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HomeMy WebLinkAboutHumpback Creek Final Feasibility Report 1986· , - i ' .... - HUMPBACK CREEK FINAL FEASIBILITY REPORT January 1986 CORDOVA POWER COMPANY Alaska Power Authority LIBRARY COpy ''''1909 ~ L CORDOVA ELECTRIC COOPERATIVE, INC. HUMPBACK CREEK HYDROELECTRIC PROJECT FEASIBILITY REPORT FINAL REPORT JANUARY 1986 PREPARED By: CORDOVA ELECTRIC COOPERATIVE~ INC. Q () k· !--' OO-z.-.-- HUMPBACK CREEK HYDROELECTRIC PROJECT FEASIBILITY REPORT JANUARY 1986 TABLE OF CONTENTS I. Summary A. Technical B. Financial C. Environmental II. Introduction III. Cordova A. General Data B. Energy Balances C. Energy Requirements D. Existing Electrical System E. General Information About Cordova F. Potential Future Development G. Power Cost Data IV. Background Page No. 1 1 2 3 5 7 8 9 10 15 24 27 A. Background 34 B. CEC Project Selection Process 37 C. Historical Background 39 D. Consideration of Archeological Aspects 43 V. Humpback Creek Hydro Facilities A. Hydrologic Data B. Geologic Data C. Design & Construction Information D. Comparison with Other Hydro Projects E. Summary of Construction Costs F. Accounting Treatment Power Cost Equalization G. Economic Analysis sensitivity Analysis Summary of Alternatives Investigated VI. Construction Plan A. Introduction B. Construction Schedule C. Time Frame for Access Clearing D. Pipeline Right-of-Way Clearing E. Pipeline F. Power Plant G. Transmission Line 47 51 53 67-1 68 79 88 90 93 95 102 102 107 107 114 116 119 Table of Contents (Continued) VII. Environmental Analysis and REA Borrower's Environmental Report A. Vegetative Resources B. Fisheries Resources C. Mammal Resources D. Birds E. Marine Biota F. Consideration of Impact of Construction on Historical Value VIII. Summary and Conclusions A. Summary B. License Considerations C. Conclusions APPENDIX Appendix A Stream Flow Estimates 122 122 123 128 130 131 131 136 138 139 Appendix B Proposal from Turbine Manufacturuer Appendix C Appendix D Appendix E Power line Contacts by Eagles and Other Large Birds Power Cost Equalization Filing and Letter from the Alaska Public Utilities Commission Comments Received on Draft Report and Comments Thereon I. SUMMARY This report analyzes the feasibility of constructing a hydro electric project on Humpback Creek, three miles north of Cordova, Alaska. The feasibility of this project was investigated in three different areas: A. Technical B. Financial C. Environmental The project recommended by this study provides for an 850KW facility utilizing run-of-river flows in Humpback Creek for a total annual generation of 3.5 million kilowatt hours, approximately 20 percent of Cordova's 1984 generation. A. TECHNICAL Technical feasibility was straight forward. There are no technical problems which could stop the project. All of the construction techniques require straight forward utilization of existing technology in all areas and use construction methods previously used in Cordova and known to work. The technical risk of this project is extremely small and should not hinder construction of this project. The project consists of an intake structure made of rock filled gabians approximately nine feet high and 25 feet wide. This intake structure is designed to remove rocks and other gravel from the stream flow before the water enters a pipe for transport to the power plant. The pipeline is 2,000 feet from intake structure to power plant and consists of two 32 1/2 inch polyethylene pipes 1 for a distance of 1,740 feet. The final 260 feet will utilize thin wall steel pipe to accommodate the higher hydraulic pressures anticipated in this section of the pipeline. The use of two smaller pipelines reduces the need for heavy construction equipment and will allow the pipeline to be built by hand utilizing helicopters to lift the materials from the beach to their approximate location of use. The power plant is a 24 foot by 40 foot pre-engineered metal building housing one 850KW impulse type turbine and generator, generating 850KW at 12,470 volts, three phase. This plant is designed to utilize maximum flows of 85 cfs. Waters discharged from the turbine will reenter Humpback Creek through an energy dissipating tailrace and an energy absorbing structure within the stream itself. The purpose of the energy absorbing structure is to prevent scouring of the stream while maintaining adequate flows for salmon spawning in the stream. From the power plant an overhead transmission line will carry the power across Humpback Creek to the shores of Orca Inlet where it will connect to the Cordova Electric Cooperative distribution system. B. FINANCIAL Financial feasibility of this project was investi- gated utilizing the following criteria: 1. Construction Cost of $3,250,000.00. 2. State Equity Investment of 40 percent or $1,300,000.00. 3. Cordova Electric Cooperative Equity Investment of 18 percent or $576,000.00. 2 4. The balance to be financed through a State loan at five percent interest for 35 years. 5. Inflation for power cost purposes was assumed to be three percent over the study period. 6. A discount rate of 3.5 percent for benefit-to-cost analysis was used. 7. The Alaska Power Authorityts mean fuel inflation scenario was used. This provided a benefit-to-cost ratio of 2.05 with energy generated by the project costing 6.5 cents per kilowatt hour (kwh), or two cents per kwh below an equivalent amount of energy generated by diesel. A sensitivity analysis was performed on each of the assumptions to test their sensitivity to the value of the assumptions. None of the assumptions were of particular sensitivity. The project maintained a benefit-to-cost above 1.0 in all cases of State participation in the project. Since the financing will be in place before construction begins, it is anticipated that the final project will not be significantly different from that described above. c. ENVIRONMENTAL The environmental feasibility showed that there were no major environmental risks that could not be addressed. Two areas may possibly require mitigation. The first area concerns the historical value of an existing dam and hydro electric site. The second area concerns potential mitigation for dewatering a portion of Humpback Creek that is used by 3 approximately 200 pink salmon for spawning (out of a total 1985 run of 26,800 salmon). The Feasibility Study recommends mitigation measures in both of these areas. The cost associated with this mitigation does not adversely affect the feasibility of the project. Construction of this project can provide long term lowering of the cost of electric energy in Cordova and should be undertaken as soon as financing can be arranged. The Draft Feasibility Report was mailed to those agencies listed in Appendix E. Comments received from those agencies are included in the Appendix along with the response of Cordova Electric Cooperative to each of the points raised. Some of the points were addressed by rewording the report and other comments are addressed in the response provided to each letter. It is important to realize that these letters brought up no unforeseen problems with this project and in general the letters are very supportive of the Humpback Creek Hydroelectric Project. 4 II. INTRODUCTION Cordova is a small fishing community located in the eastern portion of Prince William Sound. Electric power for the community of Cordova is provided by Cordova Electric Cooperative, Inc. (CEC) utilizing diesel fuel. The cost of electric energy in Cordova is significantly above the cost of energy in surrounding communities due, in part, to hydro electric developments under the Energy Program for Alaska (Four-Dam Pool). The Board of Directors of Cordova Electric Cooperative and the Cordova City Council have been actively seeking alternatives to the non-renewable resources currently used in generation. The Alaska Power Authority has been studying long term solutions to Cordova's energy problems. Silver Lake has been identified as a possible long term solution but recent evidence indicates it may not be financially feasible. The Board of Directors of Cordova Electric Cooperative decided in late 1984 to pursue smaller scale renewable energy projects that could provide lower cost electric energy for Cordova. In early 1985 a hydro electric development on Humpback Creek was identified as having the potential for lowering the cost of energy in Cordova as well as reducing dependence on fossil fuel. This report investigates the feasibility of a hydro electric development on Humpback Creek. This report was prepared by the staff of Cordova Electric Cooperative. Many people within the Cooperative and outside had a significant roll in bringing this report to reality. 5 First we would like to thank Brent Petrie of the Alaska Power Authority, without his support, knowledge and willing assistance, we would still be bogged down wondering what to do next. Many of the resource agencies contacted were helpful in the development of this project. We particularly appreciate the efforts of the Alaska Department of Fish and Game in both their Cordova office and the Anchorage Habitat Division. All of the employees of Cordova Electric Cooperative chipped in to help, some directly and others by shouldering a portion of the job of those that were directly involved in this project. Particular thanks go out to Carl Burton for his ideas, strength and willing assistance throughout the year, and Jim Roberts who always got the jbos no one else wanted to do. Our thanks also to Bill Corbus of Alaska Electric Light and Power who lent us Corry Hildenbrand, a very smart engineer, who got us started in the right direction on the power plant. 6 III. CORDOVA A. GENERAL DATA Cordova Alaska is located on the southeast shore of Orca Inlet near the eastern entrance to Prince William Sound. The community is surrounded by the Chugach National Forest, with most of its development on the foothills of Mt. Eyak facing across Orca Inlet toward Hawkins Island. Cordova extends from the coast back to Eyak Lake across a narrow divide between the slopes of Mt. Eyak to the north and Mt. Eccles to the south. Five thin lines of settlement radiate from the central development, two extend around both sides of Eyak Lake, one along Whiteshed Road, one along Orca Road, and one along the Copper River Highway to Mile 13 at the Cordova Airport. Elevation ranges from sea level to 400 feet and the marine influenced climate ranges from a January average temperature of 26 degrees Fahrenheit to a July average of 54 degrees Fahrenheit. Rainfall is heavy, with an annual average precipitation of 177 inches. Cordova is approximately 160 air miles southeast of Anchorage and 410 miles northwest of Juneau, while the nearest community, Valdez, lies 65 air miles to the northwest. Presently, Cordova is accessible only by air and water. Plans for the construction of an overland connection to the State Highway System have been delayed. Cordova was founded in the early 1900's to ship coal, oil and copper from the Wrangell Mountains. Today, the fishing and fish processing industries form the base of the community's seasonal economy. 7 • At present, Cordova has a permanent population of approximately 2,500 persons, but each summer an influx of transient fishermen and cannery workers double Cordova's population. Cordova Electric Cooperative was formed in 1978 and on September 30, 1978 purchased all of the electric utility assets of Cordova Public Utilities, a municipally owned power system. Cordova Public Utilities was not regulated by the Alaska Public Utilities Commission, but at transfer of assets, Cordova Electric Cooperative was regulated. Since that time, in response to a change in State Law, the members of Cordova Electric Cooperative voted to become deregulated on matters of rates and quality of service from the Alaska Public Utilities Commission. At this point, Cordova Electric Cooperative is regulated solely as to service area. B. ENERGY BALANCES In understanding Cordova, it is important to realize that the average price paid by consumers for electricity in Cordova is approximately 21 cents per kwh. This price has prompted a considerable amount of conservation and Cordova Electric Cooperative, in conjunction with Alaska Power Authority, has undertaken a study to determine alternatives to diesel fuel. That study is currently underway and while there are several promising alternatives available, as a practical matter, none will be available before the mid 1990's. In order to establish a basic picture of energy use in the Cordova area, an energy balance has been compiled for the year 1979. No attempt has 8 been made to update these figures, but it is doubtful that any significant changes have occurred. Energy forms used are diesel fuel, gasoline, heating oil#l, aviation gasoline, and propane. It is recognized that coal, wood, wind and natural gas are energy sources which have been used on a small scale. While utilization data is not available, it is estimated that 75 percent of the dwelling units utilize wood for heat in varying degrees. Figure III-l summarizes the energy balance in Cordova and the immediately surrounding area by energy form and end-use category. This chart was prepared by International Engineering Company as part of their 1981 "Reconnaissance Study of Energy Requirements and Alternatives for Cordova". Data was obtained from several local sources and best estimates were made for some aspects of the breakdown shown in Figure III-i. C. ENERGY REQUIREMENTS The future energy needs of Cordova to the year 1999 have been projected based on the low population growth scenario developed by Stone & Webster. Figure III-2 shows the anticipated population projections for three different growth cases developed by International Engineering. These population growth projections are based on projections made for Outer Continental Shelf (OCS) leasing impacts as follows: Low = No impact scenario Mean = Most probable impact scenario High = Maximum probable impact scenario 9 EFFICIENCIES ASSUMED: TRANSPORTATION 30,.. ELECTRIC GENERATION 30 % INDUSTRY* a HEATING 70 % * FISH PROCESSING ENERGY AS WASTE HEAT ~ rll!1 ~ ~p~'m .. ,..: :::: !:::: ~ ::::::::::::: •...•......•. ~ ::::::::::::: / .:.::::::::: : :t~;~;t / :::::.:.:.:.: .: ::::::;:;:;: Tr-~~~~~~~~~~~~~~~ o GASOLINE T AV GAS 19.2". A 1.3x106 GAL. L 1------.;.:.=.;..:.=.......;;;.;.;~-_4 E N E R G Y C o N S U M E D DIESEL FUEL 1 HEATING FUEL PROPANE 80.8% 5.2x106 GAL. BOAT TRANSPORTATION 36.1 % INDUSTRY 1.9% E N E R G Y . ./ / ./ / /.' / / / / ./ .' / ./ . ./ .. / / .' / / / ... / / /.' ./ / / / / / ./ ./ ./ / / / ./ / ::::::::::::: / / / / / / ./ / 43.4 D/o U ./ .. ,o./ .. ./ / .' / / / / ... /. .' o'..'././ •• :.:.:.:.:.:. / / ./ / / / / ./ / ./ / ./ ./ ./ / T . " .... '7' ,..'/" ,/ / /',.. / .--/ / / ./ . ' / / -' / / / ,/ /./ / / ,/ ./ / ./ ./ ,/ .' ./ / :.:.:.:.:.:.:.-/././ / , . / / / / / / / / / 18 % / / I HE ATI NG 201. %././ ./ ./ .' / .. / ./ // ./ ./ / / ./ / / / / / / / / ; / / / / / / / / :::::::::::::::. / / / / / / / / / / / / / /. . . . " .. / / ./ ./ / ./ / ./ ./ / / / / / . / .' / .. ./ / / ./ / / ./ / .. / / / / / / / / / / / / / / / ..: .. :.:.:.:.:.:.:.. ./ / ./ .' / / / / / / / / ./ L l~!!.!!~i!~:liiilii\~ii:~i~:~~~j~~:~:!~~~:!!~!~~;~~~:!liF / / / ,/ / / ~ CORDOVA PETROLEUM BASED ENERGY BALANCE IN 1979 FIGURE 111-1 Source: International Engineering Company ,-- 5000 ------ -4S0~ --. -HIGH 4 .... ..:= --_. -L -....----.a. "-----.. -..--, ---~ I'"""""" ""--MEAN ... -"""'" ~ .-~~ -S~~ ~ .. -~ LOW ~"""" _. -- 25-,- 20_ 1500 --,_._- 1000 500 --- 0 "80981 .1982 1983 198:4 198~ 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 YEAR Source: International Engineering Company POPULATION PRO.ICTiONS CITY OF CORDOVA FIGURE 111-2 The growth in power needs for the last two decades has greatly surpassed the growth in population for the City of Cordova. This is consistent with the increase in fishing and seafood processing activities in the area and a general change from a canned product to a frozen product. The seasonal inflow of people is also a factor which does not contribute to stable population increases. D. EXISTING ELECTRICAL SYSTEM Cordova Electric Cooperative operates and maintains the power system Certificated, but not regulated, by the Alaska Public Utilities Commission. The power system extends from the southwestern shore of Eyak Lake near Copper River Highway, south to Three ~1ile Bay, north to the Chugach Alaska Fisheries processing facility at Orca, and east to Cordova Airport at Mile 13 of the Copper River Highway. Cordova Electric Cooperative maintains two diesel engine driven power plants. The older, Eyak Plant, is on standby during the winter period and runs on base load during the summer. This plant requires full time operators. Generating Units In Eyak Power Plant: Unit Age Capacity #1 15 years 1900 KW #2 12 years 2650 KW #7 46 years 600 KW #8 46 years 750 KW Total Installed Capacity 5900 KW 10 The newer, Orca Plant, was placed in operation during 1984 and is operated in an unattended mode during the 10 p.m. to 6 a.m. period. During the winter this plant is base loaded. During the summer, the plant is used for peaking, operated by remote control from the Eyak Plant. Generating Units in Orca Power Plant: Unit #3 #4 Age 7 years 1 year Total Installed Capacity Capacity 2500 KW 2403 KW 4903 KW Due to the age and unreliable condition of Units #7 and #8, only one of them is considered when determining firm and reliable capacity. On an industry wide basis, "firm" power is defined as the total generation capacity with the largest unit out of service. Cordova Electric Cooperative also uses the term "reliable" capacity which is defined as the total generation capacity with the largest unit out of service for overhaul and the next largest unit also out of service due to mechanical breakdown. These two separate definitions of capacity are important for the following reasons: During the summer peak load periods, major maintenance is not scheduled on any of the engines. Thus they are all available for use (except any mechanical breakdown). Thus, "firm capacity" is used to determine our ability to meet our summer peak loads. 11 Major maintenance (removing an engine from service for several weeks) is scheduled during the winter. The Cooperative must be able to reliably meet the smaller, winter peak levels with one engine out of service for maintenance and another engine down with a mechanical problem. Thus the term "reliable capacity" is used to determine the ability to meet our winter loads. Figures III-3 and III-4 show the estimated yearly total electrical energy consumption and corresponding peak power demands for the three growth cases. In making these projections, certain key factors and assumptions influenced trends. These factors are: Actual population growth based on census figures has historically been less than projected figures. Use of the Outer Continental Shelf leasing impact scenarios discussed was used as the most realistic basis of projection. Employment will grow at an annual rate of about 1.5 percent in the economic sectors of trade services and fishing. The trade and service sectors will increase by about 4 percent per year as tourism and recreation opportunities increase. Manufacturing employment, primarily fish processing, will increase by 1.5 percent per 12 8 0 7 5 ~V 7 / ./ '("' / / 5 / '/ 0 6 / '" 5 V '\ ~HIGH 0 l7 ./ r ..... 5 V / " ./ V 5 , V ~ ~" ~ ~ ./ -...........-0 V --" IlMEAN V ...---I----I----. --./ ~. -' 1- 5 V '" ---_L..-- [(LOW -----1.---~ -------P""""" 0 -----~~ ~ .. Hl----r~ b.. __ ,!: FI" P" PROJECTED YEARLY I~P" ELECTRIC CONSUMPTION 2 2 CITY OF CORDOVA FIGURE 111-3 1 0 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Source: International Engineering Company YEAR Note: ~ Actual ,""~ 17 ,IVV"> L '~ V / IIVV"'o '~ / / 000 / / 000 / / ,~ lX , 1000 / HIGH) 16 15 14 13 12 7 000 V ./ 0"" '-., ..." V -----" ............ 000 V i-MEAN ,."", ,.-. l"""""'" i/ J-~.""... V ~~ ~-. 000 /" ,,/ ,.,- 1-............ ,.,...- / ~ ............. 00 - V ~ ~----' ,.""",-~ ... (:"ow ~ -------",.-.------------500 r"~ ~ 1-~ . ---."..,. ... tr [:1 ---PROJECTED YEARLY PEAK 000 f.t .-..Ii ~ --POWER DEMAND .-CITY OF CORDOVA .-.I r-- 10 6 4 l !!"""" FIGU"EIII-4 .. ,.,.. 1980 IMI 1982 "83 1.4 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1996 1999 2000 Source: International Engineering Company YEAR Note: (!] Actual year. The growth will keep pace with estimated increases in fish harvests. Surface transportation is assumed to increase by 1 to 2 percent pet year. This employment will result from increases in tourism and recreation. Government employment will grow at a rate of only one percent per year. Secondary employment estimates are based on an employment multiplier of 1.47. This low multiplier is reasonable in view of the convenience to purchase goods and services in Anchorage. As the trade and commercial sectors of Cordova's economy grow, a higher multiplier can be expected in the future. Population estimates are based on a population employment ratio of 2.0, the 1978 ratio. This ratio resulted in a forecasted population growth of 1,320 from 1981 to the year 2000 for the Cordova area. The low-growth scenario is used as the basis for change in the number of electric customers and the use per customer for the other growth scenarios. No OCS leasing. Half of the new growth for Cordova would come from new developments and improvements in the fish processing industry. 13 Half would come through development of the local service sector. Although no firm plans exist for new commercial and industrial facilities in excess of 350KVA, the City of Cordova is currently developing two marine areas which should be available for construction within two years. The south containment area consists of 12 acres immediately adjacent to the small boat harbor. This area is to be leased to firms requiring access to water. The loads in this area are expected to be large commercial users in the 25 to 250KW r~nge. The north containment area consists of 17 . acres immediately adj acent \.::0 the existing fish processors. This area will be zoned industrial and loads ranging from 150 to 1,000KW are anticipated whe~ the land becomes available. The rate of increase in per consumer residential electric use has slowed in recent years due to the rapid increase in the cost of electricity. Since 1982, residential electric rates have remained constant and State of Alaska Power Cost Equalization has actually reduced the cost to the consumer. (See Figure III-5). Per residence consumption is expected to increase slowly. It is believed that the residential consumer will pay the same amount for electric energy in constant dollars. If the general 14 120 110 100 90 80 70 t; 60 0 U 50 40 30 20 10 0 IZZI 1979 Residential Electric Bill (Per Month) COST OF 500 KWH AS OF' DECE~BER 31 1980 1981 1982 1983 COST TO CONSU~ER IS:sJ STATE ASSISTANCE Figure 111-5 198 .. inflation rate increases faster than the cost of electricity, then consumption will tend to increase. If the cost of electricity rises faster than inflation, then consumption will decrease. E. GENERAL INFORMATION ABOUT THE CORDOVA AREA Fishing and Fish Processing Cordova's economy is presently dominated by fishing and the fish processing industry. However, there are several other existing and potential sources of economic strength in the Cordova area. Among the most notable are tourism, which is actively being pursued by both the Cordova Chamber of Commerce and the City Council, wood products, oil, gas, coal and minerals. Cordova is host to a considerable amount of government facilities, including those of the U.s. Coast Guard, Federal Aviation Administration, U.s. Forest Service, and the Alaska Department of Fish and Game. The Federal Aviation Administration has announced plans to automate the facilities at Mile 13 airport and remote the Cordova facilities from Juneau. This would result in a reduction of FAA Staffing in the Cordova area, however, the electrical load would remain essentially constant. In addition to the Coast Guard Cutter Station in Cordova, the u.S. Coast Guard has established a helicopter detachment in Cordova and is currently constructing a bunkhouse and other facilities to support the air crews. Coast Guard activity in 15 the Cordova area will increase significantly over the next several years. Although mining was the early basis of Cordova's economy, fishing and fish processing have always played a major role in the economy. Cordova is the center of fishing and fish processing operations for the Bering River, Copper River and Prince William Sound areas. The fisheries industry in Cordova diversified considerably during the 1980's adding King, Dungeness and Tanner Crab, shrimp, herring, herring roe, herring roe-an-kelp, halibut and razor clams. Some of these fisheries have seen recent declines, although the long term outlook for these alternative fisheries remains good. Salmon continues to be the most important fishery, accounting for 75 percent of the value of fish caught in Prince William Sound. Presently there are four major seafood processing companies operating in the Cordova area. St. Elias Ocean Products, North Pacific Processors and Chugach Alaska Fisheries all have major facilities capable of canning and freezing significant amounts of salmon and other seafoods. The Copper River Fishermen's Cooperative provides a large scale freezing operation in the Cordova area but no canning capacity. The Copper River Fishermen's Cooperative has quadrupled their electrical load within the past four years and is expected to continue this growth rate for the next several years. 16 There are also a number of other companies that conduct highly specialized seasonal operations out of Cordova, particularly in the processing of herring and salmon egg products. Cordova also has several small locally b~sed firms which produce specialty salmon products. Included in these are Odiak Smokeries, Blake's Canning and Glacier Packing. Climate The Cordova area has a maritime climate characterized by cool summers, mild winters and heavy year-round precipitation. This type of climate is typical of the southeastern and southern coastal areas of Alaska where the ocean exerts a modifying influence to cause relatively low seasonal and diurnal temperature variations. The nearness to the ocean, plus the frequent lows which develop or move out of the Gulf of Alaska, result in heavy precipitation. Precipitation levels in the Cordova area are further exaggerated by the rugged Chugach Mountains, while the steeply rising slopes of Mount Eyak and Mount Eccles cause still higher precipitation totals in the City itself. Cordova's winters are relatively mild. The coldest month (January) averages about 26 degrees Fahrenheit and, although temperatures as low as minus 33 degrees Fahrenheit have been recorded, extremely cold weather usually is of short duration. On the other hand, summer temperatures in the community tend to be on the cool side, averaging between 50 degrees Fahrenheit and 55 degrees Fahrenheit, with daily maximums reaching into the low 60's in July and August. The record high temperature in Cordova is 17 84 degrees Fahrenheit, a mark set back in 1946. As with extremely cold weather, however, lengthy periods of high temperatures in Cordova are rare. Heavy year-round precipitation is a dominant feature of the climate of the Cordova area. Total precipitation averages 81 inches per year at the Cordova Airport and 177 inches annually in the City itself. In winter, precipitation occurs as snow, and since winter temperatures in Cordova are relatively mild, the snow here has a high water content and snow loading factors are very high. According to the u.s. Army Corps of Engineers, the design snow load factor for Cordova should be 100 pounds per square foot, the highest in the State. In practical terms, it means that people have to guard against excessive snow accumulations on roofs, boats and light airplanes. Cordova experiences strong winds in excess of 75 mph several times a year, predominantly in the fall months. Fishermen in Prince William Sound often encounter severe storms. Average annual wind speed at Cordova is less than five miles per hour, with easterlies being prevalent except in April and May when winds shift to east southeast and in June when the prevailing winds are from the southwest. Occasionally, however, pressure patterns cause cold air from the interior to flow across the coastal ranges to the Pacific Ocean. When this happens in the Cordova area, these winds funnel down across two glaciers near the airport to cause strong cross winds that sometimes prevent aircraft from landing. 18 Vegetation and Wildlife Cordova is surrounded by the Chugach National Forest. The timber in this area is characterized by overmature mixed stands of Sitka spruce and western hemlock, with minor amounts of mountain hemlock and black cottonwood. Pure Sitka spruce stands usually only occur along river banks, although this species does dominate stands on the glacial flats in the Copper, Martin and Bering River valleys. The Copper River delta flats are a vast tidal marsh with a vegetation cover of salt and freshwater marsh grass and grasslike plants, willow, alder, and a few scattered stands of Sitka spruce and cottonwood. This is a major resting, feeding and nesting area for migratory birds on the Pacific flyway and is within the 330,000 acre Copper Delta Game Management Area which was jointly established by the u.S. Forest Service and the Alaska Department of Fish and Game in 1962. The productivity of the waterfowl habitat in the area was greatly reduced by the 1964 earthquake which uplifted the beach by about six feet and converted productive brackish ponds into infertile freshwater ponds. To some extent, this loss has been offset by the uplifting of islands and sandbars and their subsequent conversion to prime wildlife habitat. The u.S. Forest Service has expended a considerable effort to improve habitat. Big game animals in the Cordova area include black and brown bear, mountain goat, deer and moose, while glacier bear have been observed in Port Gravina. Moose, however, are not native to this area and the present herd of 500 or so is 19 descended from 26 animals which were transplanted here in 1949. Furbearers are also plentiful and include wolf, wolverine, lynx, beaver, mink, muskrat, marten, land otter, fox, weasel and coyote. While a number of big game hunters are attracted to Cordova, the area is best known for its waterfowl resources. The largest known concentrations of Trumpeter Swans in North America nest here, as well as 15,000 to 20,000 Dusky Canada geese and a variety of ducks, geese, cranes, shore birds and other sea birds. Bald eagles are also numerous, although the highest concentrations are in the Port Fidalgo area, closer to Valdez. Sea lion and seal inhabit several areas along the coast, while the coastal waters and streams afford a range of fishing opportunities to the sportsman. The Copper, Bering and Eyak River systems contain large king, red and coho salmon fisheries which are used by commercial, subsistence, and sport fishermen, with the Eyak River coho salmon fishery and several small trout lakes being especially popular with local sportsmen. Clam digging is a popular pastime, while the waters of Prince William Sound provide excellent fishing opportun- ities for salmon, red snapper, flounder, halibut, crab and shrimp. Population Since 1960, Cordova has experienced a period of steady growth, due primarily to expansion within the fishing and fish processing industry and the resulting lessening of seasonality in that 20 industry. Between 1960 and 1970, Cordova's population increased 28.6 percent and this rate has been surpassed since 1970. The estimated population of 2,000 in the Cordova area in 1975 is 32.2 percent above the 1 i 513 persons recorded as living in Cordova and Meakerville by the 1970 census. However, some of this apparent increase is due to the fact that the Cordova planning area (Cordova and road-connected areas as far out as the Cordova Airport) is larger than two census enumeration districts. The 1980 census indicates a population of 2,523. Transportation Cordova is presently accessible only by water and by air. The rugged Chugach Mountains, with their massive icefields and glaciers, have greatly restricted access to Prince William Sound. Only two land routes into the area are developed at this time. One of these is via railroad tunnels between Portage and Whittier and the second is via the Richardson Highway south of Glennallen to Valdez. No land routes connect any of the other communities of Prince William Sound. The City Council of the City of Cordova has recommended completion of the Copper River Highway. Cordova Chamber of Commerce plus other groups in the community are also supporting connecting Cordova with the rest of the State with an overland route. Also under serious discussion is an overland road to the Katalla area which would provide access to the coal, oil, and gas resources of that area. Whether the overland route out of Cordova is constructed or not will not have a major impact on 21 power requirements during the period under consideration of this study. Even by Alaska standards, Cordova has exceptional airport facilities and airline service for a town of its size. The community has two State airports. Cordova Airport, located at Mile 13 of the Copper River Highway, has a 7,500 foot paved runway capable of accommodating jet traffic. The Eyak Lake Airstrip, located on the north shore of Eyak Lake, has a 1,950 foot gravel runway which is used by small planes weighing up to 12,500 pounds. Two helicopter facilities are also located at this airstrip although only one of these has a wooden platform. Finally, Eyak Lake itself serves as a seaplane base and has a 10,000 foot landing area which is used by float planes or those equipped with skis, depending upon the time of year. Wood Products The wood products industry has been a small, but significant element in Cordova's economy since the community was founded. In the early days, timber was cut sporadically to meet demands for mine timbers, railroad ties, fish traps, dock pilings, and community needs. Today, a small sawmill at Mile 13 cuts dimension lumber primarily for use in the local area. ro1ineral Development Although mining played an important part in Cordova's economy in the past, exploration and development of metallic and non-metallic minerals in the region is presently at a fairly low level. This does not mean that the region has a low 22 mineral potential. Known occurrences of metallic minerals include copper, gold, silver, molybdenum, antimony, nickel, iron, lead and zinc and known non-metallic minerals include coal, limestone, sand and gravel. Most of the copper produced in Alaska came from the Kennicott mines in the Chitina River valley between 1911 and 1938. Four mines in this area yielded about 1.2 billion pounds of copper from ore averaging an extremely high 12.4 percent copper. The discovery of these deposits led to the construction of the Copper River and Northwestern Railroad and the development of port facilities at Cordova. However, these deposits are now believed to be largely depleted although small scale operations are periodically undertaken, such as a recent operation which was engaged in hand sorting old tilings and flying out the ore. Gold and silver have been produced in the Cordova region in the past, but no major gold rush occurred here. Coal The Bering River Coal Fields, among the largest undeveloped coal fields in the world, have been receiving a considerable amount of attention recently with the transfer of this area to the Chugach Natives as part of the Alaska Land Claims Settlement Act. Recent tests of the Bering River Coal Fields found a particularly high quality anthracite coal in the 13,000 to 14,000 BTU per pound range which is unique in Alaska. The bituminous coal in the area also has a very high 23 BTU content, as well as being a particularly dry coal (low moisture content). Development of the Bering River Coal Fields has been hindered since the turn of the century by lack of a suitable transportation mechanism to remove this coal and bring it to market. Efforts as long ago as 1906 to build a shipping port in the area have failed. Chugach Alaska Corporation has been actively investigating the feasibility of developing the Bering River coal resources. Recent estimates of the energy required to operate a world class coal mine in this area range upward of 50 megawatts, with an annual energy requirement of 120 million kwh. This is approximately ten times Cordova's current demand and it is possible or probable that, should such a coal mine be developed, Cordova Electric Cooperative would enter into some form of power purchase agreement with the corporation developing the facilities. F. POTENTIAL FUTURE DEVELOPMENT Fishing Over the next several years, the fishing industry will see a significant change. Part of the change will come about from increased marketing efforts in the salmon industry, particularly in the frozen salmon area where processors feel the most growth will come. There is also a growing market for Tanner or Snow crab. This is a market which did not exist a few years ago. Cordova will be one of the prime areas for processing Tanner crab. 24 There have been many efforts toward development of a bottom fish industry for Alaska. Although Kodiak is the most likely site to support bottom fish processing in the Gulf of Alaska, Cordova may see significant impact. A problem that Cordova faces is the extremely high cost of electric energy like Valdez (on hydro), and Kodiak (on hydro). compared with communities Seward (on natural gas), The State of Alaska has made direct equity investments in the hydro electric facilities in Kodiak and Valdez and provided grants in aid of construction to Seward to expand and improve their electric system. Electric energy costs in these communities range from 50 to 90 percent of the cost in Cordova. The Governor of Alaska has appointed a task force to examine the possibility of averaging wholesale power costs around the State of Alaska. If such a program is implemented, the cost of electricity to the major industrial users in Cordova will drop by almost 50 percent. This would provide a major incentive for processors and other heavy industrial loads to locate in Cordova. Without Power Cost Averaging (or the State of Alaska selling power from the hydro facilities in Kodiak and Valdez at its true cost of production) any major new processing growth will probably occur in one of these other communities. That will not prevent the existing processors in Cordova from moving more and more into the fresh/frozen market. 25 Oil and Gas Oil and gas developments played a role in Cordova's economy in the early days and promise to do so again in the future. The Katalla field, discovered in 1902, was Alaska's first producing oil field. Thirty-six shallow wells were drilled here although only 18 produced oil in commercial quantities and the most productive yielded a mere 20 barrels of crude oil per day. All told, the entire Katalla field produced only about 154,000 barrels of oil in over 30 years of operation. 1985 and 1986 will see oil and gas exploration in this area once again. Upcoming oil and gas-related developments, however, promise to have a much more substantial and permanent impact on Cordova's economy. The Gulf of Alaska is a major undeveloped petroleum province although estimates of its magnitude remain highly speculative. For example, the Alaska Department of Natural Resources has estimated the Gulf to have combined on-shore and off-shore reserves in the vicinity of 8.8 billion barrels of recoverable oil and 64.2 trillion cubic feet of natural gas. The U.S. Geological Survey's estimates are rather more conservative. That agency estimated the scale of undiscovered recoverable oil and gas resources of the entire south coastal area of Alaska to be in the neighborhood of .5 to 2 billion barrels of oil and 1 to 5 trillion cubic feet of natural gas from on-shore lands and between 1 and 6 billion barrels of oil and 2 and 17 trillion cubic feet of natural gas from off-shore areas. The Bureau of Land Management's estimates for the area between 26 Cordova and Yakutat which is scheduled to be leased are the "high" estimates developed by the u.s. Geological Survey, i.e. 2.8 billion barrels of oil and 9 trillion cubic feet of natural gas. Although the Trans-Alaska Pipeline route for transporting North Slope oil has been established and has been completed, the route for transporting North Slope natural gas has yet to be determined. Three major route proposals are under consideration. G. POWER COST DATA Background Cordova Electric Cooperative is not interconnected with any other system and generates all of its power with diesel engines. Since its formation in 1978, the Cooperative has purchased two new generators and built a new power plant. Both Cordova Electric Cooperative and the Alaska Power Authority are investigating alternative forms of energy to replace the high cost energy generated with diesel fuel. There are many possible alternatives, but none are considered of high enough probability to be included in this report other than the effect of the Humpback Creek development. Of the possibilities under consideration, it is not anticipated that any major solution will be found and brought on line within the next fifteen years. 27 Analysis of System Reguirements 1. outage Record. The outage record of Cordova Electric Cooper- ative has averaged above the REA guidelines of five consumer hours per year. Figure 111-6 shows the cause of these outage hours with the 15 minutes required to place an engine on line, it is difficult to plan to improve the outage record caused by generation. The major source of outages is dig-ins by contractors. 2. Future Capacity Requirements. There have been many studies which have attempted to determine the future population and industrial composition of Cordova. These were summarized by Stone & Webster in the Cordova Power Supply Interim Feasibility Assessment. Recently, CEC solicited opinions from employees, Board members and members of the community as to their current views of Cordova's future. In general, the views tend to agree with Stone & Webster's analysis of slow but steady growth. Figure 111-7 shows the peak load projections of Stone & Webster. This is the peak load averaged over 15 minutes which was reached at any time during the year. With the fishing industry, the peak occurs during summer months. Cordova Electric Cooperative must be able to meet this load even with the largest unit down for repairs. This is called the 28 Figure III-6 SERVICE INTERRUPTIONS Average Consumer Hours Without Power Year Plant Storm Prearranged All Other Total 1979 4.12 .15 11. 70 6.21 22.22 1980 2.79 .76 4.29 1. 30 9.14 1981 2.40 2.61 .57 2.12 7.70 1982 8.26 0 .11 3.58 11. 95 1983 .95 .14 .33 3.77 5.19 1984 .84 .98 .12 2.22 4.16 All Other categories: Hours Without Power Source 1983 1984 Fault .56 .95 Dig-In 2.51 .74 Unknown .70 .22 Overload 0 .31 Total 3.77 2.22 "firm" capacity. The firm capacity of our total system (both power plants operating, but the largest unit out of service) is 8153 KW. This is sufficient to meet our summer loads until the 1990's. Individually, the Orca Plant has a firm capacity of 2400 KW, the Eyak Plant a firm capacity of 3250 KW. Obviously, both power plants will meet the peak load with a major unit out of service. However, neither power plant alone can do this. Equally important is the winter load. During the winter months, Cordova Electric Cooperative must be able to meet the loads with one unit out of service for an extended period of time (such as for an overhaul) and have another engine fail with a mechanical problem. Since the maximum loads occur during the summer months, Cordova Electric Cooperative does not schedule any work on engines that would have them out of service during those months for an extended period of time. Figure 111-8 shows the peak winter loads. There are several important points to consider in the chart. First, during 1979 and earlier, the peak winter electrical loads (due to the crab fishery) ran approximately 90% of the summer peak loads. Since 1980, the winter loads have run 2/3 of the summer peak. Figure 111-8 is based on 2/3 of the summer peak load. If the winter crab industry is expected to be reestablished, the 29 PEAK SYSTEM DEMAND 1985 POWER COST STUDY 12.0 ~----------------.---------------------------------------~ 11.0 Firm Capacity 10.0 9.0 8.0 ~ :; 7.0 :>- ------~ -------- ""-'" 0 6.0 -"7 ~-.. t '..:.: 5.0 -=-w 0 4.0 3.0 2.0 1.0 I 0.0 -+---,.-------,----,---~I ----r--..-1--,-..... -.----.-------r--l--I -1---r-----r-·-T---:·:-~ 82 84 86 88 90 92 94 gc, 98 2(j~)O YEAR Figure III-7 WINl-ER PEAK DEMAND 1985 POWER COST STUDY 12.0 1 1 .0 -Reliable Capacity 10.0 - 9.0 - 8.0 - ~ > 7.0 :2 - '-..../ 0 6.0 z « - ----------.... - ~ 5.0 LLJ -- -----------------0 ~-- 4.0 - --~-----~ ---~ 3.0 -C/ 2.0 - 1 .0 - 0.0 1 I I I I I I [----1---1----I---T----r I I -----,-----r---; 82 84 86 88 90 92 94 96 98 2000 YEAR Figure 111-8 winter peak loads would be considerably above that shown. For the purposes of this document, only the "no winter fishing" case will be considered. 3. Fuel Supply. All diesel fuel used by Cordova Electric Cooperative is supplied by Chevron USA who maintain bulk storage tanks near the Orca Power Plant. Cordova Electric Cooperative has investigated the feasibility of install- ing its own bulk storage tanks on several occasions. The current cost differential between the wholesale price of diesel at the Kenai Refinery and the price paid by Cordova Electric Cooperative in Cordova does not support installation of tanks by Cordova Electric Cooperative. This option will continue to be reviewed periodically in the future. Cordova Electric Cooperative currently maintains a 10,000 gallon storage tank at the Orca Power Plant. In addition, a 16,000 gallon fuel tank and 8,000 gallon bulk lube oil storage tank are currently being installed. These tanks will be well diked and will meet all Environmental Protection Agency requirements for pollution prevention and control. During the winter months, this tankage will provide approximately seven days supply of fuel. During the summer, this will provide a four day supply of fuel. Chevron has recommended a four to seven day emergency reserve supply. 30 The Eyak Power Plant currently has the following tanks: Size 130,000 gal. 10,000 gal. 4,000 gal. 1,000 gal. 4,000 gal. 300 gal. Use Bulk Storage Not in Use Fuel Storage for #7 & #8 Day Tank for #7 & #8 Enterprise Day Tank #1 Intermediate Day Tank In addition, two 10,000 gallon fuel oil tanks are currently being installed and the 130,000 gallon bulk storage tank is to be retired. A 10,000 gallon waste oil storage tank is also being installed that will hold waste lubricating oils to be used to heat the Eyak Power Plant during the periods it is not in operation. Adequate diking is being installed around these tanks to meet all Environmental Protection Agency requirements for pollution prevention and control. 4. Real Estate and Zoning. The location of the Orca Power Plant is currently unzoned, but the use of the entire area is heavy industrial. Within a short distance of the Power Plant is the Morpac Fish Processing facility, the Chevron fuel tank farm, the municipal dock and an industrial staging area. If this area is later zoned, our use of the area for power production will be protected. The property of the Eyak Power Plant is within the Eyak Lake AMSA (Area Meriting Special Attention). This area is under study for inclusion in a special restrictive use zoning to protect and improve the water 31 quality of Eyak Lake. The use of the Eyak Power Plant site for power production is a non-conforming use. Cordova Electric Cooperative will be allowed to continue the present use of the site, but expansion or additions will not be permitted. 5. Warehousing. Under cover, out of the weather storage is very limited. The line materials building consists of an open faced storage shed used for storing line hardware, such as bolts, insulators, fused cutouts, etc. Steel and PVC conduit, pipe and riser guard are stored on the ground under the open faced warehouse. There is no security for these items, but vandalism and theft do not appear to be a problem. The "line shed" is an old two story building left over from Copper River Highway construc- tion days. This building provides storage for underground construction materials, meters, and street light parts. This building is heated by electric heat. The building provides the only secure storage for line materials. 6. Power Plant Automation. The Orca Power Plant was designed to run unattended. The control system is a straight-forward relay operated system that contains the following capabilities: 32 a. Remote start/stop of each engine from the Eyak Power Plant. Future improvements will allow the Eyak Power Plant to control the specific load on each unit. b. Selection of a "first unit" by manual switch. The first unit is the unit that will remain running if two engines are no longer required. c. Automatic start/stop of the standby unit by the "first unit". Load sharing automatically provides that each engine take one-half the load when both are on line. d. Automatic Black Start. If the power goes off, both engines will try to start. The first engine up to speed will automatically place itself on line and take the load. This feature is normally not used since the initial cold load pickup is usually above the capacity of either engine by itself and would result in a shutdown of that unit on overload. Note that the system does not have the capability to be expanded to handle the involved decision making if a third unit is added to the power plant at a later time. 33 IV. BACKGROUND A. BACKGROUND Cordova has a long history of hydro electric investigations in addition to the operating hydro facility that was constructed on Humpback Creek in 1908. A development began on Power Creek in the 1920's but technical problems forced abandonment and, other than numerous studies, there have been no specific efforts to build any hydro electric development on Power Creek. Other investigations of hydro electric facilities in the Cordova area include a 1968-69 plan by Cordova Public Utilities to place a major storage hydro project on Power Creek. An application was prepared for submission to the Federal Energy Regulatory Commission, but was ultimately not submitted. This plan called for three turbines of 1,250 KW each for a total installed capacity of 3,750 KW. Although no cost data is available for this project, personal communications have informed us that the project was not submitted to FERC because it became obvious that construction was going to be much more expensive than originally anticipated and was not economically feasible with the price of diesel fuel at that time. There were also serious questions concerning the technical aspects of this construction. In September 1977 Marks Engineering prepared a document for Cordova Public Utilities entitled "1977 Power Cost Study Supplement A Hydro Electric Run Of River Alternative--Power Creek". The options offered in this document included a 5MW 34 run of river development with an installed capacity of 5,000 KW and total annual generation of 14,200,000 kwh per year. It was projected that this development would meet 60 percent of Cordova's energy needs at a construction cost of $8,000,000.00. This cost estimate was reviewed by independent sources and felt to be unreasonably low and the project was not pursued. In 1979 the u.s. Army Corps of Engineers commissioned a "Reconnaissance Study of Hydro Electric Alternatives in the Cordova, Alaska Area". As part of this study, the Corps of Engineers engaged CH2M Hill to investigate several of the potential hydro sites. Among the sites identified by CH2M Hill in their Reconnaissance Study was a run of river development on Power Creek, a run of river development on Humpback Creek and another site on Crater Lake. Of the sites that CH2M Hill investigated, only these three had positive benefit to cost ratios. The Corps of Engineers elected not to pursue the study of Humpback Creek and Crater Lake, instead concentrating their efforts on Power Creek. The Corps felt that of the three streams only Power Creek could make a significant impact on the cost of energy in Cordova. The Corps of Engineers' final determination on Power Creek recommended that it not be pursued. Their study showed a construction cost on Power Creek of $62,000,000.00 for an annual cost, including operations and maintenance, of $6,224,000.00. The benefits to be achieved were $5,400,000.00 a year yielding a benefit to cost ratio of .87. As a portion of the work for the Corps of Engineers, the Fish and Wildlife Service investigated the environmental 35 concerns of Crater Lake, Humpback Creek and Power Creek, the results of this study will be discussed later under the environmental portion of this report. In 1981 the City of Cordova, in conjunction with the Alaska Power Authority, hired International Engineering Company to perform a second Reconnaissance Study of the Cordova area which broadened the scope to include other energy sources besides hydro electric. Investigated were coal developments in the Bering River area, oil and gas in the Katalla area and several other energy conservation and alternative measures such as wind power, burning wood for power generation, and so on. This study was not conclusive in finding alternatives, but recommended areas for additional study. In 1982 Stone and Webster Engineering Corporation was hired by the Alaska Power Authority in conjunction with the City of Cordova and Cordova Electric Cooperative to perform a preliminary Feasibility Assessment of several alternatives for Cordova. This study identified Silver Lake as having the potential of meeting all of Cordova's electrical energy needs until beyond the year 2000 at a construction cost of $110,000,000.00 (1985 dollars). Even though this project is technically feasible and offers a positive benefit to cost ratio, it is currently believed to be unfinanceable for a community of 2,500 people. This study also looked at Power Creek, Humpback Creek, as well as several smaller hydro projects. These projects were again ruled out since individually they only meet a small portion of 36 Cordova's energy needs and require continued use of diesel, making them more expensive over a life cycle than the Silver Lake alternative. Figure IV-1 tabulates the major alternatives investigated by Stone and Webster. Since each of the Stone and Webster alternatives provide a total energy solution, it is not possible to directly compare them with Humpback Creek which will generate only a small portion of Cordova's needs. Stone and Webster determined the peak loads and total generation for Cordova Electric Cooperative based on 1982 projections. Since that time changes in the fishing industry and energy conservation measures have reduced our projection of total kilowatt hour generation. The 1985 Power Requirements Study, prepared by Cordova Electric Cooperative and approved by the Rural Electrifi- cation Administration contains the peak generation and total generation figures as shown in Figure IV-2. The projections from the 1985 Power Requirements Study are used in this document. B. CEC PROJECT SELECTION PROCESS Cordova Electric Cooperative has for many years actively pursued alternatives to lower the price of electrical energy. The results of all of the studies outlined in the previous section indicate that there is not a single project that will solve all of Cordova's energy needs for a reasonable cost. To this end, CEC has investigated and undertaken projects each of which will lower the cost of energy by a small amount, but when taken 37 Option Figure IV-1 LIFE CYCLE COSTS OF ALTERNATE ENERGY SOURCES FOR CORDOVA (From Stone & Webster) Capital Cost Life Cycle Costs Existing Diesel $14.0 Million $181.4 Million Coal Katalla Plant 59.2 Million 153.0 Million Local Coal 48.0 Million 138.3 Million Hydro Silver Lake 85.4 Million 103.4 Million *Crater Lake 11. 2 Million *Sheep River Lake 33.0 Million 112.3 Million *Lake 1488 33.0 Million Transmission *Cordova to Valdez 35.2 Million *Teeland to Glenallen 61.6 Million 160.0 Million Cordova to Katalla 28.6 Million Note: *A combination of these alternatives is required to meet long term energy needs. 1985 1990 1995 2000 Figure IV-2 COMPARISON OF PEAK LOADS AND TOTAL GENERATION Peak in Megawatts Annual Generation in Million KWH Per CEC Power Per Stone & Webster Requirements Study Peak Annual Peak Annual 5.0 22.0 4.9 18.9 5.8 24.7 5.8 21.7 7.4 30.1 7.4 27.1 8.6 35.8 8.6 32.8 together have the possibility of making significant reductions in the cost of energy_ For example, in 1983, CEC investigated the feasibility of installing a waste heat system to make use of heat from the diesel generators. It was pointed out at that time that the waste heat system could reduce energy costs by as much as ten percent. This waste heat system is still under investigation by the Alaska Power Authority and may, in fact, be implemented in future years. In 1983 CEC received a grant in the amount of $250,000.00 from the Legislature which was put towards construction of CEC's new power plant. This grant resulted in annual savings of approximately 2 percent on electric bills. In 1984 CEC sought to obtain a lower cost level of financing for its debt. Depending on the interest rate that could be achieved, the cost of electricity could have been reduced by as much as 17 percent. Due to political considerations, refinancing of CEC's debt was not considered during the 1985 Legislature, but a grant in the amount of $150,000.00 to help CEC offset the high cost of debt was received from the Legislature. This grant has enabled CEC to keep rates stable and avoid an increase of about five percent in electric rates. During the spring of 1985, CEC reviewed possible hydro electric sites that could reduce the cost of electrical energy in Cordova. Among those sites that were identified were Power Creek, Crater 38 ~ake, Humpback Creek, Sheep River Lake and Lake 1488. Crater Lake was ruled out early in the selection process due to the fact that it is being used as a major source of water for the City of Cordova and the community needs for water would have reduced the amount of energy to be obtained from the Crater Lake site after the City water needs were met. The remaining water would have generated less than 1,000,000 kwh per year. A combined water/power facility at Crater Lake was investigated by the City of Cordova in 1980 and 1981. At that time it was felt that the hydraulic head required for water transmission would reduce kwh generation below the break even point. Power Creek was investigated, but it was felt that a minimum of $10,000,000.00 to $15,000,000.00 would be required for any significant construction and the studies necessary would take several years delaying the net benefit. Humpback Creek was identified as the primary site for efforts during 1985 since it had sustained an existing hydro facility on it and presented a fairly straight forward construction project. It was felt that the project could be constructed and on line within two years. This report is a summary of the investigations undertaken on Humpback Creek. C. HISTORICAL BACKGROUND On December 12, 1907, T. R. Carpenter, o. Roberts and Leon Giroux filed the following notice: WATER LOCATION NOTICE That we the undersigned, citizens of the United States of America, and of the town of Cordova, Alaska, have this the 12th day of December, 1907, located (1,000) one-thousand 39 inches of water of the stream or creek called Power Creek formerly known as Humpback Creek situated in Cordova Bay, Mining District, and emptying in Cordova Bay, about two miles in a northerly direction from the Orca Cannery of Cordova Bay all of the Cordova Mining District of Alaska, and recorded in the Cordova Recording District of Alaska. The said water mentioned in this notice to be used for generating power for the purpose of mining, milling, townsite lighting and commercial purposes (electrical power) and it is further understood that said water to be used for transmitting power to the town of Cordova and the surrounding vicinity where mining, milling, and lighting operations are carried on. 1907. Located this 12th day of December, Locators: T. R. Carpenter o. Roberts Leon Giroux Sometime between then and November 9, 1908, these three individuals, assigned their water rights for this site to Henry Bratnober. On November 9, 1908, Henry Bratnober sold his rights to this site to the Cordova Power Company. In October and November of 1908, A. Judson Adams performed a survey of the pipeline and transmission line of the Humpback Creek power plant. This survey has badly deteriorated with use and has been photographed by CEC to save the data. On May 17, 1909, the hydro power site was placed in commercial operation and the community of Cordova had electric power (and a movie theater). 40 In the fall of 1910, C. H. Kiehl, an engineer from Seattle, Washington, was hired to prepare a "Report on the Water Supply and Water Power Propositions for the Cordova Power Company, Cordova, Alaska". This is the first reference to an operating hydro site on Humpback Creek. According to this report, the facilities consisted of a 60 foot high wood crib dam, a 1,350 foot 30 inch wood stave pipeline, and a double nozzle pelton wheel with a direct connected generator. The hydro had an effective head of 175 feet and 125 KW power output. A coal fired boiler driving a 250 HP engine was used for winter power when the stream stopped running. Shortly after 1910, the assets of the Cordova Power Company were sold to the Alaska Public Utilities Company. The facility at Humpback Creek consisted of living quarters and a power plant. Figures IV-3 and IV-4 are photographs of the Humpback Creek facilities furnished by Virginia Mesman. There is no specific record as to when the hydro plant was shut down. It is known that the plant was not in operation in 1952 when the City of Cordova bought the electric, water and telephone utilities from Alaska Public Utilities Company. A local rumor reports that the power plant burned down. The next reference to Humpback Creek is in the mid 1970's when the Alaska Department of Fish and Game considered building a fish hatchery in the lower 41 Figure IV-3 Figure IV-4 ':ii .. reaches of Humpback Creek. This hatchery was not built. The U.S.G.S. maintained stream flow data on Humpback Creek for the period of October 1973 to September 1975. In 1979 the U.S. Army Corps of Engineers (Alaska District) commissioned CH2M Hill to perform a "Reconnaissance Study of Hydro Power Sites Near Cordova Alaska". The CH2M Hill report called for a much more extensive development of Humpback Creek. The CH2M Hill plan (developed without a site visit) called for a concrete diversion dam, 6,625 foot flume, 700 foot penstock (both 30 inches in diameter) and 1,010 KW Power Plant . The July 1979 issue of the Alaska Journal contained an article by Virginia Messman about life at the power plant on Humpback Creek. There are three dams on Humpback Creek called Humpback 1, 2 and 3 with Humpback 3 being the lowest and by far the largest. These dams were inspected by the State of Alaska Department of Natural Resources in June 1980, and all three were considered unsafe and unusable. Their report recommends destruction of the Humpback 3 dam. Local legend reports that the Forest Service attempted to destroy the dam several years ago and succeeded only in creating a small breach in the west abutment which allows the water to escape. There are hundreds of ~housands of cubic yards of gravel held back by this dam. Destruction of this 42 D. /'''" dam would result in a major scouring of the downstream drainage, possibly even causing the river to change course in the lower reaches. Dams 1 and 2 were used for trash removal during periods of high flow. The Eyak Corporation has received conveyance of the land in the Humpback Creek area under the ANCSA. The City of Cordova has indicated a desire to obtain these lands under Section l4(c)(3) which allows municipal selections from Native allotments. There are no recorded easements in the area under consideration for the hydro electric project. CONSIDERATION OF ARCHEOLOGICAL ASPECTS A review by Douglas Reger, Regional Archeologist, u.S. Forest Service, in 1974 of the Humpback Creek drainage area has indicated that there are no archeological values in this area. This letter is attached as Figure IV-5. Several people have documented the historical value of the remains of the old hydro electric site. These have been reviewed and a discussion of each follows: 1) Pelton Wheel and Generator. The power plant building from the original hydro electric site on Humpback Creek was removed several years ago. The pelton wheel, governor, generator and other items are badly rusted. One of the buckets on the pelton wheel is broken, but the overall condition of the equipment is good considering its age. The hydro electric project proposed for 43 --UNITED STATES DEPARTMENT OF AGRICULTURE FOREST SERVICE REPLY TO: 2360 Special Interest Areas SUBJECT: Archeological ~sance, Hmpback Creek R-10 ,", .. : v l: I " :~ 'I TO: Forest Supervisor, ~U;ach National Fo.rest ~ 30, 1974 An archeological reconnaissance was candlx:ted at the ItDUt:h of Hurpback Creek by the Regional Archeologist on October 22, 1974. 'l1le area is ~5 miles oor+=beast of COrdova! Rena.ins of a historic ~ " are pmsent on the south bank of the Creek rrouth. concrete~, Pelton water wheel ~ generator ~ misO!lIaneous npgem remaliiS 'We%e fOund. t Service Sl'ii<i these remains to be fran the CO;dcya Power co. powm:house licensed under FPC pemit 11931. The pexmit was applied tOr in NOViiibei' 1924. 'Dle incubation beds proposed by ADF&G should not dist.uIb the site. 'Dlis is actually a respc:IlSil:xi.lity of the State of Alaska as the. land is tenative1y awroved for transfer to them. Included in the ADF&G p.rcposal, mwever, is the possibility of destJ:u::tion ~dam assccfated wlJ;b the alxJw pgwerlDuse. b d@..,site is on Forest_ ._~ ~ should be c:onsidexed an integral part of the total site. I suggest the State be contacted about their feelings oonceming the pcMe.rhouse. If they regard it as historic then the dam w::>uld also be historic and Im.lSt be tl:eated acoording1y. Enclosure Figure IV-5 construction on Humpback Creek will not be located within 500 feet of the existing pelton wheel and generator. 2) Building Foundations. The foundations for two buildings currently exist and the tin roofing for one of the buildings has collapsed within the foundation. There is no structure to the buildings remaining and there are very few remnants of people that lived there. The area is strewn with old pieces of pipe, valves, generator stators, etc. The hydro electric development proposed for Humpback Creek will not be located within 500 feet of • the building remnants. 3) Pipeline. The pipeline serving the original hydro electric facility was approximately 1,350 feet long and consisted of a 30 inch outside diameter wood stave pipeline. There are four separate areas of this pipe that have to be considered separately. The highest elevation pipe ran from the old dam site along a notch cut in the east bank of Humpback Creek at an elevation ranging from 10 to 60 feet above the Creek bed. Approximately one-half of the pipe in this area has washed away and there are no remnants of pipe rings or any other construction. An additional 25 percent of the pipe in this area has been covered with rock slides from the east abutment. It is impossible to tell the condition of the pipeline in these areas although the size and weight of rocks indicates that any remains 44 would be crushed. The remaining 25 percent of the pipe in this area is visible and consists of metal rings and a few badly rotted boards from the wood stave pipeline. The hydro electric development proposed would necessitate the removal of all remains of this portion of the pipeline. The second area of interest is the overhead span across Humpback Creek. There is currently one cable span still in existence across the Creek and remnants of a second cable can be found on the east abutment. There is no pipe left across the Creek and there are no other fastenings on the existing cable to indicate how the pipe was supported in this area. The new pipe will cross the Creek in essentially the same location, but the existing cable will not be disturbed. A third area of interest is on the west bank of Humpback Creek Canyon at elevations ranging from 60 to 100 feet above stream level. Approximately 50 percent of the pipe in this area is covered by rock slides and the condition is unknown. The remaining 50 percent is visible with approximately 70 percent of the wood stave rotted away, and the remaining 30 percent is badly deteriorated and cannot be moved without crumbling. The remains of the pipe in this area would be removed for the new pipeline. The last 500 feet of the existing pipe turns away from Humpback Creek Canyon and proceeds due west down the hill to the existing pelton wheel and generator. The pipe in this area 45 is covered with moss and some gravel. In several places the remains of the existing pipe can be seen. The wood still remains and the pipe retains its original shaping. Approximately ten percent of the pipe in this area is missing and an additional 25 percent is covered by dirt or other overburden and the remaining 65 percent is visible in varying degrees of decay. This portion of the pipe would not be disturbed by the proposed construction. 4) Dams. Three dams were constructed on Humpback Creek. These have been labeled dams #1, #2 and #3 by the Alaska Department of Natural Resources. Dams #1 and #2 are a considerable distance up river from the proposed project and consist of small structures to remove trash from the stream before they entered the main portion of the old hydro project. Sketches of Dams #1, #2 and #3 as prepared by the Department of Natural Resources are included as Figures IV-6 through IV-10. Dam #3 is approximately 500 feet down stream of the proposed intake structure and will be impacted by the proposed hydro electric development. The impacts and potential mitigation are discussed in Chapter VII-- Environmental Analysis. 46 TDP ~ I ' ~\ \ \ \ \' , I L .\ \ " '.(/ J Humpbo.c..K Creck ., t 1 .1 t1" TO .scc-.I" # I. I FRONt " " • l~-,. ---11'-~ :====------~~ ~. \-----------~---.------------~ -.. -.. ~-~~---~ .. ~~=----=.-=-. \\ \\ \ ! \ ! \ I i J,// J V / T 1 _.__---"-J Figure IV-6 ,\ I-,I + l t· J \:i " 1 \ \ -lor 6--1' ------"II..! ;;III \ \ ') 1 11 I ./ i ) FR 0 wT '<:--' I';: -------;J.? ---~ , ~--s -".\ 1 Figure IV-7 I I . \')- I _'V'_ H'unvl P b Or d< Cr~e ~ +=I-~ nv+ fo sc.C\./~ FRO tvl I II/.J ---------_._----------_._------.... ---.----.~ ._------------------- -··\ .. \_--O~~ __ ----(J----i-( ~----- \ Figure IV-8 \. (] -----r) ---··----·----0· -'-"--'-- ", '-.. ----------~~--.------. -----_ .. ---'----".- , ~.-----.., -.. --~ .. _.-.-_ .. _ .. --.-.-.. ------.- ~--'-------~---"'-'-._-- \ 1 \ ~ \ \ / .? \ /" \ 1/ 'v. Y / I _t: /' _/ -_, / k / _·-----:1-- ) -1/0'-- T . ,1;\ L lof , rl L/ I I I I I . . I \ I \ '. Figure IV-9 ------ t\ r! + I I h 0 ot-Q sCC>. C. I / I I / / , / ;' .I / ;' i f / / ./ /1) \ //I\~ ~~ oJ / / ! / / c-_· ----- r---(0 I /-----~----____ _ -< _---1- ~----~-------.'------------.. ---.-------'----) ---- Figure IV-IO v. HUMPBACK CREEK HYDRO FACILITIES A. HYDROLOGIC DATA The amount of energy from a hydro electric project is dependent on many factors. The limiting factor being the amount of water available for the generation of power. Humpback Creek has the advantage of a stream gauge which was installed in the stream from the fall of 1973 and remained operational until it was removed in the fall of 1975. Daily stream flow data is available for these two years. The Alaska Power Authority, in conjunction with the Department of Natural Resources, Division of Geological and Geophysical Surveys (DGGS), developed flow estimates for Humpback Creek based on available information. Appendix A is a copy of the report prepared by the Division of Geological and Geophysical Surveys. Cordova is characterized by a wide variation in precipitation levels. The local radio station in Cordova served as a voluntary observer for the u.S. Weather Service for many years and information from this station was used in calculating the mean flow. Information developed by DGGS indicates a mean annual flow of approximately 48 cubic feet per second (cfs) with a summer month mean of 78 cfs. This is based on an annual precipitation of 170 inches. The 170 inch annual precipitation is supported by information obtained at radio station KLAM which observed an annual average of 177 inches of precipitation. The drainage basin of Humpback Creek is very near the drainage basin of Power Creek. They are separated by a very narrow mountain ridge. Power 47 Creek has had stream flow information recorded for many years and it is possible to correlate the data on Humpback Creek to the data on Power Creek. Figure V-1 shows the average flow on Power Creek on an annual basis compared to the long term average flow. From this table it can be seen that water year 1975 was six percent above the long term average water flow. This may not be exactly correct for Humpback Creek since the Power Creek drainage basin has a larger percentage glacier coverage than does the Humpback Creek basin. Thus in dry years we can expect the Humpback Creek flow to drop off more rapidly than the Power Creek flow. To determine the amount of kwh available from Humpback Creek, several alternatives were considered. First, two different size installa- tions were investigated, one based on a 65 cfs maximum design flow and the other based on 85 cfs maximum design flow. Manufacturers were contacted to determine equipment efficiency at various flow rates within the anticipated range. The proposal from one of these manufacturers is included as Appendix B. Figures V-2A and V-2B show turbine output and kwh output for various flow rates for both the 65 cfs and 85 cfs maximum design flow rates. DGGS has provided mean monthly flows for Humpback Creek based on the u.s. Forest Service regression formulas and local precipitation. Two different precipitation levels were used (140 inches and 170 inches per year). These monthly mean flows can be multiplied by turbine generator efficiency to obtain annual kilowatt hour production. Use of 48 these mean flows tends to overstate the annual kilowatt hour production by 10 to 25 percent depending on the flow characteristics of the individual stream. Figures V-3 through V-6 show the annual kilowatt hour production for precipi- tation levels of 140 inches and 170 inches per year with turbine maximum design flows of 65 cfs and 85 cfs. A more accurate method of determining the annual kilowatt hour production is to use the stream data obtained in 1975 and correcting it for the long term deviation in a known stream such as Power creek. As seen in Figure V-1, Power Creek mean stream flow in 1975 was 106 percent of the long term average. Thus we can expect Humpback Creek to have been slightly above average in 1975. As mentioned above, 40 percent of the Power creek flow is provided by glacier run off. This keeps the flow higher during dry years. DGGS indicates that the 1975 data from Humpback Creek may be 5 to 15 percent above long term average. The observed flow rates on Humpback Creek for 1975 were then reduced by varying amounts and daily kwh productions were calculated based on anticipated flow, and turbine/generator efficiency. Figures V-7 through V-14 show the total kilowatt hours available from Humpback Creek given various water flows. As can be seen from these tables, the kwh production for the 65 cfs design water flow ranges from 3.3 million kwh per year to 3.6 million kwh per year and for the 85 cfs water flow from 3.5 million kwh per year to 3.9 million kwh per year. For the purpose of this study, an anticipated kwh production of 3.2 million kwh per 49 year based on 65 cfs design flow and 3.5 million kwh per year for 85 cfs design flows will be used. Selection of Turbine Size The selection of the optimum turbine generator size depends on available flow and net head available at the turbine. There is a range of design water flows that can be used to estimate the design output of a run of river hydro electric plant. In general these estimates run from 15 percent to 25 percent flow exceedence. That is, the predicted stream flow will exceed the design flow 15 to 25 percent of the time. Twelve month flow data takes into consideration the low flow periods during the winter months when for all practical purposes there is not flow available in the Creek. If flows during nine months of the year are considered and the months of January, February and March are not included in the calculation, a higher flow is obtained. Figures V-IS and V-16 show the 9 and 12 month flow duration curve that was obtained based on 85 percent and 95 percent of water year 1975 flows. Figure V-17 shows the range of design flows available based on the considerations above. The selection of the actual design flow is based on cost benefit analysis evaluating the construction costs of various size plants and pipeline and intake structures and will be discussed in greater detail in the next section. 50 Figure V-1 POWER CREEK FLOW CORRELATION FOR HUMPBACK CREEK Percent Of Main Stream Average Annual Year Flow Rank Stream Flow 1948 274.0 7 111 1949 247.0 16 100 1950 263.0 12 106 1951 231. 0 23 94 1952 245.0 18 99 1953 300.0 3 121 1954 233.0 22 94 1955 246.0 17 100 1956 220.0 26 89 1957 260.0 13 105 1958 321. 0 2 130 1959 219.0 27 89 1960 264.0 10 107 1961 259.0 14 105 1962 205.0 30 83 1963 250.0 15 101 1964 223.0 25 90 1965 236.0 19 96 1966 235.0 21 95 1967 265.0 8 107 1968 228.0 24 92 1969 181. 0 32 73 1970 288.0 5 117 1971 236.0 20 96 1972 211. 0 28 85 1973 195.0 31 79 1974 180.0 33 73 1975 263.0 11 106 1976 292.0 4 118 1977 336.0 1 136 1978 210.0 29 85 1979 264.0 9 107 1980 284.0 6 115 Figure V-2-A OUTPUT DATA SHEET For recommended 28 inch MID Twin Jet High Capacity Turgo Impulse Turbine. Note: The net heads are based on 175 ft. gross and 160 ft. net at 66 cfs. TURBINE FLOW HEAD OUTPUT KW KWH I (cfs) ( ft. ) (BHP) OUTPUT DAY 5 174 68 48 1,152 10 174 156 111 2,664 15 174 250 177 4,248 20 173 338 240 5,760 25 173 426 302 7,248 30 172 511 362 8,688 35 172 582 412 9,888 40 171 668 473 11,352 45 170 753 534 12,816 50 170 832 593 14,232 55 169 919 651 15,624 60 168 995 705 16,920 65 167 1,061 752 18,048 66 167 1,110 787 18,888 Figure V-2-B OUTPUT DATA SHEET For recommended 31 inch M/D Twin Jet High Capacity Turgo Impulse Turbine. Note: The net heads are based on 175 ft. gross and 163 ft. net at 85 cfs. TURBINE FLOW HEAD OUTPUT KW KWH/ (cfs) ( ft. ) (BHP) OUTPUT DAY 6 174 77 55 1,320 10 174 144 102 2,448 15 174 232 164 3,936 20 173 324 230 5,520 25 173 413 293 7,032 30 172 497 352 8,448 35 172 583 413 9,912 40 171 655 464 11,136 45 170 723 512 1,288 50 170 809 573 13,752 55 169 888 629 15,096 60 168 967 685 16,440 65 167 1,043 739 17,736 70 166 1,116 791 18,984 75 165 1,187 841 20,184 80 164 1,237 877 21,048 85 163 1,276 904 21,696 Figure V-3 ANNUAL GENERATION BASED ON MONTHLY MEAN STREAM FLOW DATA 65 cfs Maximum Flow 170 Inches Annual Precipitation Mean Mean HP KWH KWH Month Flow Output Output Generated January 10.4 163.4 115.85 86,156 February 7.6 113.8 80.6 54,197 March 9.5 147.2 104.3 77,615 April 15.7 261. 3 185.2 133,332 May 109.7 1110.0* 786.7 585,578 June 85.7 1110.0* 786.7 566,640 July 106.8 1110.0* 786~7 585,528 August 68.2 1110.0* 786.7 585,528 September 65.8 1110.0* 786.7 566,640 October 68.8 1110.0* 786.7 585,528 November 43.1 706.0 500.3 360,246 December 18.3 307.1 217.6 161,925 Total 4,348,913 *Flow exceeds rated output of turbine. Figure V-4 ANNUAL GENERATION BASED ON MONTHLY MEAN STREAM FLOW DATA 85 cfs Maximum Flow 170 Inches Annual Precipitation Mean Mean HP KWH KWH Month Flow Output Output Generated January 10.4 151. 0 107.0 79,608 February 7.6 103.8 73.6 49,459 March 9.5 135.6 96.1 71,498 April 15.7 244.9 173.6 124,992 May 109.7 1,276.0 904.3 672,799 June 85.7 1,276.0 904.3 651,096 July 106.8 1,276.0 904.3 672,799 August 68.2 1,089.7 772.3 574,591 September 65.81 1,054.7 747.5 538,200 October 68.8 1,098.5 778.5 579,204 November 43.1 697.2 494.1 355,752 December 18.3 292.7 207.4 154£305 Total 4,524,303. Figure V-5 ANNUAL GENERATION BASED ON MONTHLY MEAN STREAM FLOW DATA 65 cfs Maximum Flow 140 Inches Annual Precipitation Mean Mean HP KWH KWH Month Flow Output Output Generated January 7.6 113.8 80.7 60,041 February 4.9 66.6 47.2 31,718 March 6.9 101. 4 71.9 53,494 April 13.9 228.5 161. 9 116,568 May 87.4 1110.0* 786.7 585,528 June 61.6 969.3 686.9 494,568 July 88.9 1110.0* 786.7 585,528 August 54.8 884.1 626.6 466,190 September 53.8 869.5 616.2 443,664 October 54.1 873.9 619.3 460,759 November 32.8 544.1 385.6 277,632 December 12.4 200.6 142.2 105,797 Total 3,681,487. *Flow exceeds rated output of turbine Figure V-6 ANNUAL GENERATION BASED ON MONTHLY MEAN STREAM FLOW DATA 85 cfs Maximum Flow 140 Inches Annual Precipitation Mean Mean HP KWH KWH Month Flow Output Output Generated January 7.6 103.8 73.6 54,758 February 4.9 62.9 44.6 29,971 March 6.9 92.1 65.3 48,583 April 13.9 212.6 150.7 108,504 May 87.4 1,276.0* 904.3 672,799 June 61.6 991. 3 702.5 505,800 July 88.9 1,276.0* 904.3 672,799 August 54.8 884.8 627.1 666,562 September 53.8 870.4 581. 4 418,608 October 54.1 873.8 619.3 460,759 November 32.8 545.2 386.4 278,208 December 12.4 186.2 132.0 98 1 208 Total 4,015,559 HUMPBACK CREEK HYDRO ELECTRIC PROJECT FIGURE V-7 KILOWATT HOUR GENERATION BASED ON 85% OF 1975 65 CFS MAXIMUM DESIGN FLOW 12 MONTH DATA FLOW RANGE # OF DAYS KWH PER DAY KWH PER YEAR 2.5 30 0 0 7.5 55 1152 63360 12.5 33 2664 87912 17.5 33 4248 140184 22.5 13 5760 74880 27.5 19 7248 137712 32.5 7 8688 60816 37.5 17 9888 168096 42.5 18 11352 204336 47.5 9 12816 115344 52.5 10 14232 142,320 57.5 13 15624 203112 62.5 15 16920 253800 67.5 7 18048 126336 72.5 21 18048 379008 77.5 7 18048 126336 82.5 3 18048 54144 87.5 13 18048 234624 92.5 6 18048 108288 97.5 7 18048 126336 102.5 6 18048 108288 107.5 2 18048 36096 112.5 4 18048 72192 117.5 0 18048 0 122.5 2 18048 36096 127.5 1 18048 18048 132.5 1 18048 18048 13 18048 234624 365 3330336 HUMPBACK CREEK HYDRO ELECTRIC PROJECT FIGURE V-8 KILOWATT HOUR GENERATION BASED ON 90% OF 1975 65 CFS MAXIMUM DESIGN FLOW 12 MONTH DATA FLOW RANGE # OF DAYS KWH PER DAY KWH PER YEAR 2.5 28 0 0 7.5 57 1152 65664 12.5 23 2664 61272 17.5 36 4248 152928 22.5 19 5760 109440 27.5 15 7248 108720 32.5 12 8688 104256 37.5 13 9888 128544 42.5 14 11352 158928 47.5 14 12816 179424 52.5 7 14232 99624 57.5 10 15624 156240 62.5 14 16920 236880 67.5 11 18048 198528 72.5 13 18048 234624 77.5 14 18048 252672 82.5 7 18048 126336 87.5 3 18048 54144 92.5 13 18048 234624 97.5 6 18048 108288 102.5 7 18048 126336 107.5 3 18048 54144 112.5 5 18048 90240 117.5 2 18048 36096 122.5 2 18048 36096 127.5 1 18048 18048 132.5 1 18048 18048 15 18048 270720 365.0 3420864 HUMPBACK CREEK HYDRO ELECTRIC PROJECT FLOW RANGE 2.5 7.5 12.5 17.5 22.5 27.5 32.5 37.5 42.5 47.5 52.5 57.5 62.5 67.5 72.5 77.5 82.5 87.5 92.5 97.5 102.5 107.5 112.5 117.5 122.5 127.5 132.5 FIGURE V-9 KILOWATT HOUR GENERATION BASED ON 95% OF 1975 65 CFS MAXIMUM DESIGN FLOW 12 MONTH DATA # OF DAYS KWH PER DAY 28 0 51 1152 29 2664 31 4248 21 5760 10 7248 14 8688 9 9888 14 11352 18 12816 9 14232 9 15624 7 16920 15 18048 8 18048 13 18048 14 18048 7 18048 3 18048 13 18048 6 18048 7 18048 1 18048 7 18048 1 18048 3 18048 o 18048 17 18048 365 KWH PER YEAR o 58752 77256 131688 120960 72480 121632 88992 158928 230688 12'8088 140616 118440 270720 144384 234624 252672 126336 54144 234624 108288 126336 18048 126336 18048 54144 o 306816 3524040 HUMPBACK CREEK HYDRO ELECTRIC PROJECT FIGURE V-l0 KILOWATT HOUR GENERATION BASED ON 100% OF 1975 65 CFS MAXIMUM DESIGN FLOW 12 MONTH DATA FLOW RANGE # OF DAYS KWH PER DAY KWH PER YEAR 2.5 22 0 0 7.5 57 1152 65664 12.5 28 2664 74592 17.5 26 4248 110448 22.5 25 5760 144000 27.5 7 7248 50736 32.5 18 8688 156384 37.5 7 9888 69216 42.5 17 11352 192984 47.5 10 12816 128160 52.5 14 14232 199248 57.5 5 15624 78120 62.5 12 16920 203040 67.5 9 18048 162432 72.5 10 18048 180480 77.5 8 18048 144384 82.5 14 18048 252672 87.5 14 18048 252672 92.5 4 18048 72192 97.5 3 18048 54144 102.5 13 18048 234624 107.5 6 18048 108288 112.5 5 18048 90240 117.5 3 18048 54144 122.5 6 18048 108288 127.5 1 18048 18048 132.5 4 18048 72192 17 18048 306816 365 3584208 HUMPBACK CREEK HYDRO ELECTRIC PROJECT FIGURE V-11 KILOWATT HOUR GENERATION BASED ON 100% OF 1975 85 CFS MAXIMUM DESIGN FLOW 12 MONTH DATA FLOW RANGE # OF DAYS KWH PER DAY KWH PER YEAR 2.5 22 0 0 7.5 57 1100 62700 12.5 28 2448 68544 17.5 26 3936 102336 22.5 25 5520 138000 27.5 7 7032 49224 32.5 18 8448 152064 37.5 7 9912 69384 42.5 17 11136 189312 47.5 10 12888 128880 52.5 14 13752 192528 57.5 5 15096 75480 62.5 12 16440 197280 67.5 9 17736 159624 72.5 10 18984 189840 77.5 8 20184 161472 82.5 14 21048 294672 87.5 14 21696 303744 92.5 4 21696 86784 97.5 3 21696 65088 102.5 13 21696 282048 107.5 6 21696 130176 112.5 5 21696 108480 117.5 3 21696 65088 122.5 6 21696 130176 127.5 1 21696 21696 132.5 4 21696 86784 17 21696 368832 365 3880236 HUMPBACK CREEK HYDRO ELECTRIC PROJECT FIGURE V-12 KILOWATT HOUR GENERATION BASED ON .95% OF 1975 85 CFS MAXIMUM DESIGN FLOW 12 MONTH DATA FLOW RANGE # OF DAYS KWH PER DAY KWH PER YEAR 2.5 28 0 0 7.5 51 1100 56100 12.5 29 2448 70992 17.5 31 3936 122016 22.5 21 5520 115920 27.5 10 7032 70320 32.5 14 8448 118272 37.5 9 9912 89208 42.5 14 11136 155904 47.5 18 12888 231984 52.5 9 13752 123768 57.5 9 15096 135864 62.5 7 16440 115080 67.5 15 17736 266040 72.5 8 18984 151872 77.5 13 20184 262392 82.5 14 21048 294672 87.5 7 21696 151872 92.5 3 21696 65088 97.5 13 21696 282048 102.5 6 21696 130176 107.5 7 21696 151872 112.5 1 21696 21696 117.5 7 21696 151872 122.5 1 21696 21696 127.5 3 21696 65088 132.5 0 21696 0 17 21696 368832 365 3790644 HUMPBACK CREEK HYDRO ELECTRIC PROJECT FIGURE V-13 KILOWATT HOUR GENERATION BASED ON 90% OF 1975 85 CFS MAXIMUM DESIGN FLOW 12 MONTH DATA FLOW RANGE # OF DAYS KWH PER DAY KWH PER YEAR 2.5 28 0 0 7.5 57 1100 62700 12.5 23 2448 56304 17.5 36 3936 141696 22.5 19 5520 104880 27.5 15 7032 105480 32.5 12 8448 101376 37.5 13 9912 128856 42.5 14 11136 155904 47.5 14 12888 180432 52.5 7 13752 96264 57.5 10 15096 150960 62.5 14 16440 230160 67.5 11 17736 195096 72.5 13 18984 246792 77.5 14 20184 282576 82.5 7 21048 147336 87.5 3 21696 65088 92.5 13 21696 282048 97.5 6 21696 130176 102.5 7 21696 151872 107.5 3 21696 65088 112.5 5 21696 108480 117.5 2 21696 43392 122.5 2 21696 43392 127.5 1 21696 21696 132.5 1 21696 21696 15 21696 325440 365 3645180 HUMPBACK CREEK HYDRO ELECTRIC PROJECT FLOW RANGE 2.5 7.5 12.5 17.5 22.5 27.5 32.5 37.5 42.5 47.5 52.5 57.5 62.5 67.5 72.5 77.5 82.5 87.5 92.5 97.5 102.5 107.5 112.5 117.5 122.5 127.5 132.5 FIGURE V-14 KILOWATT HOUR GENERATION BASED ON 85% OF 1975 85 CFS MAXIMUM DESIGN FLOW 12 MONTH DATA # OF DAYS KWH PER DAY 30 0 55 1100 33 2448 33 3936 13 5520 19 7032 7 8448 17 9912 18 11136 9 12888 10 13752 13 15096 15 16440 7 17736 21 18984 7 20184 3 21048 13 21696 6 21696 7 21696 6 21696 2 21696 4 21696 o 21696 2 21696 1 21696 1 21696 13 21696 365 KWH PER YEAR o 60500 80784 129888 71760 133608 59136 168504 200448 115992 137520 196248 246600 124152 398664 141288 63144 282048 130176 151872 130176 43392 86784 o 43392 21696 21696 282048 3521516 FLOW DURATION CURVE 9M! OF' 1 975 F'lOWS 180 150 14-0 0 130 z 0 120 0 La.I en 110 ~ 100 La.I A- t:; 90 La.I 80 ~ 0 70 iii :::) 80 0 ~ 50 ~ .t.O 30 ~ 20 10 0 0 10 20 30 50 80 70 80 90 100 PERCENT or TIME now EXCEEDS c 9 MONTH + 12 MONTH Figure V-1S FLOW DURATION CURVE 89 OF' 1 975 F'LOWS 180 150 141·0 c 130 ~ 120 0 I&J '" 110 15 100 A. ti 90 I&J 80 LI.. 0 70 iii ~ 80 0 ! 50 ~ .0 30 LI.. 20 10 0 0 10 20 30 50 60 70 80 90 100 PERCENT OF' TI~E FLOW EXCEEDS c 9 ~ONTH + 12 ~ONTH Figure V-16 Percent Of 1975 85 95 Percent Of 1975 85 95 Figure V-17 MAXIMUM WATER FLOW FOR TURBINE SIZING BASED ON TWELVE MONTH FLOWS 25 Percent Excedence 65 cfs 70 cfs 15 Percent Excedence 81 cfs 90 cfs MAXIMUM WATER FLOW FOR TURBINE SIZING BASED ON NINE MONTH FLOWS 25 Percent Excedence 72 cfs 80 cfs 15 Percent Excedence 88 cfs 98 cfs B. GEOLOGIC DATA No specific geological reconnaissance was made of the Humpback Creek site. The following regional geological summary was prepared by Stone and Webster in their Interim Feasibility Assessment (June 1982). The Stone and Webster assessment was general in nature and applies to the entire region including the Humpback Creek area. a) Geomorphology The study area is characterized by active glaciation and associated landforms. Due to the dynamic tectonic environment and active glaciation, the area is undergoing regional uplift, local rapid downcutting by streams, local slope instability in the form of major landslides, local rockfalls, local debris flows, and avalanches in areas of major snow accumulation. The coastline is characterized by a sequence of northeast trending major fjords, which are deep, long, narrow, steep-sided valleys formed by a more weakly developed set of topographic lows: northwest trending valleys including Jack Bay, Sawmill Bay, Silver Lake, Galena Bay, Two Moon Bay, and Eyak Lake. These gross regional geomorphic trends are probably related to regional fracture patterns and major structural features resulting from the ter.tonic history of the area. b) Stratigraphy The rocks in the study area have been divided into two groups: the Valdez Group and the Orca Group. The division is based on slight 51 variations in metamorphic facies and lithology. The Valdez Group rocks cover the general study area from Valdez south to Port Fidalgo, and the Orca Group extends from Port Fidalgo to south of Cordova beyond the southern limit of the study area. The Valdez Group is a metamorphosed sedimentary series including bluish-gray and dark gray quartzites, graywackes, arkoses, and quartz-schists interbedded with generally thin beds of dark blue or black slate, shale, mica-schist, and occasionally some conglomerate. The Orca Group exhibits a slightly lower grade of metamorphism then the Valdez Group and consists of thick bedded brown and gray sandstones, black limestones, arkoses with thin zones of slate, and occasional conglomerate greenstones associated with highly mafic basalt flows. The rocks in both the Valdez and Orca Groups are highly deformed and fractured. Extensive secondary quartz emplacement has occurred along the fractures. The thickness of these quartz veins ranges from a fraction of an inch to several feet. c) Structure The structural geology of the area is characterized by highly deformed rocks, tightly folded and faulted along two dominant structural orientations: northwest and northeast. These structural features result from the active subduction of the Pacific plate which is occurring along the southern 52 coast of Alaska and ex ten:i. I :"'q \4(!stward along the Aleutian Island ar"c. Numerous thrust faults have been inferred in the study area, the largest is named the Contact Fault. Other smaller thrust faults include the Jack Bay Fault, the Landlocked Bay Thrust, and the Galena Bay Thrust. Many other folds and faults trending predominantly northwest and northeast have been inferred from aerial photographs and satellite imagery. C. DESIGN AND CONSTRUCTION INFORMATION Dam and Intake Structure The purpose of the intake structure is to divert the water in Humpback Creek into the pipeline so that it can be delivered efficiently to the turbines for the generation of electric energy. This project does not envision a dam for the purpose of storing water. This is a run of river project and the dam is a part of the intake structure. As used in this discussion, the word dam and intake structure are interchangeable since the purpose of either is to direct the water in the stream into the pipeline. The flows in Humpback Creek range from a low of no surface flow during the winter to a maximum record of over 600 cfs. The preliminary design of this project is to utilize flows up to 100 cfs. It is known from visual inspection of the area that Humpback Creek carries a considerable stream sediment load consisting of small gravel up to large rocks. The intake structure must keep the sand, gravel and rocks out of the pipeline while offering the minimum amount of impedance to the flow of the water into the pipeline. There are 53 many possible designs to accomplish this. None are totally satisfactory; all allow some sand and gravel to enter the pipeline. The design of the intake structure has not been finalized and will receive additional review during the final design phase. We do believe, however, that the basic concept of the preliminary design will be utilized in final design. Efforts to remove the stream sediment are discussed in two separate areas. The first involves the use of a stilling pond upstream from the intake structure. The purpose of a stilling pond is to reduce the rate of flow of water in the stream to allow the larger gravel and sediment to settle out of the stream. It is anticipated that this gravel will settle out just upstream of the diversion structure. A sluice gate will be installed in the diversion dam that can be open during high flow periods to allow the gravel collected behind the dam to flow down stream. Gravel that does not settle out will flow over the dam on to a metal grating on the down stream side of the dam. The second area of design will be the intake structure. This structure will consist of grates and a metal tank on the down stream side of the weir. The grating will be sloped down stream to encourage rocks and gravel to roll off the grating down river of the intake structure. Water would fall through this grating and then enter the intake pipe. A method would be provided to clean the intake structure as it is anticipated that rocks will become trapped in the screen area and leaves, twigs and other small organic material may go through the grating and become wedged in the 54 screens. Sheet 3 of Figure V-18 shows the intake structure in more detail. Pipeline The selection of pipe to carry the water from the intake structure to the power plant depends on many factors. The two prime considerations are the amount of water to be carried under maximum flows, in other words, the design flow of the power plant, and the amount of head loss that can be accepted. Utilizing the design flow for the power plant of 65 to 85 cfs, our plan is to minimize the net head loss since the power generated is proportional to the rate of flow and the effective head or water pressure at the power plant. For an 85 cfs flow rate, a 48 inch diameter pipe would provide adequate volume with minimal head loss. Since much of the pipeline will be built by hand utilizing helicopters to carry the materials to the site, the construction weight of the pipe also must be considered. Of the materials available for the pipe, those that would be suitable include steel, polyethylene and fiberglass reinforced epoxy (FRE). It is possible that water will freeze in the pipe during winter months and the pipe selected must be able to withstand the pressures caused by this freezing. Steel pipe is not considered a practical alternative for the entire pipeline due to its weight, cost, and cost of construction. Polyethylene and FRE are considered prime candidates for this pipeline. The pipe selected will have a maximum design working pressure of approximately 100 pounds per square inch. This pressure is difficult to 55 achieve in large diameter polyethylene pipe. Polyethylene pipe 48 inches in diameter in this pressure range weighs over 100 pounds per foot making a 40 foot length weigh over two tons. This would require a larger helicopter than is locally available or reducing the joint lengths to 20 feet. Suppliers of polyethylene pipe recommend against shortening the joint length due to the time and expense involved in making fusion butt welds. Polyethylene pipe, on the other hand, has the advantage that it does not need to be restrained and can be laid on the ground and allowed to move with changing pressures in the pipe. Connecting joints of polyethylene together uses a special thermal welding technique that results in no additlonal roughness within the pipe. Between the intake structure and the old dam, the polyethylene pipe will be laid on the gravel trapped by the existing dam. During periods of high flows, water may cover the pipe and it is necessary to restrain the pipe to prevent scouring of the gravel under the pipe. Figure V-19 shows one method of securing the pipe using gabions. This method may allow scouring during heavy flows. The scour depth has not been determined, but may be as much as five to seven feet. Routing the pipeline near the east bank will remove the pipe from the main portion of the flow at all except high flow periods. The pipe can be buried below the scoured depth to reduce the possibility of damage due to scouring during heavy flow periods. It is estimated that this burial would be below the water level behind the dam and the material 56 floatation of this pipe would tend to make it rise to the surface. This area will not be accessible to mechanical equipment and the pipe will have to be buried by hand. With the round nature of the gravel and cobbles in the area, it is possible that a burial depth of five to seven feet is more than can be expected to be accomplished by hand digging methods. Wing dikes could be installed over the pipeline which would be gabions laid perpendicular to the axis of the pipeline. These wing dikes would encourage siltation and depositing of small gravel over the pipeline during most flows. Theoretically this gravel would then be available to protect the pipe during heavy flows. FRE pipe uses mechanical joints that are bolted or strapped on to the pipe. FRE pipe must be restrained and is mounted in saddles at intervals of 15 to 20 feet to keep thrusts and other forces from separating the pipe at the joints. Polyethy- lene pipe is flexible and can be bent without kinking in a radius of 30 times diameter. FRE pipe is straight and bends are accomplished by pre-manufactured elbows. Slight bends are allowed by misalignment of the pipe joints. In general, FRE pipe is lighter than the polyethylene pipe for the same structural strength. For the purpose of this project, prices and flows have been developed around utilizing two 32 1/2 inch polyethylene pipes. These two pipes give the same flow as a 48 inch diameter pipe and approximately the same head loss. The smaller diameter results in a pipe that weighs approximately 40 pounds per foot or 1,600 pounds 57 for a 40 foot length. This weight can be handled by helicopters and can be manhandled by construction crews. The use of this polyethylene pipe will allow gradual bends to be made as shown on the attached drawings. Sharp bends such as the dam crossing would utilize pre-manufactured polyethylene elbows. The notch carved into the east abutment ranges between four and five feet in width. This area is not wide enough to accept the two 32 1/2 inch pipes side by side. Alternatives include mounting the pipes vertically one above the other, attaching them to the rock bluff with saddles or clamps, or removing additional rock from the bluff to increase the width to six or eight feet. It may also be possible to combine the two 32 1/2 inch pipes into one 48 inch pipe for this area. Trestles would have to be constructed to support the 48 inch polyethylene pipe in the area where there is no natural support. FRE pipe 48 inches in diameter could also be used in this area. The FRE pipe has the advantage that it can be supported on saddles at intervals and that can span most of the notches and other non-supported areas. The route along the east abutment may turn more rapidly than is allowed with fiberglass pipe and thus require a large number of pre-manufactured elbows which would add to the cost and complexity of the project. In discussions with manufacturers of polyethylene pipe, transitions from 32 inch to 48 inch pipe would have a small but measurable head loss. No specific figures are available on the amount of this head loss. The use of one 48 inch diameter 58 of polyethylene pipe long the east abutment may prove to be more desirable during final engineering and pipeline optimization. Construction plans provide for the use of polyethylene pipe over a distance of 1,740 feet from the intake structure to just above the power plant. As can be seen on the attached figures, the elevation drops very rapidly near the power plant site. It is anticipated that steel pipe would be used (either two 32 inch pipes or one 48 inch pipe) for this last run before the power plant. Two steel pipes 32 inches in diameter again are lighter than one 48 inch pipe and would be easier to handle, but require more welding and an adapter at the power plant to combine the two pipes into one pipe for powering the turbine. Sheets 1 and 2 of Figure 18 show the routing and preliminary design of the pipeline utilizing two 32 inch polyethylene pipes. Figure V-20 shows the load loss as a function of flow for the proposed pipe. As mentioned above, during final design the size, type and number of pipes will be optimized to minimize construction costs and provide the maximum flow and minimum head loss. Turbines and Generators (a) Design Considerations There are several designs of turbines available for recovering the energy from water and turning it into electrical power. Designs that are currently in use include Francis, Kaplan, Pelton, Crossflow, Turgo, etc. 59 Each of these is unique in some aspect, but in general hydro power turbines can be broken into two classes, impulse turbines and reaction turbines. Impulse turbines achieve their energy through the force of water hitting the blades. This would be akin to squirting a garden hose at a fan. Impulse turbines are characterized by the water impacting the blades or cups at a small number of points, usually one or two nozzles per device. Reaction turbines, on the other hand, derive their energy from the water stream by turning in the flow as a propeller. The Francis and Kaplan Turbines are particular examples of reaction turbines. These are normally situated so that the entire mass of water flows around and through the device and all of the blades are in contact with the water all of the time. In general reaction turbines are used for high flow situations and impulse turbines are used in high head situations. Figure V-21 shows the combination of flows and heads where each type of turbine is applicable. (b) Alternatives Considered The application under consideration for Humpback Creek includes a maximum flow of approximately 70 to 90 cubic feet of water per second at an effective head of 165 to 175 feet. This particular head height would be most effectively served by a Francis, Crossflow or Turgo turbine. Figure V-22 shows the efficiencies of each of these turbine types as a function of percent of rated capacity. It can be seen that the Francis turbine is very efficient at very high loads, but 60 that efficiency drops off quite rapidly for lower flows. The Francis turbine is particularly well suited for an application with a constant flow of water where maximum efficiency at the specific operating point is the prime consideration. Both the Crossflow and Turgo turbines operate over a much broader range of input flows although their peak efficiencies do not approach the high efficiency of the Francis. Figure V-23 shows the efficiency of a Turgo turbine over the range of flows expected on Humpback Creek. The Crossflow and Turgo turbines are very different in their construction and operating mode. The Crossflow turbine is usually of welded construction and resembles a squirrel cage fan. Since the water strikes the turbine tangentially, no axial thrusts are produced. The Crossflow turbine is efficient over a wide range of flows. Its design is such that it does not respond well to abrupt changes in load. For example, if the load on the generator was suddenly reduced drastically, the water flow in the penstock could not be altered rapidly without causing undue hydraulic pressures in the penstock. As a result, the operating speed of the Cross Flow turbine increases significantly. It is not unusual for turbines of this type to reach two to four times rated rpm in response to a drastic load reduction. It is obviously necessary that all loads be dropped before a generator is allowed to significantly increase speed which further compounds the problem. Large load swings are not anticipated in the application on Humpback Creek 61 although it is possible for the circuit breaker to open, dumping all loads and allowing the turbine to overspeed. The generators purchased to operate with the turbines are usually specified to be capable of physically withstanding the magnitude of overspeed which can be expected. Crossflow turbine outputs range up to several hundred kilowatts (KW). Ossberg Company has produced Crossflow turbines in the 1,000 KW range but they have been used in lower heads than that considered for this project. Thus the use of Crossflow turbines would necessitate the installation of two units. The Turgo impulse turbine has a cast runner or blade assembly that water is directed to through one or two nozzles. These nozzles are at an angle to the axis of the turbine and result in a considerable amount of end thrust that must be absorbed in bearings. It is possible to very rapidly deflect this stream of water and overspeed problems are not normally observed although generators purchased to operate with these are also specified to operate in the overspeed situation. (c) Selection of Turbine Selection of the specific turbine to be used for this project will be accomplished during final engineering based on efficiency curves of each unit. It is anticipated that proposals will be received for both the Crossflow and Turgo impulse turbines. 62 (d) Selection of Generator Generators to be connected to the turbines can be either induction (asynchronous) or synchronous. Induction generators are little more than AC motors connected to a device that turns them faster than they would normally run with the voltage applied to them. Induction generators are very simple in that voltage regulation and frequency regulation is not required but is established by the utility system. Induction generators have a particularly poor power factor and are not able to provide reactive power to the system. Induction generators can not operate independently; they require the presence of utility power to establish voltage and frequency references. The total amount of induction generation allowed on a utility system is subject to some discussion, but there seems to be general agreement that it should not exceed 15 to 20 percent of minimum system load. Beyond this point voltage and frequency instability problems can cause inadequate electrical service for all customers served by the utility. Figure V-24 shows the hour by hour loads expected by CEC during the peak summer season and the minimum winter season. Also shown on the chart is the 15 percent practical limit that can be allowed in induction generators. As a practical matter, even during the peak summer months, the Humpback Creek hydro project will put out more power than would be allowed for induction generators and a synchronous generator must be used. 63 Synchronous generators have voltage and frequency regulators to allow them to precisely maintain operating voltage and frequency. Synchronous generators are able to provide reactive power needed by the system and are capable of operating in an isolated mode separate from the utility system. For example, a cable failure between the Humpback Creek hydro plant and town could result in the Humpback Creek project providing power just for itself or itself and other loads without any help from the diesel power plants. Being able to operate independently would allow generation of power necessary to prevent freezing of the building, and it would keep telemetry and control batteries charged until repairs could be made. Synchronous generators can be purchased in several voltage ranges. The two most probable voltage ranges for consideration for this project would be 4,160 (4KV) volts or 12,470 (12KV) volts. 4,160 volts is a standard voltage and is utilized by some of CEC's existing generators, and by many other utilities in the State of Alaska. This voltage must go through a transformer to be raised voltage back up to 12,470 volts for transmission back to town. 12,470 volts would be required to match with the existing CEC distribution system. The reason for the step-up transformer is to reduce the current required and consequently the conductor size. The 4KV generator would produce 130 amps per phase for 750KW. A 12KV generator would produce 44 amps. A 4KV generator is significantly cheaper than a 12KV generator. The cost differential amounts to approximately $30,000.00 for a 800KW generator. However, a 4KV generator would require a step-up transformer 64 which would cost approximately $18,000.00 and would have core and winding losses amounting to over 30,000 kwh per year. Since kwh lost in the transformer will not be available to the utility's system, they must be made up by diesel at a cost of 8 cents per kwh (based on 1985 fuel prices which would increase with the cost of diesel) for a 1985 cost of $2,500.00. The 12KV generator will have a simple payback period of five years. Based on the above, it is recommended that we utilize a 12,470 volt three phase generator. Building and Tailrace An arctic insulated metal building approximately 24 ft. by 40 ft. will be constructed to house the power plant. A concrete footing will be installed for the building. The building will be of metal construction with 16 ft. eave height. It will be constructed to withstand 200 pounds per square foot ~now loads and 100 mph winds. It is anticipated that over the life of the building heavy snow years may completely bury the building and ventilation pipes will be run through the roof of the building to provide ventilation during periods when the building may be totally buried. For planning purposes it is anticipated that the building will be approximately 40 ft. by 24 ft. Figure V-25 shows the proposed layout of the building. Figure V-26 shows a cross section of the building showing elevations of the generator and tailrace. Figure V-27 shows the site arrangement of the power plant site. 65 ~ \ SEE INTAKE STRUCTURE DETAILS CREEK SCALE: I"e 40' HORZ. I"' 10' VERT. 35 LF. ~ (2) 32-QJ 20 LF.:!: (2) 32" QJ SOR 32.5 PE. PIPE 20 LF. :t (2) 32· " 150 LF. f SOR 32.5 P.E. PIP~ .. (ISOR 32.5 PE. PIPE ~~ ____________________ ~4~8~0~L~F.~±-2~~)~32~·~0~S~O~R~3~2~.5~P.~E~.~P~IP~E~ ____________________ ~+i~ I 410 LF. ± (2) 32" QJ SOR 32.5 PE. PIPE (2) 32-" SOR 32.5 P.E. PI ~ __ . ~oo 190 180 170 160 150 TOP OF ..... "'u ;!~ ~It; SPILLWlY 20~ 0· ... 10 . .. c ! ~--.-------------------':7-__________ ,../ INV. 196.0'.1 Figure V-18 Sheet #1 II 12 13 DATE "01S'ONI AND RECORD Of ISSUE 14 TOP EXIST. DAM 194.0'& 15 IG DESIGNED .....,C",-L",,"' __ _ CORDOVA ELECTRIC 0"''''0 -,C=C-,<-C __ _ CHECKED -,C'-".L=,.. __ _ COOPERATIVE. INC. "'.OV'D __ D=L=,.. __ _ DATE JULY 198~ .. .. ; .... e-.• > OJ -.. .. > \. CONSTRUCT TlN~ER /\ SUPPORT SYSTE~ ACROSS GULLT PHOTOGRAPHIC 17 18 :\lEl~I{ELL & ASSOC. DESIG:'\.' SEH.VICE SUPPORTED ON CABLE \ \ \ \ . -\ REDUCTION \ \ 19 20 HUMPBACK CREEK HYDRO PROJECT PIPE LINE -PLAN -PROFILE 21 I I I I I I ILl z ::::i :I: U I- ~ :::E 190 16o __ 150 __ SHEET I OF 3 160 ~O _130 -'20 110 100 o IP . N 22 23 OAT[ HUMPBACK SCALE: 1"= 40' HORZ. 1"= 10' VERT. 625 LF. t (2) 32" 0 SDR 32.5 P. E. PI PE Figure V-IS Sheet #2 24 R£V1SIONS A ... O I'IECOIilO 0' ISSU[ 2~ 26 CORDOVA ELECTRIC COOPERATIVE, INC. HO •• aT I C'-:' "'P 27 DESIGPoiED DU" DETAILED ~ CHEC"ED DlM APPRovED ~lM CATE JULY 1985 TRAN SITION FITTINGS P E -STEEL 125 LF.t (2) 32"0 WELDED STEEL PIPE 25 LF t (2) 32"0 LOED STEEL PIPE 150 80 90 20 28 29 20"-Z PIECE STEEL ELIla.¥S ; ~ .. MERRELL & ASSOC. DESIG;\J SERVICE 30 bJ PLANT , SITE .. 1,. ~ ~ ~ ~ ~ \ j ---~ __ --r-- PHOTOGRAPHIC REDUCTION 31 HUMPBACK CREEK HYDRO PROJECT PIPE LINE -PLAN -PROFILE 90 80 70 60 40 30 20 SHEET 2 OF 3 HIIMPBACK ~ CREEK I 5 1/2 11 CONCRETE BACKING BEHIND GAB10fIS APPROX. LOCATION OF SAOINO STATION ELEV. 197.9' Figure V-18 Sheet #3 CONC WEIR ,SPILLWAY) f"w nm .. ." " .. ~ .,," / P. E PENSTOCKS (2) / / / / /' ~ ." C.L DRAIN fOR INTAKE STRUCTURE :;-:-". / / INTAKE STRUCTURE SITE PLAN SCALE: I "e 10' fABRICATED STEEL INTAKE STRUCTURE 36". SLUICE GATE 12'-0" CONe. WEIR ,SPILLWAV) ELEV. 20S't UPSTREAM VIEW-INTAKE STRUCTURE AND GASION WALL SCALE, 1"= 4'-0" HEAVV GALV. STEEL GRATING ,TRASH RACK) 2" RAD. STEEL CORNER ROUND R.T. i ! ~I ~I it: '!i! TOP ELEV. WEIR / 205'~ / 5112" CONC. // /6'-6"' :-/, ?, (I I~ I-r- ...J ... ... ... ., r-------R.R. STL. tP 8'-0" O.C. /------GABION WALL // r fASTEN NARINE PLYWOOD TO SIDES ABOVE STEEL TAIIK /. HEAVY GALV STEEL GRATING / !' _ FOR TRASH RACK '~... ,// ·0" RINGS /STEEL STUDS STEEL FLANGE ADAPTERS 2 -32". P.E. PENSTOCKS J ---....I ...,!~""-,..,.0Yr.7-='=-cif=" _=-. -,;-!---- i r : 1fII;' ; 11f1Ci= JET IN R.R. STL ~-Jrlll -- - --~.--- M/ft. 8' INTO GRAVEL I uj SECTION A-A SCALE' 1/2"= I'-O",APPROX.) PHOTOGRAPHIC REDUCTION DESIGNE:..:: _~o,-,'",," __ _ CORDQVI>, ELECTRIC I D"m" _--', .... ,~ __ ---------------~---+-----------------------PROJECT NO. :\IEHRELL & ASSOC. HUMPBACK CREEK HYDRO PROJECT DESIG:".' SEr~VICE -----+---_____________________ .:J~~ ~E.~ATIV=:. IN:. I ~;:~~~:: ~~~ __ lNTAK~ STRUCTURE 3sro=cE~3 --l _____________________ ~tL·D~A~~~~==J=J'=Y=='9=~=-.===_~ __________________________ -l __________ -L __________________________________________ ~ ______________ L_ ________ _ QM4, IWtIIitOtl:, aIUlIlU:.Q&D Q' ISSUE ___ . __ .. ~_~~:~~::~ _ ----------------------------------'""1 EXISTING Gf{AVEL G~ADE----' PLACED IG"BELOW FINAL GRADE FOR LATE~AL SUPPORT Figure V-19 LOOKING UPRIVE~ - I I I ~--3X3X6 GABIO!'! I . 'I . I . '.' I . . . J . L ____ . __ . . . . LARGE BOULDERS PLACED--"- AGAlt,IST GABIONS FOf\ ADDITIONAL SUPPOR.T . • AND PROTECTION _ PROTECTION OF POLYETHYLENE PIPES ABOVE OLD DAM CORDOVA ELECTRIC COOPERATIVF SCALI~:t HUMPBACK Cf\EEK HYDRO PROJECT DESIGN: w6a--- DRI\WING NO. DRAWN GFTlJr(l( Figure V-20 FLOW RATE VS. HEAD LOSS FOR TWO POLYETHYLENE PIPES 32 1/2 INCHES O.D. EACH 1720 FEET LONG PLUS 270 FEET OF 32 INCH O.D. STEEL PIPE Flow Rate Head Loss cfs ft. 5 0.1 10 0.2 15 0.5 20 0.8 25 1.2 30 1.7 35 2.2 40 2.8 45 3.5 50 4.2 55 5.0 60 5.9 65 6.8 70 7.9 75 8.9 80 10.1 85 11.2 90 12.5 95 13.8 100 15.2 Assume Hazen-Williams "c" of 150 Polyethylene Pipe and 130 for mortar lined steel pipe. Byron Jackson Division BORG)(WARNER ® Section 2-190 Eft. Sept. 1983 BORG-WARNER CORPORATION Page 2-190-15 HYDRO TURBINE APPLICATION RANGE (ft) 1000r-~--~--------~--~--~------~----~--~----~ 500 200~ ____ -+ __ ~~ __ ~~ __ __ c <100~~ __ ~ __ __ w J: 50~~ __ -4~~ ____ -4 ______ ~~~ ____ ~~ ____ ~ ______ ~ 201--__ __+_ 10~ ____ ~ ________ ~~--__ ~~ ____ ~ ________ ~~--~ 10 20 50 100 DISCHARGE Figure V-21 200 500 1000 (cfs) TURBINE EFFICIENCIES 100~------------------------------------------~ 90 >-80 u z UJ U L;: ~ UJ 70 60 o 10 20 30 40 50 60 70 80 90 100 FLOW IN PERCENT OF RATED FLOW o FRANCIS + CROSSFLOW 0 TURGO Figure V-22 IMP U L SET U RBI NEE F F I C lEN C·I E S 100~-----------------------------------------------, 90 >-80 u z w U u.. u.. w 70 60 o 10 20 30 40 50 60 70 80 FLOW IN CFS o 65 CFS MAX + 85 CFS MAX Figure V-23 ,-tn ~-I-- ..:( ~ ~ c:> L.&J ~ .........., a ~ 0 .....J LOAD DURATION CURVE For 1984 AND 1985 4~------------------------------------------------------~ 3.5 3 2.5 2 1 .5 1 MID 2am 4am 6am 8am lOam noon 2pm 4pm 6pm 8pm 10pm mid TIME OF DAY o Winter + Summer TAILR,ACE Figure V-25 " 36 SUPPLY f/ MCC ST 001 I SWITCH- GEAF\ PANEL SE~V. B8 '" ''----STANDBy GEN. I3ATTER.Y BANK STORAGE A~EA .----800 KW GENERATOR LIVING QTRS. BUNK BEDS 28 TURGO IMPULSE TURBINE OVE~HEAD 000 F\ESTF\OOM POWERJ-iOUSE GENERAL ARPANGEMENT CORDOVA ELtCTRJC COOPERATIVE SCALE: 1."= (Oil HUMPBACK CF\EEK HYDRO PROJECT:.....-I ___ 4 -------1 DR,~Vvlf\JG ~~(). I DESIGN BY: WD.B. i D PA VII r~ G BY: G.F. TIJ RY,. r-.. /""'\, I '~n r--. , ..... ", -B LJ I: :--! '\ ,'--' '1 \ \ 1\ r-+-i I I '. \ ' i I! ' !' ~_ rV '.! J L K I L;-'\ I \I I I '-~ I " ~ \ 34-- TU RBINE CENTER--+-----+---. I 32-- 30~ __ ~F~LO~O~R~L=E~V~EL~_, A I 28--I 3 I 26·-- I 24-- NOTE: TUR.BINE/GENERf.TOR. FOUNDATION ISOLATED FR.OM 13UILbiNG FLOOF\ AT POINTS A 4 B Insulated 6 inch pipe to be buried under stream to insure flows during freezing weather. Figure V-26 f-o-----------13U 1 L DIN G W ~ L L ~G·FOUNDATION WALL ..------1i----1-----T UR BIN E I G ENE RATO R FOUNDATION 13LOCK TAILR,ACE DETAIL OF TU~8INE/GENERATOR ISOLATION AND TAIL~ACE ~-EXISTING GROUND LEVEL STREAM r-LEVEL CORDOVA ELECTRIC COOPERATIVE SCALE: 1/~2/0· HUM P BAC K CREE K HYDRO PRO J ECT ~-=-:-:--=-:"""'-------:-=---------1 DO/\WING NO. DESIGN BY: W.O.B. r'(\ D AWING BY: G.F.TI.J K z .... Figure V-27 .-TBM~ Note: - • Bridge across creek to be perpendicular to creek. '''1 ,. ' ! • SCALE (. 20' ! .' --.. ........ ,-. -~, --~ -i. ; ~: ..... '. _ ~ -, _ _ _ ,-. connection to CEC's Distribution System Cordova Electric Cooperative's distribution system consists of approximately 20 miles of 12,470/7,200 Volt primary conductor and approximately four miles of 2,400 Volt primary. Cordova Electric Cooperative is currently developing a Long Range Plan and Two-Year Construction Work Plan with the engineering firm of Dryden and LaRue to determine long range growth patterns for the Cooperative. The Eyak Corporation is currently in the final stages of negotiating a contract with a firm for the sale of timber from Native Corporation lands in the Cordova vicinity. This timber sale provides for construction of a road from Cordova to a marine terminal site at Shepard Point. The CEC Long Range Plan anticipates the requirement for power at Shepard Point over the next several years. While the design of the line has not been finalized at this point, it is anticipated that an underwater cable energized at 12,470 volts will be run from the existing CEC substation at Orca to Shepard Point. This line will be brought ashore at a minimum of three points north of Cordova. Point 1 will be approximately one mile north of Orca, Point 2 just north of the mouth of Humpback Creek and Point 3 at Shepard Point. The design considerations for this distribution line are outside the scope of this study. It is anticipated that by 1987 distribution voltage will be available on the north side of Humpback Creek above the high water mark. As part of the Long Range Plan and Two-Year Construction Work Plan being prepared by CEC, a Borrower's Environmental Report is being prepared 66 which will separately assess the environmental impacts of this proposed line. The construction of this line is not considered part of this hydro electric development and will occur independently of the hydro electric development. From the switchgear located inside the power plant, 15KV wire will be run to a termination pole located just north of the power plant. Overhead construction will be used from this point utilizing the REA recommended Raptor Construction Standards (See Appendix C). Vertical construction will be used for all turns and angles above five degrees. Horizontal construction will be used in all other places. The ruling span will be approximately 200 feet which is a standard CEC construction spacing providing resistance to wind slap and the resulting strain on the lines. It also provides additional strength required for the heavy snow expected in the area. The poles on either side of Humpback Creek will be at least 40 feet from the stream bank and will be independently guyed so that a failure on either side of these poles will not affect their support capability. The transition from overhead to the existing CEC distribution system will utilize normal REA construction standards. See Figure V-28 for the location of this overhead to underground transition. 67 / j " \ \ I I I / / / I '~ i, if /~ i ) ~--------~----------------- ~""'-CREEK CROSSING _......_-175 ____ ------------- "3- i I ! ! CORDOVA ELECTRIC COOPERATIVE HUMPBACK CPEEK HYDRO PROJECT TOPOGRAPHICAL DETAIL ORCA INLET Figure V-28 SCALE: ( = 100' PLAN BY, OESI0NBY, DRAWING BY, G.FTU~~ REVISION NO. DATE EXPlANATiO N D. COMPARISON WITH OTHER RECENT HYDRO PROJECTS Tabulated on the next page are other recent hydroelectric projects around the State of Alaska. In addition to the cost of each of these projects, the installed cost per kilowatt of capacity is included and the cost of power (when fully loaded) is included. This chart can be used for relative comparison of the various projects. 67-1 COMPARISON WITH OTHER RECENT HYDRO ELECTRIC PROJECTS Average Installed Date In Installed Annual Cost Cost Name Operation Capacity Production Cost Per KW Per KWH Humpback 1987 850 KW 3,500,000 $ 3,200,000. $3,765. $ .91 Creek Solomon 3/82 12 MW 36,000,000. 53,000,000. 4,417. 1. 47 Gulch Tyee 1/82 20 MW 133,000,000. 126,000,000. 6,300. .95 Terror 11/84 20 MW 139,100,000. 190,000,000. 9,500. 1. 36 Lake Swan Lake 1983 22 MW 88,000,000. 96,000,000. 4,364. 1. 09 Seward Bradley 1990 90 MW 369,200,000. 355,900,000. 3,954. .96 Lake Susitna* 1620 MW 6,910,000,000. 5,300,000,000.** 3,272. .78 Salmon Creek Snettisham Ek1utna *Staged Construction **1982 Costs, others are actual or estimated. Note: Installed cost per kwh is installed cost divided by average annual production and does not relate to cost of power from the project. E. SUMMARY OF CONSTRUCTION COSTS This cost estimate is for the Humpback Creek pipeline and intake structure. PIPELINE 1. Pipe material. a) SDR 32.5 P.E. Pipe 3440 L.F. 32" Diameter SDR @ $43.26/ft. Shipping and Freight @ $15/ft b) SCR 32.5 Fittings 6 ea. 60 0 Fabricated Elbows @ $2,000/ea. 12 ea. Flange Adapters @ $l,OOO/ea. 2 ea. Transition Fittings @ $2,500/ea c) 32" Dia. Welded Steel Pipe (3/8" Wall Thickness) 540 L.F. @ $85/ft. Shipping @ $20/ft. 2 ea. 45 0 2 pc. elbows @ $2,300/ea. 2 ea. 30 0 2 pc. elbows @ $2,300/ea. 2 ea. 20 0 2 pc. elbows @ $2,300/ea. d) Thrust Blocks (Pre-cast Concrete) L.S. $200/ea x 8 Sub-Total Pipe Material 68 $ 148,815. 51,600. 12,000. 12,000. 5,000. 45,900. 10,800. 4,600. 4,600. 4,600. 1,600. $ 301,515. 2. Miscellaneous Other Materials a) Permanent Timber Support & Gully 4 x 12 Stringers (Est. 200 L.F. x 4 x $1) 6 x 6 Posts (Est. 280 L.F. x 3 x $1) 3 x 12 Deck (Est. 600 L.F. x 3 x $1) 2 x 6 Handrail (Est. 400 L.F. x 1 x $1) Misc. Fasteners and Hardware sub-Total b) Temporary Work Bridge For Pipe Cable Suspension System 3 x 12 Decking (Est. 800 L.F. x 3 x $.60) 3 x 12 Stringers (Est. 400 L.F. x 3 x $.60) 2 x 6 Handrails (Est. 1200 L.F. x 1 x $.60) Steel Cable (7/8") (500 L.F. @ $2.50) Misc. Hardware & Fasteners sub-Total c) Permanent Cable Suspension for Creek Crossing (7/8" Dia.) (Assume one cable for each pipe) 1,000 L.F. @ $3.50 Misc. Fasteners, Rock Anchors and Clips Pipe Saddle sub-Total Sub-Total Misc. Other Materials 3. Equipment Portable Air Compressor and Hoses Portable Welder (300 amps) 4" Diesel Pump Gasoline Driven Donkey Engine Butt Fusion Welder Misc. Portable Tools (Lump Sum) Helicopter (Max. Pick 3,500 lbs.) Helicopter (Max. pick 800 lbs.) 69 800. 840. 1,800. 400. 300. 4,140. 1,440. 720. 720. 1,250. 1,500. 5,630. 3,500. 3,000. 4,500. 11,000. 175./day 85. /day 20,770. 275./day 1,500./month 6,700./month 2,000./L.S. 900./hr. 485./hr. a) Helicopter b) c) d) e) f ) P.E. Pipe (Est. 25 hrs. @ $900) Steel Pipe (Est. 7 hrs. @ $900) Misc. Mobilization and Demobilization of Pipe Equip- ment (Est. 12 hrs. @ $900.) Cable Suspension System at Creek Crossing (Est. 10 hrs. @ $900.) Sub-Total Portable Air Compressor (Est. 15 days @ $175.) Portable Welder (300 amps) (Est. 15 days @ $85.) Gasoline Driven Donkey Engine (Est. 3 months @ $1,500.) Butt Fusion Welder (Est. 3 months @ $6,700.) Misc. Small Handtools Sub-Total Equipment Costs 4. Labor Labor Rates (Assume 30% Markup for Employee Cost) Supervision: Use $30/hr. x 1.30 General Labor: Use $15/hr. x 1.30 Pipe Welder: Use $25/hr. x 1.30) Assume 10 hour days a) Clearing and Grubbing Pipeline Route Est. 10 days (4 man crew) (1) 10 days x 10 hrs. x $39. (3) 10 days x 10 hrs. x $19.50 Sub-Total 70 22,500. 6,300. 10,800. 9,000. 48,600. 2,625. 1,275. 4,500. 20,100. 2,000. 39.00/hr. 19.50/hr. 32.50/hr. 3,900. 5,850. 9,750. 79,100. b) Pipe Laying (P.E. Pipe) Est. 1 joint/hr @ 100 joints = 100 hrs. Add 80 hrs. for mobilization and demobilization Total = 180 hrs. Est. 8 man crew (1) x 180 hrs. x $39. (7) x 180 hrs. x $19.50 Sub-Total c) Pipe Laying (Steel Pipe) Est. 1 joint/hr. @ 30 joints = 30 hrs. Add 40 hrs. for mobilization and demobilization Total = 70 hrs. Est. 6 man crew (1) x 70 hrs. x $39.00 (1) x 70 hrs. x $32.50 (4) x 70 hrs. x $19.50 Sub-Total d) Cable Suspension System Across Creek Est. 4 wks. (200 hrs.) Est. 8 man crew (1) x 200 hrs. x $39.00 (7) x 200 hrs. x $19.50 e) Timber Support for Pipeline Est. 50 hrs. Est. 4 man crew (1) x 50 hrs. x $39.00 (3) x 50 hrs. x $19.50 Sub-Total Sub-Total Labor Costs 71 7,020. 24,570. 31,590. 2,730. 2,275. 5,460. 10,465. 7,800. 27,300. 35,100. 1,950. 2,925. 4,875. 91,780. INTAKE STRUCTURE 1. Material a) Gabions (PVC Coated) (Assume rock available at site wino blasting required) 6 ft. x 3 ft. x 3 ft. = $75./ea. (Quote) b) c) d) e) f) g) h) i) j ) Total Volume = 3,500 cubic feet $75. divided by 54 times 3,500 Sluice Gate (Low Pressure) (Quote) $2,600. plus freight Concrete Wall and Weir Est. 12 cubic yds. @ $250. Trash Rock and Screens Est. 10 ea. sections Pre-Fabricated @ $750. Pre-Fabricated Steel Tank Est (L.S.) $8,500. R.R. Steel Est. (L.S.) $500. Plywood Forms Est. 20 pcs. @ $25. Steel Flange Adapters for P.E. Pipe 2 ea. @ $ 2 , 000 . 36" Dia. Steel Pipe Est. 20 L.F. @ $140./ft. 4" C.I. Pipe for Drain and Valve and Box Est. 200 L.F. @ $4.50 Est. L.S. $150.00 Sub-Total Material Cost 72 4,860. 3,500. 3,000. 7,500. 8,500. 500. 500. 4,000. 2,800. 1,050. 36,210. 2. Equipment a) Helicopter Est. 18 hrs. @ $485./hr. 8,730. Est. 4 hrs. @ $900./hr. 3£600. Sub-Total 12,330. b) Air Compressor Est. 20 days @ $175. 3,500. c) Portable Welder Est. 10 days @ 85. 850. d) 4" Portable Pump Est. 45 days @ $275. 12£375. Sub-Total Equipment Costs 29,055. 3. Labor Est. 8 man crew -45 days ( 1 ) x 45 days x 10 x $39.00 17,550. ( 7 ) x 45 days x 10 x $19.50 61£425. Sub-Total Labor Costs 78,975. 73 COST SUMMARY FOR PIPELINE AND INTAKE STRUCTURE A. Pipeline 1. Pipe Material 2. Misc. Other Materials 3. Equipment 4. Labor Sub-Total Pipeline B. Intake Structure 1. Material 2. Equipment 3. Labor Sub-Total for Intake Structure $301,515. 20,770. 79,100. 91,780. $ 36,210. 29,055. 78,975. Sub-Total for Pipeline & Intake Structure Add 15% for Contingencies Total Estimated Cost 74 $ 493,165. $ 144,240. $ 637,405. 95,610. $ 733,015. This cost estimate on the Humpback Creek Power Plant is based on 850 KW installed capacity. 1. Mobilization, demobilization, site preparation and finish grading. 2. Foundations: Buildings (30 yds. @ $l,OOO/yd.) Tailrace (40 yds. @ $l,OOO/yd.) Turbine/Generator (40 yds. @ $l,OOO/yd.) Pilings under turbine generator, if needed. (20 @ $1,000 each) Total Foundations 3. Flexible coupling, isolation valve. Flexible couplings (2) Isolation Valve Welding (1 man for 50 hrs.) Total 4. Turbine/Generator Includes Governor, Control System Freight (25 tons) Total 5. Switchgear, motor control center Includes freight 6. System batteries/battery charger/ AC Inverter/Preferred AC System 7. Building (24' x 40') 8. 9. Includes doors, vents, windows Bridge Crane (10 ton) Manual Bridge and Main Lift Small Electric 5 Ton Hook Intake Structure Water and Gravel Level Sensors Includes Cable to Power Plant 75 $ 30,000. 40,000. 40,000. 20,000. 6,000. 30,000. 2,000. 350,000. 10,000. 75,000. 130,000. 38,000. 360,000. 100,000. 10,000. 48,000. 25,000. 5,000. 10. Control System to Interface to Orca Power Plant Hardware Transducers Wire to Town 11. Electrical 30,000. 5,000. 15,000. Materials (Includes 10KW Standby Generator Control Labor (2 men x 3 wks. x $50 x 11 hrs.) To install conduit in concrete pull wire) House Labor (2 men x 3 wks. x $50 x 11 hrs.) Includes lighting, outlets, battery charger, inverter, S B generator, preferred AC System) Power Labor (2 men x 1 wk. x $50 x 11 hrs.) Includes pulling high voltage cables. Terminating Labor (2 men x 3 wks. x $50 x 11 hrs.) Includes control wiring, switch- gear wiring, and field wiring. Total Electrical 12. Mechanical Materials (Includes heating, ventilation, restroom, 10,000. 16,000. 16,000. 5,000. 16,000. potable water, backup cooling. 9,000. Labor (Includes setting turbine and generator alignment, grouting, piping potable and power water systems, installing governors and linkage. (2 men x 12 wks. x $50 x 11 hrs.) 64,000. 50,000. 63,000. Total Mechanical 73,000. 13. High Voltage Electrical Terminate high voltage cable generator and install station service. (3 men x 2 wks. x $50 x 11 hrs.) Materials Total High Voltage Electrical 76 16,000. 2,000":'.. 18,000. 14. Connect to CEC Distribution System Five spans overhead construction raptor construction standards Total Connect to CEC 15. Start up and Checkout Factory Representative 1 man x 15 days Switchgear Representative 1 man x 5 days Miscellaneous Other Services Total Start up and Checkout Sub-Total Engineering @ 8% General and Administrative @ 10% Contingency @ 20% TOTAL 77 10,000. 25,000. 6,000. 10,000. 10,000. 41,000. $1,046,000. 84,000. 105,000. 209,000. $1,444,000. HUMPBACK CREEK HYDRO COST ESTIMATE Pipeline and Intake Structure Estimate Per Dave Merrill Rock Work East Abutment Not Force Account Work Sub-Total Contingency @ 20% Engineering @ 8% General and Administrative @ 10% Total Pipeline and Intake Structure Power Plant and Line to Town Estimate per C. Hildenbrand Connect to CEC System Sub-Total Contingency @ 20% Engineering @ 8% General and Administrative @ 10% Total Power Plant and Line to Town Interest During Construction Bridge at Creek Crossing Preliminary Costs Mitigation Micsellaneous PROJECT TOTAL ROUND UP 78 $ 640,000. 100,000. 260,000. $1,000,000. $ 200,000. 80,000. 100,000. $1,380,000. $1,036,000. 10,000. $1,046,000. $ 209,000. 84,000. 105,000. $1,444,000. $ 100,000. 75,000. 50,000. 25,000. 100,000. $3,174,000. $3,250,000. F. ACCOUNTING TREATMENT The financial feasibility analysis determines, on a long term basis, whether the benefits of a project outweigh the costs. As long as the benefit to cost ratio remains above one, the benefits outweigh the costs and the project will provide a long term benefit to the electric consumer. Financial feasibility must also address the actual cost of electric energy from a project or the end price paid by a user of electricity. In some cases (such as the Tyee project), early year electrical loads will not provide sufficient revenues to cover the costs of the facility. Either electric rates must be raised above the non-hydro alternative, a subsidy must be found to lower rates to an acceptable level, or costs can be deferred to the future when kwh sales and revenues from the project will have increased to support the higher costs. As a borrower of the Rural Electrification Administration (REA), CEC must follow the accounting standards set forth by the Federal Energy Regulatory Commission as amended by the REA. Since CEC will own this project, the associated costs will be incorporated in the existing financial statements prepared by CEC on a monthly basis. Figure V-29 contains the plant account numbers and descriptions under which elements of this project will be carried on the Cooperative's books. Figure V-30 contains the expense accounts that will be charged during operation of the project. 79 Assignment of project costs to plant accounts is accomplished at the end of a project when all costs are known. For the purpose of this analysis, the assignment of costs shown in Figure V-31 will be used. The only portion of these costs that will appear on the Cooperative's books is that portion that the Cooperative has invested in, either through equity or debt. The portion of State equity investment will not appear on the Cooperative's books and thus will not form a portion of the Cooperative's rate base. Figure V-31 also shows the total costs, State equity investment, and CEC's investment by general ledger number. This table also shows the life in years of equipment in each plant account group. Thus under the financing plan discussed in the previous section, CEC anticipates an annual depreciation cost of $63,700.00. Cordova Electric Cooperative, as all businesses, financ0s a portion of plant investment with its own funds (equity) and a portion through borrowed funds (debt). As of June 30, 1985, CEC had a capitalization of $8,597,855.00 of which $7,005,592.00 is debt and $1,592,263.00 is equity for an equity to debt ratio of 18 percent. Thus it is anticipated that of the $1,950,000.00 investment that CEC will make in this project, 18 percent or $576,000.00 will be equity investment and $1,324,000.00 will be debt. Although this investment will be retired in equal installments over the 35 year period of the loan, REA accounting standards require that CEC's financial statements show the actual interest 80 accrued on the average balance. The portion of cost of power from this project due to debt service will then decrease each year. CEC has mortgaged the assets of the Cooperative with the Rural Electrification Administration and the National Rural Utilities Cooperative Finance Corporation (CFC) to secure loans with each of these entities. Both of these mortgages require CEC to maintain a minimum Times Interest Earned Ratio (TIER) of 1.5. A discussion of TIER is outside the scope of this study, but in general it requires a minimum profit or margin level based on interest payments. On a business wide level, a TIER of 1.5 is very low and recognizes the capital intensive nature of the electric utility industry. From other considerations, the Board of Directors has established a TIER goal for CEC of 1.85. We can then establish the margins that the Cooperative must maintain based on the level of debt. Other expenses to be charged to this project include insurance, maintenance, and property lease charges. Other Cooperative charges such as general and administrative, accounting, consumer billing, etc. will not change significantly due to this project and will not be considered in this analysis. Maintenance is estimated at one cent per kwh generated. This is also expected to increase at the general inflation rate. CEC maintains replacement cost insurance on all major facilities. The insurance industry is 81 undergoing severe financial stress and insurance rates are very volatile. 1984 insurance rates were 7.5 cents per hundred dollar value. In 1985 these rates have increased to 22 cents per hundred. We have been given a preliminary quote of 95 cents per hundred for 1986. For the purpose of this study, an insurance rate of $.50 per $100.00 of value will be used. Figure V-32 shows the total annual cost of this hydro electric project as it will appear on the accounting records of the Cooperative for years 1, 5 and 10. With the exception of maintenance and interest which is recorded on the Cooperative's books as incurred, all of the remaining expenses will be recorded on a prorated basis monthly. Savings associated with operation of the hydro electric project will be reduced diesel consumption and reduced maintenance on the engines. These savings will be realized only during months the project generates energy. Figure V-33 shows the average monthly hydro electric power production from the project as developed in the chapter. This figure also shows the monthly savings expected based on operation of the project. It can be seen from an accounting point of view that on a month-by-month basis the revenue from the project will not coincide with the expenses. 82 There are several options available to the Cooperative in adjusting consumers' rates to show savings and expenses associated with operation of the project. 83 OPTION I Estimate savings and expenses from the project and calculate as per kwh surcharge as a credit to be applied to each consumer's bill all year long. Advantages: 1. Benefits accrue to consumers all year long. 2. Easily calculated based on budgeted items. 3. Can be adjusted as needed. 4. Consumer can see exact benefits on his bill from this project. Disadvantages: 1. Requires a "trueing up" at end of year if actual amounts do not equal budgeted amounts. 2. Large power users who pay a lower per kwh charge would receive a larger percent benefit. 3. Benefits are received by consumers during CEC's low cash flow period (winter), further reducing cash flow. 84 OPTION II Expense the cost of the project on a monthly basis, but only credit consumers during month that power is actually generated. Advantages: 1. No "trueing up" at the end of the year since savings are known exactly before being passed on to the consumer. 2. Benefits canneries and other summer power users. 3. Easily calculated and applied to bill. 4. Benefits would be received by consumers during CEC's high cash flow period. Disadvantages: 1. Benefits not given to all consumers equally. 2. Summer only users doubly benefit since they share all savings while winter only users pay higher rates to cover project expenses, but receive no benefits. 3. will increase bills during the period when hydro power is not available. 85 OPTION III Incorporate all savings and expenses within the rate base. All electric rates would be changed by an equal percentage. Advantages: 1. All consumers receive an equal share of benefits based on electricity usage. 2. Simplified accounting treatment since hydro costs would not be maintained separately. Disadvantages: 1. Consumer would not see benefit on their bills and consequently would not be aware of savings realized from hydro. 86 OPTION IV Accumulate hydro expense charges in a deferred account and expense them only as power is produced from the project. Advantages: 1. Hydro expenses show up only when savings are present to offset them. 2. Consumers do not pay expenses when no savings are present. 3. Does not show costs associated with hydro during months when not running. Disadvantages: 1. Requires "trueing up" at end of year if savings and expenses do not meet expectations. 2. Consumers using power during periods with no hydro production will not receive any benefit. 3. Most benefit would be achieved by those users using power during spring, summer and early fall months. 4. Tends to distort financial statement since Cooperative would be incurring expenses that would not show up on financial statement. 87 Alc Figure V-29 LIST OF PLANT ACCOUNTS ASSOCIATED WITH HYDRO ELECTRIC POWER PRODUCTION No. Description 330 Land and Land Rights. Includes the cost of land and land rights used in connection with hydraulic power generation. It shall also include the cost of land and land rights used in connection with the conservation of fish and wildlife, and recreation. Separate subaccounts shall be maintained for each of the abqve. 331 Structures and Improvements. Includes the cost in place of structures and improvements used in connection with hydraulic power generation. Also includes the qost in place of structures and improvements used in connection with the conservation of fish and wildlife and recreation. Separate subaccounts shall be maintained for each of the above. 332 Reservoirs, Dams and Waterways. Includes the c6st in place of facilities used for impounding, collecting, storage, diversion, regulation, and delivery of water used primarily for generating electricity. Also includes the cost in place of facilities used in connection with the conservation of fish and wildlife, and recreation. Separate subaccounts shall be maintained for each of the above. 333 Water Wheels, Turbines and Generators. Includes the cost installed of water wheels and hydraulic turbines (from connection with penstock or flume to tailrace) and generators driven thereby devoted to the production of electricity ·by water power or for the production of power for industrial or other purposes, if the equipment used for such purposes is a part of the hydraulic power plant works. 334 Accessory Electric Equipment. Includes the cost installed of auxiliary generating apparatus, conversion equipment, and equipment used primarily in connection with the control and switching of electric energy produced by hydraulic power and the protection of electric circuits and equipment, except electric motors used to drive equipment included in other accounts, such motors being included in the account in which the equipment with which they are associated is included. 335 Miscellaneous Power Plant Equipment. Includes the cost installed of miscellaneous equipment in and above the hydro electric generating plant which is devoted to general station use and is not properly includible in other hydraulic production accounts. Also includes the cost of equipment used in connection with the conservation of fish and wildlife, and recreation. Separate subaccounts shall be maintained for each of the above. 336 Roads, Railroads, and Bridges. Includes the cost of roads, railroads, trails, bridges, and trestles used primarily as production facilities. Also includes those roads, etc., necessary to connect the plant with highway transportation systems, except when such roads are dedicated to public use and maintained by public authorities. 353 Station Equipment Includes the cost installed of transforming, conversion, and switching equipment used for the purpose of changing the characteristics of electricity in connection with its transmission or for controlling transmission. 355 Poles & Fixtu'res Includes the cost installed of transmission line poles, wood, steel, concrete, or other material, together with appurtenant fixtures used for supporting overhead transmission conductors. 356 Overhead Conductors and Devices Includes the cost installed of overhead conductors and devices used for transmission purposes. Alc Figure V-30 SUMMARY OF EXPENSE ACCOUNTS ASSOCIATED WITH HYDRO ELECTRIC POWER PRODUCTION No. Description 535 Operation Supervision and Engineering. Includes the cost of labor and expenses incurred in the general supervision and direction fo the operation of hydraulic power generating stations. Direct supervision of specific activities, such as hydraulic operation, generator operation, etc. shall be charged to the appropriate account. 536 Water for Power. Includes the cost of water used for hydraulic power generation. Cost of water purchased from others, including water tolls paid reservoir companies. Periodic payments for licenses or permits from any governmental agency for water rights, or payments based on the use of the water. Periodic payments for riparian rights. Periodic payments for headwater benefits or for detriments to others. Cloud seeding. 537 Hydraulic Expenses. Includes the cost of labor, materials used and expenses incurred in operating hydraulic works including reservoirs, dams, and waterways, and in activities directly relating to the hydroelectric development outside the generating station. It shall also include the cost of labor, materials used and other expenses incurred in connection with the operation of fish and wildlife, and recreation facilities. 538 Electric Expenses. Includes the cost of labor, materials used and .expenses incurred in operating prime movers, generators, and their auxiliary apparatus, switchgear, and other electric equipment to the point where electricity leaves for conversion for transmission or distribution. 539 Miscellaneous Hydraulic Power Generation Expenses. Includes the cost of labor, materials used and expenses incurred which are not specifically provided for or are not readily assignable to other hydraulic generation operation expense accounts. 540 Rents. Includes all rents of property of others used, occupied or operated in connection with hydraulic power generation, including amounts payable to the United States for the occupancy of public lands and reservations for reservoirs, dams, flumes, forebays, penstocks, power houses, etc., but not including transmission right of way. 541 Maintenance Supervision and Engineering. Includes the cost of labor and expenses incurred in the general supervision and direction of the maintenance of hydraulic power generating stations. Direct field supervision of specific jobs shall be charged to the appropriate maintenance account. 542 Maintenance of Structures. Includes the cost of labor, materials used, and expenses incurred in maintenance of hydraulic strucutres, the book cost of which is includible in Account 331, Structures and Improvements. However, the cost of labor, materials used and expenses incurred in the maintenance of fish and wildlife, and recreation facilities, the book cost of which is includible in Account 331, Structures and Improvements, shall be charged to Account 545, Maintenance of Miscellaneous Hydraulic Plant. 543 Maintenance of Reservoirs, Dams and Waterways. Includes the cost of labor, materials used, and expenses incurred in maintenance of plant includible in Account 332, Reservoirs, Dams and Waterways. However, the cost of labor, materials used and expenses incurred in the maintenance of fish and wildlife, and recreation facilities, the book cost of which is includible in Account 332, Reservoirs, Dams and Waterways, shall be charged to Account 545, Maintenance of Miscellaneous Hydraulic Plant. 544 Maintenance of Electric Plant. -Includes the cost of labor, materials used and expenses incurred in maintenance of plant includible in Account 333, Water Wheels, Turbines, and Generators and Account 334, Accessory Electric Equipment. 545 Maintenance of Miscellaneous Hydraulic Plant. Includes the cost of labor, materials used, and expenses incurred in maintenance of plant, the book cost of which is includible in Account 335, Miscellaneous Power Plant Equipment, and Account 336, Roads, Railroads and Bridges. Also includes the cost of labor, materials used and other expenses incurred in the maintenance of fish and wildlife, and recreation facilities. Separate accounts shall be maintained for each of the above. Figure V-31 APPORTIONMENT OF HUMPBACK CREEK HYDRO ELECTRIC PROJECT COSTS G.L. Total State CEC Annual No. Description Cost Equity Investment Life Depreciation 331 Structures and $ 300,000. $ 120,000. $ 180,000. 20 $ 9,000. Improvements 332 Reservoirs, 1,500,000. 600,000. 900,000. 35 25,700. Dams & Waterways 333 Turbines and 1,050,000. 420,000. 630,000. 33 19,000. Generators 334 Accessory 150,000. 60,000. 90,000. 30 3,000. Elec. Equipment 335 Misc. Power 50,000. 20,000. 30,000. 10 3,000. Plant Equipment 353 Station Equipment 50,000. 20,000. 30,000. 30 1,000. 355 Poles & Fixtures 25,000. 10,000. 15,000. 30 500. 356 Overhead Conductors 25,000. 10,000. 15,000. 30 500. and Devices 336 Roads & Trails 100,000. 40,000. 60,000. 2,000. Totals $3,250,000. $1,300,000. $1,950,000. $ 63,700. Composite Depreciation Rate .0327 G.L. No. 403.3 427.2 540 408.6 924 925 535 to 545 Figure V-32 SUMMARY OF ANNUAL EXPENSES ASSOCIATED WITH HUMPBACK CREEK HYDRO PLANT Annual Amounts Description Year 1 Depreciation $ 63,700. Interest 68,250. TIER (Margins) 34,100. Property Lease 10,000. Taxes and 16,700. Insurance Operations & Maintenance 36£100. Total Cost $228,850. Note: 3% Inflation Assumed 1. 50 TIER Year 5 $ 63,700. 64,064. 32,000. 11,500. 19,300. 41£800. $232,364. Year 10 $ 63,700. 58,722. 29,400. 13,400. 22,400. 48£500. $236,122. Figure V-33 MONTHLY KWH PRODUCTION, COSTS AND SAVINGS BASED ON 3.5 MILLION KWH ANNUAL GENERATION 1987 Net KWH Fixed Variable Savings Month Generated Costs Costs Savings (Cost) Oct. 478,900 $ 16,063. $ 4,94l. $ 40,99l. $ 19,987. Nov. 330,005 16,063. 3,405. 28,247. 8,779. Dec. 169,578 16,063. 1,750. 14,515. (3,298.) Jan. 48,339. 16,063. 500. 4,138. (12,425.) Feb. 6,123. 16,063. 63. 524. (15,602.) March 2,313. 16,063. 24. 198. (15,889.) April 119,266 16,063. 1,230. 10,209. (7,084.) May 452,213 16,063. 4,666. 38,707. 17,978. June 567,516 16,063. 5,855. 48,577. 26,659. July 555,218 16,063. 5,728. 47,524. 25,733. Aug. 331,280 16,063. 3,418. 28,356. 8,875. Sept. 438,283 16,063. 4,522. 37,515. 16,930. Total 3,499,034 $192,756. $36,102. $299,50l. $70,643. POWER COST EQUALIZATION CEC receives payments from the State of Alaska Power Cost Equalization Program. Payments under this program are based on the utility's cost of producing energy and not (subject to some limitations) on the sale price of this energy. The Alaska Public Utilities Commission has determined that the average cost of producing power in Cordova is 19.01 cents per kwh (based on 1984 test year). See Appendix D. Ninety-five (95) percent of the amount over 8.5 cents per kwh is eligible for power cost equalization. Thus CEC passes a credit on to our consumers amounting to 9.98 cents per kwh on the first 750 kwh. Note that these figures are based on the cost of energy, not the price paid by the consumer. Figure V-34 shows the amount actually paid per kwh for various classes of consumers. As would be expected, the canneries pay the least amount per kwh when operating due to the economies of scale. Also, as expected, the canneries receive the least assistance from Power Cost Equalization since PCE is applied only to the first 750 kwh. As discussed above, the amount of PCE is based on the cost of providing energy. Then, if the cost of producing energy over a 12 month period is reduced, the amount of Power Cost Equalization is reduced. It is through this mechanism that the State of Alaska will directly benefit from this hydro electric project. CEC has adopted Tariff revisions that automatically adjust the consumers' bill as Power Cost Equalization changes so that the bill will remain constant (for equal usage). 88 It is through the PCE adjustment that the State of Alaska will benefit. As stated above, any cost reduction for consumers using less than 750 kwh per month will be passed on to the State. Savings for larger users will be passed on to the user. It should be noted in passing that, even with State PCE reducing the cost of electric energy by 9.98 cents per kwh, electricity remains a more expensive form of energy than alternatives for heating and cooking. During 1985 Cordova Electric Cooperative expects kwh sales eligible for Power Cost Equalization to amount to 7,350,000 kwh. The per kwh amount of PCE is established by law to be 95 percent of the utility's cost of producing power above 8.5 cents per kwh. Cordova Electric Cooperative currently receives 9.98 cents per kwh eligible for state power cost equalization. Figure V-35 shows the total amount of Power Cost Equalization received from the State of Alaska under this program over the thirty year study period. Construction of the Humpback Creek hydro project will save the State of Alaska $4,300,000.00 over the thirty year period. 89 Rate Class Residential Small Commercial Large Power Cannery (Winter) Cannery (Summer) Cannery (Year Average) Figure V-34 AVERAGE COST PER KWH PAID BY VARIOUS RATE CLASSES (Based on 1984 Data) Kwh Cost Per Kwh Usage Without PCE 500 23.00 2,000 19.18 30,000 17.13 50KW 11,000 19.64 50KW 200,000 16.74 600KW 18.26 ~In cents! With PCE 13.02 15.44 16.88 18.96 16.70 18.16 SAVINGS TO THE STATE OF ALASKA THROUGH THE POWER COST EQUALIZATION PROGRAM ------NO HYDRO---------WITH HYDRO--- KWH ELIGIBLE PCE PCE COST PCE PCE COST SAVINGS FOR PCE TO STATE 1987 7554167 10.06 $759,949 10.06 $759,949 $0 1988 7880833 10.20 $803,845 9.88 $778,626 $25;2 1 :': 1989 8289167 10.27 $851,297 9.93 $823,114 $28,ldj 1990 8493333 10.75 $913,033 10.35 $879,060 $33,973 1991 8860833 11. 08 $981,780 10.64 $942,793 $38,988 1992 9391667 11. 29 $1,060,319 10.81 $1,015,239 $45,080 1993 10085833 13.19 $1,330,321 12.68 $1,278,884 $51,438 1994 10575833 13.48 $1,425,622 12.93 $1,367,455 $58,167 1995 10861667 14.01 $1,521,720 13.41 $1,456,550 $65,170 1996 11065833 14.64 $1,620,038 13.99 $1,548,110 $71,928 1997 11433333 15.17 $1,734,437 14.47 $1,654,403 $80,033 1998 11760000 15.77 $1,854,552 15.02 $1,766,352 $88,200 1999 12250000 16.27 $1,993,075 15.48 $1,896,300 $96,775 2000 12862500 16.73 $2,151,896 15.91 $2,046,424 $105,473 2001 13393333 17.32 $2,319,725 16.45 $2,203,203 $116,522 2002 13393333 18.33 $2,454,998 17.39 $2,329,101 $125,897 2003 13393333 19.38 $2,595,628 18.36 $2,459,016 $136,612 2004 13393333 20.48 $2,742,955 19.38 $2,595,628 $147,327 2005 13393333 21. 63 $2,896,978 20.45 $2,738,937 $158,041 2006 13393333 22.83 $3,057,698 21. 55 $2,886,263 $171,435 2007 13393333 23.73 $3,178,238 22.40 $3,000,107 $178,131 2008 13393333 24.66 $3,302,796 23.28 $3,117,968 $184,828 2009 13393333 25.62 $3,431,372 24.18 $3,238,508 $192,864 2010 13393333 26.62 $3,565,305 25.11 $3,363,066 $202,239 2011 13393333 27.64 $3,701,917 26.06 $3,490,303 $211,615 2012 13393333 28.70 $3,843,887 27.05 $3,622,897 $220,990 2013 13393333 29.79 $3,989,874 28.07 $3,759,509 $230,365 2014 13393333 30.91 $4,139,879 29.12 $3,900,139 $239,741 2015 13393333 32.07 $4,295,242 30.20 $4,044,787 $250,455 2016 13393333 33.26 $4,454,623 31. 32 $4,194,792 $259,831 2017 13393333 34.49 $4,619,361 32.47 $4,348,815 $270,545 2018 13393333 35.76 $4,789,456 33.66 $4,508,196 $281,260 TOTAL 382444993 $82,381,816 $78,014,491 $4,367,325 PRESENT VALUE $41,774,323 $39,653,473 $2,120,849 Figure V-35 G. ECONOMIC ANALYSIS The decision to construct a hydro electric project depends on many factors. Among them is the benefits to be achieved by building and operating the project over a 20, 30 or 50 year life, compared to the cost to construct and operate another project over the same period. Another factor is the effect of the project on the cost of power in the community. For example, a project in which the benefits exceed the cost but significantly increases the cost of power in early years may not be as desirable as another project with less total benefits but which consistently decreases the cost of power over the life of the project. To evaluate the financial feasibility of Humpback Creek hydro electric project, the following base case was developed: 1) Construction cost of $3,200,000.00 made up as follows: State Equity Investment 40 percent or $1.3 million. CEC Equity Investment 18 percent or $576,000.00. Thirty year loan for the balance in the amount of $1,324,000.00. 2) For the benefit-to-cost analysis, a discount rate of 3.5 percent was used. 3) Generation and load growth as established by the Power Requirements Study which is summarized in Section III. 4) Generation from the hydro electric project was assumed at 3.5 million kwh per year. 5) A basic fuel inflation rate above the nominal inflation rate of minus four 90 ."' percent decrease for 1986, no increase for 1987 and 1988, two percent increase between 1989 and 2005 and no increase for the remainder of the thirty year study period. 6) An inflation rate of three percent was assumed for power cost purposes. 7) For the benefit-to-cost analysis, a period of thirty years was used. 8) A TIER of 1.85 on existing Cordova Electric Cooperative debt was assumed and a TIER of 1.5 on the debt portion of the Humpback Creek hydro project. For the power cost portion of the analysis, generation increments recommended by the 1985 Power Requirements Study were assumed to be installed on schedule. The possibility of delaying the acquisition of additional generating capacity was not evaluated as part of this investigation. A financial model of Cordova Electric Cooperative based on 1984 actual operating costs was developed and used as a base line in determining power cost projections. The "no hydro development" base line is included as Figure V-36. The base case with hydro development as described above was evaluated and a sample print-out is included as Figure V-37. A separate analysis of the cost and savings from the hydro project was developed. A sample of the base case is included as Figure V-38. The base case shows a cost of generation of power in Humpback Creek ranging from 6.5 cents per kwh in 1987 to 6.8 cents per kwh in 2002. Savings over generating the same number of kilowatt hours with diesel 91 range from 2.02 cents per kwh in 1987 to 10.24 cents per kwh in 2002. Under the base case, the average retail power rate in Cordova would decrease from 19.24 cents per kwh to 18.90 cents per kwh in 1987. By the year 2002, the cost of power would decrease from 28.90 cents per kwh to 27.83 cents per kwh with the Humpback Creek hydro electric project. 92 Figure V-36 Sheet #1 HUMPBACK CREEK HYDROELECTRIC DEVELOPMENT--ECONOMIC ANALYSIS CASE O--NO HYDRO ASSUMPTIONS: YEAR-----1986 1987 HYDRO CONSTRUCTION COST 0 STATE EQUITY INVESTMENT 0% CEC EQUITY INVESTMENT 0% COMPOSITE DEPRECIATION RATE--HYDRO 3.27% COMPOSITE DEPRECIATION RATE--GENERATION 3.74% COMPOSITE DEPRECIATION RATE--DISTRIBUTION 3.18% LOAN INTEREST RATE 5% INFLATION 3% 3% FUEL COST ABOVE INFLATION -4% 0% TOTAL GENERATION 18.5 19.3 PEAK LOAD 5100 5300 HYDRO GENERATION 0 0 FUEL COST 0.950 0.979 DISCOUNT RATE 3.5% NET GEN EFFICIENCY (KWH/GAL) 13 13 OPERATING MARGIN (TIER) TARGET 1. 85 1. 85 OPERATING MARGIN (TIER) TARGET (HYDRO) 1.5 1.5 GENERATION PLANT ADDITIONS 10000 DISTRIBUTION PLANT ADDITIONS 300000 INSTALLED CAPACITY: ORCA PLANT 4903 4903 EYAK PLANT 5900 5900 HUMPY CREEK 0 0 TOTAL 10803 10803 OPERATING COSTS: (FIXED) PRODUCTION PLANT DEPRECIATION 234000 234400 HYDRO PLANT DEPRECIATION 0 0 DISTRIBUTION PLANT DEPRECIATION 120500 130000 OTHER DEPRECIATION 15500 15500 INTEREST ON PRODUCTION PLANT 285000 285487 INTEREST ON HYDRO PLANT 0 0 INTEREST ON DISTRIBUTION PLANT 160000 172600 INTEREST ON OTHER PLANT 7000 7000 RENT OF PRODUCTION PLANT PROPERTY 4000 4000 RENT OF HYDRO PLANT PROPERTY 0 0 OPERATING COSTS (VARIABLE) PRODUCTION PLANT OPERATIONS 225000 231800 PRODUCTION PLANT MAINTENANCE 145000 155800 DIESEL FUEL 1351900 1452700 HYDRO PLANT 0 & M 0 0 DISTRIBUTION PLANT 0 & M 181000 194500 CONSUMER COSTS 51000 52500 GENERAL AND ADMINISTRATIVE COSTS 286000 294600 TAXES AND INSURANCE 82000 86700 REQUIRED OPERATING MARGINS 384200 395300 TOTAL OPERATING COSTS 3532000 3713000 COST PER KWH (CENTS) 19.09 19.24 1988 3% 0% 20.3 5400 0 1. 008 13 1. 85 1.5 10300 309000 4903 5900 0 10803 234800 0 139900 15500 286000 0 185700 7000 4000 0 238800 168800 1573800 0 210700 54100 303400 91700 406900 3921000 19.32 1989 1990 1991 1992 1993 1994 3% 3% 3% 3% 3% 39" . 0 2% 2% 2% 2% 2% .... 0 "::'0 20.8 21. 7 23 24.7 25.9 26.6 5600 5800 6000 6800 7000 7200 0 0 0 0 0 0 1. 059 1.112 1.169 1. 228 1. 290 1. 355 13 13 13 13 13 13 1. 85 1. 85 1. 85 1. 85 1. 85 1. 85 1.5 1.5 1.5 1.5 1.5 1.5 10600 10900 11200 3505100 11900 12300 318300 327800 337600 347700 358100 368800 4903 4903 4903 9903 9903 9903 4550 4550 4550 4550 4550 4550 0 0 0 0 0 0 9453 9453 9453 14453 14453 14453 235200 235600 236000 367200 367700 368100 0 0 0 0 0 0 150000 160400 171100 182200 193600 205300 15500 15500 15500 15500 15500 15500 286500 287000 287500 447300 447900 448400 0 0 0 0 0 0 199100 212900 227100 241800 256900 272400 7000 7000 7000 7000 7000 7000 4000 4000 4000 4000 4000 4000 0 0 0 0 0 0 246000 253400 261000 268800 276900 285200 178100 191400 209000 231200 249700 264100 1694200 1856900 2067700 2332900 2570000' 2773100 0 0 0 0 0 0 222400 239000 260900 288600 311700 329700 55700 57400 59100 60900 62700 64600 312500 321900 331600 341500 351700 362300 97000 102600 108500 149400 157100 165200 418700 430900 443400 591700 605000 618600 4122000 4376000 4689000 5530000 5877000 6184000 19.82 20.17 20.39 22.39 22.69 23.25 1995 1996 1997 3% 3% 3% )9-~O 2% 2% 27.1 28 28.8 7400 7600 7900 0 0 0 1. 424 1. 496 1. 572 13 13 13 1. 85 1. 85 1. 85 1.5 1.5 1.5 12700 11100 13500 379900 391300 403000 9903 9903 9903 4550 4550 4550 0 0 0 14453 14453 14453 368600 369100 369600 0 0 0 217400 229800 242700 15500 15500 15500 449000 449600 450200 0 0 0 288500 305000 322100 7000 7000 7000 4000 4000 4000 0 0 0 293800 302600 311700 277100 294900 312400 2968100 3221900 3481600 0 0 0 346000 368200 390100 66500 68500 70600 373200 384400 395900 173800 182900 192500 632800 647400 662400 6481000 6851000 7228000 *' ,"4' 23.92 24.47 25.10 Figure V-36 Sheet #2 1998 1999 3% 3% 2% 2% 30 31. 5 8100 8300 0 0 1. 651 1. 735 13 13 1.85 1. 85 1.5 1.5 13900 14300 415100 427600 9903 9903 4550 4550 0 0 14453 14453 370100 370600 0 0 255900 269500 15500 15500 450800 451400 0 0 339600 357600 7000 7000 4000 4000 0 0 321100 330700 335200 362500 3810200 4203200 0 0 418500 452600 72700 74900 407800 420000 202600 213300 677800 693600 7689000 8226000 25.63 26.11 2000 2001 2002 3% 3% 3% 2% 2% 2% 32.8 32.8 32.8 8600 8600 8600 0 0 0 1. 822 1. 915 2.012 13 13 13 1. 85 1. 85 1. 85 1.5 1.5 1.5 14700 15100 15600 440400 453600 467200 9903 9903 9903 4550 4550 4550 0 0 0 14453 14453 14453 371200 371800 372300 0 0 0 283500 297900 312700 15500 15500 15500 452100 452800 453400 0 0 0 376200 395300 414900 7000 7000 7000 4000 4000 4000 0 0 0 340600 350800 361300 388800 400500 412500 4598100 4830800 5075200 0 0 0 485400 500000 515000 77100 79400 81800 432600 445600 459000 224600 236500 249000 710000 726800 744000 8767000 9115000 9478000 26.73 27.79 28.90 2003 2004 2005 2006 2007 2008 3% 3% 3% 3" ii 3% 3% 2% 2% 2% 0% 0% 0% 32.8 32.8 32.8 32.8 32.8 32.8 8600 8600 8600 8600 8600 8600 0 0 0 0 0 0 2.113 2.220 2.333 2.403 2.475 2.549 13 13 13 13 13 13 1. 85 1. 85 1. 85 1. 85 1. 85 1. 85 1.5 1.5 1.5 1.5 1.5 1.5 16100 16600 17100 17600 18100 18600 481200 495600 510500 525800 541600 557800 9903 9903 9903 9903 9903 9903 4550 4550 4550 4550 4550 4550 0 0 0 0 0 0 14453 14453 14453 14453 14453 14453 373000 373600 374200 374900 375500 376200 0 0 0 0 0 0 328000 343800 360000 376800 394000 411700 15500 15500 15500 15500 15500 15500 454300 455000 455700 456600 457300 458200 0 0 0 0 0 0 435200 456200 477700 500000 522800 546300 7000 7000 7000 7000 7000 7000 4000 4000 4000 4000 4000 4000 0 0 0 0 0 0 372100 383300 394800 406600 418800 431400 424900 437600 450700 464200 478100 492400 5332000 5601800 5885200 6061800 6243700 6431000 0 0 0 0 0 0 530500 546400 562800 579700 597100 615000 84300 86800 89400 92100 94900 97700 472800 487000 501600 516600 532100 548100 262300 276400 291200 306900 323400 340900 762000 780500 799300 819100 839000 859800 9858000 10255000 10669000 10982000 11303000 11635000 30.05 31. 27 32.53 33.48 34.46 35.47 2009 2010 2011 3% 3% 3% 0% 0% 0% 32.8 32.8 32.8 8600 8600 8600 0 0 0 2.625 2.704 2.785 13 13 13 1. 85 1. 85 1. 85 1.5 1.5 1.5 19200 19800 20400 574500 591700 609500 9903 9903 9903 4550 4550 4550 0 0 0 14453 14453 14453 377000 377700 378500 0 0 0 430000 448800 468200 15500 15500 15500 459200 460100 461100 0 0 0 570600 595500 621200 7000 7000 7000 4000 4000 4000 0 0 0 444300 457600 471300 507200 522400 538100 6623900 6822600 7027300 0 0 0 633500 652500 672100 100600 103600 106700 564500 581400 598800 359500 379100 399800 881300 903200 925900 11978000 12331000 12696000 36.52 37.59 38.71 Figure V-36 Sheet # 3 2012 2013 3% 3% 0% 0% 32.8 32.8 8600 8600 0 0 2.869 2.955 13 13 1. 85 1. 85 1.5 1.5 21000 21600 627800 646600 9903 9903 4550 4550 0 0 14453 14453 379300 380100 0 0 488200 508700 15500 15500 462100 463100 0 0 647700 674900 7000 7000 4000 4000 0 0 485400 500000 554200 570800 7238100 7455200 0 0 692300 713100 109900 113200 616800 635300 421700 444800 949300 973300 13072000 13459000 39.85 41. 03 2014 2015 2016 2017 3% 3% 3% 3% 0% 0% 0% 0% 32.8 32.8 32.8 32.8 8600 8600 8600 8600 0 0 0 0 3.043 3.135 3.229 3.326 13 13 13 13 1. 85 1. 85 1. 85 1. 85 1.5 1.5 1.5 1.5 22200 22900 23600 24300 666000 686000 706600 727800 9903 9903 9903 9903 4550 4550 4550 4550 0 0 0 0 14453 14453 14453 14453 380900 381800 382600 383500 0 0 0 0 529900 551700 574200 597300 15500 15500 15500 15500 464100 465200 466200 467300 0 0 0 0 703000 731900 761700 792300 7000 7000 7000 7000 4000 4000 4000 4000 0 0 0 0 515000 530500 546400 562800 587900 605500 623700 642400 7678900 7909300 8146600 8390900 0 0 0 0 734500 756500 779200 802600 116600 120100 123700 127400 654400 674000 694200 715000 469300 495200 522600 551600 998000 1023500 1049700 1076600 13859000 14272000 14697000 15136000 42.25 43.51 44.81 46.15 Figure V-37 Sheet #1 HUMPBACK CREEK HYDROELECTRIC DEVELOPMENT--ECONOMIC ANALYSIS CASE 1--BASE CASE ASSUMPTIONS: YEAR-----1986 1987 HYDRO CONSTRUCTION COST 3250000 STATE EQUITY INVESTMENT 40% CEC EQUITY INVESTMENT 18% COMPOSITE DEPRECIATION RATE--HYDRO 3.27% COMPOSITE DEPRECIATION RATE--GENERATION 3.74% COMPOSITE DEPRECIATION RATE--DISTRIBUTION 3.18% LOAN INTEREST RATE 5% INFLATION 32-. ° 3% FUEL COST ABOVE INFLATION -4% 0% TOTAL GENERATION 18.5 19.3 PEAK LOAD 5100 5300 HYDRO GENERATION 0 3.5 FUEL COST 0.950 0.979 DISCOUNT RATE 3.5% NET GEN EFFICIENCY (KWH/GAL) 13 13 OPERATING MARGIN (TIER) TARGET 1. 85 1. 85 OPERATING MARGIN (TIER) TARGET (HYDRO) 1.5 1.5 GENERATION PLANT ADDITIONS 10000 DISTRIBUTION PLANT ADDITIONS 300000 INSTALLED CAPACITY: ORCA PLANT 4903 4903 EYAK PLANT 5900 5900 HUMPY CREEK 0 850 TOTAL 10803 11653 OPERATING COSTS: (FIXED) PRODUCTION PLANT DEPRECIATION 234000 234400 HYDRO PLANT DEPRECIATION 0 63700 DISTRIBUTION PLANT DEPRECIATION 120500 130000 OTHER DEPRECIATION 15500 15500 INTEREST ON PRODUCTION PLANT 285000 285487 INTEREST ON HYDRO PLANT 0 68250 INTEREST ON DISTRIBUTION PLANT 160000 172600 INTEREST ON OTHER PLANT 7000 7000 RENT OF PRODUCTION PLANT PROPERTY 4000 4000 RENT OF HYDRO PLANT PROPERTY 0 10000 OPERATING COSTS (VARIABLE) PRODUCTION PLANT OPERATIONS 225000 231800 PRODUCTION PLANT MAINTENANCE 145000 127600 DIESEL FUEL 1351900 1189300 HYDRO PLANT 0 & M 0 36100 DISTRIBUTION PLANT 0 & M 181000 194500 CONSUMER COSTS 51000 52500 GENERAL AND ADMINISTRATIVE COSTS 286000 294600 TAXES AND INSURANCE 82000 101300 REQUIRED OPERATING MARGINS 384200 429400 TOTAL OPERATING COSTS 3532000 3648000 COST PER KWH (CENTS) 19.09 18.90 1988 3% 0% 20.3 5400 3.5 1. 008 13 1. 85 1.5 10300 309000 4903 5900 850 11653 234800 63700 139900 15500 286000 67493 185700 7000 4000 10300 238800 139700 1302500 37200 210700 54100 303400 106800 440600 3848000 18.96 1989 1990 1991 1992 1993 1994 3% 3% 3% 3° '0 3% 3% 2% 2% 2% 2% 2° '0 2% 20.8 21. 7 23 24.7 25.9 26.6 5600 5800 6000 6800 7000 7200 3.5 3.5 3.5 3.5 3.5 3.5 1. 059 1.112 1.169 1. 228 1. 290 1. 355 13 13 13 13 13 13 1. 85 1. 85 1. 85 1. 85 1. 85 1. 85 1.5 1.5 1.5 1.5 1.5 1.5 10600 10900 11200 3505100 11900 12300 318300 327800 337600 347700 358100 368800 4903 4903 4903 9903 9903 9903 4550 4550 4550 4550 4550 4550 850 850 850 850 850 850 10303 10303 10303 15303 15303 15303 235200 235600 236000 367200 367700 368100 63700 63700 63700 63700 63700 63700 150000 160400 171100 182200 193600 205300 15500 15500 15500 15500 15500 15500 286500 287000 287500 447300 447900 448400 66697 65862 64985 64064 63098 62082 199100 212900 227100 241800 256900 272400 7000 7000 7000 7000 7000 7000 4000 4000 4000 4000 4000 4000 10600 10900 11200 11500 11800 12200 246000 253400 261000 268800 276900 285200 148200 160600 177200 198400 215900 229300 1409100 1557400 1753100 2002400 2222700 2408200 38300 39400 40600 41800 43100 44400 222400 239000 260900 288600 311700 329700 55700 57400 59100 60900 62700 64600 312500 321900 331600 341500 351700 362300 112500 118600 125000 166400 174600 183200 452100 463800 475900 623700 636600 649700 4035000 4274000 4572000 5397000 5727000 6015000 19.40 19.70 19.88 21. 85 22.11 22.61 1995 1996 3% 3% -'0 <::-6 2% 27.1 28 7400 7600 1.5 3.5 1. 424 1. 496 13 13 1. 85 1. 85 1.5 1.5 12700 13100 379900 391300 9903 9903 4550 4550 850 850 15303 15303 368600 369100 63700 63700 217400 229800 15500 15500 449000 449600 61017 59897 288500 305000 7000 7000 4000 4000 12600 13000 293800 302600 241300 258000 2584800 2819200 45700 47100 346000 368200 66500 68500 373200 384400 192300 201900 663300 677300 6294000 6644000 23.23 23.73 Figure V-37 Sheet #2 1997 1998 3% 3% 2% 2% 28.8 30 7900 8100 3. 5 3.5 1. 572 1. 651 13 13 1. 85 1. 85 1.5 1.5 13500 13900 403000 415100 9903 9903 4550 4550 850 850 15303 15303 369600 370100 63700 63700 242700 255900 15500 15500 450200 450800 58722 57488 322100 339600 7000 7000 4000 4000 13400 13800 311700 321100 274400 296000 3058500 3365700 48500 50000 390100 418500 70600 72700 395900 407800 212100 222800 691800 706500 7001000 7439000 24.31 24.80 1999 2000 2001 3% 3% 3% 2% 2% 2% 31.5 32.8 32.8 8300 8600 8600 3.5 3.5 3.5 1.735 1. 822 1. 915 13 13 13 1. 85 1. 85 1. 85 1.5 1.5 1.5 14300 14700 15100 427600 440400 453600 9903 9903 9903 4550 4550 4550 850 850 850 15303 15303 15303 370600 371200 371800 63700 63700 63700 269500 283500 297900 15500 15500 15500 451400 452100 452800 56193 54832 S3404 357600 376200 395300 7000 7000 7000 4000 4000 4000 14200 14600 15000 330700 340600 350800 322100 347200 357600 3736100 4107400 4315300 51500 53000 54600 452600 485400 500000 74900 77100 79400 420000 432600 445600 234100 246000 258600 721700 737400 753500 7953000 8469000 8792000 25.25 25.82 26.80 2002 2003 2004 2005 2006 2007 2008 3% 3% 3% 3% 3% 3% 3% 2% 2% 2% 2% 0% 0% 0% 32.8 32.8 32.8 32.8 32.8 32.8 32.8 8600 8600 8600 8600 8600 8600 8600 3.5 3.5 3.5 3.5 3.5 3.5 3.5 2.012 2.113 2.220 2.333 2.403 2.475 2.549 13 13 13 13 13 13 13 1. 85 1. 85 1. 85 1. 85 1. 85 1. 85 1. 85 1.5 1.5 1.5 1.5 1.5 1.5 1.5 15600 16100 16600 17100 17600 18100 18600 467200 481200 495600 510500 525800 541600 557800 9903 9903 9903 9903 9903 9903 9903 4550 4550 4550 4550 4550 4550 4550 850 850 850 850 850 850 850 15303 15303 15303 15303 15303 15303 15303 372300 373000 373600 374200 374900 375500 376200 63700 63700 63700 63700 63700 63700 63700 312700 328000 343800 360000 376800 394000 411700 15500 15500 15500 15500 15500 15500 15500 453400 454300 455000 455700 456600 457300 458200 51904 50329 48676 46940 45117 43203 41193 414900 435200 456200 477700 500000 522800 546300 7000 7000 7000 7000 7000 7000 7000 4000 4000 4000 4000 4000 4000 4000 15500 16000 16500 17000 17500 18000 18500 361300 372100 383300 394800 406600 418800 431400 368300 379300 390700 402400 414500 426900 439700 4533600 4763000 5004000 5257200 5415000 5577400 5744700 56200 57900 59600 61400 63200 65100 67100 515000 530500 546400 562800 579700 597100 615000 81800 84300 86800 89400 92100 94900 97700 459000 472800 487000 501600 516600 532100 548100 271800 285800 300600 316100 332600 349900 368200 770000 787200 804800 822800 841600 860600 880400 9128000 9480000 9847000 10230000 10523000 10824000 11135000 27.83 28.90 30.02 31.19 32.08 33.00 33.95 2009 2010 3% 3% 0% 0% 32.8 32.8 8600 8600 3.5 3.5 2.625 2.704 13 13 1. 85 1. 85 1.5 1.5 19200 19800 574500 591700 9903 9903 4550 4550 850 850 15303 15303 377000 377700 63700 63700 430000 448800 15500 15500 459200 460100 39082 36866 570600 595500 7000 7000 4000 4000 19100 19700 444300 457600 452900 466500 5917100 6094600 69100 71200 633500 652500 100600 103600 564500 581400 387600 408000 900800 921600 11456000 11786000 34.93 35.93 Figure V-37 Sheet #3 2011 2012 3% 3% 0% 0% 32.8 32.8 8600 8600 3.5 3.5 2.785 2.869 13 13 1. 85 1. 85 1.5 1.5 20400 21000 609500 627800 9903 9903 4550 4550 850 850 15303 15303 378500 379300 63700 63700 468200 488200 15500 15500 461100 462100 34540 32097 621200 647700 7000 7000 4000 4000 20300 20900 471300 485400 480500 494900 6277400 6465700 73300 75500 672100 692300 106700 109900 598800 616800 429600 452400 943200 965300 12127000 12479000 36.97 38.05 2013 3% 0% 32.8 8600 3.5 2.955 13 1. 85 1.5 21600 646600 9903 4550 850 15303 380100 63700 508700 15500 463100 29532 674900 7000 4000 21500 500000 509700 6659700 77800 713100 113200 635300 476500 988000 12841000 39.15 2014 2015 2016 2017 3% 3% 3% 3% 0% 0% 0% 0% 32.8 32.8 32.8 32.8 8600 8600 8600 8600 3.5 3.5 3.5 3.5 3.043 3.135 3.229 3.326 13 13 13 13 1. 85 1. 85 1. 85 1. 85 1.5 1.5 1.5 1.5 22200 22900 23600 24300 666000 686000 706600 727800 9903 9903 9903 9903 4550 4550 4550 4550 850 850 850 850 15303 15303 15303 15303 380900 381800 382600 383500 63700 63700 63700 63700 529900 551700 574200 597300 15500 15500 15500 15500 464100 465200 466200 467300 26838 24010 21041 17923 703000 731900 761700 792300 7000 7000 7000 7000 4000 4000 4000 4000 22100 22800 23500 24200 515000 530500 546400 562800 525000 540800 557000 573700 6859500 7065300 7277300 7495600 80100 82500 85000 87600 734500 756500 779200 802600 116600 120100 123700 127400 654400 674000 694200 715000 501900 528800 557200 587200 1011400 1035500 1060200 1085600 13215000 13602000 14000000 14410000 40.29 41. 47 42.68 43.93 Figure V-38 Sheet #1 HUMPBACK CREEK HYDROELECTRIC DEVELOPMENT--ECONOMIC ANALYSIS CASE 1--BASE CASE ASSUMPTIONS: YEAR-----1986 1987 1988 1989 1990 1991 1992 1993 HYDRO CONSTRUCTION COST 3250000 STATE EQUITY INVESTMENT 40% CEC EQUITY INVESTMENT 18% COMPOSITE DEPRECIATION RATE--HYDRO 3.27% LOAN INTEREST RATE 5.0% INFLATION 3% 3% 3% 3% 3% 3% 3% 3% FUEL COST ABOVE INFLATION -4% 0% 0% 2.0% 2.0% 2.0% 2.0% 2.0% TOTAL GENERATION 18.5 19.3 20.3 20.8 21.7 23 24.7 25.9 PEAK LOAD 5100 5300 5400 5600 5800 6000 6800 7000 HYDRO GENERATION 0 3.5 3.5 3.5 3.5 3.5 3.5 3.5 FUEL COST 0.950 0.979 1.008 1. 059 1.112 1.169 1. 228 1. 290 DISCOUNT RATE 3.5% NET GEN EFFICIENCY (KWH/GAL) 13 13 13 13 13 13 13 13 OPERATING MARGIN (TIER) TARGET (HYDRO) 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 OPERATING COSTS: (FIXED) HYDRO PLANT DEPRECIATION 0 63700 63700 63700 63700 63700 63700 63700 INTEREST ON HYDRO PLANT 0 68250 67493 66697 65862 64985 64064 63098 RENT OF HYDRO PLANT PROPERTY 0 10000 10300 10600 10900 11200 11500 11800 OPERATING COSTS (VARIABLE) HYDRO PLANT 0 & M 0 36100 37200 38300 39400 40600 41800 43100 TAXES AND INSURANCE 0 16700 17200 17700 18200 18700 19300 19900 REQUIRED OPERATING MARGINS 0 34100 33700 33300 32900 32500 32000 31500 TOTAL OPERATING COSTS 0 228900 229600 230300 231000 231700 232400 233100 SAVINGS FUEL 0 263400 271300 285100 299500 314700 330600 347300 MAINT 0 36100 37200 38300 39400 40600 41800 43100 TOTAL SAVINGS 0 299500 308500 323400 338900 355300 372400 390400 NET COST (SAVINGS) 0 -70600 -78900 -93100 -107900 -123600 -140000 -157300 COST PER KWH (CENTS) 0.00 6.54 6.56 6.58 6.60 6.62 6.64 6.66 SAVINGS OVER DIESEL POWER 0.00 2.02 2.25 2.66 3.08 3.53 4.00 4.49 NET PRESENT VALUE OF COSTS 4829899 NET PRESENT VALUE OF SAVINGS 9905912 BENEFIT TO COST RATIO 2.05 1994 1995 3% 3% 2.0% 2.0% 26.6 27.1 7200 7400 3.5 3.5 1. 355 1. 424 13 13 1.5 1.5 63700 63700 62082 61017 12200 12600 44400 45700 20500 21100 31000 30500 233900 234600 364900 383300 44400 45700 409300 429000 -175400 -194400 6.68 6.70 5.01 5.55 Figure V-38 Sheet #2 1996 1997 3% 3% 2.0% 2.0% 28 28.8 7600 7900 3.5 3.5 1. 496 1.572 13 13 1.5 1.5 63700 63700 59897 58722 13000 13400 47100 48500 21700 22400 29900 29400 235300 236100 402700 423100 47100 48500 449800 471600 -214500 -235500 6.72 6.75 6.13 6.73 1998 1999 2000 3% 3% 3% 2.0% 2.0% 2.0% 30 31. 5 32.8 8100 8300 8600 3.5 3.5 3.5 1.651 1. 735 1. 822 13 13 13 1.5 1.5 1.5 63700 63700 63700 57488 56193 54832 13800 14200 14600 50000 51500 53000 23100 23800 24500 28700 28100 27400 236800 237500 238000 444500 467000 490600 50000 51500 53000 494500 518500 543600 -257700 -281000 -305600 6.77 6.79 6.80 7.36 8.03 8.73 2001 2002 2003 2004 2005 2006 2007 3% 3% 3% 3% 3% 3% 3% 2.0% 2.0% 2.0% 2.0% 2.0% 0.0% 0.0% 32.8 32.8 32.8 32.8 32.8 32.8 32.8 8600 8600 8600 8600 8600 8600 8600 3.5 3.5 3.5 3.5 3.5 3.5 3.5 1. 915 2.012 2.113 2.220 2.333 2.403 2.475 13 13 13 13 13 13 13 1.5 1.5 1.5 1.5 1.5 1.5 1.5 63700 63700 63700 63700 63700 63700 63700 53404 51904 50329 48676 46940 45117 43203 15000 15500 16000 16500 17000 17500 18000 54600 56200 57900 59600 61400 63200 65100 25200 26000 26800 27600 28400 29300 30200 26700 26000 25200 24300 23500 22600 21600 238600 239300 239900 240400 240900 241400 241800 515500 541600 569000 597800 628000 646800 666200 54600 56200 37900 59600 61400 63200 65100 570100 597800 626900 657400 689400 710000 731300 -331500 -358500 -387000 -417000 -448500 -468600 -489500 6.82 6.84 6.85 6.87 6.88 6.90 6.91 9.47 10.24 11. 06 11. 91 12.81 13.39 13.99 2008 2009 3% 3% 0.0% 0.0% 32.8 32.8 8600 8600 3.5 3.5 2.549 2.625 13 13 1.5 1.5 63700 63700 41193 39082 18500 19100 67100 69100 31100 32000 20600 19500 242200 242500 686200 706800 67100 69100 753300 775900 -511100 -533400 6.92 6.93 14.60 15.24 Figure V-38 Sheet ~D 2010 2011 3% 3% 0.0% 0.0% 32.8 32.8 8600 8600 3.5 3.5 2.704 2.785 13 13 1.5 1.5 63700 63700 36866 34540 19700 20300 71200 73300 33000 34000 18400 17300 242900 243100 728000 749900 71200 73300 799200 823200 -556300 -580100 6.94 6.95 15.89 16.57 2012 3% 0.0% 32.8 8600 3.5 2.869 13 1.5 63700 32097 20900 75500 35000 16000 243200 772400 75500 847900 -604700 6.95 17.28 2013 2014 2015 2016 2017 3% 3% 3% 3% 3% 0.0% 0.0% 0.0% 0.0% 0.0% 32.8 32.8 32.8 32.8 32.8 8600 8600 8600 8600 8600 3.5 3.5 3.5 3.5 3.5 2.955 3.043 3.135 3.229 3.326 13 13 13 13 13 1.5 1.5 1.5 1.5 1.5 63700 63700 63700 63700 63700 29532 26838 24010 21041 17923 21500 22100 22800 23500 24200 77800 80100 82500 85000 87600 36100 37200 38300 39400 40600 14800 13400 12000 10500 9000 243400 243300 243300 243100 243000 795500 819400 844000 869300 895400 77800 80100 82500 85000 87600 873300 899500 926500 954300 983000 -629900 -656200 -683200 -711200 -740000 6.95 6.95 6.95 6.95 6.94 18.00 18.75 19.52 20.32 21.14 Sensitivity Analysis To test the sensitivity of the various assumptions discussed in the previous section on the feasibility of the project, a series of alternatives were evaluated. Each of these alternatives evaluated three specific areas: 1) Cost of power from the project and the resulting savings over generating an equivalent amount of power utilizing diesel. 2) The cost of power in Cordova with and without the hydro electric project. 3) The resulting benefit-to-cost ratio of the project. The benefit-to-cost analysis normally utilizes actual construction cash flows. That is, the cost of the project is incurred as funds are expended on the project. This benefit-to-cost ratio is shown in Figure V-39 and labelled "Actual Cash Flows". The only items considered in this benefit-to-cost ratio are the construction costs, operations and maintenance costs, taxes, insurance and the land lease costs. Benefits include only fuel and diesel maintenance savings. While this method properly evaluates the benefit-to-cost ratio of the project, it does not take into account other costs that Cordova Electric Cooperative will incur. These costs are discussed further in accounting treatment. Since the rates for electric energy that Cordova Electric Cooperative will charge its consumers is 93 set on the accounting treatment of the project, a second benefit-to-cost ratio was established. This second ratio is called the Cordova Electric cooperative cash flow, and does not consider construction costs per se, but rather considers interest charges, depreciation and required margins on the debt portion of the project. These three items are treated as a continuing series of cash flows. Since State equity investment in the project will not be part of the Cordova Electric cooperative rate base, it is not included in this benefit-to-cost ratio. Figure V-39 shows the second benefit-to-cost ratio and is labelled "Cordova Electric Cooperative Cash Flow". Figure V-40 shows the cost of power from this project under each of the alternatives discussed below. Figure V-41 shows the overall cost of energy in Cordova from each of these alternatives. 94 Summary of Alternatives Investigated Case #2--Low Construction Cost This alternative assumes a construction cost of $500,000.00 below our estimate. This alternative considers that the State equity investment remains constant at $1.3 million. Thus the State equity contribution has increased from 40 percent to 47 percent. The lower construction cost increases the benefit-to-cost ratio and reduces both the cost of power from the project and the cost of power in Cordova. Case #3--High Construction Costs This alternative assumes that the final construction cost of the project will be $500,000.00 more than estimated. It also assumes that the State equity investment remains constant at $1.3 million. This alternative provides a lower benefit-to-cost ratio although still significantly above one. The cost of power from the project in the early years is very close to the cost of diesel generated power, but becomes significantly less expensive in later years. In early years this option does not reduce the cost of power in Cordova significantly but by the year 2002 will result in a cost of power in Cordova of one cent per kwh lower than the diesel alternative. Case #4--Low Inflation To test the sensitivity of the project to the overall inflation rate, an inflation rate of zero was tested. Since the price paid for diesel fuel is tied by formula to the inflation rate, this reduces the overall diesel alternative costs while 95 the hydro power costs remain fairly constant. This significantly reduces the benefit-to-cost ratio, but the benefit-to-cost ratio still remains significantly above one. This alternative provides lower electric costs with hydro electric power over the study period. Case #S--High Inflation This alternative assumes that inflation increases at an average rate of six percent. The high inflation drives the cost of diesel generated power up much more rapidly and makes the hydro electric project more attractive in all cases. Case #6--TIER of 1.0 As discussed previously, Cordova Electric Cooperative is required by mortgage with our lenders, to maintain a Times Interest Earned Ratio (TIER) of 1.5. That is our operating margins plus interest divided by interest must be 1.5. These margins are available to the Cooperative for other projects and usually provide Cordova Electric Cooperative equity investment for other projects. These operating margins are also the source of the Cordova Electric Cooperative equity investment that will be made in this project. A TIER of 1.0 means that the project breaks even and does not generate any operating margins. This alternative provides lower cost power to Cordova although it is outside the scope of this study; a reduction in operating margins tends to increase future debt financing and increases future cost of power. Case #7--TIER of 1.85 The Board of Directors of Cordova Electric Cooperative has set a TIER goal of 1.85. This 96 provides the Cooperative with slightly more cash flow than a TIER of 1.5 which enables the Cooperative to build equity in the system and reduces the need for future borrowing. If the TIER on the debt portion of this project is increased to 1.85, it increases the cost of power from the project and the cost of power in Cordova and reduces the benefit-to-cost ratio. However, the cost of power still remains less than it would be without this project, and the benefit-to-cost ratio still remains significantly above one. Case #8--Low Generation Although we have used an annual generation of 3.5 million kwh for this project throughout the feasibility analysis, the sensitivity of the feasibility of this project to generation was investigated. This alternative assumes that the project generates a low of 2.5 million kwh. This is 30 percent below our estimate of generation for this project. The benefit-to-cost ratio at this generation level is still 1.77. The cost of power in the first year, 1987, is slightly higher than an equivalent amount of power generated with diesel fuel. However, the cross over point occurs in 1988 and after that reduces the cost of electric energy in Cordova. Case #9--High Generation This alternative investigates the feasibility of the project if it generated 4.5 million kwh per year, or 30 percent above our projected genera- tion. As would be expected, the benefit-to-cost ratio increases significantly and the cost of power from this project is significantly below the base case. This alternative would provide power 97 in 1987 at three cents per kwh below an equivalent diesel generation and would reduce the cost of power in Cordova by 3/4 of a cent per kwh. Case #10--Low Interest The feasibility of this project has been evaluated utilizing an interest rate for the debt portion of the project of five percent. The effect of a two percent loan on the cost of power was evaluated. This alternative provides power almost four cents per kwh below the cost of equivalent diesel generation and provides significant savings to the Cordova consumer. Case #ll--High Interest This alternative considered the effect on the cost of power if a State loan were not available. Cordova Electric Cooperative has access to alternative financing at an interest rate of approximately ten percent. While this alternative still has a benefit-to-cost ratio above one, the cost of power from this project in early years is nearly one cent per kwh above the cost of generating an equivalent amount of power with diesel. By 1992 the cost has crossed over and the power generated from the hydro electric project is lower than diesel generated power. Case #12--Low Fuel Costs The feasibility of the project was evaluated utilizing the Alaska Power Authority mean fuel price projections of minus four percent in 1986, no change in 1987 and 1988, and an increase of two percent per year from 1989 to 2005. This fuel escalation figure is above the base line inflation. The Alaska Power Authority's low fuel 98 price scenario calls for the price of diesel fuel to dec~ease four percent per year from 1986 to 1988 and then no increase for the remainder of this study period. The effect of this low fuel cost on the project was investigated. In the early years very little change in the feasibility of the project is seen. The benefits still are approximately two cents per kwh although in future years the benefits do not increase as rapidly as the base case since the price of diesel fuel does not climb as rapidly. Case #13--High Fuel Costs A high fuel cost projection figure which calls for no change in the price of fuel between 1986 and 1988, and then an annual price increase of 3.5 percent from 1989 through 2005. In this case the first year savings are very similar to the base case, but future savings are much more significant due to the rapidly rising price of diesel fuel. Case #14--Best Possible Case As a test of the best that we anticipate could occur during this project, the following scenario was developed. The State equity investment would remain at $1.3 million, but the project could be built for $2.5 million. Cordova Electric Cooperative would be able to generate the remaining funding for this project internally and no borrowing would be required. It should be noted that this is not a probable case and should not be considered as an alternative to the base case. This alternative was prepared at the request of individuals who wanted to know what the best possible outcome of this project could be and 99 its effect on the cost of electric energy. This alternative would provide for energy from Humpback Creek at less than three cents per kwh and would result in an immediate decrease of the cost of energy in Cordova of one cent per kwh increasing to 1.S cents per kwh by the year 2002. Case #lS--Worst Case The worst case was investigated which provides no State investment, a Cordova Electric Cooperative equity investment of 18 percent and the remainder of the project financed at 10 percent. While this alternative still provides a benefit-to-cost ratio above one on the actual cash flow, the discounted Cordova Electric Cooperative cash flow benefit- to-cost ratio is exactly one indicating that the benefits of the project equal exactly the cost of the project. This alternative significantly increases the cost of power in Cordova until 2001 at which time the hydro electric project power falls below diesel power. In the early years power from this project would be 1.S cents per kwh above the cost of diesel. It should be noted that before construction is started, we will be aware of the financing available to us to determine whether or not this case applies and a decision on whether to pursue the project could be made. Case #16--Worst Probable Case The worst probable case is a slightly better scenario than Case #lS. In this case it is assumed that Cordova Electric Cooperative would be able to invest approximately $1,000,000.00 of its own funds in the project over the project construction period. The remaining portion of the project would be financed at 10 percent interest 100 and no operating margins would be generated by this project. Although this project does provide more expensive power in the early years, in 1994 power becomes less expensive than the diesel alternative. This alternative has a benefit-to- cost ratio above one. As with Case #15, before construction is started, the sources of financing will be known and a decision whether to pursue the project can be made at that time. Summary of Alternatives Investigated With the exception of the two worst case scenarios, all of the other alternatives investigated still provide benefit-to-cost ratios significantly above one, and even if the cost of power from the project in early years is more than diesel, it is not significantly above diesel and the cross over point occurs fairly early on. Combinations of alternatives were not investigated since the number of permutations tends to increase quite rapidly. It should also be pointed out that it is believed that the base case is the case that will be seen by this project. The purpose of the sensitivity analysis is solely to ensure that there are no assumptions made on the project which can drastically alter the feasibility of the project if the assumption is an error. 101 Figure V-39 HUMPBACK CREEK HYDRO--SUMMARY OF ALTERNATIVE FINANCIN6 METHODS BENEFIT TO COST RATIO CASE DESCRIPTION CONSTRUCTION STATE CEC INTEREST INFLATION HYDRO SEN KNH CEC ACTUAL COST EQUITY EQUITY RATE RATE TIER "ILLIONS CASH FLON CASH FLON BASE CASE 3,250,000 401 181 51 31 1. 50 3.5 2.31 2.05 2 LON CONST COST 2,750,000 471 181 51 n 1.50 3.5 2.84 2.31 3 HI6H CONST COST 3,750,000 351 181 51 31 1.50 3.5 1.95 I.B4 4 LOtI INFLATION 3,250,000 401 181 51 01 1.50 3.5 1.70 1.48 5 HI6H INFLATION 3,250,000 401 181 51 n 1.50 3.5 3.0B 2.BO 6 TIER OF 1.0 3,250,000 401 lBI 51 31 1.00 3.5 2.60 2.05 7 TIER OF I.B5 3,250,000 401 lBI 51 31 1.85 3.5 2.14 2.05 8 LOtI 6EN£RATION 3,250,000 401 181 51 31 1.50 2.5 1.77 1.55 9 HI6H 6ENERATION 3,250,000 401 181 51 31 1.50 4.5 2.79 2.49 10 LON INTEREST 3,250,000 401 181 21 31 1.50 3.5 2.94 2.05 11 HI6H INTEREST 3,250,000 401 181 101 31 1.50 3.5 1.63 2.05 12 LOW FUEL COST 3,250,000 401 lBI 51 31 1.50 3.5 1.9B 1.56 13 HI6H FUEL COST 3,250,000 401 lBI 51 31 1.50 3.5 3.06 2.41 14 BEST P06S CASE 2,500,000 521 461 51 31 1.50 3.5 4.31 2.4B 15 NORST CASE 3,250,000 01 181 10.01 31 1.50 3.5 1.00 2.05 16 NORST PROB CASE 3,250,000 01 301 10.01 n 1.00 3.5 1.3B 2.05 f" W ,,~ HUMPBACK CREEK HYDRO--SUMMARY OF ALTERNATIVE FINANCING METHODS CASE DESCR I P Tl ON CONSTRUCTION STATE CEC INTEREST INFLATION HYDRO GEN KWH POWER COST FROM HUMPBACK CREEK AND SAVINGS OVER DIESEL GENERATION COST EQUITY EQUITY RATE RATE TIER MILLIONS 1987 1992 1997 2002 BASE CASE 3,250,000 401 18X 5X 3X 1. 50 3.5 COST 6.54 6.64 6.75 b.84 SAVINGS 2.02 4.00 6.73 10.24 2 LOW CONST COST 2,750,000 477. 18X 51 3X 1. 50 3.5 5.13 5.27 5.43 5.59 3.43 5.37 8.04 11. 49 3 HIGH CONST COST 3,750,000 351 18X 5X 31 1. 50 3.5 7.96 8.02 8.07 8.09 0.60 2.62 5.40 B.99 4 LOW INFLATION 3,250,000 401 18X 5X OX 1. 50 3.5 6.50 6.32 6.09 5.80 1.81 2.59 3.b5 4.85 5 HIGH INFLATION 3,250,000 401 18X 5X 6X 1. 50 3.5 6.58 7.03 7.64 8.47 2.22 5.61 10.84 18.57 6 TIER OF 1.0 3,250,000 401 18X 51 3X 1. 00 3.5 5.57 5.73 5.91 6.09 2.99 4.91 7.57 10.99 7 TIER OF 1.85 3,250,000 40X 18X 5X 3X 1. 85 3.5 7.22 7.28 7.33 7.35 1.33 3.36 b.14 9.73 8 LOll GENERATION 3,250,000 401 18X 5X 3X 1. 50 2.5 8.74 8.82 8.89 8.93 -0.18 1. 82 4.58 8.15 9 HIGH GENERATION 3,250,000 401 18X 5X 3X 1. 50 4.5 5.32 5.43 5.56 5.68 3.24 5.21 7.92 11.40 10 LOll INTEREST 3,250,000 401 181 2X 3X 1. 50 3.5 4.79 4.94 5.14 5.38 3.77 5.70 8.33 11.70 11 HIGH INTEREST 3,250,000 401 18X 101 3X 1. 50 3.5 9.47 9.61 9.74 9.78 -0.91 1. 03 3.74 7.30 12 LOll FUEL COST 3,250,000 40% 18X 5X 3X 1. 50 3.5 6.54 6.64 6.75 6.84 1.72 2.60 3.96 5.58 13 HIGH FUEL COST 3,250,000 40X 18X 51 3X 1. 50 3.5 6.54 6.64 6.75 b.84 2.02 4.57 8.43 13.75 14 BEST POSS CASE 2,500,000 521 48X 5X 3X 1. 50 3.5 2.81 3.07 3.38 3.74 5.75 7.57 10.09 13.34 15 WORST CASE 3,250,000 OX 18X 10.0X 31 1. 50 3.5 16.25 16.27 16.19 15.91 -7.69 -5.63 -2.72 1.17 16 WORST PROB CASE 3,250,000 OX 30X 10.0X 3X 1. 00 3.5 11.33 11.46 11.56 11.56 -2. i7 -0.82 1. 91 5.52 Figure V-40 f;~ HUMPBAC~ CREEK HYDRO--SUMMARV OF ALTERNATIVE FINANCING METHODS CASE DESCRiPTION CONS TRUCTI ON STATE eEC INTEREST INFLATION HYDRO GEN KWH AVERAGE RETAIL RATE IN CENTS PER KWH COST EQUITY EQU ITY RATE RATE TIER MILLIONS 1987 1992 1997 2002 BASE CASE 3.250,000 40% 18i: 5% 31. 1. 50 3.5 WO/HYDRO 19.24 22.39 25. 10 28.'10 IiI/HYDRD 18.90 21. 85 24.31 27.83 2 LOW [ONST COST 2,750,000 m; 18% 51. 3% 1. 50 3.5 i/O/HYDRO 19.24 22.39 25.10 28.90 II/HYDRO 18.59 21. 47 23.75 27.16 3 HIGH CONST C051 3,750,000 35;; 181. 51. 3% 1.50 3.5 iIIO/HYDRO 19.24 22.39 25.10 28.90 W/HYDRO 19.17 22.05 24.48 27.97 4 LOW INFLATION 3,250,000 40i. 18% 51. 0% 1. 50 3.5 liD/HYDRO IB.92 19.60 19.64 19.99 II/HYDRO 18.56 19.21 19.18 19.46 5 HIGH INFLATION 3,250,000 407-18:4 51. 6:4 1. 50 3.5 liD/HYDRO 19.66 25.74 32.47 42.70 ill/HYDRO 19.24 24.92 31.13 40.69 6 TIER OF 1. (I 3,250,000 40% 18:4 5% 31. 1. 00 3.5 NO/HYDRO 19.24 22.39 25.10 28.90 II/HYDRO 18.73 21.72 24.20 27.75 7 TIER OF l.85 3,250,000 401. 181. 5% 31 1. 85 3.5 NO/HYDRO 19.24 22.39 25.10 28.90 ill/HYDRO 19.03 21. 94 24.38 27.88 8 LOW GENERATION 3,250,000 40X 18% 51. 31. 1. 50 2.5 liD/HYDRO 19.24 22.39 25.10 28.90 II/HYDRO 19.28 22.22 24.72 28.29 9 HIGH GENERATION 3,250,000 40X 18% 5% 3Y. 1. 50 4.5 i/O/HYDRO 19.24 22.39 25.10 28.90 II/HYDRO 18.52 21.48 23.90 27.37 10 LON INTEREST 3,250,000 401. 181. 2% 3X 1. 50 3.5 NO/HYDRO 19.24 22.39 25.10 28.90 II/HYDRO 18.59 21.61 24.11 27.67 11 HIGH INTEREST 3,250,000 401. 181. 10% 3X 1. 50 3.5 liD/HYDRO 19.24 22.39 25.10 28.90 II/HYDRO 19.43 22.27 24.67 28.14 12 LON FUEL COST 3,250,000 40% 181. 51. 31. 1. 50 3.5 NO/HYDRO 18.99 21.03 22.38 24.28 II/HYDRO 18.65 20.64 21.88 23.66 13 HIGH FUEL COST 3,250,000 40~ 18l 5% 31. 1. 50 3.5 NO/HYDRO 19.29 23.00 26.84 32.45 II/HYDRO 18.90 22.34 25.80 30.96 14 BEST POSS CASE 2,500,000 52l 481. 5% 31. 1. 50 3.5 NO/HYDRO 19.24 22.39 25.10 28.90 Ii/HYDRO 18.22 21.34 23.89 27.49 15 WORST CASE 3,250,000 OX 181. 10.0% 31 1. 50 3.5 IIO/HYDRO 19.24 22.39 25.10 28.90 W/HYDRO 20.72 23.26 25.50 28.84 16 NORST PROS CASE 3,250,000 0% 30'1. 10.0'1. 3~ 1. 00 3.5 NO/HYDRO 19.24 22.39 25.10 28.90 Ii/HYDRO 19.82 22.58 24.94 28.38 Figure V-41 VI. CONSTRUCTION PLAN A. INTRODUCTION Construction of the Humpback Creek hydro electric project will take place over two years beginning in early 1986 with project completion scheduled for the fall of 1987. For construction of this project, Cordova Electric Cooperative will act as the general contractor. Individual portions of the work will be subcontracted out or accomplished by local crews hired by CEC (force account crews). Figure VI-1 lists those portions of the project that will be contracted out. Figure VI-2 lists those portions that will be accomplished with locally hired crews. B. CONSTRUCTION SCHEDULE The construction phase of the project has been broken down into six separate areas of work effort: 1. Access roads and trails. 2. Bridge construction. 3. Right-of-way clearing. 4. Intake structure. 5. Pipeline. 6. Power plant and tailrace. 7. Connect to CEC Distribution System. Access Roads and Trails Two separate access areas will be used during construction of the project. The first area indicated as Trail #1 on the attached drawing (Figure VI-3) will be used for personnel access only. This trail will provide access to the intake structure and a major portion of the pipeline route. 102 Figure VI-l HUMPBACK CREEK LIST OF SUBCONTRACTED WORK 1. Rock clearing of east wall, including blasting and erection of safety railing. 2. Installation of rock anchors over Creek span (two on each side). 3. Footings and concrete work at power plant site, including concrete portions of tailrace. Also includes site excavation as needed. 4. Furnish and erect building at power plant site, including inside wall partitions and overhead crane. 5. Furnish and install turbines and generators, including governors, switchgear, shutoff valves and safety devices. 6. Provide labor, equipment and supplies to weld steel portions of pipe. 7. Provide helicopter time to haul pipe material to site. Back haul rings to selected site. (3,000 pound lift). 8. Provide helicopter time for personnel support during construction. Transport equipment as needed. (500 pound lift). 9. Provide poles and pole line hardware for overhead portion of transmission line. 10. Provide labor and materials to wire power plant building, includes high voltage wiring, station service wiring and control wiring. 11. Provide labor and materials for plplng and plumbing of power plant building, includes domestic hot and cold water, sanitary system within the building, and all piping, except water piping used to generate power. 12. Provide labor and materials to complete interior of building, includes painting, appliances, fixtures, bunks, etc. 13. Provide barge service to haul equipment and freight to and from Cordova to the site, includes loading and unloading as necessary. 14. Fabricate and install gravel separator at power plant, includes pressure water piping from end of pipeline to turbine inlet fittings. 15. Fabricate grates and steel tank for impoundment structure. 16. Purchase work boat. 17. Purchase tools. 18. Purchase station service transformer (25 KVA). Figure VI-2 HUMPBACK CREEK LIST OF FORCE ACCOUNT WORK 1. Right-of-way clearing west bank, includes removal of rings. 2. Remove rings on east bank. 3. Right-of-way clearing intersection to power plant, includes stump removal. 4. Right-of-way clearing of access trail to power plant site. 5. Right-of-way clearing of transmission line route. 6. Place and weld P.E. pipe along whole project. 7. Site clearance on power plant site. 8. Site clearance on staging areas. 9. Aerial cables across Creek to support pipe. 10. Construction of impoundment structure. 11. Construction of an overhead transmission line to connect to CEC's distribution system. 12. Construction of non-concrete portions of tailrace. NEW DAM-~ OLD DA M ----\-------\----1.....& / \ ,/ 250------- ~------------- CREEK CROSSING ~ -------------- i ~;::C' -"J' - - ___ ., \..... t..:. =-_==-::,1,--..,......,........, ....... ,- ORCA INLET Figure VI-3 I REVI SION N0·1 DA-= -! EX~LA.NA-I()N Right-of-Way Clearing for Trail #1 The right-of-way clearing will consist of removal of alder, small fir trees and undergrowth (mostly ferns and devils club) from an area approximately ten (10) feet wide beginning at the high water mark and extending to the base of the hill, a distance of approximately 500 feet. Other than removal of small stumps and large rocks, no surface disturbance is anticipated. This area appears to have a gravel surface and will heal rapidly when the trail is no longer used for access. Due to this stable gravel substrate, no erosion problems are anticipated during clearing or use of the trail. No grading or other surface disturbance of the trail is anticipated. The rapid rate of growth of alder trees in the area will ensure that no visible disturbance will remain in this portion of the trail after a couple of years. Alder and other organic material removed as part of the right-of-way clearing will be stacked on the beach above high tide line and burned at a time agreeable with the Department of Environmental Conservation. No standing trees larger than six inches in diameter will be removed during right-of-way clearing. Fallen trees in the area that will be cut include four trees six to twelve inches in diameter and one tree larger than twelve inches in diameter. Trail #1 will continue east up the slope to the Creek canyon. (See Figure VI-3). The only clearing anticipated for this area is the hand removal of portions of fallen logs that block the trail and undergrowth such as devils club. Slash and debris thus removed will be scattered adjacent to the trail for natural disposal by rotting. No 103 surface disturbance is anticipated as part of this right-of-way clearing. The predominant ground cover is primarily fern and moss covering a relatively stable soil and small gravel base. In some areas, rain run-off down gentle to moderate slopes has saturated the soil and created muddy areas. To the maximum extent possible, the access trail will be routed around these areas and where not possible, gravel will be hand placed in these less stable areas to stabilize the trail and minimize erosion. This portion of the trail up the slope has a total distance of approximately 500 feet. Once the trail reaches Humpback Creek Canyon, it will branch north and south with the south leg continuing over the crest of the hill to provide access to the site of the intake structure, old dam site, and pipeline route up stream of the existing cable crossing. The same clearing criteria as used on the previous portion of the pipeline will be used in this area although the elevation and topography is such that there will not be many, if any, soft areas. Several small gullies will be crossed, but these areas can be crossed by walking and will not require any fill, constructed walkways, or other ground disturbance. The portion of trail #1 that branches to the west will be used for access to portions of the pipeline to be constructed downstream from the cable crossing. (See Figure VI-3.) This trail will traverse an area called the intersection where the proposed pipeline alignment intersects with the old wood stave pipeline route that continues downhill to the existing pelton wheel 104 and generator. A collapsed building and debris situated in this area will be removed by stacking to allow it to dry and burning it in its current location. Ashes and non-combustible materials remaining will be buried at the site in accordance with provisions of a Department of Environmental Conservation authorization. With the speed at which moss and ferns grow over disturbed soil, it is anticipated that the area now covered by the collapsed building will completely heal itself within two years. Trail #2 will be on the north side of Humpback Creek and will extend from mean high water upstream along the Creek as shown on the attached drawing. This trail will be used during construction for the movement of heavy equipment and supplies and will be used for access and maintenance on a continuing basis. This area consists of alluvial gravel deposited along the stream which currently supports alders and small Sitka spruce and western hemlock. Undergrowth is sparse and consists primarily of moss. Within the Trail #2 right-of-way from the high tide mark of Orca Inlet to the edge of Humpback Creek, an approximate twelve (12) foot width will be cleared of all the trees and brush. No trees larger than six inches in diameter will be removed in this area. Trees and slash removed will be stockpiled on the gravel beach above high tide line near the start of the trail and burned at a time and manner acceptable to the Department of Environmental Conservation. 105 This trail will be used by construction equipment moving to and from the power plant and steel portions of the pipeline. Equipment to be used includes large tracked backhoe, wheeled loaders, boom trucks, concrete mixer truck, and miscell- aneous small equipment such as welders, air compressors, pumps, etc. This trail will be bladed flat by a tracked dozer. A 40-ton temporary gluelam bridge will be erected across the creek. This bridge will rest on gravel pads and will be full span thus not requiring any support within the stream bed. There will be a minimum of five feet clearance above the stream level. The bridge will be erected during the month of June. The bridge will remain in place for two years after completion of construction. At that time a decision will be made to remove the bridge or make it permanent. This decision will be based on the number of times it is necessary to visit the site on foot and with equipment. From the far side of Humpback Creek to the power plant site, the right-of-way clearing will entail removal of several trees ranging from one (1) inch to 15 inches in diameter, as well as the minimal amount of surface cover, such as devils club, fern, and small spruce and hemlock trees. Eight to ten trees six to twelve inches in diameter will be removed. Five trees twelve to eighteen inches in diameter and three trees over eighteen inches in diameter will be removed. All brush and trees removed will be stacked on site near the transmission line route and burned at a time and in a manner acceptable to the Department of Environmental Conservation. 106 C. TIME FRAME FOR ACCESS CLEARING It is difficult to determine exactly when right-of-way clearing can commence. The items that must be accomplished prior to right-of-way clearing include obtaining the necessary licenses and permits from agencies, including the Federal Regulatory Commission, as well as obtaining surveys, subsurface and water rights for the project. Weather or other circumstances can prevent access to the site until mid-June. For project scheduling purposes, we have assumbed that right-of-way clearing can commence on May 15, 1986. This work will be accomplished by crews hired from the local work force. D. PIPELINE RIGHT-OF-WAY CLEARING This project will include removal of rock, trees, brush and other organic matter in the area to be used for the pipeline. Since the pipeline will simply rest on the ground surface for most of its alignment, minimal preparation of the surface is required. Right-of-way clearing for the pipeline will be broken into two separate areas. 107 The area upstream of the cable crossing will be cleared by a combination of construction work and force account work. CEC crews will enter this area as soon as possible in the spring to remove all of the existing iron rings from the old wood stave pipeline. The rings on this portion of the pipeline will be stacked in the area indicated on the attached drawing. They will be made available to the Eyak Corporation at this location. Portions of the rings from the old pipeline are buried under rock slides and will not be accessible to our crews. Where necessary, work crews will remove rock in the slide area along the alignment and dispose of it into the canyon of the upper reaches of Humpback Creek. The material to be removed in this area consist of rocks and cobble without any fine material. This rock disposal area is a considerable distance upstream from the salmon spawning area and well above the limits of fish access in the stream. Total rock to be removed in this area is between 20 and 40 cubic yards. Decomposed pieces of the wood stave pipeline that are not large enough or stable enough to remove, will likely be disposed of with the rock. Large chunks of wood that are sufficiently stable to be carried will be removed from the right-of-way to a site upstream and burned. It is estimated that only a small fraction of the wood stave pipeline debris will be sufficiently stable to remove. Once CEC crews have done the preliminary clearing, a contractor will clear the right-of-way to a width of six (6) feet. Right-of-way clearing will consist of removing the rock abutment, widening the existing area, removing loose rocks that may, 108 over time, weather and falloff the abutment, and building trestles as necessary to ensure a six (6) foot wide right-of-way for installation of the pipe. It is not possible at this time to estimate the amount of rock to be removed during this phase. The contractor will also be responsible for installing a safety rail on the Creek side of this area for personnel safety. No right-of-way clearing will be required between the base of the existing dam and the new intake structure. (See Pipeline Design details for a discussion of the means of running the pipeline up the face of the existing dam.) Downstream of the cable crossing, right-of-way clearing will be accomplished by CEC force account crews. Right-of-way clearing in this area consists of two distinct phases. Upstream of the intersection point, CEC crews will remove the existing iron rings and stable pieces of wood from the existing pipeline and will store them at the intersection in the area which currently has the collapsed building that will be burned under Access Right-of-way Clearing. In addition to ring removal, a considerable amount of rock removal will be accomplished. In this area much of the rock can be recovered and used elsewhere. The material to be removed in this area consist of rocks and cobble without any fine material. Total rock to be removed in this area is between 50 and 75 yards. Approximately 25 to 30 yards of this rock will be recovered and used in other areas. The rock that cannot be recovered will be disposed of in the canyon of Humpback Creek. This area is also a considerable distance above the salmon 109 spawning area, and well upstream from the limit of fish access. From the point of intersection to the new power plant site, right-of-way clearing will consist of removal of trees ranging from small spruce, hemlock, alder and blueberry bushes to large trees 15 to 20 inches in diameter. Approximately 15 trees between six and twelve inches in diameter will be removed, and between five and ten trees from twelve to eighteen inches in diameter will be removed. All brush and slash removed will be stacked near the right-of-way and burned. Large tree trunks will be segmented and allowed to decompose naturally. Ground disturbance will be limited to stump and root removal and a minor amount of surface gravel removal to make a bed for the pipeline. All stump and root removal in this area will be by hand. It should be noted that the pipeline will not be buried but will rest in a shallow depression in the ground along the pipeline right-of-way. Right-of-way clearing on the steep part of the hill just before the power plant will include removal of some large rocks and may entail a minor amount of blasting. Rock removal in this area will be between five and ten yards. Since this area is near the salmon spawning reaches of Humpback Creek, particular care will be taken to ensure that no rock, gravel, or organic matter is allowed to enter the Creek. Necessary blasting will also comply with the conditions and timing stipulated by Alaska Department of Fish and game Title 16 permit for activities near Humpback Creek. It is anticipated that right-of-way clearing will begin as soon as the snow is gone and should be accomplished within 110 three months. The majority of the work near the Creek will be accomplished early on in the season. See Figure VI-4 for a construction schedule for 1986. Three staging areas will be used for this project. One staging area will be just north of Humpback Creek near the barge off-loading area on Orca Inlet. This staging area will be used to store materials and supplies before being hauled to the project. The second staging area will be at the intersection point. This staging area will be used to store polyethylene-pipe and materials to be used for the overhead cable crossing. The third staging area will be in the vicinity of the intake structure and will consist of materials to be used in the intake structure, polyethylene pipe, and the gabion baskets before they are used. Materials will be moved from the barge off-loading area to staging areas #2 and #3 by helicopter. Minimal ground disturbance will be necessary in each of these staging areas since they are currently clear of all but small undergrowth. Materials will be transported from the City of Cordova staging area in Cordova to the project by non-powered barges. These barges will be taken in at high tide and left to rest on the bottom as the tides goes out. Planks will be used for off-loading equipment from these barges on to the beach and no surface disturbance below the high water mark is anticipated. 111 Intake Structure The intake structure will be constructed by force account crews hired by CEC. This structure will consist primarily of gabions, a steel tank, and necessary grates and screens to remove the rock and gravel from the water. The intake structure will be located in an area of deep, fast moving water where the depth of the gravel is not known. Railroad rails will be driven down into the gravel bed to support and restrain the gabions to be installed. This will prevent their washing out during high flow periods. Gravel for filling the gabions will be taken from the surface gravel behind the existing dam. Gravel will be extracted by hand. No mechanical equipment will be used for rock removal. Due to the large amount of gravel inlpounded behind the existing dam, large gravel for the gabions will be taken from the east side of the stream bed. This portion of the stream bed does not become wet except at maximum flows. Minimum railroad rail penetration will be five (5) feet. If bed rock is reached at a depth of less than five (5) feet, the area will be drilled, and reinforcing steel will be grouted in. The gabions will be filled with gravel taken from the site and will be set over the steel. The first level of gabions will be dug down approximately one and one-half (1~) feet into the gravel to provide additional lateral support. The gravel located below the gabion structures will be sealed with Bentonite or equivalent sealer. Equipment to be used during construction of the intake structure will be portable welders, air compressors and pile drivers. Spare fuel and lubricating oils will be stored on the hill above the site to prevent contamination of the stream in the event of a 112 spill or major storm resulting in unexpected high flows. Storage of spare fuel and lube oil will be minimal and will not exceed 50 gallons at any time. The location of fuel and lube oil storage is shown on Figure VI-3. Figure V-18, Sheet #3 contains a sketch of the intake structure. The steel tank will be flown in by helicopter and set in place after installation of the gabions. Construction will be such that there will be no altering of the stream flow while the gabions are being installed. Gravel water diversion dams may be temporarily constructed, and these will be removed after the intake structure is complete. The temperature of the water in the stream will be between 35°F and 45°F. This will pose serious productivity problems for the crews working in the water on the gabions. It is probable that CEC will have to provide wet or dry suits for the crews. It may also be possible to span the Creek at the point of the intake structure with 30 foot long gluelam beams. This will provide a working platform and these beams could be raised or removed during high flow periods. The intake structure will have a concrete face. Cement will be flown in by helicopter and mixed with on-site sand and gravel. Gravel will be obtained by screening operations within the flood plain but no washing of this gravel will occur. The concrete will be poured during low stream flow periods although the purpose of the concrete is to provide protection for the gabions and is not structurally part of the intake structure. 113 E. PIPELINE The pipeline will be constructed by our own crews. A thermal plastic welding machine will be leased for the two months estimated for pulling of the pipe. The welding machine makes use of a butt welding process whereby the pipe is pulled through the welding machine and the welding machine remains stationary. The welding machine would first be placed at the top of the existing dam, and the polyethylene pipe would be pulled to the new intake structure. Large rollers will be necessary to prevent kinking of the pipe as the polyethylene pipe is pulled around the corner between the old dam and the intake structure. As discussed in the previous section, three alterna- tives are being evaluated to secure the pipe during high flow periods. A final decision among the three options will be made during detailed engineering. See Figure V-19 for a detail of the pipe and gabions for one of the proposed alternatives. Since the pipe will be installed parallel to the stream flow scouring action will be minimized. Location of the pipe near the east bank of the stream above the old dam will keep it out of the main flow further reducing the tendency for scouring. See Figure V-18, Sheet #1 and #2 for preliminary pipeline alignment. The pipe would be laid on the northeast side of the existing gravel area above the old dam to provide better protection during high flow periods. The welder would then be relocated by helicopter to the base of the old dam and the polyethylene 114 pipe would be pulled to the cable crossing area. Elbows would be placed on the polyethylene pipe to allow the portion of the pipe that traverses the face of the dam to be installed by hand. For a discussion of the dam crossing, see Section VII F "Historical Considerations". The pipe welding machine would then be relocated by helicopter to the intersection point on the west side of Humpback Creek. From there the pipe would first be pulled to the south to the cable crossing point then north to the area where the steel pipe would begin. The steel pipe would be brought across the access road to the new power plant site on flat bed trucks and would be winched into position by hand assisted by the backhoe that would be on site for construction of the power plant. The steel pipe would be welded by hand in sections as necessary. Installing the pipe across Humpback Creek as shown in Figure V-18, Sheet #1 will involve winching cables across the Creek, securing them to rock anchors and using a winch to tension the cables. Premeasured clips would be hung from each of the two cables across the Creek. The length of these premeasured clips would be such that the polyethylene pipe would be horizontal when loaded with water. After the support clips are installed, polyethylene pipe would be pulled across the Creek utilizing the supports one pipe at a time. The use of polyethylene pipe reduces the need for thrust blocks. Concrete for thrust blocks that are required for the polyethylene pipe plus the steel pipe in the lower portions would be 115 mixed on-site above the old dam and transported as needed by helicopter. F. POWER PLANT Construction of the power plant would begin as soon as snow has left the site and permission is received from the Alaska Department of Fish and Game to install the temporary bridge. Power plant construction will continue over the two construction seasons. The portions of the building and heavy equipment would be transported to the site by barge from Cordova. The equipment will consist of a large tracked backhoe, a ten (10) yard cement mixing truck, and one or two semi-trailers of building materials, steel pipe and cement. The large tracked backhoe would have the advantage of being able to serve many purposes during construction of the building and tailrace. It would serve as a crane to lift portions of the building and steel pipe into place. The tracks will do less surface damage than a wheeled vehicle and the longer reach of the large backhoe will assist in installing the steel pipe portions of the pipeline. The backhoe will also be used to install the gravel pads for the bridge and the beams that make up the bridge to minimize instream activity. A spoil disposal area in the vicinity of the transmission line will be established for disposal of over burden and excess soil removed where the footings and tailrace are installed. See Figure V-27 for location of the spoil area. 116 The tailrace will consist of a concrete trough as shown in Figure V-27. Where the tailrace enters Humpback Creek, an energy absorbing structure will be built. The location where the tailrace enters Humpback Creek will be located as far upstream as possible. A steep cliff limits the distance upstream where water can be returned to Humpback Creek. The approximate location of the tailrace is shown in Figure V-27. The exact location where the tailrace enters the Creek as well as the physical design of the energy absorbing structure will be determined during the final engineering phase. We have contacted the National Marine Fishery Service and received some preliminary data from them on the design of the tailrace structure. Final design of the tailrace and energy absorbing structure will be furnished to the Alaska Department of Fish and Game for approval before construction. It is possible that during construction of the tailrace in the stream, a diversion berm will have to be constructed to contain silty water. This temporary berm will be constructed of larger in-stream boulders upstream of the tailrace structure and will be removed upon completion of the tailrace. The final design will incorporate a design system which will keep pink salmon from entering the tailrace. The National Marine Fisheries Service has provided preliminary information to assist in this design effort. The gravel for the gabions to be used in the tailrace energy absorbing structure will be obtained from the gravel bed on the north side of the stream plus larger boulders and rocks in the stream bed above the tailrace area. This is the area that 117 will be partially dewatered by construction of this hydro electric project. Although the design for this energy absorbing structure is not complete, it is anticipated that the structure will be made of gabions filled with rock from Humpback Creek. It will also be necessary to drive some railroad iron or reinforcing steel in the Creek bed underneath the gabions to provide support for them during high flow periods. As with the intake structure, if the depth of the gravel is less than five (5) feet, the railroad iron cannot be installed and reinforcing steel will be drilled and grouted to provide lateral support for the gabions. Preliminary estimates show the requirement for approximately 50 yards of concrete for power plant footings, generator support and tailrace. Gravel for this concrete will be taken from gravel banks located away from Humpback Creek. During the spring of 1986 tests will be made of potential gravel sites and the selection of the final gravel borrow area will be coordinated with Alaska Department of Fish and Game. The gravel borrow area will be removed from Humpback Creek so that there will be no adverse affect on the salmon resource of Humpback Creek. The gravel will be taken in such a manner as to minimize disturbance to the stream and the borrow area will be returned to a smooth grade upon completion of the gravel removal efforts. Emergency living quarters will be provided in the power plant although it is not planned that anyone will live at the site on a regular basis. All maintenance will be performed on a "day work" 118 basis with employees going to the site in the morning and returning to town in the evening. Due to the possibility of storms or other unforeseen circumstances requiring overnight accommodations, a small bunk room will be built. Bathroom facilities will be furnished by a chemical toilet and a sink and stove will be installed to allow washing and minimal cooking. Gray water from the sink will be stored in a 100 gallon holding tank inside the building. This gray water will be transported to Cordova in 55 gallon drums on an "as needed" basis. It is anticipated that the overnight facilities will be used less than five (5) days per year. G. TRANSMISSION LINE The transmission line construction will be overhead from the power plant to the north side of Humpback Creek. Construction will use the REA recommended construction standards for Protection of Large Birds (see Appendix C). The routing of the transmission line is shown on Figure V-28. The length of this transmission line is 1,000 feet. The overhead transmission line from the power plant to the water's edge will utilize relatively short spans of approximately 200 feet each. These short spans will prevent wind related line slaps and similar problems. The short spans also have proven effective in the heavy snow expected in this area. The right-of-way clearance for this overhead line will be 20 feet wide and all small brush will be removed from the right-of-way. Danger trees (trees outside the right-of-way which 119 will damage the transmission line if they fall over) will be removed for an additional 20 feet outside the right-of-way. This transmission line will cross an area vegetated primarily with moss, fern and gravel. The poles erected on either side of Humpback Creek will be guyed and have double dead ends so that a failure of a pole on either side of Humpback Creek would not take down the poles on the bank of Humpback Creek. Pole spacing will be adjusted so that no pole is located within 40 feet of the bank of Humpback Creek. The backhoe on site for construction of the power plant will be used to dig the holes. The poles will be erected by CEC line crews. Power generation will be at 12,470 volts so that no step-up transformer will be necessary. Secondary voltage (120/240) will be provided by an REA approved pad mount transformer during construction. A dry transformer will be installed for permanent power. Construction crews will be expected to return to Cordova from the work site each evening. There are no plans for any overnight work. Each day the returning crews will carry out all garbage accumulated during the day so that there will be no storage of putrescible materials. During the day the garbage will be stored in metal containers. Sanitary facilities will be provided by three portable outhouses; disposal of septic materials will be in accordance with Department of Environmental Conservation requirements. 120 Before working on this project each employee will be given an indoctrination course explaining safety precautions to be taken on the job, particularly relating to any potential bear problems. Non-supervisory employees working on this project will not be allowed to carry weapons. 121 Key IIII = CEC Hired Laborers \\\\ = Contractor : : :: = CEC Line Crew 1986 CONSTRUCTION SCHEDULE Figure VI-4 Sheet #1 May June July August September October 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 1 8 15 22 29 6 23 20 27 Clear Access Trail North Bank Construct Bridge Abutments Build Bridge Clear Access Trail Rock Clearing East Notch Right-of-way Clearing West Side Right-of-way Clearing New Pipeline Route Rock Excavation East Notch Bail Gravel for Concrete Excavation for Foundations And Tailrace IIII \\\\\\\\ \\\\ IIIIIII IIII IIIIIIII IIIIIIIIIII \\\\\\\\\\\\\\\ \\\\ \\\\\\\ Key Figure VI-4 Sheet #2 IIII = CEC Hired Laborers \\\\ = Contractor 1986 Construction Schedule (Continued) : I : I = CEC Line Crew Form and Pour Foundation And Tailrace Build Intake Structure Build Tailrace Gabian Structure in Creek Install Sectionalizer At Orca Build Pole Line At Humpback Creek Install In-Water Line To Town Install Service At Humpback Creek May June July August September 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 1 8 15 22 29 \\\\\\\\\\\\\\\\\\\\\\\\\ IIIIIIIIIIIIIIIIIIIIII 111111111111111/11111 I I I I I I I II I I I I I I " I I I I I II I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I October 6 23 20 27 VII. ENVIRONMENTAL ANALYSIS AND REA BORROWER'S ENVIRONMENTAL REPORT This portion of the report is based on the 1980 Draft Coordination Act Report submitted to Alaska District U.S. Army Corps of Engineers by the U.S. Fish and Wildlife Service. A. VEGETATIVE RESOURCES The primary vegetative type in the project area is a coastal western hemlock-Sitka spruce forest. A narrow band of riparian species occupies the Humpback Creek floodplain and marine flora typical of Prince William Sound inhabit the terminus of the Humpback Creek delta where it enters Orca Inlet. The western hemlock-Sitka spruce vegetation type is well represented. Sitka spruce and western hemlock are the dominant members of the community. Blueberries, devilsclub, and several species of ericaceous shrubs make up the understory. Because of the high rainfall and resulting high humidity, mosses grow in great profusion on the ground, on fallen logs, and on the lower branches of trees, as well as in forest openings. Alders and willows occupy a narrow band along the stream channel primarily near the mouth and above the canyon area. The creek has formed a small gravel delta into Orca Inlet. A portion of the delta is being colonized by willows, grasses and forbs. The rest is barren. The intertidal and subtidal areas off the delta appear to be quite productive in terms of marine flora. Rockweed, 122 sea lettuce, wrack, and a species of red algae are all abundant. B. FISHERIES RESOURCES Prince William Sound pink salmon stocks are particularly adapted to heavy use of the intertidal zone and Humpback Creek is no exception. Pink runs typically display an even-odd year cyclicity and those stocks returning to Humpback Creek tend to dominate on odd years. Spawning activity usually takes place from early July through early September and peaks during late July to early August. Escapement counts conducted by the Alaska Department of Fish and Game are shown in the following table. Dolly Varden are found in lower Humpback Creek and are probably seasonally attracted following migrating pink salmon. Sport fishing effort for pinks and Dolly Varden is low. Pink Salmon Escapement Counts Humpback Creek 1960-1985 Year 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 No. 2,390 16,010 7,200 9,860 3,560 1,200 310 420 550 4,730 540 8,230 1,740 Year 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 No. 2,510 70 6,800 840 13,920 360 11,940 2,140 5,340 1,860 13,540 20,560 26,800 As previously mentioned, Humpback Creek flows into a canyon approximately one mile before it enters Orca Inlet. The canyon area is estimated to be between 0.5 to 0.75 miles long. A series of three 123 old log dams, constructed for power generation in the early 1900's are situated approximately 0.25 miles apart beginning with where the creek first enters the canyon. The uppermost dam is about 12 feet high and is situated where the creek enters the canyon. Downstream about 0.25 miles in the steepest part of the canyon is another small dam about 10 to 12 feet high. About 0.25 miles below the second dam is a large dam about 80 to 100 feet high. The big dam was constructed of log cribbing and is slowly deteriorating. The Alaska Department of Fish and Game estimates that 50,000 to 60,000 cubic yards of gravel are backed up behind the structure. During periods of high flow, gravel movement throughout the stream scours the lower creek channel decr.easing the survival of pink salmon eggs. The big dam does not block salmon migration. Natural velocity barriers occur downstream. However, if the dam collapses, a tremendous amount of gravel would be released and it could take several years for the creek to flush all the gravel out of the system. Pink salmon eggs in the lower end of the creek could be physically damaged or buried limiting the adult returns in future years until the lower end of the creek and the expanded delta are eventually stabilized. The spawning escapement in Humpback Creek during 1985 approximated 26,800 pink salmon. Approximately 200 fish of this salmon return utilized the area above the proposed power plant and tailrace, and the portion of the Creek in which they spawned would be partially dewatered by this project. Since this project is based on 124 utilizing stream flows from zero to 85 cfs, the spawning area utilized by these salmon would be dewatered over a major portion of the year, particularly during the critical winter months. The habitat in this area has been classified as marginal by the Alaska Department of Fish and Game. During the winter of 1985-1986, Cordova Electric Cooperative will test the gravel in the spawning area above the power plant tailrace to determine the winter survival of eggs and fry. If there is no survival in this area, it will not be necessary for Cordova Electric Cooperative to take any mitigation measures for the dewatering of this portion of the stream. If fry survival is found in the area to be dewatered, then Cordova Electric Coope~ative will make mitigation efforts acceptable to the Alaska Department of Fish and Game. Cordova Electric Cooperative, the Alaska Department of Fish and Game and the Prince William Sound Aquaculture Corporation have met to discuss possible range of mitigation efforts for the salmon impact in Humpback Creek. Several areas of mitigation were investigated including: 1) Stocking a barren stream in Prince William Sound selected by the Alaska Department of Fish and Game with pink salmon fry produced by Prince William Sound Aquaculture Corporation. This stream stocking would be accomplished for two years (a complete cycle of one odd year and one even year). 2) Stocking streams in Prince William Sound that have an even/odd year return disparity. Many 125 streams in Prince William Sound have good pink salmon returns on either the odd or even years, but the other years have little or no return. These streams have suitable habitat as evidenced by the existing even or odd year runs in these streams, but for unknown reasons part of the run is missing. The Alaska Department of Fish and Game would identify two such streams, one having no odd year returns and the other having no even year returns. Cordova Electric Cooperative would then contract with the Prince William Sound Aquaculture Corporation to stock these streams for two complete cycles for each stream. 3) Performing a fisheries rehabilitation project in the eastern Prince William Sound area. This project could include such areas as stream bank stabilization, stream diversion work or other efforts to improve the habitat for a specific area. Previous efforts by the City of Cordova, while successful, have not shown the expected level of habitat improvement and salmon runs compared with the funds invested. 4) Performing a fishery rehabilitation project to install a silver salmon rearing area north of the CEC power plant. The selected area is approximately 7/10 of a mile from Cordova Electric's source of heat and would require an investment of over $300,000.00 for the hot water system for the rearing area. This is not considered to be an economical alternative. 126 5) Sponsoring a silver salmon smolt imprinting program in the Cordova small boat harbor to improve the silver salmon return for the Cordova Silver Salmon Derby. Cost estimates for this by Prince William Sound Aquaculture Corporation indicate a cost of approximately ten times a pink salmon stocking project. Costs for this program could range upward of $50,000.00 per year over a four year period and would not be economically feasible. In discussions with the Alaska Department of Fish and Game and the Prince William Sound Aquaculture Corporation, Option II has tentatively been identified as a feasible option. Budgetary estimates of $5,000.00 per year for four years have been established and are included in the cost estimates. Information on the occurrence of fish species in Humpback Creek above the canyon area is not well documented. The Alaska Department of Fish and Game states that fish are probably absent. Information provided by CH2M Hill indicates that winter flows in Humpback Creek can get as low as two cubic feet per second (cfs) and have been known to cease. This makes the presence of a resident fish population highly unlikely. On June 6, 1980, biologists sampled upper Humpback Creek with minnow traps and traditional sport fishing gear. No fish were captured. The creek was visually estimated to be flowing over 150 cfs. Abundant stream bank cover and a favorable pool-riffle ratio would make the upper stretch a good Dolly Varden stream if the winter flows did not disappear. Casual observations by biologists 127 during August 1985 did not observe any fish presence above Dam #3. C. MAMMAL RESOURCES Game species present in Humpback Creek include Sitka black-tailed deer, brown bear, black bear, and mountain goat. Mountain goats are usually found above the timberline inhabiting the most rugged, inaccessible terrain. On June 6, 1980, no goats were observed in Humpback Creek during a brief helicopter flight although suitable habitat is available. A 1980 Alaska Fish and Game estimate stated that no more than 20 goats were found in the Humpback Creek and Power Creek drainages at anyone time. Goats use the ridges overlooking Humpback Creek, but their distribution varies greatly by season. For purposes of this report, goat habitat in Humpback Creek is considered to be above the 500 foot contour line. Since the highest elevation used in this project is just over 200 feet, no goat impact is anticipated. Black bear prefer forested habitat, but are commonly seen foraging in open meadows, tidal flats, brush fields, and alpine areas. Although no black bear were seen during 1985 field investigations, Humpback Creek contains excellent bear habitat. Many bear signs can be seen in the area. No critical denning habitat for black bear has been identified in the Humpback Creek drainage. The Alaska Department of Fish and Game has documented that the salmon spawning area on lower Humpback Creek contains seasonal concentrations of 128 brown bear attracted by the readily available food source. Clumps of brown bear hair were found in the brush near the uppermost dam during field investigations by the Alaska Department of Fish and Game in 1980. Skeletal remains of pink salmon were found scattered on the bank along the spawning reach. Biologists assumed that the fish remains were evidence of brown bear use during the 1979 spawning season. No critical denning habitat has been identified for brown bear in Humpback Creek by the Alaska Department of Fish and Game. Their 1980 estimate stated that there were probably six brown bear using the drainage. Biologists encountered frequent evidence of Sitka black-tailed deer while traversing the area from above the canyon to the delta. Deer tracks were present in the sand along the creek above the canyon area and on the delta. Numerous tracks and pellet groups were observed around small bogs in the forest parallel to the creek. During the winter, deep snows force deer down to the beach fringe throughout Prince William Sound and when populations are high, almost all these fringe areas can become critical winter range. According to the Alaska Department of Fish and Game, mainland deer populations in Prince William Sound are low and the eastern shore of Orca Inlet is not considered to be an important winter range. Even though direct documentation is lacking, there is enough evidence of deer in the Humpback Creek area to suggest that portions of the beach fringe on the eastern shore of Orca Inlet, including the Humpback Creek delta, may be winter range for a few animals. 129 D. BIRDS The Humpback Creek delta provides feeding and nesting habitat for waterfowl and shorebirds. During Alaska Department of Fish and Game's survey in 1980, twenty Canada geese were observed on the delta. Close investigation revealed that the geese were feeding on forbs growing on the higher, dry areas of the delta where permanent vegetation has become established. There was no evidence of goose nesting. Several species of shorebirds nest on the delta although not in great numbers. Species that were displaying protective behavior indicating that they had nests nearby were: two pair of spotted sandpipers, two pair of semi- palmated plovers, and one pair of black oyster- catchers. Other birds observed in the area were glaucous-winged gulls, mew gulls, black-legged kittiwakes, ravens, scoters, water pipits, harlequins, northern bald eagles, and savannah sparrows. Northern bald eagles are frequent visitors all along Orca Inlet. Undoubtedly they feed on spawning salmon in Humpback Creek. During 1980 field investigations, biologists used a helicopter to search the shores of Orca Inlet for several miles in either direction from the mouth of Humpback Creek and the lower five miles of Humpback Creek looking for bald eagle nests. None were located in spite of the fact that a dozen adult birds were seen in the area. Since 1980, several visits by the Alaska Department of Fish and Game, Fish and Wildlife Service and Cordova Electric Cooperative personnel as well as regular fish count overflights have failed to locate any eagle nests in the Humpback Creek drainage. 1985 130 reconnaissance along pipeline route, across Trail #1 and power plant site did not note any bald eagle nests. E. MARINE BIOTA Besides the abundance of seaweed, the intertidal and subtidal habitats off the delta appear to be productive in terms of marine organisms as well. Profuse amounts of barnacles cover all the exposed rocks and cobble. Mollusk shells windrowed by the surf are abundant as are mussels, horse, butter and littleneck clams, and cockles. In addition, sea otters were observed feeding a short distance offshore. F. CONSIDERATION OF IMPACT OF CONSTRUCTION ON HISTORICAL VALUES The proposed hydro electric development will not be near or have any impact on historical values of the pelton wheel and generator, buildings, and the pipe running down the hill from Humpback Creek to the pelton wheel. The pipe on the east and west banks of the Creek will be removed. The rings are the property of the Eyak Corporation and will be stored nearby for their eventual use. The remaining pipe from Humpback Creek to the old power plant is representative of the construction used throughout the project and is available to show the construction used in the areas removed. By the installation of the pipeline for the proposed hydro electric project, the historical use of the pipeline right-of-way on the east and west banks will be re-established. Rather than using wood stave pipeline as the original hydro project did, this project will utilize polyethylene pipe. 131 There will be no impact on Dams #1 and #2. The water level increase caused by the intake structure to be proposed will not significantly alter the level of water and will not have any effect on Dams #1 and #2. Dam #3 is representative of wood dam construction throughout Alaska. the Alaska Department of Natural Resources has provided a sample list of similar dams throughout the State. This list is included as Figure VII-I. The major historical impact will be in the area of Dam #3. The proposed pipeline must cross this area to connect the intake structure with the proposed power plant. A picture of Dam #3 is included as Figure VII-2 showing the settling on the dam, particularly on the right or west end. In order to keep the level of the pipe below the level of the intake structure, it will be necessary to cross Dam #3 at an elevation lower than the top of the dam on the right or east side. There are three alternatives available to cross this dam. Option #1 would be to tunnel around the dam. This tunnel would be constructed in the west abutment and would start approximately 50 feet upstream from the dam and would tunnel for a distance of 500 to 600 feet through the rock and emerge at the west end of the cable crossing. If this approach was utilized, it would not be necessary to disturb the existing pipeline on the east bank nor would it be necessary to cross the Creek on cables. An estimated construction cost of $800.00 to $1,000.00 per foot results in an estimated 132 construction cost of ~400,000.00 to $600,000.00 for this portion of the pipeline. There are considerable questions as to the suitability of the rock for tunnelling. It is possible that the rock is badly fractured and would not be suitable for tunnelling without the continued risk of collapse which could remove support for the west end of the dam and result in extensive damage to the existing dam. The second alternative would be to route the pipe over the west or right (facing upstream) edge of the dam. The elevation in this area is below the intake structure and no structural changes would be necessary in the dam. A cable would be stretched from the west abutment across the face of the dam down to the rock at the bottom of the east side of the dam. The polyethylene pipes would then be clamped to this cable. The cost of this portion of the construction would be approximately $150,000.00 to $250,000.00. While this alternative has a minimal structural impact on the dam, it would have a considerable visual impact. Even if the pipeline was painted the approximate color of the dam, there would be two large pipes that cross the face of the dam and would block the view of this dam. Figure VII-3 shows the relative size of the pipeline and the dam. The third alternative would be to route the proposed pipe through the dam near the east abutment three or four logs down from the top. This would be accomplished by removing a six-foot portion of one log to allow the pipe to come through the dam. The cost of this option is 133 estimated to be $25,000.00. While this would physically affect the structure, there would be a minimal visual impact as shown in Figure VII-4. Figures VII-5 through VII-7 show the method that would be used to support the dam structure where the log was removed. It is recommended that the third option be adopted, due to the minimal construction costs and the minimal visual impact on the dam. It is believed that with the pipe painted brown and routed to the left edge of the dam, it would not offer a significant impact to anyone desiring to view the dam. To protect the historical values in the area, a professional photographer will be employed by CEC to record on film the current condition of Dam #3 and the pipeline on the east and west bank that will be removed. This photographic history will also include photographs of the pipeline to be left in place and the pelton wheel, generator and buildings. Prior to photographing the pelton wheel, generator and buildings, brush will be removed and the area generally cleaned up so that adequate pictures can be obtained. The pictures thus taken along with a narrative description of each picture will be included in booklet form and copies will be provided to the Eyak Corporation, the Cordova Historical Society, Cordova Museum, the City of Cordova, the State Historical Preservation Officer, the Alaska State Museum and others identified as desiring copies. 134 Figure VII-8 shows the portions of the old hydro electric project and indicates those portions which will be affected by the proposed hydro electric development. 135 Figure VII-l WOOD CRIB DAMS IN ALASKA SIMILAR TO HUMPBACK CREEK Provided by Department of Natural Resources Crest Height Year Dam Name Dam No. (Feet) (Feet) Constructed Notes Humpback Creek #3 1000048 110 47 1953(?) Annex Lakes Dam 1000003 190 25 1915 (Juneau) In use for hydro production. Bettinger A 1000022 251 36 1959 (Kodiak) Drained for repairs. Pelican Creek 1000038 153 22 1941 (Pelican) In use for hydro production. Bettinger B 1000040 245 32 1959 (Kodiak) Drained. Nugget Creek 1000046 434 25 1916 Treadwell. Figure VII-2 Figure VII -3 Figure VII-4 , > .------. ----.--. -' ii, .. .... ~ L-----------------1 r; ~=-~~--.--.-=-~~~------=--.. ---.. --.. -..... --==~ 1'1---------1 - '. -_._--------- ""---STEEL BANDS - Le----32 ~/_--,'---32 :i'--I ~ 1---------------------- I~---CHANNEL /--THR.U BOLT ~11,).~i(.·; ------..::-~ L------------I.-------!: J-'7 _______ ---- fl-• I-----------~-----I IJ I 'f 1-------------J-" -.-'---... - ) F~ONT VIEW Figure VII-S DAM FACE CROSSI NG DE TAIL ~t=-------...l ~: Ii ·~~I,....~·---~~~~~-~~'--~ICO~DOVA ELECT~IC COOPER.AT I VE SCALE: (= 2/ \.II:: .... ~·rr HUMPBACKCf:\EEK HYDR,O P~OJECT DESIGNey: W.D.B. EXISTING WOOD-CRIB DAM DRAWING BY: ~F.ruR.K -------60 D ELBOW --", ..... I \ I \~ ____ ~~ \ I PO~TION , I '-_/ SIDEVIEW SECTION 88 DAM FACE C~OSSI NG Figure VII-6 CO~DOVA .ELECTRIC COOPE~ATIVE SCALE: (':: 21 HUMPBACK CREEK HYDJ30 PROJECT DESIGN BY: w.O.S, EXISTING WOOD-CRIB DAM D~AWING BY: G.F.T: .--------6'CHANNEL IRON ~-----8~X 1/4" TWO-PIECE STEEL I3ANOS ARpUND EACH LOG '---------3/4-NUT WITHIN CHANNEL ~ '---------~ TH F\U 130 L T SIDE VIEW SECTION AA DAM C~OSSING SUPPO~T STR,UCTUR.E Figure VII-7 CORDOVA ELECT81C COOPEJiATIVE SCALE: (= 2/ HUMPBACKCliEEK HYD~O Pf=(OJECT t-O-E-S-'G-N-B-Y-: -W-.O-.B-,-- EXISTING WOOD-C~IB DAM DJ?AWING BY.-GFI. NEW DAM-~ ~ OL D DA M -\----\----\--h.i_ ~-CREEK CROSSING ~ --------~----~------- 150------- ) CORDOVA ELECTRIC COOPEqATI HUMPE,:'CK r<, HYDRO PROJECT DES!GN BY: DRAWING BY, G,FTURI< ORCA INLET Figure VII-8 ~EVISION NO. DATE E XP1.ANATIO N . '1,' I~ 11 " VIII. SUMMARY AND CONCLUSIONS A. SUMMARY This project has reviewed the feasibility of constructing a hydro electric project on Humpback Creek. Three areas were considered: 1. Technical 2. Financial 3. Environmental 4. Economic Technical There are no major technical problems involved in the construction of Humpback Creek that could prevent the project from proceeding. All of the technology to be used is readily available, it is not "exotic" and the construction methods proposed have been used successfully in Cordova many times over the past years. Final engineering will optimize the design of the project. We are confident that the design put forth in this document will work and provide a viable project. We believe that the system proposed in this document can be improved upon. Financial The financial feasibility of this project is assured as long as there is State participation. A benefit-to-cost ratio above two was found for the base case and a benefit-to-cost ratio above one was seen for all cases. without State financial participation, the project has a benefit-to-cost ratio of exactly one, but the cost of electric energy in Cordova in the early years of the project rises significantly and thus the 136 project would not be acceptable to the members of the Cooperative. The State equity investment in this project is significantly less than the State investment in other hydro electric projects around Alaska. The direct savings in Power Cost Equalization payments to Cordova far exceed the State equity investment in the project, thus it has a positive benefit-to-cost ratio for the State of Alaska. The net present value of the benefits to the State of Alaska for the State equity investment is anticipated to be $2,100,000.00. Compared with the State equity investment in this project of $1.3 million, it shows a direct benefit-to-cost ratio of 1.63 for the State of Alaska. Thus it is anticipated that this project will more than return the State investment through lower future Power Cost Equalization payments. Environmental No major environmental concerns were identified which could halt the project. Mitigation of adverse environmental impacts may be required in two areas. First, the project will be built in the vicinity of an existing dam and an existing pipeline for a historic hydro electric site which was placed in operation in 1909. During the design phase it was decided to minimize the visual impact on the existing historical facilities. Mitigation of the adverse effects on the historical project is proposed. This mitigation will consist of hiring a professional photographer and creating a photographic history of the pipeline and dam facilities including portions of the old hydro project that will not be affected by this proposed development. The location of the existing dam and pipeline remnants is such that 137 they are not readily accessible to tourists or other visitors who might wish to view them. The photographic record combined with minimum visual impact on the structure will provide more detailed information to the people of Cordova on the old hydro electric facility that was constructed there. During 1985, 26,800 pink salmon returned to Humpback Creek to spawn. During reconnaissance surveys in 1985 approximately 200 of these salmon were observed in an area of the stream above the tailrace which will be partially dewatered by this project. The area used by these 200 fish is classified as marginal habitat. During the winter of 1985-1986, Cordova Electric Cooperative and the Alaska Department of Fish and Game will test this area for fry survival. If fry survival is found in this area, Cordova Electric Cooperative, in conjunction with the Alaska Department of Fish and Game and Prince William Sound Aquaculture Corpotation will undertake suitable mitigation measures ~hrough a pink salmon restocking program in other streams in Prince William Sound. Economic In determining the economic feasibility of the project, the project is investigated on a benefit-to-cost ratio without any subsidy. Subsidies come in many forms. If it is assumed that there will be no State participation in the project, then the benefit-to-cost ratio is exactly one. However, if the cost to the State of Alaska through the PCE Program is included, then the project has a positive benefit-to-cost ratio. For the most part, this project was evaluated with a 138 State equity investment of $1.3 million. As indicated under the financial comments, the State will receive a benefit-to-cost ratio of 1.63 for this investment. Therefore, it is not considered to be a subsidy per se~ Under all scenarios with State participation in the project (which we feel is reasonable considering the future benefits to the State), the benefit-to-cost ratio is above one. In most of the alternatives it was above two. Thus this project will provide significant savings in the future to the State of Alaska and the electric consumers of Cordova. B. LICENSE CONSIDERATIONS There are three avenues through which licensing of this project can be obtained. First is the full submission for a major licensed project, second is a small project exemption and the third is a determination of non-jurisdiction. These three options each have their desirable and undesirable qualities. The final decision on which of these three alternatives to pursue will be made based on the comments and concerns of the agencies in reply to this document. C. CONCLUSION The Humpback Creek hydro electric project can provide significantly reduced energy costs in Cordova far into the future. This project by itself does not solve all of the energy problems in Cordova, but is a necessary step in the right direction. It is feasible from all areas evaluated and it is recommended that construction of this project be undertaken as early as possible. 139 APPENDIX A PUBL1( DATA F1LE 85-46 STREAMFLO~ ESTIMATES FOR HUMPBACK CREEK, CORDOVA (C-5) QUADRANGLE, ALASKA by Stan Carrick and William E. Long Alaska Division of Geological & Geophysical Surveys September 1985 THIS REPORT HAS NOT BEEN READ BY THE DIRECTOR, HAS NOT RECEIVED OFFICIAL DGGS PUBLICATION STATUS, AND SHOULD NOT BE QUOTED AS SUCH. State of Alaska Department of Natural Resources Division of Geological and Geophysical Surveys P.O. Box 772116 Eagle River, Alaska 99577 Weather records for the Cordova area (AEIDC, 1985) are available for two stations, the Cordova airport, 10 mi southeast of town, and radio station KLAM, downtown. The airport averages 90 in. of precipitation a year, with September being the wettest month and January and June the driest months. In Cordova, yearly precipitation is almost double and averages 170 in., with October being the wettest month and June the driest month. The Humpback Creek watershed should receive as much or more precipitation as downtown Cordova because of orographic effects, but no site specific data are available for the creek. However, runoff for Humpback Creek during the water year 1975 was 152 in. (USGS, 1975), and this figure can be used to back-calculate basin precipitation. Precipitation and streamflow were about 10 percent above normal for the 1975 ~vater year; therefore, "normal" runoff might equal 137 in. a year. Add to runoff 20 in. of yearly evapotranspiration for Cordova (Patric and Black, 1968) and another 20 in. of estimated ground water, lake, and soil moisture losses, and that results in 177 in. of annual precipitation for the Humpback Creek watershed. This later precipitation estimate tends to confirm annual rain and snowfall amounts comparable with downtown Cordova, not the airport. RESULTS DGGS performed four tasks for this study after discussions with APA and Cordova Electric Cooperative staff. In addition, hydrologists Carrick and Long visited Humpback Creek on August 19, 1985. inspected the facilities sites, and took streamflow discharge measurements at three locations. The four tasks and findings follow. Humpback Creek Report - 2 Task 1: How representative is the discontinued USGS gaging station to the proposed intake weir site? The old USGS gage station is located 0.5 mi downstream of the intake site, with a drainage basin area of 4.37 sq mi compared to 4.25 sq mi for the intake site. A bedrock gorge consisting of metasedimentary and metamorphic rocks separates the USGS station from the intake site. The bedrock, though exhibiting tight crenulations and cleavage, does not appear highly fractured or permeable. The streambed ~t the intake site is made up of gravel and cobbles of undetermined thickness deposited behind an old log crib dam. This bed material is somewhat thicker than what normally might be the case because of sediment trapping by the dam. Downstream at the USGS station, the bed is composed of gravel, cobbles, some boulders, and bedrock. Weather patterns at the two locations should be similar, if not the same, and no significant tributaries exist between the intake and USGS sites. The above evidence suggests that streamflow at the proposed intake site and the USGS gaging station will be nearly the same. Some streamflow probably moves through the gravels behind the log crib dam, but reappears as surface flow immediately downstream of the structure. Discharge measurements taken on two different occasions this summer showed flows at both sites within 1-5 cfs of each other, i.e. discharges approximately equal considering allowable measurement limits of error. It is our opinion that streamflow data from the Humpback Creek Report - 3 ~iscontinued USGS gage station are representativE of flow conditions at the upstream intake weir site. Task 2~ How indicative of Humpback Creek long term streamflow conditions are the two years of USGS gaging records? The USGS (1985) has gaging data for three other small basins in the Cordova area: Power, Dick, and West Fork Olsen Bay Creeks. Streamflow in all three creeks was at record low levels, averaging 35 percent below normal, during water year 1974 (Oct. 73 -Sept. 74). The following water year 1975 (Oct. 74 -Sept. 75), streamflow was about typical, averaging 8 percent above normal. Cordova precipitation during the same periods was 35 percent below and 9 percent above normal, respectively. Based on the above information, we Cin say that USGS gaging records for water year 1974 would not be indicative of long term streamflow for Humpback Creek. But, area streamflow and precipitation during water year 1975 are so close to normal that it would be safe to conclude that USGS gaging data on Humpback Creek for the same year could be indicative of long term conditions. Pertinent streamflow data for Humpback Creek published by USGS (1975) for water year 1975 is as follows: Mean Annual Flow -48.9 cfs Maximum Daily Flow -416 cfs Peak Flow -638 cfs Winter Minimum Daily Flow - 2 cfs Summer Minimum Daily Flow -17 cfs Mean Annual Runoff -152 in. Humpback Creek Report - 4 If it is assumed that streamflow in Humpback Creek was, like the other creeks, about 8 percent above normal for 1975, then an adjusted mean annual flow would be 45 cfs. Breakup on the creek occurs in April, while freezeup probably takes place in November or December. Power generation would therefore be done from May to November when mean monthly flow would be approximately 58 to 68 cfs based on the USGS records. To complement and confirm the two years of published flow records, the USDA Forest Service Water Resources Atlas (1979) was used to estimate additional streamflow data. The Atlas provides numerous regression equations for use in estimating streamflow characteristics for ungaged watersheds in the Tongass and Chugach National Forests. Each equation contains easily obtained precipitation and physiographic variables that are significant for the particular streamflow characteristic. Each equation does have a certain amount of error unique to the calculation. For instance, average annual and some mean monthly flows have the lowest error, while low flow equations, especially winter low flow, have considerably greater error. Table 1 lists various calculated flow characteristics for Humpback Creek. Because precipitation is one of the most significant variables used in the equations, two different mean annual precipitation amounts were utilized to account for any uncertainties in rain and snowfall estimations. The 140 in. figure is derived from precipitation maps in the Atlas, and the 170 in. figure is taken from previously described sources in the background section of this report. Other variables used to make the flow calculations are as follows: Basin area -4.25 sq mi (from the intake site upstream) Proportion of basin above treeline -60 percent Humpback Creek Report - 5 Proportion of basin in main channel lakes - 1 percent Slope of main channel -146.8 ft/1000 ft Mean elevation of basin -1237 ft Miles south to Gulf of Alaska -12 mi Task 3: Construct a monthly streamflow hydrograph and flow duration curve to illustrate timing and magnitude of flows. The U.S. Forest Service Water Resources Atlas and USGS gaging records were used to derive the graphs. See figure 1 and 2. The total flow represented by the hydrograph agrees with published records, though the timing of the flows may not. In particular, June would typically have a higher flow than July, and the flows in September and October would generally be higher than depicted. Task 4: Calculate monthly and annual energy projections using measured and estimated flow figures. The energy or power available is taken from the formula: Energy (Kilowatt hours or KWH) = Discharge (cfs) X Head (ft) X Generation System Efficiency X .0847 (Conversion Factor) X 24 hours. Table 2 gives the results of the calculations using the following variables taken from Loeffler and Denig-Chakroff (1985): Head = 175 ft, Efficiency = 80 %. CONCLUSION Inspection of USGS gaging records for Humpback Creek and other Cordova area streams indicates that data from water year 1975 represents near normal Humpback Creek Report - 6 streamflow conditions. We believe that mean annual flow for the creek falls somewhere between 40 and 50 cfs, with discharge during the ice free generating months of May -November averaging 58 -68 cfs. The energy projections given in Table 2 are estim3tes that don't take into account the design limitations of the turbine/penstock system. However, if we use a seven month average flow of 58 cfs (a lower rate than the Water Resources Atlas estimates but equivalent to the lowest USGS figures) then the iotal annual energy available would be 3.53 million KWH, a conservative amount that, nonetheless, should not render the project hydrologically unfeasible at this time . .. REFERENCES CITED AEIDC (Arctic Environmental Information and Data Center), 1985, Climate Summaries for Cordova, Alaska: Personal Commun., 2 p. Loeffler, B., and Denig-Chakroff, D., 1985, DRAFT: Humpback Creek Reconnaissance Report: Alaska Power Authority, 21 p. Patric, J., and Black, P., 1968, Potential evapotranspiration and climate in Alaska by classification: PNW Forest and Range Experiment Station, USDA Forest Service Research Paper PNW-71, p. 8. USDA Forest Service, 1979, Water Resources Atlas for USDA Forest Service Region X, Juneau, Alaska: prepared by Ott Water Engineers, Redding, California, 7 p, ~ plus Appendix. U.S. Geological Survey" ~jater Resources Data, Alaska, Water Years 1974,1975: U.S. Geological Survey Water Data Report AK-74-1, AK-75-1. U.S.G.S, 1985, Streamflow summaries for Power, Dick, and West Fork Olsen Bay Creeks: computer printout from personal commun. with R.D. Lamke, U.S. Geological Survey, Anchorage, Alaska. Humpback Creek Report - 7 Table 1. Humpback Creek Flow Estimates. Based on U.S. Forest Service Water Resources Atlas Regression Equations. Mean Annual Flow Mean JAN Flow Mean FEB Flow Mean MAR Flow Mean APR Flow Mean MAY Flow Mean JUN Flow Mean JUL Flow Mean AUG Flow Mean SEP Flow Mean OCT Flow Mean NOV Flow Mean DEC F1 ow MAY -NOV Mean 7 Day 10 Year Winter Low Flow 7 Day 10 Year Summer Low Flow 30 Day 10 Year Winter Low Fl ow 30 Day 10 Year Summer Low Flow 5 Year Peak Flow 10 Year Peak Flow 100 Year Peak Flow Using 140 in. mean annual PPT ( cfs) 38.2 7.6 4.9 6.9 13.9 87.4 61.6 88.9 54.8 53.8 54.1 32.8 12.4 61.9 1.2 3.6 1.0 10.9 850.5 1002.7 1496.0 Humpback Creek Report - 8 Using 170 in. mean annual PPT (cfs) 47.9 10.4 7.6 9.5 15.7 109.7 85.7 106.8 68.2 65.8 68.8 4.3.1 18.3 78.3 1.5 4.7 1.3 13.8 1129.3 1315.9 1892.2 Table 2. Humpback Creek Energy ProJ2ctions. Using estimated discharges from Table 1. Mean Annual Production 140 in. Mean Annual PPT lrWH ) (based on mean annual flow) 3,968,066 JAN Production 67,050 FEB Production 39,046 MAR Production 60,874 APR Production 118,675 MAY Production 771,074 JUN Production 525,926 JUL Production 784,307 AUG Production 483,465 SEP Production 459,331 OCT Production 477 ,289 NOV Production 280,038 DEC Production 109,397 MAY-NOV Production (based on monthly figures) 3,769,876 * * * * * * Using USGS Gaging Records: Mean Annual Production (based on 45 cfs mean annua 1 fl ow) MAY-NOV Production (based on 63 cfs average) Humpback Creek Report - 9 170 in. Mean Annual (KWH) 4,975,664 91,752 60,561 83,812 134,043 967,812 731,686 942,227 601,684 561,785 606,978 367,977 161,449 4,768,680 4,674,424 KWH 3,836,869 KWH PPT F-igure 1 M U N I Ii l... ~ I Ii L /\ ii I l U 'ti II Y U II U u I ( 1\ I 11 120- 110~----4_----~-----+----~----~~----+-----~-----+------~----+_----~-----+-4l I' t~ I \ / \ 100 1---------II-----+----+------I---/+--4\r-,-+--/-#---+---L-,----1--__ I \ ,/ , 90~----+------r-----+----~-----~~--~~~---r~~-+----~------+_----4_----~ :;~ W J\ \. 8 Ol-------+-----+------+-----+--------t-: ,-+t--/ +-\--+--j---+-----+---\-\----+-\--+--, ----+--+---+---_____+____ ,'/ \( \ ~~ -~~ --\ 7 0 C/) -u -6 0 ~ 0 -u.. 5 0 ____ Ihl~;r'rt on 14[J I fl. ITI f~ n n ~l Il III 1;1 I Jl r f' (' I I' . _IlQ~;pd (1111711 III. m f' in 1 a II IllJ rl I p r (' (' I P • i !/ \ \ 40r-----+-----~----~-----+~IH/~~r-----+-----~----~----_4------~--~\-+~--~-~ :'. 30~----+_----~----~-----+~--~------+-----~----~----_4------~----~~ __ ~ ;' \(',- -""11-. ./ ...... ;: ~, 10~-----~~~~--~~~~-+----~r-----+_----~-----r----_;------r_----+_----~" --.,-----4 ....... --:V--\ 20 " \ \ ! I \ '\ \ .,,. o~----~----~----~----~----~~----~----~----~----~------~----~----~ Jan Feb Mar Apr May Jun Jut Aug Sep Oct Nov Oec Month w > a:: ::> 0 Z en 0 -(.) .... -< ~ , 0 -~ 0 ?; 0 ...J ~ . N CD .. :l 01 .- ~ 10U 90 60 70 60 50 40 30 u 0 0 0 0 0 0 0 200 100 90 80 70 60 50 40 30 20 10 9 8 7 6 5 4 3 2 1 ----~--- i _ J _______________ ~ --"-" f----------------------- -------------------._-------------- --f------------------------------- ---r----- i Based on 1LJO 1 rl . ~ me arl annu&J prf'C'lp. \ Based 170 In. ---on \ mean annuaJ preclp. ~\ "" ~ "-\.. '\' ,,, ~ " '" , .. """ , '" ""'" , ~ "" ~' " " " ~ I"-, ,'\ ~ \\ \, \. \' \', \ .,. " .. " o 1\ .. ,\t, APPENDIX B Gilkes Inc., P.o. Box 628, Seabrook, Texas 77586 October 21, 1985 Cordova Electric Co-op P. O. Box 20 Cordova, Alaska 99574 Attention: Mr. Doug Bechtel, General Manager GPI 1109 GILKES HUMPBACK CREEK HYDRO-ELECTRIC PROJECT Dear Mr. Bechtel: I refer to our letter of September 10 to Corry Hildenbrand of Alaska Electric Light & Power and to our meeting at waterpower '85. We have rerun the turbine outputs based on your latest penstock data. Our 28" Twin Jet High Capacity Turgo Impulse Turbine would have the following turbine output: Flow Head Efficiency Power (Turbine) (CFS) (FT) (%) BHP 5 174.9 68.7 68.3 10 174.8 78.8 156. 15 174.5 84. 250. 20 174.2 85.6 338. 25 173.8 86.4 426. 30 173.3 86.7 51lo 35 172.8 84.8 582. 40 172.2 85.5 668. 45 171.5 86. 753. 50 170.8 86.4 837. 55 170. 86.6 919. 60 169.1 86.5 995. 65 168.2 85.6 1061. 69.3 167.1 84.5 1110. Analyzing the turbine performance against the Flow Duration Curve shows the turbine is ideally sized. Using the conventional rule of selecting a turbine based on the 25% exceedance equivalent flow, confirms this observation. Continued ..... . Cordova Electric Co-op Humpback Creek Project Page Two october 21, 1985 We tru~t this information will meet your immediate require- ments. Should you require any fUrther details to assist you with this project, please do not hesitate to contact us. YOu~~ very truly, 2 c?- / N1~/~.?/ a ond J. ~ngelly, /' ~ce Presr5ent , RJP/djb APPENDIX C UNITED STATES DEPARTMENT OF AGRICULTURE Rural Electrification Administration March 9, 1979 REVISION OF REA BULLETIN 61-10 SUBJECT: Powerline Contacts by Eagles and Other Large Birds State and Federal agencies concerned with the protection of wildlife have requested that REA and its borrowers cooperate in reducing the loss of eagles and other large birds due to accidental electrocution by powerlines. Reports indicate that this problem exists primarily on distribution lines in localized areas of the western and southwestern states. However, it may exist to a lesser extent in other parts of the country. Because of greater clearances, transmission lines apparently do not present a significant threat to large birds. Since the bald eagle is in danger of extinction and other large birds may be in trouble also, we are asking you to cooperate to the fullest extent with state and Federal agencies to minimize accidental electro- cution of these birds. The attached bulletin discusses the causes of electrocution on distribution lines of REA standard designs and offers suggestions for modifying existing structures and constructing new lines in areas where eagle electrocutions have occurred. This bulletin has been revised to incorporate knowledge gained from research performed since the issuance of the original bulletin. Changes include revised interphase clearances. This bulletin replaces REA Bulletin 61-10 dated March 1972, and its supplements. o~ .,j ~stan Attachment UNITED STATES DEPARTMENT OF AGRICULTURE Rural Electrification Administration REA BULLETIN 61-10 March 9, 1979 Supersedes 3/27/72 SUBJECT: Powerline Contacts by Eagles and Other Large Birds I. Introduction: Power poles are often favorite perches for eagles and other large birds of prey, such as herons and pelicans. Occasionally, these birds are electrocuted by contact with the wiring devices on distribution line poles. Such contact also causes momentary or sustained outage of the power line. Both of these incidents are undesirable and may be minimized by relatively inexpensive modifications in distribution structure design and devices by the power supplier. Transmission line structures do not present a significant hazard to either small or large birds because of their greater interconductor clearances. II. The Problem: Powerline contacts by large raptors, such as eagles and red-tailed hawks, in general, are limited to localized areas where these birds hunt and nest. On any given system, it appears that remedial modification to frequently used power poles, within relatively short stretches of line, will greatly reduce the incidence of electrocution. It is probable that linemen and other operating personnel, after a short orientation, can readily identify the poles potentially most hazardous to birds. State and Federal wildlife authorities are available to conduct these orientations. REA borrowers with distribution lines in areas inhabited or frequented by bald and golden eagles are urged to patrol such lines prior to and at the end of the winter migratory season for any indications of past eagle electrocutions. Where dead birds are found at the base of power poles, remedial measures should be taken as described in this bulletin. The Bald Eagle Protection Act as amended (76 Stat. 1246; 86 Stat.- 1064; 16 U.S.C. 668) provides that where a bald or golden eagle is taken knowingly, or with wanton disregard for the Act, it is punishable by both civil and criminal penalties. "Take" includes the wounding, killing, molesting, or disturbing of one of the subject eagles. The Act further prohibits the transport of either live or dead bald or golden eagles. Consequently, any dead birds which are found should not be moved from the site without the specific authorization of the U. S. Fish and Wildlife Service or its designa- ted representative. Bulletin 61-10 Page 2 Managers of REA borrower systems with lines in areas frequented by eagles should consult with their attorney for other provisions of the Bald Eagle Protection Act. These systems should adopt an operational procedure to deal with raptor problems and make sure that all employees likely to find dead eagles or eagle eggs or nests are fully informed of the contents of the Act. III. Behavior of Large Birds of Prey: In general, predatory birds select for perching those poles that give them the best view of the habitat of their quarry. Therefore, the poles selected often are the most elevated poles in areas heavily populated by ground squirrels, other rodents, and game within reasonable flying distance of the nest, or within the wintering habitat of the raptor. Reports indicate that the birds are most likely to make contact between energized parts and ground wire on transformer poles. However, kills have occurred on single-phase and three-phase tangent poles as well. Favorite perch poles can be specifically determined by examining the area just below the pole for mutes or droppings of the birds and for their castings. Since birds of prey cannot digest the fur, feathers or bones of their quarry, they cast or disgorge these in the form of a pellet called a casting. These castings are as large as 1.5 inches in diameter and 5.0 inches in length. IV. Suggested Remedial Measures: The illustrations and the text that follow: (1) identify those details of standard construction that seem to contribute to eagle electrocution; and (2) offer suggestions for relatively inexpensive modifications which will make the various structures less hazardous to large birds. Only the most commonly used structures are discussed, but an understanding of how these structures can cause electrocution and how they may be modified for greater safety will permit similar corrections to other less commonly used structures that may be involved in eagle electrocution. In addition to the measures that follow, insulating extension links may be adcied to primary deadends. This will allow safe perching at the poletop or on the crossarm. Shock Ground Wire Figure I ---~- '4--4" <Jap " ~4 gap Fi <Jure 2 Bulletin 61-10 page 3 Single-Phase Poles ~.;ri thout Equipment This structure is potentially hazardous to large birds only when the pole grou~d wire is extended above the neutral as shown in Figure 1. In such a case, contact could be made simultaneously between the phase conductor and pole ground wire when the bird landed on the poletop. Actually, the poletop does not seem to be a geed perch because of the obstruction of the phase con- ductor. It is probable, therefore, that relatively few electrocutions will be experienced at these structures. When electrocuted birds have been found at the base of single-phase structures, it is recanmended that the ground wire be cut back to the neutral. If this is not feasible because of lightning considerations, the pole ground wire above the neutral should be double gapped as shown in Figure 2. A total of 8 inches of clear wood is believed to provide safety to large birds. On guyed structures, an insulating link may be used to isolate the upper portion of the guy from ground. Bulletin 61-10 Page 4 -'5"'i"'--- Covered Jumper Covered Bushings Figure 3 Fig ure 4 Shock Hazard Single-Phase Transformer Poles On single-phase poles with trans- formers or other equipment, raptors may land on the grounded equipment tank and contact energized parts such as jumpers, open fuse links or bushing terminals. (See Figure 3.) Depending on the type of transformer, it may be possible to cover all primary and secondary energized parts with which a bird is likely to make contact. The use of bird guards, transformers with internal fuses, isolated arresters, and insulated conductors for primary jumpers should provide effective protection. (See Figure 4.) However, in some cases, it may not be practical to cover all energized parts. Figure 5 Phase to Phase Contact Old C-I .. -. Old sin~I'-Q'm assemblies Figure 6 Braces Bulletin 61-10 Page 5 Where the nature of the equipment installation is such that it is not feasible to cover exposed energized parts, a perch similar to the one shown in Figure 5 could be installed. The perch, made of two-2f~ sections of treated 2" x 4" lumber or of used 3 5/8" x 4 5/B",crossarms, is mounted on a vertical B ft. crossarm. Eagles normally use such a perch in preference to the equipment tank. Alternatively, the transformer could be changed to a self-protecting type which would permit covering the primary energized parts as in Figure 4. TOP VIEW Three-Phase Tangent Construction Of all REA poles in common use, pre- 1962 REA standard construction is potentially the most hazardous to large birds because o its crossarm construction is particularly attractive as a perch. a its relatively flat construc- tion permits phase-to-phase contact as the bird approaches the crossarm. a the use of steel crossarm braces in close proximity to the pole ground wire facilitates phaSe- to-ground contact. Both of these types of contact are illustrated in Figure 6. Bulletin 61-10 Page 6 Old C-I FiCJur. 7 60" .. " p Old C-I FiQur. 8 wood braces 60" Connector) "p" Bird electrocutions may be minimized on pre-1962 three- phase structures by adding the perch to the pole as shown in Figure 5, or by changing the steel braces to wood braces as shown shown in Figure 7 and by cover- ing the center phase for about 60 inches on either side of the insulator as shown in Figure 8. Any material used for covering the conductor need provide for only momentary contacts. However, it should not have any seams, cracks, or openings on its top or sides through which a spark may jump. Several manufacturers pro- vide "tree guards" which seem adequate for this purpose. The guards may be restrained from moving into the span by the use of a connector or other obstruction. Where feasible and ground clearances permit, the crossarm may be lowered so that the center line of the cross- arm is 43 inches below the top of the pole as shown in Figure 10 instead of covering the center-phase conductor as mentioned above. New C-I Figure 9 Proposed three -phase line assembly for eagle areas. Other New Construction Bulletin 61-10 Page 7 Figure 9 shows the post-1962 REA standard three-phase construction. The use of wood braces and the lowered crossarm should make this structure relatively safe for large birds. However, in the event electrocutions are experienced, the center phase should be covered as described in the preceding paragraphs to avoid phase-to-phase contacts, or the cross- arm should be lowered even more as shown in Figure 10 if ground clearances permit. New Three-Phase Construction For new construction in areas frequented by eagles and other large birds, it is recommended that the crossarm and neutral conductor be lowered as shown in Figure 10. All other features of standard construction including positioning of the ground wire and the use of wood crossarm braces should be as shown in REA standard drawings. The borrower should maintain ground clearances as required by the National Electrical Safety Code or local regulations, which- ever is the more stringent. Single-phase construction should be in accordanr.e with Figure 2. Single-phase transformer installations should make use of transformers which permit covering of energized parts and jumpers. APPENDIX D REA AIC No. 428 411. 7 Cordova Electric Cooperative, Inc. , . CORDOVA ELECTRIC COOPERATIVE PC 16 -OlD Other Deductions Detail Schedule Test Year 1984 Appendix 2, Schedule A, Page 3 Description Amortization of Debt Discount and Expense Amortization of Loss from Disposal of Utility Plant Amount $ 606.00 3,056.76 $3,662.76 08·H6LH ALASKA PUBLIC UTILITIES COMMISSION DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT May 31, 1985 In reply refer to: Mr. W.O. Bechtel, General Manager Cordova Electric Cooperative, Inc. Cordova, Alaska 99574 Dear Mr. Bechtel: File: BILL SHEFFIELD, GOVERNOR 420 "L" STREET SUITE 100 ANCHORAGE, ALASKA 99501 (907) 276-6222 Finance PCE PC15.02D As Meera Kohler was notified by telephone on May 28, 1985, the Alaska Public Utilities Commission has approved a permanent Power Cost Equalization level of 9.98 cents/KWH for Cordova Electric' Cooperative, Inc. for bills rendered on or after May 25, 1985. The Commission reminds Cordova of its continuing obligation under the PCE legislation to provide its customers with the notice specified in AS 44.83.162(k) or a similar notice approved by the Alaska Power Authority. Should you have any questions regarding the contents of this letter, please feel free to contact Carolyn Evans of the Com- mission Staff. BY DIRECTION OF THE COMMISSION Enclosure Very truly yours, ALASKA PUBL~C UTI~TIES COMMISSION H. 7~/~~:~ .. ~ John B~ Far1eigh Executive Director APPENDIX E DISTRIBUTION LIST FOR DRAFT FEASIBILITY REPORT ON HUMPBACK CREEK HYDROELECTRIC PROJECT Mr. Kurt Dzinich Senior Advisor Senate Advisory Council Pouch V Juneau, AK 99811 Mr. Corry V. Hildenbrand Generation Engineer Alaska Electric Light & Power 134 N. Franklin Street Juneau, AK 99801 Mr. Kurt Nelson Cordova District Ranger U.S. Forest Service P.O. Box 280 Cordova, AK 99574 Mr. Richard Randall Alaska Dept. of Fish & Game P.O. Box 669 Cordova, AK 99574 Mr. Luke Borer Chief Executive Officer Eyak corporation P.O. Box 340 Cordova, AK 99574 Mr. Brent Petrie Director of Project Evaluation Alaska Power Authority 334 West 5th Avenue Anchorage, AK 99501 Mr. Remy Williams Alaska Power Authority 334 West 5th Avenue Anchorage, AK 99501 Mr. Gary J. Prokosch Dept. of Natural Resources Div. of Land & Water Mgmt. Pouch 7-005 Anchorage, AK 99510 Mr. Don McKay Alaska Dept. of Fish & Game Habitat Division 333 Raspberry Road Anchorage, AK 99502 Appendix E Mr. Brad Smith National Marine Fisheries Svc. 701 C Street, Box 43 Anchorage, AK 99513 Mr .. Leonard P. Corin U.S. Fish & Wildlife Service Sunshine Plaza, Suite 2B 411 West 4th Avenue Anchorage, AK 99501 Mr. Larry Wright National Park Service 2525 Gambell Anchorage, AK 99503 Ms. Patty Bielawski Project Coordinator Div. of Governmental Coord. 2600 Denali Street, Suite 700 Anchorage, AK 99503 Ms. Diana Rigg Dept. of Natural Resources Div. Parks & Recreation Pouch 7001 Anchorage, AK 99510 Mr. Don Rice Permits Section U.S. Army Corps of Engineers P.O. Box 898 Anchorage, AK 99506-0898 Mr. Dave Hutchens Executive Director A.R.E.C.A. 237 E. Fireweed Lane, suite 301 Anchorage, AK 99503 Mr. Bob Dryden Dryden & LaRue Consulting Engineers P.O. Box 111008 Anchorage, AK 99511-1008 Mr. Alan Yost REA Field Representative 13621 Venus Way Anchorage, AK 99515 Mr. Martin Seipel, Director Western States Division R.E.A.--U.S.D.A. Washington, D.C. 20250 Mr. Charles B. Gill, Governor National Rural Utilities Cooperative Finance Corp. 1115 30th Street, N.W. Washington, D.C. 20007 Mr. George Turk 77 West First Street Rexburg, ID 83440 Mr. Dalton DuLac, Supervisor Chugach National Forest U.S.D.A. Forest Service 201 E. 9th Avenue, Suite 206 Anchorage, AK 99501 Environmental Impact Review Off. Environmental Protection Agency Region X 1200 Sixth Avenue Seattle, WA 98101 Regional Environmental Officer Department of Interior P.O. Box 120 Anchorage, AK 99510 Director Bureau of Indian Affairs Department of Interior P.O. Box 3-8000 Juneau, AK 99802 State of Alaska Dept. of Environmental Conserve Div. of Water Programs Pouch 0 Juneau, AK 99811 State of Alaska Dept. of Natural Resources Division of Parks Pouch M Juneau, AK 99811 Coastal Program Coordinator Office of Coastal Management Pouch AP Juneau, AK 99801 Mr. Ronald O. Goqdrich, President Cordova Electric Cooperative, Inc. P.O. Box 2247 Cordova, AK 99574 Mr. Robert E. Cunningham, Vice President Cordova Electric Cooperative, Inc. P.O. Box 22 Cordova, AK 99574 Mr. John R. Wilson Secretary/Treasurer Cordova Electric Cooperative, Inc. P.O. Box 813 Cordova, AK 99574 Mr. Scott Novak~ Director Cordova Electric Cooperative, Inc. P.O. Box 157 Cordova, AK 99574 Ms. Carly Kritchen, Director Cordova Electric Cooperative, Inc. P.O. Box 1255 Cordova, AK 99574 Mr. Ron Bowen, Director Cordova Electric Cooperative, Inc. P.O. Box 161 Cordova, AK 99574 Mr. Harry Curran, Director Cordova Electric Cooperative, Inc. P.O. Box 35 Cordova, AK 99574 Cordova Times P.O. Box ~OO Cordova, AK 99574 Mr. Rick Leland City Manger City of Cordova P.O. Box 1210 Cordova, AK 99574 Mr. Roger Kemppel Kemppel, Huffman & Ginder Suite 200 225 E. Fireweed Lane Anchorage, AK 99503 KLAM Radio Station P.O. Box 60 Cordova, AK 99574 APPENDIX E HUMPBACK CREEK FEASIBILITY STUDY On each letter the paragraphs are numbered as necessary so the response can be related to the specific paragraph. DEPARTMENT OF FISH AND GAME COMMERCIAL FISHERIES DIVISION December 5, 1985 Mr. W. D. Bechtel, General Manager Cordova Electric Cooperative, Inc. P.O. Box 20 Cordova, Alaska 99574 Dear Doug, BILL SHEFFIELD, GOVERNOR P.O. BOX 669 CORDOVA, ALASKA 99574-0669 After reviewing the IIFisheries Resources ll section of the draft form of the Humpback Creek Hydro Electric Project Feasibility Report I have the following convnents: I. The section does not put sufficient emphasis on upstream pink salmon spawners, i.e. those fish that spawn above the twelve (12) foot high tide mark (A 12 foot high tide represents the average high tide in Prince William Sound). This upstream spawning is especially important in the odd-year cycle when, on the average, 50% of the spawners utilize spawning gravels above the average high tide level (Even year cycles average 25% upstream spawners). The point of all of the above is that a major spawning riffle exists next to the proposed hydro 5 ite. As 5 uch a 11 necessary efforts mus t be made to ensure year round waterflow be made available to this spawning area. II. The proposed mitigation efforts for the 200 fish observed above the aforementioned spawning riffle sound sufficient. II I. Proposed Hydro Site outfa"1 1 (Reference Fi gures V-26 and V-27) -- The gabion structure regulating the ultimate return of outfall water to the streambed should extend far enough upstream so as to ensure: 1) A 11 of the spawn; ng r'i ffl e) 1 oca ted next to and ups tream of the proposed hydro site, recei Vt the total amount of outfall water. w. D. Bechtel -2-December 5. 1985 Judging from the three (3) foot elevation differential between the top of the tailrace and stream level (Fig. V-26) and the streamside elevations shown on Figure V-27 this should be easily accomplished. 5i ncerel;,. (1fM~mc4 Michael L. McCurdy Research Project Leader Paragraph #1 LETTER FROM MIKE McCURDY ALASKA DEPARTf1ENT OF FISH & GAME DATED DECEMBER 5, 1985 The area from the power plant upstream has very and large boulders. This is a non-tidal area. of concerns about the maintenance of year round steep sides We are aWare water flows to the spawning area. During our preliminary investigations, the problem of water freezing within the tailrace was uncovered. We feel that it will not be possible to make the intake structure completely water tight; there will always be a certain amount of seepage around the intake structure. During low flow periods, such as the winter, it is possible that all of the water in the stream will leak around the intake structure. We have also called for the insta~lation of a six inch (6") insulated pipe from the power plant directly into Humpback Creek. This six inch (6") pipe will be buried at a depth so that it will not freeze and will be provided to ensure winter flows in the event that the tailrace freezes. We are aware of salmon spawning above the high water area. All potential spawn~ng areas will be protected whether above the mean high water mark or not. Paragraph #2 The tailrace structure will be designed to extend as far upstream as practical. The stream bed rises very rapidly in this area and it will be necessary to do a stream bed survey to determine how far upstream the tailrace can extend. Extending the tailrace also provides an additional energy absorbing mechanism to reduce any potential scouring from the project. We will submit the design of the proposed tailrace structure to the Alaska Department of Fish and Game for their review prior to finalizing it. We will continue our dialogue with the Alaska Department of Fish and Game and others interested in the fisheries aspect of this project. The pink salmon return to Humpback Creek is the major concern of the entire project. United States Department of the Interior IN REPL V REFER TO: WAES Western Alaska Ecological Services Sunshine Plaza, Suite 2B 411 W. 4th Ave. Anchorage, Alaska 99501 W. D. Bechtel» General Manager Cordova Electric Cooperative, Inc. P.O. Box 20 11 DEC f985 Cordova, Alaska 99574 Dear Mr. Bechtel: Re: Humpback Creek Hydroelectric Project Draft Feasibility Report. FERC 118889 The U.S. Fish and Wildlife Service (FWS) has reviewed the subject report dated November 1985. The proposed project would be an 850 kW facility utilizing run-of-the-river flows in Humpback Creek, near Cordova, Alaska. We found that the draft report adequately describes the proposal. If the project is constructed in the manner described, and with the mitigation proposed, adverse environmental impacts will be minimized to an acceptable level. The following comments are provided to facilitate your project planning. Specific Comments Page 107, first paragraph: We strongly recommend that work not be initiated prior to receipt of any necessary license and/or permits, and appropriation of sufficient funding. Although the proposed early clearing would result in only minor terrestrial impacts, without full assurance that the project will be constructed, even these impacts are unnecessary. Page 108, first paragraph: Although this stream reach does not provide salmon spawning habitat, disposal of rock and decomposing wood here would not be desirable. High flows would result in this material moving downstream, and thus into salmon spawning habitat. We recommend that no disposal occur in Humpback Creek. Page 117, first paragraph: Please provide this office with the preliminary plans for the tailrace and energy absorbing structure. When the final design plans are available, we would appreciate receiving them for review. Page 118, paragraph 3: It is stated that gravel would not be removed from Humpback Creek. The last sentence, however, refers to gravel removal methods from streams. Please clarify where and how gravel would be obtained. ® ® Page 121, first paragraph: The FWS developed a film on bear safety for the Terror Lake Hydroelectric Project. This film is available in a video cassette through the FWS Office of Public Affairs in Anchorage. For additional information you may contact Bob Olendorff, the FWS Audio/Video Production Officer~ at (907) 786-3309. Pages 122 through 131: We recommend the addition of a section specifically ~ddressing threatened or endangered species. The presence or absence of listed or proposed threatened or endangered species under the jurisdiction of the FWS and the National Marine Fisheries Service should be discussed. Historical and current harvest levels, in addition to subsistence use data, should be discussed in this portion of the report. Page 125, first paragraph: Please provide this office with the results of the salmon eggs and fry winter survival study. Page 127, second paragraph: The FWS concurs with the mitigation option selected. Page 138, second paragraph: Although the proposed mitigation is closely tied to the project's potential adverse impacts to pink salmon, the FWS has considered it as sufficient to mitigate for both in-kind adverse impacts (to pink salmon) and out-of-kind adverse impacts (to terrestrial resources). As such, we recommend that the mitigation proposed be pursued,irregardless of the results of the winter survival study. If the current study shows no winter survival, then the scope of the proposed mitigation could be reduced. Summary Comments Assuming that our specific comments will be adequately addressed in the final feasibility report and that the proposed mitigation will be adopted as a project feature, the FWS, in consideration of the area's fish and wildlife resources, finds the proposed project to be environmentally sound. If you wish to discuss these comments, please contact Leonard Corin of this field office (271-4575). Sincerely, Field Supervisor cc: FERC, Washington D.C. ADF&G, ADEC, NMFS, NPS, EPA, Anchorage, Alaska Paragraph #1 LETTER FROM ROBERT BOWKE U.S. DEPARTMENT OF THE INTERIOR DATED DECEMBER 11, 1985 We agree with the recommendation that right-of-way clearings not begin until the project is assured. In addition to the cost of clearing this area, there will be the significant cost of restoration should the project not go forward. Paragraph #2 We have reviewed means of keeping rock and wood from the stream bed. This can be minimized, but it will not be possible to totally prevent all rock and decomposing wood from entering the stream. We will take efforts to minimize the amount of rock disposed of in the creek bed, but there are areas, particularly on the east abutment, where the only alternative would be to remove the rock by helicopter which would be prohibitively expensive. We are aware of the concerns of the Department of the Interior in this area and will keep this in mind during design and construction of the project. Paragraph #3 We will provide the Department of the Interior with the design for the tailrace and energy absorbing structure for review prior to being finalized. paragraph #4 The study has been revised to make it clear that no gravel will be removed from Humpback Creek. As indicated on the drawings, a borrow bed will be established away from the stream bed in an area agreeable with Chugach Alaska Corporation, The Eyak Corporation, Alaska Department of Fish & Game and Cordova Electric Cooperative. Paragraph #5 Cordova Electric cooperative will make use of the film on bear safety developed by the Fish and Wildlife Service. Paragraph #6 As indicated in the study, much of the information on wildlife resources in the area was taken from work done by the Fish and Wildlife Service in 1980. At that time the Fish and Wildlife Service indicated that there were no endangered species in the area. This area has since been visited by numerous biologists and no indication of any change from the 1980 findings of the Fish and wildlife Service were observed. Unless there is some reason to believe that the habitat patterns of endangered species have changed since 1980, we believe that the study has adequately addressed the issue of threatened or endangered species. Letter from Robert Bowke Department of the Interior (Continued) paragraph #7 Specific harvest data is not available for Humpback Creek. Discussions with the Alaska Department of Fish and Game indicate light sport and subsistence use of this area. Commercial fishing is not allowed within several miles of Humpback Creek. It is estimated that the Prince William Sound commercial fishery catch is 70 percent of the Humpback Creek return. Paragraph #8 The Department of the Interior will be furnished a copy of the salmon egg and winter fry survival study to be accomplished this winter. Paragraph #9 The winter salmon egg and fry survival study will take into account the weather conditions which may have an effect on the current year which would not normally be found. A review of the salmon escapement for Humpback Creek indicates that there are occasional winters that are so severe that very little fry survival is evidenced. It then takes a number of years for the return to build back up to full strength. When the winter fry survival study is accomplished this winter, unique weather conditions will be considered prior to deciding what mitigation measures are required for this project. STREAMFLOW ESTIMATES FOR HUMPBACK CREEK. CORDOVA (C-5) QUADRANGLE, ALASKA A Report Submitted to the Alaska Power Authority by The State of Alaska Department of Natural Resources Division of Geological and Geophysical Surveys (DGGS) Water Resources Section September 25, 1985 INTRODUCTION Humpback Creek, a small stream five miles northeast of Cordova, Alaska, is being considered for a run-of-river hydroelectric project by the Cordova Electric Cooperative, Inc. and the Alaska Power Authority (APA). The Water Resources Section of DGGS was contracted by APA to analyze and estimate streamflow conditions for Humpback Creek; this information will be used to evaluate the hydrologic feasibility of the project and to aid in future SY$tem planning and design. BACKGROUND Humpback Creek flows four miles on a generally westward course to Orca Inlet northeast of Cordova. The drainage basin encompasses approximately 4.4 S4 mi, with a basin high elevation of nearly 3500 ft and a low elevation at sea level. Two small snowfields are located in the basin along with two small lakes. The U.S. Geological Survey gaged the creek 800 ft upstream of the mouth from October 1973 to September 1975 (U.S.G.S., 1974-75). These two years of record are the only published discharge data available, and are not necessarily indicative of long-term flow conditions. DEPART~IENT OF NATURAl, RESOURCES DIVISION OF PARKS AND OUTDOOR RECREATION December 13, 1985 Re: 1130-13 Subject: Feasibility Report: Humpback Creek W.D. Bechtel General Manager CEC P.O. Box 20 Cordova, A I aska '99574 Dear Mr. Bechtel: BiLL SHEFFIELD, GOVERNOR 225A CORDOVA STREET ANCHORAGE, ALASKA 99501 PHONE: (907) 276·2653 MAILING ADDRESS: POUCH 7001 ANCHORAGE, ALASKA 99510 Thank you for the subject report. You have put a lot of thought into consider- ation of the historic remains in the project area and we appreciate the work you have do,,~, However, determining whether something is significant and if there is to be an effect is a formal process set up in 36 CFR 800 that involves consultation between the agency (or its representative), this office, and the Advisory Council on Historic Preservation (ACHP). It is called the Section 106 process. In this case, the agency is FERC and CEC is its representative. As the representative, you must determine whether the resources are significant and under which criteria they are important (National Register criteria are enclosed). This information is submitted for our review and concurrance. If it is determined that the resource is el igible for the National Register, we then consult to determine the project1s effect. This part of the process involves you, as FERC's representative, deciding how the project wil I affect the resource and determining mitigation measures to alleviate those affects. This office reviews that decision, and if we concur, the whole package is sent to the ACHP for their review and concurrance. The information you supplied in the feasibi I ity report goes a long way towards the consultation process. It was also our understanding that the Chugach National Forest archaeologist, John Mattson was going to do part of the determination of el igibil ity. Perhaps we should meet with Dr. Mattson some- time this winter when you have an opportunity to be in Anchorage to discuss this Section 106 process. As we said, much of the information you have is appl icable to the process, it simply needs to be reworked and eventually submitted to the ACHP for their review. December 16, 1985 Page 2 If you have any questions or would I ike to set up a meeting, please contact Diana Rigg at 762-4139. Sincerely, Neil C. Johannsen Director Judith E. Bittner State Historic Preservation Officer cc: John Mattson, CNF Larry Wright, NPS enclosure DR:tls I. Criteria of Evaluation Th. quality of .ignificance in AMerican hi.tory. architecture. archaeology. and culture i. present in di.trict ••• ite •• building ••• tructure •• and object. that po •• e •• integrity of location. de.ign • • etting. mat.rial •• workman.hip. f.eling. and a •• ociation. and: A. th.t .re a •• ociated with event. that have m.d. a .ignific.nt contribution to the bro.d pattern. of our history: or 8. th.t are a •• ociated with the live. of per.on •• ignific.nt in our p •• t: or C. that embody the di~tinctive char.c- teri.tic. of a type. period. or ~ethod of con.truction. or th.t repre.ent the verk of a ma.t.r. or that po ••••• high .rti.tic valu ••• or th.t repre.ent a .ignificant and di.tingui.habl. entity who •• compon.nt. m.y lack individual di.tinction, or D. ~nat hav. yi.lded. or may b. likely to yi.ld. information important in pre- hi.tory or hi. tory. II. Crit.ri. Con.ideration. ordinarily c.met.ri ••• birthplac ••• or grav •• of hi.tor cal figure •• prop.rti •• owned by r.ligiou. in.titution. or u •• d tor religious purpo ••••• tructur •• th.t h.ve been moved from th.ir origin.l location •• r.con.tructed hi.- toric building •• properti •• prim.rily commem- or.tiv. in natur.. and prop.rti •• that have achi.ved .ignific.nc. within the pa.t fifty y.ar •• hall not b. con.ider.d .ligibl. for the NATIONAL REGISTER. Hov.v.r •• uch properti •• will qualify it th.y ar. int.gral part. of di.trict. th.t do ~ •• t the criteria or if they fall within the following categorie.: A. a religou. property deriving primary .ignificanc. from archit.ctur.l Or arti.tic dietinction Or hietoric.l illlportanc., Or •• • building or .tructure removed from it. original loc.tion but which i • • ignific.nt primarily for architectural valu •• or which i. the .urviving .truc- tur. mo.t importantly a •• ociat.d with a hi.toric per.on Or ev.nt: ~. C. • birthpl.ce Or grav. of a hi.torical figure of out.tanding importance if th.r. i. no appropri.te .it. or building dir.ctly a •• ociated with hi. productiv. lU., Or D. a cem.tery which derive. it. primary .ignificance fro/ll grav •• of p.r.on. of tranacend.nt importanc •• from ag., fro. di.tinctive d •• ign f.atur •• , or fro. a •• ociatioft vit~ hi.toric event., or E. • r.con.tructed building when .ccurately .xecut.d in a .uitable environm.nt and pre.ented in a dignified manner a. p.rt of a r •• toration ma.ter plan. and when no oth.r building or .tructur. with the .am. a •• ociation has .urvived, or F. a property primarily commemorative in intent if de.ign. ag •• tradition. or .ymbolic value ha. inve.ted it wi~h it. own hi.torical .ignificanc., or G. a property achi.ving .ignificanc. within the pa.t fifty year. if it i. of .xc.ption- al importance. LETTER FROM JUDITH E. BITTNER DEPARTMENT OF NATURAL RESOURCES DIVISION OF PARKS DATED DECEMBER 13, 1985 We have met twice with representatives of the State Historical Preservation Officer on this project. As can be inferred from the effort expended on the historical portion of this report, Cordova Electric Cooperative is particularly interested and concerned about the historical values of the old facilities. Of particular question is the suitability of the existing dam Humpback Creek #3 for inclusion in thE.; National Register of Historical Places or other appropri.3'. national register. The Eyak Corporation has not granted permission for us to visit the site with an archeologist or historian. For the purpose of this study, we have assumed that the existing dam is eligible for inclusion in the National Register. Mitigation efforts proposed were based on this assumption. Cordova Electric Cooperative is well aware of the historical values in the area and will take suitable efforts to minimize any adverse effect on these resources. Cordova Electric Cooeprative has relied on the survey done by r0~~ Reger of the U. S. Forest Service which has been included ., the study. This survey done by Mr. Reger is in the exact area where the power plant would be located. This is exactly the same area proposed by Alaska Department of Fish and Game for a fish hatchery. If any artifacts are revealed during construction, construction in the area will be immediately halted until the value of the artifacts can be determined and a mutually agreeable approach taken to preserve the archeological values in the area. United States Department of the Interior NATIONAL PARK SERVICE IN REPLY REFER TO: L7427 (ARO-ONR) ALASKA REGIONAL OFFICE 2525 GJmbel1 Street, Room 107 Anchorage, Alaski1 99503 -2892 Mr. W.D. Bechtel, General Manager Cordova Electric Cooperative, Inc. P.O. Box 20 Cordova, Alaska 99504 Dear Mr. Bechtel: 1 6 DEC 1985 As you have requested, we have reviewed the proposed Humpback Creek Hydroelectric Project Draft Preliminary Feasibility Report. We have the following carment. Cultural resources impacts are discussed, however there is no evidence of coordination with the state Historic preservation Officer (SHPO). Since we understand the project has received direction from the SHPO, the report should document the coordination and identify whether the proposed mitigative action is in accord with the SHPO's recammendations. Let us know if we can be of further assistance. Sincerely, $tt~ Acting Regiona: ;i~ec~rr cc: State Historic Preservation Officer LETTER FROM M. V. FINLEY U.S. DEPARTMENT OF THE INTERIOR NATIONAL PARK SERVICE DATED DECEMBER 16, 1985 This letter, as the previous letter, indicates concern over the historical values in the area. Representatives of the State Historical Preservation Office have been invited to all meetings and presentations organized by Cordova Electric Cooperative but have not been able to attend. On two occasions they have been invited to visit the site, but were unable to attend. We have met twice with them separately to review their concerns on this project. We have visited the site with an archeologist from the U.S. Forest Service. See comments to prior letter for a full discuss'ion of the historical aspects of this project. STATE OF ALASKA Division of Commercial Fisheries Mr. Doug Bechtel, General Manager Cordova Electrical Cooperative P.O. Box 20 Cordova, Alaska 99574 Dear Doug: December 19,1985 Thank you foc the opportunity to comment on the Feasibility Report for the proposed Humpback Creek hydroelectric project. Since we have had prior discussions with you relative to this project and members of our Cordova staff have participated in field trips to the proposed site I think your feasibility report incorporates most of our concerns over potential impacts on the fisheries resources in the area. To further assist you in refining your feasibility analysis for this project we have made a few comments directly on your review draft (attached). Although the specific construction guidelines and any possible mitigation measures would have to be worked out through the formal permit process I wanted to identify a few of the likely timing and construction constraints that we would eventually need to address and will hopefully be of assistance to you in developing work schedules. Of primary concern relative to fish is the possible loss of productive spawning area upstream of the tailrace along with the potential impact as a result of instream crossings, bridge construction, powerline construction, trails, etc. Until we are able to fUrther evaluate the potential survival of pink salmon fry in that portion of the stream dewatered by diverting the creek it will not be possible to recommend reasonable mitigation measures, if any, related to this loss. We have tentatively identified a potential loss of 200 pink salmon spawners and if a real loss can be verified by the presence oflive fry In this stretch of the stream, the most reasonable mitigation may simply involve a two year program of releasing pink salmon fry at another barren stream. With respect to any stream crossings, bridge construction, blasting or other activity that could directly or indirectly impact spawning fish or live eggs, the best time window for this would be during the May-June period with some flexibility in either direction depending on the observed timing of the ['un. It didn't impact on specify the likely size of any powder eggs and fish would need to at least be charges but identified. t hi s Any (i) close blasting would again ha~e the least possible impact during the May and June window during which most of the fry have outmigrated and the adults would not normally be present in the stream. Although there is no reservoir construction or any significant impoundment of water in this type of run of river hydro project, is there any likelihood of a significant change in water temperature as a result of the trip through the penstock and the plant? This isn't mentioned anyplace in the report and I would be interested in any information that may be available from evaluation of similar run of river proJects at other sites. I also notice that the upper' section of the penstock is to be supported by a portion of the creek t ha t has been built up by gra ve 1 deposited above one of the older' log crib dams. Since this design depends somewhat on the long term stability of tt)is dam have the engineers evaluated the i ntegr'i ty of t hi s structure? I also some of didn" t notice any reference to a likely need for gravel for the road and pad construction. If there is any need for local gr'avel has a potential SOUt'Cf> been identified? Most other comments relative to the fisheries resources have been made directly on your draft copy but the local area game biologist, Herman Griese, had the following comments relative to mammal and bird resour'ces: C. Hammal RtlSOUt'Ces A September 1985 goat survey revealed 20 goats proximate to Humpback Cr'eek and Powee Creek. There is a high likelihood that up to 30 goats may now b,~ using Humpback Cr'eek during the year. F'acilities and construction activities outlined in the report are unlikely to affect the goats; however improved access to the Humpback drainage to huntet's may reduce that number or displace them periodically during fall or winter. Facilities described in the report indicate personnel will reside at the site, Because brown and black bear will continue to use the salmon spawning in the ceeek, interaction between man and bears is inevitable. Every precaution should be taken to reduce conflicts, Those precautions include 1) fencing work areas to keep bears out, 2) not having on site garbage storage and 3) continually removing brush near work areas \ 30-S0 meter's) to allow high visibility of bears. D, Birds Corr'ect "new" gull to mew gull. Bald eagles, gt'eat blue her-ons, gulls, ravens and Ct'OWS are the large blC'ds likely to be attracted t.o Humpback Creek salmon. Many of these bil'd~; will land on man rnadp st.t'uctures not ldentified in REA Bulletin 6 1 -1 I) . The d e ~; 1 9 n 0 [' t ran s m i s ~ ion t. 0 w e r s ~'\ tl d s tat ion fix t u t' e s s h 0 u 1 d reducp possibIlitIes of ele~trocution, Chugach Electric in Anchorage lIla.y be (1\)1,) t.o i.dent.lf:," de::::lqns that have allo~H~d electrocution of [. a veil t: d n d it" sub s f"~ IJ e n t. I. 0 5 S 0 f ~:; e t' \' 1 C e . If you have furt.her questions nl' h;:lv~ new lnformation to pass please contact our office. Sincerely, Jb ~~ ~d Randall Area Flsheries Blologist co: Gary Liepitz, Habitat DIvision, Anchorage attachment along Paragraph #1 LETTER FROM RICHARD RANDALL ALASKA DEPARTMENT OF FISH & GAME DATED DECEMBER 19, 1985 The attached comments were incorporated within the study, they are not included in this Appendix. We have agreed to limit our instream activities to the months of May and June as permitted by the Department of Fish and Game when construction actually begins. It is possible that due to weather variations this period may be expanded or contracted. Paragraph #2 Until final decisions are undertaken, the size of any blasting charges cannot be determined. of Fish and Game's concerns on blasting and we coordinate any blasting activities with them. amount of blasting will be very minor and will the area behind the powerplant building, which very light charges. Paragraph #3 and placement We are aware will Hopefully the be limited to would entail During the summer months temperature change in the water in the pipeline will be insignificant. The velocity of the water in the pipeline is such that the water will not be exposed to the warmer outside air for a long period of time. Any temperature increase would be further diluted when the water is put back into the stream where it will mix with a large quantity of water that has not been through the pipeline. During the winter there will be a slight cooling of the water, however, the temperatures in Cordova are such that there will not be a significant temperature differential between the water and air temperatures. There is concern that water may be flowing in the Creek that is supercooled, that is temperature below 32 degrees Fahrenheit. This water does not freeze since it is moving but a reduced velocity can cause a rapid freezing. This problem is addressed by a six inch pipe that will be heated to ensure that the water temperature remains above the freezing point for re-entry to the stream. Maximum temperature change from the project would be in the neighborhood of one to two degrees which should not affect salmon fry development. Letter from Richard Randall Dated Decenber 19, 1985 (Continued) Paragraph #4 The log crib dam has been reviewed by several engineers and all agree that the amount of gravel built up behind the dam is a concern. The concensus of the engineers is that it will not fail catastrophically but will continue to sag in the future. It has been pointed out that by transporting a portion of the water around the dam, hydraulic pressures on the dam will be reduced and may serve to extend the life of the dam. Paragraph #5 There are no plans for any personnel to reside at the site, other than on an emergency basis. We agree with the precautions recommended. As indicated in comments to a prior letter, we will be using the film developed for the Terror Lake Hydro Project concerning bear safety. Paragraph #6 We will work with Chugach Electric Association during final design to identify designs to minimize electrocution hazards for large birds. We consider this to be a relatively minor problem since it can be addressed at the time of design of the fixtures. Advisory Council Members Senator Bennett, Chairman Senator Kerttula Senator Abood Senator Sackett •""' .. :, .. .... " . Pouch V State capitol Juneau. Alaska 99811 Phone; (907) 465-3114 SENATE ADVISORY COUNCn ~J. D. Bechtel Genera 1 ~1anager December 23, 1985 Cordova Electric Cooperative, Inc. P.O. Box 20 Cordova, AK 99574 Dear Doug, In response to your letter of November 26, 1985, I have had a chance to review your draft Prel iminary Feasibil ity Reporton tbe Humpback Creek hydroelectric project. Before proceeding into specifics, let me commend you all for taking the initiative and spending the necessary resources to put together a good and well thought out report. In the context of decreaSing state oil revenues, I believe that it is essential for the communities to be willing to spend their own funds and resources and thereby considerably enhance their chances of obtaining matching state grants and/or loans for essential projects such as this. Mow to some specifics. was that APA had tentatively solution to Cordova's energy and changed economic factors findings. Reference page 5, paragraph 2, my impreSSion identified Silver Lake as the best long-term needs, and that due to the high capital cost it was going to revaluate these initial Reference page 8, paragraph B1, the quoted price of electricity should be identified as retail or wholesale. At the bottom of the page reference is made to a 1979 energy balance. I would suggest using one more up to date if available. Reference figures 1II-3 and 111-4, it would be better to break the data into actual (1980-1985) and projected (1986 onward). ® ® w.o. Bechtel December 23, 1985 Page 2 Reference figure V-I8, sheet #3, I would recommend leaving more space for sediment in the steel intake structure with provisions for easy cleaning of it. Reference page 79, paragraph FI, the economic feasibility is the term normally used when referring to benefit/cost analysis and normally accomplished on the basis of no subsidies. The term financial feasibility normally refers to the analysis and preparation of a plan of finance such that the energy from the project will be marketable, i.e., the consumers would be willing to buy from day one. This does not preclude the possibility that enlightened consumers would be willing to pay somewhat higher prices in the short-term in order to obtain lower prices over the long-term. Clearly there are various ways to finance a project and still have marketable rates. Reference page 88, paragraph 2, last two sentences seem to imply that only users of 750 KWH per month or more would benefit, i.e., encouraging consumption when a better strategy would be to encourage conservation. Reference page 39, this is an excellent selling point for the project. Reference page 90, paragraph 2, I don't believe that the idea conveyed is the one intended. Ideally, the project with the highest benefits would be the most desirable provided that it can be financed in such a way as to preclude rate shock in early years. The inherent danger is that financial obstacles can lead a utility to select a costlier short-term option over a more cost effective long-term option. I would also recommend that whenever benefit/cost analysis is discussed, that it be noted whether the results are based on subsidized or nonsubsidized data. Reference page 136, I would add the economic area to the three you have considered. As noted earlier the economic feasibility of the project should be determined on the basis of a benefit/cost analysis based on unsubsidized costs. If the project is feasible, i.e., B/C greater than 1, then the financiability of it is determined as discussed earlier. In terms of choosing the appropriate turbine and generator, I believe that you are on the right track by consulting with the manufacturers and utilizing off-the-shelf items to the greatest extent possible. In addition, the manufacturers might be able to help you with other relevant portions of the design such as foundations, powerhouse layout, etc. In order to accomplish this project as expeditiously as you desire, the licensing and financing aspects will have to be accomplished pretty fast. I noted that there is $1.3 million for your project in the Governor's proposed FY 87 capital budget. I would also encourage you to coordinate with and take advantage of the Alaska Power Authority's expertise in this area. W.D. Bechtel December 23, 1985 Page 3 In summary, r believe that you have a good small hydropower project that deserves support by all concerned. The project's strong points are that: it will utilize a clean and renewable energy resource. it will payback state's investment through decreased power cost equalization. it will utilize local labor as much as possible. it will lower energy costs over the life of the project. it is being accomplished by the local utility with the active support. of the community. Please let me know if I can be of further assistance. Best wishes for the holiday season. Sin~Y~, ~ lJ~s~;Uc) Senior AdViso7 Paragraph #1 LETTER FROM KURT S. DZINICH SENATE ADVISORY COUNCIL ALASKA STATE LEGISLATURE DATED DECEMBER 23, 1985 The Alaska Power Authority has tentatively identified Sil, ~ Lake as the best long term solution to Cordova's energy needs. The Alaska Power Authority is still continuing the~~ investigation of this project although at a much reduced scope. The major problem we see with Silver Lake is whether or not a $100,000,000.00 project is realistic for a community of 2,500 people. Paragraph #2 We have attempted to obtain more recent data to update the energy balance. The accumulation of this data is outside what we currently have time for although it will be pursued in the future. The study has been modified to indicate that retail prices of energy are used. Paragraph #3 Done. Paragraph #4 It now appears that the design of the intake structure wiil include a much larger steel "tank" to make water intake more efficient as well as providing more room for accumulation of sediment between cleanings. Paragraph #5 The last sentence on Page 88 has been deleted to prevent the misinterpretation. Those users who utilize less than 750 kwh a month will not see a direct reduction in their electric bill. The savings will be passed on to the State of Alaska through reduced PCE payments. It should be noted, however, that even with PCE the cost of electric energy for heating and cooking is still above available alternatives such as stove oil and propane. Paragraph #6 We agree that the project with the highest benefits would be the most desirable long term solution for Cordova's energy needs. However, those benefits must be weighed against the financial feasibility of the project. The Silver Lake hydro project is the case in point which provides much more benefit to Cordova over the next fifty years yet is probably not financially feasible for a community of this size. The Study indicates where State investment is included in the calculations. It should be noted that the State will receive a benefit from their investment through reduced PCE payments in the future and as indicated in the Study, the Letter from Kurt S. Dzinich Senate Advisory Council (Continued) benefit-to-cost ratio for the State of Alaska for this investment is 1.6. Paragraph #7 The Study has been modified to include economic feasibility as well as financial feasibility. Paragraph #8 Manufacturers of equipment that could be used for this project have been very helpful in providing equipment efficiencies and preliminary design information. We intend to work with these people closely in the future to take advantage of their expertise in this area. Paragraph #9 As indicated in a Foreword to this Study, the Alaska Power Authority has been very helpful in this project and we continue to make use of their knowledge and efforts to keep this project going. December 26, 1985 W.D. Bechtel, General Manager Cordova Electric Cooperative, Inc. P.O. Box 20 Cordova, Alaska 99574 Dear Mr. Bechtel: UNITED STATES DEPARTMENT OF COMMERCE National Ocaanic and Atmospharic Administration NationaL Marine Fisheries Service P.O. Box 1668 Juneau, ALaska 99802 The National Marine Fisheries Service has reviewed the Humpback Creek Hydro- electric Project Draft Feasibility Report, November 1985. Our review found the Report to be quite thorough in describing the proposed run-of-the-river project, and in establishing mitigative opportunities for certain environ- mental impacts. We concur with the analyses and conclusions presented in the Report and look forward to continued participation in project planning as the licensing efforts continue. As mentioned in the Report, we have parti- cular interest in the design of the powerhouse and tailrace facilities and would appreciate the opportunity to review these plans when they become available. We would also like to receive the results of the 1985-86 fisher- ies investigations referred to on page 125. We appreciate this opportunity to comment. Si nce~79v~:7l C' ~: Rober W. McVey f/;1;7~ Direc or, Alaska R~ , .. -", tETTER FROM ROBERT W. McVEY DEPARTMENT OF COMMERCE NATIONAL MARINE FISHERIES DATED DECEMBER 26, 1985 We will submit preliminary designs of the power plant and tailrace facilities to the National Marine Fisheries Service for their review prior to finalizing these plans. We will also provide all interested parties a copy of the 1985-1986 pink salmon survival studies when complete. ;'-:-":", Ll1~S.\ United States Department of Agriculture Forest Service Mr. W. D. Bechtel, General Manager Cordova Electric Cooperative, Inc. P.O. Box 20 Cordova, Alaska 99574 Chugach NF 201 E. 9th Ave. Suite 206 Anchorage, AK 99501 Reply to: 2510-4 Date: December 26, 1985 This letter is in response to your request for comment and review of the Preliminary Feasibility Report on the Humpback Creek hydroelectric project. Our comments are limited to the potential resource impacts from the proposed project. We have not addressed the report's economic analysis. We are pleased to have the opportunity to review this report, and like seeing investigation being done on this sort of small scale power development project. We do not forsee major or insurmountable problems with the development of the project, however, we would like to provide several comments in the areas of hydrology, historic/archeologic values, and fisheries. Also, as a general comment, it would be useful to the report to provide a good vicinity map of the project site and where it lies in relation to the City of Cordova. Specific comments are as follows: 1. Hydrology. You have addressed briefly the problem of sediment buildup behind the old crib dam, and the danger of this sediment releasing as the dam deteriorates. Is there the possibility of modifying the crib dam during construction of the power plant such that it could work to release sediment at a moderate rate rather than in a large "blowout" at some point in the future? The latter event would obviously have negative impacts to the channel morphology and to the salmon population in Humpback Creek. A more measured release of the sediment load could help to lessen these impacts. 2. Historic/Archeological Values. a. The general background history of the old hydro-power installation is good. b. The plans for construction provide reasonable alternatives for mitigating impacts to potentially significant historic features. c. FERC will probably still need to see official clearance from the State Historic Preservation Officer and if need be, the National Advisory Council on Historic Preservation. This need should be antiCipated by CEC regardless of the archeological assessment work done to date. d. Subsurface testing of the new power generating site and access road should be seriously considered as part of the clearance program. .:1 \ . Mr. W. D. Bechtel Page 2 3. Fisheries. Impacts to the fisheries resource by this project appear to be slight. It further appears that your proposed mitigation efforts should amply make up for pink salmon losses on Humpback Creek due to installation of the power project. As mentioned previously, we see the sediment load perched behind the old crib dam as a potential problem to the fisheries. Perhaps reduction of this danger could in fact be considered a mitigating measure for the Humpback Creek fisheries. We appreciate the opportunity to comment on this report. If you have additional questions please contact myself or our hydrologist, Dave Blanchet at 261-2500. Sincerely, DAL~?dr;, Fo~~;;rv~ r cc: CRD 112685 1018 msw 2510-4 db FS·6200·28(7·82) Paragraph #1 LETTER FROM DALTON DULAC U.S. FOREST SERVICE DATED DECEMBER 26, 1985 We will review the possibility of a gradual release of the sediment load behind the existing dam. However, we feel that this is outside the scope of the hydro electric project that we are currently undertaking, but since we will have people on site over the next few years, this is something that could be worked out. It is the general concensus of engineers that have visited the site that the dam will not fail in a catastrophic manner, but will continue to sag as it is currently doing for the foreseeable future. Paragraph #2 See comments to prior letters concerning the historical value of the existing dam and hydro site. Subsurface soils testing of the power plant and access road will be undertaken in early 1986. Paragraph #3 We agree that the sediment load behind the existing crib dam is a potential problem. As mentioned previously, we will work on this with the Alaska Department of Fish and Game. DEPARTMENT OF FISH AND GAME January 9, 1986 Mr. W. D. Bechtel, General Manager Cordova Electric Cooperative, Inc. P.O. Box 20 Cordova, Alaska 99574 Dear Mr. Bechtel: BILL SHEFFIELD, GOVERNOR 333 RASPBERRY ROAD ANCHORAGE, ALASKA 99518·1599 Re: Humpback Creek Hydroelectric Project Draft Feasibility Report, November 1985 The Alaska Department of Fish and Game (ADF&G) has reviewed the referenced report. We understand that Cordova Electric Cooperative proposes to construct an 850 kw run-of-the-river project on Humpback Creek, near Cordova. Based on the information contaioed in the draft report, the ADF&G believes that the project, including mitigating measures, can be constructed without significant impact to the fish and wildlife resources of the project area. Our primary concerns with the project are with maintaining the existing productive pink salmon spawning habitat in Humpback Creek through proper location and design of the tailrace; avoiding activities that will alter spawning gravels such as sedimentation and downstream transportation of wood and rock materials; and minimizing the potential for human/bear conflicts through worker orientation and proper storage and disposal of refuse. Please keep us informed of project developments. As you are aware, this project will require authorization from the ADF&G pursuant to A.S. Title 16.05.870. The following specific comments are provided for your consideration: Page 107, para. 1: We recommend that the initiation of right-of-way clearing be delayed until the appropriate project approvals are received. Page 108, para. 1: We request that the potential for hydraulic transportation of 20 to 40 cubic yards of rock downstream to the spawning reach of Humpback Creek be addressed in future project analyses. (3) ® Mr. W. D. Bechtel -2-January 9, 1986 Page 110: When more specific plans are developed regarding the need for blasting for right-of-way preparation we will need to know charge size and the distances to Humpback Creek to develop timing stipulations for Title 16 permits. Page 117, para. 1: The tailrace should be located as far upstream as possible to assure a water supply to the salmon spawning habitat. Also, please provide plans for the design of the tailrace and energy dissipating structures for our review when they are available. Page 117, para. 2: Timing of construction of the tailrace and other instream activities should be planned for May and June. Page 125, para. 1: The ADF&G should be consulted regarding the overwinter survival study of pink salmon eggs and fry. Please provide the opportunity to review the study design prior to initiation. If egg and fry survival is found to be low or nonexistent then we need to first determine and evaluate the factors that are responsible before concluding that no mitigation is necessary. Page 125-127, Fishery Mitigation Alternatives: The ADF&G supports the evaluation of these mitigation alternatives. Because the potential adverse impact is to the population of pink salmon in Humpback Creek, we prefer mitigation options 1 and 2. If these prove to be infeasible, then additional alternatives can be considered. Should you wish to discuss these comments, please contact me in Anchorage at (907) 267-2284. Sincerely, ~~~~ G· 'N'~ \.<-\ Donald O. McKay Habitat Biologist Habitat Division 267-2284 cc: G. Bos, ADF&G R. Randall, ADF&G M. McCurdy, ADF&G H. Griese, ADF&G R. Bowker, USFWS/WAES B. Smith, NMFS G. Prokosch, ADNR P. Bielawski, DGC LETTER FROM DONALD O. McKAY HABITAT DIVISION ALASKA DEPARTMENT OF FISH & GAME DATED JANUARY 9, 1986 Paragraph #1 We concur, see our response to prior letters. Paragraph #2 We will address the impact on rock disposal in the stream when we apply for our Title 16 permit. We agree that it does pose a potential problem, but as indicated in our response to the Department of Interior's letter, we do not see a readily available alternative. Paragraph #3 As soon as we are able to determine blasting for right-of-way clearing, Alaska Department of Fish and Game. will form a portion of our Title 16 Paragraph #4 our requirements for we will inform the We realize that this permit application. We agree. See our response to Mike McCurdy's letter of December 5, 1985. Paragraph #5 We agree. The wording of the Study has been modified to indicate this timing constraint for instream work activities. Paragraph #6 We are currently working with local Fish and Game personnel on the pink salmon fry survival study. We agree that weather conditions this winter have to be taken into account before any opinions can be reached concerning long term fry survival in the area near the tailrace. I DEPT. OF ENl-'IRONMENTAL CONSERVATION I ! January 17, 1986 Division of Environmental Qualit.Y 43'7 IIEII St. Anchorage, AK., 99501 Mr. W.D. Bechtel General Manager Cordova Electric Cooperative Inc. P.O. Box 10 Cordova, AK., 99574 Dear Mr. Bechtel: , ! BILL SHEFFlfLD, GOVERNOR Havi ng revi ewed the draft IIHumpback Creek Hydroel ectri c Project Feasibility Reportll, dated November, 1985, prepared by the Cordova El ectri c Cooperative, the Department of Envi ronmental Conservati on fi nds no major envi ronmental concerns wi th the proposed project. As the contractor has noted, a permit to burn will be necessary in conjunction with planned clearing activities. Also, a solid waste disposal permit will be required for any disposal of construction debris. Application for the respective permits should be filed as soon as final details are known. We have no further comments at this time; thank you for the opportunity to review the project. cc: Commissioner Ross Keith Kelton, Director Dan Lawn, DEC/Valdez Bob Bowker, USF&WS Cordi ally, ~~-<-... - Boh Martin, P.E. Deputy Director ApDendix 2 Schedule A Page 1 :;cm:OUI.E or E!.1 GI IjI.E 1'01.'F.R COSTS Cordova Electric Cooperative PC16 -010 1984 UTlI.ITY NAtI£ -CEHTlrICATE NO. ItEI'OllT I NG l'!::IOOI) (Test Year) ACCOm<'T NmmER REFERENCE FPC/FERC REA OTHER CLASS AlB Co-op (INDICATE) 500 500 502 502 503 503 504 504 505 505 506 506 507 507 510 510 511 511 512 512 513 513 514 514 535 535 536 536 537 537 538 538 539 539 540 540 541 541 542 542 543 543 544 544 545 545 546 546 548 548 549 549 550 550 551 551 552 552 553 553 554 554 556 556 557 557 560 560 561 561 562 562 563 563 564 5610 565 565 566 566 567 567 .568 568 569 569 EXPE1\SE C,\TEGOR'{ 1. PWER PRODUCTION EXPF:NSES A. STEAtI POwr:R GENERATION Operation supervlslon & engineering Steam expenses Steam Crom other sources Steam transferred -Credit Electric expenses Misc. steam power expenses Rents Maintenance supervision & engineering tlaintenance of structures Maintenance of boiler plant MainteDance of electric plant Maintenance of misc. steam plant B. HYDRAULIC POWER GENERATION Operation supervision & engineering Water for power Hydraulic expenses Electric expenses Misc. hydraulic power gen. expenses Rents MainteDance of supervision & engineering MaiDtenance of structures MaiDtenance of reservoirs, dams & waterways Maintenance of electric plant Maintenance of misc. hydraulic plant c. OTHER POWER GENERATION Operation superVision & engineering Generation Expenses Misc. other po"'er gener:ltion expenses Rents tlaintenan,te supervision & engineering Maintenance of structures Maintenance oC generating & electric plant M:lintenance of misc. other power generation plant D. OT)~R POwLR SUPPLY EXPENSES System control and load dispatching Othe r expenses 2. TRANStlISSION EXPEt-.'SES Operalion superVision & engineering Load dispatching Slalion expenses Overhead line expenses Underground line expenses Tran~mission oC eleclricily by olhers Misc. lr:lnsmission exprnses Rents Maintenance supervi~ion & en~ineering Maintenance of structure5 ~!otr:r PAGE I; $·21,891.23 250,364.02 31,687.79 2,333.39 21,912.46 34,206.01 94,859.64 53.60 $457,308.16 ,\prend i x 2 Sch~Jule A P.Jge 2 SCHEDULE OF El.IGI!lLE POI."ER COSTS CORDOVA ELECTRIC COOPERATIVE PC16 -010 UTI Ll T\' NA,'I" -CWTI f" I C,\"I'I: ~O. ACCOIJXT NUl'IBl;R REFERE~CE FPC/fERC REA OIlIER CLASS AlB Co-op (I:-1lIC,\TE) 570 571 572 573 580 581 582 583 584 585 586 587 588 589 590 591 592 593 594 595 596 597 598 901 902 903 904 905 907 908 909 910 911 912 913 916 570 571 572 573 580 581 582 583 584 585 586 587 588 589 590 591 592 593 594 595 596 597 598 901 902 903 904 90S 907 908 909 910 911 912 913 916 EXP"NSE C~TCGORY A/'IOlr.IT PA G 2. TRANsmSSION EXPENSES CONT'D tla intenance of station equipment tla intenance of overhead lines Maintenance of underground lines tla intenance of misc. transmission equipment 3. DISTRIBUTION EXPENSES Operation supervision & engineering $ Load dispatching 2,897.44 Station expenses Overhe3d line expenses Underground line expenses Street lighting and signal system expenses l1eter expenses Customer installation expenses Misc. distribution expenses Rents Maintenance supervision & engineering Maintenance of structures Maintenance of station equipment Maintenance of overhead lines Maintenance of underground lines Maintenance of line transformers Maintenance of street lighting and signal system Maintenance of meters Maintenance of misc. distribution plant 4. CUSTO~~R ACCOUNTS EXPENSES Supervision Meter reading expenses Customer records and collection expenses Uncollectible accounts Misc. customer accounts expenses 5. , .. CUSTmlER SERVICE & lNFOIU-IATIONI\L EXPENSES Supervision Customer assistance expenses Informational & instructional advertising expenses Misc. customer service & informational expcnses 6. SALES EXPE~SES Supervision D~mon~tr.1Ling & selling eXl'e"s~s ~<Iv~'rtisinc expenses Misc. sales expenses 556.06 10,564.23 8,650.62 10,,253.26 39,114.86 1,497.81 546.26 2,897.42 1,097.58 11,094.73 21,864.20 2,344.14 2,942.27 220.40 112.49 $116,653.77 10,607.91 46,099.47 3,000.00 $59,707.38 SUlmARY P'):H:R COST EOUt\LIZ,\TIOII PRO:::I\A~I Utility Name Cordova Electric Cooperative Certificate "u~ber PC16 -010 A:>oendix 5 I'.l-:lc .!. Address ____ p_,_O_, __ B_O_x __ 20 __________________________________________ ------ Cordova, AK 99574 1984 Reporting Period (Tes~ Year) lS,253,189 Total KWH Sold or de~era~ed (circle one) During Reportin; Pe~iod A, Total KWH Gener5te~ B. Total KHH ~etered to Customers C. Total Allowable Costs (except return on e~uity and fuel costs) ?er KWH based upon financial documents submitted D. Total.fuel costs per KWH based upon docu~ents submitted E. Total System Avera;e Costs per KIlH C + 0 -S.5¢/KWH F. The lesser of E or 44¢/KUH (to and includin; 750 KWH) . G. Average Class Rate (from Appen- dix 7, Page 3) -8,5~/KWH 1. Residential 2. Cornmercial 3. Public Lighting 4. Large Power S. Industr ial 6. Etc. Boat Harbor Utility Reouest 17, 155,96~1"lH 1 S, 253, 18!%mH 7,94 ¢/KIolH 10.54 ¢/KHH 10. 54 ¢/l\i~H 12.632 ~/K;"H 13.432 ¢/KUH 10.232 ¢/KUH 10.232 ¢/KI"lH ¢lKI·IH 10.232 ¢/Ki"lH Commission Determination 17 • 155.960 KIm 15.253,189 Kim 11. 07 ¢/Ki~H 7.94 ¢/KI·IH 10.54 ¢/K;m 10.54 ¢/K;·m 12.632 ¢/Ki:ij 13.43~ ¢/KIlH 10.232 t/i(lm 10.232 s:!!i<~1H t/Kim 10.232 t/Ki~iJ ---------------------------------------------------------------------- Class Power Cost Equa1izatio~ per KilH Payable by Alaska Power Authority H. Lesser of: (ll f' x .95: or (2) ::; 1. Residential 9.98 ¢/i<llH 2. Commercial 9.98 t/KiIH 3. Public Lightin; 9,98 ¢/KI"IH 4. Large Power 9.98 ¢/KUH S. Industrial ¢/KIlH 6. Etc, Boat Harbor 9.98 ¢/KIlH 9,28 I!/KllH 2 28 s:!/i<ilH 9.9t;l ¢/i<:lH 9,9~ ¢/Kim ¢/i\;m 9.<)8 ¢!i<iIIt AMENDMENT TO POI1ER COST EQUALIZATION CONPUTATION WITII FUEL COST RATE ADJUSTNENT Utility Name: Cordova Electric Cooperative TA Number: PC16 -OlD Prior Updated Commission Utility Determination Request A. Non-Fuel Power Costs/KWH (Line C, Appendix 7, page 4) 10.42 ¢/KWH 11. 07 ¢/KWH (A) (A) B. Fuel Power Costs/ KWH (Line G, Appendix 7, page 4) + 7.88 ¢/KWH + 7.94 ¢/KWH (B) (B) C. Total Power Costs/KWH 18.30 ¢/KWH 19.01 ¢/KWH (MB) (A+B) 0, Total Power Costs/ KWH less B.5¢/KWH 9.80 ¢/KWH 10.51 ¢/KWH (D) (D) E. 95\ of 0 9.31 ¢/KWH 9.98 ¢/KWH (E) (E) F. Statutory Maximum Eligible Power Cost Equalization .95 (52.5¢/KWH - 8.5¢/KWH) 41.8¢/KWH 41.8¢/KWH G. Lesser of E or F 9.31 ¢/KI"IH 2·9~ ¢/KWH (G) (G) Customer/class H. Hate (from Appendix 7, page 3, column 7) Residential 10.232 ¢/KWH 12.632 ¢/KWH Small Commercial 10.232 ¢/KWH 13.432 ¢/KWII Large Power 10.232 ¢/KWH 1Q.232 ¢/KWH Boat Harbor 10.232 ¢/KWH 10.232 ¢/KWH Street Lights 10.232¢/KWH 1Q.232 ¢/KWH ¢/KWH ¢/Klm Power cost Egualization 1. For Each Class, the Lesser of H (for that class) or G Residential 9 3l ¢/Kl~1l 9.98 ¢/KWIl Small Commercial 9.31 ¢/KNII 9.98 ¢/Kl~1I Large Power 9.31 ¢/KI"IH 9.98 ¢/Klm Boat Harbor 9.31 ¢/KWH 9.98 ¢/KWH Street Lights 9.31 ¢/KWII 9.98 ¢/KWIl ¢/KWH ¢/KWH I\ppcndl.x 7 rage 2 Updated Commission Determination .. (A) + (B) (A+B) (D) (E) 4L8¢/K'.-IH (G) ¢/'f ¢/K ¢/I ¢/I ¢/r ¢, ¢. ¢, ¢, ¢, ¢, ¢ <- ¢ ( ¢ ¢ ¢ Appendix 2 Schedule A hge 3 SCI~DULE Of ELIGIBLE POWER COSTS CORDOVA ELECTRIC COOPERATIVE PCl6 -010 UTlLIT¥ N,\tLE -CERTlFlC,\TE NO. ACCOUNT miSER REfERENCE EXPENSE CATEGOR¥ FPCI fERC REA OIlIER CLASS AlB Co-op (INDICATE) 920 920 921 921 922 922 923 923 924 924 925 925 926 926 927 927 928 928 929 929 930.1 930.1 . 930.2 930.2 931 . 931 932 932 7. ADI1INISTRATIVE & GENERAL EXPENSES Administrative & general salaries $124,067.66 Office supplies & expenses 23,019.73 Administrative expenses transferred -Cr. Outside Services employed 25,621.50 Property Insurance 17,328.09 Injuries & damages 22,858.03 Employee pensions & benefits 348.33 Franchise requirements Regulatory commission expenses Duplicate charges -Cr. 462.02 General adVertiSing eXpenses 18,007.42 Misc. general expenses Rents 13,164.00 Maintenance of general plant $244,876.78 8. ALLOWABLE FIXED COSTS (to the extent expensed) Depreciation Taxes Interest on debt Other Deducations $270,629.93 7,626.59 377,444.15 (Schedule attached) 3,662.76 $659,363.43 Total Expenses, Excluding Fuel Costs $1,537,909.52 NOTE: Staff. An adjustment for current fuel costs will be made by Commission The follOWing information is therefore required: a. Regulated utilities with surcharges in effect 1. Current price per gallon of fuel shown in most recent surcharge calculation approved by the Commission. 2. Yearly gallons consumed and Kh1' sales shown in most recent surcharge calculation approved by the Commission. b .. Utilities with no surcharge i'O effect or :unregulated 1. fuel storage c:spacity 133,500 * 2. Actual price per gallon of fuel on hand, assuming that latest purchases are sold last (Le. FIFO) .935 Attach schedule showing components of total. 5ch. Ref. 3. Latest invoiced price of fuel per gallon .935 ~bt:~~o~PIn'lfotg~o~~: 47 36iifha ti!.eic!hed. *Fuel price has not changed for over a yea~. Refer to our 5/31/84 filing based on 1983 as a test year. Cop~es of FCRA consumptions attached in lieu of Fuel usage Schedule. Total Expenses excluding fuel Extraordinary loss: Chase Avenue Overhead Retirement** Fuel Cartage Lubricating Oil Antifreeze, Fuel Tests $14,589.80 24,038.63 1,984.25 **See Appendix 8 for REA Approval of Accounting treatment of this item. $1,537,909.52 110,487.61 40,612.68 $1,689,009.81 CC:~PUT,\TIO:I OF ".VERAGE CLASS RATE PER K .. 11 UTILITY Cordova Electric Cooperative RATE SCHEDULE R-Residential 1 2 3 4 5 KWH _TOt~1. Rate Total Rate Surcharge (S/KVlH) (S) By Block (S/KWH) (S/KWH) (2 + 3) (1 x 4) 0 $lB.OO $lB.OO 750 .19 .00268-.18732 140.49 (A) Total 750 (El $158 .49 RATE SCHEDULE GS-1 Small Commercial 1 2 3 4 5 KWH Total Rate Total Rata Surcharge (S/KWH) (S) _By Block (S/KWH) . l$/KWH) (2 + 3) (1 x 4) .. .. . ' .. . 0 . $24.00 ~24.00 750 .19 .00268-:18732 140.49 , -. ' .. - (A) Total 750 (E) 164.49 RATE SCHEDULE GS-3 Large Power & Boat Harbs>r 1 2 3 4 5 lCWH Total Rate Total Rate Surcharge ($/KWH) (S) By Block (S/KWH) ($/KWH) (2 + 3) (1 x 4) *750 .12 .00268-lR712 t-WJJ......4...9.... *Does not nclude vari ~ble demanc charqes as iessed (A) Total 750 (E) $140.49 RATE SCHEDULE Street Lights & Signals .L :l .j 4 5 lCWH TOtal Rate Total Rate Surcharge (S/KI-;1I) (S) By Block (S/KI-;1!) IS/KIm) (2 + 3) (1 x 4) 750 .19 .00268-.18732 $140.49 (A) Total 750 (E)$140.49 Appendix 7 Page ). 6 Avg. Rate (S/K',rn) (E) .:. (A) .21132 6 Avq. Rata 7 Avg. R (s/n·n!) S.085/ .12632 7 Avq. Ra (S/KWH) ($/KWH) ; (E) ~ (A) S.085/~ .21Q12 .1141 6 7 Avg. Rate Avg. P ($/K'fni) (S/KHIi) (E) .:. (1\) $.085/ .18732 .102 c 6 7 Avg. Rate Avg. R (S/KWII) (S/KHIi) (E) .:. (A) S.085/ .18732 .1023 AMENDMENT TO ALLOWABLE POWER COST EQUALIZATION FOR REGULATED UTILITIES WITH FUEL COST RATE ADJUSTMENT Utility Name: Cordova Electric Cooperative TA Number: PC16 -010 Non-Fuel Costs Approved Total Allowable Costs--Less Return on Equity and Fuel Costs Source: REA Form 7 12 Month total KWH sales from surcharge filing Total non-fuel power costs (A~B) Fuel Costs Current fuel price used in most recent surcharge filing 12 Month total fuel consumption from surcharge filing 12 Month total KWH sales from surcharge filing Total fuel power costs (0 x E~F) $ $ $ $ Arpclldix 7 Pa'lC 4 1,689,002.111 (A) 15,253,189 KWH (B) 11.07¢ /KWH (C) .935 /ga1. (0) 1,295,563 gal. (E) 15!253,182 (F) KWH 7.94¢ /KW!I (G)