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HomeMy WebLinkAboutAllison Creek Hydropower Pre-feasibility Study - Feb 2008 - REF Grant 2195390February 2008 The Energy Company February 11, 2008 H-327730 Robert A. Wilkinson, CEO Copper Valley Electric Association P.O. Box 45 Glennallen, AK 99588-2832 Dear Robert Subject: Allison Lake Hydroelectric Project Pre-Feasibility Study We are pleased to submit herewith our Pre-Feasibility Study for the Allison Lake Hydroelectric Project. The development of this study has been performed as Task Order 01 under our Professional Services Contract for General Services between the Copper Valley Electric Association, Inc. (CVEA) and Hatch Acres Corporation. The report presents our analysis of the hydroelectric potential of the Allison Lake basin. Following the review of previous studies and a helicopter / field reconnaissance of the project site, three options for hydropower development of Allison Lake were identified for the present study as follows: An intake and diversion tunnel from Allison Lake to the Solomon Gulch Reservoir in order to allow increased generation at the existing Solomon Gulch powerhouse. An independent development of Allison Lake including an intake, tunnel, power conduit and a new powerhouse near tidewater on Allison Creek. An independent development of Allison Lake including a low dam at the outlet of Allison Lake, a siphon intake, a surface power conduit and a new powerhouse near tidewater on Allison Creek. These three options are evaluated on the basis of their ability to contribute to the CVEA load, the potential cost of power and the environmental / regulatory issues associated with their development. All three options demonstrate technical, economic and environmental feasibility. Accordingly, notwithstanding the apparent long-term advantages identified for the independent tunnel / power conduit / powerhouse alternative, the report includes the recommendation that CVEA submit a FERC Preliminary Permit Application to study the three above defined arrangements in further detail upon the expiration of the existing FERC permit for the site. We greatly appreciate the opportunity to work with you on this interesting project. If you have any questions regarding the subject report, be sure to give us a call. Yours very truly, A. Richard Griffith, P.E. Project Manager Hatch Acres Corporation 6 Nickerson Street, Suite 101, Seattle, WA 98109 USA Tel: 206-352-5730 • Fax: 206-352-5734 • www..hatchacres.com Hatch Acres Corporation i Table of Contents 1.Introduction............................................................................................................................................1 2. Field Reconnaissance ..............................................................................................................................5 3. Alternative Project Arrangements...........................................................................................................7 3.1 General..........................................................................................................................................7 3.2 Alternative 1 – Allison Lake Diversion to Solomon Gulch Project, FERC P-2742 (Alt 1).................7 3.2.1 General................................................................................................................................7 3.2.2 Lake Tap ..............................................................................................................................8 3.2.3 Tunnel & Pipeline Structures................................................................................................9 3.2.4 Energy Dissipater................................................................................................................10 3.2.5 Access Road.......................................................................................................................10 3.2.6 Ecological Return Flow Facility...........................................................................................10 3.3 Alternative 2 – Allison Lake Tap with Powerhouse on Allison Creek (Alt 2) .................................11 3.3.1 General..............................................................................................................................11 3.3.2 Lake Tap ............................................................................................................................11 3.3.3 Tunnel & Surface Penstock.................................................................................................11 3.3.4 Powerhouse .......................................................................................................................11 3.3.5 Access Road.......................................................................................................................12 3.3.6 Ecological Return Flow Facility...........................................................................................12 3.4 Alternative 3 – Allison Lake Siphon Intake with Powerhouse on Allison Creek (Alt 3)..................12 3.4.1 Embankment Dam at Allison Lake......................................................................................12 3.4.2 Siphon Intake.....................................................................................................................13 3.4.3 Forebay Structure...............................................................................................................14 3.4.4 Penstock.............................................................................................................................14 3.4.5 Powerhouse .......................................................................................................................14 3.4.6 Access Road.......................................................................................................................14 3.4.7 Ecological Return Flow Facility...........................................................................................14 4. Power Studies........................................................................................................................................15 4.1 AUTOVista Model: System Loads and Resources .........................................................................15 4.2 AUTOVista Model: Allison Lake Hydropower Development........................................................15 4.3 Hydrology....................................................................................................................................17 4.4 Reservoir Characteristics ..............................................................................................................18 4.5 Hydro Equipment Characteristics .................................................................................................19 4.6 AUTOVista Results....................................................................................................................... 19 5. Project Construction Cost and Schedule...............................................................................................22 5.1 Construction Cost Estimates .........................................................................................................22 5.2 Cost Comparison with Previous Studies .......................................................................................22 5.3 Economic Analysis.......................................................................................................................25 6. Environmental and Regulatory Considerations......................................................................................28 6.1 Regulatory Requirements Associated with All Alternatives ...........................................................28 6.2 Alt 1 – Allison Lake Tap Diversion to Solomon Gulch Project, FERC P-2742...............................29 6.3 Alt 2 – Allison Lake Tap Hydro Project ........................................................................................31 6.4 Alt 3 – Allison Lake Siphon Project..............................................................................................31 Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page ii 7. Conclusions and Recommendations......................................................................................................33 7.1 Conclusions.................................................................................................................................33 7.2 Recommendations .......................................................................................................................36 8. References.............................................................................................................................................37 Appendices Appendix A – Photographs Appendix B – Reservoir Operation Appendix C – System Dispatch Tables Table 4.1 – AUTO Vista Model Elements Table 4.2 – AUTO Vista Hydrologic Years Table 4.3 – Annual Generation, Existing Condition Table 4.4 – Annual Generation, Alt 1 Table 4.5 – Annual Generation, Alt 2 Table 4.6 – Annual Generation, Alt 3 Table 4.7 – Annual Generation Benefits Table 5.1 – Allison Hydropower Development, Total Construction Cost (Bid 1/2008) Table 5.2 – Comparison of Tunnel Cost Estimates with Previous Studies (2008 Dollars) Table 5.3 – Comparison of Powerhouse Cost Estimates with COE Study (2008 Dollars) Table 5.4 – Basic Assumptions for Economic Analyses Table 5.5 – First Year Cost of Power (2008 Dollars) Table 7.1 – Alt 1 Pros and Cons Table 7.2 – Alt 2 Pros and Cons Table 7.3 – Alt 3 Pros and Cons Figures Figure 1.1 – Allison Lake Hydroelectric Project Location Figure 1.2 – Alt 1 General Arrangement Figure 1.3 – Alt 2 General Arrangement Figure1.4 – Alt 3 General Arrangement Figure 3.1 – Alt 1 and Alt 2 Lake Tap Figure 3.2 – Alt 1 Diversion Tunnel and Pipeline Figure 3.3 – Alt 3 Siphon Intake Facilities Figure 4.1 – AUTO Vista Model Elements: Existing Project Figure 4.2 – AUTO Vista Model Elements: Alt 1 Figure 4.3 – AUTO Vista Model Elements: Alt 2 and Alt 3 Figure 4.4 – Allison Lake Annual Inflow, 1951-1989 Figure 4.5 – Allison Lake Reservoir Storage Figure 4.6 – Allison Powerhouse Unit Characteristics Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 1 1. Introduction The purpose of this present Pre-Feasibility Study is to evaluate the economic viability of alternative arrangements for the addition of the Allison Lake drainage to the generating resources within the existing Copper Valley Electric Association (CVEA) electric system. The Allison Lake Hydroelectric Project (Project) is located adjacent to Prince William Sound immediately south of Valdez, Alaska as shown in Figure 1.1. Figure 1.1 Allison Lake Hydroelectric Project Location Previous investigations of the Project by HDR Engineering, Inc. (HDR) in 1992 and by the Army Corps of Engineers (COE) in 1982 evaluated potential project configurations for maximizing the Allison Lake resource. In the HDR study, recommendations were made to develop a 12,000-ft-long tunnel and deep lake tap of Allison Lake for diversion to Solomon Lake. Under this project configuration, water could be diverted during the winter months for use through the Solomon Gulch turbine units. In the COE study, which was completed prior to the construction of the Solomon Gulch Project, the COE recommended a stand alone hydro project from a deep lake tap in Allison Lake for conveyance via tunnel and penstock to a powerhouse (8 MW) on Allison Creek at Tailwater El. 100 ft. More recently, a preliminary permit application was filed for a shallower lake tap on Allison Lake and a downsized powerhouse (5 MW) on Allison Creek at Tailwater El. 150 ft. Allison Lake Allison Lake Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 2 Currently, CVEA’s primary source of power is from the Solomon Gulch Hydroelectric Project, a 12- megawatt hydroelectric facility owned by the Four Dam Pool Power Agency (FDPPA) and operated under contract by the CVEA. Due to the seasonal pattern of the power production from this resource, CVEA must also rely on other resources during the winter months. Most important of these is a 5.2-megawatt cogeneration facility where exhaust heat is recovered and sold to and used by Petro Star for refining purposes. Diesel-fueled reciprocating gensets are also operated and maintained by CVEA for supplemental power requirements and for reserve purposes. Although the Solomon Gulch Project operates year round, during winter months the Solomon Gulch Project operates at reduced levels and CVEA must rely heavily on the above listed fossil resources to meet system load. The objective for pursuing potential development of Allison Lake is to fill this gap with additional hydropower generation. The general configuration of the three arrangements under consideration consist of: • Alternative 1, which includes an intake and diversion tunnel to the Solomon Gulch Reservoir in order to allow generation at the existing Solomon Gulch powerhouse during dry period conditions (Alt 1). • Alternative 2, which includes an independent development of Allison Lake including an intake, tunnel, power conduit and a new powerhouse near tidewater on Allison Creek (Alt 2). • Alternative 3, which also includes an independent development of Allison Lake including and a low dam at the outlet of Allison Lake, a siphon intake, a surface power conduit and a new powerhouse near tidewater on Allison Creek (Alt 3). The general arrangement for Alt 1, Alt 2 and Alt 3 is shown in Figures 1.2, 1.3 and 1.4 respectively. Figure 1.2 Alternative 1 General Arrangement ALTERNATIVE 1 – Diversion to Solomon GulchAllison Lake ALTERNATIVE 1 – Diversion to Solomon GulchAllison LakeAllison Lake Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 3 Figure 1.3 Alternative 2 General Arrangement Figure 1.4 Alternative 3 General Arrangement ALTERNATIVE 2 –Tunnel & Penstock to Powerhouse @ Allison CreekAllison Lake ALTERNATIVE 2 –Tunnel & Penstock to Powerhouse @ Allison CreekAllison Lake ALTERNATIVE 3 –Siphon Intake w/ Penstock to Powerhouse @ Allison CreekAllison Lake ALTERNATIVE 3 –Siphon Intake w/ Penstock to Powerhouse @ Allison CreekAllison LakeAllison Lake Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 4 The scope of work for the Pre-Feasibility Study includes the following activities: 1. Data collection. 2. Field reconnaissance of Allison Lake area. 3. Development of general arrangement details of each alternative consistent with the purposes of this study. 4. Analysis of Allison Lake hydrology and hydropower potential in relation to the existing Valdez electric system. 5. Preliminary layout and cost estimate of hydroelectric project features. 6. Economic evaluation of the three above described alternatives. 7. Environmental review of the three above described alternatives. 8. Preparation of this Pre-Feasibility Report including the resulting conclusions and recommendations. Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 5 2. Field Reconnaissance On October 9 2007, Hatch Acres representatives Mr. Steve Hart and Mr. Don Bowes accompanied Mr. Steve Bushong of CVEA on a site reconnaissance of the Solomon Gulch and Allison Lakes watersheds via helicopter. The morning of the trip was clear with high visibility. Flying up the basin by helicopter, it appeared that the glaciers above the lakes’ drainage amounted to less than 5% of the area (Photos 1 & 2)1 . Because of the basins’ physical similarity, we concluded that Solomon Gulch streamflow could be used as a basis for the hydrology used within this Report. The site condition at Allison Lake was void of any tree cover and consisted of light groundcover over boulders left over from glacial retreat. The lake outlet was broad (Photos 3 & 4) with low flows in Allison Creek. The northern reservoir rim showed only one rock outcrop (Photo 5) that appeared reasonable for a lake tap, which appeared to be at the location that the U.S. Army Corps of Engineers (COE) selected in its study of the Allison Lake Hydroelectric Project. The remaining length of the northern reservoir rim was comprised of material from old debris slides from the upper slope. From our observation, it seems that there is a high probability that some amount of this rocky debris exists on the submerged slope of the proposed lake tap portal. The amount of this material covering the rock outcrop will need to be investigated to better establish the construction cost for removing this material from the site. When the helicopter landed, it was apparent that the entire valley floor was covered in bouldery moraine, which would make the installation of a buried pipeline costly, especially for the HDR pipeline diversion scheme as described below. The construction of a rockfill dam for raising Allison Lake pool was considered viable so long as the structure’s height was limited. Normal construction of a dam requires a sound bedrock foundation, which would not be practical since bedrock is over 100 feet below the lake outlet. The lake was believed to be sealed through sealing this moraine deposit with glacial silt, which later investigation of existing data substantiated. Glacial silt near the outlet was measured by others to be greater than 90 cm deep at three different lake locations, inclusive of near the lake outlet. Such siltation would exist throughout the lake bottom. Allison Creek continued to flow on the surface, but it appeared that some amount of groundwater flow beneath the surface was possible. During our site visit, we did not observe any stream flow into the creek below the lake outlet. There was some creek inflow into Allison Lake from glacial melt. Later, when we visited the powerhouse site, Mr. Don Bowes observed that creek flow appeared greater than at the lake outlet, which would seem to indicate some amount of groundwater inflow from the lower watershed below the lake outlet. However, the amount of flow increase would need to be substantiated through stream gauging data. During our site visit, we observed an active gauge about 1,000 meters downstream of the lake outlet (Photo 6). We assume that this gauge had been installed by the current permittee. The site was appropriate and would appear to provide a reasonable estimate of lake inflow, provided that the data was corrected for the actual drainage at the lake outlet versus the drainage at the gauging location. If CVEA were to pursue a future preliminary permit license, we would recommend that gauging stations be established at both the powerhouse site and at the existing gauging station near the lake outlet. 1 See Appendix A Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 6 In previous study analysis, site access to the tunnel portals for Allison Lake Hydro alternative was assumed to be by helicopter only. In our review, constructing an access road would be difficult and costly, but possible. We believe that the most promising route, if an access road were to be constructed to Allison Lake, would be from across an upper bench just west of the Solomon Gulch dam structure (Photo 7). This bench would also provide a suitable tunneling adit for the Allison Lake diversion to Solomon Lake. Assuming that the access road could reach this bench from the existing Solomon Gulch dam access road, we reasoned that the road alignment would continue in an easterly direction (Photo 8) toward the top of a ridge that flanks Allison Creek to its west and that the road could be constructed at less than a 5% grade. The proposed alignment of the penstock (Alt 2 and Alt 3) that descends down the ridge to the proposed powerhouse site, as identified in the current preliminary permit application appears suitable and appropriate for a surface penstock design. When we visited the powerhouse site, the soil cover approaching the site appeared suitable for trenching the penstock for the short distance to the powerhouse site. The powerhouse site appeared to be suitable and did not appear to present much difficulty. It was noted by Steve Bushong that property issues would need to be reviewed, but that the alignment of a dirt trail to the powerhouse site that was flagged by the current permittee appeared suitable for a new access road alignment off the existing road used to access the Alyeska Pipeline. Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 7 3. Alternative Project Arrangements 3.1 General The level of conservatism varies in the preparation of the HDR, COE and the current preliminary permit design alternatives and associated cost estimates. Accordingly, based on the observations from the field reconnaissance and our review of these designs, we have prepared modified versions of each for consideration of a possible development. The resulting configuration for each alternative is described below. 3.2 Alternative 1 – Allison Lake Diversion to Solomon Gulch Project, FERC P-2742 (Alt 1) 3.2.1 General Under this scheme, the water from the Allison Lake would be diverted during the low-flow winter months to replenish the storage in Solomon Lake for hydro generation through the Solomon Gulch power plant at times when the hydro plant is under utilized or shut down due to lack of water. Then, when the Solomon Gulch Plant is normally at full output during the spring runoff, Allison Lake would be refilled. The recently collected bathymetry for a Northern Arizona University student’s masters thesis verifies that the previously estimated storage from the COE and HDR studies are valid and justifies the construction of a deep lake tap, such as has been performed for other Alaska hydro installations (e.g, Tyee Lake). From previous investigations, Allison Lake storage extraction was accomplished from a lake tap near the bottom of the lake via a tunnel that would be excavated near the lake within a zone of sound rock. From this tunnel, a more cavernous tunnel with rock traps would be excavated to provide sufficient volume for the final shot rock that extends from the tunnel to the lake. A rock trap is generally an over-excavated pit within the tunnel below the tunnel conveyance grade line and is designed to ensure all loose rock is retained within the rock trap and does not pass into the conveyance stream where loose rock could cause damage to the turbine runner equipment. The two previous studies by the COE and HDR provide slightly different approaches in this lake tap design as follows: The COE lake tap design considered a drawdown of 100 feet in Allison Lake. The HDR design assumed that the lake tap could be extended deeper to permit a 117-foot drawdown. The proposed HDR lake tap was located about 6,000 feet from the Allison Lake outlet, while the COE proposed lake tap was located about 2,500 feet closer. HDR rationalized that the upper lake tap location was preferable to avoid debris deposits. They noted in their review of existing geotechnical data near the lake outlet, that there was considerable debris on the lake bottom. However, from our site reconnaissance and review of bathymetry data, we believe that the COE intake site for a lake tap is preferable. The COE evidently had also performed some bathymetry near its proposed lake tap entrance, because their drawing of the lake cross section matches closely with the Northern Arizona University bathymetry. The other distinctive design differences of the HDR and COE lake tap schemes is with the intake gating and water conveyance lining, which is the lining that retains the internal water pressure within Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 8 the tunnel and minimizes or eliminates leakage from the tunnel and prevents instability of the surrounding rock, especially near the outlet portal where the rock cover is minimal. The COE design is more conservative than for the HDR design, but both designs fall within good engineering practice. They are briefly described as follows: The COE design included an intake gate shaft with an access tunnel to the intake gate hoist equipment contained within an underground vault. The gate shaft included two hydraulic slide gates in sequence leading into a circular concrete lined tunnel with an inside diameter of 6 feet. The tunnel was designed to be a pressure tunnel with some sections left unlined in zones of sound rock. Other sections would be concrete-lined in zones of less competent rock or low rock cover, and a steel-lined section near the outlet portal would be provided for the prevention of hydrojacking. The tunnel grade was set at 0.5% for the majority of its length; a short steeply inclined tunnel set at 45% is shown near the intake to protect the tunnel against negative hydraulic transients. The HDR intake design did not include a gate shaft and access tunnel to the gate operator. Instead, two 42-inch-diameter butterfly inlet valves in series were to be located at a Bellmouth intake within the tunnel just downstream of the lake tap. Our design indicates that 24-inch valves would be suitable. From the two inlet valves, a 24-inch diameter steel pipe would be constructed on cradles throughout the entire length of the tunnel to an outlet energy dissipation valve. The HDR tunnel construction grade was set at approximately 5%, which eliminates the requirement for a steeply inclined tunnel section, but also would provide greater difficulty for construction. Rubber-tired vehicles would be required for hauling out excavation material (“muck”) rather than rail mucking cars. A potential drawback of this design is the lack of good access to the butterfly inlet valves. Access would occur at the downstream portal and would require a 2-mile hike up the tunnel by maintenance personnel to the valves. The primary maintenance requirement is replacement of the seal to one of the valves with the other valve (the upstream of the two) providing the shutoff to allow maintenance. 3.2.2 Lake Tap The less costly HDR scheme was adopted for Alt 1 as well as for Alt 2 to be discussed later. From our site trip, our field observations showed a prominent rock outcrop at the location of the COE site that we believe provided the most promise of a suitable intake location. Following the review of the bathymetry, we also believe that the depth of the lake tap selected by COE is also appropriate, which is located above the lake bottom (approximately El. 1180 ft). The lake bottom along the rim of the lake on the north shore is likely characterized with colluvial material from rock debris slides. We would expect a possibility of some removal of this rocky/gravelly debris from a barge in the vicinity of the lake tap prior to the excavation of the lake tap. The barge components could be flown to the lake if an access road were not constructed to the lake tap and assembled on the shore of the lake. Backhoe equipment would be used to remove the rocky debris up to a certain limiting depth. The balance of debris, would then be removed with draglines to remove the majority of material from where the lake tap is to be located. Neither the COE nor HDR accounted for such debris excavation in their cost estimates due to lack of subsurface information to substantiate such a construction requirement. The lake tap to be constructed under this alternative is assumed to include two large rock trap zones from which to collect the rocky rubble once the final rock mass to the Allison Lake is drilled and Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 9 shot. The concrete plug for the intake structure would include a double door water-tight hatch for containment of the rocky rubble. The intake structure would be protected with ice blocks prior to the final blasting. The basic lake tap scheme can be seen in Figure 3.1. Figure 3.1 Alt 1 and Alt 2 Lake Tap 3.2.3 Tunnel & Pipeline Structures To reduce the cost of construction, the proposed tunnel alignment for Alt 1 would be different from the HDR selected alignment. First we selected a grade of approximately 3%, which is the maximum generally used for rail car usage in the tunneling mucking operation. The rate of tunnel excavation is always dependent on the removal rate of excavated rock and the use of rails provides the most efficient and rapid means of tunneling. The tunnel portal area from where rock is removed generally requires a favorable work staging area. From our review of possible sites, where we could still maintain a maximum tunneling grade of no more than about 3%, we identified a suitable portal location at a low saddle above the Solomon Lake at about El. 940 ft. From this location the length of the tunnel to the preferred lake tap location is about 2,000 feet less than the HDR selected alignment, or about 10,000 feet. Within the tunnel, a 24-inch-diameter steel pipe would be constructed as shown in Figure 3.2 over the entire tunnel length to the energy dissipation structure located just outside of the tunnel near the lake shore. Two 24-inch-diameter butterfly shutoff valves would be installed in series behind the upstream concrete plug. This would permit inspection and repair to the water conveyance pipeline. The second valve is provided as a backup to the main valve and allows for replacement of seals to the principal valve. To facilitate the required maintenance of the butterfly valve seals, the tunnel would be enlarged in this area and require an overhead hoist to permit seal replacement. A control cabinet for the valve operation would be located to one side of the valves. –El 1367.0 Max Pool –El 1267.0 Min Pool El 1250.0 –Lake Tap Rock TrapsConcrete Plug Control Valves Air Vent Rockslide Deflector Active Storage = 1367 – 1267 = 100’ –El 1367.0 Max Pool –El 1267.0 Min Pool El 1250.0 –Lake Tap Rock TrapsConcrete Plug Control Valves Air Vent Rockslide Deflector Active Storage = 1367 – 1267 = 100’ Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 10 Figure 3.2 Alt 1 Diversion Tunnel and Pipeline 3.2.4 Energy Dissipater Unless a hydro plant is constructed to recover the energy between Allison Lake and Solomon Lake (1367 – 685 = 682 feet), an energy dissipating, control valve is needed for releasing the diverted water into Solomon Lake. The HDR report assumed that a valve house would be constructed just above Normal Maximum pool El. 685 ft and would contain Bailey Polyjet dissipating valves or equivalent. In this scheme, the dissipated energy would be released into a wet well, with water overflowing a weir and running down the reservoir side embankment in a 60-inch-diameter outlet pipe to below the Minimum Solomon Gulch Reservoir El. 616.6 ft. With the outlet tunnel portal of Alt 1 located well above Solomon Lake, our preferred alternative assumed that a fixed-cone valve energy dissipater would be used and directed into an outlet chute that would free-discharge the released flow into Solomon Lake via a man-made falls. The falls would be established by excavating loose and weathered rock in directing the flow down to the reservoir below. 3.2.5 Access Road The access to the tunnel outlet portal would make use of the existing access road to the Solomon Gulch dam site (about El. 680 ft). From there, a new access road would be extended up to the portal area at El. 940 ft. In limiting this new road to a 10% grade, the length would need to be about 2,600 feet. We have assumed that all of the tunneling work would be performed from this portal. The ventilation shaft to be constructed above the valve chamber at the upstream end of the tunnel would be constructed with either helicopter or float plane access to Allison Lake. 3.2.6 Ecological Return Flow Facility Unlike other alternatives where an outlet can be provided at the diversion weir for providing minimum ecological flows in the bypass reach, this will not be possible due to the lake drawdown below the natural lake outlet. The previous HDR study assumed that the minimum water flow requirement would be collected at the Solomon Gulch powerhouse tailrace outlet and pumped back to Allison Creek via the highway to the oil terminal near its outlet to the tidal waters. Because this mixing of water may generally not be preferred, it may be that a return flow conduit, which returns ecological flows back to the Allison Creek channel as high up in the creek basin as possible, should originate from the 24-inch steel pipeline at the tunnel outlet through a high-pressure pipeline. This pipeline would terminate at about Allison Creek elevation 150 feet, which represents the location of an anadromous fish barrier. 8’8’ Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 11 3.3 Alternative 2 – Allison Lake Tap with Powerhouse on Allison Creek (Alt 2) 3.3.1 General Alt 2 is essentially the same design concept as that presented by the COE, but modified to incorporate similar lake tap design as for Alt 1. The COE assumed that two 4-MW Pelton turbine- generators would be housed in the powerhouse. However, we have reduced the installation to a single 4 MW unit. In this study, we have not yet considered a staged design that would allow the incorporation of a second phase 4-MW addition. 3.3.2 Lake Tap The location, the depth of lake drawdown and the inlet design of the proposed lake tap for Alt 2 are the same as described for Alt 1. 3.3.3 Tunnel & Surface Penstock The horizontal alignment of the Alt 2 tunnel is the same alignment as presented for the COE preliminary design . The grade of the tunnel would be about 2% to eliminate the requirement of the steeply-inclined tunnel section near the lake tap as proposed by the COE design scheme. Disposal of rock material from the tunneling operation would generally be performed per the COE recommendation – on the east side of the portal by means of mechanically operated railroad gondola cars. As with Alt 1, a steel pipeline would be installed on concrete cradles within the tunnel. The diameter of the pipeline would be 33-inch-diameter for the proposed 4 MW installation. To allow for a later 4-MW expansion a second inlet with a bulkhead could be constructed within the concrete plug at the tunnel headworks. We have assumed that the low-pressure pipeline within the tunnel could use less costly HDPE pipe throughout the 10,500-foot length of the tunnel, but steel pipe material would be used outside of the tunnel as the penstock extends to the powerhouse structure. At the tunnel outlet portal, a surface penstock would continue down the nose of the ridge on the right side of Allison Creek, then continue to the powerhouse site. The penstock would be entirely above ground and constructed on concrete cradles (or piers) along the rocky nose ridge. The concrete piers would be at 40-foot intervals. At the bottom of the ridge, the penstock would transition to a buried conduit. 3.3.4 Powerhouse The powerhouse site would be near creek El. 150 ft. This site is the same as currently being proposed in a preliminary permit application that is scheduled to expire in March 2008. It was selected because the plant discharge would occur near an anadromous fish barrier and would allow salmon and other anadromous fish to still make use of the stream habitat below the fish barrier. The powerhouse would be sited above Allison Creek such that its service bay is located above the 500-year-return period flood level. As the Pelton unit operates with free-discharge into the atmosphere, it may need to be located above the 100-year-return period flood level to permit operation of the unit. For the base-scheme alternative, the powerhouse would contain a single 4-MW synchronous generator with a 2-nozzle horizontal Pelton turbine unit. The surface powerhouse would include a 15-ton bridge crane and all other equipment required for operation and maintenance of the powerhouse. Remote control of the powerhouse would be from the Solomon Gulch powerhouse. The tailrace flow would be released back into the Allison Creek. Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 12 3.3.5 Access Road While the COE assumed that helicopters would be used to transport equipment, material and personnel to the tunnel portal during construction, we have assumed that a contractor would construct an access road to the tunnel outlet portal despite the difficult terrain. The existing Solomon Gulch access road to its dam would be used and then be extended generally as described for Alt 1 to the saddle location above the west side of the dam. Contractor requirements for access road construction would include reinforcing the existing Bailey Bridge to the dam crest sufficiently to carry the highest loading that the contractor might impose upon the bridge during construction of structures in the upper Allison Creek basin. From the saddle location above Solomon Lake, the access road would then continue at a less than 10% grade in a westerly direction to the tunnel portal outlet. A second road would make use of the existing access road for the Valdez Oil Marine terminal that extends in a southerly direction on the east side of Allison Creek. From this road a 0.4-mile-long road would be constructed to the powerhouse site. As the surface penstock gradient to the powerhouse structure is too steep for access road construction, the construction contractor will likely need to make use of a high-liner to facilitate its construction. Access to the outlet control valves is assumed to occur via the tunnel similar to Alt 1. 3.3.6 Ecological Return Flow Facility Due to the deep lake tap and drawdown, it would not be possible to release ecological flows at the lake outlet. Instead, the ecological flow releases would occur into Allison Creek in the vicinity of the tunnel outlet portal. The penstock would have a diversion tap that would branch out to Allison Creek and deliver about 5% of mean annual discharge (MAD), or whatever flow is eventually negotiated with the fishery resource agencies. 3.4 Alternative 3 – Allison Lake Siphon Intake with Powerhouse on Allison Creek (Alt 3) Alt 3 is similar to one of the alternatives described in the HDR study that makes use of a siphon intake and a low-level rockfill embankment dam in developing 55-feet of lake storage rather than 100-feet of storage of Alt 1 and Alt 2. Because of negative transient pressure concerns, the discharge from the pipeline would occur into a forebay structure downstream at about El. 1300 ft. A forebay is an established small pond from which the penstock originates in conveying water to the power plant for hydroelectric generation. From the forebay, the penstock would cross over to the ridge line of the Alt 2 penstock alignment then descend down to the powerhouse structure, which houses the 4- MW Pelton turbine equipment. The 55-foot-drawdown of the lake is comprised of 20 foot of siphon withdraw, 15-feet of additional lake rise, and 20 feet of trenching below current lake level. 3.4.1 Embankment Dam at Allison Lake The embankment dam would be a rockfill structure and include a spillway at normal maximum pool El. 1379 ft, or approximately 12 feet above the current normal Allison Lake El. 1367 ft, as established in the COE study. The lake outlet is characterized of a deep boulders left during the last glacial retreat. The glacial silt has sealed the lake, which was verified by core samplings made recently by the Northern Arizona University study. Such siltation is characteristic of many alpine lakes in Alaska. Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 13 Construction of a low-level dam, while not ideal, is within industry practice. It simply is not feasible to provide for a bedrock foundation. Instead, the existing moraine outlet becomes a part of the embankment structure. The rockfill embankment is assumed to have a clay core and sandy transition zones between the clay core and rockfill zones. The clay core would connect with the existing silt layer of the lake outlet moraine. Additional testing and analysis is needed to establish whether a gravel cover over the silt lining the moraine is needed to prevent possible washout during the lake drawdown operation cycles. While the upstream slope is assumed to be 1.5H: 1.0V, the downstream slope is assumed to be 3.0H: 1.0V. This flatter slope would incorporate the spillway chute structure, which in the vicinity of the creek bed would be grouted and concrete lined. Additional hydrologic and hydraulic analysis would need to occur in future studies, if it was decided to pursue this alternative for development. 3.4.2 Siphon Intake To establish the maximum possible drawdown of the lake without the use of a tunnel, a deep trench about 24-feet below normal lake El. 1360 ft, would be excavated to the centerline of the proposed dam axis. This trench would then contain the siphon outlet pipe, which would then need to continue to the forebay pool to permit effective use of the siphon, once it has been primed by appropriate equipment. The siphon piping into the lake would need to be flexible piping, probably HDPE and extend about 330 feet out into the lake to a depth of about 1310 feet to permit lake drawdown to El. 1320 ft. Due to the fairly thick silt layer that lies on the lake bottom, the intake to the siphon pipe would include a raised platform with concrete footings to secure the intake to the bottom and prevent the suction of silt into the intake. The siphon equipment would be located inside a deep concrete vault at the downstream end of the clay core. The top of the vault would be at about El .1380 ft and El. 1320 ft at the bottom. A cofferdam into the lake would be needed to help facilitate the construction of the siphon inlet and the completion of the dam where the trench excavation continues at 1335 feet into the lake. The schematic drawing of the intake is shown in Figure 3.3. Figure 3.3 Alt 3 Siphon Intake Facilities Active Storage = 1 3 7 9 – 1 3 2 7 = 5 2 ’ –El 1379.0 New Max Pool El 1367.0 –Existing Max Pool –El 1327.0 Min Pool Existing Ground Buried Pipeline Pump House Submerged Screened Intake Rock Fill Dam Siphon Operation = 20 feet 12’ 20’ Active Storage = 1 3 7 9 – 1 3 2 7 = 5 2 ’ –El 1379.0 New Max Pool El 1367.0 –Existing Max Pool –El 1327.0 Min Pool Existing Ground Buried Pipeline Pump House Submerged Screened Intake Rock Fill Dam Siphon Operation = 20 feet 12’ 20’ Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 14 3.4.3 Forebay Structure The forebay structure for Alt 3 is comprised of a concrete-gravity diversion weir to be constructed at about Allison Creek El. 1300 ft. The diversion weir would be sufficiently high for providing sufficient submergence to the penstock intake structure. The intake structure would have a Bellmouth entrance and would have trashracks for screening out debris. 3.4.4 Penstock The penstock is assumed to be an above ground, 33-inch-diameter, steel pipeline supported on concrete cradles. The penstock follows a westerly alignment to the site of the tunnel portal location of Alt 2, then follows the ridge nose down to the powerhouse site below. 3.4.5 Powerhouse The powerhouse site would be near the creek El. 150 ft, or the same as described for Alt 2. It was selected because the plant discharge would occur near an anadromous fish barrier and would allow salmon and other anadromous fish to still make use of the stream habitat below the fish barrier. The powerhouse would contain a single 4-MW synchronous generator with a 2-nozzle horizontal Pelton turbine unit. The surface powerhouse would include a 15-ton bridge crane and all other equipment required for operation and maintenance of the powerhouse. Remote control of the powerhouse would be from the Solomon Gulch powerhouse. The tailrace flow would be released back into the Allison Creek. 3.4.6 Access Road While the COE assumed that helicopters would be used to transport equipment, material and personnel to the tunnel portal during construction, we have assumed that a contractor would construct an access road to the proposed forebay dam and to the Allison Lake outlet dam despite the difficult terrain. The existing Solomon Gulch access road to its dam would be used and then be extended generally as described for Alt 1 to the saddle location above the west side of the dam. The road would then continue at a less than 10% grade in a westerly direction to the tunnel portal outlet. A second road would make use of the existing access road for the Valdez Oil Marine terminal that extends in a southerly direction on the east side of Allison Creek. From this road a 0.4-mile-long road would be constructed to the powerhouse site. As the surface penstock gradient from the forebay dam to the powerhouse structure is too steep for access road construction, the construction contractor will likely need to make use of a high-liner to facilitate its construction. 3.4.7 Ecological Return Flow Facility Due to the deep lake tap and drawdown of the siphon option, it would not be possible to release ecological flows at the lake outlet. Instead, the ecological flow releases would occur at the forebay dam on Allison Creek. We have assumed that ecological flow releases would be equivalent to about 5% of MAD, or whatever flow is eventually negotiated with the fishery resource agencies. Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 15 4. Power Studies AUTOVista was used to evaluate the generation benefits of various upgrade configurations under consideration for the Project. AUTOVista is one of the several components of a decision support system, Vista, which was developed by Hatch Acres for use by system dispatchers and engineering operations staff, to assist them in short- and long-term scheduling to achieve maximum value for the generation system. In this case, the AUTOVista component was used as an analysis tool to evaluate the economic value of alternative project configurations and methods of operation. It considers plant characteristics, water, pricing, and constraints in its calculations. The following is a description of the program and a discussion of the use of AUTOVista on this project. 4.1 AUTOVista Model: System Loads and Resources The AUTOVista model operates on an hourly time step to meet system loads in the most cost effective manner using available system resources as a function of their respective cost of production. For the present study, the system load was based on CVEA data for 2006. The system resources considered for the existing case included the combined diesel plant facilities in Valdez and Glennallen, the combined cycle unit as operated under the contract with Petro Star, and the existing hydropower facilities at the Solomon Gulch Project. The proposed development included the additions as discussed in Section 2 above as well as retirement of the existing thermal generation resources to the extent possible in each respective case under consideration. 4.2 AUTOVista Model: Allison Lake Hydropower Development The AUTOVista model for the Project includes the drainage basins for both the existing Solomon Gulch Hydroelectric Project and Allison Lake. It is comprised of a series of arcs and nodes with each element having its set of characteristics. These basic elements and typical data associated with each are summarized in Table 4.1. Table 4.1 AUTO Vista Model Elements Element Typical Characteristics Arcs Inflow Hourly inflow at discrete points within drainage basin Spillway Spillway rating curves / discharge requirements Open Channel (Streams) Minimum flows / ramping rates Closed Conduits (Penstocks) Head loss coefficients Nodes Reservoirs Area-capacity data / elevation & discharge constraints Powerhouse Units Efficiency data / maximum & minimum flows The graphical model for the existing system Alt 1, Alt 2 and Alt 3 as expressed in these terms is shown below in Figures 4.1, 4.2 and 4.3. Major features of the AUTOVista model are briefly described below. Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 16 Figure 4.1 AUTO Vista Model Elements: Existing Project Figure 4.2 AUTO Vista Model Elements: Alt 1 SLGR (Solomon Gulch Reservoir) SLGQ (Solomon Gulch Inflow) SLGP (Solomon Gulch Power) SLGT (Solomon Gulch TWL) S_SINK (Source_Sink) ALSQ (Allison Lake Inflow) A_SINK (Source_Sink) SINS (Solomon Instream Flow) SLGS (Solomon Gulch Spill) ALSS (Allison Lake Spill) SLGINS_RJ (Solomon Gulch INS Junc) SLGS_RJ (Solomon Gulch SPWY Junction) ALSSPWY_RJ (Allison SPWY TWL) ALSR (Allison Lake) SLGR (Solomon Gulch Reservoir) SLGQ (Solomon Gulch Inflow) SLGP (Solomon Gulch Power) SLGT (Solomon Gulch TWL) S_SINK (Source_Sink) ALSQ (Allison Lake Inflow) A_SINK (Source_Sink) SINS (Solomon Instream Flow) SLGS (Solomon Gulch Spill) ALSS (Allison Lake Spill) SLGINS_RJ (Solomon Gulch INS Junc) SLGS_RJ (Solomon Gulch SPWY Junction) ALSSPWY_RJ (Allison SPWY TWL) ALSR (Allison Lake) SLGR (Solomon Gulch Reservoir) SLGQ (Solomon Gulch Inflow) SLGP (Solomon Gulch Power) SLGT (Solomon Gulch TWL) S_SINK (Source_Sink) ALLQ (Allison Reservoir Inflow) S_SINK (Source_Sink) SINS (Solomon Instream Flow) SLGS (Solomon Gulch Spill) ALLS (Allison Reservoir Spill) SLGINS_RJ (Solomon Gulch INS Junc) SLGS_RJ (Solomon Gulch SPWY Junction)ALLS_RJ (Allison SPWY Junc) ALLR (Allison Reservoir) ATPS (Allison Lake Tap) SLGR (Solomon Gulch Reservoir) SLGQ (Solomon Gulch Inflow) SLGP (Solomon Gulch Power) SLGT (Solomon Gulch TWL) S_SINK (Source_Sink) ALLQ (Allison Reservoir Inflow) S_SINK (Source_Sink) SINS (Solomon Instream Flow) SLGS (Solomon Gulch Spill) ALLS (Allison Reservoir Spill) SLGINS_RJ (Solomon Gulch INS Junc) SLGS_RJ (Solomon Gulch SPWY Junction)ALLS_RJ (Allison SPWY Junc) ALLR (Allison Reservoir) ATPS (Allison Lake Tap) Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 17 Figure 4.3 AUTO Vista Model Elements: Alt 2 and Alt 3 4.3 Hydrology The hydrology used for the prefeasibility is based on the work done by the COE in 1982 as part of their evaluation of the potential project configurations for maximizing the Allison Lake resource. The correlations developed from that study results in a 39-year period of average daily flows from 1950 through 1989. The annual inflow for each of the 39 years is shown on Figure 4.4. Figure 4.4 Allison Lake Annual Inflow, 1951 - 1989 ALSR (Allison Lake) ALSQ (Allison Lake Inflow) A_SINK (Source_Sink) ALSS (Allison Lake Spill) ALSP (Allison Lake Power) ALST (Allison Lake TWL) SLGR (Solomon Gulch Reservoir) SLGQ (Solomon Gulch Inflow) SLGP (Solomon Gulch Power) SLGT (Solomon Gulch TWL) S_SINK (Source_Sink) SINS (Solomon Instream Flow) SLGS (Solomon Gulch Spill) SLGINS_RJ (Solomon Gulch INS Junc) ALSSPWY_RJ (Allison SPWY TWL) ALSR (Allison Lake) ALSQ (Allison Lake Inflow) A_SINK (Source_Sink) ALSS (Allison Lake Spill) ALSP (Allison Lake Power) ALST (Allison Lake TWL) SLGR (Solomon Gulch Reservoir) SLGQ (Solomon Gulch Inflow) SLGP (Solomon Gulch Power) SLGT (Solomon Gulch TWL) S_SINK (Source_Sink) SINS (Solomon Instream Flow) SLGS (Solomon Gulch Spill) SLGINS_RJ (Solomon Gulch INS Junc) ALSSPWY_RJ (Allison SPWY TWL) 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 1950 1955 1960 1965 1970 1975 1980 1985 1990 Year Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 18 Figure 4.5 Allison Lake Reservoir Storage A statistical analysis of this period of record was performed to establish a representative smaller group of 7 years for use within the present AUTOVista. The set of 7 years was chosen on the basis of balancing the low to dry conditions of annual inflow to the two basins. The specific years chosen are indicated by the large red dots in Figure 4.4 and the associated representative inflow conditions are summarized in Table 4.2. Table 4.2 AUTO Vista Hydrologic Years 4.4 Reservoir Characteristics The minimum and maximum reservoir elevations and storage characteristics for the Solomon Gulch Reservoir were taken from the existing information for the project as included in the Supplemental Technical Information document as prepared in support of the FERC Part 12 Safety Inspection process for the project. In the case of Allison Lake, stage relationships were taken from the previously referenced COE and HDR studies as appropriate for Alt 1, Alt 2 and Alt 3. The available storage relationships, however, were found through a recent study as performed by the Northern Arizona University as part of a research of the receding of glaciers. The image taken from the web site that includes a description and photographs of the research program and the resulting reservoir storage relationships are shown on Figure 4.5. Total Inflow Year Percentile A cre-Feet 1969 10% 28,900 1984 25% 30,800 1954 25% 30,900 1961 50% 33,200 1957 75% 36,100 1977 75% 37,900 1989 90% 42,800 Average 34,400 1,100 1,150 1,200 1,250 1,300 1,350 1,400 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 Storage (Acre-Ft) Alternative 3 Storage =12,100 Ac-Ft Alternatives 1 & 2 Storage = 19,500 Ac-Ft El. 1267 El. 1367El. 1379 El. 1327 1,100 1,150 1,200 1,250 1,300 1,350 1,400 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 Storage (Acre-Ft) 1,100 1,150 1,200 1,250 1,300 1,350 1,400 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 Storage (Acre-Ft) Alternative 3 Storage =12,100 Ac-Ft Alternatives 1 & 2 Storage = 19,500 Ac-Ft El. 1267 El. 1367El. 1379 El. 1327 Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 19 4.5 Hydro Equipment Characteristics The performance curves for the Solomon Gulch Powerhouse have been included as provided by the CVEA. The new units at the proposed Allison Lake Powerhouse for Alt 2 and Alt 3 are based on Hatch Acres in-house generic data for Pelton units. A plot of the characteristics used in this analysis is shown in Figure 4.6. Figure 4.6 Allison Powerhouse Unit Characteristics All elements of the conduit system components for each alternative have been assumed to perform in accordance with published engineering data. 4.6 AUTOVista Results Representative plots of the annual operation of the Solomon Lake and Allison Lake Reservoirs are included in Appendix B. The two primary observations from these plots for Alt 1 are that this alternative attempts to conserve the storage in the Solomon Gulch Reservoir as long as possible and that the Solomon Gulch Powerhouse is slightly undersized. In the case of Alt 2 and Alt 3, the plots suggest a parallel operation of the two basins and demonstrate a reasonable balance between reservoir storage and powerhouse capacity. In addition, stacked bar charts indicating the most efficient dispatch of system resources as required to meet the system load are included in Appendix C for the existing condition and Alt 2. The first charts compare the existing condition and Alt 2 for the 1961 water year, which is the 50% year as indicated in Table 4.2. Also included for comparative purposes are the charts for 1954 and 1977 water years which represent 25% and 75% water years respectively. Finally, a chart is included that expands the scale to show a typical weekly dispatch from 1961. The annual generation for each of the 7 years included in the analysis for the existing and Alt 1, Alt 2 and Alt 3 cases are shown in Tables 4.3, 4.4, 4.5 and 4.6 below. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 10 20 30 40 50 60Discharge (cfs)Efficiency (%)0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Power (MW)Efficiency Power 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 10 20 30 40 50 60Discharge (cfs)Efficiency (%)0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Power (MW)Efficiency Power Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 20 Table 4.3 Annual Generation – Existing Condition Table 4.4 Annual Generation – Alt 1 Table 4.5 Annual Generation – Alt 2 Year SG 1 SG 2 Allison Diesel Cogen Total 1969 32,500 19,700 NA 11,200 22,900 86,400 1984 34,100 22,000 NA 7,500 22,800 86,400 1954 31,400 22,700 NA 9,300 23,000 86,400 1961 34,800 23,500 NA 6,800 21,300 86,400 1957 35,200 24,800 NA 6,200 20,200 86,400 1977 36,500 25,300 NA 3,400 21,100 86,400 1989 35,200 26,700 NA 4,800 19,700 86,400 Average 34,200 23,500 NA 7,000 21,600 86,400 Generation (MW h) Year SG 1 SG 2 Allison Diesel Cogen Total 1969 41,900 34,800 NA 1,900 7,800 86,400 1984 42,200 36,500 NA 1,600 6,100 86,400 1954 41,600 33,600 NA 200 11,000 86,400 1961 42,000 36,700 NA 300 7,400 86,400 1957 42,000 36,500 NA 300 7,600 86,400 1977 42,400 38,300 NA 100 5,600 86,400 1989 42,300 37,400 NA 200 6,600 86,400 Average 42,100 36,300 NA 700 7,400 86,400 Generation (MWh) Year SG 1 SG 2 Allison Diesel Cogen Total 1969 37,400 19,000 26,600 400 2,900 86,400 1984 37,200 20,500 25,400 300 3,000 86,400 1954 35,700 20,600 23,500 600 6,000 86,400 1961 37,500 21,800 23,500 400 3,200 86,400 1957 37,500 20,700 23,300 700 4,100 86,400 1977 38,900 22,600 23,200 400 1,300 86,400 1989 37,700 21,100 23,700 900 3,000 86,400 Average 37,400 20,900 24,200 500 3,400 86,400 Generation (MW h) Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 21 Table 4.6 Annual Generation – Alt 3 The annual general benefits from the AUTOVista Analyses can then be summarized as shown in Table 4.7 in terms of the incremental hydropower generation and associated reduction on thermal power as required to satisfy the system load for each of the three alternatives under consideration. Please note that the minor differences between the hydro and thermal generation values for each alternative are due to rounding within the AUTOVista modeling. Table 4.7 Annual Generation Benefits Year SG 1 SG 2 Allison Diesel Cogen Total 1969 35,700 17,400 26,000 300 7,100 86,400 1984 36,200 17,100 26,500 300 6,300 86,400 1954 33,800 16,200 24,700 600 11,000 86,400 1961 35,800 15,500 27,400 300 7,400 86,400 1957 35,500 16,400 26,700 300 7,500 86,400 1977 36,800 15,100 29,100 500 5,000 86,400 1989 35,900 15,300 28,300 300 6,700 86,400 Average 35,700 16,100 27,000 400 7,300 86,400 Generation (MW h) Existing Alternative 1 Alternative 2 Alternative 3 Hydro 57,700 78,400 82,500 78,800 Fossil 28,600 8,100 3,900 7,700 Total 86,300 86,500 86,400 86,500 Benefit NA 20,500 24,700 20,900 Generation (MWh) Copper Valley Electric Association, Inc.–Allison Lake Hydroelectric Project Pre Feasibility Study Hatch Acres Corporation Pages 22 27 5. Project Construction Cost and Schedule Section five has been removed from this report. As of September 2008, no preferred alternative has yet been identified for the three alternatives under review. The report contained the following range of information *Total capital required $27-$45 million First year cost of power ($/kWh) $.138-$.181 Energy output (MWH’s) 20,500-24,700 Under the current plan of work it is anticipated a preferred alternative will be identified following the 2008 field study season. Following that decision, a refined economic analysis and final feasibility will be determined. The pre-feasibility study concluded that any of the three proposed alternatives would produce energy at a cost lower than the incremental cost of a diesel kWh which, as of September 2008, is $.26 per kWh. *Assumes 100% commercial financing at an interest rate of 7% Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 28 6. Environmental and Regulatory Considerations Three potential development options have been identified and discussed in the engineering and economic analyses of developing the power potential at Allison Lake performed for Copper Valley Electric Association, Inc. (CVEA): • Allison Lake Tap Diversion to Solomon Gulch Lake that would enhance generation at the existing Solomon Gulch Project, FERC No. P-2742 (Alt 1) • Allison Lake Tap Hydro Project, a stand-alone project with a new powerhouse at tidewater (Alt 2) • Allison Lake Siphon Hydro Project, a stand-along project with a new powerhouse at tidewater (Alt 3) This section of the report to CVEA includes a preliminary identification of regulatory & environmental issues and a proposed work plan to clarify these issues and provide recommendations for further analysis under the proposed Preliminary Permit to study options and develop an Application for License. At this time, we are evaluating the issues and required studies that would support an application to the Federal Energy Regulatory Commission (FERC). We are also monitoring development of a State Hydro Licensing Program currently under consideration by the Regulatory Commission of Alaska (RCA) that would, if approved by the RCA and FERC, transfer licensing of projects of 5 MW or less from federal jurisdiction to the State of Alaska. Because the study requirements under either FERC or State jurisdiction are essentially equal, the proposed work plan would serve either regulatory option. 6.1 Regulatory Requirements Associated with All Alternatives The FERC hydropower licensing process requires applicants to identify all interested resource agencies, Tribes, and other interested persons and organizations and provide opportunities for participation by all participants throughout the pre-filing preparation of the application and the post- filing activities during the FERC staff processing of the application. The proposed State process would include similar requirements. Each of the three alternatives considered would require preparation of applications to the FERC. The general timeframe for preparing the application and the FERC staff processing would be similar: Consultations with resource agencies and other participants; identification of necessary field and office studies to support an application to the FERC; performance of field and office studies and report preparation; and preparation of the application document would require 2 to 3 years. FERC staff review of the filed application and preparation of a recommendation to the Commission regarding issuance of a license, or in the case of Alt 1 an application for amendment to the existing license: potential requests for additional information; consultation with the state and federal resource agencies as required under the Federal Power Act (FPA) and the FERC regulations; preparation of the FERC documents required under the National Environmental Policy Act (NEPA) and related noticing and comment periods; and preparation of the Order Issuing License or Order Approving License Amendment would require 19 months to 2 years. Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 29 Following issuance of any Commission Order, there is opportunity for any participant to request rehearing of the Order – time required for this would depend on issues raised by the participants. Once any requests for rehearing are addressed, CVEA would notify the FERC that it accepts the license as issued. Regulatory requirements of the above described licensing process include: • Request by CVEA to FERC to use one of three options for the FERC licensing process – the default is the Integrated Licensing Process that imposes strict timeframes for all activities; the Alternative Licensing Process, a collaborative process, that allows greater flexibility, but includes some FERC-required deadlines; and the Traditional Licensing Process that exposes applicants to additional exposure to late-requested resource agency requirements. • Consultation process as required by the FERC regulations, including negotiations with resource agencies, et. al., regarding required studies program. Consultation with Alyeska Pipeline Service Company regarding Alyeska’s existing water rights at Allison Creek (#61345 for 108,000 gpd – priority date – 6/11/73 and #11813 for 95.21 AF/yr – priority date 3/16/88). • Resource agency recommended and mandatory measures under their separate authorities that shape the construction and operation of FERC-licensed projects – includes fisheries, wildlife, and historic/cultural resources. • Requests for “protection, mitigation, and enhancement” measures to address project-related effects on natural and cultural resources. 6.2 Alt 1 – Allison Lake Tap Diversion to Solomon Gulch Project, FERC P-2742 The regulatory issues for Alt 1 differ significantly from either stand-alone project option in that an Amendment to the existing license for the Solomon Gulch Project would be required. Presently the Solomon Gulch Project is licensed to the Four Dam Pool Power Agency (FDPPA). Ongoing negotiations related to the divestiture of the four projects with the members of the FDPPA may result in a transfer of this license to CVEA. This transfer is anticipated to be complete by the time an amendment to license would be filed. CVEA would need to receive approval of the FDPPA if CVEA determines to pursue Alt 1. Implementation of Alt 1 would require modifications to the existing Solomon Gulch Project and require amendment to that license. Section 6 of the Federal Power Act states, in part, that “Licenses…may be altered…only upon mutual agreement between the licensee and the Commission after thirty days public notice.” While not subject to a ruling by the FERC, CVEA would need to reach agreement regarding payment for the additional generation at Solomon Gulch that would occur with the diversion of water from Allison Lake to Solomon Gulch Reservoir and conveyance through pipelines to the generation units at Solomon Gulch. Presently generation at Solomon Gulch is addressed in an existing Long Term Power Sales Agreement.2 CVEA is a Party to this Agreement and the Solomon Gulch Project is included in the “Initial Project” covered by this agreement. Section 1(f) states that “Electric Power 2 LONG-TERM POWER SALES AGREEMENT, FOUR DAM POOL – INITIAL PROJECT OF THE ALASKA POWER AUTHORITY, 11-12-85. Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 30 sold pursuant to this Agreement is Power from the Initial Project as defined in this Agreement. The Parties recognize that additional physical facilities may be constructed in the future and considered for addition to the Initial Project, but the Parties agree that facilities not included in the Initial Project as defined in this Agreement may not be added to the Initial Project for purposes of this Agreement except by subsequent agreement of the Parties.” The license to operate Solomon Gulch was issued to CVEA in 1978; the license was transferred to the State of Alaska in 1982 as part of the Energy Project for Alaska; and in January 2002 the license was transferred to the FDPPA. CVEA operates the Solomon Gulch Project through a contract with the FDPPA. Regulatory and environmental issues include: • Potential impacts to the Valdez Fisheries Development Association (VFDA) hatchery operations. In 1991 the Alaska Energy Authority (AEA), CVEA, and VFDA signed an agreement regarding the use of water resources and maintenance of instream flows in Solomon Gulch Creek (1991 Agreement). The 1991 Agreement recognizes that VFDA needs predictable and reliable water year-round for hatchery operations. Issues that may arise with an Amendment to transfer water from Allison Lake to Solomon Lake include: -Potential impacts associated with Allison Lake water mixing with Solomon Lake on hatchery operations – water chemistry and potential pathogens and change in the scent of release and potential confusion to returning hatchery fish. -Renegotiation of the 1991 Agreement, including the current required 2 cfs instream flow release. The VFDA is on record as requesting an increased release of 12 cfs (1-30-1996 Motion to Intervene). VFDA may also request revision to the “energy water” payment clause. -Potential mitigation requests by VFDA to improve its own piping within the hatchery and other potential improvements. • Potential requests by the Alaska Department of Fish and Game (ADF&G), the US Fish and Wildlife Service (USFWS), and the National Marine Fisheries Service (NMFS) for modifications to the existing license articles that address fisheries concerns, including the 2 cfs minimum flow release. The Amendment would constitute a material change in operations at Solomon Gulch and these agencies could request additional Protection, Mitigation, and Enhancement (PM&E) measures given the significant changes in their respective authorities from those in place at the original license issuance. ADF&G now can request PM&E measures under Section 10(j) of the Federal Power Act, and the USFWS and NMFS now enjoy mandatory conditioning authority. • Potential requests by ADF&G, USFWS, and NMFS for an instream flow release from Allison Lake to compensate for the cross-basin transfer of flow currently available to Allison Creek. • The Amendment would re-open the existing Solomon Gulch License and all aspects of project operation would be reviewed and could include additional requirements for recreation enhancements. • Literature search and on-the-ground survey for potential project-related effects on any historic, cultural, and archaeological resources eligible for listing on the National Register. Correspondence from the SHPO on March 15, 2006 identified historic resources in the Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 31 immediate vicinity of Solomon Lake which “may have the potential to be adversely affected by activities related to this [Allison Lake] project.” 6.3 Alt 2 – Allison Lake Tap Hydro Project The regulatory issues for Alt 2 relate to a stand-alone project that would be licensed by either the FERC or the State of Alaska and would not affect the existing Solomon Gulch license discussed above at Alt 1. The studies program would be developed in consultation with the resource agencies and other interested participants. Regulatory and environmental issues include: • The proposed 90-foot drawdown of Allison Lake – potential project-related effects on visual and aesthetic resources at Allison Lake and reduced flow in the creek; and recreational access to and use of the area, including Allison Creek downstream of the lake tap. • Potential need to release an instream flow between the lake tap and the powerhouse. FERC and the resource agencies are currently requiring that an instream flow release be made to any stream that would be dewatered due to hydro operations. The release from the lake tap/tunnel scheme would need to be addressed – could require pumping operations to ensure a minimum flow. • Existing and potential geological and soil hazards in the project area – potential landslides, avalanche chutes, and seismic areas. • Use of the project area by mountain goats and potential project-related effects, in particular spring kidding and rearing. • Bird study to determine whether there are any project-related effects on birds protected under the Migratory Bird Treaty Act. • Habitat surveys for terrestrial and aquatic species in the project area. • Restoration of vegetation along the tunnel right-of-way. • Powerhouse operations and potential effects on fisheries, including effects of temperature changes on spawning, rearing, and egg incubation, and emergence timing. • Literature search and on-the-ground survey for potential project-related effects on any historic, cultural, and archaeological resources eligible for listing on the National Register. 6.4 Alt 3 – Allison Lake Siphon Project The regulatory issues for Alt 3 relate to a stand-alone project that would be licensed by either the FERC or the State of Alaska and would not affect the existing Solomon Gulch license discussed above at Alt 1. The studies program would be developed in consultation with the resource agencies and other interested participants. Regulatory and environmental issues include: • The proposed 50-foot drawdown of Allison Lake – potential project-related effects on visual and aesthetic resources at Allison Lake and reduced flow in the creek; and recreational access to Allison Lake. Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 32 • Existing and potential geological and soil hazards in the project area – potential landslides, avalanche chutes, and seismic areas. • The proposed surface pipeline/penstock from Allison Lake to the powerhouse at tidewater – potential project-related effects on wildlife migration and recreational access along the pipeline corridor. • Potential need to release an instream flow between the low dam at the outlet and the powerhouse. FERC and the resource agencies are currently requiring that an instream flow release be made to any stream that would be dewatered due to hydro operations. • Use of the project area by mountain goats and potential project-related effects, in particular spring kidding and rearing. • Bird study to determine whether there are any project-related effects on birds protected under the Migratory Bird Treaty Act. • Habitat surveys for terrestrial and aquatic species in the project area. • Powerhouse operations and potential effects on fisheries, including effects of temperature changes on spawning, rearing, and egg incubation, and emergence timing. • Literature search and on-the-ground survey for potential project-related effects on any historic, cultural, and archaeological resources eligible for listing on the National Register. Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 33 7. Conclusions and Recommendations The primary activities of the current pre-feasibility study have included the following: a reconnaissance review of the project site, identification of three potential physical means to develop the hydropower potential of Allison Lake, an evaluation of the power production capability of the selected arrangements, cost estimates of each arrangement leading to the cost of power there from and an evaluation of the environmental and regulatory issues involved with each arrangement. The three potential configurations considered include: A lake tap and tunnel diversion of Allison Lake inflow to the existing Solomon Gulch Reservoir. A lake tap and tunnel / penstock connecting to a new powerhouse on Allison Creek. A low dam and siphon intake with an above ground penstock connecting to a new powerhouse on Allison Creek. The conclusions and recommendation resulting from the study of these alternatives are included below. 7.1 Conclusions The conclusion gained from the studies performed as a part of the present evaluation include: The three project configurations studied all have the appearance of being technically feasible. Arguments can be made on behalf of any of the three as being the best in this regard, the truth is yet to be determined through detailed on the ground geotechnical investigations. The three project configurations would all appear to deliver power to the CVEA at a cost less than the current cost of fossil generation on the basis of reasonably conservative assumptions for construction cost estimating and financing arrangements. All three configurations would benefit greatly from grant monies from the state or more attractive financing arrangements as provided for under the recently enacted Federal Energy Act. Uncertainties exist in the area of environmental and regulatory process for each of the three arrangements as follows: -Alt 1 involves an amendment to the existing license for the Solomon Gulch Project. The Amendment would be a Capacity Amendment and would potentially open the terms of the existing license. Issues of concern include: o Concerns raised by the VFDA regarding interest in increasing the current minimum flow release from 2 cfs to 12 cfs and potential impacts on the hatchery from trans-basin delivery of water from Allison Lake affecting hatchery operations; Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 34 o potential for the resource agencies to request an increase in the minimum flow release and/or to require better management of the release given the history of interruptions in delivery of the current 2 cfs release requirement; and, o potential for interested participants to request increased recreational access and related improvements to the trail system. The VFDA raised issues related to the minimum flow release in the previous license transfer proceedings. If Alt 1 is selected, CVEA should consider how to address these concerns given the proposed divestiture of the FDPPA and transfer of the Solomon Gulch license to CVEA. -Alt 2 and Alt 3 would introduce a drawdown in the current lake level at Allison Lake and reduce the current flow from Allison Lake to Allison Creek and tidewater. -Alt 2, the lake tap, would have the most significant drawdown of the Lake and the release to Allison Creek may require pumping from the lake to a release to the Creek. -Alt 3, the siphon intake arrangement would have the most visual and terrestrial impact to the area owing to the surface conduit arrangement. The general pros and cons of the three alternatives are summarized in Tables 7.1, 7.2 and 7.3 respectively. Table 7.1 Alt 1 Pros and Cons Alt 1 – Pros Alt 1 – Cons •Low visual and terrestrial impact •Requires FDPPA permission to generate at Solomon Gulch Project P-2742 •New generation facilities are not required •Requires re-negotiation of power purchase contract with FDPPA •No access to Allison Lake is required •Amendment Opens existing Solomon Gulch Project – could result in additional requirements •Provides opportunity for Phase 2 development of new powerhouse at banks of Solomon Gulch Reservoir •May require modification to existing 2 cfs minimum flow release •Lowest initial cost of development and incremental unit cost of power •May require re-negotiation of Agreement with Valdez Fisheries Development Association •Low exposure to elements •Involves cross-basin transfer of water – change in chemistry and pathogens Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 35 Alt 1 – Pros Alt 1 – Cons •Proposed100-foot drawdown – visual effects •Requires release from Allison Lake down Allison Creek – additional facilities Table 7.2 Alt 2 Pros and Cons Alt 2 – Pros Alt 2 – Cons •No impact to current Solomon Gulch FERC License or existing FDPPA Power Sales Agreement •Higher unit cost of power than Alts 1 & 3 •Higher amount of additional energy than Alts 1 & 3 •Proposed 100-foot drawdown – visual effects •Minimal exposure to elements •Requires pumping from tunnel to release minimum flow to upper reaches of Allison Creek •No access required to Allison Lake •Tunnel reduces barrier to wildlife movement and disturbance to mountain goats during kidding & rearing •Tunnel reduces overall effects on terrestrial resources and visual effects Table 7.3 Alt 3 Pros and Cons Alt 3 – Pros Alt 3 – Cons •No impact to current Solomon Gulch FERC License or existing FDPPA Power Sales Agreement •Greater above-ground construction and effects on terrestrial and visual resources than Alts 1 & 2 •Lower unit cost of power than Alt 2 •Pipeline may provide barrier to mountain goats and other terrestrial species •Proposed 52-foot drawdown – less visual effects than Alts 1 & 2 •Greater exposure to elements than Alts 1 & 2 Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 36 7.2 Recommendations Based on the conclusions outlined above, CVEA would be well served to undertake the following: • Of three alternatives considered in this study, Alternative 2, the proposed lake tap and tunnel/penstock with a new powerhouse on Allison Creek appears to provide the greater long-term benefit to the CVEA system. However, to preserve any of the three options for further investigation, we recommend that CVEA prepare an application for preliminary permit for Allison Lake including the three alternatives stated in this report. CVEA’s Application for Preliminary Permit should be filed at the earliest date possible following expiration of the permit in effect to Green Power. During the first six-month period of the three-year preliminary permit term, narrow the range of alternatives to focus on the “best fit” to meet CVEA’s future demand for electric power. • Consult with the VFDA, ADF&G, NMFS, USFWS, and the Alaska Department of Natural Resources (ADNR) water resources, land management and State Historic Preservation Officer in preparing its Application for Preliminary Permit. The Application for Preliminary Permit requires a detailed Work Plan be prepared and filed with the Application. These resource agencies and the hatchery will shape the studies program to be conducted under the terms of the Preliminary Permit. • Request approval to use the Alternative Licensing Process (ALP) instead of the required default Integrated Licensing Process (ILP). The ALP allows greater flexibility in scheduling activities and conducting studies. The ILP is better suited to a relicensing where issues are related to continuing project operations. Copper Valley Electric Association, Inc. - Allison Lake Hydroelectric Project Pre-Feasibility Study Hatch Acres Corporation Page 37 8. References 1. HDR Engineering, Inc., Allison Lake Reconnaissance Study, prepared for Alaska Energy Authority, September 1992. 2. US Army Corps of Engineers, Electric Power for Valdez and the Copper River Basin, Interim Feasibility Report and Final Environmental Impact Statement, March 1981. 3. Schiff, Caleb. Thesis: "Late-Holocene temperature of Prince William Sound, Southern Alaska." 2006. Northern Arizona University. <http://oak.ucc.nau.edu/cjs235/AlaskaClimate/allison.html> Photo 1: Allison Lake Drainage – Looking South Photo 2: Allison Lake Drainage – Looking North Photo 3: Allison Lake Outlet – Looking West Photo 4: Allison Lake Outlet Area – Looking South Photo 6: Allison Creek – Existing Stream Gauge Photo 5: Allison Lake Bank – Potential Lake Tap Area Photo 8: Allison Lake Looking South Alt 2 Tunnel Portal Area Photo 7: Solomon Gulch Lake Bench @ East Bank / Alt 1 Tunnel Portal Area Nov Dec Apr MayJan JunMarFeb Sep Oct NovAugJul620610600590580670660650640630690680Elevation (feet)MonthAlt. 1Alt. 3Alt. 2ExistingAppendix B-1 Nov Dec Apr MayJan JunMarFeb Sep Oct NovAugJul620610600590580670660650640630690680Elevation (feet)Month7 –Year Study RecordAppendix B-2 Nov Dec Apr MayJan JunMarFeb Sep Oct NovAugJul620610600590580670660650640630690680Elevation (feet)Month7 –Year Study RecordAppendix B-3 Nov Dec Apr MayJan JunMarFeb Sep Oct NovAugJul620610600590580670660650640630690680Elevation (feet)Month7 –Year Study RecordAppendix B-4 Nov Dec Apr MayJan JunMarFeb Sep Oct NovAugJul620610600590580670660650640630690680Elevation (feet)Month7 –Year Study RecordAppendix B-5 Nov Dec Apr MayJan JunMarFeb Sep Oct NovAugJul1340132013001280126013601380Elevation (feet)Month7 –Year Study RecordAppendix B-6 Nov Dec Apr MayJan JunMarFeb Sep Oct NovAugJul1340132013001280126013601380Elevation (feet)Month7 –Year Study RecordAppendix B-7 Nov Dec Apr MayJan JunMarFeb Sep Oct NovAugJul1340132013001280126013601380Elevation (feet)Month7 –Year Study RecordAppendix B-8 Nov Dec Apr MayJan JunMarFeb Sep Oct NovAugJul2.06.08.010.04.012.014.0MonthGeneration (MW)SG 1SG 2AllisonCogenDieselAppendix C-1 Nov Dec Apr MayJan JunMarFeb Sep Oct NovAugJulMonthGeneration (MW)2.06.08.010.04.012.014.0SG 1SG 2AllisonCogenDieselAppendix C-2 Nov Dec Apr MayJan JunMarFeb Sep Oct NovAugJulMonthGeneration (MW)2.06.08.010.04.012.014.0SG 1SG 2AllisonCogenDieselAppendix C-3 Nov Dec Apr MayJan JunMarFeb Sep Oct NovAugJulMonthGeneration (MW)2.06.08.010.04.012.014.0SG 1SG 2AllisonCogenDieselAppendix C-4 Generation (MW)2.06.08.010.04.012.0Day 1 Day 6Day 5 Day 7Day 4Day 3Day 2SG 1SG 2AllisonCogenDieselAppendix C-5