HomeMy WebLinkAboutAllison Creek Hydropower Project Grant Closeout Report - Mar 2017 - REF Project 407038ALASKA
,� ENERGY AUTHORITY
REF Project 407038, Allison Creek Hydroelectric Project
Grant Closeout Report
Project Overview
Project Title
FERC status
Grantee/Owner/Developer
Project Region
Local Electric Utility
Allison Creek Hydroelectric Project
P-13124 Issued
Copper Valley Electric Association (CVEA)
Valdez, Copper River, Glenallen
Copper Valley Electric Association (CVEA)
Project Description
Developing a hydro project in the Allison Creek drainage is a concept considered for many
decades. Like most rural Alaska regions, the high cost of fuel continues to plague CVEA members.
Rural Alaskans and CVEA members cannot control the cost of fuel and continually work to lessen
their reliance on fuel for power generation. It is with this goal in mind that CVEA worked toward
its vision to reduce or eliminate their dependence on fossil fuel and to stabilize the Cooperative's
cost of generation with regional, sustainable resources.
The Allison Creek Hydroelectric Project is located adjacent to the Prince William Sound,
immediately south of Port Valdez, Alaska. CVEA is a member -owned electric cooperative
providing electric service to a relatively large geographic area of Eastern Interior Alaska and
Prince William Sound. CVEA owns and operates the Solomon Gulch storage hydro project, located
on the drainage immediately to the east of Allison Creek, and a diesel electric and a combined
cycle electric generation facilities.
The Allison Creek Project is a run of the river (ROR) alternative involving construction of a
diversion structure on Allison Creek at elevation 1,300 feet. Up to 80 cfs of water is diverted from
the creek into a 40 inch buried steel penstock to generate 6.5 megawatts of power via a single
twin jet pelton turbine at the powerhouse elevation of 170 feet.
The average annual flow from the 6.2 square mile Allison Creek basin is about 47.5 cfs. The
estimated potential annual generation for the project is about 23 GWh. The Allison Creek
operated in conjunction with the Solomon Gulch storage project at present day demand reduces
fossil fuel electric generation by about 15 GWh annually. Because of the higher efficiency
associated with the CVEA co-gen facility, the total estimated fuel savings from the Allison Creek
hydro will be about 725,000 gallons annually at present day demand. The total cost of
development for the Allison Creek hydro is approximately $55 million.
Project Features
• A 16 foot high diversion structure above a glacial moraine foundation spanning
approximately 95 feet across Allison Creek.
613 West Northern Lights Boulevard Anchorage, Alaska 99503 T 907.771,3000 Toll Free (Alaska Only( 888.300.8534 F 907.771.3044
Alaska Energy Authority
REF Project 407038, Allison Creek Hydroelectric Project
Grant Closeout Report
• A 7,900 foot long steel penstock ranging in size from 40 inch diameter at the intake to 36
inch diameter at the powerhouse.
• 700 foot long 16 foot diameter tunnel housing the 36 inch diameter penstock.
• A 65 foot x 65 foot powerhouse with a floor slab to peak roof height of 48 feet, pitched to
guide snow away from parking and entrance to the building. The building also supports a
large crane for handling the generation equipment.
• A single twin jet 6.5 MW Canyon pelton turbine and a tailrace located above the
anadromous salmon reach of lower Allison Creek.
• A 3.8 mile long 34.5 kV transmission line to the Copper Valley switching station near the
Petro Star facility along Dayville Road.
Grant Award(s) and Budgets
REF Grant Application Summary:
Round
App Number
Amount Requested
Amount Recommended
Award Code
1
27
$2,288,000
$2,288,000
2195390
5
816
$6,114,000
$0
6
930
$6,114,000
$6,114,000
7060930
7
1015
$5,914,491
$5,914,491
7071015
REF Grant and AEA Managed Award Summary:
AEA Award Code
Grant Funds
Grantee Funds
Total
2195390
$2,288,000
$573,134
$2,861,134
7060930
$2,085,509
$2,085,509
$4,171,018
7071015
$5,914,500
$5,914,500
$11,829,000
7910012
$10,000,000
$0
$10,000,000
Total
$20,288,009
$8,573,143
$28,861,152
Grant 7910012 is a legislative appropriation managed by AEA.
Execution of work
Under the REF grant program, funding began in late 2009 when CVEA was near completion of the
feasibility study and FERC license preparation for a project on Allison Lake. The feasibility was
then revised at the end of 2010 to focus on a development located on Allison Creek (below the
lake). FERC license application completion and submittal occurred shortly thereafter in late 2011.
CVEA issued and RFP for the project design and in 2012 which saw completion to 30% by the end
of the year. At this stage and RFQwas issued for construction contractors, an RFP for construction
management was issued, and FERC issued their Draft EA. Additional design work was expected
to occur based on input from a selected construction contractor under a Maximum Allowable
Construction Cost type of contract. In early 2013 CVEA awarded the construction contract and
the design was at 90%. CVEA was issuing bids for the turbine purchase as well. The FERC license
3/15/2017 Page 2 of 7
Alaska Energy Authority
REF Project 407038, Allison Creek Hydroelectric Project
Grant Closeout Report
was issued on August 1, 2013. At this stage CVEA's contractors completed the 100% design and
the plan included tunnel construction which differed from the license application with FERC
requiring an amendment. FERC approved the amendment authorizing construction and CVEA
made the first progress payment for the turbine purchase by the end 2013 although construction
could not begin because of winter weather. Construction started on May 27, 2014 with the lower
access road up to the tunnel. By the latter half of 2014 the turbine had been assembled and
tested at the factory, the powerhouse foundation was mostly poured, and the transmission line
clearing and the tunnel construction was completed. By the end of the 2014 construction season
the access road to the diversion site was complete and culverts to bypass water for construction
were installed, transmission work was nearly done, penstock installation had begun, and the
powerhouse structure was erected and weather tight. Low snow conditions that winter allowed
the contractor to begin accessing the site early in April of 2015. Communication connecting the
powerhouse and blasting the penstock trench in the tunnel were completed first. Powerhouse
electrical and mechanical followed including installation of the bridge crane. Also the coffer dam
at the diversion site was complete by June of 2015. The remainder of the season focuses on
penstock installation, diversion and intake construction, and powerhouse outfitting with the
overall project completion at 88% by the time winter weather forced work to stop early in
October. Construction resumed in May of 2016 with continued penstock construction through
the tunnel to the intake. The installation on the steep slope required a significant amount of
material cut and fill. Penstock installation on the slope began in July while crews also worked on
the finishing out the intake structure. Project commissioning and commercial power generation
occurred on October 5, 2016. CVEA and their consultants work on final deliverables for FERC in
early 2017.
Summary of Work, Budget, and Schedule
Major Deliverables
• Initial Feasibility: Allison Lake Hydropower Development, Final Feasibility Study, May 2010,
Hatch Acres).
• Final Feasibility: Allison Creek Hydropower Development, Final Feasibility Study, Addendum,
January 2011.
• Copper Valley Electric Association Inc submits an application for an Original License re Allison
Creek Hydro Project under P-13124, CVEA, 8/30/2011.
• Notice of application and applicant -prepared EA accepted for filing, FERC, 11/14/2011.
• Issued for Construction Drawings and Technical Specifications, 5/3/2013, McMillen, LLC.
• As -built Drawings, Exhibits A, F and G, CVEA, 3/2/2017
Major Permits
• Memorandum of Land Lease Agreement, CVEA and Alyeska Pipeline Service Co., 7/25/2014.
• Order issuing original license re Copper Valley Electric Association, Inc under P-13124, FERC,
8/1/2013.
3/15/2017 Page 3 of 7
Alaska Energy Authority
REF Project 407038, Allison Creek Hydroelectric Project
Grant Closeout Report
Project CostsPhase/Task
Amount
Source
Project Development (Feasibility, Permitting, and Design)
$4,550,000
CVEA, 1/12/2017
Construction Contract
$46,780,000
CVEA, 1/12/2017
Construction Management
$3,920,000
CVEA, 1/12/2017
Total
$55,250,000
Schedule
•
Initial Feasibility
S/31/2010
•
Final Feasibility
1/31/2011
•
License Application filed
8/30/2011
•
Design completed
5/3/2013
•
License Issued
8/1/2013
•
Start of Construction
S/27/2014
•
Land Lease Obtained
7/25/2014
•
Project Commissioning
10/5/2016
•
Final As Built
3/2/2017
Performance Evaluation
As of the date of this report there is limited information on the project operation. The original
expected generation is compared with the available reporting provided to AEA in the table below.
Month
January
February
March
April
May
June
July
August
September
October
November
December
Total
Expected Predicted
Energy
Energy
Energy
Generated
Utilization
Potential
kWh
kWh
kWh
0
?
100,000
0
?
0
0
?
0
0
?
100,000
0
?
2,200,000
0
?
4,300,000
0
?
4,800,000
0
?
4,300,000
0
?
3,600,000
529,126
?
2,700,000
337,000
?
1,000,000
37,000
?
400,000
903,126
9,900,000
23,500,000
3/15/2017 Page 4 of 7
Alaska Energy Authority
REF Project 407038, Allison Creek Hydroelectric Project
Grant Closeout Report
The 9.9 GWh of generation for Allison is based on the existing loads in 2011. CVEA had also
included analysis of a projected 2 MW additional load increasing the expected Allison benefit to
about 16 GWh annually.
Lessons Learned
If there is a single lesson for the Allison project it would be to not give up. Many said a road could
not be constructed to access the intake. CVEA persevered and was able to construct the project
in a short amount of time and approximately within budget despite the original construction
contractor backing out of the work.
Future Work and Recommendations
CVEA still generates a significant amount of energy with diesel fuel. Pursuing additional
hydroelectric resources, in a region where such resources are prevalent, should be a continued
goal assuming demand does not drop significantly.
Project Location Map
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3/15/2017 Page 5 of 7
Alaska Energy Authority
REF Project 407038, Allison Creek Hydroelectric Project
Grant Closeout Report
Photographs
Powerhouse with City of Valdez across bay in background.
Diversion and intake structure
- _ , - --+ice
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Alaska Energy Authority
REF Project 407038, Allison Creek Hydroelectric Project
Grant Closeout Report
3/15/2017 Page 7 of 7