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HomeMy WebLinkAboutNushagak Area Hydroelectric Project Conceptual Design & Feasibility Study - Oct 2013 - REF Grant 2195419NUSHAGAK ELECTRIC AND TELEPHONE COOPERATIVE DILLINGHAM AREA HYDROELECTRIC PROJECT CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS October 2013   NUSHAGAK ELECTRIC AND TELEPHONE COOPERATIVE DILLINGHAM AREA HYDROELECTRIC PROJECT CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS Mark C. Storm, P.E. AK Professional Engineer CE 8840  i DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS   TABLE OF CONTENTS EXECUTIVE SUMMARY .............................................................................................. 1 INTRODUCTION ........................................................................................................... 1 SUMMARY OF FINDINGS .......................................................................................... 1 BACKGROUND ............................................................................................................. 2 ALTERNATIVES DEVELOPMENT ............................................................................ 2 Alternatives Eliminated from Further Consideration .................................................. 3 GENERATION ALTERNATIVES EVALUATED ....................................................... 3 Grant Lake Project ....................................................................................................... 3 Lake Elva Project ......................................................................................................... 4 TRANSMISSION ALTERNATIVES ............................................................................ 5 Park Boundary Alternative .......................................................................................... 5 Glacial Moraine Alternative ........................................................................................ 6 ESTIMATED ENERGY PRODUCTION AND COSTS ............................................... 6 Installed Capacity and Generation ............................................................................... 6 ECONOMIC ANALYSIS PARAMETERS AND VALUES ......................................... 7 Benefit/Cost Ratios for Project Alternatives ............................................................... 7 Projected Energy Costs of Generation Alternatives .................................................... 8 PREFERRED ALTERNATIVES ................................................................................... 9 Grant Lake ................................................................................................................... 9 Lake Elva ................................................................................................................... 10 PROJECT SUMMARY DATA .................................................................................... 11 INTRODUCTION............................................................................................................. 1 OBJECTIVE .................................................................................................................... 1 PROJECT HISTORY and OTHER INFORMATION.................................................... 1 Study History ............................................................................................................... 1 NETC Study Involvement ........................................................................................... 3 Hydrologic and Environmental Studies ....................................................................... 3 Transmission Alternative Evaluations ......................................................................... 3 WORKSCOPE and METHODS ..................................................................................... 4  ii DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS   TASK 1. REVIEW EXISTING INFORMATION ........................................................ 4 TASK 2. SITE VISITS and EVALUATION ................................................................. 4 TASK 3. CONCEPTUAL DESIGN of ALTERNATIVE CONFIGURATIONS ......... 4 Dam Height and Location Alternatives ....................................................................... 5 Run-of-The-River vs. Storage Alternatives ................................................................. 5 Tunnel vs. Penstock Design Alternatives .................................................................... 5 Air vs. Land or Water Mobilization Alternatives ........................................................ 5 Transmission and Construction Access Road Routing Alternatives ........................... 5 TASK 4. DETERMINE FEASIBILITY BASED on ELECTRICAL GENERATION and ENGINEERING CONSIDERATIONS ................................................................... 5 Hydrologic Data Collection and Analysis ................................................................... 6 Energy Calculations ..................................................................................................... 7 TASK 5. ECONOMIC ANALYSIS ............................................................................... 7 B/C Ratio Calculation .................................................................................................. 8 Cost of Energy to the Consumer................................................................................ 10 Sensitivity Analysis ................................................................................................... 11 RESULTS ........................................................................................................................ 12 TASK 1. REVIEW EXISTING INFORMATION ...................................................... 12 TASK 2. SITE VISIT and EVALUATION ................................................................. 12 TASK 3. CONCEPTUAL DESIGN of ALTERNATIVE CONFIGURATIONS ....... 12 Alternatives Eliminated From Further Consideration ............................................... 12 Generation Alternatives Analyzed ............................................................................. 14 TASK 4. DETERMINE FEASIBILITY BASED on ELECTRICAL GENERATION and ENGINEERING CONSIDERATIONS ................................................................. 24 Operations and Electrical Generation ........................................................................ 24 Hydrologic Data Set Development ............................................................................ 26 Operations/Generation Model Results ....................................................................... 28 TASK 5. ECONOMIC ANALYSIS of ALTERNATIVES ......................................... 38 Construction and Finance Costs ................................................................................ 38 BENEFIT/COST ANALYSIS ...................................................................................... 44 Project Benefits.......................................................................................................... 44  iii DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS   Benefit-Cost Ratios.................................................................................................... 46 Projected Cost of Project Debt Service ..................................................................... 47 Cost of Energy (At 2018 Startup) .............................................................................. 48 Sensitivity Analysis ................................................................................................... 50 ENVIRONMENTAL CONSIDERATIONS................................................................. 53 FISHERIES and AQUATIC RESOURCES ................................................................. 53 Grant Lake Project ..................................................................................................... 53 Lake Elva Project ....................................................................................................... 54 SCENIC/AESTHETIC RESOURCES .......................................................................... 54 WILDLIFE/BOTANICAL ............................................................................................ 54 Wildlife Resources ........................................................................................................ 54 Botanical Resources .................................................................................................. 55 CULTURAL RESOURCES ......................................................................................... 55 RECREATION RESOURCES ..................................................................................... 55 FERC LICENSING and STATE and FEDERAL PERMITTING ................................ 56 LAND USE ................................................................................................................... 56 SUMMARY of ENVIRONMENTAL CONSIDERATIONS....................................... 57 DISCUSSION .................................................................................................................. 57 GENERATION COMPONENTS and PROJECT ECONOMICS ................................ 57 GEOLOGIC and GEOTECHNICAL SURVEYS ......................................................... 59 TRANSMISSION and ACCESS ROUTING ............................................................... 59 ENVIRONMENTAL CONSIDERATIONS................................................................. 59 RECOMMENDATIONS ................................................................................................ 60 REFERENCES ................................................................................................................ 63 REFERENCES ................................................................................................................ 63  iv DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS   APPENDICES APPENDIX I. PROJECT SUMMARY DATA APPENDIX II. TRANSMISSION FEASIBILITY STUDIES, DILLINGHAM AREA HYDROPOWER PROJECT (DAHP) ‐ LAKE ELVA AND GRANT LAKE SITES APPENDIX III. HYDROLOGICAL SYNTHESIS, RESERVOIR ROUTING & ENERGY GENERATION FORMULAE APPENDIX IV. ECONOMIC FORMULAE APPENDIX V. GEOTECHNICAL REPORT APPENDIX VI. CAPITAL COST ESTIMATES APPENDIX VII. MAJOR PERMITS REQUIRED FOR DAHP CONSTRUCTION APPENDIX VIII. MAPS OF AFFECTED INHOLDINGS LIST OF FIGURES Figure ES-1. Project Location Map .......................................................................... ES-11 Figure ES-2. DAHP Alternative Transmission and Access Routes ......................... ES-12 Figure 1. Project Location Map ....................................................................................... 2 Figure 2 Alternatives G-1 & G-2 Project Features and Configuration ......................... 18 Figure 3. Alternatives E-1 & E-2 Project Configuration Map ....................................... 21 Figure 4. DAHP Alternative Transmission and Analysis .............................................. 25 Figure 5. Synthesized Monthly 20th, 50th, Average and 80th Percent Exceedance Flows, Grant Lake Outlet Gaging Station.................................................... 27 Figure 6. Synthesized Monthly 20th, 50th, Average and 80th Percent Exceedance Flows, Lake Elva Outlet Gaging Station. .................................................... 29 Figure 7. Grant Lake Project Alternative G-1 & Alternative G-2 Mean Monthly Reservoir Levels .......................................................................................... 32 Figure 8. Lake Elva Project Alternative E-1 Mean Monthly Reservoir Levels. ......... 33 Figure 9. Lake Elva Alternative E-2 Monthly Reservoir Levels for Wet, Average and Dry Years. .................................................................................................... 33 Figure 10. Mean Monthly Energy Generation and percent of Load Supplied by Grant Lake Project Alternatives G-1 and G-2. ...................................................... 35 Figure 11. Mean Monthly Energy Generation and percent of Load Supplied by Lake Elva Project Alternatives E-1 and E-2. ........................................................ 37  v DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS     LIST OF TABLES Table ES-1. Estimated Installed Capacity, Annual Energy Generation and Annual Diesel Avoidance for Grant Lake and Lake Elva Alternatives ............. ES-6 Table ES-2. B/C Ratios for Grant Lake and Lake Elva Project Alternatives ........... ES-7 Table ES-3. Projected Cost of Energy in $/kWh from NETC Generation Alternatives at 2018 startup. ...................................................................................... ES-8 Table 1. Synthesized Monthly 20th, 50th, Average and 80th Percent Exceedance Flows, Grant Lake Outlet Gaging Station. ................................................................. 27 Table 2. Synthesized Monthly 20th, 50th, Average and 80th Percent Exceedance Flows, Lake Elva Outlet Gaging Station. ................................................................... 29 Table 3. Mean Monthly Reservoir Inflows in cfs for Grant Lake Project Alternatives G-1 and G-2. ................................................................................................... 30 Table 4. Mean Monthly Reservoir Inflows in cfs for Lake Elva Project Alternatives E- 1 and E-2. ........................................................................................................ 31 Table 5. Mean Monthly and Mean Annual Energy Production for Grant Lake Project Alternatives G-1 and G-2 and Current NETC Monthly Demand in kWh. ..... 34 Table 6. Mean Monthly and Mean Annual Energy Production for Lake Elva Project Alternatives E-1 and E-2 and Current NETC Monthly Demand in kWh. ...... 36 Table 7. Annual Energy Production by DAHP Alternatives in kWh for Wet, Dry, Median and Average Years. ............................................................................ 38 Table 8. Estimated Grant Lake Project Alternative Generation Facilities Construction Costs (in $2013). ............................................................................................. 39 Table 9. Estimated Lake Elva Project Alternative Generation Facilities Construction Costs (in $2013). ............................................................................................. 40 Table 10. Estimated Grant Lake Project Alternative Transmission System Pre- Contingency Construction Costs (in $2013). .................................................. 41 Table 11. Estimated Lake Elva Project Alternative Transmission System Pre- Contingency Construction Costs (in $2013). .................................................. 41 Table 12. Total Estimated Capital Costs for Project Alternatives. ................................. 42 Table 13. Annual O&M Costs for Grant Lake Alternative G-1. .................................... 43 Table 14. Annual O&M Costs for Lake Elva and Grant Lake Alternatives. .................. 43 Table 15. Grant Lake Project Annual Diesel Avoidance and Project Benefits at start-up. ......................................................................................................................... 45 Table 16. Lake Elva Project Diesel Avoidance and Annual Project Benefits at 2018 start-up. ........................................................................................................... 46 Table 17. B/C Ratios for Grant Lake and Lake Elva Project Alternatives. .................... 47 Table 18. Long-term Debt Service on Capital for Grant Lake and Lake Elva Project Alternatives. .................................................................................................... 48  vi DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS   Table 19. Estimated Cost of Energy per kWh at 2018 Startup. ...................................... 49 Table 20. Alternatives G-1 & G-2. Sensitivity Analysis of Selected Project Parameters. ......................................................................................................................... 51 Table 21. Alternative E-1 & E-2. Sensitivity Analysis of Selected Project Parameters. 51    ES‐1 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS   EXECUTIVE SUMMARY INTRODUCTION Nushagak Electric and Telephone Cooperative (NETC) holds a Preliminary Permit (PP) from the Federal Energy Regulatory Commission (FERC) to study the feasibility of the Dillingham Area Hydroelectric Project (DAHP, FERC No. 14356). The DAHP, or "Project", consists of the Grant Lake and Lake Elva Hydroelectric Projects, described in more detail in the following report. Both Projects are within the boundaries of Wood- Tikchik State Park (WTSP) which is administered by the Alaska Department of Natural Resources (ADNR) Division of Parks and Outdoor Recreation (DPOR). The Grant Lake Project would be located approximately 52 miles N of Dillingham, Alaska (Figure ES-1). The waters of Grant Lake flow through a smaller outlet lake, referred to as Little Grant Lake, before flowing as Grant River. Grant River flows 7.5 miles before entering Lake Kulik at Stream Mile (SM) 0 of the stream. The Lake Elva Project would be located approximately 45 miles NNW of Dillingham (Figure ES-1). Elva Creek flows from Lake Elva at SM 3.5 before its confluence with Lake Nerka (SM 0). SUMMARY OF FINDINGS Study results indicated that both of the Grant Lake Project Alternatives analyzed would be economically feasible (Benefit/Cost Ratio > 1.0), under the economic conditions analyzed. The Lake Elva Project, however, would not be economically feasible (Benefit/Cost Ratio <1) under any of the base conditions analyzed Sensitivity testing indicated that the Grant Lake Project would remain economically feasible over a broad range of values for input variables such as capital cost, discount rate, economic analysis period and load growth. The Lake Elva Project, using the same sensitivity test, would be economically unfeasible under most values of the input variables tested.  ES‐2 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS   At the currently-accepted NETC load growth forecast, Lake Elva Project energy might be needed after approximately 20 years. This forecast greatly reduces the current need to proceed with licensing for the Lake Elva Project. Results of this analysis, then, rather strongly suggest that FERC licensing proceed for the Grant Lake Project only at this time. This study examined more environmental factors than have earlier studies. Environmental issues such as instream flow requirements and Project consistency with management objectives of WTSP might have significant effects on overall Project feasibility. BACKGROUND Several earlier studies have addressed feasibility of the Lake Elva Project with lesser emphasis on the Grant Lake Project. In 2009, EES Engineering conducted a reconnaissance-level study based on existing data. That report concluded that the Grant Lake Project would be economically feasible while the Lake Elva Project would not. Hydrologic and fisheries data and information that have been obtained recently have allowed the present report to evaluate both Projects under better-defined resource conditions. Continuous streamflow and fisheries data from both Grant River and Elva Creek allowed better inflow estimates on which to base installed capacity and to predict operations in terms of reservoir elevations and downstream releases. Fisheries information supported powerhouse locations at both Projects. ALTERNATIVES DEVELOPMENT In 2012, Civil Science Infrastructure (CSI) was tasked with conducting a new feasibility study incorporating new fisheries, hydrology and topographic information. CSI developed several alternative project configurations (dam heights, positions and materials) and operations (run of the river and storage). In addition, CSI evaluated various construction access alternatives such as access routes (summer, winter and watercraft), materials airlift (helicopter and fixed-wing), power conduit types (penstocks or tunnels) and intake locations.  ES‐3 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS   Alternatives Eliminated from Further Consideration Initial analysis led to elimination of certain alternatives, including: • Aircraft Access, based primarily on expense, but also on travel limitations due to weather and environmental impacts (noise and visual aesthetics); • Run of the River configuration and operations, based on optimal utilization of inflow resources; and • Power Conduit Tunnels, based on their lengthy construction periods, expense, and risks for leakage and schedule delays. • Ice road access for construction of generation facilities, based on shortened construction seasons, increased time of construction and greatly increased risk for delays and cost overruns because of weather. After elimination of these factors, two separate generation alternatives for each Project were developed, characterized by: 1) storage operations; 2) buried penstocks; 3) overland (Grant Lake) or over-water (Lake Elva) construction access (as opposed to use of fixed- wing or helicopter aircraft); and 4) different dam locations, heights, and materials. GENERATION ALTERNATIVES EVALUATED Access for construction of Generation Alternatives for the Grant Lake Project would be via a surface roadway constructed along the Glacial Moraine just inside WTSP. The following Generation Alternatives were carried forward for more detailed analysis: Grant Lake Project Grant Lake, Alternative G-1, Little Grant Lake Rockfill Dam with Powerhouse at SM 3.7 (Figure ES-1) In detail, this alternative would consist of the following primary components: • A 24-foot high by 640-foot long rockfill dam with auxiliary spillway on the left bank located at SM 7.5 of Grant River, just below the outlet of Little Grant Lake;  ES‐4 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS   • A 66-in diameter buried pipe penstock approximately 16,100 feet in total length; and • A 40-ft x 60-ft steel-frame powerhouse at SM 3.7 at El 192 housing a 1.9 megawatt (MW) Francis turbine with associated controls and electro/mechanical equipment. Total net head for this configuration would be 304 feet. Grant Lake Alternative G-2, Concrete Dam at SM 6.5 with Powerhouse at SM 3.7 (See Figure ES-1) The primary difference between this alternative and Alternative G-1 would be the position and structure of the dam, as described below: • A 60-foot high by 120-foot long concrete dam constructed at the top of the canyon at SM 6.7 of Grant River. • A 66-in diameter buried pipe penstock approximately 16,100 feet in total length; and • A 40-ft x 60-ft steel-frame powerhouse at SM 3.7 at El 192 housing a 1.9 megawatt (MW) Francis turbine with associated controls and electro/mechanical equipment. Total net head for this configuration would be 304 feet. Under both alternatives, the project would operate as a storage facility and may suspend operations during periods when reservoir storage is depleted. Such periods would usually occur in March and/or April of certain low-water years. Lake Elva Project Lake Elva Alternative E-1, "High Dam" (or "Downstream Dam") Alternative (Figure ES-1) In detail, this alternative would consist of the following primary components: • An approximately 110 ft-high, 620 ft-long rockfill dam at Stream SM 1.6 on Elva Creek, 1.9 miles downstream from the outlet of Lake Elva (Figure ES-1).  ES‐5 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS   • A48-inch diameter buried penstock, approximately 7,800-ft in length located on the left bank of Elva Creek. The penstock would be located within and along the access road used to construct the dam. The alignment of the penstock would generally parallel the course of the stream. • A 40-ft x 60-ft steel-frame powerhouse at El 66, just upstream of Lake Nerka on the left bank of lower Elva Creek at SM 0.2. The powerhouse would be situated to be just upstream of the comparatively limited anadromous habitat in Elva Creek that is located from the immediate vicinity of the lower stream gage and downstream in the stream. Lake Elva Alternative E-2, "Low Dam" (or "Lake Outlet Dam") Alternative (See Figure ES-1) In detail, this alternative would consist of the following primary components: • A 38-ft high 362-ft long rock fill dam located at the outlet of Lake Elva. • A 48-inch diameter buried penstock and access road approximately 15,200 feet in length. The penstock would be located within the road corridor. The powerhouse would be the same construction and at the same location as for Alternative E-1. Both Project Alternatives would operate throughout the year with occasional shutdowns in late winter of certain low-flow years. TRANSMISSION ALTERNATIVES Additionally, CSI reviewed a report by Dryden and LaRue (D&L 2012) which evaluated several potential transmission routes. CSI further analyzed the D&L transmission and access routes and developed the following alternatives: Park Boundary Alternative This route of this alternative traveled east from the Lake Elva and Grant Lake generating facilities to the east boundary of WTSP, where it traveled north to south outside the park  ES‐6 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS   to the existing transmission system at Aleknagik (Figure ES-2). The Park Boundary Alternative is the recommended alternative from the D&L report. Glacial Moraine Alternative This Alternative’s route followed higher elevations and more stable subsurface material near the terminus of a large glacial moraine, with much of the route inside WTSP (See Figure ES-2). The Glacial Moraine Route was shown in earlier regional energy studies (Retherford, 1980). This route was favored over the Park Boundary route which followed lower-gradient, extensively muskeg ground with greater length outside WTSP. To address environmental concerns, this route could be designed as a temporary feature with revegetation of the route following the end of construction. In both Transmission Alternatives, the construction access road for the generation facilities would be a temporary feature, visible during construction but allowed to revegetate afterwards with the objective of limited scenic resources impacts inside the Park ESTIMATED ENERGY PRODUCTION AND COSTS Installed Capacity and Generation Operations modeling suggested 1.9 MW installed capacity for Grant Lake Alternative and 1.0 MW for Lake Elva Project Alternatives (Table ES-1). Annual energy output from either Grant Lake Alternative would be approximately 15 gigawatt hours (GWh) in an average year, equivalent to over 1 million gallons of diesel-based energy at current NETC plant efficiency. Annual energy output from either Lake Elva Alternative would be approximately 7 GWh in an average year, equivalent to approximately 0.5 million gallons of diesel-electric energy at current NETC plant efficiency.  ES‐7 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS   Table ES-1. Estimated Installed Capacity, Annual Energy Generation and Annual Diesel Avoidance for Grant Lake and Lake Elva Alternatives. Project and Alternative Estimated Installed Capacity (MW) Estimated Annual Energy Generation (GWh) Annual Diesel Avoidance (Millions of Gallons) Grant Lake Alt. G-1 1.90 14.3 0.97 Grant Lake Alt. G-2 1.95 14.7 1.00 Lake Elva Alt. E-1 1.0 7.4 0.50 Lake Elva Alt. E-2 1.0 6.9 0.47 ECONOMIC ANALYSIS PARAMETERS AND VALUES Economic analyses of the Lake Elva Project envisioned that it would be developed as a supplement to the Grant Lake Project. Under this concept, Lake Elva costs would be reduced for such components as mobilization, access road and transmission line construction and labor utilization. Benefit/Cost Ratios for Project Alternatives Project economics were calculated using a spreadsheet operations model based on the following parameters and values: Finance Rate/Discount Rate: 5.0% Construction Finance Period: 3 years Project Finance Period 30 years Economic Analysis Period: 40 years Current Diesel Fuel Price (2013): $3.42/gal. Annual Fuel-oil Price Escalation Rate: 3.0% Fuel Price @ 2018 startup: $3.96 Annual Escalation in Non-fuel-oil items: 1.5% NETC Annual Load Growth: 0.5% Estimated Startup Year: 2018  ES‐8 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS   Estimated total capital costs (construction and short-term finance) for the Grant Lake and Lake Elva Project Alternatives, based on 2013 dollars ($2013) with a 2015-16 construction bid date are shown in (Table ES-2). There was very little difference between the B/C ratios for each Project’s two Alternatives given the differences in proposed dam locations and types. Table ES-2. B/C Ratios for Grant Lake and Lake Elva Project Alternatives. Alternative G-1 G-2 E-1* E-2* Total Net Project Benefits $89,848,579 $92,398,729 $42,882,929 $41,903,280 Total Capital Costs $65,492,396 $68,683,832 $57,843,560 $51,305,451 B/C 1.37 1.35 0.74 0.82 Alternative G-1 used in this analysis. Results are similar using Alternative G-2. *Supplemental to the Grant Lake Project Projected Energy Costs of Generation Alternatives The Grant Lake project was estimated to reduce 2018 electric rates that are approximately the same as the projected 100% diesel-electric generation scenario at a 2018 startup (Table ES-3). The addition of the Lake Elva project increased rates over a 100% diesel-electric generation scenario by a significant amount (Table ES-3) for a startup concurrent with the Grant Lake project. The cost increase for initial inclusion of the Lake Elva Project Alternatives was due in large part to the lack of NETC load projected for the time of Project start-up (2018). This situation would create a large annual debt service without compensating generation revenue for several years into the licensing period.  ES‐9 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS   Table ES-3. Projected Cost of Energy in $/kWh from NETC Generation Alternatives at 2018 startup. Generation Alternative G-1 G-2 DAHP G-1 & E-1 DAHP G-1 & E-2 All Diesel (Current Condition) Projected Rate $0.4475 $0.4522 $0.5811* $0.5580* $0.4412 *Surplus Capacity exists at a 2018 startup with 0.5% annual load growth. PREFERRED ALTERNATIVES In the following sections, preferred alternatives are in bold type face on first reference. Grant Lake Generation Facilities The Grant Lake Project Alternative G-1, the low dam located at Little Grant Lake, was slightly less expensive to construct than Alternative G-2, which had essentially the same energy generation and overall B/C ratio. Final selection of a preferred alternative will require detailed surface and sub-surface geologic and geotechnical information. At the time of this analysis, there are few decision factors on which to base confirmed selection of one over the other Grant Lake Project Alternative. Both Grant Lake Alternatives had the potential for environmental effects on project feasibility. Instream flow releases and prescribed lake levels will be important factors potentially reducing generation and overall feasibility. Both alternatives remained economically feasible after application of a year-round instream flow requirement equal to 17 percent of mean annual flow, but higher base flow requirements or differing flow requirements during different seasons could have greater effects on feasibility. Construction timing constraints to avoid wildlife disturbance could affect overall schedule and budget. Costs of environmental studies and mitigation measures may reduce B/C ratios.  ES‐10 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS   Transmission and Access The Glacial Moraine Transmission Alternative was preferred because it was significantly shorter in length, less expensive and offers better construction conditions than the Park Boundary Alternative. The moraine landform this route follows offers higher, more stable roadbed conditions than the extensive muskegs found to the east at the park’s boundary. This transmission route for the Grant Lake Project was shown in energy studies (Retherford, 1979, 1980) under discussion at the time of the creation of WTSP. Consistency of this alternative with WTSP policies regarding such features within the Park will be a major factor in determining its feasibility. Lake Elva Generation Facilities The Lake Elva Project Alternative E-1, the downstream, higher dam alternative, while more expensive to construct than Alternative E-1, had significantly greater energy production with less potential for spill and late winter shutdown. As with the Grant Lake Alternatives, final selection of a Lake Elva Project alternative will depend on surface and subsurface information. Environmental constraints on either Lake Elva Alternative are expected to be less influential than those for the Grant Lake Project, but may still have significant effect on project feasibility. Transmission and Access The Lake Elva Overland Transmission Alternative as opposed to submarine transmission alternative was significantly cheaper and had fewer unknowns relative to Lake Nerka lake bottom configuration. Visual effects of the overland route should be the subject of consultation with WTSP to determine consistency with Park visual resources policies. Staged Development Development of both Projects simultaneously would result in a substantial increase in energy costs in the NETC service area. This cost increase for initial inclusion of either of the Lake Elva Project Alternatives would be largely due to lack of NETC load at the time  ES‐11 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS   of project start-up. This situation would create a large annual debt service without compensating revenue from energy sales for several years into the licensing period. Under the current analysis, the Lake Elva Project would be feasible only if it were brought on line at the time that NETC load was fully met by the combined Grant Lake- Lake Elva projects. . This would require that Lake Elva Project licensing would begin no less than about 7 years prior to expected need. During future licensing steps, NETC will decide which Project or Projects to carry forward to the license application stage. It is likely that licensing will involve only the Grant Lake Project. PROJECT SUMMARY DATA The analyses described above resulted in the summary data presented in Tables AI-1 and AI-2 in Appendix I for the Grant Lake and Lake Elva Projects respectively. These data are based on conceptual-level designs and are likely to change during the design development process.  ES‐12 DRAFT DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS Figure ES-1. Project Location Map  ES‐13 DRAFT DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS Figure ES-2. DAHP Alternative Transmission and Access Routes   1 DRAFT DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  INTRODUCTION Nushagak Electric and Telephone Cooperative (NETC) holds a Preliminary Permit (PP) from the Federal Energy Regulatory Commission (FERC) to study the feasibility of the Dillingham Area Hydroelectric Project (DAHP, FERC No. 14356). The DAHP, or "Project", consists of the Grant Lake and Lake Elva Hydroelectric Projects, described in more detail in the following sections. Both Projects are within the boundaries of Wood Tikchik State Park (WTSP) which is administered by the Alaska Department of Natural Resources (ADNR), Division of Parks and Outdoor Recreation (DPOR). DAHP project generation and transmission features are shown in Figure 1. OBJECTIVE The objective of this study was to determine whether the Project, evaluated in terms of engineering, environmental/regulatory and economics factors, would be feasible to construct and operate. A primary factor would be the Project's ability to replace the expensive and volatile- cost diesel generation on which NETC is wholly dependent at this time. The study would employ newly available data for hydrology, fisheries, and land surface and lake bathymetric mapping to supplement previous studies. PROJECT HISTORY and OTHER INFORMATION Study History The Grant Lake and Lake Elva projects have been studied as potential energy sites for over half a century. Several reconnaissance-level studies have resulted in design proposals for generating and transmission facilities for both projects. The emphasis of earlier studies was on the Lake Elva Project, shifting recently to the Grant Lake project. In legislation that created WTSP, the Grant Lake and Lake Elva projects were deemed consistent with the park’s purposes.   2 DRAFT DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS Figure 1. Project Location Map  3 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  NETC Study Involvement NETC began work on the DAHP in 2008 after a declaration of non-jurisdictionality was issued by the Federal Energy Regulatory Commission (FERC). Later, NETC elected to proceed under FERC jurisdiction to provide a structured licensing pathway and more formal consultation with Stakeholders. During the early licensing phases, NETC retained EES Engineering of Kirkland, Washington to prepare a preliminary feasibility report (EES, 2009). The EES study provided conceptual-level analysis of the DAHP under both run-of-the-river and storage alternatives. The study's conclusion was that the Grant Lake project would be feasible under both alternatives while neither Lake Elva alternative would be feasible if developed on its own. In 2012, NETC retained Civil Science Infrastructure (CSI) to conduct a second feasibility study in which newly-acquired hydrologic and fisheries data could be used to improve the information base for the assessment. In this second study, CSI was tasked with evaluating specific generation facility designs and new transmission and access routes. Hydrologic and Environmental Studies In the EES report, no allowance was made for instream flow releases, minimum or maximum reservoir elevation restrictions, or other environmental factors shown to have significant effects on the feasibility of other hydro projects in Alaska. Further, the hydrologic data used in the EES study were based on a rather short period of record from earlier studies. Newer and more extensive stream gage data were available for the current assessment. Similarly, the EES report did not have the benefit of fisheries study results to support project design. In this report, detailed salmon spawning information was available to help determine such features as powerhouse locations. Finally, NETC obtained LIDAR imagery for the Project areas to more precisely determine elevations, distances, areas and lake volumes relative to those used in earlier studies. Transmission Alternative Evaluations The EES study included a reconnaissance-level analysis of several transmission route alternatives conducted by Dryden and LaRue (D&L). Among these alternatives was an underwater route beneath the north arm of Lake Nerka. In 2012, NETC retained D&L to evaluate a smaller set of alternative routes for both the Grant Lake and Lake Elva Projects (D&L,  4 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  2012). In this report, we have incorporated results from D&L (2012) and have developed new routing alternatives based on the D&L results and more recent analyses. The D&L report is included in this report in Appendix II. WORKSCOPE and METHODS The following section describes steps taken by CSI to conduct the feasibility analysis. Tasks are those listed in the CSI contract with NETC with some modifications to facilitate report organization. TASK 1. REVIEW EXISTING INFORMATION Previous studies were reviewed to summarize findings on construction alternatives and energy generation estimates. Also reviewed were economic assumptions and historical hydrologic data. Geologic reports for both the Project areas and the surrounding region were reviewed. TASK 2. SITE VISITS and EVALUATION Project team members visited the Project sites to perform resource studies and to evaluate availability of construction materials and soil conditions. TASK 3. CONCEPTUAL DESIGN of ALTERNATIVE CONFIGURATIONS The conceptual design process proceeded in two steps: 1) development of a preliminary list of both generation and transmission alternatives based on earlier studies and data collected in 2011 and 2012; and 2) elimination of certain alternatives through more detailed economic evaluation and Benefit/Cost analysis. As a starting point, the project team focused on alternatives identified in EES (2008) and earlier literature. Conceptual plan and profile drawings of several alternatives were drafted, using available topographic data and LIDAR imagery collected in 2012. The alternative project features and processes included the following:  5 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Dam Height and Location Alternatives For both the Lake Elva and Grant Lake Projects, two different dam locations and construction types (rockfill and concrete) were evaluated. For each Project, one dam option reflected low cost considerations and the other reflected optimum storage given topographic restraints. Run-of-The-River vs. Storage Alternatives The Grant Lake and Lake Elva Projects were evaluated as both run-of-the-river and storage projects. This was a general evaluation of the alternatives’ ability to meet NETC loads to the greatest extent possible given inflow available for hydroelectric generation. Tunnel vs. Penstock Design Alternatives For the storage alternatives for both projects, we evaluated power conduits featuring both tunneling and penstock designs. Evaluations of these conduit alternatives were based on equipment and labor costs, risk of leakage, schedule and environmental considerations. Air vs. Land or Water Mobilization Alternatives Both fixed-wing and helicopter mobilization alternatives were evaluated against land and water access in terms of cost, environmental effects, and aircraft load capabilities. Transmission and Construction Access Road Routing Alternatives Two transmission alternatives and two access alternatives were developed for each project. To the extent possible, the access routes followed the transmission routes to take advantage of existing soil and topographic conditions. TASK 4. DETERMINE FEASIBILITY BASED on ELECTRICAL GENERATION and ENGINEERING CONSIDERATIONS Under this Task, CSI generally applied engineering and cost criteria to the broad array of alternatives to eliminate certain alternatives from further consideration. Then, for the remaining alternatives, CSI utilized a spreadsheet generation model to predict electrical generation based on updated hydrologic data. Detailed methods for hydrologic synthesis and the energy generation calculation processes are described in Appendix III.  6 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Also under this Task, CSI reviewed earlier geotechnical results as well as surface and sub- surface observations from recent field visits to determine reconnaissance-level feasibility of constructability at the various dam locations. The first step in developing the generation analysis was collection and analysis of hydrologic data followed by use of the spreadsheet model to predict generation, as described in the following: Hydrologic Data Collection and Analysis Hydrologic Data Collection Hydrologic data were obtained from four separate sources including existing USGS gage records and project-specific data collected by CSI during 2011 and 2012. These sources were: 1. Short-term data from USGS gages installed at the outlets of both Lake Elva and Grant Lake ("USGS Elva-USGS Grant"). USGS Grant was active from July 1959 through June, 1965. USGS Elva was active between October 1979 through June, 1982; 2. Short-term data, collected by CSI in 2011 and 2012 at the same locations as the above- described USGS sites ("CSI Elva, CSI Grant"); and Long-term data collected by USGS on the Nuyakuk River ("USGS Nuyakuk") which was used as the basis for synthesizing long-term streamflow forecasts for the outlets of Lake Elva and Grant Lake. The USGS Nuyakuk gage was active from March, 1953 through September, 1996, and from July 2002 through September, 2004. The Nuyakuk River gage was re-established in July 2007 and has remained in operation since that date. Hydrologic Data Analysis and Synthesis To develop the long-term synthesized data set, CSI correlated data from the USGS Elva-Grant sites and the CSI Elva-Grant sites with the corresponding data from the USGS Nuyakuk site. Relationships from these comparisons were used to create long-term streamflow forecasts for both the Lake Elva and Grant Lake outlet locations which were used as input to the operations and generation model.  7 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  To evaluate the synthesized Grant-Elva data, CSI compared the short term data sets with the respective USGS Nuyakuk data to determine whether the short-term data had been collected during wet, dry or average years, and to adjust the forecast data accordingly. Also, the synthesized Elva-Grant data sets were compared to the USGS Nuyakuk data to see whether long-term trends from the measured data were in accord with those trends in the forecast data. Energy Calculations Using the spreadsheet model, energy generation was calculated for alternative Project configurations vs. monthly NETC loads. The model was also used to predict monthly reservoir levels Reservoir levels were predicted relative to upper (reservoir at spill elevation) and lower (bottom of active storage zone) limits. Project energy was calculated using the standard “water to wire” formula. Generation losses were estimated using manufacturer-provided efficiency values. Transmission losses were estimated at 4.5% of generator output per consultation with D&L. Reservoir storage and energy generation formulae are presented in Appendix III. To simulate effects of a possible instream release requirement, a year-round release equal to 17 percent of mean annual flow was input to the model for both Projects. Since no detailed instream flow requirements were available at this stage of project development, we used the proposed quantity from the "Tenant Method" (Tenant 1975). In this study, salmonid flow needs in mountain streams were found to be accommodated by 17 percent of mean annual flow. Modifications of the Tenant method have been used in Alaska to make reconnaissance level claims for instream flow needs. Energy generation results reflected the 17 percent of mean annual flow instream release requirement. TASK 5. ECONOMIC ANALYSIS Economic analyses were conducted to predict two primary values for each Project Alternative: 1) Benefit/Cost (B/C) ratio; and 2) cost of electricity per kilowatt hour to NETC consumers. In this section we describe the calculation processes for these values.  8 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  B/C Ratio Calculation The B/C ratio in this analysis was defined as the Project’s total net benefits (B) divided by its capital cost (C). The Project was assumed to be financed over a 30-year period. Annual revenues from diesel avoidance benefits were discounted over a 40-year period (to reflect the expected service life of the Project) to present-day values using a 5% discount rate. Cost Calculation The Project’s capital cost, C, was the sum the Project construction cost, including a 25% contingency and the short-term finance costs, necessary to fund the Project’s construction without impact or with minimal impact on rates before the project comes online. C was annualized over the finance period and rate to calculate the Project’s annual debt service cost for estimation of the projected cost of energy to NETC consumers. All Capital costs are in 2013 dollars ($2013) for a 2015/16 bid and operations to start-up in 2018. Construction Costs Construction costs were estimated for total quantities of the principal infrastructure components, based on communications with specialty contractors, suppliers, logistics experts and manufactures. Local businesses were contacted for lodging, transportation and aviation service cost estimates. Costs for major infrastructure components, e.g., turbine, generator, transformers, penstock, etc., were obtained through consultation with suppliers to estimate material and shipping costs. Equipment and labor requirements were estimated based on logistics and seasonal access constraints. The cost estimate also included construction management, testing and certification and environmental monitoring during construction. Transmission line and access road costs were calculated from estimates in D&L (2012). D&L unit costs were preserved but quantities were adjusted to match the lengths of new transmission line alignments developed by CSI. Ice road costs that were included in D&L estimates were eliminated from the D&L costs where the transmission system would be constructed from the Project access road. All project alternatives were estimated to have a three year construction period, with the project coming on line in the third year. This schedule was used to estimate the drawdown of construction funds to calculate construction finance costs. Construction funding draws were  9 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  allocated at 25%, 50% and 25% of the total cost in the first, second and final years of construction. The short-term financing would allow NETC to make payments to construct the Project without an excessive burden on the ratepayers before the Project began producing energy. Detailed descriptions of financial formulae are presented in Appendix IV. Annual Operation and Maintenance (O&M) Costs Operations costs included estimates for staffing, equipment, materials, supplies, transportation and administration/insurance. Maintenance costs included those for project intake, SCADA system, right of way, load controls, lines, roads and miscellaneous items. All O&M costs were estimated in $2013 and escalated to a 2018 startup. O&M Costs were escalated at 1.5% per year throughout the analysis period. Addition of the Lake Elva Project to the DAHP was assumed to add an additional 50% to O&M costs on a kWh basis. This reduction was assumed to come from economies of scale resulting from combined hydroelectric operations and that the Lake Elva Project’s transmission line is approximately half the length of the Grant Lake transmission line. Contingency Estimated construction costs were based on conceptual-level engineering and associated uncertainties due to lack of detail in geotechnical, environmental, and regulatory information. To account for this uncertainty, a 25% contingency was included in the construction cost estimate. Inflation No allowance for inflation was used in the capital cost estimates because of the short period (2-3 years) before short-term financing took effect. Fuel oil and O&M costs were escalated at 3% and 1.5% per year, respectively. Benefits Calculation Benefits of the DAHP are derived from offsetting the costs of equivalent diesel generation since all electricity within the NETC service area is currently diesel generated. Annual Net Project Benefits (ANB) were calculated for each year of the 40-year analysis period as the Annual Benefits (A) from diesel avoidance less the Project’s Annual O&M costs (O). In equation form:  10 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  ANB = A – O Where: ANB = Annual Net Benefits; A = Annual Project Benefits; and O = Annual O&M Costs Annual Project benefits equaled the avoided costs of the diesel fuel required to produce the projected annual energy sales from a given Project Alternative. Fuel costs included the costs of purchase, shipping, delivery and storage of the volume of diesel fuel required to produce the average annual energy generated by a given Project Alternative. The avoided diesel volume was determined using NETC’s current plant efficiency of 14.8 kilowatt-hours (kWh) per gallon of diesel fuel consumed. Annual benefits in dollars were then calculated using the price per-gallon (PPG) of diesel fuel at the NETC plant injectors multiplied by the number of gallons of avoided diesel consumption, as shown in the following equation: A = (E/14.8) x PPG Where: A = Annual Project Benefits, $ E = Average Estimated Annual Project Energy Sales in kWh; PPG = Price per Gallon of diesel delivered to NETC plant injectors. Annual Net Benefits (ANB) were calculated by subtracting annual O&M from the annual benefits for each year of the analysis period. Each ANB in the 40-year analysis period series was then discounted at an annual rate of 5% from the year it occurred to its present value. Total benefits, B, were the sum of the discounted ANB series over the 40-year analysis period. Cost of Energy to the Consumer The cost of energy to the consumer was the cost per kWh of hydroelectric energy plus the cost per kWh of supplemental diesel-generated energy for each Alternative. Hydroelectric energy  11 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  costs were the sum of annual costs for long-term debt service, O&M, distribution, and general and administrative costs divided by the projected annual hydroelectric energy sales in kWh. For cases where annual hydroelectric capacity exceeded annual demand, the diesel-electric production was assumed to be 2% of the annual sales to cover peak loads. Hydroelectric energy costs were the sum of annual costs for long-term debt service, O&M, distribution, and general and administrative costs divided by the annual hydroelectric energy production in kWh. Annual long-term debt service was calculated as the equivalent ordinary annuity payment for the Project’s capital cost divided by the Project’s projected energy sales. The supplemental diesel generation cost for the hydro-diesel generation scenario was the sum of diesel fuel costs, as described above, divided by the annual supplemental diesel generation in kWh. All cost components, except estimates for hydroelectric debt service and O&M, were from NETC’s most recent accounting of their annual costs. These costs from NETC were escalated at 1.5% annually. Energy costs for the 100% diesel generation scenario (for comparisons with costs per kWh under the hydro-diesel scenario) were calculated in the same manner as was used for supplemental diesel-electric energy. In this case, fuel storage costs were apportioned over the entire annual energy sales rather than only the portion of the total load met by supplemental diesel generation that would exist with hydroelectric generation in place. For this analysis, the long-term interest rate was set at 5% and the finance term was 30 years. The Project was assumed to be online in 2018 with annual NETC load growth set at 0.5%. As with the B/C calculations, annual diesel costs were escalated at 3.0% and all non-fuel costs were escalated at 1.5% per year. Sensitivity Analysis CSI evaluated the sensitivity of the Alternatives' B/C ratio to such variables as capital cost, interest rates, annual fuel cost escalation, Annual O&M costs, economic analysis period and load growth. These sensitivity analyses were projected over the 40-year economic analysis period to depict a conservative estimate of the Project’s useful service life. All variables were kept at their base rate and the selected parameter was varied to see its effect on the alternative’s B/C ratio.  12 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  RESULTS TASK 1. REVIEW EXISTING INFORMATION Studies of the Lake Elva project resulted in a recommendation by the Alaska Power Authority (APA) [now Alaska Energy Authority (AEA)] leading to reconnaissance work by Retherford and Associates (Retherford 1980) and a detailed feasibility study by R.W. Beck (1981). The Grant Lake project has been mentioned in energy planning documents (UAF, 1976., US Dept. of Energy, 1979) but interest in the Grant Lake project was lower than that in the Lake Elva project until recently. Stream discharge data were collected at sites relative to both projects by the US Geological Survey (USGS). Geological information relating to topography was gathered and organized, along with stratigraphy, geologic structures and seismicity via publications and teleconference communications with the Alaska Geological Society, the USGS, Alaska Department of Natural Resources, and the University of Alaska Fairbanks Geology Department. Topographic information was obtained via LIDAR data acquired specifically for this project. TASK 2. SITE VISIT and EVALUATION American Geotechnics of Boise, Idaho, performed a geological site reconnaissance at both Project sites in early July, 2012, to assess ground conditions relative to various Project features. These surveys did not include subsurface investigations, but rather sought to: 1) generally evaluate suitability of foundation and abutment conditions for major project features, including dams, penstocks and powerhouses; 2) locate potential borrow sources for aggregates, blast rock, and clay or silt materials; and 3) assess geologic benefits or constraints that would affect the design and construction of the project. The geotechnical report is included as Appendix V. TASK 3. CONCEPTUAL DESIGN of ALTERNATIVE CONFIGURATIONS Alternatives Eliminated From Further Consideration Air Mobilization Air mobilization was deemed technically infeasible for either project for the following reasons:  13 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  • Aircraft load capacity would not be sufficient to transport large earth moving equipment like scrapers, large dozers, off-highway trucks and heavy compaction equipment; • The disturbance caused by multiple large aircraft flights through WTSP would be far greater than that from lake barge operations on Lake Nerka or road access to Grant Lake; and • Weather and air traffic could jeopardize delivery schedules, often by days or weeks. Run of the River Operations Run of the river operations were eliminated from further consideration on both Projects because energy generation would be significantly less than that produced using the advantages of reservoir storage and release schedules. Energy generation resulting from even optimal storage operation barely exceeded NETC load requirements. Further losses due to run of the river operation would bring the Projects below acceptable ability to meet area loads. Lake Nerka Project Submarine Transmission Alternative The submarine transmission alternative (beneath the North Arm of Lake Nerka) was eliminated from the Lake Elva Project on the basis of cost. Estimates for this transmission route in D&L (2012) were nearly fifty million dollars, sufficient to eliminate this alternative from further consideration. Lake Elva Tunnel A tunnel was considered as an option for the power conduit at the Lake Elva project. The tunnel was initially attractive due to its low visual impacts and very long service life. The tunnel was deemed unfeasible, however, due to lengthy construction periods resulting from low production rates. The expected soft subsurface material added to the uncertainty of conditions which might cause leakage and loss of generating efficiency. Even with extensive exploratory drilling, the uncertainty of subsurface rock conditions would be a major factor reducing certainty of success of the tunnel option. Grant Lake Canal The Grant Lake canal, generally following the route of an ancient glacial-fed river channel at the northwest corner of Grant Lake, was envisioned as component of the power conduit in earlier  14 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  studies. It was eliminated from further consideration in this study because 1) an open channel would be inoperable during winter and thus unsuited to storage project operations; 2) the canal would require extensive excavation which would greatly increase construction costs, and, 3) the canal’s alignment would traverse the terminal moraine at the northwest side of Grant Lake where significant losses of water for power production could be reasonably expected due to leakage from the canal into the porous moraine deposits. Ice Road Access for Construction of Generation Facilities The use of an ice road was eliminated from consideration for access to construct the generation facilities at Grant Lake. An ice road would greatly increase the risk of costly delays and would not provide sufficient capacity for transporting heavy generation and construction materials and equipment. Generation Alternatives Analyzed After preliminary evaluation of numerous alternative project configurations, including dam type and location, power conduit material and alignment, powerhouse locations and transmission line and access road routing, the following alternatives for both the Lake Elva and Grant Lake projects were further analyzed. In the following project descriptions, elevations are denoted using "El" as the height above the North American Vertical Datum of 1988 (NAVD 88), as in "El 255" or "El 458". Stream bank locations were as seen looking downstream. Locations on Grant River are noted in Stream Miles (SM) upstream from the confluence of Grant River with Lake Kulik. SM on Elva Creek are in miles upstream from Elva Creek's confluence with Lake Nerka. Grant Lake Project Generation Alternatives Grant Lake Alternatives were developed based on differences in two primary project features: 1. Dam Location and Type; and 2. Transmission Line and Access Road Routing. Dam Location and Type Alternatives The two Grant Lake Alternatives would differ only in terms of dam size and location. The project under both alternatives would operate as a storage project with operations occurring  15 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  throughout the year with occasional shutdowns, usually in March and/or April of certain low water years, when operations would exhaust reservoir storage before spring runoff. Alternative G-1. Little Grant Lake Rockfill Dam with Powerhouse at SM 3.7 Alternative G-1 would consist of a 24-foot high rockfill dam at the outlet of Little Grant Lake (Figure 2) at Grant River SM 7.5. The penstock would run to a powerhouse at SM 3.7, at El 192 feet. Total gross head of this configuration would be 316 feet. In detail, this alternative would consist of the following primary components: A 24-foot high rockfill dam with impervious membrane liner and auxiliary spillway to pass peak flood events. The dam would be located at SM 7.5 of Grant River, at a location just below the outlet of Little Grant Lake. The dam would have a crest at El 514 and would be approximately 636 feet long. The dam would impound Grant Lake to a maximum elevation of 508 feet (20 feet impoundment) and provide 44,000 acre feet of active storage. The dam would increase Grant Lake's surface area to 2,558 acres at 508, an increase of 645 acres over the Grant and Little Grant Lake’s existing combined surface area.   • A gated outlet works, controlled to provide instream flow release to upper Grant River or drain the reservoir if needed. • A submerged intake in the northwest corner of Grant Lake. The intake would be situated at a depth sufficient to minimize the probability of entraining floating debris and/or ice/slush at the low pool levels experienced during late winter and early spring. • A 66-in diameter buried pipe penstock approximately 16,100 feet in total length. The penstock would follow the alignment of the ancient glacial-fed river channel from the northwest corner of Grant Lake. From near the old channel’s confluence with Grant River, the penstock would continue further downstream along the right bank of Grant River, generally approaching the stream until terminating at the powerhouse at SM 3.7. • A 40-ft x 60-ft steel-frame powerhouse with reinforced concrete foundation and tailrace which would house the turbine/generator unit(s) and all associated mechanical and electrical equipment located on the right bank of Grant River at SM 3.7. A reinforced concrete tailrace structure would control tailwater levels with a riprap-lined transition  16 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  channel providing for the water’s re-entrance to Grant River. Total net head for this configuration would be 304 feet. Alternative G-2. Concrete Dam at SM 6.7 with Powerhouse at SM 3.7 Alternative G-2 would feature a concrete gravity dam located at SM 6.7 instead of the rockfill dam in Alternative 1 (Figure 2). This Alternative’s powerhouse, power conduit, intake and transmission facilities would be identical to the respective components in Alternative G-1. The primary difference between this alternative and Alternative G-1 would be the position and structure of the dam, as described below: • A 60-foot high concrete dam would be constructed at the top of the canyon (SM 6.7) of Grant River. The dam would have a crest at El 508 with a length of 400 feet. It would impound approximately 47,000 acre feet of storage in Grant Lake. Surface area of the new reservoir would be 2,659 acres, an increase of 746 acres (about 1 square mile) over Grant Lake's existing surface area. • An integral spillway would convey peak flood events and a gated outlet works would be used to release flows to upper Grant River for instream flow maintenance. • A submerged intake in the northwest corner of Grant Lake. The intake would be situated at a depth sufficient to minimize the probability of entraining floating debris and/or ice/slush at the low pool levels experienced during late winter and early spring. • A 66-in diameter buried pipe penstock approximately 16,100 feet in total length. The penstock would follow the alignment of the ancient glacial-fed river channel from the northwest corner of Grant Lake. From near the old channel’s confluence with Grant River, the penstock would continue further downstream along the right bank of Grant River, generally approaching the stream until terminating at the powerhouse at SM 3.7. • A 40-ft x 60-ft steel-frame powerhouse with reinforced concrete foundation and tailrace which would house the turbine/generator unit(s) and all associated mechanical and electrical equipment located on the right bank of Grant River at SM 3.7. A reinforced concrete tailrace structure would control tailwater levels with a riprap-lined transition  17 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  channel providing for the water’s re-entrance to Grant River. Total net head for this configuration would be 304 feet. Under Alternative G-2, the project would operate as a storage facility and would suspend operations during March and/or April of certain low-water years, or when operations reduced the reservoir to below critical levels prior to spring runoff. Operations modeling has shown that, under Alternative G-2, these operations suspensions would be only slightly less frequent than they would under Alternative G-1. 17% of average annual flows at the dam site would be released to Grant River for instream flow maintenance.   18 DRAFT DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS Figure 2 Alternatives G-1 & G-2 Project Features and Configuration  19 DRAFT DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Lake Elva Project Generation Alternatives After analysis of various Lake Elva Project generation features, two configurations were developed, the "High Dam" and "Low Dam" Alternatives, as described in the following: Alternative E-1: "High Dam" (or "Downstream Dam") Alternative Alternative E-1 was characterized by a relatively high rockfill dam located somewhat downstream of the Lake Elva outlet. This Alternative provided the greater storage of the two Alternatives by tapping inflow from greater watershed area in a significantly larger capacity reservoir. Construction cost of the higher dam would be a factor in the Alternative's economic analysis. In detail, this alternative would consist of the following primary components: • An approximately 110 ft-high rockfill dam with impervious core at SM 1.6 on Elva Creek, 1.9 miles downstream of the outlet of Lake Elva at SM 3.5 (Figure 3). The dam crest elevation would be at approximately El 380 and the dam's length would be approximately 620 feet. The dam would impound approximately 27,000 acre feet of active storage in the new Lake Elva reservoir. Surface area of the new reservoir would be 775 acres, an increase of 487 acres over the existing area of Lake Elva. • An auxiliary uncontrolled spillway, excavated in an old channel of Elva Creek to the left of the dam. • A 7,760-ft long, 48-inch diameter penstock located on the left bank of Elva Creek generally paralleling the path of the creek. • A 40-ft x 60-ft steel-frame powerhouse at El 66 housing the turbine/generator(s) and associated mechanical and electrical equipment, including switchgear and transformer, on the left bank of Elva Creek at SM 0.2. A reinforced concrete tailrace, integral with the powerhouse/turbine foundation, would reintroduce flows to the stream. Total net head for this alternative would be 297 feet. Access to the powerhouse, penstock and dam from the shore of Lake Elva would be via a road developed along the penstock route.  20 DRAFT DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Alternative E-2. "Low Dam" (or "Lake Outlet Dam") Alternative Under Alternative E-2, a lower rockfill dam would be located near the existing Lake Elva outlet. This Alternative would provide less storage than Alternative E-1, but the cost of dam construction would be significantly less. In detail, Alternative E-2 would consist of the following primary components: • A 38-ft high rockfill dam with impervious membrane at Elva Creek SM 3.2, at the outlet of Lake Elva. The dam crest elevation would be approximately 362 feet. This dam would raise Lake Elva by 28 feet and impound approximately 11,000 acre feet of water. Surface area of the new reservoir would be 488 acres, an increase in 200 acres over the existing Lake Elva surface area. • A 48-inch diameter buried penstock and access road 15,200 feet in length located on the right bank and generally paralleling the course of Elva Creek. The penstock would cross the stream to the left bank of the Elva Creek at SM 1.7 at slightly less than half (7,000 feet) the distance to Lake Nerka. After crossing the stream, the penstock would continue for another 8,200 feet downstream to the powerhouse site. • The powerhouse would be the same construction and at the same location as for Alternative E-1. Total net head for this alternative would be 274 feet.   Access for both Alternatives from Dillingham would be first via the selected access road route to a point near the east end of the lower (South) arm of Lake Nerka. From there, a short spur road would lead to Lake Nerka, from which point watercraft would carry material to a location near the mouth of Elva Creek. From this point, access to the powerhouse, penstock and dam from would be via a road developed along the penstock route located on the left of, and generally paralleling, the stream.  22 DRAFT DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Under both Alternatives, the Project would operate as a storage facility with infrequent shutdowns during March and/or April of certain low-water years, or when operations reduced reservoir elevation below the minimum level prior to spring runoff. Instream maintenance flows of 17% average annual flow would be released from the E-1 reservoir. The E-2 Alternative would rely on natural accretion in the watershed below the dam to provide instream flows in the anadromous reaches of lower Elva Creek with no instream release from the dam site. Transmission Line and Access Road Routing Alternatives At the Grant Lake project, two transmission line/access road routing alternatives were evaluated: 1. The Park Boundary Alternative; and 2. The Glacial Moraine Alternative; as described in the following The Park Boundary Alternative Transmission Line Routing This is the preferred alternative from the D&L report. Under this alternative’s routing, a 34.5 kV overhead line would follow a direct west to east routing from the Grant Lake powerhouse 8.7 miles to the eastern boundary of WTSP (Figure 4). From the intersection with the park boundary, the route would continue south 22.3 miles along the park boundary to the southeast corner of the park, where it would angle southwest for 13.2 miles to its interconnection with existing transmission facilities Aleknagik. This line would be a total of 44.2 miles long with 8.7 miles of its length inside WTSP. From Aleknagik, the existing 12.5 kV overhead line would be upgraded to a new 15.5-mile long 34.5 kV transmission line to a new substation at Waskey Road. A new 5.6-mile long 12.5 kV distribution line would be routed along Waskey Road to provide power delivery from the hydroelectric projects to the NETC’s existing main powerhouse substation in Dillingham. Access Road Routing Transmission line construction access under this alternative would be via an ice road which would follow the transmission route (Figure 4). Use of the ice road would restrict construction to winter months. Consequently, this access route would not be used for construction access to for the generation facilities for the Grant Lake Project. A separate access route would be needed  23 DRAFT DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  for the generation facilities. The access route for the generation facilities would follow the glacial moraine landform separate from the transmission route (See Figure 4). Construction access to the Lake Elva Project site would be via a short (approximately 0.5 mile) all-season spur from the main access road constructed for the Grant Lake project to the eastern shore of Lake Nerka. From there, construction access would be via watercraft across Lake Nerka during the open water period. Glacial Moraine Alternative Transmission Routing Under this routing Alternative, a 34.5 kV overhead transmission line would be routed to the east of Grant Lake then generally south near the park’s eastern boundary along the terminal moraine which forms the drainage divide between the Wood and Nushagak Rivers (Figure 4). This transmission route would continue southerly along the divide to Aleknagik following the original design concept in effect when the Grant Lake Project was being considered with the creation of WTSP (Retherford, 1980). The total length of the new 34.5 kV overhead transmission line from the powerhouse to Aleknagik would be 41.5 miles, with 26.6 miles located inside WTSP. Access Road Routing Under this routing alternative, access to the Grant Lake project site as well as access for construction of the transmission line would be via a road which would be generally congruent with the transmission line routing (Figure 4). Preliminary reconnaissance of this route indicates more suitable soil conditions than those along the Park Boundary route, particularly in the segment of the Park Boundary route east of the park boundary. The access road in this alternative would be developed under the concept of a temporary feature with restoration of the vegetation in the developed area conducted as part of the mitigation package for the feature. Lake Elva Transmission Facilities Transmission facilities would include a 2.3 mile long 35 kV submarine crossing at the “elbow” of Lake Nerka followed by a 21.9 mile long 35 kV overhead line routed along upper Lake Nerka’s north shore to a junction with the Grant Lake transmission line near the park’s eastern  24 DRAFT DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  boundary. From the Junction, a 34.5 kV overhead line would continue to Aleknagik following the terminal moraine for a total length of 22 miles. This transmission segment would be congruent with the "Glacial Moraine" transmission alternative described for the Grant Lake project in the following section. From Aleknagik, the existing 12.5 kV overhead line would be upgraded to a new 15.5-mile long 34.5 kV transmission line to a new substation at Waskey Road. A new 5.6-mile long 12.5 kV distribution line would be routed along Waskey Road to provide power delivery to the existing main powerhouse substation in Dillingham TASK 4. DETERMINE FEASIBILITY BASED on ELECTRICAL GENERATION and ENGINEERING CONSIDERATIONS Operations and Electrical Generation As described above, economic analysis of the four major alternatives was the result of a series of steps involving: 1. Development of hydrology data sets to represent monthly streamflow available for energy generation at both projects; 2. Use of a reservoir operations model to translate monthly reservoir inflow into: 1) forecast reservoir elevations and corresponding storage volumes resulting from operations; and 2) forecast monthly energy generation time series noting percent of time NETC load would be met; 3. Evaluation of the generation time series to determine two decision factors: • Benefit/Cost (B/C) ratio expressing Benefits divided by Costs, as described in the Methods section; and • Cost per kWh to compare unit energy costs to those for NETC diesel generation.   25 DRAFT DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS Figure 4 DAHP Alternative Transmission and Analysis  26 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  In the following sections we present results of 1) the hydrologic analysis; 2) summarized output of the operations/generation model; and 3) results in terms of B/C and cost per kWh. Hydrologic Data Set Development Annual Runoff Cycle Analysis The USGS Grant gage operated during a period (1959-1965) when the Nuyakuk River flowed at 92% of its long-term average while USGS Elva gage operated during a period (1979-1982) when the Nuyakuk flowed at 116% of its long-term average. The USGS Grant gage average flow was 93.7 cubic feet per second (cfs) and the USGS Elva gage averaged 56.6 cfs during their respective periods of stream gaging. Given similar runoff trends in the region, the Elva-Grant annual runoff averages in cfs and cfs per square mile of watershed (csm) would be: Grant Lake gage: 1/92% x 93.7 cfs = 102 cfs or 2.97 csm Lake Elva gage: 1/116% x 56.6 cfs = 48.9 cfs or 5.43 csm Synthesized Long-Term Hydrologic Time Series Results of flow synthesis for both Grant Lake outlet and Lake Elva outlet locations compared well with the results found by comparison with Nuyakuk flow ratios above. The long-term average flow for the synthesized record was found to be 101 cfs for the Grant Lake outlet station. The long term average calculated from the USGS Nuyakuk station’s annual flow ratios was 102 cfs, resulting in a difference of less than 1 percent. The long-term average synthesized flow for the Lake Elva outlet station was 46.2 cfs which compared reasonably well (-5.8%) with the value of 48.9 cfs calculated from annual flow ratios from the USGS Nuyakuk gage. Grant Lake Synthesized Flows The long-term synthesis results for Grant Lake shown in Figure 5 and Table 1 resembled a typical Alaskan flow pattern characterized by yearly low flows in winter followed by peak flows during the spring snowmelt cycle and a secondary high flow period in early fall related to high rainfall. Peak monthly flows of over 200 cfs were forecast to occur in May and June with lower monthly peaks over 150 cfs were forecast for August and September. Yearly lows of all exceedance intervals were forecast to occur in March and April. The annual average flow for the 33-year forecast was 101 cfs.  27 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS    Figure 5. Synthesized Monthly 20th, 50th, Average and 80th Percent Exceedance Flows, Grant Lake Outlet Gaging Station   Table 1. Synthesized Monthly 20th, 50th, Average and 80th Percent Exceedance Flows, Grant Lake Outlet Gaging Station. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Q20 46.3 43.3 30.2 30.3 123 192 94.9 70.9 85.0 102 59.1 48.2 Q50 58.2 53.2 35.3 36.0 162 202 104 87.6 112 137 84.4 52.3 QAverage 60.9 54.9 35.2 35.9 198 203 108 94.5 125 144 93.1 55.1 Q80 73.8 68.6 39.7 42.9 277 216 121 117 173 215 117 60.9 0 50 100 150 200 250 300 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMonthly Discharge, cfs20th Percentile Monthly Flow 50th Percentile Monthly Flow Average Monthly Flow 80th Percentile Monthly Flow  28 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Lake Elva Synthesized Flows The long-term synthesis results for Lake Elva shown in Figure 6 and Table 2, as with the Grant Lake forecast flows, also resembled a typical Alaskan flow pattern characterized by yearly low flows in winter followed by peak flows during the spring snowmelt cycle and a secondary high flow period in early fall related to high rainfall. As expected based on its significantly smaller watershed area, Lake Elva inflows was lower throughout the year than inflow to Grant Lake. Peak monthly flows of over 120 cfs were forecast to occur in June and July, somewhat later than at Grant Lake. This was probably due to the steeper topography within the watershed and increased shading of slopes, resulting in later runoff. A secondary set of high flows, averaging from 60 to 80 cfs occurred in July through September. Yearly low flows of all exceedance intervals were forecast to occur in January through April. The annual average flow for the 33- year forecast was 46.2cfs. Reservoir Inflows The synthesized streamflow data was adjusted to match the drainage area of the project alternatives. Alternatives G-1 (Table 3) and E-2 (Table 4) both had their respective dam located at the respective system’s gaging station location. The drainage area was 34.3 square miles for Grant Lake outlet and 9.0 square miles for Lake Elva outlet respectively. Alternative G-2’s drainage area was 35.3 square miles and thus had reservoir inflows 2.9% larger (Table 3). Alternative E-1 had a drainage area of 10.3 square miles, with flows 14.4% larger than the flow measured at the gage (Table 4). Operations/Generation Model Results Reservoir Levels Predicted reservoir levels for both projects were graphed relative to the projects' maximum reservoir level (the spill level) and the minimum level which was in both cases the lowest elevation of active storage.  29 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS    Figure 6. Synthesized Monthly 20th, 50th, Average and 80th Percent Exceedance Flows, Lake Elva Outlet Gaging Station.   Table 2. Synthesized Monthly 20th, 50th, Average and 80th Percent Exceedance Flows, Lake Elva Outlet Gaging Station. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Q20 13.1 12.6 12.2 12.1 15.8 94.8 80.1 55.1 49.6 46.7 16.2 0.25 Q50 14.0 13.3 12.9 12.8 17.3 111 96.5 66.3 60.5 72.6 33.8 8.75 QAverage 14.2 13.4 12.9 12.8 18.5 112 101 70.2 63.8 77.1 39.1 13.7 Q80 15.1 14.1 13.4 13.5 21.2 131 116 82.8 76.6 120.7 54.0 21.1   0 20 40 60 80 100 120 140 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecDischarge, cfs20th Percentile Monthly Flow 50th Percentile Monthly Flow Average Monthly Flow 80th Percentile Monthly Flow  30 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Table 3. Average Monthly Reservoir Inflows in cfs for Grant Lake Project Alternatives G-1 and G-2. Month Alternative G-1 Alternative G-2 Jan 60.9 62.6 Feb 54.9 56.5 Mar 35.2 36.2 Apr 35.9 37.0 May 198 203 Jun 203 209 Jul 108 111 Aug 94.5 97.3 Sep 125 128 Oct 144 148 Nov 93.1 95.8 Dec 55.1 56.7 Annual Average 101 104    31 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Table 4. Average Monthly Reservoir Inflows in cfs for Lake Elva Project Alternatives E-1 and E-2. Month Alternative E-1 Alternative E-2 Jan 16.2 14.2 Feb 15.3 13.4 Mar 14.8 12.9 Apr 14.6 12.8 May 21.2 18.5 Jun 129 112 Jul 115 101 Aug 80.3 70.2 Sep 73.0 63.8 Oct 88.2 77.1 Nov 44.8 39.1 Dec 15.7 13.7 Annual Average 52.4 46.2 Grant Lake Reservoir operations modeling revealed essentially identical water levels for operation of both Grant Lake Project Alternatives (Figure 7). There was about a 3% chance of spilling and about the same odds of shutting down due to lack of water over the 33 year analysis period.  32 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS    Figure 7. Grant Lake Project Alternative G-1 & Alternative G-2 Mean Monthly Reservoir Levels Lake Elva There was a significant difference in the performance of the two Lake Elva Project Alternatives with Alternative E-2's smaller reservoir spilling much more frequently and also depleting storage more frequently than Alternative E-1 (Figures 8 and 9). This is directly attributable to the large difference in storage capacity afforded by Alternative E-1's higher downstream dam. 480 485 490 495 500 505 510 DJFMAMJJASONDJ Wet Year Average Year Dry Year Min. Reservoir Level Max. Reservoir Level  33 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Figure 8. Lake Elva Project Alternative E-1 Mean Monthly Reservoir Levels.   Figure 9. Lake Elva Alternative E-2 Monthly Reservoir Levels for Wet, Average and Dry Years. 315 325 335 345 355 365 375 DJFMAMJJASONDJReservoir WaterSurface Elevation, Feet NAVD 88Average Year Wet year Max. Reservoir Level Dry Year Min. Reservoir Level 320 325 330 335 340 345 350 355 360 365 370 DJFMAMJJASONDJReservoir WaterSurface Elevation, Feet NAVD 88Average Year Wet Year Dry Year Max. Reservoir Level Min. Reservoir Level  34 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Energy Generation Output of the operations/generation model was averaged over the analysis period to determine mean monthly energy output. Formulae used to estimate losses for the hydraulic (power conduit), electro-mechanical (turbine/generator) and transmission systems are included in Appendix III for reference. Grant Lake Both Grant Lake Project Alternatives met more than 80 percent of NETC load during the September-December period (Table 5, Figure 10). Both alternatives met between 60 and 80 percent of NETC load during the remaining months of the year, with the lowest percentages occurring between April and August. Table 5. Mean Monthly and Mean Annual Energy Production1 for Grant Lake Project Alternatives G-1 and G-2 and Current NETC Monthly Demand in kWh. Month Current (2011) Demand Alternative G-1 Alternative G-2 Jan 1,583,256 1,251,194 1,259,841 Feb 1,359,060 1,085,087 1,090,690 Mar 1,530,960 1,169,716 1,109,125 Apr 1,454,390 984,607 933,170 May 1,516,040 1,071,182 1,015,212 Jun 1,657,720 1,194,065 1,186,908 Jul 2,018,020 1,310,923 1,337,556 Aug 1,591,640 1,310,755 1,337,753 Sep 1,364,340 1,267,205 1,293,422 Oct 1,474,975 1,303,896 1,338,933 Nov 1,456,621 1,258,547 1,282,715 Dec 1,585,790 1,281,020 1,290,325 Annual 18,592,812 14,320,762 14,727,225 1. Energy production values are net after instream flow releases.  35 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS    Figure 10. Mean Monthly Energy Generation and percent of Load Supplied by Grant Lake Project Alternatives G-1 and G-2. Lake Elva Energy generation from both Lake Elva Alternatives fell short of meeting NETC loads in all months by virtue of the limited installed capacity of the alternatives (Table 6, Figure 11). Of the two alternatives, Alternative E-1 provided the largest generation relative to load, especially during the May through August period. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 600,000  700,000  800,000  900,000  1,000,000  1,100,000  1,200,000  1,300,000  1,400,000  1,500,000  1,600,000  DJFMAMJJASONDJ % of Current Load Available from AlternativeMean  Monthly Energy Generation, kwhAlternative G‐1 Alternative G‐2 % of Load G‐1 % of Load G‐2  36 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Table 6. Mean Monthly and Mean Annual Energy Production1 for Lake Elva Project Alternatives E-1 and E-2 and Current NETC Monthly Demand in kWh. Month Current (2011) Demand Alternative E-1 Alternative E-2 Jan 1,583,256 637,603 640,526 Feb 1,359,060 587,589 573,081 Mar 1,530,960 591,454 569,885 Apr 1,454,390 593,715 507,276 May 1,516,040 526,731 384,437 Jun 1,657,720 521,912 284,518 Jul 2,018,020 636,145 650,181 Aug 1,591,640 651,968 668,195 Sep 1,364,340 635,835 649,729 Oct 1,474,975 660,231 673,144 Nov 1,456,621 643,089 652,268 Dec 1,585,790 646,139 668,816 Annual 18,592,812 7,442,284 6,947,626 1. Energy production values are net after instream flow releases.  37 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS    Figure 11. Mean Monthly Energy Generation and percent of Load Supplied by Lake Elva Project Alternatives E-1 and E-2. To better depict energy generation across a range of potential inflows, we calculated energy generation during wet, average and dry years (Table 7). For this analysis, the annual energy production from a wet year was defined as the value having a 20 percent annual probability of being equaled or exceeded while a dry year was defined as the amount of annual energy production that had an 80 percent annual probability of being equaled or exceeded. Lake Elva alternatives E-1 and E-2 showed 18% and 11% energy increases, respectively, between wet and dry years (See Table 7). Grant Lake alternatives G-1 and G-2 showed 25% and 25% energy increases, respectively between wet and dry years. This could indicate that the Grant Lake alternatives would benefit more from any future precipitation increases such as those possibly associated with climate change. 0% 10% 20% 30% 40% 50% 60% ‐ 100,000  200,000  300,000  400,000  500,000  600,000  700,000  800,000  DJFMAMJJASONDJ % of Current Load available from AlternativeMean  Monthly Energy Generation, kwhAlternative E‐1 Alternative E‐2 % Load E‐1 % Load E‐2  38 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Table 7. Annual Energy Production by DAHP Alternatives in kWh for Wet, Dry, Median and Average Years. Project Alternative Wet Year Median Year Average Year (exceedance %) Dry Year Grant Lake G-1 15,682,871 15,248,641 14,320,762 (33.8%) 12,590,182 Grant Lake G-2 16,147,613 15,676,275 14,727,225 (33.7%) 12,884,794 Lake Elva E-1 7,997,354 7,749,430 7,442,284 (30.9%) 6,788,666 Lake Elva E-2 7,153,396 7,064,208 6,947,626 (30.0%) 6,461,763 TASK 5. ECONOMIC ANALYSIS of ALTERNATIVES Construction and Finance Costs Generation Facilities Construction Costs Construction costs shown in this section are for generation facilities only. Construction costs for the transmission alternatives are in the following section. Grant Lake Project Generation Alternatives Grant Lake project Alternatives G-1 and G-2 were identical in configuration with the exception of the dam type and location. Alternative G-2 featured a concrete gravity dam versus the smaller embankment dam used in Alternative G-1. As such, the difference in cost between the two alternatives was almost entirely due to the difference between the different dam configurations. Cost differences among all other principal project features were negligible (Table 8).  39 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Table 8. Estimated Grant Lake Project Alternative Generation Facilities Construction Costs (in $2013). PROJECT FEATURE ALTERNATIVE G-1 ALTERNATE G-2 Mobilization, Camp and Construction Management. $7,227,340 $7,230,844 Access Road $4,155,000 $4,155,000 Dam; including Diversion, Foundation. Prep., Outlet works & Spillway $3,329,100 $5,640,000 Penstock, Intake & Appurtenant structures, incl. roadway $12,511,200 $12,511,200 Powerhouse and Switchgear $4,266,000 $4,266,000 Total Pre-contingency Generation System Cost $31,488,640 $33,803,044 Lake Elva Project Generation Alternatives Costs for Lake Elva Project alternatives E-1 and E-2 were essentially the same for all the major project features except for the dams and penstocks. The E-1 alternative’s large dam [225,000 cubic yards (CY) in volume] contributed significantly to the cost for this Alternative. The Alternative E-2 dam was an order of magnitude smaller (25,900 CY), but its penstock and access road were much longer (15,200 feet) than the penstock/access road for Alternative E-1. The longer penstock and access road for Alternative E-2 were significantly more costly than those for Alternative E-1. Even with this difference, however, Alternative E-1 remained significantly more costly than Alternative E-2, because of its much larger dam (Table 9).  40 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Table 9. Estimated Lake Elva Project Alternative Generation Facilities Construction Costs (in $2013). PROJECT FEATURE ALTERNATIVE E-1 ALTERNATIVE E-2 Mobilization, Camp and Construction Management. $7,011,680 $7,159,040 Access Road/ferry/landings $1,832,500 $1,832,500 Dam; incl. Diversion, Foundation. Prep., Outlet works & Spillway $11,010,000 $3,133,300 Penstock, Intake & Appurtenant structures, incl. roadway $6,589,902 $9,740,358 Powerhouse and Switchgear $3,626,000 $3,463,500 Total Pre-contingency Generation System Cost $30,070,082 $25,328,698 Transmission Alternative Costs Costs for the alternative transmission systems for the Grant Lake project differed primarily due to the differing lengths of the two routes. However, the Glacial Moraine Route would be constructed using the same construction access road used for construction of the generation components of the Grant Lake Project eliminating the need for an ice road. The elimination of the ice road costs and the Glacial Moraine Route’s shorter alignment results in a cost reduction of approximately $5.3M from the Park Boundary Route (Table 10). These Glacial Moraine Routes costs do not take into account the higher efficiency that would occur with a construction in summer instead of winter construction via an ice road; therefore, the stated cost reduction is conservative.  41 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Table 10. Estimated Grant Lake Project Alternative Transmission System Pre- Contingency Construction Costs (in $2013). Transmission Alternative Glacial Moraine Alternative Park Boundary Alternative T-Line to Aleknagik & upgrade existing line to 35 kV $16,005,916 $21,339,200 Costs for the alternative transmission systems for the Lake Elva project differed greatly due to the high cost of the submarine cable. Lengths of the two routes were similar but the submarine cable added nearly 27 million dollars in additional cost over the overhead route with no contingency applied (Table 11). Table 11. Estimated Lake Elva Project Alternative Transmission System Pre-Contingency Construction Costs (in $2013). Transmission Alternative Overland Route Submarine Route T-Line to Grant Lake Junction $11,877,600 $39,533,600 Total Capital Costs Total Project alternative capital costs were estimated as the sum of the costs of generation facilities with the cost of the preferred transmission system plus contingencies and short-term (construction) finance costs (Table 12). Detailed cost estimates which include unit costs and quantities are included in Appendix VI.  42 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Table 12. Total Estimated Capital Costs for Project Alternatives. Alternative G-1 Alternative G-2 Alternative E-1 Alternative E-2 Generation Facilities $31,488,640 $33,803,044 $30,070,082 $25,328,698 Transmission System $16,005,916 $16,005,916 $11,877,600 $11,877,600 Subtotal $47,494,556 $49,808,960 $41,947,682 $37,206,298 Contingency (25%) $11,873,639 $12,452,240 $10,486,921 $9,301,575 Construction Subtotal $59,368,195 $62,261,200 $52,434,603 $46,507,873 Short-term Finance Cost $6,124,200 $6,422,632 $5,408,957 $4,797,578 Total Estimated Capital Cost $65,492,396 $68,683,832 $57,843,560 $51,305,451 The Park Boundary Transmission Alternative would add an estimated $7,354,306 if it were used instead of the Glacial Moraine Alternative for either the Grant Lake Project Generation Alternatives G-1 or G-2. The use of the Park Boundary Alternative would result in Total Estimated Capital Costs of $72,846,702 and $76,038,139 for Generation Alternatives G-1 and G- 2 respectively (See Appendix VI). The use of the Park Boundary Transmission Alternative would not affect the cost of either Lake Elva Project Alternative because the location of the Grant Lake-Lake Elva Transmission junction would be the same for either transmission alternative. O&M Costs Annual O&M costs estimated as the total of the cost components and factors presented above in the methods section totaled approximately $580,000 ($2013) for the Grant Lake Alternative G-1 (Table 13). This cost equated to $0.04/kWh and was assumed to apply to the Grant Lake Alternative G-2. The inclusion of the Lake Elva Project added an additional 50% ($0.02/kWh)  43 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  in annual O&M costs to the Grant Lake Project which results in a total annual O&M cost of $0.06/kWh for the combined DAHP (Table 14). These O&M costs were assumed to be applicable to either the Glacial Moraine or Park Boundary Transmission Alternatives. Table 13. Annual O&M Costs for Grant Lake Alternative G-1. Operations Alternative G-1 Labor (1 FTE) $250,000 Transportation (24 trips) $72,000 Equipment, materials and supplies $25,000 Insurance $98,000 Subtotal $445,000 Maintenance Intake $20,000 SCADA System $10,000 T-Line (Plant to Aleknagik) $75,000 Misc. $30,000 Subtotal $135,000 TOTAL Annual O & M $580,000 ($0.04/kWh)  44 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Table 14. Annual O&M Costs for Grant Lake and Lake Elva Project Alternatives. Alternative Average Annual Energy Production, kWh O & M Cost, $2013/kWh Annual O&M Costs, $2013/kWh Grant Lake G-1 14,320,762 $0.04 $580k Grant Lake G-2 14,727,225 $0.04 $590k Lake Elva E-1 7,458,848 $0.02* $150k* Lake Elva E-2 6,989,552 $0.02* $140k* *Incremental O&M cost when combined with Grant Lake Project operations. BENEFIT/COST ANALYSIS Project economic analysis was completed with the following base economic parameters. Finance Rate/Discount Rate: 5.0% Project Finance Period; 30 years Economic Analysis Period (Service life): 40 years Current Diesel Fuel Price (2013): $3.42/gal. Annual Fuel-oil Price Escalation Rate: 3.0% Fuel Price @ 2018 start-up: $3.96 Annual Escalation Rate on Non-fuel-oil items: 1.5% NETC Annual Load Growth: 0.5% Estimated Startup Year: 2018 Project Benefits Annual Net Benefits and Total Net Benefits over the analysis period for the Grant Lake Project Alternatives were nearly equal due to the two projects nearly-identical average annual energy output and O&M costs (Table 15).  45 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Table 15. Grant Lake Project Annual Diesel Avoidance and Project Benefits at start-up. Item Alternative G-1 Alternative G-2 Annual Diesel Avoidance (Gallons) 967,619 995,083 Annual Diesel Avoidance Benefits at 2018 Start-up $3,836,336 $3,945,222 Annual O&M Costs at 2018 Start-up $617,101 $634,616 Annual Net Benefits at 2018 Start-up $3,219,235 $3,310,606 Total Net Project Benefits at Start-up* $89,848,579 $92,398,729 *Total Net Project Benefits over analysis period discounted to start-up. Annual net benefits for the Lake Elva Project alternatives were similar to each other with the larger, more expensive Alternative E-1 producing approximately 7% more annual net benefits than Alternative E-2 (Table 16). Both Lake Elva Alternatives were burdened with significant excess capacity in 2018 which reduced Project Benefits.  46 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Table 16. Lake Elva Project Diesel Avoidance and Annual Project Benefits at 2018 start-up. Item Alternative E-1 Alternative E-2 Annual Diesel Avoidance at full utilization (gallons) 502,857 469,434 Annual Diesel-equivalent Excess Energy at 2018 Start-up (gallons) 169,570 136,148 Annual Diesel-equivalent Energy Sales at 2018 Start-up (gallons) 333,287 333,287 Annual Diesel Avoidance Benefits at 2018 Start-up $1,321,387 $1,321,387 Annual Supplemental O&M Costs at 2018 Start- up $160,349 $149,691 Annual Net Benefits $1,161,038 $1,171,696 Total Project Benefits* $42,882,929 $41,903,280 *Total Net Project Benefits over analysis period discounted to start-up. Benefit-Cost Ratios Benefit-Cost ratios provide an index of economic feasibility for the conditions analyzed. Both Grant Lake project alternatives show a positive B/C indicating benefits exceed costs. The addition of the Lake Elva project appears economically infeasible for the economic conditions analyzed (Table 17).  47 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Table 17. B/C Ratios for Grant Lake and Lake Elva Project Alternatives. Alternative G-1 G-2 E-1* E-2* Total Net Project Benefits $89,848,579 $92,398,729 $42,882,929 $41,903,280 Total Project Costs $65,492,396 $68,683,832 $57,843,560 $51,305,451 B/C 1.37 1.35 0.74 0.82 Alternative G-1 used in this analysis. Results are similar using Alternative G-2. *Supplemental to the Grant Lake Project. The use of the Park Boundary Alternative would reduce B/Cs to 1.23 and 1.18 for Generation Alternatives G-1 and G-2 respectively. This indicates that the Grant Lake Project would still be economically feasible for the more expensive Park Boundary Transmission Alternative under the conditions analyzed. The use of the Park Boundary Transmission Alternative would not affect the cost of either Lake Elva Project Alternative and therefore have no effect on the B/Cs of those Alternatives. Projected Cost of Project Debt Service The cost of energy generation was estimated for the Grant Lake Project alternatives with supplemental diesel-electric generation and for the combined DAHP with alternatives E-1 and E- 2 as a cost per kWh. Annual debt service costs, which are substituted for fuel costs, for the Grant Lake Alternatives are projected to be approximately $4.3 to $4.5M at 2018 start-up. The addition of the Lake Elva Alternatives at that time would add another $3.3 to $3.8M in annual debt service depending on the alternative. Total debt service on a kWh basis is approximately 30 cents for either Grant Lake Alternative. The addition of the Lake Elva Project raises DAHP debt service cost to about 40 to 42 cents per kWh for the combined DAHP Project depending on the Alternative (Table 18).  48 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Table 18. Long-term Debt Service on Capital for Grant Lake and Lake Elva Project Alternatives. Alternative G-1 G-2 DAHP G-1 & E-1* DAHP G-1 & E-2* Total Capital Cost $65,492,396 $68,683,832 $57,843,560 $41,903,280 Annual Debt Service at start- up $4,260,374 $4,467,982 $3,762,807 $3,337,493 Combined DAHP Debt Service at start- up $4,260,374 $4,467,982 $8,023,181 $7,597,867 Projected Hydroelectric Sales* at start- up, kWh 14,320,762 14,727,225 18,494,226 18,494,226 Projected Debt Service Cost at Startup*, $/kWh $0.2975 $0.3034 $0.4338 $0.4108 * Projected 2018 Load of 18,871,659 kWh. Diesel Electric estimated to provide 2% of annual load for peak demands with combined DAHP. Cost of Energy (At 2018 Startup) The Grant Lake Project was projected to have electric costs at start-up that are approximately equal to the projected 100% diesel-electric generation scenario for the first year of operation. The addition of the Lake Elva Project was found to increase costs by approximately 30% compared to the projected diesel-electric generation scenario (Table 19) for a 2018 start-up concurrent with the Grant Lake Project.  49 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Table 19. Estimated Cost of Energy per kWh at 2018 Startup. Alternative Component Cost G-1 G-2 DAHP G-1 & E-1 DAHP G-1 & E-2 Long-term Debt service $0.2975 $0.3034 $0.4338 $0.4108 O&M $0.0431 $0.0431 $0.0647 $0.0647 Distribution $0.0215 $0.0215 $0.0215 $0.0215 General & Administrative $0.0794 $0.0794 $0.0794 $0.0794 Cost of Hydroelectric Energy $0.4415 $0.4474 $0.5768 $0.5532 Cost of Supplemental Diesel-Electric Energy** $0.4663 $0.4692 $0.7902 $0.7902 % Load by Hydro (2018) 75.9% 78.0% 98%# 98%# Cost of Blended Hydro-Diesel Energy $0.4475 $0.4522 $0.5811 $0.5580 Cost for 100% Diesel-electric Energy** $0.4441 $0.4441 $0.4441 $0.4441 Change from 100% Diesel- Electric +0.77% +1.8% +31%* +26%* * Surplus Capacity exists at 2018 start-up assuming 0.5% load growth. ** Supplemental Diesel-electric exceeds 100% Diesel-electric due to constant storage costs apportioned over lower diesel-electric sales. # 2% of Annual demand estimated from diesel-electric to meet peak loads.  50 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  The large increase in rates for the Lake Elva project is reflective of both Alternatives’ high development costs, their small watersheds and the excess capacity that would be brought to the NETC market as a supplemental energy source to the Grant Lake project. Energy generation from hydroelectric production has a stabilizing effect on electric rates when compared to diesel generation, because the cost of Project debt service is substituted for fuel oil costs as the major component in the cost of energy generation. Diesel fuel costs currently make up approximately 80% of NETC’s generation outlays, and are subject to sometimes large price swings over yearly or even monthly timeframes. These volatile diesel costs would be largely replaced by the fixed cost of debt service. Sensitivity Analysis Inputs to the energy generation and economic analysis were varied independently to assess their effect on the overall economic feasibility of the project. Input parameters analyzed included total project costs, discount rate, annual fuel escalation rate and annual load growth. Grant Lake Project Grant Lake Project Alternatives G-1 and G-2 had positive B/C ratios for all variables considered within the ranges examined with the exception of high discount rates (> 7%). Marginal capital costs, $90M and $92 for Alternatives G-1 and G-2 respectively, exceeded these Alternative’s respective estimated capital costs by over 37% for both alternatives (Table 20).  51 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Table 20. Alternatives G-1 & G-2. Sensitivity Analysis of Selected Project Parameters. Parameter Base Value (G-1 / G-2) Range Evaluated Resulting B/C Range (G-1 / G-2) Marginal Value (B/C = 1) (G-1 / G-2) Total Capital Cost $65,492,396 / $68,683,832 ±30% 1.06 to 1.96 / 1.03 to 1.92 $89,848,579 / $92,398,729 Annual Discount Rate 5.0% 1.5% to 8.0% 2.75 to 0.86 / 2.69 to 0.85 6.95% / 6.8% Annual Fuel Escalation Rate 3.0% 0 to 6.0% 0.67 to 2.92 / 0.65 to 2.86 1.6 % / 1.7% Annual O&M $0.04/kWh $0.02 to $0.10/kWh 1.47 to 1.07/ 1.40 to 1.05 $0.1140/kWh / $0.1100/kWh Benefits Period 40 years 30 to 50 1.11 to 1.44 / 1.09 to 1.56 26 years / 27 years Annual Load Growth 0.5% N/A* N/A* N/A* * No excess capacity. Both Lake Elva project alternatives were found to have a marginal B/C only with substantial variance of their input parameters from their base condition. For Alternative E-1 to be marginal, i.e., B/C = 1.0, the project’s Total Capital Costs would have to be over 25% less than estimated. Similarly, other parameters would need to be at very high levels, e.g., annual fuel escalation at approximately 4%, etc. in order to make marginal economic conditions for the project at a 2018 start-up (Table 21).  52 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Table 21. Alternative E-1 & E-2. Sensitivity Analysis of Selected Project Parameters. Parameter Base Value (E-1 / E-2) Range Evaluated Resulting B/C Range (E-1 / E-2) Marginal Value (B/C = 1) (E-1 / E-2) Total Capital Cost $57,843,560/ $51,305,451 ±30% 0.57 to 1.06 / 0.63 to 1.17 $42,882,929/ $41,903,280 Annual Discount Rate 5.0% 1.5% to 8.0% 0.45 to 1.56 / 0.45 to 1.69 0.50% / 1.15% Annual Fuel Escalation Rate 3.0% 0 to 6.0% 0.36 to 1.60 / 0.41 to 1.74 3.8% / 4.2% Annual O&M* $0.02/kWh $0.01 - $0.10/kWh 0.51 to 0.77/ 0.57 to 0.85 N/A / N/A Benefits Period 40 years 30 to 50 0.58 to 0.88 / 0.65 to 0.96 61 years / 54 years Annual Load Growth 0.5% 0 to 4% 0.47 to 0.87/ 0.54 to 0.91 N/A / N/A Alternative G-1 used in this analysis. Results are similar using Alternative G-2. *O&M costs are supplemental to the Grant Lake Project O&M.   The lower B/C ratios of the Lake Elva project are in large part due to the excess capacity that this project brings to the system at the current demand forecast of 0.5% annual load growth.  53 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  ENVIRONMENTAL CONSIDERATIONS In addition to engineering and economic factors, there are several environmental issues which might influence feasibility. Experience in Alaska has shown that resource-related issues can affect both project configuration and operation. Following is a list of resource-specific considerations as known at this time. Further consultation with resource agencies will better define these issues, and likely add to the list as well. FISHERIES and AQUATIC RESOURCES Grant Lake Project Of the two Projects, the Grant Lake Project has the greater fisheries resource impact potential, related primarily to the value of Grant River as a sockeye spawning location. Two years of detailed study has shown that Grant River supports spawning for as many as 10,000 sockeye salmon each year. At this time, the two most likely sockeye salmon issues are: 1. Instream flow related to the amount of habitat available for various salmon life stages under the with-project flow regimes, both above and below the powerhouse location. Determination of final instream flow requirements is a critical factor in project feasibility because of the potential for lost revenue due to instream flow release requirements which conflict with optimal generation. 2. Powerhouse location, related to the need to place the powerhouse at a point which impacts the fewest spawning or incubating fish. Powerhouse location affects feasibility through potential loss of head and length of the penstock. In addition to Grant River impacts, there are some concerns for aquatic resources in Grant Lake. These include water quality impacts related to 1) water temperature at the intake which in turn affects Grant River water temperature below the powerhouse and 2) potential for disruption of the mercury compounds in the bottom of Grant Lake. This second issue has been deemed unlikely because no methyl mercury was found in sampling during 2011. Neither of the Grant Lake issues are likely to influence overall project feasibility, but this will not be known until after consultation with resource agencies.  54 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Lake Elva Project Lake Elva and Elva Creek, based on studies conducted in 2012, have far less potential for salmon impacts and resultant effects on project feasibility. Salmon were shown to ascend Elva Creek only a few hundred feet until reaching impassable stream conditions. Studies at Lake Elva showed only minimal fish populations with no salmonid or other game species. SCENIC/AESTHETIC RESOURCES Scenic values in WTSP are exceptionally high and represent one of the major attributes of the park purpose. Scenic and aesthetic values are high at both projects and along the transmission/access routes. Because of this, it will be necessary to consult with DPOR on details of all project features, both permanent and temporary. Of particular concern are access roads, transmission lines and dams. If these features are to be approved by DPOR, extensive consultation will be required to determine their exact locations and final appearance as well as the management plans necessary to maintain these attributes. WILDLIFE/BOTANICAL Wildlife Resources Grant Lake Project Grant Lake wildlife resources are diverse and range from effects on aquatic mammals to effects on large game animals, particularly moose. The primary potential for impact would be during the construction period, and would relate to disturbance from equipment movement, human activity and blasting. These actions would likely disturb the moose hunting activity from various lakeside camps which are established each year. This might cause suspension of construction or access during a portion of the critical snow-free construction period. Water level fluctuation might also affect aquatic mammals such as beavers and otters, with potential for limitation lake level fluctuation primarily during the open water season. Lake Elva Project Lake Elva also supports a good population of moose although it is not known to be used as much as Grant Lake as a base for hunting. Previous studies (Dames & Moore, 1980) identified moose and brown bear habitat in the upper Elva Creek above Lake Elva and the reach below the lake. Current wildlife surveys at or near Lake Elva/Elva Creek have not been as extensive as those  55 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  around Grant Lake, and it remains for more detailed studies and consultation with agencies to determine a current list of wildlife related impacts at the Lake Elva Project. Transmission/Access Roads Wildlife impacts might also be associated with the building and operation of the access roads to both Lake Elva and Grant Lake. Activity on the roads or waterways might disturb animal movements and/or migrations. Transmission line routes might intersect areas of important wildlife habitat or life history requirements, necessitating re-routing the lines. Botanical Resources Botanical resources in all construction areas, potentially-inundated areas, and along the transmission/access routes may include rare, endangered or sensitive plants. Prior to construction of any project feature, a detailed plant survey will be required, results of which might require repositioning of project features or realignment of a transmission line or access road. If such plants are found in a potentially-inundated area, it may be necessary to re-establish them in a suitable area. CULTURAL RESOURCES Similar to botanical resources, prior to any ground-disturbance, it will be necessary to conduct a detailed survey for cultural or historical resources. Preliminary cultural resources surveys conducted in 2011 and 2012 have shown low likelihood of encountering such resources. A detailed cultural resources management plan will be required prior to construction, and, as with botanical resources, actions may be necessary to avoid loss of important cultural resources. RECREATION RESOURCES Although overall numbers of visitors are small relative to more accessible state and federal parks in Alaska, WTSP is known to offer some of the highest value recreation in the state. Among the attributes sought by visitors to WTSP are the largely unspoiled setting and lack of disturbance from other recreationists and commercial interests. For these reasons, disturbance associated with construction of the DAHP is expected to have a major effect on the recreation experience near the projects. These and other recreation impacts might affect feasibility through the need to limit construction or access during certain high-use  56 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  periods of the summer, reducing an already short construction season. As with all other resource issues, consultation with resource agencies will be required before decisions may be made. FERC LICENSING and STATE and FEDERAL PERMITTING Because the project is proceeding under FERC jurisdiction, development of the DAHP will require a federal license to be issued. The FERC license in turn requires completion of the National Environmental Policy Act (NEPA) process. The NEPA process is based on either and Environmental Assessment (EA) or an Environmental Impact Statement (EIS) for both of which FERC is the federal lead agency. Both EA's and EIS's developed under FERC guidance contain a list of proposed mitigation measures which, after approval through resource agency consultation, become Articles to the FERC license. These mitigation measures and license Articles may impose significant constraints on construction and operation of the project, all of which may affect project feasibility. In addition, several state and federal permits, including those from ADNR, US Army Corps of Engineers (USACOE), ADF&G, and the State Historic Preservation Office will impose more constraints in addition or similar to those in the FERC license. A list of anticipated permits required to develop the DAHP is included in Appendix VII. LAND USE A private inholding (USS 12063) exists at the outlet of Grant Lake which will require landowner coordination for construction and operation of the Grant Lake project. An easement from the landowner or outright land acquisition will be necessary to construct and operate the Grant Lake project. The Lake Elva project is burdened by the presence of a conservation easement on two parcels (Lots 1 & 2, USS 12016) owned by the state of Alaska that are located at the mouth of the Elva Creek. Limited land records research suggests that this conservation easement may be able to be vacated through compensation or exchange for lands of a “reasonably equivalent location with public purposes which meet or exceed those of the Property;” Maps showing the two parcels at the mouth of Elva Creek and the parcel at Little Grant Lake outlet are provided in Appendix VIII.  57 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  SUMMARY of ENVIRONMENTAL CONSIDERATIONS At this time, the environmental considerations deemed most likely to affect Project feasibility are: • DPOR policy regarding construction of an access road and transmission line in the Park under the Glacial Moraine Alternative; • Effects of instream flow requirements in Grant River as they affect sockeye salmon spawning, incubation and early rearing; • The presence of conservation easements on state lands at the powerhouse site at mouth of Elva Creek and of private inholdings at Grant Lake outlet. The Grant Lake inholding which will require negotiated agreement or acquisition to construct and operate the project. The lots at the mouth of Elva Creek will require a land exchange, vacation of the easements or other mechanism to allow development of the project. • Effects of construction activity and permanent features of both projects on wildlife movement and migration; • Potential existence of botanical species of concern and significant cultural resources within the area of potential effect, or all potential ground disturbance areas; • Effects, related to all of the above, of FERC license Articles and other permit conditions on construction and operation of the Project. DISCUSSION GENERATION COMPONENTS and PROJECT ECONOMICS The following discussion reflects results of conceptual-level engineering and economic analyses, and represents general guidelines. More extensive data and information will be necessary in most analysis areas, as suggested in the following recommendations.  58 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Currently available data and analyses demonstrate that both Grant Lake Project Alternatives G-1 and G-2 would be economically feasible with either transmission alternative while neither Lake Elva Project Alternative would be feasible for 2018 development. Total capital costs, including a 25% contingency and short-term financing to avoid a rate-shock during the construction period before power production, for the various alternatives were: G-1: $65,492,396 G-2: $68,683,832 E-1: $57,843,560 E-2: $51,305,451 Costs were considered insignificantly different between the Grant Lake Alternatives; cost for Lake Elva Alternative E-2 was considerably less than for Alternative E-1 due to the much smaller dam. This smaller dam, however, left the Project much more susceptible to both spilling and suspension of operation because of the reduced reservoir active storage capacity. Annual energy output from the Grant Lake Alternatives was approximately 14.5 GWh during an average precipitation year. This energy would annually displace approximately 1 million gallons of diesel fuel consumption at current NETC plant efficiency. This diesel avoidance would be valued at $3.5M per year at current NETC delivered diesel prices. Annual energy output from Lake Elva Alternates E-1 and E-2 were approximately 7.4 and 6.9 GWh, respectively. This energy would annually displace about 0.48- 0.5 million gallons of diesel fuel at an avoided cost of about $1.7M per year at current prices. B/C ratios for both Grant Lake Alternatives were essentially equal at about 1.36 under established conditions. Similarly, B/C Ratios for Lake Elva Alternatives E-1 and E-2 were quite close in value at about 0.74 and 0.82, respectively. These values reflected development of the Lake Elva Project supplemental to the Grant Lake Project. This supplemental nature results in savings from "piggy-backing" the Lake Elva Project’s costs for access roads, upgrades to the existing system as well as a portion of the Project’s transmission system on those from the Grant Lake Project.  59 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Sensitivity analysis showed that the Grant Lake project B/C ratio generally remained at or above 1.0 even under rather extreme values of tested parameters. The Lake Elva Project would result in a moderate increase in NETC electric rates if it were developed at the same time as the Grant Lake project. This rate increase would result from the need to service the additional debt that the Lake Elva Project would bring without compensating generation revenue for several years into the project life. Rates would increase over time but at a much lower and more predictable rate than they would with all diesel-electric generation. This would be due to the substitution of non-escalating debt service (fixed interest payments) for the highly-volatile diesel fuel outlay for the largest component of the generation cost. GEOLOGIC and GEOTECHNICAL SURVEYS Final selection of dam location and type at both the Grant Lake and Lake Elva sites will depend heavily on surface and sub-surface conditions. For the Grant Lake project, if suitable conditions were found near the lake outlet, it would facilitate construction of a significantly lower cost dam at the outlet of Little Grant Lake (Alternative G-1). Similarly, for the Lake Elva Project, the feasibility of the more cost-effective downstream high dam (Alternative E-1) would be highly dependent on geotechnical conditions suitable for the large gravity-type dam. TRANSMISSION and ACCESS ROUTING The proposed Glacial Moraine transmission/access route occupies relatively high ground on a series of terminal moraines just inside WTSP and largely avoids problematic muskeg areas found along the park’s eastern boundary. The overland (as opposed to submarine) transmission route to Lake Elva generating facilities would offer a substantial cost savings. Consistency of the various transmission elements with DPOR policies will be a major factor in final feasibility of the both the Glacial Moraine and Lake Elva overland transmission routes. ENVIRONMENTAL CONSIDERATIONS Due to the high fisheries, scenic and recreational values in the potentially-affected area, environmental constraints may well become the most influential factors determining Project feasibility. The FERC licensing process requires extensive consultation with state and federal  60 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  resource agencies and affected Indian tribes to determine studies, impacts and mitigation measures. Costs associated with further studies and mitigation measures must be added to overall project cost and may, at a certain point, significantly influence feasibility. Consultation and negotiation of mitigation measures and other conditions will proceed over the next two years, after which time it will be possible to more precisely estimate their effect on Project feasibility. The Projects are far enough apart geographically that studies on each Project would be largely independent. Therefore, it is expected that licensing of the two Projects at the same time would realize few cost savings relative to overlapping travel and study team efficiency. RECOMMENDATIONS • Conduct a load growth and rate study to assess in more detail the effects of load growth and fuel escalation on the feasibility of the Grant Lake Project. • Conduct a study assessing joint operations of wind and DAHP generation. At least one study (Marsh Creek et al., 2013) has examined this topic, but a future study should examine the wind-hydro relationship using Alternatives from this report and the most recent wind energy proposals. • Determine during the next licensing phase, whether to proceed with the Grant Lake Project only or to include the Lake Elva Project in licensing efforts. The current analysis suggests that the Lake Elva Project would be feasible only if and when NETC load grows to the point at which that Project's generation could be fully utilized. The decision to proceed with the Grant Lake Project only would focus resources on that Project and expedite the licensing process. • Continue the FERC licensing process beginning with Preferred Alternative for the Grant Lake Project from this report or others developed during the licensing process. FERC license application requirements will advance the design and operations proposals for the Project including both generation and transmission facilities. Licensing should also  61 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  require detailed analysis of staged development and the potential for a joint wind-DAHP system. • Consult with DPOR on the Park’s requirements for restoration of the Glacial Moraine access road and mitigation measures necessary for construction and operation of the transmission line in WTSP from the Grant Lake Project powerhouse for either the Glacial Moraine or Park Boundary Transmission Alternatives. Both of these Transmission Alternatives feature some length of their respective alignments within WTSP. • Conduct more extensive geotechnical surveys, particularly at the dam, penstock and powerhouse location(s) of preferred Alternatives. Such investigations will necessarily require special use permits from DPOR. More invasive investigation, e.g., drilling and/or test pits, will likely have to be conducted under strict constraints. Planning for this study will need to be comprehensive and timely. • Conduct field verification of past soils and shallow subsurface work, to investigate the availability of suitable materials for dam construction in the vicinity of dam sites and along all proposed generation features of the project as well as along the proposed access road. • Increase efforts of hydrologic studies during winter to better understand and quantify low flows particularly at times critical to salmonid incubation and emergence. • Analyze the potential for seepage that might result from raising lake levels, particularly through the glacial moraine along Grant Lake’s northwestern shore. Such a seepage analysis may require piezometers or other field measurements of subsurface conditions to determine the potential for lost energy generation. • Continue environmental studies in support of the licensing and permitting processes. Fisheries studies, particularly those addressing instream flows for salmon in Grant River, should be conducted as soon as possible. Studies already underway, such as those for cultural, wildlife, water quality and hydrology should be completed while studies of recreation and aesthetics should begin as soon as possible.  62 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  • Investigate land ownership restrictions to further review and assess potential impacts as it relates to project development. Right-of-Way or easements will be required from the property owner at Grant Lake outlet for project construction and operation of either Alternatives G-1 or G-2. • Develop an outreach program, with informational materials and public presentations to educate project stakeholders, potential financiers, and the general public about the project. Such an effort should include a project web site. Such a program can help to improve public awareness of the project’s economic and environmental benefits, increase public support and help secure financing for the project.  63 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  REFERENCES Alaska Power Authority. Findings and Recommendations: Bristol Bay Power Plan. 1986. Alaska Power Authority. Lake Elva Hydroelectric Project Feasibility Study. Findings and Recommendations. 1981. http://akenergyinventory.org/hyd/SSH-1981-0422.pdf R.W. Beck & Associates, Inc., Lake Elva Project Detailed Feasibility Analysis. Alaska Power Authority. April 1981.  http://akenergyinventory.org/hyd/SSH‐1981‐0127.pdf Robert W. Retherford Associates, A Division of International Engineering Company, Inc. Reconnaissance Study of the Lake Elva and Other Hydroelectric Power Potential in the Dillingham Area. Supplemental Report. Anchorage, Alaska. Alaska Power Authority. June 1980. http://akenergyinventory.org/hyd/SSH-1980-0186.pdf Robert W. Retherford Associates, A Division of International Engineering Company, Inc. Reconnaissance Study of the Lake Elva and Alternate Hydroelectric Power Potentials in the Dillingham Area. Anchorage, Alaska. Alaska Power Authority. January 1980. http://akenergyinventory.org/hyd/SSH-1980-0188.pdf Robert W. Retherford Associates, A Division of International Engineering Company, Inc., Bristol Bay Energy and Electric Power Potential. Prepared for United States Department of Energy. December 1979. http://akenergyinventory.org/hyd/SSH-1979-0075.pdf Alaska Power and Telephone, Inc. Klawock, Alaska, Conversation with Prince of Wales Division Electric Production Manager re: Black Bear Lake Project O&M costs and factors. April 2013. Cordova Electric Cooperative. Cordova, Alaska, Conversation with General Manager Re: Humpback Creek project O&M costs and factors. April 2013. EES Consulting. Review of Dillingham Area Hydro Projects. Nushagak Area Hydroelectric Project Feasibility Draft Report. Nushagak Electric and Telephone Cooperative (NETC). 2009. Marsh Creek, LLC and Coffman Engineers, Inc. Wind, Hydro & Heat Recovery Analysis Report. NETC. May 2013. HDR Engineering, Inc. Tazimina River Hydroelectric Project Feasibility Study. Iliamna- Newhalen-Nondalton Electrical Co-Op (INNEC). May 1991. http://akenergyinventory.org/hyd/SSH‐1991‐0190.pdf  64 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Nushagak Electric and Telephone Cooperative. Information Document. Nushagak Area Hydroelectric Project Lake Elva and Grant Lake Projects Near Dillingham, Alaska. April 2009. NETC. “Region 5 Dillingham, Snake Lake, Nushagak Bay Summary of Resources and Uses in the Region” Chapter 3 – Region 5: Dillingham, Snake Lake, Nushagak Bay, Bristol Bay Area Plan. April 2005. Nushagak Electric Cooperative, Inc. (now NETC). Demand Management Project. Before the Federal Energy Administration. Feb 1975. http://akenergyinventory.org/hyd/SSH‐1975‐ 0187.pdf Sachin Mishra, S. K. Singal, and D. K. Khatod. Costing of a Small Hydropower Projects. IACSIT International Journal of Engineering and Technology, Vol. 4, No. 3, June 2013. www.ijetch.org/papers/357‐P013.pdf Stone & Webster Engineering Corporation. Feasibility Report Tazimina River Hydroelectric Project. Alaska Power Authority. Mar 1987. http://akenergyinventory.org/hyd/SSH‐1991‐ 0190.pdf  Tennant, D. L., 1975. Instream flow regimens for fish, wildlife, recreation and related environmental resources. U.S. Fish and Wildlife Service, Billings, Mont. University of Alaska, Institute of Social and Economic Research. Electric Power in Alaska, 1976-1995, 1976. http://akenergyinventory.org/hyd/SSH‐1976‐0393.pdf United States Geological Survey (USGS) Gaging Station Records. “USGS 15302800 Grant LK Outlet NR Aleknagik AK” National Water Information System: Web Interface. http://waterdata.usgs.gov/nwis/nwisman/?site_no=15302800&agency_cd=USGS. United States Geological Survey (USGS) Gaging Station Records. USGS Station No. 15302800. Elva Lake Outlet near Aleknagik, Alaska. National Water Information System: Web Interface. http://waterdata.usgs.gov/nwis/nwisman/?site_no=15302840&agency_cd=USGS United States Geological Survey (USGS) Gaging Station Records. USGS Station No. 15302000 Nuyakuk River near Dillingham, Alaska. National Water Information System: Web Interface. http://waterdata.usgs.gov/nwis/nwisman/?site_no=15302000&agency_cd=USGS United States Geological Survey (USGS) Streamflow Measurement Records. USGS Station No. 15302800. Grant Lake Outlet near Aleknagik, Alaska. National Water Information System: Web Interface. http://waterdata.usgs.gov/nwis/measurements/?site_no=15302800  65 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  United States Geological Survey (USGS) Streamflow Measurement Records. USGS Station No. 15302800. Elva Lake Outlet near Aleknagik, Alaska. National Water Information System: Web Interface. http://waterdata.usgs.gov/nwis/measurements/?site_no=15302840. Walsh, Patrick, Kaufman, Darrell, and Liedberg, Paul. Inventory of the Ahklun Mountain Glaciers, Southwest Alaska. Alaska Refuges Report 07-004. Dillingham, Alaska. U.S. Fish & Wildlife Service.Togiak National Wildlife Refuge. May 2007. Western Regional Climate Center for the Lake Nerka, Alaska Station 505374 Period of Record Monthly Climate Summary, Period of Record : 1/ 9/1952 to 5/31/1965. http://www.wrcc.dri.edu/cgi‐bin/cliMAIN.pl?ak5374. Zaheer, Syed H., Eng, P. and Fallows, Craig. Document Project Readiness by Estimate Class Using PDRI.2011 AACE International Transactions, EST. 604.  Appendix I‐1 DRAFT DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  APPENDIX I PROJECT SUMMARY DATA TABLE AI-1. Grant Lake Project Summary Data.Grant Lake Project Alternative G-1 (SM 7.5 Dam) Grant Lake Alternative G-2 (SM 6.5 Dam)HydrologyHydrologyWatershed 35.5 Square miles Watershed 36.5 Square milesAverage Annual Runoff 101 cfs Average Annual Runoff 104.3 cfsAverage Annual Runoff per square mile 2.85 csm Average Annual Runoff per square mile 2.85 csmAverage Annual Net Precipitation 38.6 inches Average Annual Net Precipitation 38.6 inchesReservoirReservoirActive Storage Capacity 43.4 1000 AF Active Storage Capacity 46.8 1000 AFFull Reservoir Water Surface Elevation 508 feet NAVD 88 Full Reservoir Water Surface Elevation 508 feet NAVD 88Full Reservoir Water Surface Area 2,558 Acres Full Reservoir Water Surface Area 2,659 AcresMinimum Water Surface Elevation 488 feet NAVD 88 Minimum Water Surface Elevation 488 feet NAVD 88Average Water Surface Elevation 498.2 feet NAVD 88 Average Water Surface Elevation 498.1 feet NAVD 88Average Annual Reservoir Inflow 101.2 cfs Average Annual Reservoir Inflow 104.3 cfsAverage Instream Maintenance Release 17.2 cfs Average Instream Maintenance Release 17.7 cfsDam & SpillwayDam & SpillwayDam Location SM 7.5 Dam Location SM 6.7Dam Type Rockfill with impermeable membrane liner Dam Type Concrete GravityDam Height 24feetDam Height 60feetCrest Elevation 514 feet NAVD 88 Crest Elevation 508 feet NAVD 88Crest Length600feet Crest Length120feetSpillway Uncontrolled. Auxiliary on left bank of dam Spillway Type/Location Uncontrolled. Integral with Dam (Ogee)PowerhousePowerhousePowerhouse Location, Stream mile (SM) above Lake Kulik (SM 0) 3.7 SM Powerhouse Location, Stream mile (SM) above Lake Kulik (SM 0)3.7 SMPowerhouse Elevation 192 feet NAVD 88 Powerhouse Elevation 192 feet NAVD 88Installed Capacity 1.89 MW Installed Capacity 1.95 MWTurbine TypeFrancis or Turgo Turbine TypeFrancis or TurgoProject Power Flow 84.0 cfs Project Power Flow 86.7 cfsInstream Flow Maintenance Release 17.0 cfs Instream Flow Maintenance Release 17.7 cfsStatic Head 316.0 feet Static Head 316.0 feetNet Head 304.0 feet Net Head 304.0 feetTransmission LineTransmission LineType 34.5 kilovolt 3-Phase ACSR Single-pole Overhead Type 34.5 kilovolt 3-Phase ACSR Single-pole OverheadLength, Powerhouse to Aleknagik 38.0 miles Length, Powerhouse to Aleknagik 38.0 milesUpgrade, Existing System, 34.5 kV 3Ø to Waskey Rd. 15.5 miles Upgrade, Existing System, 34.5 kV 3Ø to Waskey Rd. 15.5 milesUpgrade, Existing System, 12.5 kV 1Ø Waskey Rd. to Plant 5.6 miles Upgrade, Existing System, 12.5 kV 1Ø Waskey Rd. to Plant 5.6 milesEnergy ProductionEnergy ProductionAverage Annual Net Energy Output114,320,762 kWhAverage Annual Net Energy Output114,727,225 kWhAnnual Net Energy Output (Wet Year) Exceeds 80% of years 15,682,871 kWh Annual Net Energy Output (Wet Year) Exceeds 80% of years16,147,613 kWhAnnual Net Energy Output (Wet Year) Exceeds 20% of years 12,590,182 kWh Annual Net Energy Output (Wet Year) Exceeds 20% of years12,884,794 kWhAverage Annual Diesel Avoidance 967,619 Gallons Average Annual Diesel Avoidance 995,083 Gallons1 Net Energy after instream flow maintenance release.Appendix I‐2DAHP CONCEPTUAL FEASIBILITY STUDYGRANT LAKE AND LAKE ELVA PROJECTS TABLE AI-2. Lake Elva Project Summary Data.Lake Elva Project Alternative E-1 (SM 1.6 Dam)Lake Elva Project Alternative E-2 (SM 3.3 Dam)HydrologyHydrologyWatershed10.3 Square miles Watershed9.0 Square milesAverage Annual Runoff 52.9 cfs Average Annual Runoff 46.2 cfsAverage Annual Runoff per square mile 5.13 csm Average Annual Runoff per square mile 5.13 csmAverage Annual Net Precipitation 69.7 inches Average Annual Net Precipitation 69.7 inchesReservoirReservoirActive Storage Capacity 28.1 1000 AF Active Storage Capacity 10.9 1000 AFFull Reservoir Water Surface Elevation 370 feet NAVD 88 Full Reservoir Water Surface Elevation 356 feet NAVD 88Full Reservoir Water Surface Area 775 Acres Full Reservoir Water Surface Area 488 AcresMinimum Water Surface Elevation 320 feet NAVD 88 Min Water Surface Elevation 328 feet NAVD 88Average Water Surface Elevation 350.2 feet NAVD 88 Average Water Surface Elevation 344.5 feet NAVD 88Average Annual Reservoir Inflow 53.5 cfs Average Annual Reservoir Inflow 46.2 cfsAverage Instream Maintenance Release 9.00 cfs Average Instream Maintenance Release 0* cfsDam & SpillwayDam & SpillwayDam Location SM 1.6Dam Location SM 3.3Dam TypeRockfill with impervious coreDam TypeRockfill with impervious core or membraneDam Height108 feetDam Height38 feetCrest Elevation380 feet NAVD 88Crest Elevation362 feet NAVD 88Crest Length620 feetCrest Length620 feetSpillwayUncontrolled. Auxiliary spillway to left of dam via old channelSpillwayUncontrolled. Auxiliary spillway to right of dam via excavated channelPowerhousePowerhouse Location, Stream mile (SM) above Lake Nerka (SM 0) 0.2 SM Powerhouse Location, Stream mile (SM) above Lake Nerka (SM 0)0.2 SMPowerhouse Elevation 66 feet NAVD 88 Powerhouse Elevation feet NAVD 88Installed Capacity 1.0 MW Installed Capacity 0.96 MWTurbine TypeFrancis or Turgo Turbine TypeFrancis or TurgoProject Power Flow 44 cfs Project Flow 46.2 cfsInstream Flow Maintenance Release 9 cfsInstream Flow Maintenance Release20 cfsStatic Head304 feet Static Head 290 feetNet Head297 feet Net Head 273.8 feetTransmission LineTransmission LineSegment 1 Type:34.5 kilovolt 3-Phase SubmarineSegment 1 Type:34.5 kilovolt 3-Phase SubmarineLength, Elbow Point to Grant Lake Transmision Line 2.3 miles Length, Elbow Point to Grant Lake Transmision Line 2.3 milesSegment 2 Type:34.5 kilovolt 3-Phase ACSR Single-pole OverheadSegment 2 Type:34.5 kilovolt 3-Phase ACSR Single-pole OverheadLength, Elbow Point to Grant Lake Transmision Line 21.9 miles Length, Elbow Point to Grant Lake Transmision Line 21.9 milesEnergy ProductionEnergy ProductionAverage Annual Net Energy Output17,442,284 kWh Average Annual Net Energy Output 6,947,626 kWhAnnual Net Energy Output (Wet Year) Exceeds 80% of years 7,997,354 kWh Annual Net Energy Output (Wet Year) Exceeds 80% of years 7,153,396 kWhAnnual Net Energy Output (Wet Year) Exceeds 20% of years 6,788,666 kWh Annual Net Energy Output (Wet Year) Exceeds 20% of years 6,461,763 kWhAverage Annual Diesel Avoidance (full utilization) 502,857 Gallons Average Annual Diesel Avoidance (full utilization) 469,434 Gallons1 Net Energy after instream flow maintenance release.2Instream flows in anadromous reach assumed provided by accretion in bypass reach.Appendix I‐3DAHP CONCEPTUAL FEASIBILITY STUDYGRANT LAKE AND LAKE ELVA PROJECTS  Appendix II‐1 DRAFT DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  APPENDIX II TRANSMISSION FEASIBILITY STUDIES, DILLINGHAM AREA HYDROPOWER PROJECT (DAHP) ‐ LAKE ELVA AND GRANT LAKE SITES Dryden & LaRue Draft Study, November 2012 TRANSMISSION FEASIBILITY STUDIES,  DILLINGHAM AREA HYDROPOWER  PROJECT (DAHP) ‐ LAKE ELVA AND  GRANT LAKE SITES       November 5, 2012      Page i  SUMMARY OF CHANGES    Revision Number Revision Date Revision Description  A 11/05/2012 Review Draft           Page ii  TABLE OF CONTENTS    1. Introduction ............................................................................................................................. 1  2. Right of Way and Land Use ..................................................................................................... 1  3. Environmental ......................................................................................................................... 2  4. Transmission Line Alignments ................................................................................................. 2  5. Preliminary Transmission Design ............................................................................................ 4  6. Construction Cost Estimate ..................................................................................................... 5  APPENDIX   A – Land Use and Status Maps   B – Environmental Report   C – Transmission Line Alignments   D – Basis of Design Memorandum   E – Voltage Profiles        Transmission Facilities Feasibility Studies, DAHP, Lake Elva and Grant Lake Sites   Page 1  1. INTRODUCTION  Development of the Dillingham Area Hydropower Project (DAHP), Lake Elva and Grant Lake,  requires the construction of electrical transmission facilities from the hydro sites to Dillingham.   Estimated generation capacities are 1.5 MW from Lake Elva and 3.0 MW from Grant Lake.  Dryden & LaRue, Inc. (D&L) was contracted by Nushagak Cooperative, Inc. (Nushagak) to  complete a Transmission Line Facilities Feasibility Study for the DAHP.  The scope of the study is  to evaluate and refine transmission alignments developed in previous studies from the two  hydro sites to the Nushagak Power House Substation.   The final transmission alignments shall  consider land use, environmental, constructability, operational and economic factors.  A cost  estimate for the transmission line and interconnecting facilities will also be completed.    2. RIGHT OF WAY AND LAND USE  Right of way and land use for the transmission line alignments was reviewed by the D&L Right  of Way Department.   Land use and status maps are located in Appendix A.  The following are  their findings: Lands crossed by the proposed transmission line corridor include ANCSA Native Corporation  lands owned by Bristol Bay Native Corporation and Aleknagik Natives, Limited, State of Alaska  patented and tentatively approved lands and City of Aleknagik property.  The bulk of the State  of Alaska owned lands are within the Wood‐Tikchik State Park. Wood‐Tikchik State Park  The Wood‐Tikchik State Park Management Plan at page 5‐7 contains the following statement:  Hydropower Development  When Wood‐Tikchik State Park was established, all state‐owned lands and waters within  the park were withdrawn from the public domain and designated for special purpose  management. The enabling legislation gives the Division of Parks and Outdoor  Recreation a clearly defined management purpose, which it cannot exceed without  specific legislative action.   The Legislature made a special finding that two potential hydro projects, at Lake Elva  and Grant Lake, were compatible with park purposes. Both projects have since been  determined unfeasible and dismissed from further consideration.   Chikuminuk Lake has also been considered in the past for hydroelectric development,  although it has not received the legislative recognition of Lake Elva and Grant Lake.  Hydroelectric development at sites other than Lake Elva and Grant Lake is incompatible  with the special park purpose management mandated by the Legislature and therefore  already prohibited by law. The park enabling legislation must be amended to specifically  allow hydroelectric development at Chikuminuk Lake.   Section 41.21.167 of the Alaska Statutes addresses incompatible uses within the park.   Paragraph (c) specifies that hydropower development at Lake Elva and Grant Lake are not  incompatible uses of the park.    Transmission Facilities Feasibility Studies, DAHP, Lake Elva and Grant Lake Sites      Page 2  (c) Development and operation of a hydroelectric site at Lake Elva or Grant Lake is not  considered an incompatible use.  Although the Wood‐Tikchik State Park Management Plan states the projects are unfeasible and  dismissed from further consideration, the legislative declaration takes precedence over the  management plan.    Development of the hydropower facilities authorized by AS 41.21.167(c) are subject to  reasonable stipulations to protect park values and resources.  Page 8‐12 of the Wood‐Tikchik  State Park Management Plan.  A Land Use Permit will be required for the preliminary project research; leases and rights of way  for project facilities, power house and switchyard, transmission line and access roads will need  to be obtained through the State of Alaska Department of Natural Resources, Division of Parks  and Outdoor Recreation.  State Lands Outside Wood‐Tikchik State Park  For the State of Alaska owned lands outside of the Wood‐Tikchik Park, a right of way grant will  be required for transmission line and access easements.  Removal of gravel from State lands  outside of the park will require a material sale application. These permits will be issued by the  State of Alaska Department of Natural Resources, Division of Mining, Land and Water.  ANCSA Corporate Lands  Easements for the transmission and access for the transmission line and to the project area will  need to be acquired from Bristol Bay Native Corporation and Aleknagik Natives, Limited.  City of Aleknagik  Easements for the transmission and access for the transmission line to connect to existing  easements will need to be acquired from the City of Aleknagik.    3. ENVIRONMENTAL   Environmental issues which may be realized along the proposed alignments were addressed by  Travis and Peterson Environmental Consultants, Inc.  An environmental report addressing  potential environmental issues, potential permits and approvals is included in Appendix B.     4. TRANSMISSION LINE ALIGNMENTS  A site visit was performed on August 8th, 2012 to visually inspect and photographically record  alignments established after review of the previous hydro studies, ROW, land use and  environmental factors.  Final transmission line alignments were then refined utilizing the field  collected data, satellite aerial photography and USGS topographical maps.   Lake Elva and Grant Lake Hydro Sites are both located within the Wood –Tikchik Alaska State  Park.  The required transmission facilities shall be minimized in the park by establishing  alignments following construction favorable terrain which will allow the most direct route to  the park boundary.  The alignments were optimized to maximize constructability and reduce  environmental impact.    Transmission Facilities Feasibility Studies, DAHP, Lake Elva and Grant Lake Sites      Page 3  The transmission of power from the Grant Lake Hydro site to the Nushagak existing power  distribution system at the City of Aleknagik shall be constructed utilizing conventional overhead  (OH) single pole power structures.  Both conventional overhead construction and submarine  cable will be needed for the Lake Elva transmission line facilities within the Park.  Two  alignment options will be investigated for the Lake Elva transmission line from the Hydro site to  the Grant Lake transmission line just east of the park boundary.  The upgrade of the Nushagak  existing overhead single phase distribution line to three phase will be required from the City of  Aleknagik to Waskey Road where a substation will be required to transform the power to the  existing distribution voltage.  A new 12.47 kV power line routed along Waskey Road will be  required from this substation to the Nushagak power house substation.  A 12.47 kV beaker  addition will be needed at the Nushagak power house substation.  As shown in Exhibit A, the following defines the refined alignments (a larger scale depiction of  the alignments are located in Appendix C):                                       Transmission Facilities Feasibility Studies, DAHP, Lake Elva and Grant Lake Sites      Page 4  Grant Lake Transmission Line alignment heads dues east from the Grant Lake Hydro Site, taking  the most direct route to the Wood‐Tikchik State Park boundary.  Once out of the state park, the  alignment heads southward paralleling the park boundary to the Elva/Grant Junction  (approximately 22.3 mile‐Sub and 20.8 mile‐OH).  Two options for the Lake Elva Transmission Line from Lake Elva to Elva/Grant Junction were  established.  The first option is an underwater submarine cable routing through Lake Nerka  which follows an alignment due east toward the park boundary (approximately 20.4 miles).   The alignment exits the eastern most edge of the lake and proceeds overhead (approximately  3.5 miles) to the park boundary at the Elva/Grant Junction (Sub).  The second option requires  submarine cable water crossing of Lake Nerka (approximately 2.3 miles), near the mouth of  Amakuk Arm, and then proceeds via overhead construction easterly to the park boundary  (approximately 21.9 miles) at Elva/Grant Junction (OH).    From Elva/Grant Junction, the transmission line alignment continues southward, east of the  state park boundary, to the point where the park boundary turns due west.  From this point,  the transmission alignment runs the most direct possible route, allowing deviations for  geographical/water body obstacles, to the existing Nushagak distribution line on the north side  of Wood River at the City of Aleknagik (approximately 21.8 miles‐Sub and 23.4‐OH).  The new transmission line will follow the existing Nushagak distribution line alignment from the  City of Aleknagik along Aleknagik Lake Road to the intersection of Waskey Road (approximately  15.5 miles).  The Substation planned at the intersection of Aleknagik Lake Road and Waskey Road will feed a  new 12.5 kV distribution line routed along Waskey Road to the Nushagak Power House which  will allow power delivery from the Hydro Sites to the Nushagak main powerhouse substation  (approximately 5.6 miles).    5. PRELIMINARY TRANSMISSION DESIGN  Preliminary design determined transmission design parameters including loading criteria,  optimum voltage, conductor size, typical structure type and pole size.   Loading criteria was developed based on climatological data available from the Western Region  Climate Center and Applied Technology Council.  A basis of design is included in Appendix D.   Voltage profiles were generated utilizing simple power flow models.  The results are shown in  Appendix E.   In all cases it was assumed the Nushagak diesel generation was online which is  needed to maintain voltage profiles.  The modeling confirmed that a 336.4 ACSR conductor at  an operating voltage of 34.5 kV will perform well for the transmission line power delivery  requirements.  The use of 4/0 ACSR will maintain voltage profiles on feeds to the Elva/Grant  junction, with a 336.4 ACSR required from the Junction into Dillingham.  For feasibility level  purposes, it was decided to follow a more conservative approach utilizing 336.4 ACSR for all  overhead portions of the project.  Power flows indicated that the charging current required for  the Lake Elva submarine cable option running the length of Lake Nerka is a problem.  The  Transmission Facilities Feasibility Studies, DAHP, Lake Elva and Grant Lake Sites      Page 5  reactive power requirement for energizing and operation of the cable poses technical  challenges with an extreme high cost.   The upgrade in voltage to 34.5 kV of the single phase line along Aleknagik Lake Road will  require the change out of existing distribution transformers.  Conventional single bushing  transformers will be utilized.  A neutral will be included on the entire transmission line to help  facilitate protective relaying of the line.  Rural Utility Service (RUS) design parameters are utilized.  RUS structures types will be used for  the overhead section of the transmission line and will be single wood pole design.  A typical  tangent structure is as shown in Exhibit B.  Raptor protection is taken into consideration and  “Suggested Practices for Raptor Protection on Power Lines, The State of the Art in 2006, Avian  Power line Interaction Committee” is used as a guideline.                            The typical pole sizes are 40 ft Class 2, and 45 Class 2 and will be direct buried where soils are  acceptable.  Pile type foundations are expected in deep peat, or swampy areas.     6. CONSTRUCTION COST ESTIMATE  A construction cost estimate was completed for the alignments shown in Exhibit A.  The  following is a list of the assumptions used in the development of the estimate:   Winter construction will be required for all activities north of City of Aleknagik.  Use of  snow/ice roads is assumed for the entire length of the alignments north of the City of  Aleknagik.   Transmission Facilities Feasibility Studies, DAHP, Lake Elva and Grant Lake Sites      Page 6   Hydro sites substation transformation and switching is not included in estimate.   Complete replacement of structures, transformers and conductor for the existing  distribution line along Aleknagik Lake Road.   Costs associated with easements, environmental studies and permits are not included in  estimate.   Land cost for the Substation needed at Waskey and Aleknagik Lake Road are not  included in the estimate.   Due to uncertainties associated with man camps, duration of winter (ice road  availability), and material logistics for facilities north of the City of Aleknagik, a bottom  line contingency of 30% were utilized.  A 20% contingency was used for all other  facilities.   The cost estimate is based on 2012 dollar value.     The following table presents the estimated costs for the different segments of the project:  Grant Lake to Power House Construction Grant Lake to City of Aleknagik  35 kV Line $18,655,000  City of Aleknagik to Waskey Road OH 15 kV to 35 kV Conversion $4,236,000  Step Down Substation and PH Sub Addition 15 kV/35 kV 5 MVA, PH Breaker $1,500,000  Waskey Road Power Line New 15 KV Line $1,386,000  Lake Elva 34.5 kV 3 Phase Transmission Line Options   Lake Elva Hydro to Elva/Grant  Junction ‐ OH 35 kV Overhead Option $14,847,000  Lake Elva Hydro to Elva/Grant  Junction ‐ Sub 35 kV Submarine Option $49,417,000  Mobilization/Demobilization $897,000          APPENDIX A – LAND USE AND  STATUS MAPS     MAP 2-1 REGIONAL LAND STATUS 6 m i l e s National Wildlife Refuge National Wildlife Refuge Wilderness Bureau of Land Management Native Corporation State Owned (TA & Patent) Other private land State selected Native selected Native allotments within the park Other private lands within the park Lake Aleknagik State Rec. Site (SRS) Wood-Tikchik State Park Natural features Private lodge Research cabin State Park camp sites Generalized Land Status LEGEND Lands Addressed by this Plan Miscellaneous 10-4-02 MAP 7-1 PRIVATE LAND WITHIN WOOD-TIKCHIK STATE PARK 6 m i l e s National Wildlife Refuge National Wildlife Refuge Wilderness Bureau of Land Management Native Corporation State Owned (TA& Patent) Other private land State selected Native selected LakeAleknagik State Rec. Site (SRS) Wood-Tikchik State Park No conservation easement in place - 27 Native allotments - 101 parcels Other private lands - 9 Generalized Land Status LEGEND Lands Addressed by this Plan Private Land within Wood-Tikchik State Park 10-4-02 Tier I conservation easement doesn’t restrict commercial development - 39 Tier II conservation easement allows one commercial site per parcel - 33 Tier III conservation easement allows no commercial development on these parcels - 2 Boundary Island (part of SRS) MAP 8 - 1 LAND USE DESIGNATION IN WOOD-TIKCHIK STATE PARK 6 m i l e s Native allotments within the park Other private lands within the park Lake Aleknagik State Rec. Site (SRS) Proposed park additions Wood-Tikchik State Park Management Unit boundaries Wilderness Natural Recreational Development Natural features Private lodge Research cabin State Park camp sites Generalized Land Status LEGEND Lands Addressed by this Plan Land Use Designations in Wood-Tikchik State Park Miscellaneous 10-4-02 NO PATTERN Boundary Island (part of SRS)             APPENDIX B –  ENVIRONMENTAL REPORT       NUSHAGAK ELECTRIC AND TELEPHONE PROPOSED TRANSMISSION LINE ROUTING ENVIRONMENTAL SUMMARY Prepared for: DRYDEN & LaRUE, INC. 3305 Arctic Blvd., Suite 201 Anchorage, Alaska 99503 Prepared by: TRAVIS/PETERSON ENVIRONMENTAL CONSULTANTS, INC. 3305 Arctic Blvd., Suite 102 Anchorage, Alaska 99503 329 2nd Street Fairbanks, Alaska 99701 1088-30 Dryden & LaRue, Inc. 1088-30 August 30, 2012 Nushagak E&T Proposed Transmission Line Routing Environmental Summary Page ii TABLE OF CONTENTS 1.0 SCOPE OF WORK .............................................................................................................1 2.0 PURPOSE AND NEED .......................................................................................................2 2.1 Purpose of Project ...................................................................................................2 2.2 Need of Project .......................................................................................................2 3.0 POTENTIAL ENVIRONMENTAL ISSUES......................................................................2 3.1 Water Resources .....................................................................................................2 3.2 Ecosystems and Biological Communities ...............................................................3 3.3 Visual Landscape ....................................................................................................4 3.4 Social, Cultural, and Economic Impacts .................................................................4 4.0 POTENTIAL PERMITS AND APPROVALS....................................................................6 4.1 United States Army Corps of Engineers ..................................................................6 4.2 Alaska Department of Natural Resources ................................................................7 4.3 United States Environmental Protection Agency ....................................................8 4.4 Alaska Department of Environmental Conservation ...............................................8 4.5 Federal Energy Regulatory Commission .................................................................9 5.0 CONCLUSION ...................................................................................................................9 6.0 REFERENCES ..................................................................................................................10 FIGURES Figure 1 – Proposed Transmission Line Routes ..................................................................1 Figure 2 – Private Land within Wood-Tikchik State Park ..................................................5 Dryden & LaRue, Inc. 1088-30 Sept. 10, 2012 Nushagak E&T Proposed Transmission Line Routing Environment Summary Page 1 1.0 SCOPE OF WORK Dryden &LaRue Inc. contracted Travis/Peterson Environmental Consulting, Inc. (TPECI) to investigate possible environmental issues concerning the proposed transmission line routes for the proposed Elva Lake and Grant Lake Hydroelectric Projects (Figure 1). TPECI reviewed the proposed transmission line routes, aerial photos, and area maps. This report summarizes TPECI findings and discusses what environmental issues will require attention for this project. Figure 1 - Proposed Transmission Line Routes Dryden & LaRue, Inc. 1088-30 Sept. 10, 2012 Nushagak E&T Proposed Transmission Line Routing Environment Summary Page 2 2.0 PURPOSE AND NEED 2.1 Purpose of Project The NETC is proposing to build two hydroelectric generating stations within the boundaries of the Wood-Tichik State Park. One facility is proposed at Elva Lake and another sited at Grant Lake. Transmission lines would transport power to Aleknagik where it would link to an existing line (as shown in Figure 1). The project’s intent is to provide Nushagak customers with a cost-effective and reliable energy source while meeting future load demands. 2.2 Need of Project Nushagak Cooperative serves residents of Dillingham, Aleknagik, and remote villages throughout the Dillingham census area. Currently, NETC has a diesel engine powered generating plant in Dillingham which serves its loads. The NETC system currently has a summer peak load of 3.4 MW and a minimum load of 1.4 MW (at night). Peak demand occurs in July. The proposed hydroelectric projects would combine to meet nearly seventy-five (75) percent of the annual load requirements. The Nushagak Cooperative electric load is met by diesel generators. Therefore, member rates are highly dependent on fuel costs. Also, the remote nature of the area limits the electric generation options due to transmission constraints and reliability concerns. Because of high electricity rates, approximately $0.23/kWh for residential customers, the State of Alaska pays a portion of customer electric bills via the Power Cost Equalization Program. The proposed hydroelectric projects at Elva Lake and Grant Lake would reduce electricity costs and provide clean, renewable energy to their members. 3.0 POTENTIAL ENVIRONMENTAL ISSUES 3.1 Water Resources The majority of the proposed transmission line will travel occurs within and directly adjacent to the boundaries of the Wood-Tikchik State Park and Lake Aleknagik State Recreation Site. The Wood River-Tikchik Lakes system is a long series of interconnected lakes and rivers which empty into Bristol Bay. Lake Nerka, the Grant and Muklung Rivers, Elva Creek, and other unnamed streams are anadromous bodies of water that may be directly or indirectly impacted by the proposed project. These waters are important spawning grounds for salmon, predominately sockeye, but other species are also present. Every possible effort must be made to minimize any impediments (i.e. dams, spillways, powerline foundations, etc.) that prevent the movement of salmon to and within these bodies of water. Dryden & LaRue, Inc. 1088-30 Sept. 10, 2012 Nushagak E&T Proposed Transmission Line Routing Environment Summary Page 3 With respect to the transmission lines routing, the upper arm of Lake Nerka would be most directly affected. The transmission line leaving the Elva Lake Powerhouse is proposed to be a submarine line within Lake Nerka and exiting the eastern reach of the lake while transitioning to an aerial line. At Lake Nerka and throughout the project area’s streams and smaller water-bodies, best management practices (BMP) should be utilized to minimize the disruption of fish habitat and recreational/subsistence activities as a result of construction. Wetlands are prevalent throughout the project area. There would be no way to avoid impacting wetlands during this operation. A Section 404 permit from the United States Corp of Engineers will be required for this project. This project may fall under COE Nationwide permits 12 and 17 if it meets the established criteria. Nationwide Permit 12 pertains to utility line activities provided that they do not result in a loss greater than ½ acre of waters for each single and complete project. Considering the scope of the proposed project, it is unlikely that the project will qualify for a Nationwide Permit 12. Nationwide Permit 17 is applicable to hydroelectric projects that are less than 5.0 MW of total generating capacity at the reservoir. 3.2 Ecosystems and Biological Communities Ecosystems Vegetation throughout the project site lies within the transitional zone between the Hudsonian and Eskimoan Biotic Provinces. While dominated by coniferous forest, vegetation can vary greatly due to topography, geology, and other local environmental influences. In general, white spruce and mixed spruce-birch thickets are found up to 900-feet in elevation. Forest stands growing above 500 to 600 feet typically do not develop to saw- timber size. Above 900-feet the land is comprised of bare rock, heath tundra, and alpine meadow. Wet tundra or marsh, are common at the lowest elevations. Cursory investigation using Alaska Exotic Plant Information Clearinghouse maps have shown little evidence of invasive, nonnative species within the project area. Hits have been documented in the Dillingham area causing a potential for invasive, nonnative species to be transported into the project area on equipment and material. Biological Communities The project area is home to a large variety of fauna. Mammal habitat includes: moose, Brown and Black bear, caribou, wolf, coyote, and wolverine. Small game and furbearers found in the park include beaver, muskrat, otter, fox, weasel, marten, hare, and lynx. Ground squirrels and marmots are abundant. The Alaska Department of Fish and Game has designated the area between the upper and lower arms of Lake Nerka and areas south of Grant Lake to be important moose habitat (and critical habitat in winter months). Dryden & LaRue, Inc. 1088-30 Sept. 10, 2012 Nushagak E&T Proposed Transmission Line Routing Environment Summary Page 4 Due to the large number of waterbodies, wetlands, and the variety of upland habitats, the list of birds seen in the park is higher and of greater variety than typically found in inland Alaska. Bird strikes to the transmission lines would be an area of concern for the project. Five species of Pacific salmon [chinook (king), sockeye (red), coho (silver), pink, and chum] spawn in the Wood River and Tikchik Lakes systems. Rainbow trout, grayling, lake trout, Arctic char, and Dolly Varden are also abundant. All play a significant role in the area’s sport and subsistence fishing. Super saturation of nitrogen as a result of spillway drainages from dams has been found to have a negative impact on juvenile salmon potentially resulting in immediate death. Protection of fish populations and habitat would be a primary environmental concern within the project area. 3.3 Visual Landscape The Wood-Tikchik State Park and surrounding areas have long been a recreational destination for people from Alaska, the states, and globally. Photography and general sightseeing (non-hunting, fishing, or subsistence activities) comprise a large portion of park visitors. The visual impact of the project is an issue of concern. There is significant air traffic due to the remote nature of the region. Private and charter floatplane operations are free to land in the park’s numerous lakes. Floatplanes often fly ‘knap of the earth’ based on landmarks instead of a set fli ght plan and mid-air collisions with power lines is not uncommon. Power line tower lights and line markers would be a necessary precaution for the proposed lines creating a significant visual impact. 3.4 Social, Cultural, and Economic Impacts Social Impacts The proposed project area lies with a recreational haven used by people from around the world. World class hunting and fishing, boating and sightseeing tours, wildlife viewing, photography, and numerous other outdoor activities are enjoyed throughout the park. Minimizing negative impact and access to these activities due to project construction would be a high priority. Temporary impacts during construction include increases in noise and the impact of construction equipment and crew on tranquil and sensitive areas. Also, the underwater cable may prevent fisherman (recreational and subsistence) from anchoring their boats along the corridor and limiting the fishable area of the lake. There are several parcels of private property within Wood-Tikchik State Park, including a number of properties that may be affected by the transmission line project (Figure 2). These properties include parcels at Grant Lake, at the discharge of Elva Creek into Lake Nerka, and numerous sites along the shores of Lake Nerka. Dryden & LaRue, Inc. 1088-30 Sept. 10, 2012 Nushagak E&T Proposed Transmission Line Routing Environment Summary Page 5 Figure 2 - Private Land within Wood-Tikchik State Park Cultural Impacts Many of the residents of Aleknagik and Dillingham as well as the surrounding villages are highly dependent on a subsistence lifestyle. The most important fish and game subsistence resource in the area is salmon, although moose, caribou, and resident fish are also important. The area is also used for gathering firewood, picking berries, trapping and providing other renewable resources for food, clothing, shelter, transportation and handicrafts. Minimizing the project’s impact on these activities would be a high priority. As the transmission line route approaches Aleknagik and the surrounding tribal-owned lands, the possibility of encroaching traditional, historic, or religious properties or other archeological resources is heightened. An AS 41.35.080 permit may be needed for historic and archeological investigation on state land. Economic Impacts Economic impacts during the transmission line construction and related activities would rest primarily on its effect on tourism/recreation throughout the area. Construction could restrict access to large recreational areas (Lake Nerka, Grant Lake, and the Grant River) as well as sections of Lake Aleknagik, the Wood River, and the Town of Aleknagik itself. Dryden & LaRue, Inc. 1088-30 Sept. 10, 2012 Nushagak E&T Proposed Transmission Line Routing Environment Summary Page 6 The proposed transmission line routes lies within the area of important salmon spawning grounds. The Wood-Tikchik State Park, Lake Aleknagik, and surrounding area’s waters contribute a significant share of the Bristol Bay commercial sockeye salmon fishery. Protection and minimization of impact on these waters and habitats are vital to the population’s economic and subsistence well being. 4.0 POTENTIAL PERMITS AND APPROVALS When Wood-Tikchik State Park was established, all state-owned lands and waters within the park were withdrawn from the public domain and designated for special purpose management. The Legislature made a special finding that two potential hydroelectric projects, at Lake Elva and Grant Lake, were compatible with park purposes. Permits and approvals for this project depend on environmental conditions, land ownership/status, and regulatory jurisdiction. The following section describes federal and state agency jurisdiction and their permit requirements as they apply specifically to the project. 4.1 United States Army Corps of Engineers (COE) Section 404 Permit The Army Corps of Engineers (COE) regulates impacts to wetlands. The COE enforces Section 404 of the Clean Water Act (33 U.S.C. 1344) which prohibits the discharge of dredged or fill material into waters of the United States without a permit from the COE. Because wetlands exist at several locations along the power line, a Section 404 Permit will be required. In addition, if a temporary access road is constructed for this project on wetlands, a Section 404 permit will be required. This project may fall under COE nationwide permits 12 and 17 if it meets the established criteria. Nationwide Permit 12 pertains to utility line activities provided that they do not result in a loss greater than ½ acre of waters for each single and complete project. The proposed project is not expected to meet these qualifications. Nationwide Permit 17 is applicable to hydroelectric projects that are less than 5.0 MW of total generating capacity at the reservoir. A pre-application consultation with the COE is not required but recommended. This consultation will prevent delays once the application is submitted for review. Dryden & LaRue, Inc. 1088-30 Sept. 10, 2012 Nushagak E&T Proposed Transmission Line Routing Environment Summary Page 7 4.2 Alaska Department of Natural Resources (ADNR) The State Historic Preservation Office Section 106 of the National Historic Preservation Act (NHPA) of 1966 requires all federal and state agencies take into account the effects on historic properties. The State Historic Preservation Office (SHPO) is a division of Alaska Department of Natural Resources (ADNR) and regulates impacts to historic, cultural, and archeological resources. According to the 1966 NHPA, all projects must be submitted to the SHPO for their analysis and approval. If investigation, excavation, gathering, or removal from the natural state, of any historic, prehistoric, or archeological resources of the state (such as Wood-Tikchik State Park) is required, an Alaska Statute Title 41.35.080 permit may be issued. If the historic, prehistoric, or archeological resource involved is one which is, sacred, holy, or of religious significance to a cultural group, the consent of that cultural group must be obtained before a permit may be issued under this section. Alaska Statute Title 16 Fish Habitat Permit The Alaska Department of Fish and Game regulates specific rivers, lakes, and streams or parts of them that are important for the spawning, rearing, or migration of anadromous fish. The Anadromous Fish Act (AS 16.05.871) and the Fishway Act (AS 16.05.840) require that activities within or across specified anadromous fish streams that could represent an impediment to the efficient passage of fish or construction activities that would disturb the natural flow of a specified anadromous stream, river, or lake, will require a Title 16 Fish Habitat permit. Because work will be performed in or around numerous anadromous habitats (Lake Nerka, the Grant and Muklung Rivers, Elva Creek, and other unnamed streams), a Title 16 Fish Habitat Permit will be required for this project. State Land Use Permit An ADNR land use permit is required for construction projects on state-owned lands or crossing state-owned lands for access. This includes temporary access roads. In addition, a land use permit may be required for certain activities on state-owned land that occur below the ordinary high water line of navigable streams and lakes. This permit is required for most activities that occur in streams and lakes. In addition, any hydro- electric project must receive approval of an ADNP dam engineer for dam designs and maintenance and operations plans. Dryden & LaRue, Inc. 1088-30 Sept. 10, 2012 Nushagak E&T Proposed Transmission Line Routing Environment Summary Page 8 Temporary Water Use Permit (at Dam Sites) ADNR regulates temporary withdrawals from water from state owned sources and issue a water use permit. A Temporary Water Use Permit is required if freshwater from any subsurface or surface source, on a temporary basis, on all lands regardless of ownership, is used. This permit may be required when taking freshwater for uses for dust abatement, material compaction during construction, domestic uses at construction camps, and hydro-seeding after construction. Special Use Permit Special Use Permits are issued by ADNR State Parks for a variety of activities and uses occurring within a state recreation area or state park. Special Use Permits under 11 AAC 18.010 is required of all commercial activities in the park. 4.3 United States Environmental Protection Agency (EPA) To prevent the discharge of oil into waters of the United States or adjoining shorelines, the Environmental Protection Agency (EPA) has established the Pollution Prevention Rule published under the Clean Water Act. This rule mandates that all facilities and/or projects implement a Spill Prevention, Control, and Countermeasure (SPCC) Plan if the project is non-transportation-related, above ground storage capacity greater than 1,320 gallons, and has a reasonable expectation of a discharge into or upon navigable waters of the United States or adjoining shorelines. If the Nushagak Hydroelectric Transmission Line Project meets these three criteria, an SPCC plan will be required. 4.4 Alaska Department of Environmental Conservation (ADEC) Section 401 Section 401 of the Clean Water Act grants States and eligible Tribes the authority to review, approve or deny federal permits that result in discharge into State and Tribal waters including wetlands. The Alaska Department of Environmental Conservation (ADEC), in conjunction with the COE 404 permitting, will analyze projects for impacts to water quality and recommend mitigation measures to prevent water pollution. ADEC will issue a Certificate of Assurance in accordance with Section 401 of the Clean Water Act. Furthermore, under Section 401 of the Clean Water Act, ADEC has the authority to review and comment on the SPCC Plan required by EPA for storage of large quantities of oil. Dryden & LaRue, Inc. 1088-30 Sept. 10, 2012 Nushagak E&T Proposed Transmission Line Routing Environment Summary Page 9 Storm Water Pollution Prevention Plan The goal of ADEC’s Storm Water Program is to reduce or eliminate pollutants in storm waters so that pollutants do not reach land or waters of the state. Storm water discharges often contain pollutants in quantities that could adversely affect water quality. Storm water discharges are regulated under the NPDES program, and certain storm water discharges require an NPDES permit from EPA. The State of Alaska requires that any construction project that disturbs one or more acres must be covered by a Construction General Permit (CGP) before any soil is disturbed at the site. The permit coverage must be continued until all building is completed and the ground is completely stabilized with a permanent, perennial, vegetative cover. Development and implementation of a construction storm water pollution prevention plan (SWPPP) is the key condition of the CGP. 4.5 Federal Energy Regulatory Commission (FERC) The Federal Energy Regulatory Commission (FERC) is an independent agency that regulates the interstate transmission of natural gas, oil, and electricity. FERC also regulates natural gas and hydropower projects. As part of that responsibility, FERC regulates the transmission and wholesale sales of electricity in interstate commerce and licenses and inspects private, municipal, and state hydroelectric projects. Furthermore, FERC oversees environmental matters related to natural gas and hydroelectricity projects and major electricity policy initiatives. FERC safeguards the environment by ensuring that planned projects will minimize damage to the environment. As a result, the National Environmental Policy Act (NEPA) process will be initiated. NEPA is required to analyze environmental impacts of the proposed project as a whole. Both the dam and transmission portions of the project will be considered as one. A key component of this is that FERC requires an Environmental Impact Statement (EIS) or Environmental Assessment (EA) for the project. NEPA documents typically require at least three years to complete and has an extensive public involvement program. 5.0 CONCLUSION The rising cost of shipping fuel to the Dillingham and Aleknagik requires NETC to investigate other sources of energy. The proposed hydroelectric projects at Elva Lake and Grant Lake are a viable alternative to diesel fuels. The ability to reduce energy cost, lower the dependency on diesel fuel, increase reliability and opportunities for future growth, and provide a clean, renewable energy source are all benefits the proposed project can provide. Dryden & LaRue, Inc. 1088-30 Sept. 10, 2012 Nushagak E&T Proposed Transmission Line Routing Environment Summary Page 10 TPECI has reviewed available pertinent information regarding the Nushagak Transmission Line Project including the proposed transmission line routes, aerial photos, and area maps. TPECI anticipates the following environmental permits are required for this project: U.S. Army Corps of Engineers o Section 404 Wetland Fill Permit. Alaska Department of Natural Resources o State Historic Preservation Office Clearance; o Alaska Statute Title 16 Fish Habitat Permit; o State Land Use Permit; o Temporary Water Use Permit; and o State Parks Special Use Permit. U.S. Environmental Protection Agency o Spill Prevention, Control, and Countermeasure Plan; and o Review of Wetland Impacts. Alaska Department of Environmental Conservation o Section 401 Certification; and o Storm Water Pollution Prevention Plan Federal Energy Regulatory Commission o FERC Licensing; and o NEPA - Environmental Assessment or Environmental Impact Statement. TPECI recommends the following actions for the transmission line route: Avoid spanning areas where float planes access the lake system; Avoid laying underwater cable in areas where fisherman congregate; Span all creeks and rivers wherever possible; Utilize existing trails as much as possible; Avoid construction during hunting season; Limit construction on wetlands areas to winter months; and Start the FERC NEPA process as soon as possible. 6.0 REFERENCES ACHP,2012. Section 106 Regulations Summary. Advisory Council on Historic Preservation, Website Database, August, 2012. ADNR, 2012. Coastal Management Program. Alaska Department of Natural Resources, Website Database, August, 2012. Dryden & LaRue, Inc. 1088-30 Sept. 10, 2012 Nushagak E&T Proposed Transmission Line Routing Environment Summary Page 11 ADNR, 2012. Permits and Leases. Alaska Department of Natural Resources, Website Database, August, 2012. ALRC, 2012. Alaska Statutes. Alaska Legal Resource Center, Website Database, August, 2012. EPA, 2012. Section 401 Certification. U.S. Environmental Protection Agency, Website Database, August, 2012. EPA, 2010. Spill Prevention, Control and Countermeasure (SPCC) Regulation. U.S. Environmental Protection Agency. pp.1-8. J. Wall, 1985. United States Army Corps of Engineers Regulatory Program Application Information. Army Corps of Engineers, Anchorage, Alaska. pp.1-20. ADNR, 2002. Wood-Tikchik State Park Management Plan. Alaska Department of Natural Resources, Division of Parks and Outdoor Recreation, pp. 1-139 .             APPENDIX C – TRANSMISSION  LINE ALIGNMENTS                 APPENDIX D – BASIS OF  DESIGN       10/30/2012 1 Dillingham Area Hydro Project Basis of Design Memorandum 34.5kV Transmission Line 1. STANDARDS The line will comply with the requirements of the following standards: a. 2012 edition, National Electrical Safety Code (NESC), Grade B construction b. American National Standards Institute (ANSI) c. National Electrical Manufacturers Association (NEMA) d. American Society for Testing and Materials (ASTM) e. American Wood Preservers Institute (AWPI) f. Rural Utility Service (RUS) 2. DETAILED DESIGN REQUIREMENTS a. Loading Criteria The line will be designed for the following loading criteria: (1) NESC Heavy Loading: 4 psf wind (40 mph), ½-inch radial ice, 0°F with NESC Grade B load/strength factors as summarized below: Item Wind Loads Wire Tension Loads Vertical Loads Steel Structures, Anchors & Foundations 2.50/1.00 1.65/1.00 1.50/1.00 Guys 2.50/0.90 1.65/0.90 N/A Wood Structures 2.50/0.65 1.65/0.65 1.50/0.65 (2) Extreme Wind Loading While NESC Rule 250C does not apply to structures under 60 ft in height the importance and remoteness of the line dictates some attention to high wind exposure. 100 mph will be used on structure and wire with no ice, 20°F with load/strength factors = 1.33/1.00 for wood structures and 1.1/1.00 for steel structures, guys, anchors and foundations. 10/30/2012 2 (3) Extreme Ice Loading: One (1.0) inch radial ice at a density of 57 lbs/cubic ft., 0°F, no wind, with load/strength factors = 1.30/1.00 for wood structures and 1.1/1.00 for steel structures. b. Structure Type 34.5 kV deadend structures will be single wood pole with Hughes type arms configured to RUS assembly ZC8X, a double deadend on crossarm modified for raptor protection. 34.5 kV tangent structures will be single wood poles configured to RUS assembly ZC1X, modified for raptor protection 15 kV deadend structures will be single wood pole with Hughes type arms configured to RUS assembly C8X, a double deadend on crossarm modified for raptor protection. 15 kV tangent structures will be single wood poles configured to RUS assembly C1X, modified for raptor protection c. Line Conductor Future conductor for the 35kV and 15 kV circuits will be: 336.4 kcmil, 26/7 ACSR Code name: “Linnet” Weight: 0.463 lbs/ft. Diameter: 0.720 inches Rated Tensile Strength: 14,100 lbs Rated Ampacity: 510 Amps New conductor tension in percent of the conductor’s rated tensile strength will not exceed the following: NESC Loading (½-inch ice, 4 psf wind, 0°F, plus k = 0.30) ....................................50% Extreme Ice Loading (1.0 inch ice, no wind, 0°F)……………….............................70% Initial Unloaded Tension, 0°F ...................................................................................20% Final Unloaded Tension, 0°F …................................................................................15% Typical sag and tension tables for Linnet conductors are included at the end of the design memorandum. g. Clearances Minimum vertical design clearance above ground will be 23.5 ft. Ground clearances will be based on the conductor sag at 1.0 inch radial ice (57 pcf), at 0°F, or at the maximum design operating temperature, whichever is greater. The maximum design operating temperatures for the 35 kV circuit is 120º F. Following is a table detailing the derivation of the ground clearance criteria: 10/30/2012 3 Clearance Over Roads and lands traversed by vehicles Snow 7.0 Height of object under line (reference height) 10.0 Mechanical and Electrical clearance component 4.5 Extra clearance for survey and construction variations, and possible sag increase due to unusual snow/ice 2.0 TOTAL DESIGN CLEARANCE 23.5 feet Attachments: Sag – Tension Tables 10/30/2012 4 ALUMINUM COMPANY OF AMERICA SAG AND TENSION DATA DAHP - 336.4 ACSR Conductor LINNET 336.4 Kcmil 26/ 7 Stranding ACSR Area= .3070 Sq. In Dia= .720 In Wt= .463 Lb/F RTS= 14100 Lb Data from Chart No. 1-782 English Units Span= 300.0 Feet NESC Heavy Load Zone Creep is NOT a Factor Rolled Rod Design Points Final Initial Temp Ice Wind K Weight Sag Tension Sag Tension F In Psf Lb/F Lb/F Ft Lb Ft Lb 0. 1.00 .00 .00 2.603 5.92 4958. 5.92 4958. 0. .50 4.00 .30 1.650 4.85 3831. 4.61 4032. 32. .50 .00 .00 1.222 4.93 2794. 4.39 3136. -50. .00 .00 .00 .463 1.50 3474. 1.37 3807. -20. .00 .00 .00 .463 2.00 2605. 1.64 3173. 0. .00 .00 .00 .463 2.46 2115.* 1.89 2751. 30. .00 .00 .00 .463 3.33 1566. 2.42 2156. 60. .00 .00 .00 .463 4.26 1223. 3.13 1665. 90. .00 .00 .00 .463 5.01 1042. 3.97 1315. 120. .00 .00 .00 .463 5.42 963. 4.82 1083. 167. .00 .00 .00 .463 6.06 861. 6.02 868. 212. .00 .00 .00 .463 6.66 785. 6.62 789. * Design Condition             APPENDIX E – VOLTAGE  PROFILES             The following Power Flow results are based on 1.5 MW from Lake Elva and 3.0 MW from Grant Lake delivered to the Nushagak Power Plant with a system peak load of 4 MW and a minimum load of 1.4 MW with Nushagak diesel generation on line. The values displayed are the bus voltages (%) and the line flows (MW/MVAr). . All loads were set to 95% power factor. The transformer taps were adjusted by a maximum value of 2.5% to improve the voltage profile (varies from case to case). The results confirm two facts. First, the Nushagak plant needs to be online under most, if not all, loading conditions (minimum loading results look okay). Second, the charging produced by the Lake Elva cable is a problem. At 1.0 per unit voltage, it produces about 2.65 MVAr. Overall, Grant Lake looks acceptable and Lake Elva have reactive issues that need to be overcome which may be possible installation of reactors and operational procedures.   Grant_Lake 34.5 kV 1 0 2 .8 2 % Grant_Lake_Gen 4.16 kV 1 0 0 % Junction 34.5 kV 1 0 1 .8 4 %Junction2 34.5 kV Lake_Elva 34.5 kV Lake_Elva_Gen 4.16 kV Dillingham 34.5 kV 9 9 .8 2 % Dillingham_Gen 12.47 kV 1 0 0 % Max 4.211 MVA 4 j1.3 Gen2 5 MW 1.2 j1.7 Min 1.474 MVA T1 5 MVA 2.9 -j0.3 Gen3 1.5 MW T3 3 MVA Cable1 Gen1 3 MW 3 -j0.4 3 -j0.4 T2 5 MVA -2.5% TapP Open Max 4.211 MVA Min 1.474 MVA Gen2 5 MW Gen3 1.5 MW Cable1 T3 3 MVA Junction 34.5 kV Dillingham 34.5 kV Dillingham_Gen 12.47 kV Junction2 34.5 kV Lake_Elva 34.5 kV Grant_Lake_Gen 4.16 kV Lake_Elva_Gen 4.16 kV 3 -j0.5 2.9 -j0.4 T1 5 MVA T2 5 MVA -2.5% TapP Grant_Lake 34.5 kV Gen1 3 MW 1 0 2 .8 2 % 1 0 1 .8 4 % 9 9 .8 2 % 3 -j0.5 2.9 -j0.4 1 0 0 % 2.9 -j0.3 4 j1.3 1.2 j1.7 1 0 0 % 3 -j0.4 3 -j0.4 Open Grant_Lake 34.5 kV 1 0 2 .3 % Grant_Lake_Gen 4.16 kV 1 0 0 % Junction 34.5 kV 1 0 1 .3 5 %Junction2 34.5 kV Lake_Elva 34.5 kV Lake_Elva_Gen 4.16 kV Dillingham 34.5 kV 9 9 .0 5 % Dillingham_Gen 12.47 kV 1 0 0 .7 8 % Max 4.211 MVA Gen2 5 MW Min 1.474 MVA 1.4 j0.5 T1 5 MVA -2.5% TapP 1.4 j0.5 Gen3 1.5 MW T3 3 MVA Cable1 Gen1 3 MW 1.4 j0.09 1.4 j0.09 T2 5 MVA -2.5% TapP Open Max 4.211 MVA Min 1.474 MVA Gen1 3 MW Gen2 5 MW Gen3 1.5 MW Cable1 T3 3 MVA Junction 34.5 kV Dillingham 34.5 kV Dillingham_Gen 12.47 kV Junction2 34.5 kV Lake_Elva 34.5 kV Grant_Lake_Gen 4.16 kV Lake_Elva_Gen 4.16 kV 1.4 j0.07 1.4 j0.2 T2 5 MVA -2.5% TapP Grant_Lake 34.5 kV 1 0 2 .3 % 1 0 1 .3 5 % 9 9 .0 5 % 1.4 j0.07 1.4 j0.2 1 0 0 .7 8 % 1.4 j0.5 1 0 0 % 1.4 j0.09 1.4 j0.09 1.4 j0.5 Open T1 5 MVA -2.5% TapP Grant_Lake 34.5 kV 1 0 0 .7 9 % Grant_Lake_Gen 4.16 kV 1 0 0 % Junction 34.5 kV 9 7 .8 5 %Junction2 34.5 kV Lake_Elva 34.5 kV Lake_Elva_Gen 4.16 kV Dillingham 34.5 kV 9 2 .0 9 % Dillingham_Gen 12.47 kV 9 2 .6 3 % Max 2.948 MVA 2.8 j0.9 Gen2 5 MW Min 1.474 MVA T1 5 MVA -2.5% TapP 2.8 j1.1 Gen3 1.5 MW T3 3 MVA -2.5% TapP Cable1 Gen1 3 MW 3 j1.1 3 j1.1 T2 5 MVA -2.5% TapP Min 1.474 MVA Open Max 2.948 MVA Gen2 5 MW Gen3 1.5 MW Cable1 T3 3 MVA -2.5% TapP Grant_Lake 34.5 kV Junction2 34.5 kV Lake_Elva 34.5 kV Grant_Lake_Gen 4.16 kV Lake_Elva_Gen 4.16 kV 3 j1 2.9 j1 T1 5 MVA -2.5% TapP T2 5 MVA -2.5% TapP Junction 34.5 kV Dillingham 34.5 kV Dillingham_Gen 12.47 kV Gen1 3 MW 1 0 0 .7 9 % 9 7 .8 5 % 9 2 .0 9 % 3 j1 2.9 j1 9 2 .6 3 % 2.8 j1.1 2.8 j0.9 1 0 0 % 3 j1.1 3 j1.1 Open Grant_Lake 34.5 kV 1 0 2 .3 % Grant_Lake_Gen 4.16 kV 1 0 0 % Junction 34.5 kV 1 0 1 .3 5 %Junction2 34.5 kV Lake_Elva 34.5 kV Lake_Elva_Gen 4.16 kV Dillingham 34.5 kV 9 9 .0 5 % Dillingham_Gen 12.47 kV 1 0 0 .7 8 % Max 2.948 MVA Gen2 5 MW Min 1.474 MVA 1.4 j0.5 T1 5 MVA -2.5% TapP 1.4 j0.5 Gen3 1.5 MW T3 3 MVA -2.5% TapP Cable1 Gen1 3 MW 1.4 j0.09 1.4 j0.09 T2 5 MVA -2.5% TapP Open Max 2.948 MVA Gen1 3 MW Gen2 5 MW Gen3 1.5 MW Cable1 T3 3 MVA -2.5% TapP Junction 34.5 kV Dillingham 34.5 kV Dillingham_Gen 12.47 kV Junction2 34.5 kV Lake_Elva 34.5 kV Grant_Lake_Gen 4.16 kV Lake_Elva_Gen 4.16 kV 1.4 j0.07 1.4 j0.2 T1 5 MVA -2.5% TapP T2 5 MVA -2.5% TapP Grant_Lake 34.5 kV 1 0 2 .3 % 1 0 1 .3 5 % 9 9 .0 5 % 1.4 j0.07 1.4 j0.2 1 0 0 .7 8 % 1.4 j0.5 1 0 0 % 1.4 j0.09 1.4 j0.09 1.4 j0.5 Open Min 1.474 MVA Grant_Lake 34.5 kV Grant_Lake_Gen 4.16 kV Junction 34.5 kV 1 1 1 .1 3 %Junction2 34.5 kV 1 1 1 .9 1 %Lake_Elva 34.5 kV 1 1 3 .2 3 % Lake_Elva_Gen 4.16 kV 1 1 0 .6 4 % Dillingham 34.5 kV 1 0 2 .0 4 % Dillingham_Gen 12.47 kV 1 0 0 % Max 4.211 MVA 4 j1.3 Gen2 5 MW 2.7 -j1.9 Min 1.474 MVA T1 5 MVA -2.5% TapP 1.3 j3.4 Gen3 1.5 MW 1.5 j0 1.5 j0 T3 3 MVA -2.5% TapP Cable1 Open Gen1 3 MW T2 5 MVA -2.5% TapP Max 4.211 MVA Min 1.474 MVA Gen1 3 MW Cable1 T2 5 MVA -2.5% TapP Grant_Lake 34.5 kV Dillingham_Gen 12.47 kV Grant_Lake_Gen 4.16 kV 1.5 -j0.04 1.5 j3.3 1.5 j3.3 T1 5 MVA -2.5% TapP T3 3 MVA -2.5% TapP Junction 34.5 kV Dillingham 34.5 kV Junction2 34.5 kV Lake_Elva 34.5 kV Lake_Elva_Gen 4.16 kV Gen2 5 MW Gen3 1.5 MW 1 1 1 .1 3 % 1 0 2 .0 4 % 1.5 j3.3 1 0 0 % 1.3 j3.4 4 j1.3 2.7 -j1.9 1 1 1 .9 1 % 1.5 j3.3 1 1 3 .2 3 % 1 1 0 .6 4 % 1.5 j0 1.5 j0 1.5 -j0.04 Open Grant_Lake 34.5 kV Grant_Lake_Gen 4.16 kV Junction 34.5 kV 1 1 1 .1 3 %Junction2 34.5 kV 1 1 1 .9 1 %Lake_Elva 34.5 kV 1 1 3 .2 3 % Lake_Elva_Gen 4.16 kV 1 1 0 .6 4 % Dillingham 34.5 kV 1 0 2 .0 4 % Dillingham_Gen 12.47 kV 1 0 0 % Max 4.211 MVA Gen2 5 MW 0.06 -j2.8 Min 1.474 MVA 1.4 j0.5 T1 5 MVA -2.5% TapP 1.3 j3.4 Gen3 1.5 MW 1.5 j0 1.5 j0 T3 3 MVA -2.5% TapP Cable1 Open Gen1 3 MW T2 5 MVA -2.5% TapP Max 4.211 MVA Min 1.474 MVA Gen1 3 MW Cable1 T2 5 MVA -2.5% TapP Grant_Lake 34.5 kV Dillingham_Gen 12.47 kV Grant_Lake_Gen 4.16 kV 1.5 -j0.04 1.5 j3.3 1.5 j3.3 T1 5 MVA -2.5% TapP T3 3 MVA -2.5% TapP Junction 34.5 kV Dillingham 34.5 kV Junction2 34.5 kV Lake_Elva 34.5 kV Lake_Elva_Gen 4.16 kV Gen2 5 MW Gen3 1.5 MW 1 1 1 .1 3 % 1 0 2 .0 4 % 1.5 j3.3 1 0 0 % 1.3 j3.4 0.06 -j2.8 1 1 1 .9 1 % 1.5 j3.3 1 1 3 .2 3 % 1 1 0 .6 4 % 1.5 j0 1.5 j0 1.5 -j0.04 1.4 j0.5 Open Grant_Lake 34.5 kV 1 1 5 .1 1 % Grant_Lake_Gen 4.16 kV 1 1 2 .4 6 % Junction 34.5 kV 1 1 3 .7 9 %Junction2 34.5 kV 1 1 4 .5 8 %Lake_Elva 34.5 kV 1 1 5 .9 % Lake_Elva_Gen 4.16 kV 1 1 3 .2 4 % Dillingham 34.5 kV 1 0 2 .0 9 % Dillingham_Gen 12.47 kV 1 0 0 % Max 4.211 MVA 4 j1.3 Gen2 5 MW 0 -j1.6 Min 1.474 MVA T1 5 MVA -2.5% TapP 4 j3.3 Gen3 1.5 MW 1.5 j0 1.5 j0 T3 3 MVA -2.5% TapP Cable1 Gen1 3 MW 2.9 j0 2.9 j0 T2 5 MVA -2.5% TapP Max 4.211 MVA Min 1.474 MVA Cable1 Dillingham_Gen 12.47 kV 1.5 -j0.04 2.8 -j0.09 4.3 j3.5 1.5 j3.5 T2 5 MVA -2.5% TapP T3 3 MVA -2.5% TapP Grant_Lake 34.5 kV Junction 34.5 kV Dillingham 34.5 kV Junction2 34.5 kV Lake_Elva 34.5 kV Grant_Lake_Gen 4.16 kV Lake_Elva_Gen 4.16 kV T1 5 MVA -2.5% TapP Gen1 3 MW Gen2 5 MW Gen3 1.5 MW 1 1 5 .1 1 % 1 1 3 .7 9 % 1 0 2 .0 9 % 2.8 -j0.09 4.3 j3.5 1 0 0 % 4 j3.3 4 j1.3 0 -j1.6 1 1 4 .5 8 % 1.5 j3.5 1 1 5 .9 % 1 1 2 .4 6 % 2.9 j0 2.9 j0 1 1 3 .2 4 % 1.5 j0 1.5 j0 1.5 -j0.04 Lake_Elva 34.5 kV 1 0 3 .0 5 % Junction234.5 kV 1 0 2 .2 9 % Grant_Lake 34.5 kV 1 0 3 .5 % Grant_Lake_Gen 4.16 kV 1 0 1 .1 5 % Junction 34.5 kV 1 0 2 .1 3 %Lake_Elva_Gen 4.16 kV 1 0 0 .7 3 % Dillingham 34.5 kV 9 7 .8 3 % Dillingham_Gen 12.47 kV 1 0 0 % Max 4.211 MVA 4 j1.3 Gen2 5 MW Min 1.474 MVA T1 5 MVA -2.5% TapP 4 j0.02 Gen3 1.5 MW 1.5 j0 1.5 j0 T3 3 MVA -2.5% TapP Gen1 3 MW 2.8 j0 2.8 j0 T2 5 MVA -2.5% TapP Cable1 Max 4.211 MVA Min 1.474 MVA OpenOpen 0 j1.5 Gen2 5 MW Cable1 Dillingham_Gen 12.47 kV Grant_Lake_Gen 4.16 kV Lake_Elva_Gen 4.16 kV 2.7 -j0.1 4.2 j0.1 1.5 j0.1 1.5 -j0.05 T1 5 MVA -2.5% TapP T2 5 MVA -2.5% TapP T3 3 MVA -2.5% TapP Grant_Lake 34.5 kV Junction 34.5 kV Dillingham 34.5 kV Junction234.5 kV Lake_Elva 34.5 kV Gen1 3 MW Gen3 1.5 MW 1 0 3 .5 % 1 0 2 .1 3 % 9 7 .8 3 % 2.7 -j0.1 4.2 j0.1 1 0 0 % 4 j0.02 4 j1.3 0 j1.5 1 0 2 .2 9 % 1.5 j0.1 1 0 3 .0 5 % 1 0 1 .1 5 % 2.8 j0 2.8 j0 1 0 0 .7 3 % 1.5 j0 1.5 j0 OpenOpen 1.5 -j0.05 Lake_Elva 34.5 kV 9 8 .6 1 % Junction234.5 kV 9 7 .2 1 % Grant_Lake 34.5 kV 1 0 0 .3 1 % Grant_Lake_Gen 4.16 kV 1 0 0 % Junction 34.5 kV 9 6 .9 4 % Lake_Elva_Gen 4.16 kV 9 7 .5 4 % Dillingham 34.5 kV 8 7 .5 8 % Dillingham_Gen 12.47 kV 8 6 .9 7 % Max 4.211 MVA 4 j1.3 Gen2 5 MW Min 1.474 MVA T1 5 MVA -2.5% TapP 4 j1.6 Gen3 1.5 MW 1.5 j0.5 1.5 j0.5 T3 3 MVA -2.5% TapP Gen1 3 MW 2.9 j1.5 2.9 j1.5 T2 5 MVA -2.5% TapP Cable1 Max 4.211 MVA Min 1.474 MVA OpenOpen Gen2 5 MW Cable1 Grant_Lake 34.5 kV Lake_Elva 34.5 kV Grant_Lake_Gen 4.16 kV 2.8 j1.3 4.3 j2 1.5 j0.6 1.5 j0.4 T1 5 MVA -2.5% TapP T2 5 MVA -2.5% TapP T3 3 MVA -2.5% TapP Junction 34.5 kV Dillingham 34.5 kV Dillingham_Gen 12.47 kV Junction234.5 kVLake_Elva_Gen 4.16 kV Gen1 3 MW Gen3 1.5 MW 1 0 0 .3 1 % 9 6 .9 4 % 8 7 .5 8 % 2.8 j1.3 4.3 j2 8 6 .9 7 % 4 j1.6 4 j1.3 9 7 .2 1 % 1.5 j0.6 9 8 .6 1 % 1 0 0 % 2.9 j1.5 2.9 j1.5 9 7 .5 4 % 1.5 j0.5 1.5 j0.5 OpenOpen 1.5 j0.4  Appendix III‐1 DRAFT DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  APPENDIX III HYDROLOGICAL SYNTHESIS, RESERVOIR ROUTING & ENERGY GENERATION FORMULAE  Appendix III‐2 DRAFT DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  APPENDIX III HYDROLOGICAL SYNTHESIS, RESERVOIR ROUTING & ENERGY GENERATION FORMULAE Table AIII-1. Slope & Intercept Values with Correlation Coefficients for Synthetic Monthly Correlation Equations for Grant Lake Outlet discharge as a function of Nuyakuk River discharge. Month m b r2 January 1.2544 -0.3346 0.977 February 1.6095 -0.6807 0.977 March 0.8376 -0.0188 0.996 April 0.8495 0.0226 0.953 May 2.5315 -2.2183 0.959 June 0.201 3.8373 0.978 July 0.2473 0.8845 0.972 August 0.5103 -0.3408 0.993 September 1.0803 -2.2224 0.959 October 1.0278 -1.168 0.574 November 1.0319 -0.8747 0.914 December 0.4435 0.6022 0.966 QGrant = m QNuyakuk + b m and b are the monthly slope and intercept values respectively as above and; QGrant = Unit runoff from Grant Lake Gage watershed, cfs per square mile (csm) QNuyakuk = Unit runoff from Nuyakuk River gage watershed, csm  Appendix III‐3 DRAFT DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Table AIII-2. Slope & Intercept Values with Correlation Coefficients for Synthetic Seasonal Correlation Equations for Lake Elva Outlet discharge as a function of Nuyakuk River discharge. Winter: (J, F, M & A) Summer: (M, J, J, A & S) Fall: (O, N & D) m 0.326193 1.0957 2.411593 b 1.027267 1.1505 -4.036737 R2 0.565 0.784 0.885 QElva = m QNuyakuk + b Where; m and b are the seasonal slope and intercept respectively as above and; QElva = Unit runoff from Lake Elva gage watershed, csm & QNuyakuk = Unit runoff from Nuyakuk River gage watershed, csm RESERVOIR STORAGE FORMULAE Reservoir Storage-Inflow/Outflow Relationship ΔSi = Ii – Oi where; i = An integer in value from 1 to 12 corresponding the month of the year. ΔSi = Change in active storage volume in reservoir for month i, Acre feet Ii = Reservoir inflow volume for month i, Acre feet Oi = Reservoir outflow volume for month i, Acre feet With Oi = 1.98 (Qi pwr + Qi fish + Qi Spill)  Appendix III‐4 DRAFT DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Where: Qi pwr = Project Power Production Flow for Month i, cfs Qi fish = Instream Flow Release for Month i, cfs Qi Spill = Reservoir Spill, cfs Reservoir Stage-Storage Relationships Grant Lake G-1: S = [(WSE/193.85)12.08 – 69,576] / 1000 Grant Lake G-2: S = [(WSE/188.13)11.81 – 77,149] / 1000 Lake Elva E-1: S = (WSE/196.87)6.13 - 19.6 Lake Elva E-2: S = (WSE/48.29)5.19- 20.7 where; S = Reservoir Storage Volume, 1000 Acre Feet WSE = Reservoir Water Surface Elevation, feet NAVD 88 ENERGY GENERATION FORMULAE Monthly energy output from Project I. Ei = 24 Ni Pi where; Ei = Net monthly energy output at bus after losses for month i, kWh i = An integer in value from 1 to 12 corresponding the month of the year. Ni = Total number of days in month i, i.e., Jan. = 31, Feb. = 28.25. . . Dec. = 31. Pi = Average monthly electrical power at bus, as determined by equation (eq.) II, below.  Appendix III‐5 DRAFT DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  II. ܲ௜ ൌߟ௡௘௧ Q௜ γH୬ୣ୲೔ 737 where; Pi = Net average electrical power output from Project for month i, kW ܳ௜ ൌ Power flow for month ݅, cfs H௡௘௧೔ ൌ Net head for month ݅,݂݁݁ݐ; as determined by eq. III, below, and; ߛ ൌ Unit weight of water ൌ 62.4 pounds/cubic foot ߟ௡௘௧ ൌ Generation transmission ⁄system efficiency,%; with;      ߟ௡௘௧ ൌ ߟ௛௬ௗ ߟ௚௘௡ ߟ௧௥௔௡௦ ୀ ଼ଷ.ହ% where; ߟ௛௬ௗ ൌ Turbine efficiency,% = 92.5% ߟ௚௘௡ ൌ Generator Efficiency,% = 94.5% ߟ௧௥௔௡௦ ൌ Transmission system effiency,% ൌ 95.5% H௡௘௧೔ = Hi – h୤೔ + Σh୫୧୬୭୰೔ , where; Hi = Static Head for month i, feet H௡௘௧೔ = Net head for month i, feet h୤೔ = Head loss in penstock due to friction for month i, feet ∑h୫୧୬୭୰ ௜ = Sum of minor hydraulic energy losses in intake, penstock, fittings, bends, etc. for month i, feet where; h୤೔ ൌ݂ ቀ௅ ஽ቁ ௩೔మ ଶ௚  Appendix III‐6 DRAFT DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  and; h௠௜௡௢௥೔ ൌ ∑k ௠௜௡௢௥ ሺ ௩೔ మ ଶ௚ ሻ with; f = Darcy-Weisbach friction factor L = Penstock length, feet vi, = Velocity in water in penstock for month i, feet/sec g = 32.2 feet/sec2 kminor = minor loss coefficient, varies with fitting  Appendix IV‐1 DRAFT DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  APPENDIX IV ECONOMIC FORMULAE  Appendix IV‐2 DRAFT DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  APPENDIX IV ECONOMIC FORMULAE Present lump-sum-value of a future lump-sum value PV = FV/(1 + i)n Present lump-sum value of a uniform series of benefits (or payments) PV = A ቀሺଵା௜ሻ౤ ି ଵ ௜ሺଵ ା ௜ሻ౤ ቁ Where; i = Annual Discount or Finance Rate, % n = Number of periods, years A = Annual payment or benefit, $2013 PV = Present-value lump sum, $2013 FV = Future-value lump sum, $(Year F) F = 2013 + n Appendix V‐1  DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  APPENDIX V GEOTECHNICAL REPORT American Geotechnics 2300 N Yellowstone Hwy, Suite 203 • Idaho Falls, ID 83401 • (208) 523-8710 5260 Chinden Blvd. • Boise, ID 83714 • (208) 658-8700 DRAFT August 31, 2012 File No. 12B-G2303 Civil Science 3160 W. Clubhouse Drive Lehi, UT 84043 Attention: Brian Craven, PE SUBJECT: Elva Lake Hydroelectric Project Geotechnical Reconnaissance Dear Brian, This letter constitutes our geotechnical report of observations and recommendations for the proposed Elva Lake Hydropower Facility located in the Wood-Tikchick State Park, Alaska. On July 6th 2012, our geotechnical engineer, Mr. Stan Crawforth, performed a reconnaissance level review of site conditions via helicopter with Mr. Mark Storm, Hydrological Engineer, of Civil Science. Our general objectives were to evaluate the situation and layout of possible water retention structures, types and locations of earthen borrow for dam construction, reservoir overflow locations, conditions along penstock corridors, and conditions at potential powerhouse locations. Additionally, my field reconnaissance was an opportunity to understand the logistics for planning possible future subsurface explorations leading to the detailed engineering design of the aforementioned facilities. Two alternative concepts are considered here in, namely, • Run of the River Dam and Penstock • Lake Tap and Tunnel Run of the River Dam and Penstock Lake Elva is a deep lake situated within a high mountain lake setting with an outflow creek that empties into Lake Nerka, as shown on Figure 1. For a run of the river, it appears feasible to locate a retention dam about 200 yards below the southeast end of the lake at the outflow creek. An overflow spillway may be located over the top of the dam with Elva Lake Hydroelectric Project - DRAFT Geotechnical Reconnaissance File No. 12B-G2303 August 31, 2012 American Geotechnics Page 2 an armored downstream face or possibly cut onto the adjacent abutment rock (preferred). The location of a proposed dam site is shown on Figure 1. We have discussed the special site conditions and the project objectives with the Dam Safety and Construction Unit of the Alaska Department of Natural Resources. Borrow constraints include the lack of low permeability soil such as silt or clay. Limited quantities of sand and gravel are assumed to be available based on surface observations. The possible lack of easily accessible sand and gravel may preclude the feasibility of roller compacted concrete dams, unless lake dredging is possible. There is an abundance of rock. Graded blast rock could be utilized for random fill and erosion countermeasures. It is desirable to use minimal quantities of man-made materials. Such materials must ultimately be airlifted to the project site. Two typical dam sections are presented as Figures 2 and 3. Rock-fill dam with Concrete Facing: A rock-fill dam with concrete facing is illustrated for concept. This alternate provides for a large zone of random rock fill (blast rock). A 1V:1.5H steepened downstream slope is not uncommon for rock fill dams. A continuously reinforced layer of concrete facing may be placed on the upstream face as the primary liner inhibiting water infiltration and to resist erosion by water and ice. An upstream slope no steeper than 2.5H:1V is required for construction of the concrete facing. Rock-fill Dam with Composite Liner: A second alternate consisting of a rock-fill dam with composite liner is illustrated. Random rock fill is the dominant earth material placed in downstream and upstream zones. The downstream slope is steepened to 1V:1.5H. Within the interior of the dam is a composite liner surrounded by a cushion and filter layers. The filters are necessary to control migration of soil particles under hydraulic pressure. The composite liner could consist of a textured 60-mil HDPE liner placed immediate on top of a pre-fabricated geosynthetic clay liner (GCL). The GCL comes in rolls and consists of a thin layer of expansive bentonite clay sandwiched between two synthetic fabrics. If a hole in the HDPE liner exists, water will penetrate causing the clay to swell and effectively seal small holes in the HDPE liner. Together, the HDPE membrane with the GCL create a very low-permeability composite liner. This type of infiltration barrier is not common with dams where there is an abundance of clayey material to create a massive low-permeability zone. Elva Lake Hydroelectric Project - DRAFT Geotechnical Reconnaissance File No. 12B-G2303 August 31, 2012 American Geotechnics Page 3 This concept is presented herein due to the unique borrow constraints at the project site. Based on a telephone conversation, the Dam Safety and Construction Unit appears willing to consider this type of liner system as feasible. At the upstream slope, a large rock (riprap) layer is proposed to resist erosion by water and ice. Borrow The region has been glacially scoured leaving little soil for conventional dam construction. However, we suspect that sand and gravel deposits may exist as small alluvial fans in the immediate vicinity of the proposed power house. Blast rock will be plentiful. Lake Tap and Tunnel Lake Elva is situated about 260 feet above Lake Nerka as shown on Figures 1 and 4. It appears feasible that a tunnel (10-foot diameter horseshoe shape) could be excavated, using drill and blast methods from Lake Nerka upward towards Lake Elva. Figure 4 shows a lake tap concept; wherein, a rock plug is removed to release lake water into a tunnel. The tunnel could be partially fitted with an HDPE penstock between the power house and a concrete tunnel plug fitted with a butterfly control valve. This concept allows for winter tunnel construction. Tunneling with a lake tap is not regulated by the Dam Safety and Construction Unit of the Alaska Department of Natural Resources. There are several natural shoreline protrusions along the shoreline of Lake Nerka that appear protected from snow slides that could accommodate a power house facility and boat dock. Rock from tunnel excavations would be used to build the terrain around the power house. Most likely, the powerhouse can be founded on rock. Steel penstock pipe from the tunnel portal to the powerhouse could be covered with blast rock. Data Deficiencies Topographic survey information is needed to determine crest elevations for dams and the associated storage-capacity curve for the lake. An aerial survey should be commissioned to advance the engineering. Elva Lake Hydroelectric Project - DRAFT Geotechnical Reconnaissance File No. 12B-G2303 August 31, 2012 American Geotechnics Page 4 Geotechnical drilling and soundings should be performed at structure locations and potential borrow sources to prove-out quantities for potential concrete and filter aggregates and other earthen materials. A value analysis should compare the concepts of a Run of the River Dam and Penstock verses a Lake Tap and Tunnel. Closure Please contact our office if we can provide an additional briefing on the aforementioned reconnaissance level observations and opinions. Respectfully Submitted American Geotechnics DRAFT Stanley G. Crawforth, PE Alaska Geotechnical Engineer G. Alexander Rush, PE Idaho Geotechnical Engineer Appendix VI‐1  DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  APPENDIX VI CAPITAL COST ESTIMATES TABLE AVI-1. GRANT LAKE PROJECT ALTERNATIVE G-1 ESTIMATED CAPITAL COSTS.GRANT LAKE PROJECT ALTERNATIVE G‐1ITEMUNITS QUANTITY unit cost DESCRIPTION SUB TOTALPROJECT DEVELOPMENT Planning & Design   HRS. 150$                  PAID W DEVELOPMENT GRANTS‐$                LEGAL COUNCIL AND REGULATORY  SUPPORTHRS. 500$                  Other NETC Funding‐$                ACQUISITIONSACRES 250,000$          Other NETC Funding‐$                PRE PROJECT DRILLINGFEET 1                   50,000$             OPTION PAYMENT 50,000$         PERMITTING HRS. 200$                  PAID W DEVELOPMENT GRANTS‐$                LICENSINGHRS. 200$                  PAID W DEVELOPMENT GRANTS‐$                CONSTRUCTION MANAGEMENT & MANAGEMENT EXPENSES LUMP 1                   3,500,000$       PAID W DEVELOPMENT GRANTS 3,500,000$    MOBILIZATIONSTANDARD MOBILIZATIONLUMP 1                   500,000$          500,000$       STAGING YARDLUMP 10% 400,000$          LEASE $,  & SET UP 40,000$         MACHINERY AT 20 UNITS 20 TONS EACHTONS 600              82$                     CAT‐JOHN DEER‐CASE‐OTHER 49,200$         BARGE FREIGHT SEATTLE WASHINGTON DILLINGHAM AK TONS 5,732           270$                  1,547,640$    PIPE FREIGHTTONS 1,471           164$                  241,244$       CEMENT FREIGHTTONS 290              164$                  47,560$         TURBINES & transformer FREIGHTTONS 120              197$                  23,616$         INFRASTRUCTURE COMPONENTS CONSTRUCTION MACHINERY @ 44,000 # eachPIECES 22                 150,000$          NET LESS SALVAGE 3,300,000$    COMMUNICATIONS TOWERLUMP 1                   120,000$          TURN KEY 120,000$        cut  raw costCU YD. 270,000      7$                       ON SITE PIT 1,890,000$    PROJECT ROADSFEET 19,660         20$                     ON SITE PIT 393,200$       Foundation groutingEa 800              600$                  Press. Grouting 480,000$       DAMCU YD. 20,260         35$                     ON SITE PIT 709,100$       DAM LINER CONCRETE SIX BAG CU YD. 800              600$                  TBD 480,000$       DAM WORKS incl. SpillwayLINER 1                   1,000,000$       TBD 1,000,000$    PIPELINE & IntakeFEET 16,100         480$                  1/4 WALL STEEL 7,728,000$    PENSTOCK APPURTENANT ITEMS; THRUST RESTRAINT,  CORROSION SYSTEM, VACUUM/AIR RELEASE, DRAINS SUB ASSEMBLY'S 5                   170,000$          MISC. 850,000$       TAIL RACECU YD. 120              800$                  6 BAG CONCRETE 96,000$         POWER HOUSE TURBINE DECKCU YD. 450              800$                  6 BAG CONCRETE 360,000$       POWER HOUSE STRUCTUREBUILDING 1                   350,000$          STEEL 350,000$       POWER SWITCHING & WATER CONTROLPIECES 14                 80,000$             STANDARD TYPE 1,120,000$    Turbine/GeneratorKW 2,400           650$                  Francis Type 1,560,000$    POWER LINE ROAD & REVEG.MILES 51                 75,000$             BUILT W TRANSMISSION 3,825,000$    MAN CAMPUNITS 35                 20,000$             700,000$       MATERIAL SUPPLIES & CONSUMABLE S FREIGHTTONS 3,220           164$                  GROUND TRANSPORT 528,080$       Generation Alternative G‐1 Subtotal 31,488,640$ Contingency (25%) 7,872,160$    Generation Alternative G‐1 Total 39,360,800$ Grant ‐Aleknagik T‐Line (Glacial Moraine ‐Adjusted to Route and w/o ice road)MILES 41.5             224,661$          T‐line: Glacial Moraine Alternative 9,323,416$    T‐line: Park boundary Transmission AlternatiVe 14,656,700$                         ALEKNAGIK TO DILLINGHAM  35kV UpgradeLS 1                   6,682,500$       ALK > DLG 6,682,500$    ALK > DLG 6,682,500$                           Subtotal Glacial Moraine Alternative 16,005,916$ Subtotal Park Boundary Alternative 21,339,200$                         Contingency (25%) 4,001,479$    Contingency (25%) 5,334,800$                           Glacial Moraine Transmission Alternative Total20,007,395$ Park Boundary Transmission Alternative Total26,674,000$                         Construction Total (Generation+Transmission+Contingency) 59,368,195$ Construction Total (Generation+Transmission+Contingency) 66,034,800$                         Const. Finance 10.3% 6,124,200$    Const. Finance 6,811,902.34$                     TOTAL PROJECT COST:  G‐1 with Glacial Moraine Alternative 65,492,396$  G‐1 with Park Boundary Transmission Alternative 72,846,702$                          Appendix VI‐2DAHP CONCEPTUAL FEASIBILITY STUDYGRANT LAKE AND LAKE ELVA PROJECTS TABLE AVI -2. GRANT LAKE PROJECT ALTERNATIVE G-2 ESTIMATED CAPITAL COSTS.GRANT LAKE PROJECT ALTERNATIVE G‐2ITEMUNITS QUANTITY UNIT COST DESCRIPTION SUB TOTALPROJECT DEVELOPMENT Planning & DesignHRS. 150$                  PAID W DEVELOPMENT GRANTS‐$                      LEGAL COUNCIL AND REGULATORY  SUPPORT HRS. 500$                  Other NETC Funding‐$                      ACQUISITIONSACRES 25,000$            Other NETC Funding‐$                      PRE PROJECT DRILLINGFEET 1                   50,000$            PAID W DEVELOPMENT GRANTS 50,000$               PERMITTINGHRS. 200$                  PAID W DEVELOPMENT GRANTS‐$                      LICENSINGHRS. 200$                  PAID W DEVELOPMENT GRANTS‐$                      FINANCINGHRS. 150$                  Other NETC Funding‐$                      CONSTRUCTION MANAGEMENT & MANAGEMENT EXPENSES LUMP 1                   3,500,000$       PAID W DEVELOPMENT GRANTS 3,500,000$          MOBILIZATIONSTANDARD MOBILIZATIONLUMP 1                   500,000$          500,000$             STAGING YARDLUMP 0                   400,000$          LEASE $,  & SET UP 40,000$               MACHINERY AT 20 UNITS 20 TONS EACHTONS 600              82$                    CAT‐JOHN DEER‐CASE‐OTHER 49,200$               BARGE FREIGHT SEATTLE WASHINGTON DILLINGHAM AK TONS 5,732           270$                  1,547,640$          PIPE FREIGHTTONS 1,471           164$                  241,244$             CEMENT FREIGHTTONS 290              164$                  47,560$               TURBINES FREIGHTTONS 120              196$                  23,520$               INFRASTRUCTURE COMPONENTS CONSTRUCTION MACHINERY @ 44,000 # each PIECES 22                150,000$          NET LESS SALVAGE 3,300,000$          COMMUNICATIONS TOWERLUMP 1                   120,000$          TURN KEY 120,000$              cut  raw costCU YD. 270,000      7$                       ON SITE PIT 1,890,000$          PROJECT ROADSFEET 19,660         20$                    ON SITE PIT 393,200$             Foundation Prep/Grouting (35' deep hole)Ea 1,100           600$                  660,000$             Gravity Dam w/ Ogee CrestCU YD. 10,000         350$                  Sand from Roadway or Penstock  alignments 3,500,000$          DAM FDN prep/diversionLS 1                   500,000$          TBD 500,000$             DAM WORKSLS 1                   320,000$          TBD 320,000$             PIPELINEFEET 16,100         480$                  1/4 WALL STEEL 7,728,000$          PENSTOCK APPURTENANT ITEMS; THRUST RESTRAINT,  CORROSION SYSTEM, VACUUM/AIR RELEASE, DRAINS SUB ASSEMBLY'S 5                   170,000$          MISC. 850,000$             TAIL RACECU YD. 120              800$                  6 BAG CONCRETE 96,000$               POWER HOUSE TURBINE DECKCU YD. 450              800$                  6 BAG CONCRETE 360,000$             POWER HOUSE STRUCTUREBUILDING 1                   350,000$          STEEL 350,000$             POWER SWITCHING & WATER CONTROLPIECES 14                80,000$            STANDARD TYPE 1,120,000$          TURBINEKW 2,400           650$                  Francis Type 1,560,000$          POWER LINE ROAD MILES 51                75,000$            BUILT W TRANSMISSION 3,825,000$          MAN CAMPUNITS 36                20,000$            720,000$             MATERIAL SUPPLIES & CONSUMABLE S FREIGHT TONS 3,120           164$                  GROUND TRANSPORT 511,680$             Generation Alternative G‐2 Subtotal 33,803,044$       Contingency (25%) 8,450,761$          Generation Alternative G‐2 Total42,253,805$       Grant ‐Aleknagik T‐Line (Glacial Moraine ‐Adjusted to Route and w/o ice road) MILES 41.5             224,661$          T‐line: Glacial Moraine Alternative 9,323,416$          T‐line: Park boundary Transmission Alternative14,656,700$     ALEKNAGIK TO DILLINGHAM  35kV UpgradeLS 1                   6,682,500$       ALK > DLG 6,682,500$          ALK > DLG 6,682,500$       Subtotal Glacial Moraine Alternative16,005,916$       Subtotal Park Boundary Alternative21,339,200$     Contingency (25%) 4,001,479$          Contingency (25%) 5,334,800$       Glacial Moraine Transmission Alternative Total20,007,395$       Park Boundary Transmission Alternative Total26,674,000$     Construction Total (Generation+Transmission+Contingency) 62,261,200$       Construction Total (Generation+Transmission+Contingency) 68,927,805$     Const. Finance 10.3% 6,422,632$          Const. Finance 7,110,333.88$  TOTAL PROJECT COST:  G‐2 with Glacial Moraine Alternative 68,683,832$        G‐2 with Park Boundary Transmission Alternative 76,038,139$      Appendix VI‐3DAHP CONCEPTUAL FEASIBILITY STUDYGRANT LAKE AND LAKE ELVA PROJECTS TABLE AVI-3. LAKE ELVA PROJECT ALTERNATIVE E-1 ESTIMATED CAPITAL COSTS.LAKE ELVA PROJECT ALTERNATIVE E‐1ITEMUNITS QUANTITYUNIT COSTDESCRIPTION SUB TOTALPROJECT DEVELOPMENT Planning & DesignHRS. 150$                  PAID W DEVELOPMENT GRANTS‐$                     LEGAL COUNCIL AND REGULATORY  SUPPORT HRS. 500$                  Other NETC Funding‐$                     ACQUISITIONSACRES 25,000$            Other NETC Funding‐$                     PRE PROJECT DRILLINGFEET 1                   50,000$            PAID W DEVELOPMENT GRANTS 50,000$               PERMITTINGHRS. 200$                  PAID W DEVELOPMENT GRANTS‐$                     LICENSINGHRS. 200$                  PAID W DEVELOPMENT GRANTS‐$                     FINANCINGHRS. 150$                  Other NETC Funding‐$                     CONSTRUCTION MANAGEMENT & MANAGEMENT EXPENSES LUMP 1                   3,000,000$       PAID W DEVELOPMENT GRANTS 3,000,000$         STANDARD MOBILIZATIONLUMP 2                   500,000$          750,000$             STAGING YARDLUMP 20% 400,000$          LEASE $,  & SET UP 80,000$               MACHINERY AT 20 UNITS 20 TONS EACHTONS 600               395$                  CAT‐JOHN DEER‐CASE‐OTHER 237,000$             FERRY TIME FOR AIR LIFT EQUIPMENT MOVE IN HRS. 22                 10,000$            220,000$             BARGE FREIGHT SEATTLE WASHINGTON DILLINGHAM AK TONS 3,216           270$                  868,320$             PIPE FREIGHTTONS 944               300$                  283,200$             CEMENT FREIGHTTONS 346               300$                  103,800$             TURBINES FREIGHTTONS 80                 300$                  24,000$               INFRASTRUCTURE COMPONENTS CONSTRUCTION MACHINERY PIECES 17                 225,000$          NET LESS SALVAGE 3,825,000$         COMMUNICATIONS TOWERLUMP 1                   120,000$          TURN KEY 120,000$             PROJECT ROADSFEET 16,838         20$                    ON SITE PIT 336,752$             DAMCU YD. 225,000       37$                    ON SITE PIT 8,325,000$         DAM LINER CONCRETE SIX BAGCU YD. 650               600$                  TBD 390,000$             GROUTED HOLESEA 2,550           600$                  high fracture in rock 1,530,000$         PIPELINEFEET 7,757           450$                  1/4 WALL STEEL 3,490,650$         PENSTOCK APPURTENANT ITEMS; THRUST RESTRAINT,  CORROSION SYSTEM, VACUUM/AIR RELEASE, DRAINS SUB ASSEMBLY'S 5                   170,000$          MISC. 850,000$             TAIL RACECU YD. 120               800$                  6 BAG CONCRETE 96,000$               POWER HOUSE TURBINE DECKCU YD. 450               800$                  6 BAG CONCRETE 360,000$             POWER HOUSE STRUCTUREBUILDING 1                   350,000$          STEEL 350,000$             POWER SWITCHING & WATER CONTROLPIECES 12                 80,000$            STANDARD TYPE 960,000$             TURBINEKW 1,500           650$                  Francis Type 975,000$             POWER LINE ROAD  MILES 2                   75,000$            150,000$             Docks ‐ 2 East Nerka & Elva mouthlump 1                   1,300,000$       1,300,000$         MAN CAMPUNITS 36                 20,000$            720,000$             MATERIAL SUPPLIES & CONSUMABLE S FREIGHT TONS 1,608           420$                  GROUND TRANSPORT 675,360$             Transmission (To Grant Lake Junction ‐includes submarine cable 2.3 miles) 11,877,600        Subtotal41,947,682$       contingency 25% 10,486,920.50$  Subtotal Construction52,434,603$       Const. Finance 10.3% 5,408,957$         TOTAL PROJECT COST57,843,559$    Appendix VI‐4DAHP CONCEPTUAL FESIBILITY STUDYGRANT LAKE AND LAKE ELVA PROJECTS TABLE AVI-4. LAKE ELVA PROJECT ALTERNATIVE E-2 ESTIMATED CAPITAL COSTS.LAKE ELVA PROJECT ALTERNATIVE E‐2ITEMUNITS QUANTITY UNIT COSTDESCRIPTION SUB TOTALPROJECT DEVELOPMENT Planning & DesignHRS. 150$                  PAID W DEVELOPMENT GRANTS‐$                   LEGAL COUNCIL AND REGULATORY  SUPPORT HRS. 500$                  Other NETC Funding‐$                   ACQUISITIONSACRES 25,000$            Other NETC Funding‐$                   PRE PROJECT DRILLINGFEET 1                    50,000$            PAID W DEVELOPMENT GRANTS 50,000$            PERMITTINGHRS. 200$                  PAID W DEVELOPMENT GRANTS‐$                   LICENSINGHRS. 200$                  PAID W DEVELOPMENT GRANTS‐$                   FINANCINGHRS. 150$                  Other NETC Funding‐$                   CONSTRUCTION MANAGEMENT & MANAGEMENT EXPENSES LUMP 1                    3,000,000$       Construction Phase 2,800,000$       STANDARD MOBILIZATIONLUMP 2                    500,000$          750,000$          STAGING YARDLUMP 10% 400,000$          LEASE $,  & SET UP 40,000$            MACHINERY AT 20 UNITS 20 TONS EACHTONS 600               395$                  CAT‐JOHN DEER‐CASE‐OTHER 235,000$          FERRY TIME FOR AIR LIFT EQUIPMENT MOVE IN HRS. 22                 10,000$            220,000$          BARGE FREIGHT SEATTLE WASHINGTON DILLINGHAM AK TONS 4,112            270$                  1,110,240$       PIPE FREIGHTTONS 944               300$                  283,200$          CEMENT FREIGHTTONS 346               300$                  103,800$          TURBINES FREIGHTTONS 80                 350$                  28,000$            INFRASTRUCTURE COMPONENTS CONSTRUCTION MACHINERY @ 44,000 # each PIECES 17                 225,000$          NET LESS SALVAGE 3,825,000$       COMMUNICATIONS TOWERLUMP 1                    120,000$          TURN KEY 120,000$          PROJECT ROADSFEET 17,018         20$                    ON SITE PIT 340,358$          DAMCU YD. 25,900         37$                    ON SITE PIT 958,300$          DAM LINER CONCRETE SIX BAGCU YD. 650               600$                  TBD 390,000$          GROUTED HOLESEa 1,700            600$                  TBD 1,020,000$       PIPELINEFEET 15,200         450$                  1/4 WALL STEEL 6,840,000$       PENSTOCK APPURTENANT ITEMS; THRUST RESTRAINT,  CORROSION SYSTEM, VACUUM/AIR RELEASE, DRAINS SUB ASSEMBLY'S 5                    170,000$          MISC. 850,000$          TAIL RACECU YD. 120               800$                  6 BAG CONCRETE 96,000$            POWER HOUSE TURBINE DECKCU YD. 450               800$                  6 BAG CONCRETE 360,000$          POWER HOUSE STRUCTUREBUILDING 1                    350,000$          STEEL 350,000$          POWER SWITCHING & WATER CONTROLPIECES 12                 80,000$            STANDARD TYPE 960,000$          TURBINEKW 1,250            650$                  Francis Type 812,500$          POWER LINE ROADMILES 2                    75,000$            BUILT W TRANSMISSION 150,000$          DOCKS, 1 @ Nerka south 1 @ Elva Creeklump 1                    1,300,000$       1,300,000$       MAN CAMP UNITS 36                 20,000$            720,000$          MATERIAL SUPPLIES & CONSUMABLE S FREIGHT TONS 2,056            300$                  GROUND TRANSPORT 616,300$          Transmission (To Grant Lake Junction ‐includes submarine cable 2.3 miles) 11,877,600      Subtotal37,206,298$    Contingency 25% 9,301,575$       Subtotal Construction46,507,873$    Const. Finance 10.3% 4,797,578$       TOTAL PROJECT COST 51,305,450$  Appendix VI‐5DAHP CONCEPTUAL FEASIBILITY STUDYGRANT LAKE AND LAKE ELVA PROJECTS TABLE AVI-5. DAM VOLUME ESTIMATES Elevation (ft) Contour area (sq ft) Depth (ft)Incremental  Volume (cu ft) Cummulative  Volume (cu ft) Estimated Dam  Volume (cu yd) Dam Volume (cu  yds) from CAD Percent  Difference (%) 490 15,718                     0 ‐                           ‐                           495 18,097                     5 84,538                   84,538                    500 29,359                     5 118,641                 203,179                  505 27,546                     5 142,264                 345,443                  510 18,902                     5 116,122                 461,564                  514 9,491                        4 56,787                   518,352                 19,198                   20,259                     5.2% Elevation (ft) Contour area (sq ft) Depth (ft)Incremental  Volume (cu ft) Cummulative  Volume (cu ft) Estimated Dam  Volume (cu yd) Dam Volume (cu  yds) from CAD Percent  Difference (%) 450 2,698                        0 ‐                           ‐                           460 2,961                        10 28,294                   28,294                    470 2,943                        10 29,519                   57,814                    480 2,763                        10 28,529                   86,343                    490 2,373                        10 25,678                   112,021                  500 1,902                        10 21,372                   133,393                  508 1,527                        8 13,714                   147,107                 5,448                      5,383                         ‐1.2% Elevation (ft) Contour area (sq ft) Depth (ft)Incremental  Volume (cu ft) Cummulative  Volume (cu ft) Estimated Dam  Volume (cu yd) Dam Volume (cu  yds) from CAD Percent  Difference (%) 280 54,919                     0 ‐                           ‐                           300 75,462                     20 1,303,805              1,303,805               320 75,098                     20 1,505,598              2,809,403               340 65,551                     20 1,406,491              4,215,895               360 53,874                     20 1,194,246              5,410,140               380 12,269                     20 661,426                 6,071,567              224,873                 224,712                    ‐0.07% Elevation (ft) Contour area (sq ft) Depth (ft)Incremental  Volume (cu ft) Cummulative  Volume (cu ft) Estimated Dam  Volume (cu yd) Dam Volume (cu  yds) from CAD Percent  Difference (%) 325 9,884                        0 ‐                           ‐                           330 24,941                     5 87,060                   87,060                    335 25,554                     5 126,237                 213,297                  340 23,436                     5 122,474                 335,771                  345 20,440                     5 109,688                 445,460                  350 16,372                     5 92,030                   537,489                  355 11,696                     5 70,170                   607,659                  360 8,062                        5 49,396                   657,055                  362 5,103                        2 13,166                   670,221                 24,823                   25,821                     3.9% Alternative G‐1 Dam Volume Alternative G‐2 Dam Volume Alternative E‐1 Dam Volume Alternative E‐2 Dam Volume Appendix AVI‐6 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  Appendix VII‐1 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  APPENDIX VII MAJOR PERMITS REQUIRED FOR DAHP CONSTRUCTION  Appendix VII‐2 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  APPENDIX VII MAJOR PERMITS REQUIRED FOR DAHP CONSTRUCTION Table AVI-1. Major Permits Required for DAHP Construction. Agency / Entity Permit / Finding / Action Comments Federal Energy Regulatory Commission License to Construct Preliminary Permit No. 14356 Issued U.S. Army Corps of Engineers Wetlands Permit, NWP 17 - U.S. EPA Storm Water Pollution Prevention Plan - ADNR DPOR Special Use Permits Also required for studies. ADNR Property Rights Transfer / Lease / Easement Authorizations - ADNR Materials Sale Agreement - ADNR Water Rights Water Use Permit / Water Rights Requires ‘possessory interest’ in property before issuance. Subject to MOA with ADF&G. ADF&G Fish Habitat Permit *Required for Construction. Other T16 Permits may be required for study activities. ADF&G Instream Flow *Memorandum of Agreement for Instream Flow Reservation ADOT&PF Right-of-Way Use Permit *Aleknagik-Dillingham Distribution Line Upgrade ADOT&PF Load Permits* *Varies depending on construction mobilization method.  Appendix VIII‐1 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS  APPENDIX VIII MAPS OF AFFECTED INHOLDINGS  Appendix VIII‐2 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS         Appendix VIII‐3 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS   Appendix VIII‐4 DAHP CONCEPTUAL FEASIBILITY STUDY GRANT LAKE AND LAKE ELVA PROJECTS