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HomeMy WebLinkAboutHydropower Development Potential of Kenney Lake, Alaska 1983KEN 001 DEPARTMENT OF THE ARMY ALASKA DISTRICT CORPS OF ENGINEERS POUCH 696 ANCHORAGE. ALASKA 99506 REPLY TO ATTI[NTloN OF: February 9,1984 Plan Formulation Section Mr. Larry Crawford Executive Director Alaska Power Authority 335 West Fifth Avenue Second Floor Anchorage, Alaska 99501 Dear Mr. Crawford: RECEIVED i ~g lL: 1984 ALA.S:(:, PC'.'!~R !!JHlORITY Enclosed for your -information is a copy of the Corps of Eng i neers I 1 etter report on the hydropower deve 1 opment poten- tial of Kenney Lake, Alaska. The project does not appear to be economically feasible at this time. If you have any questions, please contact Mr. Ron Maj, of our Plan Formulation Section at 552-3461. Sincerely, IQ/ (nQL){)~ ~'~Rrf-r.1 Moore / t"Cm...Chief, Engineering Divlsion Enclosure · ~. . .. , INTRODUCTION Hydropower Development Potential of Kenney Lake, Alaska October 1983 The evaluation of small hydroelectric systems was authorized by a 1 October 1976 United States Senate Resolution, which directed the U.S. Army Corps of Engineers to determine the feasibility of installing small prepackaged hydroelectric units in isolated Alaskan communities. In 1982, a regional inventory for small hydropower projects in Southcentral Alaska was completed for the Alaska District by Ebasco Services Incorporated. This inventory analyzed more than 30 sites, recommending nearly 20 for more detailed examination, including the Kenney Lake site. The Kenney Lake site was one of six selected by the Alaska District from this group for field reconnaissance and additional analysis. Ebasco did not conduct any field reconnaissance at the Kenney Lake site during the Southcentral inventory. During 9-11 August 1982, an interdisciplinary Alaska District team cond~cted a field reconnaissance ofa potential s~all "hydropm'ler project site near the small community of Kenney Lake in the Tonsina River Valley. The potential site is located across the Tonsina River from Kenney Lake on a small unnamed tributary south of the Tonsina (see figure 1 and 2). This area is approximately 6 miles southwest (upstream) of the confluence of the Tonsina River with the Copper River and approximately 30 miles southeast of Glennallen. Presently, the Copper Valley Electric Association (CVEA) serves the Kenney Lake area. Based on the August 1983 edition of "Alaska Electric Power Statistics" by the United States Department of Energy, of the total installed nameplate capacity of 22,104 kW; 12,000 kW are produced by hydropower, 7,304 kW by diesel, and 2,800 kW by gas turbine. A total net generation of 35,941 MWh was generated in 1982. ENVIRONMENTAL SYNOPSIS Principal identified environmental resources in the vicinity of the site and the stream are Coho salmon, Chinook salmon, and Dolly Varden. The lower reaches of the stream are used as rearing habitat by juveniles of those species. Chinook salmon were observed spawning at the juncture of the subject stream and the Tonsina River. Juvenile salmon were collected upstream of observed spawning sites. Ttle upstream extent of salmon spa\·ming, juvenile rearing habitat, and resident Dolly Varden distribution (if any) was not · , determined. The fish populations involved are believed to be small and it appears that impacts to identified fish populations and habitats could be mitigated to within acceptable limits, possibly with minor adjustments to optimum project design and operating regimes. The stream undoubtedly contributes macroinvertebrates, algae, and other food-web components to the Tonsina River. Minor losses of these organisms would occur from project operation, but these losses could not be regarded as significant to other systems. Moose, black bear, brown bear, and a variety of furbearers in the canine, weasel, and rodent families occur in the area. Reconnaissance-level biological surveys indicate that project construction and operation would have little adverse effect on these animals, provided that construction and operation access could be achieved without road construction. If an access road were required, significant project impacts and secondary impacts from improved access would likely occur to local wildlife populations. No endangered or threatened species were observed or identified in a brief literature search. No cultural resource surveyor inventory has been conducted. HYDROLOGY Description of the Area. The unnamed stream has a drainage area of 7.8 square miles. Waters~ed elevations range from about 2,400 to 6,000 feet msl. Significant snowpack exists in the higher elevations (above 5,000 feet msl), especially on the north and west slopes, but no glaciers exist in the study area. Stream slopes in the area average about 650 feet per mile with a maximum slope of about 860 feet per mile. Drainage area ground slopes range from essentially horizontal to nearly vertical. The lower elevations are covered by dense stands of willow, alder, and birch, while the intermediate elevations are covered with tundra plants and, where surface water is available, stands of alder. The higher elevations are either bare or covered by tundra plants. The stream on which the dam would be located consists of a series of cascades and waterfalls from the headwater area to the proposed powerhouse location. In general, the stream is about 12 feet wide with depths of up to about 1.5 feet between cascades and up to about 4 feet in the energy holes at the cascades. Site investigations indicate that stream stage fluctuations have been very minor in the past and the stream does not appear to have sediment problems above the damsite. Design Flows. Stage and/or discharge data in the vicinity of Kenney Lake, Alaska, are very limited. The only gaging stations which have existed in the area are the Little Tonsina River near Tonsina (USGS gage number 15207800, drainage area = 22.7 mi2), Squirrel Creek at Tonsina (USGS gage number 15208100, drainage area = 70.5 mi2), and Tonsina River (USGS gage number 15208000, drainage area = 420 m;2). Of these three stations, only the Tonsina River at Tonsina gage is presently in operation. The period of record mean annual flows for each of these three streams is given in Table 1. Water Year 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 Table 1 Mean Annual Flow (cfs/mi 2 ) Little Tonsina Rv. (O.A. = 22.7 mi~l 0.99 0.79 1.44 1.45 2.81 1.09 Squirrel Crk. (O.A. = 70.5 mi~) 0.51 - 0.38 0.62 0.31 0.28 0.38 0.59 0.47 0.35 0.49 Tonsina River (O.A. = 420 mi~) 1.90 - 1.77 2.04 1.40 1. 51 1. 71 2.05 1. 35 1. 60 2.01 1. 58 2-.82 1. 58 1.80 2.31 The Tonsina River unit flows were obviously higher than those of the other two stations, especially the Squirrel Creek station, but they were not extremely different from the Little Tonsina River flows. The preliminary design flows for the Kenney Lake hydropower project were developed by multiplying the mean monthly Tonsina River flows in cubic feet per second per square mile by the Kenney Lake drainage area in square miles. This resulted in flows slightly· higher than what would probably have occurred at the Kenney Lake damsite. ENERGY USE Records for 1982 indicate that CVEA generated approximately 35,941 MWh. Currently, CVEA purchases energy generated by hydropower from the Alaska Power Authority during the summer. This time period corresponds with the time period in which the Kenney Lake project would operate. Energy Analysis. The HEC program "Hydur" was used to compute the energy pl'oduction for a variety of project sizes. An overall plant efficiency of 0.86, a design head of 800', and a minimum operational capacity of 0.4 times the design capacity were used as part of the "Hydur" input data. The results are summari zed below. r-~-.- Plant Size (kW) 300 700 1,500 2,000 4,000 Average Annual Energy (MWh) 1,470 2,696 5,153 5,561 6,709 Benefit Analysis. At this level of analysis, it was assumed that the total average annual energy of the hydropower system less an 8 percent transmission loss would be equal to the usable energy. Two categories of benefits were determined for each turbine size; displaced existing hydropower and displaced transmission costs. An existing hydropower generation cost of 3.6¢/kWh (Copper Valley Electric Association, Inc.) combined with a transmission cost of 7.5 ¢/KW results in a total energy displacement cost of 11.1¢/kWh. Shown below are benefits derived for each of the turbine sizes. Usable Displaced Displaced Plant Size Energy Existing Transmission (kW) (t~Wh ) Hldro~ower Cost Total ~O 1,350 49,000 $101,000 $150,000 700 2,480 $ 89,000 $186,000 $275,000 1,500 4,740 $171,000 $356,000 $527,000 2,000 5,120 $184,000 $384,000 $568,000 4,000 6,170 $222,000 $463,000 $685,000 Cost Analysis. A preliminary cost estimate was derived for each of the project sizes. 'Shown is a summary of project features. - Plant Size Dam Height Penstock Di a. (kW) (ft. ) ( in. ) 300 11-14 700 12 18 1,500 13 26 2,000 14 30 4,000 16 48 The cost estimates included the following items: rockfill dam, a 4,900-foot steel penstock, a 5-mile access road to the powerhouse, 3 miles of transmission line, the powerhouse plus associated features, intake structure, helicopter support during construction, site . preparation, mob and demob, a 20 percent contingency, 12 percent for E&D and S&A; and interest during construction based on a 2-year construction period. This cost estimate does not include O&M costs. Costs were amortized using an interest rate of 8 1/8 percent and a 50-year project life. Shown below is a summary of the estimated costs. Plant Size (kW) First Cost Total Costs Annual Costs 300 $ 6,954,000 $ 7,516,000 $ 623,000 700 $ 7,507,000 $ 8, 114,000 $ 673,000 1,500 $ 8,717,000 $ 9,310,000 4 772,000 2,000 $ 9,202,000 $ 9,946,000 $ 824,000 4,.000 $12,568,000 $13,584,000 $1,126,000 EVALUATION To derive the optimum project size and the net benefits, annual costs were compared against annual benefits. In addition, a cost per kWh was derived by dividing the project annual cost by the project's equivalent usable energy. The results are summarized be10 ... J. Plant Size Annual Annual Benefit/Cost (kW) Costs Benefits Net Benefit Ratio $/kl~h --300 $ 623,000 $150,000 -$473,000 0.24 $0.46 700 $ 673,000 $275,000 -$398,000 0.41 $0.27 1,500 $ 772,000 $527,000 -$245,000 0.68 $0.16 2,000 $ 824,000 $568,000 -$256,000 0.68 $0.16 4,000 $1,126,000 $685,000 -$441,000 0.61 $0.18 The above analysis indicates that none of the turbine sizes evaluated is economically feasible. Plant sizes versus net benefits were graphed to determine the optimum project and to determine if any feasibi1e units exist within the range selected (Graph A). The optimum project size was found to be a 1,500 kW system with a benefit/cost ratio of 0.68 which would produce negative net benefits of $245,000. . CONCLUSIONS The project would produce power during the warmer months so that power could be fed into CVEA grid sup~lementing existing hydropower generation. It appears that all pO't-ier produced by the hydropower project could be used in the CVEA system. During the I·Jinter, no power would be generated due to ice, and the power flow would be from the CVEA diesel generators to the Kenney Lake area. It can be concluded that, even witfl the optimistic assumptions made on the streamflow estimates used in the above analysis, no feasible project size exists. RECO~lt'!ENDA nONS It is recommended that no further Corps of Engineers studies of hydropower development at Kenney Lake be undertaken at "this time. DETAILED COST ESTIMATE (1,500 kW Plan) ITEM/DESCR I PTION QUANT ITV UNIT UNIT PRICE TOTAL MOB &. DEr~OB1/ 1. s. $1,600,000 DAM & INTAKE STRUCTURE Excavation 820 c.y. 50 $ 41,000 Excavation, Rock (Spillway) 540 c.y. 50 27,000 Concrete, Dam 50 c.y. 800 40,000 Rockfi 11 800 c.y. 30 24,000 Steel, Rebar & Misc. 6,900 lbs. 2· 13,800 Intake 1 ea. 70,000 70,000 Total Dam and Intake Structure $ 215,800 PENSTOCK 26" dia. 1/4" Steel 5,000 1.f. 492..£/ $2,460,000 Concrete Supports 300 c.y. 800 240~000 Total Penstock $2,700,000 POWERHOUSE Structure ea. 163,000 $ 163,000 Turbine Generator ea. 640,000 640,000 Accessory Electrical ea. 258,000 258,000 Auxilliary Sys. & Equip. ea. 39,000 39,000 Switchyard ea. 50,000 50,000 Tota 1 Pm·/erhouse $1,150,000 .. TRANSMISSION LINE 14.4 KV Line 3 mile 100,000 $ 300,000 Clearing 8.4 acres 5,000 42,000 Total Transmission Line $ 342,000 UNIMPRUVED DIRT ROAD Access Road 8 mile 54,250 $ 434,000 48" CMP 54 lof. 98 5,300 Clearing 11.5 acres 5,000 57,500 Total UnilTIproved Dirt Road $ 496,800 SUBTOTAL $6,504,600 Contingency ( 20%) $1,300,900 Engineering & Design ( 8%) $ 520,000 Supervision & Administration ( 6%) $ 391,500 TOTAL FIRST COST $8,717,000 1/ includes site prep, helicopter support for 6 months, mob & demob. 2/ includes cost of steel, excavation, installation, bends ANNUAL COSTS AND BENEFITS Investment Cost (incl. IDC) Interest and Amortization (8-1/8% @ 50 yrs) Annual Benefits Displaced Existing Hydropower Displaced Transmission Cost Total Annual Benefit Benefit-Cost Ratio Net Annual Benefit Dam Height (ft.) Penstock Length (ft.) Pertinent Data Sheet Penstock Diameter (in.) Transmission Line Length (mile) Access Road Length (mile) Design head (ft.) $9,310,000 772,000 $ 171,000 356,000 $ 527,000 0.68 -$245,000 13 4,900 26 3 5 800 To GlennaUen \ \Copper Center ..... rransLaSka Pipeline To Valdez PROPOSED SITE Sea Ie 10 0 ~-J--J ---Mile I 10 ! 20 I I : Wrangell-Saint Elias National Park and Preserve ALASKA DISTRICT KENNEY LAKE Figure 1 ~~ h . ..... ..... -..... ~:!~!£~I~~ ---Edgerton Hig way ........... ~ .-----= -• 1100~ __ Tonsina River ~~~- Transmission Line Powerhouse Penstock Dam 2000:3000 4000 o 1000 ! FEET I Figure 2 KENNY LAKE Small Hydropower o -100 -0 0 0 -200 • T- {J} - en +" -300 'to- Q) C Q) CO -400 +" Q) "Z m -500 G)Z """Z Q)m -g.< l>1 » " o 3500 4000 500 1000 1500 2000 2500 3000 Unit Size [kW) m V~ldez and Copper River B~sin Energy Usage Update With Emphasis on Kenney Lake Si~e the -Electrical Power for Valdez and the Copper River Basin- study ~as completed in March 1981, significant chanQes have taken place in the Valdez-Glennallen area. Factors influencinQ demand increases and option~ to meet those increases have changed. The-cancellation of the propos~d oil refinery by the Alaska Petrochemical Company (ALPETCO) has great 1:, reduced demand over that previously estimated and the instit~tiona1 problems associated with the proposed pressure reducing turbin~ have appeared to all but eliminate that as a generating a1te r n3tive. This is particularly true because the Prudhoe Bay field's economic life will be ending in the mid-1990's and the prospect of additional finds in the area are much bleaker with a dry hole at Mukluk well in 1983. Th·~ following briefly examines what has happened regarding energy projEc~ions, the impact of Solomon GulCh, and conclusions on hydropower in the area (Kenney Lake and Allison Lake). Load FJrecast -Reality vs. Projections Th2 load forecast deemed most likely in -E1ectri~1 Power for Valdez and th~ Copper River Basin-indicated additional diesel generation may be needed after the year 2000 (Figure C-2). This forecast was based on the assumption that ALPETCO would build a refinery in Valdez. At the time the report was being finalized, ground breaking had begun for the project. Shortly thereafter ALPETCOcance11ed their plans to build the refinery. It then appeared that Dow-Shell would go ahead with a petrochemical complex at Valdez. However, due to the recent oil glut, all plans have been put on hold indefinitely. Therefore, load growth has been s~bstantia11y slower than originally assumed. The following table summarizes the gross generation from the Solomon Gulch hydropower plant and for diesel plants at Glennallen and Valdez. Gross Generation (MWh) Diesel 1/ Hydro 1/ Year Glennallen Valdez Solomon GulCh Total 1980 20,065 25,006 45,071 1001 ",VI 19,598 26,750 46,348 1982 12,651 3,315 35,969 51,935 1983 12,205 3,801 36, 189 52,195 1/ Source: Copper Valley Electric Association 2/ Source: Operator at Solomon Gulch 4 The ~CtUll' 9f'nerat i on reportp( ~hove compllres wi th the "revi sed APA It and the "low growth" scen~rios rerorted in "Electrical Power for Valdez and the Copper River Basin" as fOllows. Actual·, Revised APA % Difference Low Growth t: Difference Year ~ GWh~ ~ GWh~ Actual vs. Estimated (GWh~ Actual vs. Estimllted 1980 45. 1 47.9 -5.8 47.9 -5.8 1981 46.3 52.0 -11.0 50.1 -7.6 1982 51.9 55.5 -6.5 52.5 -1. 1 1983 52.2 61.0 -14.4 55.0 -5. 1 As can be seen by the preceding summary, the actual demand has fallen short of the 10\0: growth forecast by approximately 5 percent to date, while falling over 14 percent behind the revised APA forecast, which was considered "most lik.ely" at the time the report was published. Based on the above and the assumption that Allison lake hydropower will be the next addition, it appears that the time when additional energy is neec!ec' to displace diesel in the sunmer months will be significantly 1cter than 2000. Solomon Gulch EnerQY Producticn Since coming on line in J~~uary 1982, Solomon Gulch has contributed significantly to decreasing the reliance on diesel fuel in the Valdez-Glennallen area. For t~e first 2 years of operation, the system has carried the entire utility's load from mid-May to late October. In late October when Solomon Gulch stops spilling, the transmission line from Valdez to Gelnnal1en is de-energized. From then until mid-May, Glennallen is solely served by diesel-fired generators while Valdez is served by a diesel-hydropower combination until late March or April when the reservoir "bottoms ouL" Valdez is then served solely by diesel until mid-May when runoff begins to fill the reservoir. According to Mr. John Hunter, the operator at Solomon GulCh, the commencement of runoff is so sudden ~nd fast that once t~e reservoir begins to fill, the Valdez-G1enn~11en transmission is energized and Solomon can again carry the full load. In the first 2 years of operation, the reservoir was filled and began spilling on 19 July in 1982 and 11 July in 1983. It continued to spill until 18 October 1982 ~nd 19 October 1983. Although a detailed record of the inflows and spill Quantities were not readily avai-!able, Mr. Hunter estimated that, based on the amount of water available, Solomon Gulch could run at full capacity (12 MW) from May to October with no impact on winter flows because of the large quantity of water spilled. This compares to a current peak. demand (which occurs in winter) of approxima~ely 9 MW. The peak. summer demand is estimated to be about 2 MW les;. 5 Conclusion Loads have not materialized as anticipated in tIP Valdez-Glennallen area due primarily to the cancelled development of the ALPETCO oil refinery. These reduced loads, combined with Solom)n Gulch's capability to produce an abundance of energy during the summer months makes development of a project that only produces energy in the summer months (like Kenney Lake) unattractive in the Valdez-Glcnnlllen area. Any benefits to be derived from displaced diesel fuel 1:1 the summer months could not be claimed until possibly 2010 or later. Therefore, the eva 1 u at i on of Kenney Lake (or any other sma 11 hydro;lower proj ect in the area) should be measured against hydropower at Solo~on Gulch rather than diesel. A project with great reservoir requlation to di~place some of the 16 GWh annually that are still produced by dies€i generation is needed in the Valdez-Glennallen area. Because the pressure reducing turbine no longer appears feasible due to the institutional problems encountered to date and the ever-Shortening life of Prudhoe Bay, tne most reasonable alternative appears to be developmpn1 ~t Allison Lake, as previously proposed. 15 '0 ---l 5 1 ...... 3: .... ~ - FIGURE C-2 SOLOMON GULCH ALLISON LAKE APA REVISED PROJECTION ALLISON LAKE SECONDARY----- ENERGY PROJECTED ENERGY DEMAND FOR THE YEAR 2000 so-: v-·~ ~r::\~ -.,,"""". ,.....,. . ';" ,.... .. ~ .. 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