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HomeMy WebLinkAboutWhitman Lake Hydroelectric Project AEA Factsheet - Aug 2015 - REF Grant 7040044I_ EAk�SKAUTH❑ Hydro project Project Overview Ketchikan, Alaska provides water and power to local hatchery In partnership with the Alaska Energy Authority (AEA), Ketchikan Public Utility (KPU) completed a 4.5 MW hydroelectric project at the existing hatch- ery dam near Ketchikan. The Whitman Lake project is four miles from Ketchikan and generates up to an average of 16,000 MWh. Two penstocks now provide flow to the new powerhouse containing two hydro turbine -generators (Units 1 and 2). Unit 1 generates power that would otherwise be spilled and Unit 2 gen- erates power delivered to the fish hatchery adjacent to the project. The main objectives of this project were to provide Ketchikan with a reliable and reasonably priced source of power, to reduce their reliance on diesel fuel, and to serve as an additional generating resource to the Southeast Alaska Power Agency (SEAPA). The project became operational in October of 2014. Since then, it has generated 2,387 Megawatt hours of electricity and displaced 191,000 gallons of diesel fuel. This displacement has saved the community $809,000 in a period of three months. There is usually some amount of variability when it comes to annual gener- ation, but KPU is confident that numbers will remain high throughout the year. Over its 50-year projected lifespan, the project has a calculated benefit/cost ratio of 1.52, meaning that the project will see a 152 percent return on investment. In 1997, Ketchikan Public Utility initiated studies to determine the feasibility of installing hydro generation at Whitman Lake. In 2004, they applied for a Federal Energy Regulatory Commission (FERC) license to Quick Facts FERC Project Number: P-11841 Total Project Costs: $31,375,000 Funding: Renewable Energy Fund, Local & State Capital Costs Development: $6,000,000 Construction: $25,375,000 Project Specifications Unit 1 Make/Output: Francis 3,700 kW Unit 2 Make/Output: Francis 800 kW Unit 1/2 Static Head: 332 ft/315 ft Unit 1/2 Hydraulic Capacity: 150 cfs/35 cfs Reservoir Storage Volume: 1,400 acre feet Annual Energy Generation: 16,000,000 kWh Diesel Fuel Offset Estimated Annual: 1,140,000 gallons Oct. -Dec. 2014: 191,000 gallons Fuel Savings Estimated Annual: $3,000,000 Oct. -Dec. 2014: $809,000 Benefit/Cost Ratio: 1.52 Powerhouse & dam, Photo courtesy ofAEA. "This project allowed Ketchikan residents to utilize an existing dam for low-cost, realiable, and renewable hydropower development" construct the project. In 2009, FERC issued the project license and construction began in 2013. The project was comprised of a new access road, three new intakes (all intakes included drum screens designed for safe fish exclusion), a new penstock replacing the original steel pipeline and providing flow to the new power- house and hatchery, and a new powerhouse. The pow- erhouse holds a 3,700 kW turbine/generator unit (Unit 1) and an 800 kW turbine generator unit (Unit 2) for a total nominal capacity of 4,500 kW. The project also included a new diversion structure on Achilles Creek and a second penstock connecting water to Unit 2. The Renewable Energy Fund contributed $1,300,000. Other state funding through the Denali Commission provided $8,025,000. Local matching funds contrib- uted $16,900,000 in various loans and community contributions. Renewable Energy Fund money went toward the design and construction of the hydroelec- tric facility, as did the other funding provided. 1. Due to Ketchikan's increasing load growth, it was necessary for KPU to act quickly to progress in the construction and operation of the Whitman Lake proj- ect. It was anticipated that excess energy available from SEAPA would be fully subscribed in 2015. Fortunately, Whitman Lake Hydro was finished in a timely manner so that residents could continue to be supplied with reasonably priced power. 2. There were other challenges in addition to time con- straints; coordinating with and satisfying requirements of numerous agencies and entities took more time and money than anticipated. Redesigning portions of the project became necessary when the engineer's cost estimate proved to be low, and maintaining delivery of water (quantity and temperature) to the existing hatchery during construction was also a challenge. The Ketchikan Public Utility learned to start early to allow for the permitting process and to involve a contractor early to assist in design decisions and cost estimates. 1. One benefit of this project was that the originally es- timated total costs were $26,225,000. At the end of the project, however, expenditures totaled $25,327,772.55. The city was able to save approximately $900,000. This reduced the amount of money the city had to repay later and allowed the direct benefits to come into effect earlier than anticipated. 2. In addition to energy generation, the project pro- vides water to the Whitman Lake Hatchery, which is owned and operated by the Southern Southeast Re- gional Aquaculture Association (SSRAA). The hydro project replaced and improved the water supply system for the SSRAA Hatchery, helping it to fulfill its mis- sion of enhancing salmon fisheries and supporting $46 million dollars in economic output and an estimated 420 jobs in Southeast Alaska. Unit 1 turbine, photo courtesy ofAEA. Project Contact Information Parties Involved: Jennifer Holstrom, project engineer Email: jenniferh@city.ketchikan.ak.us Case Study Author: Zoe Tressel, AEA Website: Akenergyauthority.org Phone: 907-771-3000 Published August, 2015