HomeMy WebLinkAboutTerror Lake Hydroelectric Project - Draft Application for Capacity Amendment to License 2010Kodiak Electric Association, Inc.
Draft Application for Capacity Amendment to LicenseDraft Application for Capacity Amendment to License
Terror Lake Hydroelectric ProjectTerror Lake Hydroelectric Project
FERC Project No. 2743FERC Project No. 2743
Third UnitThird Unit
November 2010November 2010
Kodiak Electric Association, Inc.
Terror Lake Hydroelectric Project, FERC License No. 2743
Draft Application for Capacity Amendment to License
Joint Agency/Public Meetings
Kodiak National Wildlife Refuge Visitor Center
Tuesday, December 7, 2010
2:30 p.m. and 7:00 p.m.
I. Introduction and Overview to Meeting Format
A. Welcome and Introductions of Participants
B. FERC Capacity Amendment Application Process
1. FERC Regulation - Initiating Formal Consultation Process
a. Application for Capacity Amendment to License
b. Preparation and Filing Requirements
2. NEPA Process – Today Serves as Scoping Meeting
a. Preliminary Draft Environmental Assessment
b. Scoping Document No. 1
C. Protocol for this Meeting
1. Sign-In – Name, Organization & Contact Information
2. Meeting is Recorded
a. When you Speak, State your Name & Affiliation
b. Transcript will be Provided
3. Format for this Meeting
a. Presentations
b. Q&A Sessions (2)
c. 15 Minute Break
II. KEA Service Area and Generation System
A. Overview of Current Generation System
1. Terror Lake Hydroelectric Project
2. Pillar Mountain Wind Project
3. Diesel Generation Facilities
B. Role of Third Unit in achieving KEA’s Vision Statement:
Endeavor to produce 95% of energy sales with cost effective renewable power
solutions by the year 2020.
Joint Agency / Public Meetings Draft Agenda – December 7, 2010
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
Page 2 of 3
C. Benefits of Third Unit to KEA’s Electric System and Membership
1. Added Generation through Plantwide Efficiencies
2. Redundancy to Existing Units during Maintenance
3. Supply Peak Loads without Diesel Fuel
4. Enhanced System-Wide Grid Stability
a. Supports More Wind Energy
b. Improves Distribution System
5. Reduced Dependence on Diesel Fuel
a. Stabilized Cost of Energy
b. Reduced Emissions
III. Proposed Installation of Third Unit
A. Existing Infrastructure at Project to Accommodate Third Unit
1. Project Originally Designed for Third Unit
a. No Additional Lands, Water Rights or New Structures Proposed
b. No Ground-Breaking or Change in Project’s Appearance
c. No Modification to Terror Lake or Terror River Release
d. Tailrace Designed for the Flow from Three Turbines
B. Proposed Protection Measures to Ensure No Adverse Effects during Installation
1. No Work Affecting Ordinary High Water of Kizhuyak River or its
Tributaries
2. Contractor Terms and Conditions
a. Contractor Use of Project Facilities
b. Equipment and Vehicle Operation on Project Lands
c. Fuel and Chemicals
d. Disposal of Wastes
e. Erosion and Sedimentation Control
f. Wildlife and Landscape
g. Protection of Aquatic Resources
IV. Questions and Comments from Participants
Break for 15 Minutes
V. Engineering Exhibits - Draft Application for Capacity Amendment to License
A. Exhibit A – Project Description
B. Exhibit B - Project Operations
Joint Agency / Public Meetings Draft Agenda – December 7, 2010
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
Page 3 of 3
C. Exhibit C – Project Schedule
D. Exhibit D – Project Economics
VI. Environmental Aspects of the Proposed Amendment
A. Exhibit E - Preliminary Draft Environmental Assessment
1. Introduction to Document
2. Proposed Action and Alternatives
3. Environmental Analysis
a. General Description of the Area Affected by the Proposed Action
b. Scope of Cumulative Effects Analysis
c. Proposed Action and Discussion of Protection & Avoidance
Measures
4. Developmental Analysis
B. Scoping Document No. 1
VII. Proposed Request for Waiver of Second Stage Consultation
A. FERC’s Three-Stage Consultation Process
B. Rationale for Request
C. Request to FERC
VIII. Questions and Comments from Participants
IX Next Steps
A. Comments on the Draft Application for Capacity Amendment & Scoping Document
No. 1 Due by February 5, 2011
B. How to File Comments with FERC
DRAFT APPLICATION FOR CAPACITY AMENDMENT TO LICENSE
TERROR LAKE HYDROELECTRIC PROJECT
FERC NO. 2743
'
Project Licensee:
Kodiak Electric Association, Inc.
Kodiak, Alaska
November 2010
FERC Capacity Draft Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
Draft
November 5, 2010
Table of Contents
Initial Statement ....................................................................................................................................... IS-1
Exhibit A - Project Description................................................................................................................... A-1
Exhibit B - Operation and Resource Utilization......................................................................................... B-1
Exhibit C - Proposed Construction Schedule............................................................................................C-1
Exhibit D - Statement of Costs and Financing..........................................................................................D-1
Exhibit F - Project Drawings.......................................................................................................................F-1
Exhibit G - Project Map.............................................................................................................................G-1
Preliminary Draft Environmental Assessment
Appendix A - Figures
Appendix B - Project Chronology
Appendix C - Record of Consultations
Appendix D - Scoping Document No. 1
Appendix E - Approvals, Measures, Permits, and Plans
Appendix F - Photographs
Appendix G - Technical Reports
Initial Statement
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
IS-1
Draft
November, 5 2010
Initial Statement
Before the Federal Energy Regulatory Commission
Application for Capacity Amendment to License
Major Project – Existing Dam
(1) Kodiak Electric Association, Inc. (KEA) applies to the Federal Energy Regulatory Commission
(FERC or Commission) for a capacity amendment to license for the existing Terror Lake Project, FERC
Project No. 2743, as described in the attached exhibits.
(2) The location of the project is:
State or territory: Alaska
Borough: Kodiak Island Borough
Township or nearby town: Kodiak
Stream or other body of water: Terror River, Terror Lake, Kizhuyak River
(3) The exact name and business address of the applicant are:
Kodiak Electric Association, Inc.
PO Box 787
Kodiak, Alaska 99615-0787
The exact name, business address, telephone number, and e-address of each person authorized to act
as agent for the applicant in this application are:
Darron Scott, President/CEO
Kodiak Electric Association, Inc.
PO Box 787
Kodiak, AK 99615-0787
907-486-7707
dscott@kodiak.coop
The applicant requests that copies of all correspondence relating to this Capacity Amendment Application
also be sent to the authorized Project Manager for the Applicant in this Application at the following
address:
Nan A. Nalder, MPA
HATCH
6 Nickerson, Suite 101
Seattle, WA 98109
Direct: 206-288-2998
nnalder@hatchusa.com
(4) The applicant is a not-for profit 501(c)12 rural electric cooperative and is not claiming preference
under section 7(a) of the Federal Power Act. See 16 U.S.C. 796.
(5)(i) The statutory or regulatory requirements of the state in which the project is located that affect the
project as proposed, with respect to bed and banks and to the appropriation, diversion, and use of water
for power purposes, and with respect to the right to engage in the business of developing, transmitting,
Initial Statement
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
IS-2
Draft
November, 5 2010
and distributing power and in any other business necessary to accomplish the purposes of the license
under the Federal Power Act, are:
Bed and Banks and the appropriation, diversion, and use of water for power purposes
(A) Water right, State of Alaska, Department of Natural Resources
Right to engage in the business of developing, transmitting and distributing power
(A) KEA has full control and ownership over the Project and operates as a rural
electric cooperative with a Certificate of Public Convenience and Necessity under
the laws governing provision of electric power within KEA’s designated service
area. Please see copy attached to this Statement.
(B) KEA operates and will continue to operate only within the State of Alaska
(ii) The steps which the applicant has taken or plans to take to comply with each of the laws cited
above are: (provide brief description for each law).
(A) KEA holds a water right adequate to include the Third Unit and does not propose
to change pursuant to this Amendment Application.
(B) KEA will continue to operate the Project for the purpose of supplying electricity to
its member customers within KEA’s service area.
(C) KEA will continue to own and operate the Project.
Copies of all Alaska State Code sections discussed above are attached following this section.
(6) Brief Project description
(i) Existing installed capacity is 22.5 MW. With the proposed additional Third Unit; the proposed
installed generating capacity would equal 33.75 MW
(ii) Check the appropriate box: _X_ existing dam
___ unconstructed dam
___ existing dam, major modified project
(7) Lands of the United States affected. Please see the attached Ownership Map. Please be advised
that this amendment application does not affect the Kodiak National Wildlife Refuge as KEA does not
propose any modification to the operation of Terror Lake.
Lands of the United States
Name Acres
(i) National Forest 0
(ii) Indian Reservation 0
(iii) Public lands under jurisdiction of the US Army Corps of Engineers 0
(iv) Other 0
(v) Total US Lands 0
(vi) Check appropriate box __X_ Surveyed land
____ Unsurveyed land
Initial Statement
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
IS-3
Draft
November, 5 2010
(8) The Terror Lake Project facilities are constructed and owned and operated by KEA. No other
entity owns any existing project facilities.
(9) The Terror Lake Project is located
(i) Within the Kodiak Island Borough; portions of the Project not affected by this Amendment
Application are located within the Kodiak National Wildlife Refuge
(ii) Cities, towns or subdivisions
(A) Occupied by the Project – None
(B) Having Population of 5,000 or more persons located within 15 miles of the project
dam – None.
(iii) Irrigation districts, drainage district or similar political subdivision
(A) None
(iv) Every other political subdivision in the general area of the project that there is reason to
believe would be interested in, or affected by, the application
(A) None
(v) All Indian Tribes that may be affected by the amendment
(A) Afognak Native Corporation, Inc. (Please see attached correspondence from the
Alaska Power Authority to FERC dated April 24, 1986.)
(10) KEA makes the following information available to the public
The information is available to the public at KEA’s offices during regular business hours
515 East Marine Way
Kodiak, Alaska 99615
907-486-7700
and at the below-listed public libraries
A. Holmes Johnson Memorial Library
319 Lower Mill Bay Road
Kodiak, Alaska 99615
Carolyn Floyd Library at Kodiak College
117 Benny Benson Drive
Kodiak, AK 99615
Chiniak Public Library
42650 Chiniak Highway
Chiniak, AK 99615
Jessie Wakefield Memorial Library
207 Spruce Drive
Port Lions, AK 99550
(11) KEA will publish notices of its application twice within the date of filing of this application, in daily
or weekly newspapers of general circulation:
a. Kodiak Daily Mirror
Kodiak, Alaska
Initial Statement
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
IS-4
Draft
November, 5 2010
b. Anchorage Daily News
Anchorage, Alaska
FERC will publish subsequent notices soliciting public participation following a determination that the
application is found acceptable for filing
(12) Benefits under Section 210 of PURPA
KEA is not seeking benefits under PURPA.
Certificate
of
Public Convenience and Necessity
No. 16
Having found that the grantee of this certificate is fit, willing, and able to provide the utility services applied
for and that such services are required for the convenience and necessity of the public, the Alaska Public
Utilities Commission, pursuant to the authority vested in it by AS 42.05, hereby issues this certificate of
Public Convenience and Necessity to
KODIAK ELECTRIC ASSOCIATION, INC.
authorizing it to operate a public utility, as defined by AS 42.05.990(4) (A) for the purpose of furnishing
ELECTRIC SERVICE
This Certificate is issued under, and subject to, the provisions of AS 42.05 and all rules, regulations, and
orders from time to time promulgated by the Commission governing the rates, charges, services, facilities,
and practices of utility operations of the kind authorized herein.
The specific nature, scope, terms, conditions, and limitations of the authority granted by this Certificate, as
amended to date, are set forth in the appendix hereto and in the following order(s) of the Commission which,
by this reference, are incorporated in and made a part hereof as though fully set forth herein.
Docket No. Date of Order
U-96-21(1) August 12, 1996
(Chronology and service area description shown on the attached Appendix A)
IN WITNESS THEREOF, the undersigned members of the Commission
have executed this Certificate of Public Convenience and Necessity at
Anchorage, Alaska on this 22nd day of June 1998.
Alaska Public Utilities Commission
________________________________________________ (CHAIRMAN)
________________________________________________ (COMMISSIONER)
________________________________________________ (COMMISSIONER)
________________________________________________ (COMMISSIONER)
________________________________________________ (COMMISSIONER)
APPENDIX A
Certificate of Public Convenience
and Necessity No. 16 Granted to
KODIAK ELECTRIC ASSOCIATION, INC.
DESCRIPTION OF SERVICE AREA:
T26S R22W Sections: 31, 32, and 33
T27S R19W Sections: 14 through 23 and 26 through 35
T27S R20W Sections: 13, 24, 25, 35, and 36
T27S R22W Sections: 4 through 8, 17, 18, 19, 30,
31, and 32
T27S R23W Sections: 24, 25, and 36
T28S R19W Sections: 2 through 6, 10, and 11
T28S R20W Sections: 1 through 4, 9 through 12, 14,
15, 16, 21, 22, 23, and 26
through 35
T28S R21W Sections: 36
T28S R22W Sections: 6, 7, 17 through 20, 29, and 32
T28S R23W Sections: 1 and 12
T29S R18W Sections: 31 through 34
T29S R19W Sections: 27, 28, and 31 through 36
T29S R20W Sections: 3 through 6, 9, 10, 13 through
17, 20 through 29, 34, 35, and
36
T29S R21W Sections: 1 and 2
T29S R22W Sections: 6 and 7
T29S R23W Sections: 1 and 12
T30S R18W Sections: 3 through 6, 8, 9, 10, 16, 17,
and 20
T30S R19W Sections: 5 and 6
T30S R20W Sections: 1, 2, 3, 10, 11, 12, 14, 15,
22, 23, 26, 27, 34, and 35
T31S R19W Sections: 21, 28, 29, 30, 31, 32, and 33
T31S R20W Sections: 2, 11, 14, 22, 23, 26, 27, 35,
and 36
T32S R19W Sections: 4, 5, and 6
(All the above with reference to the Seward Meridian
Appendix A - Certificate No. 16
Revised June 22, 1998
Page 1 of 2
CHRONOLOGY:
Certificate Granted: 01/01/64
Partial Service Area Deletion: 09/08/67 (U-67-011)
Service Area Extension: 03/17/75 (U-75-008(1))
Service Area Extension: 10/23/84 (U-84-042(1))
Service Area Extension: 05/07/85 (U-84-042(2))
Service Area Extension: 08/12/96 (U-96-021(1))
Appendix A - Certificate No. 16
Revised June 22, 1998
Page 2 of 2
Exhibit A – Project Description
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
A-1
Draft
November, 5 2010
Exhibit A – Project Description
Exhibit A is presented herein that addresses the FERC regulation 18 CFR 4.51 (b).
(b) Exhibit A is a description of the project.
Kodiak Electric Association, Inc. (KEA or Licensee or Applicant) received an Order Issuing Major License
and Approving Joint Offer of Settlement (Order Issuing License) for the Terror Lake Project – FERC
Project No. 2743 (Project) issued by the Federal Energy Regulatory Commission (FERC or Commission)
on October 5, 1981 with an effective date of November 1, 1981. License amendments were issued in
2004 and 2008 for tailrace remediation and Terror River instream flow averaging, respectively.
The Project is a trans-basin diversion development, capturing water from the Terror River Basin drainage
and transporting it by means of an un-pressurized tunnel to a powerhouse located in the Kizhuyak River
Basin. The existing principal features of the Project include: a 156-foot-high rockfill dam with an asphaltic
concrete face constructed across the natural outlet of the existing Terror Lake; a reservoir with a surface
area of 108,000 acres at the normal maximum water surface elevation of 1,420 feet and 118,030 acre-
feet of usable storage between elevation 1,250 and 1,420 feet and 136,794 acre-feet of gross storage
capacity; 5 mile-long power tunnel; three additional diversion structures on tributaries of the Kizhuyak
River which provide additional flows; a 3,400-foot-long steel penstock; a powerhouse at elevation 115 feet
containing two 11.25 MW generating units with space for a third unit, and a valve house at the dam
containing a 10 kW generating unit; a 3,200 foot long, 75-foot wide, 1,500 foot long, tailrace channel
conveying flows from the powerhouse to the main stem of the Kizhuyak River; a 13.8/138kV switchyard; a
17.3 mile, 138kV transmission line from the powerhouse switchyard to a substation located on t U.S.
Coast Guard property near the City of Kodiak; and appurtenant facilities.
(1) The physical composition, dimensions, and general configuration of any dams, spillways, penstocks,
powerhouses, tailraces, or other structures, whether existing or proposed, to be included as part of the
project; NOTE: As advised by FERC Staff, the only proposed features associated with this Application for
Capacity Amendment are described below.
Proposed Modifications
The Licensee proposes to install an additional vertical shaft, 6 jet, 40.16 inch nominal diameter, Pelton
turbine in the empty bay, with rated head of 1,136 feet and rated discharge of 135 cfs, producing 11.25
MW at 0.90 power factor (12.5 MVA) (Third Unit).
The proposed Third Unit would require the addition of a new spiral case and associated concrete,
turbine-generator and associated concrete, governor, switchgear, controls, and step–up transformer.
Without exception, provisions were made for this equipment during original project design and
installation.
(2) The normal maximum surface area and normal maximum surface elevation (mean sea level), gross
storage capacity, and usable storage capacity of any impoundments to be included as part of the project;
No Changes to Impoundment
The proposed Third Unit would be installed in an existing empty bay in the powerhouse. There would be
no changes to the lake level or storage capacity, conveyances, or tailrace.
Exhibit A – Project Description
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
A-2
Draft
November, 5 2010
(3) The number, type, and rated capacity of any turbines or generators, whether existing or proposed, to
be included as part of the project; As noted above, FERC Staff directed that only the facilities to be
addressed in this Amendment Application are to be provided.
Proposed Third Unit
Proposed Unit 3 Turbine
Type Vertical 6-jet Pelton
Rated Head 1136 ft (346.3m)
Rated Power 11.25 MW
Rated Discharge 135 cfs (3.82 m3/s)
Speed 720 rpm
Runner Diameter 40.16 in (1020 mm)
Proposed Unit 3 Generator
Type Vertical synchronous, enclosed with air-to-water cooling
Rated Output 12.5 MVA
Power Factor 0.90
Speed 720 rpm
Voltage 13.8 kV
(4) The number, length, voltage, and interconnections of any primary transmission lines, whether existing
or proposed, to be included as part of the project (see 16 U.S.C. 796(11));
No Changes to Transmission Lines
There would be no changes to the existing 138 kV transmission line. The line was engineered and built
for the capacity of the Third Unit.
(5) The specifications of any additional mechanical, electrical, and transmission equipment appurtenant to
the project; and
Proposed Appurtenant Project Equipment
Proposed Excitation System
Type Static, Digital
Voltage Regulator Automatic, with power factor, VAR, voltage, and manual control modes, and
both locally and remotely adjustable set points
Power Supply
Transformer
Primary voltage of 13.8 kV, primary and secondary protection, and an
embedded RTD
Rectifier Full-wave bridge
Protection Field overvoltage, field overcurrent, field over temperature, generator
overvoltage, generator undervoltage, loss of sensing voltage, V/Hz, loss of
field, loss of field isolation module, microprocessor “watchdog”
Auxiliary Voltage 120 V ac, 125 V dc
Proposed Generator Circuit Breaker
Type Vacuum, drawout, metalclad
Rating 15 kV, 1200 A continuous, 20 kA interrupting
PT Yes for Synchronizing
CT Two sets, 800:5
Proposed Generator Step Up Transformer
Rating 10/13⅓ MVA, ONAN, ONAF, 65°C
Voltage 13.8 kV delta, 110 kV BIL, to 138 kV grounded wye, 550 kV BIL;
Exhibit A – Project Description
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
A-3
Draft
November, 5 2010
(6) All lands of the United States that are enclosed within the project boundary described under
paragraph (h) of this section (Exhibit G), identified and tabulated by legal subdivisions of a public land
survey of the affected area or, in the absence of a public land survey, by the best available legal
description. The tabulation must show the total acreage of the lands of the United States within the
project boundary.
No Changes to Project Boundary
There would be no changes to the existing project boundary. The project is contained in the existing
powerhouse and switchyard. Thus, no Exhibit G has been updated for this Application.
Exhibit B – Project Operation & Resource Utilization
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
B-1
Draft
November 5, 2010
Exhibit B – Project Operation & Resource Utilization
Exhibit B is presented herein and addresses the FERC regulation 18 CFR 4.51 (c).
(1) A statement whether operation of the powerplant will be manual or automatic, an estimate of the
annual plant factor, and a statement of how the project will be operated during adverse, mean, and high
water years;
No Changes to Project Operation
There would be no changes to the Project operations. The Project has personnel on site continuously
and the plant is controlled by the system dispatchers in KEA’s Dispatch Center, located within the City of
Kodiak.
Current Plant Factor Proposed Plant Factor
60% 40%
(i) The minimum, mean, and maximum recorded flows in cubic feet per second of the stream or other
body of water at the powerplant intake or point of diversion, with a specification of any adjustments made
for evaporation, leakage, minimum flow releases (including duration of releases), or other reductions in
available flow; monthly flow duration curves indicating the period of record and the gauging stations used
in deriving the curves; and a specification of the period of critical streamflow used to determine the
dependable capacity;
Terror Lake Inflow Histories
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
900.0
1-Jan 31-Jan 2-Mar 1-Apr 1-May 31-May 30-Jun 30-Jul 29-Aug 28-Sep 28-Oct 27-Nov 27-Deccfs1996
2003
Expected
Low
2004
2007
9 CFS, MIN
831 CFS, MAX
186 CFS, AVG
Exhibit B – Project Operation & Resource Utilization
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
B-2
Draft
November 5, 2010
(ii) An area-capacity curve showing the gross storage capacity and usable storage capacity of the
impoundment, with a rule curve showing the proposed operation of the impoundment and how the usable
storage capacity is to be utilized;
Area Capacity Curve
(iii) The estimated hydraulic capacity of the powerplant (minimum and maximum flow through the
powerplant) in cubic feet per second;
Storage vs. Elev
0
20,000
60,000
80,000
100,000
120,000
140,000
160,000
1,240 1,260 1,280 1,300 1,320 1,340 1,360 1,380 1,400 1,420
40,000 Storage (Acre-ft)Elevation (feet)
Modeled Reservoir Water Levels and Rule Curves
Wet Hydrologic Sequence - 2007
1280
1300
1320
1340
1360
1380
1400
1420
1440 2009-Jan-012009-Jan-312009-Mar-022009-Apr-022009-May-022009-Jun-022009-Jul-022009-Aug-012009-Sep-012009-Oct-012009-Nov-012009-Dec-012009-Dec-31DateWater Level (ft)0
100
200
300
400
500
600
700
800
900
Flow (cfs)Water Level (modeled)Min. Reservoir Level Max. Reservoir Level Reservoir Inflow
Exhibit B – Project Operation & Resource Utilization
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
B-3
Draft
November 5, 2010
Proposed Plant Hydraulic Capacity
Minimum Flows Maximum Flows
20 CFS (300 kW) 427 CFS (37 MW)
(iv) A tailwater rating curve;
Exhibit B – Project Operation & Resource Utilization
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
B-4
Draft
November 5, 2010
(3) A statement, with load curves and tabular data, if necessary, of the manner in which the power
generated at the project is to be utilized, including the amount of power to be used on-site, if any, the
amount of power to be sold, and the identity of any proposed purchasers; and
With the exception of station service and transmission losses, all Project power is sold to the
Cooperative’s members. The figure below shows how the proposed Third Unit’s energy would be utilized
KEA’’s proposed mix of Hydro, Wind and Diesel production.
Kodiak Electric Association - Simulated Energy Mix
3 Wind Turbines, 3 Hydro Turbines
July 1, 2009 to June 30, 2010
0
100
200
300
400
500
600 2009-Jul-012009-Jul-152009-Jul-292009-Aug-122009-Aug-262009-Sep-092009-Sep-232009-Oct-072009-Oct-212009-Nov-042009-Nov-182009-Dec-022009-Dec-162009-Dec-302010-Jan-132010-Jan-272010-Feb-102010-Feb-242010-Mar-102010-Mar-242010-Apr-072010-Apr-212010-May-052010-May-192010-Jun-022010-Jun-162010-Jun-30Energy Generation MWh1300
1320
1340
1360
1380
1400
1420
Reservoir Level, ft
Diesel
Hydro
Wind
Load
Modeled
WL
Exhibit B – Project Operation & Resource Utilization
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
B-5
Draft
November 5, 2010
Simulated Energy Mix at Terror Lake G.S.
6 Wind Turbines, 3 Hydro Turbines - 2009 Hydrology
0
100
200
300
400
500
600 2009-Jul-012009-Jul-152009-Jul-292009-Aug-122009-Aug-262009-Sep-092009-Sep-232009-Oct-072009-Oct-212009-Nov-042009-Nov-182009-Dec-022009-Dec-162009-Dec-302010-Jan-132010-Jan-272010-Feb-102010-Feb-242010-Mar-102010-Mar-242010-Apr-072010-Apr-212010-May-052010-May-192010-Jun-022010-Jun-162010-Jun-30Energy Generation MWh1300
1320
1340
1360
1380
1400
1420
Reservoir Level, ft
Diesel
Hydro
Wind
Load
Modeled
WL
(4) A statement of the applicant's plans, if any, for future development of the project or of any other
existing or proposed water power project on the stream or other body of water, indicating the approximate
location and estimated installed capacity of the proposed developments.
At this time, KEA has no plans for additional project developments.
Exhibit C – Construction Schedule
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
C-1
Draft
November 5, 2010
Exhibit C – Construction Schedule
Exhibit C is presented herein and addresses FERC regulation 18 CFR 4.51 (d).
IDTask NameDurationStartFinish1FERC License Amendment785 daysTue 12/1/09Mon 10/15/122Review licensing requirements25 daysTue 12/1/09Sat 1/2/103Application for Amendment333 daysFri 5/7/10Fri 7/22/114Pre-filing and Post-Isuance Consultation554 daysWed 9/1/10Mon 10/15/125Submit Draft Application for Amendment1 dayFri 11/5/10Fri 11/5/106Agency and Public Scoping Meeting1 dayTue 12/7/10Tue 12/7/107Draft Application Review by Agencies67 daysFri 11/5/10Mon 2/7/118Final Application for Amendment118 daysWed 2/9/11Fri 7/22/119Submit Final Appliction for Amendment0 daysFri 7/22/11Fri 7/22/1110FERC Application Processing261 daysMon 7/25/11Mon 7/23/1211License Amendment Issued (est.)0 daysMon 7/23/12Mon 7/23/121213Engineering847 daysTue 12/1/09Wed 1/9/1314Pre-feasibility study25 daysTue 12/1/09Sat 1/2/1015Feasibility study140 daysThu 4/1/10Mon 9/13/1016Detailed engineering425 daysThu 5/26/11Wed 1/9/1317Turbine and generator equipment165 daysThu 5/26/11Wed 1/11/1223Main transformer138 daysThu 1/12/12Mon 7/23/1229Contractor submittal review240 daysThu 2/9/12Wed 1/9/1330Civil design80 daysThu 3/22/12Wed 7/11/1231Electrical design80 daysThu 4/5/12Wed 7/25/1232Mechanical design80 daysThu 4/5/12Wed 7/25/1233Construction specification143 daysThu 6/14/12Mon 12/31/1234Prepare bid documents30 daysThu 6/14/12Wed 7/25/1235KEA review15 daysThu 7/26/12Wed 8/15/1236Finalize and issue for bidding10 daysThu 8/16/12Wed 8/29/1237Receive bids44 daysThu 8/30/12Tue 10/30/1238Review and award44 daysWed 10/31/12Mon 12/31/123940Equipment Procurement355 daysThu 1/12/12Wed 5/22/1341Turbine and generator equipment327 daysThu 1/12/12Fri 4/12/1349Main transformer217 daysTue 7/24/12Wed 5/22/135354Site Work138 daysMon 2/4/13Wed 8/14/1355Mobilization15 daysMon 2/4/13Fri 2/22/1356Install turb & gen embedded parts22 daysMon 2/25/13Tue 3/26/1357Concrete and curing27 daysWed 3/27/13Thu 5/2/1358Install turbine and gen remaining parts48 daysFri 5/3/13Tue 7/9/1359Install controls switchgear and misc systems38 daysFri 5/17/13Tue 7/9/1360Unit 3 turbine inlet valve operator20 daysWed 3/27/13Tue 4/23/1361Switchyard work36 daysThu 5/23/13Thu 7/11/1362Dry test of generating unit15 daysFri 7/12/13Thu 8/1/1363Plant outage for electrical interconnection4 daysFri 7/12/13Wed 7/17/1364Wet test20 daysThu 7/18/13Wed 8/14/1365Commissioning complete0 daysWed 8/14/13Wed 8/14/13SepNovJanMarMayJulSepNovJanMarMayJulSepNovJanMarMayJulSepNovJanMarMayJulSeper1st Quarter3rd Quarter1st Quarter3rd Quarter1st Quarter3rd Quarter1st Quarter3rd Quarter2010201120122013TaskProgressMilestoneSummaryRolled Up TaskRolled Up MilestoneRolled Up ProgressSplitExternal TasksProject SummaryGroup By SummaryDeadlineExhibit C Proposed Terror Lake Unit 3 Licensing and Engineering Schedule (Based on a 5 day work week)Page 1Terror Lake Unit 3Date: Tue 11/2/10
Exhibit D – Statement of Costs & Financing
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
D-1
Draft
November, 5 2010
Exhibit D – Statement of Costs & Financing
Exhibit D is presented herein that addresses the FERC regulation 18 CFR 4.51 (e).
(e) Exhibit D is a statement of costs and financing.
(1-3) Introductory Information
Kodiak Electric Association, Inc. (KEA) is applying for a new development proposal, namely the
installation of an additional 11.25 MW turbine-generator within an existing powerhouse building (Third
Unit). The Terror Lake Hydroelectric Project (Project) is licensed as FERC Project No. 2743; this
application is not for an initial license or new license.
(3)(i) The cost of any land or water rights necessary to the new development
Fortunately, the original engineers of the Project had the foresight to design the facility for the expansion
to three turbine-generator units. The powerhouse contains an empty bay for the proposed Third Unit. The
power tunnel, penstock, and tailrace are sized to accommodate a flow corresponding to the proposed
33.75 MW of installed capacity without modification. Installing and operating the Third Unit does not
involve modification to the lake level, tailrace, or the existing 138 kV transmission line. It does not involve
any new ground-disturbing activity or require any additional land or water rights. The established project
boundaries for the Terror Lake facility would not be changed. Therefore, there are no costs associated
with any land or water right necessary for this new development.
(3)(ii) The cost of the new development work
The total cost to purchase and install the Third Unit at the existing Terror Lake Hydroelectric Project is
estimated at $10,624,550, as itemized in the table below.
FERC Account Major Item Total Cost
330 Land and Land Rights $0
331 Structures and Improvements $730,000
332 Reservoirs, Dams and Waterways $0
333 Turbines and Generators $4,977,500
334 Accessory Electrical Equipment $502,000
335 Miscellaneous Power Plant Equipment $100,000
353 Switchyards $673,750
356 Overhead Conductors and Devices $20,000
366 Poles and Fixtures $0
Construction Subtotal $7,003,250
Construction Contingency of 20% $1,400,650
Direct Construction Cost $8,403,900
Licensing Cost $539,870
Engineering and Owner Administration $1,680,780
Total Construction Cost Estimate $10,624,550
Infrastructure support for construction, such as the construction camp with utilities, already exists at the
Project site. The Third Unit and its associated equipment would be transported to an existing jetty dock,
transported on an existing access road, stored in an existing warehouse, and installed in an existing
powerhouse building.
Exhibit D – Statement of Costs & Financing
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
D-2
Draft
November, 5 2010
(4)(i) Cost of capital (equity and debt)
KEA was recently awarded a New Clean Renewable Energy Bond (NCREB) to fund this project in
conjunction with additional wind energy installation at Pillar Mountain Wind Project Phase II. The NCREB
is estimated to charge a 1.5% interest rate for a 16 year term loan. The estimated annual principal and
interest payments for a full $10,624,550 capital cost NCREB would be $751,847.
(4)(ii) Local, state and Federal taxes
KEA is the sole owner of the Project, and is a generation, transmission and distribution not-for-profit rural
electric cooperative. As a 501(c)12 not-for-profit organization, KEA is exempt from local, state, and
federal taxes.
(4)(iii) Depreciation and amortization
The industry average annual depreciation rate applied to hydroelectric facilities is 2.00%; which equates
to a 50 year life of the facilities. When the total construction cost estimate ($10,624,550) is divided by a
50 year term, the annual depreciation expense of the Third Unit comes to $212,491.
The net present value (NPV) analysis presented below does not include this depreciation expense
because the principal payments on the NCREB are considered instead. Including both depreciation and
principal would result in duplicate capital expenses. The NCREB loan for $10,624,550 at a 1.5% interest
rate is utilized in the NPV amortized for 16 years, the estimated life of the loan.
(4)(iv) Operation and maintenance expenses
KEA’s annual operation and maintenance budget for each of the two existing units averages $124,000
each. This annual budget amount includes insurance, labor and materials, and the amortization of
periodic significant maintenance activities (e.g., needle-nozzle replacements, generator re-winding). No
additional personnel would be necessary to operate the Third Unit. Therefore, the total annual cost of
operating and maintaining the Third Unit is expected to be $124,000. KEA’s annual budget assumes a
maintenance cost inflation rate of 3%.
(4)(v) The estimated capital cost and estimated annual operation and maintenance expense of each
proposed environmental measure
There would be no construction in the tailrace or Kizhuyak River, nor would the operation of the Third Unit
affect the water quality in the tailrace or Kizhuyak River. The proposed construction would not disturb
normal activities of wildlife or their use of habitat. Any additional flow to the tailrace with all three turbines
running would not affect salmon spawning and rearing. No threatened or endangered species would be
affected. There would be no change in the facility’s aesthetic appearance, and there is no recreational
use at the site. Therefore, no proposed environmental measure costs are included in this proposal.
(5) Statement of the estimated annual value of project power
The estimated annual value of the power provided by the Third Unit takes into consideration: (a) the
higher efficiency of a modern turbine-generator unit, (b) the hydro generating redundancy provided by this
additional unit, and (c) the increased ability to support more wind energy in Kodiak. These benefits result
in a direct savings achieved by a significant reduction to KEA’s only other base-load generation option,
namely diesel.
(a) Higher efficiency of a modern turbine-generator unit
A new turbine-generator built according to modern, high-efficiency hydropower technology along with its
enhancement to plantwide operational efficiency is estimated to produce an additional 2,934,000 kWh per
year from the Project without any additional water resources. This additional hydro energy achieved
through the modern Third Unit efficiency and plantwide operational efficiency would directly displace
Exhibit D – Statement of Costs & Financing
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
D-3
Draft
November, 5 2010
206,620 gallons of diesel fuel that would otherwise be needed to generate that same amount of energy
(based on a diesel system efficiency of 14.2 kWh per gallon). Considering KEA’s historical average cost
of diesel fuel at $2.50 per gallon, the Third Unit would provide a direct savings of $516,549 in the first
year of operation. Further, when taking diesel engine maintenance cost into account, which in 2009
averaged 4.25¢ per kWh, the Third Unit would provide an additional savings of $124,695. Therefore, the
total savings provided by new third unit efficiency beginning in the first year of operation is estimated at
$641,244.
Considering an inflation rate of 3% for fuel and diesel engine maintenance costs, the total savings
provided by the additional kWh achieved through the Third Unit’s efficiency over a 25-year period could
reach $23.4 million.
(b) Hydro generating redundancy provided by this additional unit
The redundancy provided by an additional hydro turbine-generator allows KEA to continually utilize
hydropower to meet system loads while maintaining the other units. Typically, each turbine-generator
unit is taken offline for two weeks a year during periods of low system loads for routine planned
maintenance. If KEA takes a unit offline during when Terror Lake is full and spilling, KEA loses valuable
kWh down the spillway that must be made up with diesel-powered generation. The Third Unit would
allow the Project to continuously utilize its water resources and meet system loads without diesel when
Unit 1 or 2 is offline.
To quantify the savings provided by this redundancy, consider the loss of the kWh produced by one hydro
turbine-generator when it is offline for a two-week period during a spill year. Actual production of the
Project for the period July 1, 2009 through June 30, 2010 was 117,428,000 kWh; therefore, two weeks of
production for each unit is approximately 2,258,231 kWh (117,428,000 kWh annually, divided by 52
weeks in a year, divided by two units, times two weeks). Planned maintenance events would likely be
scheduled during periods of low loads; therefore a more realistic estimate of the lost kWh would be for
only 60% of the unit’s average production, or 1,354,938 kWh. Based on historical spill frequency, it is
reasonable to expect Terror Lake to spill once every five years. For the purpose of this annualized
analysis, we can apply a 20% probability factor that the lost kWh due to planned outages would occur
during a lake spill year. Therefore, the lost kWh of one offline hydro turbine-generator during planned
maintenance can be estimated to be 270,988 kWh annually. Since both turbines would require annual
maintenance, the probable loss of hydropower production due to lake spill is then doubled to 541,976
kWh each year. Based on these assumptions, it is estimated that KEA currently spends approximately
$95,418 a year in diesel fuel (based on a diesel system efficiency of 14.2 kWh per gallon at a cost of
$2.50 per gallon) and $23,034 a year in additional diesel engine maintenance (based on 4.25¢ per
kilowatt-hour) that could be saved with hydropower redundancy provided by a third unit.
The savings provided by a redundant third unit are also significant in the case where a major unit failure
unexpectedly takes a generating unit down for a substantial amount of time. To quantify the savings
provided by a third unit’s redundancy during an unplanned extended outage, we can apply a 1%
probability factor to the lost kWh for one unit offline for six weeks (1,174,280 kWh annually, divided by 52
weeks in a year, divided by two units, times six weeks outage for repair). The amount of hydropower lost
in this scenario is estimated at 67,747 kWh. For KEA to supply this lost power with diesel-powered
generation, it would cost $11,927 in diesel fuel and $2,879 in maintenance.
Considering no inflation for the first year, the annual savings provided by the third unit’s redundancy is
estimated at $133,259. Considering an inflation rate of 3% for fuel and diesel engine maintenance costs,
the total savings provided by the third unit’s hydropower redundancy over a 25-year period could reach
$4.9 million.
(c) Increased ability to support more wind energy in Kodiak
The greatest benefit provided by the Third Unit is that the Project would become a larger platform for
supporting new sources of variable wind energy. An energy storage system is necessary for the
variability of wind energy, and the Terror Lake reservoir acts like a battery to store the wind energy
generated by KEA’s Pillar Mountain Wind Project. The reliability of wind energy on a minute-to-minute
Exhibit D – Statement of Costs & Financing
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
D-4
Draft
November, 5 2010
basis is uncertain because winds could be gusting one minute and then suddenly calm. This
unpredictability requires the Project to have sufficient base load capacity available to meet Kodiak’s
growing load requirements and back-up KEA’s variable wind energy. Currently, the two hydro turbine-
generators at the Project are unable to keep up with Kodiak’s peak loads of 25 MW, and KEA continues
to rely on diesel-powered base load generation to meet these growing loads and back up the wind
energy. The limited generating capacity of a two-turbine configuration at the Project led to the summer
2010 situation where the Terror Lake reservoir was spilling water while KEA’s diesel engines were
running. A solution to this dilemma is to increase the hydropower capacity with the Third Unit to optimize
the synergistic relationship of KEA’s hydro-wind generation system.
Under KEA’s current configuration, the contribution of wind energy resources has reached its maximum.
Without the expanded hydro capacity, the addition of future renewable energy on KEA’s system is not
feasible. An additional 11.25 MW of hydropower provided by the Third Unit would supply the necessary
capacity, energy storage, and frequency control to support and optimize additional wind energy
resources. KEA is already permitted for a 4.5 MW wind energy expansion to its existing Pillar Mountain
Wind Project. The Third Unit would allow Pillar Mountain Wind Project Phase II to be installed.
To quantify the economic benefit of increasing the renewable energy platform made possible by the Third
Unit, consider the cost of diesel fuel that would be displaced by an additional 4.5 MW of installed wind
energy with Pillar Mountain Phase II, and the cost of constructing these additional wind turbines. Pillar
Mountain Wind Project Phase I wind turbines have successfully operated for over a year. Phase II would
consist of three additional GE 1.5 SLE wind turbines, similar to those installed in Phase I; therefore actual
costs and energy production established with Phase I can be applied to Phase II. The construction cost
for Phase II is estimated at $23 million and is funded by the recently allocated NCREB (1.5% in interest
over a 16 year term). The annual maintenance costs for the additional three wind turbines are estimated
at $250,000, inflated by 3% annually for the 20 year wind turbine life span. Based on those assumptions,
the first year cost of installing Phase II is estimated at $1,877,597. Phase I produced 13.3 million kWh in
its first year of operation, and the same energy production would be expected for Phase II. For KEA to
supply an equivalent amount of power with diesel-powered generation, it would cost $2,341,549 in diesel
fuel and $565,250 in diesel engine maintenance. Therefore, within the first year of Pillar Mountain Wind
Project Phase II operation, KEA would save $1,029,203 by displacing diesel-powered generation with
wind energy. This would only be possible by installing the Third Unit.
Considering an inflation rate of 3% for fuel and maintenance costs, the total savings provided by
displacing diesel-powered generation with additional wind energy over a 20-year period could reach
$45.3 million.
Summary of Value
Taken together, the total savings provided by the Third Unit within its first year of operation is estimated at
$927,859. Note that this estimate assumes that the Pillar Mountain Wind Project Phase II expansion and
Terror Lake Hydroelectric Project’s Third Unit begin operation at the same time.
Debt cost -$751,847 Added efficiency of the new hydro turbine-
generator unit $641,244
Redundancy of additional hydro turbine-
generator during maintenance and repair $133,259
Maintenance cost -$124,000 Additional wind energy made possible with
expanded hydro capacity $1,029,203
Total Cost in Year One -$875,847 Total Savings in Year One $1,803,706
NET SAVINGS = $927,859
All of these savings have a significant cumulative effect over time. To quantify the long-term benefits of
the Third Unit, a NPV analysis can be calculated for the total cost to install and maintain this hydro
turbine, along with the total savings provided by the benefits of the Third Unit over the 25 years remaining
Exhibit D – Statement of Costs & Financing
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
D-5
Draft
November, 5 2010
on the current FERC license. A discount rate of 5% is applied in this NPV analysis because this is the
typical rate of interest charged by the Rural Utility Service; a source of funds that KEA could consistently
utilize for cash flow if necessary. Also included in this NPV calculation is the consideration that the Third
Unit provides additional savings for KEA’s system-wide distribution infrastructure by stabilizing the
island’s grid frequency.
In KEA’s integrated wind-hydro generation system, hydropower controls the system-wide frequency for
the isolated electrical grid. Variable wind energy provided by Pillar Mountain can introduce extreme
frequency fluctuations, and the hydro base load provided by the Project is able to adjust in real-time to
keep power quality on the grid stable. By running three 11.25 MW hydro units in parallel, rather than just
two 11.25 MW hydro units, the Project would gain an enhanced ability to keep KEA’s grid stable and
ensure reliable power delivery to our membership.
The two existing turbines at Terror Lake cannot tolerate more than approximately 3 MW of instability on
the grid without tripping. This imposes a 3 MW limit on the system’s distribution feeders. Taking future
projections of load growth into account, KEA estimates that there will be five feeders on the KEA system
that will likely exceed this 3 MW limit in the near future. Without a third turbine at Terror Lake, the
overloading problem on these five feeders will need to be resolved, potentially by building a new 10
megavolt-ampere substation and reconfiguring the distribution system through a series of switches to
move loads to different feeders. Expanding the Project’s capacity by 50% would potentially raise the limit
on the system’s distribution feeders to 4.5 MW. This postpones the impact of future load growth on
KEA’s distribution system by allowing more capacity on the existing distribution lines.
To quantify the economic benefit of increased grid stability provided by the Third Unit, consider that KEA
can avoid spending $7.55 million in substation construction costs in year 5 of the NPV analysis by
postponing the substation construction to year 15. While inflation may increase the cost of substation
construction out in the future, delaying construction for another 15 years provides additional savings to
the KEA membership because of the NPV discount rate.
When all of these quantifiable direct and indirect factors are considered, the NPV of the Third Unit is
$30,077,210. This is a tremendous savings for KEA’s membership.
The other unquantifiable benefits of this project, such as the stabilized cost of power, energy
independence, reduction in greenhouse gas production and the marketing opportunities that wind
generation provides to Kodiak’s business community, are not included in this economic analysis;
however, it should be noted that those aspects of the project also increase the value of the Third Unit for
the long-term sustainable health of Kodiak.
(6) Statement specifying sources and extent of financing and annual revenues to meet costs identified in
paragraphs (e)(3) and (4) discussed above
To meet the cost of this new development work as described above, KEA was recently awarded a
NCREB to fund the purchase and installation of the Third Unit in conjunction with additional wind energy
installation through Pillar Mountain Wind Project Phase II.
KEA will also utilize grant funding to help offset debt costs. KEA applied for $4 million in grant funding
through the Alaska Energy Authority’s (AEA) Renewable Energy Fund program, which limits individual
project funding at $4 million over five rounds of grant allocations. Of this $4 million grant request, KEA
was allocated $500,000 in matching grant funds from the AEA Renewable Energy Fund Round II to
complete the permitting phases of the project, and $248,160 in matching grant funds from Round III to
complete the final engineering design and contractor bidding documents. KEA recently submitted an
application for the remaining $3.25 million in Round IV grant funds to purchase and install the Third Unit.
The Round IV application is currently under review and its funding approval is expected to be announced
in mid-2011. Grant funding was not included in the presented debt cost or NPV calculations; however it
should be noted that these grant funds and the potential for additional grant funding support through the
Exhibit D – Statement of Costs & Financing
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
D-6
Draft
November, 5 2010
AEA Renewable Energy Fund Program or direct capital project support by the Alaska State Legislature
would reduce the NCREB debt cost for the project.
KEA is held to specific financial standards with its equity levels and Times Interest Earnings Ratios (TIER)
as a condition of borrowing capacity with the Rural Utility Service. KEA is a self-regulated utility that has
the ability to adjust rates to ensure that revenue will continue to meet cost if necessary; however the
benefits that the Third Unit provides to the KEA membership through the reduction in costly diesel-
powered generation is justification for this project. Once the capital expenditure is paid, the long-term
savings provided by the Third Unit are expected to reduce KEA’s overall revenue requirements.
(7) Costs to develop the license application
The estimated cost to develop the FERC license application is $539,870. This cost is included in the total
construction cost estimate of $10,624,550.
(8) On-peak and off-peak values of project power
KEA is the only electric utility in Kodiak and there would be no power purchase agreements. The power
generated from the Third Unit would go straight into the KEA grid, and the project savings would also go
straight to the members of the cooperative. The community would experience a lower cost of power from
decreased diesel fuel consumption. The value of the project is described in further detail above.
(9) Estimated average annual increase or decrease in project generation
The existing bay for the additional Third Unit within the Project powerhouse was dimensioned during the
Project’s original construction to accommodate a turbine-generator identical to Unit 1 and Unit 2; however
design advances over the past 30 years provide additional efficiencies for The Third Unit’s generation
output. The average annual increase to the Project’s generation is estimated to be 2,934,000 kWh due
to the increased efficiencies of the Third Unit’s modern turbine-generator technology and its overall
enhancement to plantwide operations. As described in the above annual value and NPV discussion, the
additional hydro energy achieved through the modern Third Unit efficiency and platwide operational
efficiency would directly displace 206,620 gallons of diesel fuel that would otherwise be needed to
generate that same amount of energy.
The value of the Project’s power due to the change in the Project’s operation is estimated to significantly
increase. The Third Unit does not require any change to the Project boundary, water rights, or minimum
flow release to the Terror River; however, the Project’s value to KEA is greatly enhanced by its ability to
optimize KEA’s renewable wind-hydro generation system and minimize KEA’s dependency on diesel-
powered generation. As described in the above annual value and NPV discussion, total savings provided
by the Third Unit within its first year of operation is estimated at $927,859 and the NPV of the Third Unit’s
operation over a 25-year period is estimated at $30,077,210.
Exhibit F – Project Drawings
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
F-1
Draft
November 5, 2010
Exhibit F – Project Drawings
Only those project exhibit drawings that contain information pertaining to this amendment have been
included, as follows:
Exhibit F-1 Terror Lake Powerhouse Plan View
Exhibit F-2 Terror Lake Powerhouse Section E
Exhibit F-3 Terror Lake Powerhouse Section D
Exhibit F-4 Terror Lake Powerhouse Sections A & B
Exhibit F-5 Terror Lake Power Plant Switch Yard Plan View
Exhibit F-6 Terror Lake Hydroelectric Project System One Line Diagram
These exhibits are protected as Critical Energy Infrastructure Information (CEII) under 18 CFR 388.112
and 388.113 and, as such, are filed separately from this document.
Procedures for obtaining access to Critical Energy Infrastructure Information (CEII) may be found at 18
CFR 388.113. Requests for access to CEII should be made to the Commission's CEII Coordinator.
PRELIMINARY DRAFT ENVIRONMENTAL ASSESSMENT
DRAFT APPLICATION FOR CAPACITY AMENDMENT TO
LICENSE
TERROR LAKE HYDROELECTRIC PROJECT
FERC NO. 2743
'
Project Licensee:
Kodiak Electric Association, Inc.
Kodiak, Alaska
November 2010
PDEA
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
ii
Draft
November 5, 2010
Executive Summary
The Terror Lake Hydroelectric Project, FERC Project No. 2743 (Project) owned and operated by the
Kodiak Electric Association, Inc. (KEA) is located in north central Kodiak Island in the Kodiak Island
Borough approximately 25 miles southwest of the City of Kodiak. KEA originally received the license on
October 5, 1981, with an effective date of November 1, 1981. The Project commenced commercial
operation in 1985.
The vision of KEA is to endeavor to produce 95% of energy sales with cost effective renewable power
solutions by the year 2020. Optimizing wind and hydro resources is the solution to achieve this vision.
KEA proposes to expand the hydro-generating capacity of the Project as the next step in bringing this
vision to reality. Without expanding the Project’s capacity with a Third Unit, the likelihood of achieving
KEA’s renewable energy vision is doubtful.
In support of this vision, KEA herein provides its Draft Application for Capacity Amendment to and
existing license (Draft Amendment Application) for pre-filing review and comment pursuant to applicable
Federal Energy Regulatory Commission (FERC) regulations and requirements of the National
Environmental Policy Act (NEPA). The purpose of this Draft Amendment Application, including the
Preliminary Draft Environmental Assessment (PDEA) is to provide the Commission, Federal and State
resource agencies, Indian tribes, Alaska Native Corporations and other local governments, Non-
Governmental Organizations, KEA’s cooperative members, and other persons and organizations with
information pertinent to the Project and the proposed installation of the Third Unit.
KEA provides electricity to approximately 5,800 meters on Kodiak Island, Alaska, in a service area that
includes the region in and around the City of Kodiak, the U.S. Coast Guard Base, Bells Flats, Chiniak,
Pasagshak, and Port Lions. The Project is the primary source of KEA’s energy supply and is the
cornerstone to KEA’s renewable wind-hydro energy generation system.
The Project was originally designed and constructed to accommodate three turbine-generator units. The
original engineers of the Project had the foresight to design the Project with an empty bay in the
powerhouse assuming that the additional Third Unit would be needed as load demand grew. KEA’s load
has now grown to the point that this added capacity is required.
The proposed 11.25 megawatt (MW) Third Unit, as presented in this Draft Amendment Application, would
be installed in the empty bay in the powerhouse. The existing power tunnel, penstock, and tailrace are
sized to accommodate a flow corresponding to 37 MW of capacity without modification, which is well
above the combined existing installed capacity of 22.5 MW and the proposed 11.25 MW Third Unit
installation.
The Third Unit would bring many additional benefits to the KEA system. First, it would bring added
generation from Terror Lake through the efficiency of a new unit. It would also bring redundancy to the
existing two units to allow for better availability of Terror Lake generation during planned and unplanned
maintenance on the existing units. With the addition of renewable hydro capacity KEA would be able to
supply renewably generated electricity during system peaks without depending on diesel fuel. It would
also allow for greater grid stability by operating all three hydro units in parallel. This greater grid stability
would save system distribution costs and provide a larger platform for KEA to add more wind power on its
islanded electric grid.
Given that the Project was designed and constructed with provisions for the Third Unit, there would be
minimal environmental impact on the area. Installation of the Third Unit would use existing project
PDEA
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
iii
Draft
November 5, 2010
facilities, including the existing powerhouse and existing substation. KEA has studied the proposal
thoroughly and verified that all Project features, from the tunnel to the tailrace, were designed to operate
with three hydro units. Installing and operating the Third Unit does not involve modification to the Terror
Lake level, tailrace, or the existing 138 kilovolt transmission line. This installation does not involve any
new ground-disturbing activity or require any additional land or water rights. KEA provides herein
provisions to address any environmental effects and believes that this proposed addition of the Third Unit
would be a relatively seamless installation. KEA has planned adequate contingencies in case an
unexpected abnormal situation arises.
KEA has a wonderful opportunity to achieve its renewable energy vision for the Kodiak community. The
pathway to achieve this goal is through the installation of the Third Unit. It would provide the platform of
base load capacity to optimize KEA’s wind-hydro generation system, allow future expansion of KEA’s
renewable portfolio and generate over 95% of our community’s electric needs with clean renewable
energy.
Benefits of installing the Third Unit include: significantly enhancing the stability of KEA’s electrical
infrastructure; providing the foundation for integrating additional wind energy onto KEA’s grid; and
reducing dependence on diesel fuel by supplying backup capacity to meet peak loads and outages of the
existing two units. The Third Unit is the cornerstone necessary for KEA to achieve its vision statement:
“Endeavor to produce 95% of energy sales with cost effective renewable power solutions by the year
2020.”
PDEA
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
iv
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Table of Contents
Definitions of Terms, Acronyms, and Abbreviations.............................................................................vi
1. Introduction...........................................................................................................................................1
1.1 Description of the Application.......................................................................................................2
1.2 Purpose of Action and Need for Power ........................................................................................2
1.3 Statutory and Regulatory Requirements ......................................................................................5
1.4 Public Review and Comment........................................................................................................7
1.5 Figures..........................................................................................................................................7
2. Proposed Action and Alternatives....................................................................................................10
2.1 Alternatives.................................................................................................................................10
2.2 Proposed Action..........................................................................................................................10
2.2.1 License Proposal and Description of Existing Facilities....................................................10
2.2.2 Project Safety....................................................................................................................11
2.2.3 Existing Project Operation ................................................................................................11
2.2.4 Existing Environmental Measures.....................................................................................12
2.3 Other Alternatives Considered but Eliminated from Further Analysis........................................13
2.4 No-Action Alternative..................................................................................................................13
3. Environmental Analysis.....................................................................................................................14
3.1 General Description of the Area Affected by the Proposed Action.............................................14
3.1.1 Climate..............................................................................................................................16
3.1.2 Air Quality and Noise ........................................................................................................16
3.1.3 Topography.......................................................................................................................17
3.1.4 Watershed.........................................................................................................................17
3.1.5 Aquatic and Terrestrial Species........................................................................................19
3.1.6 Vegetative Cover...............................................................................................................21
3.1.7 Land Development and Recreation ..................................................................................22
3.1.8 Population.........................................................................................................................22
3.2 Scope of Cumulative Effects Analysis........................................................................................22
3.3 Proposed Action and Action Alternatives ...................................................................................22
3.3.1 Geology and Soils.............................................................................................................22
3.3.2 Water Use and Quality......................................................................................................22
3.3.3 Aquatic Resources............................................................................................................23
3.3.4 Terrestrial Resources........................................................................................................25
3.3.5 Threatened and Endangered Species & Other Protected Species..................................26
3.3.6 Recreation and Land Use .................................................................................................27
3.3.7 Cultural Resources............................................................................................................27
3.3.8 Aesthetic Resources.........................................................................................................28
3.3.9 Socioeconomic Resources ...............................................................................................29
4. Developmental Analysis ....................................................................................................................33
4.1 Power and Economic Benefits of the Project .............................................................................33
4.1.1 Higher efficiency of a modern turbine-generator unit........................................................33
4.1.2 Hydro generating redundancy provided by additional unit................................................33
4.1.3 Increased ability to support more wind energy in Kodiak .................................................34
4.1.4 Power and Economic Benefits in First Year of Operation.................................................35
4.1.5 Power and Economic Benefits for Remaining Licensing Period.......................................35
4.1.6 Operation of Project with Third Unit..................................................................................36
4.2 Comparison of Alternatives.........................................................................................................36
4.2.1 KEA's Proposal .................................................................................................................36
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4.2.2 No-Action Alternative ........................................................................................................37
4.3 Cost of Environmental Measures................................................................................................37
4.4 Greenhouse Gas Reduction.......................................................................................................37
5. Consistency with Comprehensive Plans .........................................................................................39
6. Literature Cited...................................................................................................................................40
7. List of Preparers.................................................................................................................................43
8. List of Recipients................................................................................................................................44
List of Tables
Table 1-1 Statutory and Regulatory Requirements.................................................................................5
Table 1-2 List of Figures Depicting Area that Would be Affected by Installation of the Third Unit..........7
Table 2-1 Existing Environmental Measures – Summary of KEA Standard Terms and Conditions.....12
Table 3-1 Overview of Issues and Clarifying Statements and Proposed Measures to Avoid Adverse
Environmental Effects ...........................................................................................................14
Table 4-1 Summary of the Power and Economic Benefits in First Year of Operation ..........................35
Table 4-2 Summary of Greenhouse Gas Reduction Provided by Third Unit ........................................37
Table 5-1 List of Comprehensive Plans.................................................................................................39
List of Appendices
Appendix A Figures
Appendix B Project Chronology
Appendix C Record of Consultations
Appendix D Scoping Document No. 1
Appendix E Approvals, Measures, Permits, and Plans
E1 – Approvals
E2 – Measures
E3 – Permits
E4 – Plans
Appendix F Photographs
Appendix G Technical Reports
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Definitions of Terms, Acronyms, and Abbreviations
TERM DEFINITION
ACHP Advisory Council on Historic Preservation
ACMP Alaska Coastal Management Plan
ADEC Alaska Department of Environmental Conservation
ADF&G Alaska Department of Fish and Game
ADNR Alaska Department of Natural Resources
AEA Alaska Energy Authority
Amendment Application Application for Capacity Amendment to License
ANCSA Alaska Native Claims Settlement Act
ANILCA Alaska National Interest Lands Conservation Act
APDES Alaska Pollutant Discharge Elimination System
BLM Bureau of Land Management
CAA Clean Air Act
CEII Critical Energy Infrastructure Information
CFR Code of Federal Regulations
cfs Cubic feet per second
CO Carbon Monoxide
CO2 Carbon Dioxide
CPQ Coastal Project Questionnaire
CWA Clean Water Act
CZMA Coastal Zone Management Act
DCOM Division of Coastal and Ocean Management
DHAC Division of Hydro Administration and Compliance
Draft Amendment Application Draft Application for Capacity Amendment to License
EFH Essential fish habitat
EPA Environmental Protection Agency
EPACT Energy Policy Act of 2005
ESA Environmental Species Act
FDPPA Four Dam Pool Power Agency
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TERM DEFINITION
FEIS Final Environmental Impact Statement
FERC Federal Energy Regulatory Commission
Fish Timing Window May 15 – July 15 – period when juveniles have out-migrated and adults
have not yet returned to spawn
FPA Federal Power Act
FWCA Fish and Wildlife Coordination Act
fps Feet per second
FWS Fish and Wildlife Service (Also referred to as USFWS)
GWHr Gigawatt Hours
HPMP Historic Properties Management Plan
KEA Kodiak Electric Association, Inc.
KLC Kodiak Launch Complex
kV Kilovolt
MSL Mean sea level
MVA Megavolt-ampere
MW Megawatts
NAAQS National Ambient Air Quality Standards
NCREB New Clean Renewable Energy Bond
NEPA National Environmental Policy Act
NHPA National Historic Preservation Act
NLUR Northern Land Use Research, Inc.
NMFS National Marine Fisheries Service
NO2 Nitrogen Dioxide
NPV Net Present Value
NRHP National Register of Historic Places
NWI National Wetland Inventory
OHW Ordinary High Water
PA Programmatic Agreement
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TERM DEFINITION
PAD Pre-Application Document
PDEA Preliminary Draft Environmental Assessment
PRO Portland Regional Office (FERC)
PM10 Particulate matter smaller than 10 micrometers
Project Terror Lake Project - FERC No. 2743
PSD Prevention of Significant Deterioration
Refuge Kodiak National Wildlife Refuge
SHPO State Historic Preservation Office
SIP State Implementation Plan
SO2 Sulphur Dioxide
SPCC Spill Prevention Control and Countermeasures
Tailrace Realignment 2005 Terror Lake Hydroplant Tailrace Realignment & Associated Work
Project
Third Unit Refers to the proposed additional 11.25 MW turbine-generator unit that
would be installed in the empty bay in the existing powerhouse.
USACE United States Army Corps of Engineers
USFS United States Forest Service
USGS United States Geologic Survey
USFWS United States Fish and Wildlife Service
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1. Introduction
Kodiak Electric Association, Inc. (KEA) received an Order Issuing Major License and Approving Joint
Offer of Settlement for the Terror Lake Hydroelectric Project – FERC Project No. 2743 (Project) on
October 5, 1981 with an effective date of November 1, 1981. The Project commenced commercial
operation in 1985. License amendments were issued in 2004 for tailrace remediation and in 2008
regarding Terror River instream flow averaging.
The City of Kodiak is located on the northeastern tip of Kodiak Island. The Project powerhouse is located
in the north central part of Kodiak Island, in Kodiak Island Borough, approximately 25 miles southwest of
the City of Kodiak. Figure PDEA-1 presents a Project Location Map and Figure PDEA-2 a map showing
KEA's service area (Appendix A: Figures). While portions of the facility are located within the Kodiak
National Wildlife Refuge (Refuge); project features that would be used during installation of the Third Unit
are located outside the boundary of the Refuge.
The Project is a trans-basin development, capturing water from the Terror River drainage and
transporting it by means of an un-pressurized tunnel to a powerhouse located in the Kizhuyak River Basin
(Figure PDEA-3). Water is stored at the existing Terror Lake dam. Activities and actions proposed in this
Draft Application for Capacity Amendment to License (Draft Amendment Application) would not affect
current operation of the dam, reservoir, or the power tunnel. There would be no change to the release to
the Terror River from Terror Lake reservoir as required pursuant to Article 43 of the Project license.
The existing powerhouse is located on the west bank of the Kizhuyak River, presently housing two 11.25
megawatts (MW) generating units with vertical shaft 6-jet Pelton turbines and synchronous generators,
with an installed capacity of 22.5 MW. Figure PDEA-4 depicts an aerial view of the existing powerhouse
and nearby facilities that would be used during installation of the Third Unit.
Access to the powerhouse, switchyard, and other Project features that would be utilized during installation
of the Third Unit would be by floatplane, helicopter, or boat. Transportation of the equipment and other
materials to be used during construction would use the existing dock/jetty and access road (Figure PDEA-
7 for an aerial view of the Kizhuyak River and Access Road).
KEA proposes in this Draft Amendment Application to add a Third Unit that would occupy an existing
empty bay in the powerhouse (Figure PDEA-16) and would bring the installed capacity to 33.75 MW. The
existing switchyard is located in close proximity to the powerhouse and the Third Unit transformer would
occupy and existing space originally designed for this purpose (Figure PDEA-17). There would be no
requirement to expand the Project transmission line as it was originally sized for the additional Third Unit.
The Project was originally planned to be developed in stages with the possibility of increasing the
capability of the Project as the demand for electricity increased. The original engineers of the Project had
the foresight to design the facility for the expansion to three turbines to accommodate future load growth.
The original design assumed the day would arrive when additional capacity would be required, and that
day has arrived. KEA’s growing electrical demand has surpassed the current generating capacity of the
combination of the Project and the existing 4.5 MW of installed wind turbines.
Benefits of installing the Third Unit include: significantly enhancing the stability of KEA’s electrical
infrastructure; providing the foundation for integrating additional wind energy onto KEA’s grid; and
reducing dependence on diesel fuel by supplying backup capacity to meet peak loads and outages of the
existing two units. The Third Unit is the cornerstone necessary for KEA to achieve its vision statement:
“Endeavor to produce 95% of energy sales with cost effective renewable power solutions
by the year 2020.”
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1.1 Description of the Application
KEA herein provides its Draft Amendment Application for pre-filing review and comment pursuant to the
applicable Federal Energy Regulatory Commission’s (Commission or FERC) regulations. This Draft
Amendment Application proposes installation of the Third Unit in the above-mentioned empty bay and a
transformer within a space reserved for that purpose in the existing switchyard. This Draft Amendment
Application is classified as a Capacity Amendment pursuant to the Commissions’ regulations at 18 CFR
4.201(b) wherein any application to amend a license that involves additional capacity not previously
authorized, and that would increase the total installed name-plate capacity of 2 MW or more is classified
as a Capacity Amendment.
Information presented in this Draft Amendment Application is commensurate with the scope of the
proposed action. This Draft Amendment Application includes Exhibits as required by the Commission’s
regulation at 18 CFR 4.51 and 4.41(g).
Exhibit A – Project Description
Exhibit B – Project Operation
Exhibit C – Project Schedule
Exhibit D – Costs and Financing
Exhibit E – Environmental Report
In place of the Environmental Exhibit E as required at 18 CFR 4.51(f), KEA provides herein a
Preliminary Draft Environmental Assessment (PDEA) that addresses the requirements of Exhibit
E and the Commissions’ regulations implementing the requirements of environmental documents
pursuant to the National Environmental Policy Act (NEPA), 18 CFR 380 et seq.
Exhibit F – Design Drawings and Supporting Report
This information is filed separately pursuant to the requirements governing Critical Energy
Infrastructure Information. Figures showing the existing powerhouse with the existing empty bay
for the Third Unit and space for the additional transformer in the existing switchyard are provided
in the PDEA (Figures PDEA-16, -17, & -18).
Exhibit G – Project Boundary
Because KEA does not propose to modify the Project Boundary, nor add any additional structures
within the boundary, KEA is not including this Exhibit, as it is not applicable to this proposal. KEA
does provide a Project Location Map (Figure PDEA-1) and several aerial photos with notations
showing existing Project features to assist the reviewer (Figures PDEA-4, -7, & -8).
The purpose of this Draft Amendment Application, including the PDEA is to provide the Commission,
Federal and State resource agencies, Indian tribes, Alaska Native Corporations and other organizations,
local governments, Non-Governmental Organizations, KEA's cooperative members interested in this
proceeding, and other persons and organizations with information pertaining to the Project and the
proposed installation of the Third Unit. Pursuant to the FERC regulations, KEA is conducting pre-
application consultation with the above named entities and will host a Joint Agency/Public Meeting on
December 7, 2010.
KEA proposes to provide its Draft Amendment Application for review and comment on November 5, 2010
and to file its Final Amendment Application with the Commission by July 2011.
1.2 Purpose of Action and Need for Power
KEA provides electricity to approximately 5,800 meters on Kodiak Island, Alaska in a service area that
includes the region in and around the City of Kodiak, the U.S. Coast Guard Base, Bells Flats, Chiniak,
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Pasagshak, and Port Lions. Figure PDEA-2 depicts a schematic of KEA’s service area. The Project is
the primary source of KEA's energy supply, and is the cornerstone to KEA's renewable wind-hydro energy
generation system. The original construction of the Project powerhouse included three turbine-generator
bays. The Terror Lake Project began commercial operation in December 1985 with two turbine generator
units. This Draft Amendment Application addresses installation of the Third Unit in the existing empty bay
and Figure PDEA-16 presents a plan view of the powerhouse.
KEA's growing electrical demand has now exceeded the renewable energy provided by the combination
of the existing installed capacity at the Terror Lake Hydroelectric Project and KEA’s Pillar Mountain Wind
Project. Expanding the Project's capacity by 50% with installation of the Third Unit would significantly
enhance the stability of KEA's electrical infrastructure, provide the foundation for integrating additional
wind energy onto the KEA grid, and reduce dependence on diesel fuel by supplying ample backup
capacity for peak loads and outages of the existing hydro turbine-generator units.
The proposed 11.25 MW Third Unit as presented in this Draft Amendment Application would be installed
in the existing powerhouse empty bay. The existing power tunnel, penstock, and tailrace are sized to
accommodate a flow corresponding to 37 MW of capacity without modification, which is well above the
combined existing Project installed capacity of 22.5 MW and the proposed 11.25 MW proposed Third Unit
installation. Installing and operating the Third Unit does not involve modification to the lake level, tailrace,
or the existing 138 kilovolt (kV) transmission line. It does not involve any new ground-disturbing activity
or require any additional land or water rights. The established project boundaries for the Terror Lake
facility would not be changed.
KEA's system operates in a remote island environment with no interconnections to outside sources of
power. KEA maintains a significant installed capacity of back-up diesel-generation as an emergency
precaution to operate the isolated system in case the two turbines of the Project are unavailable. Under
the current two turbine configuration at the Project, KEA is relying on this back-up diesel-generation to
meet growing electrical demand. Over the past decade, peak loads on the system have averaged 24
MW; peak load in 2010 reached 26 MW. Diesel generation is currently required for these periods of high
demand when the Project cannot supply ample hydropower. The current approach of burning diesel fuel
to supplement KEA’s capacity is not economical over the long term and adds to the amount of
greenhouse gas produced in meeting the community’s energy needs.
The redundancy provided by the proposed Third Unit would also allow KEA to continually utilize
hydropower to meet system loads while maintaining the other two units. Typically, each turbine-generator
unit is taken offline for two weeks a year during periods of low system loads for routine planned
maintenance. If KEA takes a unit offline when Terror Lake is full and spilling, KEA loses valuable
kilowatt-hours (kWh) down the spillway that must be made up with diesel-powered generation. The Third
Unit would allow the Project to continuously utilize its water resources and meet system loads without
diesel when either Unit 1 or Unit 2 is offline.
In KEA’s integrated wind-hydro generation system, hydropower controls KEA’s system-wide frequency for
the isolated electrical grid. Variable wind energy provided by Pillar Mountain Wind Project can introduce
extreme frequency fluctuations, and the hydro base load provided by the Project is able to adjust in real-
time to keep power quality on the grid stable. By running three 11.25 MW hydro units in parallel, rather
than just two 11.25 MW hydro units, the Project would gain an enhanced ability to keep KEA’s grid stable
and ensure reliable power delivery to its membership.
The two existing hydro turbine-generator units at Terror Lake cannot tolerate more than approximately 3
megawatts of instability on the grid without tripping. This imposes a 3 MW limit on the system’s
distribution feeders. Taking future projections of load growth into account, KEA estimates that there
would be five feeders on the KEA system that would likely exceed this 3 MW limit in the near future.
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Absent the proposed Third Unit at Terror Lake, the overloading problem on these five feeders would need
to be resolved, potentially by building a new 10 megavolt-ampere (MVA) substation and reconfiguring the
distribution system through a series of switches to move loads to different feeders. Expanding the
Project’s capacity by 50% would potentially raise the limit on the system’s distribution feeders to 4.5 MW,
and postpone the impact of future load growth on KEA’s distribution system by allowing more capacity on
the existing distribution lines without an additional substation.
A significant benefit provided by the proposed Third Unit is that the Project would become a larger
platform for supporting additional sources of wind energy. An energy storage system is necessary for the
variability of wind energy, and the Terror Lake reservoir acts like a battery to store the wind energy
generated by the Pillar Mountain Wind Project. The reliability of wind energy on a minute-to-minute basis
is uncertain because winds could be gusting one minute and then suddenly calm. This unpredictability
requires the Project to have sufficient base load capacity available to meet KEA’s growing load
requirements and back-up KEA’s variable wind energy. As stated earlier, the two hydro turbine-
generators at the Project are unable to keep up with KEA’s peak loads, and KEA continues to rely on
diesel-powered base load generation to meet these growing loads and back up the wind energy. The
limited generating capacity of a two-turbine configuration at the Project led to the summer 2010 situation
where the Terror Lake reservoir was spilling water while KEA’s diesel units were running. A solution to
this dilemma is to increase the hydropower capacity with the Third Unit to optimize the synergistic
relationship of KEA’s hydro-wind generation system.
Under KEA’s current configuration, the contribution of wind energy resources has reached its maximum.
Absent installation of the Third Unit, addition of future renewable energy on KEA’s system is not feasible.
The proposed additional 11.25 MW of hydropower provided by the Third Unit would supply the necessary
capacity, energy storage, and frequency control to support and optimize additional wind energy
resources. KEA is already permitted for a 4.5 MW wind energy expansion to its existing Pillar Mountain
Wind Project. The Third Unit would facilitate installation of the 4.5 MW Pillar Mountain Wind Project
Phase II.
In conclusion, KEA states that expanding the existing 22.5 MW installed capacity to 33.75 MW by
installing the 11.25 MW Third Unit would: (1) cover peak loads; (2) provide outage backup for the existing
two units; (3) improve KEA’s system stability; (4) provide backup capacity to support the existing 4.5 MW
Pillar Mountain Wind Farm and enable KEA to install additional wind turbines on Pillar Mountain; and (5)
provide the benefit of reducing emissions from KEA’s diesel capacity during periods of high demand.
Installing the Third Unit does not require any change to the Project boundary, water rights, or minimum
flow release to the Terror River; however, the Project’s value to KEA is greatly enhanced by its ability to
optimize KEA’s renewable wind-hydro generation system and minimize KEA’s dependency on diesel-
powered generation.
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1.3 Statutory and Regulatory Requirements
Table 1-1 Statutory and Regulatory Requirements
REQUIREMENT AGENCY STATUS
Federal Power Act (FPA) – Section
4(e)1 FERC is authorized to issue
licenses.
FERC KEA is engaged in
consultation with FERC Staff.
FPA as modified by the Alternative
Conditions under the Section 241
Energy Policy Act of 2005(EPACT).
National Marine Fisheries Service
(NMFS), US Fish and Wildlife
Service (USFWS).2
Fish & Wildlife
FPA – Section 10(j)
State and Federal Fish & Wildlife
Agencies are authorized to
recommend conditions to protect
those resources.
Alaska Department of Fish &
Game (ADF&G)
USFWS
NMFS
This Preliminary Application
Document (PAD)/ Draft
PDEA provides the listed
agencies with information that
can be used by those
agencies to identify any
measures that would be
presented under Section 10(j)
of the FPA.
FPA – Section 18 – requires FERC
to include in a license any fishways
prescribed by the USFWS and/or
NMFS
USFWS and/or NMFS This PAD/Draft PDEA
provides the listed agencies
with information that can be
used by those agencies to
identify any fishways
prescribed under Section 18
of the FPA.
Endangered Species Act (ESA).
Under Section 7 of the ESA the
FERC is required to confer with the
USFWS or NMFS to determine
whether a proposed project would
affect candidate or listed species.
USFWS and/or NMFS KEA will request designation
as the non-federal
representative to conduct
informal consultation with the
USFWS & NMFS
Fish and Wildlife Coordination Act
(FWCA) requires FERC to consult
with the ADF&G, USFWS, & NMFS.
See also Section discussion of
Section 10(j).
ADF&G, USFWS and NMFS KEA will request designation
as the non-federal
representative to conduct
informal consultation with the
NMFS
This PAD/Draft PDEA
provides the listed agencies
with information that can be
used by those agencies to
1 Section 4(e) of the FPA authorizes the Commission to issue licenses to citizens of the United States, or to any association of such
citizens, or to any corporation organized under the laws of the United States or any State thereof, or to any State or municipality for
the purposes of developing non-federal hydropower projects. NOTE: There are no Federal lands proposed for use under KEA’s
proposal. All lands that would be occupied by Project facilities would be located on lands owned and managed by the State of
Alaska Department of Natural Resources and Kodiak Island Borough.
2 Under regulations developed by the Departments of Commerce, Interior, and Agriculture to implement section 241 of EPACT, any
party to a Commission license proceeding may: (1) request a trial-type hearing on “disputed issues of material fact;” and (2) propose
alternative conditions that the Departments must accept unless inconsistent with certain energy and environmental criteria.
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REQUIREMENT AGENCY STATUS
identify any measures that
would be presented under the
FWCA and/or Section 10(j) of
the FPA.
Magnuson – Stevens Fishery
Conservation and Management Act
– Section 305 (b)(2) requires FERC
to consult with the NMFS regarding
any adverse affects on essential fish
habitat (EFH).
NMFS This PAD/Draft PDEA
provides the NMFS with
information that can be used
to identify any measures that
would be presented under
Section 305 of the Magnuson
– Stevens Act.
Other Requirements
Clean Water Act (CWA) – Section
401 Water Quality Certification.
Pursuant to State law, the State of
Alaska does not issue 401
Certifications for hydropower
projects.
Alaska Department of
Environmental Conservation
(ADEC)
KEA will submit a request for
401 Certification and request
response from ADEC
regarding no action from the
State.
CWA – Section 404 – Alaska
Pollutant Discharge Elimination
System (APDES) and Section 404
discharge to navigable waters or
wetlands. Applicants for license are
required to prepare required plans.
ADEC regarding APDES
during construction.
US Army Corps of Engineers
(USACE) regarding
construction affecting
jurisdictional wetlands.
KEA will consult with ADEC
and USACE regarding this
proposed amendment. There
is no proposed construction
affecting navigable waters or
wetlands.
Coastal Zone Management Act
(CZMA) – Section 307 authorizes
States to review a proposed federal
action affecting resources within the
Coastal Zone and defined in a
Alaska Coastal Management Plan
(ACMP), The State may recommend
denial if a proposed action is not
“consistent” with the CZMA and an
authorized State ACMP. Applicants
for license are required to prepare a
Coastal Project Questionnaire
(CPQ).
Alaska Department of Natural
Resources – Division of
Coastal and Ocean
Management (ADNR-DCOM)
KEA will prepare the required
Coastal Project
Questionnaire in consultation
with ADNR-DCOM and other
affected agencies. A draft
CPQ will be presented in the
Draft Application for License
for review and comment and
the final CPQ will be provided
in the Final Application for
License.
National Historic Preservation Act
(NHPA) – Section 106 of the NHPA
requires the FERC to take into
account the effect of license
issuance on cultural, archaeological,
and historic properties. Applicants
for license are required to conduct
studies to identify presence of such
properties and prepare required
documents: Programmatic
Agreement (PA), Historic Properties
Management Plan (HPMP) and
other required plans.
Licensees are required to stop work
should unidentified properties be
discovered during installation.
Alaska Department of Natural
Resources – State Historic
Preservation Officer (SHPO)
National Advisory Council
KEA will request designation
as non-federal representative
to conduct day to day
consultation. KEA is engaged
in consultation with the
SHPO.
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REQUIREMENT AGENCY STATUS
National Wilderness Act – there are
no candidate or designated
wilderness areas in the vicinity of the
proposed project.
US Forest Service (USFS)
and/or US Bureau of Land
Management (BLM)
No action required
National Wild and Scenic Rivers Act
– there are no candidate or
designated river segments in the
vicinity of the proposed project.
USFS and or BLM No action required
State of Alaska
Alaska National Interests Lands
Conservation Act (ANILCA)
Information to be provided in
draft application
Information to be provided in
draft application
Alaska Native Claims Settlement Act
(ANCSA)
Information to be provided in
draft application
Information to be provided in
draft application
1.4 Public Review and Comment
The PDEA will be provided to appropriate resource agencies and filed with the FERC 30 days before the
joint public/agency meeting on December 7, 2010. The public review period will be for a period of 60
days after the joint public/agency meeting on December 7, 2010. After the public review and comment
period, any comments received will be incorporated into this document.
1.5 Figures
To facilitate understanding of this Draft Amendment Application, KEA provides in this section a Project
Location Map. The Figures listed in the table below are provided in Appendix A; photos of the
powerhouse interior and other views are provided in Appendix F.
Table 1-2 List of Figures Depicting Area that would be Affected by Installation of the Third Unit
FIGURE NO. DESCRIPTION NOTES
PDEA-1 Project Location Map Provides reviewer with a map of Kodiak Island
and location of Kodiak and Terror Lake
Powerhouse
PDEA-2 KEA Service Area Provides reviewer with a schematic depicting
KEA’s service area, transmission line connecting
load centers, “cannery row”, USCG Station, Pillar
Mountain Wind Farm, and Diesel generation units.
PDEA-3 Conceptual Project Layout Provides reviewer with a schematic portrayal of
the relationships between major Project features.
Presents an Artist rendition of the major Project
features superimposed on an aerial “photo”
showing topography.
PDEA-4 Aerial View of Powerhouse
Area
Provides reviewer with an aerial photo labeled to
show existing facilities – project features and
areas that will be involved in installation of the
Third Unit.
PDEA-5 View of Powerhouse from
Downstream Side
Provides reviewer with a photo showing the
existing empty bay where the Third Unit is
proposed to be installed.
PDEA-6 Section through Powerhouse Provides reviewer with a schematic image of the
water passage from the penstock through the
turbine to the tailrace.
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PDEA-7 Aerial View of Kizhuyak
River and Access Road
Provides reviewer of an aerial photo with the
location of the existing dock and jetty and access
road that would be utilized during construction.
Also provides a view of the Kizhuyak River as it
makes its way to salt water.
PDEA-8 Aerial View of Dock and
Partial Access Road
Provides reviewer of an aerial photo showing the
dock and partial access road.
PDEA-9 Wetlands Delineation of
Access Road and Dock
Provides aerial view of identified wetlands by
USFWS near the access road and dock.
PDEA-10 Wetlands Delineation of
Powerhouse Area
Provides aerial view of identified wetlands by
USFWS near the powerhouse area.
PDEA-11 Recreation Sites Near
Proposed Project
Map depicting existing recreation sites on Kodiak
Island. Map courtesy of ADNR.
PDEA-12 Existing Recreation - Closer
View
Map depicting existing recreation sites with a
closer view of sites near Kodiak. Map courtesy of
ADNR.
PDEA-13 Land Ownership Map Provides the reviewer with a map on US Geologic
Survey (USGS) Quadrangle Kodiak C-3 Showing
Land Ownership
PDEA-14 Tailwater Rating Curve Provides reviewer with curve showing relationship
between depth and flow of water in tailrace.
PDEA-15 Schematic Diagram of Water
Diversions Associated with
Project
Provides reviewer with a schematic diagram
showing the Terror River System, the diversions,
and the Kizhuyak River. This Amendment
Application affects the area from the powerhouse
and tailrace to the Kizhuyak River.
PDEA-16 Powerhouse Plan View
Showing Existing &
Proposed Turbine/Generator
Units
Provides reviewer with a plan view of the existing
powerhouse showing the existing and proposed
units.
PDEA-17 Switchyard Plan View Provides the reviewer with a plan view of the
existing switchyard showing existing and
proposed transformers.
PDEA-18 Project Substation One Line
Diagram
Provides the reviewer with a schematic of the
additional Third Unit and the existing units.
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Terror Lake Project FERC No. 2743
Capacity Application for Amendment – Third Unit
Project Location Map
Figure PDEA - 1
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2. Proposed Action and Alternatives
2.1 Alternatives
The Third Unit is the most feasible and cost-effective approach to supplying dispatchable base load
power in Kodiak. While the increased efficiency of a new Third Unit would generate some additional
kilowatt-hours from the Project, the primary benefit of the Third Unit is not this additional energy but rather
the stable platform it provides for the other, more variable renewable energy sources on KEA’s grid.
KEA continues to examine the potential for new renewable energy resource development such as wind,
run-of-the-river, wave and tidal; yet without adequate back-up capacity, KEA’s isolated grid system
cannot withstand the electric swings of these intermittent forms of energy. KEA is currently focused on
expanding the Pillar Mountain Wind Project with its Phase II installation because this would the most cost-
effective and timely option for utilizing Kodiak’s wind energy resource. The wind on Pillar Mountain is a
Class 7 superb energy resource, and the Phase II wind turbine sites are already permitted for installation.
However, wind energy introduces spikes in power generation and requires dispatchable capacity for grid
frequency support.
Diesel-powered capacity is KEA’s current option for supplying dispatchable base load when system-wide
loads exceed 20 MW. Continued dependence on barged-in diesel fuel to supply back-up capacity for
variable wind energy is not reasonable, both due to its instability in price and the rising cost of managing
emissions under new air quality and greenhouse gas regulatory programs. By contrast, hydropower
provides emission-free, dispatchable base load capacity with clean, abundant and renewable local
resources.
Alternative options for supplying dispatchable base load power would either be new hydropower facilities
or new thermal generation powered by natural gas or coal. There are no local sources of natural gas or
coal on Kodiak Island, and it would not be feasible to import natural gas or coal to Kodiak due to
transportation logistics and its high cost. Further, the air quality and greenhouse gas issues associated
with burning natural gas and coal make this generation source a less attractive option. There are
abundant hydro resources on Kodiak Island and the potential for developing these resources may be
technically-viable; however, constructing a new hydropower facility is not as effective or timely as
installing the Third Unit in the existing Project powerhouse.
KEA’s island system is a unique electrical grid with limited generation options for meeting future energy
requirements. KEA examined the grid support benefits provided by the Third Unit and has verified that
the Third Unit would support more wind on KEA’s grid. Without the Third Unit at Terror Lake, it is unlikely
that KEA could find an effective way to operate Pillar Mountain Wind Project Phase II. Therefore, KEA
can either meet Kodiak’s growing load with 1) an optimized wind-hydro generation system made possible
by the Third Unit and its stable platform for the Pillar Mountain Wind Project Phase II expansion, or 2)
continued dependence on diesel-powered generation.
KEA is committed to supplying the Kodiak community with sustainable sources of renewable energy and
reducing its dependence on costly fossil fuels. The next step for reaching this vision is to install the Third
Unit in the Project powerhouse.
2.2 Proposed Action
2.2.1 License Proposal and Description of Existing Facilities
As discussed in Section 1 above, the existing Project is a trans-basin diversion development, capturing
water from the Terror River drainage and transporting it by means of an un-pressurized tunnel to a
powerhouse located in the Kizhuyak River Basin. Project facilities that would be involved in the
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installation of the Third Unit include the powerhouse, fuel storage area, electrical substation, maintenance
shop, warehouse, incinerator, dock, access road, and areas that would be used for lay-down and
contractor housing (Figure PDEA-4).
KEA proposes to install an additional vertical shaft, 6 jet, 40.16 inch nominal diameter, Pelton turbine in
the empty bay in the powerhouse (Third Unit), with rated head of 1,136 feet and rated discharge of 135
cubic feet per second (cfs), producing 11.25 MW at 0.90 power factor (12.5 MVA); and a new transformer
in the existing switchyard. Appendix F contains a series of photographs that depict the current conditions
inside the powerhouse. Figure PDEA-16 provides a plan view of the existing powerhouse showing the
existing and proposed units; and Figure PDEA-17 provides a plan view of the existing switchyard showing
existing and proposed transformers.
Installation of the proposed Third Unit would require the following: addition of a new spiral case and
associated concrete; turbine/generator and associated concrete; and governor, switchgear, controls, and
step–up transformer. Without exception, provisions were made for installing this equipment during project
design and construction. There would be no change to: the lake level, storage capacity, or release to the
Terror River; water conveyances; or the tailrace. All work associated with installation of the Third Unit in
the powerhouse and a new transformer in the switchyard would involve existing project facilities (Figures
PDEA-4, 7, and 8).
The Third Unit allows the capacity of the Pillar Mountain Wind Project to be increased by installation of a
second set of three 1.5 MW wind turbines to add an additional 4.5 MW to KEA’s system. Until wind
production can be increased, the additional turbine would increase the Terror Lake output by about 3
gigawatt hours (GWHrs) or 2.5% by eliminating the need to start diesels for high system demand or hydro
maintenance.
2.2.2 Project Safety
The Project has been operating for 25 years under the terms and conditions of the existing license and
during this time, Commission staff has conducted operational inspections focusing on the continued
safety of the structures, identification of unauthorized modifications, efficiency, and safety of operations,
compliance with terms of the license and proper maintenance. In addition, the Project has been
inspected and evaluated every 5 years by an independent consultant, the most recent occurred in August
2010, and a consultant’s safety report is presently under preparation and will be filed by December 31,
2010. KEA is in full compliance with all measures under Part 12 of the Commission’s dam safety
regulations.
2.2.3 Existing Project Operation
There would be no changes to current Project operations. The Project has personnel on site continuously
and the plant is controlled by the KEA system dispatchers in the City of Kodiak. Exhibit B, Project
Operations, provides information regarding the Terror Lake inflow histories with an Area Capacity Curve
that shows the gross storage capacity and usable storage capacity of the reservoir with a rule curve
showing the operation of the impoundment and how usable storage capacity is utilized. KEA states that
the current operation of the reservoir would not be altered with this proposed Draft Amendment
Application. Plant hydraulic capacity is: Minimum Flows 20 cfs (300 kW), and Maximum Flows 427 cfs (37
MW). Installation of the Third Unit would capture flow when otherwise the reservoir would be spilling,
which historically is a 5 year frequency period. At this time, KEA has no plans for additional project
developments.
Figure PDEA-6 provides the reviewer with a schematic image of the water passage from the penstock
through the turbine to the tailrace and also Figure PDEA-3 provides a schematic portrayal of relationships
between major Project features.
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2.2.4 Existing Environmental Measures
KEA employs standard Contract Terms and Conditions: Special Provisions Related to Environmental
Protection for their Contractors, subcontractors, and suppliers to advise them that they shall comply with
all environmental protection requirements while on Project Lands. A copy of these conditions is included
in Appendix E-2 while a summary of these requirements is provided in Table 2-1 below.
Table 2-1 Existing Environmental Measures – Summary of KEA Standard Terms and Conditions
SECTION DESCRIPTION
Contractor Use of
Project Facilities
Terror Lake facilities to be used only in activities directly associated with
Project O&M. Contractor personnel to confine activities to Project Area
relevant to their work, including contractor staging area and lodging facilities
provided by KEA. No travel on Project roads or trails not associated with
assigned work.
Contractor personnel not allowed to use the Project Area for recreational
purposes.
Contractor shall ensure that all survey monuments etc. are protected.
Contractor to advise KEA if any archaeological materials or sites are
discovered during the course of work.
Equipment & Vehicle
Operation
No motorized wheeled access to any road on Project Lands other than
official use vehicles. Speed limit in the Powerhouse/Housing area is 10 mph;
speed limit on access roads is 35 mph.
To prevent spread of non-native species, equipment & vehicles are to be
cleaned prior to delivery on Project lands.
No equipment or vehicles may be operated below a water body’s ordinary
high water mark.
Refueling of equipment of storage of petroleum products may not occur
within 100 feet of a water body’s high-water line.
Fuel & Chemicals Contractor responsible for transport, hauling, and control of their petroleum
based products, chemicals, and flammable liquid products on site in
accordance with all applicable regulations.
Contractor shall provide KEA with a copy of a job-specific SPCC plan that
complies with 40 CFR Section 112 prior to bringing any fuel on site.
Contractor to maintain accurate accounting and product information for fuels
and hazardous materials delivered to, stored at, and used on the Project
Site.
Disposal of Wastes All putrescible wastes and other burnable garbage shall be incinerated in
accordance with KEA policies at the Project incinerator and stored in closed
buildings or bear-proof enclosure/containers prior to incineration. Non-
burnable or hazardous or toxic waste products to be shipped off site for
disposal in an appropriate authorized waste disposal facility.
Contractor shall prevent entrance or accidental spillage of material or
wastes into waterbodies.
Erosion and
Sedimentation Control
Work shall be conducted in a manner consistent with erosion and sediment
control best management practices.
Contractor is responsible and shall comply with the Plan developed by KEA.
Wildlife & Landscape Encounters with wildlife may occur on Project lands. Animals are not to be
harmed in any way; neither is feeding of wildlife allowed.
Stipulations regarding bears have been agreed between KEA and the
USFWS, ADF&G, and Afognak Native Corporation and shall apply.
Contractor and employees are required to participate in a Bear Safety
Orientation and to comply with all requirements.
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2.3 Other Alternatives Considered but Eliminated from Further Analysis
There are no other reasonable alternatives to accomplish the stated purpose of installing the Third Unit.
2.4 No-Action Alternative
Under the no-action alternative, the Commission would deny the proposed installation of the Third Unit.
The Project would continue to operate under the conditions of the existing license.
However, the no-action alternative would impair the reliability of the major power source to KEA and its
members. Absent installation of the Third Unit KEA would, in addition to continuing to experience system-
wide grid stability issues, be prevented from installing additional wind turbines at the Pillar Mountain Wind
Project. Denial of this Draft Amendment Application would require KEA to continue to burn fossil fuel in
its diesel units with the consequences of continued air emissions and exposure to KEA members of the
high cost associated with diesel generation.
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3. Environmental Analysis
Information provided within this section is based on KEA’s understanding of the resources and the
proposed avoidance and protection measures that would be implemented during installation of the Third
Unit.
Figures PDEA-4, PDEA-7, and PDEA-8 provide an orientation to the area that would be affected by this
Draft Amendment Application. Additional figures that would be helpful to the reviewer are included in
Appendix A and a comprehensive photo exhibit is provided in Appendix F.
Following the Joint Agency/Public Meeting on December 7, 2010, and comments received during the
period of public notice of provision of this Draft Amendment Application, KEA will revisit and revise the
following discussion, as necessary.
Table 3-1 provides an overview of the resource issues identified to date and provides clarifying
statements regarding whether a particular resource issue would be affected. The table also provides
proposed measures that KEA would implement to avoid any adverse environmental effects during
installation of the Third Unit and related activities.
Table 3-1 Overview of Issues and Clarifying Statements & Proposed Measures to Avoid Adverse
Environmental Effects
RESOURCE ISSUE CLARIFYING STATEMENTS &
PROPOSED MEASURES TO AVOID ADVERSE ENVIRONMENTAL EFFECTS
Protected Lands While portions of the Terror Lake Project are located within the Kodiak National
Wildlife Refuge, the area that would be affected by the proposed Draft
Amendment Application is outside of the boundary of the Refuge. Activities
associated with installation of the Third Unit would occur within the existing
powerhouse and switchyard, and would utilize other existing Project facilities and
previously disturbed developed areas used by KEA for maintenance, repair, and
other activities associated with the operation of the Project.
Reservoir Operation Installation of the Third Unit would not affect operation of the reservoir or the
Refuge, and there would be no effect on the release to the Terror River as
prescribed in Article 43.
“Work in the Wet” There would be no work conducted below the ordinary high water (OHW) level of
the Kizhuyak River.
To the extent practicable, work would be accomplished within the “fish timing
window,” May 15 – July 15, the period when the juveniles have out-migrated, and
the adults have returned to spawn. Should work affecting the tailrace or the
Kizhuyak River occur within this timeframe, KEA would implement measures to
avoid any adverse environmental effects.
Use of fuel, etc. Fuel, lubricants, or other hazardous substances shall not be stored below the
OHW.
Lands No additional lands would be required to accomplish installation of the Third Unit;
therefore, there is no change to the licensed Project boundary.
Access during
Installation
Access to the powerhouse and environs is by floatplane, boat, or by helicopter.
3.1 General Description of the Area Affected by the Proposed Action
Kodiak Island (aka: "the emerald isle"), located in the Gulf of Alaska, is the largest island in Alaska and is
the second largest island in the US. It is 252 air miles south of Anchorage, Alaska (a 45-minute flight)
and is a 4-hour flight from Seattle, Washington. The largest city on Kodiak Island is the City of Kodiak
which lies near the northeastern tip of Kodiak Island approximately 57.78889° North Latitude and
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152.40190° West Longitude (Sec. 32, T027S, R019W, Seward Meridian). The City of Kodiak is located in
the Kodiak Recording District as well as in the Kodiak Island Borough. The Terror Lake Hydroelectric
Project is located approximately 25 air miles southwest of the City. The Project area encompasses 3.5
sq. miles of land and 1.4 sq. miles of water. The Project powerhouse and substation is located at
approximately 57.68605˚North Latitude and 152.89498˚ West Longitude. Kodiak Island contains the
Kodiak National Wildlife Refuge (Refuge) which encompasses nearly 1.9 million acres on Kodiak and
Afognak Islands.
There would be no effect on the Refuge. Figure PDEA-4 provides an aerial photo labeled with existing
lands, waters, and facilities involved in the installation of the Third Unit. As shown in Figure PDEA-13, the
powerhouse area is outside the boundary of the Refuge.
Activities associated with installation of the Third Unit would occur within the existing powerhouse and
switchyard, and would utilize other Project facilities and previously disturbed developed areas used by
KEA for maintenance, repair and other activities related to Project operation. Addition of the Third Unit
would not affect operation of the reservoir and there would be no effect on the release of water to the
Terror River as prescribed in license Article 43 (Figures PDEA-16 and -17).
There would be no work conducted below the OHW level of the Kizhuyak River. Fuel, lubricants, or other
hazardous substances shall not be stored below the OHW. Any out-of-doors activities required to
accomplish installation of the Third Unit would occur during the “fish-timing window”, May 15 – July 15.
Should there be a requirement to “work in the wet”, for example should personnel need to stand in the
tailrace during installation, KEA would implement measures to avoid any adverse effects. Please see
KEA’s standard terms and conditions at Appendix E-2 Measures.
There would be no additional lands or waters affected by this Draft Amendment Application. No
additional lands would be required and therefore, there is no change to the licensed Project boundary.
Access to the powerhouse and environs is by float plane or boat to the existing dock/jetty or by helicopter
(Figure PDEA-4 and 7).
Project features are described below and corresponding photos are in Appendix F.
Project powerhouse and turbine/generator units: The existing powerhouse is located on the west bank of
the Kizhuyak River, approximately 25 miles southwest of the City of Kodiak. The Project was constructed
in 1984 with three turbine bays: two installed 11.25 MW turbine generator units and the original
construction provided an empty bay for a future Third Unit. There would be no enlargement of the existing
powerhouse. The existing empty bay has primary concrete in place; the power manifold is installed; and
the turbine inlet valve body is in place. Installation of the Third Unit would enable more efficient use of
water. The existing generators are driven by vertical shaft Pelton impulse turbines located in runner
rooms below the generators and the runner rooms discharge into the tailrace through rectangular gated
orifices. Figure PDEA-5 shows the existing empty bay where the Third Unit would be installed; and,
Figure PDEA-6 provides a schematic image of the water passage from the penstock through the turbine
to the tailrace.
Project tailrace: The tailrace was realigned and lengthened in 2003 to prevent incursion of water from
Kizhuyak River and Camp Creek into the tailrace and to establish the tailrace operating water surface at
an elevation higher than the Kizhuyak River flood stage. The original tailrace was designed to handle the
discharge of three units. Recently performed hydraulic analysis of the realigned tailrace showed that the
tailrace hydraulic characteristics meet criteria for continued use of the tailrace for salmon access and
spawning (Hatch, 2010).
Project switchyard: The switchyard is located near the powerhouse and a new transformer would be
installed within the footprint of the switchyard.
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Dock & jetty: KEA maintains the dock and jetty area, part of the original project construction and it would
be used to accommodate delivery of equipment and material during installation of the Third Unit. Access
to the dock is by floatplane or boat. Material would be offloaded at the dock and jetty area and trucked to
the powerhouse using the existing access road.
Access road: KEA maintains the access road from the dock/jetty to the powerhouse and other KEA-
owned facilities.
Construction Personnel Housing: The Project contains a fully-functioning single-family home for a small-
sized construction crew, as well as a contractor camp site. Should additional housing be required, the
existing KEA contractor camp site includes hook-ups for electricity, potable water, and sewer.
Warehouse: Certain construction material would be housed within KEA’s existing warehouse located in
close proximity to the powerhouse.
3.1.1 Climate
The climate of the Kodiak region is dominated by a strong marine influence that produces frequent cloudy
skies, moderately heavy precipitation, and cool temperatures. The waters of the North Pacific Ocean
provide moisture for cloudiness and precipitation, as well as heat that maintains a mild climate year
round.
In general, temperature patterns are characterized by cool summers and, compared to the rest of south
central Alaska, warm winters. The range between mean annual maximum and mean annual minimum
temperatures is small throughout the region. The average summer maximum temperatures occur in July
or August and range from 14 to 16 degrees Celsius. Coldest average winter minimum temperatures drop
to -5 to -7 degrees Celsius in December.
Average temperature differences between air and water are greatest during fall and winter when the air is
as much as 4 degrees C colder than the water. This unstable condition results in air near the water
surface being warmed, maintaining clouds at a higher level than during spring and summer months when
the air is warmer than the water.
Available data show that annual amounts of precipitation vary as much as 190 cm over the island, from
58 cm at Larsen Bay on the northwest side of the island, to 249 cm at Shearwater Bay on the southeast
side of the island. Precipitation during periods of 24 hours or less can be heavy enough to cause
occasional local flooding. February is the month with the highest storm frequency and the greatest
intensity of the Aleutian Low (a persistent low pressure in the outer Aleutian Islands area), and July is the
month with the lowest frequency and least intensity of storms.
The above text is primarily excerpted from AEIDC, 1979.
3.1.2 Air Quality and Noise
3.1.2.1 Air Quality
Alaska is a State Implementation Plan (SIP) approved state with jurisdiction over the national air quality
standards required by the Clean Air Act (CAA). The ADEC Air Permit Program has classified the air
quality surrounding the Project area as in attainment or unclassified with respect to the National Ambient
Air Quality Standards (NAAQS) for particulate matter smaller than 10-micrometers (PM10), sulphur dioxide
(SO2), nitrogen dioxide (NO2) and carbon monoxide (CO). Federal Prevention of Significant Deterioration
(PSD) and Alaska air quality regulations designate the Project area as a Class II area.
As a result of the climatic conditions and the remote character of the Project, the ambient air quality is
excellent and well within the State standards (FERC, 1981).
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3.1.2.2 Noise
There are no noise monitoring data available and no monitoring is currently being collected. Due to the
remote site and the lack of development, there is no “noise pollution within the Project area (FERC,
1981).
3.1.3 Topography
Kodiak Island is located near the southwest end of the Pacific Border Ranges. The island is rugged and
mountainous, and peaks commonly rise to more than 3,000 feet in altitude. The island’s topography has
been modified by glaciations, which produced deep, steep-sided, flat-floored, U-shaped valleys. The
drowned lower parts of some of these valleys form the numerous inlets and bays that indent the island’s
coastline. The higher peaks and the island have sharp-crested ridges and peaks. The numerous deep,
straight valleys and fiords, which dissect the mountains of Kodiak Island, often combine with other erosion
factors to form prominent topographic lineaments whose location and orientation are controlled by the
faulting, foliation, and jointing of the bedrock. The powerhouse is located on the western edge of the
broad, flat floor of the steep-sided Kizhuyak Valley (FERC, 1981).
3.1.4 Watershed
3.1.4.1 General Description
The Project is a trans-basin diversion project. Water from the Terror Lake drainage basin is diverted into
the Terror Lake power tunnel to supply the project powerhouse. In addition, water from a portion of the
upper Kizhuyak River drainage is diverted into the power tunnel via the Shotgun Creek and Falls Creek
diversions. These diversions have resulted in changes in the stream flow patterns in the lower Kizhuyak
River. The Project powerhouse tailrace flows into the Kizhuyak River, a type D-3/D-4 graded stream, to
the east of the powerhouse. The tailrace channel at the tailrace/river confluence is very sensitive to
bedload deposition and backwatering the tailrace channel historically affected power production. Total
annual discharge in the portion of the Kizhuyak River above the tailrace have decreased and discharge
below the tailrace has increased. Photos of the interior of the powerhouse are in Appendix F.
There are no other developments in the Terror or Kizhuyak basins and water quality in both rivers is
typical of other pristine watersheds in the area. Nutrient and sediment levels are low and dissolved
oxygen is near or above saturation. Water quality problems are temporary, typically associated with
natural events such as flooding. Post-licensing water quality studies conducted by the licensee indicate
that water quality parameters are essentially unchanged from pre-project conditions (FERC, 2004).
Diversion of water through Terror Lake has altered stream temperatures somewhat, but these minor shifts
have not been found to have any deleterious effects on the fish utilizing the rivers (Railsbeck and Trihey,
1992).
3.1.4.2 Project Tailrace
The Project powerhouse includes three turbine generator bays. Bays 1 and 2 contain active units and
Bay 3 has primary concrete in place; the power manifold is installed and the Turbine Inlet Valve body in
place and blinded off and without seals and operator installed. The generators are driven by vertical shaft
Pelton impulse turbines located in runner rooms below the generators and the runner rooms discharge
into the tailrace through rectangular gated orifices. The Project tailrace was originally constructed to
handle the discharge of 3 turbine units with a cross-section and slope designed carried to the discharge
of 435 cfs from the tailrace to the Kizhuyak River.
The turbines must run in an un-submerged environment; therefore, the water surface elevation in the
runner rooms is maintained below the turbine runner. When the tailrace water level is above that
elevation, the runner room water surface elevation can be maintained by supplying compressed air to the
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space, depressing the water surface. If the tailrace water surface elevation is very high due to backwater
pressure from the Kizhuyak River and/or gravel deposition from Camp Creek, the depression air is unable
to maintain the runner room water surface at an operational level. This issue of flooding and incursion of
the Kizhuyak River into the tailrace was a recurring problem at the Project. In September 1995, flood
events caused the Kizhuyak River to shift channels, threatening the Project. Emergency measures taken
at that time involved the construction of a temporary berm. This temporary berm was replaced in 1998
with a 1,600 foot long permanent erosion control dike located approximately 3,000 feet upstream from the
confluence of the tailrace and Kizhuyak River. Another flood event in 2002 resulted in additional erosion
and loss of a small un-hardened berm that was placed along the left bank of the Kizhuyak River during
the Project’s original construction. Following the flood event of 2002 and another one in 2003, it was
determined that the Project tailrace required permanent realignment. In 2003, the tailrace was realigned
and lengthened to prevent the incursion of the Kizhuyak River and Camp Creek into the tailrace. The
2003 modifications established a higher operating water surface elevation for the tailrace than the
Kizhuyak River’s flood stage to prevent the backflow situation experienced in the past. The 2005 Terror
Lake Hydroplant Tailrace Realignment and Associated Work Project (Tailrace Realignment) protected the
Project tailrace from future flood damage by constructing a new revetment mat hardened training works.
This reinforced erosion control dike was installed along the lower Tailrace and left bank of the Kizhuyak
River, just upstream of its confluence with the Project tailrace. This construction effort also improved the
Camp Creek culvert crossing to the west of the Project powerhouse. The Tailrace Realignment project
has successfully maintained tailrace water levels for safe operation of the Project turbines. This
construction effort also verified that the Project tailrace is adequately designed to handle the discharge of
3 turbine units running simultaneously.
During the floods of October 2009, Camp Creek was filled with material from a landside to the south of
the Project powerhouse. The surging debris-laden Camp Creek flowed along the west bank of the
Kizhuyak River channel and eroded a portion of the tailrace right training works that had not been
armored in 2005. This specific section of the training works was not armored in 2005 because at that
time it was outside the influence of Camp Creek; however, the landslides and floods of October 2009
created new flow patterns when Camp Creek was filled with landslide debris. Repair and armoring
placement along the erosion damaged section of dike was performed in August 2010; there was no
change in the tailrace channel geometry or materials by that mitigation construction.
3.1.4.3 Kizhuyak River
The Project annually diverts approximately 40 – 55 CFS from the upper Terror River basin into the lower
Kizhuyak River. Most of this diverted water originates from a reduction in Terror River flow during May
and June when the reservoir fills. The diversion augments Kizhuyak River flows between fall and early
spring, when natural runoff is low. The Project also augments low Terror River flows in winter (Railsbeck,
1992).
The Kizhuyak River flows nearly due north from its headwater areas, which are in excess of 2,000 feet in
elevation. The total drainage area for the Kizhuyak River is approximately 54 square miles. The upper
part of the watershed, including several tributaries, is relatively narrow and steep. Tributaries in the upper
watershed include Falls (4.5 square miles), Shotgun (1.9 square miles), and Rolling Rock (1.6 square
miles) Creeks, which have been diverted to increase flows to the penstock. Floodplains are present from
approximately ½ mile upstream of the powerhouse, near where Shotgun Creek enters the Kizhuyak
River, down to the mouth. Average annual flow (measured below the powerhouse tailrace channel) was
estimated at 261 cfs (FDPPA, 2004).
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3.1.4.4 Wetlands and Floodplains
Wetlands in the project area are in riparian areas associated with the Kizhuyak River floodplain. The
floodplain reach is approximately 4.5 miles in length, and begins near where Shotgun Creek enters the
river. The lower 3.5 miles is a low-gradient, braided channel. The floodplain is approximately 1.1 mile in
width in the lowest, delta section of the creek. The delta makes up approximately the lowest 1 mile
(Figures PDEA-7, 8, 9 & 10).
Average annual stream flow were historically measured by the USGS gauge in the lower floodplain reach,
and just upstream of the largest tributary to the Kizhuyak River, Watchout Creek, is approximately 250
cfs; average monthly flows range from a low of 122 cfs in March to a high of 550 cfs in June (Trihey,
1992).
3.1.5 Aquatic and Terrestrial Species
3.1.5.1 Fish
The Kizhuyak River supports runs of pink (Oncorynchus gorbuscha) and chum (O. keta) salmon, although
run sizes are generally smaller than in the Terror River. Chum salmon are the dominate species in the
Kizhuyak River. Pink and chum are the primary species managed for commercial harvest by the ADF&G.
Small runs of Coho salmon (O. kisustch) and transient populations of Dolly Varden char (Salvelinus
malma) also occur, but they are of only incidental importance for either sport or commercial fishing. The
focus of the pre- and post- monitoring program on the pink and chum salmon runs was funded by Alaska
Energy Authority (AEA) and KEA and conducted by ADF&G. The timing of Kizhuyak River salmon runs is
similar to that of the Terror River (Blackett, 1992).
In 1979 and 1980, pink salmon spawning was concentrated in the lower 1.5 miles of the river and side
channels, including intertidal areas. Coho spawning was not observed. Chum spawning occurred
primarily in side channels of the lower 1.5 miles of the river, although mainstream spawning may also
occur in the lower 1 mile of river. Most of these spawning areas are downstream of the powerhouse site.
Coho and Dolly Varden juveniles are year-round residents of the stream (FERC, 1981).
Sport fishing for salmon is minor in both the Kizhuyak River and Bay, probably due to the inaccessibility of
the area. The 1975 postcard survey of Kodiak licensed anglers did not list the Kizhuyak as an important
salmon angling stream (FERC, 1981).
Kizhuyak River is stream number 252-36-10050 in ADF&G's Catalog of Waters Important for Spawning,
Rearing or Migration of Anadromous Fishes. It is catalogued for pink, chum, and Coho spawning, and
Dolly Varden presence. Previous studies identified both anadromous and resident Dolly Varden in the
watershed. The Terror Lake Final Environmental Impact Statement (FEIS) (1981) and the Arctic
Environmental Information and Data Center (AEIDC) report (1979) reported that Pink salmon utilize the
lower 1.5 miles and Coho salmon and Dolly Varden up to the lower 4.5 miles of the Kizhuyak River.
Escapement data for the Kizhuyak River from 1952 to 1980 ranged from 800 to 30,000 Pink salmon, and
300 to 31,000 chum salmon. Salmon in Kizhuyak Bay are fished commercially.
The FERC license included Article 40 that required the licensee to perform an assessment of salmon use
and post-operation effects on salmon. An assessment of project effects on streamflows and stream
temperatures, required by license Article 40, is discussed below. Pre- and post-fish population monitoring
work was conducted by the ADF&G (Blackett, 1992). Two reports pursuant to license Article 40 were
prepared:
“Salmon Returns, Spawner Distribution, and Pre-Emergent Fry Survival in the Terror and
Kizhuyak Rivers, Kodiak Island, Alaska – 1982-1990", prepared by RFB Aquatech, Inc. and
Trihey and Associates.
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"Effects of the Terror Lake Hydroelectric Project on Salmon Production in the Terror and
Kizhuyak Rivers, Alaska", prepared by Woody Trihey and Steve Railsbeck in 1992.
The Trihey 1992 report provided the following conclusions concerning the effects of construction and
operation of the Terror Lake Hydroelectric Project:
“There has been an average annual increase in estimate salmon returns to the project area
between pre- and post-project years of 150,000 fish.
The project has increased and stabilized winter streamflows in both rivers, thereby reducing the
extent and frequency of dewatering and freezing.
Pink salmon spawn further upstream in both river systems after project operation began.
Changes in surface and intragravel water temperatures caused by the project are generally less
than 1.5 degrees C and have no measurable effect on the rate of salmon fry development, but
are believed to have increased incubation survival.
The project provides some reduction in streambed scouring in both rivers during May and June
when the reservoir is filling. However, during late summer and fall when streambed scour has the
greatest effects on incubating eggs, there is often little storage available in the reservoir to reduce
flow peaks. Therefore, streambed scour at this time of the year probably remains about the same
as under natural, pre-project conditions.”
Included in the FERC license for the Project are terms of the settlement agreement between KEA and five
interveners. Article 41 of the license included requirements for a study plan to determine the effects of the
Project’s operation on the surface and intragravel water temperature of the Kizhuyak River. The plan
covered a period of six years. A report assessing effects from construction and operation on the
temperature and streamflow was prepared in February 1992 by Trihey & Associates (1992 Trihey
Report). Water temperature in the Kizhuyak River is of great importance to spawning and incubating pink
and chum salmon. These salmon enter the lower 3 miles in July and spawn through September. The
most heavily utilized portion is the first 1 to 1.5 miles above the river’s mouth. Eggs and alevins are in the
streambed gravels from August through March. The Trihey 1992 report results stated that:
“For all practical purposes, project effects on intragravel water temperatures are the same as
project effects on surface water temperatures.”
“There are small seasonal differences between the pre- and post-project surface water
temperature near the USGS gaging stations on both rivers.
“In the Kizhuyak River, post-project water temperatures during summer are generally about 1
degree Centigrade cooler than pre-project temperatures. There is a lesser difference between
pre-and post-project stream temperatures during the winter months.”
“Winter stream temperatures have changed little in the lower 1.5 miles of the Terror and Kizhuyak
rivers where the greatest amount of spawning activity has traditionally occurred.”
“Effects of project operation on the annual streamflows for the Terror and Kizhuyak rivers cannot
be determined with certainty using the existing streamflow record. However, it appears that the
annual streamflow in the Kizhuyak River has increased by 38 cfs or 18 percent.”
“Summer streamflows in the Kizhuyak River have changed little, but winter streamflows are
significantly higher.”
KEA does not propose any modification to fish habitat in the Kizhuyak River with this Draft Amendment
Application.
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3.1.5.2 Birds
Kodiak Island supports a diversity of waterfowl as well as pelagic and shore birds. Although no major
waterfowl production areas occur in the project area, the deltas of the Terror and Kizhuyak rivers provide
suitable habitat for numerous bird species. Bald eagles and other raptors are present in the Kizhuyak
drainage. KEA does not propose any ground disturbing activities with this Draft Amendment Application.
3.1.5.3 Mammals
Six terrestrial mammal species are native to Kodiak Island, or have colonized it since the last glacial
period (5,000 to 10,000 years ago). They are the Kodiak brown bear (Ursus arctos middendorfi), ermine
(mustela erminea), river otter (Lutra canadensis), red fox (Vulpes vulpes), tundra vole (Mifrotus
oeconomus), and little brown bat (Myotis lucifugus). All of these species occur in the project area. Other
mammal species have been imported accidentally or purposefully to the island by man. Nine of these
imported species are presently established within the Kodiak National Wildlife Refuge. This Draft
Amendment Application would not affect species observed solely within the Refuge (FERC, 1981).
The primary species of concern in the area of the powerhouse is the Kodiak Brown Bear, which is present
throughout the lower Kizhuyak River (FERC, 1981). The brown bear, Kodiak’s most well known species,
appears to be distributed throughout the island, and emerges from denning generally during the month of
May. Breeding occurs in the period following emergence and generally ends by late June. Around mid-
July, bears disperse from their alpine feeding range and move down to the lower elevations of the Terror
River and Kizhuyak River to feed on fish. Denning occurs in mid-November and the lower Terror River
Valley includes some of the best denning habitat (FERC, 1981).
Sitka black-tailed deer, first introduced to Kodiak Island in 1934, are abundant within the Project area.
The deer make vertical migration from sea level to alpine areas in response to climatic conditions and the
availability of food. As fall arrives, the deer generally migrate from the high elevations to feed on
remaining succulent vegetation at lower elevations. Deer winter in the lower Terror and Kizhuyak River
drainages, generally below 500 feet.
Between 1929-31, 23 beavers were transported to Kodiak Island and released to lakes and streams.
Beaver can be found in habitat throughout the island, including the Terror and Kizhuyak river drainages.
Watchout Creek, in the Kizhuyak drainage, contains the most significant sign of beaver habitation (FERC,
1981).
3.1.5.4 Protected Species
NOTE to Reader: This Section will be completed following consultation with the Resource Agencies.
In correspondence filed on September 7, 1979, the USFWS reported that “there are currently no known
endangered or threatened species, or species proposed for listing as endangered or threatened,
inhabiting the Terror Lake area or Kodiak Island in general.”
The northern bald eagle population in Alaska is relatively large, and these eagles have not been declared
endangered or threatened. Two Federal statutes, the Bald and Golden Eagles Act and the Migratory Bird
Treaty Act, provide protection for these eagles as well as for their nesting trees.
3.1.6 Vegetative Cover
The intertidal and delta reach of the Kizhuyak River Valley is made up almost entirely of Lyme Grass and
mixed sedges. The floodplain area is made up of deciduous forest dominated by cottonwood, and shrub
land dominated by willow and alder. The powerhouse and tailrace area is primarily an open cottonwood
and alder community, including cottonwood, Sitka alder, bluejoint grass, ferns, cow parsnip, fireweed, and
salmonberry (AEIDC, 1979). The road from the dock to the powerhouse passes through an alder-
dominated shrub-meadow mosaic, grading into a bluejoint-mixed herb community with occasional low
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alders and willows. It is located above the forested floodplain until shortly before it reaches the
powerhouse.
3.1.7 Land Development and Recreation
The Project is the only development in the project area. There is no human habitation in the Kizhuyak
River Basin upstream of the project. The area surrounding the Project powerhouse and tailrace is a vast
natural area with an abundance of wildlife. The Refuge encompasses approximately two-thirds of Kodiak
Island. Most of the area is roadless and access is by helicopter, floatplane or boat.
No recreational facilities are located in the immediate project area. A variety of recreational facilities have
been developed on inhabited portions of the island (Figures PDEA-11 and 12).
3.1.8 Population
The 2009 Alaska Department of Commerce and Economic Development Division of Community and
Regional Affairs, lists the 2009 Certified Population for the Kodiak Island Borough as 13,889, of which the
City of Kodiak population is 6,626 and the US Coast Guard Base is 1,321 (www.commerce.state.ak.us).
The majority of the Kodiak Island Borough total population resides in the area directly within or adjacent
to the City of Kodiak.
3.2 Scope of Cumulative Effects Analysis
Installation of the Third Unit in the existing powerhouse and the transformer in the existing switchyard is
not anticipated to result in any cumulative effects. The only cumulative effect that KEA has identified is
the overall beneficial effect associated with reduced diesel emissions. This is addressed in Section 4.4,
Air Emissions within this document.
3.3 Proposed Action and Action Alternatives
3.3.1 Geology and Soils
No new ground-disturbing activity is proposed. An existing access road, contractor camp, and
construction lay-down area would be used (Figures PDEA-4, 7, and 8). These figures provide aerial
views and identified project features that will assist the in understanding that the areas to be used during
installation of the Third Unit would not require any disturbance of geology and soils. KEA will prepare the
required plans to support this Amendment Application and provide such plans in the Final Application.
3.3.2 Water Use and Quality
3.3.2.1 Characterize Baseline Water Quality and Stream-Flow Information
The Kizhuyak River drains an area of about 45 square miles. The headwaters of the Kizhuyak River are
about 2,000 feet above mean sea level (msl) and the powerhouse is at 115 feet msl, approximately 3.5
miles from the river’s mouth at Kizhuyak Bay. About one mile upstream of the powerhouse and tailrace
area the river transitions from a steep gradient stream to a broader, flatter, floodplain stream with a
braided channel. At the confluence of the Kizhuyak River and the tailrace, the river is located well to the
east side of the flood plain and is limited from further migration to the east by the steep mountains that
confine it at that point. The tailrace was modified in 2005.
KEA implements protection measures during operation and requires that all contractors abide by Contract
Terms and Conditions: Special Provisions Related to Environmental Protection (Appendix E-2:
Measures).
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3.3.2.2 Address Expected Short-Term Effects during Installation
Erosion and Sedimentation Control Plan
No changes to existing water quality in the tailrace and the Kizhuyak River are anticipated. An Erosion
and Sedimentation Control Plan as required by the FERC regulation would be prepared, covering
activities on the dock, road, and equipment laydown area adjacent to the powerhouse during the
installation of the Third Unit.
Spill Prevention Control and Countermeasures Plan (SPCC)
KEA stores diesel fuel and gasoline on-site for use in Project vehicles, a standby generator, and on-site
waste incinerator, as well as hydraulic oil for the turbine equipment. Oil-filled operating equipment in the
substation includes the transformers, circuit breakers, and voltage regulators. The Project operates
under the SPCC plan prepared in 2008; a copy of this Plan will be included in the Final Amendment
Application. A separate SPCC plan specific to any additional oil containers temporarily brought on-site for
the Third Unit installation process would be required to be prepared by the contractor.
3.3.2.3 Statement of No Effect Long Term
Water use would be within the levels allowed by the existing water right. No changes to existing water
quality in the tailrace and the Kizhuyak River are anticipated.
3.3.2.4 Reference to Plan and Appendices
KEA’s Contract Terms and Conditions: Special Provisions Related to Environmental Protection is
included at Appendix E-2: Measures.
3.3.3 Aquatic Resources
Discharge from the tailrace to the Kizhuyak River will remain nearly continuous throughout the year, as
has been the case since the project went into operation in 1982 maintaining year round flow in the 1.5
kilometer section of river below the tailrace outlet that historically had frequent and prolonged periods of
zero surface flow.
There would be no work conducted below the OHW level of the Kizhuyak River. Fuel, lubricants, or other
hazardous substances shall not be stored below the OHW level of the Kizhuyak River. To the extent
practicable, no activities affecting Project waters would occur outside of the “fish timing window,” May 15
– July 15, Protection of aquatic resources is specifically addressed in KEA’s Contract Terms and
Conditions: Special Provisions Related to Environmental Protection (Appendix E-2: Measures).
3.3.3.1 Tailwater Analysis and Effect on the Fishery
Tailwater levels were calculated based on a proposed full plant output of 435 cfs and the tailrace cross
sections from the 2005 Tailrace and Kizhuyak River Training Works Project. Flow surface elevation
ranges were 2.5 feet +/- 0.25 feet. Calculated average velocities were estimated at 2.2 feet +/- 0.2 feet
per second (fps). The estimated maximum velocity at channel bends is approximately 2.6 fps, which is
below the original design criterion of 3 fps. Based on USBR recommendations, the minimum stone
diameter for stable banks and a velocity of 3 fps is approximately 1 inch. The coarse gravel and class II
riprap will be sufficient for the increased flow due to the addition of a Third Unit.
Tailrace discharge during the period when spawning pink salmon are present (mid-July to September) are
projected to range from 100 to 220 cfs. At these levels water depths would range from around 1.2 to 1.8
feet and average water velocities from 0.8 to 1.3 fps. Based on habitat suitability curves presented in
Raleigh and Nelson (1985, based in part on data collected by Wilson et al, 1981) in the Terror River,
these depths and velocities will continue to provide suitable spawning and rearing habitat for pink salmon.
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The design criteria document for the original project indicates that hydraulic transients with the Third Unit
installed were considered in the original design analysis of the Project. A tailwater rating curve was
calculated and is provided below. The tailwater rating curve shown below (also Figure PDEA-14)
provides the relationship between the depth and flow of water in the tailrace.
3.3.3.2 Characterize Baseline Fish Population, Aquatic Habitat, and Use of Tailrace
Species present in the tailrace and related segment of the Kizhuyak River that may be affected include:
juvenile Coho salmon, Oncorhychus kisutch; juvenile chum salmon, Oncorhychus keta; and juvenile/adult
Dolly Varden char, Salvellinus malma.
3.3.3.3 Protection and Avoidance Measures
There would be no work conducted below the OHW level of the Kizhuyak River, and there will be no
construction occurring in the tailrace. The proposed construction will not disturb normal activities of
aquatic wildlife or their use of aquatic habitat. Installation of the Third Unit will be contained within
existing Project features.
To the extent practicable, no activities affecting Project waters would occur outside of the “fish timing
window,” May 15 – July 15. Should work affecting the tailrace or the Kizhuyak River occur within this
timeframe, KEA would implement measures to avoid any adverse environmental effects. KEA would
provide an Environmental Compliance Monitor during construction as is the current protocol of the FERC.
The operation of the third turbine generator will not affect the water quality in the tailrace or Kizhuyak
River. The Project tailrace was designed to accommodate the flows corresponding to 3 turbine units
running simultaneously. Any additional flow to the tailrace with all three turbines running will not affect
salmon spawning and rearing in the Kizhuyak River.
3.3.3.4 Reference to Plans and Appendices
KEA has planned adequate contingencies in case an unexpected abnormal situation arises during the
installation process, and the protection and avoidance measures relating to aquatic resources is
specifically addressed in KEA’s Contract Terms and Conditions: Special Provisions Related to
Environmental Protection (Appendix E-2: Measures).
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3.3.4 Terrestrial Resources
3.3.4.1 Characterize Baseline Bird, Mammal Population, and Habitat Use
Six terrestrial mammal species are native to Kodiak Island, or have colonized it since the last glacial
period (5,000 to 10,000 years ago). They are the Kodiak brown bear (Ursus arctos middendorfi), ermine
(Mustela erminea), river otter (Lutra canadensis), red fox (Vulpes vulpes), tundra vole (Mifrotus
oeconomus), and little brown bat (Myotis lucifugus). All of these species occur in the project area. Other
mammal species have been imported accidentally or purposefully to the island by man. Nine of these
imported species are presently established within the Refuge. This Draft Amendment Application would
not affect species observed solely within the Refuge as reported in the 1981 FEIS.
The primary species of concern in the area of the powerhouse is the Kodiak Brown Bear, which is present
throughout the lower Kizhuyak River (FERC, 1981). The brown bear, Kodiak’s most well known species,
appears to be distributed throughout the island, and emerges from denning generally during the month of
May. Breeding occurs in the period following emergence and generally ends by late June. Around mid-
July, bears disperse from their alpine feeding range and move down to the lower elevations of the Terror
River and Kizhuyak River to feed on fish. Denning occurs about mid-November and the lower Terror River
Valley includes some of the best denning habitat (FERC, 1981).
Bald eagles and other raptors are present in the Kizhuyak drainage. KEA does not propose any ground
disturbing activities with this Draft Amendment Application. KEA understands that if bald eagles are
present, no clearing of vegetation would be allowed within 330 feet of an eagle nest, and no construction
activity would be permitted within 660 feet of a nest between March 1 and June 1, when nesting birds are
most sensitive to disturbance.
In 1979 pre-licensing studies conducted for the original licensing of the Project were conducted, including
an aerial survey to look for nests (AEIDC, 1979). At that time, seven nest platforms, including one active
nest, were observed along the shoreline of lower Kizhuyak Bay; however, no nests were documented in
the vicinity of the Terror Lake tailrace.
In 2004 when the Four Dam Pool Power Agency (FDPPA), former owner and licensee of the Project, was
preparing to realign the tailrace and repair the Kizhuyak River training dike in order to protect the tailrace
from future flood damage, the FDPPA conducted a bald eagle nest survey of potential nesting habitat
located within 0.5 miles of the Project. The purpose of the survey was to determine whether construction
activities centered at the tailrace and training dike would affect nesting bald eagles. On April 6, 2005, the
FDPPA conducted a survey and no nests were observed in the area that would be affected by installation
of the Third Unit.
The nearest known bald eagle nest is located near the jetty at the head of Kizhuyak Bay, about 4 miles
downstream of the tailrace. Two adults were visible at the nest on April 6, 2005, and one juvenile bald
eagle was observed in flight over the tailrace. Project personnel report that bald eagles are observed
year-round in the Project area, and they occasionally forage in the Kizhuyak River below the tailrace in
late July through September, when pink salmon are present.
A copy of the FDPPA’s Bald Eagle Nest Survey discussed above is included in Appendix G – Technical
Reports. KEA will consult with the agencies to determine measures to adopt during installation of the
Third Unit, including a nest survey, if appropriate.
3.3.4.2 Protection and Avoidance Measures
KEA does not propose any land disturbing activities during installation of the Third Unit. Only existing
Project facilities/features would be used.
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To minimize interactions with, and disturbance of bears, KEA has an existing bear safety and waste
disposal plan as discussed in KEA’s Contract Terms and Conditions: Special Provisions Related to
Environmental Protection (Appendix E-2: Measures). These provisions also address bald eagles.
Measures would include:
Contractor Use of Project Facilities: Project facilities are to be used only in activities directly
associated with installation of the Third Unit. The Contractor and employees are not allowed to
use the Project Area for recreational purposes, such as hiking, hunting, or fishing. No motorized
vehicles are to be used for recreation on the Refuge.
Equipment & Vehicle Operation on Project: Stipulations agreed to by KEA, USFWS, ADF&G, and
Afognak Native Corporation stipulate that there shall be no motorized wheeled access to any
road on Project Lands other than official use vehicles. A gate is maintained on the access road
between the USFWS Refuge Land and the State of Alaska land. Other provisions relate to
prevention of spread of non-native invasive species and restriction to areas vehicles may operate
near water bodies.
Wildlife & Landscape: Installation of the Third Unit does not include any ground-disturbing activity
or removal of vegetation. Encounters with wildlife may occur on Project Lands, and KEA
stipulates that animals are not to be harmed in any way. If wildlife are encountered and they do
not leave, the contractor is to contact KEA.
Bald Eagles: KEA stipulates that all eagles, their eggs, and their nests shall be protected from
disturbance and/or destruction.
Bears on Project Lands: Stipulations regarding bears on Project lands have been agreed to
between KEA and the USFWS, ADF&G, and Afgonak Native Corporation and shall apply to the
Contractor and employees. The Contractor and employees are required to participate in a Bear
Safety Orientation provided by KEA to mitigate the possibility of conflict between personnel and a
bear. In accordance with KEA’s Bear Safety Program, garbage handling will be done by
incineration; there will be no feeding of wildlife; and a bear incident reporting form will be
completed upon any incident with a bear in the Project Area. The completed bear incident
reporting form will be kept at KEA headquarters and a copy will be sent to ADF&G.
3.3.5 Threatened and Endangered Species & Other Protected Species
KEA is requesting a list of species from FWS and NMFS. KEA will review the list and engage in
consultation necessary to document that the proposed installation of the third unit would not affect any
candidate or listed species. Related to this activity, KEA will conduct required consultation under the
Magnuson-Stevens Act to affirm no effect.
3.3.5.1 Characterize Baseline Use of Area by Any Candidate or Listed Species
NOTE to Reader: This Section will be completed following consultation with USFWS and NMFS.
3.3.5.2 Consultation with USFWS and NMFS
NOTE to Reader: This Section will be completed following consultation with USFWS and NMFS.
3.3.5.3 Consultation under the Magnuson-Stevens Act
NOTE to Reader: This Section will be completed following consultation with USFWS and NMFS.
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3.3.6 Recreation and Land Use
3.3.6.1 Current Status - Recreation
There is minimal recreational demand at the Project due to concerns over minimizing brown bear and
human conflicts. Further, the Project area is difficult to access which discourages recreation in the area.
Due to the ample opportunities for recreation at other more accessible areas of Kodiak Island, there is no
angler use of the Kizhuyak River. In a letter dated June 17, 1997, FERC exempted the Project from filing
the Hydropower Development Recreation Report, FERC Form 80 because of the Project’s lack of
recreational use.
A Public Safety Plan was submitted to FERC in 1992, which was accepted by FERC in a letter dated
October 14, 1992. A Project sign, sign-in book and kiosk is located at the entrance road from the
Kizhuyak Bay jetty.
3.3.6.2 Current Status - Land Use
The Project is located 25 miles southwest of the City of Kodiak’s center. There are no towns located
within 15 miles of the dam. The only residents are KEA staff who maintain and operate the Project.
Figure PDEA-4 provides an aerial photo labeled to show existing Project facilities and other features that
would be involved in installation of the Third Unit.
KEA does not propose to add any additional lands to the Project Boundary. All activities associated with
installation of the Third Unit would use existing facilities.
Portions of the Project not affected by this Draft Amendment Application are located within the Refuge.
KEA does not propose to modify operation of the Terror Lake Reservoir nor use the Refuge lands during
installation of the Third Unit. Lands within the vicinity of the Project and affected by this Draft Amendment
Application include lands owned by the Afognak Native Corporation, Inc., an Alaska Native Corporation;
lands owned by the State of Alaska, and, municipal lands owned by the Kodiak Island Borough. As
discussed above, no additional lands would be required to accomplish installation of the Third Unit. Lands
occupied by the powerhouse and project features in the vicinity of the powerhouse are owned by the
Kodiak Island Borough and the State of Alaska. KEA is authorized to access Kodiak Island Borough
lands in accordance with the agreement, “Authorization to Enter on Kodiak Island Borough Land to
Design, Construct and Maintain the Terror Lake Hydroelectric Project” signed on March 26, 1982. ADNR
lease agreement ADL No. 206462 authorizes Project use of the tidelands and jetty, and ADNR lease
agreement ADL No. 204024 authorizes the Project use of the access road.
The Afognak Native Corporation owns lands occupied by the Project storage area next to Kizhuyak Bay
and portions of the access road connecting the dock and jetty area to the Project powerhouse. These
areas have been leased by and an easement granted to KEA from the Afognak Native Corporation for a
term of 50 years (April 2, 1982 – April 2, 2032), extending beyond the November 1, 2031, expiration date
of the FERC license. This easement and lease was filed with FERC on April 24, 1986.
Copies of the land use agreements are included at Appendix E-1: Approvals.
3.3.7 Cultural Resources
3.3.7.1 Current Status
During the original FERC licensing proceeding, KEA conducted reconnaissance archaeological surveys
and test excavations within the proposed project area of potential effect. Reconnaissance surveys were
conducted for the Swampy Acres to Bells Flats transmission line corridor (Lobdell 1980a, 1980b), and on
lands within the Refuge (Yarborough, 1979). Reconnaissance surveys at the then-planned location of the
jetty/dock and access road from Kizhuyak Bay to the powerhouse resulted in discovery of two prehistoric
sites (Righter, 1979). Further test excavations at KOD-138 showed it to be severely eroded, small site
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covering less than 100 square meters, and with shallow cultural deposits. Test excavations at KOD-190
showed it to be a larger site spread over 675 square meter area on an outcrop 6 meters above sea level.
Surface indications of ten housepits are present, as well as indications of a late Kachemak Period
occupation (100 BC to AD 1100) and a later Koniag occupation (AD 1100 to ca. 1760). Both sites were
interpreted as seasonally occupied fish camps (Righter and Jordan, 1980).
Test excavations and analysis recommended that site 49-KOD-138 was not eligible for listing on the
National Register of Historic Places (NRHP). Site 49-KOD-190, a stratified, multi-component prehistoric
site, was recommended by investigators as eligible for the NRHP. KEA, SHPO, Western Region of the
Advisory Council on Historic Preservation (ACHP), and FERC concurred with the NRHP
recommendations and the mitigation plan. KEA implemented mitigation measures, including moving the
planned access road further away from the sites, relocating the dock/jetty, posting notices to workers
regarding cultural resources, and periodic monitoring of the site conditions. The archeological sites are
located outside of the Project boundary on lands owned by the Afognak Native Corporation.
A report prepared by Northern Land Use Research, Inc. (NLUR) is transmitted to FERC under separate
cover. The report describes the locations of the sites, presents an overview of KEA’s Third Unit
installation, and makes recommendations for on-going mitigation measures appropriate to the installation.
3.3.7.2 Resource Protection and Avoidance
The proposed Third Unit installation does not require any ground disturbing activities. Transportation of
equipment and materials would use the existing dock and access road. Installation of the Third Unit and
related actions associated with this new development would occur within the existing powerhouse or the
switchyard, or within previously disturbed areas and existing facilities. The temporary project crew
quarters would be housed in the dedicated contractor house or contractor camp site if additional
accommodations are necessary. Increased numbers of construction personnel and activities would
increase the potential for indirectly impacting the sites. KEA’s Contract Terms and Conditions: Special
Provisions Related to Environmental Protection prohibits contractor personnel from any non-project
related travel or activities. In addition, the Special Provisions prohibit the Contractor and his employees
from using the Project Area for recreational purposes, such as hiking, hunting, or fishing. These
prohibitions would prevent impacts to the known cultural resources.
NLUR recommends that (1) the existing mitigation measures remain in place and be updated as
recommended during review of this report; (2) add specific language and procedures regarding the
inadvertent discovery of cultural resources (or human remains) during Third Unit installation; (3) worker
training should include training about cultural resources and the protections they are given under state
and federal laws; (4) site KOD-190 should be evaluated by a professional archaeologist to assess its
condition to serve as a baseline for continued monitoring; (5) interested parties should initiate Section 106
consultations. Interested parties are at a minimum, KEA, the Alaska SHPO, Hatch, FERC, local and
regional Alaska Native organizations, and the Alutiiq Museum and Archaeological Repository in Kodiak.
These mitigation measures should provide adequate protection to KOD-190, a National Register eligible
site. Third Unit installation activities would not take place anywhere near the site, and KEA policy,
procedures, and training should prevent the Contractors or their workers from approaching anywhere
near the site. Ongoing periodic monitoring of the site condition would verify that these measures are
working to protect KOD-190.
3.3.8 Aesthetic Resources
3.3.8.1 Affected Environment
The Project is located in the north central part of Kodiak Island approximately 25 miles southwest of the
City of Kodiak (Figure PDEA-1). Portions of the facility are located within the Refuge; however, the
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project features affected by this proposed installation are located outside the boundary of the Refuge.
Thus, the Refuge will not be affected by this proposed project.
The scope of this Project only involves established Project features. The existing powerhouse,
switchyard, and other features that will be involved in the installation of the Third Unit are located on a
remote developed site. Installing the Third Unit does not affect the surrounding environment since the
installation will occur within the existing powerhouse. No new transmission lines will be built, existing
transmission lines will be utilized. Appendix F contains recent pictures of the existing Project and
presents the layout for the proposed installation of the Third Unit. Since the project was originally
designed to install an additional Third Unit, there is no change in the Project appearance under this Draft
Amendment Application.
3.3.8.2 Unavoidable Adverse Impacts
No unavoidable adverse impacts have been identified to date.
3.3.8.3 Current Status
3.3.9 Socioeconomic Resources
3.3.9.1 Description of the Socio-economic Impact Area
The Project is located in a remote sector of Kodiak Island. The Alaska Community Database Community
Information Summaries lists the 2009 Certified Population for the Kodiak Island Borough as 13,889, of
which the City of Kodiak population is 6,626 and the US Coast Guard Base is 1,321
(www.commerce.state.ak.us). The majority of the Kodiak Island Borough total population resides in the
area directly within or adjacent to the City of Kodiak. KEA provides electricity to approximately 5,800
meters on Kodiak Island (Figure PDEA-2).
Fishing, fish processing, retail, service, and healthcare industries are the key employers to the residents
of Kodiak Island Borough. The US Coast Guard, city, borough, state, and federal agencies also provide
employment. In 2009, 618 borough residents held commercial fishing permits. Subsistence activities and
sport fishing are prevalent. The Kodiak Launch Complex (KLC), a $38-million low-Earth orbit launch
facility on 27 acres, is located at Narrow Cape near Pasagshak and is operated by the Alaska Aerospace
Development Corporation. The KLC is the only commercial launch range in the US that is not co-located
with a federal facility.
The City of Kodiak’s economy is based on fishing, seafood processing, retail services, and government.
Adaptability and diversification in a variety of fisheries has enabled the City of Kodiak’s economy to
develop and stabilize. In 2009, 531 area residents held commercial fishing permits, and numerous fish
processing companies operate here year-round. The Port of Kodiak is home to Alaska’s largest and most
diversified fishing fleet. It has more than 650 boat slips and 3 commercial piers that can handle vessels
up to 1,000 feet. Kodiak is consistently ranked as one of the top commercial fishing ports in the country.
The largest processors include Trident, Ocean Beauty, North Pacific, and Western Processors. The
hospital and city also rank among the top employers. The nation’s largest US Coast Guard Base lies just
south of the city. The Kodiak Chamber of Commerce provides economic development services to the
area (www.kodiak.org).
3.3.9.2 Project Schedule
A detailed Construction Schedule for the Third Unit is provided in Exhibit C of this Draft Amendment
Application.
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3.3.9.3 Construction Personnel Housing - Contractor Camp
KEA anticipates that there would be 16 to 20 temporary contract workers onsite during the Third Unit
installation. Construction workers would be housed on site in existing facilities or at a contractor camp
where there is existing provision for sewage and power hookups (Appendix F: Photos). KEA requires that
all garbage be incinerated to avoid bear attraction (Appendix E-2: Measures).
The Project contains a fully-functioning single-family home to house a small-sized construction crew. This
furnished home is located adjacent to Project staff housing in the powerhouse area. It was built in 2008
and contains four bedrooms furnished with bunk beds, two full bathrooms, a full kitchen and living room.
The house’s utilities include a septic system, potable waters supply, electric heat, and telephone. The
powerhouse also contains an additional bunkroom with adjoining kitchen. These boarding facilities can
comfortably house eight people (Appendix F: Photos).
When more than eight people need housing onsite, the Project also contains a contractor camp to
support mid-size construction crew housing. The contractor camp is located on the Project access road
at the junction of Rolling Rock Creek. It was built in 1997 and consists of a gravel yard with hook-ups to
septic, power and water utilities. Temporary contractor crews can set their trailers at the camp area to
sleep and eat, similar to an RV park. For past projects, contractor crews have brought in the appropriate
amount of trailers to set up the bedding, have a kitchen with a cook, and live independently of the KEA’s
crews. The contractor camp is located on an existing area that has been used for this purpose since the
original construction; no previously undisturbed area would be cleared (Appendix F: Photos). The
anticipated contractor camp that will be used during installation will not affect the local environment. KEA
has specific guidelines and special provisions for contractor personnel related to environmental protection
during construction activities (Appendix E-2: Measures).
There are no formal police services at the remote Project site. Contract personnel are required to
conduct themselves in a professional workman-like manner, as specified in the Code of Workplace
Behavior listed in their contract.
3.3.9.4 Fiscal Impact Analysis
The proposed action would have no direct impact on local government expenditures. There are no
municipal services, such as utilities, road, police, fire or medical services at the remotely located Project
site. As the sole owner and operator of the Project, KEA is responsible for maintaining and repairing the
Project’s infrastructure including the dock and jetty area, access roads, buildings, and utilities, and fire
protection systems. KEA staff and hired contractors at the Project site are responsible for conducting
themselves in a safe and professional manner. If a medical emergency were to arise at the Project, flight
evacuation to a hospital or other treatment facility would be provided at KEA’s expense. The Third Unit
installation is a temporary process that will not result in a significant change to Kodiak’s population. Once
installed, the Third Unit will not require additional personnel to operate the Third Unit at the existing
facility.
The proposed action would have no direct impact on local government revenues. As a 501(c)12 not-for-
profit organization, KEA is exempt from local, state, and federal taxes. Expanding the Project’s capacity
with the Third Unit will however indirectly benefit the local governments by enhancing the Kodiak
economy as a whole with stable cost of power and new marketing opportunities. The Third Unit allows
KEA to optimize its wind-hydro resources, mitigate the impact of volatile diesel-generation costs, and
stabilize the cost of power for the entire community. When the cost of power is more stable and
predictable, KEA members, including the City of Kodiak and Kodiak Island Borough, will be in a better
position to plan and budget for their power costs. KEA’s renewable energy portfolio provides new
marketing opportunities for Kodiak business who use KEA’s electricity to manufacture their products; if
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these new marketing campaigns result in increased business, then in that sense, the proposed action
could boost Kodiak’s local government tax revenue.
3.3.9.5 Socioeconomic Effects Associated with Installation of the Third Unit
The installation of a third turbine for the Project would have a direct positive effect on the community and
future sustainability of Kodiak Island. Installing the proposed third turbine would increase KEA's
renewable energy standards for their community. KEA's load forecast predicts a continual increase in
peak loads and total sales. The continual growth of the Kodiak community will put pressure on KEA's
existing capacity to cover peak loads. This growth will result in increased price and environmental
pressure if diesel fuel continues to be utilized to keep up with total sales. Mitigating the use of highly
unpredictable diesel fuel cost in KEA's energy generating portfolio stabilizes KEA's cost of power, thereby
allowing customers to plan and budget their power costs. Diesel cost volatility from month to month
makes it difficult for the Kodiak business community to plan future development or predict cost of future
operations.
KEA is viewed by many as a shining star in implementing sustainable, renewable energy solutions. The
continued support provided by the local community of Kodiak and the statewide community of Alaska has
been a major component to KEA’s success. The strong community support for KEA’s purchase of the
Project and development of the Pillar Mountain Wind Project indicates Kodiak’s commitment to move
toward self-reliance obtained by reducing dependence on fossil fuels. KEA is assisting Alaska and the
nation with moving toward greater energy independence by sharing the lessons learned from these
projects. KEA’s efforts with expanding its renewable wind-hydro energy generation system continue to
draw the attention of media outlets that travel to Kodiak to learn how even a small rural electric
cooperative like KEA could make a huge difference in our nation’s efforts to develop its renewable energy
resources. As support of renewable energy within the community continues to grow, a renewed sense of
pride has emerged for Kodiak’s progress in sustainable living. The addition of a third unit at the Project
allows KEA to continue developing sustainable sources of renewable energy for generations to come.
3.3.9.6 Management during Installation
As the sole owner and operator of the Project, KEA will be responsible for the overall management of the
Third Unit installation process. KEA anticipates that there would be 16 to 20 temporary contract workers
onsite during the Third Unit’s installation. Contract personnel are required to conduct themselves in a
professional workman-like manner, as specified in the Code of Workplace Behavior listed in their contract.
There are no municipal, state or military police, fire or medical services at the remotely located Project
site. If a medical emergency were to arise at the Project, flight evacuation to a hospital or other treatment
facility would be provided at KEA’s expense.
KEA will provide housing for the temporary contractor crews at the fully-equipped crew house, or the
temporary contractor camp area. The furnished home is located adjacent to Project staff housing in the
powerhouse area. It was built in 2008 and contains four bedrooms furnished with bunk beds, two full
bathrooms, a full kitchen and living room. The house’s utilities include a septic system, portable waters
supply, electric heat, and telephone. The powerhouse also contains an additional bunkroom with
adjoining kitchen. These boarding facilities can comfortably house eight people. When more than eight
people need housing onsite, the Project also contains a contractor camp to support mid-size construction
crew housing. The contractor camp is located on the Project access road at the junction of Rolling Rock
Creek. It was built in 1997 and consists of a gravel yard with hook-ups to septic, power and water
utilities. Temporary contractor crews can set their trailers at the Contractor camp to sleep and eat, similar
to an RV park. For past projects, contractor crews have brought in the appropriate amount of trailers to
set up the bedding, have a kitchen with a cook, and live independently of the KEA’s crews (Appendix F:
Photos).
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As a condition of working at the Project site, all contractors must understand the environmental
considerations of the site and take the appropriate precautions while temporarily living there, such as
proper garbage handling to minimize wildlife conflicts.
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4. Developmental Analysis
4.1 Power and Economic Benefits of the Project
The estimated annual value of the power provided by the Third Unit takes into consideration 1) the higher
efficiency of a modern turbine-generator unit, 2) the hydro generating redundancy provided by this
additional unit, and 3) the increased ability to support more wind energy in Kodiak. These benefits result
in a direct savings achieved by a significant reduction to KEA’s only other base-load generation option,
namely diesel.
4.1.1 Higher efficiency of a modern turbine-generator unit
A new turbine-generator built according to modern, high-efficiency hydropower technology along with its
enhancement to plantwide operational efficiency is estimated to produce an additional 2,934,000 kWh-
hours per year from the Project without any additional water resources. This additional hydro energy
achieved through modern Third Unit efficiency would directly displace 206,620 gallons of diesel fuel that
would otherwise be needed to generate that same amount of energy, based on a diesel system efficiency
of 14.2 kWh per gallon. Considering KEA’s historical average cost of diesel fuel at $2.50 per gallon, the
Third Unit provides a direct savings of $516,549 in the first year of operation. Further, when taking diesel
engine maintenance cost into account, which in 2009 averaged 4.25¢ per kWh, the Third Unit would
provide an additional savings of $124,695. Therefore, the total savings provided by new turbine-
generator efficiency beginning in the first year of operation is estimated at $641,244.
Considering an inflation rate of 3% for fuel and diesel engine maintenance costs, the total savings
provided by the additional kilowatt-hours achieved through Third Unit’s efficiency over a 25-year period
(the remaining term of the Project’s FERC license) could reach $23.4 million.
4.1.2 Hydro generating redundancy provided by additional unit
The redundancy provided by an additional hydro turbine-generator allows KEA to continually utilize
hydropower to meet system loads while maintaining the other units. Typically, each turbine-generator
unit is taken offline for two weeks a year during periods of low system loads for routine planned
maintenance. If KEA takes a unit offline during when Terror Lake is full and spilling, KEA loses valuable
kilowatt-hours down the spillway that must be made up with diesel-powered generation. The Third Unit
would allow the Project to continuously utilize its water resources and meet system loads without diesel
when Unit 1 or 2 is offline.
To quantify the savings provided by this redundancy, consider the loss of the kilowatt-hours produced by
one hydro turbine-generator when it is offline for a two-week period during a spill year. Actual production
of the Project for the period July 1, 2009 through June 30, 2010 was 117,428,000 kWh; therefore, two
weeks of production for each unit is approximately 2,258,231 kWh (117,428,000 kWh annually, divided by
52 weeks in a year, divided by two units, times two weeks). Planned maintenance events would likely be
scheduled during periods of low loads; therefore a more realistic estimate of the lost kilowatt-hours would
be for only 60% of the unit’s average production, or 1,354,938 kWh. Based on historical spill frequency, it
is reasonable to expect Terror Lake to spill once every five years. For the purpose of this annualized
analysis, we can apply a 20% probability factor that the lost kilowatt-hours due to planned outages would
occur during a lake spill year. Therefore, the lost kilowatt-hours of one offline hydro turbine-generator
during planned maintenance can be estimated to be 270,988 kWh annually. Since both turbines will
require annual maintenance, the probable loss of hydropower production due to lake spill is then doubled
to 541,976 kWh each year. Based on these assumptions, it is estimated that KEA currently spends
approximately $95,418 a year in diesel fuel (based on a diesel system efficiency of 14.2 kWh per gallon at
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a cost of $2.50 per gallon) and $23,034 a year in additional diesel engine maintenance (based on 4.25¢
per kWh) that could be saved with hydropower redundancy provided by the Third Unit.
The savings provided by a redundant third unit are also significant in the case where a major unit failure
unexpectedly takes a generating unit down for a substantial amount of time. To quantify the savings
provided by a third turbine’s redundancy during an unplanned extended outage, we can apply a 1%
probability factor to the lost kilowatt-hours for one unit offline for six weeks (1,174,280 kWh annually,
divided by 52 weeks in a year, divided by two units, times six weeks outage for repair). The amount of
hydropower lost in this scenario is estimated at 67,747 kWh. For KEA to supply this lost power with
diesel-powered generation, it would cost $11,927 in diesel fuel and $2,879 in maintenance.
Considering no inflation for the first year, the annual savings provided by the Third Unit’s redundancy is
estimated at $133,259. Considering an inflation rate of 3% for fuel and diesel engine maintenance costs,
the total savings provided by the third turbine’s hydropower redundancy over a 25-year period could
reach $4.9 million.
4.1.3 Increased ability to support more wind energy in Kodiak
The greatest benefit provided by Third Unit is that the Project will become a larger platform for supporting
new sources of variable wind energy. An energy storage system is necessary for the variability of wind
energy, and the Terror Lake reservoir acts like a battery to store the wind energy generated by KEA’s
Pillar Mountain Wind Project. The reliability of wind energy on a minute-to-minute basis is uncertain
because winds could be gusting one minute and then suddenly calm. This unpredictability requires the
Project to have sufficient base load capacity available to meet Kodiak’s growing load requirements and
back-up KEA’s variable wind energy. Currently, the two hydro turbine-generators at the Project are
unable to keep up with Kodiak’s peak loads of 26 MW, and KEA continues to rely on diesel-powered base
load generation to meet these growing loads and back up the wind energy. The limited generating
capacity of a two-turbine configuration at the Project led to the summer 2010 situation where the Terror
Lake reservoir was spilling water while KEA’s diesel engines were running. A solution to this dilemma is
to increase the hydropower capacity with a Third Unit to optimize the synergistic relationship of KEA’s
hydro-wind generation system.
Under KEA’s current configuration, the contribution of wind energy resources has reached its maximum.
Without the expanded hydro capacity, the addition of future renewable energy on KEA’s system is not
feasible. An additional 11.25 MW of hydropower provided by the Third Unit would supply the necessary
capacity, energy storage, and frequency control to support and optimize additional wind energy
resources. KEA is already permitted for a 4.5 MW wind energy expansion to its existing Pillar Mountain
Wind Project. The Third Unit will allow Pillar Mountain Wind Project Phase II to be installed.
To quantify the economic benefit of increasing the renewable energy platform made possible by Third
Unit, consider the cost of diesel fuel that would be displaced by an additional 4.5 MW of installed wind
energy with Pillar Mountain Phase II, and the cost of constructing these additional wind turbines. Pillar
Mountain Wind Project Phase I has successfully operated for over a year. Phase II would consist of three
additional GE 1.5 SLE turbines, similar to those installed in Phase I; therefore actual costs and energy
production established with Phase I can be applied to Phase II. The construction cost for Phase II is
estimated at $23 million and is funded by the recently allocated New Clean Renewable Energy Bonds
(1.5% in interest over a 16 year term). The annual maintenance costs for the additional three wind
turbines are estimated at $250,000, inflated by 3% annually for the 20 year wind turbine life span. Based
on those assumptions, the first year cost of installing Phase II is estimated at $1,877,597. Phase I
produced 13.3 million kWh in its first year of operation, and the same energy production would be
expected for Phase II. For KEA to supply an equivalent amount of power with diesel-powered generation,
it would cost $2,341,549 in diesel fuel and $565,250 in diesel engine maintenance. Therefore, within the
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first year of Pillar Mountain Wind Project Phase II operation, KEA would save $1,029,203 by displacing
diesel-powered generation with wind energy. This would only be possible by installing the Third Unit.
Considering an inflation rate of 3% for fuel and maintenance costs, the total savings provided by
displacing diesel-powered generation with additional wind energy over a 20-year period could reach
$45.3 million.
4.1.4 Power and Economic Benefits in First Year of Operation
Taken together, the total savings provided by Third Unit within its first year of operation is estimated at
$927,859. Note that this estimate assumes that the Pillar Mountain Wind Project Phase II expansion and
Terror Lake Hydroelectric Project’s Third Unit begin operation at the same time.
Table 4-1 Summary of the Power and Economic Benefits in First Year of Operation
Annual Cost of the Proposal Annual Savings Provided by the Proposal
Debt cost -$751,847
Added plantwide efficiency
with the new hydro turbine-
generator unit
$641,244
Redundancy of additional
hydro turbine-generator
during maintenance and
repair
$133,259
Maintenance cost -$124,000
Additional wind energy made
possible with expanded hydro
capacity
$1,029,203
Total Cost in Year
One -$875,847 Total Savings in Year One $1,803,706
NET SAVINGS = $927,859
4.1.5 Power and Economic Benefits for Remaining Licensing Period
The power and economic benefits provided by the Third Unit have a significant cumulative effect over
time. To quantify the long-term benefits of the Third Unit, a net present value (NPV) analysis can be
calculated for the total cost to install and maintain this hydro turbine, along with the total savings provided
by the benefits of Third Unit over the 25 years remaining on the current FERC license. A discount rate of
5% is applied in this NPV analysis because this is the typical rate of interest charged by the Rural Utility
Service; a source of funds that KEA could consistently utilize for cash flow if necessary. Also included in
this NPV calculation is the consideration that the Third Unit provides additional savings for KEA’s system-
wide distribution infrastructure by stabilizing the island’s grid frequency.
In KEA’s integrated wind-hydro generation system, hydropower controls the system-wide frequency for
the isolated electrical grid. Variable wind energy provided by Pillar Mountain can introduce extreme
frequency fluctuations, and the hydro base load provided by the Project is able to adjust in real-time to
keep power quality on the grid stable. By running three 11.25 MW hydro units in parallel, rather than just
two 11.25 MW hydro units, the Project will gain an enhanced ability to keep KEA’s grid stable and ensure
reliable power delivery to its membership.
The two existing turbines at Terror Lake cannot tolerate more than approximately 3 MW of instability on
the grid without tripping. This imposes a 3 MW limit on the system’s distribution feeders. Taking future
projections of load growth into account, KEA estimates that there will be five feeders on the KEA system
that will likely exceed this 3 MW limit in the near future. Without a third turbine at Terror Lake, the
overloading problem on these five feeders will need to be resolved, potentially by building a new 10 MVA
substation and reconfiguring the distribution system through a series of switches to move loads to
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different feeders. Expanding the Project’s capacity by 50% would potentially raise the limit on the
system’s distribution feeders to 4.5 MW. This postpones the impact of future load growth on KEA’s
distribution system by allowing more capacity on the existing distribution lines.
To quantify the economic benefit of increased grid stability provided by the Third Unit, consider that KEA
can avoid spending $7.55 million in substation construction costs in year 5 of the NPV analysis by
postponing the substation construction to year 15. While inflation may increase the cost of substation
construction out in the future, delaying construction for another 15 years provides additional savings to
the KEA membership because of the NPV discount rate.
When all of these quantifiable direct and indirect factors are considered, the NPV of Third Unit is
$30,077,210. This is a tremendous savings for KEA’s membership.
The other unquantifiable benefits of this project, such as the stabilized cost of power, energy
independence, reduction in greenhouse gas production and the marketing opportunities that wind
generation provides to Kodiak’s business community, are not included in this economic analysis; however
it should be noted that those aspects of the project also increase the value of Third Unit for the long-term
sustainable health of Kodiak.
4.1.6 Operation of Project with Third Unit
With a Third Unit, the Project will be able to meet KEA’s peak loads and supply base load capacity to
support the Pillar Mountain Wind Project without dependence on diesel-powered generation. Under this
optimized hydro-wind energy generation system, KEA’s new dispatching sequence for meeting the
community’s electric load would first be to maximize the contribution of wind, and then supplement the
remaining load and stabilize the grid frequency with the Project’s hydropower. Diesel-powered
generation would only be necessary for emergency situations.
4.2 Comparison of Alternatives
4.2.1 KEA's Proposal
KEA proposes to install one new 11.25 MW turbine-generator unit in the empty bay in the powerhouse.
This additional Third Unit would provide added generation from Terror Lake through the efficiency of a
new unit and its overall enhancement to plantwide operations, redundancy to the existing two units for
better Project availability during planned and unplanned maintenance on the existing units, and greater
grid stability and frequency control on the KEA system-wide grid to allow KEA to add more wind power on
its islanded electric grid. Addition of the Third Unit would increase the installed capacity of the Project
from 22.5 MW to 33.75 MW; however, the greatest benefit of the Third Unit is not the additional energy it
will provide from the Project, but the additional base load capacity the expanded Project can utilize in
support of the Pillar Mountain Wind Project. The key benefit of the Third Unit is that it allows KEA to
optimize its hydro-wind energy generation system. Therefore, KEA’s proposal as presented here
considers both the additional 11.25 MW of hydro capacity provided by the Third Unit as well as the
additional 4.5 MW of wind energy provided by KEA’s Pillar Mountain Phase II because the integration of
additional wind energy on KEA’s isolated grid system is only possible through the installation of the Third
Unit.
The total cost to install the Third Unit is estimated at $10,624,550. KEA’s annual debt and maintenance
cost for the Third Unit will be $878,847. Considering the added efficiency of the new hydro turbine-
generator and redundancy of a Third Unit during Project maintenance, KEA estimates that the Third Unit
will provide KEA annual savings of $774,503 through the reduction of costly diesel-powered generation.
When the additional wind energy of the Pillar Mountain Wind Project Phase II is considered, KEA’s
estimates it will save an additional $1,803,706. Therefore, the annual net savings of KEA’s proposal is
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$927,859. This information can be found in the PAD Exhibit D: Statement of Costs & Financing for New
Development Proposal.
4.2.2 No-Action Alternative
Under the no-action alternative, the Project would continue to operate as it does now. KEA will remain
dependant on diesel fuel to meet Kodiak’s growing loads. KEA’s isolated grid will be unable to withstand
the frequency fluctuations of additional wind energy, so the construction of Pillar Mountain Wind Project
Phase II will not be feasible. Any additional load growth on KEA’s system would be supplied with diesel-
powered generation. With a limit on KEA’s future renewable energy portfolio, its membership will be
unprotected from the rising cost of diesel-powered generation, and the future economic development of
Kodiak will be stifled by a high cost of fossil-fuel based energy system.
4.3 Cost of Environmental Measures
There will be no construction in the tailrace or Kizhuyak River, nor will the operation of the third turbine
generator affect the water quality in the tailrace or Kizhuyak River. The proposed construction will not
disturb normal activities of wildlife or their use of habitat. Any additional flow to the tailrace with all three
turbines running will not affect salmon spawning and rearing. No threatened or endangered species
would be affected. There will be no change in the facility’s aesthetic appearance, and there is no
recreational use at the site. Therefore, there is no proposed environmental measure cost associated with
this project.
4.4 Greenhouse Gas Reduction
Diesel-powered generation is a source of global greenhouse gasses. The more gallons of diesel fuel
KEA consumes for electric generation, the more pollution is introduced into the atmosphere. The purpose
of installing the Third Unit is to reduce KEA’s consumption of diesel fuel. By optimizing the hydro and
wind resources with the Project’s expanded capacity and grid frequency support, KEA estimates that it
could save over a million gallons of diesel fuel that otherwise would be required to meet system loads.
The table below summarizes the amount of diesel fuel that can be saved by KEA’s proposal, and how
that fuel savings relates to CO2 emission reductions. The emission factor for CO2 is based on the
Environmental Protection Agency (EPA) Mandatory Reporting Rule for greenhouse gasses as specified in
40 CFR 98, subpart C, Tier 1 methodology.
Table 4-2 Summary of Greenhouse Gas Reduction Provided by Third Unit
Benefit of Third Unit Kilowatt-Hours
Generated/Saved
Gallons of
Diesel
Avoided
Tons of CO2
Emissions
Avoided
Higher efficiency of
modern unit and its effect
on plantwide operations
2,934,000 206,620 2,109
Redundancy of additional
unit during
maintenance/repair
609,723 42,938 439
Allow expansion of Pillar
Mountain Wind Project 13,300,000 936,620 9,560
Total Optimization of
Wind-Hydro Resources: 16,843,723 1,186,178 12,108
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Based on EPA’s online greenhouse gas equivalency calculator (www.epa.gov/cleanenergy/energy-
resources/calculator.html), an emissions savings of 12,108 tons of CO2, is equal to taking 2,315
passenger vehicles off the road. According to Alaska’s Department of Motor Vehicle 2009 statistics, that
comes out a third of all passenger vehicles registered in Kodiak.
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5. Consistency with Comprehensive Plans
Section 10(a)(2)(A) of the FPA, 16 U.S.C. section 803 (a)(2)(A), requires the Commission to consider the
extent to which a project is consistent with Federal or state comprehensive plans for improving,
developing, or conserving a waterway or waterways affected by the project.
On April 27, 1988, the Commission issued Order No. 481-A, revising Order 481, issued October 26,
1987, establishing that the Commission will accord FPA section 10(a)(2)(A) comprehensive plan status of
any Federal or state plan that: (1) is a comprehensive study of one or more of the beneficial uses of a
waterway or waterways; (2) specifies the standards, the data, and the methodology used; and (3) is filed
with the Office of the Secretary of the Commission. Requests for consideration are to be filed: (a) a letter
of transmittal of the document is to be filed with the Secretary and the actual document is to be sent to:
Ms. Pennie Lewis-Partee, FERC, Office of Energy Projects, 888 First Street, NE, Washington, D.C.
20426.
KEA has reviewed the List of Comprehensive Plans as of July 2010 and notes that the following plans
may be affected by the proposed Terror Lake Project. KEA will engage in consultation with the listed
Federal or state agency.
Table 5-1 List of Comprehensive Plans
Agency Plan Description Date Consistency
Determination
ADF&G Kodiak Archipelago Bear Conservation and
Management Plan
February
2002
ADF&G
Atlas to the catalog of waters important for
spawning, rearing or migration of anadromous
fishes. Juneau, Alaska, Six Volumes.
1998
ADNR
Alaska’s Outdoor Legacy: Statewide Comprehensive
Outdoor Recreation Plan (SCORP), 2004 – 2009.
Juneau, Alaska.
July 2004
ADNR Kodiak Area Plan for State Lands December
2004
Kodiak
Island
Borough
Kodiak Island Borough Coastal Management Plan
July 2007
USFWS
Revised Comprehensive Conservation Plan and
Environmental Impact Statement Kodiak National
Wildlife Refuge
August
2006
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6. Literature Cited
Afognak Native Corporation, Inc. Right-of-Way Easement – Access Road. April 2, 1982.
Alaska Community Database, Community Information Scenarios – www.commerce.state.ak.us .
September 2010.
Alaska Department of Commerce and Economic Development, Community Overview –
www.commerce.state.ak.us September 2010.
Alaska Department of Natural Resources. http://dnr.alaska.gov/parks/units/kodiak. 15 October 2010.
Alaska Division of Community and Regional Affairs, Alaska Community Database Online, Community
Information: City of Kodiak, Kodiak Island Borough, Kodiak Station – www.commerce.state.ak.us
September 2010
Alaska Energy Authority. Application for Non-Capacity Amendment, Terror Lake Hydroelectric Project,
Project Number 2743. Exhibits A, B, C, D, E, F, and G. July 1997.
Alaska Energy Authority. Terror Lake Land Use Management Plan. August 6, 2004.
Alaska Industrial Development and Export Authority. Transmittal of an original and three copies of the
Form 80 Recreation Report for the Terror Lake Hydroelectric Project. March 26, 1997.
Alaska Power Authority. Request to FERC for A Determination of Whether the Attached Lease is
Acceptable to FERC under Article 5, Terror Lake Hydroelectric Project. April 24, 1986.
Arctic Environmental Information and Data Center, , An Assessment of Environmental Effects of
Construction and Operation of the Proposed Terror Lake Hydroelectric Facility, Kodiak, Alaska.
University of Alaska, Anchorage Alaska. November 1979.
Blackett, R.F. Salmon Returns, Spawner Distribution and Pre-emergent Fry Survival in the Terror and
Kizhuyak Rivers, Alaska 1982 – 1990. Prepared by Trihey and Associates, Walnut Creek
California. April 1992.
Federal Energy Regulatory Commission. 2010 EAP Exemption for Terror Lake Project. Jan 15, 2010.
Federal Energy Regulatory Commission. Order Amending License and Approving Revised Exhibits,
Project No. 2743-045. October 7, 2004.
Federal Energy Regulatory Commission, Notice of Availability of Environmental Assessment, Project No.
2743-045. October 8, 2004.
Federal Energy Regulatory Commission, Office of Electric Power Regulation. FERC/EIS – Terror Lake
Hydroelectric Project, FERC No. 2743 – Alaska, Final Environmental Impact Statement. August
1981.
Federal Energy Regulatory Commission, Office of Energy Projects, Division of Hydropower
Administration and Compliance. FERC Project No, 2743-045, Environmental Assessment – Non-
Capacity Related License Amendment Application. October 7, 2004.
Federal Energy Regulatory Commission, Office of Hydropower Licensing, Project No. 2743-031-Alaska,
Correspondence to the Alaska Energy Authority exempting the Terror Lake Project from further
filing of the Form 80. June 17, 1997
Federal Energy Regulatory Commission, Portland Regional Office. Environmental Inspection Report.
August 15, 2006.
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Four Dam Pool Power Agency. Application for a Non-Capacity Related Amendment; Realignment and
Repair of the Terror Lake Project Tailrace. March 2004.
Four Dam Pool Power Agency. Summer 2005 Work Program including copies of permits for the Terror
Lake tailrace re-alignment work. February 25, 2005.
Four Dam Pool Power Agency. Terror River Hydroelectric Project Fish Salvage, 2005. Note that this
document was provided to the ADF&G in support of the Fish Resource Permit Application for the
period May 15 – July 15, 2005
Four Dam Pool Power Agency Terror Lake Tailrace Realignment Project, Bald Eagle Nest Survey.
prepared by Meridian Environmental, Inc. April 2005.
Federal Energy Regulatory Commission, Office of Hydropower Licensing, Project No. 2743-031-Alaska,
Correspondence to the Alaska Energy Authority exempting the Terror Lake Project from further
filing of the Form 80. June 17, 1997
Federal Energy Regulatory Commission, Portland Regional Office. Environmental Inspection Report.
August 15, 2006.
Hatch Acres Corporation. Terror Lake Hydroelectric Project Engineering and Regulatory Assessment of
Third Turbine Addition. September 2010.
Kodiak Chamber of Commerce. Kodiak Community Profile and Economic Indicators. 2nd Quarter 2009.
Kodiak Chamber of Commerce. Response to AFDF “Energy Use” RFP – Sustainable Salmon,
Renewable Power.
Kodiak Electric Association, Inc. Annual Minimum Flow Compliance Report, Article 43. March 1, 2010.
Kodiak Electric Association, Inc. Excerpts from the Application for License – Terror Lake Project.
December 1978.
Kodiak Electric Association, Inc. Report on Collecting Activities, ADF&G Permit No. SF-2005-025. 2005.
Kodiak Island Borough – Authorization to Enter on Kodiak Island Borough Land to Design, Construct and
Maintain the TerrorLake Hydroelectric Project. March 26, 1982.
Lobdell, John E. 1980a. An Archaeological Reconnaissance of the Proposed Swampy Acres to Bells
Flat Transmission Line, Kodiak Island, Alaska. Prepared for Land Field Services, Inc. for Kodiak
Electric Association, Inc. by Department of Anthropology, University of Alaska. Anchorage,
Alaska.
Lobdell, John E. 1980b. An Archaeological Reconnaissance of the Proposed Swampy Acres to Bells Flat
Transmission Line, Kodiak Island, Alaska: An Addendum. Prepared for Land Field Services, Inc.
for Kodiak Electric Association, Inc. by Department of Anthropology, University of Alaska.
Anchorage, Alaska.
Meridian Environmental, Inc. Terror Lake Tailrace Realignment Project, Bald Eagle Nest Survey. April 6,
2005.
Northern Land Use Research, Inc. Review of Cultural Resources in Vicinity of Kodiak Electric Association
Terror Lake Project – FERC No. 2743, Application for Capacity Amendment to License, A
Proposed Additional Third Turbine/Generator Unit. October 2010. NOTE: CONTAINS
PRIVILEGED INFORMATION – DO NOT RELEASE..
PDEA
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Railsbeck, PE and EW Trihey. Effects of the Terror Lake Hydroelectric Project on Salmon Production in
the Terror and Kizhuyak Rivers, Alaska. Trihey and Associates, Walnut Creek, CA. October 1992.
Righter, Elizabeth. Report on a Preliminary Archaeological Pedestrian and Aerial Reconnaissance of the
Proposed Terror Lake Hydroelectric Plant Site, Kodiak Island, Alaska. WAPORA, Inc., Berwyn,
Pennsylvania. Submitted to International Engineering Company, San Francisco, California. 1979.
Righter, Elizabeth, Richard H. Jordan, Michael Morris, International Engineering Company and Wapora
Inc. 1980. Report of a comprehensive archaeological reconnaissance and National Register
eligibility tests at the Terror Lake Hydroelectric Project site, Kodiak Island, Alaska, 1980. Permit
#80-AK-122. Submitted to International Engineering Company, San Francisco, California by
WAPORA, Inc., Berwyn, Pa.
Sigler, M.F. R.J. Foy, J.W. Short, M. Dalton, L.B. Eisner, T.P. Hurst, J.F. Morado, and R.P.Stone –
Forecast Fish, Shellfish, and Coral Population Responses to Ocean Acidification in the North
Pacific Ocean and Bering Sea – An Ocean Acidification Research Plan for the Alaska Fisheries
Science Center. August 2008.
State of Alaska, Department of Natural Resources, Division of Mining, Land and Water - ADL No. 204024
- Right-of-Way / Easement - Access Road. November 16, 2001
State of Alaska, Department of Natural Resources, Division of Mining, Land & Water – ADL No. 206462 –
Terror lake Hydroelectric Project – Lease Agreement – Jetty Tidelands. November 16, 2001
Trihey and Associates. Agency Review Comments and Licensee Responses – Terror Lake Fisheries
Monitoring Reports – Kodiak Island, Alaska. October 1992.
Trihey, E.W., N.D. Pottinger and S Railback. An assessment of Effects from Construction and Operation
of the Terror Lake Hydroelectric Project on the Temperature and Streamflow of the Terror and
Kizhuyak Rivers, Kodiak Island, Alaska. Trihey and Associates, Walnut Creek, CA. 81 pp. 1992.
United States Fish and Wildlife Service, National Wetlands Inventory Online Database.
http://137.227.242.85/wetland/wetland.html. 18 October 2010.
visit@kodiak.org, Explore Kodiak, Official Guide to Adventure on Alaska’s Emerald Isle and the Katmai
Coast. 2009.
www.kodiakelectric.com. Accessed October 4, 2010.
Yarborough, Linda Finn. Summary Report: Archaeological Reconnaissance Kodiak National Wildlife
Refuge. Terror Lake Hydroelectric Project, Kodiak Alaska, ms. 1979.
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7. List of Preparers
The Terror Lake Project Draft PDEA has been compiled by the following:
Name Affiliation Project Responsibility
Joe Earsley Hatch Engineering
Jim Ferguson Consultant Environmental Sections
Nan A. Nalder Hatch Regulatory Sections
Jennifer Richcreek Kodiak Electric Association Regulatory Environmental Sections
Darron Scott Kodiak Electric Association Proposed Action and Alternatives/Developmental
Analysis
Langley Sears Hatch Regulatory Sections
Jim Thrall Consultant Environmental Sections
Heidi Wahto Hatch Regulatory Sections
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8. List of Recipients
Permittee
Kodiak Electric Association, Inc. Darron Scott
P.O. Box 787, Kodiak, AK 99615-0787
907-486-7707; dscott@kodiak.coop
Jennifer Richcreek, Environmental Coordinator
P.O. Box 787, Kodiak, AK 99615-0787
907-486-7704; jrichcreek@kodiak.coop
Federal Agencies
Federal Energy Regulatory
Commission
Kimberly Bose, Office of the Secretary
888 First Street NE, Washington, D.C. 20426
Mohamad Y. Fayyad
Division of Hydro Administration & Compliance
PJ12.2
888 First Avenue NE
Washington, DC 20426
202-502-8759; mohamad.fayyad@ferc.gov
Erich Gaedeke, Fisheries Biologist Portland Regional Office
805 SW Broadway, Suite 550, Portland, OR 97205
erich.gaedeke@ferc.gov
Karl F. Swanson; Civil Engineer
Portland Regional Office, OEP
805 SW Broadway, Fox Tower, Suite 550 Portland, OR
97205
503-552-2734; Karl.Swanson@ferc.gov
Patrick Regan, P.E., Regional Engineer
Portland Regional Office; OEP
805 SW Broadway, Fox Tower, Suite 550 Portland, OR
97205 Patrick.Regan@ferc.gov
National Oceanic Atmospheric
Administration
Eric Rothwell, Hydrologist
Habitat Conservation Division
222 West 7th Ave., Room 517, Anchorage, AK 99513
907-271-1937; eric.rothwell.noaa.gov
Susan Walker, NMFS Hydro Coordinator
P.O. Box 21668, Juneau, AK 99802
907-586-7646; Susan.walker@noaa.gov
US Army Corps of Engineers Jack Hewitt, Program Manager
Regulatory Division
P.O. Box 6898, Elmendorf AFB, AK 995063
907-753-2708; jack.j.hewitt@usace.army.mil
US Bureau of Indian Affairs Regional Director, Alaska Region
P.O. Box 25520, Juneau, AK 99802
USDOI Bureau of Indian Affairs, Alaska Regional Archeology,
3601 C St, Suite 1110, Anchorage, AK 99503, 907-271-4003
US Department of the Interior USDOI National Park Service
240 W 5th Ave, Anchorage, AK 99501
US Environmental Protection
Agency
Marcia Combes, Director, Alaska Operations Office
222 West 7th Ave, #19, Anchorage, AK 99513
907-271-5083; combes.marcia@epamail.epa.gov
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US Fish and Wildlife Service Greg Balogh, Endangered Species Act Branch Chief
Anchorage Fish and Wildlife Field Office
605 West 4th Ave., Room G-61, Anchorage, AK 99501
907-271-2778; greg_balogh@fws.gov
Phil Brna, Fish & Wildlife Biologist
605 West 4th Ave, Rm G61, Anchorage, AK 99501
907-271-2440; phil_brna@fws.gov
Fran Mann, Conservation Planning Assistance
Anchorage Fish and Wildlife Field Office
605 West 4th Ave., Anchorage, AK 99501
907-271-3053; frances_mann@fws.gov
John Trawicki, Branch Chief, Chief Hydrologist
US Fish and Wildlife Service
1011 E. Tudor Road, MS-231, Anchorage, AK 99503
john_trawicki@fws.gov
Gary Wheeler, Refuge Manager
Kodiak National Wildlife Refuge Headquarters
1390 Buskin River Road, MS-559, Kodiak, AK 99615
907-487-2600; gary_wheeler@fws.gov
US Geological Survey
- Alaska Science Center
David Meyer, Branch Chief, Supervising Hydrologist
Water Resources Division
4210 University Dr., Anchorage, AK 99508
907-786-7141; dfmeyer@usgs.gov
State Agencies
Alaska Energy Authority Doug C. Ott, Hydroelectric Program Manager
813 West Northern Lights Blvd., Anchorage, AK 99503
907-771-3067; dott@aidea.org
Alaska Department of
Environmental Conservation
Dan Easton, Director
555 Cordova St., Anchorage, AK 99501
907-465-5180; dan.easton@alaska.gov
Alaska Department of Fish and
Game
Joe Klein, Aquatic Resources Unit Supervisor
Alaska Department of Fish and Game, SF/RTS
333 Raspberry Rd, Anchorage, AK 99518-1599
907-267-2148; Joe.klein@alaska.gov
Monte Miller, Hydropower Coordinator
333 Raspberry Road, Anchorage, AK 99518
907-267-2312; fax: 907-267-2422; monte.miller@alaska.gov
Larry Van Daele, Area Biologist
Division of Wildlife Conservation
211 Mission Rd., Kodiak, AK 99615
907-486-1880; larry.vandaele@alaska.gov
Alaska Department of Natural
Resources (ADNR)
Dick Mylius, Director
550 W 7th Ave, Suite 1070, Anchorage, AK 99501
907-269-8600; Dick.mylius@alaska.gov
Alaska Department of Natural
Resources
State Historic Preservation Office
Judy Bittner, State Historical Preservation Office
550 W 7th Ave, Suite 1310, Anchorage, AK 99501
907-269-8715; Judith.bittner@dnr.state.ak.us
Alaska Department of Natural
Resources
Division of Mining, Land, and Water
Dan Bevington, Natural Resource Specialist II
550 West 7th Ave, Suite 900C, Anchorage, AK 99501
907-269-8556; daniel.bevington@alaska.gov
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Gary Prokosch, Chief Water Resources Section
Division of Mining, Land, and Water
550 W 7th Ave, Suite 1020; Anchorage, AK 99501
907-269-8645; Gary.prokosch@alaska.gov
Local Entities
Alaska Marine Conservation
Council
Dave Kubiak, Board Chairman
P.O. Box 193, Kodiak, AK 99615
907-486-5536; mythos1@starband.net
Alutiiq Museum and Archaeological
Repository
Amy Steffian, MA RPA
Deputy Director
ATTN: Archaeology Stewardship Program
215 Mission Road, Suite 101, Kodiak, AK 99615
907-789-3365; amy@alutiiqmuseum.org
City of Kodiak Carolyn Floyd, City Mayor
710 Mill Bay Road, Room 216, Kodiak, AK 99615
907-486-8636; ask@city.kodiak.ak.us
Aimee Kniaziowski, City Manager
Administrative Branch
710 Mill Bay Road, Kodiak, AK 99615
907-486-8640; akniaziowski@city.kodiak.ak.us
Kodiak Brown Bear Trust Dave Cline, Chairman
22622 Deppman Road SW, Vashon Island, WA 98070
206-832-6002; davercline@gmail.com
Kodiak Chamber of Commerce Trevor Brown, Executive Director
100 Marine Way, Suite 300, Kodiak, AK 99615
907-486-5557; trevor@kodiak.org
Kodiak Island Borough Jerome Selby, Borough Mayor
P.O. Box 1962, Kodiak, AK 99615
907-486-4833; jerome.selby@assembly.kodiakak.us
Rick Gifford, Borough Manager
710 Mill Bay Road, Kodiak, AK 99615
907-486-9301; rgifford@kodiakak.us
Kodiak Public Broadcasting Corp. Jay Barrett, News Director
620 Egan Way, Kodiak, AK 99615
907-486-3181; jay.barrett@kmxt.org
Public Libraries - Kodiak, Alaska A. Holmes Johnson Memorial Library
319 Lower Mill Bay Road, Kodiak, Alaska 99615
Carolyn Floyd Library at Kodiak College
117 Benny Benson Drive, Kodiak, AK 99615
Chiniak Public Library
42650 Chiniak Highway, Chiniak, AK 99615
Jessie Wakefield Memorial Library
207 Spruce Drive, Port Lions, AK 99550
US Coast Guard Anthony Stobbe, Chief, Facilities Engineering Division
Integrated Support Command Kodiak
P.O. Box 195025, Building N38, Kodiak, AK 99619
907-487-5320 ex. 201; anthony.a.stobbe@uscg.mil
USDA Rural Utilities Service Eric Marchegiani, Public Utility Specialist
Rural Development Electrical
P.O. Box 771876, Eagle River, AK 99577
907-688-8732; eric.marchegiani@wdc.usda.gov
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Native Contacts
Afognak Native Corporation Arlene Nelson, Lands Assistant
Lands Department
215 Mission Road, Suite 212, Kodiak, AK 99615
907-486-6014; lands@afognak.com
Kodiak Island Tribal Environmental
Network
Mike Patterson
3248 Mill Bay Road, Kodiak, AK 99615
907-486-0458; dsmpatterson@chiniak.net
Koniag Incorporated Chuck Reft, Manager
Lands and Natural Resources
194 Alimaq Drive, Kodiak, AK 99615
907-486-2530 ex. 126; creft@koniag.com
Lesnoi Native Corporation Carol Pagano
2713 North 63rd St., Mesa, AZ 85215
480-471-8213; cepagano@cox.net
Natives of Kodiak, Inc. 215 Mission Road, Suite 201, Kodiak, AK 99615
907-486-3606; nokinfo@alaska.com
Native Village of Afognak Melissa Borton, Tribal Administrator
115 Mill Bay Road, Suite 201, Kodiak, AK 99615
907-4876-6357; tribe@afognak.org
Native Village of Karluk Alicia Reft, President
P.O. Box 22, Karluk, AK 99608
907-241-2218; karlukiracouncil@aol.com
Native Village of Larsen Bay Mary Nelson, President
P.O. Box 50, Larsen Bay, AK 99624
907-847-2207; nativeoflarsenbay@starband.net
Native Village of Old Harbor Angie Christianson, IGAP Coordinator
P.O. Box 62, Old Harbor, AK 99643
907-286-2215; ohtcigap@yahoo.com
Native Village of Ouzinkie Jill Boskofsky, Vice President and Environmental Director
P.O. Box 130, Ouzinkie, AK 99644
907-680-2259; jillboskofsky977@yahoo.com
Native Village of Port Lions Arnold Kewan, President
P.O. Box 69, Port Lions, AK 99550
907-454-2234; nvopl32@starband.net
Native Village of Tangirnaq Gordon Pullar, President
3248 Mill Bay Road, Kodiak, AK 99615
907-486-2821; j.pullar@uaf.edu
Old Harbor Native Corporation C. Walter Ebell, CEO
P.O. Box 71, Old Harbor, AK 99643
907-286-2286; ohncorp@starband.net
Ouzinkie Native Corporation Jackie Muller, Chairman
P.O. Box 89, Ouzinkie, AK
907-680-2208; no email listed
Sun'aq Tribe of Kodiak Rick Rowland, Environmental Coordinator
312 West Marine Way, Kodiak, AK 99615
907-486-4449; stknrd@ak.net
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KEA Project Team
Hatch Associates Consultants, Inc. Seattle Office
6 Nickerson Street, Suite 101, Seattle, WA 98109
206-352-5730
Nan A. Nalder, Project Manager
206-288-2998; nnalder@hatchusa.com
Joe Earsley, Project Engineer
907-229-9348; jearsley@hatchusa.com
Carl Mannheim, Hydrology Advisor
206-288-2919; cmannheim@hatchusa.com
Langley Sears, PDEA Manager
206-288-2995; lsears@hatchusa.com
Heidi Wahto, Regulatory Specialist
206-288-2903; hwahto@hatchusa.com
Jim Ferguson Jim Ferguson, Licensing/Permitting Consultant,
P.O. Box 15391, Fritz Creek, AK 99603-6391
907-230-9348; jim.ferguson.phd@gmail.com
R&M Consultants, Inc. John Magee, Engineering Advisor
9101 Vanguard Drive, Anchorage, AK
907-646-9656, jmagee@rmconsult.com
Jim Thrall Jim Thrall, Environmental Compliance Assistance
13643 Karen Circle, Anchorage, AK 99515
907-242-1449; jthrallinak@yahoo.com
PDEA - Appendix A
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
Draft
November 5, 2010
Appendix A
Figures
PDEA - Appendix A
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
Draft
November 5, 2010
Appendix A – Figures
FIGURE
NUMBER
DESCRIPTION NOTES
PDEA-1 Project Location Map Provides reviewer with a map of Kodiak Island and
location of Kodiak and Terror Lake Powerhouse
PDEA-2 KEA Service Area Provides reviewer with a schematic depicting KEA’s
service area, transmission line connecting load centers,
“cannery row”, USCG Station, Pillar Mountain Wind Farm,
and Diesel generation units.
PDEA-3 Conceptual Project Layout Provides reviewer with a schematic portrayal of the
relationships between major Project features. Presents an
Artist rendition of the major Project features superimposed
on an aerial “photo” showing topography.
PDEA-4 Aerial View of Powerhouse
Area
Provides reviewer with an aerial photo labeled to show
existing facilities – project features and areas that will be
involved in installation of the Third Unit.
PDEA-5 View of Powerhouse from
Downstream Side
Provides reviewer with a photo showing the existing empty
bay where the Third Unit is proposed to be installed.
PDEA-6 Section through Powerhouse Provides reviewer with a schematic image of the water
passage from the penstock through the turbine to the
tailrace.
PDEA-7 Aerial View of Kizhuyak River
and Access Road
Provides reviewer of an aerial photo with the location of
the existing dock and jetty and access road that would be
utilized during construction. Also provides a view of the
Kizhuyak River as it makes its way to salt water.
PDEA-8 Aerial View of Dock and Partial
Access Road
Provides reviewer of an aerial photo showing the dock and
partial access road.
PDEA-9 Wetlands Delineation of
Access Road and Dock
Provides aerial view of identified wetlands by USFWS
near the access road and dock.
PDEA-10 Wetlands Delineation of
Powerhouse Area
Provides aerial view of identified wetlands by USFWS
near the powerhouse area.
PDEA-11 Recreation Sites Near
Proposed Project
Map depicting existing recreation sites on Kodiak Island.
Map courtesy of Department of Natural Resources.
PDEA-12 Existing Recreation - Closer
View
Map depicting existing recreation sites with a closer view
of sites near Kodiak. Map courtesy of Department of
Natural Resources.
PDEA-13 Land Ownership Map Provides the reviewer with a map on USGS Quandragle
Kodiak C-3 Showing Land Ownership
PDEA-14 Tailwater Rating Curve Provides reviewer with curve showing relationship
between depth and flow of water in tailrace.
PDEA-15 Schematic Diagram of Water
Diversions Associated with
Project
Provides reviewer with a schematic diagram showing the
Terror River System, the diversions, and the Kizhuyak
River. This Amendment Application affects the area from
the powerhouse and tailrace to the Kizhuyak River.
PDEA-16 Powerhouse Plan View
Showing Existing & Proposed
Turbine/Generator Units
Provides reviewer with a plan view of the existing
powerhouse showing the existing and proposed units.
PDEA-17 Switchyard Plan View Provides the reviewer with a plan view of the existing
switchyard showing existing and proposed transformers
PDEA-18 Project Substation One Line
Diagram
Provides the reviewer with a schematic of the additional
Third Unit and the existing units.
Powerhouse
Kizhuyak Bay
Terror Lake Project FERC No. 2743
Capacity Application for Amendment – Third Unit
Project Location Map
Figure PDEA - 1
Figure PDEA - 2
Terror Lake Project FERC No. 2743
Capacity Application for Amendment – Third Unit
Conceptual Project Layout
Figure PDEA - 3
Kizhuyak RiverExtra BunkhouseKEA Staff HousingLaydown AreaSubstationShopPowerhousePenstockTransmission to townAccess RoadMancamp and dock/jettyTailraceGarbage IncineratorWarehouseFueling StationLaydown AreaTerror Lake Project FERC No. 2743Capacity Application for Amendment – Third UnitAerial View of Powerhouse AreaFigure PDEA - 4
Terror Lake Project FERC No. 2743Capacity Application for Amendment – Third UnitView of Powerhouse from Downstream SideFigure PDEA - 5Existing First UnitExisting Empty Bay Third UnitExisting Second Unit
Terror Lake Project FERC No. 2743Capacity Application for Amendment – Third UnitSection through PowerhouseFigure PDEA - 6
Access RoadDock and JettyKizhuyak RiverTerror Lake Project FERC No. 2743Capacity Application for Amendment – Third UnitAerial View of Kizhuyak River and Access RoadFigure PDEA - 7
Terror Lake Project FERC No. 2743Capacity Application for Amendment – Third UnitAerial View of Dock and Partial Access RoadFigure PDEA - 8Dock and JettyAccess RoadKizhuyak River
Terror Lake Project FERC No. 2743Capacity Application for Amendment – Third UnitWetlands Delineation of Access Road and DockFigure PDEA - 9Access RoadDock/JettyPowerhouse AreaKizhuyak Riverhttp://137.227.242.85/wetland/wetland.html
Terror Lake Project FERC No. 2743Capacity Application for Amendment – Third UnitWetlands Delineation of Powerhouse AreaFigure PDEA - 10Access RoadKizhuyak RiverTailracePowerhousehttp://137.227.242.85/wetland/wetland.html
Image courtesy of:http://dnr.alaska.gov/parks/units/kodiak/Terror Lake Project FERC No. 2743Capacity Application for Amendment – Third UnitRecreation Sites Near Proposed ProjectFigure PDEA - 11Powerhouse Area
Terror Lake Project FERC No. 2743
Capacity Application for Amendment – Third Unit
Existing Recreation – Closer View
Figure PDEA – 12
Powerhouse Area
Image courtesy of:
www.kodiak.org; Explore Kodiak guidebook
Terror Lake Project FERC No. 2743
Capacity Application for Amendment – Third Unit
Land Ownership Map
Figure PDEA – 13
Image courtesy of:
Alaska Department of Natural Resources, Division of Land
Powerhouse Area
Terror Lake Project FERC No. 2743Capacity Application for Amendment – Third UnitTailwater Rating CurveFigure PDEA - 14
Terror Lake Project FERC No. 2743Capacity Application for Amendment – Third UnitSchematic Diagram of Water Diversions Associated with ProjectFigure PDEA - 15
PDEA - Appendix B
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
Draft
November 5, 2010
Appendix B
Project Chronology
(To be included in Final Amendment Application)
PDEA - Appendix C
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
Draft
November 5, 2010
Appendix C
Record of Consultations
(To be included in Final Amendment Application)
PDEA - Appendix D
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
Draft
November 5, 2010
Appendix D
Scoping Document No. 1
(To be included in Final Amendment Application)
PDEA - Appendix E
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
Draft
November 5, 2010
Appendix E
Approvals, Measures, Permits and Plans
PDEA - Appendix E-1: Approvals
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
Draft
November 5, 2010
Appendix E-1: Approvals
The following Project approvals are included in Appendix E-1:
Approval Date
Authorization to Enter on Kodiak Island Borough Land
to Design, Construct and Maintain the Terror Lake
Hydroelectric Project
March 26, 1982
ADNR Right-of-Way / Easement for Access Roads
ADL No. 204024
November 16, 2001
ADNR Lease Agreement for Jetty Tidelands
ADL No. 206462
November 16, 2001
Afognak Native Corp, Inc. Right-of-Way / Easement April 2, 1982
Terror Lake Powerhouse Area Land Ownership Map March 1997
FERC Exemption of Project from Recreation Form 80 June 17, 1997
FERC Exemption of Project from Preparing EAP January 15, 2010
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PDEA - Appendix E-2: Measures
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
Draft
November 5, 2010
Appendix E-2: Measures
KEA requires its Contractors to comply with the attached Contract Terms and Conditions: Special
Provisions Related to Environmental Protection.
Contract Terms and Conditions
Special Provisions Related to Environmental Protection Page 1 of 4
This section is intended to emphasize to the Contractor and his personnel, subcontractors and
suppliers that they shall comply with all environmental protection requirements while on Project
Lands. KEA’s Environmental Coordinator may serve as an environmental compliance monitor
to ensure that the Contractor complies with the following regulatory requirements while on
Project Lands.
CONTRACTOR USE OF PROJECT FACILITIES
The Terror Lake Hydroelectric Project crew quarters, access roads, pads and staging areas are to
be used only in activities directly associated with the operation and maintenance of Project
Facilities and, as such, are not for non-project related uses of any kind unless permitted by KEA
on a case-to-case basis. Contractor personnel are to confine their activities to the Project Area
relevant to their work under this contract, including the contractor staging area and lodging
facilities provided by KEA. No travel on project roads or trails is permitted beyond the Power
Tunnel East Portal work area except as approved by KEA on a case-by-case basis.
The Contractor and his employees are not allowed to use the Project Area for recreational
purposes, such as hiking, hunting, or fishing. No motorized wheeled vehicles are to be used for
recreation on USFWS Kodiak National Wildlife Refuge Land.
During the course of work under this contract, the Contractor shall ensure that all survey
monuments, witness corners, reference monuments, and bearing trees be protected against
damage, destruction, or obliteration. Any damaged or obliterated markers shall be reestablished
in accordance with accepted survey practices of the State.
The Contractor and his employees shall be familiar with the Alaska State Historic Preservation
Office’s laws related to the protection of cultural resources. The Contractor shall notify KEA
immediately if any archaeologically significant materials or sites are discovered during the
course of their work.
EQUIPMENT & VEHICLE OPERATION ON PROJECT LANDS
Stipulations regarding vehicle operation on the Terror Lake Hydroelectric Project Lands have
been agreed upon by KEA and the USFWS, ADF&G and Afognak Native Corporation and shall
apply to the Contractor and his employees. There shall be no motorized wheeled access to any
road on Project Lands other than official use vehicles. No personal motorized wheeled vehicles
area allowed at the facility. The speed limit in the Powerhouse/Housing Area is 10 mph. The
speed limit on the Project’s access roads is 35 mph.
A gate will be maintained on the access road near the border between USFWS Kodiak National
Wildlife Refuge land and the State of Alaska land. No motorized wheeled traffic other than
official use will be permitted on the road system within USFWS Kodiak National Wildlife
Refuge land.
To prevent the spread of non-native invasive species, equipment and vehicles should be cleaned
prior to their delivery on Project Lands.
Contract Terms and Conditions
Special Provisions Related to Environmental Protection Page 2 of 4
No equipment or vehicles may be operated below a water body’s ordinary high water mark.
Refueling of equipment or the storage of petroleum products may not occur within 100 feet of a
water body’s ordinary high-water line.
FUEL & CHEMICALS
The Contractor is responsible for the transport, handling and control of their petroleum based
products, chemicals, and flammable liquid products which may be used on or around the Project
Site in accordance with all local, state and federal regulations. Petroleum, oils, and lubricants
products used and/or stored at the Project Site including diesel fuel, refined oil, gasoline,
hydraulic fluids, anti-freeze, lubricants, solvents, rust inhibitors, and used oils, shall be stored in
containers suitable for the product and placed within secondary containment as required by 40
CFR Section 112.
The Contractor shall provide KEA a copy of a job-specific Spill Prevention, Control and
Countermeasure (SPCC) plan that complies with 40 CFR Section 112 prior to bringing any fuel
on-site. The Contractor SPCC shall include detailed descriptions of fuel handling and refueling
procedures and shall provide emergency cleanup procedures in case spills occur and provide and
maintain equipment and materials to be used during spill cleanup operations. The Contractor
shall prevent spills and hazards from occurring during operations and shall cleanup water and
land contamination if such spills occur. Any spills of any nature or size shall be reported to KEA
immediately and Contractor is responsible for reporting to ADEC all spills resulting from
Contractor activities at the facility.
The Contractor shall require that its manufacturers and suppliers of chemicals and hazardous
products meet the requirements of 29 CFR Section 1910. In keeping with this requirement, the
Contractor shall require that the product manufacturer, when shipping products which may
contain hazardous materials to the site, accompany the product with a completed MSDS to
provide precise chemical and physical properties.
The Contractor shall maintain an accurate accounting and product information system for fuels
and hazardous materials delivered to, stored at, and used on the Project Site. Such an accounting
system shall monitor fuel and chemical products through final usage and disposal, and shall be
designed to alert workers as to proper handling procedures for fuels, chemicals and hazardous
materials, hazardous wastes and materials of danger to health and environment. The information
system shall identify potential dangers if mishandling occurs and medical actions to be taken
should injury result from mishandling.
DISPOSAL OF WASTES
All putrescible wastes and other garbage shall be incinerated in accordance with KEA policies at
the Terror Lake Hydroelectric Project incinerator and shall be stored in closed buildings or bear-
proof enclosure/containers prior to incineration. No outside garbage storage will be allowed.
Any chemical and petroleum products provided by the Contractor shall be removed and disposed
of off-site in a manner compliant with state and federal regulation.
The Contractor’s activities shall be performed by methods that prevent entrance or accidental
spillage of solid matter, contaminants, debris and other spillage of pollutants and wastes into
Contract Terms and Conditions
Special Provisions Related to Environmental Protection Page 3 of 4
streams, lakes, bays, and underground water sources. Such pollutants and wastes include, but are
not limited to: refuse, soil, silts, rock, wood, wood by-products, garbage, cement, concrete,
sewage effluent, industrial waste, radioactive substances, oil and other petroleum products,
deleterious chemicals, and mineral salts.
EROSION AND SEDIMENTATION CONTROL
Work under this contract shall be conducted in a manner consistent with erosion and sediment
control best management practice guidelines. The Contractor shall design its work to ensure
maximum soil stability with control measures utilized as necessary to avoid induced and
accelerated erosion. Sediment and erosion control measures shall be provided by the Contractor
for all project work involving excavation, embankment construction, and/or grading.
Measures that may be used during work under this contract to provide erosion and sediment
control include installing sediment filters such as fabric or hay bale fences, providing temporary
drainage retention facilities to slow drainage and allow sediments to settle out, and providing
energy dissipaters such as check dams or berms to reduce storm runoff velocities. The area of
disturbance should be limited to the specific area being stabilized, and the time that a disturbed
area is exposed should be minimized by re-vegetating the disturbed areas as soon as practicable
with native plant species. Any intentional or unintentional bank cuts, slopes, fills, and other
exposed earth work attributable to this project shall be stabilized and re-vegetated as practicable
to prevent erosion which may occur both during and after the project.
All debris removed from coastal waters shall be deposited in an upland location to avoid
reintroduction to the stream or damage to riparian habitat. Debris shall not be disposed below a
water body’s ordinary high-water line. No debris shall be staged or disposed of in a wetland,
even temporarily. Stream banks, including stream bank vegetation, shall not be altered to
facilitate debris removal. All depressions and potholes created by material removal should be
leveled.
Stockpiling of soil material is permitted providing that the stockpile is not located where
contamination of a natural or manmade drainage or stream will occur. Stockpiling of material
may occur within the working or clearing limits. The stockpile shall be contoured to prevent
erosion, and the stockpile shall be removed before expiration of the Contract.
Armor stone shall be clean of silts, clays, and organic materials prior to placement in the stream.
Structures that cross a fresh water body shall not be constructed of any wood treated with a
preservative containing creosote or pentachlorophenol.
WILDLIFE & LANDSCAPE
The Contractor shall minimize the disturbance of natural vegetation and exercise care to preserve
the natural landscape by conducting all its operations in a manner so as to prevent any
unnecessary destruction, scarring, or defacing of the natural surroundings throughout the Project
Area.
Contract Terms and Conditions
Special Provisions Related to Environmental Protection Page 4 of 4
Encounters with wildlife may occur on Project Lands. Animals are not to be harmed in any way.
If construction activities pose harm to wildlife and the wildlife does not leave, consult with your
management and notify KEA. All eagles, their eggs and their nests shall be protected from
disturbance and/or destruction. No vehicles or equipment may enter, cross, destroy or interfere
with beaver dams.
There is a large concentration of bears in the Terror Lake Hydroelectric Project Area.
Stipulations regarding bears on the Terror Lake Hydroelectric Project Lands have been agreed
between KEA and the USFWS, ADF&G and Afognak Native Corporation and shall apply to the
Contractor and his employees. The Contractor and his employees are required to participate in a
Bear Safety Orientation provided by KEA to mitigate the possibility of conflict between
personnel and a bear. In accordance with KEA’s Bear Safety Program, garbage handling will be
done by incineration, there will be no feeding of wildlife, and a bear incident reporting form will
be completed upon any incident with a bear in the Project Area. The completed bear incident
reporting form will be kept at KEA headquarters and a copy will be sent to ADF&G.
PROTECTION OF AQUATIC RESOURCES
The Contractor shall notify KEA immediately if it becomes necessary to enter a water body
within vicinity of the Project area. As required by state and federal protections of aquatic
resources, KEA will then instruct the Contractor on the specific measures his employees must
follow to minimize any adverse affects of their work. Should “work in the wet” be required, a
Title 16 Habitat Permit may be required along with other required measures. For example, the
Contractor or his employees shall only enter a water body during the period of May 15 through
July 15, if necessary, to minimize impact to the salmon spawning cycle. A fish salvage
operation may be implemented, if necessary.
PDEA - Appendix E-3: Permits
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
Draft
November 5, 2010
Appendix E-3: Permits
KEA holds or would secure the following permits:
Permit Note
DNR Water Rights (to be transferred from FDPPA to KEA) Attached
DNR ACMP Consistency Determination To be secured
401 Water Quality Certification Waiver would be
requested
Threatened and Endangered Species / ESA Compliance To be requested
Magnuson-Stevens Act Compliance To be requested
Section 106 National Historic Preservation Act Compliance To be requested
US Army Corps of Engineers Permit Modification If required
ADF&G Division of Habitat General Waterway/Waterbody If required
PDEA - Appendix E-4: Plans
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
Draft
November 5, 2010
Appendix E-4: Plans
Included in this appendix:
Terror Lake Land Use Management Plan, August 2004
The following plans will be included in the Final Application for License Amendment:
Erosion and Sediment Control Plan
Spill Prevention, Control and Countermeasure Plan
The following plan will be submitted to the FERC Regional Engineer for approval as part of the
preconstruction approvals:
Quality Control Inspection Program
The following plans will be required of the Contractor:
Project-specific Spill Prevention, Control and Countermeasure Plan
Fire Prevention Plan
Fuels and Hazardous Substances Storage Plan
Safety During Construction Plan
PDEA - Appendix F
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
Draft
November 5, 2010
Appendix F
Photographs
PDEA - Appendix F
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
Draft
November 5, 2010
1
Appendix F – PDEA Photographs
Photo Title
1 Float Plane at Arrival Point for the Project
2 View of Jetty and Dock (Boat and Float Plane Access for Project)
3 Aerial View of Access Road and Kizhuyak River
4 Aerial View of Powerhouse Area
5 Additional Aerial View of Powerhouse Area
6 View Looking East Across Tailrace
7 View Looking East - Poweouse and Tailrace
8 View Looking West - Powerhouse, Tailrace, and Fabrication Shop
9 View Looking Upstream at Powerhouse
10 Powerhouse from Downstream Side
11 View of Powerhouse with Two Units Discharging
12 Tailrace Stoplog in place in Third (left) Bay
13 Terror Lake Hydroelectric Project Sign
14 Powerhouse Interior - Third Bay in Foreground
15 Powerhouse Interior - Third Bay in Background
16 Powerhouse Interior - Cover/Floor over Third Bay on Turbine Floor
17 Powerhouse Interior - Third Turbine Location with Existing Unit 2 in Background
18 Reinforcing Rod and Waterstop at Third Bay in TSV Area
19 Turbine Discharge Flume at Third Bay
20 Additional View of Turbine Discharge Flume at Third Bay
21 Unit 2 Turbine from Third (Empty) Bay
22 Turbine Pit Area
23 Unit 2 TSV Area
24 Control Valves for TSV on Unit 2
25 Unit 3 TSV
26 Unit 3 TSV Area
27 New Governor Hydraulic Control
28 Governor Hydraulic Pressure System
29 Governor Control Panel
30 Unit 1 and 2 Generators with the Third Bay in Background
31 Generator Nameplate
32 Generator Breaker, Surge, and Neutral Cubicles
33 Underside of Powerhouse Crane
34 Cooling Water Strainer and Piping
35 Tailwater Depression Blower
36 Service Air Compressor (left) and Governor Air Compressor (right)
37 Control Room Showing Location for Third Unit Control Panel
38 Control Room and Living Quarters (above)
39 Powerhouse Service Bay
40 Downstream Gallery on Turbine Floor
41 New Pelton Wheel for Unit 1 and Unit 2
42 Switchyard - 138 kV Main Bus Showing Space Provided for Third Unit Connections
43 Switchyard - Conduit Stub-ups for Third Unit Equipment
44 Nameplate - Generator Stepup Transformer
45 Nameplate - 145 kV, 1200-A Circuit Switcher
46 Switchyard - Transformer and Circuit Switcher Connected to Main 138 kV Bus
47 Conduits Provided for Future 13.8 kV Power Cables to Stepup Transformer
48 Provision for Cable Tray Extension for Unit 3 Low Voltage Power and Control Cables
49 Similar Openings in Floor Under Area for New Control Panel
50 Bedroom Above Powerhouse for Temporary Contractor Crew
51 Kitchen Above Powerhouse for Temporary Contractor Crew
52 Bathroom Above Powerhouse for Temporary Contractor Crew
PDEA - Appendix F
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
Draft
November 5, 2010
2
Photo Title
53 Terror Lake Laydown Area and Warehouse
54 Contractor Camp Laydown Area with View of Utility Building
55 Contractor Camp Utility Building
56 Contractor Camp Utility Controls
57 Contractor Camp Potable Water
58 Contractor Camp Sewer System Drains
59 KEA Contractor Bunkhouse
60 Bunkhouse Bedroom
61 Bunkhouse Kitchen
PDEA - Appendix F
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
Draft
November 5, 2010
3
PDEA - Appendix F - Photographs
Terror Lake Hydroelectric Project FERC No. 2743
1. Float Plane at Arrival Point for the Project
2. View of Jetty and Dock (Boat and Float Plane Access Point for Project)
PDEA - Appendix F
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
Draft
November 5, 2010
4
3. Aerial View of Access Road and Kizhuyak River
4. Aerial View of Powerhouse Area
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
5
Draft
November 5, 2010
5. Additional Aerial View of Powerhouse Area
6. View Looking East across Tailrace
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
6
Draft
November 5, 2010
7. View Looking East – Powerhouse and Tailrace
8. View Looking West – Powerhouse, Tailrace, and Fabrication Shop
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
7
Draft
November 5, 2010
9. View Looking Upstream at Powerhouse
10. Powerhouse from Downstream Side
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
8
Draft
November 5, 2010
11. View of Powerhouse with Two Units Discharging
12. Tailrace Stoplog in Place in Third (Left) Bay
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
9
Draft
November 5, 2010
13. Terror Lake Hydroelectric Project Sign
14. Powerhouse Interior – Third Bay in Foreground
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
10
Draft
November 5, 2010
15. Powerhouse Interior – Third Bay in Background
16. Powerhouse Interior – Cover/Floor over Third Bay on Turbine Floor
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
11
Draft
November 5, 2010
17. Powerhouse Interior - Third Turbine Location with Existing Unit 2 in Background
18. Reinforcing Rod and Waterstop at Third Bay in TSV Area
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
12
Draft
November 5, 2010
19. Turbine Discharge Flume at Third Bay
20. Additional View of Turbine Discharge Flume at Third Bay
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
13
Draft
November 5, 2010
21. Unit 2 Turbine from Third (Empty) Bay
22. Turbine Pit Area
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
14
Draft
November 5, 2010
23. Unit 2 TSV Area
24. Control Valves for TSV on Unit 2
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
15
Draft
November 5, 2010
25. Unit 3 TSV
26. Unit 3 TSV Area
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
16
Draft
November 5, 2010
27. New Governor Hydraulic Control
28. Governor Hydraulic Pressure System
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
17
Draft
November 5, 2010
29. Governor Control Panel
30. Unit 1 and 2 Generators with the Third Bay in Background
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
18
Draft
November 5, 2010
31. Generator Nameplate
32. Generator Breaker, Surge and Neutral Cubicles
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
19
Draft
November 5, 2010
33. Underside of Powerhouse Crane
34. Cooling Water Strainer and Piping
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
20
Draft
November 5, 2010
35. Tailwater Depression Blower
36. Service Air Compressor (left) and Governor Air Compressor (right)
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
21
Draft
November 5, 2010
37. Control Room Showing Location for Third Unit Control Panel
38. Control Room and Living Quarters (above)
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
22
Draft
November 5, 2010
39. Powerhouse Service Bay
40. Downstream Gallery on Turbine Floor
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
23
Draft
November 5, 2010
41. New Pelton Wheel for Unit 1 and Unit 2
42. Switchyard – 138 kV Main Bus Showing Space Provided for Third Unit Connections
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
24
Draft
November 5, 2010
43. Switchyard – Conduit Stub-ups for Third Unit Equipment
44. Nameplate – Generator Stepup Transformer
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
25
Draft
November 5, 2010
45. Nameplate – 145-kV, 1200-A Circuit Switcher
46. Switchyard – Transformer & Circuit Switcher Connected to Main 138 kV Bus
(Background, 138 kV Line Oil Circuit Breaker below and bypass switch on top of A-frame)
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
26
Draft
November 5, 2010
47. Conduits Provided for Future 13.8 kV Power Cables to Stepup Transformer
48. Provision for Cable Tray Extension for Unit 3 Low Voltage Power and Control Cables
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
27
Draft
November 5, 2010
49. Similar Openings in Floor under Area for New Control Panel
50. Bedroom above Powerhouse for Temporary Contractor Crew
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
28
Draft
November 5, 2010
51. Kitchen above Powerhouse for Temporary Contractor Crew
52. Bathroom above Powerhouse for Temporary Contractor Crew
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
29
Draft
November 5, 2010
53. Terror Lake Laydown Area and Warehouse
54. Contractor Camp Laydown Area with View of Utility Building
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
30
Draft
November 5, 2010
55. Contractor Camp Utility Building
56. Contractor Camp Utility Controls
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
31
Draft
November 5, 2010
57. Contractor Camp Potable Water
58. Contractor Camp Sewer System Drains
PDEA - Appendix F
FERC Capacity Amendment Application - Third Unit
Terror Lake Hydroelectric Project, FERC Project No. 2743
32
Draft
November 5, 2010
59. KEA Contractor Bunkhouses
60. Bunkhouse Bedroom
61. Bunkhouse Kitchen
PDEA - Appendix G
FERC Capacity Amendment Application
Terror Lake Hydroelectric Project, FERC Project No. 2743
Draft
November 5, 2010
Appendix G
Technical Reports
Terror Lake Hydroelectric Project, FERC No. 2743
Meridian Environmental, Inc. Page 1
Terror Lake Tailrace Realignment Project
Bald Eagle Nest Survey
1. Introduction
The Four Dam Pool Power Agency plans to realign the Terror Lake tailrace and repair the Kizhuyak
River training dike in order to protect the tailrace from future flood damage.1 In compliance with the
U.S. Army Corps of Engineers permit for the work, MEI conducted a bald eagle nest survey of
potential nesting habitat located within 0.5 miles of the project site (Figure 1). The purpose of the
survey was to determine whether construction activities centered at the tailrace and training dike
would affect nesting bald eagles. If present, no clearing of vegetation would be allowed within 330
feet of an eagle nest, and no construction activity would be permitted within 660 feet of a nest
between March 1 and June 1, when nesting birds are most sensitive to disturbance.
We reviewed existing information to determine the current status of bald eagle populations on
Kodiak Island. Although no recent survey data is available, a 1997 map of environmentally sensitive
resources shows hundreds of bald eagle nests along the shoreline of Kodiak Island (NOAA, 1997)2.
The map shows 19 bald eagle nests along the shoreline of Kizhuyak Bay, including two nests near
the jetty at the head of the bay. The map shows a third nest at the mouth of the Kizhuyak River, and
a fourth nest approximately 1.3 miles upstream of the mouth of the river.
Pre-licensing studies for the Terror Lake Hydroelectric Project in 1979 included an aerial survey to
look for bald eagle nests (AEIDC, 1979). Seven nest platforms, including one active nest, were
observed along the shoreline of lower Kizhuyak Bay, but no bald eagle nests wee documented in the
vicinity of the Terror Lake tailrace. Project personnel report that no nests have been observed since
construction (S. Sieczkowski, pers. comm., April 6, 2005), although bald eagles are frequently
observed in the project area.
2. Survey Methods
Using USGS maps and aerial photos, we identified a survey reach extending 0.5 miles above and 0.5
miles below the project site, which is located at river mile (RM) 3.5 of the Kizhuyak River (Figure
1). The floodplain in this reach varies from about 1,000 to 1,600 feet wide. The river flows in a
braided channel, cutting through alluvial gravels, bordered by alder shrub and cottonwood trees of
various age classes. At the edge of the floodplain, slopes rise steeply to both east and west.
Vegetation on these slopes consists of shrubs and groundcover, with a few scattered spruce trees.
We conducted the survey on April 6, 2005. A heavy snow had fallen on April 5, and about 20 inches
remained on the ground. On the day of the survey, weather conditions varied from low overcast to
1 For location maps, design drawings, and a complete description of the project, please see Four Dam Pool’s
Application for a Non-Capacity Related License Amendment; Realignment and Repair of the Terror Lake Project
Tailrace, March 2004.
2 The maps produced by NOAA in 1997 are based on survey data collected in 1990 and 1997 through the joint
efforts of the National Park Service and U.S. Fish and Wildlife Service.
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partly cloudy with light, intermittent rain, temperatures around 35 degrees Fahrenheit, and no wind.
Visibility was good.
Figure 1. Project area map, showing the work area associated with the tailrace realignment and the
bald eagle nest survey reach. Pink (horizontally-lined) circles show bald eagle nests mapped by
NOAA in 1997. The orange (vertically-lined) circle indicates a nest that was documented as active
during pre-licensing surveys in 1979, as well as being mapped by NOAA in 1997. Adults were again
Kizhuyak Bay
Survey reach
Work areas
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observed at this nest during the April 6, 2005 survey. (Sources: Topozone Kodiak C-3 quadrangle;
AEIDC, 1979; NOAA, 1997). Scale 1” = 1.24 miles (approximate).
We accessed the survey reach by vehicle and on foot, using binoculars to look down into the valley
floor from the road. We used snowshoes to access the survey reach near the training dike. We
supplemented the ground survey with observations and photographs from a fixed-wing aircraft flight.
Upon returning to the office, we checked the photographs to verify habitat conditions and again look
for nests.
3. Results
Photos of the project vicinity, the survey reach, and habitat within the survey area are shown in
figures 2 through 6.
We observed no bald eagle nests within the survey reach. We observed one juvenile (2nd or 3rd year)
in flight over the tailrace. Project personnel report that bald eagles are observed year-round in the
project area, and occasionally forage in the Kizhuyak River below the tailrace in late July through
September, when pink salmon are present.
The nearest known bald eagle nest is located near the jetty at the head of Kizhuyak Bay, about 4
miles downstream of the tailrace. Two adults were visible at the nest on April 6 as we began the
survey. One adult was observed in flight over the delta.
We also noted a platform that could represent an inactive nest at approximately RM 1.3. This site is
at or near a nest shown on NOAA’s 1997 Environmental Sensitivity Index map (NOAA, 1997).
Inspection of photographs after the survey, however, reveal no sign of recent activity, and the tree
appears to be dead.
Figure 2. Looking southeast across the Kizhuyak River floodplain
from approximately river mile 1.5.
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Figure 3. Cottonwoods, left bank of the tailrace.
Figure 4. Cottonwoods, right bank of Kizhuyak River across
from training dike.
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Figure 5. Looking downstream across the work area.
Figure 6. Looking east across the work area.
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4. Discussion
With the exception of the outer coast, where nests may be located in rock pinnacles, cliff faces, or on
the ground, bald eagles on Kodiak Island nest in large, live spruce or cottonwood trees near open
water where fish are abundant (Hensel and Troyer, 1964). In forested settings, nests are usually
situated in canopy dominant trees that afford a clear view of water and easy access (Anthony and
Isaacs, 1988). Trees selected for nest sites must be large enough to support heavy structures; studies
of nesting bald eagles at Karluk Lake in southwestern Kodiak Island were found to be up to 6 feet
across and 4 feet deep (Hensel and Troyer, 1964).
Most trees in the study reach range from 6 to 10 inches in diameter at breast height (dbh), with an
older age class of approximately 12 to 16 inches dbh, but we observed several large cottonwoods
(e.g., 24 to 32 inches dbh) that would likely be adequate to support bald eagle nests. Diameters of
seven nest trees studied at Karluk Lake ranged from 17 to 33 inches, with a mean dbh of 24 inches
(Hensel and Troyer, 1964).
Although trees are present that could be considered suitable for nesting, the prey base in the survey
reach is limited. Pink salmon are regularly observed to spawn in the tailrace but 70 to 90 percent of
spawning activity occurs below RM 1.3, and none was observed above RM 3.5 in any of nine survey
years (Blackett, 1992). The Kizhuyak River above the tailrace outlet is frequently dry between
November and April, and the only fish known to be present are sculpin.
By contrast, the Kizhuyak River estuary would provide a variety of forage resources throughout the
breeding season. In addition to freshwater and saltwater fish, waterfowl and seabirds are abundant
(NOAA, 1997). Bald eagles are opportunistic in their foraging habits, and studies in the Aleutian
Islands show that avian prey may account for as much as 25 percent of the bald eagle diet during the
breeding season (Anthony, et al., 1999).
4. Conclusions
No bald eagle nests are currently located in the survey reach, and no nests have been documented in
the past. Some large cottonwoods are present that could serve as potential nest sites, but it is unlikely
that bald eagles would nest in the survey reach, due to the absence of a concentrated forage resource
during the breeding season. For this reason, we conclude that work associated with the tailrace
realignment would not affect the bald eagle.
5. References
AEIDC. 1979. An assessment of environmental effects of construction and operation of the proposed
Terror Lake Hydroelectric Project, Kodoak, Alaska. University of Alaska, Anchorage, Alaska.
Anthony, R.G. and F.B. Isaacs. 1988. Characteristics of bald eagle nest sites in Oregon. J. Wildl.
Manage. 53(1):148-159.
Anthony, R.G., A.K. Miles, J.A. Estes, and F.B. Isaacs. 1999. Productivity, diets, and
environmental contaminants in nesting bald eagles from the Aleutian Archipelago. Env. Tox.
and Chem. 18(9):2054-2062.
Terror Lake Hydroelectric Project, FERC No. 2743
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Blackett, R.F. 1992. Salmon returns, spawner distribution, and pre-emergent fry survival in the
Terror and Kizhuyak rivers, Kodiak Island, Alaska, 1982-1990. Prepared for Kodiak Electric
Association and Alaska Energy Authority. Trihey and Associates, Walnut Creek, California.
Hensel, R.J. and W.A. Troyer. 1964. Nesting studies of the bald eagles in Alaska. Condor
82(66):282-286.
NOAA. 1997. Kodiak Island and Shelikof Strait Environmentally Sensitive Areas. http://www.
asgdc.state.ak.us/maps/cplans/kod/spring.pdf. U.S. Dept. of Commerce, National Oceanic and
Atmospheric Administration, National Oceanic Service, Office of Ocean Resources Conservation
and Assessment, Hazardous Materials Response and Assessment Division, Seattle, WA. August,
1997.