Loading...
HomeMy WebLinkAboutAtka Small Hydropower Feasibility Study 1987~ f ......... ". -·4 --. Alaska Power Authority ATKA Small Hydropower F~asibility Study APRIL 1987 ,Y Atka Population 511,---------------------------------------------------------------------------"---------------------------------------~ F 311 F 211 ACE CROUP 8-18 .19 -38 31-45 46-68 611+ I I I I g G C D ~ g • 8 i I I I I I ATKA Small Hydropower Feasibility Study April 1987 PROJECT TEAM: Remy Wi 11 i ams Cost Estimator Gwen Obenni 11 er Research Analyst Susan G. Rogers Program Development Analyst Donald L. Shira, Director Program Development David Denig-Chakroff, Acting Manager Rural Technical Support 1036/748/1 Robert E. LeResche Executive Director ® 1987 AI •• k. Power Authority I I I I a G D D D C , I I I I '\ I 1 Chapter I. Chapter II. Chapter III. Chapter IV. Chapter V. Appendix A. 1036/748/2 ATKA Small Hydropower Feasibility Study Table of Contents Introduction 1 A. Background 1 B. Project History (Previous Reports) 2 Atka's Existing Electric System 4 A. EXisting System 4 B. Energy Use and load Forecast 9 Description of the Hydropower Proposal 14 A. Technical Description 14 B. Cost Estimate 21 C. Energy Production 33 Economic Analysis of Hydropower 38 A. Expected Benefit/Cost Ratio 38 Conclusion and Recommendations 45 letters and Comments on Draft 48 Feasibility Study (i) List of Tables Table No. 1. Rate Structure for Andreanof Electric Corp. 2. Historic Fuel Prices 3. Fuel Use and Energy Efficiency 4. Historic Electricity Use 5. Design Alternatives for Chuniisax Creek 6. Summary of the Cost Estimate 7. Full Cost Estimate 8. Summary of Load Growth and Hydro Use 9. Example Calculation: Benefit/Cost Ratio 10. Benefit/Cost Summary of 3 Freezer Load Scenarios List of Figures Fi gure No. 1. Location of Atka, Alaska 2. Monthly Electricity Generation 3. Project Layout 4. Chuniisax Creek Discharge Profiles 1036/748/3 (i i) Page 5 6 7 9 15 22 26 37 42 43 Page 1 10 16 35 j -I I G G • I I G 8 ,I ! II il I, I. , . !I I II Chapter I. Introduction A. Background. The Alaska Power Authority has been investigating the technical and economic feasibility of a small hydroproject to serve the Village of Atka, Alaska. Atka, a native community of 93 people, is the western-most non-military settlement on the Aleutian chain. Atka Island lies 100 miles east of Adak and 1,100 miles west of Anchorage. (See Figure 1.) Figure 1. Location of Atka. Alalka Atka ... " ~.--. 1036/455 (1) In 1985 the village utility, Andreanof Electric Association, served approximately 37 customers, but that number dropped to 31 in December 1986. The proposed 80 KW run-of-river hydroproject wou1 d use Chuni i sax Creek, approximately one-half mile southwest of the community, to produce most of the electricity needed by the village. The exist- ing diesel facility would serve as back-up to the hydroproject and would serve the village during times of low water and low power production. B. Project History (Previous Studies). The Power Authority began studying energy alternatives for Atka during 1982. A Reconnais- sance Study prepared by a consulting firm on contract to the Power Authority recommended a hydroelectric project on Chuniisax Creek or a waste heat addition to the existing diesel generators as econom- ical alternatives to the existing system. In 1983, the Power Authority began feasibility investigations for the hydroelectric proposal; the same consultant for the reconnaissance study com- pleted a data collection program. The program included the acqui- sition of one year of stream-flow data; and data concerning geology and soils, temperature, precipitation, other terrestrial environ- mental data, fisheries information, and archaeology. During 1984, a consultant for the Power Authority performed de- tailed waste heat investigations for 42 communities in rural 1036/748/5 (2) r I J ·1 I I '. • I .1 t • I I I I , I I Alaska, including Atka. Also in 1984, Power Authority staff visited Atka to gather additional feasibility data. This report compiles the results and information from previous studies. It provides the conclusions of Power Authority staff concerning the proposed small hydroplant on Chuniisax Creek. The various reports completed for Atka are listed below. 1. Reconnaissance Study of Energy Regui rements and Alternatives for Atka. July 1982. Prepared by Northern Technical Services and Van Gulik and Associates for the Alaska Power Authority. 2. Feasibility Study Data Collection Program for the Proposed Hydroelectric Project at Atka, Alaska. June 6, 1984. Pre- pared by Northern Technical Services and Van Gulik and Associ- ates for the Alaska Power Authority. 3. Rural Energy Construction Program 1984-1985, 42 Villages Waste Heat Study. April 1985. Prepared by Raj Bhargava Associates for the Alaska Power Authority. 1036/748/6 (3) Chapter II. Atka's Existing Electric System A. Existing System. The existing electric system was installed in 1982 by the local community under the supervision of Pacific Diesel Company. At that time, the powerhouse was moved, new generators were purchased, and a new underground distribution system was installed. The distribution system was partially financed by a $144,000 loan from the Rural Electrification Revolving loan Fund. The local utility is Andreanof Electric Corporation, a subsidiary of Atxam Corporation, the local Native corporation. It holds a Certificate of Convenience and Necessity from the Alaska Public Utilities Commission. The powerhouse is in the center of town and contains three diesel generators: 40 KW, 75 KW, and 125 KW. The 75 and 125 KW units were purchased in 1982, while the 40 KW unit powered the town from an old generator building prior to 1982. A 50 KW community-built hydroproject exists on a small stream just southwest of town. The project is not functi oni ng, however, as repairs are needed to the dam and intake structure. Andreanof Electric Corporation charges for electricity using a declining block rate structure. The rate structure is outlined in Table I. The rate structure was initiated before the advent of the PCE program. 1036/748/7 {4} ? ' 1 )21 #' I I I I • " , I I I • I I I I I I I I I I I I Cl G G • Q lG I I' 11 I I I I I I Table 1. Rate Structure for Andreanof Electric Corporation Energy . Rate 1985 1986 Consumers' Block Charged PCE PCE Effective (KWH/Mo) (t/KWH) Subsidy Subsidy Rate 1986 (t/KWH) (t/KWH) (t/KWH) 0-100 KWH 55 22.7 16.45 38.55 101-200 KWH 50 22.7 16.45 33.55 201-300 KWH 45 22.7 16.45 28.55 301-750 KWH 25 22.7 16.45 8.55 750+ KWH 25 0 0 25.00 The State's Power Cost Equalization program (PCE) has a significant effect on· the rate to consumers. In Atka, the 1986 program paid 16.45t/KWH for up to 750 KWH/month per customer. Many, if not most, of Atka's residential consumers, use between 300 and 750 KWH/month. At that consumption level, the cost to the consumer is only 8.55t/KWH. The previous interim PCE rate caused an overpay- ment of subsidy during 1984 and 1985. Customers are now receiving a reduced subsidy through 1988 to repay the extra amount. This situation has increased the cost of electricity to Andreanof's customers and may be provoking conservation. At the end of 1986, the utility bought diesel fuel at $1.08/ga110n. That price has dropped over the last few years. Fuel is imported to Atka by Atxam Corporation which owns considerable bulk fuel 1036/748/8 (5) 5 Ii . storage on the island. The utility itself has 45,000 gallons of fuel storage. Table 2 shows the record of recent fuel prices. Table 2. Historic Fuel Prices Andreanof Electric Corporation Year 1986-1987 1985-1986 1984-1985 1983-1984 1982-1983 1981-1982 Fuel Price $l.08/gallon $1.20/gallon $l.45/gallon $l.50/gallon $1. 56/ga 11 on $1.60/gallon The fuel efficiency for the diesel system is approximately 8.4 KWH/gallon over 1985 and 1986. That efficiency is calculated from Power Authority records obtained through the Power Cost Equalization program. Table 3 shows the fuel use and the calcu- lated fuel efficiency. Table 3 shows that during 1985, the utility averaged 2,988.6 gal- lons of fuel per month ($4,334 at $1.45/gallon, 1984-5 price) to produce an average of 24,447 kilowatthours, or an average fuel efficiency of 8.8 KWH/gallon. In 1986, however, the util ity used an average of 2,396 gallons of fuel per month ($2,875 at $1.20/gal- lon, 1986-7 price) to produce an average of 19,208 kilowatthours, or an average fuel efficiency of 8.0 KWH/gallon. 1036/748/9 (6) I I I I -I • • , I I I I I I " I I I I I I Table 3. I Fuel Use and Fuel Efficiency 1:l Andreanof Electric Corporation D Monthly Fuel Generation Used D Month (KWH/mo) illll I Dec 86 20,206 2,252.4 , Nov 86 15,253 2,530.9 Oct 86 16,808 2,313.9 I Sept 86 17,611 1,750.6 Aug 86 13,731 1,902.3 , July 86 11 ,382 2,302.5 I June 86 20,032 2,337.0 May 86 24,685 2,735.2 I Apr 86 23,204 2,400.5 Mar 86 21,236 2,127.5 I Feb 86 21,403 2,604.4 I Jan 86 24,939 3,494.7 I Total: 230,490 28,751.9 19,207.5 2,396.0 Average: I I 1036/748/10 (7) -2 , I I Monthly Fuel I Generation Used Month (KWH/mo) {gall Dec 85 23,371 3,451.1 I Nov 85 23,439 3,405.4 • Oct 85 22,220 2,931. 2 • Sept 85 21,425 2,469.6 Aug 85 27,633 3,961.8 " July 85 22,106 3,123.8 June 85 28,297 3,092.0 • May 85 21,082 1,960.1 April 85 27,519 1,603.0 , March 85 24,082 3,623.0 I Feb 85 24,124 2,452.2 Jan 85 . 28,068 3,789.7 1 Total: 293,366 35,862.9 t Average: 24,447.2 2,988.6 I Two-Year Average: 21,827.3 KWH 2,692.2 gal. 8.4 KWH/gallon I I I I I 1036/748/12 (8) I I I I II C g iC' e , I I I I II II II II " I I B. Energ~ Use and Load Forecast. Tab 1 e 4 shows the hi storic electrictty use at Atka. Table 4. Historic Electricity Use KWH Sold Load Data: 1986 1985 1984 1983 1982 Jan 24,939 28,068 25,250 16,641 Feb 21,403 24,124 27,176 18,456 Mar 21,236 24,082 28,603 16,015 Apr 23,204 27,519 30,231 12,615 May 24,685 21,082 14,624 13,287 6,337 June 20,032 28,297 20,952 8,698 7,654 July 11 ,382 22,106 21,105 10,225 7,986 Aug 13,731 27,633 29,544 12,697 8,767 Sept 17 ,611 21,425 19,289 17,139 10,609 Oct 16,808 22,220 21,537 18,999 9,560 Nov 15,253 23,439 22,294 23,674 13,192 Dec 20.206 23.371 27.780 25.160 16,528 Total: 230,490 293,366 288,385 193,606 Percent Increase -21.4% 1.02% 48.95% The table shows that Atka's electricity use has increased consid- erably over the past few years. There are various reasons for the increase. During 1982 and 1983, the U. S. Department of Housing and Urban Development built a number of new houses in Atka. The new houses use considerably more electricity than the ones they replaced. In 1982, the new distribution system brought electricity to a number of new consumers. While the number of customers increased from 24 in May 1982 to 37 in May 1985, it decreased to 31 in December 1986. Although the total electricity consumption increased by almost 50% between 1982 and 1985, the consumption per customer increased by only 18%. All the HUD houses were hooked up, 1036/748/12 (9) 7 '$ t?5 $ r 51 , 1 and a 100,000 lb. freezing plant was built in 1985. Electricity consumption has probably stabiliied, since the dramatic increase in consumption between 1983 and 1984 has not been repeated. In fact, energy consumption has declined 21.4% from 1985 to 1986. A partial explanation could be a temporary reduction in peE, which is trig- gering conservation by the consumers as a greater percentage of the true cost of power is being felt. The village's monthly consump- tion records from January 1983 through 1986 are in Figure 2. Figure 2. Monthly ElectrlcftJ Generation ANDREANOFF ELECTRIC ASSOCIATION 32 Monthly EIectrtdIr ... ....atIan 30 28 ...... 5 28 ! 24 J: ~~ 22 'VI j: 20 e i !~ 18 &"" 0 1. i • 14 Iil 12 10 8 Jan ~ MDnth 0 1883 + 1184 4) 1_ .. 1" 1036/748/14 (10) I 'I J II I I f' • , I 1 I I I I I I I J 1 I I' g Q e ,,", ,G I G I I I I I I I I I Projecting future loads for the vi 11 age is difficul t. The loads for Atka have fluctuated highly in the past years and then decreased substantially in 1986. Alaska's Power Cost Equalization Program substantially decreases the electricity cost to the consumers. Table 1 shows that between 301 and 750 KWH/month (the level of consumption for most of Atka's consumers), the electricity price is 8.SSt/KWH. That price provides minimal incentive to conserve within that rate block. Since the support level for the PCE program decreased significantly in 1986, the price to consumers has jumped dramatically. Each customer is probably using less electricity, causing the community load to decrease. The U.S. Army Corps of Engineers (COE) and the Alaska Department of Transportation and Public Facilities (DOT/PF) are considering development of a small boat harbor at Atka. The harbor would probably be located approximately at the mouth of Chuniisax Creek and would 1 ikely be designed to serve both the community and the Aleutian fishing fleet. The fishing fleet would probably not use the harbor as a major port of call, a base for the processing or a fuel stop. Rather, they would use it to moor during fishing closures, for medivacs and possibly to replenish ice, water, and other consumable items. The harbor would afford the community the opportunity to develop services and business for the fishing fleet. These businesses and 1036/748/14 (11 ) facilities would undoubtedly use electricity; however, the amount of the load increase is uncertain. At this time, the harbor is a speculative development, as the COE feasibility study is still in draft and"DOT/PF has no firm plans for construction. At this writing, harbor construction is not included in DOT/PF's six year budget plan. After funding is approved by the legislature, it could take more than a year before construction actually occurred. A capital project which will take place in 1988 is the construction of a fish freezing plant. The cOlllllunity has been granted $326,000 by the federal Economic Development Authority to put up a prefab- ricated cold storage freezer and building to process up to 400,000 pounds of fish. Construction is expected to begin in the spring of 1988. At first, the freezing plant is likely to operate a maximum of 6 months each year, from the beginning of the halibut season unt i 1 a barge or processor pi cks up the fi sh in earl y fall. The season may be extended somewhat if the community succeeds in purchasing a larger fishfng boat capable of taking black cod and other species not presently caught. The freezing capacity of the new plant plus the existing one will be 500,000 pounds total. The uncertainties of the PCE program and the small boat harbor and the fact that the freezing plant will not be built until 1988 make it difficult to provide a reliable load forecast for Atka. If the 1036/748/15 (12) J I I 'I • • • • 1 I I I I I I I I I I I I I· e Q • I , I I I I I I I I I I PCE program ends or the boat harbor is not built, the long-tenn level of electricity consumption in Atka could stabilize near the present lowered level or somewhat higher, including the freezer plant. If, however, the PCE program continues to be funded at its present level, the community's load could increase even more. For the purposes of thi s report, three load forecasts were used: 0%, 2% and 4% load growth. The 0% growth scenario simulates a stable load; 2% growth would be strong, continuous economic devel- opment; and 4% would be still higher. At present, Power Authority staff use a range from 1.5 -3% for most likely growth patterns in most of rural Alaska. Other parameters used in analysis include: o o Discount rate = 3.5% Fuel Cost = $1.08/gal with two escalation trends: High escalation: -3.5% for 19 years, then 0% thereafter. Low escalation: thereafter. 2% for 9 years, then 0% 1036/748/16 (13) Chapter III. Description of the Hydro-project A. Technical Description. Chuniisax Creek is approximately 0.6 miles southwest of the village of Atka. The configuration of the river, including its six falls is shown in Figure 3. The falls provi de a number of opportuni ti es for design of the hydroproject. The further downstream the powerhouse is placed, the greater the head. From a hydroelectric design viewpoint, the optimum powerhouse location is at the mouth of the river. Chunii- sax Creek, however, is inhabited by anadromous fish to Falls B. From investigations by the Power Authority and the U. S. Fish and Wildlife Service, it appears that the lowest powerhouse location on the river that is both technically and environmentally feasible wou 1 d be 300 feet downstream from Fa 11 s B. The presence of the fish in the lower reaches of the creek make building the powerplant nearer the ocean infeasible. 1036/748/17 (14) ,I I I I • • • I , I I I I I I I I I I I I: I I g ~ D • I G I I J I I I ,I I I Design Alternatives From investigations by the consulting engineer for the project and by Power Authority staff, four design alternatives appear feasible. They are outlined in Table 5 and displayed in Figure 3. Table 5 • Design Alternatives for Chuniisax Creek Alternative No.: 1 2 3 4 Intake Location: Fall s F Fall s F Fall s D Fall s D Penstock Length: (feet) 1500 1800 790 950 Gross Head: 100 140 88 125 (feet) Powerhouse Location Above Below Above Below Fall s B Fall s B Falls B Fall s B 1036/748/18 (l5) ...... 0\ - o , Inundation Ar.a Alt. 1 a 2 Propo •• d Da ... or W.'r 81t. Alt. 1 a 2 Propo •• d W.lr 8" • Alt.1 a 4 Alt.rnet. 1 - - - - - AIt.rnat. 2 ............. . Alt.rnet. I _._._.--. AIt.rnet. 4 ••••••••• 1000 ft. I 600 ft. I Po •• rhou •• Alt. 1 Figure 3. Project Layout / • ATKA • . ... . -, , ..... " -.. . • • ~ • • -'_ .... _ .... ' ............... _ ... _- I I I I g tl D "'," I' G I I I I I I I I I I After visiting the Creek, it was clear that alternative #4 was the superior alternative. The penstock route from the intake above fa 11 s 0 down to the powerhouse 1 ocati on 300 feet downstream from falls B is an easy route without significant construction problems. Topographic maps and a site visit showed this to be the easiest and least expensive route of the different alternatives. Alternative .#2, though it might provide more power than #4, has a more diffi- cult penstock route. From a cost evaluation of alternatives #2 and #4, it was clear that #4 is the more cost-effective hydroelectric proposal. To maximize the head, the powerhouse location should be below falls B. Below falls B, Chuniisax Creek is contained in a steep-walled canyon. Until the end of the canyon, 600 feet downstream, the only feasible powerhouse location is on an old landslide deposit 300 feet downstream from the falls on the northeast bank. The proposed design is to build a small diversion weir in the bedrock notch above falls 0 to divert the stream into the penstock. The penstock would probably be supported on a small trestle over a small gully southwest of the falls. It would be routed through the saddle directly south of the falls and continue down the hill to a poi nt di rectly across from the proposed powerhouse location. It would then cross the stream on another trestle to the powerhouse. Construction of the diversion weir, the penstock, and the 1036/748/20 (17) powerhouse are not expected to be difficult. In the opinion of Power Authority staff, all can be accomplished with local labor. There are few geotechnical problems with the proposed project. Bedrock outcrops at both falls 0 and falls F. Hand dug soil pits around falls F (dug during the data gathering program) provide enough information that with the visual inspection provided by the Power Authority staff, no new information is needed to determine the project's geotechnical feasibility. In the initial stages. of the feasibi1 ity investigations, it was unclear whether the project would be a storage project or run-of- river project. After visual inspection of the creek by the Power Authority staff and studying hydrology data, it became clear that a dam at either location would not provide enough storage to be justified economically. Even with a dam, the project would be more or less run-of-river. Thus, a weir is recommended. A cost-effective small hydroelectric project requires extensive use of local labor. Atka appears to have very capable and experienced labor for a village its size. With an experienced and know1edge- .. able project supervisor, there appear to be few, if any, tasks in the proposed project beyond the capabilities of the local village labor force. 1036/148/21 (I8) I ,I I I • , , , I I I I I I I I I I I I I I o ..., 1.1 Cl G (J D D I I I I I I I I Fisheries Impact Chuniisax Creek is inhabited by anadromous fish to falls B. The preferred powerhouse site is 300 feet below the falls; thus, siting the powerhouse will require coordination with the Alaska Department of Fish and Game (ADF&G) and with the U.S. Fish and Wildl ife Service (USF&WS). A USF&WS biologist accompanied the Power Author- ity on the site visit. From our investigations, it appears that the area from the mouth of Chunii sax Creek to fall s B is useful spawning habitat for coho and chum salmon. This conclusion was derived from various evidence. Minnow traps set between fall s A and B caught mostly Dolly Varden trout. The one trap set just above falls A caught a few coho fry, however. In the judgement of the biologist, the presence of the emerging fry indicated that the stretch of river between the two falls must contain some spawning habitat. In addition, it is possible that is also contains some rearing habitat. Siting the powerhouse 300 feet below falls B will likely affect the spawni ng habi tat for that 300-foot stretch. It shoul d be noted that the majority of the coho run probably spawns lower on the creek --below falls A, and in a tributary entering the creek below falls A. In addition, the major run of the creek is the pink salmon run blocked by falls A. Still, siting the powerhouse where 1036/748/22 (19) it is best suited may decrease the habitat value of 300 feet of stream. Thus, some mitigation may be required. There are two mitigation possibilities: a fish ladder on falls A, and off-stream mitigation. A fish ladder on falls A would be an inexpensive addition to the project. Unfortunately, it is diffi- cult to detennine if the stretch above falls A is already being used to its fullest extent. If it is, the fish ladder may not produce added returns. It is, therefore, recommended that another inexpensive project be found to improve salmon habitat. (For example, a fish ladder on another nearby stream or rebedding a culvert that may be an obstruction to fish passage.) Site Access Power Authority staff believe that a road to the powerhouse is necessary for both construction and monitoring the working project. In discussion with local residents about using boat access to the mouth of the stream and then three-wheel ers from there to the powerhouse, it seems that one cannot always boat on the bay. Thus, a road or three-wheeler trail from the town to the powerhouse is necessary. For most of the 0.6 miles to the powerhouse, road construction will be relatively straight-forward --requiring some small bridges or culverts (5 to 20 feet). For the first 1000 feet, however, there are problems. This portion of the road must tra- verse a very steep hill. Construction in that terrain will be 1036/748/23 (20) . 7 t·· n I I I I • I 'I • I I I I I I I I I I I I I I o ~ ~ Q (J Q C I G I I I I I I difficult and expensive, possibly requiring equipment not now in Atka. Some equipment is available locally. As of 1986, the village owned a John Deere 450 loader/backhoe and a John Deere 350 dozer/backhoe. This equipment is probably adequate to build the weir, penstock, and powerhouse. The latest cost estimate assumes this equipment is also adequate to construct the access road. B. Cost Estimate. Power Authority staff prepared a cost estimate . for the Chuniisax Creek small hydroproject. Table 6 provides a summary of the estimate, and Table 7 provides the full estimate of construction costs. 1036/748/24 (21) Table 6. Summary of the Cost Estimate Chuniisax Creek Small Hydroelectric Project Material s Hrs Access Road $30,800 ~ Diversion Weir $10,560 720 Penstock $41,450 720 Powerhouse $150,800 840 Transmission Line $6 2360 160 Subtotal 1036/748/25 $239,970 3,080 Construction Total: Mobilization, Demobilizat1on, Supervision & Administration: Mitigation: Contingency @ 30%: Total Cost: Use: (22) Labor Cost $1lr,Sbo $12,000 $11 ,520 $14,040 $3,024 $51,144 $291,114 $138,000 $ 15,000 $133,234 $577 ,348 $575,000 I I I I • I , I I , I I I I I I I I I I I I I o ~ ~ II o D G I I I I I I I il The cost estimate assumes extensive use of local labor under the direction of an experienced supervisor. Using local labor avoids the high costs of union workers. The local wage rate for laborers is assumed to be $15/hour; for equipment operators, $18/hour. The powerhouse and transmission line will require a skilled electri- cian, estimated at $45/hour. Including an estimation of contingencies provides for unknown or unexpected costs that may develop. The contingency value is se- lected based, among other things, on the amount of data available. For reconnaissance level studies or pre-feasibility studies such as this one where only basic data is available, a contingency of 25-30% is appropriate. As the design or studies progress and more data becomes available, (Le. surveys, geotechnical data, design drawings, etc.), the contingency can be reduced. When the final des i gn is complete, a 5 or 10% contingency wou 1 d be appropri ate. Because only basic data is available for this project and due to the remote location of the project, a 30% contingency was used. The cost estimate must be used in the fashion it was intended. Without careful construction practices, it is certainly possible for construction costs to exceed $575,000. For exampl e, if the project were bi d wi thout ensuri ng that the fi rms make 1 oca 1 1 abor arrangements, the cost would almost certainly be higher than the estimate. But there are also opportunities to construct the proj- ect for less than the estimate. 1036/748/26 (23) Power Authority technical staff feel that an access road is a much needed part of the project and should be built using locally available equipment. Since the existing path is quite steep, regular maintenance of the powerhouse could be inhibited by lack of an access road. Approximately 50% of the $575,000 estimated is the actual labor and materials price. The 50% for mobilization, demobilization, admin- istration, supervision, and contingency provides several opportun- ities for the creative contractor to cut costs. If another capital project were underway in Atka and there were an opportunity to ac- quire inexpensive mobil ization {i.e., if a barge only partially full were already going to Atka}, the mobilization and perhaps the demobilization costs could be cut significantly. Indeed, the dif- ficulties of construction in the Aleutians do increase the costs, but a creative contractor may be able to avoid some of the in- creases. It is doubtful, however, that the actual labor and mate- rials costs will be less than that estimated. In summary, $575,000 is a conservative estimate of costs using local labor for a community construction project with road access. Without careful bidding and construction practices, the cost would almost certainly be greater than the estimate. However, a creative contractor with full cooperation of the community might be able to construct the project for less than the estimate. Perhaps, the 1036/748/27 {24} I I I I • , • I I , I I I I I ,I I I I I I I D o .!] D Q o o 8 G I I I I I I project could be constructed for as little as $500,000, although that significant a decrease is unlikely. 1036/748/28 (25) ....... N en - Siale 01 Alaska ~ AIBIla Po..,. AuIhDI1ty .. PO.80.11lO8119 PROJECT NO 101 Eall Tudo< Road Anchorage. Alalka 99511Hl869 I OWO. HO COST ESTIMATE WORK SHEET I SP~C. SECT ION I DATE 1l .. !Jb/8tr StlEET J O~_ ------I ESTlMA.TEO IY If WII.L.lA~.s PROJECT TIfLE A11£4 SMAU h' .Y ?.RD QUANTITY MATERIAl LABOR TOTAL FREIGHT !1 M ~I ~olal Mal'l & Labor ~ 20lal No. Unils Unil Price COSI Hrs. Rale Cosl nil il"WI S/JMMAR. .Y .- .. - A~e ESS /(I)AJ) :J/J t:A,b/) l~11 II') If&{) 1t>£ # DII)E.I?-~ If)},j I»E..J~ J/)~ 17LO }&..IJIJ/) h!>!:l'" --PeNS -rl)c, K 4J.45tJ i7UJ II. 5&.0 2..1" bw,;. A HbU.51L J5tJ.PLYJ B4l 14Ji41J !2~ -r~ AIIlt::J4 JS "i11JA/ L IJve ~O lfLO 301.4 2._~_ til 1~,47b a bAG) .. sll44 l-t~.t~J. Jl~ 1683 }~ E flEnrEJ Pt.w (, " " OAIA I ... '/~ "'1~-fM~ II B~ . .1L.12t2 -~--.. - I M.L:Ihi.4 -rJI'JAI 15UJI'J I. ·1 , . I --. Su..s.7 ~rJ :1 r444.1L4 r----, 1133.2...3+-1-----~/)II/TI), '(;£ lei'! _~tJ~ I w~A ~ [S"n .3+~ I ..Ji' LlSE ~7 5.1J.P!:3.L- Hie e~ (!,IJNS-r,tU(.. ""IIAI J&.~ Table 7. Full Coat Eatlmate (page 1 of 7) ...... o w ~ --....j ~ CO -w ...... Slate 01 Alaska ~ ~ Po ..... AuthoI1ty -.11 PO. Boa 190869 PROJECT .. 0 701 Easl Tudor Road Anchorage. Alaal<aIl9519-Q869 [ owe; NO I SPEC SECTION ---_._- PROJECT TITLE ATKA SH.AJ J II Y lJ,flJ QUANTITY MATERIAL No. Units Unil !In .. Price COSI /10.P. r'lj~MoR PW. !;uAJ ~IU~; :hM/ r ~"'AA ':"IiICH'"f' SI!.4 TTLJE -A Tlf/J. J}jA IVA 1'.J11/J 1 BAAl t, Jh~ F~IfJt:JJ'" A LL~L,)AIII tI. rll( IPAAJ ~ "JI. RJ6SJ"~JII /Jj~ I=AREE rlJA. ELErn tJI"'Av l7iuJt VLt/N ~A/ Z- PREPA~s:. &". • .LJ i/'1AT~ ~AA .<:' u. ,~ '.0:' A.j iT. LIJA/l l ~MJHL Tt)f)LS ( i-tJ.5 t:.- 1=.'1" .~~. '(' P~I! lI'uP ENG~A~J:I/:~~Aht::. ('. N~ 'IAL!. '#-"'7' 14~~.L' Y"A .... 1.0.# AnurAlJt: "~A~.A~ f8.O{)K K E'.c;:PJJ\/~ PA V.rfbt .J)~ • ~,..~ I' , I COST ESTIMATE WORK SHEET I DATE I2.J)~/A5' [ SHEET 2. or 7 I ESTIMATED BY R. t,t} ~L ~ .~A4 ( LABOR TOTAL FREIGHT ~ TOlal Hrs. Rale COSI Mal'l & Labor % n.1 TOlal WI 'A~~<: 'T~"" r'.//JA1 . JAAUJ .... .HE. lr1'" INAT ilJ' "" !JAIJ 1..1'1" IAiO> 1. ~ , ~l> I,. .. n ... " 1S: Mt) oJ;': IJIJO 3/M/J . 75:MO I~ .. t:l ~.u~ £1 ~.) 15" /J~O I-----t----- ~3. /)()[) .- I , r-0 - I ~!---.~ .-1------- Table 7. Full Cost Estimate (page 2 of 7) ..... o w en ......... ....... ~ <XI ......... W N -N <XI State 01 Alaska ~ AIBIuI Po..,. Authority .. P.O Bo. 1lI0II69 701 Easl Tudor Road Anchorage, Alaska 98!i 19-0869 PROJECT NO I OWG. NO. c-------. I SPEC SECTION PROJECT TITLE !i7J{/J SMALL J-J .y f)Jf 0 QUANTITY MATERIAL No. Units Unil !1 M PI ice Cost j.} t'. C, l! S. S R/'iA-n : ~ VA TJ. 1':. Itt ,~, ' MAL g, JI! 7/, ',4L L ~Nt;. 'rrJl :; ~ A U. iJ:: nAIL Iv J. IDtt.A E.. /.).,~. J: D 45() L MH)~~ Jt.IJ INA' 30 AQ/)/J _i.D .. ~l) /J1'J21l.1 JI../) JJ,A ~O 32.1)0 ~LA"I'~~IJ ~~IJ'Jt' 4lJ JJIt 1~ W10 PD~",""'. &UJl~~ I £A l.J IJI)O /0.. u_~'Tt;, J 2/J LI= Ilr ~D ()PEIA-rOA's ;... EA LA~!lL)~.A.!J. 2-1#/1 1.:ta}100 COST ESTIMATE WORK SHEET I OATE) a/I~JAS" SHEET 3 OF 7 I ESTIMATED BY ,.f. to'LI,4,..,.,s LABOR TOTAL FREIGHT ~ 10111 ~ Olal HIs. Rate COSI Man & labor n'l WI _r:/~11 ~(' (J$ 7"), "" ~,...d ..... i/I::&& r j.r .n,~, ~UL1} ~-~ iuY' I1:LO .3!! !{" 1&0 .32L> J~-_f"7"-0 J~{) 320 J.r-4-8() 0 Itn40 JIJ"~ () ~ Table 7. Full Coat Eatlmate (page 3 of 7) .. -o W 0\ -......, ~ CO -w w N 1.0 ---.. .. Slale 01 Alaska ~ AIaM. Po .... Authority _ po. 80. 190869 . 701 Easl Tuclor Road Anchor age, Alaska 995I1H1889 PROJECT NO lowe; NO I SPEC. SECTION --- PROJECT TITLE A-rK'A _C;H~ .L JI.J/ f)P{) OUANTITY MATERIAL No. Unils Unit ~n11 Price COSI nJ/)~pt:; I/)A/ UJA.JI f' rNrA fE .. --. .•. AS.5IJME A 10' )h&H SHES. .,-) ~.ILE Sr~l.Jl IAI o;-rJPEAH R6.f) ~~~8:1' P.UNI!:. r '2. -~ 1";';1/ 8$'0" z.~S"O 5\.,.111""" t:;T"¥~L ) el!._~Y .J() Is.,.~f 7-2..J/) :r 0 4~{) A1AI'VIUJ~ ftj/') Jk 30· 2M/) ~ :1. 0 .3SD DLJZ':A S() HA 2.1} J&.~() I=LAriC&n 7Adl'V 80 '/lA, )5-JlLJO 1'J.16t~~Yb.IP ( 3 . EA. / ~A".lPEJP~ ~ I£,. ,~.I1UJI)It.,.v I E~ -'5".5"D S I..UJI'.F t;AT"~ J EA. 5"S'"IJ 'H,s,t'. "~L~ InA, M'" PUHP J IlIJT /5"00 ·JIJI{t'-./) Cl .. COST ESTIMATE WORK SHEET I DATE J2/J1J J(l£, I SHEET 4-OF 7 I ESTIMATED BY R. tlJJJ..L J 9M_S LABOR TOTAL FREIGIiT ~ TOIII ,il Hrs. Rale Cost M ... , & labor ~ n'l J~lal WI .,..~~~ '-It.,N "'I'ET,I;~ ~ ~O ~t> .36 -- f----t-----. M 24!> J!Lj-~8~{) i 8t) 4~ J~--7Z./)O , ~---- S'tJtJ S"" --~ _£ StJO r 71D JZ/JI){) --'--..... j/)5 Table 7. Full Cost Estimate (page 4 of 7) .. .......,.. W o - -, Siale 01 Alaska ~ A ..... Po .... AufIIGrIty .. P,Q eox 1908811 PROJECT NO 101 East Tudol Road Anello ••• Alaska 9115llHIIl69 I owe; NO I SPEC, SECTION PROJECT TlTU IJIKA S,..,AJ.L fly f),.() ~ QUANTITY MATERIAL No Units Unil ,\!?~~ COSI P£AlS -rOI'J'L -1A1-n ¥JIi! ~ F~ LJ.~ £) PELv~ "'I"iJI"K 1~/ " \,. 1/)/)0 IF lJZ~ 12.7Sa fPIL,-YE.7;}LLEA/E) 1 iIAlS2'.4L L lA/J, L.c lbAY .:In ~SD L)6~.4 an HI 2.fJ l&ttJO .lD 4Sl) IJA{OItt'HI)~ IJt:) JJjf .JO 24bO F'l AT'.ft S b TIt #1' JI( at> 1M. I$' • 12.00 .E!.''l/IltM NAI'.»b.JJ//I ~." AJ"ln 1 I.E~ fi'p:l. S.AW~ ~~) /1. 5'~O 77tF-r ""L~ &7''1.5. J ,~~ II). tJ4{) Ml$1'. F1TT.lAN!.! r LJ.IA ' ...... i J L£ Z.l)()o /')PF~.4 -rbll'S .~ tf..LJ LA JjIJ// }I: It 5. ~ LEA. 141. 45"l> COST ESTIMATE WORK SHEET I D,Z J I~/IJ S-SHeeT s: Of 7 1 ESTIMATED BY ~.uJILL.I;9A...tS __ LABOR TOTAL FI~EIGIiT ~ Totll Rate COSI Mat'I & LabO. ~ Hrs. jz..!! 12 OJ jq 10 ,---t---- .... . _.-1---... R£> 241J ur 431.lJ --1---j-----' so i4IJtJ 15-72{)/) :-. -1-----.- InO I/L.4l2l.> 12.10) --- Table 7. Full Cost Estimate (page 5 of 7) -~--~~~~~.~-••• -- -W t-' - II Slaleol Alaska AMsIla ,."",.. AuthDdty PO. BOM 190869 701 fall Tullo< Road AnchOfage. Alaska 99519·0869 PAOJfer NO I OWG NO .-.' _. ..----.... ----.. I SP~C SECTION PAOJECl llTLE A 7 K A _C;MA, L }).Y j)~/) QUANTITY MATERIAL No Unils Unil !-Inti Pllce COSI Pt>w E J{',l)N I';'!!!' ;::/JIJAlbATUM/ ('. J'JjJLPA,"~ I LS 1.Ij'OOIJ fJU.IIIW.JG (JI.'YJJ.') I L$ ISOOt) 7i.J"A,,/~ (IIVJII'JJ.J -r.,A&b) c:.V~.J r.; J(AJ~AlTAI I P¥6. OJI/ iJtJo (.;"11& ~AJA~ ) , <; "JlT".M t;#~ r'N .. ", £'1.6'.1: L ~T II'.. nAD , S 7"ifl.; .ui) "'TA £ .... "'~.. ... ~ I E.f. .3. ZOO EL#r,"I"JtJl'!..AI' -r:.. · .. • ... vUMI J ~~ 1/7:.#". .A_< & ... /J I AIIA1> JIil'. 4 <: r r."'1>I'k;.vr~.,( " EA. n~/IE."'''''''-'' J ~. IIi 4t;"n iAI'NJl.lJ6 80 JI~. 30 2. 4IJ() I h 11.,. RitA ~"'It<' RO J/." 1'5 J2/)/'} J50J!JDO COST ESTIMATE WORK SHEET I OArt Il/;A/aS' I SHEEr G Of '---I eSTIMATED 8Y R. W" .. ,~."t" ... . .. ,. LABOR TOTAL FR'EIGH! ~ 101.1 Rale Cos. In; Hrs. Mal" 8. Labor ~ n •• )01.11 WI - 54 I/CJt) /£,'-. . T_l~-., I -_.-.. 'EM) 4~ .,.$''' 18~O 12/) 72n 15'-Jb.fl/)O -r-.,. '- til/) an J 1.441) ,---- .------ la.fl> 14./)4/) ____ 2.ZS' r Table 7. Full Cost Estimate (page 6 of 7) -W N ,; State 01 Alaska ~ AIBIIa Po,.,. Authotfty ., PO. 80. 190869 101 Ea.1 Tudor Road Anchorage. Alaska 99519-0889 PROJECT NO I DWG NO. 1 SPEC. SECTION PROJECT TITLE ATKA S1JALL II y/)~o QUANTITY MATERIAL No. Units Unit ynn Price COSI T/;AAlS A.4J"~J/JA/ LJN~ Pm. ' .. 1#~ UI.sE - A5SUM~ Jiy,,IIJL/J L"'tll U,.) ~s ~A P,'L6 7j, 1k ALH/ I!A-8/1 li~vJ) 112 Ed) 4 1~-.tI a 8N) 3M!) by S.DLU. f'.~IIJn~ r ~ E~ 2/.1.) /3tJD ILU.IJ.A,L ~ ~ ~~' l c~. 2.fiJ{) sz..o ~e J.lAI" •• ,6 •• J loS s-{)O J':f) 4~D aAI'lhJAIi fJ lilt ~() 24tJ lJrr t!lI UH -r r.. AI 41J JJ~ 15 t:.tJO np#~4.~ / ~..A.. LAAAIl11E.Jt 1... E~ E. L~~TLH'.AL _r,... .~ili:.YN~AI J I&"..4 ~.#, ~J'.u~ f I iD3&,l> COST ESTIMATE WORK SHEET I DATE /ZIJAJIfA SHEET 7 Of 7 I ESTIMATED 8'1' N.W4.L/~~ - LABOR TOTAL FREIGHI ~ ~olal Rale COSI Man & labor ~ ~~I Hrs. n,1 IJrv. " ~"" ~(' oS -... -~ 4'" ~ 5t> .3 S()/) II.) -- I r----- I 4A /IJ 8,4 r--- -- 4A q6, J.!,'" 144n ,) II. 45' ~() .-r------- IJ'O .3.112.4-._L...--. .2.3. Table 7. Full Coat Eatimate (page 7 of 7) .. ---........ ~ .... -••• ---.- j I .. I " ..... Ii II IJ_· o ~ t.J !) iJ D o IJ B G II I. '. I II II C. Energy Production. Estimating the energy production from the project is a crucial part of the feasibility process. Energy pro- duction can easily be calculated from an estimate of stream flow. . This section of the report, therefore, begins with a discussion of streamflow in Chuniisax Creek. That discussion is followed by a discussion of energy production and the village load. A recording stream-gage was installed on Chuniisax Creek just up- stream from the proposed intake location at falls D. The gaging record extends from May through November, 1983. No information was collected December through May, because snow prevented local resi- dents from getting to the site, and because snow and ice over the river prevented the gage from working. Discharge in Chuniisax Creek is extremely erratic. Its stage re- sponds quickly to precipitation, lack of precipitation, or tempera- tures below freezing. According to the 1984 data collection re- port, "minimum discharge can occur in any month that precipitation is light. Alternatively, when temperatures remain below 32°F for extended periods, solid precipitation can remain in storage and, consequently, substantially decrease discharge for that period. "Discharge data for Chuniisax Creek do show diurnal, monthly, and seasonal variations, with discharge quickly responding to rainfall durations and intensities .••• On several occasions, discharge was observed to decline 50% within a 24-hour period, th~s illustrating the low drainage basin retention time. Having determined that max- imum and minimum discharge rates can occur within any month, the 1036/748/35 (33) prediction of stream discharge with high confidence intervals be- comes exceedingly difficult." In sp i te of the short di scha rge record, the consu 1 tant used thei r records to synthesize a number of discharge profiles including mean monthly, and maximum and minimum instantaneous discharge. Two of those discharge profiles are reproduced in Figure 4. When the project is reevaluated in the future, additional stream gage information would be appropriate to determine whether the ini- tial data reflected an average, adverse or wet year. 1036/748/36 (34) I I I I • • , I I , I I I I I I I I o Q o C IJ D 11., -- I I I I I I I Figure 4. Chunllsax Creek Discharge Profiles 45 40 , I I 35 I , 30 , , , .. I ~ 25 w I '" I '" <I I x 20 u II'l I 0 I 15 , I I \ I \ I 10 \ I , / " / 5 , ,/ ------MEASURED ---ESTIMATED o DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NC1V 35 30 -:;; 25 u ~ 20 a:: <I x U II'l .5 15 10 5 198211----------1983 ----------i Mean Monthly Discharge " --.... ,,' ........ _" I I I I I I I I I I .,1 ------MEASURED ---ESTIMATED Minimum Instantaneous Discharge (35) n Energy production was calculated from the streamflow information presented in Table 4. The calculations assumed the following pro- ject parameters: Gross Head Net Head Maximum Turbine Output Minimum Turbine Output Efficiency 125 feet 120 feet 80 KW 16 KW 65% $ The calculated potential output of the hydroproject for the parame- ters above and the year of streamflow record 1n the 1984 data co1- 1 ection report ; s 520,000 KWH per year. This amount is greater than the community is presently using but close to what the community might use if some economic development (for example, the proposed freezing plant) were in operation. 1036/748/38 (36) ave 1 I I I I • , I I , I I I I I I I I • I C o ~ D C ~ fj B ~ I I I I I I 1986 1988 1989 1990 1995 2000 2007 As its load increases, the village can absorb more of the hydropro- ject's output. Table 8 uses the three load forecasts outlined in Chapter II.b., Energy Use and Load Forecast, and shows the commun- ity load and proportion of that load that the hydroproject will meet for selected years. The table shows that in each forecast, the community will still require some diesel use. Table 8. Summary of Load Growth and Hydro Use 0\ Growth 2\ Growth 4\ Growth Community Freezing Useable Community Freezfng Useable Communfty Freezfng Useable Load Plant Hydro Load Plant Hydro Load Plant Hydro (KWH/yr) (KWH/yr) (KWH/yr) (KWH/yr) (KWH/yr) (KWH/yr) (KWH/yr) (KWH/yr) (KWH/yr) 231,000 0 0 231,000 0 0 231,000 0 0 231,000 170,076 0 240,332 170,076 0 249,850 176,076 0 231,000 262,800 0 245,139 262,800 0 259,844 262,800 0 231,000 262,800 444,420 250,042 262,800 457,145 270,237 262,800 470,379 231,000 262,800 444,420 276,066 262,800 480,180 328,785 252,800 520,000 231,000 262,800 444,420 304,800 262,800 505,461 400,017 262,800 520,000 231,000 262,800 444,420 343,254 262,800 520,000 486,869 262,800 520,000 1036/148/39 (37) Chapter IV. Economic Analysis of Hydropower This section of the report calculates the benefits of the proposed hydroelectric project and compares them with its costs. The result is a benefit to cost ratio. If the ratio is greater than 1.0, the project's benefits are greater than its costs and, the project is considered economically feasible. If the ratio is less than 1.0, the project is not economically feasible. At this point in the project feasibility process, many of the important assumptions such as cOl1ll1unity load growth, cost, fuel prices can change. It ;s important, therefore, to see whether changes in the assumption will change the economic conclusions (called a sensitivity analysis). The second part of this chapter tests some of the important assumptions to provide the sensitivity analysis for the economic conclusions. A. Expected Benefit/Cost Ratio. The benefits of the hydroelectric project are the money saved by not running Andreanof's diesel generators to produce electricity. The value of the project can be detennined by comparing the cost of running the diesel s wi th the cost of building and running the hydroproject. Because these costs vary each year --the hydro requires a large up-front cost, while the diesels require a smaller up-front cost but need expensive fuel to operate --the costs of the two alternatives are compared by discounting the costs to today's dollars. This analysis compares 1036/748/40 (38) I I I I I I I , I t I I I I I I I I • I I I I Q ~ V C D IJ ., & I I I I I the various costs for both types of generation (construction costs, fuel costs, operation and maintenance, etc.). It projects those costs without inflation for the 30-year 1 ife of the project and then adds up the discounted value of each year's cost for each alternative. Table 9 provides an example of the costs and benefits of construct- ing the hydroproject under the 2% growth forecast for the first 5 years of analysis. (Calculations for the other forecasts are contained in Appendix A.) The benefits come in three categories: fuel saved (from not running the diesel system), operation and maintenance savings, and capacity savings. The second row of the tabl e shows the year. Rows three and four show the conmuni ty load and the amount of the load that can be supplied from the hydroproject. Other than construction, the only annual cost to the hydro 1s Operation and Maintenance (0 & M). Row four contains an estimate of the 0 & M costs of the hydroproject: $22,000 per year. That cost is counted as negative benefit to the project. The remainder of the spreadsheet shows the hydro's benefits. The most obvious benefit of the project is that it saves the cost of displaced diesel fuel. The amount of diesel fuel saved is the amount of hydro energy used divided by the diesel efficiency in KWH/gallon. 1036/748/41 (39) f\ The results of the calculation are in column six. The spreadsheet assumes 8.4 KWH/gallon fuel efficiency. That amount is an average efficiency for a maintained small diesel generation system. It is possible to achieve higher efficiencies, but most diesel facilities Atka1s size do not do so. The value of the fuel saved is contained in column seven. It is the gallons of fuel times the cost. The 1987 fuel cost is $1.08/gallon. Standard Power Authority parame- ters specify the two trends in fuel prices. The low trend is a 2% increase for 1987 -1995, flat prices thereafter. The high trend is 3.5% increase from 1987 to 2005. The operation and maintenance savings are estimated at 1¢/KWH from Power Authority experience with small diesel systems. If the hydroproject exists, the diesels will be run less frequently and will last longer. Generally, small diesel generators should last twenty years. If they are run only as back-up to the hydro- project, they should last thirty years. Potentially, the 80 KW hydroproject provides the added benefit that the utility can avoid replacing 80 KW of diesel generation. The total cost that the community avoids spending because of the hydroproject is the total of fuel savings, 0 & M savings, and replacement savings. This total is IITotal Avoided Cost ll in the spreadsheet. The benefits of the project, however, are less than the Avoided Cost. As explained earl ier, the hydroproject will cost approximately $22,000/year to operate. The benefits of the project are the Total Avoided Cost less $22,000. 1036/748/42 (40) I I I I I • I , I I I I I I I I I I I I I I C D ~.c .•• '" rJ " C1 g D I I I I I I The sum of the benefits for each of the 30 years of the project's life, discounted to 1987 dollars, can be compared with its con- struction cost. In this case, the discounted benefits, or $976,306, are approximately 1.7 times the construction cost, $575,000. 1036/748/43 (41) ATICA E::CoNOM I C fiNAL "'S I S o i ~c':)lJr.~ Re~e s. 5;~ Inf'laf:.ion lir':a~ ... (I. O~~ P'~riod a 1 2 3 .q c' '" '("'for 1~87 198E1 1989 1990 1991 1992 H'l'ORo -----_._------_._---_. __ .. _--_ .... _--.. -_._------_._----------------.- Cons~r-uc~ i c.n $575.(100 Co«,muni ~y L.oad 231.000 235.620 ~16.408 507.939 512.8<42 517. a'~8 atoM $22.(100 I''(.ar U:Moabl ...... ~dro a a a .. 57.1 .. 5 "61.558 <466. oSEI Econofnic LiFe 30 ............ Load For.cas~ 2 ~ Annual (Lolol=O. M.d=:2. ti i gh::4 ) DIESEL AVOIDED COST PflR~1ETERS Replaced Capaci~y(KW) a a 0 0 a 0 Fuel f:>r'ice 1.08 16allon C~pi~al coz;~ I:S) a 0 0 0 a 0 Fuel Escal.~iorl 2 (I::High.2=lolol) Diesel EFFiciorlcy 8.<4 KWH/Gal Fueol Price $1.08 SI.10 SI.12 SI.15 $1.17 $1.19 ~ Di.sel Rep laco.,ent. S700 I'KW Fueol E.cal.~ion 2~ ~~~ 2~ r.~ 2~ 2~ N o " M SO.Ol I'Ka.i Fueol Savinta,CGels) a a 0 5<4.<422 ~.9<47 55.<489 -Fueol Seving,CS) so SO so 562.373 S6·".235 $66.159 DISCOUNTED BENEFITS S976.906 a " M Sevirlg.(S) so so so S5.079 $5.128 $5.I?EI NET PRESENT VALUE $"01.906 T()1'AL AyoIDED COST so so so .:67.~3 S69.363 $71.337 BENEFIT/COST RATIO 1.70 H'fORO a " M Co.t. $0 so so $22.000 S22.OOO $22.000 TOl'AL H,(DRO COST so so so $22.000 S22.OOO $22.000 BENEFITS so so so $"5.<453 S"7.363 $49.337 Table 9. Example Calculation: Benefit/Coat Ratio -~-----~~~~~-•• -~ - - I I I I "'" I.J D " 1.1 o D D S G I I I I Table 10 summarizes the project's costs and benefits under a number of different combinati ons of assumpti ons: three load forecasts. two oil escalation trends and two generator efficiencies. Table 10. Benefit/Cost Summary (Figures in Thousands of 1987 Dollars) Table lOa. Full Load Freezer Plant Low Fuel Trend 0% growth 2% growth 4% growth Discounted Benefits 833,546 976.306 1.022.012 Construction Cost: 575.000 575.000 575,000 Benefit/Cost Ratio: 1.45 1. 70 1.78 High Fuel Trend 0% growth 2% growth 4% growth Discounted Benefits 1,220.695 1,423.440 1.473,854 Construction Costs 575,000 575,000 575,000 Benefit/Cost Ratio: 2.12 2.48 2.56 1036/748/45 (43) I I Table lOb. Half Load Freezer Plant I Low Fuel Trend I 0% growth 2% growth 4% growth I Discounted Benefits 529,019 692,858 871 ,130 Construction Cost 575,000 575,000 575,000 Benefit/Cost Ratio 0.92 1.20 1.52 • High Fuel Trend 0% growth 2% growth 4% growth I Discounted Benefits 813,148 1,050,612 1,304,744 Construction Costs 575,000 575,000 575,000 I Benefit/Cost Ratio 1.41 1.83 2.27 , Table 10c. Zero Load Freezer Plant I Low Fuel Trend I 0% growth 2% growth 4% growth I Discounted Benefits 224,493 460,674 590,574 Construction Cost 575,000 575,000 575,000 Benefit/Cost Ratio .39 .80 1.03 I High Fuel Trend 0% growth 2% growth 4% growth I Discounted Benefits 405,601 743,745 936,771 I Construction Costs 575,000 575,000 575,000 Benefit/Cost Ratio .71 1.29 1.63 I I (44) I 1036/748/46 I I I S o D o C1 D D g G I I I I Chapter V. Conclusions and Recommendations The anticipated addition of the freezing plant in Atka greatly affects the feasibility of the hydroproject on Chunissax Creek. The load from the plant effectively doubles the comnunity load which brings the project from marginally feasible to feasible based upon current parameters and projections. Fuel prices would need to fall dramatically to affect the analysis, and this is not anticipated with oil prices stabilizing at higher levels. Fuel prices have been falling all around the Aleutians and western Alaska. Atka is very remote and its fuel prices will undoubtedly remain high, but it is very possible that increases in transporta- tion efficiency will lower prices. If conditions remain as they are, and Atka's load increases significantly, the hydroproject's benefits will be markedly greater than its cost. But all of these conditions are speculative --especially load growth and fuel cost. As the load from Atka is still highly speculative, it is recom- mended that collection of load data continue for the comnunity and for the freezing plant when it comes on-line. In conjunction with this data collection, staff recommends that stream gauging on Chunissax Creek be started again for greater accuracy in determin- ing potential available energy. 1036/748/47 (45) If the load from the freezing plant to be constructed in 1988 does not materialize as projected, yet the conmunity still wants to construct the small hydroproject, lower construction costs should be sought. If other heavy equipment were available in the conmunity (if another capital project were scheduled), the hydroproject should be looked at again also. It would be too soon to schedule the hydroproject when DOT/PF does major airport mainte- nance in 1987, but the boat harbor construction remains a possibil- ity. Regardless of the small hydro, the Power Authority recommends that the' existing diesel plant be made more efficient. The generator sets were originally installed to run in parallel, but the paral- leling function is not operational at this time. This likely will require work done by a service representative from Seattle or Anchorage. Repair of the dam itself and changes to the intake of the penstock could rehabil itate the existing small hydro. If the generator were changed to an induction system, the small hydro could be interfaced with the present diesel system. (Dedication of the present synchronous generator to serve one part of town would eliminate the need for interfacing wi th the exi sting di stributi on system and diesel plant.) 1036/748/48 (46) I I I ,I , • I I t I I I I I I I I I . ~: .. ' ..... . .II i I I o ,.., t..J C C ~ o D C D I I I I I In the sUlTlTler of 1987, the diesel plant will undergo some mo- dification during installation of a waste heat recapture system to heat the teachers' quarters and the cOlTlTlunity building. The Power Authority provided the design for the waste heat installation which will be financed by federal and state funding through the Institutional Conservation Program. The cOlTlTlunity will provide labor for the project and the Power Authority will inspect installation and start-up. In summary, Power Authority staff recolTlTlends that investigation of a small hydroproject on Chuniisax Creek be continued through increased conmerci a 1 development, for exampl e the freezi ng pl ant, in the cOlTlTlunity. Data collection will indicate how substantial the total energy demand increases are over the current level and whether the price of fuel increases cOlTlTlensurate with the high fuel escalation trend over the next few years. The first step of the feasibility continuation should be stream gauging for at least a full year to determine more accurately the resource potential. 1036/148/49 (47) ~ i I I C ~ . i.J ,0 ,., IJ C o D ~ D I I I I I I APPENDIX A The fo 11 owi"g 1 etters and cOlTJrlents were received by the Alaska Power Authority in response to the draft of this report, dated August 1985 • 1036/748/50 (48) I I I I o o o o o D ~ I " ill I I I I I I Concerns and Comments ATKA SMALL HYDRO PROJECT PLEASE LET US KNOW OF ANY ISSUES, PROBLEMS. OR CONCERNS THAT YOU FEEL SHOULD BE GIVEN SPECIAL CONSIDERATION IN RELATION TO THE CHUNIISAX SMALL HYDRO PROJECT IN ATKA. .s -II( J') J;.J v,,1 I~" I~ j~ h's)".'rJ (J1F;4) )1T,b/4 f>J).'''Ir1-.,'; 141:r~/"/'·~'YI. Fr~'t!'~"'r tilt,,;, )I.,/.j,,/ S'~J""'/ )'1;''''/' 1J1), ;;Tn~<, ;;:7 ftJ'" f -/F j ,,/--,-. hpj ('~ J1,..f-, , WOULD YOU LIKE TO BE NOTIFIED OF FUTURE ACTIVITIES ON THIS PROJECT? NAME Wt?~~E" ~ 0 B I ~ ADDRESS j !XI Yes D No TELEPHONE __ ~/.;:t!!3...J.1..::.-.....:Z~Z-=3~2~}~~i'.:::;.3~'_---=2:;..;;Z~.:1","",j,---__ (""rJ,..) T ~t!) 1658/428 I I I I o ~ u o .". LJ o C r.·; J.; D iJ I I I I I I Concerns and Comments ArKA SMALL HYDRO PROJECT PLEASE LET US KNOW OF ANY ISSUES, PROBLEMS, OR CONCERNS THAT YOU FEEL SHOULD BE GIVEN SPECIAL CONSIDERATION IN RELATION TO THE CHUNIISAX SMALL HYDRO PROJECT IN ATKA. -tlti.C,<'--<l1LLf, ~~)-<~~"-L-:tu--zv.:o(./,-r-n~ rd--t-~ dLv'--U..GrkJ ... ~A..-'L i~~l it ~.~ ~c:d~/~cJ,~/ vtv~~. /J/~ ~~~~r~ C~~,~ ;;;Lt~ ~ -£&~ /l~ :b' ~ . 1 " a.. ~~e..a: ,') {4¢ cV/, a~, r~ ~L-dA /U~ ~V foC-Zu.-,~nt.---i~, ~ hc-~(//;r~ ~ ---tt--z-U ~'--t-, Cl-'1-' ---0~~ ~ C L t.-,o,:7:b'0/ L,.. -{ ~ j' , WOULD YOU LIKE TO BE NOTIFIED OF FUTURE ACTIVITIES ON THIS ~ROJ~CT? . I NAME 1 ADDRESS 1658/428 ~ DNa i I I i I ~ t.J " LJ rJ ".1 t.J "' .... ' .. i.J " II D I I I I I Plan 'orMUlltion Section ~r. E~wfn t. ~orrfs Director ~f Plan"'n~ Alasta Power Authority 3~ West 5th Av~nu. Anehorlg~. Ala~kl 9q~Ol Delr ,..,.. Jl\trrf 5: ,4 N nv 1. DEPARTMENT OF THE ARMY u. So ARMY ENGINOR DISTRICT, AW\SICA CORPS OP' ENGINaRa P.O.Box ... NPAvN~t2j-,a (c) ANCHORAGE. ALASKA __ -0898 , . .. -. Our Pllnn1ng Brlnch stiff h.s reviewd y~r ~If~l sJ.fl:C4 tfydropowe .. Fels1bf1fty Study for Atkl. We ICJ"" in concept that the propos.d .. thad of const .. uct1ng the p .. oject and the costs desc .. ibed are relsonable fo .. SUCh I s~all ,nd "eMOte D11~t. Atkins appelr to be ~ti'lt.d IS I grouP. ,nd the us. of I 9 ... rt for locil const .. uctfon labo .. hl~ ~d potential '0 .. success. Page 5, list sentence: The observatfon t~lt t~. P~we .. Cost EQu,l1r,t1on ,Prna .... oives no inc~tive to corsfrVe is one in which we a~ree. Its ;pplfcltion throu~out tn. St.te ~11 undermine ~tent1al lon.-term benef1tl of efter~J use reduction. Pa~ 10: The Al.lkl Ofst .. ict's SMall Boat Harbor Technicil Report' was coqtleted in Sept_ ... 1985. We concluded thlt I servfc. harbor located iR NlI.n 81y would be benefic1ll to Plrt of the Aleutian groundffshfnQ industry and could facilit.te growth of Issocf,ted indultry It Atkl. eath of the twa pllns evllult~ include e hlrbor nel .. the mouth of ChunfillX C .. eek • ...,.v .... the locltfon of the associlted dock ,nd onshore support facilities is different in elCh plln_ One plan would loc.te these facilities nelr Chun,t ... Creek and the othe .. nelr Dock Creek on the oppolite side of Milin ft.,. In efther c.se perhlPS 100 kilowlttl of IcktttiOltll POWr would be rlClufrft, but trlnsr.fssion fro. Chuni1ll1 Cr.ek would be .pplfceble Oftl1 to tite fONer beclVse of the dtstlftC. fnvolved. We .111 senet yoa our report II soon II t~ IOrth 'ac1ffc O1yisfOft I~ovel it for dfltribatt •• OUr study dlt.,..fnecl Ullt I hlrbor project It Atk. would hl.e to .,. Il*'land by I "'''e.rll entit, becluse neither of the f.alible pllnl requires brelt.aterl 0" dredgfng, t .. ad1tional f""I11, funded 1t_. WI 1nf ... thlt one relson JO'I h'" I Mlrg1ftilly lC~fc project is the co.t of the ICCts. route to the It,...".,... .. ,lut. SlMwhl I ",,"'e"ll enttty ,.,t the hlrbo .. DroJeet. shlred COltstructton Iftd fun"ing of the rOld should be .. Ilu.ted for potentill IIYin,' Ind ec~ic benefits. . -z- "AitP ll: Tr'! re'er~I't~p. to ~1J$Hna foY' A p~l1"t Of ("0IRI)1,.'50" is awkward. A 2·J/~ Pfreent conttnuous lOiG o~wth for the Rlflb~lt '''@i. ~f~ IIr~ldy hi! I la"~e canacfty ana Who~f resfdents ,lrPldy ~IV@ lots of e1ectrfclt applfances, fs "el$Onlbl~. fofo.ever. the anllogy to ~t~a fsm1s1eadino. ~flny ~Ill, fsolated ,..,.., c~n1tf.s, tt.e ~Iye-nots,. COUld Y~ry wrll .r~"f~c. rapfd ~ for • s~ort tfmr .'t@r befn~ -@ftergized,-fol1~ by a low ~ro.th rite. "1 ~as'! ~~ n"re ttt,t (w!'" ca""n~s "roe (teneri I o1!ntf .10 net constitute a ~@tafled ~~fr.t.rf~~ revf ... 01 t~fs ~roject. I' you ",n an.v 'ur-the,. OIlP~tfo,,~, "'''11$' call ...... Sc"tt Shu!'Ml at 153-2f~. Th@ "~w Dt~trtct r."~fft~r ts Colonel Wfltur T. (j,.e~r-v. ,1,.. Sfneerel.v, • P4r)Of'e Engineerfng Dfw1510n q I I I I I I I I I I I I I I I I I I I I i I C o " ... ; IJ D ~ I I I I I I STATE Of ALASKA DEPARTMENT Of TRANSPORTATION AND PUBLIC fACILITIES CENTRAL lEGION -PLANNING P.O. BOX 196900 4NCHOIAGE. ALASKA 995194900 Edwin L. Morris . Associate Executive 01rector/Planning Alasta Power AuthoMt;y 334 W. Stb Avenue .- Anchorage, AK 99501 Oear Mr. Morris: October' -.,. 1985 '.' rt -.--'2 ~i·\·'-' • -__ ._ \ r RE: A'IXA -Hydr6Power Study Concerning the draft Hydropower feas1btli~ study sent to me for review, I offer the following cOllftlent: . . . . p.18 -The DepartMent of Transportation and Publfc Facflitfes grader is o avaflable to.the cOMNUnfty for road .. fntenance only, not for constructfon projects. Thank you for the opportuni ty to c~nt on thi S docullent. -·'Sfncerely. MDM/tsh '. ~j. r, \. t,, __ . i.' l. \I~' \ .. art M~o Aleutfan/Prfbfloff. Yuton/Kuskokwfll Arel Planner I ~':,J ~ -' " : i . ~ \ , '\ \ ' . \ :r'1Ir " ! ,~ I" ;.,... BILL SHEFFIELD, WVER~OR I RECEIVED BY -ALASKA POYlEP f.'Ji!iOP.ITY DBPT. OF COMMUNITY. RBGIONAL AFFAIRS 0 POUCH 8 JUNEAU, ALASKA ~, I-OFFICE OF THE COMMISS/~EP -4 PJo:"lloNE:(tOn 4 65-4700 ~/J E. 36TH AVENUE, SUITE 400 ANCHORAGE, ALASKA 99508 I C o ~ tJ o C o ~ ~ I I I I I October 31, 1985 PHONE: (gon 563·'073 Mr. Edwin L. Morris Associate Executive Director/Planning Alaska Power Authority 334 West 5th Avenue Anchorage, AK 99501 Dear Mr. Morris: RE: DRAFT SMALL HYDROPOWER FEASIBILITY STUDY FOR ATKA Thank you for the opportunity to comment on the Power Authority's Draft Small Hydropower Feasibility Study for Atka. The comments we have provided here are based on our work with the community over the past several years. Community leaders reported that Table 1 on page five of the report is somewhat confusing to a reader not familiar with how Power Cost Equalization works. The columns could be relabeled to show which cost is borne by Which party. The community has expressed to the Department their concern that the cost of electricity in Atka might be mistaken to be 2e per kilowatt/hour. The summary of the cost estimates also assumes a very high contingency amount of 30 percent. It is not uncommon to see a contingency fee of 5-10 percent, however the 30 percent does seem unusually high and would significantly impact the cost-benefit ratio. Some examination and explanation of this large contingency needs to be made. In addition, community to labor costs. which could acceptable. cost-benefit the labor costs do not appear to allow for the force account the project and, thereby, lower the The community has indicated that the lower wages be used in a force account project wo'uld be Those changes might also positively impact the ratio. Mr. Edwin L. Morris RE: DRAFT SMALL HYDROPOWER FEASIBILITY STUDY FOR ATKA October 31, 1985 Page 2 It should also be noted that a fisherman's cooperative has recently formed in Atka. The co-op and village council have developed preliminary plans for a fish processing facility which, if built, would increase electrical demand. Could the feasibility study reflect the alternative scenarios 'of these potential changes? Finally,-will there be a review of this project on a periodic basis? The cost-benefit analysis indicates that the project will not be successful until certain consumption levels are met or an addi tional project is constructed which would allow for the sharing of start-up and mobilization costs. If those factors continue to hold true, I would like to suggest that the Alaska Power Authority and the Department of Community and Regional Affairs make a sincere effort to keep one another informed of factors which might make this renewable energy project feasible. We should be able to accomplish this coordination through regular meetings with APA which are being included in the Memorandum of Understanding between our two agencies. If there is some assistance this Department might be able -:--to provide you in regards to this study, please notify me at your convenience. Again, thank you for the opportunity to review this draft feasibility study. Sincerely, t .. ~ /Emi1 Notti Commissioner cc: Marty Rutherford, Director Municipal and Regional Assistance Division Robert Brean, Deputy Director Division of Community Development Julie Dirks, Secretary, Atka Village Council I I I I I I I I I I I I I I I I I I t I I I· .e c c [j o C D S E I I I I I MEMORANDUM State of Alaska TO: FROM: Edwin L. Morris Associate Executive Director Planning Alaska Power Authority DATE: FILE NO: TELEPHONE NO: Lance ~. Trask~ Regional Supervisor Region IV Habitat Division Department of Pish and Game SUBJECT: October 9, 1985 267-2342 Draft Atka Small !tydropower Feasibility Study I·· .. The Alaska Department of Fish and Game (ADF&G) has reviewed the draft Atka Small H drooower Feasibilitv Studv prepared by the Alaska Power Authority APA) l.n August 1985. t'1e offer the following specific and general comments. pa1e 12, {araqraPh 2: The term • anadromous" generally de_ines a i1e cycle of certain species of fish, but i~ not usuallv used to describe waterbodies. Therefore we recommend the following alternative language for the fourth sentence: ~Chuniisax Creek, however, risJ suo~orts anadromous fish upstream to Falls B.~ Page 16, paragraph 4: Same comment as for Page 12. Page 17-18: ~"e concur with your analysis of options for mitigatIng project impacts to fish resources. We note that the recommendation of APA staff is that the proposed Atka small hydropower project not be constructed under present circumstances. Should APA decide to construct the project at some time in the future, we request that you coordinate appropriate mitigation options with ADF&G to balance potential impacts to fish resources. We appreciate ~~e opportunity to feasibility study. . !f you have contact Denby Lloyd (267-~342). cc: Remy Williams, APA U/!': nSL: sp commant on the any qu~stions, draft please I I I I g D D D ~ ~ D E 1;1 • I I I I I I United States Departmen[ of the Interior IN REPLY REFER TO: WI£S Mr. Remy Williams. Manager Atk a Hydroelectrf c Projec t Al aska Power Authority 334 West 5th Avenue Anchorage. Alaska 99501 Dear Mr. Wil11 ams: Wcstern Alaska Ecologi~al S~rvi\:e!i Sunshine Plaza. Suitc Zil ~ll W.~lhA\c. Anchorage. Alask" 1)9501 Re: Draft -Atka Small Hydropower Fe as i bil ity Study. Augus t 198 5 The U.S. Ffsh and Wfldlife Servfce (FWS) has reviewed the subject document fn accord wfth the letter of Mr. Morris. dated 23 Septanber 1~5. We concurwfth the ffndings of the Alaska Power Authority (APA) staff that Alternative No.4 woul d be the design of choice if/when the project f s constructed. The FWS recommends that the document be expanded to encompass pennitting and mftigatfng reQufrements. The following comlTl!nts are offered for your consideratfon: 1. The surface estate of the 1 and f nvolved is subject to Section 22(g) of the Alaska Natfve Cl aims Settlement Act. As such ft would be subject to the i ssu~ce of a Rfght-Of-Way pennit by the FWS. Please see the attached letter. Field Supervisor to R. W. Huck. dated 4 March 1 983. i tan (1). 2. A Special Use Pennft (SUP) would be reQuf red from tte FWS to cover the actual work performance and may include timing constraints and other stipulations to minimize adverse environmentai impacts. The SUP would also address costs of mineral materials required for Ca'1Struction. Please see the above-referenced letter. item (2). 3. We included the FWS mitfgation pol icy in the attached letter. Field Supervisor to Mr. Crawford. dated 21 March 1984. The APA project assessment should propose specific mitigation to offset project related adverse impacts. The FWS would then evaluate the adeQuacy of the mitigatfon proposed based on the mitigatfon policy. 4. The subject doclJJlent included a Sunmary of the Cost Estimate as Table 6 on page 19. Although a 30' Contingency is listed. no mitigation costs were i "cluded. It would be appropriate to i nc1 ude the estimated costs of mitigation as a line item in developing a more thorough economi canal ysi s. 5. The site access road description states that small bridges or cul verts woul d be required. Fish streans that woul d be impacted shoul d be f dat tified. 6. In the opinion of the APA, the work would be accomplished with local 1 a,or unde r an experienced and k mwledgeabl e projec t supervisor. The document should state that the APA Best ManaJement Practices Manual s woul d be the guidel ines used during project construction. 7. The stbject document should include a sketch and discussion of the proposed transmission line routing. A buried line would be preferable; anadrOnDus fish stream crossings could be timed to avoid adverse impacts to fisheries in a::cord with Alaska Department of Fish and Gillie Title 16 permits. Ms. Marian Zimerman, the FWS biologist who accompanied the APA on a site visit in June 1984, is no longer on my staff. Please contact Hank Hosking at 27l~575 if you wish to discuss these cOllll1ents. Ff el d Supervi so r Enclosures cc: Lloyd, ADF&G-Habitat, Anchorage (w/o enc) I I I I I I I I I I I I I I I I I I I I I I C C D ~ ~ C ~ I E I I I I I I IN "I"~ 'I .. "." TO: WAES FISH AND WILDLIFE SERVICE Western Alaska Ecologicnl Services 60S W. 4th, Room G-81 AnchorAge, Alaska 99501 R.W. Huck, Partner Northern Technical Services , MAR 1981 750 W. 2nd Avenue Suite 100 .. Anchorage, Alaska 99501 Dear Mr. Huck: ----.--1/ I:; This letter is in response to your inqui~ regarding penmitting requirements for the Alaska Power Authority's (APA) proposed hydroelectric project at Atka. Alaska. From the Fish and Wildlife Service (FWS), the project sponsor will be required to obtain the following penmits: (1) A Right-of-way Permit -Although the surface estate of the land involved in the project has been conveyed to Atxam Village Corporation by Interim Conveyance 159, the conveyance is subject to Section 22(g) of Alaska Native Claims Settlement Act (ANCSA). This provision stipulates that conveyed lands remain subject to laws and regulations governing use and development of National Wildlife Refuges. Consequently, compliance with 50 CFR 29.21, which requires that a right-of-way permit be obtained from the Regional Director, is necessar,y. To initiate this permit application, William Mattice should be contacted at: U.S. Fish and Wildlife Service Division of Realty 1011 E. Tudor Road Anchorage, Alaska 99503 (907) 786-3498 (2) A Special Use Permit -This penmit covers performance of the actual work. and may include provisions regarding the purchase of sand, gravel. and other mineral materials that may be needed for construction. The Refuge Manlger, Fred Zefllemaker, should be contacted to obtlin thfs permft at: Alaska Maritime National Wildlife Refuge Aleutian Islands. Unit Box 5251 FPO Seattle 98791 (907) 592-2406 The FWS also has responsibilities for Federally listed or proposed threatened and endangered species. To the best of our knowledge there are no listed or proposed threatened or endangered species under our jurisdiction in the project area. However, if new information warrants, Section 7 consultat;on under t.he Endangered Species Act will be requi red. The Bald Eagle Protection Act may also be applicable. The Act generally prohibfts the taking, possessfon, and commerce in bald eagles or thefr parts. In addftfon the Act protects bald eagle nests. The FWS recommends that a buffer, of at least 100 meters be maintained around bald eagle ne,sts. .. ~Besides these permits. regulationS. 'and'legislated mandates administered by the FWS, the Service has responsibilities to review and comment upon other Federal permit and license applications. APA has compiled a list of Federal and State permits and permit requirements needed for the Sus1tna Hydroelectric Project. Since most, if not all. of these permits and approvals are applicable to the Atka project. obtaining a copy of this document. dated February 4, 1983, may aid your process of identifying necessary permits. Within our review of permit and license applications we will examine aspects of project design which could impact fish, wildlife, and their habitat. At present it appears the siting of the powerhouse near the bay, rather than the channel of the Chuniisax Creek, will result in the dewatering of the creek downstream from the lowest falls. In view of the estimated 11,500 pink salmon observed spawning during September 1982 between the mouth and the first waterfalls, along with usage by coho and chum salmon. such a design would result in unacceptable losses of fisheroy resources. Project alternatives. including relocating the powerhouse and penstock alignment so that instream , flow can be maintained downstream from the first falls, need to be studied. We hope this information will aid you in your project planning and design. Please feel free to contact usif we can be of further assistance. cc: FWS-ROES William Mattice Fred Zeillemaker , lId . r L I Sincerely, ,// • '" " • I J) (\.' (, ...... Field Supervisor I I I I I I I I I I I I I I I I I I I I I I C C ~ .. tJ ~ ft .. " 11 D I S I I I I I United States Dep~~terior . FtSH AND WIL~Va~ U IN Re,,-Y RI'IR TO: WAES Lar~ D. Crawford Executive Director Alaska Power Authority 334 West 5th Avenue Western Alaska Ecological Service. 605 W. 4th, Room G-Sl Anchorage, Alaska .. 99501· Anchorage, Alaska 99501 Dear Mr. Crawford: a 1 AUG 1984 The following is a report of our findings from our on-site visit of Chuniisax Creek near Atka, Alaska. The trip was made by Bob Loeffler and Remy Williams of the Alaska Power Authority and Marian.Zimmennan of the Fish and Wildlife Service (FWS) June 4-6, 1984, to investigate its potential for supporting a small hydroelectric project. Design and siting of project features were considered in relation to ffsh and wildlffe resources of the area. . FISH AND WILDLIFE RESOURCES Sampling included minnow trapping and fyke netting of the creek and taking basic water quality parameters of the lake to the west of Falls F. Penstock and transmission line routings were walked and intake and powerhouse sites were investigated, as well as construction and maintenance of access routes. Data previously collected by Northern Technical Services (NORTEC) were used to help develop recommendations for design and Siting of project facilities. Fishe~ sampling between Falls A and B using eight baited minnow traps set overnight collected 35 Dolly Varden ranging between 53 and 165 mm in length. One coho salmon fry of 56 mm was collected just above Falls A in the minnow traps. A fyke net set overnight in this same reach yielded three recently emerged Dolly Varden,· three recently emerged salmon (presumably coho salmon), and one recently emerged unidentified sa1monid, all measuring about 25-30 mm in length. Between the creek mouth and Falls A nine baited minnow traps set overnight yielded 28 Dolly Varden, 50 coho salmon, and one unidentified sculpin. The Dolly Varden ranged between 66 and 147 mm in length. Of the coho salmon, 46 were in age class 1+ and measured between 57 and 97 mm; the other 4 were in age class 2+ and measured between 114 and 131 mm in length. One of the minnow traps was set at the mouth ot the small tributa~ stream flowing from the east about half way between the creek mouth and Falls A where NORTEC biologists collected numerous rearing coho salmon. l The fishery habitat.. in the. mouth reach of Chunffsax Creek was considerably different from 'that above the Falls A. Downstream the substrate consisted of large cobbles suitable for spawning and occasional boulders. Undercut banks with good grass cover provided good rearing habitat and cover. Upstream from the falls substrate consisted of bedrock and boulders with patches of cobble and gravel which are apparently used as spawning habitat. There were also several cascades and higher velocity chutes in this upstream section. Falls A consisted of a vertical drop of approximately three or four feet with no pronounced chutes at the observed flow. Between Falls Band D the creek has a steep gradient with bedrock and boulder substrate •. Falls Band D are substantial drops, probably of about 30-35 feet. Falls B marks the limit of anadromous fish use. Upstream from Falls D the stream bottom consists primarily of gravel and appears to be ideal for resident Dolly Varden spawning and rearing. The lake to the west of Falls F was crystal clear, with a course sand bottom. No aquatic vegetation occurred in the lake suggesting that nutrients may be low. Water temperature was 10-12 0 C. Dissolved oxygen was 11.2 ppm, or saturated. salinity was 0.0 ppm, conductivity was 87 OHM. and pH was 6.7. Caribou tracks were observed in the sand along the lakeshore. Water quality does not appear to be a problem should an impounctnent at Falls F Ilcapture" thi slake. PROJECT DESIGN AND ENVIRONMENTAL CONSIDERATIONS An intake structure at the head of Falls D or F appear feasible. Placing it at Falls D would avoid eliminating some prime resident Dolly Varden habitat and would reduce the penstock length to about half of that needed to place a intake at Falls F. Siting the intake at Falls F would allow the creation of a small impoundment. Placement of the powerhouse will probably be near Falls B. There is a suitable spot at the top of the falls. but this would result in the loss of about 30 feet of head. Because of the steep walls immediately below Falls 8. no powerhouse site could be found for approximately 300 feet downstream. Another site was identified at the top of Falls A. but this would eliminate an additional 5-600 feet of intermitent coho spawning habitat. This site is not recommended as it would eliminate more coho habitat for little additional head. The site 300 feet downstream appears to be the best alternative to maximize head while retaining the maximum amount of fisher,y habitat. Design of the outfall from the powerhouse was discussed. A concrete apron would apparently be possible to incorporate into the design or releases could be directed toward some of the boulder/bedrock areas to reduce scour. Penstock routes were identified from an intake structure at either Falls D or F. These would consist of relatively small diameter pipe (about 12 M?) which would be laid on the ground and should cause no obstruction to local wildlife. Penstock routing does not appear to be a major problem, either environmentally or engineeringly. I I I I I I I I I I I I I I I I I I I I I I g C 8 I I I I I i I I I I I I Transmission lines to the village would be roughly one mile in length and would preferably be buried. Ways to bury the transmission lines and minimize soil erosion were discussed. The transmission line route would probably follow the access road to the powerhouse. The road to the powerhouse is somewhat problematic as a steep slope occurs between town and the creek. Erosion and slumping are anticipated. Boat access to the mouth of the river has been discussed but considered a problem especially in winter. Quick access is seen as necessa~ for maintenance. Starting the road from near the fire station on the switchback above the old town site was suggested but was more or less dismissed without serious consideration. After seeing an aerial photo of the area, however, it seems like it might be worth pursuing. A question remains whether a road should be built between the powerhouse and the intake or whether an unimproved three wheeler trail would be adequate. A road would cause more immediate habitat losses, but it might better confine traffic to a designated route and avoid crosscountry travel. FISHERIES MITIGATION Mitigation options for unavoidable fishery losses were also considered. Building a small ladder over Falls A looks feasible and fairly inexpensive. Questions regarding this option are how much of the available spawning habitat is presentlY'utilized and how much would utilization be increased if a ladder is installed. These are questions which cannot be readily answered using existing data. There was also some discussion of off-site mitigation if a suitable project can be identified. On July 26-27, 1984, Dave Ferrell and Wayne Crayton of th~ FWS returned to Chuniisax Creek while in Atka conducting field studies for the Corps of Engineers' bottom fish harbor project. Three baited minnow traps set overnight between Falls A and B caught 23 Dolly Varden ranging in length from 53 to 140 mm in length. No salmon were collected. A habitat map (enclosed) was also prepared in an effort to identify spawning areas. The data collected during the combined trips suggest that there is some spawning habitat between Falls A and B that is probably not being fully utilized. Improved access with a fish pass facility could open the area up to salmon spawning, particularly for coho salmon. However, given the' fact that spawning habitat between the two falls occurs in patches and is somewhat limited, more fishery benefits may be accrued by developing an off-site mitigation project. Alaska Department of Fish and Game biologists have inventoried many of the streams in the Aleutian Chain including the island of Atka and have identified several that could provide mitigation opportunities (Holmes, P. B. 1982. Aleutian Islands salmon stock assessment study. Special report to the Alaska Board of Fisheries. 82pp.). Further consideration of these is recommended so that the best mitigation plan, providing the most fishe~ benefits for the dollars invested, is realized. After that time we will be in a better position to know whether laddering Falls A or incorporating one of these off-site opportunities would yield the most benefits to project. We appreciate the opportunity to work closely with your staff in developing a power project which minimizes resource impacts. We anticipate continued participation in project planning as it proceeds. Enclosure cc: Bob Loeffler, APA, Anchorage Denby Lloyd, ADFG, Anchorage Sincerely, Field Supervisor I I I I I I I I I I I I I I I I I I I