provided in the following sections of the report. Transmission Line Design Concepts for the KPTL System Voltage For interconnecting the Petersburg electric system with Kake and/or the Woewodski Mine Site, three possible Intertie system voltage levels were examined: 24.9-kV, 69-V, and 138-kV, as well as a fourth blend of 138 kV/69 kV. 24.9-kV Intertie Concept A 24.9 kV intertie is suitable for the light loading levels presently experienced by the Kake community. Two transformers are required, one connecting to the Petersburg electric system and the other at the new Kake Substation. The cost of submarine cables is lower for 24.9-kV than for the 69 or 138-kV concepts. We also found a need in this concept for a 24.9-kV voltage regulator and possibly a 1200 kvar load -side capacitor bank at the new Kake Substation. The disadvantage of this concept is that while suitable for present load levels, the voltage drop at 24.9-kV places low limits on the level of power that can be delivered to the Kake community under this concept in the future. The losses at 24.9-kV are roughly eight times what would be experienced using the 69-kV concept. 69-kVlntertie Concept A 69-kV transmission line is attractive because the planned interconnection point in the Petersburg electric system is presently operating at 69-kV. Thus, only one 69 to 12.47-kV transformer located at the new Kake Substation would be required for this concept. In order to maximize the future supply capability to Kake, we also found a need for Load Tap Changer (LTC) controls on the new Kake transformer and possibly a future 2400 kVAr load -side capacitor bank, also at Kake. Compared to the 24.9-kV concept, the voltage drop experienced at 69-kV greatly improves the limits on the level of power that can be delivered to Kake. The losses are roughly an eighth of what would be experienced at 24.9-kV. A modest disadvantage is that the cost of 69-kV submarine cable is roughly 20 to 30 percent higher than for 24.9 kV cable. 138-kVlntertie Concept A 138-kV transmission line is attractive because it permits the greatest delivery of power to the Kake community, though far in excess of anticipated needs. Losses are significantly reduced to Kake - Petersburg Intertie Study 2-7 Final Report Transmission Line Routes and Technical Characteristics about one -quarter of the losses expected at 69-kV. The most important advantage is that a 138- kV transmission line is more in keeping with the future operation of the Southeast Alaska Intertie Project. The existing Tyee-Wrangell-Petersburg (TWP) Intertie is constructed for 138-kV operation, though it is presently operated at 69-kV. Since the present TWP Intertie is operated at 69-kV this concept requires two 138-kV, 2500 kVA transformers: one 69-138 kV transformer near Petersburg, and a 138-12.47 kV transformer at Kake with a 12.47 kV voltage regulator. The major disadvantage of this concept is the much higher cost of 138-kV submarine cable as compared to 69-kV cable. At 138-kV and above, four single-phase cables are typically installed, as opposed to a single, 3-phase bundled cable for 69-kV and lower voltages. Although the unit cost of single phase cable is less than 3-phase bundled cable, the need to install four cables greatly increases the overall submarine cable cost for 138-kV, estimated to be in the range of 40% - 50% or more when compared to the cost of 69-kV. 138-kVI69-kV Intertie Concept We have considered a 138-kV/69-kV concept where the transmission line is constructed with overhead transmission lines designed for 138-kV but operated at 69-kV, similar to the existing TWP Intertie. For the submarine crossings we would propose using 69-kV submarine cables in order to avoid the high cost of 138-kV submarine cable systems. When or if the KPTL is energized at 138-kV, the submarine crossings will be replaced with a 138 kV submarine cable system. Since present thinking is that this is not likely for at least another ten to twenty years, the 69-kV submarine cables are likely to be approaching the end of their expected life and potentially be nearing the time for their replacement. Because operating the line at 69-kV is initially less costly and is more in keeping with the present and near -future needs of the Kake community, we prefer this concept to the previously described 138-kV transmission line concept. Other than a small increase in construction costs for the heavier 138-kV overhead construction this concept performs in a manner identical to the 69-kV Intertie concept. Comparative Costs of Construction at Alternative Voltage Levels The estimated cost to construct the KPTL at the various voltage levels previously described is shown in the following table. Kake - Petersburg Intertie Study 2-8 Final Report Transmission Line Routes and Technical Characteristics TABLE 2-2 Kake - Petersburg Transmission Line Comparative Cost of Overhead Transmission Line Construction at Alternative Voltages (Dollars per Mile) Estimated Construction Cost Per Mile' (Preferred) 24.9-kV 34.5-kV 69-kV 138-kV Conductor Size 4/0 (- 212 kcmil) $ 224,318 $ 224,318 $ 249,651 $ 306,369 266 komil 227,099 227,099 252,432 309,150 336 kcmil (Preferred) 246,651 246,651 271,984 328,702 Additional Cost For: 2 138-kV construction $ 82,051 $ 82,051 $ 56,718 138-kV insulation - - 12,844 69-kV Insulation $ 24,223 $ 24,223 ' Costs shown are for direct costs of overhead lines only and do not include submarine cables, substations or other system components. Includes the cost of fiber optic strands. 2 Represents the additional cost necessary to construct the line to 138-kV but operate it at the indicated voltage. Recommended Voltage A detailed load flow analysis was conducted as part of this study to evaluate the impact of alternative operating voltages on overall system performance. The results of this load flow study are provided in Appendix A Based on the results of the load flow study, it is recommended that the KPTL be operated at 69-kV. While it is tempting to construct the overhead portions of the KPTL for future 138-kV operation in order to maintain consistency with other segments of the existing TWP system, the additional cost and lack of technical need causes us to recommend the KPTL be constructed to meet 69-kV construction standards. The Tongass National Forest management prescriptions for Transportation and Utility Systems (Land use Designation TUS) would apply because the recommended 69-kV line would be defined as a major system, greater than the 66-kV minimum powerline voltage. Following the Tongass Land and Resource Management Plan (TLMP) will enable the utility system to be constructed and managed in a manner that is compatible with adjacent land use designations to the maximum extent feasible. Section 3 provides additional information regarding forest resource protection issues pertinent to this project. Kake - Petersburg Intertie Study 2-9 Final Report Transmission Line Routes and Technical Characteristics Overhead Transmission Line Design Concepts Conceptual Design The conceptual design envisioned for the KPTL would use single wood pole, 69-kV structures with a vertical post insulator combined with horizontal post insulators. This design will be able to take advantage of existing roads for construction and maintenance and has been used successfully for other transmission applications elsewhere in Alaska. The average span length is estimated to be 350 to 400 feet. The only segments of the KPTL which are considered a candidate for H-frame long span construction are where no roads presently exist. The conductor considered is 336.4 kcmil 30/7 ACSR/AW "Oriole/AW". Structure Type The 1996 Feasibility Study was based on using wood H-frame type structures for the 69/138 kV line. This H-Frame design concept was used successfully on the cross-country portion of the Ketchikan Swan Lake 115-kV line and has the advantage of allowing long span construction which can be used to advantage to avoid poor soil areas and for spanning large ravines. However, many 69-kV lines in Southeast Alaska have been constructed on single wood pole structures, particularly when the lines can follow existing roads. The KPTL line route is not as rugged as Ketchikan's Swan Lake line and the opportunity exists to follow logging roads for much of its length (the roadless section varies for the different alternatives but is estimated to be approximately 25% of the total line length). Following existing roads will provide access advantages during construction and will minimize the need for clearing. A short span road -side power line will also provide future maintenance advantages due to easy access and smaller structures. An example of the single wood pole design is shown in Figure 2-3. Physical Loading Typical physical loading criteria and associated overload capacity factors used for overhead transmission line designs in Southeast Alaska at lower elevations consist of combinations similar to the following criteria. Load cases I and 2 are required by the National Electrical Safety Code (NESC) for design of overhead utility lines. Load cases 3, 4 and 5 are based on local utility experience. Although these load cases sound quite severe they do not appear to significantly change the design outcome and do not have a significant cost penalty. For structure strength, this study has considered load cases 3, 4 and 5 in addition to the NESC required load cases for its feasibility assessment. There have been reports of high ice loading in some locations along the alternative routes of the KPTL, particularly at the south end of Mitkof Island. During final design, a meteorological specialist may be consulted as to specific local ice conditions and whether or not certain sections of the line should be built to accommodate higher ice loadings. The length of any areas requiring higher strength construction than that contemplated for the majority of the KPTL is not expected to be extensive. Kake - Petersburg Intertie Study 2-10 Final Report 0 0 FIBER N CONDUCTORS 336 KCM ACSR HORIZONTAL SPAN 400 FT. z 3 o y x a N 3 w O O a r o = GROUND LINE EMBEDMENT 40' 40' TOTAL ROW WIDTH 40' 9.8 (ACRES/MILE) TYPICAL FIGURE 2-3 S.E. CONFERENCE DRAWN CHECKED ENGINEER PROJECT ENGINEER 69KV WOOD POLE rrR DKS rss rss TANGENT STRUCTURE PREPARED AT THE OFFICES OF CAR COMMONWEALTH ASSOCIATES INC. JACKSON, MICHIGAN LA CONNER, WASHINGTON \Pole Tangent Structure.dgn 8/4/2005 1:00:23 PM Transmission Line Routes and Technical Characteristics 1. NESC Heavy - Method A. NESC Heavy loading consists of a 4 pounds per square foot (PSF) wind (40 MPH) applied to the structure and supported facilities with the conductors and cables coated by %z inch radial ice which is assumed to weigh 57 pounds per cubic foot. For this case, conductor tensions are to be consistent with an ambient temperature of 0° Fahrenheit. Additionally, a constant of 0.3 pounds is to be added to the resultant of the wind and weight related loads (for the purpose of developing conductor design tensions only). Overload Factors which are applicable to the NESC Heavy Method A load case applied to wood structures are 2.5 for wind related loads, 1.5 for weight related loads and 1.65 for wire tension related loads. When using these Overload Factors for wood, a strength reduction factor of 0.65 is to be used. Guys shall use a strength reduction factor of 0.9. The applicable Shape Factor is 1.0 for cylindrically shaped components, 1.6 for components with flat sides. 2. NESC Extreme Wind For structures which exceed, or support facilities which exceed a height of 60 feet above ground or water level, an extreme wind condition is to be considered. NESC Extreme Wind loading for the Juneau/Hoonah region is generally considered to be 100 MPH nominal design 3-second gust (NESC Figure 250-2b). In accordance with the NESC, conductor tensions are to be consistent with an ambient temperature of 60' F. In Southeast Alaska the temperature criteria has typically been based on 401 F. Overload Factors that are applicable to the NESC Extreme Wind load case are 1.0 for wind, weight and tension related loads. For wood structures evaluated using these Overload Factors, a strength reduction factor of 0.75 is used. Guys are to utilize a strength reduction factor of 0.9. The applicable Shape Factor is 1.0 for cylindrically shaped components and 1.6 for components with flat sides. 3. Extreme Ice The NESC Extreme Ice case is based on 1.5 inches radial ice (57 pounds per cubic foot) at 30' F with no wind. This load case would be applied with a 1.0 Overload Capacity factor for wood structures for wind, weight and tension related loads while using a strength reduction factor of 0.75 for wood and 0.9 for guys. 4. Extreme Combination ice and Wind This load case is based on 1 inch radial ice (57 pounds per cubic foot) at 0° F in combination with a 4 PSF (40 mph) wind. This load case would be applied with a 1.0 Overload Capacity factor for wood structures for wind, weight and tension related loads while using a strength reduction factor for wood of 0.9 and 1.0 for guys. Kake - Petersburg Intertie Study 2-11 Final Report Transmission Line Routes and Technical Characteristics 5. Combination Snow and Wind This load case assumes 2 inches radial snow (37 pounds per foot) at 30' F in combination with a 2.3 PSF (30 mph) wind. This load case would be applied with a 1.0 Overload Capacity factor for wood structures for wind, weight and tension related loads while using a strength reduction factor for wood of 0.75 and 0.9 for guys. Foundations and Structure Support The soils in Southeast Alaska vary from muskeg to rock and everything in between. Earlier field work has indicated that much of the Center— South route of the KPTL is glacial till and colluvial, acceptable for standard direct embedment foundations. The 1987 Intertie Study was based on cross-country construction and the report estimated the mix of soils at 75/15/10 percent for normal, rock and muskeg soils, respectively. However, even in the areas considered normal the top 3 feet to 5 feet of material is organic and has essentially no lateral strength capability. The preliminary design for the KPTL as defined in this study is based on standard embedment depths plus an additional 4 feet (10% of pole length + 4 feet) for tangent structures in normal soils. Structures located in rock and guyed structures are assumed to be embedded at standard embedment depths (10%+ 2 feet). Pole structures located in muskeg can be stabilized using a wood raft at ground line with side guys or by construction of a foundation system using either driven H-piles or by using a culvert embedded at a depth required for lateral stability and the pole placed inside the culvert. It is anticipated that with short -span construction generally following the roads that the KPTL will follow, the mix of soils will be about the same as suggested in the 1987 Intertie Study report, 75/15/10 percent for normal, rock and muskeg soils. Most sites will require imported granular backfill hauled to the site. Poles that are located off the road by more than 20 feet will require an access work pad created by extending the road fill to the site. Where the distance from the road makes this impractical, temporary lagging would be used to gain access to the site during construction. If the distance is extreme, helicopter access would be considered. In the roadless sections near Duncan Canal, it is assumed a staging area would be constructed and access to structure sites would be by helicopter. A diagram of the typical pole embedment is shown in Figure 2-4. Electrical Clearances to Grade Minimum clearances above grade for conductors are required by the NESC based on line voltage and land use under the line. The NESC required clearance must be maintained under either of two conditions: 1) the conductor sagging at its maximum operating temperature (1200 F minimum), and 2) under the NESC Heavy loading district requirement of %z inch radial ice at 301 F (without the 4 psf wind). The vertical clearance for 69-kV lines above roads and lands that can be traversed by trucks is 20.2 feet. Kake - Petersburg Intertie Study 2-12 Final Report Transmission Line Routes and Technical Characteristics Engineering judgment should be used to determine if clearances in addition to the minimum required by NESC should be applied. This would apply to any specific area that may have access to unusually large vehicles or special conditions such as extreme snow depths. In addition to the basic clearance requirement, it is generally prudent to add a plotting margin (2 to 4 feet) to compensate for irregular terrain not identified in the survey, side hills, plotting errors, construction variables and other contingencies. For the purpose of the preliminary layout, the basic ground clearance has been assumed to be 25 feet minimum with the conductor temperature at 1201 F final sag. Conductor Selection For this analysis three conductor sizes have been considered: 336, 266, and 4/0 Aluminum Cable Steel Reinforced (ACSR) conductors. All three conductor sizes are adequate for carrying the 7,000 kilovolt -amperes (kVA) ultimate voltage limited capability of the 69-kV transmission circuit to Kake. Using Westinghouse transmission and distribution ratings as a conservative normal system rating, these conductors are capable of 530, 460, or 340 Amps, respectively. Assuming an ultimate load of 60 amps (7000 kVA at 69-kV) even the 4/0 ACSR conductor is loaded to less than 20 percent of its capacity. Even with these light loadings, the stronger 336 ACSR conductor would be preferred for this project. The existing TWP transmission line uses 336 ACSR conductor and, therefore, the two systems can share a common stock of spare conductor if 336 ACSR conductor is used for the KPTL. Further, the terrain traversed by the KPTL is rough and much of it will be difficult to reach for timely maintenance. The additional mechanical strength of the 336 ACSR conductor should reduce the amount of maintenance required over the life of the KPTL. A third point is that if the full plan for the Southeast Alaska Intertie Project is completed, the Sitka — Kake transmission interconnection may require the additional capacity of the 336 ACSR conductor. Based on the recommended operating voltage of 69-kV, it is further recommended that the KPTL be constructed with 336 kemil ACSR conductor. The additional cost of 336 ACSR, as compared to the smaller conductor options evaluated, is not estimated to be significant. The conductor suggested by earlier studies and used for this study is a 336 kcmil 30/7 ACSR/AW (Oriole/AW). Sag/tension charts were developed for this conductor based on the following tension limit criteria: • 15% Ultimate Rated Strength at -5° F initial • 20% Ultimate Rated Strength at -5° F Final • 50% Ultimate Rated Strength at NESC Heavy Loading Initial • 75% Ultimate Rated Strength at Extreme ice (1.5 inch) Loading Initial • 75% Ultimate Rated Strength at Extreme snow (2 inch) Loading Initial Kake - Petersburg Intertie Study 2-13 Final Report Transmission Line Routes and Technical Characteristics Right -of -Way Clearance Right-of-way width is often established based on conductor blowout. However, essentially the entire line length of the KPTL is undeveloped and therefore blowout of the conductor is not a consideration. Clearing and maintaining of the right-of-way will be a major cost item during initial construction and for future maintenance. This issue requires a compromise between the initial cost of removing danger trees and the amount of maintenance that will be required on an annual basis and following extreme weather conditions. Reliability of the line will be of major concern to IPEC, KWETICO and the FDPPA. The line will be designed to withstand anticipated extreme weather conditions, however, it will not be designed to withstand the impact of falling trees. In the areas where tall trees exist, reliability of the line is directly related to the extent of clearing. From strictly a reliability standpoint any tree that could potentially strike the line when falling should be removed. Based on the fact that some line sections will be located in areas where there are 100' to 150' tall trees, the width of clearing would calculate to be upwards of 300 feet depending on the selected route. A narrower right-of-way requirement will be acceptable in other areas. Where the line is placed near roads the road itself will provide approximately 50' of cleared width on the roadside. Also, much of the area along the route of the KPTL has been clear-cut in the recent past. Areas that have been clear-cut, even as long as 35 years ago, have much shorter trees, often less that 40 feet in height. Fast growing scrub trees such as alder may require clearing within the right-of-way along existing roads. Typical pole placement and clearing requirements along existing Togging roads are shown in Figure 2-4. Based on an objective of minimizing future maintenance costs suggested clearing criteria for the KPTL would be to: • Cut all trees within 50' from centerline. Low growing brush would not be cut. • Cut all brush in the immediate vicinity of structures. • Remove all trees that could strike the line if they fall. Access Road Construction Standards It is proposed that where existing logging roads do not exist, an access road be constructed alongside the entire KPTL route, except in the Wilderness Area where a narrower, less intrusive access trail is to be constructed. The access road will be built as a modified logging road with a 60 foot -wide right-of-way, a total 14 foot -wide road with a 10-12 foot -wide gravel covered surface and a road bedding made with typar or filter fabric. The USFS typically uses a 60 foot wide right of way for its standard log haul road but prepares a slightly larger road surface. Logging roads are built differently than Alaska Department of Transportation (ADOT) arterials and collector roads. In areas of muskeg, the logging roads are typically built on top of the significant layer of organic material. In this manner, the road "floats" on the muskeg underlayment and continues to settle over time. The ADOT removes the muskeg underlayment before building its roads. In areas of Southeast Alaska where the ADOT is building new Kake - Petersburg Intertie Study 2-14 Final Report CONDUCTOR 336 KCM ACSR HORIZONTIAL SPAN:400' ON EXISTING LOG ROAD 4.8 ACRES/MILE DATE: 05/05 SOUTHEAST CONFERENCE 69 kV WOOD POLE TANGENT STRUCTURE FIGURE 2-4 .APole Tangent Structure.dgn 8/4/2005 12:59:23 PM Transmission Line Routes and Technical Characteristics collector roads and arterials on existing log haul roads, such as on Prince of Wales Island, the cost of the road construction is indicated by ADOT to be nearly as high as new construction because of the need to remove the organic underlayment along so much of the route. The typical ADOT standard for an island collector road is a 22 foot -wide, paved road surface with a 2 foot wide shoulder. An island arterial road is a 22 foot -wide paved road surface with a 7 foot -wide shoulder. The posted speed on the collector road is 30 mph while it is 35 mph on the arterials. Raptor (Eagle) Protection Southeast Alaska is home to many eagles and therefore the line design must consider raptor (eagle) protection. The electrical industry standard for raptor protection is currently based on "Suggested Practices for Raptor Protection on Power Lines: The State of the Art in 1996". This publication suggests that 60 inches between conductor phases as well as 60 inches to all grounded parts will provide a safe design for large raptors such as eagles. The conductor phase spacing of most 69-kV lines exceeds this recommended dimension. The distance from conductor to ground needs to be considered, however. A potential problem could exist in that the typical 69-kV insulator is only 36" to 42" in length and therefore, if the base of the insulator is grounded, a conductor to ground path would exist that does not meet this standard. The design considered in this report assumes that an overhead ground wire will not be required and line hardware will not be grounded or bonded. The 69-kV single pole design absent the ground wire meets the spirit of the raptor protection guidelines. It is also important to note that this design has been used by AEL&P at other locations without problems related to raptor fatalities. Historical performance is considered to have more significance, in this case, than the published guidelines. Substation Concepts For all of the routes described below that start from "Center," it is proposed that a new switching station be constructed at node T that will tap into the existing TWP 138-kV/69-kV transmission line. For this report, this substation is designated as substation Sub-T, the location of which is shown in Enlargement A of Figure 2-7. At Kake, a substation facility to connect to IPEC's existing 12.47-kV distribution system will need to be constructed. It is recommend that these new facilities be configured as shown in Figure 2-5. To ensure continued system reliability for the existing Petersburg electrical system, a breaker for the Kake exit at Sub-T is recommended. Circuit problems on the new KPTL will then only affect the Kake load. Similarly, a second breaker is proposed for the Petersburg exit at Sub-T such that circuit problems north towards Petersburg will be isolated from affecting the Kake load. For initial Sub-T exit to Wrangell a motor -operated disconnect switch is recommended. s Source: Southeast Alaska Transportation Plan dated September 2004, Figure A-1. Kake - Petersburg Intertie Study 2-15 Final Report Transmission Line Routes and Technical Characteristics Initially, without special foreknowledge, the unplanned loss of the interconnection to Wrangell will cause an outage for both Petersburg and Kake with or without a third breaker at Sub-T. Therefore, it is not prudent to add the expense of a third breaker at this time. However, if the Sitka — Kake Intertie is built at a later date, Sub-T should be expanded into a three -breaker ring bus. With two independent sources of supply one will suffice if the other is lost so the added reliability of a full ring bus at Sub-T becomes prudent. Designing the new Sub-T for future expansion into a three breaker ring bus is a nearly zero cost plan to minimize the future costs for when, or if the Sitka — Kake Intertie or another similar development is built. The new Kake Substation is proposed to be configured as a single distribution transformer with a primary fused disconnect, a distribution class plus or minus 10 percent voltage regulator, and two 12.47-kV exits. IPEC's generating units will be interconnected with the TWP system but will not generally be used at the same time that power is being delivered from Lake Tyee. The Kake substation is expected to be constructed at a suitable site near Kake but not necessarily at the site of the powerhouse. The substation will serve as the termination of the KPTL. The substation is expected to include breakers, a disconnect switch and a 69/12.47-kV transformer to interconnect with the IPEC distribution system in Kake. Submarine cable termination yards will be needed on both ends of each cable crossing. The submarine cable termination yards are expected to require relatively small areas that will serve as the interface between overhead sections of the line and submarine cables. They will generally be located near the shoreline but behind existing treelines to limit visibility from the water. The termination yards will contain lightning arrestors and risers that connect the overhead system to the submarine cable. Disconnect switches would also be installed to allow for the electrical isolation of the cable for maintenance and testing. FIGURE 2S Proposed Configuration of the Kake Substation and the TWP Interconnection Facility Kake - Petersburg Intertie Study 2-16 Final Report Transmission Line Routes and Technical Characteristics Submarine Cables All of the route alternatives will require submarine cable crossings of marine waterways. Cables to be used for the KPTL submarine crossings would be similar to the crossing between Douglas Island and Young Bay that will be installed during the summer of 2005. The cable would be a single -armored, 69-kV, 3-phase, 4/0 conductor, dielectric submarine cable with bundled fiber optic communication lines. The bundled cable will be about 6 inches in diameter, however, the exact cable specification will not be known until final design is complete. A cross section diagram of the submarine cable being used on the Juneau -Greens Creek transmission line currently under construction is shown in Figure 2-6. An important factor in specifying the submarine cable will be the determination of potential extensions of the KPTL to Sitka or other load centers beyond Kake. The Wrangell Narrows crossing will need to accommodate the load associated with the potential mining facility on Woewodski Island. For the Center -South Alternative, it is expected that both the Wrangell Narrows and the Duncan Canal crossings would be placed at essentially the same time with the same cable laying equipment. This should reduce the mobilization costs which are quite significant. Two separate submarine cable crossings will be needed for the Center -South Alternative. The first, crosses Wrangell Narrows about eight miles south of downtown Petersburg and is about 0.6 miles in length. Tide movements are indicated to be very limited at this location and the waters are generally calm. The second crossing is about 1.2 miles in length and crosses Duncan Canal between points about 1.75 miles south of the mouth of Mitchell Slough on the east and about 2.5 miles south of Indian Point on the west side of Duncan Canal. From NOAA charts the water depth at the Wrangell Narrows crossing appears to increase uniformly from 0 feet at the shoreline to 110 feet near the center of Wrangell Narrows. The nautical charts show a bottom that consists of mud and rocks. No evidence of steep terrain or large rocks, that might cause suspensions in the submarine cables, has been detected. However, a thorough submarine topographical survey and subsurface profile needs to be accomplished to determine the best route for the submarine cable. This will identify areas to be avoided such as shipwrecks, large rocks, rock outcroppings, etc., that could cause suspensions and damage to the cable. This survey may be conducted utilizing a multi -beam sonar system such as the Reson Seabat 8101. If deleterious conditions are suspected, additional information should be obtained with a side -scan sonar system. Based on the information presently available, no obvious problems are anticipated with the cable installation at Wrangell Narrows. The cable should be buried approximately 1 meter in depth at both shores, out to a depth of 10 feet below Mean Lower Low Water (MLLW). Either direct burial or placement in a duct with a thermal backfill may be utilized. Due to the large amount of boat traffic through Wrangell Narrows, burial for the entire length is recommended. The water depth at the location of the Duncan Canal crossing is approximately 100 feet at maximum. No particular problems are anticipated with this crossing except that the timing of Kake - Petersburg Intertie Study 2-17 Final Report Transmission Line Routes and Technical Characteristics placing the cable should be coordinated so as not to interfere with the crabbing season in the Canal. Both of these submarine crossings were surveyed as part of the 1987 Intertie Study6. Findings related to these surveys are: "The crossing on Plate 5 [Wrangell Narrows] is a bowl -shaped depression as deep as 110 feet. Most of the alignment is soft bottomed except the eastern approach to Mitkof Island. Slopes on the east approach vary between 10:1 (6°) and 2:1 (270) whereas those in the west approaching the Lindenberg Peninsula of Kupreanof Island are more gentle, varying between 14:1 (4°) and 3:1 (18°). There do not appear to be any obstacles to construction at this crossing. Wrangell Narrows is a busy thoroughfare for ship traffic, both commercial and recreational. Tanner crab fishing occurs from mid -January to mid - February and salmon trolling lasts from May through the first week in June." "Crossing 6.5 [Duncan Canal], Plate 6, is bowl -shaped in cross section with a fairly gentle west approach to Kupreanof Island, 11:1 (5°), and a steeper approach to the Lindenberg Peninsula, 6:1 (91). Behograms indicate the crossing is probably floored by soft sediments and its deepest point is approximately 100 feet. The very near shore parts of the approach sounded with lead line may be hard bottom. There are no submarine cables in Duncan Canal. Construction in Duncan Canal may be delayed if emplacement is planned during the commercial crab fishing season. Dungeness crab fishing season is split with a summer season from May through September, and a winter season from October through January." Fiber Optic Communication Cable It is expected that a 24 strand fiber optic communication cable will be included in the KPTL design. Initially, the fiber optic system will be used for control of the KPTL system. For the overhead portions of the line, the fiber strands will be bundled within an aerial cable. For the submarine crossings, the fiber -strands will be an integral part of the bundled cable design. The terminations of the fiber optic cable will need to be connected to local communication systems at a later date. The termination and interconnection facilities have not been included in the preliminary design included in this study. The engineering consideration for the transmission design of the overhead fiber optic cable was divided into three principal categories, system planning, electrical design of system components, and the mechanical design of the line. For the purposes of the KPTL preliminary design, ALCOA "ADSS" 24 strand aerial cable has been selected. A 24 strand fiber cable is more than sufficient to meet the communication needs of control and data collection of the system operation. In addition extra fiber would be available for commercial and system voice communication. There is a very slight difference between 12 and 24 strand fiber. We 'Crossings 6.1 and 6.5, Appendix A, Transmission Line Submarine Crossings — Oceanography/Meteorology, Alaska Power Authority, Southeast Alaska Transmission Intertie Study, Harza Engineering Company, October 1987. Note that the eastern landing of the Wrangell Narrows crossing as surveyed for the 1987 study appears to be slightly north of the presently defined location. Kake - Petersburg Intertie Study 2-18 Final Report `| ■0 | 0 } � ■�`�� ` � | | | � $ Q / \ 2 $ ( Transmission Line Routes and Technical Characteristics recommend at the time of construction the volume of traffic and system needs be re-evaluated. The transmission structures are sized to support the 24 strand ADSS. Space has been allocated in the preliminary design of the KPTL structures to install fiber optic ADSS cable. Sag and tension is to be obtained from cable manufactures in the form of computer hardware and software programs. The cable manufacturers will usually prepare such data and provide consultation concerning the design data parameters for the project. It is our recommendation that the fiber optic cable installation meet Heavy Loading and Grade B construction. ADSS cables tend to vibrate at higher levels than other cables of comparable size, due to their lighter weight. Also the "soft" nature of their jackets and internal construction requires special consideration. A special damper, called the Dielectric Damper, has been developed specifically for application on ADSS cables which should be installed for span lengths as follows: • 228 ft — 600 ft; quantity — 2; placement — one on each side of pole • 601 ft — 1200 ft; quantity — 4; placement - two on each side of pole The mechanical strength requirements of an overhead line supporting structure are determined with the structure in an overloaded condition. The basic external design loads supported by the structure are multiplied by design overload capacity factors to obtain the value of the forces used in determining the required strength of the structure and structure components. The external loads supported by the structure consist of the wind on the exposed surfaces of the structure and the resultant tension of each cable span attached to the structure. These loads continually vary and are functions of the weather, initial stringing tensions placed in the cables, and status of permanent stretch in the cables. It is necessary to identify the specific conditions of loading for which the structures are designed and the specific values of overload capacity factors, which are applied. ALCOA Sag10 Version 3 is recommended to formulate sag tables for installation and investigation of final sag clearances. In order to initiate sag information into the software program, Cable diameter, weight, rated breaking strength (RTS), maximum rated tensile strength (MRCL), thermal coefficient of expansion and moduli for initial, 10-year creep and final conditions are required form manufactures of the ADSS Cable. For the purposes of this study we have selected the ALCOA product. Power Flow Analysis As part of the KPTL Study, a power flow analysis was conducted to evaluate several factors with regard to the operation of the KPTL. The power flow analysis developed computer models of the interconnected electric systems to identify the desired system configuration, recommended system enhancements, and identify special provisions that might be needed for reliable and economic system operation. The analysis evaluated the interconnected system with and without the inclusion of a mining facility on Woewodski Island. A system modeling database was obtained that includes available generation resources, existing transmission facilities, and each proposed alternative transmission route's electrical characteristics. Kake - Petersburg Intertie Study 2-19 Final Report Transmission Line Routes and Technical Characteristics An important element of the power flow analysis was the determination of the recommended KPTL voltage and the recommended conductor size. The analysis also defined the substation improvements needed in Kake and the switchyard facility that will be needed at the interconnection of the KPTL with the existing TWP transmission line near Petersburg. The following planning criteria was used in the analysis: • Under normal system conditions, voltages at load serving facilities should range from a maximum of 105 percent of nominal system voltage to a minimum of 95 percent. • Maximum voltages for the Intertie transmission buses should not exceed 110 percent of nominal system voltage during energization procedures when no load is being served. • Minimum voltages may sag to as little as 85 percent of nominal as long as there is no danger of voltage collapse for the non -load serving intertie transmission buses under heavy system load conditions. • Facility loading should not exceed 100 percent of normal system seasonal ratings as specified by the manufacturers of the submarine cables, or for overhead transmission system, as determined based on standard conductor loadability. The power flow analysis concluded that facilities are limited by voltage constraints and not by thermal limitations of transmission line loadability for the presently planned. The analysis also recommended that the KPTL be operated at 69-kV using 336 kcmil ACSR conductors. The analysis, conducted by Commonwealth Associates, Inc., is provided in Appendix A to this report. Detailed Route Evaluation A number of US Forest Service roads have been built in the area where the KPTL would most likely be located. These roads will facilitate construction and maintenance of the line by providing ground access to the area. In more remote regions, construction crews and materials are usually transported by helicopter which contributes to higher overall construction costs. An alternative approach for constructing the KPTL in areas where roads do not presently exist, would be to construct an access road along the transmission line. An access road would typically be of a slightly lower quality than the existing USFS roads in the area. As previously indicated, a number of previous studies have been conducted to evaluate potential route alternatives for the KPTL. The 2003 Intertie Study relied extensively upon the results of previous studies, incorporating newer information and updating previous cost estimates primarily using various cost escalation factors. The 1996 Feasibility Study was intended to define the design and routing criteria, estimate costs, provide a brief environmental review and assess the economic and financial feasibility of an Intertie between Petersburg and Kake. It was based on a 3-phase AC overhead system with submarine crossings of major water bodies. The 1996 Feasibility Study included a review and summary of the earlier reports and included consideration of the Kake Coastal Management Program, Public Hearing Draft dated April 1984. Kake - Petersburg Intertie Study 2-20 Final Report Transmission Line Routes and Technical Characteristics The 1996 Feasibility Study did not include any field work or visits to the project area and relied solely on work from previous studies tempered with consultation and input from local utility, and various State, federal and local governmental agency personnel. Earlier reports which included site reviews were the 1984 Ebasco7 and 1987 Intertie Study reports. The 1984 Ebasco study included fairly extensive field work and analysis of construction conditions for a Petersburg to Kake Intertie and included a number of drawings highlighting features along suggested routes. The 1984 Ebasco report provides a reasonable description of the terrain and soils along the preferred Southern route. Changes have occurred since the 1984 Ebasco report relative to the number of logging roads and the amount of logging and clearing that would be required along the route. The 1984 Ebasco report suggested a floating camp in the Duncan Canal area with material hauling using helicopters in the roadless section of the route, a distance at the time of approximately 20.5 miles. The roadless section of the route identified in the 1984 Ebasco report, which is essentially the same as the current Center— South Alternative, has now been reduced to approximately 13 miles. The 1987 Intertie Study report included bathymetric surveys of the proposed submarine cable crossings and included a compilation of public and agency comments received at the time of the 1987 Intertie Study. All of the earlier studies concluded that the southern route was preferred, absent detailed environmental analysis. The 1996 Feasibility Study, which considered two routes along the currently defined routes of the Northern Alternative and the Center -South Alternative, concluded: "...the southern route is preferred based on public comment, agency comment, previous study findings, and engineering and environmental judgment." All of the earlier reports emphasized the need to conduct environmental studies prior to selection of a specific route. KPTL Alternative Route Descriptions As indicated previously in this report, the ten initially considered route options were reduced to the following four options: 1. Center — North Alternative (Wilderness Route) 2. Center — South Alternative 3. Woewodski Tap 4. Northern Alternative A map showing these route alternatives is provided as Figure 2-7. Reference to this map and the Node points (e.g. T, Tl, S3, K) shown on it should be made to better understand the route descriptions which follow. 7 Tyee-Kake Intertie Project, Detailed Feasibility Analysis, Volumes I and II, prepared for the Alaska Power Authority by Ebasco, Inc., 1984. Kake - Petersburg Intertie Study 2-21 Final Report Transmission Line Routes and Technical Characteristics Center -North Alternative (Wilderness Route) The proposed route of the Center -North Alternative begins at a tap of the 69-kV TWP transmission system at a point approximately eight miles south of Petersburg. The route crosses Wrangell Narrows, traverses west and north on the Lindenberg Peninsula to a point just south of Portage Bay and then proceeds west to Kake. A significant feature of this route alternative is that approximately nine miles passes through the western Photo l —Looking west across Wrangell Narrows towards the log transfer facility. edge of the Petersburg Creek — Duncan Salt Chuck Wilderness. The Center -North Alternative has a total length of 59.0 miles of which 41 miles is along existing USFS roads. A single 0.6 mile long underwater crossing of Wrangell Narrows is included in this alternative. The route starts at the "Petersburg Tap" of the existing TWP line at Node T, which is located about 4,800 feet from the water at this point. An overhead line will be constructed from Node T that crosses the highway and then parallels the highway to a point near the former Alaska Experimental Fur Farm. The line would then proceed west from the highway to a point near the water where the overhead line would connect to the submarine cable that crosses Wrangell Narrows. A relatively narrow, 60 foot right-of-way could work in this area although a 100 foot right-of-way would be desired. Land ownership at this location is either State or USFS. At this point, Node Tl, a relatively simple submarine cable termination structure would be constructed where the bundled, 3-phase submarine cable and fiber optic cable is connected to the overhead line. The submarine cable will leave the structure through an 8 inch diameter schedule 80 PVC duct that will be placed in a trench that reaches the mean low water (MLW) line. From there, the cable would be placed in a split duct casing and buried in a trench to a point where the water depth is about 100 feet 8 The location of the cable across Wrangell Narrows is out of the commercial shell fishing area and the area normally dredged. A warning sign onshore on both ends of the cable will alert marine traffic to a buried power cable. Wrangell Narrows is a very active marine environment where pleasure and commercial vessels travel year around. It is also a fly path for both commercial and pleasure aircraft. 8 Due to the high level of marine traffic in Wrangell Narrows and the relatively shallow crossing depth, it may be preferable to bury the submarine cable along its entire length. This would greatly reduce the potential damage to the cable from ship anchors and other Kake - Petersburg Intertie Study 2-22 Final Report Transmission Line Routes and Technical Characteristics The submarine cable will exit the west side of Wrangell Narrows in a similar fashion and connect to an overhead line at Node T2. This will be at a point near the existing Tonka log handling facility. A submarine cable termination structure, comprised of lightning arresters and a steel -pole riser for the overhead -to -underground transition, will be constructed near the shoreline but sufficiently inland to limit its visibility from the water and to stay above the tidal zone. Between Nodes T2 and T3, a distance of about 1.5 miles, the line will be located just off the existing logging roads in a heavily forested area. lug Right-of-way clearing Mood will be needed in this area. Between Nodes T3 and T4, approximately 1.8 miles of the route is in a forested area requiring right-of-way clearing and 6.2 miles is in a muskeg area that will probably Photo 2 — Looking north up Duncan Canal toward Wilderness Area. Existing logging only need minimal brush road is in foreground. Location of Node T10 is in center of picture. clearing. Between Nodes T4, T10 and T5, the route passes mostly through heavily forested areas with part of the existing USFS road on a steep hillside. Clearing will be needed on the uphill side of the road in this area. The entire length of the route between Nodes T2 and T10 is adjacent to existing USFS logging roads. The route between Nodes T5 and S3 is primarily located in the Wilderness area. From aerial reconnaissance it appears that an old trail exists near where the line is proposed to be placed. It is proposed that the right-of-way be cleared to a minimum width of 60 feet and a maintenance trail would be built along side the line. Through this section of the route, the ground is generally level and the forest cover is relatively light. Approximately 4.7 miles of the route between Nodes T5 and S3 is located in forested area and 6.7 miles is in muskeg area, none of which is along existing USFS roads. At Node S3, the route of the Center -North Alternative is the same as the Northern Alternative. Between Nodes S3 and S4, approximately 4.0 miles of the total segment length of 9.7 miles will be along existing USFS roads. It is proposed that an access road be built along the 5.7 miles of the route where currently there is no road. Relatively easy access to clear and build roads will be available along this section of the route. During the field reconnaissance the depth of the muskeg was measured at between four and six feet at a point approximately three miles east of Node S4. Between Nodes S4 and S5, the entire segment length of 12.2 miles will be alongside existing USFS roads. Clearing requirements along this segment will be limited to only 2.0 miles through forested areas. Access to this segment of the route will be good from Kake. Kake - Petersburg Intertie Study 2-23 Final Report Transmission Line Routes and Technical Characteristics The 10.2 mile long segment between Nodes S5 and K (Node K is the termination of the route at the substation in Kake) will be entirely along existing USFS roads. Some clearing will be needed along 7.2 miles of the segment length although much of this area has been previously logged and only scrub trees exist. Several locations would be suitable to place a new substation in Kake although enough level ground is not readily available at the site of the existing powerplant. The substation could be located just north and west of the airport runway. Access to IPEC's distribution circuits would be relatively straightforward from this location. Center - South Alternative (Old "South " or "Tonka-Duncan Canal " Route) The Center -South Alternative is 51.5 miles long and will require two marine crossings: a 0.6 mile long crossing of Wrangell Narrows and a 1.2 mile long crossing of Duncan Canal. This route alternative is the same as the Center -North Alternative from Node T at the tap point to the existing TWP transmission line to Node T4 near Duncan Canal. It is also the same as the Center -North Alternative from Node S5 near Kake to Node K at the termination of the route in Kake. In total, the length of these common segments is 21.2 miles. Reference is made to the description provided for the Center -North Alternative as it pertains to the common segments. Between Nodes T4 and T6, a 1.2 mile long segment, the route is in an area where there is not a USFS logging road. An access road would be built in this area adjacent to the line where half the length is in forested terrain and half is in muskeg. A submarine cable termination yard will be constructed at Node T6 where the 1.2 mile long submarine cable across Duncan Canal will connect to the overhead line. It is proposed that the bundled, 3-phase submarine cable have a similar approach to the water as was described previously for the Wrangell Narrows crossing. From field reconnaissance, the proposed location of the submarine cable across Duncan Canal appears very good although tidal currents and fishing vessel traffic may potentially be an issue that might require trenching of the cable along the entire crossing. The submarine cable would be connected to the overhead line at Node T7 at a similar cable termination facility as placed at Node T6. The segment of the line route between Nodes T7 and T8 is 10.3 miles long, entirely in an area where there is no existing logging road. About 6.7 miles of the line is in an area of muskeg requiring very little clearing. An access road is proposed to be built adjacent to the line along the entire length of this segment. During the field reconnaissance the muskeg depth was Photo 3 — Probing the depth of muskeg between Nodes T7 and T8. Kake - Petersburg Intertie Study 2-24 Final Report Transmission Line Routes and Technical Characteristics measured and found to be approximately 6 feet deep. Although an attempt has been made to try and locate the line in higher ground in this area, it will still be a relatively difficult area to build the access road due to the extensive muskeg. Between Nodes T8 and TI 1, the route follows the existing logging road for 3.4 miles and will be placed in a generally forested area without a road for 1.3 miles. The access from Kake will be good along this section of the route making road construction relatively straightforward. The route segment between Nodes TI I and S5 is 13.0 miles long and is adjacent to an existing logging road along the entire length. This segment is in a well logged over area and will require only minimal clearing of brush and small trees. Access from Kake is very good along this section of the route. Woewodski Tap Alternative The Woewodski Tap Alternative is a 13.6 mile long section of transmission line that can be added to the Center -North Alternative or the Center -South Alternative to provide power to a potential mining facility on Woewodski Island. It has been indicated by representatives of the Woewodski mining interests that if developed, facilities requiring power would most likely be on the east side of the island. The Woewodski Tap Alternative includes 5.2 miles of overhead line on Woewodski Island itself to deliver power from the north end of the island to the east side. The decision to build the Woewodski Tap would depend on whether or not a mining facility is eventually developed and whether or not it is deemed economically favorable to connect the mining load to the TWP-Kake power system. The Woewodski Tap would begin at Node T3 with a connection to the KPTL9. A 7.6 mile long section of overhead line running south from Node T3 to Node T12 would be located on the Lindenberg Peninsula. Only about 2.1 miles of this segment length will be adjacent to existing logging roads, requiring about 5.5 miles of access road construction for the remaining portion of the segment. About two-thirds of the new section of road will need to be built in muskeg areas. Access to this section of the route will be relatively easy by means of the logging roads extending west from the Tonka log handling facility. This logging road on Lindenberg Peninsula, however, is isolated and is not connected to either Kake or Petersburg. A 0.9 mile long submarine cable crossing of Wrangell Narrows between Nodes T12 and T13 will be required to deliver power to Woewodski Island. The submarine cable will require tennination facilities to connect to overhead lines similar to those described for the crossing between Nodes TI and T2 for the Center -North Alternative. The submarine cable will be buried in a trench along the length of this crossing since water depths are relatively shallow and this area is subject to high vessel traffic. Between Node T13 on the north side of Woewodski Island and Node X, on the east side of the island, 5.2 miles of overhead line would be constructed. This entire segment length is to be 9 It is presumed that the Woewodski Tap would only be built at some later date after the KPTL is constructed. As such, the section of the KPTL from Node T to Node T3 will be in place prior to construction of the Woewodski Tap. Alternatively, if it is constructed before the KPTL, the Woewodski Tap would need to include the line sections east of Node T3 and the interconnection to the TWP. Kake - Petersburg Intertie Study 2-25 Final Report Transmission Line Routes and Technical Characteristics located in an area where there are no existing logging roads. It is important to note that the actual location of ore processing and handling facilities on Woewodski Island will determine the best location for the transmission line on the island. Additional study will be needed to define actual specifications for the Woewodski Tap when and if a mining facility is actually to be developed. Northern Alternative (Old "Northern Route') The Northern Alternative is 66.0 miles long and generally traverses the north side of Kupreanof Island along the proposed route of the Kake — Petersburg road as proposed in the Southeast Alaska Transportation Plan. The Northern Alternative originates at the Petersburg substation where the TWP transmission line terminates. A 2.2 mile long overhead section of line would exit the substation and follow an existing gravel road generally in an east northeast direction to Frederick Sound. This line would be located behind Petersburg and somewhat near the airport. At Node S1 on Frederick Sound, a submarine cable termination facility would connect the overhead line to a 3.1 mile long submarine cable to be located northeast of the entrance to Wrangell Narrows. Between Nodes SI and S2 the submarine cable would be placed in a trench to a water depth of approximately 100 feet. Al the shore ends the cable would be placed in split pipe or conduit for protection. The cable for this crossing would generally placed in somewhat deeper water to avoid anchor areas, fishing grounds and the dredging channel. The Wrangell Narrows entrance is a very busy channel and it will be important to place the submarine cable in deeper water to avoid much of the marine traffic and activity. The submarine cable is proposed to come ashore at Node S2 on Kupreanof Island, at a point potentially north of Five Mile Creek. Photo 4—Typical 69-kV submarine cable termination facility in a residential area. Kake - Petersburg Intertie Study 2-26 Final Report Transmission Line Routes and Technical Characteristics From Node S2, the route follows north along the Frederick Sound shoreline on the east side of Kupreanof Island and then cuts west to Node S3 located near the south end of Portage Bay. About half of the total 28.5 mile length of this segment is in an area where there is no logging road. Along Frederick Sound the route is situated on a fairly steep slope in a heavily forested area with numerous small streams and wash areas coming down off the hillside. An access road is proposed to be constructed along the line route in the area where no road currently exists. Near the point where the route turns west, 14.1 miles of the segment length will be located along an existing logging road. From Node S3 to Node K in Kake, the Northern Alternative is the same as the Center -North Alternative. The description for this section of the route is provided in the description of the Center -North Alternative. Photo 5 — Typical logging road and terrain on Kupreanof Island. Kake - Petersburg Intertie Study 2-27 Final Report 27 F P b r _ s e Mposal Area (depth; from surveys of 1978)--�— ' T2 i i " Move submarine cable south out of disposal area. �e a° k 7 3 Horizontal DaumNath American Datum r{ 1983 (NA083). Geographic CoorW'nafs System (GCS): Afaske State Race. Slate Rex Zofre: 1. Ferrell lntmmatmn Processing Sfandam' (FIPS) Zone: 5001. Projection: Ibax Obkgm MematorAztmufh Natmal Origin SphemId' Geodelc Reference System of f980 (GRS 19(b). Dxar Unit US Feet Overhead Alaska Exparimentai Fur Fam1 --J T59N, R79E T60N, R79E 2 IA Scale: 1" _ miles (1: ) 0 600 1,2f100 7,800 2,400 2,�00 3,000 FeetS [s Nefionel Foust (eenel mllnphatopephy,eprif 107). Nation Gwenic eMAtmassl & fe xries bpo9rephuquedrsrigk mep (PelarffimgG ,, ORG 8 Tems.1). Commanveeeh rmdNs Us ppem ,ollhe Inrosior, Oureeu o/Lentl Menegemem (hmlpitl). Enlargement A: Submarine crossing between segment nodes Tl and T2 over an aerial orthophotography background. Potential added expense/problems with disposal area. ll r 27 /y p 26 11 U2� to 6 { �t 75 2 12 114t 18 11 7��_ T (" I / Overhead 1 f / h Disposal Area 111,` 1 20 11 11 / B 1 ( c � (depths from ) suNeys of 1978) I 5q !)) J 75 1`34 6= i4i! �r 35 w T2 I �t ��,f N to 17 I marihe + I F- a )�_ V la Cab/sT1 m ,�r�2 3e /r Alaska Experimental K 'f 0 � ` t8 4 x { J� Fur Farm w V } / Ax I ❑ r3 1 i A ' 7 15 i( 7e a Move submarine cable south r n'• 6 c I 4, out of disposal area. T59N, R79E `41 R R 1@R4M'FAW ' g ` T60N, R79E G� � f (}(812k4M'+1V' 3 7i Z 01 44 Horizontal Datum: North Amenmm Datum a 1963 (NAD63). N Geographic Coordinate System `GCS) Alaska Slate Plane Scale:V .25 miles(1: 15,840) Slate Plane Zone: 1. Fe mall lormation Prosssing smndaN IRPS) Zone: 5oo1, 0 Wo 1,200 1,800 2,400 3," W E Prgedion: HOfilre Oblique MercatOr&unaWh Natural Origin Spheroid. Geodetic Rmamncn Syslem of 1980 (GRS 1980), eel linear Unit US Feet s fiesemep Source: US Fortif Semce, Pe(arsbuy Rerger PsmM- Tongass Na(ionel Forest (aerial orthophdapaphy-epA199]). National Cceenic and Afmospherk Atlminisfrefion nauM1cel Merl (1]3]5-Sept 3W0, paper) USGS ] SminNe series fopwyapbicquatlmngle map (Pokrsburg L-3, ORG 8 Tenaserver). Commomeatth Assooeks, Inc. PLS-CAUO hansmission One endn9hfal-way elignmed modek USOepsnmant of the I'll euraau olLentl Manegem ml (lendgH). Enlargement B: Submarine crossing between segment nodes Tl and T2 over a nautical chart background. Potential added expense/problems with disposal area, Section 3 Permitting Requirements and Environmental Process Overview Introduction As discussed in Section 2 of this report, there are two primary route alternatives to link Kake with the TWP power system, identified as the Center -North and Center -South Alternatives. A third route, the Northern Alternative, is being carried forward because it follows the proposed road route between Petersburg and Kake under consideration by the Alaska Department of Transportation and Public Facilities (ADOT&PF). Connecting Woewodski Island to the KPTL power system would require an additional, shorter utility corridor, called the Woewodski Tap. The primary land owner in the vicinity of the KPTL, the U.S. Department of Agriculture, is responsible for the management of the Tongass National Forest within which lies the a significant majority of the land for the alternative corridors under consideration. Within this forest there are 18 Land Use Designations. Table 3-1 summarizes the Land Use Designations within the alternative routes by route segment. The USFS has developed management prescriptions for each of these land designations to help guide their management of natural resources within their responsibility. For an overhead utility corridor with an adjacent maintenance road, important management prescriptions include: • Construction of the transmission lines (poles) per the USFS design criteria to minimize avian resource loss and minimize impacts to scenic viewsheds • Maintenance of culverts and bridges associated with roadways to minimize aquatic resource impacts • Avoidance of heritage resources • Avoiding, minimizing, and possible mitigation of wildlife habitat fragmentation from construction of new roads. Table 3-2 provides a more detailed listing of issues associated with alternative segments or links. Following is a summary of the environmental process and permitting requirements associated with each route alternative. Northern Route The segments or links that are unique to this route include the line from Node T to Node S3. This covers that portion of the route within the Petersburg City Limits, the crossing of the mouth of Wrangell Narrows, and the alignment through the scenic viewshed adjacent to Frederick Sound. This is the alignment that the ADOT&PF has selected as the preferred alignment for a road link between Petersburg and Kake (Southeast Alaska Transportation Plan (SATP), August 2004). In discussions with Andy Hughes, the SE Region Planning Chief, ADOT&PF has selected this route because it would require only one new ferry terminal (on Kupreanof Island) and avoids USFS wilderness designated lands. While this alignment would have construction -related issues not present in other potential road corridors, the avoidance of the wilderness, cost savings from Kake - Petersburg Intertie Study 3-1 Final Report Permitting Requirements and Environmental Issues Overview needing only one new ferry terminal and the assumed ability to successfully apply application of the USFS scenic viewshed management prescriptions make this alternative ADOT&PF's preferred route. Another aspect of this route that will contribute to the complexity of constructing a ferry terminal and road with or without an overhead transmission line is the Alaska Department of Natural Resources (DNR) designated Unit P-02, the coastal plan and foothills north of Prolewy Point (See Figure 3-2). This DNR Unit is being managed to protect the scenic views of Petersburg and visitors as well as being selected under NFCG 298 for the purpose of Community Expansion for the incorporated city of Kupreanof. According to DNR's Area Management Plan, this area is subjected to heavy weather limiting water access to vessels. The area is heavily used by marine life including marine mammals and waterfowl. Dense kelp beds along part of the shore provide protected fish habitat. Using this route alignment for an overhead utility corridor could increase the potential impacts on avian resources. There are a relatively high number of eagle nest trees along the shoreline. While the road construction would also require work in this sensitive habitat, the overhead utility poles would also have a longer term potential for affecting birds from the increased possibility of electrocution. To implement the Northern Alternative, the National Environmental Policy Act (NEPA) process would be required because of the Federal lands involved, Federal permits required, and the probability of the use of Federal funds. If this transmission line alternative is selected because of the expected ADOT&PF road and ease of line maintenance, the NEPA process would expect to cover both projects because they would be integrally combined. The timing of potentially constructing a road between Kake and Petersburg has not been determined. There is an ongoing analysis of the potential affects of this road way on ferry schedules and services to Sitka, Petersburg, and the small Northern Panhandle communities. The results of that analysis will be contained in an update to the SATP to be released during the third quarter of 2005. Whether or not the ADOT&PF maintains its intent to construct this road, the Kake to Petersburg road is not a high priority capital project and would not be expected to be implemented for several years. Center -North Alternative (Wilderness) The unique component of the Central route is the portion of the alignment through the Petersburg Creek - Duncan Salt Chuck Wilderness. The Tongass Land Management Plan (TLMP) designation for Wilderness states (page 3-15) the following: This Land Use Designation represents a Transportation and Utility System (TUS) "Avoidance Area." Transportation and utility sites and corridors may be located in this Land Use Designation only after an analysis of potential TUS opportunities has been completed and no feasible alternatives exist outside this Land Use Designation. The "feasibility" issue will make this alternative difficult to select because, based on the analysis of the Center -South Route presented in this report, there is a feasible alternative. While initial Kake - Petersburg Intertie Study 3-2 Final Report Permitting Requirements and Environmental Issues Overview work on utility corridor identification in the 1970's found this route the most environmentally appropriate corridor, under the current Wilderness status, this route is not as viable as it once was. According to P. Grantham, Petersburg Ranger District Supervisor for the Tongass National Forest, there are possible, although relatively difficult, ways to implement a utility corridor through this Wilderness. Regardless of how the proponent receives permission to build the Center -North Route, it would take an Act of Congress to place a transmission line in the Wilderness. Ways to facilitate receiving permission include: • Get consensus of all the pertinent local environmental groups to say this is the best alternative. This would take a fair amount of documentation but could be achievable. • Offer a different parcel of land that could be transferred into the Wilderness or a parcel that could be designated National Forest Land. This is also known as a "land swap'. Land swaps are relatively controversial and not recommended by the U.S. Forest Service. The costs of obtaining the Act of Congress or the work leading up to it are not included in the cost estimates presented in this report. The costs for the Center -North Alternative are shown to be higher because of the costs of local early scoping efforts and EIS preparation involving a route not within a designated utility corridor. If the Act of Congress is passed prior to the initiation of the EIS process, the EIS costs shown in Table 3-5 might be lowered. Center -South Route There are two unique issues associated with the Southern Route: the Duncan Canal crossing and the 10.3 miles of roadless area that is within an important flyway zone directly west of the Duncan Canal crossing (the Duncan Canal Salt Chuck Waterfowl Habitat). According to DNR's Resource Management Plan for this region, there are important starry flounder nurseries and fishing grounds as well as shrimp trawl fishing areas within the vicinity of the cable crossing. Fishermen who rely on the Dungeness crab fishery also indicate that the Duncan Canal is a very important crab nursery and rearing habitat. The DNR may require the cable be buried along its entire length in order to protect the habitat, fishing grounds, and integrity of the cable itself. Due west of the Duncan Canal crossing is an important waterfowl flyway. Early reconnaissance work by staff with the Alaska Department of Fish and Game (ADF&G) found that a utility corridor within or near the flyway would have a large effect on the safety of the waterfowl using that flyway. The potential for service interruptions would also be greater if the power lines are within the flight path of these birds. ADF&G staff recommended that the alignment be moved south, closer to the bluffs of the nearby plateau so that the poles would be below the primary flyway height. We recommend that during final alignment design, members of ADF&G and DNR-Office of Habitat and Permitting (DNR-OHMP) be part of the alignment team to ensure avoidance and minimization of waterfowl conflicts. Kake - Petersburg Intertie Study 3-3 Final Report